Commission balks at DDA proposal to buy property

Mayor and Mayor Pro-tem serve at final meeting

 

IMLAY CITY — There was plenty of business to take care of and discuss at last week’s Imlay City Commission meeting.

It was also the final farewell for Mayor Joi Kempf and Mayor Pro-Tem Ted Sadler as a result of both being term limited out of their positions on the board.

“It’s truly been a honor to serve,” Sadler said while addressing the commission and audience. “Mayor Kempf has truly been an asset to this community and being able to serve with this commission has been my priviledge.”

Mayor Kempf added, “I will just say thank you. I could say more, but in thinking about those we’ve lost recently (community members who have passed away) it’s hard, So, I will just say thank you.”

Mayor Kempf said she is proud of the commissions she has presided over, especially the one she most recently served on.

“I feel like a lot of good things have happened. We’ve had good discussion and even though we don’t always see eye-to-eye, we’ve been able to conduct business professionally and walk away as friends. This is a special group to me.”

Both Sadler and Kempf are required by city charter to take two years off from the council before being eligible to make another run at being voted on to the commission.

Neither has indicated they would run again.

In other commission news, members had a lengthy discussion with DDA representatives and City Manager Craig Horton in regards to the possible sale of city-owned property to “IC Holdings,” a subsidary of the Imlay City Downtown Development Authority.

The DDA had proposed the commissionm consider selling the three parcels on E. Third St. that includes the old fire hall, a DPW garage and the delapitated Sign Shop, for a token payment of $1.

By acting as IC Holdings, the DDA could apply for available grants to help clean up the ground that is known to be contaminated, if they were allowed to purchase the property.

The intent is to eventually sell the property, after the contaminated soil has been remediated with cleanup.

At least two potential business opportunities for private investors, including Memphis-based Sage Creek fell through, due partially to the contamination issues and other factors.

Steve Robbins of the DDA told the commission while two of the properties were worth fixing up, in their opinion, “the sign shop just needs to be torn down. It is beyond repair,” he said.

Executive Director Christine Malzahn added, “this could well be an economic bump, for the community, to have these properties. The MEDC (Michigan Economic Development Corporation) could help us with cleanup costs and there are some rolling funds to apply for that could help as well.”

City commissioner Barbara Yockey, who works as an attorney in the downtown area of Imlay City, said, “because of the contamination in those properties, the city will always be on the hook. We are liable for the contamination. IC Holdings would not hold the liability. We (the city) would.”

Yockey went on to say there are other problems facing this transaction.

“I feel we need to discuss these issues before taking any action of approving a contract with anyone. Our attorney needs to take a look at this. We need to protect the city as much as possible, if this were to go through and the DDA eventually sells the property,” she said.

Lapeer Economic Development Director Sam Moore agreed.

“The commission has very valid concerns. It (contamination issues) most certainly would come back on the city. The city has already spent tens of thousands of dollars on these parcels for testing and really haven’t gotten anything in return, except for some opinions that honestly have not had an effect either way, on the property.”

Robbins told the commission, “Yes, the DDA fully intends to make an investment in to the cleanup of the property and make it sellable. Absolutely.”

Mayor Pro-Tem Ted Sadler stated, “While I tend to support the concept of the agreement, Commissioner Yockey certainly has valid concerns that need to be addressed, for sure.”

The commission all agreed that further discussion needed to take place.

After a lengthy discussion, both sides agreed to have City Manager Horton meet with Malzahn to see if a revised contract could be developed and eventually submitted for legal review.

No further action was taken by the board and the properties remain under city ownership.

J&J Liquidation currently is utilizing space in what was the old fire hall, selling merchandise following a devastating fire at his previous location on M-53, north of Almont.

Owner Jim Slack has a five-month agreement with the city to run his business in the E. Third St. location.