Ill-fated projects? Send in the MEDC

[XLFD]

"This is not just going to set back economic development in Michigan, it’s going to kill it... We have the (James Street Plaza) project which is going to be somewhere in the $1.5 to $2 million range, we have rental rehabilitation projects, three buildings and 12 new apartments that are hanging in the balance with this determination."

That's what Ludington Community Development Director Heather Tykoski said in a Sept 28 article in the City of Ludington Daily News about an impressive cut in the budget of the state's largest contributor of financial gifts and grants to the projects she mentioned.

The Michigan Economic Development Corp. (MEDC) has to reduce its business attraction and community revitalization incentives by $26 million, or 25 percent due to cuts in next year's budget. Of that money, $10 million would have gone to a new fund to attract development to rural areas.

The MEDC has been a corrupt vehicle driving corporate welfare down a highway of politically-picked winners for awhile, and if the wealth of failed public investments into private corporations are not convincing enough, witness a recent op-ed in the Traverse City Record Eagle written by Chris MacInnes who serves on the executive board of the MEDC and writes of the public corporation's success:

"In 2015, MEDC awarded Crystal Mountain a Community Development Block Grant to support two of our major expansion projects at the resort.  Thanks to that support, Crystal Mountain was able to build a specialty grocery and retail space, a coffee bar and a combination of 25 new hotel rooms and suites. We also were able to construct eight new ski trails and a triple chairlift."

Chris MacInnes just happens to be the president of Crystal Mountain, if you hadn't made that connection when he used the word 'our'.  Is it appropriate for the MEDC to subsidize the business developments of someone who sits on its executive committee?  Is it appropriate for that committee member to espouse all the apparently unfair public largesse in the millions that he received when other private resorts have to compete with them by earning their money legitimately?  

The sad news was that the MEDC could have been written out of the state budget for the next year, it was set to expire, rather than just face budget cuts.  Free market friends were hoping for this as the MEDC has proven that it is a failed, costly effort that in the end, seems to do more harm than good.  Lobbyists and corporate interests would not let it die, however.  The reasons to end the MEDC are given with more detail here, but briefly stated:

1. Corporate handouts are expensive

2. Business subsidies are kept secret from taxpayers

3. Corporate welfare doesn’t work

4. Business subsidies invite corruption

5. Subsidies are incompatible with constitutional principles

Recent developments in Ludington show how our city leaders want to abuse give-aways from the MEDC into projects that do not create jobs or other aspects of 'economic development'.  The MEDC injected a gift of $50,000 in a 'crowdfunding' effort to the Copeyon splash pad effort.   The MEDC threw in a gift of $33,300 to the West End Project the same way.  Both efforts will not create one job, but they will both dramatically change two parks.  Many would say not for the better.

The latest effort to use the deep pockets of the MEDC was proffered by longtime DDA member and Ludington city councilor, Les Johnson at the October 24th special meeting of that latter body.  As related in the minutes:

The public infrastructure grants administered by the MEDC referenced by Tykoski are geared for infrastructure, not placemaking or whimsy.  Infrastructure is defined as "the basic structure of an organization or system which is necessary for its operation, esp. public water, energy, and systems for communication and transport."  What has been envisioned is not an infrastructure project, but one along the same lines as the splash pad and the west end.  

Regardless, if economic development is killed by the MEDC budget cuts, as Tykoski says, how can the program send over $2 million to Ludington through a 'public infrastructure' grant when the agency's funding has been seriously cut and critical infrastructure in Ludington and beyond will need to be ignored.  Add to this: how can Tykoski present a TIF Plan to the state treasurer that has its ultimate funding mechanism of 2/3 of the costs being a grant that will likely never develop?  

And if that grant should ever come, when so many more critical infrastructure needs are overlooked in the low income community we have become, is there any better proof that the MEDC is a fatally flawed failure?

[shinblind]

Is the funding from MEDC an admission that climate change is a hoax by supporting a ski resort in Michigan?  Should quiz local science seer Councilor Winczewski to garner an opinion.

Anyway Crystal Mountain expansion was an $11 million project with MEDC contribution being $450,000 and change. Wonder if they also sought any other tax abatement to go along with MEDC contribution?

Not fully funding MEDC is the first positive thing the Governor has undertaken.

[XLFD]

Shinblind, you oughta know by now that climate change (aka global warming) makes ski resorts even more in need of funding due to either a loss of revenue for warmer than normal winters or for colder than normal winters due to the weather extremes man-made global warming causes.  Councilor Moonbeam is grabbing some mercury-free mercury thermometers for a demonstration at the next council meeting, with special guest Greta Thunberg being flown in from Stockholm in a solar-powered helicopter.

The MEDC is a 'gateway drug' for public funding; once a business like Crystal Mountain gets $$$ from the MEDC, money which often serves as a local authority's cash match, it signals that state and local grants and tax subsidization is also available-- just like for the West End's $300K DNR Trust Fund grant and the splash pad's potential $150K recreational passport grant.  

[Willy]

How in the World did the City of Ludington ever come into existence without government funding. I don't think Mr. Ludington, or Mr. Stearns were approved for grants when they decided to invest in Ludington. Just like all of the other businesses, their buildings and assets that grew up around the lumber and shipping business were not the results of Government handouts. Aside from land give away for some railroads, timber and projects that promoted the settling of America,  most of what is Ludington was a result of back breaking work and risk taking by those early citizens. For heaven's sakes, the taxpayer is being squeezed to pay for a ski resort when many can not even afford to use the facility or pay for the equipment.

[Du Wright]

Good points and links, X.  I wondered how James St. Plaza qualified as an infrastructure need. 

[Freedom Seeker]

What infrastructure improvements? Beer tents and a fireplace for $$TWO million dollars while our true infrastructure boondoggles like lead goosenecks are either lied about or forgotten?

[Freedom Seeker]

Regarding positive changes, it seems that the new administration has also blocked any controversial media links from the CLD news and even MCp from putting them out for comments on Facebook. Anyone else notice that? All news is good news.

[Freedom Seeker]

https://medium.com/@zelphontheshelf/10-signs-youre-probably-in-a-cu...

Funny how many of the traits of the COL are like those of a cult.

[XLFD]

The COL is diverse and dilute enough that some of those traits do not readily apply; however, I do not think there's any doubt that the Ludington DDA has all of these ten characteristics to some degree.  I invite anybody that is or has ever been in that elite group to change my mind.