Malignant Growth Alliance of Mason County, pt. 1: History and Background to 2010

[XLFD]

What is the Mason County Growth Alliance (MCGA)?  Perhaps the best way to describe the organization is to say that it mirrors the Downtown Ludington Board (DDA) in its funding and its aims, but on a county-wide scale.  My investigations into Ludington's DDA has been ripe with the appearances of impropriety by government officials and the businesses they love. 

 

One could presume the MCGA would have the potential for similar acts against the public interest with the use of public funds for private projects.  I will let the discerning reader figure that out on their own; here is their current website where they tell you who they are, complete with "Pure Michigan" background music and slideshow (sideshow ?).  The rest of the site paints a rosy picture as well.  Optimism is good.

 

But wise, ethical and legal use of public funds generally requires that they be used for public purposes.  This definition has stretched over the years so that now it can be perfectly OK to prop up 'needy' private businesses by increasing the tax burdens on the rest of the population.  The unfairness of that situation is obvious, but unfortunately, government and select businesses propagandize these economic partnerships as good and fair to all, while at the same time increasing their relative power to the taxpayers/consumers they willingly fleece.

 

But before I editorialize for the whole thread, I present a mostly chronological history of the MCGA, their accomplishments and their leadership, and some concerns that Mason County citizens should be aware of.  Concerns for all Michiganders includes any County Growth Alliance equivalent throughout the state.  It all begins back in 2005 here, my commentary, when needed, is [bracketed].

 

10-5-05, Ludington Daily News (LDN): (The MCGA) is a private, non-profit entity that will be governed by a nine-person board, members of the business community and several local elected officials. The group was asking for a $100,000 commitment from Mason County and will be seeking funds from other public entities as well as private donations. The group would receive 61 percent of its funding from the public...  The most significant change from the EDC [the previous organization to the MCGA], Sleeman said, was the inclusion of $50,000 for marketing.

[The 9 person board (4 public officials) currently consists of: 

Jim McInnis, Chairman-- Pere Marquette Township Supervisor

Bill Berrett, Vice Chairman-- Occidental Chemical Company

Fabian Knizacky, Secretary/Treasurer-- Mason County Administrator

Board Members:
Dave Cooper; Whitehall Industries
Dr. Charles Dillon; West Shore Community College
Robert Kran; Kran Dairy Farm
Scott Lakari; Metalworks
Bob Manglitz; Lake Michigan Carferry
John Shay; City of Ludington]

[Also notice that the MCGA was set up to be funded principally by public funds, 61%, which makes it liable for FOIA requests, which they have failed to respond to-- so far.]

 

11-14-05, Ludington City Council minutes (LCCM):  Moved by Councilor Peterson, seconded by Councilor Weston, that the request received from LEDCOR [the Ludington part of the old EDC] to transfer their assets and liabilities to the Mason County Growth Alliance upon the dissolution of LEDCOR, be approved. City Manager Shay stated that LEDCOR’s by-laws state the assets and liabilities shall belong to the City or the City’s successor, however they would like them to be transferred to the Growth Alliance to assist in achieving the economic-development goals. Motion carried.

 

12-14-05, LDN:  The Mason County Board of Commissioners planned to vote today on contributing $100,000 in 2006, $101,793 in 2007 and $103,703 in 2008. Ludington and Amber Township plan to vote on contributing $12,000, $12,215 and $12,444 and $2,000, $2,036 and $2,074 in those years, respectively, at their Dec. 19 meetings [all are approved]. Applications for a director for the alliance are still being accepted. [Dan Sleeman was the initial director]  Roughly 25 applications have been received to date.

 

5-5-06, LDN: David C. Miller of Jackson accepted the position Thursday as president and CEO of the new Mason County Growth Alliance.  Miller is expected to begin the job June 1.

 

10-23-06, LCCM:  David Miller, President and CEO of the Mason County Growth Alliance, presented the 2007 Strategic Plan for the Growth Alliance. Tom Paine, Vice Chair of the Growth Alliance, was also available to answer questions. The goals were identified as attracting small to medium sized business to Mason County targeting advanced manufacturing, high-tech industry, health care, tourism, and agriculture; retaining and growing businesses in Mason County; developing partnerships between economic development and workforce development to improve the skill of the area workforce, partnering with neighboring communities on regional issues, and expanding the economic impact of tourism in Mason County. One example of partnerships with neighbors is the Resolution for widening US10 from Scottville to Clare. David said they are working to get MDOT interested to put this on the project list for federal funding.  [Except for the widening of US10, which one would think would help the area (albeit, at a big cost to the State), I see empty generalities, that are unrealized six years later.]

 

1-24-07, LDN:  To get a better idea of what industries would best fit with the Mason County economy, the Mason County Growth Alliance (MCGA) has hired a Holland-based consulting firm, Whittaker Associates, to conduct a target industry analysis.  [That could be costly, but no figures are publicly released on this hire.  David would dutifully speak up at City and Township Councils for  tax breaks and tax free zones for businesses, a ritual continued up to this day by that officer.  But...]

 

2-20-07, LDN:  The Mason County Growth Alliance will be looking for a new president and CEO after David Miller resigned from the job at a board meeting Tuesday, effective immediately.  [9 months later.]

 

8-22-07, LDN:  Six months after the Mason County Growth Alliance's executive director resigned his post, the economic development agency remains without a leader.
Board of Commissioners Chair Tom Posma said the county doesn't have anything to do with the selection process of the MCGA director.
It's a contracted service for us, Posma said. We âre contracting with them to provide (the service). I'm sure it's taking longer than they hoped it would, but I don't think things are suffering because of a lack of it. People are covering the duties.  [Which are exactly...?]
The county will contribute a total of $101,793 to the Growth Alliance during the 2007 fiscal year. Posma said he's thought the county was getting its money's worth. [Posma didn't offer any examples however, to back his claim, as the county was about to commit its third $100,000 payment to the MCGA.]

 

10-5-07, LDN:   The Mason County Growth Alliance has hired Custer-area resident Julie Van Dyke to be its new President/CEO. She begins the job Monday.  The position has been open since Feb. 20 when David Miller resigned from the post of executive director after less than a year on the job.  [almost equal to the lapse between directors.  Julie adds some vitality to the position, but sticks to the generalities and becomes the new cheerleader for corporate welfare in Mason County.]

 

5-12-08, LCCM:  Van Dyke reported on the progress of the downtown hotel possibility.  [the City has been very secretive about this "Neal Study" as per the 4-14-08 LCCM, blocking FOIA requests by exorbitant fees to this reporter.]  Van Dyke also shared that she would be meeting with manufacturers looking to locate in the area. 

 

6-10-08, LDN:  She learned of the company’s interest in building in Michigan from the MEDC. The state agency sent out requests for proposals to all the county and regional economic agencies in the state, and Mason County was one the agencies that responded.
“First we were one of four sites chosen in Michigan, now we’re one of four sites nationally,” Van Dyke said.
While there is great anticipation, there is little known locally about the manufacturer.
“I don’t even know the company’s name,” Van Dyke said. [Wow] 
The Growth Alliance received a second and unrelated request for proposals from the MEDC in February, this one for a plant offering 350 manufacturing jobs.
The Growth Alliance responded and has had some feedback from the company, which has had representatives in Mason County for a site visit.
“They’re still weighing us,” Van Dyke said. “We’re one in five sites in the nation (the company is considering).” [Hope, albeit blind hope, and in retrospect, at the wrong time.]

 

8-24-08, LDN:  We receive RFPs every week,” Van Dyke said. “We respond to them all. Right now everything seems to be focused on wind energy.”
A company hoping to start a wind energy farm in Michigan is considering Mason County.
“We’re working with a company out of the Midwest,” Van Dyke said. “They’re looking at property here and we’re hoping to do a video conference yet this week.  [On January 14, 2011-- 30 months later-- Consumer's Energy files their first special land use permit with the County.   If the county government and its partnerships were truly acting in the public interest, this should have been disclosed much earlier to all.  Secrecy and private greed beats the public good, once again.]

 

10-27-08, LCCM:  Mason County Growth Alliance President Julie Van Dyke presented an update on the activities of the Growth Alliance. The Mason County Growth Alliance did receive an $80,000 USDA grant [public money for wind farm development?]. They partnered with Manistee and Benzie Counties and are working to develop an entrepreneurial system in the three counties. Julie also explained that they received a Small Business Administration grant [more public money and bureaucracy] to allow for a SBTC representative in this area who will work with the small businesses, counsel them, and will work with the SCORE program. She explained that business development is a long term process and identified a company out of New York who is looking to expand in the area in 2012 [not here yet]. His Honor Mayor Henderson thanked Julie for her efforts in working with Western Land Services to move downtown [Which never happened], as well as her efforts in the tax free tool exemption for Harrington Tool [a corporate tax break putting a burden on everyone else.  She's busy!]

 

9-14-09, LCCM:   An announcement was made that Julie VanDyke has resigned from the Growth Alliance. That board will be meeting soon to discuss replacing that position.  [23 months served, perhaps the negative growth caused by those recessionary times, spurred this.  She continues to cheerlead in the 10-26-09 LCCM for a Floracraft tax abatement, and has found work in the area at M/L ISD.]

 

The position would be filled in January of the next year, leaving a vacancy for only three months this time.  The results so far:  over $600,000 of local tax money used for this experiment probably a million in state and federal grants, and about $400,000 of private funds invested.  All for nothing showing that the MCGA made any difference in having businesses relocate here or expand here.  Where did the money all go?   Where's that $50,000 a year in marketing going?  We hope to find that out, in this Malignant  Mason County Growth Alliance.

 

Next up, pt. 2:  Is the Price Right?  Bob Barker Heads the MCGA

[XLFD]

I originally contacted this organization on May 9, no response.  I re-contacted other parts of it over the prior weekend, heard a non-committal response that blamed a technical glitch of their website for their oversight, and have failed to get any reply since then. 

If this is the kind of responses that prospective businesses wanting to move into the area get back from this organization, I can see why they are not getting results.  I am also surprised, yet not too surprised, that they have not come forward and tried to justify their existence by offering something productive they've done that I've overlooked. 

[Sweater Cows!]

Hey, maybe I can get a little expansion assistance eh? lol!

ON another note, I spoke with a downtown Ludington Ave. Business owner this weekend about some remodeling. They have apartments(or very old former and now(potential apartments)) above their biz, and a rough quote of his/her reply to our asking if they were working on the remodeling was something like this "we are getting some money from a (state) program that gives money to  -businesses when it would not make any money(not be profitable) or make sense to use ones own money to do the remodeling-"(rough quote as I don't remember it exactly) Then something along the lines of " it is for HVAC/plumbing/electrical"

I about had a heart attack at his honesty(or lack of knowledge) in stating it would not make sense to be spending ones own dollars as the money spent would be a loss and not profitable if spent of ones own money. I mean eventually they will see a profit off the property.

[XLFD]

All it generally takes is for your local unit of government to declare your area a "blighted area" or part of the "downtown", and then you become eligible for state programs like rental rehabilitation, the facade program, etc., and it works out well for everyone, well almost everyone. 

The property owner gets free money to do what your unnamed owner wants to do, even if it wasn't feasible before; the City gets their own 25% of the grant to cover 'administrative expenses'; everyone else gets stuck with the bill, and the knowledge that there are extra living units above the downtown buildings that cost more to live in than renting a house.   I admire your brutally honest friend, Shrugs, and I'm sure they do feel some guilt for feeding from the available trough that was jammed right in front of them. 

[Willy]

Another fine job of reporting, X. Maybe the LDN could use your services. I'm just wondering about the whole MCGA situation. It seems to me that there is a lot of possibility for abuse of power in this agency. First of all it will give  local businesses a heads up regarding other companies who may be considering moving to the area. If those companies were competitors to current businesses located here it would be easy to quash there interest by sabotaging the incentive packages that would be offered, thus keeping out competition and using the MCGA as a tool to stifle growth of certain competitive industries / companies.
Another thing is why would existing businesses want to give tax breaks to new companies especially if they could possibly compete against the established businesses?

[XLFD]

Once again you have shown great wisdom in your response, Willy.  Why indeed, would MCGA member Manglitz, for example, want to entice a potential rival in nautical tourism to settle here, or why would Bill Berrett (of Oxychem) want another Calcium Chloride producer moving in, etc.  Those who succeed at business have done so by looking out for number one, first.  I was going to go into this further in pt. 3, but since you caught this point beforehand, I bow in your general direction.

The group has little accountability, and is soon to be slapped with a FOIA lawsuit by yours truly, as it has still not responded to a simple FOIA request first presented a month ago, or given me any indication that it considers itself immune from such.  I did get a friendly reply from a member, telling me that their site sometimes has difficulties.