Ludington City Council Meeting, March 27, 2023: Year 150 Starts Hot

[XLFD]

The agenda packet for the first meeting of the Ludington City Council in its 150th year on March 27th was rather light on content and action items, conflicting with this author's agenda which was overflowing with material and issues.  Better yet, the absence of the city attorney made a cogent and coordinated counter-response by the city to my issues even more unlikely than usual.

The only actions on the agenda was to adopt an ordinance to accept a 5-year lease/contract with Applied Innovations for the city's copiers/printers and introduce another ordinance.  This led to me being the only one to speak during the first public comment where I unloaded a bombshell about the city and its part in a scheme by our state representative.  

Mayor Barnett would initiate the first of two cockfights at the beginning of my comment when he interrupted me after I stated my name and the ward I live in.  He asked for my street address, I gave him "602 N Lakeshore", which the mayor likely recognized as his own address.  I figured that since I am living rent-free inside his head that I might as well state the address where his coconut hits the pillow each night.  He corrected me by telling the assemblage my street address and allowed me to make my comment.

XLFD: (4:00 in) "In April of 2020 this council in a virtual meeting on the urging of the city manager and DPW superintendent, unanimously chose Senator Curt VanderWall's company, Turf Care/Mole Man over Tru Green even though the latter had underbid Mole Man in every single category.  I caught that then, but I didn't really understand the full issue until this year when that contract came up again.  

Back in early 2020, Mole Man had issued prepayment invoices to city departments reflecting the work they planned on performing in 2020 and those would come before the finance committee and this council which agreed to pay them.  Problem was, Mole Man had no contract with the City for 2020, but by the time the city bid out the contract, they had paid Mole Man for fertilization and weed control of city properties for 2020 already.  The bidding process was a show bid, a total sham, a fait accompli, because city leaders and this council had already prepaid off Mole Man for services outside of a contract.  

Paying a state senator's company outside of a contract, and even outside the prior contract's terms which required invoices to be made only after services were provided, then hosting a bid process with a predetermined result that could only find for the state senator's company is the height of corruption and I would suggest that everyone involved in this unethical scheme come clean on our city's complicity with the Mole Man and his unlawful impropriety that appears to show him profiting by selling his influence to not only this city, but other local government units in Mason County too." [END comment]

Suffice it to say that I not only have the receipts, I have the invoices, and not only from the City of Ludington, but two other public bodies that have hired Curt VanderWall's company in ways that went contrary to their normal methods of contracting and/or purchasing.  This was just the beginning of the unveiling of this unprincipled scheme by our state representative who makes a home near Ludington.  

After approving a normal consent agenda after no more comments were received, the meeting held a public hearing to approve an Obsolete Property Rehabilitation Act (OPRA) certificate for the OPRA district created in January for Foster School property at 504 and 507 E. Foster Street.  Back when this district was made, I was away at Scottville serving two of their former officials with a lawsuit to deny them the offices where they entered into unlawfully. 

Frankly, I noticed back then that it was a hopeless legal exercise to call a playground an obsolete commercial property and that it would be impossible to rehabilitate monkey bars and swing sets to residential housing through the incredible tax relief offered through this act.  Why couldn't our leaders and city attorney actually read the law before they tried to give out this largesse?

XLFD: (7:45 in):  "Nathan Gillette and his parade of LLCs is not unfamiliar with fraud, he bought the Foster School property for less than a tenth of its value by swindling a hapless school board into thinking he would do something special, and never did.  Our city is no stranger with fraud either, so it's not surprising that these two would get together and commit even bigger fraud.  This hearing is predicated on the premise that these parties working in concert established an OPRA district encompassing the addresses 504 and 507 E Foster on January 23rd.  That district is illegitimate, and here's why.

The OPRA section 2(b) defines "Commercial property" as  "land improvements... the primary purpose and use of which is the operation of a commercial business enterprise... including, but not limited to, office, engineering, research and development, warehousing, parts distribution, retail sales, and other commercial activities. Commercial property also includes a building or group of contiguous buildings previously used for industrial purposes...  Commercial property does not include... land.  

Foster Elementary has been used solely for instructional not commercial activity during its long life, so even if you, Nathan, and the assessor call it commercial as a 'property class', it does not fit the definition of "commercial property" in the OPRA statutes.  But the City and Nathan are trying to tell us that 504 E Foster, composed of a playground and a playfield, somehow meets the OPRA definition of "commercial property".  The State Tax Commission and any third grader would call you silly for thinking so, it's that elementary.

If neither is commercial property, neither can be "obsolete property" under the OPRA, and thus an OPRA district cannot be formed, ergo, tonight's exercise is just a strut around town with the emperor's new clothes.  Let Nathan Gillette use some of the money he saved by defrauding the school board in fixing up his property, according to the assessor, he has already decommissioned all of the plumbing and heating systems in an attempt to commit more fraud, and in paying his share of property tax, because his company has had this property for a year and a half and still hasn't paid anything."  [END comment]

In addressing my concerns, Councilor Winczewski recognizes past OPRAs were for commercial properties and prompted City Manager Mitch Foster to explain whether it was compliant with OPRA, with Foster saying at 12:20: 

"No, as you can see by the definition in the state statute that says "including, but not limited to", the assessor also determined under state assessing records that it falls under the commercial class, so no, based on the assessor and the city attorney it falls under the definition..."  

Foster, in his zeal to give away the store to an outstate developer, puts forth his best effort to justify why Foster Elementary and its playground had for its primary purpose and use was the operation of a commercial enterprise.  Assessor Dan Kirwin's statement (p. 34 in the packet) has him admitting it was used as a school until now, fully exempt from taxes, and that it was commercial-classed (which isn't the same as being a "commercial property" under the OPRA statute), before coming to a legal conclusion that it was obsolete property. 

Totally fraudulent use of OPRA, show me where a playground or even a school has received OPRA tax relief, Mr. Fraudster.  The OPRA certificate was approved unanimously by the six present (Les Johnson was absent).  

LFD Chief John Henderson gave his first annual presentation to the council, having received many from former chief, Gerald Funk, during the years he was mayor.  It was rather interesting, noting the fire calls, a future live-burn training facility, goals, challenges and other errata.  Interesting to me was that staffing was at 22, a high level, but nowhere among the roster of the LFD was Austin Billings, a firefighter hired by Henderson and the city who had a long criminal history involving several felonies.   Looking into that.  

The council would pass the one ordinance and get a new company, Applied Innovations, to replace the old copying company, Xerox Business Solutions Midwest.  While several officials would badmouth the service of XBSM, the absence of any proposal by them in the packet indicates that this was another one of those fait accompli moments reminiscent of their severing ties with Spuller Concrete a few years back.  XBSM appears to be a little bit more expensive per month, but the penalty for breaking their existing lease ($4471) is more than the savings over 5 years.  

The first reading of an ordinance to have a 5-year agreement with AXON body-worn cameras had the revelation that the contract had been unofficially signed by former LPD Chief Tim Kozal back in 2021, likely in order to take advantage of a discounted price ($13K per year, rather than $24K), but was never affirmed by the council.  

This led to the last comment period of the meeting, where Pastor Brian Ford heaped praise on the mayor and council who had just been credibly accused of fraud and other corrupt acts within the hour, followed by the last speaker, me, who chided the council for their complicity with Nathan Gillette and the question of why Lofts on Rowe has returned our generosity by offering small units well-above Ludington's market prices.  

XLFD (56:20 in):  I'll be on the phone with the State Tax Commission tomorrow to key them in on my city fraudulently calling a playground obsolete commercial property so that a downstate developer can once again swindle us by taking advantage of our elected leaders' naivety and generosity with the taxpayer's money.  You still have time this meeting to correct a mistake, I advise you to do so.

Lofts on Rowe was a $14 million project which received almost total public subsidization.  $4.2 million came from locals through tax increment financing, $2.8 million came from Historic tax credits, $2 million from the Michigan Strategic Fund, $1 million from Pennies from Heaven.  That's $10 million right there.  Yet, if you look into living there you see it costs $950 per month for a 386 square foot one bedroom apartment about the size of a college dorm room. 

As reference, you can fit three Lofts one-bedroom apartments in this one modest chamber we are in, with enough room left over for an 8 X 16 foot corridor separating them.  Ludington housing statistics say that the average one bedroom apartment is nearly twice as big as these lofts and cost about $200 less.  Pineview Apartments, constructed with zero subsidization by local developer Mitch Bogner,charge less than half what Lofts does for one-bedrooms that are 70% bigger and come with balconies.  

Why are the owners of these almost fully subsidized apartments asking for such market unfriendly prices-- and better question-- why did you invest $4.2 million of our money just for our residents to receive this ingratitude?  [END comment]

No answer was forthcoming to my question maybe because it is so obvious:  pure greed of the developers.  They could care whether they offer a product that is usable by the community whose leaders they came to twice, leaders who were so eager to cut a check to invest in this historical building, and what do we get in return; effectively tax-free use of this property for 26 years and obscene profiteering by a developer who had little skin in the game.

I did make that call this morning, to finish the trifecta.

[Willy]

Thanks for the report X. Barnhart is going to continue his arrogant ways. I liked your comeback about your address.

Love the picture of the "Mole Man", although it makes moles look bad by comparing them with corrupt humans. The corrupt mole man along with Ludington's corrupt politicians certainly  lower the reputation of the rodent world. It's still amazes me how the same old crowd still has it's crooked tentacles around Ludington's wallet and is still squeezing as much graft out of the coffers as they can get.

I agree with you on your interpretation of the old Foster school regarding it's designation as commercial. This situation with Foster school really grinds my bones. What a crooked deal they dealt in cheating the public. Almost giving away all that property and a building, which happens to be in very good condition from being renovated several times at great expense to the taxpayers. Below are satelite photos showing the school and land compared in size to the surrounding lots and structures. All I can say is that the taxpayers were robbed by the school board. I appreciate your involvement into this matter and all the corrupt dealings regarding this property.

Photos below shows the size of the land and building in comparison to the neighborhood. What a waste. When will all of this corruption end?

As you can see this is a huge chunk of land and a very large, well maintained building which was sold/stolen from the taxpayers. Over 4 acres of land and a building that is in excellent condition.

[Willy]

 

Thanks for the report X. Barnett is going to continue his arrogant ways. I liked your comeback about your address.

Love the picture of the "Mole Man", although it makes moles look bad by comparing them with corrupt humans. The corrupt mole man along with Ludington's corrupt politicians certainly  lower the reputation of the rodent world. It's still amazes me how the same old crowd still has it's crooked tentacles around Ludington's wallet and is still squeezing as much graft out of the coffers as they can get.

I agree with you on your interpretation of the old Foster school regarding it's designation as commercial. This situation with Foster school really grinds my bones. What a crooked deal they dealt in cheating the public. Almost giving away all that property and a building, which happens to be in very good condition from being renovated several times at great expense to the taxpayers. Below are satelite photos showing the school and land compared in size to the surrounding lots and structures. All I can say is that the taxpayers were robbed by the school board. I appreciate your involvement into this matter and all the corrupt dealings regarding this property.

Photos below shows the size of the land and building in comparison to the neighborhood. What a waste. When will all of this corruption end?

As you can see this is a huge chunk of land and a very large, well maintained building which was sold/stolen from the taxpayers. Over 4 acres of land and a building that is in excellent condition.

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Thanks for the report X. Barnett is going to continue his arrogant ways. I liked your comeback about your address.

Love the picture of the "Mole Man", although it makes moles look bad by comparing them with corrupt humans. The corrupt mole man along with Ludington's corrupt politicians certainly  lower the reputation of the rodent world. It's still amazes me how the same old crowd still has it's crooked tentacles around Ludington's wallet and is still squeezing as much graft out of the coffers as they can get.

I agree with you on your interpretation of the old Foster school regarding it's designation as commercial. This situation with Foster school really grinds my bones. What a crooked deal they dealt in cheating the public. Almost giving away all that property and a building, which happens to be in very good condition from being renovated several times at great expense to the taxpayers. Below are satelite photos showing the school and land compared in size to the surrounding lots and structures. All I can say is that the taxpayers were robbed by the school board. I appreciate your involvement into this matter and all the corrupt dealings regarding this property.

Photos below shows the size of the land and building in comparison to the neighborhood. What a waste. When will all of this corruption end?

As you can see this is a huge chunk of land and a very large, well maintained building which was sold/stolen from the taxpayers. Over 4 acres of land and a building that is in excellent condition.

[Freedom Seeker]

602 N. LAKESHORE!! I'm surprised Barnett didn't call you out of order and throw you in jail.

It's maddening the boondoggle after boondoggle the COL is making. Thanks for keeping the Torch burning on political corruption.

[XLFD]

It has been surprising that Mayor Barnett has been able to control himself better than Chief Barnett.  I don't know whether it's from being able to train himself to maintain the dignity of the office by ignoring his ingrained reflexes or if it's because of some powerful sedative, but it's working thus far, with the exception that he believes he can enforce a street address rule that has never been a rule.  

If he gives out my street address 2 or 3 times a meeting for no reason when I have made it known that I don't want to put my address out there, then it just makes him look imperious, uncaring, and a bit creepy.  If that's what he's shooting for, he's got it.

When one sees three major mistakes (Mole Man scheme, playground rehabilitation, and overpriced dorm subsidization) that the city made through the corrupted groupthink limitations afflicting them, plainly explained to them without any refutation (beyond Mr. Fraudster's sorry attempt to explain how baseball fields, teeter-totters and monkey bars are commercial buildings that can be rehabbed into townhouses) one wonders how city officials can conscientiously continue down their broken path.

But if I'm the only one calling them out on it, they aren't going to change.  They might divert their course if litigation is made or threatened, but if I have no other allies than the law and have to deal with a court system that has a tendency to make decisions based more on politics than law, these folks will never change their ways.  They will use the "Holman rationalization" where you justify your unpopular vote on a controversy by pointing at the 8000 citizens who failed to come to a council meeting as evidence that the average citizen just doesn't care about how their elected representative votes on the controversial issue.