House of Favors and Dangers

[XLFD]

Everyone who lives in, near, or visits Ludington, appreciates a House of Flavors ice cream cone, and mostly appreciates what this long-standing business has done for the area.  Some neighbors have been upset with factory noise, parking, and potential (or past) ammonia leaks.  But the House of Flavors have pretty much mitigated these problems through the years when confronted with them.

 

                                             ( slightly retouched House of Flavors picture)

 

That's why I hope they take some of my suggestions I made at this last city council meeting's public hearing over their six year tax abatement to heart, and correct them.  Undoubtedly, it will cost some money, some parking spots, and involve some inconvenient-to-them modifications, but it may potentially save them even more when someone gets injured by their not following the city code and charter.  Of course, their friends in City Hall are just as responsible, I have pointed most of these hazards out to the City Manager and others since 2009. 

 

 

At 19:45 into the meeting, I got up to the podium to say my piece about the tax abatement, and about what the House of Flavors really needed to spend the money they will save by getting that abatement passed by the council.  Of course, like all tax abatements that come before the council, it passed unanimously. 

 

August 11, 2014 Ludington City Council from Mason County District Library on Vimeo.

 

I'm here to urge the council to deny the six year tax abatement requested by the House of Flavors, partially because the latest passage of proposal 1 will make this six year abatement effectively a two year abatement, and partially because of my stance against corporate welfare in all of its forms.  The acquisition of about $1.5 million of property by House of Flavors would normally give the City nearly $20,000 in tax revenue, which will be lost this year and the next by this tax abatement.  

Yet, if I know our city, the budget planners will perceive this as a loss of nearly $20,000 in revenue and a shift downward in the amount of taxes they received as a percent of real and personal property within the city limits.  This will be used to justify future increase of tax rates and fees to make up for this 'lost revenue'. 

With proposal one's passage, we can only hope that the authority created in replacing the personal property tax will not consider corporate welfare, such as this, as being somehow better than providing tax abatements equally distributed among everybody.  Chances are, however, that these authorities will not be any better at understanding the needs of this, just like this city council historically has valued businesses whining over paying their fair share, over citizens whining over paying more than their fair share. 

So I doubt I will change any councilor's mind over granting the House of Favors this tax abatement, but if you do I would encourage you to have them invest that savings into providing for the public safety, which they historically have not worried too much about.  Since sidewalks were initially part of another public hearing let me illustrate how the House needs to work to make its own sidewalks conform to the city code and not work against the public safety. 

 

This picture shows a 'support post' anchored right in the middle of a sidewalk on the east side of the House's main building, providing a hazard and going against the city code for sidewalk users.  This needs to be removed or at least put on one side or the other of the sidewalk.  Vehicle parking makes this sidewalk even smaller than the less than five feet width on most days.

 

 

 

However, on the opposite side of the street, no sidewalk exists, people are forced out into Williams Street dangerously.  This has been allowed to persist even with all the new construction going on.  How does the House of Favors get away with this, when you or I would get chastised for the obvious infraction. 

 

Further up that street's side, valve controls jut out over a foot into the sidewalk presenting a very real hazard, and of course, violating the city's own code.  I could see a kid getting a grievous head injury while walking down the sidewalk eating an ice cream cone, and whose fault would it be?  Both the City's and the House's fault, for allowing this danger to be there in the first place.

 

 

 

Lastly, their sidewalk fronting Court Street is less wide than the city-mandated five feet along its entirely length.  The wooden retaining wall further makes this width even less.  By the end of next year, I hope the managers of the House of Flavors can correct these hazards, because these conditions reflect how little you may actually care about the public safety when we have another one of those ammonia leaks.

[AQUAMAN]

Thanks for another great thread on the sidewalk issues. I saw some prior and wondered too. But now we see that are quite a few more, and some dangerous even to my untrained eye, unlike the building inspector's or whomever is responsible to police this. The local "ice cream factory" that was once housed in the original building, that no one had any problems with, has grown to a BIG operation over the years. Like any other corporation that applies for, and is entitled to tax abatements, I'm for them, with some minor catches if you will. Like proving more people were hired and are steadily employed year around as a result of the expansion/new equipment. A simple verification that would substantiate the facts is with payroll records, and tax reports to Lansing. As far as I know, none of this is a written requirement for corporations to do for the COL. That to me anyhow, is a major flaw. If less people will be hired/employed year-around, that is not good for any town. Therefore, tax abatements should be denied if the corporation won't cooperate, even if it's an informal agreement for now. This should apply to any and all local corporations, not picking on HOF, their products are great. I still believe an Industrial Park is more suited to their growth potentials into the future. Should have invested and moved long time ago imho. 

[XLFD]

 Tax abatements are one of those slippery slope situations, and I am really disappointed in the companies that have made Ludington their home and have allowed the tax rates to climb for all without effort in curbing them, but come out for these abatements whenever they qualify.  House of Flavors, Brill Mfg., Floracraft, to name a few, ask for these abatements and have their own agent, or the city council acting as their agent, claim that the business and jobs may be lost if they aren't approved.  They then go out of their way to tell what good they do for the community, as they ask for these special tax breaks given only to their business.

Unfortunately, since being introduced in the 1970s as a means of economic development these schemes have took root at the local and state level so that a lot of public money is actually used for non-public purposes.  Here is a rather short piece by two Michigan academics that explains the studies done on tax abatement strategies, and their effectiveness, it's quite informative no matter how you view the subject.

If the HOF tax abatement was filtered throughout the community, every Ludington property tax payer would receive about $5 extra this year (assuming there are just under 4000 residents who directly pay property taxes, which I wouldn't be part of).  As it is, they will be expected to get about $5 extra per taxpayer to 'pay' for the abatement.

[AQUAMAN]

Thanks X. I would also like to add this stipulation for corporate tax abatements into the equation. If that corp. has a substantially large profit on the given year of the request, and say, 3-5 years prior, then, if they are doing well financially, the tax abatement is unnecessary, and denied. If you see a business with people standing out the door 50 people at a clip, and the restaurant full to the brim all summer, it should tell you something simple. That business is doing well, very very well indeed, and doesn't need any assistance in tax relief to be born by their fellow citizens. If they also have a "monopoly" on any given product in a large geographical area of concern, then they also don't need tax abatements either. Just my opinion, but I truly believe it's something of a serious nature to ask of any corp.. P.S. I'll just add this too: the HOF bought out the A&W property years ago, their only real close ice cream competition, and instead of Bob Neal as promised, keeping it open, closed it and tore down the building to keep the downtown his very own monopoly for ice cream, more or less. 

[XLFD]

Thanks for that anecdote about the demise of the A&W in downtown Ludington, Aquaman.  I always wondered about the politics/mechanics of why this successful business was driven out.  Too bad; A&W was always the top draw for me in the downtown area, just like it's about the main reason I visit Manistee for nowadays.

[Willy]

Well done X. Good points Aquaman. I don't blame business for asking to have their taxes reduced because after all it is an available business expense reduction. The problem lies with the City who hands these abatements out like candy with no regards as to who will make up the revenues not received from those privileged businesses. All the other businesses who do not receive these generous favors should voice their opinions about having to help support the businesses that are friendly with the good ol boy crowd. 

[Brian Carlson]

My grandfather (Joe Clark) worked at the House Of Flavors back when it was the Park Dairy. I think his picture is still on the wall in there. I don't think they were concerned about sidewalks back then. Those were different times. They do need to enforce safety issues now days. No one should have to risk danger for an ice cream cone.

[AQUAMAN]

Thanks for that pic. Brian, circa 1938 I see. Was grandpa in there? 

[Brian Carlson]

Grandpa was the tallest guy in the picture. He passed away about 5 years ago. 

[XLFD]

I'm hoping to see whether that picture is still there in the next few days. 

One of my big concerns is that the management of House of Flavors should be aware of these safety hazards and code violations on their exterior, but they have allowed them to exist over the last few years.  It should speak volumes of how well they think of safety of their employees inside the factory.  I would encourage anybody who works at the HOF to report suspected safety violations through the normal chain of command, but if they get nowhere, to report it to MI OSHA. 

Then let us here at the Ludington Torch know about it, if it's still a problem after all that.

[Willy]

I just happened to be passing by HOF on the side street yesterday and noticed a police officer and several individuals that looked like HOF employees standing next to that support post that blocks the sidewalk. Could have been a coincidence that they had gathered at that spot but I suspect they were discussing the obstruction the post created for pedestrians using the walkway.

[XLFD]

Thanks for that info,  Back in 2009 when I first brought the issue up to the City Manager and the other existing local Ning sites (since disbanded), shortly afterwards they did extensive work on renovating the elevated walkway... but (of course) they left the support beam right in the middle of the sidewalk.