Ludington/Scottville Chamber of Commerce President, City Manager, Lie on Their Applications

[XLFD]

In my reporting of our local governments, I try to not pull too many punches on what I perceive as corrupted officials behaving badly.  In my point of view, there should be little forgiveness to thoe who willfully behave contrary to the public good, when they have decided to swear that oath of office and become a public servant.  I have even less forgiveness to those who become public officers or employees and don't swear a required oath, like Ludington City Manager John Shay or our acting city attorney Richard Wilson. 

John Shay was once again at the center of controversy at the June 8, 2015 city council meeting as he submitted to the city council a state application for building façade grants with answers he knew were inaccurate.  He did this on behalf of KDMAC Ventures LLC, which include both David and Kathy Maclean. 

Kathy Maclean [pictured left with husband David], as you might know, is the President of the Ludington and Scottville Chamber of Commerce.  But she also serves as the Treasurer of the Downtown Ludington Board aka the Ludington Downtown Development Authority.  Right before Mayor John Henderson's bid to have a fourth and fifth term as Mayor with a charter change which failed by a two to one margin, I had brought to light five of Mrs. Maclean's ethical challenges in this article in this article, intending to develop the last after the election.  Sadly, my daughter died suddenly from an enlarged heart on the day of that election, and such proofs were not forthcoming as I had a lot of other issues to resolve.

It seems that Chamber President Maclean has even more ethical lapses, and she is dutifully assisted by our city manager and community development director in a façade to receive façade grants, when she is not even complying at all with her rental rehabilitation grants.   

The State requires a public hearing whenever these Community Development Block Grants are applied for, to give the public a chance to comment favorably or unfavorably towards them.  I used the opportunity to declare the public records and reality conflicted with the public officials.

I referenced the June 8, 2015 Council Packet through the speech and include snippets from the pages I make note of in my five minute comment.  The result was that the city council did table the application until it could be corrected.  John Shay, who prepared the document with all the willfully prepared false answers, did not receive any kind of blame for his bogus application by the council. 

The city council, by the way, was trying to make the case why they were better than you for picking the city clerk and treasurer.  They never hold their other hires accountable for their unlawful and unethical actions, why allow them to put cronies and patrons in those positions who have no respect for the law or moral behavior?

"I will restrict my comments only to the issuance of Community Development Block Grants to 102 West Ludington, owned by a limited liability company KDMAC with members Kathy and David Maclean benefitting from the proposed grants. 

Kathy Maclean has been the treasurer of Ludington's Downtown Development Authority (DDA) since January of 2006, just after she was appointed to the DDA position by Mayor Henderson, and affirmed by this city council.  By statutory law [MCL125.1654], as a member she must subscribe to a constitutional oath of office, which she recently has, I have seen it through a FOIA request.   This makes her an appointed Ludington public official.

The DDA must make all of its decisions and deliberations on public policy at an open meeting where precise minutes are kept [MCL125.1654].  The treasurer by statute [MCL 125.1655] " shall keep the financial records of the authority and who, together with the director, shall approve all vouchers for the expenditure of funds of the authority."

With this background in hand, please look at page eight of your council packets, part of KDMAC's application:  Question 4: 

  Kathy and David Maclean are KDMAC Ventures LLC, this was noted in official minutes back in [March 15] 2010 when they were looking for and got OPRA tax relief from this council.  This question here should have been answered yes, and explained.

Was this a simple mistake?  Look at page 9, Question 5 asks will any person who is an appointed official of the City of Ludington obtain a financial interest or benefit from the façade grants;

Repeating-- both Kathy and her husband are members of KDMAC Ventures LLC, the beneficiary of these façade grants.  Saying 'no' to this question is fraud, pure and simple.  Our city manager is contributing to this fraud by allowing this application to come before you with this obvious false information.  Even as late as the June DDA meeting, this relationship has not been noted.

His signature of the application on page 16 denotes he has reviewed the application and found nothing amiss, even though he has served on the DDA Board with Kathy Maclean since 2006, ten years, and knows full well she is an official of this city. 

On this same page, question 31's answer states that "The DDA is contributing $1000 per building towards architectural drawings."  

Kathy Maclean as treasurer of the DDA by law "shall approve all vouchers for the expenditure of funds of the authority."

Therefore, Kathy is effectively writing a $1000 check using local public funds to benefit her and her husbands company.  Section 2-72 of our city code says:  "No officer shall make or participate in a decision in his or her capacity as an officer knowing that the decision will provide such officer, a member of the officer's immediate family or a business with which the officer is associated, a financial benefit of more than a de minimis nature [over $100]"  Other city and state laws regarding a code of conduct for public officers apply here as well.  This is dishonest and against the law to cover up this relationship.

Back in 2009, it should be noted, the Macleans pre-applied and applied for substantial rental rehabilitation loans to renovate four rental units for the upper apartments at 102 West Ludington.  These applications were made months before they owned the property itself, which was also against the law and fraudulent [evidence of this will be shown, if Kathy and David Maclean claim otherwise].  According to an April 2011 article in the Daily News, those apartments were fixed up and ready to rent. 

Four years later, we learn that none of those apartments have renters in them, look at page 23 and 24 of your packets.  

The state's rental rehab mandates are for the created apartments to be rented out during the first five years, and marketed to the general public when vacancies occur.  There has been no advertising to fill these vacancies noted, though I've looked diligently [see below].   The Community Development Director assured me just a couple of months ago, that the city's rental rehab units are filled with renters.  That too was a lie.

Kathy Maclean, John Shay, and Heather Tykoski are defrauding the state and the citizens of Ludington to make façade improvements on a property [around here I was interrupted by the mayor informing me my time was up, I would have continued...], it is in actuality a façade of legitimacy, covering up fraud and abrogations of public duties by each officer.  If the council approves this as written, you are as guilty as these officials of doing the same."

Here is the State's guide from the Michigan State Housing Development Authority (MSHDA) telling us about landlord obligations:

As of June 8, 2015 a view of MichiganHousingLocator.com for zip code 49431 has no listing for 102 West Ludington Avenue, or for that matter, any of the other downtown rental rehabilitation projects within the last five years, though there are thirteen other listings.  Oops.

There comes a time when we must ask ourselves why should we tolerate these three public servants appointed and affirmed by our elected officials to disobey the law and rules of ethical conduct when the city council allows it so openly.  Are you to that point yet?  Wait for more shoes to fall on this one.

[XLFD]

In the Wednesday paper, the printed edition of the newspaper related: 

"During the only public comment made during Monday's public hearing, Tom Rotta questioned if the application was filled out correctly because Kathy Maclean, a co-owner of KDMAC Ventures, was not identified as a city official.  She is treasurer of the Ludington Downtown Development Authority. 

Shay said Monday the city would revise the grant application to let the state officials know Maclean serves on the DDA Board.

Rotta also noted that Maclean's business would receive an artist' drawing of what the improvements would look like, which is about a $1000 value. 

Shay said the DDA pays for those drawings for all the businesses seeking façade improvement grants."

I think I used the word 'fraud' and we all used the word 'architect' (not artist).   At least they spelt my name right, it's better than what I usually get.

[shinblind]

Hmmmm  could it be that the lack of  putting these rentals on the market was a  backdoor  underhanded deal knowing that there was a rental inspection law in the offering?

A new inspection law most likely would lead to a short fall of available rental housing as current rentals are deemed out of compliance,  and this would make any rental property in compliance more valuable.  You could then lease these empty apartments at an inflated price, or sell a building with multiple pristine rental units at a premium price.

Could there be more here than just multiple unrelated administrative errors? And should the question even arise except by the suspicious  body of work from City Manager John Shay. 

Grantgate unwinds.

[Willy]

This entire situation is akin to a tripod which supports potential corruption. The first leg of the tripod is, of course, City officials who act contrary to public good and whose actions benefit the second leg which are those that receive special treatment  from the potential fraud and corruption. Then there's the third and probably most important leg which allows the first two legs to stand and continue their bad behavior. That third leg is an accommodating news media which lies about, misrepresents and withholds facts that are important for citizens to know in order to recognize the wrong doing that is taking place. It also prevents the citizens from knowing the information needed to take corrective action to curb any potential corruption. I liken X to uneven ground beneath Ludingtons tripod which keeps those in charge forever trying to adjust so they can continue their bad behavior. We all owe him a great deal of gratitude.

[XLFD]

I am definitely uneven and dusty.  I surely don't like those guys in the local print news media putting their third leg on me either.

Thanks for the support, I definitely appreciate it, even though I think I would still be fighting and exposing the area's  corruption even if I was just talking to crickets and what-me-worry officials.

[AQUAMAN]

Willy, I truly think your analysis of this situation akin to a tripod of corruption is a very valid fact. This tripod is evident in many other cases too if we take the time to look at all circumstances recently created over the past few years. Examples: signgate, where Tykoski got the contract for 18 ct. Gold signage dowtown, Tykoski's purchase of a home, way below it's fair market value, in a ward where there was also a vacancy, and he just coincidentally got an appointment to the council, and also got a big reduction in assessment values on the new home. Then there's the other contracts for emergency water main repairs, water tower painting, overbilling by the city attorneys' offices, and much more. The "tripod" would appear to be a very stout and strong obstacle to justice to knock down and put it out of commission. But, X is showing it can be done, with persistence, and a lot of perspiration. 

[Jasper]

Don't these grant forms require a signature which upon signing the person(s) have agreed the information provided is accurate and true? I don't know, but crap a duck.... if it is that simple to fabricate "without  background information sign me up already." 

In the video of the meeting, I failed to understand  Wilson's attempt to justify all this contract stuff.  Is not the first step in applying for a grant....to apply for it??  Then a contract is put in place after a grant has been approved?  Wow!!!  So, in essence what the Ludington City Council via their Attorney Wilson, is anyone can fabricate a request for a "government grant."  And the COL will approve approve it, unless it comes under question.  

So, the question is?  The grant the McClain's received for the apartments....was it legit.  Did Ms. McClain advise that she wan an employee of the COL?

So, according to the info that you provided at the Council Meeting, the Maclean's have not fulfilled the requirements when applying for their first grant for those apartments.

If that is the case....then why would one even assume they would qualify for a grant for their bicycle business?  Is there not a follow-up when these grants are approved, to assure the "contract" was followed through?    

Hell, sign me up for government grants!  

 

[stump]

On the comment about the water bottles, you couldn't expect the council to drink city water , It's PURE LUDINGTON, not pure Ludington water