City Manager Advises Cronyism Over Capitalism to City Council

An interesting memo is included in this Ludington City Council's meeting packet on p. 68 about the proposed sale and development of the bowling alley block.  The city council tonight at 6:30 PM will decide whether to accept the offer on the table, a proposal that will sell the two parcels mentioned for $500,000, in exchange for developing low income housing and receiving tax breaks from the city itself that will likely crest $18 million just by the long term PILOT agreement. 

The discussions over these agreements between the city and the development team of Bob Jacobson and John Wilson were done outside of open meetings, apparently spearheaded by John Wilson to deal with our feckless City Manager John Shay, and the same city attorney that works, lives in, and works for the City of Manistee, Richard Wilson.  The result is a 48 year PILOT that takes back $6 million more from the city to the developers than the construction and other costs are.  The short-sighted deal sells our children's and our children's children future down the river.  Provided they can still afford to live here.

What is perhaps the most revealing about how our city manager's mind works, however, is that he is advising the council not even to consider a second offer made to the realtor of record for the property in question.  It betokens a straight development deal that would not need to qualify for a PILOT.  Perhaps it would offer enough to make it so that the city would not have to raise money through tax increment financing to erect a new fire station, as this one does.  Maybe it would actually be private investment money for real growth, not public money for the appearance of growth that quickly disappears and turns into squalor.

With this potential choice what does our city manager advise?  Please read his own words:

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This is so monumentally stupid it is beyond belief..... What is wrong with the present location of the Fire dept....? if it is too small or run down or whatever, REBUILD or ADD ON TO IT.... You own all the land RIGHT NEXT TO IT..( what is more, the condos across the street probably like having a 100 foot ladder truck parked right by them. Or how about the ridiculously dangerous House of Flavors right across the street the other way...? We have already had to evacuate people from their homes because of them. So why not have the emergency personnel RIGHT THERE...? ...Typical John Shay logic.... The sooner we are rid of him , the better off all of Ludington will be.

If I'm not mistaken, this Shyster Shay idea, again, is against the City Charter rules. This man enjoys making a mockery of our city charter, refusing an oath of office, denying common public file information, being rude and condescending to locals, and abusing his powers. Making favorable sale decisions behind back doors for a single buyer of city property, while others also try to make bonifide offers, is against ethical and legal conduct. The city, just like in contractual negotiations for work projects, is supposed to get the most favorable result, financially. It's not supposed to be for Shay's benefit, but all taxpayers. If someone offers more for this parcel, they should be entitled to the purchase, just like selling anything else. If the city council doesn't act in accordance with solid thinking and principles on this one, it will also prove that they are lazy, and don't think for the good of Lud., just be led around by their noses by the City Mgr.. ( On the face of this, it would appear someone could/would get a "kickback"), if the decision passes. Pretty obvious in all our faces, not even trying to hide it.

It should be noted, regarding the moving of the LFD, that the property noted, would appear to have a conflict of interest, at least for me. That former Lakeshore Lumber property, was, and may still be owned, by former City Councilor Brent Scott. The son of former Mayor Jack Scott is whom I refer to. Isn't this a bit shady? I mean, a conflict of interest? Why that particular property, of all that's for sale, and already owned, by the city right now? I beg to be confirmed, or corrected, in any case, thanks.

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