City of Ludington Files Force Majeure Regarding Carferry Dockwork Due to Fed Shutdown

According to Manitowoc's Herald Times Reporter based on a release by Manitowoc Mayor Justin Nickles:

MANITOWOC - Mayor Justin Nickels says the federal government shutdown could delay the start of the sailing season for the S.S. Badger car ferry, hurting the local tourist economy.


In a Thursday news release, Nickels called for U.S. lawmakers to reopen the government, noting the city of Ludington, Michigan, has filed a notice of force majeure for work on the city’s car ferry dock.
Ludington cannot continue work on its dock without grant dollars from the federal Department of Transportation, Nickels said, meaning the popular ferry’s season could be on hold until work is completed.


The cities of Manitowoc and Ludington received $5 million federal grants last year for repairs on the docks, where the S.S. Badger loads and unloads people taking the ferry across Lake Michigan.

Manitowoc’s portion of the project is $1.3 million, with a local match of $279,000. Manitowoc also received $2.9 million from the State of Wisconsin through the Harbor Assistance Program for support of the upgrades, Nickels said.


Total cost for repairs on the Manitowoc dock are just more than $5 million, with Lake Michigan car ferry company picking up remaining costs.


Work on Manitowoc’s dock began in fall after the ferry’s season ended, and will continue through spring with plans for completion before the start of the 2019 sailing season.


However, Manitowoc and Ludington officials were informed that invoices for the federal grant would not be processed because of the shutdown, even though work continues on the docks and invoices are generated.


Nickels said Manitowoc will continue with the local government funding costs in anticipation of reimbursement from the transportation department once the federal government reopens. [End article]

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Our mayor, holding office hours, has not said anything about Ludington's action, which arguably should have come before the city council for discussion in front of the public.  Another Wisconsin media source put it this way (other than us no MI source has the story yet):

Nickels says the city of Manitowoc will continue to fund the costs of the project so dock work can complete in the spring, in hopes the federal government will reimburse the city when it reopens.
The city of Ludington however cannot carry the costs of the project during the shutdown.

Those cheap Badgers at LMC can fork over some of their own dough to fix their own docks if they want to start on time; I applaud the action of Ludington city leaders (though not the way they did it).

Interesting. I feel a similar thing could happen to the west end project, with the city carrying the grant for the state. If the state doesn't come through with the project, then Ludington taxpayer will foot the bill for construction, not just the interest and maintenance. Times are uncertain. Seems our city council doesn't care about our debt load. Who even knows the total anymore?

This is a perfect example of out of control Government. Why should private companies get tax dollars to put into their businesses? If the ferry can't run on time then that's to bad. Pay for your own repairs don't steal from taxpayers. I would rather see that 5 million go toward a border wall. We are overtaxed as it is but on top of that Washington has crushed us with debt our great grandchildren will have to deal with. Let the tourists swim to Wisconsin or better yet let them rent a kayak at the soon to be demolished Ludington Ave beach.

Willy, Willy, Willy. Too funny and sadly true. The only part of government in this is the Wisconsin side of the docks being owned by the city of Manitowoc, if I understand correctly? The Badger provides a lot of tourism commerce for both sides and perhaps justification of the grant, but should our government be in the business of promoting private business? The states have always promoted tourism. On the Michigan side, the docks are owned by LMC and city of Ludington had to with questionable action apply for the grant for the private company and jumped into the spider web.

It would really be interesting to see what the "REAL " numbers of tourism dollars brought in by the car ferry to the city business's . From what I have observed , people get off the boat , get in their cars and drive straight out of town. When I took the car ferry across on my way to Iowa , I didn't stop to look at nothing or spend a dime. I didn't by gas in Ludington either before I left.

I agree stump. Ludington is a pass thru town just like hundreds of other Michigan towns. If not for the beach and lighthouse there would be nothing to offer people just like other ordinary town.  People pass thru to get to the State Park, pass thru to get to Hamlin Lake and pass thru to board the Badger. That's probably why all these transplants are trying to change things. They have discovered, that besides family, there's no real reason to be here.

There are some interesting comments on the City of Manitowoc Facebook page and their mayor Justin Nickel's FB page (over 127 comments) regarding this  issue. 

That's why some of us like Ludington--family and natural beauty in a quiet setting. The DDA and those who claim to "Love Ludington" are changing the quaintness and most things that Ludington is. They seem to want to fight traffic, congestion, lack of parking, run for the suds, crawl to the pub's, and whatever other beer tent they can tie down in huge crowds with hyperbole excitement. When they sober up and almost pay off the debt, maybe they'll see that their sewers and streets need repair and grandkids have no sidewalks to walk to school, then maybe they will realize where their focus was.

Well said, FS, and if I may put it another way.  The last seven years around budget time, the city council without discussion and always unanimously, votes to exempt itself from state entitlement reforms by claiming that they know better than the State as to how to provide benefits for city employees (as benefits approach 100% of wages), and yet...

They will accept any idea from the State, however contrary to Ludington's character, in order to get grant money.  A water trailhead that would totally disrupt the West End Project they already planned?  Sure if you OK that $300,000.  Ruin Ludington's rental housing market by enacting needless inspections so that developers can move in and qualify for state tax credits and other subsidization and further disrupt the housing market?  Sounds like a lot of money coming in, not only from the state but the rest of the city who will have to take up the slack.  Spend millions to put in apartments on the second floor of downtown businesses that nobody wants to live in?  Lotta money available, if we don't get it somebody else will.  Etcetera.  

Interestingly, Lake Michigan Carferry put out a statement yesterday saying the Ludington dock projects are getting done through short-term financing of the project on both sides of the lake.  The financiers of the Ludington side are not revealed.  

It would seem to me that the changes and amendments to the original contracts with the Federal Govt. and the City and their contractors would be necessitating some actions by the city council rather than what appears to be 'executive actions' taken by the City that have not been broadcast to those who pay their wages.  This seems to be the new practice under Steve Brock, whether it's selecting a phantom deputy/assistant treasurer or replacing an assessor whose figures almost scare away a developer.

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