The Statecraft of Floracraft

[XLFD]

At the December 9th, 2019 meeting of the Ludington City Council a public hearing was held on the granting to Floracraft of an Industrial Facilities Tax Exemption (IFTE) for a 27,000 sq. ft. warehouse they would be adding onto their property.  The exemption would last for 12 years on the $1.2 million estimate of real property and 6 years on the $74,000 of personal property, effectively cutting taxes for both by 50% over there respective terms.

I came to this meeting prepared to speak briefly on the topic, I was a bit more energized to do so when I arrived and saw a triumvirate of panhandlers from Floracraft sitting in the front row, with former Councilor Wallace Cain taking my semi-reserved seat, third from the left of the podium.  I sat two seats further down.

At 14:30 into the meeting, Eric Erwin (above) , Floracraft President and CEO rose to talk about how Floracraft has been an "unbelievably great citizen of Ludington for over 70 years" in a brief presentation of why the council should pass the tax abatement.  I got up shortly thereafter as an unbelievably grating citizen of Ludington and made the following observations at 17:25 in:

December 9th, 2019 Ludington City Council meeting from Mason County District Library on Vimeo.

"In my recollections of people coming before the city council urging lower property taxes or complaining about high property taxes in Ludington, I have yet to see anybody from Floracraft among their number.

Yet, I see them regularly coming before the council looking for another special tax exemption or abatement from taxes that other companies and individuals bear without seeking exemption or abatement. I regularly see councilors approve these tax abatements as if they are routine costs of doing business, but I've yet to see them pass a tax break for everyone.

I hope the good people of Floracraft and the good people on this council reflect on fairness for all this holiday season. [END]"

President Erwin felt he had to address this impertinence, by reminding everybody of a fact that I was well aware of, Floracraft giving their employees back nearly $4 million last year.  Instead of directing his comments at the chair, he frequently glowered noticeably in my general direction in telling of how they were going to be doing more things like that this year.  

I was half-prepared to mention that Steve Carlson, Chief Operating Officer of Floracraft, who could not make it to the meeting because he had to attend the Ludington school board meeting, and Floracraft owner Lee Schoenherr, who spearheaded and financed the effort to dramatically increase everybody's taxes with the $101 million school bond proposal, were instrumental in raising everyone else's tax burden and making 'community schools' a thing of the past.  Less than a fraction of one percent of those received any part of the Floracraft's employee appreciation giveaway.

Councilor Brandy Henderson tried to salve any wounds created by my 'impertinence' by roundly praising the company.  Councilor Angela Serna asked the questions that filled in the blanks left out in the application, the job that councilors should be doing when granting such abatements.  Councilor Les Johnson recalled one time when Floracraft asked for a tax abatement, City Clerk Deb Luskin couldn't recall whether there were any IFTEs that Floracraft was still in.  

Floracraft actually came to council an average of every other year for tax abatements and exemptions back between 1998 and 2009.  Here are those six times, the last one showing best how the company approached getting tax breaks from Ludington: 

As I noted, over the last two decades plus, Floracraft has came before the Ludington City Council looking to receive a sizeable tax break, quite often using a subliminal threat of moving out of the city if those tax breaks aren't given with unanimity and high praise by the council.  

There is no records of individual officers or employees of Floracraft appearing at 'truth in taxation' hearings or offering public comment requesting tax breaks for everyone-- President Jim Scatena did come before council and lobby for tax breaks for the Ludington Daily News similar to what Floracraft had been getting the previous decade.  

Yet, the Floracraft owner and officers seem to have bankrolled the school bond issue raising taxes for all of the Ludington school district, taxes they are now looking to get out of paying as best as they can while telling us that they are the bestest ever citizen of Ludington. 

We should all be thankful for what Floracraft actually contributes to the community, but when they act this way, it all seems somewhat hypocritical if you ask me.

[Du Wright]

Similar thoughts as regard to the tax breaks, X, but no one but you have the guts to see the truth probably because the jobs they do provide are too valuable to lose in our job-losing community. It would be nice to see if their new innovative products are green-and-environmentally friendly. Ha ha! I personally would feel much better if they converted their processes over to create recycled paper products to take the place of styrofoam. Now that would be innovative. The world needs biodegradable paper straws, flower arranging products that don't pollute forever, and biodegradable takeout food boxes. This young generation that promotes styrofoam and diesel ship engine travel is stuck in an old polluting mold, and should think outside of the styrofoam box with all their fancily-worded goals! Sad that a major employer creates styrofoam, one of the most non-biodegradable products polluting the landfills and oceans. And they've done well to promote the need for an non-neighborhood $100 million plus dollar grade school, quid pro quo for tax break--but they promote a Christmas party as more give back to the community. I wonder how much in taxes the city is losing, or how much the rest of us have to pick up for their "break?" And no jobs created with this tax break? Thanks Councilor Serna for pointing that at out. And how could Councilor Rozelle possibly vote against her glitter-student father? Didn't that show a bit of a conflict?

[XLFD]

If I was employed by the City and made my brief ambiguously passive-aggressive comment about Floracraft that I did last night, I would be jobless today, or at least receiving a strong reprimand.  Chief Funk was probably chomping at the bit until he remembered I wasn't on the LFD any more. 

That's why city hall will always be used by the likes of Floracraft, who can tacitly threaten to relocate elsewhere, and that's why the private marinas around the PM Bayou will always be abused, because they can't really go elsewhere, and if they do, it's just more business for the city marinas.  City hall has them by the dinghies.

[Du Wright]

Aeroclay. Biodegradable styrofoam.

https://www.seeker.com/biodegradable-styrofoam-made-of-milk-clay-di...

[Du Wright]

So does this article mean that Floracraft will begin extruding XPS styrofoam here rather than trucking it in? So will that put the pollution of local production in our air? If so, what's worse, the smell of extruded polystyrene in our air and the resultant carcinogenic pollution or semi-truck traffic?

https://www.floracraft.com/2019/07/01/floracraft-brings-production-...

[Freedom Seeker]

Is that a chemical-manufacturing zone right in residential area?

[Freedom Seeker]

If these things about extruded polystyrene are true, that has to be one of the worst places in town to let styrofoam production to manufacture. With the prevailing northwesterly wind the smell it could blanket a good part of the city. Well maybe that would be a solution for the sewer stench until the sewer plant is fixed.

[Du Wright]

Between the smell of BOD sewer from House of Flavors sewer overflow and Floracraft producing styrofoam and the blanket of diesel smoke covering the Waterfront Park the poor kiddies and tourists may be struggling for fresh air.  

[Du Wright]

EPS versus XPS strofoam described in the article below.

https://www.nature-pack.com/faqs/is-eps-styrofoam-biodegradable/

[XLFD]

I have been getting some feedback during this last day from several folks in the know that claim that they or 'friends' haven't seen any of the $4 million promised by Floracraft owner Lee Schoenherr last year, and promptly got that much money in positive advertising for saying he was doing so.  It's not shown on their 401k and not in their paycheck, lump sum or spread out.

I'm still hoping to see some proof from the company or these folks bringing the matter up, I have left a question on the Floracraft 'contact' page asking for an accounting, but they are under no compulsion to produce these non-public records.

[shinblind]

So they gifted their workers a mythical $4 million and all they want from the taxpayers $7.6 million to help them pay for it. Hmmmm. 

 

[XLFD]

I have since verified through Floracraft that the $4 million bonus is not scheduled to be paid out until the end of this year.  It seems odd that they announced it over a year in advance, but they likely figured they could milk the marketing of the 'gift' by getting the great PR last year, and more at the very end of this year.  It's the money Eric Erwin appears to refer to when saying that the company will be giving back to employees this year.

You are seriously overstating the amount of tax breaks they get, if I'm not mistaken, shinblind.  They will have property at $1.2 million SEV for 12 years be taxed at half rate, which I'm estimating to be a little over $200,000 for the duration.  

[Willy]

To me, this is a 2 edged sword. On one hand folks want an environment free from pollution and on the other hand they want and need jobs. Floracraft and House of Flavors are large employers in Ludington. Any business would like their taxes reduced just as everyone else. We all must realize that corporations and businesses do not pay taxes, their customers pay them when buying their products. They are included in the cost of doing business and are passed on to the consumers. No matter how you look at it the citizens are the source of all taxes. Let's also not forget that the citizens voted to raise taxes to pay for the unwise expansion of the school system. Not only did they approve more taxes they approved the move away from neighborhood schools which was a very foolish thing to do. The blame for all of this must also rest on the voters of Ludington who not only voted for more taxation but also voted for the people who give tax breaks to businesses. There is enough blame to go around and as long as voters remain ignorant and foolish this type of governance will continue. Thanks X for all the information.