The Statecraft of Floracraft

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.

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    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.

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      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. 

       

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        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.

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