City OKs funds for renovation
ESCANABA — The Gladstone City Commission agreed Monday to use $25,000 in Downtown Development Authority (DDA) funds to help pay engineering costs on a proposed renovation of a downtown building.
Patrick Johnson, owner of the Rialto Center, is seeking state funding from the Michigan Economic Development Corporation (MEDC) to renovate two commercial spaces and three existing apartments in the building, as well as add three or four more apartments.
The project’s cost of construction is estimated at $610,718 and would include renovations for a chiropractic business and an exercise/workout space and improvements on the building’s facade.
Gladstone Community Development Director Renee Barron presented the $25,000 budget amendment from the DDA during Monday’s regular meeting of the commission, which approved the agenda item in a 3-0 vote.
Commissioner Steve Viau did not sit in on the board’s discussion on the issue and did not vote due to conflicts of interest. Commissioner David Phalen was excused from Monday’s meeting due to an illness.
Prior to the commission’s approval, Barron explained that a city match is a requirement for the engineering study which is needed to apply for the grant. She also said, if the project is approved to receive MEDC funding, the city will be eligible to receive 18 percent of the project’s funding to administer the grant.
Barron informed commissioners that the MEDC has been encouraging Gladstone to apply for state funding for economic development projects. She also said the Rialto project would benefit the DDA district in meeting redevelopment goals.
The Rialto project, if successful, could encourage opportunity for more redevelopment projects in the city, said Barron, also noting, the city could seek a grant from the Michigan State Housing Development Authority for other rental units in the city in conjunction with the grant application on the Rialto building.
The rental rehabilitation portion of the grant will open the door for the city to apply for funds for additional downtown apartments to be considered for rehab, she explained in her report to the commission.
In other business Monday, the commission approved an agreement with the Gladstone School District to lease part of city hall’s upper floor for use as a classroom for five years in exchange for turning over to the city the district’s old bus garage at 901 Montana Avenue.
The agreement also includes the city vacating the current recreation building at 500 S. 10th St., which is located on school property. The school district has approved the agreement with the city.
The city would convert the old bus building into a new recreation and parks department at a cost of about $35,000, explained Eric Buckman, interim city manager.
The costs to renovate the bus garage will be offset with money from the future sale of the former Johnson’s Service Station at 821 Montana Ave., which the recreation and parks department currently uses for storage. Dr. Mary Cretens funds would also be used for the renovations, said Buckman.
Commissioners were also informed the city’s recreation department has been approved for a $35,000 MEDC Public Spaces, Community Places Grant to help fund construction of a non-motorized trail between Gladstone and Escanaba.
User fees for parks and recreation were approved for the 2016-17 year as presented by Recreation Director Nicole Sanderson. Existing rates remain unchanged, but new user fees were approved for the sports park ballfield and concession stand with the exception of organizations which have a contract with the city.
In other business, the commission agreed to look into using the services of the Michigan Municipal League to help search for a new city manager. A motion by Steve Viau — to hire Lordstone Corporation, Inc., to assist the city in hiring a manager at a cost not to exceed $10,000 — died due to the lack of support.
This past June, the commission unanimously voted to not renew the contract of City Manager Darla Falcon. Two days later, the commission appointed Water/Wastewater Superintendent Eric Buckman as the city’s point of contact person. Buckman entered a contract with the city on July 18 to serve as interim city manager.
Comments were made noting Escanaba recently posted for a new city manager shortly after Jim O’Toole announced his plans to retire at the end of March 2017.
In other business Monday, commissioners agreed to pay $10,000 to upgrade its utility online payment system to make the process much easier for customers to pay their bills, customize a payment date, and access billing history.
Gladstone’s utility billing system is used by city electric and water customers as well as Maple Ridge Township (Rock) water customers, and Masonville Township (Rapid River) sewer customers.
In regards to the newly-formed supervisors union, commissioners were informed to continue to submit questions regarding a union contract that will be negotiated with the union at a future meeting.
Public comments received at Monday’s meeting included concerns about the misuse of the city’s compost site, a request for a DDA spending plan, a recommendation that commissioners receive board training, and a city curb that vehicles often drive over causing nearby buildings to shake.
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Jenny Lancour, (906) 786-2021, ext. 143, jlancour@dailypress.net