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Escanaba DDA looks at project spending

ESCANABA — The Escanaba Downtown Development Authority took a look at how to best spend funds for projects during its Thursday meeting.

One of the key concerns for the authority was the funding of sidewalk repair projects on Ludington Street. In a budget request presented to the board Thursday, the DDA Director Ed Legault proposed budgeting $12,000 for the repairs in the next fiscal year and estimating budget for the remainder of the 2019-2020 fiscal year, which ends June 30, at the same amount.

However, the DDA has only spent $6,000 of the $12,000 budgeted for the current fiscal year thus far, and concerns were raised by Escanaba Mayor Marc Tall, who sits on the authority as a trustee, that the $12,000 budgeted might be inadequate.

“I’m sure there’s a need for more than that,” said Tall.

Legault noted the budget could be amended in the future.

“Right now, the reason I kept it at ($12,000), Marc, was that’s what we have in our deficit elimination plan. If we see that as we get closer we can add more money to it, we can certainly add more money to that,” said Legault.

The deficit elimination plan, which was recently approved by the city council, is a document required by the Michigan Department of Treasury due to the way an internal loan from the city to the DDA for the construction of the Escanaba Marketplace must be reported. It was noted at a recent city council meeting the DDA is currently about a year ahead of its repayment plan. Authority members Thursday also pointed out the city benefits both from the DDA’s projects and from the 3 percent interest rate being assessed to the DDA, which is a higher rate of return than some of the city’s investments.

Despite the DDA’s progress repaying the loan, the deficit elimination plan adds an extra level to the budget planning process and funding any specific projects. While multiple authority members agreed additional funding for sidewalks was necessary, with some suggesting doubling the budgeted amount.

“It’s not a matter of doubling the budget and saying we’re going to focus on this, because it’s all a matter of coordinating with public works to where they’re going to be,” said Escanaba City Manager Patrick Jordan.

Ultimately, the authority agreed to maintain the $12,000 limit for the time being, with the understanding budget amendments were possible at a later date.

Another item included in the budget was a $750 line item for the Lunch on Ludington event series, which brings musicians to the Escanaba Marketplace during the summer months. Last year, organizers self-funded the hiring of musicians and the DDA supplied the Marketplace facility at no cost.

“You might think it’s the same people that would come every time. Based on the music and the musicians, they all seem to have their own following — some are the same, but there are many different people that come, and it’s an opportunity where they get to see the Marketplace in use, and we actually got two rentals from people that attended or performed at Lunch on Ludington,” said Legault.

A planned improvement project to the kitchens at the Marketplace was also discussed, however the specific cost of the project is still being determined. Legault said he expects to have final numbers for the project, which could be valued at up to $105,000, by the February meeting.

Even if the project does cost the full amount, the DDA will only be responsible for about $15,000 of the project. The rest has been funded by grants from the Michigan Department of Agriculture and Rural Development and the Hannahville Indian Community.

While not included in the budget, authority members also urged Legault to begin looking for permanent signage that could be posted at the Marketplace to advertise the facility as a rental and to work with the Delta County Chamber of Commerce to make rental forms available to the public.

In other business, the authority voted to send a letter to the city council in support of a moratorium on new hotel construction following the construction of a hotel at the site of the former Delta County Jail. The moratorium was requested by the project’s developer, Proxima Management, and the DDA’s letter will be a largely-symbolic demonstration of support, as the city council will ultimately decide whether or not the moratorium is granted.

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