By By JOHN EBY / Dowagiac Daily News
At its last 2006 meeting, Dowagiac City Council Monday night adopted an ordinance introduced at the Nov. 27 meeting to deny Vineyard Place apartments the same payment-in-lieu of taxes (PILOT) given to Eagle's Wood.
"As we discussed at the last council meeting we have some issues with that," City Manager Bill Nelson said, "but after the first reading I received a call from the group that will be the new owners of Vineyard, and they are apparently planning to do some fairly significant renovations to the apartments using some MSHDA (Michigan State Housing Development Authority) funding. They would like to come in and talk to us about a PILOT for those improvements."
"That being said, however, (City Attorney) Mark Westrate has suggested we continue and adopt this ordinance tonight to make sure we don't have any issues with the old ownership who, frankly, just applied prematurely. Then the new group can reapply at a later date once we have plans in place. I would expect (that meeting) to happen in the next couple of months. We're essentially denying the initial application. The new ownership group will be able to reapply once they have their plans in to us."
PILOT agreements aim to encourage new community development as a requirement for financing through MSHDA.
Nelson said at the previous meeting that a PILOT agreement negotiated at the state maximum of 12 percent of gross rent revenues, the city and other taxing jurisdictions would see an $80,000 annual reduction in revenues for a project that has been in place for more than 20 years.
"If they were to initiate new construction and that was a condition of the MSHDA financing, as we have with Eagle's Wood and Eagle's Trace, at that point I think we would recommend that," Nelson commented Nov. 27. "It's a totally different set of circumstances."
In other Dec. 11 business, the council confirmed Mayor Don Lyons' appointments offered by Mayor Pro Tem Wayne Comstock of reappointing Leon Anderson Sr. and Jane Winchester to four-year terms expiring in December 2010 to the Board of Canvassers and reappointing Charlie Maher, Richard Judd and Alan Fricke to four-year terms expiring in January of 2011 to the Downtown Development Authority (DDA).
Council authorized the finance director to pay out $458,926.98, including $317,707.75 for bills and $141,219.23 for payroll, including $41 to Laylin Welding. Third Ward Councilman Leon Laylin abstained. First Ward Councilman Darron Murray was absent.
Council members also reviewed the 26th annual Christmas parade, praising its organizer, DDA and Chamber of Commerce Program Director Vickie Phillipson, and heard a citizen complaint from Robert Mortimore about speeding on Riverside Drive and Hill Street.
"Oodles go 45" and some top 50 leaving Dowagiac Middle School in the afternoon, he said.
Third Ward Councilman Dr. Charles Burling, who has his dental practice on the stretch, noted he's seen some deer limping, suggesting they were struck by vehicles.
Mortimore also suggested that several minutes of silence be observed communitywide for troops in Iraq and Afghanistan.
"People who have never been in war don't know what it is," Mortimore said.
Mayor Lyons acknowledged a Christmas card from Corinne Hoyt and wished Dowagiac a merry Christmas and happy New Year.