Dowagiac City Council moves forward with ICG Building

Published 8:28 am Wednesday, February 12, 2020

DOWAGIAC — A project that has long been a concern for the city of Dowagiac and its school district has reached a resolution.

For the last five to six years, the city has been in conversations with three different owners of the former ICG Building located behind Dowagiac Union High School. At Monday’s meeting, the city council moved forward by unanimously approving a resolution to authorize a purchase agreement with Michigan Other Properties, LLC for the former ICG Building and the surrounding properties located in the area of Paul and Franklin streets.

“This is very important because this community has decided by taking a vote for a large bond issue to invest a very large sum of money into education at that high school and surrounding facility,” said City Manager Kevin Anderson.  “We have determined as a community this is a place that we are going to be in for a long period of time. Right smack in the middle of it is that former ICG property that is just continuing to deteriorate and deteriorate.”

With the current owner, the city has gotten to the point of being able to purchase the building for $150,000.

The city will also have additional costs of $20,000 for an environmental study to be done. More than 10 years ago, Anderson said the Environmental Protection Agency and the State of Michigan’s environmental division spent about a million dollars to clean up and investigate on the property.

“We are not particularly worried about the environmental piece because we have a good handle on it,” Anderson said.

He said the city is confident it can get rid of ICG’s metal structure for about $70,000 and then have a flat service at the property to be used as additional parking for athletic events and overflow parking. The city also plans to clean up around the property and add green spaces, walkways and sidewalks.

Anderson said the city is at the end of putting together a lease with Dowagiac Union Schools. While the city will purchase and own the property, the school will reimburse the city over time for demolition and other associated costs.

Anderson said the city and the school district will put together a final site plan for the property and then a financial plan.

The city will additionally take ownership of a park located next to the fire station, which will be included in the school’s lease. The school can include sports facilities on that land as well as part of the overall concept, Anderson added.

“Basically, from the state highway following Paul Street all the way to Prairie Ronde will be part of one large campus setting for the schools,” he said. “It really is going to be that finishing touch on the student project that has been going on.”

In the future, the school would have the right to purchase the property if it desired, Anderson said.

“This is a really good cooperative project between the city and school that has had many twists, turns, layers and nuances,” Anderson said. “At 3 p.m. on Friday when I got the signed document in my hand it’s like, ‘Is this really going to happen?’ I think the answer is, ‘Yes, it is.’”

Also on Monday:

• A resolution unanimously passed to declare 411 Maple St., a blighted property and a public nuisance.

• A resolution unanimously passed to declare 206 Ashland St., a blighted property and a public nuisance.

• A resolution was unanimously passed to authorize an application for a Community Development Block Grant for wastewater collection system improvements.

• A resolution was authorized to contract $40,000 worth of professional engineering services with Prein & Newhof for design services of a new T-Hangar building and taxi lanes at the Dowagiac Municipal Airport.

Each year, the city of Dowagiac works with the state to develop capital plans on how it will use grant funds to improve the airport. The bulk of the expenses for new hangars will come from grants, Anderson said.

The hangars will bring additional revenue because they will be rented out to pilots, Anderson said.

The plan is to break ground in June or July, as there is a timeframe to how long the state has to disperse its funds.

The city will pay about 5 percent of the $40,000 contract.

Currently, Airport Manager Oscar Azevedo said the airport has a waiting list for hangar space.

• A resolution was unanimously passed by council to authorize poverty exemption income guidelines and asset level test guidelines for the board of review.

The state prescribes the deadlines and income levels, which change every year, Anderson said.

• A resolution was passed by council to set a public hearing to gather input on the city’s proposed participation in the Michigan State Housing Development Authority’s MOD program.