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BUCHANAN — Discussion about how to pay for a $1.5 million shortfall on the upcoming downtown infrastructure project was a major topic at Monday night’s Buchanan City Commission meeting. Commissioners also acted on two liquor license requests and learned about upcoming meetings on a proposed merger between SMCAS and Medic 1. 

A majority of the meeting featured a discussion of the city’s options to cover the shortfall in the upcoming $19.4 million downtown infrastructure project.

      City financial consultant Andy Campbell presented information on the current financial situation regarding the downtown project and the city’s options in covering the $1.5 million shortfall. The project which includes replacing water and sewer lines as well as downtown streets and sidewalks is expected to start this spring.

      Campbell noted that the U.S.D.A. low interest loan will cover only the water and sewer work and not the streetscape improvements. He reported that the city has pared down the streetscape part of the project three times over the last year or two in light of increasing construction costs and inflation.

      He said that the initial $2.9 million shortfall in the construction budget has been pared down some already with the receipt of $900,000 or so in grants. The city has already contributed $300,000 from the general fund for the budget and is considering putting in another $213,166, leaving around $1.5 million to be financed.

      Campbell told commissioners they could use additional monies from the general fund to cover the $1.5 million but warned them that such a move could leave the city vulnerable if there’s another economic downturn where less revenue is coming into the city.

      While no decision was made Monday, he said the commission will have to decide soon on whether to bond the $1.5 million through a 15 year loan. He said a 15-year loan would require a pay back of an estimated $145,000 a year.

      One possibility mentioned by Campbell and commissioners was taking the four mills currently levied by the city for general street repairs to the streetscape project to offset some of the costs associated with the shortfall and paying back a loan. He also urged commissioners to continue pursuing federal “earmarks” to cover some of the project costs.

      Community Development Director Rich Murphy spoke next, announcing that a community meeting on the downtown infrastructure project will be held March 3 at 6 p.m. at the Buchanan City Hall. City officials, the contractor and engineers will be on hand to update people on what to expect once the project gets started.

      The first work people will see being done downtown will be the removal of trees. That work will be followed by constructing the new sanitary sewer line from the wastewater treatment plant to the downtown, upgrading water and sewer lines and reconstructing downtown streets and sidewalks. All the work is expected to be done by next spring and will require detours at times.

      Murphy gave good news about two new business proposals for the downtown. A new tasting room is planned for the old bank building at 201 East Front Street on the northeast corner of Front and Main and the new owners of the B & W Inn are applying for a social district liquor license at 116 Main St.

      Jennifer Martell and Michelle Fletcher have purchased the former B & W Inn and plan to re-open as soon as they get their liquor license and other paperwork back from the state. The company is B & W’s Pour Decisions LLC. Commissioners gave local approval for them to get a new liquor license under the state social district rules.

      Commissioners also gave local approval for an off premises tasting room license for Stronger Wine Company at 201 E. Front St. Sidney Finan has purchased an existing 15 acre vineyard on Madron Lake Road and wants to open a tasting room in the former bank building at 201 E. Front.

      Finan said Stronger Wine makes wine to sell and distribute but also wants to bring people to downtown Buchanan to showcase what the city has to offer. Murphy said the company will be back at the commission’s next meeting to get approval for a social district license.

Commissioners approved marijuana license renewals for Redbud Roots, for four adult use permits and one medical marijuana permit at their facilities on Post Road and Terre Coupe.

City Manager Tony McGhee reported on a couple of items coming to the commission. Commissioners approved a first reading of a fire prevention and protection ordinance Monday and will be acting soon on a new rental housing ordinance and a new rate structure for inspections.

Commissioners said their goal is to make sure property owners do their due diligence when it comes to fire prevention and protection, but not to put an undue burden on people trying to do their best as they make a living.

McGhee also reported that SMCAS and Medic 1 will be holding two meetings in different parts of the county to get public input about a possible merger between the two ambulance services. The first meeting will be Feb. 27 at 4 p.m. at the Berrien County Health Department in Benton Harbor and the second on March 13 at 4 p.m. at the Oronoko Township Hall in Berrien Springs.