
Clare City Manager Ken Hibl

Commissioner Tom Koch
CLARE – The Clare City Commission has renewed a multiple year contract with Middle Michigan Development Corporation to assist in stimulating the local economy despite one commissioner’s suggestion MMDC’s advice could be slanted.
Commissioner Tom Koch at the Monday, Aug. 2, commission meeting repeated arguments he raised in July when he had an invoice to pay MMDC $12,500 tabled.
Koch’s dissatisfaction with the non-profit economic development organization based in Mount Pleasant can be traced back to late last year when it presented a comparable analysis on two potential sites for a new industrial park.

Jim Allen, former Clare city commissioner
Koch heard MMDC say there are no local dollars to put up as a match to acquire grant dollars to buy and develop private property adjoined to the current industrial park on the city’s south end, an option Koch favors so far, convinced it can be developed much less expensively.
Thus, the shortage of local dollars sweetened an offer presented by local developer Tom and Ron Kunse of the Clare Northern Group to enter into a public/private partnership.
If the city were to buy 40 acres he owns on Colonville Road, he would share the costs of building a park by paying to extend an existing sanitary sewer gravity line near the Burger King restaurant to the site and to share the cost of building a new water tower.
The city needs a water tower on the north end with or without new industry.
Already skeptical on facts and figures, Koch was stunned even more a few months ago during budget discussions when he learned the Local Development Finance Authority, or LDFA, has $250,000 banked presumably to use for industrial development.
The LDFA and MMDC work in concert on matters of development.
To address the latest wrinkle, newly appointed MMDC director Brian Anderson addressed the controversy last week. With him were several MMDC officials, and a delegation from the LDFA led by Chairman Jim Allen, who coincidently Koch had defeated in the city commission race four years ago.
Heads of several manufacturing companies also were prepared to speak on behalf of the MMDC.
Anderson explained Kunse’s Clare Northern Group had pledged a local match of private dollars to a potential Economic Development Administration grant.
Private land on the south side is not part of the existing industrial park therefore no LDFA money can be used as a grant match, Anderson said.
“LDFA law states no money can be spent outside the boundaries of the district,” Anderson said, adding that the LDFA could take steps to change that.
“Land would have to be incorporated into the district,” he said.
As for information given last year, Anderson rejected the notion there was any intent to mislead the commission.
Whether it was a matter of interpretation or misstatement, what was said should not be evidence to cancel a partnership between the city and MMDC, he said.
Koch wanted to know how the MMDC determined there were no local funds available for a match. “Did you make it clear to us if you change borders of the LDFA, there may be funds?”
Based on assertions made last year, Koch had dropped his counter proposal.
Koch admitted he had not noticed the cash build up in the LDFA account. “This part got by me,” he said. “We looked at it, but we didn’t see it.”
Allen objected to accusations either the MMDC or LDFA mislead the commission.
After looking at the two locations, he said “going north made more sense because there was an input of money from individuals.”
However, Allen and Commissioners Jean McDonnell and Bill Horwood protested that any conclusion has been made. Officials await findings of the MMDC on whether grants for industrial development are even likely to materialize.
“The idea was to study the north project and apply for grants,” Allen said. “It wasn’t to do the north project.”
Allen questioned whether the LDFA money can be accessed while the LDFA is still making payments on an outstanding bond.
But the issue at hand, Allen reminded the group, was not the merits of developing an industrial park but whether to renew a contract with the MMDC.
City Manager Ken Hibl said the administrative staff recommended continuing this relationship and authorizing payment.
Commissioner McConnell agreed and made a motion to that effect; second made by Commissioner Horwood.
McConnell said Koch was wrapping a park proposal and MMDC into one lump. “They are separate issues,” she said, adding that money from the Clare Northern Group may or may not be available.
“We were not told money may or may not be available,” Koch retorted.
Mayor Pat Humphrey said the partnership has lasted a long time. “I don’t see we are misrepresenting taxpayer money.”
Koch voted against the motion that passed 4 to 1.
As for the MMDC, Anderson elaborated about the work and results garnered for the city of Clare during the last 20 years. He previously had to do a similar presentation when a Clare County commissioner objected to renewing the contract between the county and MMDC.
City Commissioner John Koch, the newest commission member and a relative of Tom Koch’s, said he appreciated learning about the process and accomplishments. Commissioner Horwood thanked Tom Koch for raising questions, because it brought to light what the MMDC does.
“We are working behind the scenes,” Anderson said.
According to Hibl, the MMDC “has played a key and vital function in nearly every facet of economic development success we have experienced in the past decade.”
Beyond an industrial aspect, the organization has participation in Main Street’s economic restructuring committee, the Clare Railroad Depot committee, the East Michigan Council of Governments on the city’s behalf, providing ethics training to local businesses and city workers, initiating an Assets Based Community Development initiative for the county, among many more activities.
Anderson has begun to query manufacturers on job training, how they can expand, and what they need to retain and add to the work force.
MMDC has been instrumental in surveying potential entrepreneurs who are eligible and interested in opening in a business incubator. Planning is underway, Anderson said.
“If there is more we can do, we are open to suggestions,” he said. “We look at this as a partnership. We make sure the needs of municipalities we serve are being met.”