East Tawas streetscape project moves step closer
by John Morris

EAST TAWAS - At a special meeting Monday with the city’s Tax Increment Finance Authority (TIFA), the East Tawas City Council agreed to proceed with the streetscape project and to draw up the paperwork for up to a $2.3 million bond issue to pay for it.

Bids for the streetscape project were opened on April 22 and TIFA members met twice, on April 30 and May 1, to discuss the project, the bids and financing options.
What the authority recommended to the city council at the special meeting was that TIFA would fund the project through a 25-year, $2.3 million bond. TIFA also said it could use monies it set aside for two other proposed projects - $154,000 toward the West Westover reconstruction project and $185,000 for the new East Tawas Library - to pay for about $300,000 to fix drainage issues in some parking lots along the streetscape project.

“The library is still a strong TIFA commitment,” said TIFA Chairman Kevin Jungquist.

Jungquist said TIFA has approached the city’s Urban Development Action Grant (UDAG) board about borrowing the $185,000 to help the authority’s share of the proposed library project. The UDAG board agreed Friday to commit up to $185,000 until Dec. 31, 2010, for a potential loan for the construction of a library if TIFA funds are not available.

Mayor Bruce Bolen, however, raised concern that TIFA is putting all its eggs in one basket and won’t have much money to do other future projects, such as West Westover, a new library and Harbor Park.

“At this time, the recommendation is to put all of our resources into the streetscape,” Jungquist said. “We know the bonding is based on one percent growth and that is conservative.”

Officials said last year’s TIFA property valuation growth rate was at 2.93 percent.

Still, Jungquist said with the budget for the streetscape project, it will be four to eight years before TIFA is “cash flow positive.”

“We’re relegated to making TIFA a streetscape authority,” Councilman Tim Freel said. “It didn’t mean to deplete TIFA of it’s other projects.

“What will you need a director for full time?”

TIFA officials said 75 percent of its budget goes toward projects while the remaining 25 percent goes toward the director’s office.

Still, Jungquist said with the budget for the streetscape project, it will be four to eight years before TIFA is “cash flow positive.”

“We’re relegated to making TIFA a streetscape authority,” Councilman Tim Freel said. “It didn’t mean to deplete TIFA of it’s other projects.

“What will you need a director for full time?”

TIFA officials said 75 percent of its budget goes toward projects while the remaining 25 percent goes toward the director’s office.

“It’s been a passion of the board to see this project through,” Jungquist said. “We want to go forward with a complete and justified plan.”

Bolen said the West Westover Street project also is a priority of the city council and the TIFA funding portion is a big chunk of the nearly $500,000 project.

TIFA member Pat Ruster said the panel has spend considerable money of time looking over different aspects of the streetscape project.

“We want to do the whole project, if feasible,” he said. “We can certainly go back and chop it up.”

City Manager Ron Leslie suggested TIFA used the city council’s earlier recommendation and pull the parking lots with the drainage issues out of the streetscape for now.

“My bottom line is that we’re a little high (on the overall cost for the streetscape project),” Leslie said. “We want to get it (parking lots) done and it’s cheaper to do it now than to re-engineer it.

“West Westover is important to the council. It will be tough to fund without the $150,000 (from TIFA).

“We might want to step back and reconsider how much money we’re going to put into one basket.”

The East Tawas streetscape project includes new streetlights similar to those at Harbor Park and the community center, decorative brick pavers and exposed aggregate sidewalks, new bike racks, planters benches, drinking fountains and waste receptacles, four decorative concrete intersections with brick crosswalks and traffic bump-outs along Newman Street, including a “compass rose” at the Westover Street intersection, greenbelts added to parking lots and several new trees and tree guards and grates and new planters and floral hanging baskets for the street lamps.

TIFA is scheduled to meet at least once next week to finalize it’s plans for the streetscape project while paperwork for the bond issue is expected to be presented to the council at its meeting May 19.

Officials said the bond sale may be completed by the end of the month at which time the streetscape project could begin.