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OCP grant funding denied
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Tuesday, June 16, 2009 10:40 AM EDT
OWOSSO - After months of delays, the City Council decided using grant money to build a facade for the Lebowsky Center within six months was too risky.
The Owosso Community Players needed to raise $350,000 by June 1 to match a $350,000 state grant, which was part of a larger $1 million Vibrant Small Cities Initiative grant from the Michigan State Housing Development Authority to the city of Owosso.
The OCP was originally given an extension from a May 1 deadline to secure the $350,000, but was unable to do so.
OCP Executive Director Linda Keenan told the Council the group was in line to obtain the matching funds, but the Council voted 6-1 in favor of seeking other uses for the money. Councilman Ben Frederick held the lone dissenting vote.
“We're disappointed the Council decided not to release the funding for us,” Keenan said.
She added Chemical Bank recently approved the OCP for a loan that would cover the difference between pledged funding and the $350,000. The specific amount of the loan was withheld.
After holding meetings with MSHDA representatives, City Manager Joe Fivas presented the Council with three options. One option meant sending the $350,000 back to MSHDA, effectively losing the grant money but securing a relationship with the state for future grant applications. The second option would have meant granting the $350,000 to the OCP for the facade improvements to the Lebowsky Center. The option was dependant on facade construction being completed by Dec. 31 in accordance with a MSHDA-set deadline.
The Council elected instead to rewrite the original grant agreement for a “high-impact project in the district,” according to a memo from Fivas.
The option doesn't eliminate the possibility of the Lebowsky Center becoming a part of future grant applications, Fivas said.
“In talking with MSHDA, I understood that they are very interested in doing the Lebowsky project,” he said. “And I got a good indication that the resources would be there in the future for it ... but I didn't get a guarantee.”
Frederick said he disagreed with the course of action the Council chose.
“The difference in the options is $350,000 guaranteed versus maybe if the state has $350,000 later on,” said Frederick, who also works as chief of staff for State Sen. Roger Kahn. “Working in Lansing has shown me that when dealing with the state you can never be certain.”
The decision for several on the Council came down to timing.
“We've heard a lot of passionate talk about the Lebowsky Center,” Mayor Mike Bruff said responding to several community members who came to support the Lebowsky project. “I think the Council is in support of it too, but there are big timeline and financial concerns.”
Fivas said the outlook for completing the facade improvements by Dec. 31 was unlikely.
“Even if we were to begin this project today ... at this point we would almost have to beg MSHDA for some sort of reasonable extension on that,” he said.
Shiawassee Economic Development Partnership President Justin Horvath, who was brought on in May as a consultant on the project, said the VSCI grant was not necessary.
“I think something physical to show people that something is happening would be helpful,” he said. “Is it the be all and end all? No. The most important thing is maintaining a positive relationship with the city and with the state.”
Keenan later said the OCP would continue to seek alternate grant funding in the future. She added the group will continue to interview possible economic development companies later this week to assist in securing grant funding.
Fivas was not available for comment Monday.
- Contact Nathan Bruttell at 725-5136 extension 231 or nbruttellarguspress@gmail.com. Post comments about this story online at www.argus-press.com.
Comment on this Story
Weetadid wrote on Jun 18, 2009 8:53 AM:
Holman Pool User wrote on Jun 18, 2009 6:43 AM:
Notice that "skewer" and "javelin" are both long thin objects that look a bit like a SCREW ..... jobs could have come with a rebuild... THINK about it Mr. Mayor and company.
As far as Ben Fredericks, he's just trying to stay popular so he can win election to the state house... he's the biggest back stabber on the council... and the most arrogant.... no, wait... the mayor has that "honor". "
Ann wrote on Jun 17, 2009 7:43 PM:
I am waiting for city council to announce that it's going to tear down the Lebowsky and put up another parking lot! That is sure to bring revenue dollars, increase the improve the quality of life and increase our property values, right? "
Scaryrose wrote on Jun 17, 2009 4:44 PM:
Kelli P wrote on Jun 17, 2009 3:15 PM:
Mr. 2cents Worth wrote on Jun 17, 2009 10:33 AM:
Nichole wrote on Jun 17, 2009 7:38 AM:
City Council you are greedy and a disgrace to the citizens "
Eileen wrote on Jun 16, 2009 10:25 PM:
Joel perkin wrote on Jun 16, 2009 9:13 PM:
I used to be proud of the way my hometown supported the arts. Now I see the current council lacks both the vision and desire to really improve the city. "
CjP wrote on Jun 16, 2009 6:59 PM:
Bob wrote on Jun 24, 2009 10:17 PM:
Here is the link to the police report: http://www.co.genesee.mi.us/districtcourt/recordschk.htm
The case number is: SDF0700048
He was pulled over driving with a .14% blood alcohol level, 75% over the legal limit, and that's who is leading us in Owosso? "