more wool over the taxpayers' eyes

A presentation was made on May 10, 2011 by
the Iron County Economic Development
Corporation related to the rail spur in
Hematite Township at the meeting advertised
the week before in the Iron County Reporter.

The rail used by the EDC project sawmill is
worn out and needs to be replaced. This fact
must have been known when the sawmill
was funded using a county underwritten
bond, but kept quiet because the net effect
is the addition of yet another contract
amount to replace rails costing taxpayers
a base investment of $176,850 with the
possibility of significant additional charges
to replace unsuitable fill under the tracks.

How many more secrets are there about
this sawmill project that the EDC promoted
heavily not all that long ago? How much
more is that project going to cost the
taxpayers that we haven't been told about?

It was bad enough that roadway was
replaced at EDC/taxpayer expense, but at
least that was public property. Now the
EDC is involved in the replacement of
privately owned property with the only
available recovery being revolving loan
repayments by two firms using the rail
spur, and those firms "guarantee" a
certain number of railcars moving over
the spur till the loans are repaid. That,
of course, assumes the continuing viability
of the sawmail and Sappi Paper for at
least 5 years after this new project is
funded.

The fact that the rail spur isn't going to
become public property is, in this editor's
opinion, incompetence on the part of our
EDC officials. And the way the current
project is being handled pretty much
precludes extension of the rail spur
down to the Crystal Falls Industrial
Park that would have significantly
improved the growth potential there.

Since the trackage is worn out and must
be replaced, and the Railroad Company
has stated that they do not intend to
continue service on the spur in its present
condition, this means that the entire spur
is ripe for abandonment except for
intervention by the EDC, the County, and
the State of Michigan.

Abandonment means that it is available
at a minimum cost to anyone who is willing
to purchase it. That "anyone" should have
been the County of Iron. Then
improvements to the rail could have been
made by the Michigan Economic
Development Corp. (MEDC) because it
would have meant improvements related to
public property used for economic advantage
of the region, and a future extension to the
Crystal Falls Industrial Park would have been
a likelihood instead of one more page in a wish
book. Not only that, but the Amasa Depot
has had a lot of inquiry as a site for business
that's not going to be available so long as the
rail spur remains in private hands.

The bid for rail work was submitted by
Holubar Construction Co. on November 8,
2010. So the project has been in the works
at least since that time, and the recipient of
the bid was Pine River Lumber Co.

IronCountyDoings editor has been immersed
in another project and has been unable to
pay attention to the business of the EDC, but
it appears at this moment that this project
was more or less kept under wraps, and
trotted out in the May 4th issue of the Iron
County Reporter, approved by the EDC the
following week on May 10, and approved by
the County Board the same day.

Can you say, "pull the wool over the taxpayers'
eyes" and "rushed through" with no chance for
dissemination by the press and the expected
public discussion?

As is to be expected in Iron County, Tinti
Law and GEI engineering have their pieces
of the action.

According to the unapproved minutes from
the EDC meeting of March 10, the following
members of the EDC Board of Directors were
present and responsible for approving the
project:

Leonoff, Archocosky, Yusla, Ferguson,
Syrjanen, King, Lind, and Quayle. Absent
from the meeting were members Anderson,
Alexa, Lesandrini, and J. Melchiori.

Bill Vajk