| DALTON TOWNSHIP SPECIAL BOARD MEETING-FEBRUARY 4, 2009, 5:30 P.M.
BOARD MEMBERS PRESENT: Chris Hall, Mary Ellen Sherwood, Elizabeth (Petsy) Jenkins, Merle H. Hittle, James Lothschutz, and Ross McCloskey. BOARD MEMBERS ABSENT: Mike Hiner. Supervisor, Chris Hall, called the meeting to order at the Dalton Township Hall. Roll call taken. SEWER SPECIAL ASSESSMENTS, DISCUSS LITIGATION-RISK-COSTS-CONCERNS-OPTIONS WITH THE TAX LITIGANTS, THEIR ATTORNEY, SCOTT TIMMER, AND THE TOWNSHIP ATTORNEYS, JOSH WEASE AND IAN MITCHELL: Chris opened the meeting by asking those present to speak to the board regarding what may have went wrong with this sewer project and the assessments. What can be done differently in the future and how do we resolve our current problem of assessments. Attorney Timmer stated that he would speak for the group (tax petitioners). Mr. Timmer gave his summary of past events and how he believed the sewer project came about. Mr. Timmer provided a spreadsheet to the board with the following information: the tax petitioners, the number of REU's (Residential Equivalent Unit) for that business, the total cost of the REU's, the connection fee for each, the parcel number, the 2006 SEV (State Equalized Value), the 2007 SEV, the 2006 TCV (True Cash Value of land only) the building size, and the lot size. Mr. Timmer explained the spreadsheet to the board. Mr. Timmer explained that the tax petitioners do not believe that the dollar amount in sewer assessments meets the increase in their property value. He explained the nature of the businesses and stated what he believed the REU's should have been. He stated the owners want these special assessment amounts reduced. Mr. Timmer stated that he believed the special assessments were spread out to cover the costs of the sewer projects and the assessments are not proportionate with the businesses. Michael Brumm, of Woodworks Unlimited, questioned why the two wood working businesses had such different REU's. Stephanie Barrett stated that she assigned the REU's and RJ Woodworking was assigned REU's as a warehouse. She stated that this was a mistake as it is not a warehouse. She stated the REU's for this business should have been much higher. Stephanie explained how the REU's are assessed. Attorney Josh Wease stated that the new township board has to grapple with the inheritance of a sewer and should any adjustments be made we have to figure out how to pay for the short fall to repay the bonds. He stated this is a complex problem as the REU's legally cannot be lowered. He stated this bond is due through 2035 and that he is sure everyone wants to settle; however, the township is responsible for this debt should any offers be considered and the township does not have the money to cover the debt. Mary Ellen stated that any contingencies that were built into the bond, plus additional money, have been spent on legal fees. Mr. Wease stated that a debt charge may have to be added to the quarterly billing for everyone in the special assessment district to cover the cost of any adjustments that may be made. Mr. Timmer suggested using money that comes in through future growth. Township Attorney, Ian Mitchell, stated that future business is questionable in this economy. He also stated that the trailer park on Whitehall Road is in peril right now and questioned if this falls through, where will this money come from. The new campground on Whitehall Road was discussed and the amount of assessment that they will be paying was discussed. The Michigan Adventure case that is also in the tax tribunal was discussed briefly. Much discussion followed with the board and all present. Mr. Timmer stated that he would sum up by asking what is fair. Stating that some special assessments are out of line; however, some are o.k. He stated that he realizes the township is between a rock and a hard place, but they are looking for fairness. Mary Ellen stated that the township's reserve fund has less than $250,000.00. Merle suggested that the board enter into closed session to discuss this pending litigation with our attorneys. Motion by Merle, support by Mary Ellen, PASSED to enter into closed session meeting to discuss this pending litigation with our attorneys. Yes: Merle, Mary Ellen, Ross, James, Elizabeth, and Chris. No: none. At 8:46 p.m. Motion by Merle, support by Ross, PASSED to enter back into the open meeting. Yes: Merle, Ross, James, Elizabeth, Mary Ellen, and Chris. No: none. Motion by Merle, support by James, PASSED to go with the twenty percent (20%) of 2007 TCV (True Cash Value) as stated on the spreadsheet provided by the attorney. Yes: Merle, James, Ross, Elizabeth, Mary Ellen, and Chris. No: none. BOARD COMMENT: PUBLIC COMMENT: ADJOURNMENT: Clerk__________________________ |