|
|
WEST MICHIGAN REGIONAL PLANNING COMMISSION
BOARD MEETING MINUTES
December 10, 2010
10:00 a.m.
1. Call to Order. C. Mulholland, WMRPC Chair, called the meeting to order at 10:10 a.m. Commission members and guests introduced themselves.
Roll Call:
Linda Howell – Allegan County
Terry Burns – Allegan County
Mark Gifford – City of Big Rapids
Joseph Harper – City of Big Rapids
Charles McCafferty – Mecosta County
John Johansen – Montcalm County
Tom Lindeman – Montcalm County
Dan Massy – Osceola County
Donald Disselkoen, Vice-Chair – Ottawa County
Tim Cochran – City of Wyoming
Lillian VanderVeen – City of Wyoming
Brenda Cowling-Cronk – City of Ionia
Philip Jones – Keene Township
Jeanne Vandersloot – Keene Township
Randy Zenk – Village of Pewamo
L. Charles Mulholland, Chair – At large
Gregg Yeomans – At large
Tom Jessup – Allegan County (alternate)
Linda Howard – Mecosta County (alternate)
Staff:
David Bee – Director
Elizabeth Van Doorne – Planning Technician
Nancy Murphy – Administrative Assistant
Guests:
Greg Main – Michigan Economic Development Corporation
Roger Belknap – 2011 WMRPC Representative for City of Cedar Springs
Larry “Casey” Jones – Allegan County / CEDS Committee
Nora Balgoyen-Williams – Allegan County / CEDS Committee
Bill Mrdeza – Mecosta County / CEDS Committee
Chris Thelen – Ionia County / CEDS Committee
John Miner – Ottawa County / CEDS Committee
Rick Chapla – The Right Place, Inc. / CEDS Committee
Mark Sweppenheiser – City of Big Rapids
Steve Redmond – Michigan Department of Transportation
2. Guest Speaker –
Greg Main – Michigan Economic Development Corporation
D. Bee introduced the meeting’s speaker, Greg Main, President and CEO of the Michigan Economic Development Corporation.
Mr. Main said that when he took the job 21 months ago, that was before the bankruptcy of GM and Chrysler, so it has been a challenging time. He talked about relationships between regions and the state. Connections have been lost and now we have an opportunity to chart a new way forward and restore those connections. With the new administration in Lansing, there will be an attempt to redefine the relationship between the state and local policy development and execution. Issues in the resurgent / next Michigan will include community development and place-making, the management of incentive programs, and the marriage of economic development and policies in greater ways.
The big challenge is not the creation of jobs, but the attraction and training of a skilled work force that can meet the needs of businesses. We are living in a demographic Indian summer. As baby boomers retire, the big issue will be how to replace them, and we haven’t addressed that yet. Currently education is not integrated with work force needs. We need a program that bonds community colleges with employers willing to participate in order to fund training programs.
Mr. Main said that he was touring the U.P. last week, meeting with companies that have had substantial growth. The businesses are concerned about finding workers with the needed skills. He cited an example of a paper mill that has seen expansion and investment. They’ve raised the educational qualifications for their workers. Employees who have been with the company for 25 years are starting to retire and they need to find replacements. If people will commit to work there, the company will pay for their education at community college.
Employers all over are facing the same problem. From a community standpoint, it might not be their responsibility to address this issue. But it is the community’s responsibility to create a vibrant place to live in order to attract qualified workers. People choose where to live first and they are looking for recreation, cultural activities, and other quality of life amenities. Communities have to compete for residents.
Mr. Main said he is excited about the chance for Michigan to have a more diverse economy than it has in the past. New industries include alternative energy, batteries, wind, and solar. The state has proven that it can compete in these areas, that we can create a more entrepreneurial economy. The automotive business will recover, but it will not be dominant again like it was before. We can’t take our eyes off the ball. There is lots of investment commitment and there will be dramatic job creation within the next year. Seventy percent of the new state legislature will be new to the job, so there will be a learning curve and a challenge to work on problems. The Governor-elect will announce his new initiatives soon. The new administration is starting early and it will be a smooth transition.
Mr. Main then responded to questions from meeting attendees.
C. McCafferty asked Mr. Main’s opinion about the Michigan tax structure law related to economic development. Mr. Main responded that the Michigan business tax is too different from the rest of the country; it is structurally hard to administer; it is too high; and it is hard to understand. Tax reform is at the top of the agenda next year.
How can we reform taxes without adding to the deficit? That has been a problem for us, more of an internal problem than an external one. We are competitive nationally with our overall taxes, but not with the business tax.
G. Yeomans asked about the future of agriculture and its place in the overall state economy. Mr. Main said that there has been good success with food processing, although there are still challenges, including the need to apply technology. Waste disposal is an issue. We need to expand efforts to convert agricultural waste to fuel. The Swiss take gas from wastewater and fuel buses.
T. Burns asked about future funding for the Pure Michigan tourism campaign. Mr. Main said that there have been problems with that funding. Last year it was late spring before supplemental appropriations were approved to keep it going. We had never had a national tourism advertising campaign until two years ago. Surveys showed that for every dollar spent on advertising, 2.5 tourism dollars were generated. Pure Michigan is a very effective campaign, with the number one state tourism website in the country. The state has been switching around funds and has enough money to get the winter campaign going. The new legislature and governor are supportive of the program, which really needs $30 million a year for optimum effectiveness. The program produces return on investment in the same year. The ultimate goal is to make Michigan a destination nationally.
J. Miner talked about the importance of small business. He said that historically economic development has focused on large businesses, government agencies, and non-profit organizations. Recently, banks have been reluctant to loan money to small businesses. Will that get better? Mr. Main said that a few years ago, it was well known that the automotive industry was shrinking and that their suppliers would be in trouble – not the big suppliers, but the third tier, which number about 2,500 and constitute 10 percent of the workforce. The two-phase plan that was developed included a finance plan to address the problem with suppliers losing financing because their collateral was collapsing. The companies’ value/debt ratio, along with the problems being faced by banks in general, led to banks dropping loans even for companies with good credit history. In effect there was “red-lining” of loans for auto-related companies due to the critical status of the auto industry.
Auto suppliers needed $1.0 billion in financing. The state worked with the banks and deposited funds to cover the gap, using the banks underwriting capacity. The government was not making decisions on loans, but was making it easier for banks to be able to approve more loans. In September of this year, the legislature passed a bill that provides $81 million for small business financing. That legislation will enable companies to continue to survive in the auto industry. The bill will also help companies to engage in needed diversification.
There is also a new program for small business tax credit financing that includes a 25 percent tax credit against income tax. It is a way to use state investment to generate additional financial equity, a way to harness the private sector.
J. Miner’s second question was about ways that regions could help. Mr. Main said that the Michigan Small Business and Technology Development Center is a good example. The MI-SBTDC uses local agencies to support the growth of entrepreneurship. Other examples include: business accelerators; 82 percent of incentives have gone to existing Michigan companies.
Mr. Main said that we can make things work better. He cited the examples of solar panels, with suppliers near manufacturers, and batteries. The strategy is the coordination of alternative energy sectors in order to help diversify the economy.
C. Mulholland thanked Mr. Main for coming back to Michigan and sharing his talents, experience, and expertise.
3. Approval of Minutes
A MOTION WAS MADE BY J. Johansen to approve the minutes for the September 17, 2010, Commission meeting as presented. SUPPORTED BY T. Burns. MOTION APPROVED UNANIMOUSLY.
4. Public Comments
None.
5. Administrative Matters
Financial Statement
D. Bee distributed the Financial Statement, which covers the Fiscal Year 2011 through November 2010, and briefly reviewed the statement. He said that we are still at the beginning of the Fiscal Year, so there is not a lot to report. At the right are our investments, which are good. Our current EDA grant will end at the end of the calendar year, so we are keeping an eye on that spending. We had our annual financial audit at the end of October; the audit report will be presented to the Commission in January.
A MOTION WAS MADE BY T. Burns to accept and place on file the Financial Statement for the period of October 1, 2010 through November 30, 2010. SUPPORTED BY D. Disselkoen. MOTION PASSED UNANIMOUSLY.
Report from Nominating Committee
G. Yeomans, Committee Chair, said that the same three officers are willing to serve next year. The Commission will vote for the new officers at the January meeting.
A MOTION WAS MADE BY D. Disselkoen to accept the report of the Nominating Committee. SUPPORTED BY G. Yeomans. MOTION PASSED UNANIMOUSLY.
Meeting Schedule for 2011
A MOTION WAS MADE BY D. Massy to approve the WMRPC 2011 Master Meeting Schedule. SUPPORTED BY L. VanderVeen. MOTION PASSED UNANIMOUSLY.
A MOTION WAS MADE BY D. Disselkoen to approve the WMRPC 2011 Goals and Objectives. SUPPORTED BY T. Burns. MOTION PASSED UNANIMOUSLY.
8. Staff Updates
D. Bee distributed his Staff Update (copy attached). The Update includes detailed information in the category of Economic Development, in addition to information about the categories of Transportation Planning, Member Projects/Initiatives, and Other. D. Bee briefly reviewed the bulleted items.
7. Round Table / Regional Issues
L. Charles Mulholland – At large. He talked about the regions and MAR at the state level. The regions did a lot of work during the past year to coordinate and network with state agencies. At the state level, they are looking at regions and boundaries and related issues; there are different regions for different state departments. An issue is integration vs. segregation.
Tom Lindeman – Montcalm County. The tunnel under M-57 is almost complete. The installation of solar energy on Greenville schools is going well; they will recover their investment; they are already generating some energy now. The County Assessor is seeing some increase in house prices.
John Johansen – Montcalm County. Montcalm Alliance has three exciting new projects. But he can’t talk about any of them yet.
Dan Massy – Osceola County. There are a few new businesses in the county. But there have been more businesses that have either left or downsized.
John Miner – Ottawa County. Gentex is hiring; they received 1,200 applications for 100 available jobs. A brewery in downtown Holland gives tours in the winter.
Charles McCafferty – Mecosta County. The county is still slow. He is the County Planning Commission chairman and there have been very few applications for changes; their business was so slow, they cancelled a meeting. They are initiating the process to update their master plan, and having discussions with the townships. There is no design work anywhere. Housing market prices are still very low. We have a long way to go to get back to the economy we once knew.
Mark Gifford – City of Big Rapids. There’s a lot going on in the city, including the $8.0 million Wolverine World Wide expansion of their facilities, and the new hanger at the airport. The opening of the new optometry building at Ferris State University is on schedule for next semester; their University’s recent graduation had 900 graduates. He said this would be his last Commission meeting because he will have a new position at the city.
Linda Howard – Mecosta County. There have been three public hearings on the merger between Spectrum Health and the Mecosta County Medical Center. The County Commission’s vote on the merger is the first step and is on the next December meeting’s action list.
Jeanne Vandersloot – Keene Township. Things are slow.
Philip Jones – Keene Township. He mentioned that he is representing the Township, not Ionia County. He said that things are very slow and it feels like a caretaker at a cemetery.
Terry Burns – Allegan County. The County has been working on a new jail for the last ten years, and now they need to reevaluate the process. Sobriety Court will be starting next month. The Planning Commission will discuss the landfill.
Donald Disselkoen – Ottawa County. They have an economic incubator related to agriculture. They combined the functions of the Clerk and the Registrar of Deeds. They added two road commissioners; the change will be revenue neutral because they will split the same total pay five ways instead of three; they had 31 applicants for the two open positions and are in the process of interviewing all of them. The County Commission adopted term limits for Road Commissioners, which will be a maximum of 12 years. The US-231 bridge project is moving forward.
Lillian VanderVeen – City of Wyoming. The City and the DDA are working together, along with the consultant, to activate 28th Street. They are meeting with citizens and businesses. Some local industries are expanding and there are a few new ones. The City has been very “charitable” with tax incentives. She said we have discussed here about education challenges related to industry. The turkey cooperative is expanding. A few years ago they bought the old Bil Mar site and also bought an old french fry plant. Their plant generates no waste, but uses and recycles all the turkey parts.
Tim Cochran – City of Wyoming. Act locally but think regionally. The City of Wyoming has benefited from agricultural food processing. The whole region is experiencing new agricultural processing growth. Gordon Food Services is expanding. There has been recent expansion of the water plant; all the water comes from the lakeshore 40 miles away and serves many communities. The City is working on the reinvention and revitalization of 28th Street, which has suffered the loss of major retail businesses. There are both opportunities and constraints in the economy in the Grand Rapids area. They think they have an agreement on the future of the abandoned GM plant: in April it will be purchased from the GM liquidators and the two million square foot facility will be demolished within 18 months; it will probably be profitable to tear it down. They will establish high standards for redevelopment of that property.
Rick Chapla – The Right Place, Inc. There has been a renewal of the energy issue. They hosted a joint meeting with 210 participants. Renewable energy systems work. There will be new supply chains in 2011. Agricultural food processing will expand. 2011 will be a year for record earnings and sales. He is bullish on West Michigan, which has good governance and an excellent environment for economic opportunity.
Roger Belknap – City of Cedar Springs. He formerly worked for the Kent County Road Commission, but is now the Cedar Springs DPW Supervisor. There are a lot of exciting things going on in town. The White Pine Trail has a new trail head, funded by a Michigan Natural Resources Trust Fund grant. A new restaurant has opened; they have picnic tables and have linked with local boy/eagle scouts. There is a new bakery.
Brenda Cowling-Cronk – City of Ionia. There is an ongoing initiative for a multiple-country trail that will pass through Ionia.
Larry “Casey” Jones – Allegan County. Allegan County is still #1 in agriculture, with 147 different agricultural products. JBS packing plant in Plainwell will add 47 jobs; it is one of the premier packing plants in the country. There have been 247 new jobs added in the county since January. Perrigo will hire more than 100 new workers by February. The NOVO1 call center will add 40 more jobs. The new casino will open in February; they will offer 750 jobs.
Nora Balgoyen-Williams – Allegan County. The county does not have a central economic development person. The next step will be to create a working group, which Kevin Ricco will organize. The county is largely a bedroom community for Grand Rapids, Kalamazoo, and Holland, and split into sections, and feels separated. The group will include 11 individuals, who will create focus for different industries and make sure all areas are represented – tourism, higher education, work force development, and others.
Randy Zenk – Village of Pewamo. Pewamo is way over on the eastern edge of Ionia County. There have been new and exciting happenings. The town celebrated its 150th anniversary with a new sesquicentennial park last year. They have a Christmas tree in the park and everyone is participating in its decoration in order to get the community feeling going. They are putting together a welcoming center that will link with Rails-to-Trails. They had their first annual block party at the end of summer.
Steve Redmond – Michigan Department of Transportation. He distributed copies of MDOT’s proposed 2011-15 Five-Year Transportation Program, and said that MDOT is in the midst of the public comment period. Within Region 8, Allegan and Osceola Counties are included with different MDOT regions, while the other counties are all in MDOT’s Grand Region. The Five-Year Plan lists roads and bridges projects. Actual implementation depends on the funding available; it might have to become a six or seven or eight-year plan. After 2011, the match plunges and there is no state match, so we won’t qualify for federal dollars. The bar chart on page 9 shows what will happen if we can’t meet federal aid requirements. If we reduce the transportation program, how will that affect employment? MDOT encourages public comments – go to their website to participate.
Gregg Yeomans – At large. Easton Township was asked to help expand the cemetery. The capacity of cemeteries varies from township to township.
Linda Howell – Allegan County. The Michigan Natural Resources Trust Fund recently announced approved projects for 2010 and Laketown Township received a $100,000 grant to acquire land adjacent to Wolters Woods.
8. Other Business
None.
9. Adjournment
A MOTION WAS MADE By G. Yeomans to adjourn. SUPPORTED BY T. Lindeman. MOTION APPROVED UNANIMOUSLY. The meeting was adjourned at 12:05 p.m.
Back to Board Minutes Page