Questions raised about International Trade Corridor (From the 12-4 Lapeer County Press)

[William Gavette]

Questions raised about International Trade Corridor BY NANCY R. ELLIOTT 810-452-2601  [e-mail]

Questions raised about International Trade Corridor

BY NANCY R. ELLIOTT

810-452-2601  [e-mail]

LAPEER — County officials and concerned residents came with plenty of questions to Thursday’s board of commissioners meeting over the proposed I-69 International Trade Corridor Next Michigan Development Corporation.

Patricia Lucas from the Lapeer Development Corporation, and Jim Smiertka, senior vice president and general counsel of non-profit foundation Primas Civitas, fielded the concerns. The questions came as the interlocal agreement the county is being asked to sign remains in the hands of corporate counsel likely until at least next week after which commissioners will take it up for a vote.

Smiertka explained that Next Michigan Development Corporation laws were passed in December 2010.

“With those laws came the ability to create a region to induce new businesses to create jobs.... There’s no hidden agenda.” said Smiertka. There can be up to five such regions. Wayne County’s Aerotropolis was approved this year, and Smiertka said that a Lansing region is likely to be approved this year as well. Another region is in the Traverse City area. Smiertka said that the I- 69 International Corridor and a Grand Rapids-Muskegon region are likely to be awarded in 2012.

“Regionalization. Collaboration. Inclusiveness and transparency — that’s where you build a worldclass economy,” said Smiertka.

The proposed local region would encompass counties bordering I-69 including Lapeer, Genesee, St. Clair, Shiawasee, and Northern Oakland, and capitalize on international transport assets like Bishop International Airport and port facilities in Port Huron.

The formation of the international trade corridor under the Next Michigan laws would enable certain businesses to be eligible for various incentives like tax abatements, local development finance authorities and renaissance zones. Eligible businesses would be those that move products or services via two or more modes like rail, air, roads or water.

“What we're proposing is to add another tool in our economic tool mailbox,” said Lucas.

Smiertka emphasized, “I don’t see the tax incentives... as the prime reason for doing this.” He suggested that the main focus is “economic gardening,” via marketing and branding.

Either way, the proposed Interlocal Agreement already signed onto by the city of Lapeer, Imlay City, Almont and North Branch, includes more than 20 pages of legalese that cover a lot of territory. The 25-year agreement embraces the geographical territories of the local units involved, but the county would have a seat on the board.

Larry Leidlein and Bob Murphy from the Lapeer County Tea Party Patriots attended the meeting to voice their concerns. Leidlein brought two pages of questions centered on structure and legal questions as well as citizen and political concerns. They ranged from questions of private property rights to local control to transparency issues.

“Why the rush?” asked Leidlein. “It’s a huge project and there’s been virtually no notice... We have some transparency concerns.”

“We’re in favor of building the economy,” concluded Leidlein, but underscored wariness about the project. “We want to protect private property rights and voting power.”

Board chair Gary Roy expressed similar sentiments. “The board had a lot of concerns about this,” he said. “We had a tremendous amount of questions.”

Smiertka spoke to each point raised in Leidlein’s outline of questions. He told the group that the Michigan Economic Development Corporation invited the group to file its application in January for approval in February. He said that economic developers in the various counties involved have been working on the project all year. Lucas said that all the municipalities in the county had been invited, via their clerks, to consider participation the new region.

“There’s no secret agenda. No title to public assets,” Smiertka assured the assembly.

Commissioners raised concerns about whether new TIFA’s could be created without their authority, a potential further drain on county revenues.

“To allow expansion without oversight, that’s the question,” said Roy.

Commissioners were also concerned about counties with more seats on the board where more local units have signed on.

“I just don’t see it being an issue,” said Lucas. “We’re all in this together to create jobs for the region.”

The county already agreed to apply for a grant from the Lapeer County Community Foundation to kick off the project. Fees for participation are $10,000 a year for the first three years from each county. Lucas said that the four participating local units have verbally agreed to contribute on a per capita basis if that funding doesn’t come through. She also noted the LDC would consider a contribution in the event of a shortfall. Commissioners were clearly wishing they could see that in writing.

Commissioners were also concerned about being liable for debts or obligations. Smiertka attempted to allay such concerns, and reminded commissioners the agreement affords two rights of withdrawal, including a provision to pull out at six months.

The new entity would likely be staffed by the same people currently doing the economic development work, in Lapeer County that’s Lucas and the Lapeer Development Corporation.

Following the meeting, Tea Party director Leidlein remained cautious, although he noted that some of his concerns were satisfied by what he heard.

“I believe the citizen awareness is very low, if not negligible. I think this is a big deal. I really don’t know the scope of this in terms of what it could or will be. I think it’s pretty open-ended.... We’ll just see where this goes in the next week or so.”

LAPEER — County officials and concerned residents came with plenty of questions to Thursday’s board of commissioners meeting over the proposed I-69 International Trade Corridor Next Michigan Development Corporation. Patricia Lucas from the Lapeer Development Corporation, and Jim Smiertka, senior vice president and general counsel of non-profit foundation Primas Civitas, fielded the concerns. The questions came as the interlocal agreement the county is being asked to sign remains in the hands of corporate counsel likely until at least next week after which commissioners will take it up for a vote. Smiertka explained that Next Michigan Development Corporation laws were passed in December 2010. “With those laws came the ability to create a region to induce new businesses to create jobs.... There’s no hidden agenda.” said Smiertka. There can be up to five such regions. Wayne County’s Aerotropolis was approved this year, and Smiertka said that a Lansing region is likely to be approved this year as well. Another region is in the Traverse City area. Smiertka said that the I- 69 International Corridor and a Grand Rapids-Muskegon region are likely to be awarded in 2012. “Regionalization. Collaboration. Inclusiveness and transparency — that’s where you build a worldclass economy,” said Smiertka. The proposed local region would encompass counties bordering I-69 including Lapeer, Genesee, St. Clair, Shiawasee, and Northern Oakland, and capitalize on international transport assets like Bishop International Airport and port facilities in Port Huron. The formation of the international trade corridor under the Next Michigan laws would enable certain businesses to be eligible for various incentives like tax abatements, local development finance authorities and renaissance zones. Eligible businesses would be those that move products or services via two or more modes like rail, air, roads or water. “What we're proposing is to add another tool in our economic tool mailbox,” said Lucas. Smiertka emphasized, “I don’t see the tax incentives... as the prime reason for doing this.” He suggested that the main focus is “economic gardening,” via marketing and branding. Either way, the proposed Interlocal Agreement already signed onto by the city of Lapeer, Imlay City, Almont and North Branch, includes more than 20 pages of legalese that cover a lot of territory. The 25-year agreement embraces the geographical territories of the local units involved, but the county would have a seat on the board. Larry Leidlein and Bob Murphy from the Lapeer County Tea Party Patriots attended the meeting to voice their concerns. Leidlein brought two pages of questions centered on structure and legal questions as well as citizen and political concerns. They ranged from questions of private property rights to local control to transparency issues. “Why the rush?” asked Leidlein. “It’s a huge project and there’s been virtually no notice... We have some transparency concerns.” “We’re in favor of building the economy,” concluded Leidlein, but underscored wariness about the project. “We want to protect private property rights and voting power.” Board chair Gary Roy expressed similar sentiments. “The board had a lot of concerns about this,” he said. “We had a tremendous amount of questions.” Smiertka spoke to each point raised in Leidlein’s outline of questions. He told the group that the Michigan Economic Development Corporation invited the group to file its application in January for approval in February. He said that economic developers in the various counties involved have been working on the project all year. Lucas said that all the municipalities in the county had been invited, via their clerks, to consider participation the new region. “There’s no secret agenda. No title to public assets,” Smiertka assured the assembly. Commissioners raised concerns about whether new TIFA’s could be created without their authority, a potential further drain on county revenues. “To allow expansion without oversight, that’s the question,” said Roy. Commissioners were also concerned about counties with more seats on the board where more local units have signed on. “I just don’t see it being an issue,” said Lucas. “We’re all in this together to create jobs for the region.” The county already agreed to apply for a grant from the Lapeer County Community Foundation to kick off the project. Fees for participation are $10,000 a year for the first three years from each county. Lucas said that the four participating local units have verbally agreed to contribute on a per capita basis if that funding doesn’t come through. She also noted the LDC would consider a contribution in the event of a shortfall. Commissioners were clearly wishing they could see that in writing. Commissioners were also concerned about being liable for debts or obligations. Smiertka attempted to allay such concerns, and reminded commissioners the agreement affords two rights of withdrawal, including a provision to pull out at six months. The new entity would likely be staffed by the same people currently doing the economic development work, in Lapeer County that’s Lucas and the Lapeer Development Corporation. Following the meeting, Tea Party director Leidlein remained cautious, although he noted that some of his concerns were satisfied by what he heard. “I believe the citizen awareness is very low, if not negligible. I think this is a big deal. I really don’t know the scope of this in terms of what it could or will be. I think it’s pretty open-ended.... We’ll just see where this goes in the next week or so.”