Another council openly opposes state-level STR rentals
The Ontonagon Village Council adopted resolution 2021-21 in Opposition to Short Term Rentals as identified in Michigan at their Dec. 13 meeting, with all six of the present council members voting yes. The vacant seat of former Trustee Mike Mogan has not yet been filled.
The STR bill has been of grave concern to village officials since it was passed by the Michigan House and then sent on to the Senate. The issue is that “short-term rental” is defined as a residential use of the property and a use permitted in all residential zones. This house bill was co-sponsored by 110th District Rep. Greg Markkanen, (R). State Senator Ed McBroom, (R) has not voiced support for this bill, though it is about to be placed before the Senate.
The Ontonagon Village Council wants to be able to regulate the short-term rental of residential properties and is very much opposed to HB 4722 as it now exists.
Smydra pointed out that Rep. Markkanen had intimated that Hancock was in favor of HB 4722 but Smydra said that this was not quite true. A large number of other communities in the region have come out as opposed to HB 4722 including Houghton, Hancock, and others.
A similar bill in Arizona was made into law and this has had a negative effect on the economy of that state.
It was moved by Councilor John Hamm, with enthusiasm, to approve Resolution 2021-21 and this was carried on a unanimous roll call.
In unfinished business that the Council addressed;
The Ontonagon Memorial Hospital MERS status
The village currently owes the Municipal Employees Retirement System $218,670.84 of which $5,887.51 was due on Sept. 20. The village managed a payment of $15,000 on Dec. 1 and it is planned to make an additional $15,000 payment by the end of December.
A meeting with State Senator Ed McBroom and 110th Dist. Rep. Greg Markkanen took place on Nov. 22 and the MERS situation was called to their attention. The Senator suggested contacting several members of the State House Appropriations Committee.
An additional meeting with McBroom and Markkanen has been scheduled on Dec. 17.
The village manager also reported that he had a discussion with Terra Langham, the MERS representative, regarding the village’s past-due status with the result that a tentative arrangement whereas the village will pay $15,000 per month until the tax season.
East Pier Walkway
A letter from Matt Wiesen reminded the council that at a meeting with an ad hoc committee representing the village, he had been assured that steps would be taken to effect repairs to the walkway which borders Wiesen’s riverfront property in the village. Wave action coming up the Ontonagon River has all but destroyed the concrete walkway. The US Army Corps of engineers do not recognize that the damage was really caused by modifications they made to the breakwaters some years ago. Wiesen stated;
“repairs need to be made, or the easement must be released. Here we are at the end of 2021 and the only thing that has changed is more erosion has occurred and not been corrected. As I have watched the river rolling over the walkway the last two weeks I am afraid of what springtime is going to look like down there. Everyone agreed over a year ago that this cannot go on for another year. Respectfully, I request this be remedied ASAP.”
The Manager has contacted the MDNR about the matter. The general consensus of the council is that the easement that allows for the walkway should not be surrendered, but the village is in no position to pay for repairs/restoration at this time. Though the village has promised to rectify the situation, there are no promised timelines in which to get this done.
Under new business;
The Ontonagon Village Council now considered adoption of Resolution 2021-20 entitled Deficit Elimination Plan. Previously, the council had adopted deficit elimination plans to address issues with the Marina Fund and the Street Fund. A third fund deficit involving the General Fund was much more comprehensive and Village Manager William DuPont needed to work through budget amendments in order to complete this plan, which the council now had before it for consideration.
Without going into detail, the plan moves from a deficit of $223,514 as of April 2021 to solvency in 2025. The nearly three-page list of adjustments laid out specific line items to be adjusted, and the deficit will actually increase until 2023 and then be all but eliminated in the last two years.
This, of course, does not eliminate the chronic MERS problem with the pensions of employees of Ontonagon Memorial Hospital, which is a separate and very special issue.
The resolution before the council addressed the General Fund insofar as it maintains village services.
It was moved by Rebholz, supported by Chastan, and on a roll call vote, the resolution 2021-20 was adopted, fulfilling the mandate by the Treasury Department to correct the three fund deficits.
In another matter, illegal parking was discussed. Vehicles in the way of snow removal have been a problem. The authority to have the vehicle towed will be researched.
The Dec. 27 meeting was canceled on motion by Hopper and this was carried by a voice vote.