Serving Gogebic, Iron and Ontonagon Counties

Commissioners support sale of parcel to road commission

By RALPH ANSAMI

[email protected]

Ironwood - The Ironwood City Commission approved a letter of intent Monday for the Gogebic County Road Commission to locate in the industrial park.

The go-ahead for the road commission was approved on a 4-1 vote, with Joseph Cayer Jr. opposed. He indicated he didn't want the city to sell its last big parcel in the park, especially since the road commission won't be paying taxes.

The road commission is considering purchasing about 13 acres for construction of a new main facility, moving from the outdated site in Bessemer.

Road commission engineer-manager Darren Pionk said between 10 and 12 other possible sites were considered, and the remaining parcel in the industrial park is preferable, especially since sewer and water is readily available.

"We really want you here," city commissioner Jim Mildren said of the site that will be next to the recently developed Xcel Energy Ironwood headquarters parcel.

But Cayer said he'd like to see the 13 acres saved for prospective businesses, agreeing with remarks made earlier by Ironwood resident Paul Grbavcich.

Grbavcich called it a "lose, lose" situation for the city. "All they'll pay is water bills," he said.

The letter of intent says the road commission would pay $2,000 an acre for the property, which would be located off Liberty Street, also next to a Basom Trucking parcel.

While Xcel pays around $100,000 in annual taxes, city manager Scott Erickson said that's a different situation. "The taxable value is quite high. We're lucky to have them," he said of Xcel.

Pionk said he looks forward to moving into the park as an opportunity to work together with the city and share services.

The buildings in Bessemer are 85 years old and "undersized," Pionk said.

Although he said the move to Ironwood looks promising, he added, "We still have a lot of work ahead to go through with this."

Pionk said the new gas tax passed in Michigan will "come into play" regarding the plans to finance the new building construction.

He said the operation will be of "low impact" to area residents.

Ironwood Community Development Director Tom Bergman said the road commission has 31 full-time workers and five seasonal employees. He said there will be "indirect benefits" to the city in locating the facility in Ironwood.

Bergman said he understands that it would be an indoor operation and public hearings before the city planning commission would be required for any outdoor storage.

Bergman said although the road commission would be purchasing the last major lot available, there are other lots being used for storage that could be expanded for new businesses. He also said the city has some lots outside the park that could be sold for private development.

"This is a good problem to have because the park is so robust," Erickson said.

Mildren made the motion to approve the notice of intent and Kim Corcoran seconded it, with Rick Semo and Mayor Annette Burchell also voting yes.

The road commission would be required to obtain an environmental site assessment, a certified survey map for the property and develop a site plan to meet the approval of the planning commission.

The property would need to be developed within three years of the proposed sale.

The road commission had previously planned to build new headquarters in Bessemer, costing around $4.7 million.