There were no questions from the Public.

Questions from City Council:

With no investment on the part of the City, will you be prepared to commence the application process with the State of Michigan?

Answer: They are not asking for money from the City, just the building and a grant for the parking area.

Question: You are not after any of the demolition funds from the County?

Answer: Yes, we would like to get $100,000 from the County, but, the project is still viable without those funds, it would just have to be scaled back a bit.

What is the specific commitment you are requesting from the City?

Answer: An Option to Purchase and then a CDBG grant application for parking area.

Please specify the specific income guidelines you have established and inform the Council as to the percentage of Section 8 vouchers you will approve for this facility.

Answer: Section 8 vouchers do not have anything to do with this facility. As for incomes: very low is under $10,000 for a family of 2 – $10,000 – $25,000 for low income, and moderate income is $25,000 – $35,000. Our preference goes to low income, if there are no low income applicants anyone can apply and be placed in the housing provided they are seniors (62 yrs and up) or disabled (must be at least 18 years).

Are you currently aware of nay plans to house displaced hurricane victims or any other natural disaster victims in this facility?

Answer: No

Are you prepared to accept the facility including the responsibility for all utility, insurance and other costs upon granting of loan status by the State of Michigan?

Answer: Yes – if the loan is approved, hopefully by the fall of this year.

Have you considered the provision of commercial/retail space within this facility should you be able to obtain it? Are there any prohibitions against it?

Answer: So far as they are aware, there are no prohibitions against this and they would certainly consider it. As a matter of fact there have already been inquiries about renting certain areas of the building and they will consider these options, however, they hesitated to say exactly what type of business and who inquired due to a promise of confidentiality at this point.

Assuming the renting of space for retail would there be any prohibitions against the serving of alcohol on the premises?

Answer: No, that should not be a problem so long as the renter of the space obtains the proper licensing to do so.

Can the ICHF offer any guarantees to assure that they will not just walk away and leave the building to deteriorate?

Answer: With the financing and tax credits in place from the State there will not be any chance of that happening. They are positive they can make this project work.

In order to give the ICHF the $100,000 they have requested of the demolition funds, the City must release the County from any further obligation of the $240,000, however, the City does not want to let that option go until they are sure that ICHF can make this project work. What guarantee does the City have that ICHG won’t walk away and leave the City with nothing?

Answer: ICHF does not want any of the money until they rest of their funding is in place, making the project a go.

All that ICHF needs right now is the sight control?

Answer: Yes – an Option to Purchase for 120 days.

Any reason why the funding may not be granted to ICHF?

Answer: Only if the application is faulty and they (Coleman Engineering) has had a lot of experience filing these types of applications – the funding is already there.

Has the Iron County Housing Commission ever had to evict residents?

Answer: Yes – usually due to non-payment of rent or unclean premises.

Can the City get a copy of the market study conducted by ICHF?

Answer: It is not yet available, they expect it any day and Yes, the City can have a copy.

What is the deadline for submitting the application to the State of Michigan for this funding?

Answer: ICHF would like to submit the application for the Crystal Manor project at the same time as the one for the hospital building, the deadline for the hospital application is March 15, 2006 – it must be in Lansing on that date.

How will the building be maintained?

Answer: A maintenance crew or individual hired by the ICHF.

How many parking spaces do you need?

Answer: One for each bedroom.

Would you hire local workers to renovate the building?

Answer: Yes – as much as possible. 

Kirk Beauregard Proposal:

Questions from the public:

Can you proceed without the $240,000 of County demolition funds?

 Answer: That’s not the plan-he needs the $240,000 and also wants the City to help with additional parking.

Will you use local workers for the renovations?

Answer: Yes

Can you give any guarantees that you will still be here after 2 years and do you know how many retail stores this town has lost in the past few years?

Answer: He hopes to, however, he can not predict the future. He says he does not need the retail stores in the building to make this project work.

What will you do with the antiquated heating system?

Answer: Replace it with whatever is the most economical.

How many floors will you use for the condominiums?

Answer: The 2^nd & 3^rd floors for condos, the basement area may be used for business condos. The main floor will be used for the restaurant, bar, coffee house, and banquet facilities. The layout of the building allows for separate entrances to the condo areas from that of the main floor.

What are the high and low costs of the condos?

Answer: $110,000 to $130,000, however, studio apartments could go for as low as $75,000.

Is your project contingent on the $240,000 from the County?

Answer: Originally – Yes. Now he is not sure.

With no investment on the part of the City, are you or others prepared to provide the financial backing to commence your project to create retail/condo space in the Crystal Manor facility?

Answer: We would have to negotiate if there is no investment from the City.

Have you done any other public/private renovations such as the Manor facility?

Answer: No public, all have been private.

What is the specific commitment you are requesting from the City?

Answer: Conclusion in a written form before he can react to that.

When would you be prepared to accept the facility as is including responsibility for all utilities, insurance, and other costs?

Answer: When paperwork and deal are worked out.

If the City offered the 1^st option to the ICHF and then that deal fell through, would you still be interested in the project this fall?

Answer: Yes.

Are you willing to post a specific performance bond in the amount of $240,000 should your plans to renovate the facility fail within a specific time period?

Answer: He could provide letters from lenders to show the money they have in escrow.

Have you inquired with the Michigan Liquor Control Commission into the requirements to obtain a full liquor license for the establishment?

Answer: No, not yet, however, if he is unable to obtain a liquor license that is not important.

Again, are you willing to post a $240,000 performance bond for maybe up to 5 years time?

Answer: No – you have to take that chance.

Would you keep the historic look of the building?

Answer: Yes – as much as possible, maybe change some of the windows.

What is your time frame for construction?

Answer: 3 to 4 months after acquisition of the building. Estimate opening for business within 4 months and have 2 model condos ready for display. 

Why did you pick Crystal Falls for this project?

Answer: He has a history of visiting in Crystal Falls and remembers the Crystal Inn. He sees many "baby boomers" returning to Crystal Falls to retire who would want a nice condo to live in and already has some people interested.

Why do you think this project will sell in Crystal Falls?

Answer: The building is a cornerstone of the downtown area and it will sell itself.

What is the total cost of your project?

Answer: 1.7 million or maybe less, 1.5 million of the investors $ and the $240,000 from the County.

What parking improvements do you expect from the City?

Answer: Perhaps the same as that for the ICHF, a grant for parking area to the North of the building.

Would the banquet room, bar, restaurant, and coffee house be done up front?

Answer: Yes, the banquet facility would be done later, however, there is little to do to prepare that area of the building for use.

Would you allow for a pocket park in connection with the streetscape project?

Answer: Not really, the intention is to use the outside area around the building for covered parking for the tenants.

Attorney Lawrence stated that the $240,000 from the County can not be used for private projects, how do you propose this money can be used for your plans.

Answer: I was told this money was available and I need it to make the project work. I don’t understand why this is now a question.

Comment from others was made that perhaps the County money could be funneled through the DDA or some other way to make it available to a private project. No one knew the answer.

If the condos don’t sell, would you consider renting?

Answer: Yes, however, owners take better care of their homes than renters do.

Would you consider a partnership with the ICHF?

Answer: No

Would you also use the hospital building for condos?

Answer: No