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Township to meet with Black Bear, DEQ on sewer grant

At the June 13 Grant Township Board meeting, Trustee Richard Powers, right, expresses a need for more information before the township can make a decision to apply or not apply for state and federal funding for the Mt. Bohemia sewage treatment system. Also pictured are Grant Township Supervisor Ken Korhorn, left, and Trustee Gary Barker.

COPPER HARBOR ’Äì The Grant Township Board will hold an informational meeting on the proposed Mt. Bohemia sewage treatment system at 3 p.m. on Wednesday, June 27, in the Copper Harbor Community Building. The purpose of the meeting is to give further consideration to Mt. Bohemia developer Black Bear’Äôs request that the township apply for state and federal grant monies to fund their sewage treatment system.

 

Representatives from Black Bear, U.P. Engineers & Architects and the Waste Management Division of the Michigan Department of Environmental Quality (DEQ) are expected to present information for the board and for the public and to be available to answer questions.

 

’ÄúThe reason we are having the special board meeting is to answer questions generated at the last board meeting on June 13,’Äù said Ken Korhorn, Grant Township supervisor. ’ÄúAnd it is hoped that by having all parties present any questions can be addressed.’Äù

 

Korhorn noted no decision will be made at this meeting, which is informational only.

 

’ÄúIt appears that we will make a decision at the July regular board meeting,’Äù Korhorn said.

 

South Shore Association President Tom Collins, standing, reads a letter to the Grant Township Board at their June 13 meeting. The letter contains an SSA motion that a need for a publicly owned wastewater treatment system in Lac La Belle needs to be established before the township applies for a grant for Black Bear's Mt. Bohemia system.

At the June 13 meeting a number of Grant Township residents expressed their opposition to the township’Äôs applying for a grant to fund a private sewer system. Among these was Tom Collins, president of the South Shore Association (SSA), who read a letter to the board reporting a motion made by the SSA Board of Directors and members.

 

The motion states that a need for a publicly owned wastewater treatment system in Lac La Belle needs to be demonstrated in order to pursue such a system.

 

’ÄúCurrently scientific data as to Lac La Belle’Äôs water quality has not been established,’Äù the motion states. ’ÄúPrivately owned septic systems are in operation and their overall treatment efficacy cannot be commented upon until water quality has been scientifically established. Therefore, the South Shore Association does not support Grant Township’Äôs involvement in a municipal waste treatment system until demonstrated need is established.’Äù

 

The letter also notes that biologist Sandra Harting, Ph.D., will be working this summer with SSA volunteers and the DEQ in testing the water quality of Lac La Belle, Bete Grise and the mouth of the Montreal River in order to establish baseline data for water quality in these areas. The Great Lakes Aquatic Habitat Network Fund is providing a $1,600 grant for the project.

 

Collins concludes the letter with an expression of SSA concern about Black Bear’Äôs current waste treatment design and encourages the board to be aware of  ’Äúall the technology available that would maximize environmental protection and fit the development needs of the area.’Äù

 

In a second letter, dated June 20, 2001, Collins asks the board to focus on two concerns for the protection of Grant Township residents, particularly those of Lac La Belle: 1) the increased taxes or use of general funds resulting from cost of construction or maintenance of the treatment system; 2) possible mandatory hook up for Lac La Belle residents.

 

This letter states to the board, ’ÄúIn addressing these concerns, you need to incorporate written agreements with Black Bear to insure public protection BEFORE you sign and commit yourselves to the project. To enter this venture without written agreements related to owner and title of land, construction cost overruns, operation, repair, fee amount and maintenance would demonstrate unusual and high risk taking business behavior.’Äù

 

At the June 13 board meeting, Lac La Belle resident and Grant Township Land Use Planning Committee member Chuck Brumleve said he failed to see why the township would want to get involved with a grant for a private project.

 

’ÄúShould the township be taking on these responsibilities and liabilities?’Äù Brumleve asked the board. ’ÄúThis becomes a lose-lose proposition for the township.’Äù

 

At the June 13 Grant Township Board meeting, attorney Gordon Jaaskelainen, second from left in front row, warns the board of unforeseen liability should they apply for a grant for Black Bear's sewer system. Also pictured (front row from left) are Donald Piche of Lac La Belle, John Sullivan, senior vice-president of U.P. Engineers & Architects and Black Bear President Lonie Glieberman.

The idea of risk was also addressed at the June 13 meeting by attorney Gordon Jaaskelainen, who said the unforeseen liability for Grant Township would be very significant.

 

’ÄúI oppose this grant,’Äù Jaaskelainen said.

 

He added his concern that Black Bear had not yet solved the ownership issue.

 

At the June 13 meeting Black Bear President Lonie Glieberman told the board his company had an agreement with Lake Superior Land Co. to purchase the land on which the wastewater system is to be built. He indicated Black Bear would purchase the land and then turn it over to the township if the township applies for the grant and receives the funding. The grant applicant must be the owner of the land.

 

’ÄúThe lawyers are finishing up the final details,’Äù Glieberman said at that time.

 

Jaaskelainen said Black Bear had not disclosed that agreement or shown the DEQ any title to the land. This was one reason for the DEQ’Äôs deadlines for Black Bear’Äôs initial application for a Part 31 Groundwater Discharge permit. The DEQ also requested that Black Bear submit to the township a Notice of Intent for the grant and information about the grant to help the township in its decision.

 

On May 3, John Sullivan, senior vice-president of U.P. Engineers & Architects, Inc., sent Korhorn a Notice of Intent for a Michigan Community Development Block Grant (CDBG) under the Michigan Economic Development Corporation (MEDC), including about $700,000 in federal (Economic Development Authority, or EDA) funds, for a total of $3,045,000. In his cover letter Sullivan says he is attaching the project budget, narrative and site plan in response to the DEQ letter of April 27, 2001, listing deadlines for the permit.

 

Sullivan’Äôs May 3 letter states, ’ÄúThe proposal does not include facilities for the community at this time. If desired a sewage pumping station and force main can be included in the project by adding $100,000. This would increase the EDA share by $70,000 and the local share (by Bear) by $30,000 approximately. If there are some in Lac La Belle who want to connect to the system an extension of the sewer system could possibly be added to this project or a later project could be designed and financed by the users with assistance by state and/or federal agencies. Also a rate structure could be calculated for connection and use. It is my opinion that the treatment system as designed would have capacity for several more users of various sizes.’Äù

 

The Notice of Intent lists 35 as the number of jobs to be created by the project, at a minimum wage of $6.50 an hour.

 

The DEQ Waste Management Division’Äôs May 16 reply to Sullivan’Äôs May 3 letter on the Notice of Intent warned Black Bear that the development of the grant application did not meet the deadlines established in their April 27 letter, did not provide the property ownership information requested and did not provide Bear’Äôs ability to demonstrate that Grant Township would sponsor a grant application on behalf of the ski hill project.

 

’ÄúBased on the current status of the Department’Äôs review, a denial of the groundwater discharge request is anticipated,’Äù the May 16 letter states. ’ÄúIf the Part 31 Groundwater discharge application is denied by the Department, you may resolve the financing issues associated with this project (if grant financing is pursued, treatment plant construction may not be initiated until funding is awarded) and submit a new application to the Department. Assuming the new application is similar to the Part 31 Groundwater Discharge application currently proposed and no significant environmental issues arise from the public comment period, the review process should move quickly.’Äù

 

The letter is signed by Robert Schmeling II, Marquette District Supervisor, Waste Management Division.

 

In a May 25 reply to Schmeling, Sullivan requests withdrawal of the Part 31 application since financing issues will not be resolved in time to meet the DEQ deadlines. He adds it is Black Bear’Äôs hope to solve the issues with the help of Grant Township in June and then to re-apply for the permit.

 

In a list of responses to questions from Korhorn, Glieberman confirms his intention to re-apply for the permit concurrently ’Äúwith Township approval of initial grant application paperwork.’Äù

 

Replying to other questions from Korhorn, Glieberman wrote that the benefits to Grant Township in being the grant applicant include ’Äúeconomic development (tax base increase and job creation), control of wastewater treatment, assuring the construction of a wastewater treatment facility that will enhance the protection of Lac La Belle by providing a state of the art facility of the type preferred by the Michigan DEQ in a location away from the Lac La Belle watershed.’Äù

 

Glieberman cited the benefit to Black Bear would be in saving the ski resort project about $900,000, which could then be reinvested in facilities to enhance the resort operation. At the June 13 meeting he mentioned mountain biking trails and a cross-country ski center as possible examples of this.

 

Should the township not apply for the grant, Glieberman noted, Black Bear would spend its private dollars to construct the wastewater treatment system and have less money to develop the resort initially.

 

In reply to Korhorn’Äôs question on responsibility should Mt. Bohemia close, Glieberman wrote, ’ÄúBlack Bear would be responsible for costs associated with sale or closure and would be guaranteed by a performance bond issued to the Township and paid by Black Bear subject to Township approval.’Äù

 

Also attending the June 13 board meeting was Keith Niemela of the Houghton Keweenaw Tourism Council. Niemela said the Council and the Chamber of Commerce support the Mt. Bohemia project.

 

’ÄúWe see this as a benefit to the tourism base,’Äù he said. ’ÄúI think what you’Äôre looking at here is a positive move.’Äù

 

Lac La Belle resident Sue LeBlanc, standing right, spoke at the June 13 Grant Township Board meeting on the lack of aesthetics at Mt. Bohemia. Also pictured in foreground, from left, are Copper Harbor residents Don Kauppi, Nicole Pierce, Sharon Powers and Mary Jo Beveridge.

Lac La Belle resident Sue LeBlanc said Niemela should look carefully at Mt. Bohemia before recommending it to tourists.

 

’ÄúIt’Äôs ugly,’Äù she said.

 

Ray Quicksilver, a visitor from Houghton Township, said aesthetically pleasing development is a big concern in Keweenaw County.

 

’ÄúWe don’Äôt want to be like the Wisconsin Dells. We don’Äôt want to be like Door County,’Äù Quicksilver told Glieberman. ’ÄúYou’Äôve got to communicate with people. You can’Äôt assume that everybody knows what you’Äôre doing.’Äù

 

Anita Campbell, Grant Township Land Use Planning Committee chair, agreed one problem is not knowing what Black Bear’Äôs future plans are and how much they would expand the sewer system later.

 

Grant Township Trustee Richard Powers suggested the Board call the special June 27 meeting in order to have more complete information before making a decision on the grant for Black Bear.

 

’ÄúI don’Äôt know if there’Äôs an advantage for Grant Township,’Äù he said. ’ÄúI don’Äôt want to vote yes; I don’Äôt want to vote no, because I want to make a good decision.’Äù

 

Some residents complain that 3 p.m. time of the June 27 meeting is inconvenient for working people.

 

Said Lac La Belle resident Paul Campbell, who will not be able to attend because of his work, ’ÄúIt’Äôs supposed to be a public meeting, but it’Äôs not very accommodating.’Äù

 

Click here for the Keweenaw Liberty Library and then on What’Äôs New to read correspondence between Black Bear and the DEQ or other documents related to the proposed grant application ’Ķ

 

Click here to comment on this article ’Ķ

 

                                                            ’Äì Michele Anderson

                                                               June 26, 2001