TIFA funds new infrastructure and upgrade Projects 

Less visible than the city buildings TIFA has built, yet vitally important to the city in the long term, are the infrastructure improvements TIFA has undertaken since it was created eighteen years ago. 

Five major infrastructure projects have been undertaken.  Four of them were major upgrades, (the final one scheduled for the year 2005), and one was new construction in the area from the Econo Foods to the east city limits.

New Infrastructure from Econo Foods to the East City Limits 

Without doubt, the new water and sewer infrastructure TIFA put in from Econo Foods to the east city limits has resulted in the most concentrated construction of large commercial properties in the city. 

Early in the life of TIFA, Econo Foods approached city personnel to inform them of their interest in building a substantial food store.  The water pressure, however, was not sufficient to meet the fire suppression and sprinkler system requirements of their insurer. 

TIFA, then only recently formed, did not have sufficient internal funds to install the needed water line.  The projected capture, however, would allow it to repay the cost in four years.  So TIFA borrowed the money from the city, completed the project and paid the city back as scheduled.    The lines were then extended to accommodate Pizza Hut. 

Then things got very interesting.  TIFA was approached with a proposal to install sufficient water and sewer infrastructure for what became the mall that includes K-Mart and the many other stores in that complex.  TIFA made the necessary investment and the result was the largest capture to that date.  It was an excellent return on the invested capital. 

TIFA then moved forward with the necessary infrastructure to accommodate Wal-Mart, Burger King and the Mobil-Subway store, resulting in another substantial tax capture. The newly opened Super Center and Murphy Oil gas station will result in another large capture, but because the infrastructure was already in place, no further TIFA  investment was required. The same can be said for the Wells-Fargo Bank, now being built. The square footage of commercial space in that area dwarfs the total in the downtown district. 

With the infrastructure largely in place, the hospital could be built.  TIFA does not capture taxes from the hospital building itself, because it is a county-controlled non-profit entity. TIFA does capture the large doctors’ office building on the property and equipment within the hospital that is leased but not owned by the hospital. 

All in all, putting in place the infrastructure from Econo Foods to the east city limits has caused enough new construction that it has resulted in a substantial part of TIFA’s total capture. This is money that no one would have captured were it not for TIFA, because without TIFA,   the economics of the project would not have justified the required investment by the city alone. 

Storm Water Discharge into Crystal Lake

Throughout its history, the terrain of the city posed serious storm-sewer drainage problems.  Especially troublesome during heavy rainstorms was water cascading from the east side into the downtown area.  Also, water from the northwest (25 location) and the west side could not be handled adequately, causing serious back ups throughout the system. 

Long-time residents can remember flooded basements in many downtown stores, as well as heavy ponding at the corner of Stephenson and B, Carpenter and B, Ludington and Carpenter, and many other intersections.  Even more vivid was the lake that would suddenly spring up and cover the entire Midtown Mall parking lot.  Many home basements were also victims of those sudden, heavy downpours that overwhelmed the capacity of the system. 

All this storm water eventually flowed into the sewage treatment plant combined with the sanitary sewage.  There was only one line flowing to the treatment plant, so the storm and sanitary could not be separated, and all of it had to be treated. 

TIFA researched this problem.  The cost of building a large, direct storm line from the city limits at Woodward Avenue to the Menominee River was prohibitive. In the end, the most feasible alternative, although not the ideal one, was to discharge into Crystal Lake.  Before this could be considered, the Department of Natural Resources (DNR) and the Department of Environmental Quality (DEQ) did extensive testing and analysis of the lake.  They agreed to the feasibility of the proposal. 

This project was completed over a two-year period in coordination with the Michigan Department of Transportation (MDOT) rebuild project of M-95 (Carpenter Avenue). TIFA work included the H Street, Cedar and River Avenue rebuilds as well as many tie-in connections and storm and sanitary sewer separations.  It was the single most expensive TIFA project.  The result is that it alleviated many of the problems that many property owners had endured for decades. 

US-2 Project from Kent Street to Washington Avenue

 The next major project for TIFA, in coordination with a MDOT rebuild, involved many infrastructure changes from just south of the Chapin Pit to Washington Avenue (near Family Video).  These improvements further improved the long-standing problems in the business corridor.  A number of storm and sanitary separations were also made.  In addition, a large storm discharge line was placed into the east Chapin Pit to receive almost all storm water from the East Side, thereby alleviating possible overflow of Crystal Lake. 

North US-2 Corridor 

In the summer of 2003, TIFA again participated with MDOT by making over $1,650,000 of infrastructure improvements from the Chapin Pit to the north city limits.  Those improvements should handle city needs in that area almost indefinitely into the future. 

South US-2 Corridor (2005) 

In the spring of 2005 the final MDOT rebuild took place from Washington Avenue south to Michigan Avenue.  This is the area from Family Video to Econo Foods.  TIFA  spent just over $2,000,000 in improvements in this corridor. Many water and sewer improvements were made, both in replacement of old lines and installing some new connections. As was the case in the North US-2 project, MDOT added a center turn lane and aligned some intersections as part of their complete rebuild.  

Smaller Projects 

Along with projects costing millions of dollars, TIFA has been involved with many smaller projects in the $100,000-500,000 range.  It has installed many blocks of sidewalks in the downtown district and recently on the north side of the city.  In addition, it has rebuilt and paved Ludington, Hughitt, and “A” "B" Streets and installed infrastructure from Iron Mountain Street to Carpenter Avenue. TIFA has repaved city-owned parking lots.  It purchased and razed the former Eureka Building on East Hughitt Street and installed the parking lot on that site (between the Mellon Clinic and Sikora’s).  Many other smaller projects have been undertaken and completed. 

The Future 

There are a number of sensible future projects TIFA could undertake in its seven remaining years.  Discussions will be ongoing between TIFA and the City Council on future projects that will position the city to achieve further economic development and continue to improve the life for all residents. 

TIFA has built many Iron Mountain facilities 

IRON MOUNTAIN - In the first 115 or so years of its life, the city had never built a City Hall, Police and Fire Department or a Public Works facility from the ground up. 

The former City Hall building on East Ludington Street was originally a hotel with a lobby and stores on the first floor and hotel rooms and a ballroom (later housing the former City Council chambers) on the second. 

In any event, the business ultimately failed, and the city bought the building in the early 1900's.  For the next 85 or so years, it housed the police and fire departments and city hall.  In the early years, the DPW was also there. 

Shortly after World War II, the city bought an older building and land owned by trucking firm adjacent to and just south of the East Chapin pit where the current Public Works facility stands.  That then far-from-adequate facility was used for around 50 years. 

As the TIFA income stream increased going into the early 1990's, it became possible to issue bonds and commence building much needed city facilities. 

First was the purchase of the building that now houses city hall. It was remodeled and completely furnished to meet the needs of city operations.  This facility was dedicated in 1992. 

On land donated to the city by the owner of the former Super Value store, TIFA razed that building and built the structure that now houses the Police and Fire Departments.  It was dedicated in 1993. 

The third project was razing the old Public Works facility and replacing it with the new complex.  It is a far larger building which allows for indoor storage (some of it cold storage for off-season equipment), of all city equipment and an excellent maintenance operation.  Offices, lunchroom and inventory storage have been incorporated in the complex, which was dedicated in 1994. 

These TIFA projects were completed with no tax increase to Iron Mountain property owners.  Altogether, the cost of the three facilities was well over $5,000,000.