Councilman calls out city manager for being “unprofessional”
By Barb Pert Templeton
After a lengthy discussion at a March 17 city council meeting a majority of the Algonac City Council voted to cancel a $15 million purchase agreement for a housing development at the former Algonac Elementary School, now recognized as the Algonac Activity Center.
Councilman Jake Skarbek made the motion to decline creating a Request for Proposal (RFP) for 1216 St. Clair Boulevard and to direct the city manager to seek other funding or development at the former Algonac Elementary School. His motioned was seconded by Councilwoman Cathy Harris.
Council members Skarbek, Harris, Ed Carter, Wendy Meldrum and Mayor Rocky Gillis voted in favor of the motion while Councilman Michael Bembas opposed the plan. Mayor Pro Tem Dawn Davey was absent from the recent meeting.
The developer, Algonac Shores Limited Divided Housing Association, entered a purchase agreement with the city in 2024 stating if they were awarded tax credits from the state the $15 million housing project would take hold. Now, after their applications have continued to be turned down by the state, city officials voted to move on and seek new investors. The project would have brought $40,000 in tax revenues to the city every year going forward.
At a recent city council meeting Algonac Councilman Michael Bembas was the sole supporter of maintaining a contract with developers of the Gar Woods Housing Development.
Bembas was the lone supporter of giving the original agreement for the Gar Woods Development, which was to include 25 senior apartments and 18 family townhouses, more time.
The city has to at least give the investment company time for the deal until they get tired of things and back out of it, Bembas said.
Prior to the vote, Carter asked City Manager Artie Bryson if the city went for the other RFP option – that would allow for development of the site and applications for tax credits from the state – would that mean he’d have to withdraw from the grants he’s been applying for so far. Bryson said yes, he would because you can’t accept money for something the city won’t use.
“Personally, I’m kind of tired of being handcuffed to this agreement because it’s been since 2024,” Gillis offered. “If the state was going to fund this, they probably would have funded it one, two, three or four times ago.”
Bembas asked what the alternative plan is to bring in $15 million to insure the annual $40,000 in self-perpetual funding for the center.
Skarbek said if the city got four new construction homes that would be the difference between the loss of the $40,000 compared to tying up two acres of city property.
Skarbek said he’s rather see a park in the spot, just tear the building down, continue the park and grow it rather than deal with a development company that doesn’t even have the capitol to do the project. They have to go for affordable housing subsidies to even achieve the project, Skarbek added.
Called out as “unprofessional”
During a March 17 council meeting Algonac City Manager Artie Bryson started laughing and looking out into the audience while Councilman Michael Bembas spoke about the potential cost to tear down the old Algonac Elementary School.
Bembas said when the school first became vacant years ago, he was a member of the council and they looked at possibly tearing the building down and the cost would be a million dollars.
As Bembas spoke about the cost to tear the school building down Bryson leaned back in his chair and laughed while looking out into the audience. The gesture seemed to upset Bembas.
“Mr. Bryson that’s unprofessional, if you have a problem with what I’m saying you can talk to me afterwards but what just happened is unprofessional,” Bembas said as the city manager shook his head up and down in a yes or acknowledgement gesture.
Bembas then went on to say none of them are marketing experts that can find another developer easily and if they send this one away, others will think Algonac is not a business-friendly environment.
“It’s frustrating, I don’t like it, wish it was done but nobody else the whole time it was vacant came to us and said we’re even interested,” Bembas said. “I don’t want to give up $40,000 in taxpayer money and if even if you do tear it down and build a park you’re still giving up $40,000 a year to the taxpayers.”
Skarbek then called for the vote but Bembas said the discussion can continue until everyone is done talking about it.
“Mr. Bryson that’s unprofessional, if you have a problem with what I’m saying you can talk to me afterwards but what just happened is unprofessional.”
Algonac Councilman Michael Bembas, responding to City Manager Artie Bryson laughing while he was talking.
“At which point do we count our losses because as we’re waiting year after year for the possibility of the $40,000, which is not guaranteed, it’s looking kind of bleak,” Carter said, noting the city’s had so many years with an eye sore sitting there and how long do they wait?
Bembas then pointed out that nothing changes on the waiting part because if they let this investor go, they have to find another one. He said a compromise might be that they have the city manager look for another investor and if they can’t find one they stick with the current one.
“I don’t know any city that would give up a $15 million dollar investment and $40,000 a year in tax revenue that makes that building financially self perpetually funded,” Bembas said.
Gillis said so that would be going on chance and this investor’s chances have been four so far and going on a fifth try now.
Skarbek also pointed out that recent changes with MISHDA means it’s taking more time now than when the deal was originally made to fund things. They are cracking down and asking for way more paperwork, he said.
“The odds are worse, so we’re just dropping down sitting there,” Skarbek added.
“So, you’re just leaving it vacant?” Bembas asked.
“No, we have a chance to look elsewhere for money,” Gillis replied to wit Bembas said you can still look elsewhere. “No. we can’t because we have a purchase agreement with this company and our hands are tied with this company.”
“Personally, I’m kind of tired of being handcuffed to this agreement because it’s been since 2024.”
Algonac Mayor Rocky Gillis
“I’d rather untie our hands and let us look elsewhere,” Gillis added.
Bembas said the building was vacant for seven years and he’d bet the farm it will remain that way if they let this investor go. He said it’s always easier to discourage than it is to come up with a plan that has a possibility of working.
“Let’s try something else,” Skarbek said.
“I don’t see anyone proposing an alternative, other than saying let’s try something else I’d like to see what the something else is rather than just hearing somebody else may come by,” Bembas said.
The mayor then called for the motion on the floor and it passed by a vote of 5 to 1.
Background on property: The city purchased the school property at auction in Dec. 2023. At that time the school had failed to sell after being listed privately for almost seven years. The final purchase price from the city was $196,000. (Purchase price of $165,000 and $20,000 for marketing fees plus closing costs.) The developer (Algonac Shores Limited Divided Housing Association) had proposed purchasing the property from the city for $196,000.
