Lack of state funds creates city reliance on grants

CADILLAC — With tightening belts around the state, the city of Cadillac has turned to grant funds to fund major projects.

From 1995 to 2006, the city used $2.35 million to leverage $13.18 million in grant funding, Cadillac City Manager Pete Stalker said while speaking at the Lecture Luncheon Series presented by the Cadillac Area Chamber of Commerce and Baker College.

Grant funding has allowed the city to complete many road projects. Essentially, grant money has led to construction, Stalker said.

In 2006, the city did work on Paluster, Pine, North Boulevard, Lansing, Lake, Chestnut, Shelby and Park. All the work cost taxpayers just $186,000 because of grant money.

Just as revenue sharing from the state of Michigan to local communities is in danger, Stalker said grant money is in danger.

Community Development Block Grants, which have been the main source of local grants, are funded through a federal program. Stalker said the pot could be cut from $4 billion to $2 billion.

There are other areas of concern besides just revenue sharing. Stalker said the city is worried about gas taxes, health care, energy, paying for major infrastructure, manufacturing decline, landfill problems, groundwater contamination and growth management.

Looking ahead, the city plans to focus on retaining jobs by providing tax incentives. Grant pursuits will continue as will the use of technology to improve efficiency.

The city has a number of major projects coming in the next few years including a rebuild of Mitchell Street from the south end of Cadillac to north end of the city limits.

Besides just construction, there is a continued focus to improve the downtown area. Stalker said the city added the Harris Milling site to its Brownfield Redevelopment Authority to create tax incentives for potential investors.

A recent study of the Michigan Department of Transportation building, which will soon be vacant, showed it will cost $1.8 million to renovate the building. The city also plans to create incentives for potential investors interested in the building.

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