Hancock approves Finlandia building purchases

Garrett Neese/Daily Mining Gazette Hancock resident Alan Salmi speaks in favor of Hancock’s purchase of three former Finlandia University properties during a public hearing Tuesday night. The council voted 7-0 for the agreement with state-appointed receiver O’Keefe & Associates.
HANCOCK — Hancock will take ownership of three former Finlandia University buildings that had been slated to be abandoned.
The City Council voted 7-0 Tuesday night to buy Nikander, Mannerheim and Wargelin halls from state-appointed receiver Patrick O’Keefe & Associates for $30,000. The sale was scheduled to be approved in Ingham County Circuit Court Wednesday afternoon.
Hancock would winterize the buildings and also perform maintenance until a permanent use can be found for them.
Some council members said they had initially been skeptical of purchasing the buildings, but became convinced it was necessary to prevent them from falling into disrepair before a buyer could be found. Because there was no lien on them, it would take about five years before they would go on the tax rolls if the city doesn’t step in.
“When I first heard this proposal, I was very concerned about the potential liability that we could assume with these properties, if there’s any kind of contamination, any kind of repairs that have to be done, and all those issues,” said Mayor Kurt Rickard. “However, it was pointed out to me that if we do not make this purchase, then they sit there. They won’t be winterized, we won’t have any access to them, we won’t be able to get inside to get rid of any squatters, we won’t be able to repair any broken windows, we won’t be able to do anything.”
Councilor Rick Freeman, Jr. said he had been on the fence, but said city ownership would be best, at least temporarily.
“The city of Hancock should not be a landlord,” he said. “So I am in support of this, with the hope that the city will end up selling these buildings.”
More than 30 people attended a public hearing on the purchase at the start of the meeting, which had extra chairs set up to accommodate the crowd.
A majority of speakers supported buying the properties. Most focused on housing possibilities in the buildings, which are zoned R-2 (multiple family residential).
One suggestion was a housing co-operative that could include a range of families, ranging from young families to the elderly. Another stressed the importance of transportation to the development plans, particularly considering the number of Michigan Technological University students.
“I think it’s a wonderful opportunity to dream and to create something that is sort of a once-in-a-lifetime opportunity,” said Frank Fiala. “I think that if you were to establish some visioning groups, that we would have very creative suggestions to come out of that and do some things that would be of great benefit to the city.”
Some former Finlandia employees also backed the purchase, which they said would add to the security of the buildings and help provide additional funds for employees who had not received full back pay.
Public sentiment was not unanimous. Some worried about the costs of maintaining the building, or the inability of past large buildings to sell, such as the former Houghton High School. Resident Jim Hughes said the city didn’t need to take on more liabilities when it had already taken on the Houghton County Arena and the former Risto’s Hardware building.
“Hancock should concentrate on the industrial park for now, since it has been 20 years in the making,” he said.
In response, resident Michael Lancour said using the buildings as housing would help provide places to live for workers drawn in by the industrial park, or for the students Michigan Technological University anticipates to add over the coming years.
“Having a spot where they could live in the City of Hancock might be a revenue increase for the City of Hancock, whether we continue to operate it as a housing co-op, or if we were to sell the building outright to a developer,” he said.
The council also approved rezoning two parcels from industrial to R-1 (single family residential). The land is north of the city garage on Tomasi Drive.
Some residents who spoke at a public hearing on the rezoning were worried potential housing would restrict their access to the Maasto Hiihto trailhead and trail network.
Rickard said he had spoken with Keweenaw Nordic Ski Club board member John Diebel, who said he is working with developer Jed Wuebben to maintain the trail access.