HOUGHTON — A list of facade mini-grants in Houghton’s downtown was sent back to the Downtown Development Authority for review after City Council members objected to a recipient who had sued the city.

The DDA has given out grants for smaller projects that might not happen without assistance, City Manager Eric Waara said. The DDA solicited applications from throughout the DDA boundaries, then picked recipients and recommended amounts.

Councilor Robert Megowen said the council should send the issue back to the DDA. At issue was the $8,000 grant to EPM LLC for 318 Shelden Ave., which is used by Copper Country Running Company. It would cover repairing the foundation, removing the spray foam/air conditioning unit and creating an art piece in an alley.

Megowen disapproved of the connection to Edward Cole, who also owns the adjacent Hall Building. Cole had previously sued the city over the Planning Commission’s approval of Braveworks’ site plan for a mixed-use development at 326 Shelden Ave., as well the council’s abandonment of an easement on the sidewalk next to the building.

“There was a suit brought against the city which cost the city a lot of money,” Megowen said. “For the taxpayers to grant money to somebody that has cost us 30-some-odd thousand dollars, I can’t tell the taxpayers, ‘Here, we’re going to give him some more money’… I like the project that he wants to do, but I can’t spend taxpayer money on that.”

Mayor Pro Tem Joan Suits said while she didn’t necessarily agree with Cole’s actions, she didn’t see it as a basis for denying the grant request.

“I understand the concern,” she said. “On the other hand, I don’t think that people should be punished for doing what is their legal right.”

In a statement, Cole said he had been approached by several business and community leaders to participate in the grant process.

“What’s been made clear once again by certain individuals on the Houghton City Council is that if you don’t agree with them and then exercise your legal right to challenge them, they will take punitive action against you now and in the future,” he said. “It’s not legally supposed to work this way but knowing these politicians, no real surprise to me. I would like to thank the DDA and the city council members who support the Hall Building and actually recognize the law, the importance of fairness, a level playing field, and improving the city they represent.”

Acting on a previous motion by Needham, the council motioned to allow Councilor Virginia Cole, Edward Cole’s sister, to abstain from voting because of her financial ties to EPM and Suomi Restaurant. Megowen said he had abstained from previous votes on facade grants for the Douglass House.

A vote to approve the grants failed on a 3-3 tie. Mayor Brian Irizarry, Mayor Pro Tem Joan Suits and Councilor Craig Waddell voted yes; Megowen and Councilors Mike Needham and Bob Backon voted no.

The council also asked the DDA to revisit the criteria for the grants.

Waddell said he had spoken with a business owner within the DDA boundaries but off of Shelden Avenue who had been unsure if they qualified.

“If people get the idea that maybe these are going to go to Shelden Avenue, maybe they don’t apply,” he said.

Following Waddell’s suggestion, Needham recommended asking the DDA to revamp their scoring to place more weight on first-time applicants and streets in the DDA where no projects have been done before.

Other suggested grants:

• Chickadees, 514 Shelden Ave.: $2,500 for new signs in the front and back of the building, painting the door

• Rhythm & Citrus, 418 Shelden Ave.: $1,500 for replacing the storefront facade with synthetic material

• The Vault Hotel, 600 Shelden Ave.: $1,250 to update the awning

• Suomi Restaurant, 54 Huron St.: $5,000 to renew signs, remove stucco from west wall and install mural

• Laiti Jewelers, 120 Shelden Ave.: $5,000 for new awning

• Litsenberger LLC, 225 Lakeshore Dr.: $2,500 to restore prism window, patching to exterior wall

• Lahti Apt. LLC, 321 Shelden Ave.: $2,000 for removal of old facade and signs, masonry/foundation cleaning and repairing

• Sky Sushi, 401 Shelden Ave.: $2,250 to paint exterior, new windows and purchase and install two pergolas

• KBC, 404/408 Shelden Ave.: $5,000 to replace front awning

• TT Enterprises, 700 Shelden Ave.: $5,000 to repair foundation and paint