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Anderson responds

Outlines obsticles to selling assets

HOUGHTON -- Houghton County Commissioner Glenn Anderson responded to proposals to sell county-owned properties to fund a new jail, stating that liquidating those assets would trigger costly state and federal grant repayments.

Anderson's remarks followed a statement from Commissioner Joel Keranen, (see story on this page) who urged the board to sell the Sharon Avenue property and prioritize a jail over non-mandated county facilities, including the transfer station, the Houghton County Marina and Canal View-Houghton County.

Addressing Keranen's suggestion to expand the current downtown courthouse campus using the former Houghton High School lot across the street, Anderson noted voters rejected that exact site by 74 percent in 2010.

“That’s not worth trying again,” Anderson said. “I would agree that the public just doesn’t bite. They passed a lot of new millages and a lot of renewals and have been doing it for years in Houghton County, but when it comes to the jail, for some reason that one seems to me just not happening.”

Anderson said voters had all the facts regarding early inmate releases, lower sentencing, rising future construction costs and liability risks associated with the aging facility.

“Clearly, they’re content with the condition of the jail, the size of the jail, the capacity of the jail, and it is what it is,” Anderson said. "And I think clearly Houghton County is accepting early release, accepting lower sentencing, accepting a higher price in the future and accepting a liability that goes with the old jail."

On the Sharon Avenue property--which the county purchased for $1.2 million after receiving a $1.28 million appraisal--Anderson said selling the site would leave the county with no money for a jail down payment.

“If you were to sell it, you'd have to pay the $1.2 million back to the federal government,” Anderson said. “If you were to sell it, you'd have to give the $1.2 million back to the U.S. Department of the Treasury, and I don't see that having any advantage. We wouldn't be able to keep it as a down payment on a new jail, even though it sure would be nice if we could.”

Anderson said selling other county facilities would carry similar financial and logistical penalties. Liquidating the Houghton County Marina would require repaying state grants, while selling the solid waste transfer station would raise disposal fees and force local contractors to haul waste to Greenland.

Regarding Canal View-Houghton County, Anderson noted voters consistently approve the nursing home’s operating millage and warned against going against their mandate, adding that selling the facility would require repaying roughly $2 million to Medicare.

“So, if you want to go against the voters on Canal View, do that at your peril,” Anderson said.

Anderson said as far as he could see, the county's only option is securing federal earmarks--either $1 million requested through U.S. Rep. Jack Bergman (R-Watersmeet) or $2 million requested through U.S. Sen. Elissa Slotkin (D-Holly) to cover architectural design costs for a new facility.

"So, again, remember we talked about all the payback they would have to pay back to Medicare. We went through all that," Anderson said. "At the end of the day, if my memory's correct, we would have to pay about $2 or $3 million."