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Bioethanol to Fuel Jobs Growth/Plan: Redevelop G-P Complex for Alternative Fuels, Products
A&L Iron to get new rail line: Business, government combine efforts on $2-million project
Citizens Bank Supports the Alliance
The I-75 Crossing
Gaylord Industrial Park, July 2005
City in line for $875,500 grant, March 2, 2005
Corwith preapplication grant OK'd for $981,500, March 2, 2005
A&L Iron railroad project gathering steam March 17, 2004
Bioethanol to Fuel Jobs Growth / Plan: Redevelop G-P Complex for Alternative Fuels, Products
By James Martinez, Staff Writer • Posted: Saturday, September 29, 2007
In addition to the manufacturing jobs, the projects could create an additional 350 to 500 producer and transportation-related jobs throughout the Northern Michigan region and more than 200 jobs related to the construction and renovation of the facilities and infrastructure, stated the press release.
“It certainly is a positive sign that
our community is healthy economically that we can attract
these type of businesses. I think ultimately one success will
lead to other successes . It’s a positive factor we
can now use to bring other companies here,” said Bob
Kasprzak, executive director of the Gaylord/Otsego County
Chamber of Commerce.
Two of the three companies involved in the
redevelopment were identified in the release: Gaylord Lumber
Products, LLC, a new small diameter hardwood sawmill; and
the Massachusetts-based Mascoma Corp., a low-carbon cellulosic
biomass to ethanol company. A yet to be named wood pellet
producer is finalizing its project.
“This project is exciting from the
standpoint of its potential,” said Jeff Ratcliffe, OCEA
executive director. “We have a lot of work yet to do
to make it happen and a number of steps have to be successfully
completed before it becomes reality, but the economic impact
for our community region could be substantial.” Implementation
of the projects is expected to occur over the next 24 to 36
months with construction of the sawmill possible as early
as December.
Several steps remain before the project can
break ground, including the pending site purchase with G-P
(see related story).
As stated in the release, the effort creates
the opportunity to transform the site into a “center
of excellence” for the forest products industry allowing
universities (see related story) and the private sector to
collaborate in advancing biofuels and bioenergy from wood
resources, improve feedstock harvesting and sustainability,
promote sustainable forest management practices while developing
next generation skills for the required workforce.”
The redevelopment project has involved the
close cooperation, coordination and assistance over the past
10 months by the Michigan Economic Development Corporation,
the OCEA, University Center at Gaylord and several key State
and Otsego County leaders and officials.
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A&L Iron to get
new rail line: Business, government combine efforts on $2-million
project
BAGLEY TWP. - Armond Cassil Railroad Construction Inc. and
subcontractor M&M Excavating have begun the construction
of nearly three miles in new rail line to serve an expansion
of A&L Iron and Metal Company on South Townline Road.
The $2-million project is being done in partnership among
Lake State Railway, Bagley Township and the Otsego County
Economic Alliance.
A&L Iron and Metal is completing the construction of $4.5
million in new facilities expected to create at least 25 new
jobs. The rail extension starts adjacent to the former Georgia-Pacific
facility and crosses that property northwest adjacent to an
existing power transmission line.
“Access to rail is key to their being able to expand
at their South Townline and Milbocker location,” said
Jeff Ratcliffe, executive director of the Economic Alliance.
“The closure of Georgia-Pacific complicated our efforts
to secure an easement as well as our funding,” Ratcliffe
continued. “However, through a team effort on the part
of Sen. (Tony) Stamas, Rep. (Kevin) Elsenheimer, Lake State
Railroad Company, Michigan Dept. of Transportation (MDOT)
officials and the Alliance, we were able to resolve all issues,
secure the easement and move the project forward.”
The rail extension is scheduled to be completed by November.
Project financing comes from a Michigan Economic Development
Corp. Community Development Block Grant received by Bagley
Township, an MDOT grant and loan, as well as direct investment
by the Lake State Railway Co.
“This project represents a tremendous community collaboration
and our commitment to serving Otsego County's industry,”
said Wil Gamble, vice president of operations for the railroad
company. “Development of this infrastructure will be
vital for ensuring continued positive growth and prosperity
as well as preserving rail transportation in northern Michigan
and increasing the safety of our highways.”
Gamble said the closure of Georgia-Pacific in March resulted
in the loss of 85 percent of his company's traffic to Otsego
County. Lake State now hauls approximately 20 cars into the
county each month, serving Halliburton, Superior Well Service
and Hager Distribution.
“It won't take us back to the level of traffic we had
when G-P was there,” said Gamble.
The Otsego County Road Commission, in partnership with Bagley
and Hayes townships, the city of Gaylord and the Economic
Alliance, completed a $740,000 upgrade of South Townline Road
in 2005 in support of A&L's expansion project.
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Otsego County Economic
Alliance brings investment home
Citizens Bank Supports the Alliance!
Gaylord, Michigan — The Otsego County Economic Alliance
is currently undertaking a fund-raising campaign to raise
$91,000 during the next three years in order to continue to
implement its strategic plan.
“The old adage that it takes money to make money is
as true for the Alliance as it is for any business" said
Regan Quaal, chair of the Alliance. “We are currently
supported by 37 public and private sector partners, but we
need a few more in order to maintain the level of services
and efforts we are trying to provide. We have been working
hard to support this community, but we also need our community’s
support to keep at it.”
Since it began operation in June 2001, the Otsego County
Economic Alliance can document completed or underway business
expansion, attraction, and community infrastructure projects
that it assisted or developed that resulted in more than $21
million in private investment, more than $25 million in public
investment, 500 jobs retained and 165 new jobs.
Current projects being worked on may result in more than
$2 million in new private investment, 160 jobs retained and
potentially 120 new jobs over the next 12 months.
“The Alliance is not in the business of creating jobs,”
said Regan Quaal, chair of the Alliance. “Business creates
jobs and they do that when they are successful. Our job is
to do everything possible to keep our businesses here and
keep them successful and growing. We are also working to locate
new companies to our community. But to do all of this means
solving problems, providing resources, building infrastructure
and doing everything possible to make this an attractive,
vibrant community with a high quality of life that will support
a successful business. The $12 million federal earmark to
solve our traffic congestion problems is just another tangible
result of our work in this regard.”
The Alliance, created by a task force established by the
Gaylord/Otsego County Chamber of Commerce in June 1997, was
incorporated in 2001 as a 501(c)(3), private-public economic
development partnership. Its mission is to facilitate economic
growth in Otsego County through a public/private partnership
that maintains economic vitality and stimulates economic growth
while preserving the quality of life.
The Alliance is organized as a collaborative, community supported,
full-service economic development organization.
For more information on the Alliance, contact Jeff Ratcliffe
at 731-0288.
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I-75 Crossing Challenge
Relieving gridlock
Local, state, federal officials search for solutions
By Mary Jergenson, Staff Writer
LIVINGSTON TWP. – “How do we secure the $17.5
million needed to fund the I-75 Crossover project?”
That was the question Otsego County Economic Alliance Executive
Director Jeff Ratcliffe and Gaylord City Manager Joe Duff
posed to more than 50 local, state leaders and representatives
of federal leaders Friday at a special presentation by the
I-75 Crossing Task Force.
“The purpose of today’s presentation was to develop
a larger partnership by bringing federal and state stakeholders
to the table, outline our planning process and results, discuss
specific projects with their costs and determine what we will
need to do to secure federal and state investment for the
proposed project,” noted Ratcliffe, who explained the
need for two additional I-75 crossings between U.S. 27 and
M-32 interchanges.
The task force which includes representatives from the city
of Gaylord, Livingston, Hayes and Bagley townships, Otsego
County, Otsego County Economic Alliance, Michigan Dept. of
Transportation (MDOT) and the Northeast Michigan Council of
Governments, began preparing for Friday’s presentation
back in November when they assembled to review the I-75 East/West
crossing study prepared by DLZ Michigan.
“We did not want to let the plan sit on a shelf somewhere,
" stated Ratcliffe, who was instrumental in pulling the
group together to develop and prioritize the study’s
recommendations and strategies as a means to accomplish those
tasks.
To pay for the crossing, the task force is banking on tapping
into local funds in conjunction with existing state programs,
such as the MDOT Small Urban Programs, MDOT Category A, and
Community Development Block Grants. However, they also believe
the crossings will require federal assistance to fund the
nearly $17.5 million total price tag of such a project.
Harold Chase, representative for U.S. Sen. Carl Levin and
Brandon Fewins, regional manager for U.S. Sen. Debbie Stabenow
emphasized the need for community support, in the form of
a letter-writing campaign. Heather Grobaski, congressional
aide for U.S. Rep. Bart Stupak, D-Menominee, agreed, and like
Chase and Fewins, vowed to bring the matter to the attention
of her employer.
Chase noted the timing of the presentation was a little late
to be included in the Senate’s six-year appropriations
budget to be presented for vote next week, but noted it could
be on tap for next year’s request.
Self-proclaimed “wet blanket” Andrew Irwin, manager
of the Project Planning Section of MDOT, noted “The
Governor is set on preserving our current rods system and
brining 90 percent of existing roads up to good condition,”
he said. “With that in mind, she has put a moratorium
on more than $675 million in capacity improvement spending.”
Which means the I-75 crossing project, which is not included
in that backlog, will have to wait a while until state funding
becomes available.
Irwin suggested to the task force, “Perhaps this is
time to marshal your forces, and focus on one project. Many
other communities have bitten the bullet and bonded for projects,
allowing the community to pay for it on their own."
Gaylord City Manager Joe Duff remarked, “We understand
this is not the best time to look for funding, everyone is
feeling a pinch. What we are trying to do is take the necessary
steps now, so we can take advantage of funding when it becomes
available in the future.
“This group isn’t going anywhere, and we are
confident this project will happen,” continued Duff.
“It’s just a matter of getting into the queue.”
The Study
Noting the strong community motivation as a driving force
behind the project, Ratcliffe praised community leaders who
were adamant about solving the morning rush-hour and weekend
traffic congestion around the M-32 and I-75 interchange.
Citing the construction of I-75 in the 1960s, a 56-percent
population increase over the last 20 years, the development
of two industrial parks and major retail outlets as problems
which needed to be addressed, the task force set about finding
a solution to three questions which were: “How to lessen
congestion? How to improve access for industry? How to maintain
the uncongested ‘up north’ feel of our community,”
Ratcliffe explained.
Wes Butch of DLZ Michigan gave the group a brief history.
“Our two goals were to clearly identify existing and
future traffic problems related to east/west travel across
I-75, and to recommend short- and long-term solutions, and
provide recommendations for road improvement funding.”
“The study,” explained Butch, “looked at
both high and low community growth scenarios, composition
of traffic and how it is different from the area norm. We
also looked at access management, which includes driveways
and secondary road access to main through roads."
According to Ratcliffe, local roads slated for improvement
to support the crossings include South Townline, Milbocker,
McCoy, Krys, Dickerson and North Otsego Lake for the south
crossing; and McVannel, Van Tyle, Wisconsin and Dickerson
for the north crossing.
Although the stuffy originally called for a cloverleaf style
exchange at the Milbocker-McCoy crossing, the task force requested
a second closed-diamond design, including an at-grade crossing,
where I-75 would travel over the east-west roads.
“We believe this crossing would be less disruptive
to the existing businesses, maintain existing roadways, represent
better use of land, allow commercial traffic direct access
to industrial parks and growing Old 27 commercial areas, creating
an alternate route for commercial traffic,” said Ratcliffe.
President signs transportation bill
I-75 crossing money on its way
CHICAGO – At a Caterpillar Inc. plant outside of Chicago,
President Bush signed a $286.4 billion transportation bill
into law Wednesday. The bill provides funding for projects
across the nation including the I-75 crossover project in
Otsego County.
Locally, four projects were tapped to receive funding from
the six-year transportion funding bill. Five million dollars
of “high priority” funding was secured for the
I-75 crossing project to construct an at-grade crossing and
I-75 interchange to reconnect Milbocker and McCoy Roads and
construct an overpass to reconnect Van Tyle to South Wisconsin
Road in Gaylord.
Another $7 million for the project was also encumbered under
the Transporation Improvement category.
A project to resurface and widen Parmater Road received $294,400.
In Montmorency County, the proposed reconstruction of County
Road 612 from west county line to County Road 491 received
$640,000.
“This is awesome news,” stated Otsego County
Chairman of the Board of Commissioners Paul Beachnau. “This
will be a wonderful project not only for Otsego County but
all of Northern Michigan.”
Project OK’d in Senate transportation
bill
By Mary Jergensen, Staff Writer
WASHINGTON, D.C. – The U.S. Senate approved, Friday,
and sent to the president a $286.4-billion transportation
bill that will provide more than $1.123 billion annually to
fund transporation projects in Michigan, including $12 million
for “the construction of an at-grade crossing and I-75
interchange to reconnect Milbocker and McCoy Roads, and an
new overpass to reconnect Van Tyle and South Wisoncisn Roads.”
The joint announcement came Friday from Sens. Debbie Stabenow,
D-Lansing, and Carl Levin, D-Detroit.
Heavy congestion at the M-32/I-75 interchange precipitated
the need for the project. A local task force has been working
to secure support and funding since the beginning of the year,
according to Otsego County Board of Commissioners Chairman
Paul Beachnau.
“This just goes to show what can happen when an entire
community, townships, county, city, and state all pull together
for the good of the area,” Beachnau said. “It
is the spirit of cooperation which makes Gaylord the envy
of other communities throughout the state.:
Gaylord Mayor Gladys Solokis received word from Stabenow’s
media consultant early Friday confirming the bill had passed.
“I am so excited to think it came so fast,” stated
Solokis. “It is gratifying to realize that the lawmakers
realize our problems up here." Solokis noted she had
recently heard U.S. Representative Bart Stupak explain funding
for significant road projects is available, it just needs
to be requested.
"We asked and we received," Solokis joyfully remarked.
Neither STabenow's nor Levin's office was able at press time
to offer details as to when the funding would be appropriated
in the schedule which runs through the fiscal year 2009. "This
is very new information and we are not sure what it all means
yet," stated Stabenow's Media Director Dave Lemmon.
Locally, Otsego County Road Dept. Manager Mike Roaper had
not received official word Friday, but believes the Senate
approval is a great boost to the proposed crossing project.
"I am not sure what this means as far as what the county's
share of the project might be," surmised Roper, who expects
to have details soon regarding whether the county's portion
of existing and future road projects, such as the resurfacing
of Old 27, Dickerson, and projected work on Krys Road, will
count toward the local matching funds.
"We have successfully gotten funding for this project
approved through the House, and Sen. (Tony) Stamas is working
diligently to get it through the Senate," state Rep.
Kevin Elsenheimer, R-Bellaire.
"With the federal funding, it looks like the governor
will have some tough choices to make regarding funding for
this project. I see no reason why this project should not
be fully funded, and I strongly encourage Gov. Granholm to
invest in the northern Michigan's furture growth and development."
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Decked out and ready
for action
GAYLORD - Business owners who enjoy such
things as paved pedestrial walkways, decorative streetlights,
and wooded parcels will love the new Gaylord Industrial Park.
Not only does this park feature these items,
it has curbed streets and a landscaped park entrance that
invites guests into this development.
The Park was completed in June 2004 and is
a municipally owned industrial and business park. It's located
1.4 miles away from I-75 and M-32, and is adjacent to the
Gaylord Regional Airport.
Ready for development are a little over 100
acres, divided into parcels large enough to accommodate businesses
both large and small. An additional 140 acres are available
for future development.
Each lot in the Gaylord Industrial Park is
serviced by three-phase power, municipal water and wastewater,
CATV, Verizon telecommunications, and natural gas. Several
well-manicured storm retention basins scattered throught the
park handle all the roadway storn water.
The City of Gaylord constructed this industrial
park in 2003/2004 with just over $3 million. The City partially
funded this project with a grant of $1.2 million from the
U.S. Department of Commerce's Economic Development Administration.
Employees of Gourdie-Fraser of Traverse City were the design
and construction engineers on this project and J&N Construction,
Inc. of Gaylord performed the construction.
Current activity in the new industrial park
includes the Crossroads Industries building, which is a 30,000
square-foot packaging and manufacturing operations that occupies
a four-acre parcel. Crossroads plans to begin operations at
the facility this month.
The 100-acre park is designated as an Industrial
Develoopment District which allows the City to offer tax breaks
to qualified businesses desiring to build in this park.
City Manager Joseph Duff believes the new
park's unique setting with nearly three miles of walkways,
trees, landscaped entryway, decorative lighting, and curb
and guttered streets will be a big plus in attracting new
businesses.
"(It's) one of the most unique industrial
parks that you'll find anywhere. We've built this complex
to allow for both commercial and industrial users."
Prices are $35,000 per acre for the 39 available
lots in the park.
Fo more information, contact Duff (989-732-4060)
or Ratcliffe (989-731-0288). BN
Source: Northwest Michigan Business News
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City in line for $875,500
grant, March 2, 2005
By Frank Michels, Design Editor
GAYLORD - A $1.25-million city of Gaylord
infrastructure improvement project that will include new water
and sewer lines and reconstructed roadways will likely receive
an $857,500 boost.
City officials learned on Friday their notice
of intent for Community Development Block Grant in that amount
has been approved by the state, meaning the city can file
a formal application. City manger Joe Duff said he "feels
comfortable we are going to meet all grant application requirements."
He said the Michigan Economic Development Corp. only asks
for
formal applications for projects it intends to fund. Duff
said the city will have to conduct a public hearing; get clearance
from the state Historical Society to ensure nothing of historical
significance is destroyed or damaged; and receive environmental
clearance before receiving final approval.
The funds come from the federal government
and are passed through the state to local governmental units.
The city will add $400,000 from its local
streets millage to the grant for the total estimated project
cost of $1.25 million, according to Duff.
"We'll be able to do both the water and sanitary sewer
lines and get the roads reconstructed as well," he said.
Streets included in the project:
- North Hazel Avenue (Main Street
to Berkshire Lane);
- East Petoskey Street (North Hazel Avenue
to Hayes Road);
- North Elm Avenue (Huron Street to East
Mitchell Street);
- East Mitchell Street (North Elm Avenue
to North Hazel Avenue).
Duff said the project is necessary because
the water, sewer and storm sewers are about 50 years old and
deteriorating and undersized. He said the project will benefit
not only the residents directly served, but the entire community
by improving overall water-system pressure and increasing
systemwide fireflows. The replacement of the undersized water
mains will increase fire flows ranging from 350 gallons per
minute to 3,300 gallons per minute throughout the entire city.
Additionally, improved storm sewers will
substantially reduce the infiltration of groundwater into
the general city sewer system, thereby extending the life
of the city's wastewater treatment system. Duff credited the
persistence of the Otsego County Economic Alliance and its
director, Jeff Ratcliffe, for securing the grant.
The grant application last year did not receive
funding, but a resubmitted application was approved by the
state's Economic Development Corp.
Duff said the project cost is equal to the funds generated
by the local streets millage for two years. Each year the
millage generates about $650,000. Typically, Duff said, when
the city reconstructs local streets, it also improves the
underground utilities such as water lines and sewer lines.
Funds for such projects, according to Duff,
may not be available much longer, because under the Bush policy,
funding is being dramatically curtailed. "These funds
probably won't be available in the next few years. It's like
the window of opportunity is beginning to shut."
The City Council has scheduled a special
meeting Monday to re-examine its plans for other future local
streets projects. That meeting is scheduled to start at 5:30
p.m. in the City Council Chambers.
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Corwith preapplication
grant OK'd for $981,500, March 2, 2005
By Mary Jergenson, Staff Writer
OTSEGO COUNTY - A preapplication for a $981,500
grant for a Corwith Township road project has won approval.
Sen. Tony Stamas, R-Midland, received word of the preapplication
approval for the Community Development Block Grant (CDBG)
funds to finance a crush and shape repaving project on a 4.24-mile
stretch of Old 27 between Whitmarsh and Thumb Lake Roads.
"Once the preapplication is approved
a formal application must be submitted," explained Otsego
County Road Commission Director Mike Roper late Tuesday. "It
does not mean the grant is guaranteed, but it is an encouraging
sign."
The project represents a partnership between federal, state,
village and township governments working together and pooling
funds to complete the project. If approved, the $1.2-million
price tag will be shared by the CDBG grant, with the remainder
of the funds coming from the Village of Vanderbilt ($20,000),
Corwith Township ($123,000) and the Otsego County Road Commission
($100,000).
"The CDBG funds are for public works
projects in communities where 51 percent of the population
has either moderate to low income," stated Otsego County
Economic Alliance Executive Director Jeff Ratcliffe, confirming
Corwith Township, the Village of Vanderbilt and Gaylord all
qualify for this type of grant. Final approval for the grant
may come as soon as April at the next Strategic Fund Board
meeting, according to Craig Ryan, spokesman for Stamas.
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A&L Iron railroad
project gathering steam March 17, 2004
By Laurie Lounsbury, Staff Writer
OTSEGO COUNTY - A rail extension project
for A&L Iron is gathering steam, with community support
and a portion of the funding already in place.
A&L Iron in Bagley Township is seeking a rail extension
to its location at 2000 Milbocker Road so that it can expand
its metal-shredding operations.
Otsego County Economic Alliance Director Jeff Ratcliffe explained
that A&L intends to buy a $4.5-million metal-shredding
facility. It will need rail service to move metal in and out
of the company.
The rail extension project will cost $1.9
million, funded through grants and loans. The company anticipates
hiring 25 new employees when the expansion is completed. Funding
for the rail project will come from several sources. Bagley
Township sponsored a request for $255,000 from the Michigan
Economic Development Corp., which has been given preliminary
approval.
The remaining cost of the project will be funded through two
different loans from MDOT, with the Lake State Rail Company
applying for the loans.
Ratcliffe expects notification of grant and loan approvals
by the end of this month.
"Our goal is to get funding in place
and get this under construction by the end of this year,"
Ratcliffe said. The rail project needed support from the Otsego
County Road Commission because it will cross three roads:
Dickerson, Plywood and Milbocker roads. The project also needed
cooperation from Georgia-Pacific, since the rail line will
cross its property. "It's been a really good, collaborative
effort with Georgia-Pacific, the road commission, Bagley Township
and A&L," Ratcliffe said.
Another benefit of the rail extension, Ratcliffe
said, is that the proposed route will bring rail service very
close to the undeveloped portion of the new city industrial
park on Milbocker Road.
This is the third infrastructure project
that the economic alliance has coordinated since its inception
in 2000. The alliance assisted with road expansion for Cooper
Standard and road improvement for Beaver Creek Resort. Three
miles of West Otsego Lake Road, leading to the resort, will
be improved this spring.
"A&L needed infrastructure to help
their business, but in this case they needed rail, not roads,"
Ratcliffe said.
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