IRON RIVER—“Form an authority,” said West Iron County Board of Education Member Rob Possanza, to operate the middle school, “and the worst case would be that we dissolve the authority.”

And, after more than an hour discussion by the board’s Building and Site committee and members of the west side communities and municipal organizations, that was the route recommended at a special meeting June 24.

Representatives from the cities, townships, the Iron River Downtown Development Authority and the Economic Development Corporation were invited to the meeting by Building and Site committee chair, Gary Pisoni, who outlined the issues the district is facing regarding the re-use of the now-vacant school building.

“We got out of the middle school to get the district out of a deficit,” he explained. “There is now a vacant building downtown.

“West Iron district doesn’t want to get into the rental business, and we would like a non-profit organization to take it. The district has committed $45,000 for maintenance for a year.

“We don’t want another Central School. But we need the support of the community.”

Economic Developer Julie Melchiori indicated that at least three tenants were interested in leasing space in the building, with one looking at the entire third floor, requiring some remodeling and upgrades.

Pisoni suggested that the communities and organizations in the district consider “chipping in” funds to help defray costs, at least for the first year.

“Keeping the doors open is our goal,” added Possanza. “But not a long-term commitment for the district to run it.”

Attorney Ron Basso said the EDC has taken action in committing to help find anchor businesses for the site, and help manage the tenants. An authority, he said, would have members from the EDC, the DDA, the school board and municipalities.

EDC President Jim Gibula said that, indeed, his organization has been committed to getting the third floor tenant, but would like to have terms of the lease in place.

with action needed “soon,” according to Pisoni, regarding management of the building, the question asked was “who will be left holding the bag?” The school board does not favor a reverter clause.

“My vote would be no, from a business standpoint,” said Possanza.

“We’re not in a position to be caught holding the bag,” said Board Member Eric Malmquist.

“This is a reality and a concern for someone, a non-profit group to take over,” added Basso.

“Who ultimately ends up with the building?” asked Iron River City Mayor Roger Zanon. “That’s what the city is afraid of.”

“If it’s not economically feasible for the school to run it,” commented Bates Township Supervisor Grant Helgemo, “then how can a business run it?”

Melchiori addressed some of the concerns. A rental fee of $5 per month per square foot, she said, would cover basic utilities and expenses. Ten dollars would, she continued, cover a loan on renovations.

The roof is not an immediate concern. The EDC, she said, could cover prompt renovations for the units it is interested in having rented out. She didn’t feel liability would be prohibitively expensive, and, she added, that the owner of the building, whether a group or individual, would be paying property tax, “a benefit to the community.”

Another option, Melchiori suggested, would be to form an industrial development corporation that could manage the building, and/or form a recreation authority, which the school district could pursue because of its ownership of the gymnasium and auditorium. Interest by the community in creating a business incubator, using the cooking and kitchen facilities and available home economic equipment would fall under the guidelines, as would interest from community colleges and Michigan Works.

Kim Stoker, representing Western Upper Peninsula Planning and Development Region (WUPPDR), said that foremost, a business plan for the building needs to be supplied.

“You need a business plan. You can’t open the doors without knowing exactly what the numbers are, an assessment of real costs. It’s basically a private business. How much can be used for the public,” adding that Rural Development grants and loans could be an option.

“But you need to show numbers to the tenants.”

West Iron County Acting Superintendent Chris Thomson told the group that the school board had already approved turning the building over to a non-profit organization. Possanza said he would be willing to provide a simple business plan. Melchiori suggested writing letters to all the district municipalities encouraging participation in an authority.