MARINETTE — Plans for businessman Mike Biehl to purchase Harbor Town Marine and develop a potentially bustling marina in Menkaunee have been put on hold.
Following a stream of nearly 20 citizens during public comment and a lively discussion by alderpersons, the Marinette Common Council Tuesday tabled the potential sale of 550 feet of water frontage to Biehl. A packed council chambers was at standing room only.
Biehl has stated he needs the 550 feet of frontage or he won’t purchase Harbor Town from his friends and long-time owners Mike and Barb Frenzel, who currently lease the 550-foot portion of land from the city for $7,000 per year.
The vote to table was 6-3, with alderpersons Deb Klegin, Rick Polzin and Dorothy Kowalski voting no. The matter will come back to the council next month in the form of unfinished business.
Polzin made a motion to approve the sale of the land to Biehl. After about 30 minutes of discussion, alderman Doug Oitzinger made a motion to table the matter.
“A motion to table is non-debatable … it should be called for a vote,” Oitzinger said.
Mayor Steve Genisot asked for an opinion from City Attorney Bob Gagan.
“It means to postpone or suspend consideration of a pending motion,” Gagan said.
Biehl spoke about the council’s action following the meeting.
“It doesn’t make sense to not move forward, but it’s their right to do it,” he said. “I knew it would be a battle — not that we can’t win. We came here tonight for a vote — they already agreed to sell it two weeks ago. All they had to do was work on a price.”
Some alderpersons, along with a couple of citizens, questioned why the land has not been appraised.
“We’ll get the appraisal and do what we have to do,” Biehl told the EagleHerald. “If the appraisal comes in at 20 grand, are they going to lower the price?”
The offer to purchase is for $100,000. There will be $100,000 in an escrow account. If Biehl widens the walkway to 10 feet and gives the city a 12-foot easement for that walkway he will get $50,000 in return. The city has the option of receiving the balance ($50,000) in cash or direct Biehl to erect a 100-square foot viewing platform, to be designed by the city, at a cost of $50,000.
“Basically, the motion is to sell waterfront property without an appraisal — we don’t know what it’s worth — for nothing,” Alderperson Liz Mikutowski said. “We’re giving him the money back once he does the development. That’s how I read it. Am I wrong.?”
Genisot said the escrow agreement is assurance that Biehl will follow through with the walkway and platform.
“If he doesn’t do it, the city will retain the $100,000 and nothing will change,” he said. “We will continue with the 5-foot walkway, and we won’t have the platform.”
Genisot has stated the lease amount the city currently receives from the Frenzels will be covered many times over through an increased tax base because of the marina improvements. He talked about this deal compared with other developments.
“The last five developments have asked for TID — tax incremental financing,” the mayor said. “Mr. Biehl is not asking for that. We donated a road over to KK warehousing. We did not appraise that, we gave that. We also gave them $1.5 million incentives. But specific to this project, he’s asking for that frontage to develop and expand the marina.”
Following that explanation, Mikutowski said, “so in other words, he gets the property for free.”
Biehl has stated he plans to put 2 to 3 million of his own money into the development of the marina.
There were about 30 people who either spoke or sent emails on the topic with roughly 80% in favor of approving the sale to Biehl. Here are some highlights:
• Dan Peterson: “I’m very supportive of this project, especially with someone like Mike Biehl who always follows through. I can speak to his credibility. I’ve known him for 35 years. When he says he’s going to do something he does it.”
• Sharon Powilaites: “A portion of Menekaunee Harbor Park should not be sold to any private party. When it’s gone, it’s gone. Let’s do this right, not fast. There’s no rush. … The harbor is in its infancy. It’s a diamond in the rough. It should be for the enjoyment of the public, not just the elite.”
• Joe Dulak: “I believe the proposed project offers expanded goods and service to people in our community. It creates additional tax base to the city. It provides additional employment to people in our community.”
• Trgyve Rhude: “Selling public property — and in particular waterfront property — is an idea that should be looked at with a great deal of thought and research before any decision is made. … I find it puzzling that the city wants to sell an existing waterfront property while at the same time expressed interest in having Marinette County gift them Runnoe Park on the south side of town.”
• Patty Hassemer: “It’s not only going to increase the tax base, you’re going to see a decrease in your property taxes. … Mike Biehl has never done anything that has hurt the community. He’s only done things to increase the value of this community, support this community.”
• Pam Goes: “I will preface this by saying this has nothing to do with Mike Biehl and the work that he’s done for the city. I’m here to address the city council and the process by which you’re doing this. That’s my concern. As a resident and a former council member, quite frankly, I’ve never seen something move so fast. … As a citizen of Marinette, when I see that, it tells me there’s some red flags.” She questioned why no appraisal was done on the property.
• Mike Perry: “I’ve known Mike Biehl probably his entire life. I’ve been at his side on many, many, many projects. Mike is not doing this for himself. He’s got a commitment to the city and to this community and to the general public in a way that nobody knows unless you personally know this man.”
• Francine Kitkowski: “Mr. Biehl needs no introduction and no justification. He has a proven track record in the city and beyond as a successful business owner and entrepreneur. Whether you like him or not, he has helped make Menekaunee what it is today. Please let him continue with his vision and foresight because he can. He will build it. Menekaunee will prosper and so will the city.”
During discussion, Mikutowski said the debate on this matter should not be personal.
“I find it really, really sad that many people in this room and many who sent emails to the mayor seem to feel that if you are not in favor of selling public waterfront property than you must not like Mr. Biehl,” she said. “You must not respect Mr. Biehl. You must not think that Mr. Biehl has done good for this community. He has. And I think that is really a poor character reference to all of those in this community who would prefer to see the waterfront property stay in the public ownership, in the public realm and be leased, as many marina properties are.”
Oitzinger questioned the lack of information regarding the potential sale and development.
“Maybe the most important thing I asked for was a development agreement for the dockage, boat launch and other improvements Mr. Biehl intends to make to the city and Harbor Town properties,” he said. “Everything said tonight about why we should sell this frontage is based on what Mr. Biehl will do. But we have no documents that outline what he will do.”
He said the city gets more information when a developer asks for TID funds. As for tax potential tax revenue, he said. “Based on what? We have no development agreement that identifies how much value is going to be increased, what those taxes would generate to the City of Marinette.”
Oitizinger said Biehl is a smart businessperson. “He did a hell of a job negotiating this deal,” he said. “I don’t think we have the information we need to make an intelligent, informed decision on whether this is a net plus or a net minus to the city. Selling park property just goes against the grain, and I am going to make a motion to table this action.”
Biehl previously stated he envisions docks across the frontage area, with a new (22-foot) launch well and a 75-ton lift. He said that storage and service will be key components to the development as both are lacking in this area.
Following the meeting, he talked about the support he received from citizens.
“I’m overwhelmed by the amount of support I got,” he said. “It shows that I think the people want it. Of course you have the people who follow everybody else. It’s very obvious Doug Oitzinger is the leader of the people who don’t want it.”
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