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VOL. 138, NO. 5

Chelsea Standard 75¢ THURSDAY, FEBRUARY 3, 2011

City will use fund balance, cash

Weave the Web:
Make sure to click on
www.heritage.com around
the clock for the most
in-depth coverage of
Washtenaw County. Our
“Most Viewed” story this

reserves for $3 million payment

week is “Washtenaw County
Court Briefs.”

finality because (this) is going Fellow Council members Rod

Investment group
wins lawsuit
following city’s
final appeal
By Sean Dalton
Heritage Media
Chelsea took the first of
many steps in paying a $3 mil-
lion judgment filed and won by judgment bonds to finance the
Chelsea Investment Group LLC. repayment of the remainder
The investment group, which of the debt, which would be at
first initiated the lawsuit in
2006 under former city man-
ager Mike Steklac, asserted
that the city failed to live up to Holmberg inquired about the
its end of a contract agreement interest rate during the oppor-
to provide sewer and water in
line with the planned housing
volume of the Heritage Point
subdivision.
The Circuit Court awarded
the judgment to Chelsea
Investment Group, and the
city subsequently fought the
ruling all the way to the state
Supreme Court – their final
legal recourse.
Last month, the state
Supreme Court refused
Chelsea’s final appeal.
City Manager John Hanifan
was frank about the ramifica-
tions of the court’s decision.
“Though there was at least
some closure, there was not
to financially impact us for the
next decade,” Hanifan said.
The immediate result of the
Chelsea City Council’s 6-1 vote
is the payment of $1 million
of the full judgment – $250,000
from the city’s general fund and
$750,000 from the electric fund’s
cash reserves.
The next step will involve
seeking $2 million in 10-year
a lower interest rate due to the
initial $1 million payment.
Council member Bill
tunity for council to question
Hanifan further.
The interest rate on the
bonds would be 4.5 percent,
total $500,000 in debt service
interest over the term of the
bond, and yearly payments
would be nearly $250,000.
The electrical fund’s per-
centage of the judgment is 46
percent based on what percent-
age of the overall budget each
portion represents.
The general fund will bear 28
percent of the brunt, while the
water fund will be 12 percent,
wastewater is 10 percent, solid
waste is three percent, and
storm-water one percent.
Anderson and Cheri Albertson
both expressed concern about
what satisfying the judgment
would mean for city services.
“What would the impact
be on the electrical rates?”
Anderson asked multiple times.
Anderson added that he
didn’t understand the alloca-
tion method for making the
bond payments from the overall
city budget or what it meant
initially.
Hanifan responded multiple
times that rates would not
increase, adding that the per-
centage allocations were based
on what percentage of the city’s
entire budget each sector fund
represented.
Hanifan also justified electric
funds bearing the brunt:
“The judgment was levied,
and the basis of the case was
failure to provide utilities, so
that’s the logic.”
The electricity fund would
bear $110,400 of bond payments
per year appearing as a line
item until the 10-year bond is
paid off.
Albertson verbally noted that
Hanifan promised that electric
rates would not increase, while
counting off the number of
times he said it the second and
third time, for the public record.
Council discussed other
Check out our video:
■ How to download an
e-book
■ Saline coach talks
about Huron game
■ 2 for U Saline/Milan
■ Area bowling teams
compete
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Photo by Sean Dalton
Council members Cheri Albertson, Frank Hammer and Rod
Anderson listen to Chelsea City Manager John Hanifan explain
how the municipality will pay a $3 million judgment from a law- Join us on Twitter:
suit with Chelsea Investment Group LLC.
Become a Chelsea
Standard follower. Click on
options for paying the debt, such City officials are expected the Twitter tab on the home
as a millage or different bond to discuss the judgment bond page of our website or go
terms. further at their next meeting on directly to http://twitter.com/
But Hanifan said that based Feb. 8. ChelseaDexter.
on the direction of home values “We could look at this as the
in coming years and the pre- end of a five-year process and
determined paths available to (that) there was at least some
the city the current option is the closure or finality,” Hanifan
best for the city. said.

Downtown ready Join us on Facebook:

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By Sean Dalton Outdoors; Bumbles Dry

Staff Writer Goods; Chelsea First United
Families, couples and folks Methodist Church; Chelsea
who just love chocolate will Village Hardware; Chelsea
once again have the opportuni- Woodworking; Cherry
ty to celebrate Valentine’s Day Optometry; Cleary’s Pub;
The Marketplace:
two days early in downtown Common Grill; Dayspring Local ads are just a hop
away at the MIcentral.com
Chelsea. Gifts; Garden Mill; Gemini marketplace. While you are
The Chelsea Center for the Salon & Day Spa; Gigi’s there, you can check out
Arts, along with more than 30 Flowers; Gourmet Chocolate all the special supplements
businesses, will be operating Café; Heydlauff ’s Appliances; of Journal Register Co.
as Chocolate Extravaganza Holiday Inn Express; Just newspapers in Michigan.
locations from 10 a.m. to 5 p.m. Imagine Books & Toys; La Click on “marketplace”
Feb. 12. Jolla Fine Jewelry; Merkel’s on the home page of our
“It’s such a fun event ... my Furniture & Carpet One; website or go directly to www.
marketplace.micentral.com/
children love to visit and go Middle Bead; Mike’s Deli; ROP/Categories.aspx.
around tasting all of the good- Mission Marketplace; New
ies,” said Sue Whitmarsh, who Chelsea Market; Pierce’s Photos courtesy of the Chelsea Area Chamber of Commerce
is involved directly in the event Pastries; Potting Shed; Reed Bob Pierce, executive director of the Chelsea Area Chamber of Commerce, surprises Joan
for the first time in her three Barbering; Tree House; Village Henry and Pat Cleary with the 2010 Business Leadership Award for a large business. Henry and INDEX
years with the arts center. Shoppe of Chelsea; Vogels and Cleary, along with Meg Boomer own Cleary’s Pub on Main Street in downtown Chelsea.
Whitmarsh is coordinating Fosters; and Zou Zous. Editorial Page 4-A
the CCA’s treats and crafts

the extravaganza from 10 a.m.

to 2 p.m.
program which will run during ing businesses, Chelsea Teddy
“We’re doing arts and crafts
here, including wire decora-
tions, and it’s free and open to
the public,” she explained.
Organizers hope that choco-
late-goers will hoof it around
town to multiple places to see
what’s offered and to burn off
some of the 11.7 pounds of
chocolate that each American
is estimated to eat on a yearly
basis.
Chocolate also lowers blood
pressure and releases serotonin downtown without leaving
– a chemical in the brain that
creates a sensation of pleasure. downtown without having to go
Participating businesses
include Aberdeen Bike &
In addition to the participat-
Bear Company is selling a
Chocolate Extravaganza 2011
commemorative shirt for $6,
in addition to discounts on
bears with a “chocolate” sign
on them.
“It’s really a nice occasion
for merchants downtown to
come together and encourage
people to come out in the cold
and get a hot chocolate and
peruse the stores,” Whitemarsh
said.
“What’s nice is that it show-
cases what you can purchase
the area ... you really can shop
to a big box store for some gifts
or some baked goods.”
Chamber bestows awards
for business leadership
By Sean Dalton
Staff Writer
For Pat Cleary simply being
a part of the Chelsea commu-
nity and downtown district for
20 years through Cleary’s Pub
should be credited for receiving
the 2010 Business Leadership
Award for a large busienss.
“I’ve been a chamber mem-
ber for 20 years, and I’ve been
here for 20 years,” Cleary said
Monday from his basement
office at Cleary’s at 113 South
Calendar
Deaths
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Sports
Community
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Page 1-B
Main St. fee company’s headquarters.
The Chelsea Area Chamber His parents have also recently Printed
NEWS TIP
of Commerce board recently purchased Pierce’s Pastries, so on
announced their 2010 Business the Tolliver family’s name is of HOTLINE:
recycled
Leadership Award winners, growing renown each year. 475-1371
with True North Jerky Co. The Chelsea Area Chamber of paper
owner Phil Tolliver joining Commerce and the Ambassador
Cleary by earning the cham- Club of the Chamber present
ber’s Small Business Award. these awards annually.
Tolliver has been growing Businesses are nominated
True North for several years from the community at large
now, in addition to buying the but the owners must be cham-
Bearclaw Coffee location next ber members in good standing.
door, which used to be the cof-
PLEASE SEE AWARD/3-A

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