Traverse City Record-Eagle

Acme

June 5, 2010

Acme sets new fundraising deadline

BY BRIAN McGILLIVARY bmcgillivary@record-eagle.com

TRAVERSE CITY — Acme Township officials remain optimistic they won't have to cover a $96,000 shortfall in a campaign to acquire three shoreline properties.

The township set a new "drop-dead date" of June 25 to raise the balance of an $852,000 goal they failed to reach by June 1. Locally generated money is supposed to be matched with $3 million from the Michigan Natural Resources Trust Fund and $150,000 from the township's general fund to buy three motels on East Bay in Grand Traverse County.

The deals would add 540 feet of frontage and four acres to Bayside Park on U.S. 31 at M-72.

"I'm not worried. At least I've been told not to worry," said township Supervisor Wayne Kladder. "The regional land conservancy has a good track record and I think they'll make it happen."

Grand Traverse Regional Land Conservancy spearheaded the fundraising operation. Megan Olds, its associate director, said the nonprofit organization awaits replies from several foundations for grants, and remains optimistic despite a challenging economic climate and growing community needs.

She called Acme's ultimate goal, to acquire more than a mile of waterfront along U.S. 31 from M-72 south to Five Mile Road, a "powerful" vision.

"People believe in it; it's lasting, a permanent change that everybody can enjoy," Olds said. "That vision speaks to a lot of people."

The township will cover shortfalls if it has to, said Sharon Vreeland, township manager. It's already run into some surprise expenses.

State law requires the township to sell $3 million in short-term bonds to cover a three-month time lag for the trust fund to generate its financial commitment. Associated legal documents and a credit rating will cost between $7,000 and $10,000, Vreeland said.

Interest costs could go as high as $60,000.

And it will cost more than anticipated to deconstruct the motels and recycle and reuse materials, partly due to the presence of asbestos, and because the township will have to hire a general contractor to oversee the work.

"Apparently, a governmental unit cannot be issued a deconstruction permit, so we will have to go out and hire a contractor," Kladder said. "You learn these things as you go along. We're being a little wiser the second time through. We'll build these costs into our (subsequent) fundraising goal."

The current fundraising slump has put the township and conservancy a month behind schedule on a second fundraising plan. More than $950,000 is needed to cover a local match to add a vacant lot, motel, and the former Mountain Jack's restaurant to public ownership.

"I think it's going to be more challenging to raise the money for phase II than it was for phase I," Olds said. "But once those buildings go down and people see the change out there, we hope that acts as a catalyst."

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