New Buffalo City Council cancels cannabis amendments

BY THERESE DONNELLY

Marijuana businesses won’t be appearing in city limits any time soon, as the New Buffalo City Council did not pass either of the two ordinance amendments created to establish parameters in zoning for marijuana-based businesses at their Monday, May 15, meeting.

Previously the Planning Commission voted unanimously to recommend the amendments to Appendix A to address special land use for marijuana businesses inside city limits. At the May 15 council meeting, Mayor John Humphrey noted that the proposed amendments were tabled during the April council meeting because the council wanted to consider potential challenges the amendments might present. Humphrey said he still felt the ordinance meets the city’s needs.

Councilmember Mark Robertson added that the response to a public survey on allowing marijuana businesses in the city did not show ‘overwhelming’ support from the public. Robertson also said state marijuana revenues are down and he felt the market seems saturated.

The council voted 2-2 on a motion to reject the ordinance with Robertson and Humphrey voting in favor of the denial and councilmembers Vance Price and Brian Flanagan voting against. Councilmember Roger Lijewski recused himself from discussion and voting due to conflict of interest.

Humphrey acknowledged that some in the audience would be disappointed by the council’s decision, but said he felt the four of them should not be the ones making a decision that would have wide-reaching effects on neighboring property owners. He suggested the public create a referendum on the upcoming ballot to decide.

The council also had two brief public hearings on financial matters- one on the 2023-2024 truth in taxation and one on the 2023-2024 fiscal year budget. There was no comment from the public or council on either matter.

City Manager Darwin Watson explained that when inflation for the fiscal year is less than 5%, millage rates roll back, but this year there was no such change. The council approved small changes to the millage rates, with the general operating millage moving from 20 mills to 9.7631, the parks from .4599 to .4391 mills and the streets and roads from .2431 to .2386. Humphrey said that, while the millages have gone down, taxable property values have increased, leaving property owners’ payments roughly the same.

The council also approved the adoption of the city’s annual budget, as required by the Michigan Uniform Budgeting and Accounting Act and the city charter. Humphrey recommended residents review the proposed budget on the city’s website.

Before the council approved the budget, Watson addressed confusion over the city’s financial state. He explained the city has budgeted a planned deficit as part of its strategy for funding projects. Watson said the city is in good financial shape and the deficit is “planned from good fiscal decisions made years ago.”

Southwest Michigan Symphony received approval on a special events application for a pop-up concert on June 29. The free, outdoor concert will feature four or five musicians performing and interacting with the audience to share information about the music. Horizon Bank and the New Buffalo Arts Council will sponsor the evening.

Executive Director Jessica Ishmael explained the SMSO began pop-up concerts in order to perform during covid restrictions and this year would be the first time they will be outside St. Joseph.

The council approved the purchase of a new water heater for the city marina. Watson explained a pre-season inspection had revealed the current heater is leaking and it would be more effective to replace rather than repair the unit. City Water and Heating’s $9747 quote covers purchase, and installation of an 80-gallon commercial-grade water heater. Watson said the cost included “lots of plumbing and electrical work” and the installation of a pump.

The winter also proved to be hard on the street department’s 2011 International dump truck. The council approved a quote from Jacob Jones Auto for $6,114.96 for repairs. Watson said the repairs were extensive, but were far less expensive than purchasing a new truck, which he said would cost roughly $125,000 and there are long lead times for purchases.

Boelcke Heating and Cooling submitted the low quote for HVAC work at the city fire station at a total of $8,406. Aatson said there is a need for a mini split to provide necessary cooling in part of the station.

The council voted to appoint Marc Danesi, Chad Gradowski, Robert Kemper and Ben Smock to the Downtown Development Authority and Mark Joseph to the Planning Commission. Longtime DDA member and business owner Dee Dee Duhn was included in the reappointments on the evening’s agenda, but at the start of the meeting Humphrey shared with those in attendance that Duhn had passed away over the weekend.

Humphrey praised Duhn’s contributions to the city and said she would be missed.

In order to comply with the State of Michigan’s Distribution System Materials Inventory Assistance, the city must create and maintain a Distribution System Materials Inventory (DSMI)- a comprehensive record of water line materials. Watson said municipalities are responsible for replacing lead and copper lines up to 18 inches into homes and property owners are responsible for everything further downline. Abonmarche Engineering will assist in the completion of the DSMI for $40,500.

Watson said identified lines will be replaced at a rate of five percent each year for 20 years.

During the March council meeting, there was a clerical error in the recital of Ordinance Amendment 236, using the words “Grand Haven” rather than “New Buffalo.” At the May meeting, the council approved a new second reading to correct this.

City attorney Matthew Zalewski the firm Rosati Schultz Joppich and Amtsbuechler, PC informed the council a request had been made regarding the city’s settlement agreement in the case of Nofziger et al vs City of New Buffalo. Zalewski explained the initial agreement entered on March 14, 2023 paid the plaintiff’s attorney’s fees, but the lead counsel had moved to a different firm and there was difficulty cashing the check. He said the firm was asking the city to take back the check and reissue payment to a third party.

Humphrey criticized the request, stating it was “direct evidence,” the lawsuit was funded by a hedge fund.

“It seems crazy to that we’re doing a favor for somebody who sued us,” Price noted.

Humphrey suggested those attending the meeting go home and look up the term “racketeering.”

The council voted unanimously to table the request, though Robertson said he would prefer to deny request.

The council went into closed session to discuss legal strategy with counsel.