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                                 MARION TOWNSHIP

                 BOARD OF TRUSTEES

             MARCH 13, 2003

MEMBERS PRESENT:            Bob Hanvey, Sue Lingle, Dan Lowe, Myrna Schlittler, and Dave Hamann

MEMBERS ABSENT:             None                                            



Bob Hanvey called the meeting to order at 7:33 p.m 



Myrna Schlittler asked to add an agenda item for the Metro Act.  Bob Hanvey asked to add agenda items for Township Organization 

Chart, Recreation Budget, and Resolution for Approval of Treasurer’s Database.  Dan Lowe motioned to approve the agenda as amended.

 Sue Lingle seconded.  Motion carried 5-0.




Board of Trustees, Regular Meeting, February 13, 2003:  Sue Lingle asked for a change on page 5 in the dollar amount stated for park

development. The figure should be approximately $55,000, not $100,000. Dave Hamann motioned to approve the minutes as amended.

 Myrna Schlittler seconded.  Motion carried 5-0.

Board of Trustees, Special Meeting, March 6, 2003: Sue Lingle motioned to approve the minutes as presented.

 Dave Hamann seconded.  Motion carried 5-0.

Ways & Means, March 11, 2003: Sue Lingle motioned to approve the minutes as presented. Dave Hamann seconded.

  Motion carried 4-0-1 abstention (Dan Lowe).  




 DPW Bills

Sue Lingle motioned to approve Pollard & Albertson bill for $997.50 and send to DPW for payment.  Dan Lowe seconded.

Roll call vote:  Dan Lowe, Myrna Schlittler, Bob Hanvey, Sue Lingle, Dave Hamann—all yes.  Motion carried 5-0.

Zoning Variances—Article V, Section 5.05 C

Bob Hanvey said that at the March 11, 2003 Ways & Means meeting, it was discussed that the ordinance should include language

stating that variances cannot be requested solely for economic gain.  Mr. Hanvey questioned the meaning of “self-created.”

Does this apply to a situation created by the current and any previous owner? Sue Lingle motioned to table this item for review by the

township Planning Commission and to request language be added stating reasons for the variance should not be solely economic.

Dave Hamann seconded.  Motion carried 5-0.


Bob Hanvey presented the most recent version of the documents involved with the Darakjian/City of Howell loop road.

The first item is a letter from Mike Kehoe summarizing what the documents are. Next are the mortgages, mortgage

notes, Register of Deeds document and alternate amortization tables.  The mortgage describes what will be offered to

the township for security in lieu of payment of the remaining balance on REUs associated with water and sewer. The

mortgage note describes the payment techniques or policies. The Register of Deeds previous mortgage, from

January 1999 between NBD (now Bank One), shows the mortgage as of 1999 was for $750,000. That covers all three

parcels.  The deed just for the north parcel, which was bought from Miechiels’, was over $1 million, so that means

they must have put up money somewhere. One of the concerns is what the basis for the security would be—would it be

adequate to cover a default on the $500,000 that the township would essentially be financing. Since there’s an

outstanding mortgage that started out at $750,000 for just the northern parcel and Mr. Perkins from the City of Howell

sent correspondence indicating that when the closing was first envisioned almost a year ago, the mortgage company

 wanted $200,000 to secure the mortgage at that time.  At this point in time, that isn’t a request, which implies that much

has been paid off.  There is an assurance in the mortgage documents that all payments are current.  Mr. Hanvey believes

 that would indicate the current mortgage balance, which they are unwilling to provide, is probably $500,000 or less.

The parcel to the south (nine industrial lots) is included in this mortgage.  The mortgage we would be taking would be

essentially a second mortgage with Bank One being the primary mortgagee.  The township has the opportunity to follow

normal foreclosure procedure.  The value of that property seems to exceed the amount of the balance of the mortgage

plus the township’s interest in the REUs.  Another consideration is if they do default and the township has to take the

 REUs back, the township can sell them to someone else.  They have requested that the start date for repayment be

 April 1, 2004 to give them some time to recover. In the document entitled Agreement for Removal of Special

Assessments and Other Matters, it’s a three-party document, which includes the township, the City of Howell, and the

seller, Mr. Darakjian, who is the manager of Darakjian Properties.  This document basically states that there is an

agreement to remove the lien from parcel one, which will be replaced by the mortgage.

The most important document is the Development Agreement, which states plans for the property.  The plan is that the

 city of Howell will buy the southern portion of the property for development as an industrial park.  There will be a

Class A road in the southern boundary of the Darakjian property from Morgan Drive off D-19 over to Lucy Road,

approximately 400 feet south of the railroad tracks.  There is a movement to have it extended from Lucy Road to

Chilson Road, and ultimately to Latson Road.  One of the issues originally requested was that the township would give

nine splits.  The problem is that there is no road to create the splits on.  Because the splits would be ineligible for land use

permits, the township gave a document that assures they will have the number of splits they want when the road goes in.

 Those parcels are intended for light industrial.  Apartment units are being planned for the northern part. The document

 also includes the repayment schedule.  The amortization schedule, with an interest rate of  6% with a flat payment

amount for 17 years, will produce about $30,000 more interest than the 6% using the current technique for calculating

interest on special assessments.  Even though the percentage was lower than the highest of the water REUs, it still

produces more revenue over 20 years than the township would have had with the normal technique. Mr. Hanvey feels

the Schoenshack group seems to be doing things conducive to the benefit of the township and the city.  The package also

includes a letter from the City of Howell indicating its willingness to allow the township to use the loop road easement to

serve the property.  Dan Lowe asked if any document said they would build the road.  Mr. Hanvey said the road is not

guaranteed. Mr. Hanvey feels that even though the township may in some ways be giving up security, because the actual

value of the property would be enhanced, and because we’re getting a mortgage on both parts of the property, our

position is improved.  Peter Von Drak indicated that DEQ permits have been submitted and should be back in 30-45 days.

If the wetlands are mitigated properly, hopefully construction could start by August or September. Mr. Lowe is

concerned that the township appears to have the most to lose of the three parties.  Mr. Hanvey stated the township

would only lose if the REUs couldn’t be sold.  Mr. Lowe said if the road isn’t put in, that would be a problem, and he’s

 not comfortable signing without a guarantee for the road.  Mr. Hanvey feels that although there is some risk involved,

the township is lowering its exposure by cooperating.  Mr. Hanvey said that based on the information the township has,

the balance on the existing mortgage plus the township’s $500,000 is less than what they paid for just the northern

parcel.  This doesn’t include the southern parcel.  The late charge is 9% and the foreclosure period is 30 days.

 Interest that was due in December 2002 has been folded into the mortgage payments.  Sue Lingle motioned by

resolution to discharge certain water and sewer assessment liens involving Darakjian Properties,

Parcel #4710-01-200-001, whereas we accept a mortgage on the balance of the water and sewer assessments for that

property.  Myrna Schlittler seconded.  Roll call vote:  Dan Lowe, Myrna Schlittler, Bob Hanvey, Sue Lingle,

Dave Hamann—all yes.  Resolution passed 5-0.

Sue Lingle motioned to authorize township supervisor and clerk to sign three-party agreement for removal of special

assessments and other matters at closing of property.  Dave Hamann seconded.  Motion carried 5-0.

Engineer Review

A suggestion has been made to request qualifications for new engineering companies. Mr. Hanvey would like to have a committee

appointed to handle this process.  Ms. Lingle asked if the committee would be setting up the specifications for proposals?

 Mr. Hanvey said RFPs would have to be written.  The main function of the engineers at this point in time would be site plan

reviews and field inspections on construction.  Mr. Hanvey would like to have one board member, the zoning administrator,

possibly the planner, the DPW coordinator, and the consultant.  Ms. Lingle asked if they would be interviewing.  Mr. Hanvey

has information he will locate on an organization that provides consulting for selecting engineers.  Mr. Hanvey envisions the

committee making recommendations to the Board for selection.  Mr. Anderson from Livingston County said that Brian Jonckheere

 has a list of engineers that may be a good source. Sue Lingle motioned to appoint a committee comprised of Dan Lowe, Tom Klebba,

Annette McNamara and Jack Lowe to begin the review process.  Dave Hamann seconded.  Motion carried 5-0.

Township Organization Chart

Mr. Hanvey presented an organization chart prepared by Mr. Klebba that reflects the current township personnel policy manual.

One of Mr. Hanvey’s objectives would be to have a chain of command where every employee has one supervisor.

 There is a question as to whether the ZBA or Planning Commission should be assigning tasks directly to the zoning administrator.

 Mr. Hanvey would like the board to review the chart for discussion at next month’s Ways & Means meeting. 

Dave Hamann motioned to table this item for further review.  Sue Lingle seconded.  Motion carried 5-0.

Metro Act

A handout was provided that explains the Metropolitan Extension Telecommunication Rights of Way Act (No. 48 of PA 2002).

 For every foot of linear wire in the ground, the township can charge 5 cents.  Mr. Hanvey is asking the board whether this should be

 pursued.  There is a deadline of May 9, 2003.  

Myrna Schlittler motioned to pursue the Metro Act.  Dave Hamann seconded.  Motion carried 5-0. 

Resolution for Treasurer

Mr. Hanvey said this is a resolution to authorize the treasurer to use a computerized database as the tax roll.  This would eliminate the

 requirement to update the manual books, etc. by hand. Myrna Schlittler motioned by resolution to approve the request for authority to

use a computerized database as the tax roll under authority of Public Act 112 of 1990.  Dave Hamann seconded.

Roll call vote:  Dan Lowe, Myrna Schlittler, Bob Hanvey, Dave Hamann, Sue Lingle—all yes.  Resolution passed 5-0. 

Recreation Budget

Last year, the cost for the township’s participation was $57,389.  The proposed budget was $119,855. There are three township

representatives on the committee and all felt that was too much. The revised proposed budget is $63,128 for 2003-04, which is

approximately a 10% increase.  Discussion was held concerning the various programs offered and the amount of usage by township


Dave Hamann motioned to allow Sue Lingle to support the Parks & Recreation contribution of $63,128.  Myrna Schlittler seconded.

 Motion carried 5-0.


Dave Hamann stated the Planning Commission had met twice since last Board meeting. On February 25, the AT&T cell tower was
sent to a public hearing on March 25, 2003 at 7:15 p.m. The ordinance reviews were tabled for an Ordinance Workshop that was
 held on March 4.  Three new items were Tonch private road, given preliminary approval; Knolls of Grass Lake was tabled;
the township hall addition site plan was approved.  A workshop was held on March 4 concerning communication towers and
single-family cluster housing.  Progress was made on the communication tower ordinance.  It was decided to table the single-family
 cluster housing ordinance.
Dan Lowe indicated that two cases were presented at the March 3 meeting.  Mr. Hill requested a variance for a swimming pool,
which was denied.  Mr. Cesarz requested a variance request to build on a lot, which was denied. 


Provided in packets.  Bob Hanvey noted that the Zoning Administrator has been very busy with Planning Commission activities, which is

 not reflected in the monthly report.   


Provided in packet.


Mr. Hanvey reported that a bid date has been set for the Georgetown water pump. The bill will be sent directly to the DPW.

The county is handling rather than the township.  Mr. Hanvey also mentioned that work on the water tower is underway.  


Richard Anderson, Livingston County Commissioner, was present to update the township board on county issues. Five radios have

been funded through 911 funds. Mr. Anderson presented the new County Board structure. Work on the courthouse is progressing,

with a cost of approximately $300,000; insurance is paying for approximately $250,000. The US-23 program was dropped due to

 budget cuts. The Latson Road project is on hold, although the engineering work is done.  Work will be done to improve the

Chemung exit.  There is a $1.5 million reduction in the budget for 2004.  Many departments count on grant money and the impact

of reductions isn’t known. The household hazardous waste building will be complete this spring. Animal Control is looking for a part-time


Barney Cole asked if the ozone station is running.  Mr. Hanvey said no. 

Mr. Hitchcock, 4218 Emily Court, asked about the proposed development on Cedar Lake Road between Norton and Jewell. Mr. Hanvey

said a request had been received to extend the time for the conceptual approval.  Nothing has been scheduled with the Planning

Commission.  The only activity taking place is wells being closed on the property once DEQ approval is received.


Ms. Lingle presented the February report, which indicated $76,579.62 in expenses. Dave Hamann motioned to accept the treasurer’s report.

Myrna Schlittler seconded.  Motion carried 5-0.


Myrna Schlittler motioned to adjourn the meeting at 9:40 p.m.  Dave Hamann seconded.  Motion carried 5-0.