State approves 30-year lease of Belle Isle
A three-member state panel unanimously approved a 30-year state lease of Belle Isle on Tuesday.
In doing so, the Local Emergency Financial Assistance Loan Board rejected Detroit City Council's counterproposal for a 10-year lease that included more accountability to assure that the state makes good on its promise of funding park improvements.
This was the final step in the process, and the lease has now begun.
Tuesday's approval begins a 90-day transition period transferring responsibilities of patrolling and maintaining the park from the city to the state.
"We know this is a tremendous opportunity for us to improve the park," said Detroit City Councilman James Tate, who spoke at the hearing and made the case for the 10-year lease.
Keith Creagh, director of the Department of Natural Resources, said the the state sought a 30-year lease so it could apply for grants for park improvements that would require such a time commitment.
The city's argument for a 10-year lease was that following its exit from bankruptcy, and a reduction in its structural deficit and a move to a balanced budget, Detroit will have the capacity a decade from now to again properly fund and maintain the 985-acre park.
The three-member loan board that sided against the city is made up of members of Gov. Rick Snyder's cabinet: Treasurer Kevin Clinton, Budget Director John Nixon and Steve Arwood, director of Michigan's Department of Licensing and Regulatory Affairs. At Tuesday's meeting, Nancy Duncan, deputy budget director, replaced Nixon, and Deputy Treasurer Tom Saxton replaced Clinton.
Per state law, the board could not meld the two proposals; it had to select just one.
Near the end of the meeting, Saxton suggested that there is nothing wrong with the two parties amending the lease down the road. Tate said he wished someone had mentioned that sooner.
At an unrelated press conference following the board's approval of the lease, Snyder said the state will move forward now that it had been approved but will be open to ideas about the lease.
On Oct. 1, Detroit Emergency Manager Kevyn Orr and Snyder signed the proposed 30-year lease of Belle Isle to turn it into a state park.
Included in the announcement of the proposed lease was the promise that the state would invest 10ドル million to 20ドル million in the park within the next three years.
But Snyder can't make good on that promise without the approval of the Legislature. And Sen. Roger Kahn, R-Saginaw Township, chair of the Senate Appropriations Committee, has said he does not support the idea.
Senate Majority Leader Randy Richardville, R-Monroe, said today he has no preconceived notions or commitments about funding for Belle Isle.
"At this point in time, I'm not excited about any kind of money issues, but we'll look at it," Richardville said.
Last month the city council rejected the state's 30-year lease, which set up the need for Tuesday's meeting.
Detroit officials want the state to make much-needed improvements to Belle Isle, but they wanted to see the promise of funding for improvements as part of the state's proposed lease, Tate said.
There are no consequences for the state if the investment never comes, city councilmembers have said. Some members of Detroit's City Council wanted to see that investment a part of the lease, so that if it doesn't materialize, the lease would be terminated.
As part of the state's lease, visitors no longer would be able to drive into the park for free but would have to purchase an 11ドル-per-car recreation passport, good also for admission to Michigan's 101 other state parks for one year. That fee will take effect in 90 days, said Ed Golder, public information officer for the state Department of Natural Resources.
Chris Gautz: (517) 403-4403, [email protected]. Twitter: @chrisgautz