Dunkirk balks at payments (02/27/07)

DUNKIRK - City leaders here have encountered a bump in the road concerning plans to utilize and maintain the community's recently acquired historic railroad depot building.

The structure, which at one time served as a passenger station for the Pennsylvania Railroad, was purchased last year by the Dunkirk Industrial Development Corporation.DIDC members agreed to use $40,000 in Economic Development Income Tax (EDIT) funds to buy the structure, but don't want to cover maintenance, insurance and utility costs indefinitely.

DIDC chairman Dan Watson is proposing that the DIDC enter into a lease agreement whereby the city would pay $1 a year to rent the structure and also agree to pay utility bills, insurance and property taxes. The DIDC is currently paying those expenses.

Dunkirk city attorney William Hinkle presented the DIDC lease proposal at Monday evening's council meeting, immediately encountering concerns about how the financially-strapped city could afford the extra expenses - none of which were included in the city's 2007 budget.

"How would we pay for the utilities?" asked Tom Johnson, councilman in charge of the city parks and pool. Johnson said that logically those expenses should come from the city's park budget, but said that no funds have been put aside for that purpose. Between regular park and pool expenses, the city is already "operating on a shoestring," Johnson said.

Dunkirk clerk-treasurer Jane Kesler agreed, saying the city had no funds for these expenses - especially the utility costs.

Mayor Sam Hubbard suggested the Dunkirk Improvement Committee could contribute towards these expenses.

But the mayor and improvement committee member Pam Bunch pointed out the group has earmarked all its surplus funds to pay for signs to attract more people to Dunkirk and the Glass Museum.

Bunch said the topic could be discussed at the improvement committee's next meeting March 7 at 7 a.m. at the West Jay Community Center.

Hinkle said terms of the lease agreement proposal could be revised.

Hubbard suggested tabling the matter, and asking if the DIDC would be willing to continue paying the utility bills until at least the end of the year.

He suggested the possibility of including some of the expenses in the city's 2008 budget.

"Right now there are no funds in the park budget for this," Johnson said, as council members agreed with the mayor to temporarily table the lease proposal request.

In other business at Monday night's meeting, council members:

•Listened to a report from Hubbard about plans for the upcoming utility line relocation project in connection with the proposed Ind. 167 street improvement work through Dunkirk, which is tentatively scheduled for 2008.

The mayor said he recently met with Steve Bender of Commonwealth Engineers, Indianapolis, the firm which is working on the project designs on behalf of the city. Bender said bids for the work could be advertised soon, and he anticipates the project will cost approximately $800,000. However, the mayor said that so far the city has not received any official notification that the state will help pay for this work. Without some financial assistance from the state, the city will not award any contracts for the project, Hubbard said.

•Paused to reflect on the life and contributions of former city employee Jack McClain, who died Saturday. "He was a friend to all of us," Hubbard said.

•Heard a report from council member Connie Whetsel that strong winds recently blew some rotten wood and other debris from the roof of the Stewart building onto the street and sidewalk below. Hubbard said he would try to get someone to clean up the area.

•Complimented the Dunkirk street department and other city workers who cleared streets and alleys following recent snow storms.

•Approved a request by Kesler to deposit approximately $5,000 in the city's Rainy Day fund.[[In-content Ad]]