Grocery store owner requests for assistance with unpaid tax bill

The owner of a local grocery, who purchased the Carter?s Food Center building and has plans of enlarging his operation, went before the Onaway City Commission to ask the city to consider a request to either lower or forgive the personal property taxes owed by Carter?s.

Tom Madison, the proprietor of Tom?s IGA on State Street, is in the midst of moving his operation across the road to the new location, and hoped to be open by October 1, but has now moved the date to mid-October. He appeared before the commission at city hall earlier this week.

The total amount of personal property tax owed from the winter of 2003 to this past summer is $15,553, according to figures gathered by Onaway city officials. The amount owed the City of Onaway is $4,600.

According to city manager Joe Hefele, with Carter?s now bankrupt, it is unlikely the city would get paid in full, even through bankruptcy court. He recommended seeking 10 cents on the dollar, or 10 percent of what is owed.

?THIS SAVES him a large chunk of money, which he can invest in the store,? said Hefele. ?This is the most we would get, even through bankruptcy court, and my understanding is that, for the deal to go through, he must get something from our assessor saying that the taxes are paid to our satisfaction.?

The commission referred the matter to city attorney Mike Vogler, who preferred to look at Madison?s purchase agreement and to revisit the issue at a future meeting

The personal property tax is assessed on property that can include any asset other than real estate, such as equipment. A grocery store firm from Alpena won the bid for the equipment in the Carter?s building, but backed out, allowing Madison to purchase it.

Madison, who has owned the IGA store in Onaway for more than 30 years, will be receiving additional assistance in running the new 25,000 square foot store from family members. He said interior work continues and is expected to pick up in the coming week. Some work has been getting done, on and off, in the evenings.

IN OTHER business: ? Glawe Inc. has been installing the last of the mainline sewer surrounding Chandler Park, and along Cedar Street to The Hub. This leaves the run to Presque Isle Electric and Gas Coop, which may not be completed this year.

The company also must complete lift stations, pave roads, and restore property. The road issue may be addressed at the next commission meeting. Glawe was testing a main last week with hopes of installing new customers this week. Hefele said the latest batch of letters

should already be before property owners.

The goal continues to be to connect most, if not all of the city?s new customers before the snow makes connections impossible. Some this hinges on Glawe?s completion of lift stations.

? The long-unresolved inter-fire local agreement with Allis and North Allis Township remains at an impasse as the entities cannot resolve some sticking points in the draft agreement.

? Pine River Cable appears to be still bogged down in bankruptcy court in their attempt to acquire needed equipment, but there could be movement again on the project this week or next.

? There also may be a pending request to amend the free-standing wood-burning furnace ordinance. The city has a request from a resident who wants to install an outdoor corn stove, which supposedly does not produce any emissions.

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