Gaylord council approves budget, liquor license for new downtown restaurant

GAYLORD — On Monday night, the Gaylord City Council adopted a spending plan for the next fiscal year, approved the creation of a new liquor license for a downtown bar/restaurant and also entered into a letter of intent for the purchase of four lots in the Gaylord Industrial Park that may lead to future job creation.

The city, which runs on a fiscal year that begins July 1 and ends on the next June 30, is currently operating under a budget of $10.4 million for 2022-23. Council approved an $11.5 million budget for 2023-24 which means that owners of a home with a market value of $100,000 that translates into a taxable value of $50,000, will pay approximately $1,070 in property taxes over the next 12 months.

That is down slightly from the $1,136 in property taxes property owners paid this year to fund operations. Taxes are falling slightly because of limitations imposed by the Headlee reduction act, increased state revenue sharing and proceeds from the marijuana tax.

Once again the police department makes up the largest part of the budget, with expenditures set for $2.4 million next year. The department currently has 12 full-time employees. The city took in $311,000 in marijuana tax revenue and used those funds to shave one mill off of the property tax levy for police and fire services next year.

Council also approved a 3.7 percent increase in sewer and water rates. Starting July 1, the basic sewer and water rate for residential users will be $29.59 a month, up from the current rate of $27.55.

Recently the city's Downtown Development Authority (DDA) created a new liquor license for the owners of El Patron Grill on 216 W. Main St. They intend to redo the space once occupied by the old Diana's and Marmalade & Co. on Main Street. They will turn it into Rafi's Hibachi & Sushi, which they hope to open in the next three to four weeks.

"The state has DDA rehabilitation type liquor licenses. (The licenses) are offered in any DDA district that has more than $250,000 worth of investment inside the district," said city manager Kim Awrey. "The business that is applying for the license must put in $75,000 of their own money into the building. These licenses are available with council approval."

Awrey said the city has previously endorsed these licenses such as when Main Street Market was in the space that now houses C.R.A.V.E.

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Finally, Awrey said an Indiana company has approached the city with the possibility of developing a building on four lots in the Gaylord Industrial Park. The building may house an e-commerce distribution operation that would create an unspecified number of jobs on the site.

Council agreed to enter into a 180-day letter of intent with Ambrose, an industrial, logistics and e-commerce real estate developer for the four lots which total nearly 9 acres.

"(The company) did tell us that after 180 days they might ask for another 180 days. It will be a slow process as they have a lot of due diligence to do. But every conversation we have had with them they seem very interested in moving forward because of our location in Northern Michigan," said Awrey.

— Contact Paul Welitzkin at pwelitzkin@gaylordheraldtimes.com.

This article originally appeared on The Petoskey News-Review: Gaylord council approves budget, liquor license for new downtown restaurant