Over a dozen business owners and community members were in attendance at the June 23 Hart City Council regular meeting to show their support for the Starting Block. The Starting Block is a nonprofit organization and kitchen incubator with which the city partnered in 2008 to help manage the facility building as well as procure grants for the Starting Block’s operations.
The organization’s mission is “to incubate and support the entrepreneurial spirit, in the food systems and natural resource sector, by providing licensed commercial kitchen facilities, entrepreneurial education and peer-to-peer networking to new and expanding businesses in the multi-county, West Central Michigan region.” Currently, 16 local West Michigan businesses work with the facility, with dozens more established businesses owing their success and growth to the organization. Despite this, some Oceana County residents today may be unaware of the organization and the services it provides.
As the Hart City Council has been seriously examining the city budget, the Starting Block has been a topic of discussion in regard to the ownership of the facility building and the organization’s utility payments. As explained by Mayor Amanda Klotz, the 2008 lease agreement stipulated that “the city would retain ownership of the property for 15 years to satisfy grant requirements. At the end of that period, the property would be transferred to the Starting Block for $1,000, provided the organization remained in good standing with the goals, objectives and grant obligations of the project.” While the Starting Block has since taken over the responsibility of utility payments - which the city had been footing between $23,000 and $25,000 annually - the building is still city property.
The crux of the discourse between the Starting Block and the City of Hart is the 2008 lease agreement. The Starting Block requests that the building be transferred to the organization, as expressed in the agreement. According to Trey Choice, the new director of the Starting Block, “the mission that justified the original grants and public investment continues to be fulfilled… The issue is not whether additional studies can be requested; the issue is whether the original agreement will be honored or not.”
However, the City of Hart maintains a converse stance. Explained City Manager Nichole Kleiner, “The Starting Block [failed] to uphold its agreement in the sense of repairs and maintenance” - specifically in not dedicating $70,000 to repairs to the roof and the city’s past expenses offsetting utility payments. Kleiner continued, advising the council that "The question, at the end of the day, is are the taxpayers okay with offsetting the shortcomings of this organization?”
Both parties are seeking legal review of the lease agreement in order to clarify and determine next steps moving forward, but those working with and for the Starting Block have expressed concerns over the organization’s future and if the City of Hart will sell the building to another entity.
During public comment, Choice introduced the business owners in the audience, several of whom commented to the council on the significance of the Starting Block to their businesses’ operations and expressed their hope that the facility will continue to be operated by the organization. Said one business owner, via translator, “It's very important that I’m able to make my product to provide services not only to the local people, but also to the tourists, and the tourists always come looking for products made locally here in Hart… It's very gratifying to me that I am able to provide a product grown and made locally here in Hart.”
Also in attendance was an employee of the Starting Block, who expressed their admiration for the organization’s mission and the fulfillment of what they’ve learned about food preparation through their employment. “I would love it if, in some way, there can be a way forward that allows that [mission] to continue.”
Sky Harsch, stewardship coordinator at the Oceana Conservation District, spoke of the importance of the Starting Block from a sustainability standpoint, particularly in regard to population growth and its reliance on economic and business opportunities. “When we think about sustainability and we think about growth in our county, we really want to think about how to support small businesses and startups,” Harsch said.
Kleiner and city council members responded positively to the show of solidarity for the Starting Block, with Kleiner expressing how the community turnout to the meeting was "absolutely amazing. This is honestly what we wanted to see from the Starting Block, is this show of support.”
Regarding the status of the Starting Block’s facility, Kleiner did not deny that there are other entities interested in purchasing the building, but that the city is currently not seeking to sell. However, as city manager, it is Kleiner’s responsibility to share these offers with council and posed the question: “Are we willing to entertain other offers?”
Should bids open for the building, the Starting Block was encouraged to make a proposal.
Klotz, discussing the 2008 lease agreement, agreed that counsel was needed to evaluate the document, and that it was “most fair” to obtain proposals for the building from other interested parties. However, she reiterated that the point of Tuesday’s meeting was to “figure out what to do and what’s financially solvent for the city and the entity that’s hosting in [the building.]”
The council requested and was presented a sustainability plan from Choice, which recounted the history of the Starting Block, the current scope of the organization and visions for the future. Some of those plans include building a grant-writing team, focusing on publicity for the organization and starting programs building youth education and workforce development.
The matter of publicity was brought up by council member Betty Root, who recalled her time on city council in 2008 when the lease agreement was created, speaking of the initial excitement for the Starting Block and how it had waned over the years as managers changed.
While council member Andrew Mullen agreed that he was willing to entertain other offers, he’d only consider proposals if the facility remained as an “economic incubator,” as the Starting Block is now. “The Starting Block is, has been, and I’m hoping will continue to be a major asset,” said Mullen. "That’s not something I want to see go away.”
