Marquette commission approves applying for $3.3 million waterways grant, adopts fiscal policy to cover local match

The Marquette City Commission voted 4–2 on March 30 to authorize submission of a Michigan Department of Natural Resources Waterways Grant application to replace the floating piers at Cinder Pond Marina and to adopt a fiscal policy intended to generate the local match.

Staff told the commission the total estimated project cost is $3,300,000 and that a 50% local match—about $1,650,000—would be required if the full project is awarded. The Parks and Recreation Advisory Board recommended the application and proposed a phased option as an alternative to single-buildout.

“Recent storm damage has accentuated the need,” Commissioner Gotautle said during debate, arguing the marina infrastructure must be rebuilt to remain usable. Commissioner Gotautle moved the motion to approve the grant submission and associated fiscal policy; Commissioner Larson seconded.

Opponents on the dais warned about asking ratepayers to shoulder a large local match while the city faces other capital needs. “I find a $1.6 million match when we’re already in a very tight budget for a marina that has 90 slips in it or so,” Commissioner Hanley said, adding that many slip holders are not Marquette residents and that the city’s general fund priorities (roads, for example) might be a greater community need.

Staff and the city manager said multiple repayment options are being studied: (1) an interfund loan repaid from marina rates, (2) bond financing repaid with marina rates, or (3) the rates themselves covering the match through the fiscal policy under discussion. Staff said the match would be funded up front and reimbursed at project completion if the grant requires reimbursement.

The adopted fiscal policy included a proposed 15% seasonal rate increase for three years (to generate match funds under a one‑ or two‑year build scenario), an 8% seasonal increase thereafter, and a five‑year policy review. Staff said the model for payback could range up to 12 years depending on financing method and actual rate increases.

Commissioner Larson emphasized that final approval of any borrowing or use of general‑fund dollars would return to the commission as a separate decision if the grant is awarded. "This would come back in front of us another time," Larson said, noting the current vote authorizes application and a policy framework rather than immediate expenditure.

Outcome: motion passed 4–2. The commission directed staff to submit the Waterways Grant application and to return with implementation details and options if the grant is offered.

Votes at a glance: the motion to submit the grant and adopt the fiscal policy passed by voice vote with a recorded outcome of 4 in favor and 2 opposed; no roll‑call votes were recorded in the transcript.

Next steps: staff will submit the grant by the April 1 deadline and will report back to the commission with financing scenarios and the precise match funding plan if the grant is offered.