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Grand Haven city council pauses snow melt bill as downtown merchants face record costs

City council pauses snow melt bill as downtown merchants face record costs
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GRAND HAVEN, Mich. — Grand Haven's city council is putting a pause on this year's bill for the downtown snow melt system after operating costs hit a record high, offering some relief to local business owners already stretched thin while waiting for the summer season.

WATCH: City council pauses snow melt bill as downtown merchants face record costs

City council pauses snow melt bill as downtown merchants face record costs

During Monday's city council meeting, Mayor Bob Monetza signaled his support for taking a step back before moving forward with the charges.

"I would like to postpone action on this," Monetza said. "I don't think the city's share of this has been appropriately assessed for a long time."

The snow melt system, which keeps ice and snow off downtown sidewalks and roads, was installed in 2009. Many shop owners are still paying on the original installation. Under the current cost-sharing structure, business owners pay 75% of operating and maintenance costs while the city covers the remaining 25%.

This year's bill was the most expensive on record, coming in at $152,022.58. Under the breakdown, shop owners would pay $114,016.94 and the city would pay $38,005.65.

Thomas Tebeau, owner of Hostetter's News Agency, said the financial pressure has become hard to ignore.

"I think they're finally realizing that the snow melt system is becoming a burden," Tebeau said.

While Sharon Behm, owner of Borr's Shoes and Accessories, said the weight of those costs falls squarely on the merchants.

"The burden of paying for the snow melt system is pretty much on the merchants downtown," Behm said.

The system was originally heated by the old Sims plant, but when that facility went offline in 2020, the city began generating heat using boilers near the former site on Harbor Island. That change more than doubled the cost to operate the system.

"Yeah, the snow melt system is just flat out expensive," Tebeau said.

The amount each building owner pays depends on how much square footage of storefront they have along Washington Avenue. Tebeau said his highest bill was $950, and he considers himself among the more fortunate property owners.

"There are people with twice, three times the length that I have — tripling [their] bill, or quadruple" Tebeau said.

The idea behind the snow melt system was that dry, walkable sidewalks would draw people downtown during the winter months and boost sales for local businesses. Behm said the system does bring people in, but the financial return is not always what merchants had hoped for.

"The thought was it was going to be a register ringer. It does ring the register, but what it really does is it brings awareness to our downtown year round," Behm said.

At Monday's meeting, Mayor Monetza suggested restructuring how much the city pays or capping the cost charged to property owners. Both Tebeau and Behm said they are grateful their city leaders are taking notice and working toward a solution.

"I am really appreciative for them even considering something like that," Behm said.

City council will discuss the issue at their next meeting which is scheduled Monday, Jun. 1.

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