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BUCHANAN — Buchanan City Commissioners tackled a number of subjects at their meeting Monday.

They approved a new labor contract with city workers and a new special assessment for the Southwestern Michigan Community Ambulance as well as expanded the city’s downtown social district.

The city commission first approved a social district for the downtown area more than three years ago in May, 2021. A state law passed in 2020 at the height of the pandemic allowed for the creation of social districts as part of an effort to support restaurants by allowing people to consume alcohol off premises in shared common areas.

     Community Development Director Rich Murphy said the expanded district approved by the commission Monday with Commissioner Patrick Swem abstaining now includes the former Moose Lodge at Red Bud Trail and Front Street and more properties on Days Avenue and Main Street. Swem abstained because he has a business interest in the Livery project which is now in the social district.

     The expanded social district was welcomed by LiveBuchanan co-chair Randy Hendrixson and McCullom Livery partner Michael Reed. Hendrixson called the social district expansion “incredibly important” to entice new businesses to the city and offer more opportunities to existing businesses.

Reed and his partners are developing the former Livery property into a boutique hotel on Days Avenue set to open next summer. The property previously was outside of the social district boundaries. He said they are down to the last steps needed to get a liquor redevelopment license and being part of the expanded social district will help them move forward.

The commission earlier this summer approved a 12 year obsolete property rehabilitation tax break on the $3.5 million budget and developers are getting a $1.2 million state grant. The boutique hotel is expected to create 20 long term jobs as well as many as 50 short term construction jobs.

     Murphy noted that expanding the social district will allow the city attract more development. “A lot has changed since 2021 when we first created it,” he said. “We haven’t used this tool as much as we could but now we have the energy from new businesses and investments. I look at this as an economic development tool to bring jobs and investments that will increase our tax base and hopefully lower people’s taxes.”

     “It’s critical for us to grow the district and get liquor licenses in the hands of investors,” he added. “This is incentivizing and anticipating future investment. Our competitors are using tools like this and we have to put it in our tool box … We want to set developers up for success.”

Other commission action Monday included approving the SMCAS assessment roll. Commissioners voted two weeks ago to set the per parcel assessment rate at $25 annually for the next 5 years with the rest of the money the city owes to SMCAS coming out of the general fund. The $25 annual rate is less than the proposed $40 per parcel rate initially suggested.

     Commissioners approved a new three year contract with the union representing DPW workers. City Manager Tim Lynch said the 14 DPW workers will get a 3.5 percent raise this year and three percent raises each of the next two years. The contract is retroactive to July 1. Newer employees will get the chance to move up the pay scale faster and the lowest level on the pay scale has been eliminated.

     Commissioners took one item off their long term capital equipment wish list as they approved the purchase of a new street sweeper for $314,155. Swem said the commission has been talking about replacing the city’s 2007 sweeper for a couple of years and set it as a priority at their March goal setting session.

     Money for the purchase will be taken from the city’s general, streets and water-sewer funds.

     Commissioners also heard updates from Lynch on ongoing projects. He said the bid for a new retaining wall on East Front Street should be awarded at the commission’s Oct. 28 meeting and that work should be done by the end of the year. The sidewalk is currently blocked along that section. It is expected to cost $350,000.

     Lynch said design work is done to repair the Days Avenue sink hole and that the bid for the project should be awarded at the commission’s Nov. 12 meeting. He said construction will start as soon as possible and be done by next spring. It is expected to cost $1.1 million.