How a city ordinance could affect jobs, development

LANSING -- A proposal that could affect job creation and the city's relationship with business leaders and labor unions could be up Monday for a controversial vote.

The proposed "transparency in bidding ordinance" is scheduled to be revisited Monday night at City Hall before the eight-member City Council. Election year politics are expected to be a factor in the voting process because four council members have expiring terms this year, including one that's contemplating a run for mayor.

Council President Patricia Spitzley, who' s not up for reelection this year, would like council to vote Monday so there can be some closure. She appreciates the ordinance's intent to offer more local job opportunities, but can't support it in its current form.

"Some of the language in the ordinance can be interpreted in a lot of ways, and that’s scary," Spitzley said. "And that turns off a lot of people."

The proposed bidding ordinance would require developers who receive incentives for projects -- tax abatements, payment in lieu of taxes, brownfields, etc. -- to publicly disclose the distribution, opening and awarding of bids for construction work and other related services.

Failure to do so would allow the city to "take whatever action legally permissible to revoke any economic incentive pursuant to the development agreement."

The council is expected to review the bidding ordinance in its 5:30 p.m. Monday Committee of the Whole meeting. A final vote could take place at council's 7 p.m. general meeting. Both meetings are open to the public.

“Something is going to happen Monday," Spitzley said. "I’m not a fan of continuing to kick things down the road.”

One possible amendment to the bidding ordinance Spitzley supports is enactment of the ordinance only if regional partners like East Lansing, Delta Township and Lansing Township follow suit with ordinances of their own. It was unclear last week whether all those communities would consider doing so.

The Lansing bidding ordinance has exemptions, and some business leaders question if they are fair. The bidders ordinance wouldn't apply to projects with a private investment under $750,000, bid packages projected to be under $25,000 or industrial projects.

Tim Daman, the Lansing Regional Chamber of Commerce's president and CEO, said in a statement Friday the bidding ordinance is unnecessary and appears to have been drafted for the wrong reasons.

"At a time when Lansing is experiencing economic growth and attracting significant investment," Daman said, "City Council should be focused on sound policy, not politics. Adding burdensome and overreaching regulations that will jeopardize future investment in our region is reckless."

The proposed bidding ordinance applies to projects with incentives from the time the incentives are requested to the project's completion.

Passage of the ordinance wouldn't require developers to hire local contractors. But they would have to post bid openings at City Hall, community centers and other city-owned buildings with the date, time and location for response.

Bids would have to be publicly advertised for at least seven consecutive days. Posting of the bids would also be required on the city of Lansing's website and a local builders exchange website beginning no less than 14 days prior to the bid submission deadline.

Mayor Virg Bernero, expected to run for re-election this year, opposes the bidding ordinance because he's concerned additional regulations could drive economic growth away. He signed an executive order in 2008 that encourages developers and businesses to make their "best efforts" to hire local workers.

That's not good enough for local labor groups.

Glenn Freeman III, the Greater Lansing Labor Council's president, said unions are running two apprenticeship programs a year for plumbers and two for electricians. He emphasized in an interview Friday that the proposed bidding ordinance isn't meant to penalize developers who alredy are hiring local workers.

There appears to be more concern among labor groups about developers from outside the area.

"This wasn't meant for developers doing the right thing now," said Freeman, a Lansing native. “This is for the bad guys because we have them coming into town.”

Kevin Klingler, statewide director of the Michigan Regional Council of Carpenters and Millrights, told the Lansing State Journal in November that the proposed bidding ordinance shines a light on developers and businesses to see how committed they truly are.

“The public would like to know where the money is going, and if the money is staying," Klingler said.

Two advocacy groups, Reform Lansing and No Secret Lansing Deals, also support the bidding ordinance.

They question how transparent Bernero and other city leaders are when they negotiate projects with developers. The No Secret Lansing Deals website stresses vigilance against deals that are decided in "smoke-filled back rooms, without transparency or honesty."

Contact Eric Lacy at (517) 377-1206 or elacy@lsj.com. Follow him on Twitter @EricLacy.