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City, BLP discuss Tourist Park future
By CHRISTOPHER DIEM, Journal Staff WriterArticle Photos
The future of the dam was discussed at a joint work session meeting of the Marquette City Commission and the Board of Light and Power Monday night.
BLP Executive Director Kirby Juntila said if the dam was reconstructed as it was previously, with no water bypassed for a waterfall, the dam would eventually generate $57,971 in profits over 30 years.
If the dam was built to bypass 20 cubic feet of water per second, maintaining a waterfall, the BLP would lose $744,268 over the first 30-year period. In addition, the BLP would have to reopen its license with the Federal Energy Regulatory Commission, a process that could cost $500,000 to $1 million, Juntila said.
For the $4.8 million reconstruction to remain feasible, the city would have to waive payments in lieu of taxes on the construction of the dam — about $80,000 annually. The city is due PILT money when the BLP makes capital improvements, however most city commissioners agreed that the payments could be waived.
The dam was destroyed during the Dead River flood in May 2003. The flood started at the Silver Lake Basin when a fuse plug — an emergency water-release system installed the previous year — failed on the dam after several days of heavy rainfall. The breach released 8 billion gallons of water into the Dead River and washed away the basin at the city-owned Tourist Park.
“We can produce electricity with forgiveness of the PILT and probably break even or come close to it, if we don’t reopen the license,” said BLP member Craig Stein. “That does mean a dry falls. You’re going to have rocks there.”
The feasibility of the project is also helped by a higher than expected green credit value of 2.2 cents per kilowatt hour for energy produced by the dam.
“As the state and country requires a certain percentage of your generation to be renewable sources, that creates an artificial market and that will drive the cost up,” Juntila said. “Previous programs were voluntary ... since it’s become a mandatory thing costs have been driven up.”
The state has mandated that municipalities have 10 percent of their power come from renewable sources by 2015. The Tourist Park Dam would represent about 1 percent of the BLP’s total generating power.
Juntila and City Manager Judy Akkala will meet over the next week and come up with recommendations for their respective boards. A decision on the dam could come within a month.
The reconstruction of the dam would likely be paid for with a 20-year bond.
In May, the BLP settled a lawsuit over flood damage and received $1.725 million. Juntila said a portion of the settlement money was used for court expenses and dam design.
He said the remaining $900,000 could be used to help rebuild the dam if that were the BLP’s decision.
Similarly, the city received $195,000 from settlement of the flood lawsuit.
Mayor Tom Tourville said that money would likely be used to restore the lakeside recreation areas at Tourist Park.
Director of Parks and Recreation Hugh Leslie said attendance at the Tourist Park held steady since the flood — until this year. Attendance at the park is down 14 percent from last year, he said, citing a number of possible reasons including high gas prices and the state of the economy. The main reason, Leslie said, is many long-term guests are staying at other parks because they prefer a campground with a lake.
“I have not heard one person say they did not want the dam in place,” said Commissioner Johnny DePetro. “I’m sure there is a faction out there that wouldn’t want it but I’m sure there’s a larger faction that wants the dam rebuilt.”
Commissioner John Kivela said that with the possible closure of Presque Isle’s Shiras Pool, a safe recreation area for swimming was important.
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