Alice Pickering
Wyoming Area Reporter

Wyoming City Council on June 6 voted to support a refinance of Family Pathways. The proposal was first brought to the council May 2.

The public hearing about the refinancing request was held before other business was conducted. Discussion lasted about 30 minutes before the vote was taken.

City resident Gary Menne opposed the request for reasons that included aesthetics, no tax contributions to the city coffers and unfair business competition. In addition, he was concerned the organization did not show a balance sheet.

Steve Fenlon, manager of MHC, an organization that specializes in financing for non-profit tax-exempt organizations reminded the council that 100 percent of the profits from the Family Pathways thrift stores fund a variety of programs for those who cannot provide for services for themselves.

The goal is to improve the education and training of employees, who are developmentally challenged.

The programs are committed to those they exist to serve, he said. He stressed there is no cost or financial risk to the city. From a financial viewpoint, banks evaluate the credit risk and find it acceptable.

In addition, financial statements are audited annually and are a matter of public record, as are salaries of officers.

Steve Martin, director of Family Pathways, told the council there are seven thrift stores, the profits from which fund programs for seniors, youth and food shelves. Store profits account for between 70-75 percent of the funding for all programs; the balance coming from individual gifts.

Of the 300 cars that visit the store daily, about 75 to 100 bring donations. Martin believes that some of these cars also stop at at least one other business in the city.

With the refinance, the interest on the mortgages of three facilities will be reduced, resulting in about a 2.5 percent savings on the loans. This will free up about $7000 a month which can be used for programs.

Councilman Joe Zerwas was opposed, saying the organization was not doing all it promised to do. He accompanied someone to one of the stores and felt the individual was treated less than cordially when making a request.

Martin acknowledged there are occasional incidents of misunderstanding, but on the whole, customers are treated with courtesy. There are procedures for referral for other services.

CM Ted Phillips said there is a need in every community that these facilities serve and the city would not be on the hook for the money. He was in support of the request. CM Tom LaBarre agreed the thrift store is a plus for the city.

CM Blake Tiedeman said the non-profits provide a valuable service, making up for increasing gaps in federal and state programs. Mayor Sheldon Anderson wanted a discussion tied to possible payment in lieu of taxes to the city for approval.

The concern about taking this back to the Family Pathways board of directors was the timing of the discussion, since documents for the refinance are nearly ready to be signed. In addition, the savings realized by the refinance could be eaten up by alternative payments.

Phillips made the motion to support the refinance, but did not want to amend it to include discussion of payments in lieu of taxes as a condition of city support.

Most agreed that some general cosmetic improvements could be made at the Wyoming Family Pathways store.

Approval came on a 3-2 vote and is contingent upon the Wyoming Family Pathways operation conforming to the city sign ordinance and screening of dumpsters in the back of the building.

Opposition came from Anderson and Zerwas.

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Forest Lake Times
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