2/8/2007 by Paul Lundgren

David Ross was a political unknown in 2002. By April of 2003, he was mayor of the second-largest city in the region, winning all of Superior’s 10 precincts to unseat incumbent Sharon Kotter.

Since then, he’s cut roughly $3.5 million from Superior’s structural budget, captured millions of dollars in new revenue and begun to change the very image of his city. On paper, his record looks good.

In his bid for re-election, Ross faces three opponents who emphasize one issue above all others: The demolition of the Palace Theater.

Ross stands behind his decision — backed unanimously in April 2006 by the city council — to tear down the historic movie house. Still, he knows it’s an issue that will dog him, though he believes his detractors represent a minority.

“I don’t believe I’m going to be judged for my four years of leadership simply over the Palace Theater,” he said. “I think my opponents are going to try to make this topic No. 1, but I think this race has to be over the broad issues as well. I’m hearing from the community that they’re tired of this issue...I think they honestly believe I did everything I could.”

City budget

Ross would rather keep the focus on his accomplishments with Superior’s finances. At his Jan. 9 State of the City address, he made no mention of the Palace, except an off-the-cuff response to a tongue-in-cheek reference earlier in the evening by Alderman Ed Anderson about the mayor potentially going to jail over the issue.

Jean Vito, Superior’s finance director, said the mayor has good reason to keep the focus on budget matters. In tough times, he came through.

“I think Mayor Ross came into his term at a time, budget-wise, that (has been) the most difficult that I have seen in the 14 years that I’ve been here,” she said. “Budgets weren’t as challenging in the early ’90s.”

Vito said shared revenue from the state flattened, causing million-dollar gaps between revenues and expenses. Ross took steps to remedy that situation each year.

“He really provided solid direction on where he wanted to see the budget go,” she said. “He didn’t want to simply increase our tax levy … so he had to bring forward a budget that had some cuts in it that weren’t put on the table before.”

To balance the budget, Ross cut more than 20 jobs and reduced millions in structural costs to the city. He also cut money for nonprofits.

“He knew he had difficult decisions to make, but he had the best interest of the taxpayers in mind,” Vito said.

She said Ross has held the line on city spending during his four-year term. In his annual address, the mayor pegged that budget growth at an average 1.75 percent each year.

He’s also found additional revenue by maximizing returns on city-owned assets. For example:

• Since Ross negotiated a long-term private management contract to operate the city-owned Nemadji Golf Course, chronic annual operating deficits have given way to a $160,000 payment to the city in 2006. That money is available to reduce city debt on the course and to fund future capital improvements.

• A 2006 contract with the Western Lake Superior Sanitary District will bring in $12 million over five years for disposal of Duluth garbage at Superior’s Moccasin Mike Road Landfill.

• Recapturing taxes collected from oil company terminals by the state will bring millions of dollars to Superior. Ross and city officials worked with State Sen. Robert Jauch, D-Poplar, in convincing Democratic

Gov. James Doyle to end the state’s 30-year practice of collecting and keeping the money. (Four previous mayors also pushed for this change, but were denied by both Democratic and Republican governors.) Superior received $652,100 in 2006 and will receive larger amounts in the future. Ross plans to use the money for economic development and to reduce city debt.

• A new contract with Sailboats, Inc., operators of Barker’s Island Marina, and the addition of a new storage building on the marina, added another $100,000 in annual revenue to the city.

“We’ve gone after revenue sources that offset us having to raise fees, borrow more money or raise taxes,” Ross said. “Some of it’s been controversial. Duluth garbage coming to Superior was not something that was met with joy by all, but it’s a multi-million-dollar contract that will obviously benefit the city of Duluth, but it’s also going to benefit the city of Superior.”

Another controversial issue is the potential development of Clough Island, also known as Whiteside Island. Plans to turn the privately owned island into a golf course and resort have been debated for five years. It had been touted as a $330-million project — the largest real estate development in Superior’s history. Ross supports it; environmentalists, and Duluth Mayor Herb Bergson, oppose it.

A former Superior mayor himself, Bergson has worked closely with Ross, despite their political differences, creating the closest bond ever between the two cities.

“He’s a very good cheerleader for Superior,” Bergson said of Ross. “He gets excited about what’s going on. He’s a conservative and I’m a Democrat, so we have different viewpoints on social issues, but I think we’ve worked well together … When there’s something of significance to the region, we don’t look at geographic boundaries, we look at the benefit to the region as a whole.”

Jobs and economic development

In his 2007 State of the City address, Ross pledged “a more ambitious approach to economic development,” promising to aggressively initiate potential new projects for the city, improve relationships with investor groups and streamline project management.

As an example of past efforts, he touted A&L Properties’ $5 million conversion of the former City/County Complex on Hammond Avenue in 2005 into commercial-retail space. “Over 70 new jobs have been created in that redevelopment alone,” he said.

The bulk of those jobs are with Enbridge Energy Partners, which roughly tripled its workforce in Superior as it began the first of three major projects that will expand its pipeline capacity between Western Canada, Chicago and downstate Illinois.

Ross also pointed to other economic success stories in Superior. Among them:

• A $36 million expansion underway at CLM Corp.’s waterfront lime plant, adding tax base and potentially creating five jobs. The company is privately financing project costs.

• The 2004 development of the Blaine Business & Technology Center, an adaptive reuse of the former Blaine Elementary School on Belknap Street.

• The opening of a branch of Edina-based Financial Recovery Services at 1230 Tower Ave. Ross said the firm employs 59 there and expects to add another 40 jobs.

• The expansion of Charter Films, a manufacturer of plastic films, at 1901 Winter St.

• New jobs created by businesses on Connor’s Point, such as Field Logic, a manufacturer of archery supplies, and Genesis Equipment & Manufacturing, which builds attachments for the demolition, scrap processing and reconstruction industries.

The Palace

As part of Ross’ mission to encourage growth in Superior’s downtown, three buildings were torn down last fall. One of them was the historic Palace Theater, a vaudeville and single-screen movie house designed by George Rapp in the French Renaissance style.

The Palace opened in 1917 and was remodeled in 1953. It closed in 1982 and sat empty for much of the next 20 years. The city took ownership in 2002 and began searching for a developer.

“It fell on my plate in 2003 when I took office,” Ross said. “We went through a very long process of trying to find a developer. (The city council) decided to order the demolition of the building by a 10-0 vote in April of 2006.”

When asked to delay the demolition, Ross appointed a 17-member task

force to make one more effort to save the building. “That didn’t work,” he said. “They were unable to find a qualified investor. So, we decided to tear the building down.”

One potential developer did emerge, but when questioned by the mayor and city councilors about his plans, he withdrew his proposal, suggesting the council had made up its mind to deny his offer.

Thomas Miscoe, president of LaCrosse Theaters, proposed a $390,000 renovation of the theater with plans to create a second-run movie house and restaurant. Ross said when the city asked Miscoe for financial records, he never provided them.

“He just said he was going to go out and borrow $400,000,” Ross said. “We needed to know what his financials were in order to know if he was capable of carrying out a project like that — especially if the city partnered with him and became liable for the outcome.”

LaCrosse Theaters owns the two-screen Rivoli Theater in LaCrosse, which Miscoe said was built around 1922. He said it’s the only theater his corporation operates, noting he has plans to build a new theater in Madison to replace the University Square Theatre, which was sold and torn down in 2006.

Miscoe said LaCrosse Theaters has been in business since 1916 and has owned the Rivoli since 1994. He declined to disclose its ownership structure.

“The first party we called when we were first made aware of the possible renovation of the Palace was the mayor,” Miscoe said. “He never gave us the courtesy of a return phone call. It was a real tragedy for your community, because you had a real jewel. All you had to do was fix it up a little bit.”

Carol Reasbeck, a mayoral candidate and former city councilor, said the theater would have been a great destination for college students and should have been an anchor for redeveloping the area.

“There’s a fine line between a blighted neighborhood and a quaint neighborhood,” she said. “It’ll never be the same no matter what they put there.”

Before the wrecking ball hit the Palace, the city was challenged in circuit court by Friends of Superior, Inc., a group trying to save the building. The city prevailed in court, and dismantling resumed.

When word reached Ross that Friends of Superior was seeking an injunction from a federal court, Ross advanced the demolition date by two days to avoid another delay.

“I read about cities all over the country that get all excited about a project and they get all kinds of people behind it, public funds are committed to it, then it fails and they blame the politician for starting the project,” he said. “I am not going to be part of a project that’s not going to pay for itself and (ends up becoming) a liability to the taxpayers of Superior.”

Bergson said he backs Ross’ decision, but it was still a “shame” to see the Palace come down.

“I think it was salvageable back in the late ’80s, early ’90s,” he said. “But after 15 years of no heat in the winter, and pigeons and rain getting in, I can’t imagine there was any way to save it, unfortunately.”

Cleaning up

A few weeks after the Palace was demolished, two buildings across the street also met the wrecking ball. Odyssey’s nightclub and the End Zone sports bar were both purchased by the city to make room for potential development.

“When Odyssey’s was operating it was a very troublesome bar,” Ross said. “We had well over a hundred police calls a year going into that building. We took the license away from that owner.”

Ross said the End Zone went out of business on its own. The city paid $376,900 for the two buildings. Demolition costs have not yet been calculated.

The city also has taken the license of Club Risk; that building remains empty.

“Those were great first steps because now our North End Business District is a respectable place, Ross said. “I think there was a misinterpretation of me when I got into office that I was anti-drinking and just wanted to close bars. That’s not true at all.”

The future

Ross said the real issue people are talking about in Superior is not the Palace, but the poor condition of the city’s sidewalks.

“It’s taken me four years, but this year we’re going to spend more money on sidewalks than we have in the history of Superior,” he said.

“We’re going to spend over $1 million on sidewalks, with the help of Congressman (David) Obey. He’s getting us a half million; we’re adding another half million through other sources in our budget.”

No longer a political unknown, Ross, who turns 55 in March, has a record to defend this spring, and he’s eager to do it. If that record propels him to victory, he said he’s not sure how long he’ll pursue the office.

“Right now, I don’t see myself being a career mayor,” he said. “I’m very critical of career politicians. I deal with them all the time. …

The longer politicians are in office, the more they tend to assimilate the status quo. … I think my job is to come in and challenge how we do everything. If I don’t continue to do that, then I’m not doing my job as a mayor.”

The challengers

Mayor David Ross faces three challengers in Superior’s Feb. 20 primary election. The top two candidates move on to the April 3 general election.

Gilbert Davidson, 64, is a mechanic for the city’s Public Works Department and president of its union, AFSCME Local 244. He wants to “build Superior, not tear it down,” a direct reference to the city’s decision to demolish the Palace Theater.

“I think the developer that came forward should have been given a chance,” he said, referring to Thomas Miscoe, who had sought to take over the theater. “I didn’t see any hurry in tearing it down. It wasn’t a danger to anyone. (Miscoe) was willing to give it a shot. Why not see if he could do something with it? All we’ve got now is an empty spot downtown.”

Davidson believes decisions like demolishing the Palace should be brought to voters. He also said the city needs to look outside and actively recruit businesses that will provide jobs. “You have to look outside the area,” he said. “That’s where employers are going to come from.”

Mike Herrick, 48, works in the produce department at Super One Foods in Superior. He’s concerned about the amount of money the city has spent tearing down buildings.

“It wasn’t just the Palace,” he said. “There’s concern in this community about tearing down historic buildings.”

Herrick also wants to make sure youth programs are properly funded and businesses continue to grow. “I’d really like to be a go-getter with companies looking to expand,” he said. “I’d like to meet with them, find out how they’re growing, and how we can get them here. This is a great city. There’s a good quality of life here, but we need more good paying jobs.”

Carol Reasbeck, 62, is an Omninutrition International distributor and owner of Crystal Properties. She served on the Superior City Council from 2001 to 2005 and on the school board in the late1980s and early ’90s.

Reasbeck also sites the demolition of the Palace as a key reason she’s in the mayor’s race. “I think there’s prejudice against the North End (Superior’s downtown) and against old buildings. (The administration) believes old buildings are better off torn down. I believe the opposite. I believe you start with what you have,” she said.

As for the city’s economy, she said it’s time to move out of the industrial age. “We’ll always be a working port, but it’s time to move into the technology age,” she said. “We need to connect better with entrepreneurs. I think there’s a lack of leadership and forethought right now.”

The debates

Wednesday, Feb. 7 | 6 p.m.

Superior Public Library

(Sponsored by the Superior Federation of Labor)

Sunday, Feb. 11 | 7 p.m.

Superior Access TV, Charter Communications cable channel 7 in Superior and 14 in Duluth.

Tuesday, Feb. 13 | 7:15 a.m.

Barker’s Island Inn and Conference Center

(Sponsored by Superior-Douglas County Chamber of Commerce)

Tuesday, Feb. 13 | 6 p.m.

Wisconsin Public Radio, 91.3 FM KUWS

• Investment in colleges, universities totals $270 miliion since 2000 -8/25/2010
• Despite recession, Range Readiness Initiative continues -8/17/2010
• Wide Open Future -8/10/2010
• Highway design change sends customers elsewhere -8/3/2010
• Visitors make Bayfield a business destination -7/27/2010