There’s a Nasty Rumor in Town and it’s time to confirm it or kill it!  ….by Jeff Ragan.

 For the past four weeks a flyer has been circulating around city hall and local diners claiming that there is much more to the story about our previous city manager, Tom Hutka, resigning than has previously been reported – click here to view the flyer.  The flyer has generated a great deal of discussion, and while local radio stations and the Port Huron Times Herald have had copies in their possession, neither has found the story suitable for publication.  Certain parts of the story seem factual.  Tom Hutka resigned last spring.  JoAnn Wine purchased his home, at 3105 East Woodland , for $308,000, and then upon his vacating the home in January, 2007, the home was listed for sale at a price of $276,500.  This is public record and seems irrefutable.  Much of the rest is just speculation.  I will be sending a copy of the flyer and this letter to the federal agency that investigates municipal malfeasance.  In the meantime, it would be appropriate to hear the denials or explanations from the people and organizations that are mentioned in the flyer, and who have been implicated in the associated gossip.  I will be sending the following questions to each of the respective parties or spokespeople and look for their answers to be posted on this site.

 First, to Jo Ann Wine.  Did you purchase Tom Hutka’s home?  Did you pay fair market value?  During the time that Mr. Hutka occupied the property, after the sale in June, 2006, did he pay fair market rent?  Why would you take a $31,500 loss, plus holding costs and selling costs?  Is this loss tax deductible?  Was this your money?  If not, why would you stand in for someone else?  Assuming that profit on the sale of the property was not your motive, what was?  Did you benefit in other ways, and if so, how?  The SEV when you bought the home was $118,900, what is it now?  Does this home qualify for the Principle Residence Tax Exemption?  Who pays the property taxes? It is rumored that Tom Hutka told his neighbors that you purchased the home but that Acheson  or Acheson Ventures put up the money.  Other rumors say the money came from Citizens First Bank.  Is there merit to either of these rumors?  Is this the kind of transaction that you would do again?

 Second, to Jim Acheson or Doug Austin or Paul Maxwell of Acheson Ventures.  Did Acheson or Acheson Ventures fund this transaction?  If so, why did you involve Jo Ann Wine?  If so, is this a violation of the Sarbanes Oxley legislation? Or, of laws regulating foundations?   If involved, why?  Your open, upfront and pristine reputation would suggest  that if you opposed Mr. Hutka, that you would make your opinions known and would effectively and openly lobby for his removal.  This is your opportunity to completely dispel any connection to the rumor implied by the flyer.

 Third, to Marsh Campbell of Citizens First Bank – same questions that were posed to Acheson Ventures, except that you are not a foundation, but are a bank.  If you put up the money, was it a normal mortgage, or business loan?  Would the rules regulating banks have been violated, had you been involved?

 Fourth, Mr. Tom Hutka.  Did Jo Ann Wine pay fair market value for your home?  Did you pay fair market rent, after the closing until date of vacating?  Were you given any other benefits, for rendering your resignation?  If it was fair market value, then the profit on the sale of your home would be considered a capital gain on your personal residence and would be tax exempt.  If you received a value greater than fair market value, then that excess would be taxed at normal Federal Income Tax rates, and be subject to Social Security, Medicare, Michigan and Port Huron Income Tax.  Which was it?  Is this how you filed?  According to the Port Huron Times Herald, last spring, there were not enough votes on the council to remove you?  What was the real reason you resigned?  Who was maneuvering your removal?  Did you tell neighbors that it was Acheson money that fronted Jo Ann Wine’s purchase?  What was the reason Jo Ann Wine gave you for purchasing the home?  In your opinion, did this transaction seem legitimate and above board?  Do you have any regrets, as to how it was handled?

 Fifth, for Mayor Allen Cutcher and Councilman Mark Neal.  Your opposition to City Manager Hutka was well known.  Did you conspire with Jo Ann Wine, Acheson Ventures and Citizens First Bank to replace Mr. Hutka with Mr. Tomion?  Did you participate by arranging or communicating between the parties mentioned in the flyer?  Did Mr. Tomion know that a financial offer was being made to Mr. Hutka, that would likely result in his resignation?  Assuming that you knew of the real estate transaction, would you consider it ethical and or legal?  Assuming that your city assessor had properly valued the city manager’s home at a SEV of $118,000, indicating a market value of  $237,800, do you feel a sale price of $308,000 is fair market value?  It would seem plausible that you were aware of the events surrounding the change of the city manager – in order to remove any appearance of dirty and back room politics, could you provide an accurate account of what really happened?

 Sixth, for City Manager Tomion.  It was reported that you were retiring from the city manager’s position in Midland and would most likely be leaving the State.  Who contacted you in regards to your interest in the City Manager’s job in Port Huron , and when?  Were you told in advance of Mr. Hutka’s resignation, that it was coming?  Did you know of the real estate transaction?  At this time, were you in contact with Acheson Ventures and Citizens First Bank representatives?  Describe the process used in determining who the marketing company will be for the City of Port Huron’s real estate sales.  Who was your real estate agent when you purchased in Port Huron? Were you provided any benefits or gifts from Acheson Ventures or Citizens First Bank?

 I expect that some of the people listed above had absolutely nothing to do with the events surrounding the purchase of Mr. Hutka’s home or his resignation or the hiring of the new manager.  Ugly rumors hurt innocent people.  But there are some people who could clear the air by explaining how this transaction came to be.  They have been aware of the flyer for several weeks and have so far chosen to “keep quiet”, apparently in hopes that it will go away.  By remaining quiet they are allowing innocent reputations to be tarnished. There may be a very reasonable explanation, let’s hear it and kill this nasty rumor!