Lansing State Journal from Lansing, Michigan • Page 6

6A Thursday, May 22, 2003 Lansing State Journal www.lsj.com Homeless: Other aid groups may take over Red Cross programs Gas: Bills intended to curtail predatory pricing, gouging I -VY'nrixri T-T-v Li ns-w I LX "A lot of times, we went by for weeks and made no money." Ateeq Alhumaidi former Shell service station owner from 14,615 in 2000. And the VOA shelter is filled over its 75-bed capacity more than half the year. The Red Cross is a last resort for many homeless who've exhausted their stay at area shelters or can't stay for medical reasons. The Lansing Police Department referred about 500 cases there in the last year, mostly crime victims or people living in potentially dangerous situations. And VOA refers people to the Red Cross nearly every day, Patterson said.

year's budget, is working with the city of Lansing and area aid agencies to find someone to take over the programs, officials said Wednesday. Whoever does will get federal money that now goes to the programs. The key now is to make sure the services continue until someone else can take them over, Lansing Mayor Tony Benavides said. "We need time to negotiate and make sure the transition goes smoothly," he said. Benavides, who said he learned about the cuts this week, wants the Red Cross to continue helping the homeless find permanent housing until at least Sept.

30. "At least at that time we should be able to find a new agency that will be willing to take on the program," he said. Next step On the Web I American Red Cross, mid-Michigan chapter, chapters, redcross.org mimid for the first month. Between 350 and 500 cases a year go through that program. It costs about $700,000 a year, $480,000 of which comes from a federal grant Eliminating the programs will save the Red Cross $114,000 in the administrative costs it takes to run them expenses that will be picked up by any agency that decides to take on the program.

"I'm sure at some point there will be another agency that's able to do this," said Chuck Calati, director of community programs for the local Salvation Army. Cauley said the cuts are painful for the Red Cross, which also is laying off nine employees beginning June 30. In January, to help ease a $205,000 deficit in the current budget, the organization eliminated five part-time jobs and one full-time job, and reduced a full-time job to part time. Program cuts won't affect disaster services, such as finding shelter for victims of fire. "We are greatly distressed that we are in a financial position that we can't make sure these services continue," Cauley said.

Contact Sharon Terlep at 377-1066 or sterleplsj.com. Continued From 1A incentive is there to keep prices low?" Ateeq Alhumaidi of Lansing found that out the hard way. Six months after buying two Shell stations in Lansing, he went out of business in March. "A lot of times, we went by for weeks and made no money," he said. Randy Markham said he has been losing so much money he might have to close one of his three Lansing-area stations.

The Okemos man said he suffered a six-figure loss at one station last year and the losses continue. "The public is winning in terms of the price war, but as the small guys leave the prices of gas will go up because of less competition," he said. On Wednesday, Markham charged $1.51 for unleaded gas at his Amoco and two Sunoco stations. That's 4 cents above the $1.47 wholesale cost but below the profitable price of $1.57. Markham said he has to charge $1.51 to stay close to his competitors but if his gas cost $1.57, customers could go elsewhere.

"If we don't stay competitive, we lose our customers," he said. "If we stay competitive, we station in Michigan lost about $7,000 in 2001-02. In Adrian, Hoff said she lost $2,000 a day during the first two weeks of April. Similar legislation has found opposition in other states. Hawaii lawmakers passed a bill last year capping the price of gasoline but it has yet to go into effect.

Matthew Brown, energy program director for the National Conference of State Legislatures, is conducting a study on the feasibility of the law before it is implemented. Bill Lett of Lansing said he supports the legislation. "As far as I'm concerned there's a place for the independent station owner." Lett said while getting gas at All Auto Service on South Pennsylvania Avenue Wednesday. Betty Goodrich, independent owner of the All Auto Service Amoco station, said she opposes the bill. "I hate to see the government tell us one more thing we have to do," Goodrich said.

"What's next, spark plugs? I could be wrong about this law, but I'm not totally convinced that this is the answer to all of this." Contact James McCurtis Jr. at 377-1046 or jmccurtislsj.com. Contact Stacey Range at 377-1157 or srangelsj.com. Time of need lose our shirts." Stiff competition That's what happened in Adrian, about 78 miles south of Lansing. The city of about 22,000 had seven independent stations before Wal-Mart began selling gasoline there in 2000, Griffin said.

Wal-Mart opened its pumps and started selling below wholesale. Within six months, four independents shut their doors and another closed this year after realizing it couldn't compete, said Melodee Hoff, co-owner of one of Adrian's two existing independent stations. None of the three industry groups track how many independent stations closed in Michigan, but Griffin said other places including Grand Rapids, have had similar situations. Several stations statewide have seen profits dip in the past year. A survey by the Michigan Association of Convenience Stores found the average gas Several agencies have shown interest in taking over some of the services offered through the Red Cross programs, said John Cauley, the chapter's executive director.

"Our main effort right now is to try to salvage these programs," he said. The emergency housing program costs about $325,000 a year to run, most of which comes from donations and the state Family Independent Agency. That program handled 2,557 cases last year. Each case on average involves 2.5 people, and repeat services are rare because people can use the program only once every six months. The long-term housing program gives homeless counseling, financial advice and other aid in an effort to help secure a permanent home.

It also sometimes offers money for rent security deposits The cuts caused by a dip in donations in a down economy come at a time of growing need among the region's most vulnerable. The Lansing area, like many U.S. cities, is in an affordable housing crisis, say many who serve low-income people in the region. People are staying longer at homeless shelters, which have to turn away even more. Overnight stays at the downtown City Rescue Mission increased 45 percent to 21,255 in 2001 Official Entry Form the Full Carlo that is! Transfer Home K3s to Videos Loop: Downtown commuters facing closures for 2 years Enter today to win a 2003 Monte Carlo SS from Shaheen Chevrolet and tons of other weekly prizes! Name HEVRQLET MICHIGAN ti Address Lansing State Journal city, state, zip riEEEADDlWHAL" Phone www.lsj.com VHS COPY E-mail The city is in the middle of a 30-year project to separate its storm and sanitary sewer system.

Kilpatrick said it makes sense to do the downtown work at the same time the state is reconstructing the roads. "It just doesn't make sense to put this kind of money in to the roads and then rip them up in 10 or 15 years," he said. Contact Chris Andrews at 377-1054 or candrewslsj.com. WITH THIS COUPON 1 1 Return official entry forms to the Lansing State Journal, Shaheen sJ Chevrolet, NCG Cinema Eastwood or Texas Roadhouse only. Contest 517-316-9100 With Transfer Order I pioDtReisoa I 6030 S.

Pennsylvania at Miller, Lansing 8 272-0027 ff juf enas i-rraay, June i-or orriciai rules, log on to no purchase necessary. ft Here's a good reason TO GET TO KNOW US: rj i it I Continued From 1A The 2004 work will include Ottawa Street, Walnut Street and Michigan and Capitol avenues. Allegan Street, Pine Street, Grand Avenue and a portion of Michigan Avenue closer to the Capitol will be under construction in 2005. MDOT officials say the streets will be closed for the entire construction season except for Michigan, where one lane will stay open in each direction. The project is the most ambitious since the Interstate 496 construction project in 2001.

Planners are announcing the project nearly a year in advance to give residents, commuters and businesses a chance to prepare. "We went through the 1-496 closure without a hitch," Leanne Stites, executive director of the Principal Shopping District "We're hoping we can do the same." Loop established in 1986 The Capitol Loop was established in 1986 as part of a broader partnership between the state and the city to revitalize the downtown area. The goal was to establish an atmosphere that helps attract visitors and residents to the area. The latest project also is designed to enhance the area, including decorative sidewalks and lighting as well as new trees. Melanie Zaremba, manager of the Nuthouse Sports Grill, said the project might direct business away from downtown during construction, but the enhancements should be an asset.

"It's short-term pain for long-term gain," she said. City, state and business leaders will be working to minimize the inconvenience. The 1-496 project created an obstacle to commuters trying to get downtown. Commuter challenges With the Capitol Loop project, commuters will be able to get near downtown but will face challenges parking or getting access to specific areas. "On a regional scale, it's proba- bly less significant, but on a property by property scale, it's probably more significant," said Andy Kilpatrick, assistant traffic manager for the city of Lansing.

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