Belding mayor in middle of mall dispute

Walk through the doors to Belding's Covered Village Mall, and you get a picture of what the economy's done to towns, both big and small.

"If you walk through here, it's empty with the exception of a few places." says Keith Swanson, as he works out in one of the few remaining businesses in the mall.

But just as frustrating is the apparent lack of oversight of the mall's financial stability, which has led to a police investigation.

It all came to light in February. Business owners found out the mall was in financial trouble.

"We're still trying to figure out what happened," says John McGowan, who took over as the mall association's president earlier this year.

Think of the mall as a condominium. The space housing individual stores is owned by the business owners. They pay for their own utility and upkeep.

But they also pay into special funds to support mall utility costs and maintenance, based on the amount of space they occupy.

The mall association oversees management of the mall, and those funds.

But store owners found the utility bills weren't being paid. And the mall's maintenance funds were being drained to cover other expenses.

"Consumers (Energy) was knocking on the door, threatening to shut off the utilities" says McGowan.

Sixteen out of 24 store owners weren't paying their bills, adding up to about $140,000 in debt.

All but two have since paid up. Current association leaders say owners of the Ace Hardware store owe about $90,000. And the owner of the now-closed hair and tanning salon, Mindy Husted, wife of Belding Mayor Shane Husted, owns about $30,000.

Both the hardware owner and Mindy Husted left the board earlier this year.

There's no missing money. It's more a matter of businesses not paying their bills.

"We weren't sure if that was illegal or improper, so we turned it over to police," says McGowan.

And since the case involves the mayor's wife, Belding police turned the investigation over to the State police at the Ionia post.

Separately, 24 Hour News 8 learned the Husteds owe more than $4,000 for last year's city tax bill. Mayor Husted declined an on-camera interview, but says he and his wife are in negotiations to sell the mall space, and that the tax bill will be settled when the business is sold.

Husted says he has heard the rumors and read the blogs.

He was recently just let go from his job as a loan officer at First Bank in Ionia. A few weeks ago he told 24 Hour News 8 it was a personnel matter.

On Monday he told 24 Hour News 8 he can't help but think the rumors had something to do with the bank letting him go.

As for his political career, the part-time mayor says don't expect any changes at city hall.

"I see absolutely no reason to resign," said Husted.

In the meantime, at least one business owner says he is holding on as best he can.

"I'm looking to move my business, if at all possible," says ATA Martial Arts owner Keith Swanson. "But, again, I'm trapped because I purchased this building and I can't sell it. Nobody wants to be in the mall. "

24 Hour News 8 will let you know when State police finish their investigation.