Downtown Development Authority Agenda 04-13-2021

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                                                   CITY OF MUSKEGON

                        DOWNTOWN DEVELOPMENT AUTHORITY ("DDA")

                                                  REGULAR MEETING


                     DATE OF MEETING:                                   Tuesday, April 13, 2021
                     TIME OF MEETING:                                   10:30A.M.
                     PLACE OF MEETING:                                  ZOOM for pmiicipants and Facebook Live/
                                                                        Facebook "City of Muskegon Government"
                                                                        for public



                                                            AGENDA


      I.        Roll Call
      II.       Approval of the regular meeting minutes of Nov. 24, 2020
      III.      Public comment on agenda items
      IV.       Brownfield Redevelopment Authority business
                A. Update (Pete Wills)
      V.        Downtown Development Authority business
                A. DDA financial report (Beth Lewis)
                B. DDA financial proposals (Dave Alexander)
                    1. Future of arena funding
                   2. Muskegon Museum of Art request
                   3. Events post-COVID supp01i
                   4. Street Lighting on Terrace Street
                C. Downtown events update (Ann Meisch)
      VI.       Public participation
      VII.      Adjourn



AMERICAN DISABILITY ACT POLICY FOR ACCESS TO OPEN MEETING OF THE CITY COMMISSION AND ANY OF
                             ITS COMMITTEES OR SUBCOMMITTEES

   The City of Muskegon will provide necessary reasonable auxiliary aids and services, such as signers for the hearing
 impaired and audio tapes of printed materials being considered at the meeting, to individuals with disabilities who want
  to attend the meeting, 24- hour notice to the City of Muskegon. Individuals with disabilities requiring auxiliary aids or
services should contact the City of Muskegon by writing or calling the following: Ann Meisch, City Clerk at 933 Terrace
 Street, Muskegon, MI 49440 or by calling (231) 724-6705 or TTY/TDD: Dial 7-1-1 and request that representative dial
                                                        231-724-6705
                               CITY OF MUSKEGON
                    DOWNTOWN DEVELOPMENT AUTHORITY (DOA)/
                   BROWNFIELD REDEVELOPMENT AUTHORITY (BRA)
                               REGULAR MEETING
                                    MINUTES

                                         November 24, 2020

The meeting was held electronically via Zoom. Chairperson M. Bottomley called the meeting to order
at 10:30 AM and roll was taken.

MEMBERS PRESENT:              M. Bottomley (Muskegon MI), B. Hastings (Muskegon MI), J. Riegler
                              (Muskegon MI), M. Kleaveland (Muskegon MI), D. Pollock (Grand
                              Rapids MI), F. DePung (Muskegon MI), M. Johnson Sr (Norton Shores
                              MI), S. Black (Muskegon MI), J. Moore (Muskegon MI), H. Sytsema
                              (Muskegon MI), D. Kalisz (Ft Myers FL)

MEMBERS ABSENT:               F. Peterson, J. Wallace Jr

STAFF PRESENT:                P. Wills, Director of Strategic Initiatives; J. Eckholm, Economic
                              Development Director; M. Franzak, Planning Director; L. Mikesell,
                              Director of Development Services; D. Alexander, Downtown Manager;
                              B. Lewis, Finance Director; A. Meisch, City Clerk; D. Renkenberger,
                              Administrative Assistant; R. Cummins, Zoom meeting facilitator

OTHERS PRESENT:               M. Bear, 592 W Muskegon Ave (via phone during public call-in period)

APPROVAL OF MINUTES

A motion to approve the regular meeting minutes of October 13, 2020 was made by J. Moore, supported
by M. Kleaveland and unanimously approved.

BROWNFIELD REDEVELOPMENT AUTHORITY BUSINESS

Infill Housing Project (2nd Amendment) - P. Wills explained the request. City staff is seeking BRA
approval to amend the Brownfield Plan to add additional eligible parcels to the City's Infill Housing
Project (2 nd Amendment). The 2 nd Amendment adds an additional 13 parcels beyond the 108 parcels
adopted in the 1st Amendment. The BRA approved the Infill Housing Project (1 st Amendment) on July
14th and the City Commission on July 28 th • The following eligible properties are proposed to be added
in this second amendment: 880 First Street (880 First St LLC development), 216 W. Clay (880 First
St LLC development), 208 W. Clay (880 First St LLC development), 1095 Third Street (former
Catholic Charities prope1iy), 301 W. Muskegon Ave (former Catholic Charities parking lot), 589
McLaughlin (Big Red Developer), 559 McLaughlin (Big Red Developer), 441 Isabella (Big Red
Developer), 438 Isabella (Big Red Developer), 591 Catherine (Big Red Developer), 185 E. Muskegon
Ave (former Farmers Market prope1iies), and 209 E. Walton Ave (former Farmers Market prope1iies).
The address of 435 Isabella had been included originally, but P. Wills stated that that address could be
removed. J. Eckholm discussed developments on the first 3 parcels on the list, and L. Mikesell provided
background on Big Red Development and their parcels.
The plan amendment involved the redevelopment of 119 total parcels, most located in the Nelson and
Jackson Hill Neighborhoods. Some of these lots would be split, creating up to 255 subject parcels. The
plan incorporated three types of redevelopment projects: infill housing on vacant City lots (up to 240
units), the rehab of existing homes (11 detached houses), and two separate mixed-use developments
(former Catholic Charities parcels and 880 First St, LLC projects). Activities included the
redevelopment and rehabilitation of subject parcels, and construction of new commercial and
residential units. The City was marketing these downtown properties with the anticipation that private
developers would acquire the sites and submit plans for productive redevelopment. City staff continued
to market the former Catholic Charities building and attached parking lot at 301 W. Muskegon Ave,
and had also been working with the owners of the former AmeriBank building at 880 First Street to
finalize plans to redevelop that property. Staff worked closely with the developer's project management
team to coordinate extensive testing on the structure, foundation and design of the existing building.
Initial development plans, to be complete in 2022, would include adding five additional stories to the
existing structure to house over 50 rental apartments in the tower building as well as co-working space
for residents who choose to work from their homes. Future phases would include additional apmiments
as well as a 3-4 story parking garage. The City Commission was expected to consider a purchase and
development agreement with the developers which would allow the city to recoup site preparation
expenses through the Brownfield TIF. The prope1iy was purchased by the city in 2015 for $150,000
and spent $350,000 deconstructing it in 2018. The current draft development agreement reflected both
the City and Ferguson Development splitting Brownfield TIF reimbursement for their respective
eligible costs related to the property.

The 2nd Amendment also included the following updates (note that dollar figures are not exact):
• Developer's Reimbursement Costs: Infill Housing - $5,877,00; Mixed-use projects - $1,000,000;
   Total reimbursement costs - $6,877,000
•  Estimated  Total Capital Investment: Infill Housing - $49,000,000; Home rehab - $500,000; Mixed
   Use developments: $26,000,000; Total Estimated Capital Investment - $75,000,000
• The Plan anticipates eligible activities, paid through future capture of tax increments, to include
   $4,880,000 for cost of sale/seller concessions; $1,200,000 for demolition and potential costs of
   abatement; $777,000 to construct public infrastructure at the former farmers market; $20,000 for
   brownfield plan preparation and development; a 15% plan contingency fee of $1,031,550; and
   which reflects total eligible activities to be paid under this plan at $7,908,550.
• The Authority intends to enter into Development & Reimbursement Agreements with future
   prope1iy owners/developers of prope1iies included in the Plan to reimburse them for costs of
   eligible activities.
• The duration of this Plan is not to exceed 30 years and complete recapture of eligible costs through
   tax increment revenue are expected to occur within this period. Estimated completion of all homes
   associated with this Project will be completed by 2023.
•  The   plan contemplates continued five-year capture of tax increments for a local Brownfield
   Revolving Loan Fund ifthere is time left in the 30-year plan after eligible costs are covered.

City staff prepared this Infill Housing Project (2 nd Amendment) Brownfield Plan Amendment and
recommends BRA approval.

M. Bottomley asked if the remaining parcels were vacant lots. L. Mikesell confirmed that was correct.
M. Franzak stated that staff had discovered that one property had been listed twice, so the dollar figures
would be a bit different than originally shown. M. Johnson asked if staff was confident in the
developers' ability to secure financing and complete the projects. M. Franzak stated that he was, and
that several projects had already been started. J. Eckholm stated that the developers of 880 1st St had
already spent a significant sum of money to have environmental testing done, which showed that they
were serious about the project. M. Bottomley asked about the houses being built at 8th & Muskegon
Ave, and if the garages were planned to be in front of or behind the homes. M. Franzak stated that the
alley that ran behind the houses was not usable, so the garages would be in the front; however, the
renderings looked nice, especially with the porches in the front. F. DePung asked if the houses on
Webster would be rental homes. M. Franzak stated that they were all Dusendang homes and some
would be rentals. However, all must be available for sale. M. Kleaveland asked if the rentals were
single- or multi-unit. M. Franzak stated that so far, the developers had preferred single family models,
but staff wanted to see a mixture of single-family to quad-pl exes for different income levels. He stated
that developers had been speaking to neighboring residents, who had indicated that they didn't want
duplexes.

There were no public comments. A motion to approve the resolution for the Brownfield Plan
Amendment for the city's Infill House Project (2 nd Amendment), to request a public hearing before the
Muskegon City Commission, and to have the City Commission consider adoption of the Plan, was
made by M. Kleaveland, supported by M. Johnson and unanimously approved, with M. Bottomley, B.
Hastings, J. Riegler, M. Kleaveland, D. Pollock, F. DePung, M. Johnson Sr, S. Black, J. Moore, H.
Sytsema, and D. Kalisz voting aye.

DOWNTOWN DEVELOPMENT AUTHORITY BUSINESS

DDA Budget - D. Alexander reviewed the budget figures. He stated that there were no tax increment
revenues shown yet; those would be added in the latter half of the fiscal year (July-June). He stated
that he expected about $40,000 in available discretionary funds. B. Lewis stated that the city had done
a bond issue for HVAC and roof improvements to Mercy Health Arena, so the DDA's contribution to
that would be less than originally thought. M. Bottomley asked what the cost difference was. B. Lewis
explained that they just closed on the bonds earlier this month so there was not a specific amount yet,
but it would depend on what the bond payments would be. However, it would be less than the $215,000
shown in the budget. M. Bottomley asked if the $215,000 figure was for 5 years; B. Lewis confirmed
that was correct. M. Johnson asked if that was in addition to the amount that the DDA had previously
contributed toward restroom renovations. B. Lewis stated that was correct; that money had already
been paid. M. Bottomley asked for more precise financial information going forward. M. Kleaveland
asked how long the DDA had been paying the $215,000. B. Lewis stated that there had been some
money paid last fiscal year but this was the first full year of the $215,000 payment. B. Hastings asked
ifthere was an update on the splash pad handrails. D. Alexander stated that the Engineering Dept was
handling that; however, the DPW was dealing with staffing issues due to Covid so there were delays.
H. Sytsema asked about the negative cash reserves. B. Lewis explained that the DDA was a debt fund;
that money would be made up going forward. D. Alexander requested a motion to accept or reject the
budget. B. Lewis stated that she would have better budget numbers at the next meeting, along with a
5-year outlook. M. Bottomley asked how the payments to the County were coming along. B. Lewis
stated that $134,000 was the final payment.

A motion to accept the final budget report was made by B. Hastings, supported by J. Moore and
unanimously approved, with M. Bottomley, B. Hastings, J. Riegler, M. Kleaveland, D. Pollock, F.
DePung, M. Johnson Sr, S. Black, J. Moore, H. Sytsema, and D. Kalisz voting aye.
Proposal on Downtown Events D. Alexander presented the staff report. City staff had been in contact
with C. Flanders, previous director of the Lakeshore Art Festival (LAF) through the Muskegon
Lakeshore Chamber of Commerce, about the possibility of the City taking over production of the art
festival. The Chamber was no longer able to manage it, and because the festival brought thousands of
people to downtown Muskegon and its businesses, it was posited that the DDA would be an appropriate
organization to take over this event. The Taste of Muskegon was also suggested as an event that may
be appropriate for the DDA. A. Meisch stated that she had spoken to the City Commission and
explained the proposal outlining the possible city management of these events, which was favorably
received. Financially however, the city's attorney had advised that the city's General Fund was not
appropriate to act as fiduciary of the event. Due to the event's economic impact and overall promotion
of downtown Muskegon, staff believes that the DDA budget would be a good fit. DD As across the
state have historically produced events to promote and market their districts, and it fits within our
DDA's mission. If approved, the DDA would become the fiduciary, taking on the risk and reward for
the Lakeshore A1i Festival and the Taste of Muskegon. Due to Covid-19 restrictions, it is unknown at
this point how 2021 events would be affected, and it's possible that there could be a loss if the event
had to be cancelled. Some cash expenditures are needed now for marketing and software expenses.
However, it is anticipated that the events should at least break even and possibly make some profit,
which would go to the DDA to spend to support its mission. The Clerk's Office and the DDA Manager
would work with the existing LAF volunteer organization under the direction of C. Flanders, who
would work under contract with the Clerk's Office to direct and produce the art festival. Regarding
the Taste of Muskegon, staff will ask the DDA to enter a similar arrangement with the Clerk's office
at a future date, as those details are still being worked out. City staff recommends approval of the
proposal, with the DDA Manager joining both volunteer event boards as a DDA liaison.

A. Meisch discussed the proposal. She stated that the Chamber was no longer able to support the event,
which was among the top 25 art festivals in the country. Although 2021 would be an unce1iain year
due to Covid-19 issues, the festival generally made a profit, which would benefit the DDA if they took
over. The festival also benefitted downtown businesses, many of which had indicated that it was an
impmiant festival for them, due to the people and money it attracted to downtown. The Taste of
Muskegon also made money, which was used to help suppmi the Farmer's Market. Both events had
up-front costs which would later be covered by vendor fees. DDA funds would be needed to cover the
up-front costs. A. Meisch also asked that the city be allowed to hire C. Flanders to run the art fair, as
she had extensive experience. She would be paid a monthly fee under a contract with the DDA. D.
Alexander stated that the city was looking for the DDA to become the fiduciary and accept a loan from
the city's cash reserves to pay festival expenses, not to exceed $25,000 per month. Once vendor fees
started coming in, that money would be paid back. He suggested that the DDA commit to at least 2
years, in case Covid concerns had a negative effect on the 2021 festival.

M. Bottomley asked for input from the board. D. Kalisz stated that the festivals were a great thing for
the DDA to consider suppmiing, as it was good public relations for Muskegon and the downtown. He
asked if C. Flanders's services would be similar to what she did at the Chamber. C. Flanders stated
that it would be within the scope of what she had previously done and somewhat beyond, and her
committee was on board with the proposal. M. Kleaveland asked if she thought it could be more
difficult for the DDA to secure donations for the festival, considering it was a quasi-governmental
board. C. Flanders stated that she already had commitments from some sponsors and the Chamber had
also agreed to assist with sponsors. In addition, she thought the continuity of having the same person
running the festival would be beneficial. M. Johnson asked if the DDA was being asked to finance the
event and provide staff/volunteers. D. Alexander clarified that the DDA was being asked for financing
only. C. Flanders already had a dedicated volunteer staff and list, and A. Meisch and her team could
also provide assistance. D. Alexander stated that he was willing to serve on the festival's volunteer
board. B. Hastings asked if the art festival could proceed without the DDA. C. Flanders stated that
another organization would have to step forward to take over. A. Meisch stated that the Chamber had
reached out to the City about taking over the festival, and city staff had reached out to C. Flanders. S.
Black asked if there was a contingency plan in case covid restrictions were still in place. C. Flanders
stated that, since it was an outdoor event, there was a plan to hold a smaller festival, providing there
was no directive from the Governor in place that forbid it. J. Riegler concurred that the festival was
very important for downtown businesses but was concerned about the money available in the DDA' s
budget. M. Bottomley also expressed concern about taking on too much debt. J. Riegler asked C.
Flanders how long she expected the initial $25,000 to last. C. Flanders anticipated that it would last
into February or March; the biggest part right now was promoting the festival to draw in the artists.
She would start working on sponsors right away, and vendor fees were expected to start coming in.
However, if the festival had to be cancelled, those fees would have to be refunded. M. Bottomley asked
what the city's loan terms were for the $25,000. B. Lewis stated that if the festival revenue didn't cover
the loan amount, the city would look into a mutually agreeable arrangement with the DDA, as the city
wanted to see the festival continue. Staff, board members, and C. Flanders continued to discuss
financing sources, including grants.

A motion that the DDA provide financing of $25,000 in beginning expenses for the 2021 Lakeshore
Art Festival was made by D. Kalisz and supported by J. Moore, with discussion continuing on the
motion.

F. DePung asked where the money would go if the festival made a profit. B. Lewis stated that it would
go to the DDA and it would be up to the board where they wanted to spend it. M. Bottomley stated
that she would like to see a fomer contract outlining the terms discussed. M. Kleaveland stated that
the details could be worked out, but board approval now would allow staff and C. Flanders to proceed
with the festival, since preparation needed to begin as soon as possible. C. Flanders confirmed that
timing was imperative, as artists were already looking to fill up their schedules for next year. D. Kalisz
and J. Moore agreed to amend their original motion to match staffs recommendation, as follows:

    I move that the Muskegon Downtown Development Authority accept the fiduciary
    responsibility of producing the Muskegon Lakeshore Art Festival (LAF) and Taste of
    Muskegon to be organized through the Muskegon City Clerk's Office, and direct the DDA
    Manager to provide regular updates to the DDA board on both events. For the LAF, I move that
    the DDA accept monthly loans from surplus city funds as needed, not to exceed a total of
    $25,000 with event revenues paying back those loans. For Taste of Muskegon, I move that the
    DDA direct its manager to provide the DDA board with event details for fu1iher action. DDA
    support of these events will be reevaluated after the 2022 season.

M. Bottomley stated that the board had not discussed the Taste of Muskegon, and asked if that reference
should be removed from the motion. D. Alexander and A. Meisch stated that no funds were being
requested for Taste of Muskegon at this time. A vote was taken on the amended motion above, which
was unanimously approved, with M. Bottomley, B. Hastings, J. Riegler, M. Kleaveland, D. Pollock, F.
DePung, M. Johnson Sr, S. Black, J. Moore, H. Sytsema, and D. Kalisz voting aye.

D. Alexander thanked the board for their support and quick action.
Downtown Report D. Alexander stated that the last county bond payment would allow some extra
funds in the DDA budget in the last half of the fiscal year. He stated that Downtown Muskegon lost
over a million people over the summer due to event cancellations so it was vital to support downtown
events going forward. He discussed beer tents and how the social district regulations could affect those,
as currently, social district allowances had to be suspended during events. This could be problematic
for enforcement, if regulations changed week to week. He would monitor upcoming legislation
involving the issue.

PUBLIC PARTICIPATION
R. Cummins allotted time for public participation via call-in. M. Bear phoned in regarding the homes
currently under construction on Webster Ave. She stated that she was not opposed to new homes being
built, but she wanted to see more input from residents before decisions were made.

OTHER

None


There being no further business, the meeting was adjourned at 12:05 p.m.

dr
                     Muskegon Downtown Development Authority

                              Agenda item V./B-1 for 4-13-21

                        Request for arena debt payment funding



Requesting party: City Finance Department

Outline of request: Staff is asking the DDA board to rescind any previous funding support of the
repayment of debt for the Mercy Health Arena's new roof and HVAC system upgrades. Going
forward, staff requests the DDA support of a lower annual debt payment for the next 10 years.

Background: The DDA has supported the repayment of debt for the city's improvements to its
Mercy Health Arena's new roof and HVAC system upgrades. The DDA budget has shown a
$215,000 payment the past two fiscal year's. Staff cannot find DDA motion approving the debt
payment but the budget indicates the payments would be for either five or 10 years.

The city has refinanced its debt through a new city bond issue. The refinancing has lowered the
annual debt cost of the Mercy Health roof/HVAC to approximately $130,000.

Staff comments: City staff is asking the DDA rescind any prior commitments to support Mercy
Health debt payments and commit to approximately $130,000 annually for the next 10 years.
On a yearly basis, the lower payments frees up approximately $70,000 a year in the DDA budget
for board to reallocate resources to other of its priorities in the 2019 strategic plan. The Finance
Department will be available to outline this request and answer board questions.

Staff recommendation: To continue to support the Mercy Health Arena debt service at
approximately $130,000 a year for the next 10 years. The exact bond issue payments are
attached to this agenda request.

Suggested motion: I move to rescind any prior Muskegon Downtown Development Authority
support for the funding of debt service for the city's Mercy Health Arena's new roof and HVAC
system. For the next 10 years, I move for the DDA to fund approximately $130,000 a year to
support the arena debt consolidated in a recent city bond issue.
                     Muskegon Downtown Development Authority

                              Agenda item V/B-2 for 4-13-21

             Request for a DDA pledge to the Muskegon Museum of Art



Requesting party: City Manager and the Muskegon Museum of Art

Outline of request: The Muskegon Museum of Art - a cultural foundation in downtown
Muskegon, one of the finest small town art museum 1 s in the world and a huge West Michigan
asset - is asking the DDA to support its Shaping the Future capital campaign with a pledge of
$100,000 over five years beginning in July 1, 2022.

Background: The MMA has embarked on its largest capital campaign of its 110 years of
operations in downtown Muskegon. The $9.9 million campaign would pay for an addition to the
museum to expand public display of its significant permanent collection on an ongoing basis
and provide additional large exhibit space to allow the MMA to host major, national touring art
exhibits. The MMA already has about 75 percent of its goal raised and anticipates completing
the campaign by the end of the year, breaking ground this fall and opening the in 2023. The
MMA is asking for a $100,000 pledge at this time to be paid over five years at $20,000 annually
beginning in July 2022, which would be part of the 2022-23 DDA budget.

Staff comments: City Manager Frank Peterson and city Business Development Manager Dave
Alexander met with museum executives and campaign leaders. They agreed to bring this
                                                      1
request to DDA. MMA Executive Director Kirk Hallman s letter requesting DDA support for the
Shaping the Future campaign is attached. Also is the copy of the MMA1s campaign brochure.
Kirk Hallman or a representative from the MMA should be at your meeting to make the request
and answer questions. Realize that other district institutions have capital campaigns but have
not requested DDA support.

Staff recommendation: The MMA request seems reasonable when considering its significance
to downtown, the need for space that will serve the community and region for decades to
come and the support already received from the community and West Michigan. Staff
recommends approval knowing that the first payment would not be due until the fiscal year
starting in July 2022.

Suggested motion: I move for the DDA to pledge $100,000 to the Muskegon Museum of Art
Shaping the Future campaign, $20,000 a year for five years beginning in July 2022.
MUSKEGON
MUSEUMmART
296 W. Webster Avenue
Muskegon. Ml 49440

231.720.2571


                    HONORARY CHAIRS           February 5, 2021
                        Jon & Jane Blyth
                              Larry Hines
              Robert & Wendy Kersman
        Charles E. & Vivian K. Johnson II     Dave Alexander, Business Development Manager
                          Patrick O'Leary     City of Muskegon/Downtown Development Authority
                           Marge Potter
                  Kimberly Van Kampen         Muskegon, Ml 49440

              ENDORSEMENT COUNCIL
                       Dave Alexander
                          Beth Beaman         Dear Dave,
                       Susan Bednarek
                             Billie Bruce     I'm writing to formally request support from the DDA for the largest expansion
                        Claudia Bryant        of Muskegon's cultural infrastructure in a generation; a $9.9M addition to the
                        E. Jane Connell
                            Gayle Davis       Muskegon Museum of Art.
                          Friends of Art
                           Amy Heisser        Our reasons for this expansion are to support the MMA's viability and
                          Erick Johnson
                                              sustainability for the next 100 years. The need Is great. The MMA has one of
                           Cindy Larsen
                      Henry Matthews          the most important permanent collections of artwork in the Midwest which we
                    Sue Ellen McCreary        leverage to present significant community programs and engagement. Our
                         MMADocents
                          Irene Pierson
                                              reputation and marketing efforts are national. Of the more than 5,000 pieces in
             Thomas & Elizabeth Tuttle        the collection, we only have the capacity to exhibit less than 150 pieces of
             Steve & Rebecca Westphal         artwork at any given time. Our goals are simple:
                    CAMPAIGN CABINET
                       Frank Bednarek•            •   Sustaining the MMA and serving the community for the next century.
                           Sherry Becker
                          Claudia Berry•          •   Transforming the MMA to a Destination Museum - not a stopover - by
                         Nancy Crandall
                              Anne Dake
                                                      adding three galleries (one 5,000 square foot Grand Gallery for major
                       Tom DeVoursney                 touring exhibitions and two new rotating exhibition galleries) as well as
                         Robert Dubault               two new classrooms/family activity area, and more collections storage.
                          Bob Garretson
                            Kirk Hallman
                         Judith Hayner•       This project will increase Muskegon's visibility as well as traffic and tourism to
                     Charles Johnson 111•     the Muskegon's downtown core and surrounding area and aligns well with the
                         Catherine Mott
                                              DDA's development goals. We are recognized by the corporate community as
                           John Prldnia•
                             Gil Segovia•     driver of economic development. We are requesting $100,000 of support
                       Jonathan Wilson        distributed over five years starting in 2022.
                                 •co-Chairs

          MUSKEGON MUSEUM OF ART              We are in the quiet phase of our capital campaign. As of today, we have raised
     FOUNDATION BOARD OF TRUSTEES
                                              $6.SM - two thirds of goal. On March 16, we will make a major announcement
                  Frank Bednarek, Chair
       Kimberly Van Kampen, Vice-Chair        and roll out the public portion of the campaign.
                 John Prldnia, Treasurer
                Claudia Berry, Secretary      If you have questions or would like further information, please call me directly at
                         Nancy Crandall
                             Gayle Davis
                                              231-720-2573 or email khallman@muskegonartmuseum.org.
                       Tom DeVoursney
                         Robert Dubault       Sincerely,
                     Charles Johnson Ill
                           Mike Olthoff
                         Eric Ringelberg
                              GIi Segovia
                          John Swanson        l<irk Hallman, Executive Director
                       Jonathan Wilson




                                                                                                 SHAPING
                                                                                                 TH E FUTUR E
     --   -------- - - --   - - - - - -




                            ·Journal
                                 SPRING 2021
             MUSKEGON MUSEUM OF ART



SHAPING
THE FUTURE




    THE CAMPAIGN FOR
    MUSEUM EXPANSION
     THE CAMPAIGN
     FOR MUSEUM
     EXPANSION
                                                   Frank Bednarek

w                                                  Chair, Board ofTrustees,
                                                   Muskegon Museum of Art

er                                                 Foundation

                                                   Photo by Frederic Reinecke

~
~                   MESSAGE FROM THE CHAIR
~
u_                  A fine art's museum existence in a community means different
                    things to different people. It can be simply a love of art, or a
w                   specialized interest in photography or the sheer beauty of a
                    bronze sculpture. It can be about learning an artist's message,
I                   visual commentary on today's society or just enjoying a fun
~                   folk-art picture. Importantly, it is a place to educate, entertain

l9                  and inform our children and grandchildren.

z                   For sure, pictures tell a story: often poignant, sometimes funny,
                    and many times stunningly beautiful. Art for all ages touches
o_                  the soul, challenges the mind, and renews the spirit.
<(                  So, for the Muskegon Museum of Art, the Trustees are committed
I                   to keeping the Museum alive, well, and relevant for the next
                    100 years. To do this, we need to expand, grow, and improve
U)
                    the physical plant. More about this goal is in the material that
                    follows. We hope you will consider making a commitment to this
                    effort so that we can keep Muskegon's great fine arts institution
                    as the premier cultural attraction for our community and the
                    region.

                    Thank you.

                    Frank Bednarek, Chair



                            OUR GOAL FOR THIS EFFORT
                           Sustain the Museum for the next century
                            by keeping it alive, well, and relevant.
                                   Fundraising Goal: $9.9 million                        .
                                   Raised to Date: $7.1 million
                                      We appreciate your help!
                                                                   CAMPAIGN CABINET
                                                                   HoNQRARv to~cHA1Rs,. ·
                                                                     Jon&, J~u1e Blyth
                                                                   . ~arry Hines
                                                                      ~barles E. & Vivian K.fohnson
                                                                      Robert & Wendy l<er~m~·n
                                                                     John H.Nartin
                                                                      Patrick O'Leary .•              .w
                                                                     ,.  .    ',
                                                                   .. Mc1rge Potter
                                                                      Kimberly Van Kampen
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MESSAGE FROM.·T.HE
                                                                    ENDORS.EMENT COUNCIL              ~
                                                                                                      ~
                                                                   Dave Alexan.der
TRUSTEES & CABINE'f
             .                 ',;,   ' ' .. · '
                                                                   Beth Beaman
                                                                                                      u_
                               ,·          \   ,·   '              Susan Bednarek
Two factors are driving the Musk~gqn Museum of Art expansion
initiative:
                                                                   Billie Bruce ··
                                                                   Claudia Bryant                     w
1. There is not sufficient space to display the permanent.         E.Jane Cbnnell                     I
collection and;
2. Touring exhibitions today require larger venues than the MMA
                                                                   Gayle.Davis
                                                                            of
                                                                   Friends Art
                                                                                                      l-
has to offer.                                                      Amy Heisser .
                                                                                                      l9
The plan is to add three new galleries and two new classroom
activity areas, along with support space, which will meet these
                                                                   Erick Johnson
                                                                   Cindy Larsen
                                                                   Henry Matthews
                                                                                                      z
challenges and sustain this cultural treasure for generations to   Sue Ellen McCreary
                                                                                                      Q_
come.                                                              MMA Docents                        <(
                                                                   Irene Pierson
The new galleries will increase permanent collection exhibition    Eric Ringelberg                    I
space by 222% and temporary exhibition space by 60%, making        Thomas & Elizabeth Tuttle          (f)
the Muskegon Museum of Art a destination rather than a stop        Steve & Rebecca Westphal
over.
                                                                    CAMPAIGN CABINET
Did you know? With current exhibition space and rotating the        Sherry Becker
permanent collection twice annually, it would take over 40 years    Frank Bednarek'
to show the entire collection!                                      Claudia Berry*
                                                                    Nancy Crandall
                                                                    Anne Dake
                                                                    Tom DeVoursney
ELEMENTS OF EXPANSION                                               Robert Dubault
                                                                    Bob Garretson
•   Grand Hall for Major Exhibitions
                                                                    Kirk Hallman
•   Two New Galleries for Special Rotating Exhibitions              Judith Hayner•
•   Two New Classrooms to Support Youth Educational Programs        Trip Johnson•
                                                                    Catherine Mott
•   Family Activity Area                                            John Pridnia•
•   New Barrier-Free Entry                                          Gil Segovia
                                                                    Josh Silvis
•   Additional Storage and Workshop Spaces
                                                                    Jonathan Wilson
•   Expanded Space for Museum StoreNisitor Services
                                                                    'Campaign Co-Chairs
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                                                                    1921


     Charles Hackley bequests                               Friends of Art
     .:;, c:;n nnn fnr "Pirt1 lrP.S   Hackle~ Art ~?llery   orqanization
                                                                   SHAPI NG TH E FUTURE
                                                                   Museum Expansion Campaign

                                                                   CONTRIBUTORS


   The Cornerstone of the Community.                               LEADERSHIP
                                                                   $1,000,000+
   The day the Muskegon Museum of Art opened its                   Van l<ampen Boyer Molinari Foundation
   doors in 1912 we were immediately recognized
                                                                   PLATINUM
                                                                                                                       t-
   internationally as a significant cultural institution.
                                                                   $500,000+
                                                                                                                       (J)
   During the past century, the MMA has built an                   Steven Alan Bennett & Dr. Elaine Melotti Schmidt    <(
   enviable permanent collection that is usually
                                                                   The Hilt Foundation
                                                                   Patrick O'Leary & l<aren Yamasaki
                                                                                                                       o_
   reserved for major metropolitan areas.

   Over the decades, the MMA has continued to
                                                                   Mrs. Shaw Walker
                                                                                                                       w
   evolve and expand; not only by continually
                                                                   GOLD
                                                                   $250,000+
                                                                                                                       I
   building on to our permanent collection, but by                 The Frey Foundation                                 ~
                                                                   Hines Corporation (Challenge Match)
   becoming a model for community participation,
                                                                   Howmet Aerospace Foundation
   education and engagement.
                                                                   SILVER
   The MMA's 109-year history is rich in impact
                                                                   $100,000+
   and experience which has driven a need for                      The Susan & Frank Bednarek Fund
   more capacity that the community has always                       of the Community Foundation for Muskegon County
                                                                   Andy & Nancy Busard,
   responded to; from past renovations and
                                                                     In Memory of Drs. J. Max & Mary Ellen Busard
   improvements to the opening of the Walker                       Tom DeVoursney
   addition a generation ago. We are now beyond                    Carol Folkert
   capacity.                                                       Robert & Wendy l<ersman
                                                                   Mike & l<ay Olthoff
   The Building Blocks are in place for a                          Gary & Victoria Verplank Estate
                                                                   Shaw & Betty Walker Foundation
   transformative opportunity to position the
   MMA as a destination museum and sustain this
   incredible community asset for the next century.




                                                                                                      1983


L.C. 8 Margaret Walker                  Bob 8 Corky Tuttle begin
                                                                                       Walker Galleries Open
begin 80-year patronage                 studio glass collection
1-
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                                                                       2009


      Muskegon Museum of Art   Drs. Osbie 8 Anita Herald   MMA creates and travels
      Foundation is formed     begin African American      Good Design: Stories
                               art collection              from Herman /viii/er
                                                                  SHAPING THE FUTURE
                                                                  Museum Expansion Campaign

                                                                  CONTRIBUTORS


 Over 5,300 works of art reside in the MMA's                      BRONZE
                                                                  $50,000+
 renowned permanent collection; pieces by a
                                                                  Andre Aerne Estate
 staggering list of iconic artists including Hopper,              Dr. Fredrick & Deborah Brown Estate
                                                                                                                      ~
 Homer, Rembrandt, Catlett, Picasso, Degas,
 Remington and others. Unfortunately, at any
                                                                  Michigan Council for Arts & Cultural Affairs
                                                                  Webb Chemical Service Corporation                   z
 given time, because of our temporary exhibition                  LEGACY                                              w
 schedule, we can only comfortably display                        $25,000+
                                                                  William Baldridge, In Memory of Luanne Baldridge
                                                                                                                      (_f)
 between 100-125 works.
                                                                  Jon & Jane Blyth                                    w
 The MMA also enjoys a national reputation for
 presenting up to 20 exhibitions annually. An
                                                                  Dr. Donald & Nancy Crandall
                                                                  Robert & Cathleen Dubault
                                                                  Caron & Floyd Farmer
                                                                                                                      ao_
 impressive number by any museum standard and                     Judith Hayner & Charlene Romanosky,

 key to our success in engaging the community
 with diverse programming, events, and
                                                                     In Honor of the MMA Foundation Trustees,
                                                                     1984 - Present
                                                                  Paul C. Johnson Foundation of the
                                                                                                                      w
 educational content. Attendance is rising and                       Community Foundation for Muskegon County
                                                                  Trip & Nina Johnson
                                                                                                                      I
 international in scope. We have a recognized                     John & Jesse Martin
                                                                                                                      ~      I


 economic impact on the region. And yet we have                   Marge Potter Community Giving Fund
                                                                  John & Mary Swanson
 so much more potential.
                                                                  PATRON
 We knew this moment would come. Nearly 20                        $10,000+
 years ago, the MMA began strategic steps to lay                  John & Claudia Berry
 the groundwork for a future expansion; acquiring                 Patricia Flynn
                                                                  Gayle Davis & Fred Kraft
 adjacent land, establishing a major endowment,
                                                                  Bob & Heather Garretson Fund
 separating from the school system to become                        of the Community Foundation for Muskegon County
 an independent institution, and assembling the                   Erick & Holly Johnson
                                                                  Brian & Jamie Lang
 most talented and passionate museum staff to be                  Steven & Caroline Mayberry
 found.                                                           Newkirk Electric
                                                                  Sally A. Peterson
 The MMA's critical needs include additional                      Paul & Evelyn Reid
 gallery space, classrooms, community space,                      Susie Reher
                                                                  Michael & Patricia Wade
 programming space, art storage and work space.                   Judy Wilcox
                                                                  Kenneth & Marguerite Winter
                                                                  Jan Witt




                                         INSPIRE Campaign raises $7.6               The North American Indian
100th Anniversary adds
                                         million and allows for formal              creates a model for future
100+ new works of art
                                         independence                               exhibitions
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                     Completion of gallery
     Launch of The   updates and renovations.     Public announcement
     Bennett Prize   Qui et capital campaign is   of expansion
                     launched
               --- · ·-   - - ----------------,--------------------

                                                            SHAPING TH E FUTURE
                                                            Museum Expansion Campaign

                                                            CONTRIBUTORS


This expansion will transform the MMA from a                HOPPER SOCIETY
                                                            $5,000+
stopover to a destination museum.
                                                            Stu & Sherry Becker
                                                            John Cook, In Honor of Jane Leonard & '
The MMA will be repositioned from a one-hour                  In Memory of Liz Cook
experience to a half-day experience. We will turn           Anne & Allan Dake
                                                            Jan Deur & Laura Weaver
the current wings of the museum completely                  Eugene Fethke
over to permanent collections and finally be                Amy & Matt Heisser
                                                            Paul & Karen Jackson
able to show our contemporary glass collection,             Roger & Jeanne l<nop
Renaissance print collection, Edward Curtis                 Mark & Bonnie Meengs
                                                            Dan & Sharon Moody
photographs and, of course, most of our fine art
                                                            Frank & Emma Peterson
paintings spanning over 500 years.                          John & Michelle Pridnia
                                                            Evan & Lois Reinders
A new 5,000 square foot grand gallery will allow            Eric & Michele Ringelberg
                                                            Don & Elizabeth Jane Rohlck
us to host national touring exhibitions that we             Michael & Debra Schubert
cannot currently offer because of lack of capacity.         Shoreline Insurance Agency
                                                            Peter M. Turner
Two new rotating exhibition galleries along with            Mike & Marti Youngdahl
additional vault storage will have capacity for the
next century of collecting.                                 BENEFACTOR
                                                            $2,500+
                                                            Charlotte & Bob Chessman
Most importantly, these new facilities will sustain         Rich & Nan Klassen
the MMA and serve the needs of the community                Josh & Amy Silvis
                                                            Ted & Judy Stojak
for the next century including educational
                                                            Marty & Heidi Sytsema Family Fund
classrooms, community and family activity                      of the Community Foundation for Muskegon County
areas, improved programming space, improved
                                                            FRIEND
functionality for school tours, barrier free entry,         $1,000+
workshop and storage space, and the ability to              Charles & Gloria Alstrom
                                                            Ted & Francine Anton
grow and adapt to future community needs.                   Sherry & Pete Brown
                                                            Janet Day, In Memory of John MacLeish Day
We hope you will join us in taking this remarkable          Jan & Jim Delaney
institution that is the Muskegon Museum of Art              Heather Kettler
                                                            Clara Lang
into the future.                                            MMA Staff
                                                            Tim & Marian Michalski
                                                            Peggy Jensen & Gerald Nehra Fund
                                                               of the Community Foundation for Muskegon County
                                                            Laura Schultz
                                                            Lynne & Thomas Spencer
                                                            Sheila & James Steffel




                                                      l     ~~~gi::i~~=~nifer Zwemer

                                                          ·- A-no_n_y_
                                                                     m_ou_s-   - -- --   -   -   - - - - - - - - --1




                             MMA expansion opens.
     Groundbreaking
                             111th anniversary year
     SHAPING THE FUTURE
     Museum Expansion Campaign
     CONTRIBU TORS

     UNDER $1,000                           Major donor recogn ition in the Muskegon Museum Museum
     Charlie R. Deupree                     of Art will be designated for gifts of $2,500 or more.
     Jason Aerts & Anne Schroeder
                                            Th is list reflects only the donors who have given permission
     Billie Bruce
                                            to be listed.
w    Ann Burroughs
     Nancy & Santiago Coronado

ct     In Honor of Bennette Freeman Hartz
     Steve & Cynthia Deupree
~    Bob & Ann Erler

~      In Memory of Shirley Van Hoeven
     Jerry & Alison Lang
~    Andy & Jill Maceijewski
                                                                   SCAN TO CONTRIBUTE
     Eric & Marisa Peterson
LL   Irene Pierson

w    Andy & Tracy Price
     MaryWisnom

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                          .   - ---   ---   ...   - - - - - -- -- - - - - - - - - - - - - - - - - -


                   NAMING OPPORTUNITIES
Call MMA Executive Director Kirk Hallman at 231.720.2573 to learn more.

   GROUND FLOOR - New Construction
   THE NEW WING                                                                        $   1,500,000 •
   Grand Gallery: Van Kampen Boyer Molinari Foundation                                 $   1,000,000 •
   Grand Entry and Sculpture Hall: Patrick O'Leary & Karen Yamasaki                    $   500,000 ••
   Educational Wing (Classroom/Activity Area/Auditorium)                               $   500,000 ••        w
   Classroom A : Howmet Aerospace Foundation
   Classroom B
                                                                                       $
                                                                                       $
                                                                                           250,000 •••
                                                                                           200,000 •••       a
   Outdoor Public Space                                                                $   200,000 •••       ~
   New Museum Store (Co-Naming rights)                                                 $   100,000 •••
   Cafe/Break Area                                                                     $   75,000    .. ..   I-
   New Webster Street Entry: Webb Chemical Service Corporation                         $   50,000    ... .   ~
   Logistical Room                                                                     $   50,000    ••••
   Hall to Grand Gallery                                                               $   50,000    ••••    LL
   Cloak Room
   Welcome Area: Judith Hayner & Charlene Romanosky
                                                                                       $
                                                                                       $
                                                                                           25,000
                                                                                           25,000
                                                                                                     ••••
                                                                                                     ••••    w
    SECOND FLOOR - New Construction
                                                                                                             I
                                                                                                      ..     1-
    New East Gallery
    New West Gallery: Steven Bennett & Dr. Elaine Melotti Schmidt
                                                                                       $ 750,000
                                                                                       $ 500,000      ..     (.9
    Grand Reception Hall: Hilt Foundation
    Rooftop Terrace
    Elevator
                                                                                       $ 500,000 ••
                                                                                       $ 250,000 •••
                                                                                       $ 50,000       ****
                                                                                                             z
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    LOWER LEVEL - New Construction
    Dark Gallery                                                                       $ 600,000 ••          <t
    Vault                                                                              $ 50,000
                                                                                       $ 25,000
                                                                                                 ... .
                                                                                                 . . ..
                                                                                                             I
    Workshop
                                                                                                             (f)
    GROUND FLOOR - Existing and Modified Areas
    Administrative Wing                                                                $ 75,000       ****
    Reception Area                                                                     $ 50,000       ****
    Collection Manager's Office
    Director of Marketing Office
                                                                                       $ 30,000
                                                                                       $ 30,000       ...
                                                                                                      ****
                                                                                                       .,,


    SECOND FLOOR - Existing and Modified Areas
    Operhall Gallery (Co-Naming Rights)                                                $ 250,000      •••
    Security Center                                                                    $ 25,000       ****


    LOWER LEVEL - Existing/Modified Areas
    Preparatorial Work Area                                                            $ 50,000
    Offices                                                                            $ 50,000       ****


    DURATION PERIODS FOR NAMING RIGHTS
    • $ 1,500,000 to $ 1,000,000 Forty-year naming rights
    •• $ 750,000 to $ 500,000 Thirty-year naming rights
    ••• $ 499,000 to $ 100,000 Twenty-year naming rights
    •••• $ 75,000 and lower                         Ten-year naming rights with ten-year renewal option
                     Muskegon Downtown Development Authority

                              Agenda item V /B-3 for 4-13-21

                    Request to expend post COVID marketing funds

Requesting party: Muskegon City Clerk's event staff

Outline of request: In August 2020, the DDA board approved expenditures of discretionary
funds for the 2020-21 fiscal year, including $15,000 for post COVID marketing. As the
downtown emerges from the 2020 COVID year, there is a need to support an array of
downtown events that were not held in 2020 but are trying to revive themselves in 2021. The
marketing funds could be used promote the upcoming summer events.

Background: The DDA budget had $40,000 of unbudgeted funds starting the 2020-21 fiscal
year. The board approved a spending plan that included $15,000 for post COVID marketing to
help the downtown recover as COVID restrictions eased. The DDA took over promotions and
events from the Business Improvement District as anticipated beginning the first of 2021.
Through the City Clerk's Office's event staff, five events have asked for help as they climb out of
2020 when their events were cancelled due to public health restrictions. Those events have
created a fund in the Community Foundation for Muskegon County. The group has asked for
DDA support.

Staff comments: Non-profit, community events have been damaged by the pandemic and not
in line to receive COVID relief from other sources. Supporting these events and publicizing that
Downtown Muskegon is opening back up to people this summer could be achieved through a
collaboration with the event organizations. Unity Festival President Kevin Newton is making the
request on behalf of the group. City Clerk Ann Meisch will present a less restrictive grant to the
DDA to assist the 2021 downtown events.

Staff recommendation: DDA staff is recommending spending the $15,000 post COVID
downtown marketing funds dollar for dollar to support downtown event marketing
expenditures. Staff recommends matching dollars spent on marketing renewed 2021
downtown events for those organizations requesting support with up to $15,000 total
available. By May 1, many of the organizations will know if they are having an event this
summer and what kinds of advertising/marketing budgets they expect. Staff suggests equally
dividing the $15,000 among those with marketing budgets, expanding the downtown brand in
process. For every $1 spent by the event on marketing, the DDA would provide $1 offurther
marketing support.

Suggested motion: I move to spend $15,000 of DDA post COVID marketing dollars and direct
DDA staff to equally distribute the funds to downtown 2021 events as matching grants for
marketing.
To: DDA board members
From: Dave Alexander, downtown manager
Re: Proposed discretionary spending FY 2020-21 and 2021-22
Date: 8-3-2020

Last meeting you discussed how to allocate and spend discretionary funds in the current 2020-21 DDA
budget and I asked that you also consider what you might want to do going forward in FY 2021-22.

In a post-COVID world, I would suggest heavily spending on downtown marketing and marketing of
events as the restart begins hopefully sometime in the next year to year and a half. Also supporting
existing retailers or helping new retailers enter the downtown is another important priority that was
expressed in the DDA downtown strategic plan from last year.

Thus, with little board direction from last meeting, this is what I would propose.

 Muskegon DDA
 Estimated discretionary funds


 $40,000 revenue FY 2020-21
 $175,000 revenue FY 2021-22


 Expenditures                                     Amount

 FY 2020-21


 Events-promotion (half year with no BID)                                    10,000
 Office                                                                        6,000
 Downtown parks                                                                9,000
 Post COVID marketing                                                        15,000


 TOTAL                                                                       40,000


 FY 2021-22


 Office                                                                        6,000
 Downtown parks                                                                9,000
 Events-promotion-marketing                                                   25,000
 Streetscape (Xmas decoration/streetlighting)                                 90,000
 Retail assistance                                                            45,000



 TOTAL                                                                      175,000
                     Muskegon Downtown Development Authority

                              Agenda item V./B-4 for 4-13-21

               Request for Funding of Street Lighting on Terrace Street



Requesting party: Department of Public Works

Outline of request: Staff is asking the DDA board to support new street lights on Terrace Street
as part of the street rehabilitation project scheduled in 2022.

Background: The City has approximately $543K worth of federal surface transportation money
along with additional major street money allocated towards a 2022 project on Terrace Street
from Apple Avenue north to Shoreline Drive. The current proposal being pursued by staff
involves substantial changes to Terrace Street including a conversion from a multilane
boulevard into a 2 lane, 2 way roadway with parallel parking on both sides and new decorative
street lighting, essentially creating a more walkable environment. The intent is to utilize the
existing northbound lanes of the current Terrace Street footprint to accommodate this revision.
The area formerly occupied by the southbound lanes is largely planned for conversion to green
space, with the eventual construction of a bike path. Staff is giving consideration to
maintaining adequate room for an eventual non-motorized pathway connected to the
Lakeshore Trail at the north end and following along the former southbound alignment of
Terrace Street to Apple Avenue. From there the intention is to construct an on-street trail from
Apple south to the Laketon Trail along Sanford Street. The section of Sanford south of Apple
will largely be considered as a part of a FY 2023 or 2024 sewer project in that area.

Staff comments: City staff is asking the DDA to fund the street lighting for the project as
outlined in the street lighting plan presented in 2019. At that time, there was an expectation
that each segment would cost approximately $80,000 and that one segment would be
recommended per budget year. No projects were funded in 2020 or 2021, and the estimate for
the Terrace Street project is $175,000, if Consumers owns and installs the system. A city owned
system would cost closer to $625,000.

Staff recommendation: To fund the street lighting portion of the Terrace Street project at
$175,000 in the 2022 budget.

Suggested motion: I move to fund the street lighting on Terrace Street between Apple Avenue
and Shoreline Drive in the amount of $175,000 within the 2021/2022 annual DDA budget.
DECORATIVE STREET LIGHTING PLAN 2019-2026




-       2023   -   2026


    -   2024   -   TBD




                                            APPLE AVE

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