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CITY OF MUSKEGON
DOWNTOWN DEVELOPMENT AUTHORITY ("DOA")
REGULAR MEETING
DATE OF MEETING: Tuesday, April 12, 2022
TIME OF MEETING: 10:30A.M.
PLACE OF MEETING: City Hall Commission Chambers,
933 Terrace, Muskegon, MI
AGENDA
I. Roll Call
II. Approval of the meeting minutes of Dec. 14, 2021
III. Brownfield Redevelopment Authority business
A. Update on EGLE grant for 122 W. Muskegon (Peter Wills)
IV. Downtown Development Authority business
A. DDA financial statement 3-31-22 (City Finance)
B. Watch Muskegon 2.0 marketing support (Dave Alexander)
C. Supp01i ofMDA event in November (Dave Alexander)
D. DDA fund balance spending plan (Dave Alexander)
E. DDA-BID-Social District future funding of downtown (Dave Alexander)
F. Event updates - MMM, Taste and LAF (City Clerk event staff)
G. Communications - support of two grant applications (information)
V. Other
VI. 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 Marie Cummings, 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 (DDA) /
BROWNFIELD REDEVELOPMENT AUTHORITY (BRA)
REGULAR MEETING MINUTES
December 14, 2021
The meeting was held in the City Commission Chambers. Chairperson M. Bottomley called the
meeting to order at 10:30 AM and roll was taken.
MEMBERS PRESENT: M. Bottomley, J. Riegler, M. Johnson Sr., M. Kleaveland, J. Moore,
H. Systema, F. Peterson, S. Black, D. Kalisz.
MEMBERS ABSENT: (Members excused) J. Wallace Jr., D. Pollock, B. Hastings,
STAFF PRESENT: P. Wills, Director of Strategic Initiatives; D. Alexander,
Downtown Manager, J. Eckholm, Director of Economic
Development/Development Services Division, and Mike Franzak,
Director of Planning.
OTHERS PRESENT: None
APPROVAL OF MINUTES
Motion by F. Peterson, second by M. Kleaveland, to approve the regular meeting minutes for
November 30, 2021. Voice vote, all approved.
BROWNFIELD REDEVELOPMENT AUTHORITY BUSINESS
None.
DOWNTOWN DEVELOPMENT AUTHORITY BUSINESS
Agenda Item A: Staff is asking the DDA board to review and accept the financial statement for
Nov. 30, 2021.
Staff recommendation: To accept the Nov. 30, 2021 financial statement.
Motion: Made by D. Kalisz, seconded by F. Peterson, to accept the Nov. 30, 2021
financial statement.
All in favor, motion passes.
Agenda Item B: Information was presented by Ann Meisch about the Recognition ofLakeshore
Art Festival Award.
Agenda Item C: Staff was approached last week by Carla Flanders of CMF Marketing &
Events and the Lakeshore Art Festival to have the city and the DDA back a new late-winter
event to generate downtown activity, support LAF vendors and delight customers.
Staff recommendation: Staff recommends the DDA be the fiduciary for the new
Michigan Makers Market on March 12, 2022 in the same way the DDA has financially
backed the Lakeshore Art Festival and Taste of Muskegon through the city clerk's event
staff.
Motion: Made by H. Systema, seconded by M. Kleaveland, for the DDA to support the
creation of a new March 12, 2022 one-day mi and crafts event in the VanDyk Mortgage
Convention Center in Downtown Muskegon as fiduciary of the event.
All in favor, motion passes.
Agenda Item D: Staff is for authorization to renew a management contract with CMF
Marketing & Events to produce a new 2022 Michigan Market Makers event in downtown
Muskegon.
Staff recommendation: To approve a new event management agreement with CMF
Marketing & Events for the Michigan Market Makers on March 12, 2022.
Motion: Made by J. Riegler, seconded by J. Moore, to approve a new event management
agreement with CMF Marketing & Events for the Michigan Market Makers and direct
City Clerk Ann Meisch to execute it.
All in favor, motion passes
PUBLIC PARTICIPATION
None.
OTHER
None.
AJOURNMENT
11:15am
Muskegon Downtown Development Authority
Agenda item A for 4-12-22
Acceptance of financial statement March 31, 2022
Requesting party: City Economic Development
Outline of request: Staff is asking the DDA board to review and accept the financial statement
for March 31, 2022.
Background: The finances of the DDA are in a strong position. The DDA received its tax
increment finance payment of $316,282 about $6,000 more than was estimated in the budget.
The office and misc operating line item is $3,000 over budget but marketing and promotions
line item is about $25,000 under budget. The estimated fund balance as of June 30, 2022
remains at about $120,000
Staff comments: Items later in the agenda address both the marketing line item and the fund
balance.
Staff recommendation: To accept the March 31, 2022 financial statement.
Suggested motion: I move to accept the March 31, 2022 financial statement.
DDA FINANCIAL FOR 03/31/2022
FY TOTALS
Revenues FY 2020-21 BUDGET FY2020-21 ACTUAL FY2021-22 BUDGET MARCH 31, 2022
Tax Increment $ 490,931.00 $ 490,931.00 $ 310,287.00 $ 316,282.00
Reimbursement - State $ - $ - $ -
Event Revenue * $ - $ -
Trans From Capital Projects Fund $ - $ -
Interest Income
Fundraising Revenue
$ 100.00 $ 578.94 $ - $ -
r
I
BID Income (or $50,000 levy) ** $ 112,653.00 $ 50,000.00 $ 17,000.00 $ -
Sponsorship $ - $ - $ -
Former Mall Brownfield Income (GF) $ - $ - $ -
Total $ 603,684.00 $ S41,509.94 $ 327,287.00 $ 316,282.00
Expenses FY 2020-21 FY2020-21 ACTUAL FY 2021-22 FY 2021-22
Business Dev. Manager Wages $ 73,781.00 $ 75,024.35 $ 56,192.29
Tra ns to GF - Marketing, Events, Overhead $ - $ -
FICA (7.65%) $ 5,848.00 $ 5,651.85 $ - $ 4,505.91
Workers Comp (2%) $ 410.00 $ 430.76 $ - $ 293.95
Insurance $ 7,748.00 $ - $ 3,242.19
Residency Bonus (4%) $ 2,743.00 $ 4,881.40 $ -
Life Insurance (0.24%) $ 270.00 $ 301.84 $ - $ 247.22
401(k) (6%) $ 8,000.00 $ 6,756.40 $ - $ 5,376.28
Total Salaries/Benefits $ 98,800.00 $ 93,046.60 $ 95,500.00 $ 69,857.84
Walkability Improvements $ - $ -
Streetscape/Wayfinding / Walkability $ - $ -
Public Art (Downtown Initiative) $ - $ -
Landscaping $ 3,000.00 $ 15,000.00 $ 10,625.00
Snow Removal $ -
Fa~ade Program $ - $ -
Financial Incentives $ - $ -
Downtown Park(s)*** * $ - $ 3,598.80 $ 9,000.00 $ 6,636.15
Marketing/Promotions $ - $ 9,703.22 $ 32,000.00 $ 6,662.47
Blight $ -
Office Space and Misc Operating $ - $ 6,909.23 $ 9,000.00 $ 11,934.48
Total Recurring Costs $ - $ 23,211.25 $ 65,000.00 $ 35,858.10
Morris Street Lot $ - $ - $ -
Taste of Muskegon $ - $ -
Lakeshore Art Festival $ -
Projects and Events $ - $ - $ - $ -
County Debt Payments ($1M) $ - $ 134,072.00 $ -
Mercy Health Arena HVAC/Roof* ****** $ 208,051.00 $ 208,051.00 $ 130,000.00 $ -
Other Debt Payments (smartzone) $ - $ - $ -
Total Debt Payments $ 208,051.00 $ 342,123.00 $ 130,000.00 $ -
Total Expenses $ 306,851.00 $ 458,380.85 $ 290,500.00 $ 105,715.94
I
Net Rev/Expenses I$ 296,833.oo 1 $ a3,129.o9 I$ 36,1a1.oo I$ 210,sGG.06 I
I
Fund Balance at Beginning of Year I$ 6,341.00 I 1$ 89,476.091
I
Fund Balance at End of Year 1$ 89,476.091 1$ 300,042.151
O:\Planning\COMMON\DDA - BRA\DDA - BRA 2022 -- current year\DDA financi als 3-31-22
Muskegon Downtown Development Authority
Agenda item B for 4-12-22
Watch Muskegon 2.0 support
Requesting party: City Economic Development
Outline of request: Staff is asking the DDA board to consider support of the next phase of the
Watch Muskegon campaign.
Background: The City of Muskegon launched the highly successful Watch US GO image
campaign a half dozen years ago. The Muskegon Lakeshore Chamber of Commerce managed
the campaign until this year when the city took back the brand and its marketing. Please find
the story line for living here and talent recruitment for WM 2.0. Also see an initial estimate of
direct advertising buys. The city and chamber are splitting the development of the next
messaging and creative. Along with the county's Visit Muskegon, the group is looking to raise
funds for the initial media buys, which will be digital.
Staff comments: No area of Muskegon will benefit more from WM 2.0 than downtown. Staff
would like to take a portion of the $25,000 in the marketing budget to contribute to the Watch
Muskegon campaign. There is no specific plan for marketing dollars this year. There are no
billboard campaigns to join as in past years. Support of a downtown retail study as part of the
city's master planning process might become an ask in the next fiscal year but nothing specific
yet.
Staff recommendation: Staff would suggest $10,000 in support of Watch Muskegon 2.0 media
buys, either more or less.
Suggested motion: I move to contribute $(XXX} for media buys in the Watch Muskegon 2.0
campaign.
r
IK<II~ Q)~~ Q)
WATCH MUSKEGON MEDIA BUDGET SUMMARY
This document provides media budget segmentation recommendations for review and approval. Followi ng the confirmation of budgets, we w ill create a detailed media plan
with placement specifics and secure cont ra cts. Id eal ly , we can do everything at one time, but depending on media inventory ava ilab il ity, we will most likely need to stagger
p lacements. [e.g. Digital now. Billboards later). It goes without saying that we get more or less exposure depending on the budget.
Projects Budget Details
Digital Marketing - May • October $42,000
Display Ads (Google Network and Websites) $7,500 $2500 per month for all digital ads recommended
Pay Per Click Ads (Search Engine) $7,500 to total $75,000 anually.
Social Media Ads $6,000 $7000 per month recommended.
Over the Top Ads (OTT Video Ads) $72,000 $2000 per month recommended.
Influencer lv1arketing $3,000 $7000 per person x 3. Depending on who we get, this may not be enough.
Article lv1arketing $6,000 Budget for advertorials and other paid p lacement for articles.
Traditional Marketing - Summer/Fall $87,500
Billboards $30,000 $70,000 for three markets.
Television $30,000 $70,000 for three markets.
Print Ads $22,500 $7,500 for three markets.
MKG Airport Ads (Terminal, parking, etc.) $5,000 Termina l ads and other on-location opportunities like parking.
Non Traditional Marketing - Summer/Fall $15,000
Airplane banner $5,000 Flying a banner over the beaches targeting tourists to live here.
Guirilla Marketing/ Miscellaneous $70,000 Miscellaneous budget for off-the-wall ideas or new items not on the list.
Total $144,500
Muskegon Downtown Business Improvement District
Agenda item C 4-12-22
Support of MDA social event
Requesting party: City Economic Development
Outline of request: Staff is requesting the DDA to partner with the Muskegon Downtown
Business Improvement District to host a social event during the Michigan Downtown
Association annual conference at the VanDyk Mortgage Convention Center Nov. 3-4.
Background: Downtown Muskegon has been an active member of the Michigan Downtown
Association since redevelopment of the downtown after the removal of the Muskegon Mall.
The last time the MDA has meet in Muskegon was prior to 2015. The city has plenty to show off
since then. The annual conference will bring 125 downtown professionals and board members
to Muskegon with an estimated more than 50 room nights. The host downtown usually
provides a social gathering the Thursday evening of the conference. Staff has secured the lobby
of the Freaunthal Theater for a social gathering with cash bar Thursday Nov. 3 from 5-7 p.m.
The cost of the rental and food is not expected to exceed $3,000.
Staff comments: Staff suggests the BID and DDA split the cost of the MDA social event, not to
exceed $1,500 for each agency. The BID board already has agreed to support the gathering not
to exceed $1,500.
Staff recommendation: To authorize the half the cost of hosting an MDA social event as part of
the group's annual conference in Muskegon Nov. 3-4.
Suggested motion: I move to authorize up to $1,500 to host a social event for the Michigan
Downtown Association members.
DocuSign Envelope ID: 58898512-3845-4200-9F91-D0A2FF92840E
Frauenthal Center
425 West Western Ave.
Suite 200
Muskegon, Ml49440-1101
(231) 722-9750 / FAX (231) 722-4616
Confirmation
Michigan Downtown Association Annual Conference - Happy Hour
Event ID: 1482-65-65-7 54 7
Dave Alexander Ph one: 231-215-8827
Customer: 933 Terrace Em a ii: dave.alexander@shorelinecity.com
Muskegon, Ml 49440
Thank you for booking your event at the Fra uenthal Center! Enclosed you will find a Rental Contract along with this Facility Agreement.
Please READ them carefully, fill out the necessary information, and SIGN and return along with your non-refundable deposit within 10 days
ofreceiving these documents. Please make the final set-up arrangements as soon as possible, but no laterthan 10 days before your event.
Thank you and we are looking forward to hosting your event!
11/3/2022 5:00 PM-7:00 Old Lobby Michigan Downtown $375.00 $0.00 $375.00
PM ssociation Annual
Conference - Happy
Hour
Bartender 2x4.0 Hour@$20.00 /Hour $0.00 $160.00
Clean Up l@ $75 .00 / Event $0.00 $75.00
Event Manager 1@$50.00/Event $0.00 $50.00
(Frauenthal)
Grand Total: $660.00
This agreement is made by and between The Frauenthal Center(Lessor/Center Management), and the above listed person, hereinafter
referred to as the Lessee (Rental Organization).
I have read and agree to adhere to the Rental Contract. If a damage deposit was required, the amount less the cost of any damages will be
refunded within 30 days of the function date.
Muskegon Downtown Development Authority
Agenda item D for 4-12-22
Spending of DDA fund balance
Requesting party: City Economic Development
Outline of request: Staff is asking the DDA board to develop a spending plan for its estimated
$120,000 in fund balance expected at the end of the 2021-22 fiscal year.
Background: The DDA needs to spend or have a plan to spend its fund balance. The DDA law
and state treasury will not allow you to accumulate and sit on cash.
Staff comments: Staff has provided the DDA mission statement and strategic plan strategies
from 2019 and the state law on how you can spend DDA funds.
Staff recommendation: To develop a spending plan by June 30, 2022.
Suggested motion: None
Muskegon Downtown Development Authority approved
mission statement February 2019:
''Our mission is to allocate our
resources in support of
development, promotions, and
events toward creating a
thriving downtown and its
waterfront where all people can
11
live, work, play and stay.
RECODIFIED TAX INCREMENT FINANCING ACT (EXCERPT)
Act 57 of 2018
125.4207 Powers of board; creation, operation, or funding of retail business incubator.
Sec. 207. (1) The board may:
(a) Prepare an analysis of economic changes taking place in the downtown district.
(b) Study and analyze the impact of metropolitan growth upon the downtown district.
(c) Plan and propose the construction, renovation, repair, remodeling, rehabilitation, restoration,
preservation, or reconstruction of a public facility, an existing building, or a multiple-family dwelling unit
which may be necessary or appropriate to the execution of a plan which, in the opinion of the board, aids in
the economic growth of the downtown dish·ict.
(d) Plan, propose, and implement an improvement to a public facility within the development area to
comply with the barrier free design requirements of the state construction code promulgated under the
Stille-DeRossett-Hale single state construction code act, 1972 PA 230, MCL 125.1501 to 125.1531.
(e) Develop long-range plans, in cooperation with the agency which is chiefly responsible for planning in
the municipality, designed to halt the deterioration of property values in the downtown district and to promote
the economic growth of the downtown district, and take such steps as may be necessa1y to persuade property
owners to implement the plans to the fullest extent possible.
(f) Implement any plan of development in the downtown district necessary to achieve the purposes of this
part, in accordance with the powers of the authority as granted by this part.
(g) Make and enter into contracts necessary or incidental to the exercise of its powers and the performance
of its duties.
(h) Acquire by purchase or othe1wise, on terms and conditions and in a manner the authority considers
proper or own, convey, or otherwise dispose of, or lease as lessor or lessee, land and other property, real or
personal, or rights or interests in property, which the authority determines is reasonably necessa1y to achieve
the purposes of this part, and to grant or acquire licenses, easements, and options with respect to that property.
(i) Improve land and construct, reconstruct, rehabilitate, restore and preserve, equip, improve, maintain,
repair, and operate any building, including multiple-family dwellings, and any necessary or desirable
appurtenances to that property, within the downtown district for the use, in whole or in part, of any public or
private person or corporation, or a combination of them.
(j) Fix, charge, and collect fees, rents, and charges for the use of any building or property under its control
or any part thereof, or facility therein, and pledge the fees, rents, and charges for the payment of revenue
bonds issued by the authority.
(k) Lease any building or property under its control, or any part of a building or property.
([) Accept grants and donations of property, labor, or other things of value from a public or private source.
(m) Acquire and construct public facilities.
(n) Create, operate, and fund marketing initiatives that benefit only retail and general marketing of the
downtown district.
(o) Conh·act for broadband service and wireless technology service in the downtown district.
(p) Operate and perform all duties and exercise all responsibilities described in this section in a qualified
township if the qualified township has entered into an agreement with the municipality under section 203(7).
( q) Create, operate, and fund a loan program to fund improvements for existing buildings located in a
downtown district to make them marketable for sale or lease. The board may make loans with interest at a
market rate or may make loans with interest at a below market rate, as determined by the board.
(r) Create, operate, and fund retail business incubators in the downtown district.
(2) If it is the express determination of the board to create, operate, or fund a retail business incubator in
the downtown district, the board shall give preference to tenants who will provide goods or services that are
not available or that are underse1ved in the downtown area. If the board creates, operates, or funds retail
business incubators in the downtown district, the board and each tenant who leases space in a retail business
incubator shall enter into a written contract that includes, but is not limited to, all of the following :
(a) The lease or rental rate that may be below the fair market rate as determined by the board.
(b) The requirement that a tenant may lease space in the retail business incubator for a period not to exceed
18 months.
(c) The terms of a joint operating plan with 1 or more other businesses located in the downtown district.
(d) A copy of the business plan of the tenant that contains measurable goals and objectives.
(e) The requirement that the tenant participate in basic management classes, business seminars, or other
business education programs offered by the authority, the local chamber of commerce, local community
colleges, or institutions of higher education, as determined by the board.
Rendered Thursday, April 7, 2022 Page 1 Michigan Compiled Laws Complete Through PA 52 of 2022
© Courtesy of www.legislature.mi.gov
Short-Term Strategies
The following strategies represent the Muskegon Downtown Development Authority's priorities
for the 2019/2020 fiscal year (July 2019 through June 2020):
Downtown Marketing
• Support Current Marketing Efforts - Continue to fund and support current marketing
activities that were previously developed and managed by Downtown Muskegon Now.
These activities include the Downtown Muskegon Now website, social media, email
marketing, maps, billboards, print advertising, radio advertising, and geofencing efforts
until a longer-term marketing plan is developed.
• RFP/Contract with Marketing Agency- Distribute a request for proposal and engage in
a selection process for a marketing agency that will be contracted to develop and
implement a Muskegon Downtown Development Authority marketing plan.
• Coordinated Marketing Effort - Muskegon Downtown Development Authority
marketing should complement and be coordinated with other community groups and
organizations to encourage a consistent message for Muskegon. Other community
marketing organizations include, but may not be limited to:
o Muskegon County Convention and Visitors Bureau
o Muskegon Lakeshore Chamber of Commerce
o Government entities, including the City of Muskegon and Muskegon County
o Non-profit institutions (i.e. museums, Community Foundation for Muskegon
County, libraries, Nelson Neighborhood Association)
o Downtown event promoters
o Muskegon schools
Connecting Downtown to the Waterfront
• Work with the City of Muskegon to support initiatives that create a stronger connection
between the core downtown area and the downtown waterfront. Specific activities may
include:
o Developing a plan for a pedestrian-friendly crossing of Shoreline Drive at Third
Street.
o Enhanced lighting and streetscaping on pedestrian routes that go from the south
side of Shoreline Drive to the waterfront. Priority should be given to established
crossings (i.e. 3 rd Street and 7th Street).
Wayfinding Signage
• Support the City of Muskegon's improvement and expansion of wayfinding signage
throughout the downtown, particularly signage that directs people to downtown parking
areas.
Financial Incentives
• Loan Program - Provide financial support in the form of a low-interest loan program for
new downtown developments, new downtown businesses or existing downtown
businesses looking to expand within Downtown Development Authority boundaries.
Preference should be given to retail businesses and businesses that expand the socio-
economic diversity of downtown Muskegon.
• Grant Program - Offer a limited number of grant opportunities to area non-profits
and/or public improvement initiatives (i.e. public art projects).
• Facade Program - Implement a fa<,;:ade program that offers financial incentives and
design assistance to downtown businesses and homeowners who are seeking to
improve/renovate the exterior of their building.
Lighti ng/Streetsca ping
• Support efforts to enhance lighting and streetscaping on streets adjacent to the core
downtown.
Long-Term Strategies
The following strategies represent the Muskegon Downtown Development Authority's priorities
for the 2020/2021 and 2021/2022 fiscal years (July 2020 through June 2022).
In general, the DDA intends to concentrate on developing and promoting varied living options,
pursuing unique urban retailers in the digital Amazon world, creating entertainment-food-
beverage options to enhance a dynamic nightlife, and seeking recreational opportunities to
compliment the Muskegon Lakeshore.
Promoting and developing
• Living - Already offering subsidized housing for seniors and families, downtown needs to
develop various market rate, student, "missing middle" and workforce development
housing options within the DDA district. Both marketing and financial incentives of the
short-term strategies can support promotion of living downtown.
• Retail Business Attraction - Research and Strategic Planning - Invest in a market study
to research, analyze and prioritize the types of retail businesses to attract to
Muskegon's downtown. This work should also include the development of an attraction
program, as well as urban retail training for owners and managers, and customer service
training for employees of businesses within the Downtown Development Authority's
boundaries. One specific opportunity would be to attract an outdoor recreation
outfitters or urban outfitters into the downtown to serve the Lakeshore region, as part
of the Muskegon Lakeshore Chamber of Commerce's 2019-2020 Take It Outdoors
initiative.
• Entertainment - Building on the strengths of the L.C. Walker Arena, Fraunthal Center
and The Block to name three, the DDA will continue to attract varied and diverse food
and beverage businesses and market downtown Muskegon's special events, festivals
and activities. This will support the opening of the new convention center.
• Recreation - Two specific recreational pursuits can be further developed in the DDA
district - bicycling and paddling- due to the Lakeshore Trail and the Muskegon Lake
waterfront. Recreational improvements could include a children's playgrounds, a skate
park and a bike park. Others specifics might include:
• Connecting Downtown to the Waterfront - See description in short-term strategies
above.
• Expanded Bikeshare Program - Support the expansion of the downtown bikeshare
program that is scheduled for launch in summer, 2019. The Downtown Development
Authority's role may include:
o Investment in additional bikes
o Investment in additional bike rental locations to expand the service outside
the core downtown area (i.e. Lakeside, Pere Marquette Beach)
o Financial support for ongoing management and upkeep of bike equipment
and rental locations
Other Strategies
• Improve Downtown's Walkability/Accessibility- Work with the City of Muskegon to
support improved walkability and handicapped accessibility throughout the downtown
area, including sidewalks and access to businesses, parks and other public spaces.
• Wayfinding Signage - See description in short-term strategies above.
Muskegon Downtown Development Authority
Agenda item E for 4-12-22
Future funding for downtown
Requesting party: City Economic Development
Outline of request: Staff is asking the DDA board to begin discussing ongoing and sustainable
funding sources for downtown services such as snow removal, trash removal, landscaping,
marketing-promotion, parks support, event support and professional management to name a
few.
Background: Currently, downtown has three areas of funding- the DDA, the BID and social
district sticker fees. All together it adds up to roughly $540,000 a year. The BID special
assessments run through Dec. 31 2023. The BID board is reluctant to recommend any more
special assessments beyond 2023. The DDA tax increment revenues will not grow
proportionately with much of the new downtown investment-development as incentives such
as brownfield redevelopment plans will receive the increments first.
Staff comments: The increased investment and development downtown brings more residents
and visitors into the DDA district. That will only grow in the coming years. There needs to be a
way of paying for the increased services businesses, residents and visitors will demand.
Staff recommendation: To begin to map out a strategy for future downtown funding.
Suggested motion: This item is for discussion only.
Consolidation of Downtown Agencies
Downtown Development Authority: Took over the marketing, promotion, events
and streetscape work of the Downtown Business Improvement District in 2021.
Revenues:
• Property Tax Capture: $310,278
• BID Income: $17,000
• Total: $327,287
Expenditures: Estimated fund balance 12.31.2022: $126,263
• Manager's salary-benefits: $95,500
• Streetscape: $15,000
• Downtown Parks: $9,000
• Marketing-promotions: $32,000
• Misc. operating-office: $9,000
• Mercy Health Arena debt payment: $130,000
• Contingency: $36,787
91
• Total: $327,287 \H~MUSKEGON
'iCil
DOWNTOWN DEVELOPMENT AUTHORITY
Consolidation of Downtown Agencies
Downtown Business Improvement District: Reduced its footprint, renewed for
another three years and narrowed its work plan to sidewalk snow removal, summer
landscaping and support of downtown management.
Revenues:
• Special assessments: $114,888
Expenditures:
• Snow removal: $65,000 Estimated fund balance 12.31.2022: $83,537
• Landscaping: $30,000
• Administration: $17,000
• Contingency: $2,888
• Total: $114,888
l !-o hio
mus~egon
t1) t1Jl'v
USINESS IMPROVEMENT ~ ISTR ICT
2022 Downtown Social District
estimate budget
based on a uniform
75-cent a sticker price
Revenues (sticker sales estimate: 159,208) $119,406
(based upon 2021 of 138,442 actual plus 15%)
Expenditures
Transition to permanent street signs $15,000
Private security $17,000
Stickers $10,000
Sanitation (staffing): trash and litter $56,000
Sanitation (equipment rental): trash and litter $13,000
City Special Event costs *TBD
Total Expenditures $111,000
Estimated fund balance $8,406
* City special event cost charged to the Social District need
to be determined by administration/city commission
Affirmative Action
(231 )724-6703
MUSKEGON
FAX (231)722-1214
Assessor/
Equnlization Co.
(231)724-6386
FAX (231)724-1129
Cemetery/Forestry
(231 )724-6783
FAX (231)724-4188
West 111ichigan's Shoreline City
www.shorettnoclty.com
City Mnnager
(231 )724-6724
FAX (231)722-1214 Feb.23,2022
Clerk
(231 )724-6705 To Whom It May Concern,
r
FAX (231)724-4178
Comm. & Neigh.
Services As manager of the Muskegon Downtown Development Authority, I am writing to express the DDA's
(231 )724-6717 support for grant funding to construct a paved non-motorized pathway in the City of Muskegon
FAX (231)726-2501
named the Laketon-Lakeshore Trail Connector (LLTC) along Sanford and Terrace Streets.
Computer Info.
Technology
(231 )724-4126 Once completed the LLTC will complete a major missing gap in the regional trail network between
FAX (231)722-4301
the Laketon Trail (City Extension of the Musketawa Trail) and the Lakeshore Trail (City Extension of
Engineering the Berry Junction/ Hart-Montague Trail). The completion of a connection between these two
(231 )724-6707
FAX (231)727-6904 regional trail systems has long been a goal of local, regional, and state organizations.
Fimmce
(23 I )724-6713 Grant funds will serve to connect several key destinations within the City including Muskegon Public
FAX (231 )726-2325 School buildings, City Hall, Downtown Muskegon amenities and the Muskegon Farmers Market.
Fire Department Specifically, for Downtown Muskegon, the trail connector links the Lakeshore Trail to the Laketon
(231 )724-6795
FAX (231)724-6985
Trail through the eastern portion of the DDA district. It is a critical link for both downtown residents,
businesses and visitors.
Human Resources
Co. (Civil Service)
(231 )724-6442 The LLTC will connect through core urban neighborhoods that serve some of the most diverse
FAX (231)724-6840
neighborhoods within the City of Muskegon. New recreational and mobility opportunities will be
Income Tax realized in these impacted neighborhoods to provide greater accessibility to the City. An additional
(23 I )724-6770
FAX (231)724-6768 benefit of the project for area residents would allow for the future extension of a trail spur south into
Mayor's Office
the core downtown of the City of Muskegon Heights.
(231 )724-670 I
FAX (231)722-1214
The planned route for the LLTC would take advantage of already programmed road diet projects on
Planning/Zoning both Terrace and Sanford Streets to place the trail entirely within existing City owned right-of-way
(231 )724-6702
FAX (231)724-6790 eliminating the need to procure property for the project. The trail would be built to current AASHTO
Police Department
standards and provide a minimum 10 FT wide paved surface. To maximize safety the trail would
(231 )724-6750 cross major state trunklines (M-46 / Apple Avenue & US-31 BR/ Shoreline Drive) at existing
FAX (231)722-5140
signalized intersections providing the safest possible connection route.
Public Works
(231)724-4100
FAX (231)722-4188 I hope that every consideration will be given to this application and that the proposal will receive
favorable action. Please do not hesitate to contact me if I can be of further assistance in this matter.
SafeBuilt
(Inspections)
(231 )724-6715 Sincerely,
FAX (231)728-4371
Treasurer
(231 )724-6720
FAX (231 )724-6768 D£iAlexander
Water Billing Muskegon DDA man . er
(231 )724-6718 Dave.alexander@shorel inecity.com
FAX (231 )724-6768
231-215-8827
Water Filtration
(231)724-4106
FAX (231)755-5290 City of Muskegon, 933 Terrace Street, P.O. Box 536, Muskegon, MI 49443-0536
http://www.shorelinccity.com
-bJ
,ll MUSKEGON
j DO\NNTO\NN DEVELOPMENT AUTHORITY
March 23, 2022
Dear MEDC officials:
The Muskegon Downtown Development Authority whole heartedly supports the City of Muskegon's
application for a Revitalization and Placemaking Grant. All of the projects in the city's RAP application
address the DDA's mission to help create a thriving downtown and waterfront.
The city's RAP application comes at a time of a historic transformation of Downtown Muskegon, despite
the Great Recession of 2008 and the COVID Pandemic of the past two years. The historic restoration,
mixed-use buildings, and placemaking elements in the Muskegon application will accelerate projects
that have been hampered by the pandemic or support projects addressing COVID issues.
Specifically, the community is fortunate that the local non-profit, Reset Ventures, has taken on the
Hackley Administration Building restoration from our K-12 school district, which was not able to
continue to maintain what is the most iconic historic structure in Muskegon. The building has structural
issues needing to be addressed with RAP support.
RAP assistance to bring four mixed-use building projects to fruition will create 200 new housing units at
a time of housing shortage, and in turn, will help working families enjoy a downtown lifestyle. The
projects also promise to address Issues of affordability.
Finally, the sidewalk improvements on West Western Avenue - the city's main downtown commercial
street -will facilitate the expansion of outdoor dining at establishments particular stressed by COVID.
If Muskegon receives the RAP funding, the Muskegon DDA stands ready to work in concert with the city
in completing the projects, which would take the historic transformation of Downtown Muskegon to a
new level. The historic restoration, new mixed-use buildings, and sidewalk improvements will serve the
community for decades to come. The Muskegon DDA urges the MEDC funding of the City of Muskegon
RAP application.
Thank you for your consideration.
Sincerely,
Dave Alexander
Muskegon DDA manager
Dave.alexander@shorelinecity.com
231-215-8827
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