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CITY OF MUSKEGON
DOWNTOWN DEVELOPMENT AUTHORITY
BROWNFIELD REDEVELOPMENT AUTHORITY
REGULAR MEETING
DATE OF MEETING: Tuesday, May 10, 2022
TIME OF MEETING: 10:30 A.M.
PLACE OF MEETING: City Hall Commission Chambers,
933 Terrace, Muskegon, MI
AGENDA
I, Roll Call
Il. Approval of the meeting minutes of April 12, 2022
Il. Brownfield Redevelopment Authority business
IV. Downtown Development Authority business
DDA financial statement 4-30-22 (City Finance)
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Request for support for ADA improvements at 441 W. Western (Jake Ekholm)
DDA fund balance spending plan (Dave Alexander)
Direction to staff on the 2022-23 fiscal year budget (Dave Alexander)
List of key downtown events for summer 2022 (information)
Watch Muskegon 2.0/Livability marketing (information)
V. Other business
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
April 12, 2022
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. Sytsema, F. Peterson, S. Black, D. Kalisz, and B. Hastings,
MEMBERS ABSENT: (Members excused) J. Wallace Jr., D. Pollock,
STAFF PRESENT: P. Wills, Director of Strategic Initiatives; D. Alexander,
Downtown Manager, S. Pulos, Administrative Assistant for
Development Services; L. Mikesell, Deputy City Manager, and H.
Fredericksen, Event Coordinator,
OTHERS PRESENT: C. Flanders, LAF.
APPROVAL OF MINUTES
Motion by H. Sytsema, second by B. Hastings, to approve the regular meeting minutes for
December 14, 2021. Voice vote, all approved.
BROWNFIELD REDEVELOPMENT AUTHORITY BUSINESS
Agenda Item A: Update on EGLE grant for 122 W. Muskegon ( given by P. Wills)
The “Old McDonald’s” building at 122 W Muskegon is a contaminated spot where grant monies
will be used to remediate and develop. There was a delay in 2021 with the developer. The space
was originally planned to be used for residential and retail space. An extension was granted by
the State for the project for 2019-2020. The bulk of the work will be demo. J. Eckholm
connected developer with potential investors. P. Wills is confident that there will be action over
the next 12 months. There is no TIF, and no need to come in front of the DDA for any business,
but the tax capture will still come to the DDA.
DOWNTOWN DEVELOPMENT AUTHORITY BUSINESS
Agenda Item A: Staff is asking the DDA board to review and accept the financial statement for
March 31, 2022.
Staff recommendation: To accept the March 31, 2022 financial statement.
Motion: Made by H. Sytsema, seconded by J. Moore, to accept the March 31, 2022
financial statement.
Allin favor, motion passes.
Agenda Item B: Staff is asking the DDA board to consider support of the next phase of the
Watch Muskegon campaign.
Staff recommendation: Staff would suggest $10,000 in support of Watch Muskegon 2.0
media buys, either more or less.
Motion: Made by H. Sytsema, seconded by J. Moore, to contribute $10,000 for media
buys in the Watch Muskegon 2.0 campaign.
Roll Call Vote:
M. Bottomley: Yes B. Hastings: Yes J. Riegler: Yes
M. Kleaveland: Yes J. Moore: Yes H. Sytsema: Yes
M. Johnson Sr: Yes S. Black: Yes L. Mikesell: Yes
All in favor, motion passes.
Agenda Item C: 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.
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.
Motion: Made by J. Riegler, seconded by L. Mikesell, to authorize up to $1,500 to host a
social event for the Michigan Downtown Association members.
Roll Call Vote:
M. Bottomley: Yes B. Hastings: Yes J. Riegler: Yes
M. Kleaveland: Yes J. Moore: Yes H. Sytsema: Yes
M. Johnson Sr: Yes S. Black: Yes L. Mikesell: Yes
Allin favor, motion passes.
Agenda Item D: 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. 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 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.
Motion: None
Agenda Item E: 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.
Staff recommendation: To begin to map out a strategy for future downtown funding.
Motion: None
Agenda Item F: Event updates - MMM, Taste and LAF (City Clerk event staff) see below:
MMM
- Maxed out main event space with 84 booths.
- Sponsors: 10
- Tickets sold ahead of time: 105
- Total Attendees: 2,151 (min goal was 1500)
- Peak times between 1 lam-2pm
- Estimated income: $25,604.25
- Estimated expenses: $18,176.10
- Estimated net: $7,428.15
- Great partnership with Shamrockin’ in your Shanty, St. Patty's Parade and Lumberjacks.
- Great feedback from attendees and exhibitors
- Learned a lot, would like to expand the event and hope to be able to do it again next
year!
LAF
- There is a lot in motion with LAF. This is our busiest time of the year! We are working
on ad placements, logistics, children's lane, street performers, layout, food vendors,
sponsorship, etc.
- Exhibitors Confirmed: 195 (Last year 4/12/2021 = 120 | final count 2021 via zapp =
168) We are ahead of the game!
- YTD Projected Income: $ 78,922.74
- YTD Projected Expenses: $ 74,844.16
- Secured international street artists to be part of the show this year and as part of the
Padnos Public Art Project. Announcement and press release to come in May!
Agenda Item G: Communications — two letters of support from the DDA for grants. One would
enhance bicycle paths within the district and the other would support multiple building projects
in the district with state Revitalization and Placemaking Grant funds.
PUBLIC PARTICIPATION
None.
OTHER
None.
AJOURNMENT
11:15 am
Muskegon Downtown Development Authority
Agenda item A for 5-10-22
Acceptance of financial statement April 30, 2022
Requesting party: City Economic Development
Outline of request: Staff is asking the DDA board to review and accept the financial statement
for April 30, 2022.
Background: The DDA finances remain in a strong position as there have been little change
from the April meeting. When current expected revenues and expenses are accounted on June
30, the DDA should have a fiscal year fund balance of $68,787. That is in addition to the $89,476
with which you started the year. As it stands at the end of April, you should go into the 2022-23
fiscal year with an estimated fund balance of $158,263.
Staff comments: Items later in the agenda will address the fund balance.
Staff recommendation: To accept the April 30, 2022 financial statement.
Suggested motion: | move to accept the April 30, 2022 financial statement.
DDA FINANCIAL FOR 04/30/2022
FY TOTALS
Revenues FY 2020-21 BUDGET] FY2020-21 ACTUAL FY2021-22 BUDGET APRIL 30, 2022
Tax Increment $ 490,931.00 | $ 490,931.00 | $ 310,287.00 | $ 321,446.00
Reimbursement - State $ : $ - [$s *
Event Revenue* $ - $ -
Trans From Capital Projects Fund $ + | $ a
Interest Income $ 100,00 | $ 578.94 | $ - $ 218.75
Fundraising Revenue
BID Income (or $50,000 levy)** $ 112,653.00 | $ §0,000,00 | $ 17,000.00 | 9 :
Sponsorship $ - $ - $ :
Former Mall Brownfield Income (GF) $ - $ - $ -
Total $ 603,684.00 | $ 541,509.94 | $ 327,287.00 | $ 321,664.75
Expenses FY 2020-21 FY2020-21 ACTUAL FY 2021-22 FY 2021-22
Business Dev. Manager Wages $ 73,781.00 | $ 75,024.35 $ 62,096.98
Trans to GF - Marketing, Events, Overhead $ - $ -
FICA (7.65%) $ 5,848.00 | $ 5,651.85 | $ - $ 4,948.44
Workers Comp (2%) $ 410.00 | $ 430.76 | $ - - $ 321,58
Insurance cy 7,748,00 $ - $ 3,523.41
Residency Bonus (4%) $ 2,743.00 | $ 4,881.40 | $ -
Life Insurance (0.24%) $ 270,00 | $ 301.84 | $ - |9 271.54
4011(k) (6%) $ 8,000.00 | $ 6,756.40 | $ : $ 5,907.24
Total Salaries/Benefits $ 98,800.00 | $ 93,046.60 | $ 95,500.00 | $ 77,069.19
Walkability Improvements 7 $ : $ :
Streetscape/Wayfinding / Walkability $ - $15,000 $10,625
Public Art (Downtown Initiative) $ - $ -
Landscaping $ 3,000.00
Snow Removal $ -
Facade Program $ : $ .
Financial Incentives $ : i$ :
Downtown Park(s)**** $ - $ 3,598.80 | $ 9,000.00 | $ 6,636.15
Marketing/Promotions $ - 5 9,703.22 | $ 32,000.00 | $ 12,272.47
Blight $ E
Office Space and Misc Operating $ - $ 6,909.23 | $ 9,000.00 | $ 6,349.54
Total Recurring Costs $ * $ 23,211.25 | $ 65,000.00 | $ 35,883.16
Morris Street Lot $ - $ -_|$ S
Taste of Muskegon $ - $ :
Lakeshore Art Festival $ :
Projects and Events $ - |$ - 1$ - |$ -
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 | $ 112,952.35
[Net Rev/Expenses | $ 296,833.00 | $ 83,129.09 | $ 36,787.00 | $ 208,712.40 |
[Fund Balance at Beginning of Year | [s 6,347.00 | [$ 89,476.09 |
[Fund Balance at End of Year | ls 89,476.09 | L$ 298,188.49 |
O:\Planning\COMMON\DDA - BRA\DDA - BRA 2022 -- current year\5102022 DDA-BRA meeting\DDA financials 4-30-22
Muskegon Downtown Development Authority
Agenda item B for 5-10-22
Request for ADA infrastructure funding at 441 W. Western
Requesting party: City Economic Development
Outline of request: Pigeon Hill Brewing Company is completing a $1.5 million renovation of the
former production facility at 441 W. Western, and is requesting assistance from the DDA to fund
sidewalk improvements in the public right of way in conjunction with a current city improvement
on Western Avenue.
Background: The building currently has a moderate “step up” from grade at the sidewalk
level, and this project would allow the sidewalk to be raised by filling in an existing basement
encroachment under the sidewalk and raising its grade to zero-step. This would allow better
and more aesthetic ADA compliant accessibility. Included in the packet is current site
condition photos, drawings, project expenditures, and a rendering of the proposed
completed business. The business will feature a full-service restaurant, arcade, duck-pin
bowling complex, and rental/retail space.
Socibowl Investment Summary
Whitebox and fagade 668,656
insulated roof and soft costs 156,200
Tenant improvements, furnishings
and equipment by Pigeon Hil! 659,000
Total Project 1,483,856 |
Staff comments: The DDA budget has an estimated fund balance of $68,787 in addition to
$89,476 the DDA budget began the year. The request is to support this project’s ADA, and
sidewalk infrastructure with a $40,000 facade improvement grant.
Staff recommendation: Staff would suggest a $40,000 facade and infrastructure grant for 441
W. Western.
Suggested motion: | move to issue a one-time facade grant of $40,000 to PH Holdings for
the infill of sub-sidewalk encroachments and ADA accessibility improvements in front of 441
W. Western Avenue.
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Muskegon Downtown Development Authority
Agenda item C for 5-10-22
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
$158,262 in fund balance expected going into the 2022-23 fiscal year on July 1.
Background: The DDA board discussed at its April meeting how to spend its fund balance going
forward. Much of the discussion was on the future funding and downtown service needs if the
Downtown Muskegon Business Improvement District should end special assessments Dec. 31,
2023. That would eliminate about $113,000 in downtown revenue now mainly supporting
downtown winter sidewalk snow removal and summer landscaping and planters. The
discussion included looking at new revenues from a 2-mill property tax levy in the district
allowed under state law or potential paid parking revenues sometime in the future. The
property tax levy on all properties in the district would generate about $66,000 and would
expect to create objections to the City Commission, which would have to approve. Meanwhile,
the uncertainty of future downtown paid parking provides no revenue source by the beginning
of 2024. There were no other suggestions from the DDA board members as to how to spend
the current fund balance.
Staff comments: Staff is suggesting that the DDA board takes steps this fiscal year to plan for
the expected reduction in downtown revenues in anticipation of the end of the BID beginning in
2024. The DDA could begin to provide the basic service needs of downtown such as snow
removal and landscaping after 2023. It could have funds dedicated to that transition from this
budget, its 2022-23 budget and any fund balance passed on by the BID at the end of 2023.
Resources could be available to keep current downtown services and potentially more until
other revenue sources could be agreed upon such as paid parking.
Staff recommendation: To amend the DDA 2021-22 budget to allocate $100,000 from fund
balance to an account for the transition of downtown services.
Suggested motion: | move to allocate $100,000 in current fund balance to a downtown services
account for future needs in a transition of current BID responsibilities.
Muskegon Downtown Development Authority
Agenda item D for 5-10-22
Direction for 2022-23 budget
Requesting party: City Economic Development
Outline of request: Staff is asking the DDA board members to offer any suggestions for a draft
2022-23 budget for the fiscal year beginning July 1.
Background: Staff will provide a draft budget at the June 14 meeting. The best estimate at this
time is revenues will be status quo, $327,000. Your expenditure categories have been staff
wages-benefits, streetscape-decorations, downtown parks, marketing-promotions, Trinity
Health Arena bond payment, and miscellaneous office expenses. In addition, the DDA has been
the fiduciary for the Lakeshore Art Festival and Taste of Muskegon.
Staff comments: None
Staff recommendation: None.
Suggested motion: None
Key Downtown Muskegon
Social District 2022 event dates
Parties in the Park (Hackley): June 3, 17; July 8, 22, 29; Aug. 5, 19, 26
VanDyk Mortgage Concert Series (Hot Rod): June 4, 11, 18, 25; July 1-2
(EDM), 9, 16, 23, 30; Aug. 6.
Pride Day and Pub Pedal: June 4
Taste of Muskegon: June 10-11
Miss Michigan: June 13-18
Street Performers: June 15, July 21, Aug. 18
Food Truck Rallies: June 15, July 13 Aug. 17
Lakeshore Art Festival: June 25-26
Discover Muskegon: July 1-2 (fireworks on July 2)
Rebel Road-Bike Time: July 13-16
Unity: Aug. 10-13
Touch the Truck: Aug. 12
Shoreline Jazz Festival: Aug. 25-28
Burning Foot: Aug. 28 (afternoon pre-party)
Polish: Sept. 2-3
Muskegon County Latino: Sept. 10
Irish: Sept. 15-18
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