Downtown Development Authority Agenda 06-14-2022

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                                                CITY OF MUSKEGON


                              DOWNTOWN DEVELOPMENT AUTHORITY


                           BROWNFIELD REDEVELOPMENT AUTHORITY


                                                REGULAR MEETING



                    DATE OF MEETING:                                   Tuesday, June 14, 2022

                    TIME OF MEETING:                                   10:30 A.M.

                    PLACE OF MEETING:                                  City Hall Commission Chambers,
                                                                       933 Terrace, Muskegon, MI




                                                          AGENDA


               Roll Call


     IL.       Approval of the meeting minutes of May 10, 2022


     I.        Brownfield Redevelopment Authority business (Peter Wills)
               A. EGLE brownfield loan for Harbor 31 (discussion)


     IV.       Downtown Development Authority business
               A. DDA financial statement 5-31-22 (City Finance)
               B. Proposed DDA 2022-23 budget (Dave Alexander)
               C. Initial report on Taste of Muskegon/LAF update (Clerk’s Office)
               D. Watch Muskegon 2.0 collaboration options for 2022-23 (Dave Alexander)


               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


                                            May 10, 2022


The meeting was held in the City Commission Chambers. Chairperson M. Bottomley called the
meeting to order at 10:45 AM and roll was taken.


MEMBERS PRESENT:               M. Bottomley, J. Riegler, M. Johnson Sr., J. Moore, H. Sytsema, L.
                               Mikesell, and J. Wallace Jr.


MEMBERS ABSENT:                (Members     excused),   D.   Pollock,   B.   Hastings,   S.   Black,   M.
                               Kleaveland


STAFF PRESENT:                 P. Wills, Director of Strategic Initiatives; D. Alexander,
                               Downtown Manager, S. Pulos, Administrative Assistant for
                               Development Services, and J. Eckholm, Director of Development
                               Services Division.


OTHERS PRESENT:


APPROVAL OF MINUTES
Motion by L. Mikesell, second by J. Moore, to approve the regular meeting minutes for April 12,
2022. Voice vote, all approved.


BROWNEIELD 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
April 30, 2022.


Staff recommendation: To accept the April 30, 2022 financial statement.


Motion: Motion by J. Riegler, second by L. Mikesell, to move to accept the April 30, 2022
financial statement.


All in favor, motion passes.
Agenda Item B: 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.


       Staff recommendation: Staff would suggest a $40,000 facade and infrastructure grant
       for 441 W. Western.


       Motion: Made by J. Riegler, seconded by J. Moore, to issue a one-time fagade 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.

       Roll Call Vote:
       M. Bottomley: Yes              J. Wallace: Yes                J. Riegler: Yes
       J. Moore: Yes                  H. Sytsema: Yes
       M. Johnson Sr: Yes             L. Mikesell: Yes


       All in favor, motion passes.




Agenda Item C: 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.

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.


Motion: Made by M. Johnson Sr., seconded by L. Mikesell, to allocate $100,000 in current fund
balance to a downtown services account for future needs,


       Roll Call Vote:
       M. Bottomley: Yes              J. Wallace: Yes                J. Riegler: Yes
       J. Moore: Yes                  H. Sytsema: Yes
       M. Johnson Sr: Yes             L. Mikesell: Yes


       All in favor, motion passes.


Agenda Item D: Staff is asking the DDA board members to offer any suggestions for a draft
2022-23 budget for the fiscal year beginning July 1.


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 recommendation: None.


       Motion: None
Agenda Item E: Information Only - Key Downtown Muskegon Social District Events for
Summer 2022.


          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
          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 1-3 (fireworks on July 2)
          Rebel Road-Bike Time: July 13-16
          Unity: Aug. 10-13
          Touch the Truck: Aug. 12
          Shoreline Jazz Festival: Aug. 26-28
          Burning Foot: Aug. 28 (afternoon pre-party)
          Polish: Sept. 2-3
          Muskegon County Latino: Sept. 10
          Irish: Sept. 15-18


Staff recommendation: None.
Motion: None


Agenda Item F:       Information Only: Watch Muskegon 2.0/Livability marketing materials
shared.



PUBLIC PARTICIPATION
None.


OTHER
None.


AJOQOURNMENT
11:15 am
                  Muskegon Brownfield Development Authority:
                          BRA Agenda Item A for 6-14-22


                          Harbor 31 LLC, 105 Viridian Drive
               Viridian Shores at Harbor 31 Redevelopment Project
    DISCUSSION ONLY
                  — EGLE Brownfield Redevelopment Loan Project Proposal
                                      Request




Requesting party: Harbor 31 LLC


Discussion:
To determine if EGLE would be interested in providing Brownfield Redevelopment
Loan (BRL) funds for the Viridian Shores at Harbor 31 Redevelopment Project.


This issue was a discussion item at the 5/11/21 DDA-BRA meeting.


Background: There are significant environmental costs associated with
redeveloping the property. These costs total approximately $2,000,000 and relate
to the installation of vapor intrusion mitigation systems beneath proposed
structures, construction of engineered barriers to protect against direct contact
exposures, proper management of contaminated soil and groundwater during
construction activities, and associated consultant oversight and reporting.


Over the past year, EGLE, the City, and the developer have discussed the pursuit
of an EGLE Brownfield Loan to offset some of these expenses. The maximum loan
request is $1,000,000.


EGLE Brownfield Redevelopment Loan Process and Terms:
e   The application process begins with the submittal of a Project Proposal for
    review by EGLE to determine if the project meets their program criteria.
    Submitting a Project Proposal to EGLE does not obligate the City to assuming a
    loan.
e   Inthe event EGLE desires to offer BRL funding for this project, a formal loan
    application must be prepared and submitted to EGLE for processing. The
    application requires a resolution from the City.
EGLE BRL terms are 15 years with no interest accrual or payments during the
first five years. The interest rate is set at 1.5% for the entirety of the loan.
EGLE BRLs are typically paid back via new tax increment revenues from the
redevelopment project. This would be formalized through a Brownfield Plan
Amendment and Act 381 Work Plan.
The City of Muskegon, as the applicant, would be the BRL holder. A Developer
Agreement between the City and developer would be required detailing the
BRL repayment plan.
Once an application is submitted to EGLE, it takes approximately three months
to process and award BRL funds.
The BRL funds serve as a reimbursement for eligible environmental activity
costs incurred by the developer under EGLE approved work plans. BRL funds
can also be used to reimburse administrative costs by the City and third-party
oversight by a professional environmental consultant.
                                                                                               1515 Arboretum Drive, SE
        |S                      e(               q                                         Grand Rapids, Michigan 49546
           Engineers | Architects | Scientists | Constructors                                616.575.3824 | fishbeck.com




EGLE Brownfield Loan Project Proposal Request
Harbor 31 Redevelopment Project
Muskegon, Michigan
05 May 2021


Project Information

   e    The developer for the Harbor 31 project proposes a mixed-use redevelopment of the former Continental
          Motors property.
   e      Private investment is estimated at $110,000,000, which will result in a substantial increase in tax base and
          numerous new jobs for the community.
    e   There are significant environmental costs associated with redeveloping the property. These costs total
          approximately $2,000,000 and relate to the installation of vapor intrusion mitigation systems beneath
          proposed structures, construction of engineered barriers to protect against direct contact exposures,
          proper management of contaminated soil and groundwater during construction activities, and associated
          consultant oversight and reporting.
    e     EGLE, the City of Muskegon, and the developer have discussed the pursuit of an EGLE Brownfield Loan to
          offset some of these expenses. The maximum loan request is $1,000,000. See attached table.


EGLE Brownfield Redevelopment Loan Process and Terms

    e     The EGLE Brownfield Redevelopment Loan (BRL) application process begins with the submittal of a
          Project Proposal for review by EGLE to determine if the project meets their program criteria. Submitting
          a Project Proposal to EGLE does not obligate the City of Muskegon to assuming a loan.
    e     Inthe event EGLE desires to offer BRL funding for this project, a formal loan application must be prepared
          and submitted to EGLE for processing. The application requires a resolution from the City.
    e     EGLE BRL terms are 15 years with no interest accrual or payments during the first five years. The interest
          rate is set at 1.5% for the entirety of the loan.
    e     GLE BRLs are typically paid back via new tax increment revenues from the redevelopment project. This
          would be formalized through a Brownfield Plan Amendment and Act 381 Work Plan.
    e     The City of Muskegon, as the applicant, would be the BRL holder. A Developer Agreement between the
          City and developer would be required detailing the BRL repayment plan.
    e     Once an application is submitted to EGLE, it takes approximately three months to process and award BRL
          funds.
    e     The BRL funds serve as a reimbursement for eligible environmental activity costs incurred by the
          developer under EGLE approved work plans. BRL funds can also be used to reimburse administrative
          costs by the City and third-party oversight by a professional environmental consultant.


Request

To determine if EGLE would be interested in providing BRL funds for the Harbor 31 Redevelopment Project,
submittal of an EGLE Brownfield Project Proposal is requested.

Respectfully Submitted by: Roman Wilson — Brownfield Consultant, Fishbeck
                                                                                                  Harbor 31 Redevelopment Project
                                                                                                             Muskegon, Michigan


laser TABLE :                               ;                        a
Provide the project budget in the table below. Change, add, or delete activities as appropriate for the project. Column specific notes provided below table.
Column Specific Notes:

                         EGLE RPF Grant: This funding can only be used for Refined Petroleum Fund related                                       i           Talk to your br           Id coordinator to confirm appropriate funding source.

                         EGLE 201 Grant: This funding can be used for non-petroleum sites. Talk to your brownfield coordinator to confirm appropriate funding source.
                         EGLE Loan: This funding can be used for refined petroleum or non-petroleum sites with redevelopment potential.
                         Tax Increment Financing (TIF) tied to EGLE Loan: If TIF is proposed to reimburse the loan, that portion of the TIF will also be reflected in the loan amount.
                         Other TIF: Any TIF dollars that will NOT be used to reimburse the EGLE loan, including non-EGLE TIF would be reflected here.
                         Local Funds: Any funding the community is contributing to the project.
                         Developer Funds: Funds the developer is investing into the project.
                         Other: Include other federal, state, private, etc. dollars that are not already reflected.
                                                                                                                                                          Prop       Funding         Mechani

                                                                    TOTAL
TASK (Activity)                                                     Expected
                                                                     xpected
                                                                             Cost
                                                                               Cos!
                                                                                    EGLERPF            | EGLE 204                EGLE Loan
                                                                                                                                                     TiFtiedto — JOerTF     (oot), CcatFunds
                                                                                                                                                                 tied to EGLE
                                                                                                                                                                                                                [Developer
                                                                                                                                                                                                                       x
                                                                                                                                                                                                                           Funds | other Funds
                                                                                          Grant              Grant                                   EGLE Loan                                 p       ))              )               (list sources)
                                                                                                                                                                           Loan)

                                                                                                                  Assessment/Investigation

BEA / Site Assessment                                                                                                                                                           $34,200                               $34,200


Due Care Planning                                                    $         50,000                                             $        50,000]    $          50,000



Other assessment activity                                            $         20,000                                             $        20,000]    $          20,000


                                                                                                                     Demolition/Abatement


Demolition                                                           $         40,000                                             $        40,000]    $          40,000


Abatement



Other demolition/abatement activity


                                                                                                                           Due Care



Transport/disposal of contaminated soils


Contaminated groundwater management
during dewatering activities                                         $      140,000                                               $       110,000]    $      110,000]       $      200,000                       $          200,000


Vapor mitigation systems                                             $         500,000                                            $       500,000}    $      500,000]       $      600,000                       $          600,000



Engineered barriers                                                  $          80,000                                            $        80,000]    $          80,000]    $      100,000                       $          100,000:



Other due care activity


                                                                                                                       Response Activity

Excavation/transportation/ disposal of
contaminated soils


Other response activity



Contingency (up to 15% of grant/loan)                                $         120,000                                            $       120,000]     $     120,000]       $       50,000                       $           50,000


        y
3rd Party      Envi     tal Oversight
             Environmental    Oversight          (up to 5%
                                                (up                  $          46,000                                            $        46,000]    $          46,000
of grant/loan)


Administration (up to 3% of grant/loan)                              $          28,980                                            $        28,980]    $          28,980



 EGLE Project Sign (grant/loan requirement)                          $             500


Grantfant Cl loseout It R Report § (grant/loa
                                       nt/loan                       $           3,000                                            $         3,000|     $          3,000
| requirement)


 Non-Environmental Eligible Activities                                                                                                                                      $ 3,119,180                           $        3,119,180



 Construction / Professional                                                                                                                                                                                      $    105,899,620



 TOTAL                                                                $        998,480]    $             +    $             -|    $       997,980]     $      997,980]      $ 4,069,180]           $        :         $110,000,000}]     $              :




 NOTE: If grant/loan funded activities are planned to be performed by the project developer's consulting firm, EGLE expects that the applicant will hire its own environmental oversight professional.
 Exceptions will be                 d in low-risk            ions        ona       ‘by-        basis. The envi             t)         g                   I's fees are eligible for reimbursement with the proposed grant or loan. Please
 include an environmental oversight professional in the budget if applicable.
        atOSNuLvDG RCtawhOLosve
CLINTSO ILEM
                     Muskegon Downtown Development Authority

                                Agenda item A for 6-14-22

                    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 May 31, 2022.

Background: The DDA finances remained in a strong position as it was entering the final month
of the current fiscal year. Since your last meeting, the city Finance Department has posted
$17,000 administrative service fee as income from the Business Improvement District. Finance
also has pulled $130,000 from the DDA for the arena debt payment obligation. The current
statement does not reflect your past action of $10,000 for Watch Muskegon 2.0 support. Your
May action of putting $100,000 aside for future downtown services is reflected in the $176,665
fund balance.

Staff comments: Finance does not want to make a line item for the future services funds if they
are not being spent this year. However, your agenda Item C from the May 10 meeting clearly
shows your intention to spend those funds on downtown services in the coming fiscal years.

Staff recommendation: To accept the May 31, 2022 financial statement.

Suggested motion: | move to accept the May 31, 2022 financial statement.
                    DDA FINANCIAL FOR 05/31/2022




                                                                                                                                       FY TOTALS

Revenues                                           FY 2020-21 BUDGET|          FY2020-21 ACTUAL            FY2021-22 BUDGET           May 31, 2022
Tax Increment                                      S       490,931.00 | $              490,931.00 | $              310,287.00 | $           321,446.00
Reimbursement - State                              iS                -                                iS                   -    S                    -
Event Revenue*                                                                                        S                    -    iS                   -
Trans From Capital Projects Fund                                                                      S                    -    S                    -
Interest Income                                    S           100.00 | $                    578.94 | S                    -    S               218.75
Fundraising Revenue
BID Income (or $50,000 levy)**                     iS      112,653.00 | $               50,000.00 | $               17,000.00 | $            17,000.00
Sponsorship                                        S                 -                                S                    -    iS                   -
Former Mall Brownfield Income (GF)                 S                 -                                S                    -    [S$                  z
Total                                              iS      603,684.00 | $              541,509.94 | $              327,287.00 | $           338,664.75


Expenses                                                FY 2020-21             FY2020-21 ACTUAL               FY 2021-22               FY 2021-22
Business Dev. Manager Wages                        S        73,781.00 | $               75,024.35                               iS           68,002.20
Trans to GF - Marketing, Events, Overhead          S                 -                                S                    -
FICA (7.65%)                                       S          5,848.00 | $               5,651.85 | $                      -    S             5,390.96
Workers Comp (2%)                                  iS          410.00 | $                    430.76 | $                    -    iS              350.18
Insurance                              _           S          7,748.00                                S                    -    S             3,809.70
Residency Bonus (4%)                               S          2,743.00 | $               4,881.40 | $                      -
Life Insurance (0.24%)                             S           270.00 |} $                   301.84 | $                    -    S               295.87
401(k) (6%)                                        S          8,000.00 | $               6,756.40 | $                      -    S             6,438.24
Total Salaries/Benefits                            $        98,800.00 | $               93,046.60 | $               95,500.00 | $            84,287.15
Walkability Improvements                           $                 -                                $                    -
Streetscape/Wayfinding / Walkability               S                 -              $3,000            S             15,000.00 | $            10,625.00
Public Art (Downtown Initiative)                   $                 -                                $                    -
Landscaping
Snow Removal                                       iS                -
Facade Program                                     iS                -                                                          iS                   -
Financial Incentives                               S                 -                                                          S                    -
Downtown Park(s)****                               S                 -    S              3,598.80 | S$               9,000.00 | $             6,911.78
Marketing/Promotions                                S                -    S              9,703.22 | $               32,000.00 | $            12,467.47
Blight                                              s                :
Office Space and Misc Operating                    S                 -    iS             6,909.23 | $                9,000.00 | $             7,183.82
Total Recurring Costs                              $s                -    S             23,211.25 | $               65,000.00 | $            37,188.07
Morris Street Lot                                  iS                -                                 S                   -     S                   -
Taste of Muskegon                                   $                -                                 $                   -
Lakeshore Art Festival                                                                                iS                   =
Projects and Events                                 $                -    $                     -      $                   -     $                   -
County Debt Payments ($1M)                          $                -    Ss           134,072.00 | $                      -
Mercy Health Arena HVAC/Roof*******                 S       208,051.00 | $             208,051.00 | $              130,000.00 | $           130,000.00
Other Debt Payments (smartzone)                    S              -                                 iS                    -     iS                 -
Total Debt Payments                                Ss      208,051.00 | $              342,123.00 | $              130,000.00 | $           130,000.00
Total Expenses                                     S$      306,851.00 | $              458,380.85 | $              290,500.00 | $           251,475.22


|Net Rev/Expenses                              |$          296,833.00 | $               83,129.09 | $               36,787.00 | $            87,189.53 |

|Fund Balance at Beginning of Year             |                         | $             6,347.00 |                            IB            89,476.09 |

|Fund Balance at End of Year                   |                         | $            89,476.09 |                            IB           176,665.62 |




            O:\Planning\COMMON\DDA - BRA\DDA - BRA 2022 -- current year\6142022 DDA-BRA meeting\DDA financial statement 5-31-22
                    Muskegon Downtown Development Authority

                                Agenda item B for 6-14-22

                             Recommended 2022-23 budget




Requesting party: City Economic Development

Outline of request: Staff is asking the DDA board members to approve a 2022-23 fiscal year
budget that would begin July 1, 2022.

Background: The draft budget is in your agenda packet and is the last column of the spread
sheet. It reflects the discussion and consensus at your May meeting. Revenues are estimated
at status quo at $338,446. Expenditures are estimated at $361,365, more than the current fiscal
year budget and current spending as you close out your year. The additional spending draws
upon your significant fund balance. The $22,919 deficit (net revenues/expenses) leaves the
DDA with approximately $150,000 in estimated fund balance as of June 30, 2023. Of that
amount $100,000 has been put aside by the DDA board for future downtown services in the
coming years as the Business Improvement District is expected to discontinue operations as of
Dec. 31, 2023. The largest expenditure is the $130,000 arena bond payment, next to the
salaries and benefits, which are estimated to be up 3 percent compared to the current fiscal
year based upon Finance Department projections. The major change in the budget is $75,000
for a facade program. Staff will need direction from the board on the intention and parameters
of such a program. Staff will then provide a program recommendation for board approval and
implementation in the next fiscal year. The marketing and promotion line item in the
recommended budget is reduced to reflect the ending of marketing services purchased from
the Muskegon Lakeshore Chamber of Commerce.

Staff comments: The DDA board may amend the budget recommendation as desired before
approving next fiscal year’s spending plan.

Staff recommendation: Approve the DDA budget for fiscal year 2022-23.

Suggested motion: | move to approve the recommended (amended) DDA budget for fiscal year
2022-23.
         DDA FINANCIAL FOR 05/31/2022
         AND PROPOSED 2022-23 BUDGET




                                                                                                              FY TOTALS

Revenues                                               FY2020-21 ACTUAL           FY2021-22 BUDGET           May 31, 2022             Recommended 2022-23 BUDGET
Tax Increment                                     iS          490,931.00 | $              310,287.00 | $           321,446.00 | $                        321,446.00
Reimbursement - State                                                      S                     -     iS                 -     S                               -
Event Revenue*                                                                $                   -    $                    -     $                             5
Trans From Capital Projects Fund                                              $                   -    $                    -     S                             -
Interest Income                                   S                578.94 | $                     -    iS              218.75 | $                               -
Fundraising Revenue
BID Income (or $50,000 levy)**                    S             50,000.00 | $              17,000.00 | $            17,000.00 | $                         17,000.00
Sponsorship                                                                   $                   -    |$                   -     |$                             :
Former Mall Brownfield Income (GF)                                            S                   -    S                    -     $                              -
Total                                             $            541,509.94 | $             327,287.00 | $           338,664.75 | $                        338,446.00


Expenses                                               FY2020-21 ACTUAL              FY 2021-22               FY 2021-22               Recommended 2022-23 Budget
Business Dev. Manager Wages                       S             75,024.35                              $            68,002.20
Trans to GF - Marketing, Events, Overhead                                     $                   -                               $                              -
FICA (7.65%)                                      s              5,651.85 | $                     -     1s           5,390.96 | $                                -
Workers Comp (2%)                                  S               430.76 | $                     -     S              350.18 | $                                -
Insurance                                                                     $                   -     S            3,809.70 | $                                -
Residency Bonus (4%)                               S             4,881.40 | $                     -                               S                              .
Life Insurance (0.24%)                             S               301.84]    $                   -     S              295.87 | $                                -
401(k) (6%)                                        5             6,756.40 | $                     =     |s           6,438.24 | $                                ;
Total Salaries/Benefits                            $            93,046.60 | $              95,500.00 | $            84,287.15 | $                         98,365.00
Walkability Improvements                                                      $                   -                               $                              -
Streetscape/Wayfinding / Walkability                                          $            15,000.00 | $            10,625.00 | $                         15,000.00
Public Art (Downtown Initiative)                                              S                   -                               iS                             -
Landscaping                                        $             3,000.00
Snow Removal
Facade Program                                                                                          $                   -     $                       75,000.00
Financial Incentives                                                                                    $                   =
Downtown Park(s)****                               $             3,598.80 | $               9,000.00 } $             6,911.78 | $                          9,000.00
Marketing/Promotions                               S             9,703.22 | $              32,000.00 | $            12,467.47 | $                         25,000.00
Blight
Office Space and Misc Operating                    S             6,909.23 | $               9,000.00 | $             7,183.82 | S                           9,000.00
Total Recurring Costs                              $            23,211.25 | $              65,000.00 | $            37,188.07 | $                        133,000.00
Morris Street Lot                                                             $                   -     |$                  -     |$                             :
Taste of Muskegon                                                             $                   -                               $                              -
Lakeshore Art Festival                                                        $                   -                               $                              -
Projects and Events                                $                   -      $                   -     $                   -     $                              -
County Debt Payments ($1M)                         S           134,072.00 | $                    -                              $                                -
Mercy Health Arena HVAC/Roof*******                S           208,051.00 | $             130,000.00 | $           130,000.00 | $                         130,000.00
Other Debt Payments (smartzone)                                             $                    -     $                  -     $                                -
Total Debt Payments                                $           342,123.00 | $             130,000.00 | $           130,000.00 | $                        130,000.00
Total Expenses                                     S           458,380.85 | $             290,500.00 | $           251,475.22 | $                        361,365.00


|Net Rev/Expenses                                | $            83,129.09 | $              36,787.00 | $            87,189.53 | $                         (22,919.00)|

|Fund Balance at Beginning of Year               |$              6,347.00 |                           | $           89,476.09 |                                        |

|Fund Balance at End of Year                     | $            89,476.09 |                           |$           176,665.62 |                                        |




                       O:\Planning\COMMON\DDA - BRA\DDA - BRA 2022 -- current year\6142022 DDA-BRA meeting\DDA proposed budget 2022-23
                    Muskegon Downtown Development Authority

                                 Agenda item D for 6-14-22

                        Suggested marketing options for 2022-23




Requesting party: City Economic Development

Outline of request: Staff will provide information on the direction of the limited DDA marketing
and promotion line item for the next fiscal year.

Background: The recommended DDA 2022-23 fiscal year budget has a $25,000 line item for
marketing and promotion. Staff would use those funds to continue with the downtown
website. There is discussion with the Watch Muskegon 2.0 group to coordinate websites in the
next year that could include downtown and be part of an overall community upgrade. More on
that as the year progresses. | see the DDA having a similar Muskegon County CVB ad in the
travel guide but a reduced presence in the Livability magazine. There could be from $18,000 to
$20,000 remaining in the budget after those items are covered. | would suggest continuing to
look at way to collaborate with Watch Muskegon 2.0 next year to coordinate messaging and get
a bigger reach for your dollars. You already have invested $10,000 from this year’s budget on
the initial launch of digital media buys. For next year, staff has explored Gemini Publications (GR
Magazine and Blue) and potential of targeted email and website content. West Michigan
billboards are another potential. The messaging for downtown should be living downtown,
social district, restaurants and culture/arts. Events now post COVID should be on their own for
marketing. Staff recommendations will come as the year progresses looking to leverage DDA
resources as much as possible.

Staff comments: None

Staff recommendation: None.

Suggested motion: None

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