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Downtown Muskegon Business Improvement District
Meeting Agenda
July 25, 2016
380 Western Ave., Suite 202 Muskegon, MI at 4 PM
1) Call to Order
2) Consent Agenda
a) Approval of Agenda
b) Approval of Minutes from the March 22, 2016 Meeting
c) Financial statements as of May 20, 2016
3) Public Comment (on an agenda item)
4) Unfinished Business
a) Update of BID activities for landscaping, planters, signs and events.
b) Rebel Road video
c) Review the timeline for the approval of the extension of the BID
5) New Business
a) Consideration of a proposal for extension of the BID beyond 2016 with
recommendation going to the Muskegon City Commission.
6) Other Business
a) Update on the cruise ships this summer
b) Next meeting is Tuesday Sept. 27, 2016 4 p.m. chamber training room, 380 W.
Western Ave. Suite 202, Muskegon, MI or at the call of the chair.
7) Adjournment
Downtown Muskegon Business Improvement District
Meeting Minutes
May 24, 2016
380 W. Western Ave., Suite 202 Muskegon, MI at 4 PM
1) Call to Order: 4:00 PM
2) Attendance:
Doug Pollock (Chair), Justin Clark (VC), Bob Tarrant, Gary Post, Bruce Lindstrom, John
Riegler and Connie Taylor
Excused Absent(s): Mike Hennessy and Frank Peterson
Guests: Dave Alexander, Downtown Muskegon Now director; Ellen Berends, Downtown
Muskegon Now events coordinator; Cindy Larsen, Muskegon Lakeshore Chamber of
Commerce; Ed Garner, Muskegon Area First; Cathy Brubaker-Clarke, city of Muskegon;
and Dennis Lohman, Northwester Industrial sales.
3) Consent Agenda
a) Approval of Agenda, minutes from March 22, 2016, and acceptance of the financial
statements as of May 20, 2016.
Motion: Bruce Lindstrom
Support: John Riegler
Vote: All voted in favor
4) Public Comment (on an agenda item) — None. The board chose to leave the floor open for
the whole meeting allowing attendees to participate as they like.
5) Unfinished Business
a) BID update from Dave Alexander, Downtown Muskegon Now. As directed by BID
board, Alexander prepared an RFP for district landscaping services for 2016. There
were four proposals received. Proposals were reviewed and selected by Alexander
and BID Chairman Doug Pollock. H&H Landscaping of North Muskegon received the
2016 summer contract $10,570. Alexander also signed a contract with O’le Henry
Gardens of Norton Shores to prepare and provide flowers for 27 planters in the district.
The contact was for $1,900. The mowing of the three Downtown Muskegon
Development Corp. lots on Western Avenue will be handled this year separately by the
DMDC.
6) New Business
a) The BID board was presented a Letter of understanding between the BID board and
the Downtown Muskegon Now board for the DMN to operate and manage the BID.
The DMN board approved the letter of understanding in April. Bob Tarrant asked about
the BID board as it relates to set the district, establishing the assessments and
approving the annual budget. A motion to approve the letter of understanding was
made.
Motion: Gary Post
Support: Bob Tarrant
Vote: All voted in favor
b) With the approval of the letter of understanding, Dave Alexander proposed the use of a
portion of the $24,000 in the 2016 BID budget for marketing, promotion and events. As
discussed in the March 22 meeting, $2,500 will be used to sponsor the first quarter of
the First Fridays events in downtown, $4,000 to upgrade the downtown website
through LongerDays.com, $350 a month for newsletter/mail list/social media
assistance through LongerDays.com. From the BID’s $7,000 sign/banner budget, the
BID proposes two new map signs for $2,800 through Graphics House. Item was for
information.
c) Dave Alexander explained that the current BID is for one year and that the BID board
and the city of Muskegon needs to begin the process of renewal if the BID is to be
extended beyond Dec. 31, 2016. The hope of DMN and the city is to extend for three
years. Alexander said that DMN will need administrative fees going forward where
none are being charged for 2016. Pollock said that Alexander needs to meet with city
officials and provide a timeline of what needs to happen for renewal of the BID.
7) Adjournment
5:05 PM
No Objection
Minutes produced and submitted by Dave Alexander, executive director of Downtown
Muskegon Now.
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To: BID Board and DMN Board
From: Dave Alexander, DMN executive director
Re: Business Improvement District extension
Date: June 2016
| had a very productive meeting with city of Muskegon staff from
Finance and Planning/Economic Development on renewing and
extending the Business Improvement District, which was given only a
one-year trial by the Muskegon City Commission in January.
Here is an outline of the process that we will all need to go through to
have the BID extended for a recommended three years. This three-year
extension was unanimously endorsed by the DMN board at its May
meeting.
The timeline looks like this:
July 1: The city’s Finance Department will send out a reminder invoice
for all of those who have not paid their 2016 assessment. It will include
a note from the BID board explaining that assessments not paid by Oct.
31, 2016 will be put on the winter tax bill and an update of downtown
BID activities.
July 25 (tentative): The BID board meets and must make some key
recommendations such as the scope and outline of the district, the
number of years of the expanded BID, the rate and maximum cap per
each property classification, an annual budget for three years, and how
the assessments will be billed (either on winter tax bills from the start
or invoiced over the year as in 2016). | will make recommendations on
each point in consultation with city officials.
Aug. 1: DMN executive director verifies the assessment roll for the city
assessor and provides the annual budget and proposed assessment
rate/maximum cap.
Aug. 27: The city assessor completes the “benefit analysis summary”
for use in the notices and the public hearings.
Sept. 1: Two notices of the Sept. 27 public hearing on the creation of
the district are published in The Muskegon Chronicle.
Sept. 16: Notices of the proposed district and likely assessments for
each property are mailed to property owners by the city.
Sept. 27: A public hearing on the creation of the district and vote by the
Muskegon City Commission.
Oct. 1: Two notices of the Oct. 25 public hearing on the approval of the
district are published in The Muskegon Chronicle.
Oct. 14: Notices of the proposed assessments for each property are
mailed to property owners by the city.
Oct. 25: A public hearing on the final assessment rolls and vote by the
Muskegon City Commission.
Oct. 31: If approved, assessment invoices will be mailed or assessments
placed on winter tax bills.
Jan. 1: The new BID year begins, if approved by the Muskegon City
Commission.
To: BID Board
From: Dave Alexander, DMN executive director
Re: BID extension proposal
Date: July 22, 2016
As discussed at our May BID board meeting, we are beginning the process of extending the BID
beyond 2016. A timeline for BID extension is attached in this agenda packet and will be
discussed under unfinished business on the July 25 agenda.
The Muskegon City Commission with votes in November 2015 and January 2016, created the
Business Improvement District for one year. Two categories of properties were to be assessed:
“A” properties that are retail, commercial and office that receive the most benefit from
downtown and “B” properties such as industrial and automotive in the district but with less
direct benefit. Under the current one-year BID, the special assessment for A properties is 8
cents per square foot of land for a maximum of $3,000 per parcel and for B properties 2 cents
per square foot of land for a maximum of $750 per parcel.
A further restriction is in the definition of a “parcel.” | am told by the former downtown
manager that the 2016 assessment roles were determined under a formula that took all
contiguous parcels, owned by the same entity and with the same business operation treated as
a single parcel as it relates to the maximum assessment. So for example, The Holiday Inn has
three parcels that are being used to operate the hotel and conference center. Those parcels
combine and are as a group are subject to the $3,000 maximum for A properties.
Your task as a BID board in the process of extending the BID beyond 2016 begins at the July 25
meeting. The board needs to provide a recommendation to city commissioners and staff as to
what to propose for public hearings in September and October. Be aware that the Downtown
Muskegon Now board unanimously approved at its June meeting a resolution of support to
extend the BID beyond 2016. That resolution was in concept and not tied to any of the
proposed details.
The overall rationale for an extended BID is that as downtown Muskegon develops, there needs
to be a sustainable and predictable level of funding for services and improvements for
downtown. The downtown and city are limited as to support from the current Downtown
Development Authority due to repayment of past debts. It was determined by Downtown
Muskegon Now management and board and the city of Muskegon that a BID was the best way
to provide the support for what needs to happen in downtown to take our central business
district to new levels. As development occurs, downtown needs to be ready.
| have meet with city staff to determine the timeline as directed by the BID board in May. | then
meet with City Manager Frank Peterson and Mayor Steve Gawron to see what they would want
the BID board to consider and what might be able to be approved by the city commission.
The BID board needs to determine: 1. How many years to extend; 2. The size and boundaries of
the district; 3. What the assessment rate and the maximums are for each property class; 3.
Approve a projected annual budget; 4. Determine the method of assessment billing and
payment.
Here are city leaders’ suggestions for the BID board’s consideration:
Years: Extension of the BID for five years.
The initial BID was for one year to see how the process worked and get reaction from
downtown property owners/businesses. Each special assessment district is difficult from a staff
standpoint in terms of the public approval process with two specific public hearings. Not having
to renew the BID on a regular basis is being sought by city staff.
District: The accompanying map shows in BLUE the existing BID with 125 parcels assessed. In
RED are the suggested expanded boundaries. That expansion of the district would create about
13 more accessed parcels including Shoreline Inn, Terrace Point, Harbor 31, Firehouse
Professional Building, U.S. 31 BBQ and Hairitage Salon.
The district has been enlarged to better define downtown and those properties that benefit
from downtown developments, activities and events.
Rate: The proposed rate increase is 25 percent. That would bring A parcels to 10 cents a square
foot with a $3,750 maximum and B parcels to 2.5 cents with a $937.50 maximum. These rates
would generate $174,393 in the expanded district.
In comparison, the status quo rate would generate $136,878 with district expansion. Without
district expansion and without a rate increase, the BID generates $115,942. The overall BID
revenue for 2016 are $125,942 based upon a $10,000 contribution to the BID by the city for its
properties in the district. That BID contribution is not in the city’s 2016-17 budget.
With the growing needs of services to create a first class downtown, more revenue will be
needed over the course of proposed BID. The BID creates a static amount of revenue based
upon rates since the assessments are on square footage of land, not size of building or value of
property assessments.
Budget: The chart below shows the spending categories for the proposed BID with revenues of
$174,393. Future budgets will be approved by the city commission and specific spending
reviewed by the BID board. BID activities would be reported annually each January.
Expenditures 2017 proposed 2016 budgeted
Snow removal $75,000 $72,000
Landscaping 520,000 $16,000
Marketing/events $25,000 $24,000
Streetscape $25,000 $11,500
Administration $25,000 none
Contingencies $4,393 $2,442
TOTAL $174,393 $125,942
Snow removal is the same as in 2016, sidewalks in the district, an alleyway and two parking lots.
Landscaping is the Western Avenue corridor and 27 planters in the district. With a BID
expansion, snow removal and landscaping services also would expand to new areas.
Marketing and events would continue to be activities such as First Fridays, annual downtown
map, website upgrades and electronic newsletter.
Streetscape is a general category that could include signs, banners, benches, trash cans,
sidewalk repainting/construction, public art, holiday decorations and the like.
Administration is a payment to Downtown Muskegon Now to administer the BID in light of
DMN budget cuts from the city of Muskegon. DMN provided staff services to the BID in 2016 at
no charge.
Payment: The BID assessments were paid through a series of two invoices from the city
treasurer. 2016 payments not made by Oct. 31 were to be put on the parcel’s winter tax bill.
Such a payment system was a helping property owners adjust to the new costs. Such invoices
are expensive and time-consuming for staff. The recommendation from the city is to put future
assessments directly on the winter tax bill, in 2017 due Feb. 15 before being subject to
delinquent fees and penalties.
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