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Downtown Muskegon Business Improvement District Meeting Agenda Sept. 27, 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 regular meeting July 25, 2016 and special meeting Aug. 1, 2016 c) Acceptance of financial statements as of Sept. 19, 2016 d) Review of DMN expenses being paid by BID e) Bill from Muskegon County Equalization for BID and BID renewal analysis f) Review of line items for BID for the final months of 2016 3) Public Comment (on an agenda item) 4) Unfinished Business a) Update of BID activities for landscaping, planters, signs and events. b) Overview of the BID renewal process to date and process for city commission approval 5) New Business a) If the City Commission approves the BID for 2017, a recommendation to contract with city of Muskegon for snow removal (November 2016-December 2018) and landscaping services for 2018 instead of hiring private contractors. See memo from Dave Alexander b) Brief discussion on how the BID board wants to organize the work on reformulating the BID for 2018 and beyond 6) Other Business a) Update on the cruise ships this summer and the Heritage District concept b) Next meeting is Tuesday Nov. 22, 2016 4 p.m. chamber training room, 380 W. Western Ave. Suite 202, Muskegon, MI or at the call of the chair. 7) Adjournment To: BID Board members From: Dave Alexander, Downtown Muskegon Now | yp Date: Sept. 22, 2016 Re: Agenda items for Sept. 27 meeting Cb - Here is some background and my comments on several of the agenda items for the Sept. 27 meeting: Financials: The first financial statement from the city is for the city’s fiscal year that began July 1. Overall for 2016, the BID has received roughly $55,000 from assessment payments and $10,000 contribution from the city. We have spent roughly $37,000 from the BID account with another $4,000 in reimbursements owed Downtown Muskegon Now. Along with the standard financial statements from the city of Muskegon’s finance department, | have also provided the board with a list of items that have been paid by Downtown Muskegon Now but that | will seek reimbursement for from the city’s BID fund. The board was made aware of these items. The insurance cost is for First Fridays and other downtown BID events such as Halloween and Holidays in the City. The Revel signage is for preparation of the graphics for the downtown map signs at Third and Western, The Depot and the Farmers Market. Another document is included in the financial report that shows our best estimate of additional BID spending until the end of the year. With all of the spending and anticipated spending, the $24,000 marketing-promotion-events budget will have about $7,800 remaining. The $72,000 snow removal budget at year’s end should have around $35,000 remaining. As for the other line items in the budget, the $16,000 landscaping might be over spending but less than $4,000 and the $7,000 banner-sign line item will have about $4,000 remaining. The BID also has been charged for work done by the city’s assessor in the Muskegon County Equalization Department to provide the analysis letter for a special assessment district. The BID was not charged for the work done in 2015 as it should have been. BID was invoiced at $550 total for the two years. | have sent that bill on to the city finance department for payment. Finally, city Finance Director Derrick Smith has told me that the city auditor has asked that the BID budget be put not on a calendar year but a city fiscal year— July 1-June 30. | will meet with Derrick and figure out what that means for us as we contemplate a 2017 budget and work plan. BID renewal: | made a presentation on downtown Muskegon to the Muskegon City Commission at the Sept. 12 work session, providing an update on projects and background on the upcoming request for a one-year, status quo extension of the special assessment district. The special assessment letters went out at the end of last week reminding those assessed of a public hearing on the recreation of the district and public hearing Tuesday Sept. 27 at 5:30 p.m. before the city commission. BID board members might want to attend after our meeting. If approved Sept. 27, the assessment rolls are before the city commissioners at a second public hearing Tuesday Oct. 25. City vs. private contract: When| arrived in this position, downtown snow removal and landscaping was provided by H&H of North Muskegon. With the BID, H&H’s proposal was accepted for snow removal starting in February and landscaping services this spring, summer and fall. Looking forward to the beginning of winter 2016-17 and 2017 landscaping, | have been talking with Muskegon City Manager Frank Peterson. Truthfully, he and the city would like a higher level of service than BID resources will allow, especially on the landscaping and beautification work. | am requesting that BID fold its resources for snow removal and landscaping in with the city of Muskegon. We can leverage what we spend on these services and in combination with city Department of Public Works provide more for the BID. H&H has done an admirable job the past nearly two years but does not have the flexibility nor the BID additional resources to upgrade our services. Frank said he will hire a downtown DPW lead worker who will be in charge of BID work and the Muskegon Farmers Market. The city has the flexibility of using its seasonal employees both in the winter and summer to bolster downtown snow removal and landscaping. You can see what the city has spent outside of BID on downtown landscaping just through its Thursday Sept. 22 “day of caring.” If the BID is extended by the city commission through 2017, | recommend the BID board authorize me to draft a letter of understanding with the city to provide sidewalk snow removal and landscape services from Nov. 15, 2016 through Dec. 31, 2017. The city might not be able to plow the parking lots in a timely manner and BID would seek a separate contract with H&H to provide that service for the three lots involved. The city would draw upon the BID’s $72,000 budgeted for snow removal and $16,000 for landscaping for 2017 and a remaining $13,500 for snow removal for the remainder of 2016. | would draft the letter with the help of the city attorney and share that with BID Chairman Doug Pollock to review and sign. Hopefully, Frank will be at our BID meeting to explain his interest in the city taking over BID work for the end of 2016 and through 2017. | think working with city DPW crews offers the BID the most cost-effective services and provides a level of quality control that is difficult for a private contractor with multiple contracts, less flexibility and fewer resources than the city. If we don’t go with the city offer to provide services, | would want to start working immediately with H&H to get quote for snow removal and landscaping services for the coming year. | don’t think we need another RFP since we did both a snow removal and landscaping RFP in 2016 and the scope of work has not changed for 2017. If working with H&H, | would like authorization to finalize a winter contract that is within the BID budget and have it signed by Chairman Doug Pollock. BID restructuring beyond 2017: Bob Tarrant has expressed interest in leading the discussion and recommendation on formulating a possible restructuring of the BID district boundaries and assessments. | would like to discuss how to proceed if the BID is renewed for 2017 at the Oct. 25 city commission meeting. This is work that needs to be done and a recommendation ready for the BID board by July 1, 2017 at the latest. The BID board needs to give its direction in this regard. Downtown Muskegon Business Improvement District Meeting Minutes July 25, 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, John Riegler and Mike Hennessy and Frank Peterson Excused Absent(s): Connie Taylor and Bruce Lindstrom Guests: Dave Alexander, Downtown Muskegon Now director; Cindy Larsen, Muskegon Lakeshore Chamber of Commerce; Ed Garner, Muskegon Area First; Cathy Brubaker- Clarke, city of Muskegon; Jon Rooks, Parkland Development and Dennis Lohman, Northwester Industrial sales. 3) Consent Agenda a) Approval of Agenda, minutes from May 22, 2016, and acceptance of the financial statements as of June 30, 2016. Motion: Frank Peterson Support: Gary Post 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. Alexander discussed the landscaping being done by H&H, planters being filled and maintained by Ole Henry Gardens, signs being installed for downtown maps at Johnson Circle, The Depot and Muskegon Farmers Market. BID also launched First Fridays with family dance party in May, highly successful street performers in June and children’s zone at the Lakeshore Art Festival in July. b) Alexander showed a Rebel Road video from Eagle Eye Photography of a “drone” video of the downtown motorcycle event. BID paid $500 for the video that was donated to the event. c) The board reviewed a timeline for the renewal of the BID special assessment district with city commission public hearings Sept. 27 and Oct. 25 for final approval by the city commission by Oct. 31. 6) New Business ray a) BID extension proposal: Alexander, City Manager Frank Peterson and Mayor Steve Gawron presented an aggressive BID extension for five years with a 25 percent increase in assessment fees, an expansion of the district to the north and east of Shoreline Drive and placement of the assessment on the 2017 winter tax bills. The BID board reviewed the details of the proposal. Gary Post spoke for many of the board members to say that the BID has only been operating for six months and now would not be the time for such and expansion and increase in assessments. Justin Clark also spoke against the assessment increase. Frank Peterson said that there is a need for more funds to upgrade and maintain the streetscape along West Western as the decorative concrete is becoming warn. The city’s Downtown Development Authority is paying off bonds supported by city general fund dollars and is unable to assist with such improvements. Cindy Larsen said that an equitable way to find more funding for a downtown organization and activities is needed. She suggested that in the future paid parking might provide the desired revenues. Jon Rooks suggested an 8.2 percent annual increase in assessments or five years go gain the same amount revenues over that time. He also objected to the specifics of the district's geographic expansion. He also suggested that downtown sidewalk maintenance and rehabilitation could be paid for by property owners through a special assessment. Gary Post wanted the BID to be the vehicle to get the downtown site condominium association out of the common area expenses it now handles such as electrical and insurance costs for the Olthoff Stage and Alcoa Square areas along Third Street. Bob Tarrant said he supports the BID but can’t support the expansion and increase in assessments. If extended, board members were more comfortable with three years rather than five. The board had a robust discussion but little consensus formed. Doug Pollock suggested that the board members take time to consider the options and reconvene a special meeting Monday Aug. 1, 4 p.m. in the training room of the Muskegon Lakeshore Chamber of Commerce, 380 W. Western Ave. Suite 202. The board agreed to adjourn to the special meeting date and time. It would be a one item agenda for a recommendation to the Muskegon City Commission on the renewal of the downtown Muskegon Business Improvement District. 7) Adjournment 5:40 PM No Objection Minutes produced and submitted by Dave Alexander, executive director of Downtown Muskegon Now. Downtown Muskegon Business Improvement District Meeting Minutes Aug. 1, 2016 Special meeting 380 W. Western Ave., Suite 202 Muskegon, MI at 4 PM 1) Call to Order: 4:05 PM 2) Attendance: Doug Pollock (Chair), Justin Clark (VC), Bob Tarrant (via conference call), Gary Post, John Riegler and Mike Hennessy and Frank Peterson, Connie Taylor and Bruce Lindstrom Excused Absent(s): none Guests: Dave Alexander, Downtown Muskegon Now director; Ed Garner, Muskegon Area First; Cathy Brubaker-Clarke, city of Muskegon and Dennis Lohman, Northwestern Industrial sales. 3) 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. 4) Unfinished Business a) This is a single-item agenda on a recommendation from the BID board to the Muskegon City Commission for renewal of the special assessment district beyond Dec. 31, 2016. The BID board spent much of its meeting of July 25 discussing an aggressive five-year expansion of the district and increase of its assessments proposed by city officials. Discussions from the July 25 meeting indicated that there was not board support for such a lengthy and aggressive expansion. The board decided to think through the issues for a week and have this special meeting. Board member Bob Tarrant summed up his objections and argument for a one-year, status quo renewal in an email to BID members. Staffer Dave Alexander produced a memo suggesting how a one-year, status quo BID renewal would look. Tarrant suggested the BID Board, Downtown Muskegon Now and the city use 2017 to come up with potentially a new assessing methodology, review the boundaries of the BID and suggest a longer term of the special assessment district that would be presented to the Muskegon City Commission later in 2017. In discussing the issue at the meeting, Tarrant argued that the BID has been operating just about six months and needs to have more time to show how it works and what it will do for downtown Muskegon. He said he is not opposed to the BID just expanding and extending for five-years at this time. Gary Post agreed but still wanted the DMDC Site Condo No. 1 expenses addressed in the BID in 2017. 1 Doug Pollock said the BID was set for three things: Snow removal, landscaping and marketing-promotion-events within the district. It was designed to get city commission approval for the initial year. Gary Post said the BID was to provide a stable, reliable basis of funding for downtown. John Riegler said that an issue remains as to direct and indirect benefits derived by district property owners and the need to find fairness in the assessments going forward. However, for a strong downtown, the BID is necessary, Riegler said. Justin Clark said he supports the one-year suggestion, giving all time to revise longer proposals in 2017. Connie Taylor also agreed that more time is needed to get the BID district and assessments right. The same was voiced by Mike Hennessy. City Manager Frank Peterson said the proposed expansion of the bid in boundaries and assessments was due for needed resources for an improving downtown. There are obstacles to raising funds in other ways. The downtown improvements and added services should have been made several years ago. The downtown is a step behind and needs to catch up to development that is occurring. That said, Frank Peterson said he understands the BID board position on a one-year extension to get it right for 2018 and beyond. Gary Post again raised the condo expenses and the direction of the board was to add $1,500 into the proposed 2017 work plan/budget to cover the costs of electricity, insurance and similar costs. Bruce Lindstrom made a motion to recommend to the Muskegon City Commission extending the current BID for one year through Dec. 31, 2017, pretty much status quo. It was supported by Justin Clark. The district boundaries would not change, the assessments would not change and the budget would be similar to 2016 except 2016 fund balance would carry forward, an administrative fee of $25,000 would be paid DMN, and $1,500 out of “streetscape” would pay for the DMDC condo costs. The assessments would be added to property owners’ winter 2017 property tax bills. A roll call vote was requested: Justin Clark: Yes Frank Peterson: Yes Bruce Lindstrom: Yes — Connie Taylor: Yes Mike Hennessy: Yes John Rielger: Yes Doug Pollock: Yes Gary Post: Yes Bob Tarrant (via conference call): Yes 5) Adjournment 5:10 PM No Objection Minutes produced and submitted by Dave Alexander, executive director of Downtown Muskegon Now. Asets Expenditurs bUesth.lrw:i Revnus Liabltes FACTOIVRY a/L #Batch DOWJPE0F2R1MY6 0 RIEGLER PROPERTIES L C LERMNSITAWC EANLRMSTWIC CLIONRVESPTMAK 12: PM 0 408 36 24-205-186~0 09-0 320.90 0.0 # Batch Population: Al Records 0.0 0.0 0.0 dushcey 0.0 320.90 0 408 38 24-205-3 3-0 01-0 3,0 0.0 0.0 0.0 0.0 0.0 0.0 3,0 0.0 ATLWRIEUS I3LNVESTMC LG&ZPROETICS MOCUISKTFEGYN L C LAKE HINMAN 00425173 06/24 16 042519 04259 06/24 016 042517 06/172 6 04216 042156 06/12 6 04259 041892 0415 8 0415 9 04/1 2 6 0415 8 04/1 2 6 04/7216 Re#cpt Date LAWESVTCRN LAWESVTCRN J MOARNULES 24-70518. BDOIWNT6 324-50816. BDOIWN~T 24-605~831.7BDOIWNT DB3OIW7N-5T2.016 1,BD5OIW0N-T2.6 1B,DI2OW-N3T.096 MOARNULES LPCRO2ETMIS L R B D EUV SOPCM K N T C D L E VN T OUP M RBY RB D LUE V S OPCM K N T TSWRIUAEK 375.0 24-05- 6-0 1-0 L C O E S T A E R E A L E 2016 PCTerotdF P3ag/e:6 Muskegon DB: 2,17.36 2,17.36 1,50. 1,23.19 1,23.19 PCurdent PTodtal 277.20 358. 375.0 375.0 §523 253.84 253.84 4 6.53 R#ecpt Date P12:M # Batch 07/8216 OD0 ACH 07/8216 0426853 07/621 07/621 07/126 00426853 0432591 08/5216 043196 08/12 6 0431 8 08/12 6 043 5 07/26 1 043 72 07/26 1 0429 3 07/2 16 0429 5 07/192 6 0429 7 07/182 6 MOCUSIKFETGYN PNaroce.l C24-05/31W6 B3DIOW-N42T.016 ESRIFCT LAGUISR IRPESONUC PMLBRUOSKETGCIN 0. 0. 0. 0,. 0. 0. 0. 0. 0. 0. 0. 2016 PeATndaolity DBt 1,86.2 1,86.2 PTotdal Muskegon 4/6 1,032. 1,50. 1,86.2 375.0 375.0 18 .4 18 .4 422.40 3 4.64 81.52 18 .16 18 .16 42 .40 0.0 48.0 48.0 P12:M 09/2 16 # Recpt # Batch 043980 09/142 6 043982 09/14206 00439516 6 043816 03/9216 09/72016 08/29 16 0435290 043 21 04351 08/1 2 6 08/126 08/126 043 85 08/1 2 6 Date BID24O-W2N0T5O-W3N15-BI0D-021-106 09/07/2016 00435907 0437518 043658 09/12 6 09/24/201 LHWODICNGS 24-0531 DBOIWN-T2016 24-05~31 DBOIWN-T2016 24-05316 BDOIWN-T2016 CRTEBA/UISP 24-0531 BDOIWN-T2016 PSLRIODETCK 24-308 DHRAVOILETSYN ABENUSOIRTCH LJANSCKI LGMUSKECAON 24-056381 DBOIWN-T2016 24-0 BDOIWN-T2016 L8WATOCN 24-05183 MOARNULES 24-0537 BDOIWN-T2016 ITNLVRESMWCD IVERNZCO 24-138-0 0-0104-0 2COFMRUNITAES 4-05176 24-05178 SAspe.mnt LLC 195.60 185.60 5 4. 0 268. 0 10 .90 1,08. 1,08. 1,803.6 1,803.6 375.0 3,0 .0 739.20 276. 4 3,0 .0 3,0 .0 PACdumirn CIPnuterds Penalitdy Penalitdy cur Tot PCertdF 5/6 195.60 354. 0 268. 0 268. 0 10 .90 10 .90 1,08. 1,08. 1,08. 1,803.6 1,803.6 375.0 3,0 .0 742. 4 739.20 276. 4 348.48 PTotdal 09/2 16 # Batch PayTmeonts:l71 HWLODINGCS 5,81.36 PCruidn ICYnusrtealm PMuDskBeg:on 6ag/e: MuDskBeg:on bUesth.lrw:i 0A98/2:M16 P1ag/e: January 2016 through September 2016 DMIN Expenses to be Reimbursed by BID Date Vendor Memo Amount 6/1/2016 Dobb Printing 20,000 Downtown Maps 1,544.60 7/1/2016 Longer Days Email/Newsletter 350.00 8/1/2016 Ajax Imaging Planter Sign 192.00 8/1/2016 Revel Signage 250.00 8/1/2016 Eagle Eye Photography Rebel Road Video 500.00 8/1/2016 Longer Days Email/Newsletter 350.00 8/4/2016 Shoreline Insurance BID Events 837.00 9/1/2016 Longer Days Email/Newsletter 350.00 4,373.60 173 E. Apple Ave., Ste. 201 Muskegon, MI 49442 Phone: 231-724-6386 Fax: 231-724-1129 INVOICE FOR MATERIALS AND SERVICES RENDERED TO ENSURE PROPER CREDIT, PLEASE REMIT PAYMENT TO “MUSKEGON COUNTY EQUALIZATION” WITHIN 30 DAYS AND WRITE INVOICE NUMBER ON CHECK. DATE: 09/14/16 INVOICE: 2016/01 NAME: David Alexander, Executive Director Downtown Muskegon Now ADDRESS: | dalexander@downtownmuskegon.org CITY: STATE: [ ZIP: PHONE: 231-215-8827 FAX: PAYMENT METHOD: CASH: CHECK #: CREDIT CARD: CHARGE: - $5.00 LATE FEE INCURRED AFTER EACH 30 DAY PERIOD ELAPSES Qty ACCOUNT MATERIALS AND SERVICES FEE TOTAL NUMBER REQUESTED OR PERFORMED FEES 3.5 hrs BID Special Assessment Report 2015 100.00/hr $350.00 2.0 hrs BID Special Assessment Report 2016 100.00/hr $200.00 TOTAL DUE: PAYABLE TO MUSKEGON COUNTY EQUALIZATION $550.00 LATE FEES PER NOTICE — AFTER EACH 30 DAY PERIOD ELAPSES $5.00 GRAND TOTAL INCLUDING LATE FEES Property Address or PIN: N/A Originated by: | D Becker/iss Location: South Campus X Norton Shores BID planned spending through rest of 2016 Marketing, events, promotions Downtown Muskegon website upgrade 4,000 2017 Muskegon Co. visitor guide full-page ad 1,000 Holloween Family Fun event Oct. 29 in volleyball lot 1,000 Holidays in the City Nov. 26 2,300 Fall decorations Western, Third and Pine (estimate) 1,000 Winter decorations for 27 BID planters TBD Subtotal 9,300 Snow removal Winter months (Nov. 15-Dec. 31) 13,500 Total 22,800 SHH Ih GO We’re just getting started. To our Downtown Muskegon neighbors, i The City of Muskegon, in partnership with Downtown Muskegon Now, is proposing to i q renew the Business Improvement District (BID) assessment for another year, starting in : January of 2017. Because the previous BID district assessment was approved for a one- year period only, we must repeat the notification process for next year’s request, which is the purpose of the enclosed letter. Since the BID assessment is still very new, we are proposing another one-year term to allow us to gauge its impact before committing to a longer term. Funds from the 2016 BID assessment have enabled us to pay for several items which improved our downtown business district: snow removal from downtown sidewalks (starting February 1); downtown landscaping and maintenance including plantings in 27 planters; the printing of 20,000 downtown map brochures; the launch of the popular “First Friday” events, including the street performers and the September “touch the trucks” event; the purchase and installation of new downtown map signs at the Johnson Traffic Circle, Muskegon Farmer’s Market, and the Union Depot/CVB; and the overall marketing and development of Muskegon’s ever-improving downtown. We are asking you to help keep this momentum going by approving the BID district for 2017. Please review the enclosed letter for details, including your proposed assessment amount. The 2017 BID documents, including the Benefit Analysis Summary, can be viewed in the Planning Department (room 203) at City Hall, or on the City’s website at www.shorelinecity.com. _ Sincerely, Cathy Brubaker-Clarke Director of Community & Economic Development City of Muskegon Dave Alexander Executive Director Downtown Muskegon Now September 15, 2016 DOWNTOWN MUSKEGON DEVELOPMENT CO 425 W WESTERN AVE STE 200 MUSKEGON, MI 49440 Parcel Number 24-233-000-0024-00 at 292 W Western Ave NOTICE OF HEARING ON SPECIAL ASSESSMENT Dear Property Owner: The Muskegon City Commission is considering whether or not to create a special assessment district which would assess your property for the: DOWNTOWN MUSKEGON BUSINESS IMPROVEMENT DISTRICT The proposed special assessment district will be located as follows: Bordered by Pine St. on the northeast, Shoreline Dr. to the north and west/southwest. The southern boundary of the district from northeast to the southwest is as follows: W. Walton west of Pine St. to Jefferson; W. Webster west of Jefferson to 4'" Street; W. Western Ave. west of 4'" Street to 7" Street; W. Clay Ave. west of 7" Street. The 3% Street corridor from W. Webster south to Merrill Ave. is also included in the district. It is proposed that a majority of services of the Downtown Muskegon Business Improvement District be paid by special assessment from properties within the district. The following are conditions of the proposed special assessment which are important to you. Public Hearings An initial public hearing to consider the creation of a special assessment district will be held at the City of Muskegon City Commission Chambers on September 27, 2016 at 5:30 p.m. You are encouraged to appear at this hearing either in person, by agent or in writing to express your opinion concerning the proposed special assessment. Or, if you prefer, you may express your opinion via e-mail to BID2017@shorelinecity.com. You must include your name and the property address in the BID district in your e-mail. If you own more than one property, include all addresses. Written/e-mailed objections or appearances must be made at or prior to the hearing. Written objections postmarked by the hearing date will be considered received on time. NOTE: THE SPECIAL ASSESSMENT WILL BE CREATED OR NULLIFIED AT THIS HEARING. If the district is created, a second public hearing will be held to confirm the special assessment roll. You will be mailed a separate notice for the second hearing. At this second hearing, the special assessment costs will be spread on the affected properties accordingly. YOU ARE HEREBY NOTIFIED THAT YOU HAVE THE RIGHT TO PROTEST THE ASSESSED AMOUNT AGAINST YOUR PARCEL EITHER IN WRITING/E-MAIL OR IN PERSON AT EITHER HEARING. HOWEVER, UNLESS YOU PROTEST AT ONE OF THE TWO HEARINGS, EITHER IN PERSON OR BY AGENT AT THE HEARING, OR IN WRITING/E-MAIL BEFORE THE HEARING, YOUR RIGHT TO APPEAL TO THE MICHIGAN TAX TRIBUNAL WILL BE LOST. IF THE SPECIAL ASSESSMENT ROLL IS CONFIRMED AT THE SECOND HEARING, YOU WILL HAVE THIRTY (30) DAYS FROM THE DATE OF CONFIRMATION OF THE ROLL TO FILE A WRITTEN APPEAL WITH THE MICHIGAN STATE TAX TRIBUNAL. By City Charter, if the owners of more than one-half of the properties to be assessed object to the assessment in writing at or before the hearing, the improvement shall not be made unless the City Commission determines by affirmative vote of all its members that the safety or health of the public necessitates the improvement. Estimated Costs The total estimated cost of the services within the Downtown Muskegon Business Improvement District is $150,000, of which approximately 75% ($111,924) will be paid by special assessment to property owners. Your property's estimated share of the special assessment is $3000.00, based on 42503.25 feet of assessable square footage. The remaining costs will be paid by the fund balance from the 2016 BID. The assessment, if approved, will be placed on your winter 2016 tax bill which is mailed on December 1, 2016 and due by February 14, 2017. If you oppose this special assessment, you may convey your objection by written letter, via e- mail at BID2017@shorelinecity.com, or by attending the scheduled public hearing. Please note that your views, whether in support or opposition to the BID special assessment, are important to the City and your neighbors so please consider sharing them. Additional information, including preliminary project plans and cost estimates, is available in the Planning Department located on the second floor of City Hall, or on the City’s website at www.shorelinecity.com. Regular City Hall business hours are from 8:30 A.M. to 5:00 P.M. Monday through Friday except holidays. Sincerely, Catherine Brubaker-Clarke Director of Community & Economic Development DOWNTOWN MUSKEGON BUSINESS IMPROVEMENT DISTRICT SPECIAL ASSESSMENT BENEFIT ANAYLSIS SUMMARY PREPARED BY THE MUSKEGON COUNTY EQUALIZATION DEPARTMENT August 25, 2016 August 25, 2016. Downtown Muskegon Business Improvement District Board 933 Terrace Street Muskegon, MI 49443 Dear Board Members: In accordance with your request, I have examined the proposed special assessment district for the Downtown Muskegon Business Improvement District. The purpose of this analysis is to document the reasonableness of this special assessment district by identifying and quantifying any accrued benefits. It is subject to the normal governmental restrictions of escheat, taxation, police power and eminent domain. The effective date of this analysis is August 25, 2016. The proposed special assessment district encompasses all classes of properties. The Downtown Muskegon Business Improvement District Board has provided per parcel cost estimates in accordance with the City’s Special Assessment Policy and all project-related costs. The total project cost is estimated to be a | year assessment of $115,223. The amount of money to be spread is based on a per parcel rate of $0.08 per square foot of lot size for a “Class A” Property and $0.02 per square foot of lot size for a “Class B” Property as defined by the Downtown Muskegon Business Improvement District Board in their Bylaws. The Downtown Muskegon Business Improvement District Board is solely responsible for these figures. In conclusion, it is my opinion that the special assessment amounts as provided by the Board justly and reasonably represent the accrued benefits to the properties encompassed by this project. The amounts reflect the sum ofthe immediate estimated value enhancement and the intrinsic value that will accrue from an overall increase in property values due to an improved quality of life created by the proposed project. Simply stated, the rate of $0.08 per per square foot of lot size for a “Class A” _ ‘operty and $0. 02 per square foot of lot size for a "Ghiss B” Proper'ty as defined by the Downtown area appears TeRSOTABTe and equitable based upon the data presented by the DowntownMuskegon — Business Improvement District Board, and supporting office records. Sincerely, Donna Vandervries, MMAO City of Muskegon Assessor West Western Avenue and 3"4 Street a 4 ywod FO, restate ale fei vati aay ig;piajueg | Ay Downtown Muskegon Business Improvement District 2017 Assessment Regarding: Assessment for 2017 Date: August 9, 2016 To: Muskegon City Clerk/City Commission From: Downtown Muskegon Business Improvement District Board Overview: After separate public hearings, the Muskegon City Commission approved the Downtown Muskegon Business Improvement District on Nov. 24, 2015 and the district assessment rolls on Jan. 12, 2016. The approval was for one year. Following a review of requested and needed services within the Downtown Muskegon Business Improvement District, the BID Board recommends to the Muskegon City Commission to extend the Downtown Muskegon Business Improvement District for an additional 1 YEAR with an assessment be established for the 2017 calendar year. | The BID board recommends the Business Improvement District boundaries remain the same as in 2016, the assessment rates, property classifications and maximum assessments remain the same as in 2016 and the assessments be placed on the 2017 winter property tax bills. The BID Board will use 2017 to study and review the BID District and the assessment structure for possibly a multi-year request for 2018 and beyond. 2017 Assessment: | - “Class A” Properties, as defined in the BID Bylaws, shall be assessed an annual assessment of $0.08/sf with no assessment to exceed $3,000. Contiguous properties with the same use and same i owner shall be assessed as one property. Property lot size on record with the County Assessor shall be i used in determining the square footage of properties. o Inthe instance of a condo property the master dead shall be used in determining the percent of the assessment that an individual property owner would be assessed. - “Class B” properties as defined in the BID Bylaws be assessed an annual assessment of $0.02/sf with no assessment to exceed $750. Contiguous properties with the same use and same owner shall be | assessed as one property. Property lot size on record with the County Assessor shall be used in determining the square footage of properties. - Based on this assessment structure, approximately $115,223 can expected to be collected for services to support businesses and property owners within the BID in 2017. (A budget recommendation & explanation is attached) - The assessment shall be placed on the 2017 winter property tax bills. i —-— ~The 2017 BID district, assessment roll-and collection method was discussed ata July 25,2016 BID = Board meeting. A resolution supporting the above was voted on at an Aug. 1, 2016 special BID Board | meeting. The vote result was as follows: 2017 BID Extension Vote: Member Yes No Abstention Motion/Support Absent Chair Doug Pollock X VC Justin Clark X Support Bruce Lindstrom Xx Motion John Riegler X Gary Post Xx Frank Peterson X Connie Taylor x Mike Hennessy xX Bob Tarrant (via xX conference call) Downtown Muskeqon Business Improvement District Budget Recommendation & Explanation Date: August 9, 2016 To: Muskegon City Clerk/City Commission From: Downtown Muskegon Business Improvement District Board Budget Recommendation: This is a proposed second-year budget for the Downtown Muskegon Business Improvement District. Based on a two tier assessment where “Class A” Properties pay $0.08/sf annual and “Class B” Properties pay $0.02/sf annual the Downtown Muskegon BID can expect to generate $115,223 during 2017. As of Aug. 1, 2016, anticipated BID revenues and actual and anticipated BID expenditures will leave the BID with a fund balanced estimated at $64,687. Based on the fund balance carried forward and the proposed Assessment this one-year 2017 budget is recommended on a unanimous vote of the BID Board at its special Aug. 1, 2016 meeting. Proposed 2017 BID budget | 2016 BID Fund Balance $64,687 2017 Estimated Revenues $115,223 2017 Expenditures Snow removal ($72,000) Landscaping ($16,000) Marketing, promotion, events ($24,000) Streetscape ($13,000) Administration ($25,000) Total ($150,000) Estimated Fund Balance Dec. 31, 2017 $29,910 Budget Note: The BID Board in 2016 appointed Downtown Muskegon Now as staff and managers of the BID. A Letter of Understanding between the BID and the DMN board was signed, having the budget and general spending categories established by the BID Board and work plans carried out by — fees in 2016. DMN. There were no administrative All unused funds go to cash reserves in fund balance. Budget Explanation: Snow removal: The BID's largest line item is dedicated to snowplowing and salt application along sidewalks within the BID where the majority of the Class A properties are located along portions of W. Western Ave., Clay Ave., Morris Ave., Terrace St., Jefferson, 1°, 2nd gid gth g 7h Streets. Funds will also be used to clear parking areas which are generally used by the public - specifically the two lots between 24 and 3% Streets accessed off of Morris Ave. With plenty of fund balance for snow removal, the BID Board will attempt to expand the snow removal services as the budget allows for 2017. Landscaping: The Downtown Muskegon BID will contract with one or more third party landscaping companies to conduct a spring cleanup of common area planning beds within the BID, and general cleanup of grounds as a result from winter wear and tear. Summer Landscaping includes the wedding and fertilization of common areas throughout the BID (grass cutting is done by the city). This line item also includes the planting and maintenance of flower planters throughout the BID (this item could be completed by a different vendor than the one doing the landscaping and clean up). Fall clean-up will consist of removal of leaves from the BID district and preparation of the planning beds for the winter. Marketing, promotion, events: The BID was used to launch the highly successful First Fridays events in the downtown, 6-8 p.m. family-friendly gatherings that have included a family dance party, two hugely popular street performance events and a “touch the truck” event. BID has not directly supported by indirectly has encouraged other downtown events such as DMN’s Taste of Muskegon, Rollin’ On Western and Gus Macker. Beyond events, the BID is supporting an updated Downtown Muskegon website, a revised downtown email list, a new downtown e- newsletter and an annual tri-fold downtown map/brochure among other marketing and promotional activities. Streetscape: This is a broad spending category that allows the BID Board to improve downtown Muskegon through new holiday decorations, public art projects, banners, directional/informational signs, benches, trash receptacles, sidewalk repairs, new planters, public space maintenance such as Olthoff Stage and Alcoa Square and like expenditures. Administration: Downtown Muskegon Now provided the staff support to design and establish the Downtown Muskegon Improvement District in 2015 and 2016. As promised to the Muskegon City Commission for 2016, there was no BID funds expended for “salaries and benefits” - administrative costs. The daily work of the BID cannot continue for free. The BID requires staff time and effort. Going forward DMN needs to be compensated for its time and effort. Thus, a new administrative line-item has been added to the 2017 BID budget. v Tareresto | estée seco | cr ers 7989 aa NOSDISHN WO SVOHSHIVT PEO DT SINSWISANI WOOG Fed MELT] _0 -¥0 0-DE -SOz-FZ
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