Downtown Business Improvement District Agenda 09-27-2016

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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.
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                           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
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                                   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.
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