Downtown Business Improvement District Agenda 04-25-2017

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        Downtown Muskegon Business Improvement District
                                    Special Meeting Agenda

                                         April 25, 2017


                        380 Western Ave., Suite 202 Muskegon, MI at 4 PM


  1)    Call to Order

  2) Election of BID board vice chairman for 2017

  3) Consent Agenda
     a) Approval of Agenda
        b) Approval of Minutes from the regular meeting March 28, 2017
        c) Acceptance of financial statements as of April 21, 2017

  4) Public Comment (on an agenda item)

  5) Unfinished Business

        a) Recommendation from special committee on BID renewal beyond 2017
        b) Report on planter contract and city-BID letter of understanding on landscaping

   6)   New Business

        a) Discussion of BID $24,000 events, marketing and promotion budget; feedback for
            Downtown Muskegon Now board

   7)    Other Business

         a) Next meeting is Tuesday May 23, 2017 4 p.m. chamber training room, 380 W.
            Western Ave. Suite 202, Muskegon, MI or at the call of the chair.

8) Adjournment
To: Business Improvement District Board

From: Dave Alexander, Downtown Muskegon Now                             ;

Re: Background on agenda items for April 25, 2017                 on
Date: April 21, 2017                                              (e-

BID board members:

We have a special meeting slated for April 25 at 4 p.m. to handle continued
discussion of the extension of the Business Improvement District beyond 2017.

VICE CHAIRMAN — Our Vice Chairman Justin Clark has been assigned by Frontier
Communications to a position outside of Muskegon. He has resigned from the BID
board. | will work with City Hall on an appointment of a replacement member.
The board needs to elect a new vice chairman. | have told Chairman Doug Pollock
that Gary Post is willing to serve in that position.

FINANCES — Our latest financial statement for the period ending April 30 shows
that in the past month we have receive the bulk of our assessments paid through
the winter property tax bill collection, $103,551. The BID will still receive a
delinquent property tax payment for all 2016 and 2017 unpaid assessments
through the Muskegon County delinquent property tax bond. Those final funds
for the year should be paid to the BID account by the end of June.

BID RENEWAL —This special meeting is to continue the discussion from the March
28 BID meeting. A special committee recommended a three-year renewal as
detailed in document in your packet from March, answering seven key questions.
| also was asked to provide a BID district map, a 2017 and proposed 2018-2020
assessment rolls and a legal opinion from City Attorney John Schrier on the
properties in the BID that are exempt from assessments. | have sent all of those
documents to you earlier via email and they also are in this agenda packet. The
quicker the board can decide on the future of the BID the quicker | can begin
working with city staff to present the request to the city commission for public
hearings and commission votes.
PLANTER and LANDSCAPE WORK — | have provided you a copy of the agreement
with Barry’s Flowers to handle the downtown planters and a draft of a letter of
understanding with the city on landscape services based on a time and material
charge not to exceed $13,000. Both documents are included.

EVENT/MARKET BUDGET — | have given you a listing of how | would propose to
spend the $24,000 in the BID budget for events, promotion and marketing. |
would like your feedback on what direction you would like to see us go, which will
help me with a similar discussion with the Downtown Muskegon Now board in
June. The DMN board earlier this month, decided not to use BID money to
support the pub crawls beyond $600 in radio advertising already spent for St.
Patrick’s Day.
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             Downtown Muskegon Business Improvement Distr
                                                          ict
                                              Meeting Minutes

                                               March 28, 2017

                          380 W. Western Ave., Suite 202 Muskegon, MI at 4 PM

 1)    Call to Order: 4:05 PM


 2)    Attendance:
             Doug Pollock (chair arrived late to provide a quorum), Gary Post
                                                                              (acting chairman), John
             Riegler, Mike Hennessy, Bob Tarrant (via conference call) and
                                                                            Phyllis Watson-
             Laudermill


             Excused Absent(s): Justin Clark (VC), Frank Peterson and
                                                                      Bruce Lindstrom.

             Guests: Dave Alexander, Downtown Muskegon Now director;
                                                                      Megan Jones, DMN
             events and promotion; Cindy Larsen, Muskegon Lakeshore
                                                                    Chamber of Commerce,
             Dennis Lohman, Northwest Industrial Supply and Muskegon DPW
                                                                         Director Mohammed
             Al-Shatel.


             Cindy Larsen and Megan Jones gave Western Market and event updates
                                                                                until a quorum
             of the board was obtained for official action:


3)    Election of 2017 officers
      A motion was made to elect Doug Pollock board chairman and
                                                                 Justin Clark board vice
      chairman.


             Motion: John Riegler
         Support: Mike Hennessy
        ‘Vote: All voted in favor



4)    Consent Agenda |


        a)    Approval of Agenda, minutes from Jan. 24, 2017 meeting
                                                                     , acceptance of the financial
              statements as of Feb. 28, 2017,


            Motion: John Riegler
            Support: Mike Hennessy
            Vote: All voted in favor


5)    Consent Agenda II (formal approval of actions from
                                                         Jan. 24, 2017 meeting)
        a) Meeting minutes from Nov. 22. 2016
       b)     Consideration of a DMN-BID letter of understanding for 2017
       c)     Direction on spending $3,000 in community foundation grants
                                                                             for downtown message
              signs
       d)     Consideration of BID’s First Fridays sponsorship for
                                                                   winter quarter of 2017 -- $2,500

                                                     1
       e)    Request to contribute $5,000 from the streetscape account for Pop-Up
                                                                                  Shops project
             on Western Avenue


            Motion: John Riegler
           Support: Phyllis Watson-Laudermill
            Vote: All voted in favor


6)   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.


7)   Unfinished Business


      a)     Report from the city on sidewalk snow removal from DPW Director Mohammed Al-
             Shatel: He told the board that actual costs came in at just under $16,000 for the 2016-
             17 winter season. The BID agreed to pay $8,000 a month for four months or $32,000
             total. The additional revenue to the city will be put toward equipment upgrades to
             better service downtown sidewalk snow removal in future years, Al-Shatel reported.


8)   New Business


      a) The board received and reviewed proposal on planters and landscaping services for
             the downtown for spring through fall 2017.


            The BID received five quotes from flower shops and landscape companies. Dave
            Alexander recommended Barry’s Flower Shop & Greenhouses for $9,854 total cost for
            planting, maintaining, fertilizing, watering and removing materials in the fall. The
            recommendation was based upon price, a flat fee and past work of the company with
            the flowers in Hackley Park. Other board members said they have used Barry's for
            such work with good results.


            The BID received for quotes from private vendors and an offer from city DPW to
            provide the work within the BID’s $16,000 landscaping budget. The quotes from the
            private vendors ranged from $10,850 to $15,415. Dave Alexander recommend
            contracting with the city DPW to provide landscaping services based upon
                                                                                     the city’s
            commitment to downtown beautification, the city’s performance on sidewalk snow
            removal and willingness to go beyond the contract to keep downtown looking good
            throughout the season. If chosen, Dave will work with the city as was the case
                                                                                           for
            winter services to create a letter of understanding on services and costs.


            The motion was to approve Barry’s Flower Shop for downtown planters and the
                                                                                        city
            DPW for downtown landscaping.


           Motion: Bob Tarrant
           Support: Doug Pollock
       Vote: All voted in favor


      b)    Aspecial committee of Bob Tarrant, Doug Pollock and Mike Hennessy worked
                                                                                      with
            Dave Alexander to make a recommendation to the board on renewal of the
                                                                                   BID
                                                   2
          beyond 2017. A summary of the group’s recommendation for a three-year renewal
          request to the Muskegon City Commission is attached to these minutes.


          Bob Tarrant said that everyone needs to step up to the plate and together support
          downtown going forward. Doug Pollock said that everyone must keep in mind the big
          picture of downtown improvements pushing all property values up, benefiting every
          property owner in the BID.


          The committee addressed the difference in A properties and B properties rates by
          raising B properties and by moving the maximum assessment limits.


          The BID board received the recommendation and Phyllis Watson-Laudermill said the
          topic needed more discussion. John Riegler wants the BID board to explore the BID
          district boundaries and definitions of the two property classifications. Board members
          asked Dave Alexander to provide an spreadsheet showing the 2017 assessments by
          property and the proposed assessment for 2018-2020 under the committee’s
          recommendation. The BID board also wanted a district map and legal clarification on
          exempted properties such as government, churches, non-profits and residential. No
          action was taken at this time.


          The BID board asked for a special meeting April 25 at 4 p.m. to continue deliberating
          on BID renewal beyond 2017.


9)   Adjournment
     5:13 PM
     No Objection



Minutes produced and submitted by Dave Alexander, executive director of Downtown
Muskegon Now.
To: BID board


From: Special committee of members Tarrant, Hennessy and Pollock


Re: Recommendation for BID beyond 2017


Date: March 2017




What the BID board would need to recommend to the city commission for BID extension
                                                                                    beyond 2017:




   1.   Do we need to extend it, does the downtown need a base of funding for common maintenance
                                                                                                   .


        improvements, events and promotion?


        Yes, downtown needs a funding base for common maintenance and promotion.



        For how many years?


        Three years


        The district boundaries?


        Status quo



        The assessment categories and their definitions


        No change but will explore specific properties classifications.


        The assessment rates for each category


        An increase of the B properties from 0.02 cents a s/f to 0.04 cents a s/f and
                                                                                      maximum
        amounts for A properties going from $3,000 to $4,000 and B properties going from
                                                                                         $750 to
        $2.000.


        An estimated annual budget and work plan



        The above rates and maximums will generate $140,100 vs. the current $115,000.
                                                                                       The work
        plan should be putting those resources for snow plowing, landscaping and marketing.
                                                                                            This
        year’s budget and work plan is for $150,000 as it includes fund balance


        Method of payment such as the current winter property tax bills.


        Keep with the current winter property tax bills.
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Dave:


The statutory authority for business improvement districts permits a local unit of government to levy a
special assessment against “assessable property” and it is to be based upon special benefits to that
parcel. MCL Section 125.985(2). “Assessable property” is defined as real property excluding

    1)   property classified as residential real property,
    2)   property owned by the federal, state or local government so long as it is exempt from taxation,
         and
    3) Classes of property owners whose property is exempt from collection of taxes under the general
       property tax act and_has been determined by the legislative body not to be benefited by the
         project.


MCL Section 125.981(1). Thus, the exclusion of residential real property and government owned
property is pursuant to the statute. Excluding the churches and non-profits is based upon the City
Commission decision. | do not recall, but suspect, that assessor's office and our office had trouble
seeing how the work to be done would provide a benefit to property owned by churches and non-
profits. Probably a benefit from the snowplowing and salting of sidewalks, but the rest of the activities
more tenuous.



| do not see any statutory authority for a Principle Shopping District to levy a tax.

Perhaps related to your second question, to date the BID Board has requested a 1 year special
assessment. The statute allows up to a 20 year special assessment.

If |can be of more help, let me know.


John Schrier
Parmenter O’Toole
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Dave Alexander


From:                    dawn barry <barrysonline@yahoo.com>
Sent:                    Wednesday, March 22, 2017 10:35 AM
To:                      Dave Alexander
Subject:                 Proposal for planter prep. & mainenance Downtown Muskegon



Dear Dave / Downtown Muskegon Now,

We grow the flowers, design, plant & maintain Hackley Park along with VNS Downtown,
The Hearthstone, & other businesses. We work closely with the Community Foundation
of Muskegon County on various projects including Hackley Park. We would love the
opportunity to enhance more of Downtown Muskegon. We looked at all of the planters
and are assuming they all have drainage? If not we can fix that, but there would be an
extra charge for which I did not include in the proposal at this point. We corrected
drainage & designed and planted the metal planters at Hank's Tavern on Henry
Street. We have checked the soil currently in the 61 planters and we would replace with
our premium planting mix ideal for these planters. We would also apply natural mulch
to all 61 planters to help hold moisture, reduce erosion, reduce weeds, and give a
"finished look". The design for all 61 of the planters include flowers that will bloom &
look full and beautiful until frost. From our experience with watering, we would be
checking on these planters daily. Our water for the planters would include the same
exceptional fertilizer we use in our watering system at Barry's. We would be prepared to
replant any flowers that do not look full and beautiful throughout the season. We
included the two separate quotes but both projects should be done by the same
company. Our design of flowers should be maintained a certain way. We would love to
work with you and discuss this project further so we could accomplish your
goals. Thank you for the opportunity to quote this project.

Quote for preparing all 61 planters and planting with flowers is $7854.00.
Quote for watering, fertilizing, and maintaining 61 planters is $2000.00.

Sincerely,
Dawn Barry
Barry's Flower Shop & Greenhouses
3000 Whitehall Rd. Muskegon, MI 49445
231-766-3031
fax: 231-766-3902
 www.barrysgreenhouse.com
Dave Alexander

From:                    dawn barry <barrysonline@yahoo.com>
Sent:                    Wednesday, March 29, 2017 10:43 AM
To:                      Dave Alexander
Subject:                 Downtown Muskegon Now Planters Contract



Dave Alexander/ Downtown Muskegon Now
Business Improvement District
380 W. Western Ave Suite 202
Muskegon, MI 49440



Please sign & date below as approval of our proposal including replacing soil, planting
flowers, mulching, watering & maintaining 61 planters in Downtown Muskegon as
described in bid. Payment of $7854.00 will be due June 1, 2017. Payment of watering
will be billed as $1000.00 due July 1, 2017 and $1000.00 due September 1,
2017. Thank you for this opportunity to add enhancements to Downtown
Muskegon. Please let us know if there are any questions or concerns.




   Waele Te tl fe =f) (?
Sincerely,                              dena be                          fag the
 Dawn Barry / cell: 231-206-7345                       oS afh®nt
3000 Whitehall Rd. Muskegon, MI 49445
Barry's Flower Shop & Greenhouses                <=
                                                      — Psed ‘Bpe ylF
 fax: 231-766-3902
231-766-3031
                                                           pach SS.
  www.barrysgreenhouse.com
                                       Letter of Understanding


        City of Muskegon DPW and Muskegon downtown Business Improvement District

This is a Letter of Understanding between the Muskegon downtown Business Improvement District (BID)
and city of Muskegon Department of Public Works (city) concerning landscaping in downtown
Muskegon for the spring, summer and fall of 2017. City and BID officials will work together to provide
superior service for the best presentation of downtown possible.


The BID board voted on March 28, 2017 to accept the offer of the city of Muskegon to provide landscape
services this summer. That offer excludes preparation and maintenance of the flower planters throughout
the BID district. The planter work had a separate RFP and the BID board accepted the proposal from
Barry's Flower Shop of Muskegon for summer 2017.

The city will perform the work below on a time and material basis not to exceed $13,000.

Scope of Work

Lawn Fertilization/Weed Control
    -   4 fertilization applications on medians and terraces between Third Street and Terrace Street
        along Western Avenue
            o   Spring (completed by June 1)
            o   Early Summer (completed by July 30)
            o   Late Summer (completed by September 30)
            o   FallWinterized (completed by Nov. 30)
    -   Atthe same time, apply liquid weed control to the service area including:
            o   Cracks
            o   Curb lines
            o   Landscaping beds
            o   Along buildings
            o   Parking lots behind Russell Block & the Hines Building (parking area entered from Morris
                Avenue between Second and Third Streets).
            o   Alcoa Celebration Square rock beds at First Street and West Western Avenue

Spring Clean Up
    -   Removal of lawn and landscaping area debris
    -   Cutall ornamental grasses and annual plants to spring start height
    -   Remove all day Lilly dead loss and cleanout beds
    -   Removal all trash from landscaped beds, curbs, & open fields
    -   Haul all yard waste from site
    -   Clean-up of curb lines and dress property for appearance
    -   Clean-up landscaping rocks (moving back into islands) in the parking lots behind the Hines
        Building & Russell Block


Hardwood Mulch Installation & Bed Prep
    -   Pull weeds, and remove all debris from bark beds
    -   Install sod cut edge and prep all corners of landscaping beds
    -   Haul and spread shredded hardwood bark 2” deep in beds on Western Avenue between Terrace
        and Third Streets, including around the Third/Western traffic circle.


Trimming and Pruning
    -   Trim & prune shrubs, bushes & trees to promote healthy growth and uniformity
    -   Remove and dispose of trimming debris
Fall cleanup
   -    Leaf removal from plantings between Terrace Street and Third Street along West Western
        Avenue and in the Olthoff Stage area of Third Street between West Western and Clay avenues.



Special Instructions

Downtown Muskegon hosts several festivals thought out the summer, set up for these festivals begins on
the following dates and efforts should be made to ensure regular maintenance doesn't interfere with event
setup/activities. The city will turn off irrigation the day before the noted set-up start dates.



           Event                 Set-up Starts                Event times                Breakdown
   Parties in the Park    Fridays 3-5PM      Summer Fridays 5-9 pm                      Same night
  Taste of Muskegon     Thursday,  June 15 | June  16 &17 11am-9pm_|                  Sunday, June 18
 Lakeshore Art Festival  Thursday, July 6     July 7 & 810 am-6 pm                     Sunday, July 9
 Muskegon Rebel Road | Wednesday, July 13      July 14, 15, 16 & 17                   Monday, July 18


Dave Alexander, executive director of Downtown Muskegon Now, will be the city’s contact concerning
BID landscaping in downtown Muskegon. DPW Director Mohammed Al-Shatel, parks supervisor
Bernadette Young and/or their designee will be the contact person for the city.



On behalf of the city Department of Public Works:



                                                                Date:


Frank Peterson, Muskegon city manager




On behalf of the downtown Muskegon Business Improvement District:




                                                                Date:


 Doug Pollock, BID board chairman
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