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Downtown Muskegon Business Improvement District
Meeting Agenda
May 23, 2017
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 special meeting April 25, 2017
c) Acceptance of financial statements as of April 30, 2017
3) Public Comment (on an agenda item)
4) Unfinished Business
a) Final vote on recommendation to the Muskegon City Commission on 2018-2020 BID
renewal
5) New Business
a) Proposed 2018-2020 budget based upon recommended district/assessments
b) Information/discussion on two 2017 events-promotion-marketing expenditures
6) Other Business
a) Next meeting is Tuesday July 25, 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: BID board members
From: Dave Alexander, DMN executive director
Re: Background on May 23 agenda items
Date: 5-19-17
BID renewal: Please find in your agenda packet all of the documents | think you should need in coming
to a final decision on a recommendation to the Muskegon City Commission on the extension of the
Business Improvement District beyond 2017. There is a memo ona timeline for BID extension, which
needs to be approved by the city commission by Oct. 31. City planner Mike Francek and | are planning
on having the two public hearings on the last commission meeting of August and September. There is an
outline of the key questions answered by BID votes at the April special meeting, a copy of the proposed
new boundaries, recommendation of changes in classifications due to bylaw change for B properties and
a list of new properties in the expanded district.
Future BID budgets: With a final recommendation on the BID elements, the last decision is a projected
BID annual budget. | have written you a separate memo on the budget.
BID expenditures: | want to let you know what | am thinking for expenditures in the events-marketing-
promotion and streetscape areas of the 2017 budget.
| have provided you again a breakdown of the $24,000 line item 2017 events-marketing-promotion. |
would like use the $10,000 for co-op advertising in two ways. The first would be a $5,000 contribution
for a “sponsored content” project being put together by a group of community organizations through
RapidGrowth and Issues Media Company. The IMG proposal is attached and is in conjunction with the
Imagine Muskegon Lake community planning later this year. RapidGrowth would “embed” a journalist in
Muskegon for six months to tell the story of our lake and our community. Downtown and its current
progress is a huge part of Imagine Muskegon Lake and that story. The overall project is a $48,000 effort
that will also need the financial support of the Michigan Economic Development Corp., Community
Foundation for Muskegon County and Pure Muskegon — all asked for $12,000. The final quarter could be
a combination of the BID, Watch Muskegon and the Muskegon Lakeshore Chamber of Commerce. This
digital news focus on development in Muskegon gets our downtown story out to the greater West
Michigan region and beyond.
Asecond $5,000 for advertising | suggest be combined with $5,000 from Watch Muskegon to purchase
billboards in the Grand Rapids market. One billboard for one month costs about $2,000. These Watch
Muskegon billboards would be downtown specific.
The second expenditure area is in the $13,000 streetscape line item which has only been used for a
$5,000 contribution to the pop-up shops of Western Market. DMN/BID received a total of $3,000 from
two community foundation donors for downtown community message boards. | have included a quote
from Graphics House for $2,350 apiece for the community message boards. | would put one at the
Depot and one at the Farmers Market. A larger format changeable sign frame would go on the Alcoa
stage wall facing the Third-Western traffic circle for $500. These permanent message locations will
highlight downtown events and provide general downtown promotional messages with a Watch
Muskegon theme. With a total cost of $5,200, | would combine the $3,000 foundation donations with
$2,200 of BID streetscape funds. The only other streetscape expenditure | have in mind is to support
downtown Christmas decorations.
Both of these items will be presented to the Downtown Muskegon Now board for approval at its June 8
meeting.
Downtown Muskegon Business Improvement District
Special Meeting Minutes
April 25, 2017
380 W. Western Ave., Suite 202 Muskegon, MI at 4 PM
1) Call to Order: 4:03 PM
2) Attendance:
Doug Pollock, Gary Post, John Riegler, Mike Hennessy, Frank Peterson, Bob Tarrant
and Bruce Lindstrom
Excused Absent(s): Phyllis Watson-Laudermill.
Guests: Dave Alexander, Downtown Muskegon Now director; Cindy Larsen, Muskegon
Lakeshore Chamber of Commerce, Dennis Lohman, Northwest Industrial Supply and
Muskegon City Commissioner Ken Johnson.
3) Election of a new vice chairman 2017
A motion was made to elect Gary Post vice chairman as Vice Chairman Justin Clark left the
board for a new job assignment out of Muskegon.
Motion: John Riegler
Support: Frank Peterson
Vote: All voted in favor
4) Consent Agenda
a) Approval of Agenda, minutes from March 28, 2017 meeting, acceptance of the
financial statements as of March 1, 2017,
Motion: John Riegler
Support: Bruce Lindstrom
Vote: All voted in favor
5) 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.
6) Unfinished Business
a) Acontinuation of the discussion of the BID renewal beyond 2017. A special committee
of Mike Hennessy, Doug Pollock and Bob Tarrant worked with Dave Alexander to
come up with a recommendation for a three-year extension of the BID from 2018
through 2020.
BID district: John Riegler presented a slightly expanded BID district map to the board
for consideration. It would expand the district to the east and south but not across
Shoreline Drive to the north. He explains it “squares off’ the district and captures
several properties within blocks of Third Street and Western Avenue now not part of
the BID but much closer to the heart of downtown than those properties on the far east
and west of the current district. He stressed the fairness issue. The board had an
extended discussion of the expanded boundaries. A motion was made to expand the
map as proposed. (See attached)
Motion: John Riegler
Support: Mike Hennessy
Vote: All voted in favor
A and B categories: The category definitions are found in the BID bylaws, which are
able to be amended with a major vote of the BID board. An extended conversation came
down to the “fairness” issue of having “automotive” businesses in the B classification
There are downtown B class businesses that have significant “retail” operations but are
automotive or motorcycle in nature, several board members said. A motion was made to
remove the word “automotive” from the B classification definition in the BID bylaws and
moving all but “manufacturing or industrial’ businesses into the A classification.
Motion: Frank Peterson
Support: Bob Tarrant
Vote: All voted in favor
Assessment rates: The special committee recommended that A properties remain at
8 cents a square foot but that B properties be raised from 2 cents a s/f to 4 cents a s/f.
Maximum A assessments would increase from $3,000 to $4,000 and maximum B
assessments would go from $750 to $2,000. City Commissioner Ken Johnson said he
understood the “fairness” issue in the current spread between A and B properties but
the increase for B properties might be too much for him to support. Board members
Bob Tarrant, Frank Peterson and Doug Pollock expressed strong support for the
committee’s recommendation. Bob Tarrant said that an improved downtown is the
greatest benefit for all BID properties as land values increase, justifying the significant
increase in B properties.
Motion: Frank Peterson
Support: Bob Tarrant
Vote: All voted in favor
With board decisions on the specific issues of BID renewal, Dave Alexander will provide
documents showing the new map, a recommendation on B properties that would
become A properties and new properties (and categories) for the newly expanded BID
areas, all per board action. He will provide this information and have it available for a
final BID vote on its recommendation to the Muskegon City Commission at the May 23,
2017 meeting.
b) The board received a brief report from Dave Alexander on a downtown planter contract
with Barry's Flowers and a letter of understanding with the city Department of Public
Works for downtown landscaping.
7) New Business
a) The board received written information on the use of the remaining in the BID $24,000
budget for events, marketing and promotion for 2017. There was no time for
discussion.
8) Adjournment
5:25 PM
No Objection
Minutes produced and submitted by Dave Alexander, executive director of Downtown
Muskegon Now.
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297-0 0 0-1251 AC OUNTS RECEIVABLE 0.0 0.0 0.0 0.0
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0.0 0.0 0.0 0.0
297-0 0 0-530 BUDGETED CONTRACTUAL SERVICES 150,0 0.0 0.0 0.0 0.0
Expenditurs
TOTAL EXPENDITURES 150,0 0.0 3,8 0.01 78,572.08 78,572.08
To: BID Board and DMN Board
From: Dave Alexander, DMN executive director
Re: Business Improvement District extension
Date: May 2017
| had a meeting with Muskegon planner Mike Francek who has the staff assignment of working with the
BID on renewal issues for going beyond 2018. As was the case in 2016 for the 2017 renewal, city staff
from planning and finance will help us and the city commission again through the process.
Here is an outline of the process that we will all need to go through to have the BID extended for a
recommended three years. The BID board will take its final vote(s) on the BID extension for 2018-2020
at its May 23 meeting and | will seek endorsement by the DMN board at its June 8 meeting.
The BID needs to be approved by the city commission by Oct. 31, 2017. We are about two months ahead
of our schedule from 2016 and thus will move our two public hearings up a month on the commission
calendar.
The timetable looks like this:
May 23: Final BID votes on the recommendation for city assessor and ultimately the Muskegon City
Commission.
June 8: Endorsement vote by the Downtown Muskegon Now board.
July 1: DMN executive director verifies the assessment roll for the city assessor and provides the annual
budget and proposed assessment rate/maximum cap.
July 28: City assessor completes a “benefit analysis summary” for use in the notices and public hearings.
Aug. 1: Two notices of the Aug. 22 public hearing on the creation of the district are published in The
Muskegon Chronicle.
Aug. 11: Notices of the proposed district and likely assessments for each property are mailed to
property owners by the city.
Aug. 23: A public hearing on the creation of the district and vote by the Muskegon City Commission.
Sept. 1: Two notices of the Sept. 26 public hearing on the approval of the assessment role are published
in The Muskegon Chronicle.
Sept. 15: Notices of the proposed assessments for each property are mailed to property owners by the
city.
Sept. 26: A public hearing on the final assessment rolls and vote by the Muskegon City Commission.
Oct. 31: If approved, assessments placed on winter tax bills.
Jan. 1: The new BID year begins, if approved by the Muskegon City Commission.
To: BID board
From: Dave Alexander, DMN wwe
Re: Final board recommendation for BID beyond 2017 iy .
Date: April 26 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?
Expanded slightly to the east and south per attached map.
The assessment categories and their definitions
The BID Bylaws were changed to remove “automotive” from the B category, moving several B
properties into A properties.
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
With the changes in the district boundaries and the above rates and maximums the total
revenues must be computed. Currently the BID in 2017 generated $115,000. The work plan
should be putting those resources into snow plowing, landscaping and administration with the
remainder decided through a discussion of the BID board in May.
Method of payment such as the current winter property tax bills.
Keep with the current winter property tax bills.
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To: BID board members
From: Dave Alexander, DMN executive director
Re: 2018-2020 BID budget outline \ Cy
Date: May 18, 2017
If the BID board goes through with its recommendations from the April 25 special meeting, | have
estimated that total annual revenues would be approximately $171,000. You need to provide a
preliminary outline of how the annual funds would be spent for the next three years.
When| arrived in my position in January 2016, prior BID board action established the budget for 2016.
Since you only had five or six months of BID history when renewing the district for 2017, the board
approved pretty much a status quo budget. Here is what you provided in the 2017 BID proposal:
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
Our fund balance should be somewhat greater than $30,000 at the end of 2017 but that depends on
spending outside of snow, administration and landscaping for the next seven month. Looking forward to
2018 and beyond, here is what | would estimate to be conservative spending in the three categories of
which | believe there is consensus on the BID board: $75,000 for snow removal, $25,000 for landscaping
and $25,000 for administration. That would total $125,000, leaving a fund balance each year of
approximately $46,000, based on current BID board recommendations.
In the past two years, the BID had general categories of “marketing, promotion and events” and
“streetscape.” The first spending category has paid for the downtown website redesign, hosting and
maintenance; the downtown annual tri-fold map; advertising the VisitMuskegon annual guide;
sponsorship of First Fridays; and Holidays in the City/Community Christmas Tree Lighting among other
items. The second spending category has included outdoor map signs, Christmas lights and a
contribution to the pop up shops of Western Market.
The BID board has to set an outline of a budget for the next three years beyond 2017. For the $46,000 of
projected annual fund balance, how do you want to spend those resources? One option is reduce
assessments and/or maximums. Another option is to select current or new expenditure categories. To
give the BID board a wide array of possibilities, | have attached a copy of the section of the BID enabling
act that outline “powers and authorities.” Snow removal can be found in section 10a. (1) (b) and (h);
landscaping can be found in section 10a. (1) (d); and administration in section 10a. (2). There are plenty
of other options that may or may not make sense for downtown Muskegon.
How do you want to proceed with projected annual budgets for the next three years?
125.990a Business improvement zone as public body corporate; powers; authority.
Sec. 10a. (1) A business improvement zone is a public body corporate and may do 1 or more of the
following for the benefit of property owners located in the business improvement zone:
(a) Acquire, through purchase, lease, or gift, construct, develop, improve, maintain, operate, or
reconstruct park areas, planting areas, and related facilities within the zone area.
(b) Acquire, construct, clean, improve, maintain, reconstruct, or relocate sidewalks, street curbing, street
medians, fountains, and lighting within the zone area.
(c) Develop and propose lighting standards within the zone area.
(d) Acquire, plant, and maintain trees, shrubs, flowers, or other vegetation within the zone area.
(e) Provide or contract for security services with other public or private entities and purchase equipment
or technology related to security services within the zone area.
(f) Promote and sponsor cultural or recreational activities.
(g) Engage in economic development activities, including, but not limited to, promotion of business,
retail,or industrial development, developer recruitment, business recruitment, business marketing,
business retention, public relations efforts, and market research.
(h) Engage in other activities with the purpose to enhance the economic prosperity, enjoyment,
appearance, image, and safety of the zone area.
(i) Acquire by purchase or gift, maintain, or operate real or personal property necessary to implement this
chapter.
(j) Solicit and accept gifts or grants to further the zone plan.
(k) Sue or be sued.
(D Do all other acts and things necessary or convenient to exercise the powers, duties, and jurisdictions of
the business improvement zone under this act or other laws that relate to the purposes, powers, duties, and
jurisdictions of the business improvement zone.
(2) A business improvement zone may contract with a nonprofit corporation or any other public or private
entity and may pay a reasonable fee to the nonprofit corporation or other public or private entity for
services provided. Two or more business improvement zones may contract with the same nonprofit
corporation or public or private entity under this subsection.
(3) A business improvement zone has the authority to borrow money in anticipation of the receipt of
assessments if all of the following conditions are satisfied:
(a) The loan will not be requested or authorized, or will not mature, within 90 days before the expiration
of the 10-year period.
(b) The amount of the loan does not exceed 50% of the annual average assessment revenue of the
business improvement zone during the previous year or, in the case of a business improvement zone that
has been in existence for less than 1 year, the loan does not exceed 25% of the projected annual
assessment revenue.
(c) The loan repayment period does not extend beyond the 10-year period.
(d) The loan is subject to the revised municipal finance act, 2001 PA 34, MCL 141.2101 to 141.2821.
(4) The services provided by and projects of a business improvement zone are services and projects of the
business improvement zone and are not services, functions, or projects of the municipality in which the
business improvement zone is located. The services provided by and projects of a business improvement
zone are supplemental to the services, projects, and functions of the city or village in which the business
improvement zone is located.
(5) The business improvement zone has no other authority than the authority described in this act or
authorized by other laws of this state.
Rapid Growth {
Rapid Growth Media & Downtown Muskegon Business Improvement District
Partnership — On The Ground Program
Strategy
Rapid Growth will use an embedded journalism model to maintain a presence in the
Imagine Muskegon Lake district from July through November of 2017. Rapid Growth
will focus weekly coverage on the area to tell the story of the businesses, individuals
and non-profits working and living there.
On The Ground Program
Rapid Growth has identified a project editor to understand the district and the nuances
of its community. The project editor will hold regular office hours in the neighborhood,
as well as attend monthly neighborhood events and convenings, and host dedicated
editorial advisories to engage residents and citywide stakeholders for story ideas and
networking.
Throughout the program, Rapid Growth will publish weekly content, send a monthly
dedicated mailing, and manage consistent social media coverage about the Imagine
Muskegon Lake district. Rapid Growth will produce, cover, and promote a finale event
upon completion of the project. This will include video coverage and a neighborhood
event hosted by Rapid Growth.
Rapid Growth also works with a 3% party evaluator to produce a comprehensive
evaluation of the program after the intensive embedded period in each neighborhood.
Muskegon BID ads will be placed alongside On The Ground content in Rapid Growth.
— Program Pricing —
Coalition
The On The Ground program in Muskegon will be funded by a coalition of partners:
- Michigan Economic Development Corporation
- Watch Muskegon Go/Downtown Muskegon Business Improvement District
Pure Muskegon
- Community Foundation for Muskegon County
Muskegon Lakeshore Chamber of Commerce
Total for Downtown Muskegon BID $5,000
Program total $48,000
— Contract Terms —
Payment terms: Payment due upon receipt of invoice(s).
Contract duration: July - November 2017
No amendment, change or modification to this contract will be effective unless it is in
writing and signed by both parties. Either Rapid Growth or Downtown Muskegon
Development Improvement District may terminate this contract for any reason by
giving the other party 30-days written notice.
This contract contains the entire agreement between Rapid Growth and Downtown
Muskegon Business Improvement District, and there are no other conditions in any
other written or oral agreement concerning the subject matter in this contract. This
contract supersedes any prior written or oral agreement between Rapid Growth and
Downtown Muskegon Business Improvement District.
issue Media Group’s Underwriting Policy
Issue Media Group (IMG) offers its underwriters the opportunity to directly align their
brands with content about talent, innovation, diversity, and place. In addition, IMG
provides corporations, governments, institutions, nonprofits, and foundations with
similarly focused missions a way to use their media budgets to support and expand
coverage of job growth, economic development, real estate, non-profit innovation, city
building, and place making.
Underwriting is the basis of our model as a publication. Underwriters are considered
crucial to our organization and their support is the reason that IMG is able to produce
content within a broad spectrum of topics. Support from underwriters allows IMG to
dedicate editorial resources to cover key issue areas that are of importance to both the
underwriter and IMG's mission.
We work with like-minded stakeholders who have shared values and missions.
Because of our intersecting interests, we may cover our underwriters’ work
journalistically. However, IMG observes strict boundaries regarding the direction,
review, and approval of content that is published.
IMG encourages underwriters to pitch ideas through Editorial Advisories and to our
editorial teams. We value the knowledge our partners bring to our work, and we
encourage underwriters to send story ideas, trends in underwriters’ areas of expertise,
and press releases. However, published content is at the discretion of the editorial
teams and all final decisions regarding content are made without client approval.
While underwriters are not allowed to review or approve content, IMG works with them
to establish focus areas that will be included in coverage. If an underwriter desires the
ability to direct or edit content, the content will be considered “Partner Content,” and
given a treatment that distinguishes it from editorial content. The underwriter's logo
will be embedded in the story and a transparency statement will be included.
IMG works with underwriters to fully understand the issues they care about. However,
IMG trusts its editorial teams to shape stories around issues in a way that will resonate
with readers.
IMG honors truthfulness and strives to avoid conflicts of interest in our reporting. This
includes real conflicts and acts that may appear to be a conflict. To this end, we opt to
disclose any relationships with underwriters that could be perceived as complicating
our journalistic mission.
— Partnership Approval —
By signing this proposal, the undersigned Client representing The Downtown
Muskegon Business Improvement District authorizes Rapid Growth to proceed with the
work described in this proposal and to bill according to the terms indicated above.
Accepted by Downtown Muskegon Accepted by Rapid Growth:
Business Improvement District:
Signature Signature
Name Paul Schutt
Date Date
GRAPHICS HOUSE Customer Phone Imaging ESTIMATE
| M AG | N G ae NEW Date Estimate No.
44d Irwin Ave. Customer Contact
Muskegon, MI 49442 5/5/2017 132413
800.678.4041 | fax. 231.733.1549 Andrew Haan
Name / Address Ship To
Muskegon Downtown Business Improvement Downtown Muskegon Now
District Attention: Dave Alexander
c/o Downtown Muskegon Now 380 West Western Avenue, Suite 202
380 West Western Avenue, Suite 202 Muskegon, MI 49440
Muskegon, MI 49440
Customer to provide print ready art complete with all fonts, die lines and hard
copy. Design charges will be added subject to the above criteria upon receipt of FOB P.O. No. Terms CSR Rep
the art files. Design is billed at $90 per hour with $22.50 minimum for any design
changes.
e Muskegon Check RMR
Description Height Width Qty Rate Total
Aluminum Upright Bulletin Case 36"w x 48"h. Visual area will 2,350.00] 2,350.00T
be 30.875"w x 43.125"h. Includes (2) 2.5" x 5" x 96" posts.
Contains 3/8" neoprene rubber inside the case. Powder coated
textured black or a standard NPS color - brown, dark brown or
medium gray.
Security Lock Snap Frame Wall Mount 36" 48" 2 150.00 300.00T
Rigid Vinyl Prints - Muskegon Events 36" 48" 3 96.81 290.43T
Standard Lead Time is 5-7 business days after proof approval
25% Rush Fee for 3-4 day production after proof approval
50% Rush Fee for 1-2 day production after proof approval
ALL RUSH ORDERS ARE SHIPPED NEXT DAY AIR!!
NOTE: ESTIMATES ARE VALID FOR 30 DAYS AND ARE QUOTED IN US DOLLARS
APPROVAL Subtotal $2,940.43
Sales Tax (0.0%) $0.00
Please sign below and fax to 231-733-1549
I approve this order to be accurate in pricing, size and quantities. Shipping & Handling
Signature Date Total $2,940.43
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