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Downtown Muskegon Business Improvement District
Meeting Agenda
July 25, 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 meeting May 23, 2017
c) Acceptance of financial statements as of June 30, 2017
3) Public Comment (on an agenda item)
4) Unfinished Business
a) Revote on the recommendation to the Muskegon City Commission on 2018-2020
BID renewal to allow all members to go on the record on the request
5) New Business
a) Six-month update of the 2017 BID budget
b) Review of the city DPW landscaping activity and consideration of payments beyond
the contracted $13,000.
c) Review options with city DPW on snow removal 2018 and beyond.
d) Discussion of downtown convention center proposal and potential position statement
Other Business
a) Discussion of Holiday in the City and the future of Western Market
b) Update on downtown summer events
c) Update on current downtown development activity
d) Next meeting is Tuesday Sept. 26, 2017 4 p.m. chamber training room, 380 W.
Western Ave. Suite 202, Muskegon, MI or at the call of the chair.
Adjournment
To: BID board members
From: Dave Alexander, DMN executive director We
Re: Background and comments on July 25 BID agenda
Date: July 24, 2017
It is important for the BID board to be on record with a
recommendation to the Muskegon City Commission on a BID renewal.
Mike Hennessy, Frank Peterson, Bruce Lindstrom and Phyllis Watson-
Laudermill have not yet voted on the BID renewal as they were not at
the May 23 special BID board meeting. Under old business, | would like
to take another vote to see if we can between the two meetings get a
100 percent record of the board’s position on the recommendation to
commission.
BID renewal: In your packet you'll find two memos outlining the BID
recommendation and suggested annual budget for 2018-2020. Also
included is the new proposed district map. City planning department
officials and | have delayed the process of BID renewal by one month so
that we can be assured of the most accurate BID special assessment
rolls possible. | have included an update of the BID renewal process
timeline as the two public hearings before the city commission would
now be Sept. 26 and Oct. 24.
BID budget update: | feel the BID account is in good shape as of July 1
the BID had $106,240 in its account but made a $5,000 expenditure to
the city in early July to support the construction of Western Market.
Expenditures include by July 1 the $13,000 for DPW landscaping and
initial payment of $7,854 to Barry’s for the planters. Revenues now
include an additional $27,459 since our last meeting in special
assessments, a payment from the county for delinquent taxes owed the
BID (2016 and 2017). Some of that needs to remain in fund balance to
cover any tax reverted properties not picked up a tax sale and not
having outstanding tax bills paid by a new property owner. In those
cases, the BID might have to reimburse those assessments paid by the
county delinquent property tax bond payment. | have provided a chart
of estimated spending in each category by the end of 2017. The total
surplus from the five expenditure categories is $16,853, on top of a
$20,000-plus estimated fund balance going forward.
DPW landscaping: In my opinion, downtown has never looked so good.
Even after Lakeshore Art Festival and Rebel Road, landscaping and
planters look top notch. City crews are downtown nearly daily keep it
all looking good and Barry’s is doing just as well with the planters. Our
payment of $13,000 for the season basically covered city expenses
through early July, | am told. | think with our fund balance situation the
BID board should consider an additional payment. DPW director
Mohammed Al-Shatel, hopefully, will be at the meeting to discuss it.
Snow removal: If the BID is renewed for 2018, | would like some
direction on how to proceed with snow removal for the upcoming
winter. Hopefully Mo will be able to join our discussion. | need to know
what | should do, if anything, before commission approval of the BID
for 2018.
Convention Center: Chairman Doug Pollock and Frank Peterson can
provide a quick overview of the proposed convention center project for
downtown Muskegon. | want to know if the BID board would consider
some sort of resolution of support.
Other business: | will have an update on Holiday in the City, Western
Market for Christmas, summer events and downtown development.
Downtown Muskegon Business Improvement District
Meeting Minutes
May 23, 2017
380 Western Ave., Suite 202 Muskegon, MI at 4 PM
1) Call to Order: 4:05 PM
Attendance:
Doug Pollock (Chairman), Gary Post (VC), John Riegler, Bob Tarrant and Clyde
Whitehouse.
Excused Absent(s): Mike Hennessy, Frank Peterson, Bruce Lindstrom and Phyllis
Watson-Laudermill
Guests: Dave Alexander, Downtown Muskegon Now director; Megan Jones, DMN
events and promotion; Muskegon City Commissioner Ken Johnson and Dennis Lohman,
Northwest Industrial Supply.
2) Consent Agenda
a) Approval of Agenda, minutes from special meeting of April 25, and acceptance of the
financial statements as of April 30, 2017,
Motion: Gary Post
Support: Bob Tarrant
Vote: All voted in favor
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) A final vote on a recommendation to the Muskegon City Commission on a renewal of
the Business Improvement District: The BID is a needed funding base for the common
maintenance and promotion of Downtown Muskegon.
The points of the recommendation include: a three-year renewal 2018-2020, BID
district boundaries slightly increased east and south as per attached map, the word
“automotive” removed from Category B in the BID Bylaws (accomplished with a vote
April 25, 2017), Category A lands assessed at $0.08 per square foot and capped at
$4,000 and B lands $0.04 per square foot and capped at $2,000 and assessments
being paid as part of the winter property tax bills.
City Commissioner Ken Johnson had reservations on the rates for Category B as it
relates to direct benefits for those properties. He suggested a division of categories
based upon direct snow removal or no direct snow removal. He also suggested a 3-to-
1 assessment ratio A-B might be better than 2-to-1 ratio as recommended.
It was asked about residential, educational, non-profits and government properties
being included. Dave Alexander reported from an email message from City Attorney
John Schrier that BID enabling law does not allow for assessing those types of
properties.
Bob Tarrant said that he has never been comfortable with 2 cents and 8 cents with the
B properties being too low. He said assigning benefit is difficult. John Riegler said that
his opposition to the BID when first proposed has reversed as he sees the BID as
good for downtown and the overall city. Gary Post said the BID is doing what it does to
attract everyone to downtown. Doug Pollock said the BID does well for the Holiday Inn
Muskegon Harbor. Commissioner Johnson said the BID needs to have a more
equitable distribution of services going forward
Motion: Gary Post
Support: John Riegler
Vote: Post, Riegler Tarrant and Pollock voted “yes”; Whitehouse abstained.
Passed 4-0-1.
5) New Business
a) An annual BID budget based upon approximately $170,000 was considered for 2018-
2020. With potentially additional funds from the past two BID budget years of 2016 and
2017, the board discussed expanding the landscaping services to include areas off of
Western Avenue and Third Street. The priorities would be Clay Avenue, Terrace Street
and Pine Street. The goal is to get district to look better further out from Western and
Third. Members suggested a budget with $75,000 for snow removal, $30,000 for
landscaping, $24,000 for marketing and events, $13,000 for streetscape, $25,000 for
administration and the remainder in contingency.
Motion: Gary Post
Support: John Riegler
Vote: All voted in favor
b) BID expenditures reviewed out of the $24,000 2017 marketing-events-promotion line
item to include $5,000 to support a sponsored content community journalism project of
Issues Media Group on Imagine Muskegon Lake, a $48,000 effort supported by other
groups and organizations and a $5,000 expenditure on cooperative advertising with
Watch Muskegon to promote downtown Muskegon in the Kent and Ottawa county
markets. Finally, a $5,200 expenditure for downtown signs with $3,000 of that coming
from Community Foundation for Muskegon County grants and the remainder from the
BID streetscape line item for 2017. Items were for information only and will be sent on
2
to the Downtown Muskegon Now board for discussion and authorization. No vote
needed.
6) Adjournment
5:35 PM
No Objection
Minutes produced and submitted by Dave Alexander, executive director of Downtown
Muskegon Now.
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GL ACTIVITY REPORT FOR CITY OF MUSKEGON Pages vi
elec FROM 297-00000-5300 TO 297-70803-5352
= ‘TRANSACTIONS FROM 07/01/2016 TO 06/30/2017
ate JNL Type Description Reference # Debits Credits Balance
und 297 DOWNTOWN MUSKEGON BID
7/01/2016 297-70803-5346 CONTRACTUAL SERVICES BEG. BALANCE 9.00
7/25/2016 AP INV H & H LAWN SERVICE & SNOWPLOWING 37028 1,510.00 1,510.00
LAWN MAINTENANCE MONTHLY INSTALLMENT
8/09/2016 AP INV H & H LAWN SERVICE & SNOWPLOWING 37186 110.00 1,620.00
WEED CONTROL - TREAT BEDS
8/10/2016 AP INV O'LE HENRY GARDENS. JULY 16 680.00 2,300.00
PLANT MAINTENANCE AND WATERING DOWNT
9/06/2016 AP INV H & H LAWN SERVICE & SNOWPLOWING 37322 1,510.00 3,810.00
SEPTEMBER MONTHLY LAWN SERVICE — DOW
9/06/2016 AP INV H & H LAWN SERVICE & SNOWPLOWING 37291 822.50 4,632.50
WEEDING
9/06/2016 AP INV O'LE HENRY GARDENS 2343 680.00 5,312.50
WATERING AND PLANT MAINTENANCE - BID
9/19/2016 AP INV GRAPHIC HOUSE IMAGING 130900 2,098.84 7,411.34
DOWNTOWN SIGNAGE - DOWNTOWN IMPROVEM
9/19/2016 AP INV MUSKEGON COUNTY EQUALIZATION 2016/01 550.00 7,961.34
BID SPECIAL ASSESSMENT REPORT FOR 20
9/26/2016 AP INV H & H LAWN SERVICE & SNOWPLOWING 37428 1,510.00 9,471.34
LAWN MAINTENANCE FOR OCTOBER 2016 -
0/10/2016 AP INV H & H LAWN SERVICE & SNOWPLOWING 37444 3,050.00 12,521.34
EXTRA WEEDING AND WEED CONTROL AUGUS
1/09/2016 AP INV H & H LAWN SERVICE & SNOWPLOWING 37548 1,510.00 14,031.34
LAWN MAINT FOR 2016 SEASON - NOVEMBE
1/09/2016 AP INV H & H LAWN SERVICE & SNOWPLOWING 37104 165.00 14,196.34
WEED CONTRAL 6~2-16
1/28/2016 AP INV H & H LAWN SERVICE & SNOWPLOWING 37478 330.00 14,526.34
WEED CONTROL 6 BEDS
1/29/2016 AP INV H & H LAWN SERVICE & SNOWPLOWING 37535 2,200.00 16,726.34
NOVEMBER SNOW PLOWING
1/29/2016 AP INV H & H LAWN SERVICE & SNOWPLOWING 37641 2,200.00 18,926.34
SNOW PLOWING FOR DECEMBER
2/21/2016 AP INV O'LE HENRY GARDENS 2345 340.00 19,266.34
WATERING OF PLANERS WESTERN AVE & TH
2/21/2016 AP INV DOWNTOWN MUSKEGON NOW 317 6,037.63 25,303.97
EXPENSES FOR DOWNTOWN EVENTS AUTUMN
2/21/2016 AP INV H & H LAWN SERVICE & SNOWPLOWING 37742 2,200.00 27,503.97
JANUARY 2017 SNOWPLOWING
1/09/2017 AP INV fl & H LAWN SERVICE & SNOWPLOWING 37811 45.00 27,548.97
BLUE ICE MELT
1/24/2017 AP INV. Ht & H LAWN SERVICE & SNOWPLOWING 37864 2,200.00 29,748.97
FEBRUARY PAYMENT PLOWING SERVICE
2/02/2017 GJ JE TO REIMBURSE THE GF FOR SNOW PLOWING 3301 16,000.00 45,748.97
2/07/2017 AP INV H & H LAWN SERVICE & SNOWPLOWING 37844 719.50 46,468.47
SALT AND BLUE ICE MELT
2/28/2017 AP INV. H & H LAWN SERVICE & SNOWPLOWING 37933 1,626.50 48,094.97
SALT AND ICE MELT
2/28/2017 AP INV H & H LAWN SERVICE & SNOWPLOWING 37747 194.00 48,288.97
SALT AND ICE MELT
2/28/2017 AP INV H & H LAWN SERVICE & SNOWPLOWING 37953 2,200.00 50,488.97
SEASONAL MONTHLY ISTALLMENT FEBRUARY
3/31/2017 Go JE TO PAY THE CITY FOR SNOW REMOVE SERV 3424 16,000.00 66,488.97
4/11/2017 AP INV H & H LAWN SERVICE & SNOWPLOWING 38078 1,229.50 67,718.47
ICE MELT AND TREATED SALT
3/23/2017 AP INV BARRY'S FLOWER SHOP SUMMER2017 7,854.00 75,572.47
DOWNTOWN MUSKEGON PLANTERS.
5/30/2017 Gd JE LANDSCAPING - CITY REIMBURSEMENT 3573 13,000.00 88,572.47
5/30/2017 297~70803-5346 END BALANCE 88,572.47 0.00 88,572.47
7/01/2016 297-70803-5352 PUBLIC RELATIONS BEG. BALANCE 0,00
3/06/2016 GJ JE TO MOVE REVENUE TO FARMERS MARKET FU 3076 100.00 100.00
3/19/2016 AP INV DOWNTOWN MUSKEGON NOW 314 4,373.60 4,473.60
REIMBURSE DOWNTOWN MUSKEGON NOW FOR
2/07/2017 AP INV CHRISTMAS CREATIONS BY BAILEY 161220-01 2,500.00 6,973.60
CHRISTMAS DECORATIONS DOWNTOWN/FARME
3/10/2017 AP INV DOWNTOWN MUSKEGON NOW 327 1,380.01 8,353.61
ADVERTISING, WEBSITE DESIGN, EVENT I
3/10/2017 AP INV DOWNTOWN MUSKEGON NOW 326 2,500.00 10,853.61
FIRST FRIDAYS SPNSORSHIP
5/30/2017 297~-70803-5352 END BALANCE 10,853.61 0.00 10,853.61
Downtown Muskegon Business Improvement District
2018 - 2020 Assessment
Regarding: Assessment for 2018, 2019 and 2020
Date: July 5, 2017
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. Again in 2016, the Muskegon City Commission had a status quo renewal of the BID for 2017 after
public hearings Sept. 27, 2016 and Oct. 25, 2016. The BID Board used 2017 to study and review the BID
District and the assessment structure, coming to a recommendation for 2018 and beyond.
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 3 YEARS with an assessment be established for the 2018,
2019 and 2020 calendar years.
The BID board recommends the Business Improvement District boundaries be slightly increased to better
reflect downtown activities and benefits of the district. The BID board also recommends changes to the
assessment rates, property classifications and maximum assessments to more fairly spread responsibility for
downtown services. Like in 2017, the assessments would be placed on the winter property tax bills for 2018 -
2020.
2018 - 2020 Assessments:
- “Class A” Properties, as defined in the BID Bylaws, shall be assessed an annual assessment of
$0.08/sf with no assessment to exceed $4,000. 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.
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 $0.04/sf with
no assessment to exceed $2,000. 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.
o Note that the BID Board on April 25, 2017 voted to amend the BID Bylaws to define a “Class B”
property as: “Properties located within the Downtown Muskegon Business Improvement District
which are currently use for, or zoned for industrial or manufacturing.” The word “automotive”
was removed from the definition, moving that category of property to “Class A.”
- Based on this assessment structure, approximately $168,151 can expected to be collected for services
to support businesses and property owners within the BID in 2018.
(A budget recommendation & explanation is attached)
- The assessment shall be placed on the 2018, 2019 and 2020 winter property tax bills.
- The 2018 -2020 BID district, assessment rolls and collection methods were discussed at BID Board
meetings Jan. 24, March 28 and April 25, 2017. A resolution supporting the above recommendation
was voted on at a May 23, 2017 BID Board meeting. The vote result was as follows:
2017 BID Extension Vote:
Member Yes No Abstention Motion/Support Absent
Chair Doug x
Pollock
VC Gary Post X Motion
Bruce Lindstrom xX
John Riegler X Support
Phyllis Watson- x
Laudermill
Frank Peterson X
Clyde Whitehouse Xx
Mike Hennessy X
Bob Tarrant Xx
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Downtown Muskegon Business Improvement District
Budget Recommendation & Explanation
Date: July 5, 2017
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 $0.04/sf annual the Downtown Muskegon BID can expect to generate
$168,151 during 2018.
Proposed 2018-2020 BID budgets
2017 BID Estimated Fund Balance $25,000
2017 Estimated Revenues $168,151
2018 Expenditures
Snow removal ($75,000)
Landscaping ($30,000)
Marketing, promotion, events ($24,000)
Streetscape ($13,000)
Administration ($25,000)
Contingency ($1,151)
Total ($168,151)
Estimated Fund Balance Dec. 31, 2018 $25,000
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
DMN. The administrative fee of $25,000 per year was established for 2017.
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%, 279, 34, 6% & 7%
Streets. Funds will also be used to clear parking areas which are generally used by the public —
specifically the two lots between 2TM 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 2018 and beyond.
Landscaping: The Downtown Muskegon BID in 2017 contracted with city of Muskegon Public
Works Department to provide a high level of landscaping service after seeking bids from private
contractors. The BID will likely seek a three-year contract to provide these services 2018-2020.
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. The BID board significantly
increased the landscaping portion of the budget vs. 2016 with the intention of furthering BID
landscaping services to Terrace Avenue, Clay Avenue and Pine Street as funds allow.
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. 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, direct
and indirect advertising 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 BID requires staff time and effort. Going forward DMN needs to be
compensated for its time and effort. Thus, administrative line-item in the 2017 budget continues
for 2018 and beyond.
The 2018 — 2020 BID budget and work plan was approved by a vote of the BID Board on May
23, 2017:
2018 -2020 BID Budget Vote:
Member Yes No Abstention Motion/Support Absent
Chair Doug x
Pollock
VC Gary Post x Motion
Bruce Lindstrom X
John Riegler X Support
Phyllis Watson- X
Laudermill
Frank Peterson xX
Clyde x
Whitehouse
Mike Hennessy x
Bob Tarrant X Support
To: BID Board and DMN Board
From: Dave Alexander, DMN executive director
Re: Business Improvement District extension
Date: Updated July 24, 2017
| had a meeting with Muskegon planner Mike Franzak 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 fora
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.
Aug. 11: Final documents go to the Muskegon County Equalization Department for benefit analysis.
Aug. 30: City assessor completes a “benefit analysis summary” for use in the notices and public hearings.
Sept. 1: Two notices of the Aug. 23 public hearing on the creation of the district are published in The
Muskegon Chronicle.
Sept. 11: Dave Alexander makes overview presentation on BID renewal to the city commission work
session.
Sept. 11: Notices of the proposed district and likely assessments for each property are mailed to
property owners by the city.
Sept. 26: A public hearing on the creation of the district and vote by the Muskegon City Commission.
Oct. 1: Two notices of the Sept. 26 public hearing on the approval of the assessment role are published
in The Muskegon Chronicle.
Oct. 15: Notices of the proposed assessments for each property are mailed to property owners by the
city.
Oct. 24: 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.
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