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muskegon
BUSINESS IMPROVEMENT DISTRICT
Downtown Muskegon Business Improvement District
Special
Meeting Agenda
July 27, 2020
8 a.m.
Muskegon City Hall
933 Terrace, Muskegon, MI
Virtually on City of Muskegon Facebook Live
https://www.facebook.com/CityofMuskegon/
1) Call to Order
2) Consent Agenda
a) Approval of Agenda
b) Approval of Minutes from the meeting June 29, 2020
3) Public Comment (on an agenda item)
4) New Business
a) Discussion of residential assessments in BIDS
b) Consideration of recommendation of a 3-year BID renewal
c) Downtown project updates
5) Other Business
a) Set next meeting
6) Adjournment
Downtown Muskegon Business Improvement District
Meeting Minutes
June 29, 2020
Muskegon City Hall
933 Terrace Muskegon, MI 49440
Virtually on City of Muskegon Facebook Live
Call to Order: 8:02 AM
Attendance: Bob Tarrant, Kathy Denison John Riegler and Mike Hennessy.
Excused Absent(s): Phyllis Watson-Laudermill, Frank Peterson and Bruce Lindstrom.
Guests: Dave Alexander, city Business Development Manager.
2) Consent agenda
a) Approval of the agenda
b) Approval of the Minutes from Feb. 24, 2020 meeting
Motion to approve the consent agenda with corrections to minutes: John Riegler
Support: Kathy Denison
All voted in favor
Public Comment (on an agenda item) — The board chose to leave the floor open for the
whole meeting allowing attendees to participate as they like.
New Business
a) Accept the financial statement dated May. 31, 2020 and
review of financial position. The BID account had $158,194
and the BID budget is on track.
Motion to accept: John Riegler
Support: Kathy Denison
All voted in favor
b) Dave Alexander presented newly signed legislation that allows
a BID to assess residential property. The BID board needs to
consider that option before recommending a renewal proposal
to the Muskegon City Commission. In discussion on the
residential property assessments within BIDs, John Riegler and
Kathy Denison said this is no time to add new taxes. Bob
al
Tarrant said the board must at least consider such as even
home owners receive services and benefits from downtown.
But many felt that assessing single-family properties doesn’t
seem right. The board took no vote but asked Dave Alexander
to provide an analysis of residential properties in the newly
suggested BID.
Dave Alexander gave a report and update on the state’s new
Social District law. The city of Muskegon is expected to
aggressively pursue a district for downtown Muskegon. No vote
was taken.
The board again looked at the parameters of a three-year BID
renewal that had the general consensus of the board in
February. The district would be reduced, rates remaining the
same and BID work would be limited to summer landscaping
and winter sidewalk snow removal to reflect the reduced
revenues, estimated at $115,000 annually. The board
discussed the recommendation to the Muskegon City
Commission in light of COVID-19. Bob Tarrant said the
downtown needs the BID now more than ever. The reduced
district focused benefits where they are most felt. He wants to
move forward with the plan. John Riegler said his mind has not
changed, begrudging support. Kathy Denison said downtown
cannot afford not to move forward. A consensus formed that
this might be the last BID assessment suggested by the board
and it three years downtown services need to be moved to the
Downtown Development Authority. An initial plan for three
years, with and smaller district and work plan was suggested.
BID-City DPW 2020 landscaping agreement. Dave Alexander
was directed to put together the documentation for the plan’s
formal recommendation to the city commission at the next
meeting.
Motion to support a three-year BID renewal: Kathy Denison
Support Mike Hennessy
Vote: All voted in favor
e) The BID board did not think a meeting of property owners in the
newly proposed BID was needed beyond the two public
hearings that will be needed before the Muskegon City
Commission. No vote was taken.
f) Dave Alexander updated the board on the summer work plan.
Flowers by Barry’s were put into 72 planters and are being
maintained. The city struggled with downtown landscaping work
due to COVID-19 because of staff furlough’s and elimination of
summer seasonal workers. The city has hired two season
workers to complete the downtown landscaping work.
g) Dave Alexander gave an update on downtown projects, which
continue despite COVID-19.
2
5) Other Business
a) Next meeting is a special meeting Monday July 27, 8 a.m. at Muskegon City Hall and
virtual on the city of Muskegon’s Facebook Live page.
6) Adjournment
9:08 AM
No Objection
Minutes produced and submitted by Dave Alexander, city of Muskegon business development
manager
To: BID board members
From: Dave Alexander, downtown manager
Re: Residential property analysis
Date: 7-23-2020
BID board members:
Here is the analysis you requested at the June 29 meeting of the residential properties and
potential special assessments for the reduced district that you are contemplating for a three-
year renewal. As you remember, state law now allows BIDs to special assess residential
properties within the district.
Since my initial email to you, | found two single-family homes within our newly proposed
district and an additional multi-family unit. In our current district, there are many, many more
single-family homes. Now in total, | found 11 properties with residential units. My assumption
would be that for something like 297 Clay condos or Western Place that you would assess the
condo association and let it divide up costs through condo fees.
All of the mixed-use buildings with residential and commercial such as Lakeview Lofts, Terrace
Plaza, Highpoint Flats and the storefronts on Third Street with apartments above have already
been in the district.
Remember that assessments are based upon square footage of land, whether vacant, used for
parking or with a six-story building. My calculations were based upon assessing the residential
at half the rate as we do industrial/auto properties. That is 4-cents a square foot per year with a
cap of $2,000 on any one property or adjacent properties of the same owner and use. You
could establish a different rate.
At the 4-cent rate, | calculated that the additional revenues to the BID from these residential
properties would be an estimated $9,278 a year. | am not sure that is enough revenue to justify
additional snow removal services or creating opposition to the renewal from a whole new class
of downtown property owner. It is also against the general philosophy several expressed of not
wanting to raise “taxes” in a COVID-19 economy.
My recommendation is not to special assess residential properties in your renewal proposal to
the city commission but the decision is yours.
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To: BID board members
From: Dave Alexander, downtown manager pe’
Re: 3-year renewal recommendation
Date: 7-23-20 lh
Board members:
Please find in your agenda packet on this item:
A introduction letter that goes out with the notice of special assessment
The special assessment explanation and vote
ob
The budget/work plan and vote
The BID map showing the two past districts and the proposed 2021-23 district in RED
oP
The special assessment roll. (I have spent countless hours on this making all of the
changes in the size of district, ownership changes and property splits. | feel pretty
comfortable but will have it vetted at city hall and with the city assessor.)
We are at a point now of making a final recommendation to the city commission. Any motion
would need to address these issues with your current consensus listed:
i. District boundaries: As shown on map
2s Special assessment timeframe: Three years 2021-2023
3. Special assessment rates: As before, two tier annually 8 cents/sf and 4 cents/sf capped
at $4,000 and $2,000, respectively.
Specific special assessments: Per the assessment roll
How to be assessed: Winter property tax bills
wi
A recommendation of this being the final three years of the BID
A separate motion would needed:
1. How will the funds be spent: Per budget and work plan
If approved, the next steps would be:
Gather the materials for the county’s Benefit Analysis and letter of certifying need.
Put the documents into a renewal plan and make an initial presentation at a city
commission work session.
Establish two public hearings on the district and the tax roll for commission meetings in
September and October.
Send out the special assessment notice and ability of property owners to vote their
support or objection.
Have the commission take final action by Oct. 31 for assessments on the 2021 winter tax
bills
To our Downtown Muskegon neighbors,
The City of Muskegon in conjunction with downtown stakeholders is proposing to renew
the Business Improvement District (BID) assessment for three more years, starting in
January of 2023. The BID board -- appointed by the Muskegon City Commission of BID
assessment paying property owners - is recommending this renewal as the district has
served the downtown well since 2016.
Funds from the BID assessments from 2016-2020 have enabled us to pay for many items
which improved our downtown business district: snow removal from downtown
sidewalks; downtown landscaping and maintenance including flowers in 72 planters; the
printing of 20,000 downtown map brochures; management of the downtown website and
social media platforms; the launch of the popular “First Friday” events, including the
street performers and the “touch the trucks” events; upgrading of Holidays in the City
and the community Christmas Tree lighting; the purchase and installation of new
downtown map signs at the Johnson Traffic Circle, Muskegon Farmer’s Market, and the
Union Depot/CVB; annual downtown Christmas decorations and assisting in the
purchase of the new community Christmas tree; assisting with downtown business
development and economic development projects; creating and promoting the Western
Market chalets; and the overall marketing and promotion of Muskegon’s ever-improving
downtown.
Downtown Muskegon has never looked so good, created such a positive buzz for our
community or created so much economic development through new construction and
historic restoration. This is not the time to back off on supporting downtown but instead
continuing much needed services to support continued growth. We are asking you to
help keep this momentum going by supporting the BID district for 2021-2023.
Please review the enclosed letter for details, including your proposed assessment
amount. The BID Board has proposed a significant reduction in the district footprint to
better align with downtown benefits, no changes in assessment rates and a reduced
budget and work plan to reflect the smaller district. The 2018-2020 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,
Dave Alexander
Muskegon Downtown Development Authority/BID manager and
City of Muskegon Business Development Manager
Downtown Muskegon Business Improvement District
2020 - 2023 Assessment
Regarding: Assessment for 2021, 2022 and 2023
Date: July 27, 2020
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, asking for a three-year renewal 2018-2020. After public hearing Sept.
26, 2017 and Oct. 24, 2017, the Muskegon City Commission approved an expanded district but the same
special assessment rate for three years.
As Downtown Muskegon develops and downtown agencies progress, there is still a need for special
assessment support for downtown through a BID assessment. Following a review of requested and needed
services within the Downtown Muskegon Business Improvement District, the BID Board recommends to the
Muskegon City Commission a reduction in the size of the Downtown Muskegon Business Improvement District
and continuation of the same special assessment rate for an additional 3 YEARS with an assessment being
established for the 2021, 2022 and 2023 calendar years.
The BID board recommends the Business Improvement District boundaries be decreased to better reflect
benefit to downtown property owners but still support overall downtown services. The BID board also
recommends no changes to the assessment rates, property classifications and maximum assessments that
fairly spread responsibility for downtown services. The BID board’s recommendation for a slimmed down
district, budget and work plan for the next three years comes with a recommendation that this is the last special
assessment that should be needed to fund downtown services.
Like in 2018-2020, the assessments would be placed on the winter property tax bills for 2021-2023.
2020 - 2023 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 deed 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 $113,681 can expected to be collected for services
to support businesses and property owners within the BID in 2021.
(A budget recommendation & explanation is attached as a separate memo.)
- The assessment shall be placed on the 2021, 2022 and 2023 winter property tax bills.
- The 2021-2023 BID district, assessment rolls and collection methods were discussed at BID Board
meetings Feb. 24, June 29 and July 27, 2020. A resolution supporting the above recommendation was
voted on at the July 27, 2020 BID Board meeting. The vote result was as follows:
2020 BID Extension Vote:
Member Yes No Abstention Motion/Support Absent
Chair Bob Tarrant
VC Bruce
Lindstrom
John Riegler
Phyllis Watson-
Laudermill
Frank Peterson
Mike Hennessy
Kathy Denison
Downtown Muskegon Business Improvement District
Budget Recommendation & Explanation
Date: July 27, 2020
To: Muskegon City Clerk/City Commission
From: Downtown Muskegon Business Improvement District Board
Budget Recommendation:
This is a proposed third-year budget for the Downtown Muskegon Business Improvement
District for 2021-2023 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 $113,681 during 2021.
Proposed 2021-2023 BID budgets
2020 BID Estimated Fund Balance $50,000
2021 Estimated Revenues $113,681
2021 Expenditures
Snow removal ($65,000)
Landscaping ($30,000)
Marketing, promotion, events ($0)
Streetscape ($0)
Administration ($17,000)
Contingency ($1,681)
Total ($113.681)
Estimated Fund Balance Dec. 31, 2021 $50,000
Budget Note:
The BID Board in 2019 appointed the Muskegon Downtown Development Authority as staff and
managers of the BID. A Letter of Understanding between the BID and DDA board was signed,
having the budget and general spending categories established by the BID Board and work
plans carried out by DDA staff of the city of Muskegon. The administrative fee of $17,000 per
year is budgeted.
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 St., Pine St., 15, 2"9,
3, 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 and
a lot along Third Street in the Midtown business district. With fund balance for snow removal
and a reduced district footprint, the BID Board will attempt to expand the snow removal services
in the high publicly trafficked areas of the district for weekend and holiday events as the budget
allows for 2021 and beyond. Snow removal services have been provided by a combination of
the city of Muskegon’s Public Works Department and a private contractor.
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 City DPW crews have been providing summer landscaping services ever since.
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 and the flowers and maintenance provided by a private
contractor. Fall clean-up will consist of removal of leaves from the BID district and preparation of
the planning beds for the winter. The reduction in the footprint of the BID will not reduce the
amount of landscape work.
Marketing, promotion, events: The BID will no longer provide resources for marketing,
promotion and events, leaving those services up to the DDA or other groups.
Streetscape: The BID will no longer provide resources for the broad streetscape category,
leaving those services up to the DDA or other groups.
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 as an administrative fee was added
to the budget in 2018 going forward. With DMN ending operations June 30, 2019 ina
consolidation with the DDA, the DDA and the City of Muskegon took over downtown
management. The administrative fee will be paid to the DDA, which will manage the BID.
The 2021-2023 BID budget and work plan was approved by a vote of the BID Board on July 27,
2020 The BID board vote results were:
2020 BID Budget Vote:
Member Yes No Abstention Motion/Support Absent
Chair Bob
Tarrant
VC Bruce
Lindstrom
John Riegler
Phyllis Watson-
Laudermill
Frank Peterson
Mike Hennessy
Kathy Denison
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1368.74
9 .901423683
CAP
LHIANMKCE
LC16A5Y
RG1SAC2OMPTVI(WE5ND
24-30
0.3618247 0.167 2 0.7 81 0.15 3 0.14387
bPp>>D>SD>Y
9.045167 0.41697 0.1926453 0.37854 0.358496
MI MI MI MI MI
LOSTRWINPAECUKM
AM3OV1RE6IS AW2ESV8T5RN AWC1LV6E3Y AW5ESV0TRN AW4ESV9T5RN
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