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CITY OF MUSKEGON DOWNTOWN DEVELOPMENT AUTHORITY (DDA) / BROWNFIELD REDEVELOPMENT AUTHORITY (BRA) REGULAR MEETING MINUTES September 13, 2022 The meeting was held in the City Commission Chambers. Chairperson M. Bottomley called the meeting to order at 10:30 AM and roll was taken. MEMBERS PRESENT: M. Bottomley, J. Riegler, M. Johnson Sr., J. Moore, M. Kleaveland, L. Mikesell (joined meeting at 10:43am), B. Hastings, S. Black (joined meeting at 10:35am), D. Pollock, and H. Sytsema. MEMBERS ABSENT: J. Wallace Jr. (excused) STAFF PRESENT: P. Wills, Director of Strategic Initiatives; D. Alexander, Downtown Manager, S. Pulos, Administrative Assistant for Development Services, Wes Dault, Muskegon County Appraiser, OTHERS PRESENT: Eric Helzer APPROVAL OF MINUTES Motion by M. Kleaveland, second by J. Moore, to approve the regular meeting minutes for June 14, 2022. Voice vote, all approved (L. Mikesell and S. Black were not here yet). DOWNTOWN DEVELOPMENT AUTHORITY BUSINESS SEMI-ANNUAL REPORT Beginning Fund Balance: $176,665 Revenues: Tax Increment Collections $321,446 BID Administrative Fee: $17,000 TOTAL: $338,446 Summer Downtown Numbers (May, June, July): Total Visits: 741,900 up 4.1% from 2021. Total Unique Visitors: 399,000 up 7.4% from 2021. Social District beverage stickers: Sold 64,600 through August, compared to 123,000 in all of 2021 … sales are down this year. 2022 Events: The city provided 75 Special Event Permits for Downtown Muskegon this year. There were 53 “major event days” (June through September) with some events sharing the same day. Signature events such as Taste of Muskegon, Parties in the Park, Lakeshore Art Festival, Rebel Road-Bike Time, Unity and (expected) Irish had successful events. Welcome these new businesses to downtown Muskegon so far in 2022: The Leonard, 1021 Jefferson, Brass Moon Vintage, Carlisle’s, Servicios de Esperanaza LLC, and PAL’S Diner. Major downtown developments: • Harbor 31 – Construction is underway on a $120 million mixed-use waterfront development at Terrace and Shoreline Drive. • Adelaide Pointe – Site work is underway and development plans in progress for a $240 million mixed use waterfront development at the far west end of Western Avenue. This development now also includes adjacent Hartshorn Village waterfront residential development. • Samaritas senior housing – 53 units of affordable housing at Spring Street and Clay Avenue to be occupied by the end of 2022. • Muskegon Museum of Art – major $11-million-plus expansion of the art museum in its north parking lot, construction already underway. • Lakeview Lofts II and III and 880 First Street (former AmeriBank building) to divide $6 million in state RAP award announced by the City of Muskegon. • In the works – Redevelopment of 1141 Third (former Oldsmobile dealership), redevelopment of the Morris Street parking lot (Social Security Administration), second building east of The Leonard and completion of Watermark Center under new ownership. The future of downtown organizations and delivery of services: The Downtown Muskegon Business Improvement District special assessments for landscaping and snow removal expire at the end of 2023. Downtown property owners, businesses, institutions, DDA board, BID board and city management will have critical discussions and decisions to make in the coming six months to maintain or improve the quality of downtown and have a sustainable funding plan of support. Watch Muskegon 2.0: The DDA invested $10,000 last year to launch the digital elements of a new Watch Campaign on getting people to move to Muskegon, which supports all of the new downtown living options. The “Find Your … Home, Passion, Place, Self” digital advertising through Google Ads began June 7, targeting Grand Rapids, Kalamazoo and Lansing markets, and those searching “move to Michigan.” Through mid-August, the campaign had 4.27 million impressions and generated 4,900 responses to the Watch/Livability web page. The campaign will run through October. DOWNTOWN DEVELOPMENT AUTHORITY BUSINESS Agenda Item A: Staff is asking the DDA board to review and accept the financial statement for Aug. 31, 2022. Staff recommendation: To accept the Aug. 31, 2022 financial statement. Motion: Motion by L. Mikesell, seconded by B. Hastings, to accept the Aug. 31, 2022 financial statement. Roll Call Vote: M. Bottomley: Yes D. Pollock: Yes J. Riegler: Yes J. Moore: Yes M. Kleaveland: Yes B. Hastings: Yes M. Johnson Sr: Yes L. Mikesell: Yes S. Black: Yes H. Sytsema: Yes All in favor, motion passes. Agenda Item B: Staff is recommending an outline of a DDA façade grant program for the current fiscal year through June 30, 2023 as funded in the budget by the DDA board in June. Staff recommendation: Staff is suggesting a one-to-one match program of grants from $5,000 up to $15,000. That current budget would allow from 15, $5.000 up to five, $15,000 grants. That would incentivize impactful façade projects of $10,000 and above. Eligible applicants would be business and/or property owners of commercial buildings (mixed-use with first floor commercial) within the Muskegon DDA. Applicants must prove ability to fund their half or more of the project and insure that the work will be completed. Eligible improvements would be on exterior building elements and need to comply with city regulations and obtain city permits. Staff would not suggest parking lot or landscaping improvements but improvements that upgrade actual structures. Grants would be awarded on a first come, first serve basis. Work would not be able to start until grant approval is given. Grant payments would be reimbursements to the recipient for work already completed and paid. A committee of staff and DDA board members would review applications. The DDA board would need to determine if it wanted to approve suggested awards as a whole. Motion: Made by B. Hastings, seconded by J. Moore, move to direct staff to formalize a 2022- 23 Muskegon DDA Façade Grant program and return it to the October meeting, with the following provisions; that its specs include language regarding ADA Accessibility with an overall program of $62,500. Motion Tabled: M. Kleaveland, seconded by B. Hastings, move to table the original motion, bringing the issue back from staff in October incorporating details of the board discussion. All in favor, motion passes. Agenda Item C: Summer Events Update (Clerk’s Office-Information Only) There were time constraints on the presentation of this item, it was not addressed at this meeting. Agenda Item D: Watch Muskegon 20. Digital Advertising Report (Information Only) The group was provided information in the form of a handout on this item. No action was taken. BROWNFIELD REDEVELOPMENT AUTHORITY – Updates and Questions (Pete Wills) Information about the 880First project was shared by Eric Heizer. We anticipate coming back with a Brownfield Plan in the coming months. PUBLIC PARTICIPATION None. OTHER BUSINESS WATERMARK/JOHN ROOKS: L. Mikesell stated that John Rooks has a signed Purchase Agreement for the Shaw Walker building (Watermark Center). He has already received one extension and he is in a hurry because there is a lot of work that needs to be done and there is a fair amount of environmental investigation that is needed on the building that has not been taken care of in the past. There is suspicion that there is asbestos in a structural review and will find PFAS. He has an estimated cost of $150,000 and would like a contribution of $50,000 from the City. L. Mikesell stated that as a condition of giving the money, that we as a City, have full access to all environment reports in case the deal does not materialize and a new purchaser is found. She stated that she would like the DDA to contribute half of that $50,000, which would be $25,000. Motion: Made by D. Pollock, seconded by M. Kleaveland, move that if the City decides to move forward with supporting the program, the DDA would support half of the cost, up to $25,000, with excess Façade fund balance. Roll Call Vote: M. Bottomley: Yes D. Pollock: Yes J. Riegler: Yes J. Moore: Yes M. Kleaveland: Yes B. Hastings: Yes M. Johnson Sr: Yes L. Mikesell: Yes S. Black: Yes H. Sytsema: Yes All in favor, motion passes. AJOURNMENT 12:18 pm
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