Lakeside Business Improvement District Agenda 09-09-2019

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            Lakeside Business Improvement District

                                      Meeting Agenda

                                       Sept. 9, 20r9

                Muskegon City Hall, 933 Terrace, Muskegon, Ml at 8 AM

1) Call to Order/Dave Alexander, city of Muskegon

2) Election of chair and vice chair

3) Consent Agenda

   a) Approval of Agenda
   b) Approval of Minutes from the meeting Aug. 20, 2019

4) Public Comment (on an agenda item)

5) New Business

   a) Acceptance of Ann Funk's resignation/replacement recommendation
   b) Adoption of By-Laws
   c) Discussion of the future of a special assessment
   d) Review of special assessment duration, inclusion of properties, rate and assessment
      parameters, budget and work plan.
   e) Discussion of relationship with a CIA and Lakeside District Association
   f) Future Lakeside BID meetings and schedule

6) Other Business

   a) As determined by BID board members
   b) Announcement of next meeting

7) Adjournment
                                       NOTICE

                       CITY OF MUSKEGON
                            SPECIAL
    LAKESIDE BUSINESS IMPROVEMENT DISTRICT BOARD MEETING


A special Lakeside Business Improvement District Board meeting is scheduled for
Monday, Sept. 9, 2019 at 8 a.m. at Muskegon City Hall (Conference Room 103), 933
Terrace, Muskegon, MI 49440. The newly established BID board is attempting to
convene a quorum to select officers, establish bylaws, set a meeting schedule and to
initially discuss the process of establishing a BID assessment. No formal action on a BID
assessment is expected.


Date: Aug. 28, 2019.



 AMERICAN DISABILITY ACT POLICY FOR ACCESS TO OPEN MEETINGS OF
      THE CITY OF MUSKEGON AND ANY OF ITS COMMITTEES OR
                        SUBCOMMITTEES


The City of Muskegon will provide necessary reasonable auxiliary aids and services,
such as signers for the hearing impaired and audio tapes of printed materials being
considered at the meeting, to individuals with disabilities who want to attend the meeting
with twenty-four (24) hours notice to the City of Muskegon. Individuals with disabilities
requiring auxiliary aids or services should contact the City of Muskegon by writing or
calling the following:

                                      Ann Marie Cummings, MMC
                                      City Clerk
                                      933 Terrace Street, Muskegon, MI 49440
                                      (231) 724-6705
To: Lakeside BID Board

From: Dave Alexander, city business development manager

Re: Lakeside BID organizational meeting

Date: 9-3-2019



The organizational meeting for the Lakeside Business Improvement District is Monday Sept. 9 at
8 a.m. at Muskegon City Hall. There are seven members of the BID board with one resignation .
You will need four members to conduct a meeting. Last time you will see in the Aug. 20 meeting
minutes that you only had three.

Chair/vice chair: You will need to start the organizational meeting with selecting your
leadership. The chair will continue to conduct the meeting but as staff I am there to guide and
advise.

Agenda and public comment: I have suggested an agenda for the meeting and usually you
would allow anyone from the public to provide comment or ask questions when recognized by
the chair.

Resignation: Ann Funk does not want to be on the BID board despite being suggested for
membership and approved by the city commission. You' ll need to accept the resignation and
suggest a replacement to the city commission. The group has suggested Kathy Fearnl ey of th e
Lakeshore Credit Union.

By-laws: Based on the downtown BID by-laws, I have drafted some for you to consider. The key
question to begin with is how many members you want. Increasing it beyond 7 such as 9 is your
decision.

Future of a special assessment: A special assessment for 2020 is not realistic in that all of the
public hearings and approvals need to be done Oct. 31. The board needs to discuss the whole
special assessment concept for Lakeside. I have some draft documents to help you through that
process. In the meantime, you need to explore a public-private arrangement for the next year' s
snow remove and landscaping.

Meetings: The BID board needs to decide how often it should meet with a time and dates.
                Lakeside Business Improvement District
                                       Meeting Minutes

                                         Aug.20,2010

                        Muskegon City Hall, 933 Terrace, Muskegon, Ml at 8 AM



1) Call to Order: 8:01 PM
   Attendance: Troy Wasserman, Frank Peterson and Mark Flermoen,

      Excused Absent(s): Blake Evans, Ann Funk, Michael Kordecki and Dick Ghezzi.

      Guests: Dave Alexander, city Business Development Manager; and Kathy Fearnley,
      Lakeshore Credit Union

2) Adjournment

   The meeting was called by Dave Alexander, Lakeside BID staff, for purposes of the
   Lakeside BID Board organization but was adjourned at 8:05 a.m. for lack of a quorum. A
   special meeting will be called for Lakeside BID board organization for Monday Sept. 9 at 8
   a.m. in conference room 103 of Muskegon City Hall, 933 Terrace, Muskegon, Ml 49440.



3) Proposed Agenda:

   Election of chair and vjce chair, adoption of bylaws, decision on whether to recommend a
   BID special assessment to the city commission, :beginning when and for what duration; final
   recommendation .of the BID map/assessed properties, recommended rate or cents per
   square foot of lancf an~ any rules as to those assessments and budget/work plan

4) Discussion

   It was determined that with the inability to begin the BID special assessment process at the
   Aug . 20 meeting, the BID Board would be unable to get all of the public actions needed by
   Oct. 31 for a 2020 special assessment. A special assessment could be considered within
   the next 12 months for.2021. In the meantime, city staff and Lakeside leaders will explore
   creative public-private partnerships this fall to get an initial sidewalk snow removal service
   this winter and landscape maintenance next spring.


Minutes produced and submitted by Dave Alexander, city of Muskegon Business Development
Manager.




                                                 1
                       Bylaws


                          Of


The Muskegon Lakeside Business Improvement District




                  Drafted Aug. 19, 2019
                   Adopted ???, 2019




                            1
                                              Purpose

The Muskegon Lakeside Business Improvement District was created to provide enhanced
services in the Lakeside Business District through marketing activities, common area
maintenance such as snow removal and beautification. The intention in the BID's creation was
to provide a "funding bridge" to a newly created Lakeside Corridor Improvement District and
eventually have the BID expire as the CIA becomes able to fund the activities of the BID.




                                               Article 1

                                    Property Classifications

                                       Class "A" Properties

Properties located within Muskegon Lakeside Business Improvement District which are currently
    used for, or zoned for commercial, office, retail or other similar activities not listed below.

                                       Class "B" Properties

   Properties located within the Muskegon Lakeside Business Improvement District which are
               currently use for, or zoned for industrial, automotive or public utility.

                                       Class "C" Properties

   Properties located within the Muskegon Lakeside Business Improvement District which are
                          currently used for nonprofit or religious activities

                                        Class "D" Properties

   Properties located within the Muskegon Lakeside Business Improvement District which are
              currently used for, or zoned for educational or governmental activities.

  Note: Under current law of the state of Michigan, properties zoned for or exclusively used for
    residential within a Business Improvement District are exempt from special assessments.




                                               Article 2

                                         Governing Board
                                     Section 2.1 - Composition


                                                    2
The Muskegon Lakeside Business Improvement District Board shall consist of seven (7)
members. Board composition shall be consistent with the State of Michigan enabling legislation,
Act No. 120 of the Public Acts of 1961. Statue allows for between seven (7) and fifteen (15)
members. Board membership may be increased or decreased by a recommendation of the BID
Board at the first quarterly annual meeting in January with the new board composition taking
effect the following January 1.

                                    Section 2.2 - Board Terms

Each board member will be appointed to a three (3) year term with no more than half of board
seats expiring in one year. For the initial board, board members will drawl lots to determine what
members will serve one (1 ), two (2) and three (3) year teams. Board terms end on December 31
of the expiring year. The first year term for inaugural board members will expire on December
31, 2016 following the first full year of service.



                                   Section 2.3 - Board Openings

Nominees for annual openings shall be indorsed by the Muskegon Lakeside Business
Improvement District board at its fall quarterly meeting and then sent to the Muskegon City
Commission for formal appointment with terms beginning at the end of each January.



                                  Section 2.4 - Regular Openings

Individuals seeking nomination/appointment to the board should complete an application of
interest through the city of Muskegon's Talent Bank. If more individuals express interest in open
positions than there are positions the Muskegon Lakeside Business Improvement District will
make a final recommendation to the city commission with a majority vote.



                        Section 2.5 - Vacancies, Resignations and Removals

Vacancies which occur between fall quarterly meetings shall be filled by appointment via a
 recommendation of the Muskegon Lakeside Business Improvement District Board to the
 Muskegon City Commission.



                                     Section 2.6- Compensation



                                                     3
Muskegon Lakeside Business Improvement District Board members shall not receive any
compensation for their services.




                                                Article 3

                                                Officers
                      Section 3.1 - Appointment of Chair and Vice-Chair

The Muskegon Lakeside Business Improvement District Board shall annually select one of its
members to serve as Chair and Vice-Chair.

The Chair shall preside at all meetings.

The Vice-Chair shall act in the capacity of the Chair in the absence of the Chair. In the event of
a vacancy in the office of Chair, the Vice-Chair will assume the office of Chair and the
Muskegon Lakeside Business Improvement District Board shall select a successor to the office
of Vice-Chair at the earliest practical time.




                                      Section 3.2 - Secretary

The Muskegon Lakeside Business Improvement District Board shall designate a qualified
member or members of city of Muskegon staff to serve as secretary or co-secretaries of the
Muskegon Lakeside Business Improvement District Board. The Secretary shall file a detailed
record of all proceedings of the board and as manager take all other action as necessary for the
proper and expeditious execution of all board actions. The Muskegon Lakeside Business
Improvement District Board may pay a reasonable administrative fee to the city for such
secretarial/managerial services.

                                       Section 3.4 - Treasurer

The Muskegon Lakeside Business Improvement District Board will not have a designated
treasurer but appoints the city of Muskegon Finance Department to handle all accounting and
financial management needs of the Muskegon Lakeshore Business Improvement District.




                                                     4
                                            Article 4

                                           Meetings
                                Section 4.1 - Open Meetings Act

All meeting of the Muskegon Lakeside Business Improvement District Board shall be conducted
at a public meeting held in compliance with the Michigan Open Meetings Act, Act No. 267 of the
Public Acts of 1976. Any property owner or business owner located within the Muskegon
Lakeside Business Improvement District shall be given the opportunity to be heard.




                                  Section 4.2 - Meetings Held

The Muskegon Lakeside Business Improvement District Board shall meet a minimum of once
per quarter. Additional meetings may be called between standing meetings with no less than 48
hours notice or special meetings with no less than 18 hours notice per the state's Opening
Meetings Act.

Standing quarterly meeting should cover:

        1st Quarterly Meeting - Annual report/selection of chair & Vice-chair
    -   2 nd Quarterly Meeting - Discussion of following year's services
        3 rd Quarterly Meeting - Discussion of assessment based on recommended services
    -   4 th Quarterly Meeting - Recommendation of Assessment & recommendation of new
        board members.

                                Section 4.3 - Notice of Meetings

Notices of all meetings (regularly scheduled and special) shall be posted per the state's
Opening Meetings Act on the City of Muskegon's website and the appropriate Lakeside
Business District website.

                                 Section 4.4 - Amending Bylaws

The Muskegon Lakeside Business Improvement District Bylaws may be amended by a simple
 majority vote of the board .




                                                  5
                                            Article 5

                                       Administration

                                     Section 5.1 - Records

All records of the Muskegon Lakeside Business Improvement District board are available to the
public in compliance with the Michigan Freedom of Information Act. Meeting agendas, board
packets, meeting minutes and annual financials shall be posted district's city website page.



                                 Section 5.2 - Annual Meeting

Once the Muskegon Lakeside Business Improvement District is operating through a special
assessment, the board will schedule a public annual meeting to present the current and future
budget of the Muskegon Lakeside Improvement District, discussion of future needs and
directions and allow the public to ask questions and provide input.




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                  = 2019 Lakeside BID District
               Muskegon Lakeside Business Improvement District
2020 Assessment
Regarding: Assessment for 2020
Date: August 19, 2019
To: Muskegon City Clerk/City Commission
From: Muskegon Lakeside Business Improvement District Board

Overview:

The Muskegon City Commission approved an initial resolution establishing the Muskegon Lakeside Business
Improvement District and appointed six of seven board members at its Aug. 13, 2019 meeting. Following a
review of requested and needed services within the Muskegon Lakeside Business Improvement District, the
board recommends to the Muskegon City Commission to create a special assessment to fund the work of the
Muskegon Lakeside Business Improvement District for 1 YEAR with an assessment be established for the
2020 calendar year.

The Lakeside BID board recommends the Business Improvement District boundaries be as the attached map,
with the assessment rates, property classifications and maximum assessments be established as listed below
and the assessments be placed on the 2020 winter property tax bills. The Lakeside BID is being used as a
"funding bridge" to a Lakeside Corridor Improvement District. The Lakeside BID Board will use 2020 to study
and review the Lakeside BID District and the assessment structure for possibly a multi-year request for 2021
and until the Corridor Improvement District is able to fund the Lakeside Business District work, ..

201 7 Assessment:

        "Class A" Properties, as defined in the BID Bylaws, shall be assessed an annual assessment of
        $0.05/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 In the 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 $0.02.5/sf
        with no assessment to exceed $1 ,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.

        Based on this assessment structure, approximately $24,933 can expected to be collected for services
        to support businesses and property owners within the Lakeside BID in 2020.
        (A budget recommendation and explanation is attached)

    -   The assessment shall be placed on the 2020 winter property tax bills.

        The 2020 Lakeside BID district, assessment roll and collection method was discussed at a ?????,
        2020 Lakeside BID Board special meeting. A resolution supporting the above was voted on at an
        ?????, 2020 special BID Board meeting. The vote result was as follows:
2020 Lakeside BID Vote:

     Member           Yes   No   Abstention   Motion/Support   Absent
Troy Wasserman
Richard Ghezzi
Mark Flermoen
Michael Kordecki
Ann Funk                                                         X
Frank Peterson
Blake Evans
                                                            Pro_Qosed .... DRAFT


             Business/Owner                     Address                           Parcel#                    Acerage (sq. ft)   Assessment
       Wasserman's Flowers and Gifts             1595                      61-24-205-529-0004-00               8402.724          $     420.14
                 T4 Group                         1700                     61-24-205-609-0002-00               32500.116         $   1,625.01
            Garrett Law Offices                   1732                     61-24-205-609-0007-00               9239.076          $     461.95
              RCP Marketing                     1756/1786      61-24-205-609-0010-00/61-24-205-609-0013-00     29233.116         $   1,461.66
          Richard A Ghezzi Estate                 1812                    61-24-205-596-0001-00                18251.64         $     912.58
                  Frontier                        1831                     61-24-205-624-0001-00               12867.624        $     321.69
         Pastoor James R JR Trust                 1836                     61-24-205-596-0002-00               8089.092         $     404.45
              VF Ventures LLC                     1845                     61-24-205-624-0003-00               22111.056        $    1,105.55
              Patricia Roy, DO                    1864                     61-24-205-596-0002-10               12780.504        $     639.03
             Paul R Korndorfer                    1883                     61-24-205-625-0001-00                8311.248        $     415.56
             Paul R Korndorfer                    1891                     61-24-205-625-0002-00               7853.868         $     392.69
             SHM Great Lakes                      1920                     61-24-205-596-0008-00              1213002.252       $    2,000.00
    The Only Cannoli/ Lake Effect Sport/          1927                     61-24-205-627-0001-00               10227.888        $      511.39
            Lakeside Emporium                     1930                     61-24-205-596-0004-00               15555.276        $      777.76
             Richard P Ghezzi                     1937                     61-24-205-627-0002-00               9265.212         $     463.26
           Lauren Taylor Eyeware                  1945                     61-24-205-627-0003-00               5275.116         $     263.76
          1950 Lakeshore Drve LLC                 1950                     61-24-205-596-0004-20               12026.916        $     601.35
                  Level 6                         1953                     61-24-205-627-0004-00               8280.756         $     414.04
Lakeside Landing/ Lakeshore Tavern/The Table      1965                     61-24-205-627-0005-00               8502.912         $     425.15
             Marine Tap Room                      1983                     61-24-205-635-0001-00               8154.432         $     407.72
             Richard P Ghezzi                     1988                     61-24-205-596-0005-00               18443.304        $      922.17
           BTBG Investments LLC                   1991                     61-24-205-635-0002-00               46121.328        $    2,000.00
Zaloma's Pizza/Anchor Property Management         2009                     61-24-205-635-0006-00                6037.416        $     301.87
               Ghezzi's Market                    2017                     61-24-205-635-0007-00                8076.024        $     403.80
    Gawkowski Properties Lakeshore LLC            2020                     61-24-205-596-0007-00                5654.088        $     282.70
           Apple Knits and Purls                  2033                     61-24-205-636-0001-00                7531.524        $     376.58
        Complete Automotive Servies               2034                     61-24-205-597-0001-00                9487.368        $     237.18
             Auto Body Clinic                     2054                     61-24-205-597-0004-00                7614.288        $      190.36
Cannon Service Center/ Shoreline Service Bait     2080                     61-24-205-597-0005-00                15071.76        $      376.79
      Lakeshore Federal Credit Union              2182                     61-24-205-597-0017-00               32569.812        $    1,628.49
        Daniel C. Swarwar D.D.S P.C               2187                     61-24-205-641-0005-00               10807.236        $      540.36
       Lakeshore Environmental Inc.               2341                     61-24-205-664-0011-00                7923.564        $      396.18
             Lotta Lakeshore                      2445                     61-24-205-677-0005-00                 9474.3         $      473.72
           Waters Edge Fitness                    2465                     61-24-205-678-0001-02                16552.8         $      827.64
                Frosty Cove                       2565                     61-24-205-693-0001-01               39012.336        $    1,950.62
                                                       TOTAL                                      1700307.972 $   24,933.20




                                                       Lakeside BID assessment rates
                  Total # of Parcels       84


                    Commercial             32          5 cents a square foot/capped at $2,000
               Automotive and Utility      4           2.5 cents a square foot/capped at $1,000
                       Nonprofit            2          no assessment
                   Governmental            8           no assessment
                       Residential         38          no assessment




Proposed Lakeside BID budget


Snow removal                              $12,000
Land scaping                               $4,500
Promotions/marketing                       $4,000
Administration                             $3,750
Contingency                                     $683
Total                                   $24,933.00
         Muskegon Lakeside Business Improvement District
Budget Recommendation & Explanation
Date: August 19, 2019
To: Muskegon City Clerk/City Commission
From: Muskegon Lakeside Business Improvement District Board

Budget Recommendation:

This is a proposed initial-year budget for the Muskegon Lakeside Business Improvement
District. Based on a two-tier assessment where "Class A" Properties pay $0.05/sf annual and
"Class B" Properties pay $0.02.5/sf annual the Muskegon Lakeside BID can expect to generate
$24,933 during 2020.

Based on the proposed Assessment, this one-year 2020 budget is recommended on a vote of
the Lakeside BID Board at its special?????, 2020 meeting.

                      Proposed 2020 Lakeside BID budget

 2020 Estimated Revenues                        $24,933
              2017 Expenditures
 Snow removal                                   ($12,000)
 Landscaping                                    ($4,500)
 Marketing, promotion, events                   ($4,000)
 Administration                                 ($3,750)


 Total                                          ($24,250)

 Estimated Fund Balance Dec. 31, 2020           $683


Budget Note:

The Lakeside BID Board will need to decide on management of the BID, which likely will be city
economic development and planning staff.

All unused funds go to cash reserves in fund balance.

Budget Explanation:

Snow removal: The Bl D's largest line item is dedicated to snowplowing and salt application
along sidewalks within the Lakeside BID where the Class A and Class B properties are located
along Lakeshore Drive. Funds may also be used to clear parking areas which are generally
used by the public shopping and visiting the Lakeside Business District. The Lakeside BID
board will seek a proposal for the sidewalk services from the city of Muskegon Department of
Public Works and also seek private sector snow removal proposals for the sidewalk and parking
lot services.

Landscaping: The Muskegon Lakeside BID will contract the city of Muskegon DPW and/or
private sector landscaping companies to conduct a spring cleanup of public common area
planting beds along Lakeshore Drive within the Lakeside BID, and general cleanup of grounds
as a result from winter wear and tear. Summer Landscaping includes the wedding and
fertilization of common areas throughout the BID. This line item also includes the planting and
maintenance of any 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 Lakeside BID district and preparation of the planning beds for the
winter.
Marketing, promotion. events: The Lakeside BID will take over the marketing and promotion of
the Lakeside Business District that for years had been handled by the private, non-profit
Lakeside District Association. Lakeside event support may also be provided by the city of
Muskegon event team with promotional assistance from the Lakeside BID.

Administration: The Muskegon Lakeside BID Board has the option of appointing city of
Muskegon economic development and planning staff to administer the BID. An administrative
fee could be paid to the city.




2020 Lakeside BID Budget Vote:

     Member            Yes      No      Abstention       Motion/Support             Absent
 Trov Wasserman
 Richard Ghezzi
 Mark Flermoen
 Michael Kordecki
 Ann Funk                                                                              X
 Frank Peterson
 Blake Evans

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