Downtown Business Improvement District Agenda 08-18-2015

View the PDF version Google Docs PDF Viewer

      Downtown Muskegon Business Improvement District
                                     Meeting Agenda
                                     August 18, 2015
                    380 W. Western Ave., Suite 202 Muskegon, MI at 4PM


1) Call to Order

2) Consent Agenda

   a) Approval of Agenda
   b) Approval of Minutes from the July 22, 2015 Meeting

3) Public Comment (on an agenda item)

4) Unfinished Business

   a) Follow up on questions from July 22 Meeting
   b) Budget/Assessment Recommendation for 2016 (two attachments)

5) New Business

6) Other Business

7) Adjournment
      Downtown Muskegon Business Improvement District
                                      Meeting Minutes
                                        July 22, 2015
                    380 W. Western Ave., Suite 202 Muskegon, MI at 4PM


1) Call to Order: 4:02PM
2) Attendance:
   a) Doug Pollock (Chair), Bruce Lindstrom, John Riegler, Connie Taylor, Bob Tarrant, Mike
       Hennessy, Gary Post

   Excused Absents: Justin Clark (military leave), Frank Peterson (personal)

3) Consent Agenda

   a) Approval of Agenda

       Motion: Bruce Lindstrom
       Support: Connie Taylor
       Vote: All in favor

   b) Approval of Minutes from the May 20, 2015 Meeting

       Motion: John Riegler
       Support: Bruce Lindstrom
       Vote: All in favor

4) 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.

5) Unfinished Business

   a) Setting Meeting Schedule (memo 1)
   It was motioned that a rotation of 3rd Tuesdays every other month for board meetings
   be selected for the remainder of 2015 (starting 9/15/15) and all of 2016. Meetings will
   be at 4PM.

   Motion: Connie Taylor
   Support: Bob Tarrant
   Vote: All in favor

6) New Business

   a) Discussion/recommendation of BID assessment/services (see memo 2)
Chair Pollock and staff recapped a meeting they had with City of Muskegon staff
regarding next steps and logistics for the BID/BID Assessment. Several issues arose
from the meeting:
- Two addition special meetings will need to be held before the assessment goes into
    place
- The minimum assessment should be reconsidered
- City staff indicated that only one billing per year should/could be done
- City staff recommended a multiyear assessment
- There needed to be more explanation of the marketing and service to be provided

Special Meeting/Next Steps Overview:
Staff went over next steps as laid out by the city regarding establishing the special
assessment. There will need to be two additional special meetings. The first would be to
let property owners know that a special assessment district is being recommended and
noting the services which will be provided by the district. There will need to be a two
week notice for this special meeting as well as a mailing. The special meeting would be
held on the same day as a City Commission meeting.

Following that special meeting, the assessment recommendation would be forwarded to
the assessor’s office for a review of reasonableness and to formally determine what
each property owner’s assessment would be. A second mailing would then occur
notifying the property owners of their individual assessment and providing them an
opportunity to respond to the assessment at a second special meeting.

Minimum Assessment:
Staff explained the city’s concern about the minimum assessment, which at the root was
essentially by implementing a minimum those who are assessed the minimum will be
paying a higher price per square foot. There was support from the board about
eliminating the minimum and just doing a straight assessment up to the cap. Staff was
asked how many properties fell into the minimum assessment and for an example of
how much this changed a property’s assessment.

Staff noted there were approximately two dozen properties within the BID which would
be impacted by the minimum assessment and that in a few instances the assessment
more than doubled what an assessment would be based on the square foot formula.
Staff then also pointed out that if the minimum were eliminated it would be a total
decrease in the overall assessment collection of about $2,700.

Chair Pollock noted he was in support of eliminating the minimum since this looks to be
a manageable reduction and it would ensure property owners were on an even playing
field.

Visitor Alan Jager said he was conflicted about if that’s the best because with other
services there could be of bigger benefit to those paying the lower assessment.

Gary Post asked about how the square footage was arrived at. Staff let him know it was
with the county’s assessing software.
Visitor Alan Jager asked about the alleys – staff let him know that most allies in the
downtown are owned and maintained by the individual condo associations and or
privately maintained.

There was a motion to eliminate the minimum assessment and do a straight
assessment up to the cap of $3,000.


Motion: Connie Taylor
Support: Bob Tarrant
Vote: All voted in favor


Number of Billings Annually:
Chair Pollock asked, in light of the meeting with city staff, if it was a dead issue on two
billings or could this be explored further?
Staff thought this matter could be explored further.
There was a consensus among board members that the assessment should be broken
up into two billings as this would make it easier for property owners to plan for the cost of
the new assessment.
           o   Staff was asked to work with city staff on doing two billings, rather than
               the one winter assessment. The board is very much interested in two
               billings


Multi-year assessment:
During the meeting with city staff it was pointed out that these assessments could be
implemented for a period between 1 and 5 years. City staff recommended that the BID
Board consider doing a multiyear assessment. Primary reason being is, even if the same
assessment level is recommended for a subsequent year the same public notification
process will need to be followed as it will technically be a new assessment.
Board members John Riegler and Gary Post indicated support to keep a one year
assessment for the first year and then look at the possibility of doing a multi-year
assessment after that. There was concern that if the endeavor wasn’t a success and/or
the assessment level didn’t prove to be adequate (or too much) that we could find
ourselves stuck until that assessment expired. This would allow for more flexibility, even
if it were a more complicated process.
Visitor Alan Jager said he was actually more in support of a multi-year assessment to
keep things tighter and allow for planning. He was concerned that if it’s a year-to-year
assessment it could go up more quickly.
       Chair Pollock thought that we’ve set the budget following the two worst winters and that
       we might actually have too much money set aside for snow removal – but it was better to
       set aside monies based on the past two winters in this instance.
       There was a general consensus among board members to keep this at one year to start.
       Because this wasn’t a change from the past recommendation, no formal vote was taken.


       Marketing & Services:
       Staff was instructed by the board to “beef up” the explanation of the services and
       marking that was to be done with BID funds and have that presented to the board at
       their next board meeting.


7) Other Business
   Motion for a special board meeting on Tuesday, Aug. 18, 4PM
   This will be a special meeting (not previously set in the rotation)

   Motion: Bob Tarrant
   Support: Connie Taylor
   Vote: All in Favor

8) Adjournment
   4:47PM
   Motion: Gary Post
   Support: Bruce Lindstrom
   No Objection
             Downtown Muskegon Business Improvement District
2016 Assessment
Regarding: Assessment for 2016
Date: August 2015
To: Downtown Muskegon BID Board
From: Staff

Overview:
Following a review of requested and needed services within the Downtown Muskegon Business Improvement
District, the BID Board recommends to the Muskegon City Commission the following 1 YEAR assessment be
established for the 2016 calendar year.
2016 Assessment
   -   “Class A” Properties, as defined in the BID Bylaws, shall be assessed an annual assessment of
       $0.08/sf with no assessment to exceed $3,000. 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/sf with
       no assessment to exceed $3,000. 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 $128,500 can expected to be collected for services
       to support businesses and property owners within the BID.
       (*A budget recommendation & explanation is attached)

   -   The assessment shall be evenly split into two billings to be due in early and mid-2016.


Assessment Vote:
      Member            Yes       No       Abstention        Motion/Support               Absent
 Chair Doug Pollock
 VC Justin Clark
 Bruce Lindstrom
 John Riegler
 Gary Post
 Frank Peterson
 Connie Taylor
 Mike Hennessy
 Bob Tarrant
              Downtown Muskegon Business Improvement District
Budget Recommendation & Explanation
Date: August, 2015
To: Downtown Muskegon BID Board
From: Staff

Budget Recommendation:
Based on a two tier assessment where “Class A” Properties pay $0.08/sf annual and “Class B” Properties pay
$0.02/sf annual the Downtown Muskegon BID can expect to bring in $128,467.36 during 2016. Based on this
Assessment the below budget is recommended.

2016 Downtown Muskegon BID Budget
Downtown Beauitification/Enhancements
  Spring/Fall Clean-up & Summer Landscaping        $ 16,000.00
  Holiday Decorating                               $ 2,500.00
  Banners & Directional Signs                      $ 7,000.00
  Snowplowing & Salt                                $72,000.00
Marketing, Advertising & Development
   Advertising/Marketing & Events                  $ 24,000.00
   Art                                             $ 2,000.00
Reserve Funds                                         $4,967.36
                                       Total       $ 128,467.36

Budget Explanation:
Downtown Beautification/Enhancements
Spring/Fall Clean-up & Summer Landscaping
The Downtown Muskegon BID will contract with one of more third party landscaping companies to conduct a
spring cleanup of common area planning beds within the 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 (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. Unused funds in this line items will be rolled over into the following year’s
landscaping budget.


Holiday Decorating
Funds in this line item will be used to purchase holiday decorations which can be displayed within the BID.
These could be used to complement existing decorations in Hackley Park or expand displays to other areas of
the BID. Unused funds in this line item will be rolled over into the following year’s holiday decorating budget.


Banners & Directional Signs
In an effort to support exiting businesses and help downtown visitors navigate downtown, new directional
signage (wayfinding) needs to be updated throughout the BID. Funds in this line item will be used to
                                                       1
update/create wayfinding and used to brand downtown. Unused funds in this line item will be rolled over into
the following year’s Banners & Directional Signs budgets.


Snowplowing & Salt
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, 1st, 2nd, 3rd, 6th & 7th Streets. Funds will also be used to clear parking areas which
are generally used by the public – specifically the two lots between 2nd and 3rd Streets accessed off of Morris
Ave. Unused funds in this line time will be rolled over into following years snowplowing budget.


Marketing, Advertising & Development
Advertising/Marketing & Events
In an effort to encourage new and repeat visitors to Downtown Muskegon funds will be dedicated to advertising
Downtown Muskegon within the Muskegon metro area. Advertising will focus on billboards and web based
advertising including, but not limited to, internet based advertising on various local/regional websites and
Facebook. The BID will also look at partnering with existing campaigns and marking efforts to try and leverage
additional exposure for Downtown Muskegon. If possible, based on budget constraints, cable TV and Radio
advertising could also be considered. Print advertising in specific tourism and/or trade based publications could
also be considered based on budget restrictions.
The goal with this advertising and marketing effort is to inform the Greater Muskegon Community about the
various shops, services, restaurants, activities and cultural amenities available in downtown Muskegon.
Portions of this budget will also be used to help create new downtown events or enhance existing events
specifically designed to bring individuals into downtown Muskegon businesses. It is expected that some of
these events will be partnerships with other downtown entities. Unused funds in this line item will be rolled over
into the following year’s advertising/marking & events budget.


Art
A key aspect of a downtown experience is one’s sense of place. A strong sense of place can encourage
visitors to linger and explore longer. One way to achieve this sense of place is with public art. Other downtown
partners, including the Community Foundation for Muskegon County, the City of Muskegon, The Muskegon
Museum of Art (among others) have made a strong commitment to enhancing our downtown’s
public/community art. This can be seen in the historical downtown mural project and the various sculptures
scattered throughout the downtown. This art serves as an additional draw to the downtown.
In an effort to support additional public art within the BID, this line item will be used to create a fund which will
set aside monies each year and used to help create, support and/or enhance public art activities within
downtown Muskegon – monies in this line item do not need to be spent each year. Funds would be distributed
at the discretion of the BID Board with the understanding that the art funded in part or fully by the BID Art Fund
be in free public areas of the downtown and displayed in a way that enhances the downtown experience.




                                                          2

Top of Page


New Agenda Notifications

* indicates required