Downtown Business Improvement District Minutes 07-25-2017

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      Downtown Muskegon Business Improvement District
                                      Meeting Minutes
                                         July 25, 2017
                          380 Western Ave., Suite 202 Muskegon, MI at 4 PM

1) Call to Order: 4:03 PM
       Doug Pollock (Chairman), Gary Post (VC), Bob Tarrant, Clyde Whitehouse, Mike
       Hennessy, Frank Peterson, Bruce Lindstrom and Phyllis Watson-Laudermill.

       Excused Absent(s): John Riegler

       Guests: Dave Alexander, Downtown Muskegon Now director; Muskegon City
       Commissioner Ken Johnson and Dennis Lohman, Northwest Industrial Supply;
       Muskegon DPW Director Mohammed Al-Shatel and David Burlingame..

2) Consent Agenda

       a) Approval of Agenda, minutes May 23, 2017, and acceptance of the financial
          statements as of June 30, 2017,

       Motion: Frank Peterson
       Support: Bruce Lindstrom
       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) The board was asked to take a revote vote on a recommendation to the Muskegon
          City Commission on a three-year renewal of the Business Improvement District as
          not all members were present for the initial May 23 vote: The recommendation is
          based upon the belief that 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.

       Clyde Whitehouse questioned the three-year recommendation. Doug Pollock said that
       after one year in 2016 the board did not feel comfortable establishing it any longer than
       one more year in 2017. But now with two years of historic operations, there is no need
       to go through the administrative and legal process of renewing each year. There is
       hope that the Downtown Development Authority will be in a position to help to service
       downtown by 2020. However, Frank Peterson said it is unknown where the DDA will
       be at in 2020. If there is successful downtown development, there might not be a need
       for the BID at the end of three years, Peterson said.

       Clyde Whitehouse said he thought it should be a one-year recommendation.

      Motion: Frank Peterson
      Support: Gary Post
      Vote: Post, Riegler Tarrant, Lindstrom, Peterson, Watson-Laudermill, Hennessy,
      and Pollock voted “yes”; Whitehouse voted “no.” Passed 7-1.

      b) An annual BID budget based upon approximately $168,151 was recommended for
         2018-2020 at the May 23 meeting. To get all members voting on the recommended
         BID budget, a revote was requested. With potentially additional funds from the past
         two BID budget years of 2016 and 2017, the board recommended 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 recommended 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.

       Concerning future landscaping efforts and expansions in the BID, Mohammed Al-
       Shatel suggested the BID conduct a comprehensive landscaping plan for the district
       before deciding the type and locations of the landscape expansions.

      Motion: Gary Post
      Support: Frank Peterson
      Vote: Post, Riegler Tarrant, Lindstrom, Peterson, Watson-Laudermill, Whitehouse,
      Hennessy, and Pollock voted “yes.” Passed 8-0.

5) New Business

      a) Dave Alexander outlined a solid financial position for the BID as of July 1 with
         $106,240 in the account. He estimated that the anticipated fund balance from each
         of the expenditure categories at the end of 2017 with current spending would be a
         total of $16,853. On top of that, the BID continues to carry about a $20,000 overall
         fund balance going forward.

      b) Dave Alexander said that the city DPW’s landscaping efforts this summer season
         has the downtown looking the best ever. Board members concurred. The city’s
         actual cost to date was $34,000, which includes mowing not paid (20 percent of the
    total) for by BID and plant replacements not contemplated in the BID budget,
    Mohammed Al-Shatel said. This summer the city has shown how the downtown can
    look, he said. Doug Pollock said he is concerned with the $34,000 being spent
    looking out over the next three years. Frank Peterson said the city made the
    commitment to make downtown look right. Next year will not need as much
    intensive work, he said.

 Dave Alexander said that the city is being paid $13,000 for landscaping services by the
 BID and an additional approximately $9,000 to Berry’s Flowers for downtown planters.
 The 2017 landscaping line item is $16,000 with a budget overrun of about $7,000. But
 that the overall BID operational surplus this year is $16,853 to date. Alexander
 recommended the board consider an additional payment to the city DPW for
 landscape services.

 Board members were concerned about future landscape expenditures the next three
 years if the BID is renewed. Al-Shatel said a landscape plan is needed going forward.
 Doug Pollock said that will tell the city commission what costs will be the next three

 David Burlingame asked from the audience what the overall responsibilities are for the
 BID and for the city for projects within the district. Doug Pollock said that is a good
 question. Mohammed Al-Shatel said when it comes to sidewalk clearing and the
 intensity of landscape services, no other place in the city has such resources being
 spent. The reason this work is able to be done and only done in the downtown is for
 the BID.

 Doug Pollock in a discussion of city services for sidewalk snow removal and
 landscaping not to combine the two but to have separate letters of understanding.

 Gary Post suggested that an additional $7,000 payment to the city DPW for additional
 landscaping services for the summer of 2017 would be appropriate.

Motion: Gary Post
Support: Bruce Lindstrom
Vote: All voted in favor (Frank Peterson obstained)

c) The board discussed the future of snow removal services in the BID if the city
   commission approves a three-year renewal. Mohammed Al-Shatel was told to plan
   on doing the sidewalk snow removal for the next three years but parking lot and
   alley services would be bid out for a three-year contract to the private operators.

d) Dave Alexander brought an update to the board on the convention center proposal
   for downtown Muskegon and the “4-4-1” financing approach as a public-private
   partnership among the city of Muskegon, Muskegon County and Parkland
   Development, the owners of the Holiday Inn Muskegon Harbor. The board was
           asked to have Alexander write a letter of support on its behalf, supporting the

       Motion: Phyllis Watson-Laudermill
       Support: Bob Tarrant
       Vote: All voted in favor

6) Old Business
       a) Dave Alexander’s memo discussed the Holiday In the City, future of Western
           Market, update on downtown summer events and downtown development activity.
       b) Next meeting of the BID is Tuesday Sept. 26, 2017 at 4 p.m. in the chamber training
           room, 380 W. Western Ave., Suite 202, Muskegon, MI or at the call of the chair.

7) Adjournment
   5:35 PM
   No Objection

Minutes produced and submitted by Dave Alexander, executive director of Downtown
Muskegon Now.


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