Downtown Development Authority Minutes

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Present: DDA Members: Christopher Johnson, Margene Buckhave, Jim DeHaan, Lou LaChance, Dave Larsen, Jim Long, Rick Shaffner.

Absent: Lynda Heaton, Greg Presley (both excused)

Also Present: City Manager Gary Word, DDA Director Lori Ward, Assistant City Manager/Finance Director Nicolette Bateson, DPW Director Jim Gallogly, Police Chief Jim Petres, Recording Secretary Carol Kasprowicz, School Board President Joan Wadsworth, School Finance Director John Street, Reporter Candice Cunningham

Approval of Minutes: There being no corrections or additions, the minutes of the May 13, 2003 meeting and the minutes of the Special Joint Meeting of June 5, 2003 were approved.

New Business:

Resolution of Intent to Issue Bonds

Assistant City Manager/Finance Director Bateson reviewed the process in issuing limited tax obligation bonds and offered a sample timeline. This included

- the adoption of a resolution by the DDA certifying the tax increments and requesting the City to issue bonds,

- the adoption of a resolution of Notice of Intent by the City Council,

- the publishing of the Notice of Intent (giving rise to a 45-day right of referendum),

- the adoption by the City Council of a bond authorizing resolution,

- preparation of preliminary official statements,

- the offering of bonds for sale, and

- awarding of bond sale by City Council.

Bateson also presented and reviewed the tax increment revenues that are projected to be available for the payment of the bonds over a 20-year period. An increase of 3% per year in tax increment revenues was projected in the 20-year period. It was noted the debt of the 1994 bonds will be paid off in FY 2009. However, once the 1994 bonds are paid, any tax revenue received from the schools will cease, as mandated by the requirements of Proposal A. Discussion ensued regarding the financial responsibilities of the DDA and the tax implications of the DDA ceasing to exist.

Motion DeHaan, seconded by Larsen to approve the Resolution Requesting Issuance to Issue Bonds and to name Gary Word as Secretary of the DDA. Motion carried unanimously.

Adjustment of Maintenance and Supply Contract for Public Restrooms

DDA Director Ward listed the expenses incurred during the past year regarding the upkeep of the three public restrooms located in the Old Church Square. The Buckhaves had contracted with the City to rent out and maintain the restrooms. The rent had been contracted at $325 per month for all three bathrooms; expenses for maintenance and supplies were to be reimbursed at $585 per month. After one year of maintaining the restrooms, it was reported that the expenses have averaged $1198 per month.

Motion DeHaan, seconded by Shaffner to increase the monthly reimbursement for supplies and maintenance of the three public restrooms from $585 per month to $900 per month. Voice vote: Yes: Johnson, DeHaan, LaChance, Larsen, Shaffner. No: Long. (Buckhave abstained.)

Development of DDA Streetscape Design Guidelines

Development of DDA Street and Parking Lot Tree Master Plan

The purpose of the development of streetscape design guidelines and the establishment of a street and parking lot tree master plan would be consistency in appearance and quality of future developments. The guidelines and master plan would ensure a systematic approach to the choice of street lighting, trees, plants, street furniture, signage, graphics, and similar points of design. Russell Design had submitted a proposal for each design application. Discussion centered on the need for the development of guidelines, the availability of existing resources, and the exemption of requirement of bids for professional services. It was suggested that proposals be sought from Grissim Metz and Carlisle Wortman and Associates for both applications. It was also suggested that Russell Design be made aware of the additional requests.

Request for Reimbursement of Parking Enforcement

The Police Department is requesting the reimbursement of costs related to the enforcement of the downtown parking management plan instituted in Fall 2002. The DDA had approved funding of $6000 for the use of part-time officers for parking enforcement through December 2002. In January 2003, the time spent by the part-time officers was divided among various activities which included the parking enforcement. As a result, the amount spent actually engaged in parking enforcement had been identified. The cost of the program over the original budget amount is $12,488. The remaining amount to be reimbursed is $6,488. Discussion took place regarding the use and non-use of various parking areas in downtown, the decrease of need for extensive parking enforcement due to the learning curve experienced by the employees, and the repository of the revenue generated by the parking tickets.

Motion Long, seconded by Larsen to approve the transfer of DDA funds in the amount of $6,488 to the Police Department budget to cover the expenses incurred by the part time police officers in parking enforcement. Motion carried unanimously.

DDA Extension

DDA Boundary Expansion

The existence of the DDA is tied directly to the financial obligations incurred for the purpose of public improvement in its geographic boundaries. Director Ward reviewed the present Tax Increment Financing (TIF) Plan, which identified the projects funded by the taxes generated in the Plan. The present TIF plan funds the bond debt incurred for the Mainstreet ’93 project. This bond debt will end in 2008.

Long leaves at 8:55 a.m.

The expansion of the DDA boundaries has been proposed to include the Northville Downs, the Balenger/Foundry Flask area, and the businesses on north Wing Street. Discussion included the purpose of a DDA, and the effect of an expanded DDA on captured tax revenue. It was suggested the expansion of the DDA be postponed until next year.

Motion DeHaan, seconded by Shaffner to recommend to City Council the extension of the DDA and support the expansion of the DDA boundaries and TIF district. Motion carried unanimously.

Meeting adjourned 9:15 a.m.

Respectfully submitted,

Carol T. Kasprowicz

Recording Secretary