Downtown Development Authority
Meeting Minutes
February 13, 2003
Attending: Al Zehnder, Bud Anscomb, Randy Bierlein, Mike Galsterer, Dave Johnston, Judy Keller, Leone Koester, Art Loeffler, Bill Mossner, Gary Rummel
Absent: Wayne Bronner, Jerry Blohm, John Benson
Also attending were Jamie Furbush (Chamber of Commerce), Charlie Graham and Sheila Stamiris.
There was no public input.
The minutes of the January 9, 2003, meeting were approved. Mossner moved; Anscomb seconded.
Financial Report.
Report through January 31, 2003. The fees for utilities servicing the snow melt are paid 100% by the private property owner. Staff discovered that the electric charges towards snowmelt also included fees to run the sidewalk lighting program in 3A. Stamiris has ordered the installation of a separate meter for billing purposes. Billings to the property owners (River Place) have been corrected. The report is received. Loeffler moved; Anscomb seconded.
It is important that the public know and understand that installation and operation of the snowmelt system is at 100% cost to the property owners. This is something to note in a "year end" review.
Accounts Payable January 25, 2003. These were approved as presented. Rummel moved; Mossner seconded.
Proposed 2002-2003 Budget Amendment. The board approved the amendments as proposed by the DDA Treasurer and Director. Notably:
Revenues were increased to reflect the actual increase in captured taxes and the expected financial payments from the MDOT grant;
A reserve account of $40,000 was established to provide for a shortfall in captured taxes should the assessment on Frankenmuth River Place be decreased at the tax tribunal;
Add direct line item reporting for individual capital projects of the DDA including expenses for grant funded items essentially elminating the line item called "Improvements";
Adjust expenses in salaries, contracted services and other "administrative functions as needed.
The budget amendments were approved as presented. Keller moved; Anscomb seconded.
Rummel asked what the DDA’s intent was regarding the Visitor Center Restrooms. Chamber staff has taken short term steps to repair the broken door on the women’s restroom. Various comments include:
The restrooms are in poor shape and a poor representation of this community.
The DDA as "cookie jar" is a long-term issue. Is this an appropriate expense for the DDA?
Bathrooms are a nice amenity in a business location.
The real issue is not the condition of the restrooms, but the source of funds to improve them. Set a subcommittee to work on this issue for final resolution. Identify alternative funding sources.
Johnston moved to amend our current year budget to provide up to $37,500 in matching funds (dollar for dollar), if the Chamber is willing to find the matching funds and to continue ongoing maintenance of the restroom facilities. Galsterer seconded. There was discussion.
Jamie Furbush confirmed that the Chamber would continue ongoing maintenance. The restrooms were renovated once at Chamber expense.
What is the City’s responsibility? This is a necessary function benefiting the area tax base and infrastructure. The City has gone on record "NOT" to spend general fund money to improve the facility. The City charges $1/year on the lease to the Chamber. The Chamber buildings and property are owned by the City, even though the Chamber raised funds and constructed the "new" section. The City also pays for the Chamber’s portion of the "special assessment" for Frankenmuth 2000.
It was considered that the City and DDA could "trade" financial responsibilities i.e. the City pays for "all the lights" if the DDA would pay for the restrooms. Is this a viable alternative? This concept is suggested for further discussion.
All property owners in the immediate area pay into the DDA funds; the concept of the DDA participating in a "shared" option is reasonable;
Is a "full renovation" necessary?
The motion was approved unanimously.
The letter from the MEDC regarding the upcoming payment schedule for the storm sewer project was received. 13 jobs of the 15 jobs forecast have been created. The Spring Hill Suites Hotel has until 2006 to create the 15 jobs.
Project Reports.
Completing the mast arm project at Jefferson & Main is still in "negotiation" with the contractor. Stamiris is advised to take care "not to win the battle to loose the war." She is still hopeful of a positive ending to the issue.
McClellan Property ADA project at the corner of Main and Cass has not begun. The contractor has applied for a building permit. Plans have been submitted to the code officer; currently, the owner is trying to provide for "all" improvements on the "exterior of the building.
MDOT will repave Main Street from the River to Tuscola and from Genesee to Roedel this Spring with completion by June 1. Stamiris is advised to work closely with MDOT to communicate the project elements and timeline and to provide for commerce during the construction period.
New Business.
DDA Budget FY 2003-2004. Stamiris presented the budget as prepared by her with input from Treasurer Jerry Blohm and as reviewed by Chair Wayne Bronner.
Total Revenues are estimated at $1,058,390. The estimated tax capture for this FY is conservatively estimated. The balance of the MDOT T21 grant is also recognized.
Total Expenses are estimated at $1,109,800. Highlights of the budget include:
Administrative Costs including staff costs, office expense, continuing education, legal and insurance are estimated at $93,118, slightly less than the amended budget for this current fiscal year. An estimated 3% in salary and related fringe benefits is included.
City Service Reiumbursements incuding DPW Wages, Supplies, Utilities, Equipment Rental and the Supervision & Admin fee total $141,354. A similar 3% raise in DPW Wages and Supervision & Admin fee are included. Additional funds are also dedicated to supplies for increased flower purchasing and for utilities for the increased number of light poles.
Capital Improvements including the rest of the MDOT funded project (lights on Weiss Rd), Loan payments for the storm sewer project for a total of $225,000.
Debt Service is estimated based on the payment charts for each series of bond payments, totaling $650,329.
Under this budget, the board anticipates using $51,411 of its fund balance to provide for the projected expenses.
A list of potential projects to be considered for funding was included for review. No action was taken.
Blohm is recommending that the DDA investigate the establishment of a maintenance endowment to provide for the ongoing expenses after the DDA is dissolved.
Galsterer questioned when the amount of "debt service" and "maintenance" would overcome total revenues. Stamiris and Blohm will review.
The board approved the budget; Rummel moved; Galsterer seconded.
Strategic Plan. There was little discussion on the "strategic plan." The statement in the report citing that a City goal was to show that "what is good for the resident is good for the City" is not business friendly and counterproductive to encouraging new investment. Allowing for more time between the Council work meeting and the Formal meeting is considered a good idea.
Completing the Grant Funded Projects. Stamiris wants to order benches, trash cans, and planters to complete the grant funded projects. She also recommends completing the mosaic interior base on the Keinath Fountain (cost of $40,000.) She says that with these things "done", the Chamber platz will be complete. The Gunzenhausen Platz would have the granite obelisk and the metal arch to complete when funds are available. She has budgeted for these expenses.
Members questioned the hardiness of the tile mosaic for maintenance, repair and other long term issues. Stamiris will review with DPW director, architect and construction manager for input.
Miscellaneous. Members Rummel, Bierlein and Koester will be absent for the March 13 meeting.
Meeting adjourned.
Respectfully submitted,
Sheila Stamiris