Downtown Development Authority

DDA Board of Directors Monday, October 28, 2019 at 3:30 p.m. LOCATION City Hall Conference Room 3rd Floor Room 302A Informational Meeting AGENDA 1. Call to order Chair 2. Welcome and Introductions Chair 3. Approval of minutes from July 22, 2019 (action required) Chair 4. Financials (action required) Finance Director a. Preliminary year-end (FY 19) update b. Interim financial statements 5. Project Update Staff a. Real Estate Improvement Fund b. Battle Rock c. McCamly Plaza d. Milton Tower e. Other 6. Member/Citizen comment 7. Adjourn Chair Attachments - Agenda - Minutes from July 22, 2019 - Preliminary FY 19 year-end update - Interim financials through September, 2019 - Real Estate Improvement Fund project map - Updated board roster  BATTLE CREEK DOWNTOWN DEVELOPMENT AUTHORITY BOARD OF DIRECTORS Monday, July 22, 2019 MEMBERS PRESENT: Rebecca Fleury, Ross Simpson, Paul Conkey, Edward Guzzo, Cody Newman, John Godfrey, Kyra Wallace Ex-Officio: Commissioner Susan Baldwin, Commissioner Kate Flores ABSENT: Kim Carter, Linda Morrison OTHERS PRESENT: Ted Dearing, Carl Fedders (Engineering), Sarah McGinnis Call to order: Mr. Dearing called the meeting to order at 3:35pm. Welcome new members John Godfrey and Kyra Wallace. City Clerk Victoria Houser administered oaths of office. Election of Officers: MOTION: Mr. Conkey moved to accept the Chair position for the Battle Creek Downtown Development Authority Board of Directors. Commissioner Baldwin supported the motion. Unanimously approved. MOTION: Mr. Godfrey moved to approve the listed Board positions. Mr. Simpson supported the motion. Unanimously approved. Chair Paul Conkey Vice Chair Ed Guzzo Treasurer Kim Carter Secretary Rebecca Fleury Approval of Minutes: MOTION: Ms. Baldwin moved that the Battle Creek Downtown Development Authority Board of Directors approve the meeting minutes from April 22, 2019 as presented. Mr. Guzzo supported the motion. Unanimously approved. Review Interim Financial statements: Mr. Dearing reviewed the interim financial report and stated that FY19 revenue is over expenditures by $50,968. That has increased from $38,330 from the last reporting. The Tax Increment Revenue is less than last year but the interest earned has helped increase fund balance. MOTION: Mr. Guzzo moved that the Battle Creek Downtown Development Authority Board of Directors approve the interim financial statements as presented. Mr. Newman supported the motion. Unanimously approved. Columbia Draining Project: Carl Fedders explained the first 1-2” of rain water runoff contains contaminates that are required to be flushed to basins, ponds and Goguac Lake so as not to contaminate the City water system. The Columbia BID has updated two large segments of Columbia Avenue. They are seeking assistance in completing the final section to help bring in developers and improve the water quality. Engineering plans and hydraulic calculations are required at the cost of $80,000. The City has agreed to contribute $30,000, Columbia BID is contributing $30,000 and we are requesting the Downtown Development Authority contribute $20,000. John Hart stated that completing this project will help develop the area. Mr. Guzzo confirmed that the discretionary fund next year has almost $600,000 for projects. Mr. Guzzo stated it is an affordable project and makes the area available and affordable for redevelopment. MOTION: Mr. Godfrey moved that the Battle Creek Downtown Development Authority Board of Directors approve the request to contribute $20,000 to the Columbia Draining Project. Mr. Newman supported the motion. Unanimously approved. 1 Project Report – Ted Dearing/John Hart: Real Estate Improvement Fund: This grant initiative helps address any gap-financing issues for new businesses downtown. The program offers businesses easier access to resources imperative for long-term success. By making eligible improvements to fixed assets/structures, prospective tenants, entrepreneurs and property owners can contribute to the continued transition in downtown Battle Creek. Battle Rock: The project is moving forward. The development agreement has been signed. The Brownfield Plan expenditures have been finalized at $543,000, slightly higher than originally estimated. MOTION: Ms. Flores moved that the Battle Creek Downtown Development Authority Board of Directors support the Brownfield Plan. Mr. Newman supported. Unanimously approved McCamly Plaza Hotel: Regulatory challenges are slowing the process of renovations. Costs have increased. They need a Capital Investor to complete. Any possible sale of the property will likely be contingent on ownership securing a Hilton brand. Milton Tower: Construction continues on the Milton Tower. Pictures and updates are available online. The developer is still hoping to have rental units available by the end of August 2019. New Holland: This project has not been cancelled. The developer is planning to submit a revised OPRA application for commission consideration that will help propel the project on to the next phase of completion. Cargo Shops: Seven shops and two food carts currently open. We are getting event requests from all over the southwest Michigan for special events in our downtown area. Comments: None Adjourn: 4:50pm 2  City of Battle Creek Downtown Development Authority Interim Statement of Revenues, Expenditures and Changes in Fund Balance Budget and Actual Fiscal Year To Date: 6/30/19 PRELIMINARY (updated 10/22/19) 7/1/18-6/30/19 Budget Variance Adopted Budget Amended Budget Transactions Positive/(Negative) GENERAL FUND GENERAL REVENUES: Tax Increment Revenue $ 1,623,155 $ 1,344,494 $ 1,691,562 347,068 State Aid Revenue (Personal Property Tax Replacement) 1,817,933 1,449,833 1,449,833 0 Prior Year Revenue 0 0 2,016 2,016 Rents 23,700 23,700 26,607 2,907 Interest earnings 0 0 27,435 27,435 Miscellaneous 0 0 0 0 Total General Revenues 3,464,788 2,818,027 3,197,453 379,426 EXPENDITURES: Debt Service - Term 2017/2018 Bonds - Pipeline Refunding 2034/2025 2,543,797 2,543,797 2,543,797 0 2013 Capital Improvement Bonds 2033 180,000 - - 0 Total Debt Service 2,723,797 2,543,797 2,543,797 0 General Operating Expenditures: Administration 8,200 21,440 21,830 -390 CBD maintenance 100,000 - - 0 Kellogg Arena support 370,000 370,000 370,000 0 Economic Development Fund support 120,000 - - 0 Downtown Special Project 40,000 - - 0 Total General Operating Expenditures 638,200 391,440 391,830 -390 TOTAL GENERAL FUND REVENUES 3,464,788 2,818,027 3,197,453 379,426 TOTAL GENERAL FUND EXPENDITURES 3,361,997 2,935,237 2,935,627 -390 EXCESS REVENUES OVER (UNDER) OPER. EXPENDITURES $ 102,791 $ (117,210) $ 261,826 379,036 Fund Balance, beginning of year 155,540 155,540 155,540 Fund Balance, end of year (GENERAL FUND) $ 258,331 $ 38,330 $ 417,366  City of Battle Creek Downtown Development Authority Interim Statement of Revenues, Expenditures and Changes in Fund Balance Budget and Actual Fiscal Year To Date: 9/30/19 7/1/19-9/30/19 Budget Variance Adopted Budget Transactions Positive/(Negative) GENERAL FUND GENERAL REVENUES: Tax Increment Revenue $ 2,986,727 $ 2,896,168 -90,559 State Aid Revenue (Personal Property Tax Replacement) 1,462,663 0 -1,462,663 Prior Year Tax Increment Revenue 0 1,398 1,398 Rents 32,326 9,775 -22,551 Interest earnings 0 69 69 Miscellaneous 0 0 0 Total General Revenues 4,481,716 2,907,410 -1,574,306 EXPENDITURES: Debt Service - Term 2017/2018 Bonds - Pipeline Refunding 2034/2025 2,644,797 - 2,644,797 2013 Capital Improvement Bonds 2033 180,000 - 180,000 Total Debt Service 2,824,797 - 2,543,797 General Operating Expenditures: Administration 16,200 3,077 13,123 CBD maintenance 456,551 - 456,551 CBD downtown plantings 50,000 50,000 Street construction - 20,000 -20,000 Downtown Policing 109,342 109,342 Kellogg Arena support 370,000 92,500 277,500 Economic Development Fund support 120,000 - 120,000 Downtown Special Project - - 0 Total General Operating Expenditures 1,122,093 115,577 275,863 TOTAL GENERAL FUND REVENUES 4,481,716 2,907,410 -1,574,306 TOTAL GENERAL FUND EXPENDITURES 3,946,890 115,577 3,831,313 EXCESS REVENUES OVER (UNDER) OPER. EXPENDITURES $ 534,826 $ 2,791,833 2,257,007 Fund Balance, beginning of year as adjusted (PRELIMINARY) 417,366 417,366 Fund Balance, ending (GENERAL FUND) $ 952,192 $ 3,209,199  BATTLE CREEK DOWNTOWN DEVELOPMENT AUTHORITY Authorization: Created and authorized by the City Commission pursuant to Act 197 of the Public Acts of 1975 of the State of Michigan. (Resolution of January 23, 1979.) Appointing Authority: City Manager with approval by City Commission. New appointees must be sworn in. Members: Eight (8) plus Chief Executive Officer of municipality, with at least five (5) members having an interest in property located in the downtown district. Term: Four years, except in filling a vacancy, which term must be just for the unexpired time. (See By-Laws.) Compensation: None, but reimbursement for actual expenses. Property Owners in the District* Telephone Term Expires Edward Guzzo 924-7866 (C) 3-20-2020 125 Sterling Court/49015 Battle Creek Public Schools* Kimberly Carter 964-9458 (B) 7-11-2021 3 W. Van Buren Street Griffin Pub* Paul Conkey 965-7206 (B) 3-20-2022 84 Michigan Avenue W/49017 Clara’s on the River* 963-0966 (B) 3-20-2023 Ross Simpson 44 McCamly Street N/49017 Driven Design Studio* Cody Newman 753-8040 (H) 3-20-2023 11 Carlyle Street/49015 Vandervoort, Christ & Fisher, P.C.* 965-7000 (B) 3-20-2023 Nelson Karre 70 West Michigan Ave., Suite 450/49017 Urban League of Battle Creek* Kyra Wallace 978-3500 7-16-2023 172 W. Van Buren St./49017 BCDDA Membership Page 2 John Godfrey 968-9574 (H) 7-16-2023 625 Morningside Drive/49015 Rebecca L. Fleury City Manager 966-3378 (B) City of Battle Creek Ex-Officio: Susan Baldwin, Commissioner 963-6901 (H) Kate Flores Commissioner 832-2912 (C) Advisory Members: Vacant Kellogg Community College Representative Kelli Scott Calhoun County Administrator Dr. Terrance Lunger Calhoun County Intermediate School Representative Carla Reynolds Calhoun County Commissioner Alternate: 8-21-19 sma