Lakeview Downtown Development Authority

LAKEVIEW DOWNTOWN DEVELOPMENT AUTHORITY AGENDA Regularly Scheduled Meeting May 4, 2022 4:30 pm City Commission Chamber – City Hall 10 N. Division Street 1. Welcome and introductions (as needed) 2. Approval of minutes October 26, 2021 (action required) 3. Approval of the FY 2021 Annual Audit (action required) 4. Approval of the FY 2021 Annual Report (action required) 5. Adoption of the FY 23 budget (action required) 6. Project updates a. Request for proposal b. Detour routes 7. Public comment 8. Board member comment 9. Adjourn Attachments - Agenda - Minutes from October 26, 2021 - FY 2021 Annual Audit - FY 2021 Annual Report - FY 23 budget - Beckley Rd. corridor RFP - Detour Routes for I-94 DB Project NEXT MEETING SCHEDULED FOR October 25, 2022 1  Lakeview Downtown Development Authority Minutes of the Meeting of October 26, 2021 Virtual Meeting - 4:30pm. MEMBERS PRESENT: David Rost, Dave Schweitzer, Anmar Atchu, T.R. Shaw OTHERS: Assistant City Manager Ted Dearing, Finance Services Manager, Kourtney Matuschka, Field Services Superintendent Todd Gerber, Business Analyst/GIS Manager Chad Frein. The meeting was called to order at 4:33 p.m. Roll Call of Attendees T.R. Shaw, present from Battle Creek Michigan David Rost, present from Battle Creek, Michigan Dave Schweitzer, present from Battle Creek, Michigan Anmar Atchu, present from Reed City, Michigan Motion by Shaw, supported by Schweitzer, to approve the minutes of the regular meeting of April 27, 2021 as submitted. MOTION CARRIED RES. NO. 2021-05 The board briefly reviewed the preliminary yearend financial statements through June 30, 2021. Motion by Schweitzer, supported by Shaw, to accept the preliminary yearend financials as submitted pending audit. MOTION CARRIED RES. NO. 2021-06 Staff presented a short overview of the interim financial statements through September, 2021. Motion by Shaw, supported by Schweitzer, to accept the interim financial statements as submitted pending audit. MOTION CARRIED RES. NO. 2021-07 Staff presented a plan for consideration concerning development projects within the District and possible projects to enhance the physical appearance of the area. Staff also provided a brief update on the status of the Capital Avenue S.W. bridge replacement. Public comment: None Board comments: Marquee for movie theatre. The Board adjourned the meeting at 4:56pm. 2 LAKEVIEW DOWNTOWN DEVELOPMENT AUTHORITY (A Component Unit of the City of Battle Creek, Michigan) Year Ended Financial June 30, 2021 Statements 3 LAKEVIEW DOWNTOWN DEVELOPMENT AUTHORITY Table of Contents Page Independent Auditors’ Report 1 Management’s Discussion and Analysis 3 Basic Financial Statements Statement of Net Position and Governmental Funds 7 Balance Sheet Statement of Activities and Governmental Fund Revenues, Expenditures and Changes in Fund Balances 8 Statement of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual – General Fund 9 Notes to Financial Statements 10 Independent Auditors’ Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 15  4  INDEPENDENT AUDITORS' REPORT December 21, 2021 To the Board of Directors of the Lakeview Downtown Development Authority City of Battle Creek, Michigan Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities and each major fund of the Lakeview Downtown Development Authority, a component unit of the City of Battle Creek, Michigan (the "Authority") as of and for the year ended June 30, 2021, and the related notes to the financial statements, which collectively comprise the Authority's basic financial statements as listed in the table of contents. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Independent Auditors' Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors' judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Authority’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. Rehmann is an independent member of Nexia International. 1 5 We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities and each major fund of the Authority, as of June 30, 2021, and the respective changes in financial position thereof and the budgetary comparison for the general fund for the year then ended in accordance with accounting principles generally accepted in the United States of America. Required Supplementary Information Accounting principles generally accepted in the United States of America require that management's discussion and analysis listed in the table of contents be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 21, 2021, on our consideration of the Authority's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Authority's internal control over financial reporting and compliance. 2 6 MANAGEMENT'S DISCUSSION AND ANALYSIS 3 7 LAKEVIEW DOWNTOWN DEVELOPMENT AUTHORITY Management's Discussion and Analysis The Lakeview Downtown Development Authority (the “Authority”) was established October 27, 1981, pursuant to Public Act 197 of 1975. The Authority is a component unit of the City of Battle Creek, Michigan and presents this management discussion and analysis of its financial performance as an overview of financial activities for the fiscal year ended June 30, 2021. Using this Annual Report This discussion and analysis is intended to serve as an introduction to the Authority’s basic financial statements. The basic financial statements are comprised of the following: • The statement of net position and governmental fund balance sheet presents information on all of the Authority’s assets and liabilities, with the difference between the two reported as net position/fund balance. Over time, increases or decreases in net position/fund balance may serve as a useful indicator of whether the financial position of the Authority is improving or deteriorating. • The statement of activities and governmental fund revenues, expenditures and changes in fund balances presents information showing how the Authority’s net position/fund balance changed during the most recent fiscal year. • The statement of revenues, expenditures and changes in fund balance – budget and actual – general fund presents information showing the comparison of the Authority’s actual revenues and expenditures to what was budgeted. • The notes to the basic financial statements provide additional information that is essential to a full understanding of the data provided in the basic financial statements. Financial Analysis The net position of the Authority is summarized for the purpose of determining the overall fiscal position. As shown below, the Authority’s assets exceeded liabilities by $120,434 at the end of the fiscal year. A comparative analysis of the data is presented below: Net Position as of June 30, 2021 2020 Assets Current and other assets $ 120,434 $ 842,542 Liabilities Other liabilities ‐ 742,263 Net position Unrestricted $ 120,434 $ 100,279 4 8 LAKEVIEW DOWNTOWN DEVELOPMENT AUTHORITY Management's Discussion and Analysis When comparing the current fiscal year to the previous fiscal year, net position increased by $20,155. This increase is a result of increased captured values for property taxes and new electronic billboard lease revenue. Additionally, liabilities decreased from prior year as a result of tax distributions to other municipalities outstanding at June 30, 2020. These distributions were made prior to year end in the current fiscal year. Changes in Net Position for the Year Ending June 30, 2021 2020 Total revenues $ 2,076,593 $ 1,989,816 Total expenses 2,056,438 1,996,931 Change in net position 20,155 (7,115) Net position, beginning of year 100,279 107,394 Net position, end of year $ 120,434 $ 100,279 General Fund Budgetary Highlights The general fund original adopted and final budget reflected revenues equal to expenditures and no change to fund balance. Ultimately, actual revenues were more than budget due to conservative budgeting that did not include the rental income from a new electronic billboard. Actual expenditures were more than budget primarily due to community development expenditure transfers to the taxing jurisdictions greater than budget. This results in an increase of fund balance for the fiscal year of $20,155. Economic Factors The Lakeview Downtown Development Authority's expenses are governed by the laws of the State of Michigan. During 2021, total expenses were $2,056,438. Contacting the Authority This financial report is designed to provide a general overview of the Lakeview Downtown Development Authority's finances and to show accountability for the money it receives and expends. The financial statements can be found on the City’s website: www.battlecreekmi.gov. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the City Revenue Services Director, P.O. Box 1717, Battle Creek, MI 49016‐1717. 5 9 BASIC FINANCIAL STATEMENTS 6 10 LAKEVIEW DOWNTOWN DEVELOPMENT AUTHORITY Statement of Net Position and Governmental Funds Balance Sheet June 30, 2021 Total Capital Governmental Statement of General Projects Funds Adjustments Net Position Assets Pooled cash and investments $ 71,513 $ 46,648 $ 118,161 $ ‐ $ 118,161 Interest receivable 2,273 ‐ 2,273 ‐ 2,273 Total assets $ 73,786 $ 46,648 $ 120,434 ‐ 120,434 Fund balances Committed for capital projects $ ‐ $ 46,648 $ 46,648 (46,648) ‐ Unassigned 73,786 ‐ 73,786 (73,786) ‐ Total fund balances $ 73,786 $ 46,648 $ 120,434 (120,434) ‐ Net position Unrestricted $ 120,434 $ 120,434 The accompanying notes are an integral part of these financial statements. 7 11 LAKEVIEW DOWNTOWN DEVELOPMENT AUTHORITY Statement of Activities and Governmental Fund Revenues, Expenditures and Changes in Fund Balances For the Year Ended June 30, 2021 Total Capital Governmental Statement General Projects Funds Adjustments of Activities Revenues Property taxes $ 2,046,127 $ ‐ $ 2,046,127 $ ‐ $ 2,046,127 Rents and leases 25,000 ‐ 25,000 ‐ 25,000 Unrestricted investment earnings 5,466 ‐ 5,466 ‐ 5,466 Total revenues 2,076,593 ‐ 2,076,593 ‐ 2,076,593 Expenditures/expenses Community development 2,056,438 ‐ 2,056,438 ‐ 2,056,438 Change in fund balance/ net position 20,155 ‐ 20,155 ‐ 20,155 Fund balances/net position Beginning of year 53,631 46,648 100,279 ‐ 100,279 End of year $ 73,786 $ 46,648 $ 120,434 $ ‐ $ 120,434 The accompanying notes are an integral part of these financial statements. 8 12 LAKEVIEW DOWNTOWN DEVELOPMENT AUTHORITY Statement of Revenues, Expenditures and Changes in Fund Balance Budget and Actual ‐ General Fund For the Year Ended June 30, 2021 Budget Actual (Original Over (Under) and Final) Actual Final Budget Revenues Property taxes $ 2,031,289 $ 2,046,127 $ 14,838 Rents and leases ‐ 25,000 25,000 Unrestricted investment earnings 8,000 5,466 (2,534) Total revenues 2,039,289 2,076,593 37,304 Expenditures Community development 2,039,289 2,056,438 17,149 Net change in fund balance ‐ 20,155 20,155 Fund balance, beginning of year 53,631 53,631 ‐ Fund balance, end of year $ 53,631 $ 73,786 $ 20,155 The accompanying notes are an integral part of these financial statements. 9 13 NOTES TO FINANCIAL STATEMENTS 10 14 LAKEVIEW DOWNTOWN DEVELOPMENT AUTHORITY Notes to Financial Statements 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Reporting Entity These financial statements present the activities of the Lakeview Downtown Development Authority (the “Authority”). The Authority was established October 27, 1981, pursuant to Public Act 197 of 1975. The primary purpose of the Authority is to revitalize and encourage economic activity in the Lakeview business district. The Authority’s activities are primarily funded through tax increment financing. The Authority is a component unit of the City of Battle Creek, Michigan (the “City”) because the City appoints the Authority’s Board of Directors, it has the ability to significantly influence the Authority’s operations, and it is financially accountable for the Authority. Accordingly, the Authority is presented as a discrete component unit in the City’s financial statements and is an integral part of that reporting entity. Government‐wide and Fund Financial Statements As permitted by generally accepted accounting principles, the Authority uses an alternative approach reserved for single program governments to present combined government‐wide and fund financial statements by using a columnar format that reconciles individual line items of fund financial data to government‐wide data in a separate column. Accordingly, this is presented in the statement of net position and governmental funds balance sheet and the statement of activities and governmental fund revenues, expenditures and changes in fund balances. Major individual governmental funds are reported as separate columns in the aforementioned basic financial statements. Measurement Focus, Basis of Accounting and Financial Statement Presentation The government‐wide financial information is reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Governmental fund financial information is reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the Authority considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. Property taxes and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. All other revenue items are considered to be measurable and available only when cash is received by the government. 11 15 LAKEVIEW DOWNTOWN DEVELOPMENT AUTHORITY Notes to Financial Statements The Authority reports the following major governmental funds: The general fund is the Authority’s primary operating fund. It accounts for all financial resources of the Authority, except those accounted for and reported in another fund. The capital projects fund accounts for all financial resources restricted, committed or assigned to expenditures for the acquisition or construction of capital assets. The effect of interfund activity has been eliminated from the government‐wide financial statements. Fund Balances Governmental funds report nonspendable fund balance for amounts that cannot be spent because they are either (a) not in spendable form or (b) legally or contractually required to be maintained intact. Restricted fund balance is reported when externally imposed constraints are placed on the use of resources by grantors, contributors, or laws or regulations of other governments. Committed fund balance is reported for amounts that can only be used for specific purposes pursuant to constraints imposed by formal action of the government’s highest level of decision‐making authority, the Board. A formal resolution of the Board is required to establish, modify, or rescind a fund balance commitment. The Authority currently has no nonspendable or restricted fund balances. The Authority also has no assigned fund balance as the Board has not yet given authority for the making of such assignments; assigned fund balances are neither restricted nor committed. Unassigned fund balance is the residual classification for the general fund. When the government incurs expenditures for purposes for which various fund balance classifications can be used, it is the government’s policy to use restricted fund balance first, then committed, assigned, and finally unassigned fund balance. Budgetary Information The general fund is under formal budgetary control and its budget is prepared on the same modified accrual basis used to reflect actual results. The Authority follows the City budget process in establishing the budgetary data reflected in the financial statements: • The Authority submits a proposed budget to the City Manager. After review and approval, the City Manager submits a recommended operating budget to the City Commission. Public hearings are held to obtain taxpayer comments. The budget is legally adopted through a City Commission resolution prior to the beginning of the budgetary year for the Authority’s funds. • The budget is adopted on a basis consistent with generally accepted accounting principles. Budgeted amounts are as originally adopted and amended by the City Commission during the year. No budget amendments were made during the year. For the year ended June 30, 2021, the Authority incurred general fund expenditures in excess of the amounts appropriated for community development of $17,149. 12 16 LAKEVIEW DOWNTOWN DEVELOPMENT AUTHORITY Notes to Financial Statements 2. POOLED CASH AND INVESTMENTS At year‐end, the carrying amount of the Authority’s pooled cash and investments, which were deposited entirely in the City’s internal cash management pool, was $118,161. Because it is infeasible to allocate risk to individual component units or pool participants, aggregate cash and investment categorizations are presented in the City’s basic financial statements. 3. PROPERTY TAXES Property tax revenue is derived pursuant to a tax increment financing agreement between the Authority and various applicable taxing districts. Real and personal property taxes are levied and attach as an enforceable lien on properties located within the boundaries of the tax increment financing district. The City bills and collects the taxes on behalf of the Authority. Delinquent taxes on ad valorem real property are purchased by the County of Calhoun. Property tax revenue is recognized when levied in the government‐wide financial statements and in the fund financial statements to the extent that it is available to pay current obligations. Except for property taxes captured from local schools that exceed contractual obligations, the Authority is entitled to all taxes levied on property within the Lakeview Downtown Development Authority district to the extent that the current taxable value exceeds the base year taxable value. The Lakeview Downtown Development Authority district was established in 1981 and then expanded in 1991. Taxable values of ad valorem property for the 2020 levy are summarized below: Total taxable value $ 89,133,753 Less: base year value 8,693,117 Capture increment $ 80,440,636 4. DEVELOPMENT PROJECTS AND COMMITMENTS The Authority has entered into a development agreement with the City whereby the Authority reimburses the City for costs to construct certain public improvements. At June 30, 2021, the Authority has committed $46,648 to existing projects. The capital projects funds not committed to existing projects would be available for new projects approved by the Authority. 5. CONTINGENCIES The Authority is currently involved in various tax appeals pending before the Michigan Tax Tribunal. The appeals cover various commercial and industrial properties for 2021. Due to the large number of appeals currently before the Tribunal, the time frame for resolution of these matters is unknown at this time. An estimate of the Authority's maximum exposure is approximately $9,520,000 in taxable value. The City is vigorously defending all litigation. 13 17 LAKEVIEW DOWNTOWN DEVELOPMENT AUTHORITY Notes to Financial Statements 6. CORONAVIRUS (COVID‐19) In March 2020, the World Health Organization declared the novel coronavirus outbreak (COVID‐19) to be a global pandemic. The pandemic has resulted in operational challenges for the Authority as it determines the impact on employees, vendors, and taxpayers, and the appropriate method for providing services. At this time, management does not believe that any ongoing negative financial impact related to the pandemic, if any, would be material to the Authority.  14 18  INDEPENDENT AUDITORS’ REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS December 21, 2021 To the Board of Directors of the Lakeview Downtown Development Authority City of Battle Creek, Michigan We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities and each major fund of the Lakeview Downtown Development Authority, a component unit of the City of Battle Creek, Michigan (the "Authority") as of and for the year ended June 30, 2021, and the related notes to the financial statements, and have issued our report thereon dated December 21, 2021. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the Authority’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Authority’s internal control. Accordingly, we do not express an opinion on the effectiveness of the Authority’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. Rehmann is an independent member of Nexia International. 15 19 Compliance and Other Matters As part of obtaining reasonable assurance about whether the Authority’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Authority’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. 16 20  Annual Report on Status of Tax Increment Financing Plan Send completed form to: For Fiscal Years Treas-StateSharePropTaxes@michigan.gov Municipality Name TIF Plan Name ending in Issued pursuant to 2018 PA 57, MCL 125.4911 Filing is required within 180 days of end of authority's fiscal year ending in 2021. Downtown Development Authority LDDA #1 2021 Year AUTHORITY (not TIF plan) was created: 1981 Year TIF plan was created or last amended to 2004 extend its duration: Current TIF plan scheduled expiration date: 2034 Did TIF plan expire in FY21? No Year of first tax increment revenue capture: Does the authority capture taxes from local or intermediate school districts, or capture the state No education tax? Yes or no? If yes, authorization for capturing school tax: Year school tax capture is scheduled to expire: 2034 Revenue: Tax Increment Revenue $ 2,046,127 Property taxes - from DDA levy $ - Interest $ 5,466 State reimbursement for PPT loss (Forms 5176 and 4650) $ - Other income (grants, fees, donations, etc.) $ 25,000 Total $ 2,076,593 Tax Increment Revenues Received From counties $ 474,664 From municipalities (city, twp, village) $ 1,282,024 From libraries (if levied separately) $ - From community colleges $ 289,439 From regional authorities (type name in next cell) $ - From regional authorities (type name in next cell) $ - From regional authorities (type name in next cell) $ - From local school districts-operating $ - From local school districts-debt $ - From intermediate school districts $ - From State Education Tax (SET) $ - From state share of IFT and other specific taxes (school taxes) $ - Total $ 2,046,127 21 Expenditures Professional Services $ 5,500 Attorney Fees $ 300 Contribution-Other Govt Entities $ 761,964 Transfer to Primary Government $ 1,288,674 $ - $ - $ - $ - $ - $ - $ - Transfers to other municipal fund (list fund name) $ - Transfers to other municipal fund (list fund name) $ - Transfers to General Fund $ - Total $ 2,056,438 Outstanding non-bonded Indebtedness Principal $ - Interest $ - Outstanding bonded Indebtedness Principal $ - Interest $ - Total $ - Bond Reserve Fund Balance $ - 22  CAPTURED VALUES Overall Tax rates captured by TIF plan PROPERTY CATEGORY Current Taxable Value Initial (base year) Assessed Value Captured Value TIF Revenue Ad valorem PRE Real $ 3,087,869 $ 268,845 $ 2,819,024 25.4737000 $71,810.97 Ad valorem non-PRE Real $ 76,224,223 $ 6,887,180 $ 69,337,043 25.4737000 $1,766,271.03 Ad valorem industrial personal $ - $ - $ - 0.0000000 $0.00 Ad valorem commercial personal $ 9,005,383 $ 196,161 $ 8,809,222 25.4737000 $224,403.48 Ad valorem utility personal $ 325,791 $ - $ 325,791 25.4737000 $8,299.10 Ad valorem other personal $ - $ 1,340,931 $ (1,340,931) 25.4737000 ($34,158.47) IFT New Facility real property, 0% SET exemption $ - $ - $ - 0.0000000 $0.00 IFT New Facility real property, 50% SET exemption $ - $ - $ - 0.0000000 $0.00 IFT New Facility real property, 100% SET exemption $ - $ - $ - 0.0000000 $0.00 IFT New Facility personal property on industrial class land $ - $ - $ - 0.0000000 $0.00 IFT New Facility personal property on commercial class land $ - $ - $ - 0.0000000 $0.00 IFT New Facility personal property, all other $ - $ - $ - 0.0000000 $0.00 Commercial Facility Tax New Facility $ - $ - $ - 0.0000000 $0.00 IFT Replacement Facility (frozen values) $ 24,493 $ - $ 24,493 25.4737000 $623.93 Commercial Facility Tax Restored Facility (frozen values) $ - $ - $ - 0.0000000 $0.00 Commercial Rehabilitation Act $ 342,580 $ - $ 342,580 0.0000000 $0.00 Neighborhood Enterprise Zone Act $ - $ - $ - 0.0000000 $0.00 Obsolete Property Rehabilitation Act $ - $ - $ - 0.0000000 $0.00 Eligible Tax Reverted Property (Land Bank Sale) $ - $ - $ - 0.0000000 $0.00 Exempt (from all property tax) Real Property $ - $ - $ - 0.0000000 $0.00 Total Captured Value $ 8,693,117 $ 80,317,222 $2,037,250.04 Total TIF Revenue 23 Lakeview Downtown Development Authority 2022-2023 Fiscal Year Budget Revenue Item Tax Incremental Revenue $2,052,254.00 (1) Interest Income $4,000.00 TOTAL $2,056,254.00 (1) Assumes captured assessed value of $82,293,209 and capture of City, KCC and County Millage in FY 2022/2023 Expense Item Professional/administrative fees $2,500.00 (2) Audit fees $3,000.00 (2) Contingency $0.00 Unexpended funds $2,050,754.00 (3) TOTAL $2,056,254.00 (2) To City Finance Department (3) Expected to be returned proportionately to City, KCC, and Calhoun County 24  REQUEST FOR PROPOSALS (RFP) - PROFESSIONAL CONSULTING SERVICES City of Battle Creek PREPARATION OF A REDEVELOPMENT PLAN FOR THE LAKEVIEW DOWNTOWN DEVELOPOMENT DISTRICT/BECKLEY ROAD CORRIDOR PART I: ADMINISTRATIVE INFORMATION 1.1 PURPOSE The City of Battle Creek, Michigan is seeking a consultant to develop an intentional plan for the enhancement and redevelopment of the 677 acre Beckley Road corridor within the Lakeview Downtown Development Authority (LDDA) to increase the economic vitality and desirability of this aging area of the City (See Exhibit I for map of area). The plan will enable a vibrant and sustainable live, work, and play environment, incorporating residential opportunities in proximity to a variety of day and night time uses and amenities connected by a transportation network that allows for vehicle and pedestrian modes of travel to co-exist while increasing and enhancing the presence of the natural environment throughout the area. 1.2 BACKGROUND Battle Creek is located along the North Branch of the Kalamazoo River and the Battle Creek waterway and is 20 miles east of Downtown Kalamazoo and 43 miles southwest of Downtown Lansing. Battle Creek is also centrally located between Chicago and Detroit at the junction of I-94 and I-69. Battle Creek has a population of 52,721. The City is located in Calhoun County, which has a population of 134,310 and the same geographical boundaries as the Battle Creek metropolitan statistical area (MSA). The Battle Creek MSA has a regional economy based primarily on healthcare, defense, food processing and manufacturing. Battle Creek was one of just a handful of urban core communities in Michigan that experience a slight increase in population based on the results of the 2020 census. From the mid-1980s until the early 2000s, the Beckley Road corridor was one of the stronger retail and office corridors in the region. With the aging of development within the corridor, competition from other areas in and around the community and the changing nature of retail and office development, the area has lost some of its economic vitality. 1.3 OBJECTIVES OF THE RFP Develop a detailed action plan for the overall enhancement and redevelopment of the study area which will result in the following:  Analysis of the existing market conditions, identification of gaps that could be exploited and review of economic opportunities for the commercial real estate in the area. Consider both short-term and long-term market based solutions to take advantage of identified Page 1 25  opportunities.  Creation of a realistic and implementable future land use plan based on the economic reality of the market and consideration of the infrastructure limitations of the existing built environment. A full range of commercial and office offerings, including the introduction of residential and mixed uses where appropriate shall be explored and identification of use categories and business industries that should be actively sought for establishment into the study area should be developed.  Identification of key buildings and areas, with an emphasis on Lakeview Square Mall, that are now, or will in the foreseeable future, merit repurposing or redevelopment. Maximizing the assessed value of the existing real estate through incremental improvement or adaptive reuse in addition to creation of economic development through overall redevelopment should be analyzed  Identification of new activity nodes and areas where a more urban development pattern with increased densities (residential and commercial) can be supported by existing or improved infrastructure (roads, sewer and water). Consideration of the necessary catalyst to support the development of the nodes shall be reviewed.  Exploring the benefits of incorporating various modes of transportation, including the promotion of transit service, resulting in increased walkability and co-existence of vehicles and pedestrians is desired.  Identification of roadway enhancements to mitigate and soften the presence of pavement while achieving safety and comfort for pedestrians and bicyclists.  Development of a Master Storm Water Management Plan for the corridor. The plan shall include the identification of improvements that bring the overall system into compliance with current drainage and storm water management standards and promotes the use of green infrastructure that can provide open spaces and amenities to the corridor.  Identification of opportunities throughout the corridor to integrate, enhance, and connect green spaces, both public and private, for recreation, gathering, and health and wellness.  Incorporation of placemaking and arts throughout the corridor. 1.4 SCOPE OF SERVICES The City expects the services of the selected firm to include:  Stakeholder Engagement o Interview major property owners and tenants in the review of the market/economic analysis and identification of opportunities. o General public engagement should include at least three public meetings to discuss project goals, receive plan comments, and communicate plan outcomes. Page 2 26  Site Development Opportunities o Identify property ownership and existing tenants. o Identify and map vacant and under-utilized buildings and properties. o A cursory evaluation of the age and condition of buildings with a general statement on typical upgrades or improvements needed for its age and condition. Consider if buildings have exceeded their functional life span.  Market/Economic Analysis o Analyze the market/economic forces impacting the study area. o Prepare a redevelopment readiness analysis to identify and prioritize properties for redevelopment.  Zoning and Land Use o Analysis and illustration of the current land use for the study area, including valuation history over the past 10 years of all properties. o Prepare modeling and/or conceptual drawings to evaluate land use scenarios and fiscal performance for identified key redevelopment areas and individual sites. o Development of a detailed future land use plan for all buildings and properties. o Preparation of architectural concepts to guide redevelopment and direct regulatory changes that capture the existing and/or intended context of the area. o Assess the projected economic impact (ROI) of the proposed corridor enhancement and Redevelopment Plan on key areas and properties. o Complete fiscal impact modeling for revenue cost ratio. Revenues include property, income and sales taxes. Costs include infrastructure, operation and maintenance, and services. o Audit zoning, building, and fire code to identify obstacles to redevelopment and reuse. Propose changes that will not compromise safety. Identify standards to incentivize redevelopment of the corridor and simplify the development approval process. o Analysis of the development incentive and gap-financing programs necessary to achieve redevelopment outcomes. Include specific end-result criteria to qualify for financial assistance.  Transportation and Walkability Page 3 27  o Conduct a walkability audit of a representative sampling of the area. Provide conceptual level plans to improve walkability, safety, comfort, and enjoyment for pedestrians/bicyclist. o Identify key areas and implementations where pedestrians can be prioritized over vehicles.  Infrastructure o Assessment of current infrastructure’s adequacy, including broadband, to support proposed land uses and redevelopment. o Analysis of current storm water situation has been completed. Review provided report and identify opportunities and solutions for creating efficient multi- beneficial regional solutions. Include possible financial trade-off initiatives with individual property owners. Identify properties for City acquisition to facilitate implementation of storm water management facilities. o Create detailed list of public infrastructure improvements necessary to fully realize the redevelopment plan, including estimated costs and timing priority.  Analysis and demonstration of equity in the proposed Redevelopment Plan.  Development of detailed action and phasing plans for the public policy changes and infrastructure investments necessary for implementation of the Redevelopment Plan. 1.5 DELIVERABLES Deliverables should include a bound printed copy of the plan, as well as editable electronic files that can be used by the City for both print and electronic communication. All print and electronic deliverables should be provided in ADA compliant formatting to be either captioned for multimedia or screen-reader friendly for print elements. 1.6 BUDGET The applicant should propose a project budget in an hourly fee format with a not to exceed maximum for the project as defined in the Scope of Services. The budget should also provide an hourly fee structure for any additional work if needed. Printing costs related to presentation materials will be considered reimbursable expenses as part of the not to exceed number for professional service contract. For contract purposes include an additional 5% over and above professional fees in the not to exceed number. 1.7 TIMELINE FOR CITY The City expects to have a completed redevelopment study for presentation to the City Commission by June 2022. The selected firm will present the plan to the Lakeview Downtown Development Authority and the Battle Creek City Commission. Page 4 28 PART II: PROCESS 2.1 DISTRIBUTION OF REQUEST FOR PROPOSAL (RFP) The RFP and any supporting documents will be made available via electronic distribution as requested by any qualified firm or individual and will be posted on the City web site: www.battlecreekmi.gov. A Notice will also be published in the Battle Creek Enquirer. 2.2 PROPOSAL PERIOD The proposal period will commence on the date the Request for Proposals is issued and will end with the submission of the proposal as outlined in section 2.6. 2.3 QUESTION AND ANSWERS During the proposal period, interested parties will be allowed to submit to the City written questions and requests for additional information via Christine Huff, Purchsing Manager, at clhuff@battlecreekmi.gov. All questions and requests received by 5:00 p.m. on Friday, April 8, 2022 will be answered via posting on the City’s web site by 5:00 p.m. on Wednesday, April 13, 2022 unless the nature of the question or request requires further time or research to issue a proper response. 2.4 RECEIVE PROPOSALS Proposals shall be addressed to the Purchasing Manager and will be received at the Purchasing office at 10 N. Division Street, Suite 214, Battle Creek, Michigan 49014, until 3:00 p.m., on Wednesday, April 27, 2022. Submittals and materials received after the time specified above will not be considered and will be returned unopened to the sender. No costs associated with the preparation of this proposal, or incurred in any manner by the submitter, may be charged to the City. All materials submitted in response to this Request for Proposal will be considered the property of the City. The City reserves the right to use any and all ideas submitted in the proposals received unless those ideas are protected by copyright, legal patent or proprietary rights as stated by the proposer. 2.5 PROPOSAL ACCEPTANCE, REJECTION Proposals will be reviewed privately by City staff. The City reserves the right to: 1. Waive any informality or irregularity in any proposal received; 2. Reject a proposal if it is not in full and complete compliance with the requirements and formats specified herein; 3. Reject a proposal which is in any way incomplete or irregular; 4. Reject all proposals if the proposals do not meet the overall standards established by this Request for Proposals; are otherwise inappropriate; or if it is in the best interest of the City to reject all proposals. Page 5 29  5. If the City so rejects all proposals it may thereupon either cancel this solicitation or re- solicit for proposals. 6. The City will determine a short list of proposers that will be asked to make a formal presentation. 2.6 TENATIVE PROJECT SCHEDULE Included below for reference is the tentative project schedule. Schedule is subject to change. Publishing of RFP Wednesday, March 30, 2022 Deadline for questions and requests Friday, April 8, 2022 All questions answered and posted Wednesday, April 13, 2022 Deadline for proposal submittals Wednesday, April 27, 2022 @ 3 p.m. Staff/Committee Review of Proposals Week of May 2, 2022 Presentation from firm Week of May 16, 2022 Selection of firm Friday, May 20, 2022 Council award of contract Monday, June 7, 2022 PART III: SUBMITTAL REQUIREMENTS 3.1 PROPOSAL SUBMITTAL SPECIFIC REQUIREMENTS The City asks that the response to the RFP consist of ten (10) hard copies along with a copy of the submittal in PDF file format contained on a compact disk or thumb drive. Each Proposal shall be in 8½” x 11”, vertical format, consisting only of the specified materials requested below. Folded 11” x 17” pages in landscape orientation are acceptable. To be responsive, each Proposal must include the following material in the exact order specified. Submittals not organized according to this format may be rejected. (Page limit: 20) i) COVER LETTER: An officer of the firm submitting the Proposal and the designated lead consultant shall sign the cover letter. In case of a joint venture, an officer of each firm shall sign the cover letter as well as the designated lead consultant. ii) TABLE OF CONTENTS iii) PROJECT TEAM: Provide a general introduction on the makeup of the project team, including a brief history of the firm and each team member's area of expertise. Note any past experience of team members working together on other projects. For each team member, include name, affiliation, address, and telephone number. List the person who will serve as the main contact throughout the project. List any functions that will be subbed out and information on the firm(s) handling the work. iv) PROJECT EXPERIENCE: Description of the last three completed projects which demonstrate the firm's current experience and ability to complete projects of a similar size, scope, and purpose in a timely manner and any other completed projects (representative examples) of similar types of projects. Page 6 30  For each project, submit a one-page maximum narrative description of the project and any website links. Color photos or graphics depicting the projects are encouraged but not required. The narrative description shall include the consultant of record, team member’s role in the design of the project, the type of project, location and client name, and a brief statement indicating the relevance of this project to the Beckley Road Corridor Study. Include address(es), telephone number(s), and the names of reference contacts for each project. v) PROJECT NARRATIVE: The submittal should address each of the following criteria: (1) Proposer’s understanding of the Project Objectives and Scope of Services presented in this RFP. (2) Proposer’s impressions of the project’s opportunities and constraints. (3) A description of the proposed work task, concept/approach, and specifications as to which individual(s) and/or subcontractor(s) will be assigned to each aspect of the project. (4) The envisioned working relationship with City staff and all reviewing bodies during all phases of the project. (5) How the team will engage the public to gain public input. (6) The process the team will use to develop the project within the budget. (7) How the team will engage the property owners and major tenants. vi) PROFESSIONAL SERVICES: Submit a fee summary for professional services. Summary shall be organized in accordance with the following outline: (1) Fee Structure. Fees should be stated as an hourly not to exceed with a breakdown of anticipated hours for each deliverable. Provide a breakdown, by discipline, of all staff involved in the services proposed on an hourly basis to be used should the project scope be expanded. Reimbursable schedule for travel should be included as part of the not to exceed number. (2) Projected timeframe (in calendar days) and anticipated workload/staff availability (3) Other information at the option of the Proposer vii) REFERENCES: Provide at least three (3) owner/user references. For each reference, list the person's name, address and current telephone number, and nature of the reference or relationship. 3.2 PRESENTATION OF PROPOSALS TO SELECTION COMMITTEE Short-listed teams may be asked to present their proposals to the City staff. Each team may present its proposal to City staff. The project lead is expected to be present at the presentation as well as key members of the Proposer’s team should be present. A maximum of one-half (1/2) hour will be allowed for each presentation, followed by up to fifteen (15) minutes for questions and discussion. Presentations will take place at the City of Battle Creek City Hall, 10 N. Division Street. The order of presentations will be determined randomly. Proposers will be notified of the presentation schedule after the short list is announced. Immediately prior to each presentation, each design team will be allowed a maximum of fifteen (15) minutes to set up its presentation. Page 7 31  Material presented shall be limited to that submitted by the proposer as part of its proposal. The medium of presentation is at the discretion of the presenting team. 3.3 EVALUATION OF PROPOSALS The City staff evaluations will determine which proposer is selected based on the best interest of the City. Max Scoring Criteria Points Past experience on comparable projects 25 Experience with similarly sized redevelopment 25 studies Qualifications and experience of staff assigned to 20 engagement Quality of proposal 10 Public Engagement proposed and Property 10 owner/major tenants engagement proposed Overall proposal cost 10 100 3.4 SUPPORTING DOCUMENTS The following information will be provided with the RFP. Additional information or clarification may be posted on the City’s web site during the RFP process. Attached Exhibits: Exhibit I – Map of Study Area Exhibit II - Example Professional Services Agreement for the City of Battle Creek Page 8 32 Carl, Please see the request below for numerous detours as have been previously discussed. Please let me know if you have any questions or concerns.  I-94 Closure for Capital Avenue Demo and beam setting o Duration – 3 nights o Detour – Utilize the ramps to get off and back on I-94  Capital Avenue SB to Beckley Avenue EB left turn movement o Duration – 8 months o Detour – Capital Avenue to Glenn Cross Road to M-66 to Beckley Road  I-94 WB off ramp to Capital Avenue o Duration – 8 months o Detour – I-94 WB off ramp to Helmer Road to Helmer Road to Beckley Road to Capital Avenue  I-94 WB on ramp from Capital Avenue o Duration – 8 months o Detour – Capital Avenue to Beckley Road to Helmer Road to I-94 WB on ramp  I-94 EB off ramp to Beckley Road o Duration – 8 months o Detour – I-94 EB off ramp to M-66 SB to Beckley Road  I-94 EB on ramp from Beckley Road o Duration – 8 months o Detour – Beckley Road to M-66 NB to I-94 EB on ramp  I-94 WB off ramp to M-66 SB loop ramp o Duration – 14 days o Detour – I-94 WB off ramp at Capital Avenue to Capital Avenue to Beckley Road to M-66  I-94 WB on ramp from M-66 NB loop ramp o Duration – 14 days o Detour – Beckley Road to Capital Avenue to Capital Avenue on ramp to I-94 WB  I-94 EB off ramp to M-66 NB loop ramp o Duration – 14 days o Detour – I-94 off ramp to M-294 to Main Street to Dickman Road o Approval also needed the CCRD  I-94 EB on ramp from M-66 SB loop ramp o Duration – 14 days o Detour – M-66 to Beckley Road / B Drive N to Beadle Lake Road to the I-94 EB Beadle Lake on ramp o Approval also needed the CCRD  I-94 WB off ramp to SB Beadle Lake Road o Duration – 11 months o Detour – I-94 WB to M-66 SB loop ramp to Beckley Road/ B Drive N to Beadle Lake Road o Approval also needed the CCRD 33