DDA Board Minutes

Cascade Charter Township

Downtown Development Authority
Board of Directors

January 20, 2004
Cascade Museum Building
2839 Thornapple River Dr. SE

ATTENDEES: Ron Clark, Lori Chu, Ray James, Julie Johnson, Joann Noto and Dan Wallace.
Expected Absences: Ronald Biermacher, Michael Julien, and Diana Kingsland
Others Attending: Township Manager Jay Cravens
Guests: George Wanty, Chairman of Centennial Park Association
Larry Fleis, Owner/Partner of Fleis & Vandenbrink in Centennial Park

ARTICLE 1: Call the Meeting to Order
Chairman James called the meeting to order at 7:00 p.m.

ARTICLE 2: Approval of the Agenda
Member Wallace made a motion to approve the agenda submitted by staff. Member Chu seconded the motion. The motion passed unanimously.

ARTICLE 3: Approval of the Minutes of November 18, 2003
Chairman James requested approval of the November 18th Minutes. Member Johnson asked for clarification from Member Wallace regarding his comments on sidewalks in Article 4. Member Wallace clarified his comment stating he questioned if there is a need for sidewalks along 28th Street. Member Clark motioned for approval of the November 18, 2003 Minutes, Member Noto seconded. All in favor none opposed. The minutes of November 18, 2003 passed unanimously.

ARTICLE 4: Election of Officers
Chairman James noted that three members have excused absences for this meeting and asked the Board if they wanted to postpone the election until February. Member Wallace asked if a mail-in election could take place and Manager Cravens clarified that the election could not be done by mail-in. Member Johnson motioned to keep the Officers as currently appointed: Chairman James, Vice-Chairman Clark and Secretary Kingsland. Member Noto seconded the motion. The motion passed unanimously to reappoint the current Officers.

ARTICLE 5: Discussion of Whether to Add More of Centennial Park into the DDA Development District
Manager Cravens provided an Excel spreadsheet noting the businesses bordering Centennial Park and financials from 1999 through 2003 along with a drawing of potential property to include in the project.

Manager Cravens further explained the financial spreadsheet of office usage around the park and the past five years of taxes. One note on the spreadsheet is that the only property to lose value in the timetable was 2960 Lucerne and that was due to re-modeling and the tax value has increased in value since the remodeling.

Manager Cravens further explained the map of the distributed properties noting that those outlined in a red border are property zoned P.U.D. Manager Cravens also stated that within this red zone, the offices are largely developed. Manager Cravens also noted there are four lots with development potential. Manager Cravens also noted one area of concern; the parcel outlined in a green border is the golf course. Concern is neither against the golf course itself, nor against the owner but concern lies in including the golf course in the DDA District. Manager Cravens emphasized that adjacent to this golf course is a condo development, approximately three or four stories tall built in the 1970's, and the DDA could include the condo development as residential in the DDA. There was a general discussion was held regarding resident membership requirements if there more than 100 residences within the DDA district. Other concerns were expressed regarding the frontage along Charlevoix Drive and questions arose of the practicality of including the golf course and residential areas with the lighting theme and sidewalks.

Manager Cravens suggested that the DDA Board could make a recommendation to the Township Board on whether or not to incorporate additional property from Centennial Park into the DDA district. Manager Cravens would take their recommendation back to the Township Board. Manager Cravens also noted if the DDA were to add the properties, they would be part of an addendum to the Tax Increment Financing Plan that is currently being rewritten by staff. Once the additional properties are legally incorporated into the DDA district, the addendum would also become effective.

Member Wallace questioned the timetable already in place, does this fit in with the 28th Street plans. Member Chu asked for pros for allowing these properties into the DDA District and cons for being kept out of the DDA District. Member Wallace expressed concern over enough funds available for the projects and in what order will they be completed. Manager Cravens noted that the draft plan shows a tax capture of about $20 million in its 20-year effective period. There should be adequate funds to finance the improvements suggested in the plan. He also noted that Supervisor Julien suggested paring down the tax capture and years. Member Wallace asked which project comes first. Manager Cravens recalled the spreadsheet timeframe noting that there is flexibility in the plan. Proposed improvements are broken down into project areas with emphasis on 28th Street first. The remaining portion of Centennial Park could be added into the 20-year plan.

Chairman James noted the public attendees at the meeting, George Wanty, Chairman of the Centennial Park Association and Larry Fleis, owner/partner of Fleis & Vandenbrink in Centennial Park.

Mr. Wanty began by stating he has been a member of Centennial Park for approximately 10-years and Mr. Fleis bought his building in the late 1990's. Mr. Wanty spoke of Foremost Insurance leaving the park and lots of tenant turnover in the park. Now he feels there is a wonderful new group of owners buying the property in the park. The Centennial Park Association has developed marketing strategies for the park and is now requesting inclusion into the DDA district.

Mr. Fleis began by stating he is no different from the other property owners who, as members, want to pull the synergy of the existing DDA district into the rest of Centennial Park. He noted this would increase the value of the properties in this area. Mr. Fleis also noted that the businesses realize the DDA's plans emphasize improvements on 28th Street, but would like the plan to be carried into the Centennial Park.

Manager Cravens stated that some folks might question the inclusion of the apple orchard (the four vacant properties mention earlier) and what the future will bring for them. The presence of Foremost in Centennial Park was good, but once they left, a vacuum was created in that area. Manager Cravens also noted that there has been some good development there. The addition of these properties into the DDA district is "neutral" at this point, on the existing DDA district. It will not cause a decline in the captured tax increment. However, a demand could be created. Manager Cravens also cautioned that if the park continues to have high vacancy rates and declines there would be a struggle in attracting businesses and people to this part of 28th Street. Manager Cravens also stated that the office park might bring business to the local retail property owners there; nice relationship between 28th Street and the park could be realized. General questions arose regarding the total capacity of the office park right now and it was concluded that office buildings are experiencing 70 percent occupancy. Mr. Wanty said they want to market the park but it is looking tired. Chairman James asked if the park wants to come to the front of the line regarding their project needs or are they asking for consideration? Mr. Wanty confirmed that the park just wants to be part of the DDA. Mr. Fleis said big potentials are already happening in the DDA and he suspects with a little success that the DDA will beat their improvement plans timetable and have plenty of funding to begin work on Centennial Park.

Chairman James noted to the Board that if Centennial Park were included in the DDA, it would forestall future deterioration of the area. Member Wallace suggested a change in the priorities in the plan. Manager Cravens said the projected plan is over 20-years. It's budget and plans can be amended. Mr. Fleis noted that the enhancement along 28th Street will help immensely and even if it takes 10-years to get on the plan and knowing that the project would be re-visited every year, Centennial Park Association would be very happy with that. Mr. Wanty further supported Mr. Fleis statement and noted the association is willing to market the area on their own, but they cannot do everything on their own.

Manager Cravens suggested that the DDA Board Members could either decide to expand the perimeters of the district to include the red bordered properties or include both the red and green bordered properties. The DDA could also not make a recommendation to expand the DDA district. The Board could also wait until February's meeting. Various questions arose regarding the golf course and the reasons to start fixing downtown. Some members felt adding the golf course is taking advantage of the DDA and Manager Cravens noted that the golf course is part of the park and part of the Centennial Park Association that is why it is included. Mr. Fleis expressed that it does not matter if the golf course is included or not, the real question is will it be there in 10-years and if not, what will go in that property should the golf course close. Manager Cravens believes if the course should close, the area would become residential. Member Noto asked if there is a difference in the budget if you breakout totals NOT to include the golf course and Manager Cravens said, approximately $1.8 million difference if the golf course is not included.

Vice-Chairman Clark motioned to accept the entire proposal but exclude the golf course; Member Johnson seconded the motion. Unanimous approval to exclude the golf course, motion carried. Member Johnson commented, as a business owner, this is good and the owners have an interest in the area and trying to promote business in Cascade.

Member Noto motioned that a recommendation to the Township Board be forwarded to include the red bordered properties shown in the map of Centennial Park into the DDA district. Vice-Chairman Clark seconded the motion, with unanimous approval. Manager Cravens said he will bring this request before the Township Board and reminded the DDA Board that this is step one, the DDA will be voting on other connected issues, resolutions and ordinances before the process is finalized.

Article 6: Other Business
Member Johnson asked what happened to the Christmas decorations in downtown. Member Johnson noted the red ribbon was not added on the poles closer to downtown and it lost its kick. Member Johnson wants the decorations for next year to include the red ribbon throughout.

Article 7: Adjournment
Chairman James requested a motion for adjournment. Vice-Chairman Clark motioned for adjournment, seconded by Member Wallace. Meeting adjourned at 8:00 p.m.

Respectfully Submitted,

Lisa Hern, Recording Secretary

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