Meeting called to order at 7:00 p.m. by Mayor Campbell

I. Invocation (Pledge of Allegiance)

II. Roll Call of Members Present

Downtown Development Authority Board Members
Members present: Hugh Mason, Jeff Porter, Fred DiMartino, Jeannine Wallace, John Kurtz and Mayor Gabe Campbell
Members absent: John Taylor, Dan Barron (arrived at 7:03 p.m.) and John Yaroch (arrived at 7:05 p.m.)

City Council Members
Members present: Bill Haggard, Bob Timms, Karen Campbell, Sherm Chamberlain and Shirley Gibson
Members absent: Bill Bellows

III. Inquiry Regarding Possible Conflicts of Interest None.

IV. General Business

Report on DDA and Marina Project Funding
It is estimated that the City will have to pay an estimated $3.8 million, and bonding costs for construction of the Downtown Park/Marina project.

Enter Dan Barron at 7:03 p.m.

City Manager Mike Wiesner reviewed the proposed DDA's 2004-05 Future Year Projection sheet. It is estimated that the DDA will experience a 3.0% inflation increase each year. The Debt Service payments for Bridge Park are decreasing and the DDA's tax capture is increasing by a projected 2.3% each year. The DDA's tax increment financing plan ends in 2013. If DDA funds are to be used to pay for the marina project, than we will have to look at extending the tax increment financing plan.

Enter John Yaroch at 7:05 p.m.

It is estimated that the DDA will have $551,315 in unreserved cash balance at the end of this fiscal year. If the DDA is to revise its plan, both the DDA and City Council must work together in order to implement and update the plan.

John Winn advised that the Waterways Commission has recommended that the Legislature approve funding for the downtown parkmarina project. He asked the City to consider doing the project in two phases. Dock and break wall in the first phase and the park improvements in the second phase. City Manager Mike Wiesner stated that presently we are waiting for approval of permits from the Corps and DEQ to do the project. He also feels that the project should start in the Fall of 2005.

Dan Barron asked if Waterways' funding could be accumulated. Could the City receive funding in 2004 and then hold the Waterways funds until construction commences in 2005? Mayor Campbell also felt reserving funds for the project was a good idea.

City Manager Mike Wiesner feels it is important to begin to review the DDA plan and start the long process of changing the plan. He will have information available at the next DDA meeting. Dan Barron asked if the budget projections include funds to retire the Middle School bonds. Mr. Wiesner advised that the budget figures reflect a "worst case scenario."

Chamber of Commerce Request to Acquire Old Post Office Building
Jacqueline Merta, President of the Charlevoix Area Chamber of Commerce approached the City Council and the DDA for their assistance in securing a future home for the Chamber. Their present offices will be removed as part of the City's renovation of the parks. The Chamber does not have a budget that allows them to purchase or build a new facility. They want the DDA and City Council to transfer the ownership of the old Post Office building located at 109 Mason Street to the Chamber for $1, and the transfer would also include a reverter clause. The Chamber would like to continue its relationship with the City to continue to make Charlevoix a better place to visit and live.

Council member Gibson stated she understood that the Chamber was looking to purchase the Feindt building located at 218 Bridge Street. Ms. Merta advised that upon review the building, the Chamber's Building Committee found that the purchase was not feasible. She also inquired if the City had obtained an appraisal on the old Post Office. Mr. Wiesner advised her that a recent appraisal has not been obtained.

Ms. Merta stated that the old Post Office building had been empty for many years. The Chamber has had a relationship with the City since 1944 and has done a lot to benefit the community. Their present facility is too small and does not allow visitors adequate room.

Mr. DiMartino asked for information on the present arrangement the City has with the Chamber. Ms. Merta advised that they pay $100 a month and they rent approximately 25% of the facility. The rest of the building is used by the Harbor Master, a mechancial room and public restrooms.

Mr. Kurtz asked if the Chamber had an idea on the amount of space they need. The City Manager advised that in a recent study, the Chamber stated they needed approximately 2800 square feet of office space.

Mayor Campbell felt that the rent paid by the Chamber did not even pay for the building's maintenance. He asked if the Chamber would prefer a property transfer, with a reverter clause. He does not desire to continue to pay for utilities and building maintenance.

Council members Chamberlain and Timms felt that if the building is owned by the Chamber, then they should pay all utilities and maintenance costs.

Council member Haggard asked the City to consider keeping the building and renting it to the Chamber for an inexpensive rent and paying for utilities. Even if the City picks up the insurance costs, there will a number of other costs the Chamber should look at.

Mr. Porter felt the building's ownership should be retained by the City, but the City/DDA could lease the building using a triple lease. Mr. DiMartino also concurred with the concept. He also asked about the Charlevoix County Land Conservancy lease.

Ms. Wallace questioned if the Chamber would have the funds to maintain the building if the City sold it to them. A long term lease might be a good way to go. The Chamber needs to be a fixed location, close to downtown. The City needs to continue its relationship with the Chamber. The old Post Office site is an ideal site.

Maura Snabes, Chamber Board of Directors Chairman, stated that the long term maintenance for the structure could be a financial problem for the Chamber. The Chamber's budget does not have a lot of room for increases.

It was discussed that if the Chamber did not need the entire old Post Office building, they might rent out a section to the Visitor's Bureau.

Council member Gibson stated she does not feel the site should be leased for less than market value.

Council members Haggard and Chamberlain voiced support for the sale with a reverter clause. The Chamber can maintain and insure the building. It'll be one less thing for the City to deal with.

Council member Timms feels the building should remain in public ownership. But the costs of running the building, insurance, utilities, etc. should be paid by the Chamber.

John Kurtz had no concerns one way or another. He does not want Chamber to be forced to move. He feels they should have a long term lease and pay their own utilities.

Dan Barron stated that either option could work, and the reverter gives future control for use of the building. He felt it would be cost effective for the City to have the Chamber own the building. The Chamber is an important part of the community. As the City is requiring the Chamber to relocate, the City should help them.

John Yaroch expressed concern that if the City should sell the building to the Chamber for a minimal amount, the tax base for the downtown area could be effected. He felt a lease would be better. There is parking adjacent to the site and the driveway could be used for drive up information window.

The Chamber desires to review the options discussed at meeting and meet with both the DDA and City Council in the near future.

The DDA generally agreed to meet with the City Council and Chamber representatives at the February 23rd meeting.

V. Adjourn

The DDA Board members generally agreed to adjourn at 7:48 p.m.