A) CALL TO ORDER

The meeting was called to order at 5:34 p.m. by Chairman Hugh Mason.

Members present: Dan Barron, Mayor Gabe Campbell, Fred DiMartino, John Kurtz, Hugh Mason, Jeff Porter, John Taylor and John Yaroch
Members absent: Jeannine Wallace

Staff present: City Manager Michael R. Wiesner and City Planner Gerry Harsch

B) APPROVAL OF AGENDA

Motion made by Mayor Campbell and seconded by Dan Barron to approve the agenda are presented. Motion adopted unanimously.

C) INQUIRY INTO POTENTIAL CONFLICTS OF INTEREST None.

D) APPROVAL OF MINUTES

Motion made by Mayor Campbell and seconded by Dan Barron to approve the minutes for July 28, 2003, October 27, 2003 and January 12, 2004. Motion was adopted unanimously by a voice vote.

E) PUBLIC INPUT, NOT RELATED TO OTHER AGENDA ITEMS None.

F) NEW BUSINESS

Tax Increment Financing Plan

City Manager Michael Wiesner and City Planner Gerry Harsch reviewed the DDA's tax increment financing and development plan with the Board. Mr. Wiesner stated the plan needed to be updated. Mr. Harsch reviewed the original Development Plan with the Board. The map was prepared by Victor Nelhiebel in 1985. Many of the items outlined in the plan have been completed. Mr. Harsch reviewed with the Board a list of items that have been completed. To date, the DDA has expended over $11 million for improvements in the DDA district. This figure does not include grants awarded to the DDA for various project.

Chairman Mason asked if we need to look at extending the DDA's time frame. Presently, the DDA has financial obligations until 2017.

Mr. Harsch felt that the DDA should review the plan and see where it needs to be updated. A new capital program and estimates should be obtained. Mr. Porter asked if the update could be done in- house. Mr. Harsch advised that unfortunately he does not have the time. The DDA can have a brainstorming session. Vic Nelhiebel, the author of the DDA's development plan, is available to put the DDA's ideas on paper. City Manager Mike Wiesner will receive cost estimates and report back to the Board.

City Manager Mike Wiesner advised the Board that Staff is working to update the City entrances. A proposal be being reviewed to have all banners hang vertically. Staff was also looking at directional signage for businesses located on the side streets.


Resolution Requesting Issuance of Refunding Bonds and Pledging Tax Increment Revenues

The State of Michigan is desirous to refund the Bridge Park bonds. The State of Michigan will save an estimated $240,000 by doing the refunding and issuing new bonds .

Minutes of a regular meeting of the Board of the Charlevoix Downtown Development Authority, County of Charlevoix, State of Michigan, held on the 26th day of January, 2004, at 5:30 p.m., Eastern Standard Time.

PRESENT: Members Dan Barron, Mayor Gabe Campbell, Fred DiMartino, John Kurtz, Hugh Mason, Jeff Porter, John Taylor and John Yaroch
ABSENT: Jeannine Wallace

The following preamble and resolution were offered by Member Dan Barron and supported by Member John Yaroch:

WHEREAS, the City of Charlevoix, County of Charlevoix, State of Michigan (the "City"), by action of its City Council, has approved a Development Plan and Tax Increment Financing Plan, as amended, for the Development Area of the Charlevoix Downtown Development Authority (the "Authority"), pursuant to Act 197, Public Acts of Michigan, 1975, as amended ("Act 197"); and

WHEREAS, pursuant to a request of the Authority, the City has previously issued its $3,500,000 1994 Development Bond (Limited Tax General Obligation), dated as of December 21, 1994 (the "Prior Bonds"), secured primarily by a pledge of tax increment revenues of the Authority and secondarily by the limited tax full faith and credit of the City; and

WHEREAS, the Michigan Municipal Bond Authority has advised the City that interest rates have declined so that a refunding of all or a portion of the Prior Bonds will generate present value savings to the City; and

WHEREAS, Act 197 and Act 34, Public Acts of Michigan, 2001, as amended, permits the City to refund indebtedness of the City issued pursuant to Act 197; and

WHEREAS, it is necessary for the Authority to pledge its anticipated tax increment revenues for the period during which moneys must be set aside for the payment of the Refunding Bonds which the City is requested to issue on behalf of the Authority.

NOW, THEREFORE, BE IT RESOLVED AS FOLLOWS:

1. The Authority hereby requests that the City issue bonds in an amount not to exceed $2,700,000 (the "Refunding Bonds") for the purpose of refunding all or a portion of the Prior Bonds. The Authority hereby pledges and agrees to pay to the City from tax increment revenues received by the Authority the amounts necessary to pay the principal of and interest on the Refunding Bonds as the same become due. In the event the funds of the Authority are insufficient to pay the principal of and interest on the Refunding Bonds as they become due, and the City pays such sums from its own funds, the Authority agrees to reimburse the City in whole for such payments from funds of the Authority as the same are received.

2. The Authority hereby acknowledges that the City will issue its Refunding Bonds in an amount not to exceed $2,700,000 in reliance upon the agreement and promise of the Authority to pay to the City from tax increment revenues the amounts necessary to pay the principal of and interest on the Refunding Bonds.

3. The Authority hereby covenants to take all action within its control, to the extent permitted by law, necessary to maintain the exclusion of the interest on the Refunding Bonds from gross income for federal income tax purposes under the Internal Revenue Code of 1986, as amended, including but not limited to, actions relating to the rebate of arbitrage earnings and the expenditure and investment of proceeds of the Refunding Bonds and moneys deemed to be proceeds of the Refunding Bonds.

4. The Secretary of the Authority is directed to deliver a certified copy of this resolution to the City Clerk.

5. All resolutions and parts of resolutions in conflict with the provisions of this resolution are hereby repealed or amended to the extent of such conflict.

AYES: Dan Barron, Mayor Gabe Campbell, Members , Fred DiMartino, John Kurtz, Hugh Mason, Jeff Porter, John Taylor and John Yaroch
NAYS: None.
ABSENT: Jeannine Wallace

Proposed 2004-05 DDA Budget

The proposed 2004-05 DDA budget was presented. Mr. Wiesner advised that we are proposing a "bare bones" budget. Future DDA projects and the purchase of bonds to fund the projects, must be studied at the time the DDA plan is updated.

Motion made by John Taylor and seconded by John Yaroch to approve the Downtown Development Authority's 2004-05 budget. Motion passed by an unanimous voice vote.

Resolution to Carry Over of Funds for Projects within the Development Plan

The item was tabled until the next meeting.

G) OLD BUSINESS

H) FUTURE AGENDA ITEMS

Jeff Porter asked that the status of the old Middle School and future uses of the building be discussed in the near future.

The DDA will meet in joint session with the City Council on February 23rd to discuss the Chamber's request to acquire/lease the old Post Office located at 109 Mason Street. The DDA may meet to discuss other issues after the joint DDA/Council meeting.

I) ADJOURNMENT

Motion made by Mayor Campbell and seconded by John Yaroch to adjourn. Motion was adopted unanimously by a voice vote.

Meeting adjourned at 6:30 p.m.

Linda Jo Weller, Recording Secretary