A) CALL TO ORDER

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

Members Present: Dan Barron, Fred DiMartino, Mary Feindt, John Kurtz, Jeff Porter, Mayor Russell, John Taylor, and Jeannine Wallace

B) APPROVAL OF AGENDA

The agenda approved as submitted.

C) INQUIRY INTO POTENTIAL CONFLICTS OF INTEREST

Dan Barron, John Kurtz and John Taylor have a conflict of interest in the amendment of the 2001-2002 budget, as it relates to the Wharfside acquisition.

D) APPROVAL OF MINUTES

1. November 26, 2001 Regular Meeting Minutes

Motion made by Jeannine Wallace and seconded by Jeff Porter to approve the November 26, 2001 minutes as presented. Motion adopted unanimously.

E) PUBLIC INPUT, NOT RELATED TO OTHER AGENDA ITEMS

None.

F) NEW BUSINESS

1. 2002-2003 DDA Budget

City Manager Michael Wiesner reviewed the current year budget with the Board. An amendment to the 2001-2002 budget will be presented to the City Council on February 4th. The increase in expenditures was for the ice rink in East Park, Veteran's Park, brackets and baskets for the petunia baskets, and Lake Michigan Beach Park funding The Downtown Coordinator position has been vacant for several months. A credit is expected from the Chamber in the 2002-2003 budget period.

The City is seeking assistance in funding the Wharfside purchase from a number of sources. The DNR Trust Fund has appraised the property $113,000 lower than anticipated. Also, the $70,000 Frey Foundation grant is designated as a challenge grant. A committee is actively seeking private funds for the matching part of the Frey grant. Any donations $1,000 and over will be recognized in a plaque. The relator and the seller of the Bridge Street Bazaar building (This is the building Mr. McCarty is planing to buy to relocate the two existing businesses.) have entered into an agreement to assist in the funding for the project. The closing for the Wharfside is proposed for Tuesday, March 5th. The City is requesting the DDA contribute to purchase the Wharfside building. Funds for the Wharfside could be from non-TIF funds, i.e. rents and interest. The City is asking for a commitment of $31,000 from the discretionary funds. The purchase of the property cannot be made from DDA millage. John Taylor asked if the funds would be used for acquisition or demolishing the building. Mr. Wiesner advised that the funds would be used for acquisition. Funds for demolition are proposed in the 2002-2003 General Fund budget.

Jeff Porter asked if the City was planning to pay rent to the DDA for using the old Post Office during the renovation.

John Taylor voiced concerns in removing additional buildings in the downtown area. Presently, the fees for renting retail space in the downtown area are very high. Most businesses are paying a high rent. Does the building need to be removed?

Mr. Wiesner advised that a condition of the grant is that the building be removed and the property made available to the general public.

Fred DiMartino stated that the landlords have to raise building rents because of increased taxes. The SEV is established by the property sales in the area. The removal of the Wharfside building will permit thousands to enjoy the Round Lake view. He has had the opportunity to rent his building, but the proposed renters wanted to rent the store front for only six months. He wishes the tenants of his building to be year round renters.

Jeannine Wallace is excited about the project. The additional property will enhance the "crown jewel " of Charlevoix.

Dan Barron expressed the desire to continue to look at ways to extend shoulder seasons. This will help the downtown businesses be more viable. The concern of vacant store fronts in the Winter months has came up the last 20 years.

Mayor Russell stated that he has received comments that the snow mobile business has helped the downtown businesses.

The Board had no further questions on the proposed budget amendment.

Motion made by Fred DiMartino that the DDA approve the proposed amendment to the 2001-2002 City budget and contribute $31,000 toward the purchase of the Wharfside building. Motion seconded by Jeannine Wallace.

Motion adopted by the following yea and nay vote:
Yeas: Mayor Russell, Jeff Porter, Mary Feindt, High Mason, Fred DiMartino
Nays None
Abstain: John Kurtz, John Taylor and Dan Barron

The Board reviewed the proposed 2002-2003 DDA budget and the proposed capital plan.

Jeff Porter questioned the proposed expenditure for park equipment. Mr. Wiesner advised that the $8,100 is for the purchase of picnic tables and park benches. Mr. Porter asked the benches be placed in Veteran's Park. Mr. Porter also asked about debt service. Mr. Wiesner advised that the DDA's debt on Bridge Park would be paid in 2012 or 2013.

Mr. Wiesner also stated that the current DDA plan ends in 2012 - 2013. The bond will be paid and the DDA will no longer have the School capture. The plan can be redone. The budget's six year projection shows an accumulation of funds.

Dan Barron asked for an update on the East Park ice rink. Mr. Wiesner stated that the City is trying to make the rink, but the weather is not cooperating. Jeff Porter asked if the City could investigate the purchase of artificial ice rink system. Upon the purchase of an artificial system, skating could start just after Thanksgiving. Mr. Wiesner stated that an ice rink could be included in the DDA capital plan. Jeannine Wallace voiced concerns on whether a rink is practical at this late date. It is almost February. If you get the rink going, there will be only a few weeks of skating before the season ends. John Kurtz suggested that the funds allocated for an ice rink this year be transferred to 2002-2003 budget.

Motion made by Jeff Porter to accept the 2002- 2003 DDA budget as presented. Motion was seconded by Fred DiMartino. Motion adopted by the following yea and nay vote:

Yeas: Mayor Russell, Jeff Porter, Mary Feindt, High Mason, Fred DiMartino, John Kurtz, John Taylor and Dan Barron
Nays None

G) OLD BUSINESS

None.

H) NEW BUSINESS

Jeff Porter and Mayor Russell expressed concerns on the City continuing to try and make an ice rink in East Park this year. Dan Barron asked the Board to consider saving the funds and using the money on other projects. It was asked that the City look at acquiring the equipment for an artificial rink. It is desired to have the ice rink in place just after Thanksgiving. The ice rink should be a part of the new park plan.

Motion made by Dan Barron and seconded by John Taylor to cancel the East Park ice rink project for the 2001-2002 season and to forego any further attempts to make ice. Motion adopted by the following yea and nay vote:

Yeas: Mayor Russell, Jeff Porter, Mary Feindt, High Mason, Fred DiMartino, John Kurtz, John Taylor and Dan Barron
Nays None

H) FUTURE AGENDA ITEMS

The DDA will meet with the planning consultant in the near future to discuss the park plan.

I) ADJOURNMENT

Motion made by John Taylor and seconded by Jeannine Wallace to adjourn. Motion adopted unanimously.

Meeting adjourned at 6:25 p.m.


Respectfully Submitted,

Linda Jo Weller,
Recording Secretary