A) CALL TO ORDER

The meeting was called to order at 5:32 p.m. by Chairman Hugh Mason.

Present Dan Barron, Mayor Norm Carlson, Jr. Fred DiMartino, Hugh Mason, Jeff Porter, John Taylor (arrived at 5:35 p.m.) Jeannine Wallace and John Yaroch
Absent John Kurtz

B) APPROVAL OF AGENDA

None.

C) INQUIRY INTO POTENTIAL CONFLICTS OF INTEREST

None.

D) APPROVAL OF MINUTES


Enter John Taylor at 5:35 p.m.

January 24, 2005 Joint City Council/DDA Meeting Minutes
January 24, 2005 Regular Meeting Minutes


Motion made by Dan Barron and supported by Jeff Porter to approve the minutes of the joint City Council/DDA Meeting and the DDA's regular meeting minutes of January 24, 2005. Motion adopted unanimously by voice vote.

E) PUBLIC INPUT, NOT RELATED TO OTHER AGENDA ITEMS

None.

F) NEW BUSINESS

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

Chairman Mason asked DDA to consider the proposed resolution to permit the carry over of funds into the 2005-06 budget period. Motion made by Jeff Porter and supported by Dan Barron that the resolution be approved.

WHEREAS, The City of Charlevoix Downtown Development Authority is projecting an approximate $821,017 fund balance as of March 31, 2005; and

WHEREAS, The Downtown Development Authority is in the process of prioritization and implementation of future projects; and

WHEREAS, The Downtown Development Authority has debt service payments;

THEREFORE BE IT RESOLVED, THAT THE DOWNTOWN DEVELOPMENT

AUTHORITY, hereby earmarks its March 31, 2005 fund balance estimated at $821,017 for implementation on the yet to be prioritized projects and to pay future years debt service payments now within their development plan, as funding allows.

RESOLVED, this 28th day of February, 2005, A.D.

Resolution was adopted by the following yea and nay vote:

Yeas: Dan Barron, Mayor Norm Carlson, Jr. Fred DiMartino, Hugh Mason, Jeff Porter, John Taylor, Jeannine Wallace and John Yaroch
Nays: None.
Absent: John Kurtz

Chamber of Commerce Relationship with DDA

Charlevoix Area Chamber of Commerce Chairman of the Board Jim Berlage addressed the Board. He read a prepared statement which is made a part of the record as "Exhibit A."

The Downtown Development Authority recently approved its proposed 2005-06 budget. In the budget, the DDA did not renew expenditures totaling $13,000 for the Downtown Coordinator. The Chamber is asking the DDA to reinstate the $13,000 appropriation for the downtown coordinator. It also asks the DDA to pay $10,000 to pay for the summer concert series which the Charlevoix Convention and Visitors Bureau has discontinued. [Last year the concert series consisted of ten performances in the East Park.] Mr. Berlage also requested the DDA allocate an addition $27,000 to the Chamber to promote Charlevoix and events held in downtown and in the off-season to acquire more business for Charlevoix.

Jacqueline Merta, President of the Chamber advised the Board that Cindy Martin, a Chamber employee, has been designated a Downtown Coordinator. Ms. Merta promoted Ms. Martin to the position. Kirby Dipert advised that Board that Ms. Martin is one of the best persons they have had in the position.

Mayor Carlson asked if the Chamber was requesting $27,000 to promote the downtown, what was the downtown coordinator for? Mayor Carlson also asked if it cost to have the BASS tournaments here? Jeff Porter asked if the Chamber made any money organizing the event?

Ms. Merta stated that the Chamber pays a "hosting fee." Participants come to town several weekends prior to the event to practice and then stay in local motels and eat in local restaurants. Chamber staff assists them in making arrangements for the event. The tournament registration fees go to the groups expenses

Dan Barron stated that originally the DDA asked the Downtown Coordinator to do a market study, recruit businesses to the downtown area and to establish a clearing house of information for prospective businesses. The role of the Downtown Coordinator was shifted to assist is bringing groups to Charlevoix in the shoulder seasons and to promote downtown Charlevoix. Now the funds are now being used to subsidize the Chamber. In the past, the Downtown Coordinator has attended DDA meetings and has made reports to the Board. The Board was not aware that a new Coordinator had been appointed nor has it received any reports on the Coordinator's work.

Dave Scott voiced support for the DDA giving the Chamber the funds. He asked the DDA to stop providing funds for infrastructure improvements in the DDA area and look at amending its bylaws to do more to market downtown Charlevoix.

Dan Barron advised Mr. Scott that the DDA is seeking to market downtown Charlevoix. It has a proposal before the City Council, the fourth amendment to the DDA development plan, which in part allows the DDA to spend funds to promote the downtown area.

Jill Picha asked that if the DDA helped the Chamber, would it have the funds to also do the infrastructure projects? Jeannine Wallace stated that the DDA would have to review the situation

Eric Kammermann stated that as the DDA receives its funds from the downtown businesses, it should budget funds to help promote the downtown. If we do not continue the funding, we will be taking a step backward.

John Yaroch stated that the DDA is looking at the needs to the businesses in the DDA district. A lot of individuals are not pleased on what has happened in the downtown area in last15 years. There are problems and road blocks that need the DDA's attention. The DDA is looking at creating a coalition of groups to work together on the project. The group would look beyond the Chamber, the CVB and the DDA to interact and to bring the community together, not to go off and work on things piece meal, but cooperatively.
Mr. Yaroch stated that items need to be coordinated. Someone needs to follow through. Why isn't the CVB assisting in funding? We need to sit down together and work things out. Jim Berlage stressed that by taking away the funding from the Chamber and discussing the creations of a new organization, the DDA is fracturing the ability for all agencies to work together successfully.

Mayor Carlson stated the DDA and the Chamber need to stop arguing and find a way to work together. The Chamber is unhappy about the downtown coordinator's funding being cut, the Chamber wishes to expand the work of the coordinator, the DDA is unhappy about not knowing what is going on. In near future, the DDA hopes to get together, the Chamber/CBV/DDA , to look at ways to promote downtown Charlevoix. It is not the DDA's intention to go off solo. The Boards need to work together. The DDA does not wish to be seen as the Chamber's wallet. The DDA wants to know how its money is being spent. The Downtown Coordinator needs to be aware of what the DDA's goals are and to work with the DDA in the best interest of the DDA district. The Downtown Coordinator originally was separate from the Chamber of Commerce, now the position is doing work on behalf of the Chamber. Mayor Carlson asked that instead of seeking who is to blame, we work together to come up with solutions. We need to determine who is in charge, how much money is being requested, and what are the long term goals?

Jim Berlage stated it is the Chamber's intent to improve communications between the DDA and the Chamber, but it cannot be done by reducing the Chamber's funding. Mr. Yaroch was asked to join the Chamber's Retail Committee. The Retail Committee's goals are the same as Mr. Yaroch's proposed Task Force.

Jacqueline Merta stated that the Chamber's Board meetings are at the same time as the DDA's. She asked the DDA to consider changing its meeting time.

Jeff Porter stated that ten years ago there was a strong retail base in the downtown area. We no longer have it. The DDA has done more than $11 million in improvements to the downtown area. New sidewalks, street lights, water and sewer mains, streetscape, removal of the old sewage pump station, new offices for the Beaver Island Boat Company, hanging baskets of flowers on the lamp poles and new restrooms. Things should be better, not worse. We need to look at why things are going down hill and not look at bringing more people into Charlevoix for a one time event. We need to attract retail into the area and create a strong base. The DDA needs to look at solving the problem, to have guests and locals want to come into the downtown area.

Kirby Dipert stated that as an active downtown merchant and property owner, he is concerned on how the DDA spends its money. He feels we presently have a vehicle in place to do the work. The Downtown Coordinator is paid by Chamber and the DDA. The Coordinator works in the Chamber office and is actual is day to day planning. Things can be studied to death. The DDA has been improvements, property values have increased, taxes have gone up, the costs of doing business in downtown Charlevoix are high.

Dan Barron voiced concern that there has to be accountability. The DDA is not only spending money, but needs to know what the money is doing. The DDA wants a reporting system and an idea on what the goals are of the Downtown Coordinator. The DDA is not providing the Chamber with a subsidy

Mr.Dipert asked when the DDA stop receiving its reports. Did the DDA ask where the reports were?

Mr. Barron stated the DDA needs accountability on what its money is being used for. There has been a breakdown of communication.

Dave Scott asked if the DDA gives $30,000 to the Library each year, why not give funds to the Chamber?

Jill Picha asked the DDA to consider saving and not spending any more money on the park project.

Jeff Porter and Dan Barron informed Mrs. Picha that if the DDA does not pay for the Marina/downtown park project, then Charlevoix's residential taxpayers would have to pay for the repair of the marina breakwall, which is estimated at $4 million. The taxpayer would also have to pay for the clean up of the contaminated soil in East Park.

Linda Mason approached the DDA asking that they seek to coordinate all groups, retailers, Chamber, CVB, and DDA to join together to find out how to improve the situation.

Ron Agnello asked the DDA's support. The proposed changes to the downtown park area mean the Chamber will lose its home. The DDA's and City Council's support to permit the Chamber to relocate to the old Post Office means a lot to the Chamber. The DDA's funding for the Downtown Coordinator position is 5% of the Chamber's budget. The loss of the DDA's funds and the loss of the CVB's support of the summer concert series is serious. The Chamber has recently lost members. Present members cannot pay more. The Chamber is in financial trouble. We are experiencing a weak economy and needs the DDA's continued support. He voiced concern of the Chamber having to close.

Dave Scott asked the DDA to really look at their goals and seek to assist the Chamber is helping to promote Charlevoix.

John Yaroch reminded the Chamber that the City Council is holding a public hearing on March 7th to consider two amendments to the DDA's development plan. If amendment four is approved, the DDA will be able to consider providing funds for promoting the downtown area.

Jeannine Wallace stated that the DDA has no intention of turning its back on the Chamber. The DDA simply chose not to renew the downtown coordinator line item in its budget.

City Manager Michael Wiesner advised the DDA that the City Council is considering a $7,000 community promotion line item for the chamber. If the DDA would allocate the $13,000 for the downtown coordinator, then the chamber would have $20,000.

Board members generally agreed to look at working together with the Chamber.

The Board will meet in a special work session on Tuesday, March 15th at 5:30 p.m. to discuss its support of the downtown coordinator and the Chamber.

G) OLD BUSINESS

None.

H) FUTURE AGENDA ITEMS

Special DDA work session on Tuesday, March 15th at 5:30 p.m.

I) ADJOURNMENT

Motion made by Dan Barron and supported by Jeannine Wallace to adjourn. Motion was adopted unanimously by a voice vote.

Meeting adjourned at 7:04 p.m.


Respectfully submitted,
Linda Jo Weller, Recording Secretary