I. Roll Call of Members Present

The meeting was called to order by Chairman Mason at 7:02 p.m.

Present: Dan Barron, Mayor Norm Carlson, Jr., Fred DiMartino, Hugh Mason, Jeff Porter, John Taylor, Jeannine Wallace and John Yaroch.

Absent: John Kurtz

II. Inquiry Regarding Possible Conflicts of Interest

None

III. Public Input, Not Related to Other Agenda Items

Dave Scott asked the DDA to consider modifying their agenda in the future to have public input at the end of the meeting. Mr. Scott also asked the DDA to change their bylaws to permit it to be more consistent with Public Act 197. The Act has been updated to include other items since the DDA's enactment of their bylaws.

Eric Kammermann asked if DDA Board member Dan Barron had a conflict of interest. Mr. Barron stated that he has represented the Convention and Visitors Bureau (CVB) in the past. But he has no financial interest in the discussions before the Board tonight.

IV. Old Business

A. Funding for Downtown Coordinator and Chamber of Commerce

Chairman Mason stated that originally the Downtown Coordinator was to assist in bringing visitors into Charlevoix in the shoulder season. Now it is felt that the DDA gives the Chamber of Commerce a grant. The job focus of the Downtown Coordinator was changed without the knowledge of the DDA.

Dan Barron reviewed past DDA minutes and discussed how the Downtown Coordinator position evolved since 1992. The DDA has asked for details on the downtown coordinator's job description in the past. The Coordinator position got off to a good start but then fizzled out. The DDA received its last report on the Coordinator's work plan in 1999. The Coordinator's tasks were to work with existing businesses and determine the type of business that should be sought to come to Charlevoix, to help land owners to fill vacant stores and to assist with brings group meetings into Charlevoix. After 1999, contact between the DDA and the Downtown Coordinator diminished.

Chairman Mason stated that the DDA's budget is very tight. He also advised the DDA that the City Council at its Monday, March 14th meeting has determined that the DDA will pay $37,000 for Christmas lights in the downtown area in the 2005-06 budget. This expenditure will continue each year.

John Yaroch commented that the partnership between the DDA/Chamber/CVB allowed the Downtown Coordinator to be a full time position and permitted better communication between the groups whose goal is to improve the downtown area. Mr. Yaroch feels we need to revisit this format. Mr. Yaroch questioned if the Coordinator should be overseen by the DDA. The DDA does not intend to take funds away from the Chamber, but DDA's $13,000 was designated for the Coordinator's salary. Mr. Yaroch stated the position is complex and he realizes that the Chamber has financial needs.

John Campbell suggested that the DDA, Chamber, CVB and Castle Farms sit down and mediate a plan to look forward as a group to unite and coordinate items for the benefit of the downtown community.

Chairman Mason stated in the past the DDA has done bricks and mortar items to facilitate improvements to the downtown area. We are presently looking at what items need to be completed and where the DDA wishes to go toward its completion of its goals.

Dan Barron reminded the Board that the DDA's goals are to continue revitalization of the downtown area by investing and promoting the downtown. The DDA needs to know how its money is being used and be held accountable. The Chamber might need additional funds to assist in marketing and promotion, but the DDA needs a means of accountability to be assured that its dollars are being well spent and its goals are being implemented.

Jeff Porter expressed his belief that the Chamber focuses 10% on the City's retail downtown businesses. The DDA district is 80% retail. The DDA's mission is to support the downtown retail community. As a member of the Chamber, Dr. Porter sees their focus on industrial areas, new construction and in areas outside the DDA district. The DDA's focus and responsibility are that its funds are spent correctly and used to assist only the downtown area.

Jacqueline Merta provided the Board to hand out materials. [Attached to the record as Exhibit A.] The materials were:

1. A contract between the DDA and the Chamber, which includes an outline of the Downtown Coordinator's job duties
2. Job description for the Downtown Coordinator (dated 1998)
3. Downtown Coordinator job description (dated 2002)
4. The Chamber of Commerce's Strategic Plan

5. 2005 Program of Work & Goals "What the Chamber does for results"

6. A list of entitled "2005 Downtown Marketing & Promotion Expenses"

Ms. Merta advised the Board that the 1998 and 2002 job descriptions were drafted by the Downtown Coordinator Advisory Committee. The Downtown Coordinator is answerable to Ms. Merta. The CVB no longer pays a part of the position's salary. The Strategic Plan is used to develop the Chamber's annual goals. The Strategic Plan was created by input from the general public through numerous meetings. The Chamber wishes to work with the DDA. The DDA and Chamber can be more effective working together, than separately. The Chamber has recently added activities to the downtown area, Fall decorating, A Taste of Charlevoix, assisting groups to come to Charlevoix, Christmas decorating and the Easter egg hunt. A great deal of time was spent trying to establish a convention center in the downtown area. Time is spent on issues, not preparing written reports. The City Treasurer receives financial information from the Chamber.

Chairman Mason stated that the DDA has not been receiving information on the activities of the Downtown Coordinator since 2002.

Ms. Merta recalled the past Downtown Coordinator Amy Lalewicz was introduced to the Board. Communication is a two-way street. Ms. Merta felt she was administering the program and getting the job done.

Chairman Mason reminded members of the Chamber that if the DDA is giving cash toward an item, they want to know what is going on.

Jacqueline Merta stated that the Chamber keeps individuals informed through monthly news letters in the Courier and by e-mail. It is working to improve its communication with Chamber members.

Mayor Carlson asked if the role of the Downtown Coordinator was different from the Chamber's? Ms. Merta responded that the two roles were different. Mayor Carlson stated it seems the two entities, the Downtown Coordinator and the Chamber, has things in common. The Coordinator is a Chamber staff person and works on Chamber items. He then verified that the Downtown Coordinator's job is to help strengthen the downtown, coordinate with existing business, to assist is obtaining a diverse business base in the downtown area, recognize the needs of the downtown retail businesses and assist in filling the empty store fronts. This is not the same as helping to organize an Eater egg hunt.

Ms. Merta stated that having these types of events in the downtown area helps to keep the downtown vitalized. The downtown needs year round activities. There are expenses in promoting the downtown area. The figures outlined in the 2005 downtown Marketing & Promotion expense does not include personnel costs.

Jeff Porter asked if the Chamber of Commerce earned money by hosting the craft fair.

Ms. Merta stated that the Craft Fair was established to bring people into downtown Charlevoix during Traverse City's Cherry Festival. People come to downtown Charlevoix and fill the lodging, eat at Charlevoix's restaurants, buy gas and candy and fudge.

Dan Barron stated that the Craft Fair brings money to the Chamber so it can then use the money for marketing. The DDA is looking at expanding into a new realm. Someone needs to coordinate and oversee all the groups, the promotion, advertising and the cost effectiveness of the different projects.

Mayor Carlson feels the DDA needs to determine exactly what the Downtown Coordinator needs to do. The DDA's funding needs to be used only for the Downtown Coordinator's salary. The subsidizing of Chamber events or BASS tournaments needs to be considered separately.

Ms. Merta referred the Board to the third Downtown Coordinator's job description.

Dan Barron stated that the DDA needs to know what is being done. Someone needs to coordinate, analyze if the funds are being used effectively and bring the information back to the Board. The DDA wants to determine the best cost effective ways to contribute to the DDA district. What is the Downtown Coordinator's work plan?

John Taylor requested that the DDA received information on what its funds are being used for. They want assurances that the money is not being placed in the Chamber's general fund. The DDA's monies come from taxpayers in the DDA District. The Chamber is involved in the entire Charlevoix area. The DDA is re-evaluating on what it wishes to use its funds for - promoting the downtown and infrastructure. The use of DDA funds to upgrade streets, sidewalks, plant trees and flowers have permitted the downtown property owners to update their properties. The completion of the marina and park project will finish the revitalization effort.

Ron Agnello asked the DDA to consider funding a concert series in East Park. The CVB has withdrawn funding. The concert series is estimated to cost $10,000. The concerts bring people into the downtown park area. The Chamber needs funds.

The Board asked why the CVB has stopped funding the concerts? The answer was not available at the meeting.

City Manager Mike Wiesner was asked to provide budget figures for the DDA to review that would include the downtown Christmas lighting requested by the City Council, the $6.4 million in bonds to fund the marina project, subtracting the $1.7 million for the band shell, for the next twenty years.

Dan Barron asked the City Manager to check with the City's legal counsel to see if the City Council's adoption of the fourth amendment to the DDA's development plan permitted the DDA to engage in promotional activities or does the DDA need to amend its bylaws?

Jeff Porter asked that the information be available for the next DDA meeting [March 28th] on whether the DDA needs to change its bylaws.

Bill Supernaw asked the DDA to consider giving the Chamber the $13,000 for the Downtown Coordinator. He hopes the Coordinator is doing more than organizing Easter egg hunts. The two groups need to improve its communications. Mr. Supernaw also asked if the CVB is not hosting the concerts, than what is it doing with its money? Mr. Supernaw also asked to go on record asking to start an initiative to bring the East Park improvement to a vote. The park is in need of improvements.

Dave Scott asked the board to consider the Chamber's request. The Chamber has seen a cut their funding. More money needs to be spent on marketing efforts. There is disorganization and a breakdown of communication between the two boards. Act 197 permits the DDA to hire a director to oversee things. The DDA needs to determine how to spend its funds. He asked if the downtown property values are increasing at a comparable rate as Boyne City or East Jordan?

Jill Picha stated she does not support the proposed changes to East Park. She has had comments with members of the Belvedere Club who also do not support the changes. Jeannine Wallace stated that she too has had conversations with Belvedere club members who support the project. Mrs. Picha would support language to fix the existing stairways, remove the fish pond, add bathrooms, changing area and a general fix up the exterior of the existing band shell. She feels the band shell should stay in the center of the park.

Mr. Yaroch stated that the DDA represents all the taxpayers, not just the homestead properties. He asked if the DDA should consider taking a poll or send out a questionnaire asking DDA property owners how they feel about the issues.

Jim Berlage asked the DDA to approve the $13,000 for the Downtown Coordinator. Jeannine Wallace responded that before the DDA can make any decisions, it needs to evaluate is budget.

Mayor Carlson agreed that the DDA needs to review its budget. Originally, we were talking about $13,000 for the Downtown Coordinator, but now the Chamber is asking for funds for concerts and promotional needs.

Jacqueline Merta introduced Cindy Martin, the Downtown Coordinator to the Board. Cindy was hired in October, 2004

Chairman Mason asked the Chamber to keep the DDA abreast on what is going on.

The DDA generally agreed to meet on Tuesday, March 22, 2005 at 5:30 p.m. to meet to discuss its budget. The meeting will be a work session.

V. Adjourn

Motion made by Dan Barron and supported by John Taylor to adjourn. Motion adopted. Meeting adjourned at 8:45 p.m.


Respectfully submitted
Linda Jo Weller, Recording Secretary