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

Roll Call of Members Present

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

Discussion 2005-06 Budget

City Treasurer Rick Brandi presented a DDA Future Fund Projection budget for the period from 2005-06 to 2025-26. The projections assume a tax inflation rate of 2.0%, interest rate of 3.0%, inflation rate of 3%, a marina revenue inflation rate of 2.5% and allocates funds for the cleaning contract with a 4% inflation rate. The City Council at its March 14th meeting eliminated funding for x-mas lights in the downtown trees. Mr. Brandi has included the expense of the x-mas lights in the DDA's 2005-06 budget figures. The cost of the x-mas lighting for future years is estimated at $24,000 in 2006-07 and $32,000 the following year. Another project that is need of consideration is painting the light poles in the DDA district. Originally, the proposal was to paint the poles the same time as hanging the x-mas lights as the lift equipment was available. But the Council chose not to include the painting of the poles in the project. The lights would be placed in the trees and left up in the trees for a two-year period.

Dan Barron asked if the DDA has the ability to fund promotional items? Rick Brandi said Staff would have to be check the wording of the recently enacted amendment to verify if funds can be allocated for promotion.

Mr. Brandi also advised the Board that if the marina project is funded over three years, the DDA could experience a fund shortage, especially if the Waterways fails to come up with the anticipated 75% grant. The State funding needs to be approved by the legislature.

Board members discussed the following:

_ Funding to the Chamber of Commerce $13,000
_ Concerts in the band shell $10,000
_ Strolling sidewalk performances instead of band shell concerts - desire to bring people into downtown to shop and explore
_ Use of local groups to perform in the band shell
_ X-mas lights along Bridge Street $32,700. Since the x-mas lights were withdrawn from the Electric Department budget at the spur of the moment, would there be a possibility of a joint financial effort in the future.
_ Use of x-mas lights in trees in summer months
_ Use of timing devices on x-mas lights to preserve their bulb life.
_ Ragamuffin performances
_ City of Charlevoix's centennial celebration

The Board asked if the construction costs for the fifth amendment to the DDA's development plan (band shell and park improvements) were included in the budget projections. Mr. Brandi advised the Board that the costs for the project were not included in the projections. The availability to fund amendment #5, depends upon the construction costs for amendment #4 (marina construction). Financial advisors have estimated that the DDA can bond for up to $6.3 million. The marina construction is estimated at $4.8 million. The DDA needs a cash reserve in order to sell bonds for the project.

The DDA Board asked City Treasurer Rick Brandi to prepare budget projections which include the downtown park improvements for their review at their March 28th meeting.

Tracy Sell of the CVB answered the DDA's question on why the CVB was no longer willing to pay for the concerts. The CVB marketing mission has been changed. Funds for the CVB come from a tax on hotel rooms. The concerts did not bring guests to the hotels. The CVB has not ruled out future participation. Charlevoix hotels have experienced a drop in room reservations in the past few years. The concerts have cost between $6,000 and $7,000. Mr. Sell stated that CVB funds used to pay the downtown coordinator position are now being used to pay for an administrator who is working directly with the CVB and preparing marketing and promotion materials for them.

John Yaroch questioned if financing the concerts could be considered a retail promotion. Can we consider the use of canned music to give the atmosphere and entice pedestrians to stroll past the downtown stores?

Dave Scott suggested that the DDA not build the capital projects in the marina project and not fund the sidewalk/security project along the Beaver Island Boat Company. He feels the project is not a part of the DDA's bylaws. The DDA should be marketing the downtown area, not contemplating infrastructure improvements.

The Board discussed the establishment of a committee consisting of representatives from the DDA/Chamber/CVB/retail merchants to look at retail promotions. This committee could also oversee the Downtown Coordinator. In the past, the DDA contributed $13,000 and the City Council contributed $7,000 toward the Downtown Coordinator. The City budget still has the $7,000 allocated to the Downtown Coordinator and $6,700 in community promotion funds for the Chamber of Commerce. The Committee would determine the Downtown Coordinator's job duties and monitor if the funds were being spent effectively. It was stressed that communication needs to be in place to ensure that the CVB/Chamber/DDA/Castle Farms are not duplicating efforts. Someone must pull things all together. The Downtown Coordinator position could do this.

Jacquie Merta advised the Board that the Chamber is always looking at new events to bring individuals into Charlevoix. They are working on an Art Fair in late June and the Taste of Charlevoix. It takes a lot of time to organize the events.

DDA Board members discussed the possibility of collaborating with Castle Farms to have joint events (i.e., art show at the Castle and a second event in the park. Possible events include a farmer's market,

Jeff Porter feels Charlevoix has to decide if it wishes to be a resort community or a tourist area. We cannot have it both ways. One day events detract from the resort community. One day events do not bring people into town to stay at the hotels and shop at the downtown stores. People are coming to the craft fair and then they go home. The Chamber represents only 10% of the downtown businesses, whereas the DDA represents 100% of the area.

John Kurtz stated that the marketing of the downtown district is important to the DDA. The DDA has received a number of requests for funding, x-mas lights, the downtown coordinator, concerts, etc. The DDA needs to prioritize what is most important. The DDA and City Council has already approved the budget for 2005-06. Mr. Kurtz asked the Board to look at the long term needs and decide on the amount of funds it wishes to allocate for downtown marketing. Mr. Kurtz feels the DDA needs to look at both short term and long term goals.

John Campbell asked the DDA to consider working with the Chamber, the CVB and Castle Farms to advertise and market Charlevoix jointly. The Downtown Coordinator can pull the groups together and work with all of them to promote Charlevoix.

Kirby Dipert voiced concern over the possible creation of another level of bureaucracy. Who would oversee the Downtown Coordinator if they worked independently of the Chamber? Would it cost more money? Would this solve the communication problems?

Jeff Porter expressed concerns that the different groups do not understand what the problem is now. The DDA has an obligation to taxpayers in the DDA district. The work efforts being done are not working in the downtown area now. Area hotels are not full. Adjacent communities appear to be doing well, but Charlevoix isn't. We need to find out why.

Jacquie Merta stated that overall businesses are up over in the past few years.

Fred DiMartino stated that property values in the downtown are high. The property values have raised 11.3% in the past year.

John Yaroch and Dan Barron expressed a desire to coordinate marketing efforts. Mr. Barron expressed support to fund the x-mas lights at a cost of $32,000 and $5,000 for downtown music, whether the groups perform in the band shell or along the sidewalk; with the money coming from the DDA's Professional Services line item. Also, Mr. Barron proposes $13,000 to be given to the Chamber, with the understanding that the funds are to be used for promotion. The Downtown Coordinator position is not doing the job the DDA had defined in the past. The DDA will look at the changing the focus of the Coordinator position.

Mr. DiMartino asked that the Chamber approach the DDA each year to look at its funding. Mr. DiMartino voiced support for $13,000 to be given to the Chamber as they have budgeted the funds.

Rick Brandi advised the DDA that the 2005-06 City Budget includes a contribution for the Downtown Coordinator position in the amount of $7000. The budget also includes $6,700 to the Chamber of promotion. The Chamber needs to formally ask the City Council for the amount and sign a contract to receive the funding.

Jim Berlage questioned if strolling musical performances would create problems for pedestrians and limit access to store fronts. Jacquie Merta advised the Board that the majority of the concerts on Thursday evening were local individuals. Having the concerts in the band shell creates an ambience that could not be obtained by smaller sidewalk performers.

Jeannine Wallace said there are a lot of bricks and mortar lot left to be done.

Adjourn

The Board generally agreed to adjourn. Meeting adjourned at 7:40 p.m.


Respectfully Submitted
Linda Jo Weller, Recording Secretary