Madison Square Corridor Improvement District Authority
August 19, 2015 Meeting Minutes
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CITY OF GRAND RAPIDS
Madison Square Corridor Improvement District Authority (CID)
Meeting Minutes August 19, 2015
LINC Community Revitalization, Inc. Gallery
Members Present: Jorge Gonzalez (Acting Chair), Valencia Cooper, Com. Senita
Lenear, LaKiya Jenkins
Members Absent:
Tom Duthler
City Staff Present: Eric DeLong, Emily Madsen
Others Present:
Nick Bakker (Alger Heights), Tom Bulten (Oakdale Neighbors), Taffy
Dickerson (Seeds of Promise), Ron Jimmerson (Seeds of Promise),
Renard Johnson (Grand Rapids Black Chamber of Commerce,
Seymour Square), Mark Lewis (Neighborhood Ventures), Dan Page
(Seeds of Promise), Patricia Pulliam (Grand Rapids Times, Seymour
Square), Charley Lovely (Baxter), Marvin Martin (Grand Rapids
Urban League), Ann Marie Rivera (Seeds of Promise)
Legal Counsel:
Jessica Wood
Copies To:
Kara Wood, Jana Wallace
1. Call to Order
Mark Lewis asked for an appointed board member to volunteer to Chair the
meeting. Jorge Gonzalez accepted. Mr. Gonzalez called the meeting to order at
11:03 a.m.
Guests were invited to introduce themselves. Mr. Lewis congratulated the
Madison Square Corridor Improvement District Authority Board on building
capacity to achieve quorum and he personally thanked each one of the guests for
attending as representatives of their respective business districts.
2. Review and Approval of October 23, 2013 Meeting Minutes
The minutes from October 23, 2013 were reviewed. No corrections were noted.
Com. Senita Lenear moved to approve the October 23, 2013 Meeting Minutes.
LaKiya Jenkins seconded. Motion carried.
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August 19, 2015 Meeting Minutes
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3. Review and Approval of October 15, 2014 Meeting Minutes
The minutes from October 15, 2014 were reviewed. No corrections were noted.
Valencia Cooper moved to approve the October 15, 2014 Meeting Minutes.
Com. Senita Lenear seconded. Motion carried.
4. Review and Approval of April 15, 2015 Meeting Minutes
The minutes from April 15, 2015 were reviewed. No corrections were noted.
Com. Senita Lenear moved to approve the April 15, 2015 Meeting Minutes.
Valencia Cooper seconded. Motion carried.
5. Review and Approval of July 15, 2015 Meeting Minutes
The minutes from July 15, 2015 were reviewed. No corrections were noted.
Com. Senita Lenear moved to approve the July 15, 2015 Meeting Minutes.
Valencia Cooper seconded. Motion carried.
6. Election of Officers
Mark Lewis explained that there are three positions that need to be filled by the
board members: chair, vice chair, and secretary. The chair facilitates the
Authority’s meetings. The vice chair acts as chair in the chair’s absence. The
secretary is responsible for executing legal documents.
Ann Marie Rivera inquired about board member eligibility. Ms. Lenear and Mr.
Lewis explained the appointment process for serving on a City Board.
Com. Senita Lenear nominated Jorge Gonzalez as Chair, LaKiya Jenkins as Vice
Chair, and Valencia Cooper as Secretary. There were no alternate nominations.
Com. Senita Lenear moved to approve the Election of Officers.
Jenkins seconded. Motion carried.
LaKiya
7. Approval of FY16 Budget
Mr. Lewis presented the FY2016 Budget. This budget was approved by the City
Commission on June 9, 2016 and is coming to the board for acceptance now
because the board did not have a quorum at the time of the budget approval
process. This Authority operates on tax increment financing. There is no new
revenue anticipated this fiscal year but there are $2,553 in funds available from the
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August 19, 2015 Meeting Minutes
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fund balance. Mr. Lewis indicated that these funds would be available to the board
to utilize this year based on Board priorities.
LaKiya Jenkins moved to approve the FY16 Budget.
seconded. Motion carried.
Valencia Cooper
8. Approval of Revised 2015 Meeting Schedule for September-December
Mr. Lewis presented the revised 2015 Meeting Schedule for SeptemberDecember. It is recommended that the Authority hold monthly meetings, rather
than quarterly meetings. There was appreciation expressed for the new meeting
space.
Valencia Cooper moved to approve the Revised 2015 Meeting Schedule for
September-December. Com. Senita Lenear seconded. Motion carried.
9. Review and Consideration of Policy on Liquor License Requests in City
Development Districts and Recommendation to City Commission for
Approval
Mr. Lewis presented City Policy 300-08 on Liquor License Requests in City
Development Districts. This policy would give developers the opportunity to apply
for redevelopment project area liquor licenses for projects within the CID.
Developers would come to Board to present their project and that project would
have to be approved by the Authority, the City Commission, and the State of
Michigan’s Liquor Control Commission. Liquor license requests of this nature
might be considered to be an incentive to a developer to consider investing in the
district. Development area liquor licenses are limited to sit-down restaurants that
have met certain investment requirements.
Com. Lenear asked if this discussion should be tabled until after the potential
expansion of the CID. Mr. Lewis noted that this was an item of business from a
few years ago that was put on hold due to the lack of a quorum and if passed now,
would be applicable to the expanded CID. Com. Lenear stated that the other
districts that end up being incorporated into the expanded CID should be included
in making a decision of this type.
Others wondered if there were any current projects seeking a redevelopment area
liquor license. Mr. Gonzalez noted that a few years ago, when this item was first
discussed by the Authority, LINC was interested in a development area liquor
license for their restaurant. Ms. Jenkins stated that she is not sure if LINC is still
pursuing a liquor license for the restaurant but knows they are interested in getting
a liquor license for the Gallery.
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LaKiya Jenkins moved to table the Policy on Liquor License Requests in City
Development Districts. Jorge Gonzalez seconded. Motion carried.
10. Tax Increment Financing Plan Committee Update
Mr. Lewis presented the Tax Increment Financing Plan Committee Update.
Madison Square CID is a formal development district established by the City but it
has been struggling to collect enough revenue. The main challenge is the size of
the district. Madison Square CID encompasses only the Madison Square business
district; whereas, Uptown CID is a collaboration between four business districts
and Westside CID is a collaboration between three business districts. Madison
Square CID is much smaller (87 parcels) than Westside CID (854 parcels) or
Uptown CID (635 parcels). This is why the Authority wants to start a conversation
about expanding into a collaboration and has invited representatives to this
meeting from the surrounding districts, including Franklin and Eastern, Oakdale
and Eastern, Boston Square, Seymour Square, and Alger Heights. An example of
collaboration between these districts in the past was the Southtown branding that
was done by installing bike racks and banners.
Mr. Lewis reviewed the Corridor Improvement District FAQ Sheet in the agenda
packet. The potential boundaries for the expanded CID would generally go from
just south of Wealthy Street along Eastern Avenue down to 28th Street and would
continue east on Hall Street from the current Madison Square CID’s western
boundary at Jefferson Avenue to Fuller Avenue. For this to succeed, the other
neighborhood business districts would have to want to formally participate in the
CID and the proposed development area would have to meet certain legal
requirements as established by State of MI and City of Grand Rapids policy. The
process of expanding the CID involves a feasibility study, community visioning and
consensus building, amending the Madison Square CID proposal, going through
the City Commission public hearing and approval process and appointing
additional members to represent the other business districts in the expanded CID.
Mr. Lewis asked for feedback or questions from the visiting business district
representatives. Tom Bulten stated that he feels that tax increment financing is a
great tool for business districts, but he noted that with more properties in the CID,
there is also more area drawing on somewhat limited available resources. Patricia
Pulliam remarked that as a business owner, she has personally benefited from tax
increment financing. She also noted that Seymour Square has a lot of unique
needs with the number of vacant properties and dilapidated buildings increasing.
Renard Johnson said he is interested in the idea of expanding the Madison Square
CID into other areas. He has considered going door to door to neighborhood
businesses to try to form a group and pool some money to help fix up the Seymour
Square business district. Nick Bakker commented that Alger Heights has
discussed the possibility of forming a CID but realizes they have similar challenges
with regard to size, and they feel that they are not big enough to do so alone. They
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would like form a collaboration such as the one being proposed. Joining a CID
that is already established, like Madison Square CID, is also attractive to them.
Alger Heights has discussed the possibility of forming a Business Improvement
District, if they are not able to join a CID.
Mr. Bakker asked if tax capture only occurs if property owners pay their taxes. Mr.
Lewis responded that it is captured either way and it is up to the City to collect the
taxes for those in arrears. Mr. Bakker inquired if there is data on whether property
values have been increasing or decreasing within the proposed CID. Mr. Lewis
responded that property value trends are different for each neighborhood and that
in Madison Square property values have decreased in the recent past. Jessica
Wood added that if property values decrease, nothing is owned back to the City
from the CID however there is no new tax capture until the value increases beyond
the baseline. Ms. Pulliam wondered if it would it put Alger Heights at a
disadvantage to be tied together with a district like Seymour Square in a CID. Mr.
Lewis replied that the CID will work to brand the entire area as “Southtown” in a
similar fashion as the previous partnership campaign and subsequently promote
the great qualities of each of the individual neighborhoods that make up
Southtown.
Eric DeLong reiterated that the current property values will be the baseline and
any increase in property values will result in capture, so growth in one business
district helps everyone in the CID. He further stated that now is the time to have
this conversation in order to take advantage of the economic growth currently
happening. Mr. DeLong also made the point that while tax increment financing
revenue is good for paying for identified projects it is also something that takes
time to build up. Experience has shown that the greater benefit achieved by CID’s
in the earlier years is establishing a model where multiple business districts work
together as one voice to promote the area.
Ms. Pulliam wondered how developers might have an impact on the character of
the neighborhoods. Mr. Lewis responded that all of the City’s normal approval
processes would still be in place (i.e. Planning Commission, Zoning Board of
Appeals, City Commission, etc.) and any financial incentives requested by
developers would also come to the CID Authority Board for approval. Mr. DeLong
added that this actually offers organized neighborhoods more of a voice because
they have an increased level of engagement with the City through the CID.
Mr. Lewis asked if anyone present would like to serve on Tax Increment Financing
Plan Committee along with others who had previously committed. Ms. Pulliam,
Mr. Johnson, Mr. Bakker, and Mr. Bulten all responded affirmatively. Mr. Lewis
noted that he spoke to Marian Barrera-Young on the phone and she agreed to
represent Franklin and Eastern on the Committee. He will coordinate meetings
times with all interested parties.
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11. Review Project List (Short and Medium Term Improvements and Activities)
Mr. Lewis presented the Project List from the previously approved Development
and Tax Increment Financing Plan and asked the board members to review this
list for some immediate improvements they might like make in Madison Square
CID. He suggest they focus on “easy win” projects that have a high visual impact
from the street in order to show that something is happening in the district.
Ms. Cooper noted that the Southtown Square commercial building will be having
a grand opening and Jake’s Barber Shop is also interested in having a grand
opening. She suggested perhaps coordinating a CID-wide sidewalk sale with those
grand openings in late September. Ms. Cooper also suggested having some sort
of promotional event in November in order to capitalize on the holiday season.
12. Other Business
None.
13. Public Comment
Mr. Jimmerson thanked Mr. Lewis for meeting with the other neighborhood
business districts and moving this process forward.
Mr. DeLong commented that it might be beneficial to have either the City’s
Engineering or Community Engagement Department attend the next board
meeting to present on street improvements planned in the Southtown area.
14. Adjournment
Jorge Gonzalez adjourned the meeting at 12:16 p.m.
Minutes recorded by Emily Madsen.