MT. PLEASANT, MICHIGAN

Transcription

1 THE CITY OF MT. PLEASANT, MICHIGAN CITY HALL 320 W. Broadway (989) (989) fax PUBLIC SAFETY 804 E. High (989) (989) fax PUBLIC WORKS 1303 N. Franklin (989) (989) fax TAX INCREMENT FIANANCE AUTHORITY March 25, :30 A.M. AT CITY HALL (CONFERENCE ROOM C - UPSTAIRS) TIFA Members: R. Blizzard 12/31/21 M. McAvoy 12/31/19 S. Christensen 12/31/19 R. Swindlehurst, Chair 12/31/22 W. Joseph 12/31/19 B. Wieferich 12/31/22 J. Horton 12/31/22 M. Sponseller Staff Liaison I. CALL TO ORDER II. III. IV. ROLL CALL AND INTRODUCTIONS CHANGES/ADDITIONS TO AGENDA MINUTES a. February 2019 Minutes V. RECEIPT OF COMMUNICATION a. March 2019 Downtown Directors Report VII. VIII. IX. OLD BUSINESS a. Renewal and Amendment of IPN Ground Maintenance Agreement b. Economic Incentives Discussion NEW BUSINESS a. None OTHER/ADDITIONS TO THE AGENDA X. ADJOURNMENT VI. PUBLIC COMMENT

2 DOWNTOWN DEVELOPMENT DIRECTORS REPORT Date: March 22, 2019 To: From: Re: TIFA Board Michelle Sponseller, Downtown Development Director March 2019 Downtown Development Director s Report III. CHANGES TO THE AGENDA Unless there are changes to the agenda no action is necessary. IV. MINUTES Review of the February 2019 TIFA meeting minutes. V. RECEIPT OF COMMUNICATION A.) DOWNTOWN DIRECTORS REPORT Downtown Directors report covers description of communication and background information on agenda items. VI. PUBLIC COMMENT VII. OLD BUSINESS A.) RENEWAL AND AMENDMENT OF THE IPN GROUND MAINTENANCE AGREEMENT The staff recommendation is to approve the amendment which extends the original mowing contract to October 31, 2019 with the same terms and cost ($2,200) as the original contract, which was approved by the TIFA last year. Attached in the packet is an executed copy of the 2018 contract for reference. This was bid out last year and KyConn was the low bidder at that time. VII. OLD BUSINESS B.) ECONOMIC INCENTIVES DISCUSSION A continuation of the discussion on economic incentives for downtown. A reminder to bring any ideas collected from other communities that may have applicability to our downtown. Attached to this packet will be a copy of the draft business incubator program and anticipated costs, depending on 2 or 3 applicants per year, discussed in VIII. NEW BUSINESS A.) NONE IX. OTHER/ADDITIONS TO THE AGENDA X. ADJOURNMENT

3 THE CITY OF MT. PLEASANT, MICHIGAN CITY HALL 320 W. Broadway (989) (989) fax PUBLIC SAFETY 804 E. High (989) (989) fax PUBLIC WORKS 1303 N. Franklin (989) (989) fax February 25, 2019 MINUTES TAX INCREMENT FINANCE AUTHORITY (TIFA) MEMBERS PRESENT R. Blizzard P 12/31/2021 M. McAvoy EA 12/31/2019 S. Christensen P 12/31/2019 R. Swindlehurst, Chair P 12/31/2022 W. Joseph P 12/31/19 B. Wieferich, Vice Chair P 12/31/22 J. Horton P 12/31/22 M. Sponseller, Staff P N/A A = Absent without notification P = Present EA = Excused Absence N/A = Not Applicable Guests: Bill Mrdeza Roll Call Notes: None I.) CALL TO ORDER Call to order at 8:34am II.) ROLL CALL AND INTRODUCTIONS Board member roll listed above with attendance. Introductions made for guests. III.) CHANGES/ADDITIONS TO AGENDA Motion to approve the TIFA agenda as presented. M = McAvoy S = Horton Motion approved IV.) MINUTES Motion to approve the regular December 2018 minutes as presented. M = McAvoy S = Horton Motion approved V.) RECEIPT OF COMMUNICATION a.) Downtown Directors Report (TIFA/PSD) Receipt of December Downtown Development Directors report. No action taken. VI.) PUBLIC COMMENT No public comments. VII.) OLD BUSINESS None. VIII.) NEW BUSINESS a.) Election of Officers Motion to nominate Rick Swindlehurst as TIFA chair. M = Blizzard S = McAvoy Motion approved

4 Motion to close nominations for TIFA chair. M = Horton S = McAvoy Motion approved Motion to nominate Bryan Wieferich as TIFA vice chair. M = Blizzard S = Horton Motion approved Motion to close nominations for TIFA vice chair. M = Horton S = McAvoy Motion approved VIII.) NEW BUSINESS b.) Blyaws Update Motion to approve the updates to the bylaws as presented. M = McAvoy S = Joseph Motion approved VIII.) NEW BUSINESS c.) Review of TIFA Goals, Roles and Responsibilities Discussion took place, no action was taken. VIII.) NEW BUSINESS d.) 2019 Meeting Dates Motion to meet on the fourth Monday of each month at 8:30am. M = McAvoy S = Blizzard Motion approved IX.) OTHER/ADDITIONS TO AGENDA None. X.) OTHER/ADDITIONS TO AGENDA a.) Roundtable. XI.) ADJOURNMENT Meeting adjourned 9:45am.

5 RENEWAL AND AMENDMENT TO GROUNDS MAINTENANCE AGREEMENT THIS RENEWAL AND AMENDMENT TO THE GROUNDS MAINTENANCE AGREEMENT (the Amendment ) is made effective as of March 25, 2019 between the CITY OF MT. PLEASANT CENTRAL BUSINESS DISTRICT TAX INCREMENT FINANCE AUTHORITY, a Michigan public body corporate of 320 W. Broadway, Mt. Pleasant, Michigan (the TIFA ) and KYCONN PROFESSIONAL LAWNCARE AND LANDSCAPING, a Michigan limited liability company of 5561 S. Whiteville, Mt. Pleasant, Michigan ( KyConn ). RECITALS A. The TIFA and KyConn entered into a Grounds Maintenance Agreement dated April 19, 2018 (the Agreement ). B. The Agreement began on April 19, 2018 and terminated on October 31, C. Notwithstanding the termination date of October 31, 2018, pursuant to Section 3.A of the Agreement, the parties may renew the Agreement in writing. The parties therefore agree that the Agreement shall be renewed and is hereby amended as follows: 1. Section 1.B of the Agreement shall be amended to read as follows: B. The Services shall be performed once per week, during the hours of 7:00 am to 7:00 pm. Services shall begin on May 1, 2019 and continue for a period of 22 weeks. 2. Section 3.A of the Agreement shall be amended to read as follows: A. The term of this Agreement shall begin on March 25, 2019, and shall terminate on October 31, The parties may renew this Agreement in writing. Except as expressly amended by this Amendment, the Agreement will remain in full force and effect without change. The TIFA and KyConn, by their duly authorized representatives, have executed this Amendment as of the date first written above.

6 CITY OF MT. PLEASANT CENTRAL BUSINESS DISTRICT TAX INCREMENT FINANCE AUTHORITY KYCONN PROFESSIONAL LAWNCARE & LANDSCAPING, LLC By: Rick Swindlehurst Its: Chair By: Its: By: Its: Secretary Date Signed: 85714:00001:

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12 DOWNTOWN BUSINESS INCUBATOR PROGRAM PROGRAM OVERVIEW The purpose of the Downtown Business Incubator Program (DBIP) is to create vibrancy and business success in downtown Mt. Pleasant by supporting new retail, restaurants, and entertainment business concepts. The program is available to and will focus on first floor businesses new to the Central Business District TIFA District (CBD TIFA) (see attached map). The Downtown Business Incubator is a program is not tied to a specific space. Prospective applicants may choose any location within the CBD TIFA, as long as the landlord agrees to the terms and condition of the program. The program is offered through the Downtown Development office. Funded by the City of Mt. Pleasant, the intent of this program is to provide an investment incentive that will aid in the revitalization of the downtown. With this purpose in mind, the Downtown Development office has designed this program to meet the objectives of providing support for on-going revitalization, planning and community efforts in the redevelopment of this important commercial area. BENEFITS Businesses that become part of the Downtown Business Incubator Program will receive the following benefits: Months of subsidized rent on the following schedule: a. Month % subsidy or $700/month maximum b. Month % Subsidy or $450/month maximum c. Month % Subsidy or $250/month maximum 2. Access tools, resources, and advice provided by the Mid Michigan Small Business Development Center (MI-SBDC): Starting a Business Writing a Business Plan Marketing Your Business Financial Management Business Legal Issues Business Plan Financial and Accounting Customer Relations Internet and Social Media Management Marketing and Sales 3. Mentoring program with downtown business owner. BUSINESS EXPECTATIONS 1. Owner shall engage the MI-SBDC prior to opening the business to develop their business plan and to assist determining the feasibility of the proposed business. Ongoing counseling, training and mentoring shall continue throughout the 36 month program. 2. Owner will meet with downtown mentor on a quarterly basis. 3. Participating businesses are encouraged to be open for business a minimum of 55 hours per week, 6 days per week. Retailers are also strongly encouraged to have a minimum one evening open. However, hours of operation should be established based on individual business needs. 4. Owner shall obtain the services of a properly credentialed accountant, attorney and financial institution. Page 1 of 6 Last Updated: February 12, 2016

13 DOWNTOWN BUSINESS INCUBATOR PROGRAM 5. Each applicant will be required to submit a quarterly report to the Downtown Development Director to verify that the business is still operating in the approved location and fulfilling the required training component. Following the first 12 months of subsidization and through the third year of participation in the program, applicant will submit a report every six months to provide statistics on full-time and part-time employment. 6. Applicant and landlord must stay current on all municipally applied taxes, special assessments, utility bills, or loans. Payments will cease if either party fails to be current on these obligations. 7. Payments cease if tenant discontinues the business, moves the business, purchases the building, discontinues or drastically reduces its retail function, or fails to comply with any and all building, fire, health or zoning codes or regulations applicable to the business. ADDITIONAL CRITERIA: 1. The maximum rental subsidy over 36 months shall be $17, The business owner shall remain in continuous operation within the Principal Shopping District for three years from the date of opening. 3. Owners who do not attend required training, consulting, mentoring sessions, maintain a minimum number of operational hours, maintain bookkeeping, attorney and CPA services may be found in default of this agreement and shall repay all of the rent subsidy paid to date and forfeits any future rent subsidy. 4. Repayment of any or all incubator subsidies paid to any business that fails or goes out of business prior to the completion of the three-year program requirement. Business owners who locate outside of the Principal Shopping District before this time shall repay all rent subsidy. 5. Priority shall be given to new businesses by: first-time retailers offering new or underserved products, existing downtown retailers offering new or underserved products, expansion of existing retail operations from outside the Principal Shopping District. 6. Ineligible businesses include, but are not necessarily limited to, thrift stores, second hand stores, dollar stores, pawn shops, non-profit agencies and entities (unless there is a retail component), currency exchanges including check cashing agencies and some non-bank financial retail outlets, bars and liquor stores (more than 50% of revenue generated by alcohol sales as compared to food), passive real estate ownership and management firms. 7. For this program, retail is defined as a business in which a majority of the floor space must be dedicated to the display of products available for sale on the premises. 8. Franchise and chain business establishments are eligible to participate in this program. 9. Multiple businesses may be located within one shared space should a property owner wish to create an incubator for multiple smaller businesses. In these cases, the rent subsidy shall be calculated on the portion of the space the applicant is planning on renting. 10. All building and property improvements must meet state and local building codes and zoning requirements. 11. All required municipal or governmental permits must be obtained prior to start-up. 12. All applicants must be current on all taxes and other obligations owed to the City. 13. The DBIP committee reserves the right to reject any application that in their opinion does not meet the criteria of the program. Page 2 of 6 Last Updated: February 12, 2016

14 DOWNTOWN BUSINESS INCUBATOR PROGRAM 14. The DBIP is subject to change at any time. Prior actions of the DBIP committee or Downtown Development Director regarding this program do not set precedence. GENERAL PROGRAM TERMS AND CONDITIONS 1. The City of Mt. Pleasant will process the subsidized payment to be mailed directly to the landlord or leasing agency on the due date specified on the lease agreement. The assisted tenant is required to submit documentation of the partial payment of their rent for the period for which assistance has been provided. Failure to submit the required documentation within 30 days will result in delay of the following month s subsidy until the issue is corrected. Failure to submit rental payment documentation after 30 days will result in non-payment for the following month. 2. Payments will be made for no longer than 36 months and only if the tenant continues to operate an eligible commercial enterprise in the leased premises. 3. Approved applicants will be required to enter into a written agreement with the City that sets forth the terms and conditions of the rental assistance. 4. Denied applicants may reapply after 6 months, subject to funding availability. 5. Applicants must agree to a minimum 3-year lease with an acceptable market or below market monthly lease rate. 6. The rent subsidy shall not begin until the business receives a certificate of occupancy from the City of Mt. Pleasant, a signed lease is provided and the business is open to the public. 7. The retail rent subsidy will be disbursed over the course of 36-months from the date of opening, provided the retailer remains in continuous operation within the Principal Shipping District area. 8. Applicant and landlord must be current on all municipally applied taxes, special assessments, utility bills, or loans. Payments will cease if either party fails to be current on these obligations. 9. Payments cease if tenant discontinues the business, moves the business, purchases the building, discontinues or drastically reduces its retail function, or fails to comply with any and all building, fire, health or zoning codes or regulations applicable to the business. 10. Business owners or partners applying for assistance for more than one business simultaneously may not exceed the maximum subsidy amount for the combined businesses. The subsidy assistance must be split between the businesses. 11. After three years of successful completion of the program, business owners may reapply for additional business assistance for a new business. 12. The rental subsidy assignment is non-transferable between properties, property owners or another individual or corporation. The applicant shall notify the City of Mt. Pleasant within seven (7) days of an offer to purchase or sell the property. 13. In the event that: a. there is a breach of the conditions, program guidelines, or, b. if it comes to the attention of the DDB and/or City of Mt. Pleasant that any of the statements made by the borrower in the application are false; the City shall have the right to revoke funding approval. 14. The Applicant shall at all times indemnify and save harmless the City of Mt. Pleasant, its employees and agents, from and against any and all manner of claims, losses, costs, charges, Page 3 of 6 Last Updated: February 12, 2016

15 DOWNTOWN BUSINESS INCUBATOR PROGRAM actions and other proceedings whatsoever made or brought against, suffered by, or imposed upon any person or property directly or indirectly arising out of, resulting from or sustained as a result of the work associated with the Downtown Business Incubator Program. 15. No member of the governing body and no official, employee or agent of the local government, nor any other person who exercises policy or decision-making responsibilities in connection with the planning and implementation of the Downtown Business Incubator Program shall directly or indirectly be eligible for this program. Exceptions to this policy can be made only after public disclosure and formal approval by the Downtown Development Board and member recuses themselves from all decisions on the application. 16. Businesses currently located in the designated Downtown area that are moving from one location to another location downtown are not eligible. APPLICATION AND APPROVAL PROCESS: Interested parties should schedule a pre-application meeting with staff at (989) prior to preparing any materials for submittal. Applicant submits application and all necessary attachments to the DDB Director, 320 West Broadway, Mt. Pleasant, Michigan Documentation must include following: 1. Application which includes: a. Name of applicant; b. Ownership and/or company officers; c. Monthly rent and square footage to be leased; d. Approximate cost to open the business; e. Personal investment f. Equity bank or other financial commitment g. Building rehabilitation; h. Proposed opening date of the business; i. Number of current full-time and part-time employees; j. Number of full-time and part-time employees you plan to create; k. Will there be any physical improvements to the newly leased space (whether done by the property owner or as a leasehold improvements) prior to occupancy by the applicant? If yes, please provide a description.; l. Does any owner or officer of the business leasing space have a business or familiar relationship to the owner of the property to be leased? If yes, please explain. 2. Business Plan* which includes: a. A description of the business and an explanation of how the business will add to the retail offerings in downtown Mt. Pleasant; b. The proposed location with unexecuted lease; c. A description of the business primary customer base and how the business will engage with them; d. The proposed business mentor; Page 4 of 6 Last Updated: February 12, 2016

16 DOWNTOWN BUSINESS INCUBATOR PROGRAM e. The proposed education program; f. Three years of projected sales & expenses. *Engaging the MI-SBDC is required as a starting point to develop a strategic business plan. The Downtown Incubator Program committee, made up of the City of Mt. Pleasant Finance Director, Downtown Development Director and the Regional Director of the Small Business Development Center, will meet to review the application and make a recommendation within 30 days of receiving application. The DBIP committee will meet on an as-needed basis to review applications. 1. The DBIP committee reviews the completed business plan and application and may request revisions and/or clarification. 2. The applicant will be notified in writing within ten days for notification of approval or denial. 3. If approved, applicant must sign a lease within the Principal Shopping District that has a length of at least three years. Business has 90 days from approval to be open and operational. Restaurants may extend and have 180 days from approval to be open and operational. 4. If approved and the business opens, applicant must complete and/or follow items under section Business Expectations, starting on page 1 of this document. Page 5 of 6 Last Updated: February 12, 2016

17 DOWNTOWN BUSINESS INCUBATOR PROGRAM DOWNTOWN BUSINESS INCUBATOR PROGRAM AREA Page 6 of 6 Last Updated: February 12, 2016

18 Business Incubator Program - Three Year Finanacial Commitment (2 Applicants) Max New Participants Annually Subsidized Rent Year 1 Subsidized Rent Year 2 Subsidized Rent Year 3 Months Year 1 Year 2 Year 3+ Total Annual 2 $750 $450 $ $18,000 $18,000 Year 1 2 $750 $450 $ $18,000 $10,800 $28,800 Year 2 2 $750 $450 $ $18,000 $10,800 $6,000 $34,800 Year 3 $81,600 Total for three-year commitment to the program. Business Incubator Program - Three Year Finanacial Commitment (3 Applicants) Max New Participants Annually Subsidized Rent Year 1 Subsidized Rent Year 2 Subsidized Rent Year 3 Months Year 1 Year 2 Year 3+ Total Annual 3 $750 $450 $ $27,000 $27,000 Year 1 3 $750 $450 $ $27,000 $16,200 $43,200 Year 2 3 $750 $450 $ $27,000 $16,200 $9,000 $52,200 Year 3 $122,400 Total for three-year commitment to the program.