MEETING OF THE DOWNTOWN DEVELOPMENT AUTHORITY Wednesday, October 11, 2006

MEETING OF THE DOWNTOWN DEVELOPMENT AUTHORITY Wednesday, October 11, 2006 8:30 a.m. Meeting Room 601, City Hall AGENDA 1. Call to order 2. Approval of minutes of September 13, 2006 meeting (enclosed) 3. Comments from audience regarding agenda items 4. DDA financial reports for September 2006 (to be available at meeting) 5. GR/Kent County Convention & Visitors Bureau Update 6. Proposal for engineering services Wayfinding Sign maintenance and upgrades (enclosed) 7. Update on Area 4 & 5 development 8. Award contract for reconstruction of Campau Avenue from Monroe Avenue to Pearl Street (enclosed) 9. Public Comment 10. Executive Director s Report (enclosed) 11. Adjournment

MEETING OF THE DOWNTOWN DEVELOPMENT AUTHORITY September 13, 2006 1. Call to Order The meeting was called to order at 8:31 a.m. Chair Kayem Dunn. 2. Attendance Present: John Canepa, Dave Cassard, Kayem Dunn, Mayor George Heartwell, Paul Mayhue, Michelle VanDyke Tom Wesholski, Casey Wondergem, Holly Glover and Jaquan Key Absent: Cathy Mueller Others Present: Jay Fowler (Executive Director), Judy Everett (Recording Secretary), Eric Pratt, Jana Wallace, Greg Krcmarik (Staff), Richard Wendt (DDA Counsel), Dave Bulkowski and Barbara Stoops (Disability Advocates of Kent County), Bob Petko (Progressive AE), and Scott Kearney, Gordon Schmidt Peirce, Mike Houseman (Grand Rapids Ballet Company) 3. Approval of Minutes Motion: Casey Wondergem, supported by Tom Wesholski, moved approval of the minutes of the July 12, 2006 DDA meeting as submitted. Motion carried. 4. Comments from the Audience Regarding Agenda Items None. 5. DDA Financial Reports for July and August 2006 Ms. Wallace reported on the financial statements for the two-month period ending August 31, 2006. Statement A Balance Sheet for August 31, 2006, identifies a positive cash balance in the Debt Increment column since the City Treasurer has distributed the FY 2007 tax increment revenues. Statement B Comparison of FY 2007 Annual Budget versus Actual includes both July and August revenues and expenses. The excess Debt Tax Increment in the amount of $7,034,354 includes $552,924 that is reserved for prior year reimbursements, and $500,000 is reserved for 2005 reimbursements to the public schools and to the Statement of Michigan. Tax increment revenue for the Local Tax Increment sub-fund is currently lower than budgeted because the Kent County tax increment won t be collected and distributed until February 2007. Statement C Statement of Current Project Expenditures does not show much activity for this fiscal year yet since many of the July and August payments were charged to FY 2006. Ms. Wallace explained that that Statement C includes new footnotes next to certain project budgets to differentiate between project budgets and program budgets and

Downtown Development Authority Minutes September 13, 2006 Page 2 also to distinguish between funding sources. Statement D Summary of Expenditures and Payments for July 1, through August 31, 2006, lists some payments and expenditures for FY 2006, in addition to current fiscal year expenditures. The subtotal of July and August 2006 payments and expenditures is $603,417.09. Combined payments and expenditures during this period is $1,101,764.23. Ms. Wallace recommended approval of Statement D Summary of Expenditures and Payments for July and August 2006. Motion: Mayor George Heartwell, supported by Tom Wesholski, moved to approve Statement D Summary of Expenditures and Payments for July and August 2006 as recommended. Motion carried. 6. Presentation: Results of Accessibility Audit conducted by Disability Advocates Mr. Fowler reported that the DDA awarded a contract for an accessibility audit of downtown Grand Rapids in September 2005 to Disability Advocates of Kent County. The purpose of the audit was to identify existing barriers that limit the accessibility to persons with disabilities. He introduced Dave Bulkowski from Disability Advocates of Kent County. Mr. Bulkowski thanked the DDA for their investment in the audit and the commitment to the removal of the barriers. He introduced Barbara Stoops of Disability Advocates, who gave an executive summary and showed a slide presentation. The following are highlights of the slide presentation of the 2006 Accessibility Survey: Rolled curbs wheelchairs cannot go up (located at DASH parking lots and various other locations): - Wheelchairs may tip over - Significant number of curbs violate ADA - Rolled curbs effectively act as traditional curb Gas Light Village: - No rolled curbs, but no visible detectible warnings/domes - Transition to gutter on same slope as ramp - Safe passage for all Comparison of Curbs - Gaslight Village profile of slope from ramp to gutter complies with ADAAG - Typical Grand Rapids profile of rolled curb violates ADAAG Problems with bricks and curb ramps: - Diagonal curb ramps people with mobility impairments turn while in two traffic lanes, especially at YMCA and Ottawa. They are legal, but dangerous. - Diagonal Curb Ramps & people with low vision locating straight curb segment to determine where to cross - Ramps too steep - bricks are sunken and deteriorated at Monroe and Campau

Downtown Development Authority Minutes September 13, 2006 Page 3 Angled crosswalks - Person with low vision cannot align themselves with curb to cross street - Leave crosswalk and walk into oncoming traffic Other curb ramp problems - Have a curb ramp and a curb - Must roll wheelchair into traffic to proceed in one direction Driveways and Alleys are not maintained Unmarked Barriers - Sidewalk ends how does a person with low vision or blindness know where to go? - Alternate routes not market. Where do people in wheelchairs go? Handicapped Parking - No access aisle - Need access aisle to deploy wheelchair lifts and completely open car doors - DASH Parking Area 1 only has a few spaces with access aisles The BOB Handicapped Parking - Single handicapped parking space in middle of lot, not near pedestrian exit - Nearest pedestrian exit barricaded Bus stop doesn t use width of loading zone - No bus pad at bus stop - At one end of loading zone, rather than utilizing loading zone - The Rapid sign is too low to be spotted from a distance Railroad Crossings - Wheels get stuck beside track if guards not installed Campau Avenue Obstacles - Z s Restaurant was allowed to build a deck onto the sidewalk limiting space for wheelchairs - Deteriorated brick edging - Obstacles i.e. trees/grates, utility poles/gravel, and fire hydrant Mr. Wesholski asked if prevention of the barriers could have been made around the new YMCA at Lake Michigan Drive and Winter Avenue if there was communication prior or during construction. Ms. Stoops answered that communication was made; however, the YMCA decided not want to remove the soils necessary to construct properly designed ramps. She said that she would like all handicap accessibility ramps, entries, etc. to be included in the City s site plan and inspection process. Ms. Stoops noted that downtown is more accessible that the rest of the city. Mayor Heartwell said that the slide presentation was distressing. He said that he was a City Commissioner when the ADA was passed in 1992, and the Commission established an aggressive goal to remove all barriers within nine years with routine construction and as a result of complaints. However, it has been 14 years and the city is far from being compliant. He asked if the Engineering Department has been made aware of this presentation. Mr. Fowler answered no, that it will be presented to various City staff at a workshop in the near future. Mayor Heartwell requested that a presentation be made to the City Commission also.

Downtown Development Authority Minutes September 13, 2006 Page 4 Mr. Fowler reported that the barriers on Campau will be replaced during the reconstruction process this fall. He said that a workshop for City staff will occur soon and staff will report back to DDA with an annual repair priority list. Mr. Mayhue asked if there are ADA clauses in construction projects, and Mayor Heartwell answered that the Engineering Department takes ADA into consideration with all City contracts. Ms. Stoops again stated that all construction projects should include a handicap accessibility inspection. Mr. Bulkowski said that the community is doing an excellent job with handicap accessibility within buildings, but not outside. He thanked the DDA for the opportunity to perform the accessibility audit in downtown Grand Rapids, and said that he enjoyed working with the DDA. He asked the DDA to remain feeling uncomfortable with the results of presentation, so that it may result in correcting the barriers. Mr. Fowler said that Bob Petco from Progressive AE was present at today s meeting and he has been considering eliminating brick bans from the beautification projects, as the bricks are hard to maintain. The Downtown Alliance is proposing to eliminate the brick bans also. Ms. Dunn thanked Mr. Bulkowski and Ms. Stoops for the presentation and raising the DDA s awareness of the barriers that limit the accessibility of downtown to persons with disabilities. 7. Incentive Program Requests 65 Monroe Center NW: Belford Development, LLC requests a $21,000 Areaway Fill grant to assist in the partial fill of the areaway and streetscape improvements at 65 Monroe Center NW along the Ionia Avenue side. Grant proceeds will be applied to the removal of the existing areaway cap, relocation of utilities, partial fill of the areaway, and new streetscape. Total project cost is estimated at $60,000. 125 Ottawa Avenue NW: In May 2006, the DDA approved a $26,250 Streetscape Improvement grant for Ledyard LLC at 125 Ottawa NW. The initial project was to enhance the appearance of the sidewalk by pouring a new concert surface over the existing areaway and adding some decorative elements. The total project cost was estimated to be $75,000. However, when the applicant removed the asphalt covering, they discovered some damage to the existing deck and structural support of the areaway. These repair costs raise the estimated total project cost to $284,000. Ledyard LLC requests a $35,000 grant to assist costs for a new sidewalk, structural support, brick pavers, and planters along Ottawa Avenue.

Downtown Development Authority Minutes September 13, 2006 Page 5 Motion: John Canepa, supported by Michelle VanDyke, moved to approve the DDA Incentive Programs Requests for 65 Monroe Center NW and 125 Ottawa NW as outlined above. Motion carried. 8. Proposed Lease of 331 Winter Avenue NW to the Downtown Alliance Mr. Fowler explained that the DDA Board approved in February 2006 the concept to retain and renovate the existing brick building at the north end of the new DASH 8 parking lot at 331 Winter NW for the purpose of making it available for use by the Downtown Alliance to store their equipment for maintenance and beautification of public areas downtown. He said that Mr. Wendt prepared a 10-year lease between the DDA and the Downtown Alliance. The terms of the proposed lease include for the Alliance to pay rent of $800 per month in the first year, and be responsible for maintenance and utilities. However, after speaking with the Downtown Alliance, they only budgeted $800 a month for rent and utilities combined. The lease may also need to be modified to allow the storage of gasoline. Mr. Fowler requested that the DDA authorize staff to revise the lease to incorporate the above mentioned changes and to authorize the execution of the revised lease with the Downtown Alliance. Mr. Wesholski asked about insurance, and Mr. Fowler answered that the lease includes a section on Insurance and Indemnity mandating liability insurance covering bodily injury and property damages. Motion: Dave Cassard, supported by Tom Wesholski, moved to authorize staff to revise and execute a lease between the DDA and the Downtown Alliance for the property located at 331 Winter NW. Motion carried. 9. Proposed Footing Encroachment and Plaza Easement JW Marriott Hotel Mr. Wendt explained that HP3 LLC, developer of the JW Marriott Hotel, has requested the DDA grant it an encroachment permit for underground footings and an easement for an elevated plaza on adjacent DDA-owned property along the east bank of the Grand River. A resolution has been prepared for the granting of the permit and easement, and the City Commission will be requested to approve a similar resolution. Motion: Michelle VanDyke, supported by Dave Cassard, moved to approve the resolution approving the granting of a Footing Encroachment Permit and an Easement for an elevated plaza to HP3 LLC in connection with the JW Marriott Hotel project. Motion carried. Mayor Heartwell asked if the $100,000 liability insurance is adequate, and Mr. Wendt answered yes, that this is only in reference to the footings.

Downtown Development Authority Minutes September 13, 2006 Page 6 Mr. Mayhue asked if it was appropriate for Bert Crandell, Vice President of Amway Hotel Corporation and Manager of HP3 LLC, to sign the Encroachment Permit. Mr. Wendt explained that Mr. Crandell is signing as an authorized agent, and it is legal. 10. Request for Assistance Grand Rapids Ballet Company Mr. Fowler explained that the Grand Rapids Ballet Company is requesting financial assistance in regards to their renovation and expansion of their facility. The project is a $6.2 million expansion of the former bus garage at 341 Ellsworth SW to include the addition of a 300-seat theater. Scott Kearney, Gordon Schmidt Peirce and Mike Houseman from the Grand Rapids Ballet Company gave a presentation on the proposed renovation and expansion project. The Ballet Company s sales have increased over the last few years, they will be performing 67 times this year in various locations in Michigan and Quebec, and they employ 15 professional dancers. They are requesting funding for Stage 2 of the expansion project, which includes: 1) relocation of a street lighting control box and related utilities at $32,525, 2) relocate a line of power poles by Consumers Energy at $13,165, 3) purchase adjacent parcel of property to the north, which is currently separated by Goodrich Street at $165,000, and 4) street vacation process to make the parcel contiguous to the existing property and construction of a new parking lot at $146,000. Mr. Fowler recommended approval of funding in the amount of $45,680 related to the relocation of a public electrical transformer and series of utility poles that need to be moved before the expansion can occur, and an additional $59,320 to cover costs of City electrical improvements necessitated for the project. However, he recommended against the additional funding requested for the purchase of property for the construction of a new parking lot. He explained that if the DDA approved the full request, then certain approved projects would have to be removed from the DDA budget. Mr. Fowler also recommended that the board consent to the vacation of Goodrich Street, as requested by the Grand Rapids Ballet Company. Motion: Mayor George Heartwell, supported by Dave Cassard, moved to approve $105,000 expenses associated with the relocation of the electrical transformer and utility poles regarding the Grand Rapids Ballet Company renovation, and also to consent to the vacation of Goodrich Street. Motion carried. 11. Request for Assistance Public Museum of Grand Rapids Mr. Fowler explained that in 1993, the DDA agreed to provide funding for the design and construction of a parking ramp to be operated by the Public Museum of Grand Rapids. This ramp has had very little maintenance work performed since it was constructed. He

Downtown Development Authority Minutes September 13, 2006 Page 7 noted that effective July 1, 2006, the Public Museum transitioned from being a City department to a non-profit entity. Greg Krcmarik from the City Engineer s Office explained that per the results of a Conditional Appraisal and Asset Management Plan performed by Walker Parking Consultants (WPC), the recommended repairs are estimated at $300,000 to $325,000. He said that in reviewing WPC s plan for ramp repairs, he recommends the removal of painting, which will result in a cost savings of approximately $100,000. Mr. Krcmarik noted that WPC also provided a Conditional Appraisal and Asset Management Plan for the riverwalk from Pearl Street south to Grand Valley State University. WPC has estimated $96,200 to cover the project costs for repairs in this area. After a short discussion, Mr. Fowler recommended that the DDA Board approve the Public Museum s request for assistance from the Public Museum for parking ramp repairs at a not-to-exceed amount of $200,000, and assistance for the riverwalk repairs at a not-to-exceed amount of $100,000. He noted that funding could be provided from the contingency fund. Motion: John Canepa, supported by Dave Cassard, moved to approve assistance for repairs of the Public Museum s parking ramp at an amount not to exceed $200,000, and also assistance for repairs to the riverwalk from Pearl Street south to Grand Valley State University at an amount not to exceed $100,000. Abstain: Tom Wesholski. Motion carried. Dave Cassard left the meeting at this time. Mr. Wondergem asked when repairs to the riverwalk by the Ford Museum will take place, and Mr. Fowler answered next spring. 12. Executive Director s Report Mr. Fowler explained that Parking Services has noticed some settlement at the north edge of the DASH Parking Lot #7, which has turned into a sink hole with a dangerous void under the pavement. He passed around a photograph of the sink hole. The City Engineer s Department contracted with Materials Testing Consultants (MTC) to investigate the problem, and they have recommended an emergency repair program with a preliminary estimate of $140,000. Repairs would consist of pumping grout into six drilled holes in order to fill the voids beneath the pavement. Mr. Krcmarik said that the void could be 75 feet underground. He said that emergency bids are being solicited from three firms. Parking Services and the Wastewater Treatment Plant are willing to participate in a cost-sharing agreement for the emergency repairs. Motion: Casey Wondergem, supported by Michelle VanDyke, moved to approve assistance for emergency repairs of DASH Parking Lot #7 in the amount of $70,000.

Downtown Development Authority Minutes September 13, 2006 Page 8 After a brief discussion, the Motion was amended to approve assistance for emergency repairs of DASH Parking Lot #7 at 50% of the repair costs, not to exceed $100,000. Motion carried. Mayor Heartwell asked that a better barrier be placed at the sink hole to prevent injury. 13. Other Business Mr. Mayhue said that he saw two DDA members on television during a news story on the downtown riverfront project. He said that he is the Vice Chair of the DDA, as well as a Kent County Commissioner, and he should have been contacted. He voiced his opinion that he does not want to be a token Vice Chair of the DDA, as that would be a waste of time, and he d rather be a DDA member than a token Vice Chair. He said that he prefers to be an active Vice Chair. Mr. Wondergem asked about the status of the proposed movie theatre development of Areas 4 and 5 behind the Arena. Mr. Fowler answered that the DDA had approved exclusive rights for development of Area 4 surface lot with Gershensen Realty in May 2006. The terms of this agreement with Gershensen will expire in October. He believes the developer wants to develop both Areas 4 and 5 together. He will report on the status of this proposed project at the October DDA meeting. Ms. Dunn mentioned that a revised DDA member directory was distributed, and her contact information has been updated. 13. Adjournment The meeting adjourned at 9:59 a.m.

DATE: October 6, 2006 TO: FROM: SUBJECT: Downtown Development Authority Jay Fowler DDA Executive Director Wayfinding Maintenance Engineering Services Attached is a proposal from Williams & Works, to provide engineering services related to the maintenance, repair and updating of the Wayfinding Signs. If accepted by the DDA, Williams & Works would provide needed expertise to design and oversee the implementation of any necessary work related to the ongoing maintenance of the system. Williams & Works has been pre-qualified to provide engineering services under a term contract to the City of Grand Rapids. Their project manager for this project is Jerry J. Powell, who was project manager for design engineering and installation of the Wayfinding system in his previous position. Because of this previous experience, Jerry brings valuable knowledge and continuity to the project. As an initial task, Williams & Works would assist us in selecting a qualified contractor to provide on-going maintenance services. Williams & Works would provide ongoing services necessary to pre-qualify contractors, prepare and issue bid documents, review bids, and recommend award, for a not-to-exceed price of $12,000. Staff recommends acceptance of this proposal and requests authorization to contract with Williams & Works for the services outlined above. In addition, the proposal provides a framework for future maintenance contract oversight to be performed on a time and materials basis utilizing the same terms and rates previously authorized by the City. Staff requests authorization to proceed with such services, if necessary, with total fees for professional services not to exceed $15,000 per fiscal year. Adequate funds are budgeted for this purpose in the non-increment fund budget. Attachments.

DATE: October 6, 2006 TO: FROM: Downtown Development Authority Jay Fowler DDA Executive Director SUBJECT: Reconstruction of Campau Avenue NW Attached is a recommendation from the City Engineer to award a contract to Diversco Construction Company. This project was included in the DDA s commitments to provide public infrastructure improvements adjacent to the new JW Marriott Hotel. The project will be initiated this fall with final completion prior to the opening of the hotel in August 2007. Adequate funds are provided in the priority plan and budget in the tax increment fund. Approval is recommended. Attachments.

DATE: October 5, 2006 TO: FROM: SUBJECT: Jay Fowler, Executive Director Downtown Development Authority Scott Conners, P.E. City Engineer Reconstruction of Campau Avenue from Monroe Avenue to Pearl Street The above-captioned project generally consists of the reconstruction of the street including curb and gutter and catch basins, replacement of watermains and storm sewers, installation of street lighting/telecommunication/electrical ducts, and installation of ornamental street lighting. Sidewalk and streetscape elements of the project will be completed at a later date. Bids were received September 12, 2006 by the City Engineer s Office on behalf of the Downtown Development Authority (DDA) for the above-captioned project. The Consultant s (Fishbeck, Thompson, Carr & Huber, Inc. - FTCH) estimate is $1,143,709. Diversco Construction Company, Inc. (Diversco) submitted a bid of $1,062,112.00 (low discounted bid of $1,009,006.40). Reference the attached Equal Business Opportunity Construction Worksheet regarding the applicable bid discounts for this project. It is recommended that the construction contract for this project be awarded to Diversco in the amount of $1,062,112 with total expenditures not to exceed $1,365,000, and that the Executive Director of the DDA be authorized to execute said contract contingent upon review/approval by the DDA s special counsel. The total expenditure amount as referenced above includes the costs of the construction contract, testing, public information program, Street Lighting/Traffic Safety force account work, City's share of FTCH's design engineering services, construction administration services by FTCH, inspection, incentive, administration, and an approximate twelve percent allowance for contingencies. This project is being financed by the Water System Fund ($400,000), Sewer System Fund ($95,000), and DDA funds ($870,000). The DDA s share of overall project costs is generally for services and work associated with the reconstruction of a portion of the street, installation of street lighting/telecommunication/electrical ducts, and installation of street lighting. Further, it is recommended that staff (City Engineer s Office and the Executive Director of the DDA) be authorized to negotiate/execute any necessary changes in the scope of work, within the total authorized not-to-exceed expenditures, as the project proceeds through construction.

The City Commission at their meeting October 3, 2006 concurred in the award of the contract and authorized its share of costs for the project. SC/RDV/dv cc: Kurt Kimball Eric DeLong Joellen Thompson Pat Bush Darrell VanderKooi Corky Overmyer Randy Fisher Chuck Schroeder t:\cd06\dda\campau Ave 101106 #04092

SUMMARY OF ESTIMATED COSTS for Reconstruction of Campau Avenue from Monroe Avenue to Pearl Street Construction Contract $1,062,112 Testing/Public Information Program 2,500 Street Lighting/Traffic Signs Force Account Work 27,000 FTCH s Construction Administration 8,000 Incentive 30,000 Inspection/Administration 90,078 Sub-Total $1,219,690 Contingencies (12%) 145,310 TOTAL $1,365,000 t:\cd06\dda\campau Ave 101106 #04092

DATE: October 6, 2006 TO: FROM: SUBJECT: Downtown Development Authority Jay Fowler DDA Executive Director Executive Director s Report NEW DASH LOT COMPLETE The new DASH 8 parking lot is now complete except for minor punch list items. The Parking Services Department will operate the facility under the same terms as other DDA-owned parking facilities. The Parking Director reports strong demand for use of the facility, especially from growing institutions on the Michigan Street Hill. The Downtown Alliance maintenance crew has moved into its new home and Fire Department personnel are pleased with the added safety and convenience of their pull-through operations. Staff is working on scheduling an informal open house for later this fall. ITP TO EXERCISE OPTION The Interurban Transit Partnership has notified me of its intention to exercise its option to purchase the DASH 6a parking lot, located south of the Transit Center. An independent appraisal has established the value of the property at $792,000 for 1.4 acres. As partial compensation, ITP has requested a credit of $163,005 against expenses previously identified for expenses to be reimbursed from the transit millage fund. DOWNTOWN ALLIANCE ANNUAL MEETING The Downtown Alliance held its annual meeting on September 20, 2006. The meeting was very well attended, and featured presentations about the Downtown Streetscape Plan and Downtown Marketing Program, both of which were funded in part by the DDA. Similar presentations regarding these projects will be scheduled for upcoming DDA meetings. INFORMATION ITEMS Thank you letter from Labor Heritage Society 36 hours in Grand Rapids (New York Times September 6, 2006) Perpetual Motion: Midwest (Dwell Magazine October 2006) Attachments. JWF:je