DOWNTOWN MANAGEMENT BOARD
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1 DOWNTOWN MANAGEMENT BOARD Quality Services for a Quality Community MEMBERS Luke Allen Hackney, Chair Michael Krueger, Vice Chair James Croom, Treasurer Chanelle Crouch Jen Flood Jeffrey Kusler Mayor Mark Meadows Thomas Muth Ray Walsh MEETING MINUTES March 6, :00 p.m. Court/City Council Conference Room 101 Linden Street, First Floor Staff Liaison Amy Schlusler-Schmitt (517) Claire Peabody (517) Present: Absent: Luke Allen Hackney, Jeffrey Kusler, Ray Walsh, Michael Krueger, Chanelle Crouch, James Croom, Thomas Muth Jen Flood, Mayor Mark Meadows City of East Lansing DEPARTMENT OF PLANNING, BUILDING AND DEVELOPMENT 410 Abbot Road East Lansing, MI (517) Staff Members Present: 1) Welcome and Roll Call Amy Schlusler-Schmitt, Terri Soliday, Thomas Fehrenbach, Caleb Sharrow Chair Hackney opened the meeting at 2:05 p.m. At the taking of the roll, Mayor Meadows and Flood were absent. 2) Public Comment None. 3) Approval of Minutes A) February 6, 2018 Muth moved to approve the minutes of the February 6, 2018 regular board meeting as written; Crouch seconded the motion. Vote: All yeas, motion carried unanimously. B) February 15, 2018 Strategic Priorities Muth moved to approve the minutes of the February 15, 2018 Strategic Priorities meeting as written; Krueger seconded the motion. Vote: All yeas. Motion carried unanimously. 4) Approval of Agenda Schlusler added the Downtown Chili Cook-Off as Item E under New Business. Under Staff Reports, she added St. Patrick s Day Free parking and the Find the Bee marketing campaign related to Center City. Walsh moved to approve the Agenda as amended; Kusler seconded the motion. Vote: All yeas, motion carried unanimously. City of East Lansing Downtown Management Board Minutes (03/06/2018) Page 1 of 7
2 5) Financial Reports A) January 2018 Financial Report Schlusler advised that the sponsorships for the ice skating rink have covered the expenditures. She also noted that they have made all payments for wayfinding signage, in the amount of $1,100 rather than the $1,500 budgeted. She said there is about $1,100 remaining in the $5,000 which they allocated for Center City marketing. Schlusler said it is staff s recommendation that we sell the ice skating rink and shared that the City of Lansing has reached out, interested in learning more about the ice rink. There was consensus among the board members to sell the rink. B) Draft FY 19 Budget Schlusler reviewed the budget. She noted there is an increase in Charges for Services for FY 19 because the Business Relations Committee wants to put out a Holiday Guide. She said sponsorships are for the cocktail soireé and one other activity; i.e. a chili cook-off or Be A Tourist. She explained there is an increase in Salaries and Benefits as in the past the DMB has supported a portion of Amy s salary and the intern, but has not covered all of staff time. Given the current budget cycle and based on the Strategic Priorities meeting and discussions with staff, the recommendation was that we increase the Salaries from $9,000 to $15,750, with the understanding that there be some decrease in staff time. She said now the difference is being made up from the General Fund. She advised that the budget will not be approved until May. Muth said at the Strategic Priorities meeting they discussed lowering sponsorships to festivals that will go on regardless. Hackney said his main concern about the budget is that they are going to lose too much of Schlusler s time and asked if they can contract for more hours. Tom Fehrenbach, Community and Economic Development Administrator, said it is up to City staff to monitor Schlusler s hours. From a budgeting perspective, he said he thinks we can deliver on these events with the staffing resources in this budget. He said if her time goes over, the General Fund will cover it. He stated this budget represents a fair balancing of staff time and the hours the DMB is paying for. The board discussed how to get more staff time for an event. Hackney said at the Strategic Priorities meeting, they discussed changing the $7,500 expenditure for social media. Board members discussed whether the businesses would rather have us spend the money on social media, more marketing, or events. Crouch said while she thinks marketing is important, she felt the better experience people have in the downtown, the more they will come back. She said we need to make the downtown fun. Hackney said at the cocktail soireé they can discuss with business representatives what kinds of events they would like to see. He said at the Strategic Priorities meeting, they also discussed members taking the reins on the social media. Crouch suggested presenting our social media to the businesses to create more cross marketing. Hackney said we should come up with a social media budget, at least $2,000. Kusler suggested sponsoring our own events; i.e., having a 5K run. Crouch suggested a Girls Day Out or event aside from Winter Glow to encourage shopping during the Christmas Season. Board members also discussed what we get for the $6,000 we budget for holiday decorating and ways to incentivize businesses to decorate. Hackney said he would like to revisit the Budget after the Marketing and Business Relations Committees have had their March meetings. City of East Lansing Downtown Management Board Minutes (03/06/2018) Page 2 of 7
3 C) Proposed FY 19 Staff Time This was discussed under the Draft FY 19 Budget. 6) New Business A) Ordinance 1422 Thomas Fehrenbach, Community & Economic Development Administrator, reported that at last Tuesday s meeting City Council forwarded an ordinance which would essentially eliminate the 50/50 requirements. He said restaurants would still require a Special Use Permit. The definition of a restaurant is that it must have 50 seats, 10 menu items, and 50% of the gross floor area must be dedicated for seating and service of food. With the elimination of the 50/50 requirement, 50% of sales would not have to be food related, and a restaurant would not have to report on a quarterly basis. He said Council is holding a public hearing on April 10 and would like feedback from the DMB and DDA. Krueger commented that with the elimination of 50/50, he would think that business licenses will be more saleable. Crouch said unless you are a restaurant like Black Cat or Hopcat, the profit margins on food are so much smaller than those on alcohol. She said she felt that 50/50 does not work because some people do not tell the truth, but felt there is a need for something to be in place. She stated East Lansing is at maximum capacity for college bars, and a lot of people do not come to eat downtown because of this. She said if the goal is to provide more dining options, there has to be a way to encourage that and discourage restaurants from turning into bars. She said we should not require restaurants to stay open until 1 a.m., and noted that it doesn t cost a bar with just a fry kitchen to stay open until 1 a.m. She suggested we could perhaps look at entertainment licenses to encourage more restaurants to locate here and discourage more bars. Fehrenbach said a restaurant still needs an SUP, which is a conditional approval, and Council votes on that. Kusler stated that the 50/50 requirement impacts a free market. Kusler moved to author a letter to City Council voicing our support of Ordinance 1422 to eliminate the 50/50 requirement, and to continue the discussion on how best to attract quality restaurant tenants into the marketplace and explore policies that expand the market demographics and the type of people interested in coming to the downtown for dining experiences. Muth seconded the motion. Vote: All yeas. Motion carried unanimously. B) Printing of Downtown Parking Guide Schlusler said the Marketing Committee reviewed the guide at their last meeting, and staff and the Marketing Committee recommended printing 2,500 copies of the Parking Guide with Media Advantage and have them professionally folded, at a cost of $360. She said this would be charged to the Contract Services/Marketing line item of the budget. Sharrow said he needed to make a few updates to the legend before they are printed. Croom mentioned that Google Maps and Apple Maps need to be updated with the parking garages. Kusler moved to approve spending $360 with Media Advantage to have 2,500 Parking Guides printed and professionally folder; Crouch seconded the motion. Vote: All yeas. Motion carried unanimously. City of East Lansing Downtown Management Board Minutes (03/06/2018) Page 3 of 7
4 C) Printing of Downtown Validation Stickers Schlusler said the businesses that currently validate have outdated We Validate stickers, which they put in their windows. The City s Graphic Designer created a new sticker with the new DMB slogan, and the low bid is $ for 500 static cling stickers from ASAP Printing. Suggestions were made to make our logo bigger, put more space between We and Validate, and insert a horizontal line above our logo. Kusler moved to order 500 We Validate Parking static cling stickers from ASAP Printing for $313.97, incorporating the changes suggested at this meeting. Muth seconded the motion. Vote: All yeas. Motion carried unanimously. D) Be A Tourist in Your Own Town & Estimated Budget Schlusler said if the DMB participates this year in Be A Tourist in Your Own Town, it will be our fourth annual event. This year it is being held on Saturday, June 2. She said it is hosted by GLCVB, but we would agree to serve as a venue. She indicated last year about 400 people attended, and Taylor Taylor peformed. Staff s recommendation would be to again hold it in Ann Street Plaza. She said we would hire two caricaturists, a face painter, have music, and work with Cold Stone Creamery to give out ice cream. She said the total budget would be $1,450, and it would be taken out of Contract Services. Walsh moved to participate in Be A Tourist in Your Own Town and to allocate $1,450 for this event; Kusler seconded the motion. Vote: All yeas. Motion carried unanimously. E) Downtown Chili Cook-Off Schlusler said the intent is to not only host the downtown Chili Cook-Off, but to host a chili eating competition. The Ingham County Health Department said as long as we hire a restaurant and they prepare and serve the food warm, we don t need a special health permit. She said we would hold the Cook-Off from 12 to 3 p.m., and from 3 to 4 p.m. hold a chili eating competition, and possibly have a DJ. She said the proposed date for the Chili Cook-Off will be Saturday, April 21, and she budgeted $1,450 for the event if the DMB covers all the expenses. She said we will try to get sponsors. Kusler moved to spend up to $1,450 for the Downtown Chili Cook-off with the express intent that staff try to obtain sponsorships to cover the event. Crouch said she would like a place for downtown retailers to set up tents to sell their goods, and they discussed closing the street. Fehrenbach commented that you have to have City Council s approval to shut down the road, there is a cost involved, and you have to consider the construction project. Schlusler said she budgeted $500 for the street closure; if they don t close the street, the event would have to stay in Ann Street Plaza. Muth suggested using Fountain Square in addition to Ann Street Plaza and not shutting down the street. He seconded Kusler s motion. Vote: All yeas. Motion carried unanimously. 7) Old Business A) Follow-Up to East Lansing Ice Skating Rink This was discussed previously. City of East Lansing Downtown Management Board Minutes (03/06/2018) Page 4 of 7
5 8) DMB Special Assessment A) Current Special Assessment Rate & Staff Recommendation for 2 Year Special Assessment Schlusler said at the Strategic Priorities meeting, board members asked staff to share the current DMB Special Assessment rates and information regarding the existing assessment on each tax parcel. She included a spreadsheet showing this. She shared that staff determined that the special assessment would be approximately $40,833 for next fiscal year, and that figure takes into account the Park District properties. She advised you cannot assess on a property that is not fully constructed. She advised if we decrease the assessment 1 cent per square foot, it would be $37,952, and if we increase it 1 cent, it would be $51,787. She said per the City Attorney s interpretation, the DMB cannot increase the special assessment without a specific marketing project in mind, and the board must first expend all of the money in their fund balance. She noted that the DMB has not increased the special assessment since it was formed, and has historically renewed the assessment every five years. Walsh noted that after two years there will be new development, and they can consider raising the special assessment then. Walsh moved to renew the special assessment at the current rate for two years as opposed to five years; Croom seconded the motion. Vote: All yeas. Motion carried unanimously. Kusler left at 3:35 p.m. 9) Committee Reports A) Marketing Committee Meeting i. Synopsis of February 21, 2018 meeting ii. Tote Bags to Michigan Historic Preservation Network Schlusler said the MHPN is coming in May to host an event and wanted tote bags to give to the attendees, and they expect about 400 people. She said we will be donating the tote bags we have on hand, and the Marketing Committee voted to spend up to $200 more for 100 additional tote bags. B) Business Relations Committee Meeting i. Downtown Chili Cook-Off This was discussed under New Business. ii. Downtown Cocktail Soireé May 17, 2018 Schlusler reported they are looking into partnering with Beggar s Banquet. iii. Girls Night Out/Holiday Guide This was discussed previously. C) Downtown Maintenance Committee They did not meet. City of East Lansing Downtown Management Board Minutes (03/06/2018) Page 5 of 7
6 D) Parking Update Sharrow said they have been down about 8,000 transactions per month for the last eight months this fiscal year, which equates to about $300 per business day. He said this trend has been happening for the last four years. He reported what is helping is that they are catching up on deferred maintenance, retiring some old debts off the books, and have had some payroll savings by going cashierless. He indicated they have a balanced budget for next fiscal year, and they are not proposing any parking rate increases. The board noted there is an increase in people using Uber, and many students do not drive cars. Fehrenbach suggested having experiences in the downtown to bring more people in. Walsh pointed out that older customers do not want to park in ramps. Sharrow said in his budget he is proposing free parking for the following events Sidewalk Sales, Girl s Night Out, St. Patrick s Day, Pumpkin Walk, and Green Friday/Winter Glow. As the board asked about free parking during St. Patrick s Day, Schlusler showed rough drafts of the St. Patrick s Day Free Parking flyer for March 17 from 10 p.m. to 2 a.m. on Monday. She also showed a flyer from CATA, which will be providing free rides on their trolley from 4 p.m. on the 17 th to 3 a.m. on the 18 th. Sharrow reported that the new Center City garage is estimated to be open by March ) Development Projects Update A) Center City i. Find the Bee Eat for Free Campaign Schlusler shared that they are unveiling the pilot program for restaurants with 4-foot bee cut-outs. She said six businesses will try this for six weeks. She said on Monday mornings the City will share a picture of the Bee mascot on its Facebook page, and people snap their photo with the bee and share it on the DowntownEL Facebook page, their personal Facebook Page, Twitter, or Instagram accounts using #BeeDowntownEL. She shared that once a week a winner will be chosen and receive a $100 gift card to the restaurant, at no cost to the restaurant. ii. Social Media Toolkit Schlusler said staff is finalizing the social media toolkit to provide to businesses. iii. Business Visits by Staff Schlusler said over the last two weeks she and Fehrenbach have gone to several downtown business locations to get input and address concerns about parking and construction. She added that they are also giving weekly construction updates. Target is slated to open by March 1, 2019, with the parking garage being online by then. B) Park District Fehrenbach said the developers will soon be bringing their concept to City Council. Walsh left at 3:52 p.m. City of East Lansing Downtown Management Board Minutes (03/06/2018) Page 6 of 7
7 11) DDA Liaison Report Croom reported that the DDA recommended changes to the Future Land Use Plan in the Comp Plan; specifically that the area between the parking lot north of Dublin Square to the brick building on Abbot and including Abbot Road west to Evergreen go up to M-4 from M-3. He added they also recommended that the triangle bordering Evergreen, Valley Court, Delta and Grand River be M-4, as it is a good location for student housing. 12) Staff Reports Schlusler said board members will see an invitation to the second Downtown Business Huddle being held on March 20 at Charlie Kang s. 13) Written Communications None. 14) Adjourn There being no further business, Muth moved to adjourn the meeting at 3:54 p.m.; Crouch seconded the motion. Vote: All yeas. Motion carried unanimously. City of East Lansing Downtown Management Board Minutes (03/06/2018) Page 7 of 7
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