SPECIAL MEETING OF THE WEST BRANCH CITY COUNCIL HELD IN THE COUNCIL CHAMBER OF CITY HALL, 121 NORTH FOURTH STREET, MONDAY, JANUARY 27, 2003

Mayor Pro-Tem Russell Jackson called the meeting to order at 11:05 a.m.

Present: Mayor Pro-Tem Russell Jackson, Council Members Gregory Clark, William Ehinger, Kim Ervans, Paul Frechette

Absent: Mayor Todd Thompson and Council Member Chad Lucas

Others present: City Manager Patrick McGinnis, Clerk/Treasurer Jane Tennant, Police Chief Rodger Williams, DDA Chairperson Deb Westcott, DDA Member Sandy Rabidue, DDA Member Cathy Zimmerman, Merchant Richard Hamilton, County Commissioner David Wolfe, County Equalization Director John Awrey, County Treasurer Maggie Robinson, County Commissioner Bev Scott, DDA Member Patricia McLaren, County Commissioner Rose Walsh

All stood for the Pledge of Allegiance.

Manager McGinnis noted that the purpose of the meeting is to receive questions and comments on how the proposed capture of tax increments in the downtown district might affect the financial condition of the City and the County. He stated that the City and County are the only taxing authorities that are affected by this proposed plan.

Maggie Robinson noted that the Ogemaw County Budget and Finance Committee was present (Bev Scott, David Wolfe, and Rose Walsh). She noted that the new plan is proposed to run from 2003 through 2017. Ms. Robinson asked about the function of the Perpetual Care Fund. Manager McGinnis stated that these funds are used to maintain the existing streetscape. Ms. Westcott stated that these funds will continue to maintain and replace the lighting, benches, bricks, and tree guards as needed. Ms. Robinson asked for the maintenance budget. Manager McGinnis stated the current year is $500,000 and prior to that it was approximately $100,000. He noted that this varies depending on replacement need in the district. Ms. Robinson asked if she could receive an expense report for the past 5 to 10 years.

Ms. Robinson asked what the proposed project entailed. Manager McGinnis referred to the plan that was distributed to those present. John Awrey verified that there was no expansion to the district and the project area would be about one block north and south of Houghton Avenue from Second St. to Fourth St. Manager McGinnis stated that some of the area slated for improvement is not in the TIFA area and funds for these improvements would come from other sources. He stated this is a 1.2 million dollar project, plus, with half of the money coming from other sources. He further stated that the parking lots are not in the district but are surrounded by property in the district. Mr. Awrey voiced his concern about extending the project outside the DDA district and suggested an accounting of the money to be spent within the district and money to be spent outside of the district. Manager McGinnis stated that some improvements outside the district that directly serves the property within the district would be funded with captured money. Mr. Awrey stated he had reservations about this idea and he stated that the project costs outside the district boundaries should not be paid by the TIFA capture. Manager McGinnis stated the TIFA dollars would not be spent outside of the district if they do not meet the development plan. Mr. Awrey asked for a breakdown of the project showing what improvements would be made in the district and what improvements would be made outside of the district and the cost analysis.

Maggie Robinson stated that the County was looking for the original capture to end so they could realize an increase in revenue. She further stated her recommendation to the Budget and Finance Committee will not be favorable and asked if the DDA had examined other areas of funding. Deb Westcott stated the DDA is looking at a big project because of improvements to the infrastructure. She further stated it is important to keep our downtown vital and take care of the merchants. She also stated that this project is at the beginning stages and other revenues are yet to be examined. John Awrey noted that the DDA is a taxing authority and suggested offsetting these improvements with a millage within the DDA district. He further noted that a 3.5 levy would bring in what the DDA would capture from the County.

Maggie Robinson asked what the timeline was for this project. Manager McGinnis stated that first the Council needs to pass an Ordinance, the engineering needs to be done, the bond counsel needs to be notified, grants need to be researched; so all in all 2004 would be the earliest the project would start.

Ms. Robinson asked if the Council would come to their decision on the meeting scheduled for February 3, 2003. Manager McGinnis stated that the Council could introduce the Ordinance at that time and adopt it two weeks later. Council Member Clark stated he needs more information before he could make a decision. Deb Westcott stated the DDA is still gathering information and they need to discuss the funding options with the merchants. John Awrey noted that a combination of funding sources might reduce the burden on everyone.

Manager McGinnis noted that the DDA is currently levying a millage to help with the funding of events in the downtown. He stated that the DDA received a grant that allowed them to purchase the IGA and they are working on a grant for other improvements. He further stated that they are looking at improving the sidewalks and streets in this three-block area. He also noted that the DDA has some good positive investments in the downtown and if they can come back to the slate and make these improvements it keeps the downtown active and the buildings filled. Council Member Jackson stated that the investments the DDA makes in the downtown keeps West Branch from looking like a slum.

Motion by Clark, second by Jackson, to adjourn at 11:45 a.m.