REGULAR MEETING OF THE MIDLAND CORRIDOR IMPROVEMENT AUTHORITY,

TO TAKE PLACE ON WEDNESDAY, OCTOBER 15, 2008, 3:00 P.M.

COUNCIL CHAMBERS, CITY HALL, MIDLAND, MICHIGAN

 

MEMBERS PRESENT:        Clinton Struthers, Gregory Adkins, David Ginis, Clifford Miles, Joe Kozuch and Jerry Deming

MEMBERS ABSENT:      Jon Lynch, City Manager

STAFF PRESENT:           Keith Baker, Planning Director, and Cheri King, Community Development Specialist, Heidi Saidizand, Chamber of Commerce and 1 other

Election of Officers

Mr. Struthers nominated David Ginis for Chairman.  Motion was seconded by Mr. Deming.  Mr. Miles moved nominations be closed and a unanimous ballot be cast for Mr. Ginis.  Motion passed unanimously.

Mr. Deming nominated Greg Adkins for Vice Chairman, supported by Mr. Struthers.  Motion passed unanimously.

Establishment of 2009 Meeting Schedule

Motion by Deming, supported by Struthers to adopt the 2009 meeting schedule as presented.   The third Wednesday afternoon of the month at 3:00 p.m. works for all members.  The remaining 2008 meeting dates will be Wednesday, November 19th and Wednesday, December 17th.  Motion passed unanimously.

Approval of the Minutes

This is the inaugural meeting so there are no minutes to approve.

Public Comments (unrelated to items on the agenda)

None

Review of Draft Rules of Procedure

Mr. Ginis stated the by-laws look complete to him.  He does not see anything we need to add at this time.  Mr. Baker stated the proposed by-laws have been reviewed by the City Attorney.  Mr. Miles had a question on Article 4 Section 2, which refers to the legal council being the City Attorney.  By default, the City Attorney would provide legal services unless the Authority desired to hire their own legal representation.  It is also written as a “may” and not as a “shall”. 

Mr. Ginis asked about if anyone from the board needed legal representation in relation to their capacity on the Authority.  Mr. Baker stated that they could go to the City Attorney for advice in that case.

Motion by Kozuch, supported by Miles, to approve the by-laws as presented.  Motion passed unanimously.

Corridor Improvement Authority Act Overview

Heidi Saidizand, with the Chamber of Commerce, made an informative presentation about the Corridor Improvement Authority.

Public Act 280 of 2005, the Corridor Improvement Authority Act, is the authorizing legislation.  This act is designed to correct and prevent deterioration in business districts, encourage historic preservation, promote economic growth, and authorize the use of Tax Increment Financing. 

The Corridor Improvement Authority, by the Act, is empowered to:

·         Prepare an analysis of economic changes taking place in the development area,

·         Plan and propose the construction, renovation, repair, remodeling, rehabilitation, restoration, preservation, or reconstruction of a public facility or existing building which aids in the economic growth of the development area,

·         Develop long-range plans to halt the deterioration of property values and to promote economic growth in the development area,

·         Implement any plan of development in the development area necessary to achieve the purposes of the Act, and

·         Acquire and construct public facilities, including streets, plazas, pedestrian malls, street furniture, beautification, trails, sidewalks, lighting, traffic flow modifications, parks, parking facilities, recreational facilities, rights of way, waterways, bridges, lakes, ponds, canals, utility lines, pipes, or buildings including dedicated access routes to be used by the public.

The development area shall only be established in a municipality.  It must have been used as residential or commercial property for the preceding 30 years and have 10 contiguous parcels or 5 contiguous acres.  The area must be served by municipal water and sewer.  At least half of the existing ground floor space must be classified as commercial or zoned for mixed use, and be adjacent to a road classified as an arterial or collector street.

The Corridor Improvement Authority is similar to a Downtown Development Authority.  It is under the supervision and control of a Board of Directors consisting of the chief executive officer of the municipality (City Manager) or his or her assignee and not less than five, or more than nine, members.  Members are nominated by the City Manager with appointments being subject to City Council approval.  A majority of the members shall be persons having an ownership or business interest in property located in the development area.  One member shall be a resident (or live within one-half mile) of the development area.  The Board of Directors serves as an advisory committee to the City Council.

One of the primary functions of the Board is to prepare a development plan which must contain:

·         the location and extent of existing streets and other public facilities,

·         a description of existing improvements in the development area to be demolished, repaired, or altered,

·         the location, extent, character, and estimated cost of the improvements contemplated for the development area,

·         a statement of the construction or stages of construction planned, and the estimated time of completion,

·         an estimate of the cost of the development, a statement of the proposed method of financing the development, and the ability of the authority to arrange financing, and

·         a schedule to periodically evaluate the effectiveness of the development plan.

The Authority may finance its activities through:

·         Public and private donations

·         Special assessments (PSD’s, BID’s, SARA)

·         Revenue bonds

·         Tax increment financing (TIF)

·         The levy of up to an additional two (2) mills

A public hearing and approval by the City Council is required before an Authority may implement a proposed development plan or financing plan.  Any debt issue must likewise receive City Council approval.

Tax increment financing works by capturing any additional tax revenue that results from new development in a particular district and from the increase in property values in the district.  Public improvements are the impetus for new private development.  Additional private investment creates the incremental revenue.  Approval of a TIF plan does not authorize the Authority or the city to collect more taxes than would be otherwise possible.  It is simply the case that as the incremental tax revenues grow, they are captured for purposes of the development area for the period of the TIF plan.

The Boundaries of the Corridor Improvement Authority of the City of Midland follow Saginaw Road starting north of Ashman Circle at Manor Drive, continuing south through the Circle District to Patrick Road.  It also includes Washington Avenue from Cambridge south to Patrick Road.  This area consists of 200 parcels, covering approximately 200 acres, and includes 225 businesses.

New Business

Discussion was held about the name of the Authority.  They have been using the title of “Center City Initiative” and have a logo to go along with it.  Mr. Baker stated the Authority was created by City Council with the name of the “Midland Corridor Improvement Authority”.  In order to change this name, they would have to approach City Council.  Mr. Miles suggested the Center City Initiative and the Circle Business Association be advisory groups to the Corridor Improvement Authority.  Mr. Adkins stated there are several sub-committees formed that have been working on issues in the corridor.  These could also be advisory committees to the Authority. 

Mr. Struthers asked what groups currently exist in this area.  Mr. Ginis stated that, to his knowledge, it is just the circle group that is actively working in this area.  Mr. Ginis feels the Corridor Improvement Authority should be an advisory board to the Circle Business Group.  Mr. Deming asked that, now that this board represents the city, how does this correlate with the other business groups in this area?  Mr. Baker stated that they have the opportunity to establish committees and to prepare a development plan to guide some of the activities that will occur in the area.  The committees created under the Center City Initiative could be assimilated into the Corridor Improvement Authority.

Mr. Ginis stated that perhaps they should wait and see what happens with this Authority and how the businesses respond and relate within the Authority.  Activities that the Downtown Development Authority sponsors are totally separate from those presented by the Midland Downtown Business Association.   Mr. Struthers thinks they need to consult the business owners in the central business district.  Mr. Miles suggested they also speak with the Downtown Development Authority to see how their operations work, and perhaps how they could move forward.

Mr. Baker outlined plans for the agendas for the next couple of months.  He would like to discuss the Ashman Circle Plan that was adopted and how the DDA got started.  He would also like to describe what the vision is for the Authority and how they would like to move forward from this point.

Mr. Adkins asked if they could consult other districts and see what the details of their plans are.  Mr. Kozuch stated they did some of that when the Center City Coalition got started.  They have already done all that work and it would be a great place for this Authority to start.  Heidi stated that the PPS group held a couple of sessions that were facilitated and she has the results of these sessions.  She does not know how far down Saginaw Road this study went.   Mr. Ginis stated he would like to see that study and see how far this study went.  It is difficult to keep the names of this Authority and the other existing committees separate and avoid confusion of the business owners in this area.  Mr. Baker stated he will make that a presentation at a future meeting.  There was a detailed presentation by Buxton following the Chamber meeting yesterday and they had significant information about the circle area, including what businesses they would like to bring to this area and how they see this area moving forward.  Mr. Baker stated we just received the final report yesterday.  This information will be made available to all the boards on the city’s website.

Old Business

None

Communications

None

Report of the Chairperson

None

Report of the Staff

Keith Baker stated he will be their staff liaison with the City of Midland.  Heidi will also provide assistance through the Chamber of Commerce.  Mr. Adkins wanted to recognize Heidi for her work in getting this board formed and her activities in moving forward with the creation of this Authority.  Committee members are excited about moving forward with these endeavors. 

Adjournment

As there was no further business, the meeting adjourned at 3:50 p.m.

Respectfully submitted,

 

Keith Baker, AICP

Director of Planning & Community Development

Secretary

 

 

MINUTES ARE NOT FINAL UNTIL APPROVED

BY THE CORRIDOR IMPROVEMENT AUTHORITY