Website: www.mt-pleasant.org

All interested persons may attend and participate. Persons with disabilities who need assistance to participate may call the human resources office at 779-5314. A 48-hour advance notice is necessary for accommodation.

Hearing or speech impaired individuals may contact the city via the Michigan Relay Service by dialing 7-1-1.

TAX INCREMENT FIANANCE AUTHORITY February 5, 2020 4:00 PM AT CITY HALL (CONFERENCE ROOM E - DOWNSTAIRS) TIFA Members: R. Blizzard 12/31/21 M. McAvoy 12/31/20 S. Christensen 12/31/22 R. Swindlehurst, Chair 12/31/22 Vacant 12/31/20 B. Wieferich, Vice Chair 12/31/22 J. Horton 12/31/22 M. Sponseller Staff Liaison

I. CALL TO ORDER

II. ROLL CALL AND INTRODUCTIONS

III. CHANGES/ADDITIONS TO

AGENDA IV. MINUTES

a. November 2019 Minutes

V. RECEIPT OF COMMUNICATION a. February 2020 Downtown

Directors Report b. Update on 410 West Broadway

VI. PUBLIC COMMENT

VII. OLD BUSINESS a. Business Incentives

VIII. NEW BUSINESS

a. 2020 Meeting Schedule IX. OTHER/ADDITIONS TO THE

AGENDA ADJOURNMENT

Date: February 3, 2020

To: TIFA Board

From: Michelle Sponseller, Downtown Development Director

Re: February 2020 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 November 2019 TIFA meeting minutes. Requested Motion:

• Motion to accept the minutes as presented.

V. RECEIPT OF COMMUNICATION A.) DOWNTOWN DIRECTORS REPORT Downtown Directors report covers description of communication and background information on agenda items.

• No action is required. V. RECEIPT OF COMMUNICATION B.) UPDATE ON 410 DEVELOPMENT PROJECT Economic Development Director Bill Mrdeza will provide an update on the project.

• No action is required. VI. PUBLIC COMMENT VII. OLD BUSINESS A.) BUSINESS INCENTIVES Continuation of the discussion held in November regarding the City Commission’s request to revisit the business incentives allocations over 2020 and 2021. Based on the work session discussion on November 11 the following is a summary of the direction the City Commissioners provided back to the TIFA regarding the recommendation for the use of the $80,000 for business incentives for downtown. Request TIFA board for a revised recommendation which addresses the following:

• Willing to consider spending some funds on marketing, but $80,000 plus the allocation of $16,170 was too large of an expenditure in one year for marketing;

• Willing to extend the deadline for use of the $80,000 allocation past 12/31/2020 to allow for effective use of the funds;

• If recommendation includes marketing of individual businesses, would prefer to have the business provide some type of contribution/matching toward the cost;

• Need more details on the “measurement” at the end of the advertising/marketing to be able to determine the actual impact/return from the use of the funds;

• Ensure that the recommendation addresses in a combined way both the $16,170 previously allocated for marketing as well as the additional funds being recommended for marketing in 2020.

Attached is to the packet are:

• Memo and recap from the November 11 work session; • Spreadsheet of marketing allocations and recommendations by staff to facilitate spreading the

marketing funds over two years; • Results of the 10+10+10 review.

Since there is not adequate time for the TIFA board to make a revised recommendation and the City Commission to discuss it before the approval of the budget, the proposed 2020 budget will include a set aside of both the $80,000 and the $16,170 in the assigned fund balance. As a revised plan/recommendation is approved by the CC early next year, a budget amendment will necessary to specifically allocate the funds for expenditure. TIFA Requested Motions: Motion to recommend revised marketing options and request staff present it to the city commission for approval to spend in 2020-2021.

VIII. NEW BUSINESS A.) 2020 MEETING SCHEDULE Meeting remain on the fourth Monday of the month with three exceptions due to holiday. Changes due to holidays is denoted with *. February 24 March 23 April 27 May 18* (Memorial Day) June 22 July 27 August 24 September 28 October 26 November 16* (Thanksgiving) December 21* (Christmas/New Year’s Eve) TIFA Requested Motions: Motion to approve the 2020 meeting schedule as presented.

IX. OTHER/ADDITIONS TO THE AGENDA X. ADJOURNMENT

Website: www.mt-pleasant.org Michigan Relay Center for Speech & Hearing Impaired: 1-800-649-3777

November 25, 2019 MINUTES – TAX INCREMENT FINANCE AUTHORITY (TIFA) MEMBERS PRESENT R. Blizzard P 12/31/2021 M. McAvoy EA 12/31/2019 S. Christensen A 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 EA 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 8:33am II.) ROLL CALL AND INTRODUCTIONS Board member roll listed above with attendance. III.) CHANGES/ADDITIONS TO AGENDA Motion to add parking lot #10 permits to agenda. M = Wieferich S = Blizzard Motion approved IV.) MINUTES Motion to approve the regular November 2019 minutes with change to meeting chair. M = Blizzard S = Swindlehurst Motion approved V.) RECEIPT OF COMMUNICATION a.) Downtown Directors Report Receipt of November Downtown Development Directors report. No action taken. V.) RECEIPT OF COMMUNICATION b.) Update on 410 West Broadway Development Bill Mrdeza provided an update on the project. No action taken. V.) RECEIPT OF COMMUNICATION c.) PA 57 Informational Update informational Update presented as required by the State of Michigan Treasury Department pertaining to the recodified Tax Increment Finance Authority Act 57 of 2018. Two informational meetings must be provided each calendar year however, no action is necessary. Please note that all information provided can be found on the City’s website at: http://www.mt-pleasant.org/boards_and_commissions/tifa.asp VI.) PUBLIC COMMENT No public comments.

VII.) OLD BUSINESS a.) Economic Incentives Discussion Preliminary conversations held on City Commission revision to TIFA business incentives proposal based on the November 11, 2019 work session. Based on the work session discussion on November 11 the following is a summary of the direction the City Commissioners provided back to the TIFA regarding the recommendation for the use of the $80,000 for business incentives for downtown. Request TIFA board for a revised recommendation which addresses the following:

• Willing to consider spending some funds on marketing, but $80,000 plus the allocation of $16,170 was too large of an expenditure in one year for marketing;

• Willing to extend the deadline for use of the $80,000 allocation past 12/31/2020 to allow for effective use of the funds;

• If recommendation includes marketing of individual businesses, would prefer to have the business provide some type of contribution/matching toward the cost;

• Need more details on the “measurement” at the end of the advertising/marketing to be able to determine the actual impact/return from the use of the funds;

• Ensure that the recommendation addresses in a combined way both the $16,170 previously allocated for marketing as well as the additional funds being recommended for marketing in 2020.

VIII.) NEW BUSINESS a.) None Motion to cancel the December 23 TIFA meeting due to the Christmas holiday. M = Blizzard S = Joseph Motion approved IX.) OTHER/ADDITIONS TO AGENDA

a.) Lot #10 Permits Discussion held on the decision to change parking lot#10 into a permit lot. No action taken. XI.) ADJOURNMENT Meeting adjourned 9:35am.

TIFA Marketing Breakdown

Annual

Expenditure 2020 2021

$80,000

Original Plan

Billboard* $5,000 $5,000 $5,000 $10,000

*Billboard will provide a matching opportunity

for businesses. 1/2 will remain general

downtown district message, the other 1/2 will

be designated for specific businesses on a first

come, first serve basis.

Website / Social Media Ads $3,750 $3,750 $7,500

Website Hosting and Updates $1,500

Instagram $1,125

Facebook $1,125

Radio $18,250 $18,250 $36,500

WCMU (89.5) $6,000

WMHW (91.5 and 101.1) $2,250

WUPS (98.5) $0

WCFX (95.3) $5,000

WCZY (104.3 and 92.3) $5,000

As WCMU is part of the $16,000 marketing

that will need to be absorbed we'll need to

review which stations to select. Due to this I

recommend eliminating WUPS.

Television $0 $0 $0 $0

Local (9 &10)

Cable (Spectrum/Charter)

Due to splitting funds over two years I

recommend we eliminate marketing with

local or cable and utilizing the funds for

WCMU due to stations demographics and

reach.

Internet Radio $5,000 $5,000 $5,000 $10,000

Pandora or Spotify

Minimum buy for either is $5,000 so

decision will need to be made on which

station to select.

Restaurant Week $3,000 $3,000 $3,000 $6,000

Other marketing ideas: $5,000 $5,000 $5,000 $10,000

Brochure, map, etc.

Totals $40,000 $40,000 $40,000 $80,000

TO: Nancy Ridley, City Manager FROM: Michelle Sponseller, Downtown Development Director CC: William Mrdeza, Director of Community Services and Economic Development DATE: January 9, 2020 SUBJECT: Downtown 10+10+10 Review One of the 2019 goals is to complete a review of downtown using a method called a 10+10+10 review which shows the critical mass of specialty retailers, activity based businesses, food establishments and businesses open after 6:00pm and then identify strategies to make progress toward the desired metric. BACKGROUND Roger Brooks has assisted nearly 2,000 communities with their branding, tourism, downtown development and marketing efforts during his career, which spans more than 35 years. Founder of award-winning Roger Brooks International, Inc., and the Destination Development Association, Roger is author of the books "Your Town: A Destination—The 25 Immutable Rules of Successful Tourism," and the upcoming book "The 20 Ingredients of an Outstanding Downtown," both of which highlight lessons learned, boots on the ground experience, and years of extensive research. Destination Development Assoc. developed a list of criteria that included nearly 80 items including store hours, parking limits, business mix, wayfinding signage and marketing programs. They then surveyed 400 successful downtowns and downtown districts (big and small) throughout the U.S., Canada, and Western Europe. Using the 80-item list they found the 20 most common indicators that led to their success. As the 10+10+10 benchmark is #3 on the list of 20 indicators of a successful downtown, staff believes having the complete list to see how the results of the 10+10+10 benchmark is part of the bigger overall picture of our downtown business climate and where we, along with the businesses and property owners, should focus our attention, would be helpful. The full list of 20 indicators appears in the attachment to this memo. At the September 9, 2019 work session consensus among city commissioners was to amend the 10+10+10 boundary so it ends north at Main and Lincoln and to add in non-retail activity-based businesses such as yoga and fitness studios and salons. The 10+10+10 review has been updated with these changes on the following pages and related map. Additionally, staff has provided next steps and recommendations for the City Commission to consider. WHAT IS THE 10+10+10 REVIEW? The concept of 10+10+10 is based on grouping similar destination-type businesses together to create the "critical mass" in a pedestrian-friendly setting, specifically in three lineal blocks. These businesses are ones visitors will go out of their way to drive 30+ miles to experience. This will attract visitors as well as locals, and make it worth their while to stop and shop in our downtown. People are drawn to the critical mass - the opportunity to have multiple choices, multiple experiences, all in a convenient and attractive setting.

10+10+10 CATEGORIES

1. 10 Food Establishments • Examples: soda fountain, coffee shop, bistro, café, sit-down restaurant, wine store,

deli, confectionary. 2. 10 Destination Retail Stores or Activity-Based Businesses

• Examples: galleries, antiques, collectibles, books, clothing, home accents, outfitters, brand-specific retail, garden specialties, kitchen stores, salons, fitness-based businesses, etc.

3. 10 Places Open After 6:00pm • Entertainment, theatre (movies and performing arts), bars and bistros, specialty

shops, activity-based businesses, salons, dining, open air markets, etc. For this review, retail is defined as “a business in which a majority of the floor space is dedicated to the display of products available for sale on the premises” and restaurant, as compared to bar or tavern, is defined as “a place where food is cooked, prepared, provided, or served for human consumption where sales of such food constitutes greater than 50% of gross receipts during any 90-day period.” The downtown TIFA district is approximately 20 blocks, although not evenly spaced or sized as you can see by the attached map. 10+10+10 RESULTS FOR MT. PLEASANT’S DOWNTOWN Food Establishments 13 food establishments total 9 food establishments open after 6:00pm*

• Brass Café* • C Prime* • Dog Central* • Downtown Soda Shoppe • Jimmy John’s* • Max and Emily’s Eatery* • Midori Sushi Restaurant*

• Mountain Town Station* • Pisanello’s Pizza* • Pleasant City Coffee • Ponder Coffee • Stan’s Restaurant • Vin Trofeo’s*

Specialty Retailers and Activity Businesses 29 total specialty retailers and/or activity businesses 20 specialty retailers and/or activity businesses open after 6:00pm*

• Art Reach of Mid Michigan • Blue in the Face* • Consano* • Curtiss Hardware • Downstairs Salon and

Boutique* • Experience Hair Design* • Fusion Fitness* • Gray’s Furniture and

Boutique • Green Tree Grocery Co-op*

• Hall of Heroes • Headliners Salon* • Le Fleur Boutique • Level 7 Salon* • Main Frame Gallery • MJ Murphy Beauty College • Motorless Motion* • Norm’s Flowers / Chasing Fireflies • Off-Broadway Studio of Performing

Arts* • Painted Turtle*

• Pure Vitality Juice and Spa* • Red Bloom Yoga* • Salon 110* • Salon Blu Day Spa and Boutique* • Scott Harris Salon* • Total Eclipse Salon*

• Trillium • Upper Cut Salon* • Water Works Salon, Spa and

Academy* • Yoga on Main*

Businesses Open After 6:00pm Total Businesses Open After 6:00pm = 37 Bars = 6 Restaurants = 9 Specialty Retailers and/or Activity Businesses = 20 Other = 2*

• Bird Bar and Grill • Blackstone • Blue Gator • Blue in the Face • Brass Café • Broadway Theatre* • Consano • C Prime • Dog Central • Downstairs Salon and

Boutique • Encore Nightclub • Experience Hair Design • Fusion Fitness • Green Tree Grocery Co-op • Headliners Salon • Ignite Donuts* • Jimmy John’s • Level 7 Salon • Marty’s Bar • Max and Emily’s Eatery

• Midori Sushi Restaurant • Motorless Motion • Mountain Town Station • Off-Broadway Studio of

Performing Arts • Painted Turtle • Pisanello’s Pizza • Pure Vitality Juice and Spa • Red Bloom Yoga • Rubble’s Bar • Salon 110 • Salon Blu Day Spa and

Boutique • Scott Harris Salon • Total Eclipse Salon • Upper Cut Salon • Vin Trofeo’s • Water Works Salon, Spa

and Academy • Yoga on Main

10+10+10 Review Results Although we have a good foundation in each of the 10+10+10 categories in the core of downtown, near the intersection of Main and Broadway, there is room to build and grow to reach a critical mass of specialty retailers and activity-based businesses and businesses open after 6:00pm. Additionally, the results also show that the farther away from the intersection of Main and Broadway the number of 10+10+10 businesses drop off in even greater numbers as seen on the map. Emerging Trends In recent years an emerging trend has appeared in downtowns, that of a business-within-a business. These small auxiliary business provide a diversified retail product base, thus drawing in new customers to

provide exposure to the to the core business. This also provides a start-up location for retail that can otherwise be unobtainable through traditional financing methods and risk to the business owners. Examples are: Salon Blu and Boutique, Gray’s Furniture and Boutique, Downstairs Salon and Boutique, and Norm’s Flower Petal adding children’s clothing via Chasing Fireflies in their location. Additionally, we are home to a few small businesses who have expanded their initial offerings in creative methods, staying on top of or at the front of new trends. Examples of these are:

• Water Works Salon, Spa and Academy – developed, manufactures and sells a line of hair care products under the Water Works label.

• Ponder Coffee – roasts and packages coffee for both retail and wholesale.

• Art Reach of Mid Michigan – has expanded into make and take art classes.

Attached is the map of the 10+10+10 data which visually represents the information proved above in this memo. Next Steps / Recommendations

• Develop and/or grow incentives, resources and relationships to build on the current foundation of businesses by increasing small locally-owned retail and activity-based businesses and restaurants to position downtown as a regional destination for both daytime and evening business pursuits. Suggested additions to the city’s current economic development offerings:

o Rent subsidy program o TIFA business incentives

• Conduct annual review of 10+10+10 metrics to track and make necessary changes to economic development offerings to assist the business community as promptly as possible.

Information Accuracy Disclaimer - The materials and information contained on or obtained from the city of MtPleasant GIS maps, are distributed and transmitted “as is” without warranties of any kind, either expressed or implied, including without limitations,warranties of title or implied warranties of merchantability or fitness for a particular purpose. Information on these GIS maps is provided without any representation of any kind as to accuracy and should be verified by the user. The City of MtPleasant is notresponsible for any special, indirect, incidental or consequential damages that may arise from the use of, or the inability to use, the GIS maps whether they are provided by the city, or a third party

Parcels

Food (13)

Food Establishments Open After 6pm (9)

Bars/Nightclubs Open After 6pm (6)

Specialty Retail/Activity Based Buisnesses (29)

Specialty Retail Open After 6pm (20)

Other Open After 6pm (2)

TIFA Boundary

Legend

10 + 10 + 10 ReviewCity of Mt. Pleasant