City of Wyandotte

CITY OF WYANDOTTE

DOWNTOWN DEVELOPMENT AUTHORITY

225th Meeting – December 12, 2005

Board Members Present:Others Present:Absent:

Sam DaranyDoug Melzer

Greg Gilbert James Arens

Bob GroatRonald Mucha

Robert HannaNico Schultz

Doris MichaelLarry Tavernier

Gib Rose Richard Patrick

Patt SlackAlvin Fritz

Norm WalkerJade Considine

Mayor James DeSanaLisa Hooper

Greg Gilbert called the meeting of the Board of Directors of the DDA to order on December 12, 2005 at 5:30 PM at City Hall 3131 Biddle Avenue, Wyandotte, Michigan.

APPROVAL OF AGENDA

Lisa Hooper added this in case there were things that needed to be addressed it could be moved up on the agenda or added to the agenda. G. Gilbert added the Appointment of the Oversight Committee and Amendment to the Bylaws. Motion by Bob Groat, seconded by Robert Hanna to approve the agenda with the additions. All in favor, motion carried.

Motion by Doris Michael, seconded by Gib Rose, to approve the minutes of the 224th meeting, November 14, 2005, of the Downtown Development Authority, with the amendment that 6 people were to attend the Art of Cool Conference. All in favor, motion carried.

CITIZEN PARTICIPATION

Issac Kremer thanked the DDA for the opportunity to attend the Art of Cool Conference. He feels a great team has been put together with Lisa Hooper, Joe Voszatka and Jody Chamsulome. Throughout the state there is a movement of Arts, Culture and Economic Development and he feels Wyandotte is poised for this. State support for design and tax credits are available. Main Street is a very important part to promote the downtown. He also hopes to bring people to Wyandotte that support these efforts in the near future.

REPORTS

None

COMMUNITCATIONS

11/22/05 Mayor to Council RE: Subject of Condemnation

11/22/05 William Griggs to Mark Kowalewski RE: Resolution Review of properties for purchase and which are required to be reviewed by City Council

Staff Report

Proposed DDA Legislation

Main Street Application approval

Motion by D. Michael, seconded by G. Rose, to receive the communications and place on file.

PROPOSED WATERFRONT DEVELOPMENT

Joe Voszatka gave an overview of the proposed process and the next steps. Currently at the point where the concept plan is presented to the DDA, and then to Mayor and Council for approval. If it is approved it will then come back to the DDA, Architectural Review, Planning Commission and maybe the Brownfield Board. It may be 1 ½ years before getting to the Bank One Project. So far the Committee has reviewed the qualifications of Morningside and now the process is to go property by property starting with the parking lot between Oak and Elm and the river. Next property will be Bank One. Goal is to work quickly on this project to move forward. If the Board likes the concept need to follow the resolution with the understand there will be a financial contribution from the DDA. Currently working on what the contribution will be. It will depend on the Phase I & II environmental studies and what is eligible. The site is 80% DDA and 20% in the TIFA so the project will also require their approval. Specifics are: Goal is to preserve as many public parking spaces, green belt and parking in front of the river and keep the traffic 2-way. The location is on Elm and will take approximately 1/3 of the parking lot. There will be a loss of approximately 40 parking spaces. The 1st and 2nd floors will be resident parking with 7 floors of condos. 84 units, 12 per floor at 1200 sq ft. On Elm the first 25 feet back will be only 2 stories to get to parking, fitness room and the lobby also could have a potential small retail space. Selling price will be $275,000 per unit ($230 per sq. ft.) There will be 96 parking spaces for the residents and they are considering making a row of parking up against the back side of the building for condo quests. There will be infrastructure costs to bring in the utilities. B. Groat questioned the boundary line. L. Hooper stated it comes along the east border of the right away of Van Alstyne. D. Melzer passed out a letter expressing his objections to this project and requested canceling this project and concentrate on the blight in the downtown. Letter was received and placed on file. Patt Slack wanted to know why this property first and not Bank One or the theater. G. Gilbert stated it is important for the first project to be done well and successful. This project has a high degree of success and a catalyst for more. Mayor DeSana stated the need for high density downtown to be a successful downtown. No one came along and wanted to build anything on the other sites. P. Slack had no problem bringing more residents; she would just like to see the other sites first. She asked if the sub committee felt this project would spur the development of the other property and how. G. Rose stated by being successful and demonstrating $275,000 condos can sell in Wyandotte. Robert Hannastated Morningside’s philosophy works here locally because Royal Oak is now on its 3rd development. His philosophy is let the developer develop not give them a lot of rules. P. Slack would really like the alley to become a street. She also felt that there was a need for small 350 sq ft retail. G. Gilbert is satisfied the building will be attractive and state of the art. S. Darany asked if there was a possibility of adding a 3rd floor of parking to increase residents parking. J. Voszatka stated a row of parking is being considered on the north side of the building which would add 24 more spaces. S. Darany asked if Morningside would be paying the City a per unit fee as Crosswinds had done. J. Voszatka replied that the numbers were still being worked out. B. Groat asked if the greenbelt would be coming out. J. Voszatka stated it would and that cost would be coming back to the DDA at a later date. Mayor DeSansa did not think the Biddle House high-rise had a negative impact on Van Alstyne or 20 Chestnut. Motion by G. Rose, seconded by B. Groat, WHEREAS, the Wyandotte Downtown Development Authority (“DDA”) acknowledges receipt of a communication from the Director of Community Development dated December 7, 2005, regarding the Morningside Group’s Conceptual Development Plan A dated November 30, 2005, for the city-owned waterfront parking lot at Oak, Elm and Van Alsytne, including a summary of the project’s components and funding issues that need to be negotiated.

WHEREAS, the DDA acknowledges receipt of a resolution from the Request for Qualifications Review Committee recommending the preliminary approval of the Conceptual Development Plan with the understanding that there may be a contribution from the City/DDA/TIFA.

WHEREAS, the Morningside Group has presented an overview of the plan to the DDA at its meeting held on December 12, 2005.

NOW, THEREFORE, BE IT RESOLVED THAT the Wyandotte Downtown Development Authority hereby concurs in the recommendation of the RFQ Review Committee and recommends preliminary approval of the Conceptual Development Plan to the Mayor and Council with the understanding that there may be a contribution from the City/DDA/TIFA.

BE IT FURTHER RESOLVED that the DDA hereby recommends to the Mayor and Council that Conceptual Development Plan A be utilized to negotiate the financial contribution required from the City, and that when the amount is determined, that the City Engineer and the Director of Community Development present a Development and Sales Agreement to the DDA for consideration. All in favor, motion passed.

Mayor DeSana stated the whole purpose it to get the concept. If the people oppose the concept of building a high-rise no need to move forward.

SME

J. Voszatka gave an update on the project. Phase I is to get background and history of use of the property. Phase I should be completed on December 20, 2005. Phase II is to bore 6 soil borings to determine if there is contaminated soil and should be done by year end. There will be some type of agreement to share the increment with the Brownfield Authority to fund some of their remediation and other activities. Morningside will work with SME in case there is remediation that they will need to do. The cost is being shared with the TIFA.

MUNICIPALSERVICEBUILDING

Mayor and Council approved having the appraisal done. RESOLVED by R. Hanna, seconded by D. Michael, by the Wyandotte Downtown Development Authority (DDA) that the DDA hereby concurs in the recommendation of the Request for Qualifications (RFQ) Review Committee that the DDA fund an appraisal of the City-owned property at 3003-05 Biddle at a revised not to exceed fee of $3,000.

BE IT FURTHER RESOLVED THAT the DDA instructs the Director of Financial and Administrative Services to make the necessary budget amendment.

BE IT FURTHER RESOLVED THAT the DDA accepts the proposal as submitted by Treadwell & Associates, Inc. Realtors, 15032 Fort Street, Southgate, MI 48195, to conduct a complete appraisal of the City-owned property at 3003-05 Biddle at a fee not to exceed $3,000, and further, authorizes the appropriate personnel to sign the necessary documents. All in favor, motion carried.

TRILLIUM THEATER

J. Voszatka gave update on the study being done by Ed Francis of Gunnlevine and his cost estimator. They will be scheduling a tour of the building with the owner’s construction manager and the DDA. The building is up for sale by Farbman for $2.4 million. The goal is to have report back at January meeting. S. Darany asked if we were going to follow through with the owner to bring the building up to code and paying back taxes. G. Rose stated that they have put $40,000 into the building in the last few weeks and he thinks most of Engineering concerns have been addressed. Mayor DeSana stated that City Council feels the owner should maintain the building like anyone else would.

BUTZEL LONG

Mayor DeSana stated that a letter was sent to Greg Arnoldy had ended up on his desk. He sent copy of letter to City Council and said it would be on the DDA agenda. There was never an appropriation to the budget to hire an attorney for that purpose. Bill Look stated that the Board approved $15,000. Butzel Long had requested $25,000 from the Court but only $15,000 was approved. A letter was sent to Butzel Long reaffirming $15,000 was all the DDA would pay. It appears there were not monthly bills sent out. G. Gilbert agrees with B. Look that the City has a good position. Butzel Long was presently just sending a bill and it didn’t seem that they were that serious about collecting. Butzel Long represents Cities and DDA and it would not be in their best interest to sue the DDA. Mayor DeSana said that one attorney stated at a Council meeting they were doing it pro bono.

BYLAW AMENDMENT

G. Gilbert discussed there needs to be an amendment to the Bylaws to change the number of members needed for a quorum. Resolved by B. Groat, seconded by R. Hanna, that Article II, Sec. 7, entitled Quorum of Bylaws of the DDA is hereby amended as follows. Sec. 7, quorum majority members of the board in office constitutes a quorum for the transaction of business at any meeting of the board provided that if less of a majority of the directors may adjourn the meeting from time to time until further notice. An affirmative vote of at least 5 members of the Board of Directors shall be needed to adopt any resolution. All in favor, motion carried.

OVERSIGHT COMMITTEE

G. Gilbert stated an oversight committee needs to be set up to guide the director and figure out the different relationships between others that may come along. They would like to have a meeting quickly. Motion by R. Hanna, seconded by S. Darany to nominate Bob Groat, Norm Walker and Gib Rose as members of the Oversight Committee. All in favor, motion carried. Motion by S. Darany, seconded by R. Hanna to disband the Executive Director Search Committee. All in favor, motion carried.

EXECUTIVE DIRECTOR

L. Hooper is doing a weekly email report to the directors. She would like to consider what the mission statement of the DDA is. She is developing a handbook for the DDA members. There may be a need to consolidate the committees. S. Darany suggested L. Hooper include the expansion of the Historical Commission and WBA into the mission statement and email suggestions to the members for a vote at the next meeting. She has been working on job descriptions for those who will assist her. She is currently working on descriptions for the marketing/promotions coordinator and the administrative assistant and will present them to the Oversight Committee. 2 new Dell workstations were ordered. B. Groat questioned where Leslie Lupo’s budget went. L. Hooper stated that Heather Thiede was being paid from the Community Relations budget. L. Hooper will get report from Special Events fund. She is getting quotes from various companies for the Fort Street sign replacement.

BEAR ART

P. Slack reported that collections and donations have been going great. She requested that checks be made to the artist so that he could get paid the money a little sooner. The Bear has been in place for a month. L. Hooper conceded the DDA can pay what is due to the artist and wait for the donations so far the artist has been paid $1,325. There was an error in the Chelsea and Program Professionals donation it should have read $250 each not $500. We have not heard back from EW Smith or Kiwanis 1000. The Football Alumni Association has agreed to $1,000 but we are trying to not use the whole amount so their monies can go to enhance the athletics program. R. Hanna stated the Board did not vote on any money just approved the project. A. Hatley has made copies of all checks. P. Slack has given invoices so there is a paper trail. The Bear will be clear coated in the spring.

APPOVAL OF BILLS

D. Michael questioned if the medical benefits cost was yearly amount. L. Hooper stated it was the monthly cost. Motion by B. Groat, seconded by R. Hanna, to approve and pay the November 2005 bills including the paving of First and Chestnut that was not approved with the October 2005 bills. All in favor, motion carried.

NEW BUSINESS

The general contractor working with Austin Hyde Park sent a letter asking if they could build a dumpster enclosure in the parking lot. A. Hatley will send a letter letting them know the DDA will not be building any enclosures. The board gives its blessing and suggests they work with Engineering and any other commissions deemed necessary by the Engineering Department such as Zoning and Planning. Motion by S. Darany, seconded by D. Michael, to send response to Austin Hyde Park that they may build a dumpster enclosure in the City Parking lot, at their own expense and direct them to work with Engineering and any other Commissions deemed necessary. All in favor, motion carried.

Motion by R. Hanna, seconded by B. Groat, to adjourn the meeting at 7:20pm. All in favor, motion carried.

Respectfully submitted,

Ann Hatley

DDA Facilitator

CITY OF WYANDOTTE DOWNTOWN DEVELOPMENT AUTHORITY

Meeting Attendance & Voting Record

Meeting Date: September 12, 2005 Call to Order: 5:30pm Adjourned: 7:00pm

Board Member / #1 / # 2 / #3 / #4 / # 5 / #6 / #7 / # 8 / #9 / #
10 / #
11 / #
12 / #
13 / #
14 / #
15

Sam Darany

/ P / Y / Y /

Y

/ Y /

Y

/ Y / Y / Y / Y / Y
Greg Gilbert /

P

Y

/ Y /

Y

/ Y / Y / Y / Y / Y / Y / Y / Y
Bob Groat / P / Y /

Y

/ Y /

Y

/ Y / Y / Y / Y
Robert Hanna /

P

/ Y / Y / Y /

/ Y /

/ Y / Y / Y / Y
Doris Michael /

/ Y / Y / Y / Y / Y / Y /

/ Y / Y / Y / Y
Gilbert Rose / P / -- / -- /

/ Y /

/ Y / -- / -- / -

Patt Slack

/ Y / Y / Y /

/ Y /

/ Y / Y / Y / Y

Norm Walker

/ Y /

/ Y / Y / Y / Y /

/ Y / Y / Y / Y

Mayor DeSana

/ Y /

/ Y / Y / Y / Y /

/ -- / -- / -- / -

Motion #1Motioned By: B. GroatSupported By: R. Hanna

Motion to approve the agenda with the additions. All in favor, motion carried.

Motion #2Motioned By:D. MichaelSupported By: G. Rose

Motion to approve the minutes of the 224th meeting, November 14, 2005, of the Downtown Development Authority, with the amendment that 6 people were to attend the Art of Cool Conference. All in favor, motion carried.

Motion #3Motioned By: D. MichaelSupported By: G. Rose

Motion to receive the communications and place on file.

Motion #4Motioned By:G. RoseSupported By: B. Groat

WHEREAS, the Wyandotte Downtown Development Authority (“DDA”) acknowledges receipt of a communication from the Director of Community Development dated December 7, 2005, regarding the Morningside Group’s Conceptual Development Plan A dated November 30, 2005, for the city-owned waterfront parking lot at Oak, Elm and Van Alsytne, including a summary of the project’s components and funding issues that need to be negotiated.

WHEREAS, the Morningside Group has presented an overview of the plan to the DDA at its meeting held on December 12, 2005.

Pg. 2 Voting Record 12/05

Motion #5Motioned By: R. HannaSupported By: D. Michael

RESOLVED by the Wyandotte Downtown Development Authority (DDA) that the DDA hereby concurs in the recommendation of the Request for Qualifications (RFQ) Review Committee that the DDA fund an appraisal of the City-owned property at 3003-05 Biddle at a revised not to exceed fee of $3,000.