City of Ypsilanti Downtown Development Authority

Board of Directors Meeting

Wednesday, October 28, 2015 – 8:00 a.m. SPARK East

215 W. Michigan Ave.

Meeting Minutes

I. Call to Order: M. Teachout called the meeting to order at 8:10 am. II. Roll Call

Kenneth Dobson P Ben Harrington P Amanda Edmonds^ P Jelani McGadney P Jessica French (C) P Richard Smith* P Adam Gainsley P Mark Teachout P Cisco Garcia A RayVon Williams P Others in Attendance: Tim Colbeck, YDDA Director Beth Ernat, Ypsilanti Econ. Dev. Director Ricky Herbert, Lampshade

Dan Kubera, Hyperion Coffee Joe Licavoli, SPARK East Alexander Merz, Hyperion Coffee

Eric Mullins, Hyperion Coffee Pete Murdock, Ypsilanti City Council

Andrew O’Neal, O’Neal Construction

III. Approval of Agenda: B. Harrington moved to approve the agenda as submitted. J. McGadney supported the motion and it was passed unanimously.

IV. Audience Participation: none

VI. Old Business:

YDDA/City of Ypsilanti Intergovernmental Agreement: T.Colbeck gave a brief summary of the meeting that took place yesterday afternoon between representatives of the City Council and DDA Board and Staff. He stated that the parties involved at that meeting agreed on language for the proposed intergovernmental agreement (IGA) to forward to the DDA board and City Council. He then read through the new language in the agreement and discussed the latest draft. M. Teachout and A. Gainsley stated their support for the compromise agreement. The board engaged in a discussion of the specific terms of the IGA. There was general support for the new draft agreement. J. French asked if City Council will approve this draft. P. Murdock stated that he believes the new draft will indeed pass Council’s approval. The board then engaged in discussion on what impact this will mean to future DDA budgets and the increased need to diversify our funding streams.

B. Harrington moved to draft a resolution approving the IGA between the DDA and the City. K. Dobson seconded the motion and it was approved unanimously.

YDDA Building Rehab Grant Applications: T.Colbeck shared a historical summary of the Building Rehab Grant program that included all of the grants previously awarded and what criteria we have used in the past to evaluate applications. He also provided the actual application for board members to be familiar with. The board engaged in a discussion of how we evaluate the impact of each grant to make determinations on if and how much to award each individual application. They also discussed the budget for this program moving forward and how to find alternate revenues to keep the program viable. The Board then reviewed each of the applications before them today to determine whether to support and for how much.

o 306 N. River/Hyperion Coffee: T. Colbeck reviewed the summary memo of the application. He noted that the application is now complete with all of the required information however the building’s owners are not current on their property taxes. The board discussed the property tax issue. B. Ernat noted that property taxes that were due in September have a 90 day grace period before being assessed any penalties. The Board agreed that any award of a grant would have to clearly state that no funds will be awarded until all applicable taxes are current. A. Gainsley moved to approve the award of a building rehab grant as submitted by resolution. J. French supported the motion. The board members engaged in discussion of what would be an appropriate amount to award the applicant. They discussed what other potential applicants may still come forward in the current fiscal year in Depot Town and how much funding would be available. A. Gainsley moved to amend the resolution by lowering the award amount from $8,130 to $3,000. K. Dobson supported the motion. After further discussion of the proposed project and the DDA’s budget for additional applications, A. Edmonds made a friendly amendment to increase the award amount to $5,000. A. Gainsley accepted the friendly amendment. The amendment was approved unanimously. The board than voted on approving the resolution as amended and it was also approve unanimously.

o 10 N. Washington: T. Colbeck reviewed the summary memo for this application with the board. The board members again engaged in a discussion on what funds are available for the Downtown and what other potential applications may come to us for the remainder of the fiscal year.

J. McGadney moved to approve the grant award as submitted by resolution. B. Harrington supported the motion. A. Edmonds moved to amend the resolution by reducing the award amount from $5,350 to $5,000. A. Gainsley supported the amendment. M. Teachout made a friendly amendment request to reduce the award amount to $4,000 and A. Edmonds agreed to the friendly amendment. The board voted on the requested amendment: Ayes: K. Dobson, A. Edmonds, J. French, A. Gainsley, B. Harrington, J. McGadney, M. Teachout, and R. Williams

Nays: R. Smith The amendments to the resolution passed by a vote of 8-1. R. Smith moved to amend the resolution to bring the award amount back up to $5,000. J. French supported the motion and a vote was held: Ayes: R. Smith Nays: K. Dobson, A. Edmonds, J. French, A. Gainsley, B. Harrington, J. McGadney, M. Teachout, and R. Williams. The amendment failed by a vote of 1-8. The board then voted on the resolution to approve the award as amended and it was approved unanimously.

o 206 W. Michigan Ave./Lampshade: T. Colbeck reviewed the summary memo for this application with the board. R. Herbert addressed the board and discussed his intended use for the long vacant space and his proposed investment into the property. The board engaged in discussion on if the DDA should earmark the funds for a specific use for the project. The looked at the overall investment and improvements being made to the building and discussed the long-term benefit of the improvements to the Downtown. A. Gainsley moved to approve the resolution to award a building rehab grant. J. McGadney supported the motion. The board opened discussion on the resolution. A. Gainsley moved to amend the resolution to specifically earmark grant funds for the installation of an ADA compliant bathroom and that the award amount be lowered from $5,000 to $4,000. J. McGadney supported the amendment. R. Smith requested that the board reconsider the dollar amount and expressed his support for leaving at $5,000. The board voted on the amendment to the resolution: Ayes: K. Dobson, J. French, A. Gainsley, B. Harrington, J. McGadney, and M. Teachout Nays: R. Smith and R. Williams The amendments passed by a 6-2 vote. The board then voted on the resolution as amended: Ayes: K. Dobson, J. French, A. Gainsley, B. Harrington, J. McGadney, and M. Teachout Nays: R. Smith and R. Williams The amended resolution passed by a 6-2 vote.

VIII. Proposed Business: none

IX. Announcements/Comments:

T. Colbeck reminded the board about the upcoming Innovate Ypsi Downtown Office Tours coming up on November 6th.

T. Colbeck announced that the annual Downtown Halloween event will be tomorrow night at the Downtown Public Library Plaza.

X. Public Participation: none. XI. Adjourn: M. Teachout moved to adjourn the board meeting. J. French supported the motion. The meeting was adjourned at 10:00 am.

XII. Next Meeting: November 19, 2015, 8:30 a.m., SPARK East, 215 W. Michigan Ave.

October 28, 2015 2015-29

Downtown Development Authority of the

City of Ypsilanti County of Washtenaw, State of Michigan

RESOLUTION TO APPROVE AN INTERGOVERNMENTAL AGREEMENT (IGA) WITH THE CITY OF YPSILANTI

The following preamble and resolution were offered by Member B. Harrington and supported by Member K. Dobson. WHEREAS, one of the Ypsilanti DDA Board’s guiding principles and primary responsibilities is to support the long term financial planning for the YDDA; and WHEREAS, the YDDA’s primary source of income comes from the capture of TIFA revenue; and WHEREAS, the YDDA has requested the City of Ypsilanti approve a 25 year extension of the Depot Town TIFA to promote economic development in the Depot Town TIF district; and WHEREAS, the YDDA Board recognizes that the long term financial success of the DDA is directly tied to the long term financial strength of the City of Ypsilanti; and WHEREAS, over the last five years the YDDA has taken on many opportunities support projects, programs, and initiatives led by the City that would be mutually beneficial to the DDA Districts and the City of Ypsilanti in its entirety; and WHEREAS, the YDDA has directly supported the City financially in the last five years through formal agreements supporting a Downtown Police Officer Salary and Pedestrian Trash Can Services; and WHEREAS, YDDA wishes to continue to offer its support to the City that would be mutually beneficial; NOW, THEREFORE, BE IT RESOLVED THAT:

1. the YDDA Board approves an intergovernmental agreement for services that specifically dedicates a set percentage of the DDA’s TIFA capture to be given to the City in return for a list of guaranteed services to be provided by the City (see attached) in the DDA districts.

2. the agreement will be for a period of 25 years beginning with the 2016/17 fiscal year and the terms will be maintained and agreed to as specified in the formal agreement.

3. the terms of the agreement can only be amended by the mutual consent of the YDDA

and Ypsilanti City Council as specified in the agreement.

4. all terms and requirement of the agreement are contingent upon the Ypsilanti City Council approving the Amended and Restated Depot Town TIF and Development Plan as adopted by the YDDA in January 2015 and submitted to city Council in April 2015.

5. all resolutions and parts of resolutions insofar as they conflict with the provisions of this

resolution are and the same hereby are rescinded. AYES: K. Dobson, A. Edmonds, J. French, A. Gainsley, B. Harrington, J. McGadney, M. Teachout, and R. Williams NAYS: none ABSTAINED: none YES: 8 NO: 0 ABSENT: 2 VOTE: affirmed

October 28, 2015 2015-30

Downtown Development Authority of the

City of Ypsilanti County of Washtenaw, State of Michigan

RESOLUTION TO APPROVE THE AWARD OF A YDDA BUILDING REHABILITATION GRANT FOR 306 N. RIVER/HYPERION COFFEE

The following preamble and resolution were offered by Member A. Gainsley and supported by Member J. French. WHEREAS, a guiding principle of the Ypsilanti Downtown Development Authority (YDDA) is to strengthen the community's existing economic assets while expanding and diversifying its economic base and creating a welcoming business environment; and WHEREAS, the Washtenaw County Eastern Leaders Group (ELG) has continued a partnership with the YDDA by providing $15,000 for the YDDA’s Building Rehabilitation Grant Program for the 2015-16 fiscal year; and WHEREAS, the YDDA has allocated a matching $15,000 for the Building Rehabilitation and Façade Grant Program in the FY 2015-16 budget; and WHEREAS, the YDDA has received a grant request from Dan Kubera/Hyperion Coffee for the rehabilitation of the above referenced address that would include: installation of an ADA compatible bathroom, installation of an ADA accessible entrance, and the reopening of bricked in windows; and WHEREAS, upon review by the Economic Restructuring & Design Committee it has been determined that the application is complete and the request would be an appropriate use of the grant program; and NOW, THEREFORE, BE IT RESOLVED THAT:

1. YDDA Board approves the award of a building rehabilitation grant as recommended by the Economic Restructuring & Design Committee.

2. the grant cover up to 50% of the applicable project costs as defined in the program application packet, not to exceed $5,000 and be specifically earmarked for the installation of an ADA compatible bathroom.

3. the grant be awarded as a reimbursement to the applicant upon completion of the

proposed project and that all applicable program requirements are met, including the receipt of all appropriate required approvals and permits.

4. that any outstanding property taxes be paid before any award can be paid, if the current

year’s taxes are not brought current before the project’s completion the YDDA reserves the right to rescind any grant award.

5. all resolutions and parts of resolutions insofar as they conflict with the provisions of this resolution are and the same hereby are rescinded.

AYES: K. Dobson, A. Edmonds, J. French, A. Gainsly, B. Harrington, J. McGadney, R. Smith, M. Teachout, and R. Williams NAYS: none ABSTAINED: none YES: 9 NO: 0 ABSENT: 1 VOTE: affirmed

October 28, 2015 2015-31

Downtown Development Authority of the

City of Ypsilanti County of Washtenaw, State of Michigan

RESOLUTION TO APPROVE THE AWARD OF A YDDA BUILDING REHABILITATION GRANT FOR 10 N. WASHINGTON

The following preamble and resolution were offered by Member J. McGadney and supported by Member B. Harrington. WHEREAS, a guiding principle of the Ypsilanti Downtown Development Authority (YDDA) is to strengthen the community's existing economic assets while expanding and diversifying its economic base and creating a welcoming business environment; and WHEREAS, the Washtenaw County Eastern Leaders Group (ELG) has continued a partnership with the YDDA by providing $15,000 for the YDDA’s Building Rehabilitation Grant Program for the 2015-16 fiscal year; and WHEREAS, the YDDA has allocated a matching $15,000 for the Building Rehabilitation and Façade Grant Program in the FY 2015-16 budget; and WHEREAS, the YDDA has received a grant request from Elan Ruggill for the rehabilitation of the above referenced address that would include: restoration of the original façade, ADA accessible service entrance, installation of an ADA compatible bathroom; and WHEREAS, upon review by the Economic Restructuring & Design Committee it has been determined that the application is complete and the request would be an appropriate use of the grant program; and NOW, THEREFORE, BE IT RESOLVED THAT:

1. YDDA Board approves the award of a building rehabilitation grant as recommended by the Economic Restructuring & Design Committee.

2. the grant cover up to 50% of the applicable project costs as defined in the program application packet, not to exceed $4,000 and be specifically earmarked for the installation of an ADA compatible bathroom.

3. the grant be awarded as a reimbursement to the applicant upon completion of the

proposed project and that all applicable program requirements are met, including the receipt of all appropriate required approvals and permits.

4. all resolutions and parts of resolutions insofar as they conflict with the provisions of this resolution are and the same hereby are rescinded.

AYES: K. Dobson, A. Edmonds, J. French, A. Gainsley, B. Harrington, J. McGadney, R. Smith, M. Teachout, and R. Williams NAYS: none ABSTAINED: none YES: 9 NO: 0 ABSENT: 1 VOTE: affirmed

October 28, 2015 2015-32

Downtown Development Authority of the

City of Ypsilanti County of Washtenaw, State of Michigan

RESOLUTION TO APPROVE THE AWARD OF A YDDA BUILDING REHABILITATION GRANT FOR 206 W. MICHIGAN AVE./LAMPSHADE

The following preamble and resolution were offered by Member A. Gainsley and supported by Member J. McGadney. WHEREAS, a guiding principle of the Ypsilanti Downtown Development Authority (YDDA) is to strengthen the community's existing economic assets while expanding and diversifying its economic base and creating a welcoming business environment; and WHEREAS, the Washtenaw County Eastern Leaders Group (ELG) has continued a partnership with the YDDA by providing $15,000 for the YDDA’s Building Rehabilitation Grant Program for the 2015-16 fiscal year; and WHEREAS, the YDDA has allocated a matching $15,000 for the Building Rehabilitation and Façade Grant Program in the FY 2015-16 budget; and WHEREAS, the YDDA has received a grant request from Richard Herbert/Lampshade LLC for the rehabilitation of the above referenced address that would include: installation of new HVAC, new electrical systems, plumbing, an ADA compliant restroom, flooring, exterior doors and windows, sump pump, humidifier and mold prevention system and façade improvements; and WHEREAS, upon review by the Economic Restructuring & Design Committee it has been determined that the application is complete and the request would be an appropriate use of the grant program; and NOW, THEREFORE, BE IT RESOLVED THAT:

1. YDDA Board approves the award of a building rehabilitation grant as recommended by the Economic Restructuring & Design Committee.

2. the grant cover up to 50% of the applicable project costs as defined in the program application packet, not to exceed $4,000 and be specifically earmarked for the installation of an ADA compliant bathroom.

3. the grant be awarded as a reimbursement to the applicant upon completion of the

proposed project and that all applicable program requirements are met, including the receipt of all appropriate required approvals and permits.

4. that any outstanding property taxes be paid before any award can be paid, if the current

year’s taxes are not brought current before the project’s completion the YDDA reserves the right to rescind any grant award.

5. all resolutions and parts of resolutions insofar as they conflict with the provisions of this

resolution are and the same hereby are rescinded. AYES: K. Dobson, J. French, A. Gainsley, B. Harrington, J. McGadney, and M. Teachout NAYS: R. Smith and R. Williams ABSTAINED: none YES: 6 NO: 2 ABSENT: 2 VOTE: affirmed