Ferndale DDA Budget Presentation FYE2012

FERNDALE DDAFYE 2012 BUDGET

2010 & 10‐YEAR STATISTICS 2010 10‐YEAR 10 YEAR $7.8 million $57.5 million reinvestment reinvestment 1244 Net New 204 Net New Jobs Jobs 4100 Volunteer 17,647 Volunteer Hours Valued at Hours Valued at $86,100 $86 100 $370,500 $370 500REDUCED VACANCY RATE FROM 30% IN 2000 TO LESS THAN 5% TODAY

FYE 2011 HIGHLIGHTS 2010 Great 2010 Great Recognized Recognized Preserve Preserve Launched Launched Downtown Downtown American by MSOC America LunaTech Ferndale Main Street through 7 Wayfinding Globe for Business Designation Award‐ Phase I Business & Guide– Top 5 in US winning Installation & Recruitment out of 2,000 Projects, Virtual Tourscommunities Services and Businesses of the DDA

FYE 2012 GOALS & OBJECTIVES February 2 Goals &Objectives

WHAT THE DDA DOES DDA DOES• Sustain, grow and promote Downtown Ferndale’s vibrant, diverse ,g p , and cooperative business district.• Ensure that Downtown Ferndale provides a quality environment and experience p• Ensure Downtown Ferndale continues to be a leader in local, state and national economic development• Celebrate the history, culture and progress of Downtown Ferndale Celebrate the history, culture and progress of owntown Ferndale while shaping the future to enhance the quality of life and business.• Efficiently and effectively maintain and manage the operations of y y g p Downtown Ferndale. • Empower stakeholders, creating strong partnerships and ownership of Downtown Ferndale.• Create a clear and positive impression of Downtown Ferndale and the City as a whole, and how the DDA is integral to its evolution.

WHAT THE DDA DOES DDA DOESBusiness Start Up & Assistance• Provide New Business And/Or Welcome Packets That Include: – BUILD G t I f BUILD Grant Info – Applications For ZDR, BZA, Appearance Review, Sandwich Board Signage, Sidewalk Cafes – Information On Pertinent City Ordinances, DDA, City & County Resources, ADA Compliance, Market Analysis, Etc. – Information on Compactor Usage & Snow Removal – Contact Information For DDA • Assist With Permits, Applications, Zoning• Track and List Available Properties on Website/Luna Tech Track and List Available Properties on Website/Luna Tech • Provide Location Assistance

WHAT THE DDA DOES DDA DOESBusiness Start Up & Assistance• Provide Consultation Services & Insights• Offer Networking For Every Stage Business: – FernNet, For Established Businesses – IGNITE F N IGNITE, For New, Emerging Or Growing Businesses E i O G i B i – Ferndale First, For ALL Ferndale Businesses • FREE Marketing, Promotions & Consultations g,• Resource on State & Federal Financial Incentives and Business Planning

WHAT THE DDA DOES DDA DOESPublic/Private Physical Improvements & MaintenancePublic/Private Physical Improvements & Maintenance• Streetscape Plans, Projects & Improvements• Landscape & Flower Installations & Maintenance• Planting Of More Than 40 New Trees On Woodward Ave Pl ti Of M Th 40 N T O W d dA• Design Guidelines & Façade Grants For Façade Improvements• Long Term Planning For Capital Improvement Projects• Wayfinding, Directional And Historical Signage• Develop Programs To Encourage Buy‐in By Businesses To Improve Their Visuals, i.e. Pimp Your Pot p• Encourage Environmental Sustainability With Financial Incentives

WHAT THE DDA DOES DDA DOESPromotions & MarketingPromotions & MarketingCommunicate Assets For Downtown Ferndale & Its Businesses• Regularly Distribute Press Releases & Media Alerts• M i t i &U d t 3S Maintain & Update 3 Separate Facebook P t F b k Pages with More ith M Than 4,300 Fans: Downtown Ferndale, Ignite & Fido Does Ferndale• Maintain & Update LinkedIn Twitter & Blog Maintain & Update LinkedIn, Twitter & Blog• Maintain & Update www.downtownferndale.com – More Than 13,000 Unique Visitors In A Given Month – Updates Include Business Listings, Events, Volunteer Opportunities, Etc• Eblast Newsletters To More Than 2000+ Consumers & Businesses B i – 2xs Per Month or More Depending on Month

WHAT THE DDA DOES DDA DOESPromotions & Marketing• Develop, Promote And Execute Several Major Downtown Events ie: Holiday Ice Festival, Pimp Your Pot, Fido Does Events ie: Holiday Ice Festival Pimp Your Pot Fido Does Ferndale• Promote And Collaborate With Third Party Vendors To Attract Independent Events For The Benefit Of The Entire City Independent Events For The Benefit Of The Entire City• Promote Events And Initiatives Of District Businesses, i.e. The Great Diaper Change At Modern Natural Baby, Rouge Make Over, Assembly Line Concert Over Assembly Line Concert• Develop Graphics, Print, Audio And Video Collateral For DDA‐ promoted Events And Activities• Engage Businesses To Participate In Events And Free Engage Businesses To Participate In Events And Free Opportunities To Benefit Their Business

WHAT THE DDA DOES DDA DOES Grass Roots Grass‐Roots Community Building• Recruit volunteers for jobs big and small b d ll• Train & honor volunteers p to make them partners and vested in their community• Engage non‐profits and Engage non profits and build partnerships for better business• Fundraise to leverage tax Fundraise to leverage tax dollars

TEAMWORK• Appearance Review Processing @70‐80 applications per year• Noise Ordinance Review/Recommendations & Consultant Contribution $1,000• Parking System Analysis• Business Assistance with City• Liaison between City, Businesses & Other Communities Liaison between City, Businesses & Other Communities• Special Events Committee• Grant Project Management• Communications & Marketing of City Communications & Marketing of City• TIA Contribution $2,333• Ferndale Area Chamber of Commerce & WA3• Helped Craft Medical Marijuana Ordinance for Entire City• Press Conferences for City, i.e. Vincent Chin Memorial Dedication

CASE STUDY #1 BUSINESS ATTRACTION & ATTRACTION & RETENTIONSNAPSHOT OF DDA TIME•More than 24 Meetings with two different tenants•Approximately 12 telephone conversations with tenants & landlords•Ongoing interaction between DDA staff and DDA volunteers, tracking negotiations and pproviding assistance g•Education of Business Start‐Up Procedures & Resources•Ongoing assistance with grand opening•Ongoing assistance with grand opening, marketing, promotions, et al

CASE STUDY #2 PROMOTING & MARKETING MARKETING DOWNTOWNSNAPSHOT OF DDA MEDIA RELATIONSSNAPSHOT OF DDA MEDIA RELATIONS• Through the ongoing generation of press releases, media updates, facebook posts and eblasts , the DDA regularly garners interest from local, regional and national press to help garners interest from local, regional and national press to help develop stories & provide photos• At least 10 press calls per week (on a normal non‐event week)EXAMPLE• Sunday, April 10 ‐‐ Detroit Free Press featured Downtown Ferndale on the front page and back of its business section.• Focus was on the 5 grocers in Downtown Ferndale Focus was on the 5 grocers in Downtown Ferndale.• Full page story included 7 photos, interviews with business owners, shoppers and a retail expert who praised the grocery store cluster. store cluster• Value $31,000‐36,000

CASE STUDY #3 COMMUNITY LIAISON SNAPSHOT OF LIAISON WORK BETWEEN CITY, BUSINESS OWNERS, LANDLORDS, DOWNTOWN USERS: GARBAGE ISSUE @5 HOURS/MONTH Garbage and removal of it is an ongoing issue for all users of G b d l fi i i i f ll f Downtown Ferndale, but DDA staff typically communicates rules, issues, problems and resolutions between all parties.• Merchant reports broken Withington d M h t t b k Withi t dumpster to DDA, t t DDA acknowledges leaving trash outside of dumpster• DDA calls DPW to report problem and explain merchant action• DPW checks and repairs dumpsters, updates DDA on status• DDA calls merchant to report dumpster is now in working order d• This scenario is repeated in various ways, regularly

DOWNTOWN REVENUE PROJECTIONS$900,000.00 $800,000.00 $700,000.00 $600,000.00 $500,000.00 Fees$400,000.00 $300,000.00 $300 000 00 Sponsorships$200,000.00 Grants$100,000.00 Levy $ $‐ TIF Pre‐TIF

DDA REVENUE BREAKDOWN 1% REVENUE FYE 2012 REVENUE FYE 2012 3% 6%11% TIF 1.3794 LEVY GRANTS SPONSORSHIPS FEES 79%

DDA REVENUE BREAKDOWN Areas in Red and No Color Color Generate Levy OnlyGreen Shaded AreaGenerates TIF and LevyG d

DDA TIF DISTRICT BREAKDOWN DDA TIF DISTRICT REVENUE BREAKDOWN $700.00 Revenue by the ousands $600.00 ‐4% ‐8% $500.00 $500 00 Tho $400.00 Remains $300.00 Constant to the $200.00 General $100.00 Fund $ $‐ 2010 2011 2012 Other Taxing $100,095.00 $96,091.20 $88,403.90 Jurisdictions City TIF Portion $362,288.00 $347,796.48 $319,972.76 City Pre‐TIF Revenue $141,772.00 $141,772.00 $141,772.00

DDA EXPENSES FYE2012 DDA EXPENSES DDA EXPENSES Administration Benefits & Employment Expenses 1.77% 8.24% 8 24% Capital Outlay & Grant Expenses p y p 15.44% Maintenance 8.55%2.64% % 5.69% 5 69% Operating Costs BUILD Program 4.90% 4.40% Building & Equipment Rental 18.50% 18 50% Utilities 8.03% Special Events & Marketing 21.82% Education & Travel Contractual Services

FYE 2013 PROFORMA BUDGETADJUSTMENTS

BUDGET CUT SCENARIOS Although the Any type of pDDA is not part DDA DDA of the City’s Contribution General Fund, into the City’s we have been General Fund 15% of City TIF y 20% of City TIF yasked to show asked to show must be in an Portion = Portion = % reductions, Agreement for $47,996 $63,995even though it Defined will not Services Services increase Rendered in revenue in the the TIF District.General Fund.

HOW THE DDA REDUCES COSTSProjected Income & Budget Reductions j g ($ , ($41,000) )Renegotiated Building Lease to remain ($1200)Static over next two years with three one‐ Total of $6000 in Savings for 5 yearsyear optionsMaintenance Contract renegotiated in ($2252)2009 to remain Static for FYE2012LED Holiday Lighting Cost Savings ($3500 + cost savings)(replacement plan completed)BUILD Signage ($5,000)Livernois –Pinecrest Streetscape partially p p y ($ ($125,000) , )deferred to 2013Wayfinding Phase II Reduction ($65,000)Pedestrian Alley LightingPedestrian Alley Lighting ($10,000)Market Analysis deferred to 2013 ($25,000)

HOW THE DDA GIVES BACK HARD COSTS 2012CONTRIBUTIONS TO CITYCONTRIBUTIONS TO CITY $93,454.50 $93 454 50Allen & 9 Reconstruction (no $75,000city funds)Holiday Light Utilities & Public $11,000 Property such as DumpstersProperty such as DumpstersCity Motor Pool Contribution $1575(NEW)Appearance Review 142 hours = Management $2,546.50

HOW THE DDA GIVES BACK HARD COSTS & REDUCES COSTSTOTAL DDA REDUCTIONS $44,452 = 13% FYE2012TOTAL CITY BURDEN $90,121.50 = 28%REDUCTION FYE2012 C O 2012GRAND TOTAL TOTAL 41%REDUCTION

ADDITIONAL OPTIONS FOR HARD COSTS• Insurance Costs of @$1500 for Property and Errors & Omissions Errors & Omissions• Annual TIA Contribution $2,333• Cit Ad i F City Admin Fees for Finances (1% of Non‐Tax f Fi (1% f N T Revenue) & Payroll (1% of Pensions) $550

HEADLEE OVERRIDEFYE2012 TIF & Levy Revenue Projection Without Headlee$483,000 Headlee Override in the DDA’s TIF District will generate an additional $40,372.11 in FYE 2012 Totaling $523,372.11 DDA’s TIF & Levy Revenue Decrease from FYE 2011 to FYE 2012 is projected to be $ 41,000 Net Loss from FYE2011 to FYE 2012 with Headlee is ($ ($627.89))

HEADLEE GIVEBACK MENU OPTIONS• Sidewalk Café Application Management City‐wide – 21 downtown• Liquor License Renewals & New Application Management City‐wide ‐ @34 downtown• Parking Management—Reduce City Management Burden of a minimum of 2000 hours a value of $62,000• Valet Parking Application Management• LED Light Long‐Range Plan for Ornamental Pedestrian Lights –An $88,000 LED Light Long Range Plan for Ornamental Pedestrian Lights –An $88 000 DDA Investment with a Potential Savings of $19,310 City Utility & Maintenance Costs Annually• Social Media Management and/or Training• WA3 City Membership Dues $3,125• City Admin Fees for Finances (1% of Non‐Tax Revenue) & Payroll (1% of Pensions) $550• Insurance Costs of @$1500 for Property and Errors & Omissions Insurance Costs of @$1500 for Property and Errors & Omissions• Annual TIA Contribution $2,333

IMPACT OF ELIMINATING THE DDALOSS OF OVER ‐$250,965 IN HARD CASH IN YEAR 1LOSS OF OVER ‐$250 965 IN HARD CASH IN YEAR 1& ‐$345,238 YEAR TWO • $100,095 Revenue Loss from Other Taxing Jurisdictions $ , g • $59,000 Revenue Loss of Operations Levy • $36,143 Loss of Annual Sponsorships • Loss of Grant Opportunities and Matching Ability (Ranging from $15,000‐$150,000 for FYE 2012 & 2013 Projects Specifically) Projects Specifically) • Loss of Portion of Reserves (reverts back) @ $40,727 • Loss of Marketing Value (refer to Media Assets list) Loss of Marketing Value (refer to Media Assets list) • Loss of Focused Management

IMPACT OF ELIMINATING THE DDA• Loss of 36 DDA‐run Special Events & over 50 that we support and promote that we support and promote

IMPACT OF ELIMINATING THE DDA• Loss of Downtown Identity & Metro Area Presence

IMPACT OF ELIMINATING THE DDA• Loss of Business Retention and Recruitment Efforts and Recruitment Efforts

IMPACT OF ELIMINATING THE DDA• Loss of Over 40 volunteers and ability to manage them manage them

IMPACT OF ELIMINATING THE DDA• Loss of Physical Building Improvements Improvements – Since 2000 over 75% of downtown buildings downtown buildings rehabilitated

IMPACT OF ELIMINATING THE DDA• Loss of Loss of Environment Improvements – Landscaping – Maintenance – Pocket Parks Pocket Parks – Bike Racks – Benches – Banners – Holiday Decor

IMPACT OF ELIMINATING THE DDA• Loss of Complete Streets/Capital Improvements to Streetscapes, Infrastructure Improvements to Streetscapes, Infrastructure (See Capital Plan List)

IMPACT OF ELIMINATING THE DDA• Decreased Property Values – DDA has helped to reduce the rate at which property values decreased in the TIF District with only a 4% reduction in 2011 compared to rest of City of 7.6%• Loss of Future Public Parking Deck without DDA Loss of Future Public Parking Deck—without DDA projected contribution of @$78,000, impossible pp to support• Loss of Competitive Edge with Neighboring Communities

IMPACT OF ELIMINATING THE DDA• DDA staff handles more than 100 phone calls weekly, many non‐DDA related. • DDA manages and updates a database of all businesses & properties in the district, an essential tool for leasing vacant properties, contacting di t i t ti l t l f l i t ti t ti businesses about important business‐related issues, snow removal, etc. • DDA’s Main Street presence serves as a Visitor & Business Resource Center.• The Ferndale DDA’s leading edge knowledge of best business practices, new technologies, historic preservation, downtown management and marketing, economic restructuring, current and pertinent laws and ordinances, financial incentives, emerging trends position the district for ordinances, financial incentives, emerging trends position the district for future growth and nurture current businesses. • The DDA frequently researches issues, conducts studies and initiates, plans and pays for services that benefit the entire city, i.e. noise, parking, streetscapes, wayfinding, etc. streetscapes wayfinding etc

IMPACT OF ELIMINATING THE DDA• City would Incur the Hard Costs of $194,000: – $126,000 Annual Maintenance Contract –$$17,000 Plant Materials & Supplies Annually – $16,000 Streetscape Amenities Annually – Property Lease of $24 000/year (4 year total $96 000) Property Lease of $24,000/year (4 year total $96,000) – $11,000 Holiday Lights & Public Utilities Annually PLUS Over 10,000 hours of Management (Salary & Volunteer) of Downtown, a value of $213,751 V l t ) fD t l f $213 751 TOTAL OF: $407,751 TOTAL OF: $407,751

IMPACT OF ELIMINATING THE DDA• ANNUAL INCURRED COSTS: $407,751• ANNUAL REVENUE LOSS AVG. $298,102 ANNUAL REVENUE LOSS AVG. $298,102• TOTAL ANNUAL LOSS: $751,853• NET ANNUAL LOSS: $385,880 FLASHBACK TO 1990s

Ferndale DDA Budget Presentation FYE2012

by Ferndale Downtown Development Authority on Apr 25, 2011

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Ferndale DDA Budget Presentation FYE2012 — Presentation Transcript