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Ferndale DDA Budget Presentation FYE2012

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The Ferndale DDA presented its FYE 2012 budget to Ferndale City Council on Wednesday, April 20, 2011. This presentation includes an overview of what the DDA does, the FYE 2012 budget projections with and without an Headlee Amendment Override, and what the impact of eliminating the DDA would be on the community.

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Ferndale DDA Budget Presentation FYE2012

  1. 1. FERNDALE DDAFYE 2012 BUDGET
  2. 2. 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
  3. 3. 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
  4. 4. FYE 2012  GOALS &  OBJECTIVES February 2 Goals &Objectives
  5. 5. 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. 
  6. 6. 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
  7. 7. 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
  8. 8. 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
  9. 9. 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
  10. 10. 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
  11. 11. 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
  12. 12. 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
  13. 13. 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 
  14. 14. 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
  15. 15. 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
  16. 16. 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
  17. 17. DDA REVENUE  BREAKDOWN 1% REVENUE FYE 2012 REVENUE FYE 2012 3% 6%11% TIF 1.3794 LEVY GRANTS SPONSORSHIPS FEES 79%
  18. 18. DDA REVENUE  BREAKDOWN Areas in Red    and No  Color  Color Generate  Levy OnlyGreen Shaded AreaGenerates TIF and LevyG d
  19. 19. 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 
  20. 20. 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
  21. 21. FYE 2013 PROFORMA BUDGETADJUSTMENTS
  22. 22. 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 $63,995even though it  Defined  will not  Services  Services increase  Rendered in revenue in the  the TIF District.General Fund.
  23. 23. HOW THE DDA  REDUCES COSTSProjected Income & Budget Reductions j g ($ , ($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)
  24. 24. 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 
  25. 25. 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
  26. 26. 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
  27. 27. 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))
  28. 28. 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
  29. 29. 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
  30. 30. IMPACT OF  ELIMINATING  THE DDA• Loss of 36 DDA‐run Special Events & over 50  that we support and promote  that we support and promote
  31. 31. IMPACT OF  ELIMINATING  THE DDA• Loss of Downtown Identity & Metro Area  Presence
  32. 32. IMPACT OF  ELIMINATING  THE DDA• Loss of Business Retention  and Recruitment Efforts and Recruitment Efforts
  33. 33. IMPACT OF  ELIMINATING  THE DDA• Loss of Over 40 volunteers and ability to  manage them manage them
  34. 34. IMPACT OF  ELIMINATING  THE DDA• Loss of Physical Building  Improvements  Improvements – Since 2000 over 75% of  downtown buildings  downtown buildings rehabilitated
  35. 35. IMPACT OF  ELIMINATING  THE DDA• Loss of Loss of  Environment  Improvements  – Landscaping – Maintenance – Pocket Parks Pocket Parks – Bike Racks – Benches – Banners – Holiday Decor
  36. 36. IMPACT OF  ELIMINATING  THE DDA• Loss of Complete Streets/Capital  Improvements to Streetscapes, Infrastructure  Improvements to Streetscapes, Infrastructure (See Capital Plan List)
  37. 37. 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
  38. 38. 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
  39. 39. 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
  40. 40. 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

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