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.

1. FERNDALE DDA
FYE 2012 BUDGET

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
$370 500
REDUCED VACANCY RATE FROM 30% IN 2000 TO LESS THAN 5% TODAY

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 Tours
communities Services and
Businesses of
the DDA

4. FYE 2012
GOALS &
OBJECTIVES
February 2
Goals &
Objectives

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. WHAT THE
DDA DOES
DDA DOES
Business 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. WHAT THE
DDA DOES
DDA DOES
Business 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. WHAT THE
DDA DOES
DDA DOES
Public/Private Physical Improvements & Maintenance
Public/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. WHAT THE
DDA DOES
DDA DOES
Promotions & Marketing
Promotions & Marketing
Communicate 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. WHAT THE
DDA DOES
DDA DOES
Promotions & 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. 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. 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. CASE STUDY #1
BUSINESS
ATTRACTION &
ATTRACTION &
RETENTION
SNAPSHOT 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
p
providing assistance
g
•Education of Business Start‐Up Procedures &
Resources
•Ongoing assistance with grand opening
•Ongoing assistance with grand opening,
marketing, promotions, et al

14. CASE STUDY #2
PROMOTING &
MARKETING
MARKETING
DOWNTOWN
SNAPSHOT OF DDA MEDIA RELATIONS
SNAPSHOT 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. 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. 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. DDA REVENUE
BREAKDOWN
1% REVENUE FYE 2012
REVENUE FYE 2012
3%
6%
11%
TIF
1.3794 LEVY
GRANTS
SPONSORSHIPS
FEES
79%

18. DDA REVENUE
BREAKDOWN
Areas in Red
and No
Color
Color
Generate
Levy Only
Green Shaded Area
Generates TIF and Levy
G d

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. 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. FYE 2013 PROFORMA
BUDGET
ADJUSTMENTS

22. BUDGET CUT
SCENARIOS
Although the
Any type of
p
DDA 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
y
asked to show
asked to show
must be in an Portion = Portion =
% reductions,
Agreement for $47,996 $63,995
even though it
Defined
will not
Services
Services
increase
Rendered in
revenue in the
the TIF District.
General Fund.

23. HOW THE DDA
REDUCES COSTS
Projected 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 years
year options
Maintenance Contract renegotiated in ($2252)
2009 to remain Static for FYE2012
LED 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 2013
Wayfinding Phase II Reduction ($65,000)
Pedestrian Alley Lighting
Pedestrian Alley Lighting ($10,000)
Market Analysis deferred to 2013 ($25,000)

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

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

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. HEADLEE
OVERRIDE
FYE2012 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. 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. IMPACT OF
ELIMINATING
THE DDA
LOSS OF OVER ‐$250,965 IN HARD CASH IN YEAR 1
LOSS 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. 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. IMPACT OF
ELIMINATING
THE DDA
• Loss of Downtown Identity & Metro Area
Presence

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

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

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

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

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. 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. 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. 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