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FERNDALE DDAFERNDALE DDA FYE 2012 BUDGETFYE 2012 BUDGET
2010 & 10‐YEAR
2010 10 YEAR
STATISTICS
2010 10‐YEAR
$7.8 million reinvestment
$57.5 million reinvestment
204 Net New Jobs 1244 Net New Jobs
4100 Volunteer Hours Valued at
$86 100
17,647 Volunteer Hours Valued at
$370 500$86,100 $370,500
REDUCED VACANCY RATE FROM 30% IN 2000 TO LESS THAN 5% TODAY
FYE 2011 HIGHLIGHTSHIGHLIGHTS
2010 Great Recognized Preserve Launched Downtown2010 Great American Main Street Designation – Top 5 in US
Recognized by MSOC through 7 Award‐winning
Preserve America
WayfindingPhase I
Installation &
Launched LunaTechGlobe for Business & Recruitment
Downtown Ferndale Business Guide
out of 2,000 communities
Projects, Services and Businesses of
the DDA
Virtual Tours
FYE 2012 GOALS &
OBJECTIVES
February 2
Goals &ObjectivesObjectives
WHAT THE DDA DOES
• Sustain, grow and promote Downtown Ferndale’s vibrant, diverse
DDA DOES
, g p ,and cooperative business district.
• Ensure that Downtown Ferndale provides a quality environment and experiencep
• 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 Ferndalewhile shaping the future to enhance the quality of life and business.
• Efficiently and effectively maintain and manage the operations of y y g pDowntown 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 DOESDDA 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 TechTrack and List Available Properties on Website/Luna Tech • Provide Location Assistance
WHAT THE DDA DOESDDA DOES
Business Start Up & Assistance• Provide Consultation Services & Insights• Offer Networking For Every Stage Business:
– FernNet, For Established BusinessesIGNITE F N E i O G i B i– IGNITE, For New, Emerging Or Growing Businesses
– Ferndale First, For ALL Ferndale Businesses
• FREE Marketing, Promotions & Consultationsg,• Resource on State & Federal Financial Incentives and
Business Planning
WHAT THE DDA DOES
Public/Private Physical Improvements & Maintenance
DDA DOES
Public/Private Physical Improvements & Maintenance• Streetscape Plans, Projects & Improvements• Landscape & Flower Installations & Maintenance
Pl ti Of M Th 40 N T O W d d A• Planting Of More Than 40 New Trees On Woodward Ave• 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 Potp• Encourage Environmental Sustainability
With Financial Incentives
WHAT THE DDA DOES
Promotions & Marketing
DDA DOES
Promotions & MarketingCommunicate Assets For Downtown Ferndale & Its Businesses• Regularly Distribute Press Releases & Media Alerts
M i t i & U d t 3 S t F b k P ith M• Maintain & Update 3 Separate Facebook Pages with More 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 & B iBusinesses– 2xs Per Month or More Depending on Month
WHAT THE DDA DOESDDA DOES
Promotions & Marketing• Develop, Promote And Execute Several Major Downtown
Events ie: Holiday Ice Festival Pimp Your Pot Fido DoesEvents 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 CityIndependent 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 ConcertOver, 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
Grass‐Roots
DDA DOES
Grass Roots Community Building
• Recruit volunteers for jobs b d llbig and small
• Train & honor volunteers to make them partners pand vested in their community
• Engage non‐profits andEngage 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 CommunitiesLiaison 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 #1BUSINESS
ATTRACTION &ATTRACTION & RETENTION
SNAPSHOT OF DDA TIME•More than 24 Meetings with two different tenantstenants•Approximately 12 telephone conversations with tenants & landlords•Ongoing interaction between DDA staff and DDA volunteers, tracking negotiations and providing assistance p g•Education of Business Start‐Up Procedures & Resources•Ongoing assistance with grand opening•Ongoing assistance with grand opening, marketing, promotions, et al
CASE STUDY #2PROMOTING & MARKETING
SNAPSHOT OF DDA MEDIA RELATIONS
MARKETING DOWNTOWN
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 helpgarners 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)EXAMPLEEXAMPLE• 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 clusterstore cluster.
• Value $31,000‐36,000
CASE STUDY #3COMMUNITY
LIAISON
SNAPSHOT OF LIAISON WORK BETWEEN CITY, BUSINESS OWNERS, LANDLORDS, DOWNTOWN USERS: GARBAGE ISSUE @5 HOURS/MONTHG b d l f i i i i f ll fGarbage and removal of it is an ongoing issue for all users of Downtown Ferndale, but DDA staff typically communicates rules, issues, problems and resolutions between all parties.M h t t b k Withi t d t t DDA• Merchant reports broken Withington dumpster to DDA, acknowledges leaving trash outside of dumpster
• DDA calls DPW to report problem and explain merchant actionaction
• DPW checks and repairs dumpsters, updates DDA on status• DDA calls merchant to report dumpster is now in working
dorder• This scenario is repeated in various ways, regularly
DOWNTOWN REVENUE
PROJECTIONS
$700,000.00 $800,000.00 $900,000.00
$300 000 00$400,000.00 $500,000.00 $600,000.00
Fees
Sponsorships
$‐$100,000.00 $200,000.00 $300,000.00 Sponsorships
Grants
Levy
TIF$ TIF
Pre‐TIF
DDA REVENUE BREAKDOWNBREAKDOWN
1% REVENUE FYE 20123%
6%
1% REVENUE FYE 2012
11%TIF
1.3794 LEVY
GRANTS
SPONSORSHIPS
79% FEES
DDA REVENUE BREAKDOWNBREAKDOWN
Areas in Red and No ColorColor Generate Levy Only
Green Shaded AreaG dGenerates TIF and Levy
DDA TIF DISTRICT
BREAKDOWN
DDA TIF DISTRICT REVENUE BREAKDOWN
$500 00
$600.00
$700.00 e by
the
ousand
s
‐4% ‐8%
$300.00
$400.00
$500.00
Revenu Tho
Remains Constant
$‐
$100.00
$200.00 to the General Fund
2010 2011 2012
Other Taxing Jurisdictions $100,095.00 $96,091.20 $88,403.90
$
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 Administration
FYE2012
1.77%8 24%
DDA EXPENSES Administration
Benefits & Employment Expenses
Capital Outlay & Grant Expenses15.44%
5 69%2.64%8.55%
8.24% p y p
Maintenance
Operating Costs5.69%
18 50%4.40%
4.90%
%
BUILD Program
Building & Equipment Rental18.50%
8.03%Utilities
Special Events & Marketing
21.82% Education & Travel
Contractual Services
FYE 2013 PROFORMA BUDGETBUDGETADJUSTMENTS
BUDGET CUT SCENARIOSSCENARIOS
Although the DDA is not part Any type of
DDApof the City’s General Fund, we have been asked to show
DDA Contribution into the City’s General Fund 15% of City TIF 20% of City TIF asked to show
% reductions, even though it
will not
must be in an Agreement for
Defined Services
yPortion = $47,996
yPortion = $63,995
increase revenue in the General Fund.
Services Rendered in
the TIF District.
HOW THE DDA REDUCES COSTS
Projected Income & Budget Reductions ($41,000)j g ($ , )
Renegotiated Building Lease to remain Static over next two years with three one‐year options
($1200)Total of $6000 in Savings for 5 years
Maintenance Contract renegotiated in 2009 to remain Static for FYE2012
($2252)
LED Holiday Lighting Cost Savings ($3500 + cost savings)(replacement plan completed)
BUILD Signage ($5,000)
Livernois –Pinecrest Streetscape partially ($125,000)p p ydeferred to 2013
($ , )
Wayfinding Phase II Reduction ($65,000)
Pedestrian Alley Lighting ($10,000)Pedestrian Alley Lighting ($10,000)
Market Analysis deferred to 2013 ($25,000)
HOW THE DDA GIVES BACKHARD COSTS
CONTRIBUTIONS TO CITY $93 454 50
2012
CONTRIBUTIONS TO CITY $93,454.50
Allen & 9 Reconstruction (no $75,000city funds)
Holiday Light Utilities & Public Property such as Dumpsters
$11,000 Property such as Dumpsters
City Motor Pool Contribution (NEW)
$1575
Appearance Review Management
142 hours = $2,546.50
HOW THE DDA GIVES BACK
HARD COSTS & REDUCES COSTS
TOTAL DDA REDUCTIONS FYE2012
$44,452 = 13%
TOTAL CITY BURDEN C O 2012
$90,121.50 = 28%REDUCTION FYE2012
GRAND TOTAL 41%GRAND TOTAL REDUCTION
41%
ADDITIONAL OPTIONS FOR HARD COSTS
• Insurance Costs of @$1500 for Property and Errors & OmissionsErrors & Omissions
• Annual TIA Contribution $2,333
Cit Ad i F f Fi (1% f N T• City Admin Fees for Finances (1% of Non‐Tax Revenue) & Payroll (1% of Pensions) $550
HEADLEE OVERRIDEOVERRIDE
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 ($627.89)($ )
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 DDA
LOSS OF OVER ‐$250 965 IN HARD CASH IN YEAR 1
• $100,095 Revenue Loss from Other Taxing Jurisdictions
LOSS OF OVER ‐$250,965 IN HARD CASH IN YEAR 1& ‐$345,238 YEAR TWO
$ , 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 promotethat we support and promote
IMPACT OF ELIMINATING THE DDA
• Loss of Downtown Identity & Metro Area PresencePresence
IMPACT OF ELIMINATING THE DDA
• Loss of Business Retention and Recruitment Effortsand Recruitment Efforts
IMPACT OF ELIMINATING THE DDA
• Loss of Over 40 volunteers and ability to manage themmanage them
IMPACT OF ELIMINATING THE DDA
• Loss of Physical Building ImprovementsImprovements – Since 2000 over 75% of downtown buildingsdowntown buildings rehabilitated
IMPACT OF ELIMINATING
• Loss of
THE DDA
• 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, InfrastructureImprovements 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 to supportpp
• 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 di t i t ti l t l f l i t ti t tidistrict, an essential tool for leasing vacant properties, contacting 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 forordinances, 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 etcstreetscapes, 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 AnnuallyPLUS Over 10,000 hours of Management (Salary & V l t ) f D t l f $213 751Volunteer) of Downtown, a value of $213,751
TOTAL OF: $407,751TOTAL OF: $407,751
IMPACT OF ELIMINATING THE DDA
• ANNUAL INCURRED COSTS: $407,751• ANNUAL REVENUE LOSS AVG. $298,102ANNUAL REVENUE LOSS AVG. $298,102
• TOTAL ANNUAL LOSS: $751,853• NET ANNUAL LOSS: $385,880
FLASHBACKTO 1990s