Ferndale DDA Budget Presentation FYE2012

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


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


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


• Loss of 36 DDA‐run Special Events & over 50 that we support and promotethat we support and promote


• Loss of Downtown Identity & Metro Area PresencePresence


• Loss of Business Retention and Recruitment Effortsand Recruitment Efforts


• Loss of Over 40 volunteers and ability to manage themmanage them


• 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


• Loss of Complete Streets/Capital Improvements to Streetscapes, InfrastructureImprovements to Streetscapes, Infrastructure (See Capital Plan List)


• 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


• 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.


• 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


• 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

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Ferndale DDA Budget Presentation FYE2012

Economy & Finance

Transcript of Ferndale DDA Budget Presentation FYE2012