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[1. CALL MEETING TO ORDER]
IT'S 6 O'CLOCK.WE'LL CALL THIS MEETING TO ORDER.
THIS IS THE SEPTEMBER 1ST, 2026 REGULAR MEETING OF THE CHARTERED TOWNSHIP BOARD OF THE CHARTERED.
OUR FIRST ITEM ON THE AGENDA THIS EVENING IS THE PLEDGE OF ALLEGIANCE.
WILL THOSE WHO ARE ABLE PLEASE RISE AND JOIN US FOR THE PLEDGE? I PLEDGE ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA AND TO THE REPUBLIC FOR WHICH IT STANDS, ONE NATION, UNDER GOD, INDIVISIBLE, WITH LIBERTY AND JUSTICE FOR ALL.
ITEM 3 ON OUR AGENDA IS ROLL CALL.
WILL CLERK DEMAS PLEASE CALL THE ROLL.
THANK YOU VERY MUCH. ALL RIGHT, NEXT ITEM IS PRESENTATIONS. WE
[4. PRESENTATIONS ]
HAVE TWO PRESENTATIONS THIS EVENING. FIRST UP IS OUR NEW OKEMOS PUBLIC SCHOOL SUPERINTENDENT, MATT OLSON, IF YOU'D LIKE TO COME AND SPEAK.TO US FROM THE PODIUM IF YOU WOULD.
SO, THANK YOU VERY MUCH, BOARD, TRUSTEES FOR HAVING ME HERE TODAY AND FOR THE WELCOME.
I APPRECIATE THE OPPORTUNITY TO ADDRESS YOU ALL AND JUST REALLY WANT TO JUST APPRECIATE.
IN GENERAL THE WELCOME I'VE GOTTEN FROM SO MANY OF YOU INDIVIDUALLY, NOT JUST TONIGHT,.
BUT IN OTHER SPACES AND SUCH WHERE WE'VE HAD A CHANCE TO MEET.
THE COMMUNITY IN GENERAL HAS BEEN INCREDIBLE TO THE NEW GUY WHO JUST MOVED INTO BRIARWOOD.
AS A PROUD NEW MERIDIAN TOWNSHIP RESIDENT, I JUST WANT TO THANK YOU ON BEHALF OF MY FAMILY.
IN TERMS OF WHAT'S HAPPENING, I HOPE YOU'LL EXCUSE JUST THE INFORMALITY OF THIS.
I'M STILL VERY MUCH GETTING MY FEET ON THE GROUND SO I DON'T HAVE LIKE A SLIDE DECK.
AND A PRESENTATION THAT'S A REAL FORMAL FOR YOU TODAY.
BUT I DO WANT TO JUST KIND OF GIVE YOU A LITTLE BIT OF AN IDEA OF WHAT I'M SEEING HAPPENING.
AS I'M GETTING UP TO SPEED ON THINGS.
AS YOU KNOW, OKEMOS PUBLIC SCHOOLS IS IN THE MIDST OF A REALLY AMAZING COMMUNITY-SUPPORTED.
$275 MILLION BOND PROJECT AND WE JUST, I'M SO PROUD TO BE ABLE TO SWOOP IN AT THE LAST.
MINUTE AND JUMP INTO THE GLORY OF THIS.
YOU KNOW, I GIVE SO MUCH CREDIT TO MY PREDECESSORS AND ALL THE FOLKS, INCLUDING SOME OF YOURSELVES.
AT THIS TABLE FOR THE HARD WORK ON THIS.
WE JUST OPENED CHIPPEWA MIDDLE SCHOOL VERY SUCCESSFULLY.
AS YOU KNOW, WITH A $100 MILLION BOND PROJECT, THERE'S ALL SORTS OF THINGS THAT CAN GO WRONG.
AND DELAY IT AND WE ACTUALLY ENDED UP REALLY VERY WELL OVERALL.
THE BUILDING WAS, I'LL CALL IT 98% OPEN.
THE ONLY THING THAT WE WERE STILL JUST PUTTING THE FINISHING TOUCHES ON ARE THE AUDITORIUM.
AND WE FINISHED UP THE AUXILIARY GYM LITERALLY THE DAY BEFORE KIDS GOT IN THE DOOR.
SO JUST AMAZING WORK BY OUR CONTRACTOR FRIENDS.
SO NEW CHIPPEWA IS REALLY THE CENTERPIECE AND THE COMMUNITY TURNOUT WAS ABSOLUTELY INCREDIBLE.
I'VE BEEN AROUND FOR A LITTLE WHILE.
MY HAIR'S A LITTLE GRAYER AND A LITTLE BIT OF IT'S GONE.
YOU CAN TELL THAT THIS IS NOT MY FIRST RODEO.
I'VE BEEN IN EDUCATION 27 YEARS, SO I'VE SEEN A LOT OF EVENTS LIKE THIS.
AND OKEMOS, I SAID I WANT TO START LIKE A NEW BUMPER STICKER.
IT JUST SAYS OKEMOS SHOWS UP BECAUSE MAN, DO THEY.
I WAS JUST SUPER IMPRESSED WITH THE COMMUNITY.
JUST LOVED IT OUTBOARD FOR THAT PROJECT.
WE'RE ALSO IN THE MIDDLE OF TWO OTHER, AS YOU CAN IMAGINE IF YOU'VE BEEN DRIVING AROUND A LITTLE BIT,.
ONE IS OUR BASEBALL SOFTBALL COMPLEX, A NEARLY $10 MILLION PROJECT OVER AT THE OKEMOS HIGH SCHOOL.
UP UNTIL NOW, IT'S LOOKED LIKE A LOT OF DIRT MOVING AROUND.
[00:05:01]
TO THE POINT WHERE NOW THERE'S, YOU'LL SEE THE BRICKS ARE STARTING TO GO UP FOR DUGOUTS,.THAT WE'RE HOPING, IT WILL BE READY FOR THE NEW SEASON.
WE'RE HOPING TO HAVE THE VAST MAJORITY OF IT DONE BEFORE SNOW FLIES FOR OBVIOUS REASONS,.
BECAUSE THAT'S JUST A LOT EASIER TO DO IN THAT EARLY STAGE.
AND OUR CONSTRUCTION PARTNERS ARE IN GOOD SHAPE THERE.
THE OTHER ONE, OF COURSE, IS OUR CORNELL ELEMENTARY PROJECT.
IF YOU'VE DRIVEN DOWN CORNELL ROAD LATELY, YOU'LL SEE THAT THE OLD CORNELL ELEMENTARY IS NO LONGER THERE.
THE DEMOLITION HAS TAKEN PLACE, CONSTRUCTION FENCING'S UP, AND FOOTINGS ARE GETTING READY TO GO ON THE GROUND THERE.
SO AGAIN, JUST SEEING THESE THINGS ACTUALLY HAPPEN IS REALLY AN AMAZING, AMAZING THING.
SO BIG TIME, JUST APPRECIATION FOR ALL THE PEOPLE MAKING THAT HAPPEN.
I DO WANT TO JUST SAY THANK YOU AS THE NEW PERSON IN THE SPACE FOR THE PARTNERSHIPS THAT YOU ALL HAVE DONE.
I'VE BEEN REALLY, I'VE HAD A CHANCE TO MEET WITH SOME OF YOUR STAFF, SOME OF THE LEADERS.
MR. DEMPSEY WAS KIND ENOUGH TO GRANT ME SOME TIME TO GET TO KNOW YOU ALL A LITTLE BIT.
THE PARTNERSHIPS BETWEEN OUR PARKS AND REC AND GROUNDS FOLKS, THE PARTNERSHIP WITH THE SENIOR CENTER,.
THE PARTNERSHIP WITH YOUR POLICE AND FIRE AND OUR SAFETY AND SECURITY IS JUST SOMETHING THAT, AGAIN, I'VE BEEN AROUND.
I DON'T TAKE THOSE THINGS FOR GRANTED.
THEY DON'T HAPPEN EVERYWHERE, SO I'M REALLY APPRECIATIVE TO SEE ALL THAT.
AND I JUST WANT TO REALLY SAY I'M LOOKING FORWARD TO THE FUTURE.
YOU KNOW, THERE'S A LOT OF THINGS I KNOW WE NEED TO CONTINUE TO BE GREAT PARTNERS ON.
THE SENIOR CENTER, I KNOW, IS A BIG QUESTION.
WE'VE GOT THE NEXT COUPLE OF YEARS.
BEYOND THAT, I KNOW WE HAVE WORK TO DO.
AND I KNOW I STAND READY ON BEHALF OF OKEMOS SCHOOLS, AND MY BOARD IS VERY MUCH SUPPORTIVE OF TRYING TO WORK WITH.
AND BE PART OF THAT CONVERSATION AND MAKE SURE THAT WE'RE DOING RIGHT BY OUR ENTIRE COMMUNITY,.
NOT JUST OUR K-12 WE WANT TO TAKE THAT RESPONSIBILITY ON.
AND I DO WANT YOU ALL TO KNOW, IF YOU'RE NOT AWARE ALREADY, WE'RE ENGAGING IN CONVERSATIONS,.
AND WE'VE ASKED SEVERAL OF YOU TO BE DIRECTLY INVOLVED IN CONVERSATIONS ABOUT OUR NEXT STEPS AS A DISTRICT.
WE HAVE SOME PROJECTS THAT ARE STILL IN THE HOPPER THAT NEED TO BE ADDRESSED.
WE'VE GOT A 100-YEAR-OLD BUILDING WHERE OKEMOS PUBLIC MONTESSORI CURRENTLY IS THAT IS STRUGGLING,.
THAT WE'VE GOT TO FIGURE OUT A BETTER LONG-TERM SOLUTION FOR THOSE KIDS,.
AS WELL AS AN EARLY CHILDHOOD CENTER IN EDGEWOOD WHERE THE BUILDINGS ARE JUST REALLY REACHING THE END OF THEIR USEFUL LIFE.
AND THINKING ABOUT WHAT ARE WE GOING TO DO WITH THOSE PARTICULAR GROUPS, KNOWING THE ASSETS THAT WE HAVE IN THE TOWNSHIP.
SO WE'RE STARTING TO FORM A STEERING COMMITTEE.
I KNOW IT'S GOING TO BE REPRESENTATIVE OF THE REGION.
I JUST WANTED TO MAKE SURE THAT YOU ALL WERE AWARE AS A TOWNSHIP BOARD OF THAT WORK,.
AND THANKS TO THOSE OF YOU WHO'VE STEPPED FORWARD TO BE HELPFUL IN THAT SPACE.
AND IN THE END, I JUST WANTED TO COME HERE AND GIVE YOU A LITTLE BIT OF THAT BRIEF SYNOPSIS.
AND IF YOU HAVE ANY QUESTIONS FOR ME, I'D BE HAPPY TO DO THE BEST I CAN TO ANSWER ANY OF THOSE AT THIS TIME.
THANK YOU VERY MUCH. BOARD MEMBERS, ANY QUESTIONS? TRUSTEE WILSON, GO AHEAD.
BECAUSE WE HAD A BOARD MEETING THE SAME NIGHT AS YOUR OPEN HOUSE, NONE OF US COULD ATTEND.
WE WONDER WHETHER WE COULD HAVE A QUICK TOUR AT SOME POINT IN THE FUTURE.
I WOULD BE HAPPY TO ARRANGE SOMETHING LIKE THAT.
ABSOLUTELY. SO I DON'T KNOW IF MAYBE...
YEAH, BETWEEN MR. DEMPSEY AND I, WE CAN TOUCH BASE AND FIGURE OUT A TIMELINE ON THAT.
I DON'T... IT'S SOMETHING TO BE SEEN, AND I'D BE HAPPY TO MAKE THAT HAPPEN FOR YOU, FOR SURE.
MYSELF OR PRINCIPAL NOBLE, I'M SURE, WOULD BE HAPPY TO DO SOMETHING FOR YOU.
I HAVE A QUESTION. HOW DID THE TRANSITION FROM CORNELL TO CHIPPEWA GO FOR THE ELEMENTARY STUDENTS? THAT'S A VERY GOOD QUESTION, AND I WILL SAY, REMARKABLY WELL, BETTER THAN I EXPECTED.
CORNELL... THAT CORNELL TRANSITION WAS A NERVOUS POINT FOR ME,.
BECAUSE CHIPPEWA IS AN OLD BUILDING, AND IT'S GOT A LOT OF ISSUES.
IF YOU WERE TO... I WALKED IN THAT BUILDING ON THE FIRST DAY OF SCHOOL,.
AND IT KIND OF TOOK MY BREATH AWAY, TO BE HONEST WITH YOU,.
SEEING WHAT THOSE TEACHERS AND STAFF AND PTO MEMBERS.
AND TALK ABOUT A COMMUNITY COMING TOGETHER TO SHINE UP A PIECE OF COAL INTO A DIAMOND.
YOU WOULD NOT RECOGNIZE CHIPPEWA MIDDLE SCHOOL IF YOU WALKED IN THERE RIGHT NOW AS THE TEMPORARY CORNELL.
THEY'VE REALLY DONE SOME GREAT WORK, SO I FEEL GOOD ABOUT THOSE KIDS BEING THERE.
THE NEW PRINCIPAL, LINDSAY PRICE, IS A LONGTIME STAFF MEMBER THERE.
SHE'S GOT THE RESPECT OF HER COLLEAGUES AND THE CONFIDENCE, AND I THINK IT'S GONE REMARKABLY WELL,.
IT'S DEFINITELY SOMETHING THAT, YOU KNOW, I WISH THERE WAS A BETTER SOLUTION,.
BUT WE ALL KNOW EYES ON THE PRIZE IN TWO YEARS.
I'VE SEEN THE RENDERINGS THAT NEW CORNELL IS GOING TO BE SOMETHING SPECIAL.
WELL, I AVOID KENNEWON DURING DROP-OFF AND PICK-UP.
GETTING THREE SCHOOLS THERE RATHER THAN TWO MAKES FOR AN INTERESTING TRAVERSE.
YOU KNOW, I'VE HEARD... SO I LITERALLY... I'M IN BRECKENRIDGE RIGHT
[00:10:02]
ACROSS THE STREET.I'M JUST DOWN THE STREET FROM YOU.
OH, REALLY? OKAY. I DIDN'T KNOW WE WERE NEIGHBORS.
SO, YEAH, I'VE CHECKED IT OUT, AND IT'S HONESTLY ALL THINGS CONSIDERED.
THERE'S ABOUT 20 MINUTES, YOU KNOW, WHERE THERE'S A LINEUP AND THERE'S SOME TRAFFIC,.
BUT IT'S REALLY... IT'S PRETTY SHORT AND IT'S PRETTY WELL ORGANIZED.
THEY'VE GOT A GOOD TRAFFIC FLOW, A TRAFFIC PATTERN GOING IN AND OUT.
IT'S... I WOULD SAY... I WANT TO SAY IT'S NOT NEGLIGIBLE,.
BUT I THINK IT'S... I'VE NOT SEEN A DROP-OFF PICK-UP LINE IN A NEIGHBORHOOD SCHOOL THAT'S NOT BEEN ANY PROBLEM.
I MEAN, LIKE, THIS IS A UNIVERSAL ISSUE.
BUT I WOULDN'T SAY THAT IT'S REMARKABLE COMPARED TO PLACES I'VE BEEN AND WHAT I'VE SEEN.
I THINK THE STAFF AND OUR SAFETY AND SECURITY FOLKS AND PEOPLE THAT ANALYZED HOW TO DO IT DID A REALLY NICE JOB.
SO I KNOW THEY WORKED HARD AT IT, SO CONGRATULATIONS ON YOUR TRANSITION.
LIKE I SAID, I KIND OF JUST CAME IN AT THE VERY TAIL END.
I CAN'T TAKE CREDIT. THE STAFF AND FOLKS WHO DID IT DID A REMARKABLE JOB.
TAKE ANY CREDIT YOU CAN CLAIM, BECAUSE YOU'RE GOING TO GET TO BLAME.
HEY, I ALWAYS SAY THAT THE GOOD SUPERINTENDENT DEFLECTS THE PRAISE AND ACCEPTS THE BLAME.
SO I REALLY TRY TO LIVE BY THAT.
OTHER QUESTIONS? WELL, THANK YOU SO MUCH FOR COMING.
AND WE APPRECIATE THE PARTNERSHIP THAT WE'VE HAD WITH OKEMOS SCHOOLS.
FOR MY TIME HERE AND WELL BEFORE THAT, AS YOU POINT OUT,.
WE'VE GOT A LOT OF SHARED THINGS THAT WE WORK ON BETWEEN OUR ATHLETIC FIELDS AND OUR FACILITIES AND YOURS.
AS WELL AS THE SENIOR CENTER, OF COURSE, WHICH HAS BEEN ON EVERYONE'S MIND A LOT OVER THE LAST FEW YEARS.
AND WHAT THE FUTURE WILL HOLD FOR THAT.
AND SO I'M LOOKING FORWARD TO SOME FRUITFUL DISCUSSIONS AS WE TRY TO NAVIGATE WHAT THE FUTURE LOOKS LIKE FOR OKEMOS SCHOOLS.
AND WHAT, IF ANY, PARTNERSHIPS WE CAN CONTINUE AND GROW OVER THE NEXT DECADE.
AND I'LL ALSO POINT OUT THAT I KNOW THAT A NUMBER OF US WERE ALSO APPRECIATIVE.
YOU WALKED IN IN THE MIDST OF A VERY CHALLENGING COLLECTIVE BARGAINING SITUATION.
I'M VERY APPRECIATIVE OF HOW DEFTLY AND QUICKLY YOU WORKED WITH THE TEACHERS TO MAKE SURE THAT THEY WERE WORKING WITH THE CONTRACT.
AND SO JUST AN ADDED THANKS TO YOU FOR YOUR SPEED AND EFFICACY IN WORKING THROUGH THAT.
YOU'RE ALWAYS WELCOME HERE AND WE'D LOVE TO HAVE YOU.
OUR NEXT PRESENTATION THIS EVENING IS ITEM 4B, THE 2027 BUDGET AND FIVE YEAR FORECAST.
THAT'S A WAY MUCH ANTICIPATED PRESENTATION EVERY YEAR.
SO WE'LL TURN THINGS OVER TO MANAGER DEMPSEY TO FIND OUT WHAT OUR FINANCIAL FUTURE LOOKS LIKE.
LET'S SEE IF WE CAN GET GOING HERE.
IT'S MY PLEASURE THIS EVENING TO PRESENT TO YOU, GIVE YOU AN OVERVIEW OF THE RECOMMENDED 2027 BUDGET.
IT'LL BE AN OVERVIEW OF SOME OF THE KEY HIGHLIGHTS.
OBVIOUSLY, YOU RECEIVE THE FULL DOCUMENT VIA EMAIL ON FRIDAY.
AND THEN EVERYBODY SHOULD HAVE THEIR NICE BINDER THAT WAS PUT TOGETHER AS WELL.
SO THAT'S AVAILABLE FOR YOU IN ADDITION TO THE DIGITAL VERSION.
BEFORE I JUMP INTO THINGS, THOUGH, I DO WANT TO START BY JUST ACKNOWLEDGING STAFF.
BERNADETTE BLONDE, OUR FINANCE DIRECTOR.
YOU KNOW, BERNIE SPENDS A LOT OF HOURS ON THIS BUDGET AND REALLY APPRECIATE ALL THE WORK THAT SHE'S DONE.
BUT SO DO ALL OF OUR DIRECTORS ACROSS THE ORGANIZATION.
EVERY DEPARTMENT SPENDS A LOT OF TIME, YOU KNOW, WORKING ON THEIR INDIVIDUAL BUDGETS AND GETTING THINGS TOGETHER,.
WORKING WITH BERNIE AND MYSELF TO REFINE THINGS AND THEN BE ABLE TO PRESENT THIS DOCUMENT TO YOU.
WE APPRECIATE EVERYBODY'S COOPERATION AND EFFORTS IN DOING THAT.
SO I JUST WANTED TO SAY THANKS TO ALL OF THEM FOR THAT.
BEFORE WE JUMP INTO 27 NUMBERS, JUST A COUPLE OF HIGHLIGHTS WHERE THINGS ARE AT FOR 26.
OF COURSE, IT'S BEEN A BUSY YEAR AS IT HAS THE PRIOR FEW BEFORE THAT.
RIGHT. WHEN ISN'T IT? LOCAL ROAD PROGRAM CONTINUES TO MAKE PROGRESS.
SEVEN AND A HALF MILES RECONSTRUCTED THIS YEAR.
YOU KNOW, WE'RE A FEW WEEKS AWAY YET FROM WRAPPING UP PROJECTS, BUT GETTING CLOSER LATER THIS FALL.
IT HAS A LITTLE SQUARE PROJECT UNDER CONSTRUCTION.
IF YOU'RE LIKE ME, YOU'VE PROBABLY HEARD ABOUT THIS FROM PEOPLE THAT YOU RUN INTO.
A LOT OF FOLKS ARE ASKING ME, WOW, WHAT'S HAPPENING AT THE CORNER THERE? SO IT'S GREAT, RIGHT? IT'S BEING ACKNOWLEDGED AND RECOGNIZED THAT THAT CORNER IS FINALLY UNDER DEVELOPMENT AND THAT PROJECT'S MOVING AHEAD.
THE NEARBY AMERICAN HOUSE PATHWAY EXTENSION OF THE PATHWAY SYSTEM NOW COMPLETED AND OPERATIONAL.
[00:15:02]
COLLECTORS TO THE NETWORK FOR OUR UTILITY BILLING.A LOT OF EMPLOYEE TRAFFIC THIS YEAR.
OF COURSE, THE BIG BUILD GRANT ANNOUNCEMENT THAT WE'VE HAD, THE TWO LISTENING SESSIONS THAT WERE COMPLETED.
AND THEN WE HAVE ONE LEFT IN OCTOBER, TWO ELECTIONS DOWN AND ONE MORE TO GO FOR THIS YEAR.
AND OF COURSE, THE MYRIAD OF SUCCESSFUL EVENTS LISTING JUST A FEW HERE.
WE HAVE A LOT MORE THAT'S BEEN PROGRAMMED AND ONGOING FROM OUR PARKS AND REC DEPARTMENT IN PARTICULAR.
WHAT THIS DOESN'T CAPTURE, OF COURSE, THOUGH, IS THE DAY-TO-DAY WORK THAT HAPPENS ACROSS THE ORGANIZATION.
AND WHETHER IT'S EMERGENCY RESPONSES, WHETHER IT'S DEALING WITH CODE ENFORCEMENT ISSUES OR PLANNING AND ZONING ISSUES,.
WHETHER IT'S ACCEPTING PAYMENTS FOR TAXES OR UTILITY BILLS, ALL OF THOSE THINGS THAT WE DO DAY IN AND DAY OUT.
FROM ALL OF OUR EMPLOYEES TO MAKE THIS HAPPEN.
THE TOTAL BUDGET IS JUST OVER $68.7 MILLION ACROSS ALL OF OUR FUNDS.
SO THAT'S NOT JUST THE GENERAL FUND, BUT THAT ALSO INCLUDES OUR ENTERPRISE FUNDS, WATER AND SEWER, OUR COMPONENT UNIT FUNDS,.
THE DOWNTOWN DEVELOPMENT AUTHORITY, CORRIDOR IMPROVEMENT AUTHORITY, BROWNFIELD REDEVELOPMENT AUTHORITY,.
ALL OF OUR SPECIAL MILLAGE FUNDS LIKE THE PATHWAYS FUND, THE PARK MILLAGE, ET CETERA.
FOR THE GENERAL FUND ITSELF, WE'RE AT JUST OVER $31.1 MILLION IN EXPENSES WITH REVENUE OF ABOUT $30.2 MILLION.
SO WE DO HAVE A SHORTFALL IN LOOKING AT A FUND BALANCE USE OF JUST OVER $948,000.
I'LL SPEAK MORE ON THAT AS WE GO THROUGH THIS, BUT THAT'S THE BIG 30,000-FOOT VIEW IN TERMS OF DOLLARS.
KEY ISSUES FOR 27, PERSONNEL COSTS CONTINUE TO PRESENT PRESSURES FOR US.
WE HAVE ONGOING UNFUNDED PENSION LIABILITY ISSUES.
HEALTHCARE COSTS ARE ALWAYS A BIG QUESTION, ALTHOUGH WE HAVE A LITTLE BIT OF GOOD NEWS THERE THIS YEAR, WHICH IS GOOD TO HEAR.
AND THEN, OF COURSE, ONGOING DIFFERENTIAL BETWEEN TAXABLE VALUE AND ASSESSED VALUE,.
SOMETHING THAT I ALWAYS LIKE TO HIGHLIGHT BECAUSE IT'S A FRUSTRATING ISSUE, NOT ONE THAT WE HAVE A LOT OF ABILITY TO CHANGE,.
BUT I THINK IT'S IMPORTANT FOR RESIDENTS TO KNOW ABOUT.
PERSONNEL COSTS CONTINUE TO BE A CHALLENGE HERE AT THE ORGANIZATION.
WE WERE JUST BELOW $18 MILLION IN PERSONNEL COSTS BACK IN 22.
WE ARE GOING TO BE JUST ABOVE $24 MILLION COMING UP FOR THE 27 BUDGET.
SO THOSE COSTS CONTINUE TO ESCALATE.
AS WE ALL KNOW, THE BOARD, PRIOR BOARDS HAD TO TAKE ACTION, PARTICULARLY WITH PUBLIC SAFETY.
WE SIMPLY WERE NOT ABLE TO FILL POLICE POSITIONS IN PARTICULAR, BUT ALSO FIRE POSITIONS.
WE WERE NOT COMPETITIVE IN THE REGION, SO SALARIES HAD TO INCREASE.
BECAUSE OF ALL THE HIRES THAT WE HAD IN RECENT YEARS TO FILL THOSE POSITIONS,.
WE DO HAVE A YOUNGER WORKFORCE THAT IS WORKING UP THROUGH THEIR STEPS.
SO IN ADDITION TO COST OF LIVING INCREASES, WE HAVE STEP INCREASES.
WE ALSO HAVE PEOPLE PROGRESSING THROUGH HEALTHCARE PLANS.
THEY MIGHT START WITH US UNDER A SINGLE PLAN, AND THEN AS THEY GET MARRIED, THEY MIGHT GO TO A DOUBLE PLAN,.
AND THEN IF THEY HAVE CHILDREN, THEN THEY'RE IN A FAMILY PLAN.
SO THOSE COSTS CONTINUE TO GO UP IN ADDITION TO OUR HEALTHCARE PREMIUM EXPENSES.
SO WE HAVE THOSE ACROSS-THE-BOARD PRESSURES.
AND THEN YOU CAN SEE THE LINE WHICH SHOWS THE PERCENTAGE OF GENERAL FUND COSTS THAT THE PERSONNEL COSTS ARE.
SO WE'RE AT ABOUT JUST UNDER 78 PERCENT OF TOTAL GENERAL FUND BUDGET COSTS BEING PERSONNEL.
SO THAT'S GROWING, AND THEN AS A RESULT, WE'RE NOT ABLE TO DO AS MUCH ON THE CAPITAL IMPROVEMENT SIDE.
AS SOME OF THE OTHER ACTIVITIES, AT LEAST WITH THE GENERAL FUND.
PENSION CONTRIBUTIONS CONTINUE TO BE A SIGNIFICANT PORTION OF THAT $24 MILLION.
SO OUR MINIMUM REQUIRED CONTRIBUTION WITH MERS FOR NEXT YEAR IS JUST UNDER $4.5 MILLION.
WE ARE CONTINUING TO MAKE THE SUPPLEMENTAL PAYMENT OF $1.5 MILLION SPLIT BETWEEN POLICE AND FIRE TO HELP CATCH US UP.
THAT'S A TOTAL CONTRIBUTION OF $5.9 MILLION.
THE GOOD NEWS ON THIS IS THAT EXTRA $1.5 MILLION, AS WELL AS SOME OF THE OTHER SUPPLEMENTAL CONTRIBUTIONS IN RECENT YEARS,.
IS MAKING HEADWAY ON THE PLAN.
SO BEFORE YOU ARE THE PENSION FUNDING LEVELS OF THE FIVE LARGEST CATEGORIES,.
WE SORT OF ROLL UP SOME OF OUR DIVISIONS INTO THIS.
THE ACTUARIAL STUDY THAT IS PROVIDED BY MERS PROVIDES ALL THE DETAIL.
THAT WAS PROVIDED TO THE BOARD A FEW MONTHS AGO.
BUT IF YOU LOOK AT THAT BOTTOM LINE NUMBER OF THE COMBINED FUNDS, WHEN YOU LOOK AT THE SUPPLEMENTAL OR THE SURPLUS FUNDS,.
WE ARE NOW AT ABOUT 80 PERCENT FUNDED.
[00:20:02]
FOR US, RIGHT? WE WERE AT 58 PERCENT FUNDED BACK IN 2016 JUST PRIOR TO THE PUBLIC SAFETY,.THE ADDITIONAL MILLAGE WHERE WE STARTED ALLOCATING THAT EXTRA $1.5 MILLION.
SO IT IS HELPING US MAKE PROGRESS.
THE LIGHT, I THINK, IS AT THE END OF THE TUNNEL FOR THIS ONE.
HOW FAR DOWN IS IT? ACCORDING TO MERS, IF WE WANTED TO GET TO 100 PERCENT OVER THE NEXT 10 YEARS,.
WE WOULD NEED TO CONTRIBUTE AN ADDITIONAL $900,000.
NOW, WE'RE EXCEEDING THAT CURRENTLY, BUT THE ASSUMPTION IS THAT WE'RE ALWAYS GOING TO HIT THEIR RETURN ON INVESTMENT TARGET,.
WHICH IS ABOUT 6.79 PERCENT RIGHT NOW, I THINK, FOR THE LAST VALUATION.
OF COURSE, WE KNOW SOME YEARS THAT'LL BE MAYBE HIGHER, OTHER YEARS THAT COULD BE LOWER.
AND THE REALITY OF THAT IS WE JUST DON'T KNOW, RIGHT? WE HAD HOPED, I THINK ORIGINALLY THE TOWNSHIP DID, THAT BACK IN 2016, 2017, WHEN THE MILLAGE WAS PASSED,.
THAT WE WOULD BE AT 100 PERCENT AT THIS POINT.
BUT IT'S A GOOD CHANCE THAT WE CAN GET THERE IN THE NEXT DECADE, POTENTIALLY SOONER.
IF RETURNS ARE BETTER, MAYBE LONGER.
JUST TO CLARIFY ON THAT LAST SLIDE.
IT SAYS THAT AN ADDITIONAL $900,000, THIS IS WE ARE PUTTING IN $1.5 MILLION,.
SO WE ARE EXCEEDING THE ADDITIONAL $900,000 THAT MERS IS SAYING WE WOULD NEED OVER THE NEXT 10 YEARS.
WE YEAH, WE COULD POTENTIALLY ACCELERATE.
OKAY, SO IT'S NOT AN ADDITIONAL $900,000.
THAT'S WHAT WE'RE ALREADY DOING.
SO IT WOULD BE THE ADDITIONAL BEYOND THAT $4.4 MILLION NUMBER.
FOR PRELIMINARY HEALTH CARE COSTS, SO THE GOOD NEWS HERE IS THAT THEY'RE ACTUALLY PROJECTED.
TO BE SLIGHTLY LOWER, SHOCKINGLY, THAN WHAT WE HAVE FOR THIS YEAR.
IF YOU REMEMBER, WE HAD A BIG JUMP, A 25 PERCENT INCREASE GOING INTO THIS YEAR,.
WHICH WAS A STAGGERING CHANGE.
YOU KNOW, WE HAD SEEN DOUBLE-DIGIT INCREASES FOR A NUMBER OF YEARS,.
FORTUNATELY, DUE TO RAISING OUR STOPGAP LOSS UP TO $75,000,.
WHICH IS CLOSER TO INDUSTRY STANDARDS AND HAVING FEWER LARGER CLAIMS,.
THAT'S BENEFITED US AND WILL HELP AT LEAST GIVE US A BREATHER FOR THIS YEAR.
WE DO HAVE A RENEWAL MEETING COMING UP HERE IN A COUPLE WEEKS,.
SO WE'LL GET MORE SPECIFIC DETAILS THERE, BUT THIS IS A LITTLE BIT OF A BRIGHT SPOT.
IN WHAT OTHERWISE IS A CHALLENGING YEAR.
I MENTIONED EARLIER TAXABLE VALUE, ASSESSED VALUE, NOT A LOT WE CAN DO HERE.
AGAIN, THE DIFFERENTIAL, FOR THOSE NOT FAMILIAR,.
THE TAXABLE VALUE IS WHAT WE PAY OUR TAXES ON AS RESIDENTS THAT MIGHT OWN PROPERTY HERE.
THE ASSESSED VALUE IS ACTUALLY, IN THEORY, SHOULD BE ONE-HALF OF MARKET VALUE.
BECAUSE OF PROPOSAL A RESTRICTIONS AND LIMITATIONS ON GROWTH,.
TAXABLE VALUE WILL LAG ON PROPERTIES, PARTICULARLY THOSE THAT HAVE BEEN OWNED FOR A LONG TIME.
SO IF YOU'VE BEEN IN YOUR HOME FOR A LONG TIME, THAT'S GOING TO BE A LARGER GAP.
IF YOU'RE SOMEBODY LIKE MYSELF WHO BOUGHT A PROPERTY WITHIN THE PAST YEAR,.
LIKE THE SUPERINTENDENT, THAT GAP IS NONEXISTENT, ESSENTIALLY.
SO WE'RE PAYING THAT FULL ASSESSED VALUE.
THE DIFFERENTIAL ACROSS THE COMMUNITY, IF YOU LOOK AT THAT,.
RESULTS IN US LOSING ABOUT $4.3 MILLION IN GENERAL FUND REVENUE.
SO IF ALL OF OUR PROPERTIES WERE UNCAPPED,.
WE WOULD HAVE ANOTHER $4.3 MILLION TO UTILIZE EVERY YEAR IN THE BUDGET.
THAT WOULD NOT ONLY ADDRESS OUR ISSUE THIS YEAR, BUT THEN SOME, RIGHT? THE REALITY OF THAT, THOUGH, THAT'S NOT HOW IT WORKS, RIGHT? THEY DON'T BECOME UNCAPPED UNTIL A PROPERTY SELLS.
AND THE STATE WAS LOOKING AT PROPOSAL A REFORM THIS YEAR,.
WHICH MIGHT HAVE ACTUALLY LOCKED IN TAXABLE VALUE AND DONE AWAY WITH UNCAPPING.
SO THAT ISN'T SOMETHING THAT THE MTA OR THE MICHIGAN MUNICIPAL LEAGUE.
OR WE WOULD NECESSARILY SUPPORT THAT TYPE OF REFORM.
BECAUSE OF THE IMPACT IT WOULD HAVE ON REVENUE.
GENERAL FUND SUMMARY, JUST SOME THINGS AS I, YOU KNOW,.
BECAUSE WE'RE USING FUND BALANCE, WE STARTED ESSENTIALLY WITH A $3 MILLION HOLE.
THAT WAS ALL OF STAFF'S REQUEST BASED ON REVENUE PROJECTIONS.
WE'VE IDENTIFIED A NUMBER OF SAVINGS THAT WE'RE IMPLEMENTING HERE.
THOSE START WITH DELAYING SOME CAPITAL IMPROVEMENTS.
THAT WE KNOW OUR NEEDS ABOUT A HALF A MILLION DOLLARS.
WE'RE GOING TO SPLIT OUR BSNA SOFTWARE UPGRADES BETWEEN TWO FISCAL YEARS.
BSNA IS OUR ENTERPRISE REPORTING SYSTEM THAT WE USE FOR, LIKE,.
[00:25:02]
ACCOUNTS PAYABLE, GENERAL LEDGER.WE USE IT FOR OUR BUILDING INSPECTIONS, OUR ASSESSING.
YOU KNOW, WE HAVE ESSENTIALLY ALMOST ALL THE MODULES THAT I THINK THEY OFFER.
AND USE THOSE ACROSS THE ORGANIZATION.
WE'RE DOING SOME FUND TRANSFERS.
WE HAVE REMAINING INTEREST MONEY FROM THE ARPA FUNDS.
THAT WE CAN UTILIZE FOR THE GENERAL FUND.
WE HAVE AN OLD POLICE GRANT THAT CAN BE REALLOCATED.
BASED ON THOSE DOLLARS THAT WERE AVAILABLE.
AND THEN AGAIN, THE USE OF FUND BALANCE.
NOW, I DO WANT TO TALK A LITTLE BIT ABOUT THE FUND BALANCE.
BECAUSE WE HAVE A BIT OF A STRANGE SITUATION THIS YEAR.
WITH THE FUND BALANCE NUMBERS, WE HAD A SITUATION.
WHERE THE STATE REVENUE SHARING FOR 26 CAME IN, THE FIRST PAYMENT,? WITHIN 60 DAYS OF THE LAST FISCAL YEAR.
AUDITORS SAID THAT'S GOT TO BE 25 REVENUE.
IT OVERSTATED THE REVENUE SHARING FOR 25.
BY ESSENTIALLY OVER BUDGET OF A MILLION DOLLARS.
SO WHEN WE ENDED 25, WE WERE ABLE TO CONTRIBUTE $3 MILLION TO FUND BALANCE.
A MILLION OF THAT WAS SORT OF THE LOOK BACK.
ON THIS INITIAL 26 REVENUE SHARING PAYMENT.
THE GOOD NEWS IS THAT'LL HAPPEN GOING INTO 27 FOR 26.
SO WE'RE NOT NECESSARILY AT A LOSS, BUT WE'RE ABLE TO ACTUALLY, I THINK,.
ALLOCATE THOSE DOLLARS FROM THE FUND BALANCE, AGAIN,.
WITHOUT NEGATING WHERE WE STOOD WITH OUR PRIOR FUND BALANCE,.
HENCE THE RECOMMENDATION OF DOING THAT.
NOW, IT'S ESSENTIALLY SORT OF A ONE-TIME ACCOUNTING ADJUSTMENT.
THAT WE'RE GOING TO BE ABLE TO UTILIZE HERE.
IT'S NOT SOMETHING THAT WE'RE GOING TO BE ABLE TO LOOK AT GOING FORWARD, RIGHT? BUT IT IS MONEY THAT, AGAIN, IS INTENDED FOR OPERATIONS,.
AND WE THINK THAT'S A REASONABLE USE.
GIVEN THE CHALLENGES THAT WE'RE FACING IN THIS CURRENT BUDGET YEAR.
LIKE WE HAVE IN PRIOR YEARS, NO CONTRIBUTE, LAST COUPLE YEARS ANYWAYS,.
NO CONTRIBUTION TO LOCAL ROAD FUNDING,.
NO EMPLOYEE HEALTH SAVINGS ACCOUNT CONTRIBUTIONS,.
AND NO ADDITIONAL MERS SUPPLEMENTAL PAYMENT,.
MEANING NO ADDITIONAL ABOVE THAT 1.5 MILLION.
SO THAT STAYS, BUT WE'RE NOT ADDING ANYTHING ELSE BEYOND THAT.
STAFFING CHANGES, BASED ON ALL OF THIS,.
WE ARE PROPOSING THE ADDITION OF TWO ADDITIONAL FULL-TIME STAFF POSITIONS.
ONE IS TO FILL THE FIRE INSPECTOR ROLE.
THAT'S A ROLE THAT WE EXPECT THE PERSON GOING INTO THAT.
WILL EVENTUALLY BECOME THE FIRE MARSHAL,? AND THE FIRE MARSHAL WILL RETIRE IN THE PROBABLY NOT-TOO-DISTANT FUTURE.
HOWEVER, WE ARE SEEKING FEDERAL GRANT FUNDING.
THAT WOULD COVER THAT POSITION FOR TWO YEARS.
SO WE'RE HOPEFUL THAT WE'LL BE ABLE TO COVER THAT ADDITIONAL COST.
AND THEN WE'RE ADDING AN ADDITIONAL UTILITY WORKER IN PARKS AND REC.
UNDER THE PATHWAYS FUND, THOUGH, NOT UNDER THE GENERAL FUND.
JUST GIVEN THE EXPANSION OF THAT SYSTEM AND THE DEMANDS ON STAFF.
TO MAINTAIN WHAT WE HAVE IN THE GROWING SYSTEM IS IMPORTANT TO DO THAT.
SO WE DO HAVE SOME OTHER TEMPORARY WORKER ADJUSTMENTS.
IT'S NETTING OUT AS A DECREASE, THOUGH, IN TEMPORARY WORKERS,.
AND HOPEFULLY A NET ZERO ON THE GENERAL FUND AT THE END OF THE DAY.
SO WHERE DOES THAT LEAVE US WITH FUND BALANCE PROJECTIONS? SO FOR THE GENERAL FUND, WE'RE PROJECTING TO END THE YEAR OF 27.
CAPITAL PROJECTS FUND AT JUST UNDER $740,000,.
AND THEN THE PENSION STABILIZATION FUND AT ABOUT $1.8 MILLION.
CAPITAL PROJECTS FUND WOULD BE DOWN FROM THE CURRENT YEAR,.
THE PENSION STABILIZATION FUND UP, AND THE GENERAL FUND ONE UP AS WELL.
BUT COLLECTIVELY, WELL ABOVE THE BOARD'S ESTABLISHED TARGET OF $13 MILLION.
WHEN WE TALK ABOUT THE FIVE-YEAR FORECAST SHORTLY,? ONE OF THE THINGS THAT I THINK WE'RE GOING TO WANT TO LOOK AT.
AS WE LOOK AHEAD TO WAYS TO ADDRESS SOME OF OUR LONG-TERM SHORTFALLS IS,.
YOU KNOW, HOW DO WE LOOK AT THESE FUNDS AND MAYBE READJUST.
HOW SOME OF THOSE DOLLARS ARE ALLOCATED? YOU KNOW, OUR EDITORS RAISED THE ISSUE AROUND THE PENSION STABILIZATION FUND.
THEY'RE LIKE, YOU KNOW, DO YOU REALLY WANT TO HANG ON TO THAT NOW,.
OR DO YOU JUST WANT TO ADVANCE THAT INTO MERS.
AND START TO EARN A RETURN ON THAT GREATER THAN WHAT YOU'RE DOING RIGHT NOW.
WHERE YOU'RE JUST, YOU KNOW, BASICALLY LETTING IT SIT? AND GETTING SOME MONEY MARKET RATES ON IT? SO IT'S, AGAIN, SOMETHING TO THINK ABOUT AS WE GO FORWARD.
SO SOME OF THE OTHER FUNDS I WANT TO TOUCH ON,.
BECAUSE OF THE GENERAL FUND CHALLENGES,.
NOT A WHOLE LOT IN CAPITAL PROJECTS FUND SPECIFICALLY,.
EXCEPT FOR SOME CRITICAL THINGS.
WE'RE GOING TO WRAP UP THE ELEVATOR MODERNIZATION PROJECT HERE IN THIS BUILDING.
AND THEN PUBLIC SAFETY BUILDING.
THAT'LL START THE END OF THIS YEAR, BUT CARRY OVER
[00:30:02]
INTO NEXT FISCAL YEAR AS WELL.THE PUBLIC SAFETY BUILDING GENERATOR PROJECT, UNFORTUNATELY,.
WE HAD SOMEBODY WHO ACCEPTED THEIR BID ON,.
BUT THEY NEVER FOLLOWED THROUGH WITH STARTING THAT PROJECT,.
SO WE'RE GOING TO HAVE TO RE-BID IT.
THE NORTH FIRE STATION HISTORICAL VILLAGE WILL HAVE SOLAR ARRAY PROJECTS.
SOLAR ARRAY PROJECTS THAT ARE GRANT FUNDED,.
LARGELY THE SERVICE CENTER DESIGN AND PURCHASE.
WE WANT TO AT LEAST GET THAT EQUIPMENT IN-HOUSE.
AND THEN THE SENIOR CENTER PRELIMINARY DESIGN WORK, SOME DOLLARS THERE.
AS YOU KNOW, THAT'S A TOP PRIORITY FOR THE BOARD FOR 27,.
AND IT'S IMPORTANT THAT WE HAVE SOME DOLLARS AS WE THINK ABOUT POTENTIAL NEW SENIOR CENTER.
AND WHAT THAT'S GOING TO LOOK LIKE.
AS YOU KNOW, THE LAST DISCUSSION ON THAT WAS ABOUT THE POTENTIAL SITE.
ALONG GAYLORD C. SMITH AND OKEMOS ROAD AND ELSEWHERE TO DO SOME OF THAT PRELIMINARY WORK.
PATHWAY PROJECTS, WE HAVE A NUMBER OF PROJECTS.
THERE'S A COUPLE BEYOND THIS LIST, BUT THE MAIN ONES, OF COURSE, ARE THE HASLETT ROAD GAP PROJECT.
FROM PARK LAKE TO OKEMOS ROAD, THE PIKE CROSSING LAND PRESERVE.
THAT'S A SEGMENT OF PHASE 3 OF THE MSU TO LAKE LANSING PROJECT.
WE'RE GOING TO GO FROM HASLETT ROAD TO CARLTON,.
TOWNER ROAD SEGMENT FROM SAGINAW HIGHWAY DOWN TO TOWNER ROAD PARK,.
AND THEN PATHWAY RESTORATION AT EAST LANSING PUBLIC SCHOOLS ADMINISTRATION BUILDING,.
WHICH IS, OF COURSE, IN OUR TOWNSHIP.
A LOT OF PEOPLE DON'T KNOW THAT, BUT IT'S WITHIN OUR BOUNDARY,.
AND THAT'S A REPLACEMENT AFTER THEIR CONSTRUCTION PROJECT AND CHANGES THERE.
OUR LOCAL ROADS, MENTIONED EARLIER, YOU KNOW, WE'VE MADE A LOT OF PROGRESS.
COLLECTIVELY, NOW 51 MILES RECONSTRUCTED, 114 MILES OF MAINTENANCE WORK,.
AND THEN WE PLAN ANOTHER 6.2 MILES OF RECONSTRUCTION NEXT YEAR.
ALONG WITH SOME MAINTENANCE ACTIVITIES AS WELL.
THIS IS PROBABLY THE ONE FUND THAT'S THE MOST STRESSED OUTSIDE OF THE GENERAL FUND.
YOU KNOW, WE ARE STARTING TO SPEND DOWN THE FUND BALANCE THERE.
PLAN VEHICLE PURCHASES OF AROUND 674.
WE DO HAVE A LITTLE BIT MORE BUDGET, ABOUT 770,000,.
JUST TO GIVE US FLEXIBILITY HERE JUST BECAUSE OF ACTUAL,.
WHAT REAL COSTS WILL LAND WITH SOME OF THESE VEHICLE PURCHASES,? AS WELL AS SOMETIMES TIMING OF WHAT GETS SELECTED,.
DEPENDING ON THE STATUS OF WHAT'S BEING REPLACED CAN CHANGE AS WELL.
ESSENTIALLY, SOME PARKS AND REC VEHICLES,.
A TRAILER TOOL CAP WITH ATTACHMENTS,.
THREE PATROL VEHICLES FOR POLICE,.
AND THEN PUBLIC WORKS WITH SOME PICKUP TRUCKS,.
ENCLOSED TRAILER, FIVE YARD DUMP TRUCK BOX,.
AS WELL AS SOME ENGINEERING VEHICLES ARE ON THE LIST.
A LITTLE BIT LIGHTER LIST THAN THE CURRENT YEAR.
I THINK WE WERE JUST OVER A MILLION DOLLARS IN VEHICLE PURCHASES THIS YEAR.
WE HAVE INVESTMENT, OF COURSE, OCCURRING IN THE WATER AND SEWER FUNDS.
WE WENT THROUGH THE RATE STUDY PRESENTATION FROM OUR CONSULTANTS,.
LAYING OUT SORT OF THE NEEDS THERE.
I WON'T STEP THROUGH ALL THESE, BUT WATER MAIN REPLACEMENTS.
WE'VE GOT CONTINUED AMI INVESTMENTS, WHICH IS SPLIT BETWEEN THE FUNDS,.
LIFT STATION UPDATES FOR THE SEWER, SANITARY SEWER RELINING,.
SO SOME SUBSTANTIAL INFRASTRUCTURE WORK TO MAKE SURE THAT OUR SYSTEM KEEPS UP WITH THAT.
AND AS WE ALL HEARD IN THAT PRESENTATION TIMELINE,.
IT DOES COME WITH PROPOSED RATE ADJUSTMENTS,.
AND THESE ARE CONSISTENT WITH THE 2026 STUDY THAT WE HEARD ABOUT A FEW WEEKS AGO.
SO ADJUSTING READY TO SERVE FOR WATER.
THIS IS FOR THE TYPICAL RESIDENTIAL METER FROM 12 TO 21 DOLLARS.
DECLINE IN CONSUMPTION FOR WATER SLIGHTLY FOR PER THOUSAND GALLON USE.
SEWER IS ALSO BEING ADJUSTED ON READY TO SERVE FEES AS WELL,.
AND THEN CONSUMPTION FEES ON SEWER ARE GOING UP AGAIN PER THOUSAND GALLONS.
THE AVERAGE USER INCREASE IS PROJECTED TO BE AROUND 9.8 PERCENT IF THESE RATES WOULD STAY,.
BUT RATES WOULD STILL REMAIN BELOW WHAT WE SEE IN THE REGION,.
AGAIN BASED ON THE DATA THAT WE SHARED IN MORE DETAIL WITH THE RATE STUDY.
AND THEN PARKS AND RECREATION PROJECTS,.
OKEMOS ROAD, GAYLOR C. SMITH, THE TRAILHEAD PROJECT,.
WHICH IS PREDOMINANTLY NATURAL RESOURCES TRUST FUND GRANT DOLLARS,.
WHICH COVERS ABOUT 80 PERCENT OF THE COST ON THAT PROJECT.
LOOKING AT NORTH MERIDIAN ROAD PARKING LOT EXPANSION,.
A LOT OF ISSUES OUT THERE WITH PEOPLE PARKING ON MERIDIAN ROAD WHEN SOCCER GAMES ARE GOING ON,.
NOT ENOUGH PARKING, REPLACING NANCY MOORE PARK PLAYGROUND.
LAUNCH PARK, KAYAK LAUNCH, THIS WAS ON THE BUDGET FOR THE CURRENT YEAR.
I THINK WE HAVE SOME CHALLENGES GETTING APPROVAL THROUGH THE ROAD DEPARTMENT.
[00:35:01]
ROAD DEPARTMENT HAS BEEN GREAT TO WORK WITH SO FAR.WE EXPECT TO BE ABLE TO WORK THROUGH THOSE ISSUES AND GET THIS DONE IN 27.
FARMERS MARKET, ELECTRICAL SERVICE, IT'S A POPULAR MARKET.
A LOT OF PEOPLE USE IT, CAUSE A LOT OF VENDORS.
THOSE VENDORS WANT TO USE POWER FOR THEIR DIFFERENT NEEDS, SO WE NEED TO UPGRADE THERE.
IT'S A LITTLE DICEY TRYING TO MAKE IT ALL WORK NOW.
AND THEN CONTINUED EFFORT ON THE RED CEDAR RIVER WATER TRAIL PROJECT.
MADE A LOT OF PROGRESS CLEARING THE RIVER, WANT TO KEEP IT CLEAR AND ADDRESS THINGS AS THEY COME UP,.
AS THAT'S BECOMING A MUCH MORE USED REGIONAL ASSET.
SO LOOKING AHEAD, SOME OF THE THINGS THAT ARE STILL OUT THERE THAT WE WILL NEED TO ADDRESS.
WE'LL NEED TO FINALIZE THE HEALTH CARE COSTS, BUT AGAIN, WE EXPECT THOSE TO COME IN TO OUR ADVANTAGE THIS YEAR.
COLLECTIVE BARGAINING, WE'VE GOT THREE COLLECTIVE BARGAINING AGREEMENTS EXPIRING THIS YEAR.
WE'RE GOING TO BE GETTING INTO THE BARGAINING THAT WOULD BE OUR FIREFIGHTERS AND THEN BOTH OF OUR POLICE UNITS.
AND THEN IN 2027, THE REMAINING FOUR EXPIRE, SO WE'LL BE WORKING HARD ON ALL OF THOSE.
AND FIGURING OUT HOW THEY FIT INTO OUR OVERALL PICTURE HERE.
REVENUE SHARING UNCERTAINTY, WE'VE SEEN REVENUE SHARING TAKE A LITTLE BIT OF A HIT.
BECAUSE OF THE ROAD FUNDING AND HOW THAT WORKS OUT, BUT IT'S ALWAYS UNCERTAIN TOO.
JUST BECAUSE IT'S TIED TO THE SALES TAX, RIGHT? CONSTITUTIONAL IS ALWAYS GOING TO FLUCTUATE BASED ON THE ECONOMY.
AND THEN OF COURSE, I ALWAYS WANT TO MENTION FUTURE DRAIN PROJECTS,.
PRIMARILY THE OKEMOS CONSOLIDATED PROJECT.
I THINK WE'RE STARTING TO HEAR THINGS THAT MAYBE IT WON'T BE QUITE AS LARGE AS WE FEARED.
IT'S STILL GOING TO BE A SUBSTANTIAL PROJECT.
YOU KNOW, THE PROOF WILL BE IN THE PUDDING.
WE'LL SEE WHAT HAPPENS WITH THE DRAIN COMMISSION AND WHAT THEY PUT OUT THERE ON THAT PROJECT.
AND THERE'S ALWAYS OTHER POTENTIAL DRAIN PROJECTS THAT ARE BEING DISCUSSED AS WELL.
AND THEN AS FAR AS KEY DATES COMING AHEAD, SO ON THE 15TH, WE'LL HAVE A BUDGET,.
A PUBLIC HEARING, FORMAL PUBLIC HEARING AND FURTHER DISCUSSION.
WE HAVE THE TENTATIVE APPROVAL FOR OCTOBER 6TH, BUT WE'VE GOT PLENTY OF TIME.
THE BOARD WANTS TO DISCUSS ANY PARTICULAR ISSUES.
WE CAN DO THAT, YOU KNOW, APPROVE IT LATER IN OCTOBER.
STATUTORILY, IT'S ACTUALLY DECEMBER 31ST IN THE STATE STATUTE FOR FINAL APPROVAL.
SO IT'S SHOCKINGLY LATE, RIGHT, THE DAY BEFORE IT ACTUALLY BEGINS.
AND THEN NOVEMBER 3RD IS AN IMPORTANT DATE, NOT FOR THE BUDGET DIRECTLY,.
BUT INDIRECTLY IN THE SENSE THAT THAT'S WHEN THE POLICE AND FIRE MILLAGE, THE 2017 MILLAGE IS UP.
AND THEN THE PARK MILLAGE IS UP AS WELL.
SO IF FOR SOME REASON ONE OR BOTH OF THOSE DID NOT PASS,.
IT WOULD OBVIOUSLY REQUIRE SOME SIGNIFICANT ADJUSTMENTS ON THE 27 BUDGET.
BUT HOPEFULLY OUR RESIDENTS SEE THE VALUE IN BOTH OF THOSE.
AND THE CRITICAL RESOURCES THEY PROVIDE FOR THE BUDGET.
SO WITH THAT, BEFORE I GET INTO THE FIVE-YEAR FORECAST, I'LL PAUSE HERE.
AND SEE IF THERE ARE ANY INITIAL QUESTIONS.
AGAIN, BERNIE'S HERE. WE'LL TRY TO ANSWER WHAT WE CAN THIS EVENING.
IF THERE ARE THINGS THAT WE CAN'T, WE'LL CERTAINLY BRING BACK TO YOUR NEXT MEETING.
AND OF COURSE, WE WOULD EXPECT THAT YOU'LL HAVE OTHER QUESTIONS AS WELL BETWEEN NOW AND THEN.
SO WE'RE HAPPY TO ENTERTAIN ANY AND ALL.
THANK YOU VERY MUCH, BOARD MEMBERS. ANY QUESTIONS OF MANAGER DEMPSEY? I HAVE MANY QUESTIONS IN REGARDS TO THE BUDGET,.
BUT IT SEEMS AS THOUGH THEY'RE BEST SERVED HOLDING UNTIL THE SEPTEMBER 15TH MEETING.
WHERE WE CAN HAVE A MORE ROBUST DISCUSSION IN THE APPROPRIATE TIME.
IT ALSO GIVES ME A LITTLE MORE TIME TO MAKE SURE I'M ASKING THEM ALL IN THE RIGHT WAY.
I KNOW HOW HARD YOU AND THE DEPARTMENT HEADS HAVE WORKED ON THIS BUDGET.
TO BRING IT DOWN TO A MANAGEABLE LEVEL.
GIVEN WHAT THE WANTS ARE, WE HAVE TO GO WITH WHAT THE NEEDS ARE.
SO THANK YOU FOR ALL THE HARD WORK THAT YOU'VE PUT INTO THIS BUDGET.
WE APPRECIATE THAT. AND AGAIN, KUDOS TO ALL THE STAFF.
THEY DO A LOT OF HARD WORK ON IT.
PEOPLE DREAM NUMBERS FOR A LITTLE BIT.
OTHER QUESTIONS OR COMMENTS? WHEN IT'S TIME TO DISCUSS A FUTURE MEETING, I WILL PROVIDE MORE THOUGHTS,? BUT I JUST WANTED TO INITIALLY SHARE THESE THOUGHTS WHEN I WAS REVIEWING THE BUDGET AHEAD OF TIME.
IT APPEARS MY OFFICE'S RECOMMENDATIONS WERE, WELL, THEY DIDN'T MEET THE CUTS.
SO JUST A REMINDER THAT NEW VOTING EQUIPMENT WILL BE REQUIRED BY 2027.
AND BASED ON OUR CONSERVATIVE ESTIMATES, IT APPEARS IT WILL COST UPWARDS TO $300,000.
SO I JUST WANT THAT TO BE TAKEN INTO CONSIDERATION
[00:40:01]
WHEN THIS IS BROUGHT BACK TO US.SO THAT WE CAN CONTINUE TO HAVE GREEN FAIR ELECTIONS.
THANK YOU FOR THIS INFORMATION.
I CAN JUMP OVER TO THAT FIVE-YEAR FORECAST THEN.
NOW, BEFORE I SORT OF DELVE INTO THIS, THERE'S A COUPLE THINGS.
ONE IS THIS IS THE FIRST TIME THE TOWNSHIP HAS DONE THIS FIVE-YEAR FORECAST,.
AT LEAST IN CURRENT STATS MEMORY.
THEY'RE FORECAST WHILE THE 27 NUMBERS DO ALIGN WITH THE BUDGET.
IT'S IMPORTANT TO KEEP IN MIND THAT, YOU KNOW, LIKE THE WEATHER FORECAST,.
THE IDEA IS JUST TO UNDERSTAND WHERE THE TRENDS ARE GOING SO WE CAN PLAN ACCORDINGLY.
AND FOR ANYONE THAT HASN'T SEEN A FIVE-YEAR FORECAST, PARTICULARLY FOR A MUNICIPAL GOVERNMENT,.
IT'S NOT UNCOMMON TO SEE SOME PRETTY SCARY NUMBERS.
SO I WANT TO PREFACE IT BY SAYING DON'T FREAK OUT TOO MUCH, RIGHT? LIKE THEY'RE THAT WAY BECAUSE THESE ARE ALWAYS DONE CONSERVATIVELY,.
PARTICULARLY ON THE REVENUE SIDE, RIGHT? BECAUSE WE JUST DON'T KNOW.
SO WE BUDGET VERY CONSERVATIVELY ON THE REVENUE AND DO SO REALLY EQUALLY,.
IF NOT MORE SO, ON THE EXPENSE SIDE WHERE WE WANT TO MAKE SURE THAT WE'RE NOT MISSING ANYTHING.
AND THAT WE'RE ACCOUNTING FOR EVERYTHING.
SO I JUST WANT TO PREFACE THE WHOLE FORECAST BY THOSE KEY POINTS.
KEEP THAT IN MIND AS WE GO THROUGH THAT.
SO WE DID PROVIDE SOME INTRODUCTORY INFORMATION IN HERE THAT I WON'T GO THROUGH ALL OF IT.
BUT JUST TRY TO LAY SOME OF THAT OUT, PROVIDE THAT IN THE BACKGROUND,.
PROVIDE SOME DETAIL ON THE ASSUMPTIONS, SOME OF THE THINGS THAT WE'VE LOOKED AT.
ONE OF THE BIG THINGS ON THE REVENUE SIDE I WANT TO HIGHLIGHT ON THE PROPERTY TAX IS.
WE HAVE BENEFITED CERTAINLY IN RECENT YEARS FROM ABOUT A 4.1% INCREASE IN PROPERTY TAX REVENUE.
GOING FORWARD, WE ARE MUCH MORE CONSERVATIVE AT THE PERCENTAGE AND A HALF,.
LARGELY BECAUSE WE JUST DON'T KNOW ABOUT WHAT WILL HAPPEN IN THE FUTURE, RIGHT? WE DON'T KNOW IF THERE IS A RECESSION ON THE HORIZON,.
HOPEFULLY NOT A GREAT RECESSION WHERE WE SAW PROPERTY VALUES SIGNIFICANTLY GET IMPACTED.
THE ADVANTAGE WITH PROPERTY TAX REVENUE THOUGH FOR US IS THAT THERE'S ALWAYS A LAG TIME.
SO IF THERE IS A SIGNIFICANT ECONOMIC IMPACT,.
WE TYPICALLY DON'T SEE THAT PLAY OUT UNTIL A COUPLE YEARS AFTER.
JUST BECAUSE OF HOW THAT DATA HAS TO TRICKLE DOWN AND HOW THE ASSESSORS WORK.
AND TO MAKE THOSE ADJUSTMENTS OVER TIME.
AGAIN, I WON'T GO THROUGH ALL OF THIS,.
BUT WE MADE VARIOUS ASSUMPTIONS HERE BASED ON SORT OF HISTORIC TRENDS.
AGAIN, TRYING TO PROGNOSTICATE THE BEST WE CAN, BUT NONE OF US HAVE A CRYSTAL BALL.
GETTING INTO THE FORECAST HERE A LITTLE BIT.
IT IS GENERAL FUND FOCUSED BECAUSE THAT IS THE PRIMARY FUND FOR KEY OPERATIONS OF THE TOWNSHIP,.
AND IT IS ALWAYS THE ONE THAT TYPICALLY HAS THE MOST CHALLENGES.
AGAIN, AND THAT IS NOT UNCOMMON.
YOU CAN LOOK AT OTHER MUNICIPAL ENTITIES AND FIND SIMILAR.
AS WE LOOK AHEAD A LITTLE BIT HERE,.
AGAIN, THE 27 NUMBERS ESSENTIALLY ALIGN WITH WHERE WE'RE AT FOR THE BUDGET,.
SO THAT $948,000 USE OF FUND BALANCE IS OUTLINED THERE, SO THAT MATCHES UP.
GOING AHEAD, BEN, OVER THE NEXT SEVERAL YEARS,.
WE ESSENTIALLY HAVE REVENUE GOING UP AT ABOUT 1.2 PERCENT.
WHEN YOU HAVE EXPENSES GOING UP AT 3.8 TO 4 PERCENT.
SO OBVIOUSLY THAT'S THE MISMATCH, RIGHT? YOUR REVENUES, IF THEY'RE NOT KEEPING PACE WITH EXPENSES, THAT'S THE CHALLENGE.
CERTAINLY, WE CAN LOOK AT, AND I'VE TALKED TO BERNIE ABOUT THIS,.
THE POTENTIAL TO DO SOME DIFFERENT SCENARIOS HERE,.
WHERE WE CAN LOOK AT SOME ALTERNATIVE REVENUE SCENARIOS TO SAY,? OKAY, IF WE WERE TO HIT THE 4.1 PERCENT ON PROPERTY TAXES,.
GIVEN THAT IT'S SUCH A LARGE PERCENTAGE OF OUR REVENUE,.
WHAT DOES THAT LOOK LIKE GOING FORWARD TO SORT OF BETTER UNDERSTAND? WHAT MIGHT BE AN ALTERNATIVE PATH HERE? I THINK THE BOTTOM LINE NUMBERS, THOUGH, IF YOU LOOK AT THAT,.
IF YOU DON'T CHANGE ANYTHING FROM THIS, YOU CONTINUE TO BURN THROUGH FUND BALANCE.
AND THEN GET TO THE POINT WHERE YOU'RE AT A DEFICIT.
OF COURSE, WE'RE GOING TO DO THINGS TO AVOID THAT.
WHAT ARE THE EXPENSE FACTORS THAT WE CAN POTENTIALLY GET A HANDLE ON? AND TRY TO REDUCE THEIR ESCALATION, WHETHER IT'S GETTING CREATIVE ON THE HEALTH CARE SIDE? WHAT ARE THINGS WE CAN DO WITH POTENTIAL PERSONNEL COST INCREASES?
[00:45:01]
TO SORT OF MODIFY THEIR ACCELERATION? CAN WE GET TO A MORE RECENT INCREASE OVER TIME? AND WHAT CAN WE DO ON THE REVENUE SIDE? THE CHALLENGE, OF COURSE, WITH PUBLIC SECTOR REVENUE IS WE DO GENERATE DOLLARS.FROM FEES THAT WE CHARGE, BUT THAT'S SOMEWHAT LIMITED AS WELL.
THAT'S A SMALLER PORTION OF OUR BUDGET.
THE BIGGEST PORTION ARE, OF COURSE, OUR PROPERTY TAXES.
AND THEN OUR STATE REVENUE SHARING.
THOSE ARE THE TWO CORE ISSUES FOR THE GENERAL FUND.
YOU CAN CERTAINLY LOOK AT POTENTIAL MILLAGE RATES.
AND WHERE THAT STANDS AND DOING DIFFERENT THINGS THERE AS AN OPPORTUNITY.
BUT AGAIN, THAT HAS TO BE DONE IN AN ENVIRONMENT WHERE WE HAVE THE SUPPORT OF OUR RESIDENTS.
IN UNDERSTANDING WHAT THAT LOOKS LIKE AND WHAT ANY INCREASE MIGHT MEAN FOR TAXPAYERS.
SO THERE'S A LOT HERE TO SORT OF NAVIGATE AND THINK THROUGH.
I THINK ONE OF THE THINGS THAT STAFF HAS CERTAINLY TAKEN OUT OF IT IS.
HOW DO WE BEGIN TO ADDRESS THIS GOING FORWARD? AND I THINK OUR APPROACH IS TO SIT DOWN HERE IN THE COMING MONTHS.
AND START TO LOOK AT THIS A LITTLE BIT MORE COMPREHENSIVELY TO SAY,.
OKAY, WHAT CAN WE DO, WHAT ARE OUR OPTIONS ON REVENUE,.
WHAT ARE OUR OPTIONS ON EXPENSES, AND START TO LAY THAT OUT? AND OVER TIME PRESENT SOME OF THOSE OPTIONS TO THE BOARD AS A REGULAR DIALOGUE AND DISCUSSION.
I THINK THAT'S ONE OF THE KEY OUTCOMES OF ANY FORECAST IS JUST THAT.
THINKING ABOUT, OKAY, WHAT MIGHT BE THE POTENTIAL CHALLENGES.
AND WHAT MIGHT BE SOME POTENTIAL SOLUTIONS SO THAT WE'RE NOT CAUGHT IN A BUDGET PROCESS.
IN A YEAR OR TWO FROM NOW FLAT-FOOTED, BUT CAN START TO BE A LITTLE BIT MORE PROACTIVE.
SO THAT'S THE INTENT IS TO START TO LOOK AT THESE THINGS,.
START TO EXAMINE THEM AND THEN BRING BACK SOME OPTIONS FOR THE BOARD.
THAT HOPEFULLY WILL BE ACCEPTABLE ROUTES TO ADDRESS SOME OF THESE CONCERNS.
I'LL PAUSE THERE IF THERE'S ANY INITIAL QUESTIONS ON THIS.
AGAIN, RECOGNIZING THAT YOU'VE ONLY HAD THIS FOR A FEW DAYS.
AND WE DO PROVIDE SOME OF THE BACKGROUND ASSUMPTION DATA AS WELL.
JUST IN TERMS OF REVENUE DETAIL AND GENERAL FUND EXPENDITURE DETAILS AS WELL.
TO PROVIDE SOME OF THAT CONTEXT.
THANK YOU VERY MUCH. BOARD MEMBERS, ANY QUESTIONS? TRUSTEE LENTZ.
DO YOU IMAGINE THAT IT MAKES SENSE FOR US TO SAVE MORE IN-DEPTH QUESTIONS? FOR TWO WEEKS FROM NOW AND SIMILAR TO THE BUDGET AS WELL? I ASK BECAUSE MY ONLY OTHER COMMENT NOW WAS RELATED TO THE MANAGEMENT OF THIS DOCUMENT.
AND IN THAT IF WE, LIKE MANAGER DEMPSEY SAID,.
THIS IS THE FIRST FIVE-YEAR PLAN THAT WE'VE PUT TOGETHER.
IS THE ANTICIPATION THAT EACH YEAR THIS DOCUMENT IS THEN REVISITED AND UPDATED? OR IS THAT TOO MUCH OF A BURDEN TO PUT ON THE FINANCE DEPARTMENT.
IN ADDITION TO MANAGING THE BUDGET AS IT IS REQUIRED ON AN ANNUAL BASIS? THE BIG LIFT IS THE INITIAL FORECAST.
SO WE ENVISION UPDATING THIS EVERY YEAR.
SO WE WILL UPDATE THIS ON AN ANNUAL BASIS.
NOW THAT IT'S IN PLACE AND WE HAVE THE STRUCTURE AROUND IT,.
ONE OF THE THINGS WE'LL ALSO DO IS REFINE IT OVER TIME.
SO SOME OF THE BACKGROUND INFORMATION THAT WE USED IN TERMS OF ASSUMPTIONS.
WILL PROBABLY TWEAK METHODOLOGIES AS WE FEEL MORE COMFORTABLE ABOUT CERTAIN ONES.
I THINK ONE OF THE AREAS THAT WE WOULD HAVE LIKED TO SPEND MORE TIME ON.
THAT WE HAVEN'T YET IS LOOKING AT THE PERSONNEL COSTS.
WE USED SOME INFLATIONARY ASSUMPTIONS,.
BUT BECAUSE OF THE DYNAMIC NATURE THAT I MENTIONED EARLIER WITH HEALTH CARE PLANS.
AND STEP INCREASES, THAT GETS REALLY, REALLY TRICKY IN TERMS OF SORT OF ESTIMATING OUT INTO THE FUTURE.
THAT IS AN AREA WHERE WE COULD PROBABLY DO SOME REFINEMENT ON,.
BUT YES, WE DEFINITELY PLAN TO DO THIS ANNUALLY AS PART OF THE BUDGET PROCESS.
SO, MANAGER DEMPSEY, HAVE YOU LOOKED INTO ADDITIONAL,.
LIKE OPTIONAL SERVICES THAT COULD ADD TO OUR REVENUE THAT WE WOULD WANT TO EXPLORE? YOU KNOW, THAT AT THIS STAGE, IF YOU'RE ASKING ABOUT,.
SO FOR INSTANCE, PROVIDING MAYBE SERVICES TO ANOTHER JURISDICTION IN A CERTAIN AREA,.
MAYBE AS AN EXAMPLE, WE HAVEN'T YET SORT OF LAID THOSE OUT.
YOU KNOW, ANY SORT OF SERVICE THAT WE WOULD PROVIDE AS A REVENUE GENERATOR.
WOULD ALSO HAVE TO SORT OF MAKE SENSE FROM THE STANDPOINT
[00:50:01]
OF BALANCING OUT ON THE COST SIDE, RIGHT,? TO BE A NET POSITIVE.SO, I MEAN, I THINK THAT'S SOMETHING WE CAN CERTAINLY LOOK AT,.
BUT WE JUST HAVE TO ENSURE THAT WE ADD SERVICES SOMEWHERE,.
PROVIDE AN ADDITIONAL SERVICE THAT'S ACTUALLY ADDING TO THE REVENUE PICTURE.
AND NOT BEING COMPLETELY ERASED ON THE EXPENSE SIDE.
SURE. YEAH, AND I ONLY ASK THAT BECAUSE I KNOW WITH THE CLERK'S OFFICE,.
WE PROVIDE NOTARY SERVICES, WHICH WE DO, WE OFFER FREE SERVICES FOR TOWNSHIP RESIDENTS,.
BUT WE WILL IMPLEMENT A FEE STARTING NEXT YEAR.
I KNOW WORKING AT A DELHI TOWNSHIP'S CLERK'S OFFICE, THEY HAD PASSPORT SERVICES.
I'M NOT SURE IF THAT WOULD BE AN OPTION HERE,.
BUT I WAS JUST PROVIDING THAT AS A POSSIBILITY FOR US TO EXPLORE WHETHER THERE ARE SERVICES,.
IF WE HAVE THE CAPACITY TO IMPLEMENT.
YEAH, AND I THINK THAT'S THE BEST CASE SCENARIO IS THE CAPACITY ISSUE.
SO IF THERE ARE STAFF WHO HAVE TIME TO DEDICATE TO ADDITIONAL SERVICES.
THAT WE COULD ALLOCATE AND GENERATE REVENUE FROM, WE WOULD DEFINITELY WANT TO EXPLORE THAT.
I DIDN'T NOTICE THAT FEE CHANGE IN THE FEE SCHEDULE.
DID THAT NOT MAKE IT INTO THE CHANGE FOR 2027? I CAN SPEAK TO THIS IF YOU'D LIKE TO ADD ANYTHING, MANAGER DEMPSEY.
WE'VE ALWAYS HAD A $5 FEE FOR NOTARY SERVICES.
IT WAS JUST UP TO OUR, WE JUST DECIDED FOR TOWNSHIP RESIDENTS,.
THIS WAS DECIDED UPON BASED ON PRIOR CLERKS THAT IT WOULD BE FREE FOR TOWNSHIP RESIDENTS,.
AND THEN THE $5 FEE APPLIED FOR PEOPLE WHO DO NOT RESIDE IN THE TOWNSHIP,.
AND THEN THAT $5 FEE COULD BE APPLIED TO EVERYONE.
I SPOKE WITH MANAGER DEMPSEY ABOUT THIS.
I'M NOT SURE IF YOU'D LIKE TO ELABORATE OR IF WE SHOULD MAKE THAT CLEAR IN OUR FEE SCHEDULE,.
BUT I DID BRING THIS UP WHEN DISCUSSING THIS WITH DIRECTOR BLONDE.
SURE. NO, I DO SEE THAT IN THE FEE SCHEDULE.
NOW, I USUALLY ONLY AM LOOKING FOR THE CHANGES.
SO WHEN YOU MENTIONED THAT, I HADN'T NOTICED A CHANGE IN THE 2027 SCHEDULE AS I WENT THROUGH.
I MEAN, IT'S CERTAINLY A BENEFIT TO OUR RESIDENTS TO NOT HAVE BEEN CHARGING THEM ALL THIS TIME.
MY DAY JOB IS IN THE COUNTY OFFICE,.
AND WE ARE SORT OF BOUND BY THE FEES THAT THE BOARD OF COMMISSIONERS PASSES.
SO I'M A BIT SURPRISED TO FIND THAT IT'S JUST BEEN WAIVED ALL THIS TIME,.
LONG BEFORE YOU WERE A CLERK, I'M SURE.
SO I THINK THAT CERTAINLY MAKES SENSE TO COME BACK TO WHAT THE TOWNSHIP BOARD'S BEEN PASSING EACH YEAR IN ITS BUDGET.
YEAH, THAT'S WHAT MANAGER DEMPSEY AND I DISCUSSED THIS YEAR AND LAST YEAR AFTER THE BUDGET WAS APPROVED.
YEAH, I THINK, YOU KNOW, HAVING LOOKED AT THE FIVE-YEAR FORECAST AND ABOUT FELL OUT OF MY CHAIR AT SOME OF THE ESTIMATES,.
YOU KNOW, HAVING A MOMENT TO REFLECT ON IT,.
I DO THINK THAT WE'VE TAKEN A VERY CONSERVATIVE APPROACH TO LOOKING AT OUR REVENUE,.
YOU KNOW, WHICH IS NOT A BAD THING, NECESSARILY.
WE WANT TO PLAN FOR WE DON'T WANT TO PLAN FOR BOOM TIMES, NECESSARILY.
BUT CONSIDERING THAT WE'VE HAD, YOU KNOW, A 4 PERCENT, YOU KNOW, INCREASE YEAR OVER YEAR OVER THE LAST SIX OR SEVEN YEARS,.
YOU KNOW, CERTAINLY WE DON'T WANT TO ALWAYS EXPECT THAT THAT'S NECESSARILY GOING TO HAPPEN.
BUT I THINK 1.5 IS A PARTICULARLY CONSERVATIVE APPROACH, AND THERE ARE REASONS FOR DOING THAT.
AND SO I THINK TO OUR RESIDENTS WHO MIGHT BE WATCHING AT HOME OR CONCERNED ABOUT, YOU KNOW,.
THE FINANCIAL OUTLOOK OVER THE NEXT COUPLE OF YEARS, I THINK IT IS IMPORTANT TO CONTINUE TO UNDERSCORE AT EVERY TURN.
THAT, YOU KNOW, THIS WAS A VERY DELIBERATE APPROACH TO BEING CONSERVATIVE IN OUR REVENUE ESTIMATES.
AND THAT, LIKELIER THAN NOT, WE WILL BEAT THESE PROJECTIONS EACH AND EVERY YEAR FROM A REVENUE STANDPOINT.
YOU KNOW, I'D BE CURIOUS WHEN THE LAST TIME WE HIT WHEN WE WERE AT 1.5 PERCENT OR LOWER, YOU KNOW,.
IT WAS, JUST SO WE CAN GET SOME CONTEXT FOR HOW CONSERVATIVE AN ESTIMATE THAT ACTUALLY IS.
I SUSPECT IT'S PROBABLY NOT UNTIL WE GO BACK TO THE GREAT RECESSION THAT WE SAW SUCH A SLOWDOWN IN OUR PROPERTY VALUE GROWTH.
WOULD YOU SAY THAT'S AN ACCURATE STATEMENT? THAT'S YEAH, I MEAN, WE'D HAVE TO LOOK BACK, BUT THAT'S PROBABLY TRUE, RIGHT, COMING OUT OF THE GREAT RECESSION,.
YOU KNOW, THERE MAY BE ANOTHER YEAR OR TWO IN THERE THAT
[00:55:01]
WASN'T QUITE AS STRONG.YOU KNOW, I THINK HISTORICALLY, CERTAINLY PROPERTY VALUES TENDED TO BE A LITTLE CLOSER TO THE CPI AVERAGE.
SO WE USED THE 2.6 PERCENT FOR MOST OPERATIONAL THINGS.
YOU'LL SEE A 2.8 HERE BECAUSE UTILITIES, WE USED A 3.5, SO THAT SKEWS IT UP.
BUT I THINK HISTORICALLY, THE 2.5, 2.6 WOULD AT LEAST BE A LITTLE BIT MORE TYPICAL OF AN ESTIMATED VALUE.
AND WHEN YOU'RE TALKING IN THE TENS OF MILLIONS OF DOLLARS,.
A SINGLE PERCENTAGE POINT CAN BE A RATHER SIGNIFICANT INCREASE.
AND SO IT'S JUST I THINK IT'S WORTH POINTING OUT AS WE DISCUSS THIS NOW AND IN THE FUTURE.
THAT I THINK IT LOOKS A LOT WORSE THAN WE ARE EVEN IF WE PLAN FOR A BAD SITUATION,.
WHICH IS CERTAINLY WHAT WE SHOULD BE DOING.
YEAH, AND I THINK, YOU KNOW, BACK TO THE QUESTION, TOO, ABOUT DOING THIS OVER TIME,.
I THINK ONE OF THE THINGS WE COULD ALSO LOOK AT IS SORT OF MORE OF A SCENARIO-BASED, RIGHT? THIS IS SORT OF A SINGULAR FORECAST, BUT WE COULD ALSO LOOK AT, YOU KNOW,.
MORE AGGRESSIVE APPROACHES VERSUS THE MORE CONSERVATIVE AND HAVE THAT RANGE.
THAT MIGHT BE A LITTLE BIT MORE HELPFUL FOR CONTEXT.
SURE. THANK YOU. OTHER COMMENTS? ALL RIGHT. THANK YOU VERY MUCH.
WE'LL SEE YOU BACK IN A COUPLE WEEKS FOR THAT.
YEAH, ALL RIGHT. THANK YOU. WE APPRECIATE EVERYBODY'S ATTENTION.
ITEM NUMBER FIVE ON OUR AGENDA THIS EVENING IS CITIZENS ADDRESS AGENDA ITEMS AND NOT AGENDA ITEMS. SURVEYING THE CROWD AND SEEING MOSTLY APPLICANTS AND FRIENDS.
IF ANYONE WOULD LIKE TO ADDRESS THE PUBLIC ADDRESS THE BOARD DURING PUBLIC COMMENT,.
NOW WOULD BE A GOOD TIME. JUST MAKE SURE YOU GRAB A GREEN CARD BY THE DOOR.
WE'LL OPEN PUBLIC COMMENT AT 6.55 P. M.
SEEING NO ONE MAKING THEIR WAY TO THE PODIUM, WE'LL CLOSE PUBLIC COMMENT AT 6.56 P. M.
[6. TOWNSHIP MANAGER REPORT ]
NEXT ON OUR AGENDA IS THE TOWNSHIP MANAGER REPORT.MANAGER DEMPSEY, WHAT ELSE HAVE YOU GOT FOR US? I'M GOING TO SPARE YOU ANYTHING ELSE RIGHT NOW.
SO OTHER THAN, OF COURSE, LABOR DAY IS COMING UP,.
SO TOWNSHIP OFFICES WILL BE CLOSED MONDAY FOR THAT HOLIDAY.
BUT OTHER THAN THAT, I'M GOOD. THANK YOU.
ENJOY THE LAST COUPLE OF DAYS OF SUMMER AND WARM WEATHER THAT WE MAY HAVE FOR A LITTLE WHILE DURING THAT TIME.
[7. BOARD MEMBER REPORTS OF ACTIVITIES AND ANNOUNCEMENTS ]
NEXT ON OUR AGENDA IS BOARD MEMBER REPORTS OF ACTIVITIES AND ANNOUNCEMENTS.ANY BOARD MEMBERS WISHING TO MAKE REPORTS THIS EVENING? TRUSTEE LENTZ? YEAH. I WANTED TO THANK MANAGEMENT FOR PUTTING ON WHAT I CONSIDER TO BE A GREAT EMPLOYEE RECOGNITION PICNIC.
A COUPLE WEEKS AGO THAT I WAS ABLE TO ATTEND.
YOU KNOW, FROM AT LEAST MY PERSPECTIVE, I KNOW THAT THE BOARD GREATLY APPRECIATES THE WORK THAT STAFF DOES ON A DAY-TO-DAY BASIS.
AND AS A PART-TIME TRUSTEE IN PARTICULAR, I AM NOT HERE AT 8 A. M. TO ADDRESS SOMEONE WHO HAS A VERY PARTICULAR NEED MET.
AND SO I REALLY DO APPRECIATE THE WORK THAT IS PUT IN.
AND THEN, MUCH TO MY STEPMOTHER'S EMBARRASSMENT, I WANT TO PUBLICLY CONGRATULATE FORMER EXECUTIVE DIRECTOR OF OKEMOS SCHOOLS FINANCE, ELIZABETH LENTZ, ON RETIREMENT.
SHE SPENT OVER 10 YEARS WORKING FOR OKEMOS SCHOOLS, SO IT SOUNDS LIKE JUST A VERY SHORT WHILE.
I COMMEND YOU FOR STILL BEING HERE, SUPERINTENDENT OLSON, AFTER AN HOUR OF FINANCE TALK.
BUT, YOU KNOW, I THINK SHE HAS DONE A GREAT JOB, AND OKEMOS SCHOOLS IS BETTER FOR IT, SO I WANTED TO DO SO.
NO DOUBT. OTHER REPORTS THIS EVENING? TRUSTEE TREZISE? YEAH. I AND A NUMBER OF OTHER BOARD MEMBERS, INCLUDING SUPERVISOR ANGELA AND LINDA,.
ATTENDED THE OPEN MEETING LAST NIGHT TO DISCUSS THE POTENTIAL ROAD DIET ON HASLETT ROAD.
I WOULD GUESS THERE WERE 30 TO 35 CITIZENS HERE. IT WAS A VERY GOOD MEETING.
I THOUGHT THAT DEPUTY MANAGER OPSOMMER, AS CHIEF GRILLO OWNER, TWO REPRESENTATIVES FROM THE COUNTY ROAD COMMISSION,.
DID AN EXCELLENT JOB PUTTING TOGETHER A BRIEF SUMMARY OF WHAT WE'RE LOOKING AT AS A POTENTIAL AND EXPLAINING WHY AND THE PURPOSES OF THIS.
I THOUGHT THE PUBLIC WAS VERY ATTENTIVE. THEY HAD ISSUES, THEY HAD QUESTIONS, AND THEY HAD SUPPORT.
SO I THOUGHT IT WAS A VERY PRODUCTIVE MEETING FROM ALL POINTS, AND I CONGRATULATE YOU ON SHARING IT, SIR.
THANK YOU VERY MUCH. OTHER BOARD MEMBERS? YEAH, I JUST WANTED TO REMIND ALL OF OUR RESIDENTS THAT SEPTEMBER 14TH IS TAX DAY, AND TO ASK YOU TO PLEASE NOT WAIT UNTIL THE 14TH TO PAY YOUR TAXES.
[01:00:01]
THROUGH FRIDAY, AND THERE'S A VARIETY OF DIFFERENT WAYS THAT YOU CAN PAY YOUR TAXES.YOU CAN TAKE A LOOK AT OUR WEBSITE UNDER THE BILL PAYMENTS AND UTILITIES TAB TO FIND OUT ALL THE DIFFERENT WAYS THAT YOU CAN PAY YOUR TAXES.
AND IF YOU HAVE ANY QUESTIONS, PLEASE FEEL FREE TO CALL ME.
MY NUMBER IS 517-853-4144, AND I'LL BE HAPPY TO HELP YOU. THANK YOU.
ALSO, A GOOD TIME FOR OUR ANNUAL REMINDER THAT DESPITE THE FACT THAT MERIDIAN TOWNSHIP COLLECTS ALL OF YOUR PROPERTY TAXES, WE ONLY KEEP ABOUT 20% OF THAT.
AND THEN DISPERSE THE REST TO OUR VARIOUS TAXING UNITS.
YOU'RE WELCOME TO THE OKEMOS SCHOOLS AND HASLETT SCHOOLS AND ALL THE OTHER TAXING UNITS IN THE AREA FOR THE TAX COLLECTION SERVICE.
I WILL ALSO ADD TO TRUSTEE TREZISE'S COMMENTS THAT I ALSO ATTENDED THE ROAD DIET MEETING THAT WAS PUT ON BY DEPUTY MANAGER OPSOMER.
AND I THINK ONE OF THE KEY THINGS THAT WAS DISCUSSED, AND I THINK TO THE SURPRISE OF MANY, WAS THAT IT WASN'T SIMPLY ABOUT ADDING A BIKE LANE TO HASLETT ROAD.
THESE CHANGES, THESE PROPOSED CHANGES, ARE ALL ABOUT SAFETY, BOTH VEHICULAR SAFETY AS WELL AS PEDESTRIAN SAFETY.
AND I THINK THAT WAS SOMETHING THAT WAS VERY TOP OF MIND FOR A LOT OF THE RESIDENTS WHO CAME TO THAT EVENT LAST NIGHT.
FOR THOSE WHO MAY NOT HAVE BEEN ON THE BOARD AT THAT TIME, WE DID HAVE A COUPLE OF ACCIDENTS INVOLVING PEDESTRIANS CROSSING HASLETT ROAD OVER THE LAST FEW YEARS.
SOME CHILDREN, IN FACT, THAT WERE HIT.
AND ONE OF THE MAIN THRUSTS OF THIS PROJECT WOULD BE TO, ONE, CREATE A CENTER TURN LANE ON HASLETT ROAD, WHICH WOULD FACILITATE PEDESTRIAN REFUGE ISLANDS AND ADDITIONAL CROSSWALKS AT SEVERAL PLACES THAT PEDESTRIANS ROUTINELY USE WITHOUT A CROSSWALK TODAY.
AND SO I THINK THAT WAS SOMETHING THAT A LOT OF FOLKS DIDN'T KNOW WHO WALKED INTO THAT MEETING AND WALKED OUT OF THAT MEETING WITH A LOT OF GOOD INFORMATION.
AND I'D SAY WITH VERY FEW EXCEPTIONS, WE'RE RELATIVELY UNITED IN THE GOAL OF SEEING ADDITIONAL SAFETY MEASURES BEING IMPLEMENTED ON HASLETT ROAD.
AND SO I WAS VERY HAPPY WITH THE OUTCOME OF THAT MEETING.
IT WAS PUT ON PROFESSIONALLY WITH AN EXCELLENT PRESENTATION.
AND I WANT TO COMMEND DEPUTY MANAGER OPSOMMER, MANAGER DEMPSEY, OUR FRIENDS AT THE ROAD DEPARTMENT, AND CHIEF GRILLO FOR DOING A LOT OF GOOD INFORMING LAST NIGHT.
[8. APPROVAL OF AGENDA ]
NONE, WE MOVE TO APPROVAL OF THE AGENDA.DO WE HAVE A MOTION TO APPROVE THE AGENDA? TRUSTEE WILSON? MOVE TO APPROVE THE AGENDA.
SECOND BY TREASURER BURGHARDT.
ANY DISCUSSION ON THE AGENDA? SEEING NONE, ALL THOSE IN FAVOR, PLEASE SAY AYE.
ITEM NUMBER NINE ON OUR AGENDA
[9. CONSENT AGENDA ]
IS THE CONSENT AGENDA.WE HAVE A NUMBER OF ITEMS ON OUR CONSENT AGENDA THIS EVENING, INCLUDING COMMUNICATIONS WITH THE TOWNSHIP BOARD.
WE HAVE OUR REGULAR MEETING FROM AUGUST 18TH MINUTES, AS WELL AS OUR CLOSED SESSION MINUTES.
MAKE SURE YOU TAKE A LOOK IN YOUR FOLDERS AND REVIEW THOSE BEFORE WE GO AHEAD AND WORK ON THE CONSENT AGENDA HERE.
WE ALSO HAVE THE BILLS, A MEMO ABOUT SOME TRAFFIC CONTROL ORDERS FOR FOOTBALL SEASON.
A MOTION TO SET A PUBLIC HEARING DATE FOR THE TOWNSHIP BUDGET IN A COUPLE OF WEEKS.
THE PATHWAYS CONTRACT AWARDS, THE 2027TH YEAR MANAGEMENT PROGRAM RESOLUTION, AND A CONTRACT WITH BRIGHTLINE FOR HARD DRIVE REPLACEMENT.
ANY MOTIONS TO BE HAD ON THE CONSENT AGENDA? TRUSTEE TREZISE? I MOVE TO APPROVE THE CONSENT AGENDA, BUT I DO HAVE A CORRECTION TO MAKE IN THE MINUTES IF WE GET A SECOND.
OKAY. DO WE HAVE A SECOND FOR THAT? I'LL SECOND.
TRUSTEE TREZISE? YEAH, ON PAGE 25 OF OUR PACKET, WHICH IS PAGE 7 OF THE MINUTES FROM AUGUST 18TH.
AFTER WE CAME BACK IN FROM CLOSED SESSION, THE FIRST MOTION THAT I MADE WAS TO AUTHORIZE COUNCILS TO GO FORWARD AND ACCEPT RECOMMENDATIONS.
THAT COUNCIL SHOULD BE SPELLED C-O-U-N-S-E-L, RATHER THAN C-I-L, AND THE RECOMMENDATION IS TO ACCEPT HIS RECOMMENDATION AS MADE IN CLOSED SESSION.
THAT'S APPROPRIATE, BUT THE CORRECTION
[01:05:01]
OF THE GRAMMAR IS IN ORDER.ALL RIGHT. WE'VE GOT A MOTION AND A SECOND FOR THE CONSENT AGENDA WITH THE AMENDMENT TO THE REGULAR MEETING MINUTES AS DISCUSSED.
ANY FURTHER DISCUSSION ON THE CONSENT AGENDA? SEEING NONE, WILL CLERK DEMAS PLEASE CALL THE ROLL? CLERK DEMAS, YES. TREASURER BURGHARDT? YES.
BOARD MEMBERS, IF YOU WOULD PLEASE PASS YOUR COLORFUL FOLDERS TO THE CLERK SO WE CAN DIRECT THOSE. WE'D APPRECIATE.
WELL, WHEN IT IS, IT IS SPELLED CORRECTLY JUST FROM THE...
NO, I WISH I WOULD HAVE CAUGHT THAT.
I'M ASHAMED I USUALLY CATCH THOSE. GOOD JOB TO YOU, TRUSTEE TREZISE.
WELL, IT DIDN'T MAKE SENSE THE WAY I READ IT.
WHICH COUNCIL? WHICH COUNCIL, YES.
[10.A. 4690 Okemos Road Proposed Brownfield Plan ]
ALL RIGHT. ITEM 10 ON OUR AGENDA IS OUR PUBLIC HEARING THIS EVENING.WE HAVE DIRECTOR CLARK HERE TO TALK TO US ABOUT THE 4690 OKEMOS ROAD PROPOSED BROWNFIELD DEVELOPMENT PLAN PUBLIC HEARING.
DIRECTOR CLARK, WOULD YOU GIVE US A BRIEF INTRODUCTION, PLEASE? I SURE WILL. GOOD EVENING, CLARISSA.
THE BROWNFIELD REDEVELOPMENT AUTHORITY HAS HELD TWO MEETINGS.
IT'S THEIR JULY 9TH MEETING AND AUGUST 13TH MEETING TO HEAR A PROPOSAL FROM THE DEVELOPERS AND PROPERTY OWNERS OF 4690 OKEMOS ROAD AND ADJOINING PROPERTIES.
THIS PLAN WE'VE ALLUDED TO A COUPLE OF TIMES WHEN WE TALKED TO YOU ABOUT THE PUBLIC MY NEIGHBORHOOD GRANT PROGRAM.
SO WE HAVE DISCUSSED THIS IS A REHABILITATION PROJECT THAT'S PROPOSED TO MEET THE QUALIFICATIONS OF THE ACT.
AFTER THE BROWNFIELD AUTHORITY MOVES FOR ADOPTION OF A PLAN, THEY MAKE A RECOMMENDATION TO THE TOWNSHIP BOARD TO HOLD A PUBLIC HEARING.
WE HOLD THAT PUBLIC HEARING TO ALLOW THE TAX JURISDICTION AND ANYONE, YOU KNOW, ASSOCIATED WITH THE PROJECT, ANYONE IN THE COMMUNITY TO GIVE US THEIR COMMENTS RELATED TO THE PROJECT.
TONIGHT WE HAVE THE CONSULTANT, CONNOR ZUCK FROM TRITERA, AS WELL AS THE DEVELOPER, SHUNEE KANDULA, TO WALK US THROUGH THE PRESENTATION.
SO WE'LL DO THE PRESENTATION OVER THE GENERAL BROWNFIELD PLAN DURING THE PUBLIC HEARING.
AFTERWARD, LATER ON IN THE EVENING, YOU HAVE DISCUSSION FOR THE PLAN.
SO IF THE BOARD HAS ANY SPECIFIC QUESTIONS RELATED TO THE PLAN, EXECUTION OR ANYTHING ELSE, WE WOULD ASK THAT YOU WOULD ASK THOSE QUESTIONS WHEN WE GO THROUGH THOSE DETAILS.
SO I'M GOING TO CALL CONNOR ON UP AND SHUNEE IF YOU WANT TO COME ON UP.
AND WE WILL OFFICIALLY OPEN THE PUBLIC HEARING AT 7.06 P. M.
SO BEFORE YOU, AS DIRECTOR CLARK MENTIONED, IS A BROWNFIELD PLAN FOR 4690.
IT'S AT THE CORNER OF OKEMOS ROAD AND HAMILTON, AS MR. DEMPSEY MENTIONED IN HIS REPORT.
AS THE VILLAGE IS UNDERWAY, WELL, HERE'S ANOTHER CORNER THAT NEEDS SOME LOVE.
SO THE ELIGIBLE PROPERTY SPANS FIVE PARCELS AND THREE BUILDINGS.
IT ALSO INCLUDES THE PARKING LOT PARCELS.
THERE'S A BRIEF OVERVIEW OF THE DEVELOPER.
I HAVE THREE WITH ME REPRESENTING THE DEVELOPER.
THE SUBJECT PROPERTY, AS I SAID, IS FIVE PARCELS.
THE PARCEL DESIGNATIONS ARE LISTED BELOW.
IT IS A HOUSING PROPERTY AND ADJACENT AND CONTIGUOUS.
WHEN WE TALK ABOUT HOUSING PROPERTY, THAT IS ANY PARCEL THAT PROPOSES ONE RESIDENTIAL UNIT OR MORE.
WITH THAT SAID, THE ACTIVITIES FOR THE BOTTOM RIGHT PARCEL, THAT IS A COMMERCIAL-ONLY BUILDING.
SO THAT HAS BEEN LIMITED TO JUST A PHASE ONE ASSESSMENT.
THIS IS THE RENOVATION OR REHABILITATION OF TWO MIXED-USE BUILDINGS AND ONE COMMERCIAL BUILDING.
IT WILL CREATE 10 NEW FULL-TIME JOBS, EIGHT NEW PART-TIME JOBS, AND RETAIN 10 CURRENT FULL-TIME JOBS.
THE TOTAL INVESTMENT IS APPROXIMATELY $5.3 MILLION WITH AN ESTIMATED SEV OR TAXABLE VALUE INCREASE FROM ITS CURRENT $750,000 UP TO $1.7 MILLION.
THE REHABILITATION WILL INCLUDE SEVEN RESIDENTIAL UNITS AND 11 COMMERCIAL UNITS ACROSS THE THREE BUILDINGS.
IT PROMOTES FUTURE REACTIVATION OF SURROUNDING BUILDINGS AS WELL.
[01:10:01]
PHASE ONE AND PHASE TWO SITE ASSESSMENTS HAVE OCCURRED AT THE PROPERTY.PHASE TWO SITE INVESTIGATIONS REVEALED NO CONTAMINATION PRESENT IN THE SOIL, GROUNDWATER, OR SOIL GAS.
SO ITS ELIGIBILITY, AGAIN, IS A HOUSING PROPERTY BASED ON THE CREATION OF SEVEN RESIDENTIAL HOUSING UNITS AND THE ADJACENT AND CONTIGUOUS PARCELS TO THE PROPERTY.
SO PROJECT RENTAL RATES, THIS BEING A HOUSING PROPERTY OR HOUSING PROJECT, IT IS WITHIN THE VRA'S POLICY OF RENT RESTRICTING UNITS TO THOSE NOT MAKING MORE THAN 120% AMI FOR THE DURATION OF THE PLAN.
THAT 20% IS SPREAD OUT BETWEEN UNIT TYPES, SO ONE BEDROOM AND TWO BEDROOMS. OF THE SEVEN TOTAL UNITS BEING CREATED, THREE WILL BE INCOME RESTRICTED.
THAT'S APPROXIMATELY 43% OF THE TOTAL UNIT COUNT.
AND THIS ILLUSTRATES 120% AMI FOR THOSE UNIT TYPES AND THEN THE PROPOSED PROJECT RENTS.
ALL RIGHT, A LOT MORE NUMBERS FOR YOU GUYS.
SO THE NEW TAX IS CAPTURED FOR ELIGIBLE ACTIVITIES.
SO THIS IS OUR ELIGIBLE ACTIVITY BREAKDOWN.
WHAT WE PROPOSE THE DEVELOPER BE REIMBURSED AT THIS PROPERTY IS OUR PRE-APPROVED EGLE ELIGIBLE ACTIVITIES, TOTALING ABOUT 15,800.
THAT'S OUR PHASE ONES, PHASE TWOS.
AND THEN MISTA ELIGIBLE ACTIVITIES.
SO IT'S ASBESTOS AND LEAD, DEMOLITION, INFRASTRUCTURE IMPROVEMENTS, PARKING LOT AND BACK, AND THEN HOUSING DEVELOPMENT ACTIVITIES.
AND HOUSING DEVELOPMENT ACTIVITIES MAY SEEM VAGUE IN THIS ONE.
WHAT WE'RE GOING FOR IS QUALIFIED REHABILITATION ACTIVITIES.
THESE ARE COSTS THAT DIRECTLY SUPPORT THE REHABILITATION.
AND THEN YOU HAVE 15% CONTINGENCY ON THOSE REHABILITATION ACTIVITIES.
AND THEN OUR COSTS FOR PREPARATION, IMPLEMENTATION, AND AN APPLICATION FEE.
AND THEN YOU'LL NOTICE INTEREST AND UP TO 5% SIMPLE.
I'D LIKE TO HIGHLIGHT THAT UP TO IS JUST LANGUAGE HERE.
WE WORK WITH DIRECTOR CLARK, AND THIS IS ACTUALLY 1.75% INTEREST.
OVER THE 15-YEAR CAPTURE DURATION THAT THIS PLAN PROPOSES, THERE WOULD BE THE $900,000 IN ELIGIBLE ACTIVITIES BEING REIMBURSED TO THE DEVELOPER.
THE STATE BROWNFIELD FUND WOULD CAPTURE APPROXIMATELY $56,000.
THE BRA ADMIN WOULD GET 10% AT $110,000.
THE LOCAL BROWNFIELD REVOLVING FUND CAPTURES THEIR 5% AT $54,000.
AND THEN THE BASE TAXES AND ANY DEBT MILLAGES EQUATE TO ABOUT $967,000.
SO TOTAL NEW TAXES GENERATED OVER THAT 15-YEAR PERIOD WOULD BE JUST OVER $2 MILLION.
AND THIS GRAPH HIGHLIGHTS EXACTLY THAT, WHEREAS THE BLUE BARS HERE, THOSE ARE WHAT THE DEVELOPER PAYS AND FLOW TO TAXING JURISDICTIONS, ESSENTIALLY WHAT YOU KEEP.
RED IS DEVELOPER REIMBURSEMENT, AND THEN BLUE IS CAPTURE THAT GOES, SORRY, GREEN IS CAPTURE THAT GOES TO ADMIN FEES, STATE BROWNFIELD REVOLVING FUND, AND LOCAL BROWNFIELD REVOLVING FUND.
YOU'LL NOTICE WE INCLUDE SOME EXTRA YEARS AT THE END, 16, 17, AND 18, TO HIGHLIGHT THAT ONCE THE PLAN ENDS AND CAPTURES FULLY, OR THE DEVELOPER IS FULLY REIMBURSED, ALL OF THE TAXES THEN FLOW TO THEIR RESPECTIVE JURISDICTIONS.
THIS IS A BREAKDOWN OF TOTAL STATE AND LOCAL INCENTIVES, AND THEN THEIR PROPORTIONAL SHARE.
SO THE PROJECT IS ALSO SEEKING A MSHDA CDBG GRANT, THAT TOTALS $700,000.
THE STATE MILLAGE THROUGH HOUSING TIF, SO WHAT WE CAPTURE THROUGH STATE TAXES, WOULD BE JUST UNDER $450,000.
AND THEN THE LOCAL MILLAGE CAPTURE WOULD BE $676,000.
SO WHEN WE LOOK AT STATE AND LOCAL CONTRIBUTIONS, THE LOCAL CONTRIBUTION IS APPROXIMATELY ONE THIRD, WHILE THE STATE IS TWO THIRDS.
COMMUNITY BENEFITS OF THIS PROJECT AND HOUSING PROJECTS.
IT ATTRACTS NEW BUSINESSES IN AND AROUND THE AREA.
JOB CREATION, WHICH WE MENTIONED BEFORE, 10 NEW FULL-TIME JOBS.
IT'S GOING TO CREATE SEVEN HIGH QUALITY RESIDENTIAL APARTMENT UNITS THAT WILL BE INCOME RESTRICTED FOR THE DURATION OF THIS PLAN.
IMPROVED NEIGHBORHOOD APPEARANCE, SURROUNDING PROPERTY VALUE INCREASES, INCREASING THE TAX BASE,
[01:15:01]
ASBESTOS AND LEAD REMOVAL REMEDIATION, AND ALSO LIMITING URBAN SPRAWL.THIS IS A FURTHER BREAKDOWN OF OUR ELIGIBLE ACTIVITIES.
IT BASICALLY TAKES THAT TABLE BEFORE, REITERATES WE HAVE OUR PRE-APPROVED ELIGIBLE ACTIVITIES, ASBESTOS AND LEAD, DEMOLITION, INFRASTRUCTURE IMPROVEMENTS, HOUSING DEVELOPMENT ACTIVITIES IN THE FORM OF QUALIFIED REHABILITATION, AND THEN OUR COSTS, AS WELL AS THAT UP TO, OR 1.75 IN THIS CASE, INTEREST COSTS.
THIS IS A 16-YEAR PLAN WITH 15 YEARS OF CAPTURE.
AFFORDABILITY, THREE OF THOSE UNITS, OR 43%, WILL BE KEPT AFFORDABLE FOR THE DURATION OF THIS PLAN.
I KNOW IT SAYS 25 YEARS. I THINK THERE WAS A CARRYOVER.
AND THEN COMMUNITY DEVELOPMENT, YOU KNOW, BEFORE SEVEN ATTAINABLE UNITS RUN RESTRICTED FOR THE DURATION OF THIS PLAN, 10 NEW FULL-TIME JOBS, 8 NEW PART-TIME JOBS, AND REIMBURSEMENT, AGAIN, IS APPROXIMATELY 900,000 OVER A 15-YEAR PERIOD.
ALL RIGHT. SO THIS IS TIME THAT WAS SET ASIDE FOR PUBLIC HEARING.
THE BOARD WILL DISCUSS THIS AT A LATER AGENDA ITEM.
SO AT THIS POINT, I WOULD ASK FOR ANY MEMBERS OF THE PUBLIC WISHING TO SPEAK TO THIS ISSUE.
NOW WOULD BE THE TIME TO DO SO.
SEEING NO MEMBERS OF THE PUBLIC MAKING THEIR WAY UP, WE'LL GO AHEAD AND CLOSE THE PUBLIC HEARING AT 7.15 P. M.
NEXT ON OUR AGENDA IS ITEM 11, BOARD ACTION ITEMS. WE HAVE NONE THIS EVENING.
[12.A. 4690 Okemos Road Proposed Brownfield Plan ]
AROUND TO THE 4690 OKEMOS ROAD BROWNFIELD PLAN, DIRECTOR CLARK.YEAH, THE AGENDA LOOKED A LITTLE DIFFERENT EARLIER LAST WEEK.
SOME CHANGES. SO GOOD EVENING.
SO WE JUST HAD THE CONSULTANTS, TRITERA, TAKE US THROUGH THIS BROWNFIELD PLAN.
TRITERA HAS BEEN AT THE TOWNSHIP SINCE THE BEGINNING OF OUR BROWNFIELD HISTORY HERE.
AND WE'VE ACTUALLY DONE A PRETTY GOOD JOB.
I THINK I'M GETTING A LOT MORE COMFORTABLE WITH THEM.
SO WE BRING IN, WE BROUGHT IN SRINI AND VISTALUX REALTY TWO YEARS AGO TO DISCUSS THE PURCHASE OF THE 4690 OKEMOS BUILDING.
SO THAT IS THE NORTHEAST CORNER OF WHAT WE CONSIDER OUR FOUR CORNERS.
I KNOW A LOT OF PEOPLE HAVE BEEN THINKING ABOUT THE WEST CORNERS, BUT WE'RE ON THE EAST SIDE NOW.
AND THAT IS STILL AN IMPERATIVE AND PRIORITY REDEVELOPMENT OPPORTUNITY FOR US.
SO BESIDES THIS PROJECT BEING IN THE OKEMOS PICA, IT ALSO FOCUSES HEAVILY ON HOUSING ATTAINABILITY AND RENT RESTRICTION.
AS THE DEVELOPER SAID, THEY'RE SPECIFIED IN OUR POLICY FOR HOUSING FOR A PROPERTY THAT HAS MULTIFAMILY UNITS THAT, YOU KNOW,.
THE SPREAD OF THE UNITS HAVE TO BE INCLUDED IN THE MACHINATION OF THE ATTAINABLE HOUSING.
AND SO THERE ARE SIX ONE-BEDROOM UNITS ON THE PROPERTY CURRENTLY, AND THERE'S ONLY ONE TWO-BEDROOM UNIT.
SO ONE TWO-BEDROOM UNIT, ACTUALLY TWO TWO-BEDROOM UNITS, AND THE ONE TWO-BEDROOM.
NOW I'VE PROBABLY CONFUSED YOU ALL, RIGHT? SO ONE, TWO, ONE-BEDROOM UNITS, AND ONE TWO-BEDROOM UNIT IS UNDERNEATH THIS BROWNFIELD PLAN FOR THE 16-YEAR DURATION.
BECAUSE THIS PROJECT IS ALSO PURSUING $700,000 FROM THE STATE OF MICHIGAN THROUGH THE MY NEIGHBORHOOD GRANT.
THAT HAS AN 80 PERCENT AMI, SO THAT'S A LOWER AREA MEDIAN INCOME RENT RESTRICTION.
AND THOSE PARAMETERS FOR THE DURATION OF THE RENT RESTRICTIONS, AT LEAST FIVE YEARS WITH MSHDA.
SO THE DEVELOPER WILL HAVE THE OTHER FOUR ONE-BEDROOM UNITS RENT RESTRICTED FOR FIVE YEARS AT THE 80 PERCENT.
SO THERE'LL BE EVEN LESS RENT MONTHLY THAN THE OTHER THREE UNITS.
SO UNDERNEATH THIS BROWNFIELD HOUSING PLAN, YOU'LL HAVE ONE UNIT THAT IS A SINGLE BEDROOM, A SECOND UNIT THAT IS A SINGLE BEDROOM, AND ONE UNIT THAT IS TWO BEDROOMS. THOSE THREE APARTMENT UNITS WILL BE UNDER A 16-YEAR ATTAINABLE DURATION.
SO FOR 16 YEARS, THOSE RENTS WILL BE RESTRICTED UNDER 120 PERCENT AMI.
BECAUSE WE ARE LAYERING THE MY NEIGHBORHOOD PROGRAM, AND THE STATE OF MICHIGAN HAS SET THE PARAMETERS FOR WHAT THAT ATTAINABLE HOUSING WILL BE.
THOSE FOUR SINGLE BEDROOM UNITS WILL BE AN 80 PERCENT AMI FOR AT LEAST FIVE YEARS.
SO I CAN GO OVER THAT AGAIN IF THEY NEED CLARIFICATION.
OKAY. SO THIS PLAN, AS WE SAID,
[01:20:02]
IT DOES HAVE 4690 OKEMOS ROAD AND 4696 OKEMOS ROAD.THOSE ARE THE TWO EXISTING MIXED-USE BUILDINGS. 2114 HAMILTON ROAD IS THE SINGLE COMMERCIAL BUILDING.
YOU'LL SEE ON THE MAP YOU'VE GOT TWO PROPERTIES THAT ARE CONTIGUOUS, ALSO MORE STREET PROPERTIES THAT INCLUDE THE PARKING LOT AND THAT VACANT GREEN SPACE.
I'VE HAD A COUPLE OF DISCUSSIONS.
AGAIN, THE REASON WHY THIS PROJECT IS PROPOSED AS A REHABILITATION INSTEAD OF A COMPLETE RAISING OF THE SITE, AS WE'VE KNOWN ON THE WEST SIDE, A LOT OF THE INFRASTRUCTURE ISSUES WHEN YOU COMPLETELY DEMOLISH A PROPERTY IN SUCH A TIGHT, DENSE, AND HISTORICALLY DEVELOPED AREA.
BECAUSE THE PROPERTY DOES NOT HAVE ANY TRADITIONAL CONTAMINATION, THE BROWNFIELD HAD A LITTLE BIT OF A STUTTER START.
BECAUSE TRADITIONALLY A PRODUCT IS PROPOSED, THERE'S CONTAMINATION OR SOME OTHER ENVIRONMENTAL ELEMENT THAT IS TO BE REMOVED OR REMEDIATED IN THIS PROPERTY THAT DOES NOT EXIST.
SO THE PHASE ONES ARE CLEAR, WHICH MEANS THIS IS ONLY ELIGIBLE THROUGH OUR BROWNFIELD POLICY FOR THE HOUSING ELEMENTS.
MISTA ALSO, IN OUR EXPERIENCE WITH THE HAZARD VILLAGE SQUARE PLAN THAT WE SUBMITTED A FEW MONTHS AGO TO THEM, ALSO WILL NOT ALLOW FOR A SINGLE COMMERCIAL-ONLY BUILDING TO BE INCLUDED ON THEIR SIDE OF THE PLAN FOR THE CAPTURE.
SO WE ALWAYS ELIMINATE THE COMMERCIAL-ONLY BUILDING AND PUT THAT ONLY INTO THE TOWNSHIP OR LOCAL-ONLY, SO THAT'S TOWNSHIP AND COUNTY MILLAGE CAPTURES.
THAT WAY WE'RE IN COMPLIANCE WITH WHAT MISTA WOULD APPROVE IN A BROWNFIELD PLAN.
SO OUR BROWNFIELD AUTHORITY AT OUR AUGUST 13TH MEETING PRESENTED A RECOMMENDATION TO YOUR BODY TO HOLD THIS PUBLIC HEARING.
THEY DID MOVE FORWARD WITH A FORMAL ADOPTION THROUGH A RESOLUTION OF THE BROWNFIELD PLAN PRESENTED TO YOU THIS EVENING.
THE DEVELOPERS ARE LOCAL, SO AGAIN THAT'S ONE THING I REALLY LIKED AND APPRECIATED IS THAT THEY CAME TO THE TOWNSHIP BEFORE THEY PURCHASED THE PROPERTY AND ASKED US WHAT OUR VISION IS.
THEY WERE INTERESTED IN LOOKING AT WHAT COULD THEY DO TO THE PROPERTY AND THEN WHAT WERE THE HURDLES? WHAT ARE THE REASONS WHY THE LAST HALF OF OKEMOS ROAD IS UNFINISHED? WHAT DID WE RUN INTO? SO THEY DID A LOT OF RESEARCH PRIOR TO, AND THEN THERE WAS A LITTLE BIT OF A PUSH AND PULL WITH THE PREVIOUS PROPERTY OWNERS BEING WILLING TO SELL.
SO THEY SOLD, PURCHASED THE PROPERTY, AND PROCEEDED TO BEGIN WITH REDEVELOPMENT.
THIS HAS NOT BEEN A STALL OR A SLOWDOWN FROM THE DEVELOPER AT ALL.
THEY'VE BEEN IN COMPLETE CONTACT WITH US.
SO WE PRESENTED SOME OF THE GENERAL FINANCIAL ELEMENTS OF THE BUDGET TO YOU.
I WILL CALL ATTENTION TO THE HOUSING ACTIVITIES.
THAT IS THE RENT RESTRICTION THAT WILL CARRY FOR THE SEVEN HOUSING UNITS.
I'VE ALSO DISCUSSED WITH KATIE LOVE THROUGH THE COMMUNITY SERVICES COMMISSION.
THEY DO PROVIDE SOME, IN SOME CASES, AND ON A SMALL SCALE, INCOME VERIFICATION FOR THE COMMUNITY WHEN NECESSARY.
SHE SAID THAT SEVEN HOUSING UNITS, SHE BELIEVES THE COMMUNITY RESOURCES COMMISSION COULD TAKE THAT ON AS INCOME VERIFICATION AS WELL.
AND IT WOULD ONLY BE FOR, IT WOULD BE SPECIFICALLY FOR THE HOUSING UNITS UNDERNEATH OUR BROWNFIELD PLAN BECAUSE THE MISSION REQUIREMENTS ALREADY HAVE BAKED INTO THEM WHAT THE ANNUAL INCOME REVIEW AND WHAT THEIR REQUIREMENTS ARE.
AGAIN, THAT'S THREE SEPARATE UNITS, SO THREE FAMILIES, PROBABLY ONE APPLICATION.
SHE DOES NOT FEEL LIKE IT WOULD BE A HARDSHIP FOR HER THROUGH THE DEPARTMENT TO REVIEW THE INCOME VERIFICATION.
EACH YEAR, THE PROPERTY OWNER AND DEVELOPER HAVE TO SUBMIT THE INCOME VERIFICATION TO THE STATE AND TO THE BROWNFIELD AUTHORITY AS WELL, JUST LIKE HASLIP.
SO WE'VE BROKEN DOWN THE TOTAL REIMBURSEMENT FOR YOU.
ALL THE DIFFERENT BUCKETS TALKED ABOUT INTEREST.
OUR BROWNFIELD POLICY DOES ALLOW FOR INTEREST TO BE INCLUDED IN THE REIMBURSEMENT.
THE DEVELOPER DOES HAVE TO EXPLAIN AND MAKE A CASE FOR THE REASONS OF WHY THEY WOULD LIKE THE INTEREST.
OUR BROWNFIELD AUTHORITY DISCUSSED IT.
THEY DO BELIEVE THAT IN THE REIMBURSEMENT AGREEMENT, THEY WOULD LIKE SOME SPECIFICATIONS RELATED TO THE INTEREST, BUT THE DOLLAR AMOUNT WAS SOMETHING THAT THEY FELT COMFORTABLE WITH.
YOU CANNOT TAKE ACTION ON THE PLAN THIS EVENING.
THERE HAS TO BE A TIME FOR THE PUBLIC TO REVIEW IT AND ALSO SOME, AT LEAST 10 DAYS BEFORE THE TOWNSHIP COULD TAKE ACTION.
SO THERE ISN'T A MOTION FOR YOU THIS EVENING.
BUT I'M HERE TO ANSWER ANY QUESTIONS.
TALK ABOUT THE PLAN, GETTING THROUGH ANY SPECIFICS THAT YOU MIGHT NEED SO THAT AT A FUTURE DATE WE CAN BRING IT BACK, HOPEFULLY, FOR ACTION.
I'M GOING TO GO AHEAD AND KICK US OFF IF THAT'S...
SO WE SAW AN APPLICATION REGARDING THIS PROPERTY A FEW MONTHS AGO.
THAT WAS FOR SPECIFICALLY WHAT?
[01:25:02]
FOR THE MY NEIGHBORHOOD GRANT PROGRAM.AND THAT WAS BASICALLY OUR SUPPORT OF THAT APPLICATION TO THE STATE.
YES. YEP. WE WERE FOLLOWING THE REQUIRED GUIDELINES FROM THE STATE IN ORDER TO BE AN APPLICANT.
THE TOWNSHIP HAS TO BE THE APPLICANT.
OKAY. SO TONIGHT WE'RE TALKING ABOUT A BROWNFIELD PLAN, WHICH IS ITSELF DIFFERENT THAN A HOUSING TIF. IS IT NOT? BECAUSE OF YOUR UPDATES TO OUR POLICY IN THIS CASE, NO, THEY ARE NOT.
WE'RE CONSIDERING IT A HOUSING TIF.
THIS IS A BROWNFIELD PLAN BECAUSE THE HOUSING ACTIVITIES ARE ELIGIBLE UNDERNEATH THE NEW UPDATED STATE ACT.
OKAY. GOT IT. WE JUST CALLED IT A HOUSING TIF IN HAZLITT BECAUSE OF REASONS.
AND THIS IS ESSENTIALLY THE SAME STYLE OF APPLICATION HERE ON THIS PROPERTY.
DOES THE LAW CHANGE? I DON'T THINK LAW CHANGE. I THINK WE'RE JUST NAMING IT SOMETHING DIFFERENT HERE.
SO IN 2023, THE BROWNFIELD ACT DID CHANGE AT THE STATE LEVEL AND WE MADE POLICY CHANGES.
I THINK MAYBE, YEAH, MAYBE THE VERNACULAR HOUSING, THE BROWN, OR THE HASLETT HOUSING TIF, IT COMES OUT OF A BROWNFIELD PLAN. IT'S THE SAME THING.
OKAY. THANK YOU. THAT'S HELPFUL.
CAN YOU EXPLAIN IN A LITTLE BIT GREATER DETAIL HOW THE COMMERCIAL BUILDING THEN IS OR IS NOT INCLUDED IN THIS, IN THE FUNDS THAT THEY CAN CAPTURE FOR IT? SO IT IS INCLUDED WHEN WE SHOW THE BUCKETS OF WHICH ENTITIES ARE, WHICH ENTITIES' TAXES ARE USED IN THE CAPTURE.
IT WILL BE ONLY INGHAM COUNTY, MERIDIAN TOWNSHIP TAXES THAT WILL SUPPORT THE CAPTURE OF THAT BUILDING BECAUSE MISTA'S POLICIES DO NOT ALLOW THAT.
I SEE. AND OURS DO BECAUSE IT IS BOTH A HOUSING TIF AND A BROWNFIELD ITSELF.
CORRECT. YES. YES. YES. OUR BROWNFIELD DID HAVE A SAME DISCUSSION. YES. CORRECT. YOU ARE ABSOLUTELY CORRECT.
OKAY. THANK YOU. THAT'S, I WAS FOLLOWING ALONG WITH ALL THE BEDROOMS AND ALL THE, YOU KNOW, THAT'S IN THE COMMERCIAL SITE AND YOU LOST ME.
OKAY. THANK YOU. THAT'S, THAT'S HELPFUL CLARIFICATION.
I GUESS TO OUR APPLICANT, CAN YOU TELL US WHAT THE TIMELINE IS, SHOULD YOU BE SUCCESSFUL IN RECEIVING ALL THE INCENTIVES THAT YOU'RE, THAT YOU'RE WORKING TOWARD HERE? RIGHT UP TO THE MIC.
YEAH. GOOD EVENING TO YOU ALL. SUPERVISOR HENDRICKSON.
SO IN TERMS OF TIMELINE, WE WOULD LIKE TO KICK OFF IN THE NEXT THREE TO FOUR MONTHS.
BUT AGAIN, MISTA APPLICATION HAS TO HAPPEN IN A CERTAIN TIMEFRAME.
SO WE MISSED THE WINDOW FOR THE LAST TRANCHE OF THE DISTRIBUTION.
SO NOW THIS GOES INTO THEIR APPROVAL PROCESS IN THE NEXT FEW, THREE TO FOUR MONTHS IS WHAT I'M ASSUMING NUMBER HERE.
SO AS SOON AS THE PROCESS IS COMPLETED, WE ARE READY TO HIT THE GROUND WITH THE PROJECT.
SO I WOULD SAY BY, SO NOW WE ARE INTO SEPTEMBER BY JANUARY, FEBRUARY TIMEFRAME, WE CAN KICK OFF THE HOUSING PART OF THE OVERALL PROJECT.
OKAY. AND THEN YOUR DURATION IS WHAT, WITH AN EXPECTED COMPLETION DATE OF WHAT? SO AS IT STANDS NOW, AS LONG AS ALL THESE MISTA AND YOUR APPROVAL PROCESS GOES THROUGH, SIX TO SEVEN MONTHS IS THE COMPLETION PHASE FOR THE HOUSING PART OF IT.
AND THEN PHASE TWO OF THE IMPROVEMENT, FACADE IMPROVEMENTS AND ADDITIONAL, I'M NOT SURE IF YOU HAVE SEEN THE FACADE IMPROVEMENTS AND OTHER IMPROVEMENTS THAT WE'RE USING FOR THE, WE'RE DOING FOR THE OVERALL PROJECT.
AND TOGETHER, I MEAN, IF I HAD TO ESTIMATE TWO YEARS OR LESS FOR PHASE ONE, WHICH IS HOUSING AND PHASE TWO, THE FACADE AND COMMERCIAL SPACE IMPROVEMENTS.
OKAY. SO WE'RE LOOKING AT MID-2028, YOU THINK, FOR FINAL COMPLETION OR THEREABOUTS.
ASSUMING EVERYTHING GOES YOUR WAY AND THERE'S NO DELAYS.
I'M HOPING IT ALIGNS WITH THE ROAD IMPROVEMENT AS WELL.
I'M CURIOUS, CAN YOU TALK ABOUT SPECIFICALLY WHAT KIND OF REHABILITATION YOU'RE DOING TO THE COMMERCIAL UNITS? BECAUSE WE DID HEAR LAST TIME YOU WERE IN FRONT OF US A FAIR AMOUNT ABOUT WHAT YOU WERE DOING FOR THE RESIDENTIAL COMPONENT AND THE COMMERCIAL WAS SORT OF OFF THE TABLE.
NOW, CAN YOU TELL US A LITTLE BIT MORE ABOUT WHAT'S INVOLVED IN YOUR PROJECT SCOPE
[01:30:02]
FOR THE COMMERCIAL UNITS? ABSOLUTELY. SO FOR THE COMMERCIAL SPACE, AGAIN, WE HAVE A CERTAIN NUMBER OF THOSE UNITS ARE CURRENTLY OCCUPIED.SO THOSE UNITS WILL HAVE THE MINIMAL IMPROVEMENTS INTERIOR-WISE.
SO THERE WILL BE HVAC REPLACEMENTS, BRAND NEW BECAUSE THEY'RE ALL AGED.
ALL THREE BUILDINGS HAVE HAD A BIT OF A BLIGHT AND NEGLECT OVER THE LAST MANY, MANY YEARS.
SO INTERIORS NEED IMPROVEMENTS, BUT THEN THOSE NEED TO BE PHASED IN FOR ESPECIALLY THE SPACES THAT ARE CURRENTLY OCCUPIED.
AND THE VACANT ONES, WE ARE DOING THE COMPLETE REHAB.
SO INTERIORS, WE ARE COMPLETELY REPLACING THE FLOORING, THE CEILING AND HVAC UNITS DEPENDING ON WHICH BUILDING IT IS.
SOME OF THE HVAC UNITS ARE OUTSIDE THE BUILDING.
SO ALL OF THOSE WILL BE REPLACED AND NET NEW.
THERE IS CERTAIN ELECTRIC REPLACEMENTS AS WELL.
ELECTRIC PANELS OR SOME OF THEM ARE 40 PLUS YEARS OLD.
SO IF YOU GO THROUGH THE INSPECTION NOW, I'M NOT SURE IF THEY WOULD PASS THE GUIDELINES.
THAT IS AS FAR AS THE INTERIOR GOES.
BUT THEN EXTERIOR IS A BIGGER IMPROVEMENT, THE EXTERIOR FACADE IMPROVEMENTS.
WE ARE PUTTING SOME MURALS AND THE ENTIRE FACE OF THE EXTERIOR WALLS WOULD BE MODIFIED SO THAT IT WILL HAVE A MODERN AND CONTEMPORARY LOOK.
SOME OF THE RENDERINGS, IF YOU HAVEN'T ALREADY SEEN, WE CAN SHAVE THEM.
I DON'T THINK THAT'S STRICTLY NECESSARY FOR OUR PURPOSES TO HAVE THE RENDERINGS.
BUT I THINK IT WOULD HELP US TO VISUALIZE, CONCEPTUALIZE SOME OF THE CHANGES THAT YOU MIGHT SEE AS A RESULT OF THAT.
THERE WAS A PRESENTATION EARLIER.
THERE WAS A PRESENTATION EARLIER SO WE CAN EITHER SEND YOU A LINK FROM THE DDA MEETING WHEN WE KIND OF WENT OVER SOME OF THE EXTERIOR.
AND YOU CAN SEE SOME OF THOSE RENDERINGS.
I'LL PAUSE THERE AND LET MY COLLEAGUES JUMP IN.
YOU SAID THE RENT RESTRICTIONS APPLY FOR DELIBERATION OF THIS BROWNFIELD STARTING WHEN? BROWNFIELD PLANS 2028, JANUARY 01, 2028 IS THE FIRST DAY OF CAPTURE.
SO IN DEANNE'S WORLD, THAT'S WHEN THE TIME STARTS, JANUARY 1ST, 2028.
FOR THE 16 YEARS FOR THOSE THREE UNITS THAT I COMPLETELY CONFUSED YOU ON.
THE TOWNSHIP'S DURATION HAS TO APPLY FOR THE PLAN DURATION, RIGHT? SO THAT RENT RESTRICTION, IT'S THE SAME.
SO PRIOR TO THAT, THE RENT IS NOT IN CONTROL.
IF THEY ARE UPGRADED AND PUT IN PLACE, THE RESTRICTIONS DON'T APPLY UNTIL 2028.
THEY'RE GOING AFTER THE MR. GRANT AND THEY ARE UTILIZING THE FULL GRANT.
AT LEAST OUR BUDGET SHOWS WE'RE USING THE FULL GRANT.
SO THE RENT RESTRICTION WOULD BEGIN THEN.
ACTUALLY, PROBABLY EVEN AT 80%.
SO IT WOULD BE LOWER THAN OUR REQUIREMENTS BECAUSE THEY WOULD BE UTILIZING STATE AND.
FEDERAL FUNDING THAT HAS THOSE RENT RESTRICTIONS REQUIRED.
WE'RE REALLY JUST ON THE BROWNFIELD RIGHT NOW.
THERE ARE ONLY THREE UNITS THAT WILL CARRY THE 16-YEAR RENT RESTRICTION REQUIREMENTS THAT THE TOWNSHIP HAS.
WHAT MISTA REQUIRES, WE DON'T REALLY HAVE A LOT OF CONTROL OVER THOSE.
AM I CORRECT IN ASSUMING THAT THE WHOLE PLAN IS CONTINGENT ON APPROVAL OF THE GRANT FROM MISTA TO A LARGE EXTENT? TO A LARGE EXTENT, WE WENT THROUGH OUR FIRST ROUND AND WE HAD RECEIVED THE APPROVED ALLOCATION FROM MISTA.
THE REASON WHY WE DID NOT MEET THIS DEADLINE FOR SEPTEMBER IS BECAUSE WE DID NOT COMPLETE THE BROWNFIELD PLAN.
SO MISTA NEEDS TO SEE ALL OF YOUR FINANCING BUCKETS FOR YOUR PROJECT, MUCH LIKE MEDC.
SO THIS IS OUR LAST FINANCIAL LEG.
THEY HAVE A 4.0 ROUND THAT BEGINS IN OCTOBER.
SO YOU BELIEVE THE FUNDING IS SECURE AND SO IT'S A MATTER OF GETTING YOUR DUCKS IN A ROW TO COLLECT IT? CORRECT.
DOES THAT LOOK LIKE A PRETTY GOOD HUNK OF CHANGE THAT WOULD SUPPORT THIS REMODELING? IT'S A PRETTY GOOD HUNK OF CHANGE AND WE WANTED TO MAKE SURE THAT IT ALSO WAS IDENTIFIED BUT NOT INCLUDED IN THE BROWNFIELD.
NOT ONLY JUST TO MEET STATE REQUIREMENTS BUT ALSO TO KNOW THAT THE BROWNFIELD IS A REIMBURSEMENT.
YOU ONLY GET REIMBURSED FOR THE ELEMENTS THAT YOU PAY FOR.
SO IF IT'S A GRANT, OBVIOUSLY IT CANNOT BE COUNTED AS A PART OF THE BROWNFIELD.
[01:35:03]
TRUSTEE LENTZ.TRUSTEE TREZISE'S POINTED TO SOMETHING THAT I WAS PLANNING ON ASKING, WHICH IS WITH THE CAPTURE STARTING, IT SOUNDS LIKE JANUARY 1ST OF 2028.
THE THREE TO FOUR MONTHS FROM NOW PLUS SIX TO SEVEN MONTHS UNTIL THE RESIDENTIAL AREA IS READY FOR MOVE-IN IS WHAT I'M HEARING.
SO THAT PUTS US RIGHT AROUND THE END OF 2027.
IF FOR SOME REASON THAT TIMELINE IS DELAYED, DOES THE CAPTURE START ON JANUARY 2028 EVEN IF MAYBE THE UNITS AREN'T READY FOR MOVE-IN UNTIL LET'S SAY MARCH 15TH BECAUSE OF WHATEVER REASON? IS THAT HOW THIS FINANCING WORKS WITH US HAVING NOW BE STARTING JANUARY 1ST? YEAH.
SO YOUR QUESTION IS I THINK IF THE FUNDING BUCKETS ARE RELIANT ON EACH OTHER IN SOME SEMBLANCE OF A WAY, THE MISSION GRANT REQUIRES THE RENTAL UNITS TO REMAIN UNOCCUPIED AND CANNOT BE OCCUPIED UNTIL CFO.
BUT IF LET'S SAY THERE WAS A DELAY, A BROWNFIELD ALLOWS FOR A FIVE-YEAR DEFER.
SO WE CAN ADOPT A PLAN AND THEN A DEVELOPER CAN SAY, YOU KNOW, WE'RE HAVING A DELAY.
WE'VE EXPERIENCED THIS WITH OTHER BROWNFIELDS IN OUR COMMUNITY WHERE THEY PUSH THE CAPTURE OFF TO ANOTHER YEAR.
IT COULD ALSO BE LIKE A PARTIAL YEAR OF CAPTURE IF THAT TAXABLE VALUE STILL INCREASED, BUT NOT TO THE EXTENT THAT WE ESTIMATED OR ANTICIPATED.
IT COULD BE A FIRST YEAR THAT'S JUST PARTIAL CAPTURE.
AND THEN OTHER QUESTION I HAD WAS RELATED TO THAT COMMERCIAL BUILDING.
I UNDERSTAND THE NUANCES OF HOUSING VERSUS BROWNFIELD AND THE PROJECT AS A WHOLE, TRYING TO PUT THIS AS SIMPLY AS POSSIBLE.
BECAUSE THAT BUILDING ON THE CORNER OF HAMILTON AND MOORE IS COMMERCIAL ONLY, ARE THERE RESTRICTIONS BASED AROUND WHAT ANY DEVELOPER MIGHT WANT TO DO WITH THIS PROPERTY MOVING FORWARD? LIKE, YOU KNOW, COULD IT BE TORN DOWN AND TURNED INTO ADDITIONAL HOUSING THAT WOULD THEN BE A PART OF THIS HOUSING CAPTURE, LET'S SAY? OR, YOU KNOW, IS THIS A STANDALONE COMMERCIAL PROPERTY THAT IS NOT INFLUENCED BY THE HOUSING ASPECTS OF THE SAME DEVELOPMENT NEXT DOOR? I THINK WHAT YOU'RE ASKING IS, LIKE, THE WAY THAT WE HAVE IT DEFINED IN THIS PLAN IS HOW THIS PROJECT, HOW THAT SITE COULD BE REDEVELOPED WITH THIS FUNDING IN THE PLAN.
IF, SAY, A FUTURE DEVELOPER WANTED IT TO BE HOUSING, FIRST WE'D HAVE TO REZONE THE PROPERTY, AND THEN WE'D HAVE TO AMEND THIS PLAN, AND MAYBE EVEN THE PLAN ISN'T EVEN ACTIVE BY THAT TIME.
I'M NOT REALLY TOTALLY SURE HOW TO ANSWER THAT EXCEPT FOR, LIKE, THAT IT'S LISTED IN THIS PLAN.
IT'S OKAY. IT'S A COMMERCIALLY ZONED PROPERTY, AND IT'LL BE REDEVELOPED COMMERCIALLY.
SO THE COMMERCIAL ONLY BUILDING CURRENTLY ALMOST 90 PERCENT OCCUPIED.
THERE'S ONLY ONE SUITE THAT IS VACANT IN THERE.
AND THE TENANTS THAT ARE CURRENTLY THERE, THEY'RE ON A LONGER TERM LEASE.
RIGHT? I THINK RIGHT NOW THEY'RE LEASED FOR ANOTHER ADDITIONAL FIVE YEARS.
SO IN FUTURE, AGAIN, YOU MAY COME BACK TO THE TOWNSHIP IF YOU'RE WILLING TO GIVE US THAT PERMISSION TO BUILD OVER THAT COMMERCIAL BUILDING, THE RESIDENTIAL UNITS, BY ALL MEANS, YEAH, WE'D WANT TO PURSUE THAT OPPORTUNITY.
SO IT SOUNDS LIKE, AND I APPRECIATE THE EXPLANATION THERE, MR. CANDLELOUGH.
GEORGIA CLARK, BUT JUST TO BE CLEAR, IT WOULD COME BEFORE US AT THE BOARD LEVEL IF ANY FURTHER HOUSING PLANS WERE MADE ON ANY PORTION OF THIS PROPERTY, CORRECT? IF THERE'S ANY INTENTION OF...
THERE WOULD BE LOTS OF DISCUSSIONS AT LEAST.
EVEN FROM THE PLANNING SIDE OF THINGS.
TO PUT HOUSING ON TOP OF THAT BUILDING.
IT SOUNDS LIKE THE QUESTION IS NOT BASED IN ANY REALITY THAT ANY OF YOU THREE ARE PLANNING ON LIVING IN.
SO I WILL SEE THAT IT IS NOT APPLICABLE HERE.
BUT I APPRECIATE THAT QUESTION BECAUSE IT GIVES US IDEAS.
I DON'T KNOW IF YOU WANT THAT IDEA.
AND THEN THE ONLY OTHER QUESTION I HAD WAS RELATED TO THE SLIDE ON TOTAL STATE AND LOCAL INCENTIVES.
CAN YOU EXPLAIN THOSE NUMBERS? I'M JUST A LITTLE CONFUSED WHERE THOSE CAME FROM AND HOW THEY CORRELATE WITH THE OTHER
[01:40:02]
LIKE TOTAL ELIGIBLE COST FOR REIMBURSEMENT, THINGS LIKE WHERE THOSE NUMBERS COME FROM.SO HERE IS, LIKE YOU SAID, THIS TOTAL STATE AND LOCAL INCENTIVE.
SO WHEN WE LOOK AT THAT CDBG GRANT, THAT'S A SEPARATE SOURCE.
IT'S ONLY SHOWN IN THIS PIE CHART TO ILLUSTRATE THE STATE'S PORTION THAT THEY'RE ALSO CONTRIBUTING.
AND THEN WHEN WE LOOK AT THE STATE MILLAGE HOUSING TIF, THAT'S SPECIFICALLY THE AMOUNT IN MILLAGES THAT THE STATE WOULD CONTRIBUTE TO THIS HOUSING TIF PLAN.
AND THEN THE LOCAL BEING THE LOCAL MILLAGE CONTRIBUTION SPECIFICALLY RELATED TO THIS HOUSING TIF PLAN.
SO THIS, THAT IS NOT RELATED TO THE DISTRIBUTION OF TAXES AND ELIGIBLE REIMBURSEMENT NUMBERS, AS I UNDERSTAND THEM, CORRECT? THEY MAKE UP A WHOLE, A PORTION OF THE REIMBURSEMENT.
SO OF THAT $900,000 PLAN TO BE REIMBURSED, $676,000 WOULD BE LOCAL CONTRIBUTION.
YEAH, I ALSO HAD A SIMILAR QUESTION BECAUSE THE, THIS, BY THE WAY, MAYBE IT WAS SOME OF MY CONFUSION ABOUT HOUSING TIF VERSUS BROWNFIELD CAME IN.
YOU'RE INDICATING THAT IT'S 676,000 IN THE MEMORANDUM THAT OUR STAFF PREPARED.
IT APPEARS THAT THE TOTAL ELIGIBLE ACTIVITY IS 641,000.
IS THERE A DIFFERENCE OF THAT 30,000 SOMEWHERE IN THERE THAT I'M MISSING? TOTAL REIMBURSEMENT IS 901.
TOTAL ELIGIBLE ACTIVITIES IS 641.
I'M IN NUMBER SOUP LAND HERE, RIGHT? YEAH.
BECAUSE WHAT YOU'RE SHOWING IS DIFFERENT THAN ANY COMBINATION OF THE TWO, ANY TWO THINGS UP THERE.
CAN YOU MAYBE HELP TO SHED SOME LIGHT ON THAT? YEAH, I THINK THAT DIFFERENCE MIGHT STEM FROM EXTRA CAPTURE FOR VRA, SBRF, THOSE FEES, AND ALSO ANY PASS-THROUGHS.
SO THAT COULD CREATE A DISCREPANCY IN OVERALL TABLE TWO VALUES IN THE BROWNFIELD PLAN AND THEN WHAT YOU'RE SEEING UP HERE.
BUT I CAN DIG IN FURTHER AND GET BACK TO YOU WITH THAT CONCRETE ANSWER.
THAT WOULD BE HELPFUL IF WE COULD JUST GET A BUTTONED UP VERSION OF, YOU KNOW, I UNDERSTAND THAT YOU PUT THIS TOGETHER AND WE PUT THESE TOGETHER.
BUT I'D LIKE TO JUST SORT OF COME TO A CONSENSUS ON THE NUMBERS SO THAT I CAN FEEL GOOD IN SAYING, LIKE, HEY, WHAT THE DEVELOPER EXPECTS, WHAT OUR BROWNFIELD PASSED AND WHAT WE PASSED ARE ALL THE SAME THING.
I THINK THESE ARE DIFFERENT NUMBERS THAN EVEN WHAT IS TOTALLY LISTED IN THE PLAN AND THEN WHAT IS IN THE MEMO.
I THINK TRITARE IS TRYING TO SHOW THAT THE STATE IS SUPPORTING THIS PROJECT WITH MORE INCENTIVE THAN THE INGHAM COUNTY AND MERIDIAN TOWNSHIP MILLAGES ARE SUPPORTING.
I THINK THAT'S THE GENERAL IDEA IS LIKE THIS PIE SHOWS RECEIVING TWO THIRDS OF STATE INCENTIVES TO COMPLETE THIS PROJECT AND ONLY ABOUT ONE THIRD FROM MERIDIAN TOWNSHIP PLUS INGHAM COUNTY AND OUR OTHER TAXING JURISDICTIONS.
IF THAT MAKES A LITTLE BIT OF SENSE.
THE SPECIFIC NUMBERS IN THE PLAN, IF THIS BOARD, IF THE TOWNSHIP BOARD WERE TO APPROVE THE PLAN, THE SPECIFIC NUMBERS OF THE PLAN WILL BE LISTED TRADITIONALLY LIKE WE DO IN OUR BROWNFIELD RESOLUTION.
SO THE TOTAL TO THE DEVELOPER REIMBURSEMENT, THE TOTAL SPECIFIC TO OUR LOCAL BROWNFIELD, STATE BROWNFIELD AND THEN THE ADMIN FEES ARE SPECIFIED IN THE RESOLUTION AND THEY WOULD BE THE SAME AS THE NUMBERS IN THE MEMO IN THE PLAN.
OKAY, THANK YOU. YEAH, IT'S JUST YOU GET INTO A DANGEROUS TERRITORY WHEN YOU'RE SHOWING US NUMBERS THAT ARE DIFFERENT THAN WHAT OUR STAFF ARE PRESENTING.
SO I JUST CAUTION THE APPLICANT TO BE CAREFUL TO MAKE SURE THAT WE ARE ALL SINGING FROM THE SAME MUSIC.
THANK YOU. TRUSTEE WILSON, I SAW YOUR HAND.
YES, I JUST NEED A LITTLE CLARIFICATION ABOUT YOUR FINANCIAL COMPONENTS.
YOU ARE ABOUT TO PUT AN APPLICATION FOR THE CDBG GRANT THROUGH MISTA.
IS THAT CORRECT? WE HAVE TO COME BACK FOR A SECOND TO THE 4.0 FUNDING, CORRECT? FOR THE NEW FISCAL, STATE FISCAL YEAR.
I GUESS IT WILL START IN OCTOBER 1.
SO WHERE'S THE STATE MILLAGE HOUSING TIFF COMING FROM? THAT IS FROM YOUR STATE MILLAGE'S CAPTURE OF THOSE.
SO SCHOOL OPERATING AND STATE EDUCATION TAX.
AND WHAT MECHANISM IS USED TO SUPPORT THAT TIFF? NOT UNDERSTANDING.
DO YOU APPLY FOR THAT FUNDING? YEAH, THAT'S ACTUALLY A GREAT QUESTION.
SO THAT'S THE SECOND HALF OF THE BROWNFIELD PLAN,
[01:45:01]
AND THAT'S AN ACT 3 TO 1 WORK PLAN.AND THAT'S A SPECIFIC DOCUMENT, I CALL IT THE SECOND HALF OF THE BROWNFIELD PLAN, SPECIFICALLY FOR STATE CAPTURE.
AND THAT GETS SUBMITTED TO MISTA FOR CAPTURE OF THOSE TWO SPECIFIC MILLAGES.
AND WHEN IS THAT GOING TO BE, THAT APPLICATION GOING TO BE MADE? YOU SAID THAT'S THE SECOND PORTION? YEP, THAT USUALLY BEGINS BEING DRAFTED RIGHT AFTER APPROVAL OF THE BROWNFIELD PLAN.
SO THE LOCAL PORTION IS USUALLY SUBMITTED A COUPLE MONTHS AFTER BROWNFIELD PLAN APPROVAL.
OTHER QUESTIONS? SEEING NONE, WE'LL SEE YOU BACK IN A COUPLE OF WEEKS.
WE'LL BE BACK IN A COUPLE OF WEEKS. THANK YOU.
[12.B. Mass Timber Ordinance ]
12B IS NEXT, MASS TIMBER ORDINANCE.I THOUGHT WE WERE GETTING INTO THE LOGGING BUSINESS HERE.
HAPPY TO SEE THAT THAT'S NOT THE CASE.
WE HAVE DIRECTOR SCHMIDT TO TELL US WHAT EXACTLY IT IS.
YEAH, SO INTERESTINGLY ENOUGH, LAST I CHECKED, MICHIGAN ACTUALLY DOESN'T HAVE A FACILITY WITHIN THE STATE THAT ACTUALLY ALLOWS FOR THE CONSTRUCTION OF MASS TIMBER PRODUCTS.
ALTHOUGH WE ARE ONE OF THE LEADERS IN THE IMPLEMENTATION AND DESIGN DEVELOPMENT EDUCATION.
SO BY DEFINITION, MASS TIMBER IS FUNCTIONALLY JUST A FRAMING METHOD FOR BUILDINGS.
YOU'RE, INSTEAD OF USING STEEL IN MOST PLACES, YOU'RE USING VARIOUS LAMINATED WOOD MATERIALS.
IT'S A FAR MORE SUSTAINABLE METHOD OF CONSTRUCTION IN THE LONG RUN.
IT'S OBVIOUSLY WOOD IS A FAR MORE SUSTAINABLE MATERIAL AND RENEWABLE MATERIAL THAN IT IS STEEL.
THIS REALLY CAME OUT OF A CONVERSATION WITH THE CORRIDOR IMPROVEMENT AUTHORITY.
THEY HAVE NOTICED THAT OTHER COMMUNITIES HAVE STARTED LOOKING AT THIS, MOST NOTABLY EAST LANSING.
MSU HAS ONE EXCELLENT BUILDING ON CAMPUS AND MASS TIMBER AT MSU IS A GREAT RESOURCE FOR THIS GOING FORWARD.
AND SO THE CIA LOOKED TO STAFF AS TO HOW WE COULD INCORPORATE THIS POTENTIALLY INTO OUR ORDINANCES.
NOT NECESSARILY TAKE IT AS FAR AS EAST LANSING DID, BUT CERTAINLY TRYING TO DO SOMETHING.
AND SO OUR IMMEDIATE SUGGESTION WAS THAT THIS WOULD BE AN EXCELLENT POTENTIAL AMENITY IN A MIXED USE OR COMMERCIAL PLANE UNIT DEVELOPMENT PROJECT.
AND SO AFTER EXTENSIVE CONVERSATION WITH THE PLANNING COMMISSION, FURTHER CONVERSATION WITH THE CIA,.
THAT IS THE RECOMMENDATION THAT'S IN FRONT OF YOU THIS EVENING FROM THE PLANNING COMMISSION WHERE IT WAS UNANIMOUSLY RECOMMENDED.
FUNCTIONALLY, IT'S THREE CHANGES, THIS ORDINANCE.
IT WOULD ADD MASS TIMBER CONSTRUCTION AS A LEVEL THREE AMENITY IN THE MUPUD DISTRICT.
IT IS AT THIS TIME MORE EXPENSIVE FORM OF CONSTRUCTION IN MOST CASES.
SO THAT'S WHY I THINK THEY DETERMINED IT WOULD BEST FIT THERE.
IT WOULD BE AN AMENITY UNDER THE CPUD.
YOU MAY RECALL THE CPUD DOESN'T HAVE THE SAME STRUCTURE AS THE MUPUD AT THIS TIME.
THAT'S CERTAINLY SOMETHING WE CAN APPROACH IN THE FUTURE.
BUT AT THIS TIME, IT'S JUST SIMPLY AN AMENITY THAT WOULD BE ADDED.
AND THEN WE'D ADDED DEFINITION.
I THINK THAT'S A FAIRLY BROAD, WIDELY USED DEFINITION OF WHAT THIS IS,.
BECAUSE IT'S ENGINEERED WOOD PANELS THAT ARE THE STRUCTURAL FOUNDATION OF THE BUILDING.
AND SO RELATIVELY STRAIGHTFORWARD CHANGE.
THIS WILL NOT BE AN IMMEDIATE THING.
WE HAVEN'T HAD ANY CONVERSATIONS WITH ANYONE ABOUT IT,.
BUT IT'S BECOMING MORE AND MORE VIABLE FROM A CONSTRUCTION STANDPOINT.
SO THIS IS SOMETHING THE CIA REALLY WANTED TO TRY AND GET AHEAD OF, AND THE PLANNING COMMISSION AGREED.
BOARD MEMBERS, QUESTIONS? SO PRIMARILY THE BENEFIT OF MASS TIMBER FROM A PUBLIC PERSPECTIVE.
IS THAT IT'S A MORE SUSTAINABLE METHOD OF CONSTRUCTION.
WOULD YOU SAY THAT'S ACCURATE? THAT IS PROBABLY THE PRIMARY.
ALTHOUGH I WILL POINT OUT, ODDLY ENOUGH, THEY ARE IN MANY CASES MORE FIRE RESISTANT.
BECAUSE OF HOW THEY'RE DESIGNED AND THE MATERIALS THAT ARE USED.
IT SEEMS COUNTERINTUITIVE, BUT THAT IS ONE OF THE DESIGN THINGS THAT ARE BEING PUSHED MORE AND MORE,.
IS THE FACT THAT THEY ARE A GOOD OPPORTUNITY TO BE FIRE RETARDANT AS WELL.
BUT IT IS VERY MUCH A FAR MORE SUSTAINABLE CONSTRUCTION TYPE IN THE LONG RUN.
AND I'M CURIOUS, FROM THE ECONOMIC PERSPECTIVE, RIGHT,.
THESE ARE AMENITIES ON THIS LIST OF THE MEPD ORDINANCE THAT ALLOWS FOR ESSENTIALLY LARGER DEVELOPMENT,.
TALLER DEVELOPMENT SPECIFICALLY.
I DON'T MEAN TO ASSIGN CRAVING
[01:50:01]
MOTIVATION TO ALL DEVELOPERS.THERE ARE GOOD ONES OUT THERE WHO WANT TO TAKE CARE OF THE ENVIRONMENT AS WELL.
BUT MY QUESTION WOULD BE, FROM A COMPARATIVE PERSPECTIVE,.
WHERE DOES MASS TIMBER CONSTRUCTION RANK IN TERMS OF COMPARATIVE COSTS TO THE OTHER AMENITIES THAT WE SEE ON THIS LIST? I MEAN, YOU'RE CERTAINLY GOING TO BE CHEAPER THAN AN UNDERGROUND PARKING OR MULTI-LEVEL PARKING STRUCTURE.
YOUR ALTERNATIVE ENERGY IS PROBABLY GOING TO BE MORE EXPENSIVE AS WELL.
PART OF THIS IS REALLY DEPENDING ON SCALE, RIGHT? YOU KNOW, IF YOUR MASS TIMBER IS A GENERAL RULE UP TO 18 STORIES, RIGHT? IF WE'RE TALKING ABOUT AN 18-STORY BUILDING, IT'S A MUCH DIFFERENT CONVERSATION THAN A THREE- OR FOUR-STORY BUILDING,.
WHEREAS YOUR COST PER FLOOR ON A MASS TIMBER IS PROBABLY GOING TO BE HIGHER THERE THAN IT WOULD OTHERWISE BE.
BUT CERTAINLY, IT'S NOT GOING TO BE THE MOST EXPENSIVE, AND IT'S NOT GOING TO BE THE CHEAPEST.
IT'S JUST GOING TO SLIDE SOMEWHERE IN THE MIDDLE, GIVEN ALL OF THESE AMENITIES.
OKAY. AND SO, YOU KNOW, FROM OUR PERSPECTIVE, IT IS, IN FACT, PROBABLY MORE LIKELY THAN SOME OF THOSE OTHER ONES YOU JUST MENTIONED.
I MEAN, WE'RE CERTAINLY NOT GOING TO BE SEEING 18-STORY BUILDINGS.
THAT'S NOT COMING ANYTIME SOON.
BUT, YOU KNOW, IT'S PROBABLY, I WOULD IMAGINE, A FAIR AMOUNT MORE EXPENSIVE THAN THE PUBLIC ART, FOR EXAMPLE, CONTRIBUTION.
OR THE DEDICATED OUTDOOR GATHERING SPACE, WHICH IS ESSENTIALLY GRASS AND BENCHES.
SO, GOOD TO KNOW THAT IT DOES SORT OF SLIDE NOT I ASSUMED THAT IT WOULD BE MUCH MORE EXPENSIVE THAN MOST OF THE OTHER AMENITIES OUT HERE.
THE UNDERGROUND PARKING IS PROBABLY A LOT MORE, GIVEN WHAT WE KNOW ABOUT THE VILLAGE OF OKEMOS CONSTRUCTION.
YEAH, I HAVEN'T LOOKED AT THE INFORMATION THIS YEAR.
HISTORICALLY, THE DETROIT METRO WAS ALWAYS ONE OF THE LOWER COSTS FOR STRUCTURED PARKING, BUT IT WAS STILL $30,000 A SQUARE $30,000 A SPACE, $40,000 A SPACE.
SO IT'S VERY EXPENSIVE TO STRUCTURE PARKING.
SO, YOU KNOW, I THINK THIS IS FASCINATING.
I REMEMBER HEARING ABOUT IT ABOUT 10 YEARS AGO AND DIVING INTO IT.
AND, YOU KNOW, ON THAT, EAST LANSING, YOU KNOW, MOVED FORWARD WITH THEIR PLAN, I BELIEVE IT WAS TWO YEARS AGO.
AND I REMEMBER, AT LEAST FROM THE ARTICLES I READ, IT WAS INCLUDED AS PART OF AN INCENTIVE IN THEIR POINTING STRUCTURE FOR APPROVAL OF BUILDINGS.
THAT'S NOT WHAT'S BEING PROPOSED HERE, IS IT? THIS IS JUST A WE'RE LOOKING AT AN ORDINANCE HERE TO JUST ALLOW MASS TIMBER CONSTRUCTION IN GENERAL, AS YOU WOULD ANOTHER BUILDING MATERIAL THAT IS APPROVED.
SO IN THEORY, IT'S PERMITTED NOW, RIGHT? MICHIGAN HAS A SINGLE-STATE CONSTRUCTION CODE.
AND SO IF YOU MEET THE STANDARDS UNDER THE CONSTRUCTION CODE, OF WHICH THERE ARE MASS TIMBER STANDARDS IN THERE, YOU COULD BUILD IT RIGHT NOW.
WE'RE NOT TYING IT TO AN INCENTIVE.
WHAT WE'RE DOING IS CREATING AN AVENUE UNDER OUR MEPD ORDINANCE THAT IS AN AMENITY TO THE PROJECT.
AND IT CAN BE COUNTED AS ONE OF YOUR PRIMARY AMENITIES TO THE PROJECT.
IT DOES NOT GET YOU ACCESS TO BROWNFIELD DOLLARS OR GRAIN DOLLARS OR ANYTHING LIKE THAT.
IT'S A LEVEL OF REGULATION LOCALLY THAT IS TRYING TO PROMOTE IT, ESSENTIALLY, BY MAKING IT A BENEFIT TO THE PROJECT THAT GETS YOU ACCESS UNDER OUR CODE TO SOME SPECIAL THINGS.
BUT IN THEORY, SOMEONE TOMORROW COULD COME IN AND SAY, I WANT TO BUILD THIS BUILDING OUT OF, YOU KNOW, LAMINATED WOOD MATERIALS.
AND IF IT MEETS THE MICHIGAN BUILDING CODE, YOU KNOW, IT WOULD BE APPROVED.
OKAY. SO MY UNDERSTANDING IS SECTION 2 HERE, THAT LIST OF WHAT WOULD BE, IF APPROVED, THESE 11 POINTS, THESE ARE AMENITIES LIKE, YOU KNOW, JUST PUBLICLY ACKNOWLEDGED AND SUPPORTED BY MERIDIAN TOWNSHIP,.
TALKING POINTS FOR ANY POTENTIAL BUILDER OR DEVELOPER WANTING TO OPERATE MERIDIAN TOWNSHIP.
YEAH. SO SECTION 1 IS FOR A MIXED USE PROJECT.
SECTION 2 IS FOR A STRAIGHT COMMERCIAL PROJECT OF WHICH THERE'S, IT'S ESSENTIALLY THE MALL AREA IS COVERED BY THE CPUD.
IT MIGHT BE HELPFUL WHEN WE BRING THIS BACK FOR ACTION TO INCLUDE THE SURROUNDING TEXT OF THE MUPD ORDINANCE.
SO WHAT TIM WAS SAYING IS AT ALL, IT'S TRUE, OF COURSE, BUT I THINK YOU MISS WHEN YOU LOOK AT THIS ONE SECTION IN ISOLATION THAT, YOU KNOW,
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BASICALLY, AS I RECALL FROM MY DAYS IN THE PLANNING COMMISSION,.A MIXED USE PROJECT CAN APPLY, WE'RE CAPPED AT THREE STORIES, YOU CAN APPLY FOR ADDITIONAL HEIGHT BY PROVIDING ADDITIONAL AMENITIES.
AND YOU HAVE TO PRESENT FOUR AMENITIES OF WHICH ONE OF THEM HAS TO BE OF THIS SPECIAL BIG VARIETY.
AND THAT'S THE SECTION THAT YOU'RE LOOKING THERE IN SECTION 1.
AND THEN THERE ARE THREE OTHERS THAT COME FROM A LIST. ONE OR TWO OTHER LISTS, IS IT? THERE ARE A TOTAL OF THREE TIERS.
YEAH. SO TWO OTHER LISTS OF AMENITIES YOU CAN CHOOSE FROM.
AND SO BASICALLY, FIRST THING, ONE OF THEM HAS TO BE FROM THIS LIST OF PROPOSED NINE.
AND THEN THE OTHERS CAN COME FROM THE OTHER LISTS.
SO I THINK LOOKING AT THE ORDINANCE IN A SLIGHTLY MORE EXPANDED WAY WOULD HELP TO PROVIDE THAT CONTEXT, I THINK, YOU'RE LOOKING FOR.
I WOULD APPRECIATE THAT, YEAH.
I SHOULD HAVE THOUGHT TO DO THAT, AND I APPRECIATE YOU POINTING THAT OUT.
THAT DOES ILLUMINATE SOME OF MY QUESTIONS.
ANY OTHER QUESTIONS THIS EVENING? I DON'T SEE ANY HANDS FLYING UP, SO THANK YOU VERY MUCH.
WE'LL SEE YOU BACK IN A COUPLE WEEKS.
NEXT UP IS ITEM 13, COMMENTS FROM THE PUBLIC.
ANY MEMBERS OF THE PUBLIC WISHING TO MAKE COMMENTS AT THIS TIME? WE'LL OPEN PUBLIC COMMENT AT 7.55 P. M.
I DON'T SEE ANYONE RUNNING TO THE PODIUM,
[14. OTHER MATTERS AND BOARD MEMBER COMMENTS ]
SO WE'LL CLOSE PUBLIC COMMENT AT 7.55 P. M.NEXT UP IS OTHER MATTERS AND BOARD MEMBER COMMENTS.
ANY OTHER MATTERS AND BOARD MEMBER COMMENTS THIS EVENING? TRUSTEE WILSON? WE ALL RECEIVED A COPY OF OUR 2027 BUDGET ON FRIDAY,.
AND I HAD THE OPPORTUNITY TO TAKE A LOOK AT IT OVER THE WEEKEND.
IT ALSO SHOWED THE EXPENDITURES TO DATE, WHAT'S PROJECTED FOR 2026.
SO I LOOKED FOR THOSE THINGS IN THE BUDGET THAT STOOD OUT,.
AND IT'S VERY NORMAL TO HAVE FLUCTUATIONS OVER AND UNDER IN BUDGETS DUE TO.
UNFORESEEN CIRCUMSTANCES OR SOME OTHER PURCHASE THAT WAS NECESSARY AT THE TIME.
BUT THE STANDOUT THAT I FOUND IN GOING OVER THE BUDGET.
WAS IN THE CLERK'S OFFICE IN THE ELECTIONS CATEGORY.
IF YOU, AS BOARD MEMBERS, TOOK A LOOK AT IT,.
THERE WAS A COMPARISON OF THE BUDGET AT $265,000.
AND AN EXPENDITURE OF $495,000.
NOW, WE DID RECEIVE REIMBURSEMENT FROM INGHAM COUNTY FOR THE MAY ELECTION FOR THE COUNTY,.
AND THAT WAS $89,000 THAT WAS RETURNED TO US, A REVENUE SOURCE TO US.
HOWEVER, THIS LEAVES US WITH A $140,500 SHORTFALL.
AND EXPENDITURES THAT EXCEEDED WHAT THE BUDGET CALLED FOR.
AND I ALSO TOOK A LOOK AT OVERTIME,.
BECAUSE FOR DIFFERENT DEPARTMENTS I WANTED TO SEE HOW THAT ALIGNED.
I DID SEE THAT UNDER THE CLERK'S BUDGET FOR ELECTIONS,.
THE $10,000 WAS BUDGETED, AND IT'S PROJECTED,.
THE NUMBER IS PROJECTED TO BE THREE TIMES OVER THAT BUDGET AT $32,000.
I DON'T UNDERSTAND WHY WE ARE SEEING THESE NUMBERS.
AND SO I'M A FORMER AUDITOR, AND I BELIEVE IN THE POWER OF AUDIT.
AND I WOULD LIKE TO REQUEST AN INTERNAL AUDIT OF THE FINANCIAL AND HR EXPENDITURES.
TO DETERMINE WHERE THEY EXCEEDED THE BUDGET.
AND WE ALSO HAVE AN OPPORTUNITY HERE THAT WE HAVE FOUR MONTHS LEFT TO OUR FISCAL YEAR.
IN WHICH WE COULD POTENTIALLY MAKE SOME CHANGES THAT MIGHT REDUCE THIS OVERAGE.
TIME IS OF THE ESSENCE BECAUSE WE ARE GOING TO HAVE A BUDGET HEARING NEXT,.
IN TWO WEEKS, AT OUR NEXT MEETING.
AND SO I WOULD REQUEST, IF POSSIBLE,.
THAT WE COULD GET THE RESULTS OF AN INTERNAL AUDIT AT THAT TIME OF THESE EXPENDITURES.
ANY DISCUSSION OR COMMENTS ON THAT? I'LL MAKE ONE COMMENT.
TRUSTEE WILSON, YOU'RE MORE THAN WELCOME TO HAVE A DISCUSSION WITH MANAGER DEMPSEY.
OR MYSELF REGARDING HOW WE USE OUR ELECTIONS FUNDS.
YES, OVERTIME DID EXCEED OUR BUDGET,.
BUT THAT IS BECAUSE WE HAVE HAD TO PREPARE FOR OUR UPCOMING ELECTIONS,.
[02:00:01]
AUGUST ELECTION,.AND HAD SITUATIONS THAT WE DID NOT ACCOUNT FOR,.
SUCH AS MISPRINTING OF OUR BALLOTS,.
WHICH COST US ADDITIONAL RESOURCES AND TIME TO HANDLE THOSE SITUATIONS.
BUT I'M MORE THAN HAPPY TO GO OVER THE BUDGET IF YOU HAVE ANY QUESTIONS REGARDING THAT.
AND PROVIDE ANY INFORMATION YOU WOULD LIKE.
WELL, THAT'S EXACTLY WHAT WE WANT TO DETERMINE.
THOSE SORTS OF THINGS LIKE MISPRINTING OF BALLOTS,.
WE MAY NOT HAVE KNOWLEDGE OF OR WHAT THE COST WAS ASSOCIATED WITH IT,.
BUT I THINK THIS NEEDS A SET OF EYES OUTSIDE OF YOUR AREA.
THAT WE CAN DETERMINE EXACTLY WHERE THESE DISCREPANCIES ARE.
THIS IS VERY CONCERNING. THIS IS $140,000 OF TAXPAYER MONEY,. AND I WOULD NOT BE A STRONG FIDUCIARY OF WHAT WE'RE IN GOVERNANCE OVER. IF I DID NOT ASK THESE QUESTIONS,. SO THAT'S WHY I'M ASKING FOR AN AUDIT. I THINK THAT'S GOOD FOR TRANSPARENCY. I CAN TELL YOU ALL OF OUR FUNDS ARE PUBLICLY AVAILABLE,. AND IF THERE ARE ANY CONCERNS,. I'M SURE THAT MANAGER DEMPSEY AND DIRECTOR BLONDE WOULD COME TO ME ABOUT IT,. SO I HOPE THAT CAN BE AT LEAST REASSURING. THAT WOULD BE GREAT. MANAGER DEMPSEY, DIRECTOR BLONDE IS NOT HERE,. BUT DO YOU THINK THAT'S A FEASIBLE CONVERSATION. AND ALSO TIMELINE, I SUPPOSE, TO PROVIDE THAT INFORMATION? YEAH, I MEAN, WE CAN CERTAINLY GET INITIAL FEEDBACK. IF WE NEED ADDITIONAL TIME OR THERE'S SOMETHING MORE DETAILED,. WE CAN REPORT BACK TO THE BOARD,.
BUT CERTAINLY HAVE THOSE INITIAL CONVERSATIONS. OKAY.
AND THAT WOULD INCLUDE HR WITH OVERTIME AND... YEAH, WE COULD WORK WITH THAT. YEAH, JUST TO GET ANY DATA THAT WE KNOW OF. THAT WOULD BE GREAT.
THANK YOU VERY MUCH. OKAY, ANY OTHER BOARD MEMBER COMMENTS? SEEING NONE, OUR LAST ITEM IS FOR ADJOURNMENT AND MOTION TO ADJOURN. SO MOVED.
MOVED BY, TRUSTEE LENTZ. DO WE HAVE A SECOND? SUPPORT.
ALL THOSE IN FAVOR OF ADJOURNMENT, PLEASE SAY AYE. AYE. ANY OPPOSED? STAND ADJOURNED AT 8.01 P. M.
* This transcript was compiled from uncorrected Closed Captioning.