Thank you. It's three o'clock and we have a quorum, so I am calling to order the September 14 meeting of the Downtown Development Authority Board of Directors may have a roll call.
Certainly Madam Chair. Board Member B. Yes. Board Member Beckham. Yes. Board Member Austin Austin. Board Member Blastoise remember clean present, board member Halliwell board member Hosie. Board Member Jenkins, board member nagrik BOARD MEMBER Ogden, board member rancher and board chair cherish or agreement
president. We have a quorum Thank you. So the first order of business is the approval of the June 22 2022 minutes it's been moved and supported any corrections or deletions or objections? Hearing none, we are adopting the resolution to approve the minutes and the next order of business is the receipt of the treasurer's reports. Mr. Nagla.
Thank you, Madam Chair. There's two treasurer's reports today the first one is June, which is the board knows is the end of our fiscal year. So June 1 Started with 157 point 1 million in cash. We had receipts of 933,000. I'll go back through the bat and we had disbursements of 2.5 million, leaving us with a balance of 155.5. I'll go back and comment on just some of the key receipts and disbursements. So in the month of June, one of the revenue items Sauron Lake We're glad you're here. So one of the. Quiet entrance
to the boring cash receipts and disbursements not the cash receipts are ever boring, it's disbursements. So one of the key receipts as a transfer from the TIF to the stadium maintenance fund of 380,000. You'll see that going right back out to another fund and in the disbursements. That's the only key receipt, as the board knows our major receipt during the year. Is our capture of the one mil and the incremental taxes on the properties within the DDA district. Since it is the last month of the year. I'll mention that. The revenues outperformed the budget by 11 million this year so that sculptures were very healthy. Everything's performing exactly as we you know, anticipated that they that they were and blonde who can come at later is pretty far along in the audit. So we'll have to have all this certified and an audit soon enough. Why do you think that is? It's the value of the properties and the fact that virtually all the property owners within the DDA boundaries pay their taxes on time. It's great. So in terms of disbursements, the key disbursements are first, the largest disbursement this month is our annual subsidy to the M one rail so $900,000 That's the single largest expense. You'll also see that that stadium maintenance revenue that came in from TIF goes back out that's 388,000. Then there's two payments for maintenance on both Comerica Park and LCA. So there's a payment into the maintenance fund for LCA of 292,000. There's a payment into the maintenance fund for Comerica Park of 407,000. So those are our large disbursements. And, you know, the month you look at it started with 150 Started with 157 point 1 million in cash and ends with 150 5.5. So with that, I can pause If Madam Chair you'd like to get a motion on the June report before we go into July.
Yeah. So what what questions do we have to Mr. Hancock on the June report? Second,
second, moved and supported. All in favor. Aye. Any of we have received the January report has been able to live
so on July starts right where Julie left off at 155 Point 5 million in cash receipts are 325,000. So again, just our one mill receipt revenue we earned from our parking operations and investments. And then in disbursements for July. The biggest expenditure as our debt service is due on July 1, so there's $19.4 million with debt service. And then it was also good to see a draw for progress on the 150 Bagley project for 150,000. So the 325,000 and receipts but 19 point 6 million in disbursements again mostly scheduled debt service. So we end the month with 136 point 2 million in cash
prize report
and it's been moved removed, support, support,
support All in favor. Any objections? We have received July's Report. Welcome Mr. Blaskowitz. My apologies to legislature sir.
Ready to move on to projects and Ms. David is going to walk us through the project
and good afternoon board members
packets and before you prepared regarding a project request for the new project requests with respect to the catalyst development project. Specifically this relates to the the ancillary development properties which are the previously publicly owned properties that were transferred to Olivia. In connection with Moses arena is held for development. Those ancillary development properties three minor four fell into two different categories. There were a handful of properties located on woodwork. And then there were other properties located around the arena site. The properties that were local, located right on Woodward originally had to be under a an approved development proposal approved by this board within three years of when the arena opened. The arena opened on September 27. So that so that deadline came back in December of 2020. The balance of the property so the non Woodward ancillary development properties had five years to come under development plan. And so that deadline sorry, I said December that deadline was September 12. Those properties Jennifer, I'm not sure who's doing the math Yep. We have for you today, a request that relates to the remaining ancillary development properties that are again they were owned by the city or the DDA or the EDC prior to December of 2014. And they're now held by in Olympia and to speak. So, the two sets of properties, these properties in blue, and then the remaining properties in orange as you can see the majority of which are pretty far to the to the last of the northwest corner of what's the what are the DDA boundary. So I will start with requests regarding a blue property. You can see that the last Woodward property that property in blue is the last remaining Woodward property we didn't have before you I believe twice before for an extension on that particular property, which this which was work provided. The most recent extension brought a deadline for that property. In line with the rest of the properties. So it was this week, so we're here this week to present a development plan for consideration by the board. Those that includes those three properties under this development proposal and maybe if you created the item under this development proposal Olympia has proposed the development of a mixed use development at that site with that would consist largely of a hotel 14th floor joiner 90 Key hotel with about 30,000 square feet of retail both hotel amenity retail and other retail right next to the arena. For purposes of this project. You've seen this you've seen the structure before. Olympia entity that owns those three properties and the other properties that they own in that area was around lease the property to a joint venture, a joint venture that will be between Olympia and the related companies. As the board insurance is aware. Olympia and the related companies have previously announced a partnership on various projects in the city. But most significantly, the Detroit center of innovation, which is a development of an academic facility in the downtown area for the University of Michigan so that the project timeline would be to commence construction in 2024. And that it would be a three year approximately three year construction timeline. The estimated investment is $190 million. So you can see on the map before you that where the where the hotel would sit it was immediately south of the arena right on Woodward and the and the surface drive. Still providing plenty of plenty of outdoor space to lead into the entrance of the arena.
I wonder if we can flip
your packet there were some initial conceptual drawings and renderings.
kind of flip on the screen here for you. After the presentation, we could
have any specifics about the renderings or layout a lot of notice we have in in the room with us representatives both from related and from Olympia to be able to answer your question. So Olympia has all of the required documentation and information that's required under the master development agreement in order to afford to consider to consider their their proposal and so that is one of the items that is in front of the board for approval with respect to those other orange properties or maybe you want to with respect to the other orange properties. Olympia is requesting a one year extension on that development proposal deadline. So a deadline of a revised deadline of September 12 2023. And again, I want to emphasize that the original deadline on those parcels was September 12 2022. So this is the first time that they're requesting an extension on on the development of those of those other parcels.
And back to the map or I
wonder if some of the questions might relate to that. That concludes the presentation. I'm happy to answer any questions that you may have and whatever I can't answer I think my colleagues from the IAS or the developer
can answer those questions to the chair. So I would like to propose a motion for approval. I have some things I'd like to go through. But I'm wondering how should this be broken up? Do we need two separate resolutions
now the resolution is drafted for both approvals and included in one resolution.
So Madam Chair, given that I would move approval but there are some things I'd like to go
of course for questions I believe for Ms. navan and or
what is was maybe Kpf.
I will refer that question to the developer potential that that sir work
from New York will make sure
so also, if I might so for anyone who just spoke if you could introduce yourself and give your title in your organization
Jenkins
I'm president of web development.
Thank you enter cancer on President. Thank you. And board member Jenkins was your question answer to your said
I thought that could be I just didn't know I want to make sure I was clear about what I thought that may be the argument but I just want to make sure we get a scheduled consideration in other places this idea and agree it's going from the hotel to the stadium is ideal.
Again, I'll pass that question.
Okay. Now the question is whether the comment is good. It's good I've seen it done before and it helps.
Thank you. What are the questions do we have for the save it or remember? Haha, well, you had points for discussion. Well,
I guess I look at it in terms of this, you know we're, we've been in challenging times, and I don't think that are unreasonable. In light of light of the challenging times that we've been facing. There's a new report that just came out indicating that we are 40%. As to where we were relative to they looked at cell phone traffic in the district. She saw that the Wall Street Journal and The Times and so we haven't sprung back as quickly as some other major cities that are comparable to us work for 40 or 40%, where we were pre pandemic and some other cities such as I think number one was Salt Lake City, and they were at 150%. So if you look at that drastic gap I don't think this is unreasonable. I and so when I look at this, the materials is set. I look at what's been done the Eddystone which was mean that was a very tough negotiation which I negotiated with my back, you know, when I was Corporation Council, that was a big deal. And that's been done. That's that's 96 units with 20% affordable 2715 Woodward next to the arena. I think there's two major tenants in there already. The Women's City Club, which is behind the Fillmore, the Ilitch school of business that certainly raised the profile of Wayne State University, which from a business standpoint, they are shooting up like a rocket in terms of the US News and World Report rankings and then the LCA headquarters, so that's open when I you call them the ancillary properties. So those are kind of I in my notes from your presentation, I kind of look at them as the west side lines. And so it seems there are opportunities for public private partnership residential and and I also I guess the final thing was the Detroit based business commitment and there I had a separate meeting this morning and I know that Brinker Chrisman took the lead as it relates to the LCA headquarters and 2750 and Woodward and the Ilitch school. So all of that, the totality of that in light of and in light of where we are, relative to pre pandemic to where we are today seems to move us in the direction of this request, in my view, being reasonable. So
any other remarks from board members or questions for Miss navan or for developers here?
Yes here and I agree. Which,
even though he said about 150 words, I don't think retail portion of this and of course, that suffers the same as all the other things that we just talked about, and not to hold on to anything but what's the projection of kind of retail and timing? If that's at all?
I'll try to speak to that. We know that retail is particularly the food beverage areas, we're trying to get people 40 40% Back to the to downtown, etc. So that we all seem to have lunch crowd just started fitting there, right? However, we've been experimenting this past summer with Detroit based businesses, getting in them and to correct the parking example and that's proved wildly successful, but extend that into Little Caesars arena. This year. And we'd like to, you know, use those examples to hopefully fade the retail into this area as well as Columbia Street and other places within the district. The time we this retail would be the same as the hotel 36 months from
any other questions? Comments? Yes.
Through the Chair, I just want to lean into the budget a bit. Back of napkin math, you're comfortable with 4500 a foot I'm sure you got the budget part sideways and backwards. Is that going to be enough? I guess I don't know design yet because I didn't see the renderings except for these black and white. But 14 stories I just want to make sure you have enough. behind
that. We do we've done multiple
contracts and estimates to market. We are comfortable with the number we are at the same time looking also
my assumption like every development and developer in town you'll put for all the incentives and subsidies available to you will be wise you have to trust him. And
one last
No, that's not important. But let me just state for the record that if there's anybody that has a sympathetic ear around the need for extensions on complex government projects do you have some experience with that's a no brainer. Thank you. Thank you Madam Chair.
First, any other remarks or questions? I will close out with a comment before I ask for a motion. Anything else? All right, then I will just close by saying that we're looking forward to our continued partnership with you and engagement with you on all things small business. So given the purview this board has in the organization and DGC alongside the EGC for small businesses in the city. Your remarks Keith about pop ups and incorporating that further into Comerica Park. And, Ryan, I know you're a good work in the world on that point. We're looking forward to that as a way to strengthen Detroit small business ecosystems. I'm sorry, yes, yes.
I was asking board member Jenkins a few. Presentation of the contractor. I know you have estimates but have you landed on a contractor
All right. Any other questions, remarks comments? Not I will entertain a motion to approve.
I think we already have a motion in
a second.
We have a motion and it has been approved. All in favor. Objections hearing none. We have amendments. Yes. Thank you. All right. So any other administrative
matters? Yes, Madam Chair. I just wanted to let this board know that we are merging into a new board book platform called board effect. And we will be sending out emails for your passwords and user usernames for it and we will be going back to the iPads. We're targeting the next CDA meeting.
So there's just to be remember that
so when we came back from COVID, you were a little concerned with Sure, sure, but we feel like we're out of the woods now. He's back to us.
Alright, that's fantastic. You had to leave. You only showed up. You didn't get to take you could use
any other matters. All right, hearing no other matters. We will move to public comment. Are there any members of the public present who wish to make a comment? I'm gonna ask that you raise your hand now. We will afford two minutes for each public comment two minutes and we'll start the clock when you start if you wish to make remarks are there any hands raised? Calling for public comment? Is there instruction on how to raise your hand if you're on it, you just raise the you just count on the
bond or star nine star nine if you're on a phone and just raise that if you're using zoom just raise that hand icon.
All right then I will call for public comment a third and final time Is there any public comment? And using my seven second rule, which has now expired, there is no public comment. So I will take a motion to adjourn. We are turn back to the old rules of the road
