City of Harbor Springs DDA (Special Meeting) 5/30/24

Detailed briefing

Harbor Springs Downtown Development Authority — Special Meeting, May 30, 2024 ATTENDEES: DDA board members, city representatives, members of the public, and guest trainer Christina. • The special meeting centered on DDA training. Christina reviewed downtown management, Public Act 57, tax increment financing, board and committee responsibilities, reporting requirements, funding options, strategic planning, and community engagement. No substantive vote was recorded. • The trainer stressed that the DDA represents the entire district rather than individual businesses or properties. Board members are responsible for governance, policy, budgets, fiscal oversight, and organizational direction, while the executive director manages day-to-day work. • Tax increment financing was described as a funding tool based on growth above a base-year taxable value. Harbor Springs’ base year was identified as 2014. Participants emphasized that TIF does not itself increase a property owner’s tax bill; it redirects eligible incremental revenue for reinvestment in the district. The trainer recommended using TIF revenue only for projects covered by the approved TIF plan and keeping DDA funds separate from other funds. • Revenue diversification was a recurring recommendation. Options discussed included grants, donations, borrowing, property income, a possible millage, and the existing principal shopping district assessment. Participants said the current assessment has reportedly remained at one dollar per day since it began, but no change was approved. The PSD’s expiration date and rate were identified as matters worth reviewing. • Members discussed expanding committee participation beyond current board members to bring in more downtown stakeholders and reduce volunteer burnout. The trainer recommended checking the bylaws and clarifying committee authority. A city representative noted that Harbor Springs committees without governance or budget authority are not subject to the same Open Meetings Act requirements as decision-making bodies. • Downtown business conditions were also discussed. Members described tourism as essential to year-round business survival, workforce housing as difficult to obtain, and seasonal internet congestion as a problem for stores, restaurants, remote workers, payment systems, and restaurant ordering. City-run fiber had been considered in 2019 but was described as a multimillion-dollar undertaking. • The presentation and meeting recording are expected to be available for current and prospective board members and the public. Participants also supported a brief recap at the next board meeting. Worth watching: 1. Whether the bylaws allow non-board members to serve on committees and whether amendments are needed. 2. Review of the PSD expiration date, assessment rate, and permitted uses. 3. Whether the DDA develops follow-up work on seasonal broadband reliability. Upcoming: A brief recap of the training was proposed for the next DDA board meeting. Why it matters: Clear fiscal rules, broader participation, and reliable downtown infrastructure affect the DDA’s ability to support businesses and responsibly reinvest public revenue.

No open public follow-ups are linked to this meeting yet.