DDA Talks Evergreen Properties, New Director and Responds to Councilmember’s Comments

The Downtown Development Authority (DDA) voted to issue a Request for Qualifications and Proposals recruiting marketing firms to help sell its Evergreen Avenue properties at its May 23 meeting. 

The loosely worded RFQ/P does not specify a type of project the DDA would like to see at the site. Previously, DDA members have said they hope to see a range of creative ideas for the property. The RFQ/P also does not specify a payment for the service, saying the DDA is willing to consider paying a flat rate, an hourly rate or a percentage of an eventual sale of the property. 

Initially, the RFQ/P was set to be open to applicants for a month. However, after a short discussion the body decided to allow two months for applications to come in, meaning the topic will be revisited at the DDA’s July meeting. DDA members said they preferred the longer timeframe because it gives more time to engage with marketers. 

Once a firm to market the properties is picked, it is unclear how long it will take for pitches to role in. The RFQ/P states that the length of service is “negotiable” based on the nature and type of service. 

Once the DDA selects a firm to market the property, it will mark the next step in the DDA’s lengthy journey to offload the site. The DDA purchased the property in 2009, and last tried to have it developed by local company River Caddis. However, after years of extensions and pivoting to different ideas, an exclusive development agreement between the DDA and River Caddis expired last year. 

The DDA has significant debt on the property and is paying interest on that debt. Last year, the city refinanced the debt on the property. Now, the DDA is hopeful the marketer brought in by this RFQ/P is able to lure a developer that is willing to pay a significant amount for the property and bring a project that is beneficial to the city and residents. 

DDA continues to set stage for creating executive director position. 

As the DDA prepares a search for an executive director, a position that will be newly created, it continues to nail down the logistics for bringing the new employee on board. 

City Attorney Anthony Chubb explained that the Memorandum of Understanding (MOU) between the DDA and city regarding the executive director explains the process of hiring, employment, termination and oversight. 

Among other highlights, the MOU states the executive director will be a city employee with the same benefits as other director-level employees. It also says the executive director will report jointly to the DDA and city manager. 

The MOU also said the director will serve at the pleasure of the city manager, a clause that drew attention from DDA members wondering if the director should also serve at the DDA’s pleasure. The city charter states that city employees serve at the pleasure of the city manager. After a short discussion about wording that could allow the DDA to play an “advisory” or other role in overseeing the director, the topic was tabled until the June DDA meeting. 

The MOU does not identify a salary for the executive director, rather it says the pay rate is “to be established by the DDA.” Previously, the DDA voted to set aside up to $150,000 in the fiscal year 2025 budget for the position. 

DDA discusses letter pushing back against Councilmember Erik Altmann’s comments. 

At the April 16 City Council meeting, council agreed to a reduced footprint for the Albert El Fresco area downtown. The decision to reduce the size of the space was largely made to allow for delivery trucks to reach businesses in the area and allow 7-Eleven to keep its parking lot accessible from Albert Avenue. 

At that meeting, Councilmember Erik Altmann took issue with reducing the size of El Fresco and questioned if having a business that is reliant on car traffic is a good fit for downtown. 

“This is a downtown, downtowns should be for walking,” Altmann said. “Malls in the suburbs are for driving to. So, maybe this is not the right fit for this business.”

At the May DDA meeting, the DDA discussed a letter that pushed back against Altmann’s comments and supported 7-Eleven. City Manager Robert Belleman and Mayor George Brookover recused themselves from discussing the topic and left the room during this portion of the meeting. 

When introducing the topic, DDA Member Luke Hackney explained that “a few” business owners did not like what Altmann said and reached out to the DDA. He clarified that the DDA does not want to get into a back and forth with Altmann or City Council, but does want to stick up for 7-Eleven. 

The short letter said that the DDA respects Altmann and the office he serves, but finds the comment inappropriate. 

“We too hope for a more “walkable” downtown and would love to see Albert EL Fresco continue to grow and attract visitors from the greater Lansing area,” the letter reads. 

“We do not believe it is appropriate for members of City Council to disparage a downtown business in a public meeting. We want all downtown businesses to feel they are valuable members of the community, and they have the support of City Council.”

DDA members pointed out that city employees often use the 7-Eleven and its parking lot, that the business’ owner Ali Haider volunteers his time for the Downtown Management Board and that the 7-Eleven is a long-standing business. 

DDA members seemed to be in agreement that the letter did not need to use Altmann’s name – which it did at the time of the meeting – and could be edited to address City Council as a whole. 

Pope said because there was not a consensus wording, the DDA can go back and edit the letter. Ultimately, the board voted to allow the letter to be modified and eventually approved by DDA Chair Mike Kreuger. Once approved, the letter will be sent to City Council.