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Holly council approves DDA executive director contract amid concerns over timing and budget
Summary
After heated discussion about late notice and missing contract details, the Village of Holly council approved a Downtown Development Authority executive director contract for Kevin Stephenson not to exceed $75,000 a year, benefits contingent on a background check.
The Village of Holly council on Jan. 13 approved a contract proposed by the Downtown Development Authority (DDA) to hire Kevin Stephenson as executive director at a salary not to exceed $75,000 a year, with benefits contingent on satisfactory completion of a background check.
Council debate focused on process and fiscal impact. Council members objected to adding the item to the agenda without a completed contract available for public review and questioned the missing specifics — the draft presented did not include a filled salary figure, effective dates or detailed benefit language. “I think we’re going to be opening up a can of worms saying…this is incomplete,” said a council member during the discussion.
Supporters said the DDA had vetted the candidate in its workshop and recommended the parameters now before council; one supporter said the candidate’s background and experience with downtown revitalization in comparable communities met the DDA’s criteria. Village Manager Tim Price and staff reviewed the motion parameters and confirmed the contract was intended to be an at-will employment agreement with the salary cap set in the motion.
Legal counsel noted a statutory nuance on insurance eligibility. “Act 57 says that they shall be eligible to be treated as if they were a village or municipal employee as it comes to insurance,” the village attorney said, clarifying that eligibility does not automatically require the village to pay benefits but that the council could allow DDA staff to participate in the village insurance program with reimbursement terms to be arranged.
Council members raised budget questions about the DDA’s ability to absorb the new position’s cost. During the discussion one council member cited DDA revenue figures discussed in the workshop — roughly $219,000 for the prior year and a projection of about $346,000 for the upcoming year — and said paying over a third of a small authority’s budget for a single salary would be significant.
Despite the concerns, council voted to approve the DDA executive director contract as presented with the not-to-exceed $75,000 figure and benefits contingent on a background check. The roll-call portion of the meeting recorded affirmative votes including Ryan, Cole, Wine Burner and Brandon; the motion carried per the recorded roll call.
The contract contains parameters set by the DDA and was described by staff as subject to subsequent technical edits (name, effective date, and final administrative language). Council members and staff signaled they expect to clarify insurance and reimbursement language and to monitor the DDA’s budget impact as part of upcoming budget discussions.
