KALAMAZOO, MI -- Kalamazoo residents are close to getting some answers on how their city's "Foundation for Excellence" will work.

At 6 p.m. Monday night, the Kalamazoo City Commission will discuss proposed bylaws and articles of incorporation that will create the non-profit foundation, which will manage a $500 million endowment. Since an agreement was signed between the city and philanthropists William Parfet and William Johnston, who initially donated $70.3 million, attorneys worked to draft documents that guide the legal structure and governing rules of the foundation.

"We did our homework before preparing these documents and have consulted with our community partners, the Michigan Council of Foundations and reviewed other foundations across the country with similar missions," said City Manager Jim Ritsema in a release. "The structure and bylaws we will present will set the FFE up for long-term success and provide funding to make our aspirations a reality."

The documents spell out how the FFE will work.

Some hanging questions include how the board of directors and officers are selected, how meetings are scheduled and conducted, how projects are chosen for funding and the relationship between the foundation and the City Commission.

According to a release from the city, the documents could be ready for approval by the City Commission at its Aug. 7 meeting.

The memorandum of understanding signed with the philanthropists states Kalamazoo is required to establish the foundation as a nonprofit entity by Aug. 31. The foundation would manage the initial $70.3 million donation and a future endowment expected to total around $500 million.

In addition to replacing revenue lost by lowering the city property tax rate from 19.27 mills to 12 mills, the agreement guarantees $10 million per year for three years for community-building projects. After 2019, the Parfet and Johnston agreed to help raise money to fully endow the foundation, intended to be self-sustaining and last in perpetuity.

After the documents are approved, a community-wide fundraising effort will begin and the Foundation's Board of Directors will be selected.

Kalamazoo asked residents to support the foundation by donating a portion of their 2017 property tax savings. Around $16,000 dollars have already been raised this way.

"We are continuing to see strong support for the Foundation for Excellence and for the important investments that it will enable in our city," said Mayor Bobby Hopewell. "With each step in the progress we are getting closer and closer to ensuring this will continue for generations to come, making our city a better place and helping all in our community to realize their potential."

So far, $3.1 million in programs and staff positions have been funded with $10 million set aside this year for aspirational projects.

The city temporarily reserved "Kalamazoo Foundation for Excellence" with the Department of Licensing and Regulatory Affairs on Feb. 17.

The work session will be held in the City Commission Chambers at City Hall and will be televised live on Public Media Network channel 187. Residents can watch a live stream on the city of Kalamazoo's YouTube channel.

Draft Foundation for Excellence Organizing Documents by Malachi Barrett on Scribd