City Commission Packet 09-16-2022

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                Muskegon City Manager Interview Schedule

                          September 16, 2022



9:00 am                    Jerry Gabrielatos

10:00 am                   Joseph W. Neeb

11:00 am                   Dennis Durham

12:00-1:30 pm              Break

1:30 pm                    Gerald Smith

2:30 pm                    LeighAnn Mikesell

3:30 pm                    Jonathan Seyferth
                      Agenda Item Review Form
                       Muskegon City Commission

Commission Meeting Date: September 16, 2022                 Title: Shaw Walker Environmental
                                                            Assessment Financial Assistance




Submitted By: Jake Eckholm                                  Department: Development Svcs.

Brief Summary:
Staff is recommending an appropriation of $25,000 to match the Downtown Development
Authority’s commitment to environmental and other due diligence items faced by Parkland
Properties related to purchase of the Shaw Walker Building.

Detailed Summary & Background:
Parkland Properties is under contract to purchase the Shaw Walker/Watermark complex from its
current owner, the BALBEC Group based in New York City. This distressed assets/alternative
financing firm has been transparent that they did not wish to end up with the property and are
motivated to sell it to a local developer that has the expertise to implement a solid reuse of the site.
As such, they have listed the property for the last several months and attracted Jon
Rooks/Parkland Properties as a buyer. During the initial 30 day due diligence period, Parkland
discovered some potentially complex and costly environmental issues that required further
professional investigation as well as an extension of the due diligence period. BALBEC has
granted a 45-day extension to complete this work. Parkland has asked to split the considerable
cost for this work between their funds, a site assessment grant from our county-wide Economic
Development Organization, and city funds. With a total cost of $150,000, the request is for $50,000
from the city.


Staff has requested and received $25,000 from the Muskegon Downtown Development Authority
towards this effort, and is further requesting $25,000 from the Muskegon Economic Development
Revolving Fund. A fund balance report in this item reflects a current fund balance of 1.16 million,
and the developer has agreed that in the event a Brownfield TIF is proposed and implemented for
the redevelopment onsite that the City and DDA can take a pro-rata position to get these funds
repaid through tax capture.



Goal/Focus Area/Action Item Addressed:
Focus Area 2: Progress toward completion of existing economic development projects
Goal Action Item: 2.3 Increase variety of housing types

Amount Requested: $25,000                              Amount Budgeted: N/A (Capital Fund)
Fund(s) or Account(s): N/A                          Fund(s) or Account(s): N/A

Recommended Motion:
Motion to approve the appropriation of $25,000 for environmental investigation and other due
diligence items for the Shaw Walker/Watermark Building as presented.

Approvals:                                                          Guest(s) Invited / Presenting:
Immediate Division Head         Information Technology              Yes
Other Division Heads            Communication                       No


Legal Review

For City Clerk Use Only:
Commission Action:
 
                  
 
September 13, 2022 
 
Re: Shaw‐Walker Brownfield Environmental Site Assessment 
 
Muskegon City Commission: 
 
I am writing to encourage the Muskegon City Commission to fully support the matching funding 
proposed for the Shaw‐Walker property assessment. As stated by Jonathan Rooks of Parkland Properties 
at the City Commission meeting on Monday, September 12, Greater Muskegon Economic Development 
(GMED) is in full support of this environmental site assessment project. 
 
GMED is expected to receive EPA funding through a grant in October for Brownfield Environmental Site 
Assessments. We understand the importance of the Shaw‐Walker project and the pivotal impact that it 
will have on Muskegon as we extend the boundaries of downtown development. The Shaw‐Walker 
building is currently the most prominent example of blight for our downtown area.  
  
GMED believes that this project will be a leading example of public‐private partnership. For that reason, 
GMED’s intention is to provide a 1:3 match of $50,000 distributed from the EPA Brownfield 
Environmental Site Assessment grant, on the condition that GMED receives final grant approval from the 
EPA, which is fully anticipated. 
 
The Shaw‐Walker project is a top redevelopment priority, not only for the reason of transforming blight 
into beauty, but also as a means of talent attraction and retention. As our community fights to meet the 
challenges of today’s business climate, the most evident and frequent hurdle cited by our industries is 
the lack of an available workforce. Having a skilled labor pool not only depends on providing good 
paying jobs or education and training, but also it also requires a community to focus on product 
development within the downtown area. As plans move forward with other adjacent developments, 
public art, and public access projects, we need to transform the Shaw‐Walker building into a 
redevelopment that entices a qualified workforce to live, work, play, and stay in the community.  
 
The passion that our local developers have for transformative projects in downtown Muskegon and on 
the Muskegon Lake shoreline is an outstanding asset for the community. In that regard, we are 
fortunate to have a seasoned, proven developer such as Mr. Rooks, to proactively take interest in this 
project and work quickly towards assessing the environmental condition of the site.  
  
Thank you for your quick deliberation and consideration of this project. Knowing the environmental 
condition and the remediation work needed on the property is the first step in transforming this 
building into something that will positively impact our community and continue to elevate Muskegon as 
a top competitor for talent and jobs in our region. 
 
Respectfully, 
 
 
Marla Schneider, President/CEO 

                                                                      This institution is an equal opportunity provider and employer.
09/14/2022 08:26 AM                                REVENUE AND EXPENDITURE REPORT FOR CITY OF MUSKEGON                           Page:   1/1
User: jessica.rabe
DB: Muskegon                                                      PERIOD ENDING 09/30/2022
                           THIS REPORT COMPARES CY ACTUAL REVENUES/EXPENSES WITH BUDGETED AMOUNTS AND WITH PRIOR YEAR ACTUALS
                                                                                          2022-23
                                                                  END BALANCE           ORIGINAL      YTD BALANCE       YTD BALANCE               2022-23
GL NUMBER             DESCRIPTION                                     06/30/2022         BUDGET           09/30/2022        09/30/2021   AMENDED BUDGET

Fund 493 - EDC REVOLVING LOAN
Revenues
FINES & PENALTIES
493-000-665-004970    INTEREST INCOME                              12,199.86               0.00         1,261.09           3,546.76                0.00
FINES & PENALTIES                                                  12,199.86               0.00         1,261.09           3,546.76                0.00

CHARGES FOR SERVICE
493-000-667-004677 RENT                                             6,000.00               0.00         3,000.00           5,500.00                0.00
CHARGES FOR SERVICE                                                 6,000.00               0.00         3,000.00           5,500.00                0.00

CONTRIBUTIONS & MISCELLANEOUS
493-000-674-004805 CONTRIBUTIONS                                   53,000.00               0.00              0.00         50,500.00                0.00
493-000-674-004826 FERRY REVENUE                                   54,915.79               0.00              0.00         24,349.06                0.00
CONTRIBUTIONS & MISCELLANEOUS                                     107,915.79               0.00              0.00         74,849.06                0.00



TOTAL REVENUES                                                    126,115.65               0.00         4,261.09          83,895.82                0.00

Expenditures
CONTRACTUAL SERVICES
728                  ECONOMIC DEVELOPMENT                         385,227.72               0.00         6,568.92           5,588.65                0.00
901                                                                 1,170.00               0.00             0.00               0.00                0.00
CONTRACTUAL SERVICES                                              386,397.72               0.00         6,568.92           5,588.65                0.00

CAPITAL OUTLAYS
728                   ECONOMIC DEVELOPMENT                         24,502.75               0.00              0.00         24,502.75                0.00
CAPITAL OUTLAYS                                                    24,502.75               0.00              0.00         24,502.75                0.00



TOTAL EXPENDITURES                                                410,900.47               0.00         6,568.92          30,091.40                0.00



Fund 493 - EDC REVOLVING LOAN:
TOTAL REVENUES                                                    126,115.65               0.00         4,261.09          83,895.82               0.00
TOTAL EXPENDITURES                                                410,900.47               0.00         6,568.92          30,091.40               0.00
NET OF REVENUES & EXPENDITURES                                   (284,784.82)              0.00        (2,307.83)         53,804.42               0.00
BEG. FUND BALANCE                                               1,443,101.74       1,443,101.74     1,443,101.74       1,443,101.74       1,443,101.74
NET OF REVENUES/EXPENDITURES - 2021-22                                                               (284,784.82)
END FUND BALANCE                                                1,158,316.92       1,443,101.74     1,156,009.09       1,496,906.16       1,443,101.74

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