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CITY OF MUSKEGON
DOWNTOWN DEVELOPMENT
AUTHORITY/BROWNFIELD
REDEVELOPMENT AUTHORITY
MEETING
July 14, 2026 @ 10:30 AM
CONFERENCE ROOM 204
933 TERRACE STREET, MUSKEGON, MI 49440
AGENDA
☐ CALL TO ORDER:
☐ APPROVAL OF MINUTES:
I. June 30, 2026 DDA/BRA Meeting Minutes Economic Development
☐ ROLL CALL:
☐ PUBLIC COMMENT ON AGENDA ITEMS:
☐ PUBLIC HEARINGS:
☐ NEW BUSINESS:
I. BRA: Development and Reimbursement Agreement for 221 W. Webster,
LLC — 221 W. Webster Ave & 1040 2nd St. Economic Development
II. BRA: Brownfield 101 Presentation Economic Development
III. BRA: Former Mall Tax Capture Discussion Economic Development
IV. DDA: TIFA 1 Capture Economic Development
V. DDA: Acceptance of Financial Report for June 30, 2026 Economic
Development
☐ ANY OTHER BUSINESS:
☐ ADJOURNMENT:
AMERICAN DISABILITY ACT POLICY FOR ACCESS TO OPEN MEETINGS OF THE CITY OF
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MUSKEGON AND ANY OF ITS COMMITTEES OR SUBCOMMITTEES
To give comment on a live-streamed meeting the city will provide a call-in telephone
number to the public to be able to call and give comment. For a public meeting that is
not live-streamed, and which a citizen would like to watch and give comment, they
must contact the City Clerk’s Office with at least a two-business day notice. The
participant will then receive a zoom link which will allow them to watch live and give
comment. Contact information is below. For more details, please
visit: www.shorelinecity.com
The City of Muskegon will provide necessary reasonable auxiliary aids and services, such
as signers for the hearing impaired and audio tapes of printed materials being
considered at the meeting, to individuals with disabilities who want to attend the
meeting with twenty-four (24) hours’ notice to the City of Muskegon. Individuals with
disabilities requiring auxiliary aids or services should contact the City of Muskegon by
writing or by calling the following:
Ann Marie Meisch, MMC. City Clerk. 933 Terrace St. Muskegon, MI 49440. (231)724-6705.
[email protected]
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CITY OF MUSKEGON
DOWNTOWN DEVELOPMENT
AUTHORITY/BROWNFIELD
REDEVELOPMENT AUTHORITY
MEETING
June 9, 2026 @ 10:30 AM
CONFERENCE ROOM 204
933 TERRACE STREET, MUSKEGON, MI 49440
MINUTES
AGENDA
CALL TO ORDER
M. Bottomley called the meeting to order at 10:33 and roll was taken.
ROLL CALL
MEMBERS PRESENT: Martha Bottomley, Kiel Reid, Bob Tarrant, Sherri Black,
Michael Kleaveland, James Curtis, Brad Hastings, Jeanette moore, Jonathan
Seyferth, JoAnn Dornbos, Chad Doane, Kathryne Lynnes
MEMBERS ABSENT:
MEMBERS EXCUSED: Andrew Boyd
STAFF PRESENT: J. Hines, J. Eckholm, W. Webster
OTHERS PRESENT: Russell Galumba, American Fabricators
APPROVAL OF MINUTES
I. May 12, 2026 DDA/BRA Meeting Minutes Economic Development
A motion to May 12, 2026 DDA/BRA Meeting Minutes was made by B. Hastings,
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supported by C. Doane, and all in favor.
PUBLIC COMMENT ON AGENDA ITEMS
None
PUBLIC HEARINGS
None
NEW BUSINESS
I. BRA: Request for Reimbursement — 221 W. Webster Ave. & 1040 2nd
Street Economic Development
Core Plaza, the former Huntington Bank building located at 221 W. Webster
Avenue and 1040 2nd Street, has been redeveloped into a multi-tenant
commercial facility. The project transformed a long-vacant property into
approximately 42,888 square feet of restored commercial space consisting of
restaurants, retail establishments, and office suites. Construction commenced in
2021 and was completed in 2025, with a total private investment of
approximately $10 million.
The request for reimbursement was submitted on March 31, 2026. The Brownfield
Plan Amendment was approved by both the Brownfield Redevelopment
Authority (BRA) and the City Commission on April 8, 2025. In accordance with
Act 381, Public Acts of Michigan, 1996, as amended, the BRA is responsible for
reviewing and approving reimbursement requests associated with eligible
brownfield activities.
Coalition Companies (Jeff Salowitz) and City staff have reviewed the submitted
invoices and determined that they accurately reflect the eligible activities
authorized under the Brownfield Plan. While actual eligible expenses exceeded
the approved amount, reimbursement is limited to the $838,500 authorized in
the Brownfield Plan. This amount consists of $27,500 in EGLE-eligible activities,
$252,000 in MEDC-eligible activities, and $559,000 in local-only eligible activities.
Reimbursement will occur through the capture of tax increment revenues as
they become available over the life of the plan.
Upon completion of all reimbursements, the Local Brownfield Revolving Fund
(LBRF) is projected to receive approximately $306,814 by 2048.
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Motion by K. Reid, second by J. Moore, to approve the request for
reimbursement submitted by 221 W. Webster Ave. for eligible activities.
ROLL VOTE: Ayes: J. Curtis, M. Kleaveland, K. Reid, K. Lynnes, B. Tarrant, B.
Hastings, M. Bottomley, S. Black, J. Moore, C. Doane, J. Dornbos, J.
Seyferth
Nays: None
MOTION PASSES
II. BRA: Brownfield Plan Amendment for American Fabricated Products —
331 W. Laketon Ave. Economic Development
American Fabricated Products, Inc. (American Fab) has submitted a request for
a Brownfield Plan Amendment for the property located at 331 W. Laketon
Avenue. The Brownfield Plan Amendment will facilitate the redevelopment of
the former Intra City Dispatch facility by enabling the use of tax increment
financing (TIF) to reimburse the developer for eligible environmental and site
redevelopment activities associated with the creation of a new industrial
facility.
The former Intra City Dispatch facility will be rehabilitated and occupied by
American Fab, a West Michigan-based manufacturer specializing in advanced
metal fabrication, precision machining, laser cutting, CNC machining, welding,
robotic welding, metal forming, assembly, and prototype-to-production
manufacturing services. The company serves a diverse customer base across
the defense, automotive, furniture, industrial, logistics and warehousing,
agricultural, medical, and food service industries. American Fab supports both
original equipment manufacturers (OEMs) and their suppliers and is a supplier to
prime and subcontract defense contractors, manufacturing components for
military defense vehicles.
The relocation and expansion of American Fab's operations to the City of
Muskegon will retain 30 existing jobs and create an additional 22 jobs. The total
project investment is estimated at $650,000.
The Brownfield Plan Amendment includes $75,202 in developer-eligible
activities, consisting of $63,702 in pre-approved activities and $11,500 for
Brownfield Plan Amendment preparation. In addition, the plan includes $10,673
in Brownfield Redevelopment Authority administrative costs and $75,202 for the
Local Brownfield Revolving Fund (LBRF).
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The reimbursement period is anticipated to remain in effect through 2045, with
the collection of tax increment revenues beginning in 2039. The duration of the
reimbursement period may be adjusted pending approval of the Industrial
Facilities Exemption Certificate.
K. Reid shared concerns about subsidizing them with taxpayer dollars, school
funds, blight, etc.
J. Eckholm provided further clarification - schools are held harmless both local
and state. The state reimburses schools for loss revenue on a state captured
Brownfield school aid fund. Schools immediately benefit from new taxable
value, Brownfield or not.
J. Seyferth also added Further clarification - As a Brownfield group, we make
environment conducive for business growth within the city. Brownfields are set
up to do exactly what this business is asking. It is going to get a building
reactivated that exists for manufacturing purposes. We need to use the limited
tools we have to invite investments in our city. This will bring in more income tax
from both an industrial standpoint that we don't currently get in addition to the
businesses that are there. We wil be getting a tax break for a period of time,
but when that expires, we will be receiving full freight.
Motion by B. Tarrant, second by C. Doane, to approve the resolution for the
Brownfield Plan Amendment located at 331 W. Laketon Ave. and further request
staff to set a public hearing before the City Commission to consider adoption of
the plan.
ROLL VOTE: Ayes: J. Curtis, M. Kleaveland, K. Lynnes, B. Tarrant, B. Hastings, M.
Bottomley, S. Black, J. Moore, C. Doane, J. Dornbos, J. Seyferth
Nays: K. Reid
MOTION PASSES
III. BRA: Development and Reimbursement Agreement for American
Fabricated Products, INC.—331 W. Laketon Ave. Economic
Development
American Fabricated Products, Inc. (American Fab) is requesting approval of a
Development and Reimbursement Agreement for the property located at 331
W. Laketon Avenue.
The former Intra City Dispatch facility was acquired by AFP Real Estate, LLC to
facilitate the relocation and expansion of American Fab's operations from
Spring Lake to the City of Muskegon. American Fab is a West Michigan-based
manufacturer specializing in advanced metal fabrication, precision machining,
laser cutting, CNC machining, welding, robotic welding, metal forming,
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assembly, and prototype-to-production manufacturing services. The company
serves a diverse customer base across the defense, automotive, furniture,
industrial, logistics and warehousing, agricultural, medical, and food service
industries. American Fab supports both original equipment manufacturers
(OEMs) and their suppliers and is a supplier to prime and subcontract defense
contractors, manufacturing components for military defense vehicles.
The Brownfield Plan is anticipated to remain in effect through 2048, or until all
eligible activities have been reimbursed, whichever occurs first. The duration of
the reimbursement period may be impacted by the approval of an Industrial
Facilities Exemption Certificate, which is scheduled for City Commission
consideration on June 9, 2026.
The Brownfield Plan Amendment is scheduled for consideration by the
Brownfield Redevelopment Authority (BRA) at its June 9, 2026 meeting. Upon
approval of the Development and Reimbursement Agreement by the BRA, staff
will forward a recommendation to the City Commission for consideration at its
June 23, 2026 meeting.
The Development and Reimbursement Agreement complements the Brownfield
Plan by establishing the specific terms, conditions, and procedures for
reimbursement, including the timeline for repayment of eligible activities
through tax increment financing (TIF) revenues.
Motion by J. Seyferth, second by J. Moore to approve the Development and
Reimbursement Agreement for the approved Brownfield Plan for American
Fabricated Products, INC (331 W. Laketon Ave.) as presented..
ROLL VOTE: Ayes: J. Curtis, M. Kleaveland, K. Reid, K. Lynnes, B. Tarrant, B.
Hastings, M. Bottomley, S. Black, J. Moore, C. Doane, J. Dornbos, J.
Seyferth
Nays: None
MOTION PASSES
IV. DDA: Acceptance of Financial Report for May 31, 2026 Economic
Development
City staff requests approval of the financial report for the period ending May 31,
2026. The current projected fund balance is $454,964.56.
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Significant revenues for May included $5,506 in tax increment revenues
generated from captured taxes associated with tax incentive properties.
Significant expenses for the month included staffing costs, chalet rent, and the
Barry's Greenhouse contract.
Motion by K. Reid, second by B. Hastings, to approve the May 31, 2026, financial
report as presented..
ROLL VOTE: Ayes: J. Curtis, M. Kleaveland, K. Reid, K. Lynnes, B. Tarrant, B.
Hastings, M. Bottomley, S. Black, J. Moore, C. Doane, J. Dornbos, J.
Seyferth
Nays: None
MOTION PASSES
V. DDA: Approval of 2026-2027 Budget Economic Development
Staff reviewed historical revenues, expenditures, and operational costs in
developing the attached FY 2026–2027 budget. As part of this review, staff also
evaluated sponsorship expenditures from recent fiscal years.
FY 2023–2024 Sponsorships: $22,800
• Lakeshore Legacy Project (downtown holiday lights)
• Parties in the Park
• Haybales
• MMA Festival of Trees
FY 2025–2026 Sponsorships: $41,623.69
• Pitch Competition with Muskegon Innovation Hub
• Chalet Workshops
• Chalet Rentals
• Parties in the Park
• Haybales
• Michigan Makers Market (Girlfriends Getaway Weekend)
• Lakeshore Legacy Project (downtown holiday lights)
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• Snowflakes
FY 2026–2027 Proposed Sponsorships: $33,924
• Michigan Makers Market (Girlfriends Getaway Weekend)
• Haybales
• Lakeshore Legacy Project (downtown holiday lights)
• Snowflakes
• Chalet Rentals
• Chalet Workshops
As the Board considers future sponsorship requests, it is important to recognize
that increases in sponsorship funding reduce the resources available for other
DDA priorities, including marketing, consulting services, strategic planning
initiatives, and other economic development activities. Staff encourages the
Board to consider sponsorship requests within the context of the DDA's overall
goals, available resources, and long-term financial sustainability.
Motion by J. Seyferth, second by C. Doane, to approve the 2026-2027 budget
as presented.
ROLL VOTE: Ayes: J. Curtis, M. Kleaveland, K. Reid, K. Lynnes, B. Tarrant, B.
Hastings, M. Bottomley, S. Black, J. Moore, C. Doane, J. Dornbos, J.
Seyferth
Nays: None
MOTION PASSES
ANY OTHER BUSINESS
J. Hines updated the board on downtown projects. Lakeview Lofts, Element by
Marriott, Harbor 31 and Muskegon Lakeshore Chamber of Commerce
Ambassador Program
I. BRA CLOSED SESSION: TIF Capture Economic Development
M. Bottomly made a motion to go into closed session at 10:58 to consider
material exempt from discussion or disclosure, under state or federal statute, as
an attorney/client communication. Supported by J. Moore
ROLL VOTE: Ayes: J. Curtis, M. Kleaveland, K. Reid, K. Lynnes, B. Tarrant, B.
Hastings, M. Bottomley, S. Black, J. Moore, C. Doane, J. Dornbos, J.
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Seyferth
Nays: None
MOTION
PASSES
J. Seyferth made a motion to come out of closed session at 11:37. Supported
by B. Tarrant. All in favor.
B. Tarrant made a motion to accept the recommendation in the city staff letter
regarding the Muskegon Mall Brownfield Plan. Second by C. Doane.
ROLL VOTE: Ayes: J. Curtis, M. Kleaveland, K. Lynnes, B. Tarrant, B. Hastings, M.
Bottomley, J. Moore, C. Doane, J. Dornbos, J. Seyferth
Nays: None
MOTION
PASSES
ADJOURNMENT
There being no further business, the meeting was adjourned at 11:52.
Respectfully Submitted,
Ann Marie Meisch, MMC City Clerk
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Agenda Item Review Form
Muskegon Downtown Development
Authority/Brownfield Redevelopment Authority
Commission Meeting Date: July 14, 2026 Title: BRA: Development and Reimbursement
Agreement for 221 W. Webster, LLC — 221 W.
Webster Ave & 1040 2nd St.
Submitted by: Jocelyn Hines, Development Department: Economic Development
Analyst
Brief Summary:
221 W. Webster, LLC is seeking approval of the development and reimbursement agreement for 221
W. Webster Ave. & 1040 2nd St.
Detailed Summary & Background:
The Development and Reimbursement Agreement between the Brownfield Redevelopment
Authority (BRA), the City of Muskegon, and the developer extends through 2048, or until all eligible
activities have been reimbursed through tax increment financing (TIF) capture, whichever occurs first.
The Brownfield Plan Amendment was approved by the BRA and City Commission on April 8, 2025.
The Development and Reimbursement Agreement complements the Brownfield Plan Amendment by
defining the specific terms, conditions, and timeline for reimbursement. The first reimbursement
request was approved by the BRA at its June 9, 2026 meeting; however, it was subsequently
discovered that a Development and Reimbursement Agreement had not been presented for
approval. Pursuant to the Brownfield Plan and the terms governing reimbursement, tax increment
reimbursements cannot be made until the Development and Reimbursement Agreement has been
duly approved and executed.
Goal/Action Item:
2027 Goal 2: Economic Development Housing and Business
Is this a repeat item?:
Explain what change has been made to justify bringing it back to Commission:
Amount Requested: Budgeted Item:
N/A Yes No N/A X
Fund(s) or Account(s): Budget Amendment Needed:
N/A Yes No N/A X
Recommended Motion:
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I move to approve the Development and Reimbursement Agreement for the approved Brownfield
Plan for 221 W. Webster, LLC (221 W. Webster Ave & 1040 2nd St.) as presented.
Approvals: Name the Policy/Ordinance Followed:
Immediate Division X Public Act 381 of 1996, as amended
Head
Information
Technology
Other Division Heads
Communication
Legal Review X
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DEVELOPMENT AND REIMBURSEMENT AGREEMENT
THIS DEVELOPMENT AND REIMBURSEMENT AGREEMENT (the "Agreement"), is
entered into on , 2026, between the CITY OF MUSKEGON BROWNFIELD
REDEVELOPMENT AUTHORITY, a Michigan public body corporate established pursuant
to Act 381 of the Public Acts of 1996, as amended, MCL 125.2651 et seq. ("Act 381"), whose
address is 933 Terrace Street, Muskegon, Michigan 49440 (the "Authority"), and 221 W
WEBSTER, LLC a Michigan limited liability company, whose address is P.O. Box 1485,
Muskegon, MI 49443 (the "Developer").
RECITALS
A. The Authority was created by the City of Muskegon (the “City”) pursuant to the
Brownfield Redevelopment Financing Act, Act 381 of the Public Acts of Michigan of
1996, as amended (“Act 381”). Pursuant to Act 381, the Authority has prepared a
Brownfield Plan, which was duly approved by the City of Muskegon Board of
Commissioners (the “Brownfield Plan”).
B. The Developer owns approximately 2.2 acres of property in the City of Muskegon at street
addresses 221 West Webster Avenue, and 1040 2nd Street, Muskegon, Muskegon County,
Michigan (the “Property”), which is legally described in the attached Brownfield Plan
Amendment (the “Plan Amendment”) attached as Exhibit A, and which is a “facility” as
defined in Act 381.
C. The Plan Amendment was recommended for approval by the MBRA on April 8, 2025, and
approved by the City of Muskegon Board of Commissioners on April 8, 2025.
D. The Developer proposes renovating the existing structure into a multi-suite commercial
structure. Once the redevelopment is completed, the building will consist of approximately
42,888 square feet of restored commercial spaces. The Project will have the effect of
assisting in the redevelopment of the Property, increasing the tax base, creating jobs,
otherwise enhancing the economic vitality and quality of life in the County.
E. Act 381 permits the Authority to capture and use the property tax revenues generated from
the incremental increase in property value of a redeveloped brownfield site constituting an
“eligible property” under Act 381 to pay or to reimburse the payment of costs of conducting
activities that meet the requirements under Act 381 of “eligible activities” (hereinafter the
“Eligible Costs”).
F. By undertaking the Project, the Developer incurred and will incur Eligible Costs, which
include costs associated with pre-approved environmental due diligence activities, selective
demolition, asbestos abatement, and Plan Amendment preparation and development, all as
defined in the Plan Amendment.
G. The Authority has incurred and will incur certain eligible administrative expenses
associated with the Plan Amendment (the “Administrative Costs”), for which it seeks
reimbursement from Local Tax Increment Revenue (“Local TIR”) and pre-approved State
TIR, including Plan Amendment implementation.
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H. Following reimbursement of all amounts due the Developer and all amounts payable to the
Authority as Administrative Costs from applicable Local TIR and pre-approved State TIR
(as defined below), additional tax increment revenues will be deposited into the local
brownfield revolving fund for up to five full years, which is in accordance with Section
13(5) of Act 381, which limits such deposits to be made for no more than five years after
the time that capture is required to pay the Eligible Costs.
I. In accordance with Act 381 and subject to the terms of this Agreement, the parties desire to
use the Local TIR, and pre-approved State TIR, that are generated from an increase in the
taxable value of the real and personal property resulting from the redevelopment of the
Property to which the Authority is entitled to receive (the “Tax Increment Revenues”) to
reimburse the Developer for the Eligible Costs, to pay the Authority for Administrative
Costs and to fund a local brownfield revolving fund pursuant to Act 381.
J. The parties are entering into this Agreement to establish the procedure for such
reimbursement and funding.
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Terms and Conditions
Therefore, in exchange for the consideration in, and referred to, by this Agreement, the parties
agree as follows:
1. Capture of Taxes: During the Term of this Agreement, the Authority shall capture only
those Tax Increment Revenues that are lawfully eligible for capture under Act 381 and that are
specifically authorized for capture in the Brownfield Plan and any approved Plan Amendment for the
Property and use those Tax Increment Revenues provided in this Agreement.
2. Submission of Costs: For those Eligible Costs for which the Developer seeks
reimbursement from the Authority, the Developer shall submit to the Authority:
(a) a written statement detailing the costs;
(b) a written explanation as to why they are Eligible Costs;
(c) copies of invoices and proof of payment from contractors, engineers or others who
provided such service, or, for the Developer's personnel for whose services
reimbursement is being sought, detailed time records showing the work performed by
such individuals; and
(d) copy of occupancy permit
(e) copies of the required local building permits, inspection reports, and any other
information which may be required by the Authority or its auditors.
3. Payments:
a. The Tax Increment Revenues received by the Authority shall be paid to the Developer
to reimburse it for Eligible Costs actually paid by the Developer. Local TIR generated
from the Property shall first be retained by the Authority in an amount equal to 10% of
the annual Tax Increment Revenues up to the maximum amount allowed annually for
Administrative Costs under Act 381 for all Authority projects. After retention of such
Local TIR, Tax Increment Revenues shall be used to reimburse the Developer for
Eligible Costs, provided, however, if Developer has not paid any applicable professional
fees and costs (legal, environmental, etc.) incurred by the Authority related to
Developer’s request to use Project Tax Increment Revenues to reimburse it for Eligible
Costs within 30 days of being invoiced for such costs, the Authority is authorized to pay
such costs from Project Tax Increment Revenues before such Project Tax Increment
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Revenues are used to reimburse Developer. The amount of Project Tax Increment
Revenues used to pay such costs shall be subtracted from Developer total Eligible Costs
and Developer shall not be entitled to reimbursement of such amount. The Authority
shall have no obligation to reimburse the Developer for Eligible Costs from Tax
Increment Revenues captured and received by the Authority after the 20-year Developer
reimbursement period. Tax Increment Revenues shall be distributed according to the
Cost Table included as Exhibit B.
b. Unless the Authority disputes whether such costs are Eligible Costs or the accuracy of
such costs, the Authority shall, after review by an Authority Board member or the City
Economic Development Coordinator and approval by the Authority Board, pay to the
Developer the amounts for which submissions have been made pursuant to Section 2 of
this Agreement within 30 days after the Authority Board has approved such payment
provided Tax Increment Revenues have been received from which the submission may
be wholly or partially paid and provided, further, an occupancy permit shall have been
issued for those portions of the Project for which there are Eligible Costs. Developer
shall cooperate with the Authority’s review of its Request for Reimbursement by
providing supplemental information and documentation which may be reasonably
requested by the Authority. If a partial payment is made by the Authority because of
insufficient Tax Increment Revenues, the Authority shall make additional payments
toward the remaining amount within 30 days of its receipt of additional Tax Increment
Revenues until all of the amounts, for which submissions have been made, have been
fully paid to the Developer or to December 31, 2044, whichever occurs first.
c. Adjustments: If, due to an appeal of any tax assessment or reassessment of any portion
of the Property or for any other reason, including but not limited to fraud,
misrepresentation, use of funds for ineligible costs, failure to complete the Project as
approved, the Authority is required to reimburse any Tax Increment Revenues to the
County, City, or any other tax levying unit of government, the Authority may deduct
the amount of any such reimbursement, including interest and penalties, from any
amounts due and owing the Developer. If all amounts due the Developer under this
Agreement have been fully paid or the Authority is no longer obligated to make any
further payments to the Developer, the Authority shall invoice the Developer for the
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amount of such reimbursement and the Developer shall pay the Authority such invoiced
amount within 30 days of the Developer's receipt of the invoice. Amounts invoiced and
paid to the Authority by the Developer pursuant to this paragraph shall be reinstated as
Eligible Costs for which the Developer shall have the opportunity to be reimbursed in
accordance with the terms, conditions and limitations of this Agreement. Nothing in
this Agreement shall limit the right of the Developer to appeal any tax assessment.
4. Reporting.
a. The Developer shall provide to the Authority, within 30 days after the Project
receives an occupancy permit, and annually thereafter no later than May 1 of each
year during the Term of reimbursement under this Agreement, a report of the
following, as applicable, for the preceding calendar year pursuant to reporting
requirements under Section 16 of Act 381:
1. Total investment and new capital investment since the prior year’s
report.
2. Square footage of new construction or renovation, whether residential,
commercial, or other use, and use of new or renovated space.
3. New jobs created.
4. Total number of housing units.
5. Other information required to be reported to the State of Michigan to
verify compliance with Act 381.
5. Interpretation. This is the entire agreement between the parties as to its subject. It
shall not be amended or modified except in writing signed by the parties. The waiver of any breach
shall not constitute a waiver of any subsequent breach of the same or any other provision.
6. Assignment. This Agreement and the rights and obligations under this Agreement shall
not be assigned or otherwise transferred by either party without the consent of the other party, which
shall not be unreasonably withheld, provided, however, the Developer may assign its interest in this
Agreement to an affiliate without the prior written consent of the Authority, provided, any such
assignee shall acknowledge to the Authority in writing on or prior to the effective date of such
assignment its obligations upon assignment under this Agreement, provided, further, that the
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Developer may make a collateral assignment of the Tax Increment Revenues after review of such
assignment and consent by the Authority’s legal counsel and approval of the Authority. As used in
this paragraph, “affiliate” means any corporation, company, partnership, limited liability company,
trust, sole proprietorship or other individual or entity which (a) is owned or controlled by the
Developer, (b) owns or controls the Developer or (c) is under common ownership or control with the
Developer. This Agreement shall be binding upon any successors or permitted assigns of the parties.
7. Indemnification. Developer agrees to indemnify and hold City of Muskegon, the City
of Muskegon Brownfield Redevelopment Authority, as well as all officers, agents, employees, and
assigns thereof harmless, including attorney’s fees, against (a) any and all claims by any person
claiming for personal or property injuries or damage due to the Developer’s redevelopment of the
Property provided pursuant to the terms of this Agreement, and/or (b) claims by any third parties which
may arise out of, or be related to, the Developer’s redevelopment of the Property pursuant to this
Agreement. Developer shall not be obligated to indemnify any persons under this section if the liability
arises out of the person’s negligence, willful misconduct, or breach of this Agreement or the negligence
or willful misconduct of any person or entity acting by, through or under any such persons.
8. Term. This Agreement shall terminate when all reimbursements and payments
contemplated under this Agreement have been paid or December 31, 2044, whichever comes first.
9. Legislative Authorization. This Agreement is governed by and subject to the
restrictions set forth in Act 381. If there is legislation enacted in the future that alters or affects the
amount of Brownfield TIF Revenue subject to capture, eligible property, or Eligible Activities, then
the Developer’s rights and the Authority’s obligations under this Agreement shall be modified
accordingly as required by law, or by agreement of the parties.
10. Notices. All notices shall be given by registered or certified mail addressed to the parties
at their respective addresses as shown above. Any party may change the address by written notice sent
by registered or certified mail to the other party.
11. Severability. If any term, provision or condition contained in this Agreement shall, to
any extent, be invalid or unenforceable, the remainder of this Agreement (or the application of such
term, provision or condition to persons or circumstances other than those in respect of which it is
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invalid or unenforceable) shall not be affected thereby, and each term, provision or condition of this
Agreement shall be valid and enforceable to the fullest extent permitted by law.
12. Binding Effect. This Agreement shall be binding upon and enforceable by the parties
and their respective legal representatives, successors, and assigns.
13. Entire Agreement. This Agreement supersedes all agreements previously made
between the parties relating to the subject matter. There are no other understandings or agreements
between the parties.
14. Non-Waiver. No delay or failure by either party to exercise any right under this
Agreement, and no partial or single exercise of that right, constitutes a waiver of that or any other right,
unless otherwise expressly provided herein.
15. Governing Law. This Agreement shall be construed in accordance with and governed
by the laws of the State of Michigan.
16. Counterparts. This Agreement may be executed in two or mor counterparts, each of
which shall be deemed an original but all of which together shall constitute one and the same
instrument.
[Signature page follows]
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WHEREFORE, this Agreement has been executed as of the date first written above.
CITY OF MUSKEGON BROWNFIELD
REDEVELOPMENT AUTHORITY
__________________________________
By:
Its:
CITY OF MUSKEGON
__________________________________
By:
Its:
__________________________________
By:
Its:
221 W WEBSTER, LLC
__________________________________
By:
Its:
8
Page 20 of 40
EXHIBIT A
Brownfield Plan Amendment
9
Page 21 of 40
EXHIBIT B
Financial Consideration Between the Parties
Summary of approved Eligible Costs
Eligible Activities Cost
To the Authority $105,018
Administration (10%) $105,018
To the Developer $838,500
State $172,656
Local $665,844
To Local Brownfield Revolving Fund $306,814
State $27,500
Local $279,314
Total approved costs $1,250,332
State TIR $200,156
Local TIR $1,050,176
Page 22 of 40
Agenda Item Review Form
Muskegon Downtown Development
Authority/Brownfield Redevelopment Authority
Commission Meeting Date: July 14, 2026 Title: BRA: Brownfield 101 Presentation
Submitted by: Jake Eckholm, Development Department: Economic Development
Services Director
Brief Summary:
Director Eckholm will be presenting on the basics of a brownfield redevelopment authority and
brownfield revolving loan fund.
Detailed Summary & Background:
Director Eckholm will be presenting on the basics of a brownfield redevelopment authority and
brownfield revolving loan fund.
Goal/Action Item:
Is this a repeat item?:
Explain what change has been made to justify bringing it back to Commission:
Amount Requested: Budgeted Item:
N/A Yes No N/A X
Fund(s) or Account(s): Budget Amendment Needed:
N/A Yes No N/A X
Recommended Motion:
Discussion Only
Approvals: Name the Policy/Ordinance Followed:
Immediate Division
Head
Information
Technology
Other Division Heads
Communication
Legal Review
Page 23 of 40
BROWNFIELD
101 Page 24 of 40
WHAT WE
WILL COVER
CITY OF MUSKEGON BROWNFIELD
REDEVELOPMENT AUTHORITY
- BROWFIELD: WHAT IS IT?
- TAX INCREMENT FINANCING
- STATE CAPTURE AND TBP
- BROWNFIELD REVOLVING FUND
- POTENTIAL PROGRAMMING OF
A BRA
- Q&A
2
Page 25 of 40
BROWNFIELD
WHAT IS IT?
CITY OF MUSKEGON BROWNFIELD
REDEVELOPMENT AUTHORITY
Public Act 381 Eligible Properties Incentives
The State of Law in Michigan The Act empowers
Michigan’s Brownfield defines Brownfield both state agencies
Legislation Eligible sites as and local governments
“contaminated,
Works hand in hand blighted, historic, or Local TIF and
with Federal statutes functionally obsolete” Revolving Funds
(CERCLA)
Qualified Facilities are State BSA Funding
eligible for benefits of
the Act. EGLE Grant and Loan
3
Page 26 of 40
TAX INCREMENT
FINANCING
CITY OF MUSKEGON BROWNFIELD
REDEVELOPMENT AUTHORITY
- Tool used by local governments for community improvements or development
projects
- Set the “0 Year” of taxable value
- As value increases, the “increment” or increase in value is captured and diverted for
other purposes
- Most of the time, the capture applies to all non-public school local millages
- For the BRA, this is reimbursement to an eligible recipient for “eligible activities”
- Environmental remediation
- Demolition
- Connection to public utilities
- Soft costs
4
Page 27 of 40
STATE CAPTURE &
TRANSFORMATIONAL
BROWNFIELD (TBP)
CITY OF MUSKEGON BROWNFIELD
REDEVELOPMENT AUTHORITY
- Developers (with local support) can apply to Michigan Economic Development
Corporation (MEDC) for additional TIF incentive
- State Capture must be approved by Michigan Strategic Fund Board, allows for
capture of school millages (schools held harmless)
- Transformational Brownfields are for generational projects
- Only 14 since inception in 2018
- Also capture state sales and use, income taxes of
residents/employees/contractors
- Can capture local income tax as well, if present
- State of Michigan just renewed depleted funding for TBP at the beginning of July,
2026
5
Page 28 of 40
BROWNFIELD
REVOLVING FUNDS
CITY OF MUSKEGON BROWNFIELD
REDEVELOPMENT AUTHORITY
- City staff work with developers to include the BRA in the TIF collection, typically for
the final five years of TIF capture after developer reimbursement
- Additionally, we negotiate an annual administration fee to offset the BRA’s cost of
carrying out the Brownfield Plan, this is covered in a “Development and
Reimbursement Agreement”
- These monies are kept in a Brownfield Revolving Fund (BRF) to partner on future
projects
- Environmental Site Assessments, Due Care Plans, other “soft costs”
- Connection to public utilities
- Low interest loans/gap financing for eligible activities
- Grants to emerging developers
- Acquire strategic properties
6
Page 29 of 40
POTENTIAL
MUSKEGON BRF
PROGRAMS
CITY OF MUSKEGON BROWNFIELD
REDEVELOPMENT AUTHORITY
- Gap Financing Loans
- Muskegon deals tend to have gaps between “senior debt” and equity
investment that sometimes cannot be covered by available tax incentives.
Low interest cash at the “front” of a project can get them to construction.
- Emerging Developer Grants
- These can provide dollars (alongside EGLE programming) for soft costs on a
site for new or local developers on smaller scale projects
- Site Planning
- Environmental Site Assessments
- Survey
- Architectural Services
- Engineering (Geotechnical, Mechanical, Electrical, Plumbing, Civil)
7
Page 30 of 40
POTENTIAL
MUSKEGON BRF
PROGRAMS
CITY OF MUSKEGON BROWNFIELD
REDEVELOPMENT AUTHORITY
- Strategic Property Acquisitions for Brownfield Projects
- Brunswick Site
- Amoco Tank Farm
- 1901 Peck Street (Former DYMET)
- 155 W. Holbrook Ave
8
Page 31 of 40
THANK YOU!
QUESTIONS?
Page 32 of 40
Agenda Item Review Form
Muskegon Downtown Development
Authority/Brownfield Redevelopment Authority
Commission Meeting Date: July 14, 2026 Title: BRA: Former Mall Tax Capture Discussion
Submitted by: Jake Eckholm, Development Department: Economic Development
Services Director
Brief Summary:
We have determined the final proposed payment for the BRA related to the former Muskegon Mall
Brownfield Plan
Detailed Summary & Background:
The City's auditors have advised that we settle the accounts related to the former mall Brownfield
Plan in one fiscal year rather than a protracted payment plan. This will result in a large sum of money
being available for programming for the BRA much sooner than we planned. The proposed payment
from the City is $1,519,223, and this is in addition to the estimated $264,000 from the first year of the
Terrace Point BRA capture. Additionally, the City owes another approximately $240,000 to the BRA for
admin fees from other plans. This will, in this fiscal year alone, result in $2,023,223 in the Brownfield
Revolving Fund for the first time in City history.
Staff recommend accepting the lump sum motion as presented.
Goal/Action Item:
Is this a repeat item?:
Explain what change has been made to justify bringing it back to Commission:
Amount Requested: Budgeted Item:
Yes No N/A
Fund(s) or Account(s): Budget Amendment Needed:
Yes No N/A
Recommended Motion:
Motion to grant the City of Muskegon a Brownfield TIF grant in the amount of $442,995 to reimburse
them for uncollected eligible activities related to the Former Muskegon Mall Brownfield Plan, and to
accept a lump sum final payment for revenues related to said plan of $1,519,223 to the Muskegon
Brownfield Redevelopment Authority Revolving Fund.
Approvals: Name the Policy/Ordinance Followed:
Page 33 of 40
Immediate Division
Head
Information
Technology
Other Division Heads
Communication
Legal Review
Page 34 of 40
Agenda Item Review Form
Muskegon Downtown Development
Authority/Brownfield Redevelopment Authority
Commission Meeting Date: July 14, 2026 Title: DDA: TIFA 1 Capture
Submitted by: Jake Eckholm, Development Department: Economic Development
Services Director
Brief Summary:
Upon further review of various TIF plans and other old financial documents, city staff has found a TIF
overlaid on top of the DDA related to what is now the Delta Hotel.
Detailed Summary & Background:
After the situation we uncovered with the former mall Brownfield, we decided to review more old
paper records to determine if there are any other discrepancies in the TIF capture functions the city
performs. Upon further review, we found another TIF district plan that began in 1982 related to City
investment in the parking structure attached to the Delta Hotel by Marriott. The plan allows the City
to capture its original investment. This has been completed, and so the tif district can be dissolved
and the revenues flow instead to the DDA. The total revenue will positively impact the DDA budget
significantly, with an estimated capture this fiscal year of $52,435. This represents approximately a 10%
annual revenue increase moving forward.
Goal/Action Item:
Is this a repeat item?:
Explain what change has been made to justify bringing it back to Commission:
Amount Requested: Budgeted Item:
Yes No N/A
Fund(s) or Account(s): Budget Amendment Needed:
Yes No N/A
Recommended Motion:
Approvals: Name the Policy/Ordinance Followed:
Immediate Division
Head
Information
Technology
Page 35 of 40
Other Division Heads
Communication
Legal Review
Page 36 of 40
Agenda Item Review Form
Muskegon Downtown Development
Authority/Brownfield Redevelopment Authority
Commission Meeting Date: July 14, 2026 Title: DDA: Acceptance of Financial Report for
June 30, 2026
Submitted by: Jocelyn Hines, Development Department: Economic Development
Analyst
Brief Summary:
City staff is requesting approval of the financial report for the period ending June 30, 2026.
Detailed Summary & Background:
City staff is requesting approval of the financial report for the period ending June 30, 2026. The
current projected fund balance is $454,964.56.
Significant revenues for May included $2,606.14 from the State of Michigan for TIF revenue loss.
Significant expenses for the month included staffing costs, Barry's Greenhouse contract, seasonal
workers, and western market workshops.
Goal/Action Item:
Is this a repeat item?:
Explain what change has been made to justify bringing it back to Commission:
Amount Requested: Budgeted Item:
N/A Yes No N/A X
Fund(s) or Account(s): Budget Amendment Needed:
N/A Yes No N/A X
Recommended Motion:
I move to approve the June 30, 2026, financial report as presented.
Approvals: Name the Policy/Ordinance Followed:
Immediate Division X
Head
Information
Technology
Other Division Heads
Page 37 of 40
Communication
Legal Review
Page 38 of 40
DDA FOR CITY OF MUSKEGON
Balance As Of 06/30/2026
YTD Balance 25-26 YTD Balance Activity For
Amended
GL Number Description 06/30/2025 Budget 06/30/2026 06/30/2026
Fund: 394 DOWNTOWN DEVELOPMENT AUTH DS
Account Category: Assets
Department: 000
394-000-001 CASH IN BANK 518,734.47 693,104.65 (36,343.34)
394-000-018 ACCOUNTS RECEIVABLE 17,912.43 0.00 0.00
Total Department 000: 536,646.90 693,104.65 (36,343.34)
Assets 536,646.90 693,104.65 (36,343.34)
Account Category: Liabilities
Department: 000
394-000-202 ACCOUNTS PAYABLE 80,189.25 1,870.40 (11,456.01)
394-000-257 DEFERRED COMPENSATION 1,493.09 0.00 0.00
Total Department 000: 81,682.34 1,870.40 (11,456.01)
Liabilities 81,682.34 1,870.40 (11,456.01)
Account Category: Fund Equity
Department: 000
394-000-399 FUND BALANCE UNRESERVED 460,986.12 454,964.56 0.00
Total Department 000: 460,986.12 454,964.56 0.00
Fund Equity 460,986.12 454,964.56 0.00
Account Category: Revenues
Department: 000
394-000-402 PROPERTY TAX 516,659.00 537,000.00 519,427.00 0.00
394-000-428 REIMBURSEMENT STATE 0.00 0.00 39,469.06 0.00
394-000-540 STATE GRANTS 12,000.00 0.00 0.00 0.00
394-000-569 STATE GRANTS OTHER 0.00 0.00 6,621.98 2,606.14
394-000-613 EVENT REVENUE 98,381.95 100,000.00 86,991.82 15,781.22
394-000-665-004970 INTEREST INCOME 2,071.18 1,300.00 1,553.55 0.00
394-000-679-004847 SPONSORSHIP REVENUE - MUSK ART FAIR 24,000.00 12,000.00 37,000.00 1,000.00
394-000-699-200000 OP. TRANS FROM SPECIAL REVENUE 600.00 0.00 0.00 0.00
Total Department 000: 653,712.13 650,300.00 691,063.41 19,387.36
Revenues 653,712.13 650,300.00 691,063.41 19,387.36
Account Category: Expenditures
Department: 703 DOWNTOWN MUSKEGON BID
394-703-702 BUDGETED SALARIES & BENEFITS 0.00 138,284.00 0.00 0.00
394-703-703 SALARY PERMANENT 70,695.55 0.00 82,352.52 6,036.46
394-703-707 OVERTIME 2,442.90 0.00 2,473.51 0.00
394-703-708 VACATION PAY 7,659.99 0.00 4,232.16 0.00
394-703-710 PERSONAL & OTHER LEAVE 469.39 0.00 1,871.74 0.00
394-703-711 HOLIDAY PAY 3,803.62 0.00 4,240.32 763.82
394-703-712 RETIREE HEALTHCARE - GENERAL 2,430.30 0.00 2,626.39 204.00
394-703-714 MERS RETIREMENT SYSTEM 7,535.81 0.00 8,040.89 612.02
394-703-717 HEALTH INSURANCE 19,805.39 0.00 7,856.30 775.90
394-703-718 LIFE INSURANCE 338.77 0.00 365.60 27.50
394-703-719 DENTAL INSURANCE 967.40 0.00 569.34 72.10
394-703-721 DISABILITY INSURANCE 306.29 0.00 337.15 25.98
394-703-722 SOCIAL SECURITY 6,235.72 0.00 6,715.48 501.80
394-703-723 WORKERS' COMPENSATION 686.77 0.00 641.36 23.41
394-703-724 UNEMPLOYMENT 9.93 0.00 5.77 0.00
394-703-727 BUDGETED SUPPLIES 4,460.00 0.00 3,129.40 0.00
394-703-801 CONTRACTUAL SERVICES 38,583.62 100,000.00 30,130.28 0.00
394-703-850 TELEPHONE 259.72 0.00 61.42 0.00
394-703-861 CONFERENCE, TRAINING AND TRAVEL 0.00 0.00 450.00 0.00
394-703-944 VEHICLE RENTAL 0.00 0.00 7,355.31 0.00
Total Department 703: 166,691.17 238,284.00 163,454.94 9,042.99
Department: 778 LAKESHORE ART FESTIVAL
394-778-749 MISCELLANEOUS MATERIAL & SUPPLIES 16,597.60 2,000.00 13,688.43 2,575.32
394-778-801 CONTRACTUAL SERVICES 68,660.12 20,000.00 24,678.56 8,396.00
394-778-850 TELEPHONE 824.95 700.00 68.71 0.00
394-778-903 ADVERTISING 13,272.25 7,000.00 15,181.71 6,179.01
Total Department 778: 99,354.92 29,700.00 53,617.41 17,150.33
Department: 780 TASTE OF MUSKEGON
394-780-749 MISCELLANEOUS MATERIAL & SUPPLIES 15.99 0.00 370.00 370.00
394-780-801 CONTRACTUAL SERVICES 25,115.20 0.00 0.00 0.00
Total Department 780: 25,131.19 0.00 370.00 370.00
07/07/2026 04:54 PM Page: 1/2
Page 39 of 40
DDA FOR CITY OF MUSKEGON
Balance As Of 06/30/2026
YTD Balance 25-26 YTD Balance Activity For
Amended
GL Number Description 06/30/2025 Budget 06/30/2026 06/30/2026
Fund: 394 DOWNTOWN DEVELOPMENT AUTH DS
Account Category: Expenditures
Department: 808 FARMERS & FLEA MARKET
394-808-801 CONTRACTUAL SERVICES 1,277.90 0.00 0.00 0.00
Total Department 808: 1,277.90 0.00 0.00 0.00
Department: 809 EVENTS
394-809-749 MISCELLANEOUS MATERIAL & SUPPLIES 2,393.58 0.00 2,455.94 0.00
Total Department 809: 2,393.58 0.00 2,455.94 0.00
Department: 906 DEBT SERVICE
394-906-801 CONTRACTUAL SERVICES 204,884.93 145,000.00 234,895.43 17,711.37
394-906-995-400000 OPER. TRANS TO CAPITAL PROJECT 130,000.00 130,000.00 0.00 0.00
Total Department 906: 334,884.93 275,000.00 234,895.43 17,711.37
Department: 999 TRANSFERS TO OTHER FUNDS
394-999-995-400000 OPER. TRANS TO CAPITAL PROJECT 30,000.00 0.00 0.00 0.00
Total Department 999: 30,000.00 0.00 0.00 0.00
Expenditures 659,733.69 542,984.00 454,793.72 44,274.69
07/07/2026 04:54 PM Page: 2/2
Page 40 of 40
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