Downtown Development Authority Minutes 05-11-2021

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                              CITY OF MUSKEGON
                               REGULAR MEETING

                                           May 11, 2021

The meeting was held electronically via Zoom. Chairperson M. Bottomley called the meeting to order
at 10:30 AM and roll was taken.

MEMBERS PRESENT:             M. Bottomley (Muskegon MI), B. Hastings (Muskegon MI), M.
                             Kleaveland (Muskegon MI), F. DePung (Muskegon MI), M. Johnson Sr
                             (Norton Shores MI), S. Black (Muskegon MI), H. Sytsema (Muskegon
                             MI), D. Kalisz (Muskegon MI), H. Sytsema (Muskegon MI), F. Peterson

MEMBERS ABSENT:              J. Riegler, J. Moore, D. Pollock

STAFF PRESENT:               P. Wills, Director of Strategic Initiatives; J. Eckholm, Economic
                             Development Director; L. Mikesell, Director of Development Services;
                             D. Alexander, Downtown Manager; C. Cashin, Planner & meeting

OTHERS PRESENT:              R. Wilson, Fishbeck; M. Houseman, Wolverine Building Co.

A motion to approve the regular meeting minutes of April 13, 2021 was made by F. Peterson, supported
by M. Kleaveland and unanimously approved.


Brownfield Plan Amendment for Viridian Shores Redevelopment Project – P. Wills explained the
request. Harbor 31 LLC sought BRA approval to amend the Brownfield Plan to add 150 Viridian Drive;
a residential development on 3.5 acres located at 150 Viridian Drive along the south shore of Muskegon
Lake. The investment in the first phase is estimated at $15.2 million. J. Eckholm briefly discussed
ongoing environmental investigation on site. Representatives for the developer provided additional
detail on the Brownfield Plan Amendment.

Motion to approve the resolution for the Brownfield Plan Amendment for the Viridian Shores at Harbor
31 Redevelopment Project and further request a public hearing before the Muskegon City Commission
to consider adoption of the plan made by M. Kleaveland and supported by H. Sytsema. Roll call vote:
M. Bottomley, B. Hastings, F. Peterson, M. Kleaveland, M. Johnson Sr, H. Sytsema, J. Wallace Jr, F.
DePung, S. Black, D. Kalisz, none voting Nay.

Discussion Only – Harbor 31 LLC future EGLE Brownfield Loan – J. Eckholm and representatives for
the developer provided background as to the potential of pursuing a State Brownfield Loan for the
Viridian Shores redevelopment project. There are significant environmental costs associated with
redeveloping the property. These costs total approximately $2,000,000 and relate to the installation of
vapor intrusion mitigation systems beneath proposed structures, construction of engineered barriers to
protect against direct contact exposures, proper management of contaminated soil and groundwater
during construction activities, and associated consultant oversight and reporting. EGLE, the City of
Muskegon, and the developer have discussed the pursuit of an EGLE Brownfield Loan to offset some
of these expenses. The maximum loan request is $1,000,000. The BRL funds serve as a reimbursement
for eligible environmental activity costs incurred by the developer under EGLE approved work plans.
BRL funds can also be used to reimburse administrative costs by the City and third-party oversight by
a professional environmental consultant. No BRA action was needed in May.


DDA Financial Report – D. Alexander reviewed the budget figures as of 4/30/21. Two more months
remain in the fiscal year. Additional Event Revenue expected to come in as a result of staff working
with event vendors on their application fees. Fundraising revenue is expected to increase to support
downtown events. M. Johnson Sr asked about response from Art Fair vendor participants. D. Alexander
said event organizers are pleased with vendor interest as well as quality of art to make available at the
upcoming event.

Motion to accept the financial report H. Sytsema and supported by M. Johnson Sr. Voice vote all in
favor, no nays.

DDA financial request from Downtown Muskegon Social District – D. Alexander requested DDA
board to authorize staff to spend no more than $4,000 to create a Social District gathering space at
Second and Western. The owners of Burl & Sprig are moving into their new location on Second Street
(old Boar’s Belly) approached downtown, the city and the chamber on creating common area space at
Second and Western. The site is owned by the Downtown Muskegon Development Corp. and B&S has
an agreement with the DMDC to use the back 30 feet of the site for a portable stage. B&S has a plan
to refurbish the sand and put up picnic tables, lights and some overhead canopies for shade. The
estimate for materials and electric is $8,000. City DPW will be providing the sand. Staff would go to
the BID and ask for authorization for the other $4,000. Currently, the DDA has approximately $30,000
in surplus funds for the 20-21 fiscal year with one month to go. If funding is secured and materials
purchased, B&S, the chamber and downtown would organize a volunteer event to install the elements.
Public could use the space with alcoholic or non-alcoholic beverages and bring food into the space.
Space will be handicap accessible and routinely cleaned by area establishments.

Motion to authorize staff to spend up to $4,000 to assist in funding the materials for a common area in
the Downtown Muskegon Social District at Second and Western made by J. Wallace Jr. and supported
by H. Sytsema. Voice vote all in favor, no nays.

DDA discussion and direction of FY21-22 unexpended funds – Staff had discussion on what should be
done in the upcoming 2021-22 fiscal year budgeted with anticipated unexpended funds ($75,000-
$100,000). F. Peterson mentioned that federal stimulus funds may provide opportunity to assist
downtown activities; such as Frauenthal Center campaign, MMA capital campaign, BGC capital
campaign, Symphony’s capital campaign, and MCC investment. Other potential investments include
in the Arena, Farmers Market, Hartshorn Marina, public improvements, waterfront access, Shoreline
Drive conversion. Initial staff recommendations will likely be adjusted based on community input. M.
Bottomley discussed request for financial assistance from the Women’s Club for cost of $25,000 roof

Downtown events update (D. Alexander) – D. Alexander mentioned that summer event planning is
underway along with media advertising; event volunteer opportunities exist; implementation of social
district continues.

None during the meeting. Staff discovered after the meeting that two people attempted to call in but
were not connected into the meeting. Staff followed-up with these folks to address their comments.

Adjournment – There being no further business, the meeting was adjourned at 11:57 p.m.


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