Downtown Development Authority Minutes 06-13-2023

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                                    CITY OF MUSKEGON

                 DOWNTOWN DEVELOPMENT AUTHORITY (DDA) /
                BROWNFIELD REDEVELOPMENT AUTHORITY (BRA)

                               REGULAR MEETING MINUTES

                                         June 13, 2023

The meeting was held in the City Commission Chambers. Chairperson M. Bottomley called the
meeting to order at 10:32 AM and roll was taken.

I.     MEMBERS PRESENT:             M. Bottomley, , K. Reid, B. Hastings, J. Riegler, D. Pollock,
       M. Johnson, J. Seyferth
          MEMBERS ABSENT: M. Kleaveland, J. Wallace Jr., J. Moore, , H. Sytsema, Sr.,
                             S. Black, B. Tarrant

           STAFF PRESENT:      D. Alexander, Downtown Manager, C. Alexander,
                        Development Analyst, Jake Eckholm, Director of Development
                        Services, S. Wilson, Treasurer

           OTHERS PRESENT:   Jon Rooks, Ryan from Parkland Muskegon, Eric Helzer,
                       Advanced Redevelopment Solutions representing 880 1st st LLC

II.    APPROVAL OF MINUTES
Motion by K. Reid second by B. Hastings, to approve the regular meeting minutes for May 9, 2023
and May 23, 2023. Voice vote, all approved.

III.   Public comments on agenda items - None

IV.    BRA Business (Contessa Alexander)

            A. Brownfield Plan Amendment- 880 First St. (Contessa Alexander)
Requesting party: 880 First Street, LLC
Outline of the request: 880 First Street, LLC has submitted a Brownfield Plan Amendment for
the 880 1st Street Rehabilitation & New Construction Project- a mixed- use redevelopment
project located at 880 1st St., and 216 West Clay Ave.
Background: 880 1st Street Rehabilitation & New Construction Project is a mixed- use
redevelopment project with a total capital investment of $28.8 million. The projects eligible
property is approximately 0.49 acres that consists of one parcel and a small portion of another
adjacent (880 1st St. and 216 W. Clay Avenue. The property is considered an eligible facility as
defined by Act 381.
Motion: I move to approve the resolution for the Brownfield Plan
Amendment for the 880 1st Street Rehabilitation & New Construction Project and further
request staff to set a public hearing before the Muskegon City Commission to consider
adoption of this plan by J. Seyferth and supported by D. Pollock. All in favor.
V.   DDA agenda items (Contessa Alexander)

     A. DDA financial report
     Outline of request: Staff is asking the DDA board to review and accept the financial
     statements for May 31, 2023.
     Staff comments: There has been a slight change in financial condition of the DDA since
     last month. The DDA FY total as of May 31, 2023 was $401,844.79. The total expenses
     were $319,477.29. This includes a 14.6% increase in Salaries/Benefits. There was also an
     increase in the Total Recurring Cost. Projects and Events remained the same at $59,750.
     The debt payment for Trinity was reflected in this month’s total. The total Net
     Rev/Expenses was $82,367.50. Fund Balance at the end of the year is expected to be
     $231,720.
     Staff recommendation: To accept the May 31, 2023 DDA and events financial
     statements.
     Motion: I move to accept the May 31, 2023 DDA and events financial statements by J.
     Riegler and supported by J. Seyferth. All in favor. Motion passes


     B. EGLE Loan Application- Parkland Properties of Michigan (Contessa Alexander)
        Discussion only
     Outline of request: The DDA has been invited to submit an EGLE Brownfield Loan
     Application with Parkland Properties of Michigan as the Developer for 965 W. Western
     Ave., 920 & 930 Washington Ave (Shaw Walker Project).

     Last month you heard from Parkland Properties of Michigan as they presenting to you the
     Shaw Walker Project. ERG (the consultant) submitted a proposal on behalf of the DDA
     for a $1M loan/ $1M grant. The pre-vetting process for the EGLE Loan/Grant has been
     completed and the DDA is invited to apply for this project with Parkland Properties of
     Michigan as the developer.
     Background: There are considerable costs related to the environmental activities for the
     former Shaw Walker Furniture Property. The developer is seeking $1,000,000 from the
     EGLE Brownfield Redevelopment Program ($1M loan). These funds will offset some of
     the environmental costs for the activities that are described below.
     • Vapor mitigation systems for the existing building
     • Vapor mitigation system performance monitoring and reporting
     • Asbestos and hazardous materials abatement
     • Consultant oversight and reporting

     C. Proposed 2023-24 fiscal year budget
     Outline of request: Staff is asking the DDA board to review and accept the proposed
     budget for FY 23’-24’ that will begin July 1, 2023.
     Background: During the last DDA meeting in May, direction was given to staff on a
     proposed budget for fiscal year 23’-24’. The draft in your agenda packet reflects that
     discussion. If you look at the last column you will see your proposed budget with a total
     revenue of $481,039. This is including the estimated $80,000 you will receive from the
     BID as they transition out. Staff has included the Total Salaries/benefits to be $95,000,
     which is giving some room for any changes that may occur. Streetscaped bumped up to
     $25,000. Last year you’ve budgeted for $15,000 and spent $25,207.87 as of May 2023.
Last year you budgeted $25,000 for Marketing/promotions and as of this year you’ve spent
$10,996.48. Staff suggest decreasing this line item to $12,000 and keeping Downtown Parks at
$9,000. There will be more opportunities to spend this money in the next FY.

The Façade Grant funds for FY 22’-23’ have been allocated for the approved businesses. Only
one business has requested their reimbursement for services. This leaves this item at
$57,585.22. Staff created another line item for FY 23’-24’ and added $100,000. If approved, we
will revisit the application at the next meeting and decide if we would like to make any
additions or changes.

For the landscaping item we budgeted $20,173 which will cover half the cost for landscaping.

Last year you agreed to do a one-time payment to Watermark Assistance at $25,000 and Soci
Bowl at $34,750. Last month you approved $59,484 to be used to cover costs for Famer’s
Market Upgrades. These upgrades include cameras, wifi, ice maker, window, bathroom, and a
new FM website.

The Total Debt will remain budgeted at $130,000 for the Trinity.

This proposed budget leaves you with $23,280.78 in Net Rev./Expenses. The estimated Fund
Balance at the end of the year in 2023 is $208,439.22 which will be dedicated to taking on
responsibilities in future years for landscaping and snow removal.

Motion: I move to adopt the recommended DDA budget for fiscal year 2023-24 by K. Reid and
supported by B. Hastings. All in favor

       D. Graffiti Response- (Dan VanderHeide)- Discussion Only – There has been a recent
          increase throughout the city that caused DPW and Police to address. The ordinance
          states that the property owners can remove the graffiti. The police department will
          reach out to the homeowners. If they do not remove, DPW will go out and either
          cover or hire an outside company to remove. It is the intent to pass the cost on to the
          property owner but it is not clear as of yet. They are working on prevention i.e.,
          turning graffiti into murals
       E. Downtown Dance Circle- (Dave Alexander)- Discussion Only – Clerk’s office gave
          synopsis. Financials should be in within the next few months. Sponsorship, vendors,
          ticket sales exceeded previous years.

VI.    Adjourned at 11:55AM

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