Downtown Development Authority Minutes 04-11-2023

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                                    CITY OF MUSKEGON

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

                               REGULAR MEETING MINUTES

                                          April 11, 2023

The meeting was held in the City Commission Chambers. Chairperson M. Bottomley called the
meeting to order at 10:35 AM and roll was taken.

MEMBERS PRESENT:              M. Bottomley, B. Tarrant, K. Reid, M. Kleaveland, J. Wallace Jr., J.
                              Moore, J. Seyferth, H. Sytsema, M. Johnson Sr., B. Hastings, J.
                              Riegler

MEMBERS ABSENT:               S. Black, D. Pollock

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

OTHERS PRESENT:               Kirk Perschbacher

APPROVAL OF MINUTES
Motion by J. Seyferth second by J. Wallace, to approve the regular meeting minutes for March 14,
2023. Voice vote, all approved.

Agenda Item IV. A.:           BROWNFIELD DEVELOPMENT-MEADOWS AT
HARBOR 31
Outline of the request: Harbor 31 LLC has submitted a Brownfield Plan Amendment for the
Meadows at Harbor 31 Redevelopment Project - a residential development on 2.5 acres located
at 105 Viridian Drive along the south shore of Muskegon Lake.

Background: The Harbor 31 project is a 31-acre mixed use development that will include 155
market-rate apartments and townhouses, as well as a hotel, retail and office space, marina, boat
sales/rentals, and senior living.

Motion: I move to approve/disapprove the resolution for the Brownfield Plan Amendment for
the Meadows at Harbor 31, 105 Viridian Drive Project and further request staff to set a public
hearing before the Muskegon City Commission to consider adoption of the plan by M.
Kleaveland and supported by H. Sytsema
Roll Call Vote:
 M. Bottomley: Yes               B. Tarrant: Yes                  K. Reid: No
 M. Kleaveland: Yes              J. Wallace, Jr: Yes              H. Sytsema: Yes
 J. Moore: Yes                   J. Seyferth: Yes                 M. Johnson: Yes
 B. Hastings: Yes                J. Riegler: Yes
Motion passes.


Agenda Item IV. B Brownfield Development EGLE Brownfield Grant and
Loan Project Proposal – Discussion only
Background: There are considerable costs related to the environmental activities for the
Adelaide Pointe project. The developer is seeking $850,000 for the EGLE Brownfield Grant.
The applicant for the EGLE Brownfield Grant is the City of Muskegon Brownfield
Redevelopment Authority. The applicant project contact will be Contessa Alexander. The
applicant signing authority will be the Jonathan Seyferth. The project consultant is Kirk
Perschbacher.

The project applicant will be responsible for the day to day operations, working closely with the
entire team. This person will work with the project consultant to send in quarterly invoices to
EGLE for reimbursement.

The applicant signing authority will legally sign off on all documents on behalf of the BRA.

EGLE’s process for selecting prospective projects for the Brownfield Grant:

   •   After several meetings with the consultant and developer, EGLE will invite the developer
       to send over a project proposal.

   •   After the EGLE Brownfield team does the proper vetting and questions are answered, the
       developer/ applicant may be invited to apply for the EGLE Brownfield Application.

   •   A letter of support will be required with the application.

A motion from the board to sign the letter approving the stewardship was made by K. Reid and
supported by J. Moore
Roll Call Vote:
 M. Bottomley: Yes                B. Tarrant: Yes                   K. Reid: Yes
 M. Kleaveland: Yes               J. Wallace, Jr: Yes               H. Sytsema: Yes
 J. Moore: Yes                    J. Seyferth: Yes                  M. Johnson: Yes
 B. Hastings: Yes                 J. Riegler: Yes




Agenda item V. A DDA Financial Report
Outline of request: Staff is asking the DDA board to review and accept the financial statements
for the DDA and events for Mar. 31, 2023.
Staff comments: The DDA FY total as of March 31, 2023 is at $401,513.44. Once the BID
Income is added, the FY total will be about $474 higher than expected. There haven’t been too
many changes from the previous month. Line item G25 on the DDA Financial page has switched
over to reflect Contessa’s salaries and benefits. This caused a decrease of about $26,000 for this
item. The total recurring costs remain the same with the exception to the marketing/ promotions.
Line item G33 reflects an increase to this item of about $186. Projects and events stayed the
same from the previous month as well as the total debt payments. The total expenses are at
$168,187.96. The fund balance at the end of the year will be $382,677.98. The tax increment last
month was not included, which reflects the huge increase seen for the fund balance.
Events revenue increased about $21,700 and about $3800 for sponsorships, bringing in a total of
$77,739.84 in total revenue. All other items stayed relatively the same from the previous month.
The events fund balance is about $105,200. A slight increase from what we seen last month.
The total financial revenues that include the DDA, Events, and BID increased to $484,400. The
total recurring costs increased to $47,947.80. Projects and events increased to about $136,600.
The total expenses increased to about $255,000 from last month. The fund balance at the end of
the year also increased to $613,900.95.
Motion: I move to accept the March 31, 2023 DDA and events financial statements made by B.
Tarrant and supported by B. Hastings
All in favor, motion passes.

Agenda Item B: Project Updates for Discussion only
   •   Boys and Girls Club renovations: construction continues on the $7.5 million+ renovation
   •   Adelaide Pointe/Hartshorn Village: Land and utility work underway on $250 million
       residential-recreation-commercial development, developer seeking $850k for a EGLE
       brownfield grant
   •   Shaw Walker building (formerly Watermark Center): $220 million, 500-unit residential
       project moves ahead, Parkland seeks $1 million grant/loan from EGLE
   •   Muskegon Museum of Art expansion: $13+ million project expected to begin
       construction mid-May with an 18-month construction schedule.
   •   Harbor 31: Construction continues on the $130 million development with an aggressive
       2023 plans for Harbor Terrace Senior Living, Viridian Shores, Meadows at Harbor 31
       along with marina, apartments, offices, waterfront restaurant and a hotel.
   •   New downtown restaurants: Carlisle’s near completion on façade grant work, The Early
       Owl construction continues.
   •   The Leonard: Still seeking commercial uses for the first floor … Dylan and Marley
       buildings to come
   •   Lakeview Lofts II and III: Received $3 million from the city’s RAP grant
       880 First: Received $3 million for the city’s RAP grant with anticipation of a brownfield
       plan amendment.
   •   IndiGrow: the DDA’s only cannabis business has plans to launch tours of its operations
       for only the second such offering in Michigan.
   •   611 Clay: boutique hotel with VBRO-style rooms expected to be open for summer
       season.


PUBLIC PARTICIPATION
None.

OTHER BUSINESS
None.

ADJOURNMENT
Motion to Adjourn by J. Seyferth and supported by M. Kleaveland at 11:21 AM. All in favor.

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