Downtown Development Authority Minutes 06-09-2026

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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,


                                 Page 1 of 8
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.




                                    Page 2 of 8
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).



                                   Page 3 of 8
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,



                                   Page 4 of 8
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.



                                   Page 5 of 8
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)



                                  Page 6 of 8
    • 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.



                                   Page 7 of 8
             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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