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CITY OF MUSKEGON
LOCAL DEVELOPMENT FINANCE AUTHORITY
REGULAR MEETING
MINUTES
January 19, 2012
Chairperson F. Redmond called the meeting to order at 5:04 p.m. and roll was taken.
MEMBERS PRESENT: Faye Redmond, Trynette Lottie-Harps, Kim Bidwell, Melissa Wikman,
Jeff Burr, Rosie Buchanan, Arn Boezaart
MEMBERS ABSENT: Bonnie Hammersley, Andrew Cirner, Gary Privasky
STAFF PRESENT: Cathy Brubaker-Clarke, Tim Paul, Bryon Mazade, Diane Renkenberger
OTHERS PRESENT: Patrick McGow, Miller Canfield
L. Potter, Deputy City Clerk, swore in the board members.
Edison Landing - B. Mazade updated members on the status of Edison Landing ownership, while
waiting for a quorum. He stated that the former owner, Dan Henrickson, has taken on new partners;
the new owner is Muskegon Lakefront LLC.
ELECTION OF OFFICERS
A motion to retain F. Redmond as Chairperson, J. Burr as Vice-Chairperson, and K. Bidwell as
secretary was made by J. Burr, supported by A. Boezaart and unanimously approved.
APPROVAL OF MINUTES
A motion to approve the Regular Meeting Minutes of June 28, 2010 was made by J. Burr, supported
by T. Lottie-Harps and unanimously approved.
NEW BUSINESS
Advance Refunding of 2002 LDFA Smartzone Bonds – In 2002, the LDFA issued bonds in the
amount of $4,725,000 to finance construction of the MAREC building. T. Paul discussed the
structure and repayment plan for those bonds. He stated that the City’s annual contribution to bond
repayment would soon increase. This year (2012) was the first opportunity to exercise the ten year
call provision, and current economic conditions were favorable for refunding. A refunding analysis
and proposed resolution were provided to board members, and were discussed by T. Paul and P.
McGow from Miller Canfield, the City’s legal firm in this matter.
P. McGow reviewed with board members the debt service figures shown in the refunding analysis,
and answered questions. He explained the process and terms of refunding and reissuing the bonds.
He stated that the term of the bonds would not be extended, nor would the principal increase. The
City would just be paying less interest. F. Redmond asked about the liability of the LDFA and its
individual members. P. McGow stated that this only related to the SmartZone and there was no
LDFA minutes 1/19/12 1
individual liability. If the LDFA did not have the funds to cover required payments, the City would
cover them, as they have been. T. Paul stated that school tax revenue would be lost in 2017-18 and
the Community Foundation payments would cease as well, so it was important to reduce the City’s
liability, and this provided a good opportunity.
A motion to support the bond restructuring as proposed and to approve the resolution authorizing the
refunding of the bonds was made by A. Boezaart, supported by M. Wikman and unanimously
approved.
Smartzone update – A. Boezaart updated board members on the SmartZone and MAREC center. He
stated that they were actively pursuing business development at the Center and had some business
incubators located there. He stated that the challenge was finding incentives to attract new business.
MAREC personnel were willing to discuss the benefits of the SmartZone and work with those who
may be interested in locating there.
ADJOURN
There being no further business, the meeting was adjourned at 5:40 p.m.
/DR
LDFA minutes 1/19/12 2
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