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Muskegon City Manager Interview Schedule
September 16, 2022
9:00 am Jerry Gabrielatos
10:00 am Joseph W. Neeb
11:00 am Dennis Durham
12:00-1:30 pm Break
1:30 pm Gerald Smith
2:30 pm LeighAnn Mikesell
3:30 pm Jonathan Seyferth
Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: September 16, 2022 Title: Shaw Walker Environmental
Assessment Financial Assistance
Submitted By: Jake Eckholm Department: Development Svcs.
Brief Summary:
Staff is recommending an appropriation of $25,000 to match the Downtown Development
Authority’s commitment to environmental and other due diligence items faced by Parkland
Properties related to purchase of the Shaw Walker Building.
Detailed Summary & Background:
Parkland Properties is under contract to purchase the Shaw Walker/Watermark complex from its
current owner, the BALBEC Group based in New York City. This distressed assets/alternative
financing firm has been transparent that they did not wish to end up with the property and are
motivated to sell it to a local developer that has the expertise to implement a solid reuse of the site.
As such, they have listed the property for the last several months and attracted Jon
Rooks/Parkland Properties as a buyer. During the initial 30 day due diligence period, Parkland
discovered some potentially complex and costly environmental issues that required further
professional investigation as well as an extension of the due diligence period. BALBEC has
granted a 45-day extension to complete this work. Parkland has asked to split the considerable
cost for this work between their funds, a site assessment grant from our county-wide Economic
Development Organization, and city funds. With a total cost of $150,000, the request is for $50,000
from the city.
Staff has requested and received $25,000 from the Muskegon Downtown Development Authority
towards this effort, and is further requesting $25,000 from the Muskegon Economic Development
Revolving Fund. A fund balance report in this item reflects a current fund balance of 1.16 million,
and the developer has agreed that in the event a Brownfield TIF is proposed and implemented for
the redevelopment onsite that the City and DDA can take a pro-rata position to get these funds
repaid through tax capture.
Goal/Focus Area/Action Item Addressed:
Focus Area 2: Progress toward completion of existing economic development projects
Goal Action Item: 2.3 Increase variety of housing types
Amount Requested: $25,000 Amount Budgeted: N/A (Capital Fund)
Fund(s) or Account(s): N/A Fund(s) or Account(s): N/A
Recommended Motion:
Motion to approve the appropriation of $25,000 for environmental investigation and other due
diligence items for the Shaw Walker/Watermark Building as presented.
Approvals: Guest(s) Invited / Presenting:
Immediate Division Head Information Technology Yes
Other Division Heads Communication No
Legal Review
For City Clerk Use Only:
Commission Action:
September 13, 2022
Re: Shaw‐Walker Brownfield Environmental Site Assessment
Muskegon City Commission:
I am writing to encourage the Muskegon City Commission to fully support the matching funding
proposed for the Shaw‐Walker property assessment. As stated by Jonathan Rooks of Parkland Properties
at the City Commission meeting on Monday, September 12, Greater Muskegon Economic Development
(GMED) is in full support of this environmental site assessment project.
GMED is expected to receive EPA funding through a grant in October for Brownfield Environmental Site
Assessments. We understand the importance of the Shaw‐Walker project and the pivotal impact that it
will have on Muskegon as we extend the boundaries of downtown development. The Shaw‐Walker
building is currently the most prominent example of blight for our downtown area.
GMED believes that this project will be a leading example of public‐private partnership. For that reason,
GMED’s intention is to provide a 1:3 match of $50,000 distributed from the EPA Brownfield
Environmental Site Assessment grant, on the condition that GMED receives final grant approval from the
EPA, which is fully anticipated.
The Shaw‐Walker project is a top redevelopment priority, not only for the reason of transforming blight
into beauty, but also as a means of talent attraction and retention. As our community fights to meet the
challenges of today’s business climate, the most evident and frequent hurdle cited by our industries is
the lack of an available workforce. Having a skilled labor pool not only depends on providing good
paying jobs or education and training, but also it also requires a community to focus on product
development within the downtown area. As plans move forward with other adjacent developments,
public art, and public access projects, we need to transform the Shaw‐Walker building into a
redevelopment that entices a qualified workforce to live, work, play, and stay in the community.
The passion that our local developers have for transformative projects in downtown Muskegon and on
the Muskegon Lake shoreline is an outstanding asset for the community. In that regard, we are
fortunate to have a seasoned, proven developer such as Mr. Rooks, to proactively take interest in this
project and work quickly towards assessing the environmental condition of the site.
Thank you for your quick deliberation and consideration of this project. Knowing the environmental
condition and the remediation work needed on the property is the first step in transforming this
building into something that will positively impact our community and continue to elevate Muskegon as
a top competitor for talent and jobs in our region.
Respectfully,
Marla Schneider, President/CEO
This institution is an equal opportunity provider and employer.
09/14/2022 08:26 AM REVENUE AND EXPENDITURE REPORT FOR CITY OF MUSKEGON Page: 1/1
User: jessica.rabe
DB: Muskegon PERIOD ENDING 09/30/2022
THIS REPORT COMPARES CY ACTUAL REVENUES/EXPENSES WITH BUDGETED AMOUNTS AND WITH PRIOR YEAR ACTUALS
2022-23
END BALANCE ORIGINAL YTD BALANCE YTD BALANCE 2022-23
GL NUMBER DESCRIPTION 06/30/2022 BUDGET 09/30/2022 09/30/2021 AMENDED BUDGET
Fund 493 - EDC REVOLVING LOAN
Revenues
FINES & PENALTIES
493-000-665-004970 INTEREST INCOME 12,199.86 0.00 1,261.09 3,546.76 0.00
FINES & PENALTIES 12,199.86 0.00 1,261.09 3,546.76 0.00
CHARGES FOR SERVICE
493-000-667-004677 RENT 6,000.00 0.00 3,000.00 5,500.00 0.00
CHARGES FOR SERVICE 6,000.00 0.00 3,000.00 5,500.00 0.00
CONTRIBUTIONS & MISCELLANEOUS
493-000-674-004805 CONTRIBUTIONS 53,000.00 0.00 0.00 50,500.00 0.00
493-000-674-004826 FERRY REVENUE 54,915.79 0.00 0.00 24,349.06 0.00
CONTRIBUTIONS & MISCELLANEOUS 107,915.79 0.00 0.00 74,849.06 0.00
TOTAL REVENUES 126,115.65 0.00 4,261.09 83,895.82 0.00
Expenditures
CONTRACTUAL SERVICES
728 ECONOMIC DEVELOPMENT 385,227.72 0.00 6,568.92 5,588.65 0.00
901 1,170.00 0.00 0.00 0.00 0.00
CONTRACTUAL SERVICES 386,397.72 0.00 6,568.92 5,588.65 0.00
CAPITAL OUTLAYS
728 ECONOMIC DEVELOPMENT 24,502.75 0.00 0.00 24,502.75 0.00
CAPITAL OUTLAYS 24,502.75 0.00 0.00 24,502.75 0.00
TOTAL EXPENDITURES 410,900.47 0.00 6,568.92 30,091.40 0.00
Fund 493 - EDC REVOLVING LOAN:
TOTAL REVENUES 126,115.65 0.00 4,261.09 83,895.82 0.00
TOTAL EXPENDITURES 410,900.47 0.00 6,568.92 30,091.40 0.00
NET OF REVENUES & EXPENDITURES (284,784.82) 0.00 (2,307.83) 53,804.42 0.00
BEG. FUND BALANCE 1,443,101.74 1,443,101.74 1,443,101.74 1,443,101.74 1,443,101.74
NET OF REVENUES/EXPENDITURES - 2021-22 (284,784.82)
END FUND BALANCE 1,158,316.92 1,443,101.74 1,156,009.09 1,496,906.16 1,443,101.74
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