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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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