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CITY OF MUSKEGON
DOWNTOWN DEVELOPMENT AUTHORITY (“DDA”)
REGULAR MEETING
DATE OF MEETING: Tuesday, February 12, 2019
TIME OF MEETING: 10:30 A.M.
PLACE OF MEETING: Muskegon City Hall, room 203
933 Terrace St.
AGENDA
I. Roll Call
Il. Approval of Minutes from the regular meeting of January 8, 2019
Ill. New Business
A. Elections (Chair, Vice Chair, Secretary)
B. Downtown Project Update ~ Dave Alexander
C. Core Development Request for 880 1" St
D. Michigan Brownfield Redevelopment Program Grant Application
E. Brownfield TIF Reimbursement Request — Windward Pointe
IV. Old Business
A. DDA Restructuring/Merger with Downtown Muskegon Now (DMN)
B. DDA Budget Discussion
V. Other
VI. Adjourn
CITY OF MUSKEGON
DOWNTOWN DEVELOPMENT AUTHORITY (DDA)/
BROWNFIELD REDEVELOPMENT AUTHORITY (BRA)
SPECIAL MEETING
MINUTES
January 8, 2019
Chairperson M. Bottomley called the meeting to order at 10:30 AM and roll was taken.
MEMBERS PRESENT: Frank Peterson, Martha Bottomley, Don Kalisz, Mike Kleaveland, Mike
Johnson, Heidi Sytsema, Jeanette Moore
MEMBERS ABSENT: Jay Wallace Jr, Paul Edbrooke, John Riegler
STAFF PRESENT: Mike Franzak, Planning Director; LeighAnn Mikesell, Director of
Municipal Services; Beth Lewis, Finance Director; Diane Renkenberger,
Administrative Assistant
OTHERS PRESENT: Dave Alexander, Downtown Muskegon Now (DMN)
APPROVAL OF MINUTES
A motion to approve the regular meeting minutes of December 11, 2018 was made by D. Kalisz,
supported by F. Peterson and unanimously approved.
NEW BUSINESS
None
OLD BUSINESS
Downtown Project Update- D. Alexander provided board members with an update on DMN activities
and various projects in the downtown area, and answered questions. He also explained “Opportunity
Zones”, which were a new economic development tool from the state.
DDA Restructuring- Board members reviewed a letter from the Downtown Muskegon Now (DMN)
board, discussing the pending consolidation of DMN activities with the DDA, and outlining which
DMN responsibilities would need to be covered once that organization was gone.
DDA Mission/Vision Statement — D. Kalisz spoke on behalf of the subcommittee and discussed the
process of developing a couple of different mission statement options, which were provided to the
board for discussion. F. Peterson observed that landscaping and infrastructure were not included. C.
Larson suggested including the waterfront, since that was a defining feature for Muskegon. D. Pollock
stated that he would like to see tourism better represented, possibly including the word “stay” in the
statement, Several suggestions were implemented and a revised mission statement was presented: “Our
mission is to allocate our resources in support of development, promotion, and events toward creating
a thriving downtown and its waterfront, where all people can live, work, play, and stay.”
A motion to adopt the amended mission statement as written above was made by M. Kleaveland,
supported by F, Peterson and unanimously approved, with F. Peterson, M. Bottomley, D. Kalisz, M.
Kleaveland, M. Johnson, H. Sytsema, and J. Moore voting aye.
Budget — F. Peterson discussed the updated budget pro forma that was distributed to board members.
He explained each line item and answered questions. Regarding salaries, he stated that it made more
sense to have the city employ D. Alexander and have the DDA allocate money to the city for that
expense, rather than have the DDA keep track of one employee. Staff and board members discussed
the importance of attracting retail tenants to downtown, and were asked to come up with ideas.
M. Bottomley suggested that the DDA have a financial policy in place to govern spending, and asked
who was willing to serve on that subcommittee. M. Bottomley, M. Johnson, F. Peterson and Beth
Lewis agreed to be on the committee. D. Alexander suggested having a marketing plan. M. Bottomley,
D. Kalisz, D. Alexander, J. Moore, and D. Pollock agreed to form a marketing subcommittee.
OTHER
New board members — F. Peterson stated that he had made his recommendations for the 3 new DDA
board members, and the City Commission would be appointing their choices at the Commission
meeting this evening.
There being no further business, the meeting was adjourned at 12:05 PM.
Core Development Corporation
Mr. Frank Peterson
City Manager
City of Muskegon
933 Terrace Street
Muskegon, MI 49440
Re: 880 First Street / Former Ameribank Purchase Option
Dear Frank:
Please accept the attached formal Purchase Agreement for the former “Ameribank”
property, located at 880 15‘ Street in Downtown Muskegon. This purchase agreement is
essentially the same as the terms contained in the purchase option we entered into in
August of 2018 with the following conditions / requirements. Core Development
(Buyer) would receive formal approval from the appropriate governmental bodies for
the following items related to the project:
1. Establish a Brownfield TIF for what may be available for additional work to be
performed. We realize that this may not be of great value due to the majority of
demolition already having been completed.
2. Establishment of a Neighborhood Enterprise Zone (NEZ)
3. Approval for the State of Michigan / MEDC for CRP funds. Based on construction
estimates, we anticipate this amount needs to be approximately $1,200,000. We
anticipate this will be split between a grant and a note.
4. Proforma (attached) assumes an average of $1.45 psf, per month for rent for all
units, which is higher than current market rents. In order to make this project
viable, average rent will need to be $1.80 psf, per month. We would require the
City of Muskegon guarantee that rental rate difference for a maximum of 5 years
from the date of construction completion.
5. City of Muskegon to approve variance from Form Based Code to allow for
residential development on the entire project, with no commercial space being
offered.
Core Development Carporation, 111 W. Western Avenue, Muskegon, Michigan 49442. Phone (231) 777-8777
We look forward in working together to make this project a reality. If agreeable, please
sign the attached purchase agreement and we will continue our efforts in regards to the
above mentioned incentives.
Very best regards,
B. Johw Exew
B. John Essex
President
Core Development Corporation, 111 W. Western Avenue, Muskegon, Michigan 49442, Phone (231) 777-8777
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