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CITY OF MUSKEGON DOWNTOWN DEVELOPMENT AUTHORITY (“DDA”) REGULAR MEETING DATE OF MEETING: Tuesday, September 8, 2020 TIME OF MEETING: 10:30 A.M. PLACE OF MEETING: ZOOM (Board members and presenters) Facebook Live/Phone number (Public) — Facebook page is “City of Muskegon Government”. Call-in phone number for public is (231) 286-7650 AGENDA I. Roll Call IL. Approval of the regular meeting minutes of August 11, 2020 WI. Brownfield Redevelopment Authority business A. Harbor West LLC (Hartshorn Village) Development and Reimbursement Agreement — approval of receipts for reimbursement IV. Downtown Development Authority business A. DDA financial report B. Downtown project update C. Social Districts discussion V. Other VI. = Adjourn AMERICAN DISABILITY ACT POLICY FOR ACCESS TO OPEN MEETING OF THE CITY COMMISSION AND ANY OF ITS COMMITTEES OR SUBCOMMITTEES The City of Muskegon will provide necessary reasonable auxiliary aids and services, such as signers for the hearing impaired and audio tapes of printed materials being considered at the meeting, to individuals with disabilities who want to attend the meeting, 24- hour notice to the City of Muskegon. Individuals with disabilities requiring auxiliary aids or services should contact the City of Muskegon by writing or calling the following: Ann Marie Cummings, City Clerk at 933 Terrace Street, Muskegon, MI 49440 or by calling (231) 724-6705 or TTY/TDD: Dial 7-1-1 and request that representative dial 231-724-6705 CITY OF MUSKEGON DOWNTOWN DEVELOPMENT AUTHORITY (DDA) / BROWNFIELD REDEVELOPMENT AUTHORITY (BRA) REGULAR MEETING MINUTES August 11, 2020 The meeting was held electronically via Zoom. Chairperson M. Bottomley called the meeting to order at 10:30 AM and roll was taken. MEMBERS PRESENT: M. Bottomley, H. Sytsema, B. Hastings, J. Moore, M. Johnson, F. Peterson, D. Kalisz, F. DePung, J. Riegler, J. Wallace Jr MEMBERS ABSENT: M. Kleaveland, excused; D. Pollock STAFF PRESENT: P. Wills, Director of Strategic Initiatives; D. Alexander, Downtown Manager; L. Mikesell, Director of Development Services; D. Renkenberger, Administrative Assistant; R. Cummins, Administrative Assistant/meeting facilitator OTHERS PRESENT: J. Belka, attorney for Harbor West LLC; S. Smith, Harbor West LLC; D. DeHaan, Harbor West LLC APPROVAL OF MINUTES A motion to approve the regular meeting minutes of July 14, 2019 was made by M. Johnson, supported by J. Moore and unanimously approved. BROWNFIELD REDEVELOPMENT AUTHORITY BUSINESS Brownfield Development & Reimbursement agreement - Harbor West LLC. P. Wills summarized the request and provided background information on the project. In 2018, the former employee parking lot of the Shaw-Walker Co. was sold by the city of Muskegon to Harbor West LLC for a residential site condominium project. A Brownfield plan amendment was approved to facilitate the construction of an initial 10 new market-rate, single-family homes. Plans for the property and that of Fricano Place to the west are to expand the development to approximately 50 home sites as the market demands. The site sits at 1000, 1010 and 1060 West Western Avenue along the Lakeshore Trail bike path, adjacent to the city’s Hartshorn Marina. The waterfront residential project is hoped to spur further redevelopment of the Western waterfront, and a key element of this initial plan are Hartshorn Marina upgrades and improvements. Harbor West has submitted a Development & Reimbursement Agreement related to the Brownfield plan amendment, for BRA and City Commission approval. P. Wills explained the terms of the agreement including financial details. A majority of the infrastructure costs are to upgrade the city’s adjacent Hartshorn Marina and for a joint-use pool and clubhouse for the condo owners and marina slip holders. Several city departments and the city attorney have reviewed the Agreement, and staff recommends approval. J. Belka was the attorney representing Harbor West. He stated that the goal for the reimbursement request was to roll the funds back into the project. They were moving forward with a spec home and partial construction of other units. D. DeHaan further explained that the foundations would require pilings, which raised the cost. He stated that they had an agreement to use an area in the adjacent Fricano Place to use as their sales office. B. Hastings asked if there were flood issues on the site, like there were on the adjacent property. D. DeHaan stated that their site was elevated and there were no high-water issues. M. Bottomley asked if the pool would be open to the public, as she had heard comments about that issue. F. Peterson stated that the pool was a marina amenity and was open to anyone who had a slip. There was an agreement with the condo development to allow their use of the pool, which would help pay for its maintenance. M. Johnson asked if the developer would be making the marina improvements and ownership. F. Peterson stated that the city would be making the improvements, but would work with the developers and use the same company to manage the development and marina. The City would retain ownership of the charter park area. M. Bottomley asked if the marina was encumbered due to the use of grant funds for its development. F. Peterson explained the grant details. A motion to approve the Development and Reimbursement Agreement for the approved Brownfield Plan for Harbor West, LLC (Hartshorn Village) project, was made by M. Johnson, supported by J. Moore and unanimously approved, with M. Bottomley, H. Sytsema, B. Hastings, J. Moore, M. Johnson, F. Peterson, D. Kalisz, F. DePung, J. Riegler voting aye. DOWNTOWN DEVELOPMENT AUTHORITY BUSINESS DDA Financial Report. D. Alexander presented the current budget report. It was only 1 month into the new fiscal year so there wasn’t much information there. The estimated discretionary income for the year was $40,000. J. Wailace arrived at 10:50 a.m. D. Alexander discussed the upcoming end to the current Business Improvement District (BID) assessment. The City would be seeking approval for another 3-year BID assessment, but in a reduced footprint. He also stated that the DDA would be taking over events and marketing for downtown. He would like to see the DDA get involved in helpling to attract more events, especially considering that so many were cancelled this year due to covid-19. M. Bottomley asked if maintenance of the flower beds along Western Avenue was considered. D. Alexander stated that he anticipated the new BID assessment would cover that, as well as snow removal. M. Bottomley asked about the $9,000 listed for downtown parks. D. Alexander stated that it included the splash pad by the Post Office and the dog park. There was also a plan in the works for a small pocket park behind Kitchen 242, which could be included. At this time, he was looking for approval to spend the $40,000 of the DDA’s discretionary income for 2021, as shown on his memo to the board dated 8/03/2020. A motion to accept the spending plan as shown in the memo, including $10,000 for events promotion (half year with no BID), $6,000 for office expenses, $9,000 for downtown parks maintenance, and $15,000 for post-Covid marketing, was made by H. Sytsema, supported by M. Johnson and unanimously approved, with M. Bottomley, H. Sytsema, B. Hastings, J. Moore, M. Johnson, F. Peterson, D. Kalisz, F. DePung, J. Riegler, and J. Wallace Jr voting aye. Downtown Events. D. Alexander stated that the City Commission was exploring the establishment of downtown “social districts”, which were allowed under a new state law. There were 22 establishments in the area of Western Avenue from Pine St to 8" St. that could be included, but participants would need to apply to the City Commission to do so. Grand Rapids had already approved social districts, as had some other Michigan cities. A map of the proposed district was provided, and D. Alexander explained details of the new ordinance, which would soon be presented to the City Commission for approval. OTHER None There being no further business, the meeting was adjourned at 11:45 AM. Agenda Item A - BRA Muskegon Brownfield Redevelopment Authority Agenda Item for 9-8-20 Harbor West, LLC 1000-1010-1060 West Western Ave Hartshorn Village Brownfield Tax Increment Financing Reimbursement Request #1 Requesting party: Harbor West, LLC Outline of the request: Harbor West, LLC has submitted the first Reimbursement Request for Harbor West, LLC for eligible costs incurred as part of their Brownfield TIF for Hartshorn Village, a residential site condominium development. Staff comments: 1. The BRA is responsible for formally approving all reimbursement requests for Brownfield TIF’s. 2. Areview of the invoices for the eligible activities has been completed and found to be consistent with the approved Brownfield Plan. 3. Activities in this first request include tree removal, removal of existing pavement, dewatering, mobilization, silt fence, stockpiling material, utility relocation, grading, topsoil, and asphalt for the bike path, as well as other activities outlined in the Brownfield Plan (pp. 12-13). Staff recommendation: Attached is a memo from Cathy Brubaker-Clarke outlining additional specifics of the review. City staff concurs and recommends payment of $624,525.79 for the cost of eligible activities. Suggested motion: | move to approve/disapprove the first Reimbursement Request received for Harbor West, LLC for eligible costs incurred as part of their Brownfield TIF. Memorandum To: Brownfield Redevelopment Authority (BRA) Members From: Cathy Brubaker-Clarke, CBC Community Development Strategies, LLC Date: 08/24/2020 Re: Harbor West, LLC - Brownfield Tax Increment Financing Reimbursement Request (#1) The first Reimbursement Request has been received for Harbor West, LLC, for eligible costs incurred as part of their Brownfield TIF. The BRA is responsible for formally approving all reimbursement requests for Brownfield TIF’s. Representing the City of Muskegon for review of the Reimbursement Request for Harbor West, LLC, | have completed my review, and recommend the following: In accordance with the Development & Reimbursement Agreement (“Agreement”) that was entered into by the BRA (August 20, 2020), 30 days were provided to review the request and respond to the owner. The request for reimbursement outlines the eligible activities that have been invoiced and paid, which were approved in the Brownfield Plan. Reimbursement requests relate to EGLE Environmental Activities (BEA & Due Care) and MSF Non-Environmental Activities (Demolition, Site Preparation, Infrastructure Improvements- Non City, and Brownfield Plan/Work Plan Preparation/Development). | reviewed all the invoices submitted for the Reimbursement Request and found them to accurately reflect the eligible activities outlined in the Brownfield Plan. The total “Developer Eligible Activities” estimated in the Brownfield Plan are $1,570,425. The amounts requested in the first Reimbursement request (with original Plan estimates) are: $15,260.40 for EGLE-BEA Activities ($15,500 estimated), $1,500 for EGLE-Due Care (estimated $234,500 ); and for MSF Activities, $34,800 (estimated $19,500) for Demolition, $156,463.48 (estimated $626,000 ) for Site Preparation, $386,185.41 (estimated $444,000) for Infrastructure Improvements (Non-City), and $30,308.50 (estimated $30,000) for Brownfield Plan/Work Plan. Although some of the activity reimbursement requests are over the original estimated amount, there remains an adequate amount in the August 26, 2020 overall budget to cover these (including Contingency funds, if needed in the future). Activities in this first request, as consistent with the Brownfield Plan, include tree removal, removal of existing pavement, dewatering, mobilization, silt fence, stockpiling material, utility relocation, grading, topsoil, and asphalt for the bike path, as well as other activities outlined in the Brownfield Plan (pp. 12-13). EGLE activities included Phase | and Phase II Site Assessments, Due Care Plan, Environmental Sampling, BEA Report and Environmental Response Activity Plan. Based on the above, | recommend payment of $624,525.79, as summarized in “Request for Approval of Eligible Activities”. Keep in mind that normally, the actual payments will be made as tax capture becomes available. In this case, the Agreement includes a $600,000 loan from the City of Muskegon, which will be paid back to the City from the tax capture before tax capture is paid to the Developer. If you have any questions, please let me know (cbrubakerclarke@gmail.com or 231-855-0335). DEVELOPMENT AND REIMBURSEMENT AGREEMENT This DEVELOPMENT AND REIMBURSEMENT AGREEMENT (the “Agreement”’) is made on August 11, 2020, by and among the CITY OF MUSKEGON BROWNFIELD REDEVELOPMENT AUTHORITY, a Michigan public body corporate whose address is 933 Terrace Street, Muskegon, Michigan 49443 (the “Authority”), the CITY OF MUSKEGON, a public body corporate nese address |is 933 Terrace Street, Muskegon, Michigan 49443 (the “City”), 30R WEST, LLC, a Michigan limited liability company whose addressis 108 South Tee Suite 6, Mt. Pleasant, Michigan 48858 (the “Developer’). RECITALS A. Pursuant to P.A. 381 of 1996, as amended (“Act 381”), the Authority approved and recommended a Brownfield Plan which was duly approved by the City (the “Plan’). The Plan was amended on June 9, 2020 (the “Amendment,” and, together with the Plan, the “Brownfield Plan” — See Exhibit A) to identify a new residential site condominium and marina redevelopment project proposed by Developer and the City. B. The Brownfield Plan includes specific eligible activities associated with the Developer’s plan to develop approximately 3.01 acres of land located at 1000, 1010, and 1060 West Western Avenue in Muskegon, Michigan (collectively, the “Developer Property’). G. The Brownfield Plan also includes specific eligible activities associated with the City’s plan to make improvements to the adjacent Hartshorn Marina located at 920 West Western Avenue in Muskegon, Michigan (the “Marina Property”). D. The Developer owns the Developer Property and the City owns the Marina Property, which are included in the Brownfield Plan as an “eligible property” because it was determined to be a “facility”, as defined by Part 201 of the Natural Resources and Environmental Protection Act (“Part 201”), or adjacent and contiguous to an “eligible property.” E. The Developer intends to conduct eligible activities on the Developer Property in order to redevelop the site into an initial 10 site condominiums and adjacent marina improvements (the “Project’), including department specific activities, demolition, site preparation and infrastructure improvement activities, a 15% contingency and brownfield plan/work plan preparation and development, as described in the Brownfield Plan, with an estimated cost of $1,570,425 (the “Developer Eligible Activities”). As part of the Project, the City also intends to conduct certain eligible infrastructure improvement activities on the Marina Property, as described in the Brownfield Plan, with an estimated cost of $4,027,300 (the “City Eligible Activities”). All of the Developer Eligible Activities and the City Eligible Activities (together, the “Eligible Activities”) are eligible for reimbursement under Act 381. The total cost of the Eligible Activities, including contingencies, are $5,597,725 (the “Total Eligible Brownfield TIF Costs’). F. Act 381 permits the Authority to capture and use local and certain school property tax revenues generated from the incremental increase in property value of a redeveloped brownfield site constituting an “eligible property” under Act 381 (the “Brownfield TIF Revenue’) to pay or to reimburse the payment of Eligible Activities conducted on the “eligible property.” The Brownfield TIF Revenue will be used to reimburse the Developer for the Developer Eligible Activities and the City for the City Eligible Activities incurred and approved for the Project. G. In accordance with Act 381, the parties desire to establish the procedure for using the available Brownfield TIF Revenue generated from the Property to reimburse the Developer and the City for completion of Eligible Activities on the Property in an amount not to exceed the Total Eligible Brownfield TIF Costs. NOW, THERFORE, the parties agree as follows: 1. Reimbursement Source. (a) During the Term (as defined below) of this Agreement, and except as set forth in paragraph 2 below, the Authority shall reimburse the Developer and City for the costs of their Eligible Activities conducted on the Developer Property and Marina Property from the Brownfield TIF Revenue collected from the real and taxable personal property taxes on the Developer Property and Marina Property. The amount reimbursed to the Developer and City, respectively, for their Eligible Activities shall not exceed the Total Eligible Brownfield TIF Costs, and reimbursements shall be made on approved costs submitted and approved in connection with the Developer Eligible Activities and the City Eligible Activities, as follows: (i) the Authority shall first pay 100% of available Brownfield TIF Revenue to the City to reimburse the cost of Developer Eligible Activities up to $600,000 for costs submitted to the City for reimbursement by Developer per the terms of the First Amended and Restated Real Estate Sale and Development Agreement dated August 15, 2018; and (ii) the Authority shall, following reimbursement to the City of the first $600,000 described in 1(a)(i) above, pay 100% of available Brownfield TIF Revenue to Developer to reimburse the cost of the remaining Developer Eligible Activities submitted and approved for reimbursement by the Authority until Developer is fully reimbursed; and (iii) the Authority may then use Brownfield TIF Revenue to reimburse the City for the City Eligible Activities. (b) The Authority shall capture Brownfield TIF Revenue from the Property and reimburse the Developer and City for their Eligible Activities until the earlier of the City and Developer each being fully reimbursed or December 31, 2050. Unless otherwise prepaid by the Authority, payments to the City and Developer shall be made on a semi- annual basis as incremental local taxes are captured and available. 2. Developer Reimbursement Process. (a) | The Developer shall submit to the Authority, not more frequently than on a quarterly basis, a “Request for Cost Reimbursement” for Developer Eligible Activities paid for by the Developer during the prior period. All costs for the Developer Eligible Activities must be consistent with the approved Brownfield Plan. The Developer must include documentation sufficient for the Authority to determine whether the costs incurred were for Developer Eligible Activities, including detailed invoices and proof of payment. Copies of all invoices for Developer Eligible Activities must note what Developer Eligible Activities they support. (b) Unless the Authority disputes whether such costs are for Developer Eligible Activities within thirty (30) days after receiving a Request for Cost Reimbursement from the Developer, the Authority shall pay the Developer the amounts for which submissions have been made pursuant to paragraph 2(a) of this Agreement in accordance with the priority set forth in paragraph 1, from which the submission may be wholly or partially paid from available Brownfield TIF Revenue from the Developer Property and Marina Property. (i) The Developer shall cooperate with the Authority's review of its Request for Cost Reimbursement by providing supplemental information and documentation which may be reasonably requested by the Authority. (ii) If the Authority determines that requested costs are ineligible for reimbursement, the Authority shall notify the Developer in writing of its reasons for such ineligibility within the Authority’s thirty (30) day period of review. The Developer shall then have thirty (30) days to provide supplemental information or documents to the Authority demonstrating that the costs are for Developer Eligible Activities and are eligible for reimbursement. (c) lf a partial payment is made to the Developer by the Authority because of insufficient Brownfield TIF Revenue captured in the semi-annual period for which reimbursement is sought, the Authority shall make additional payments toward the remaining amount within thirty (30) days of its receipt of additional Brownfield TIF Revenue from the Developer Property and Marina Property until all of the amounts for which submissions have been made have been fully paid to the Developer, or by the end of the Term (as defined below), whichever occurs first. The Authority is not required to reimburse the Developer from any source other than Brownfield TIF Revenue. (d) | The Authority shall send all payments to the Developer by registered or certified mail, addressed to the Developer at the address shown above, or by electronic funds transfer directly to the Developer's bank account. The Developer may change its address by providing written notice sent by registered or certified mail to the Authority. 3. City Reimbursement Process. (a) The City shall submit to the Authority, not more frequently than on a quarterly basis, a “Request for Cost Reimbursement” for City Eligible Activities paid for by the City during the prior period. All costs for the City Eligible Activities must be consistent with the approved Brownfield Plan. The City must include documentation sufficient for the Authority to determine whether the costs incurred were for City Eligible Activities, including detailed invoices and proof of payment. Copies of all invoices for City Eligible Activities must note what City Eligible Activities they support. (b) Unless the Authority disputes whether such costs are for City Eligible Activities within thirty (30) days after receiving a Request for Cost Reimbursement from the City, the Authority shall pay the City the amounts for which submissions have been made pursuant to paragraph 3(a) of this Agreement in accordance with the priority set forth in paragraph 1, from which the submission may be wholly or partially paid from available Brownfield TIF Revenue from the Developer Property and Marina Property. (i) The City shall cooperate with the Authority’s review of its Request for Cost Reimbursement by providing supplemental information and documentation which may be reasonably requested by the Authority. (ii) lf the Authority determines that requested costs are ineligible for reimbursement, the Authority shall notify the City in writing of its reasons for such ineligibility within the Authority’s thirty (30) day period of review. The City shall then have thirty (30) days to provide supplemental information or documents to the Authority demonstrating that the costs are for City Eligible Activities and are eligible for reimbursement. (c) lf a partial payment is made to the City by the Authority because of insufficient Brownfield TIF Revenue captured in the semi-annual period for which reimbursement is sought, the Authority shall make additional payments toward the remaining amount within thirty (30) days of its receipt of additional Brownfield TIF Revenue from the Developer Property and Marina Property until all of the amounts for which submissions have been made have been fully paid to the City, or by the end of the Term (as defined below), whichever occurs first. The Authority is not required to reimburse the City from any source other than Brownfield TIF Revenue. (d) | The Authority shall send all payments to the City by registered or certified mail, addressed to the City at the address shown above, or by electronic funds transfer directly to the City’s bank account. The City may change its address by providing written notice sent by registered or certified mail to the Authority. 4. Term of Agreement. The Authority’s obligation to reimburse the City and Developer for the Total Eligible Brownfield TIF Costs incurred by each party under this Agreement shall terminate the earlier of the date when all reimbursements to the City and Developer required under this Agreement have been made or December 31, 2050 (the “Term’). If the Brownfield TIF Revenue ends before all of the Total Eligible Brownfield TIF Costs have been fully reimbursed to the City and Developer, the last reimbursement payment by the Authority shall be paid from the summer and winter tax increment revenue collected during the final year of this Agreement. 5, Adjustments. If, due to an appeal of any tax assessment or reassessment of any portion of the Developer Property and Marina Property, or for any other reason, the Authority is required to reimburse any Brownfield TIF Revenue to any tax levying unit of government, the Authority may deduct the amount of any such reimbursement, including interest and penalties, from any amounts due and owing to the Developer and City. If all amounts due to the City and Developer under this Agreement have been fully paid or the Authority is no longer obligated to make any further payments to the City or Developer, the Authority shall invoice the Developer and City for the amount of such reimbursement and the Developer and City shall pay the Authority such invoiced amount within thirty (30) days of the receipt of the invoice. Amounts withheld by or invoiced and paid to the Authority by the Developer and City pursuant to this paragraph shall be reinstated as Developer Eligible Activities and City Eligible Activities, respectively, for which the Developer and City shall have the opportunity to be reimbursed in accordance with the terms, conditions, and limitations of this Agreement. Nothing in this Agreement shall limit the right of the Developer to appeal any tax assessment. 6. Legislative Authorization. This Agreement is governed by and subject to the restrictions set forth in Act 381. If there is legislation enacted in the future that alters or affects the amount of Brownfield TIF Revenue subject to capture, eligible property, or Eligible Activities, then the Developer's and City’s rights and the Authority’s obligations under this Agreement shall be modified accordingly as required by law, or by agreement of the parties. 7. Notices. All notices shall be given by registered or certified mail addressed to the parties at their respective addresses as shown above. Any party may change the address by written notice sent by registered or certified mail to the other party. 8. Assignment. This Agreement and the rights and obligations under this Agreement shall not be assigned or otherwise transferred by any party without the consent of the other party, which shall not be unreasonably withheld, provided, however, the Developer and City may assign their interest in this Agreement to an affiliate without the prior written consent of the Authority if such affiliate acknowledges its obligations to the Authority under this Agreement upon assignment in writing on or prior to the effective date of such assignment, provided, further, that the Developer and City may each make a collateral assignment of their share of the Brownfield TIF Revenue for project financing purposes. As used in this paragraph, “affiliate” means any corporation, company, partnership, limited liability company, trust, sole proprietorship or other entity or individual which (a) is owned or controlled by the Developer or City, (b) owns or controls the Developer or City or (c) is under common ownership or control with the Developer or City. This Agreement shall be binding upon and inure to the benefit of any successors or permitted assigns of the parties. 9. Entire Agreement. This Agreement supersedes all agreements previously made between the parties relating to the subject matter. There are no other understandings or agreements between the parties. 10. Non-Waiver. No delay or failure by either party to exercise any right under this Agreement, and no partial or single exercise of that right, constitutes a waiver of that or any other right, unless otherwise expressly provided herein. 11. Governing Law. This Agreement shall be construed in accordance with and governed by the laws of the State of Michigan. 12. Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same instrument. [Signature page follows] The parties have executed this Agreement on the date set forth above. CITY OF MUSKEGON BROWNFIELD REDEVELOPMENT AUTHORITY CITY OF seogee By: ad Ja 1SH88396-2 Signature Page to Development and Reimbursement Agreemant EXHIBIT A Copy of Brownfield Plan CITY OF MUSKEGON BROWNFIELD REDEVELOPMENT AUTHORITY BROWNFIELD PLAN AMENDMENT FOR THE HARBOR WEST, LLC DEVELOPMENT PROJECT May 7, 2020 Original Plan Approved by the Board of the City of Muskegon Brownfield Redevelopment Authority on February 23, 1998, with subsequent amendments approved as outlined below. This amendment approved on Original Plan Approved by the City Commission of the City of Muskegon on April 14, 1998, with subsequent amendments approved as outlined below. This amendment approved on . City of Muskegon Brownfield Plan Amendment Harbor West, LLC Development Project CITY OF MUSKEGON BROWNFIELD REDEVELOPMENT AUTHORITY BROWNFIELD PLAN INDEX INTRODUCTION GENERAL PROVISIONS DOW>Y Costs of the Brownfield Plan Method for Financing Costs of Plan Duration of the Brownfield Plan Displacement/Relocation of Individuals on Eligible Properties m Local Site Remediation Revolving Fund Ul. SITE SPECIFIC PROVISIONS ZErACHTaMMIOD> Kirksey/Anaconda Property (Approved 4/14/98) Dilesco Corporation Property (Approved 8/11/98) Beacon Recycling (Approved 7/11/00) Verplank Dock Company (Approved 5/27/03) Gillespie Development Property (Approved 8/12/03) Loft Properties, LLC Property (Approved 8/12/03) Parmenter O'Toole Property (Approved 8/12/03) “The WaterMark’” Project (Approved 5/25/04) Northern Machine Tool (Approved 7/13/04) Terrace Lots Office Building (Approved 7/13/04) Art Works Apartments (Approved 7/27/04) Former Muskegon Mall (Approved 10/12/04) Vida Nova at Edison Landing (Approved 10/24/06) Western Ave. Properties LLC and Port City Development Services, LLC (Approved 10/24/06) N<XXS<CHHBOVO Viridian Place at Edison Landing (Approved 10/24/06) Hot Rod Harley (Approved 3//27/07) Sidock Building Project (Approved 6/12/07) Heritage Square Town Homes (Approved 1/8/08) Betten Auto Dealerships (Approved 5/13/08) Parkland Muskegon Mixed Use Project (Approved 6/24/08) Terrace Point Landing Redevelopment Project (Approved 5/14/13) P&G Holdings NY, LLC (Approved 1/10/17) Sweetwater Development/The Leonard (Approved 3/12/19) 1208 Eighth/Core Development (Approved 10/8/19) Damfino Development, LLC (12/10/19) Harbor West, LLC Development Project (___) ii 5/7/2020 City of Muskegon Brownfield Plan Amendment Harbor West, LLC Development Project 1. INTRODUCTION In order to promote the revitalization of commercial, industrial, and residential properties within the boundaries of the City of Muskegon (the “City”), the City established the City of Muskegon Brownfield Redevelopment Authority (the “Authority”) pursuant to Act 381, Public Acts of Michigan, as amended (“Act 381”) and a resolution adopted by the Muskegon City Commission on February 10, 1998. Terms defined in Act 381 and applicable sections of the statute are noted in italics throughout this document. This Brownfield Plan (“Plan”) was originally intended to address the redevelopment of eligible properties within the City that are impacted by the presence of hazardous substances in concentrations that exceed Michigan’s Part 201 Generic Cleanup Criteria (‘facilities’) or that have been determined to be Functionally Obsolete or Blighted. By facilitating redevelopment of underutilized eligible properties, the Plan is intended to promote economic growth for the benefit of the residents of the City and all taxing units located within and benefited by the Authority. This Plan is intended to be a living document, which can be amended as necessary to achieve the purposes of Act 381. It is specifically anticipated that properties will be continually added to the Plan as new projects are identified. The Plan contains general provisions applicable to the Plan, as well as property-specific information for each project. The applicable Sections of Act 381 are noted throughout the Plan for reference purposes. This Brownfield Plan contains the information required by Section 13(2) of Act 381, as amended. Additional information is available from the Muskegon City Manager or the Director of Planning and Economic Development. ll. GENERAL PROVISIONS A. Costs of the Brownfield Plan (Section 13(2)(a)) Any site-specific costs of implementing this Plan are described in the site-specific section of the Plan. Site-specific sources of funding may include tax increment financing revenue generated from new development on eligible brownfield properties, state and federal grant or loan funds, and/or private parties. Where private parties finance the costs of eligible activities under the Plan, tax increment revenues may be used to reimburse the private parties. The initial costs related to preparation of the Brownfield Plan were funded by the City’s general fund. Subsequent amendments to the Plan may be funded by the person requesting inclusion of a project in the Plan, and if eligible, may be reimbursed through tax increment financing. The Authority intends to pay for administrative costs and all of the things necessary or convenient to achieve the objectives and purposes of the Authority with fees charged to applicants to be included in the Plan, and any eligible tax increment revenues collected pursuant to the Plan, in accordance with the provisions of Act 381, including, but not limited to: i) the cost of financial tracking and auditing the funds of the Authority, 1 5/71/2020 City of Muskegon Brownfield Plan Amendment Harbor West, LLC Development Project ii) costs for amending and/or updating the Plan, including legal fees, and iit) costs for Plan implementation Tax increment revenues that may be generated and captured by this Plan are identified in the site-specific sections of this Plan. B. Method for Financing Costs of Plan and Bonded Indebtedness (Section 13(2)(d) and (e)) The City or Authority may incur some debt on a site-specific basis. Please refer to the site-specific section of this Plan for details on any debt to be incurred by the City or Authority. When a property proposed for inclusion in the Plan is in an area where tax increment financing is a viable option, the Authority intends to enter into Development and Reimbursement Agreements with the property owners/developers of properties included in the Plan to reimburse them for the costs of eligible activities undertaken pursuant to the Plan. Financing arrangements will be specified in the Development and Reimbursement Agreement, and also identified in the Site Specific section of the Plan. C. Duration of the Brownfield Plan (Section 13(2)(f) The Plan, as it applies to a specific eligible property, shall be effective up to five (5) years after the year in which the total amount of any tax increment revenue captured is equal to the total costs of eligible activities attributable to the specific property, or thirty (30) years from the date of first tax capture under the Plan as it relates to an individual site, whichever is less. The total costs of eligible activities include the cost of principal and interest on any note or obligation issued by the Authority to pay for the costs of eligible activities, the reasonable costs of a Work Plan, the actual costs of the Michigan Environmental Great Lakes & Energy or Michigan Strategic Fund’s review of the Work Plan and implementation of the eligible activities, as applicable. D. Displacement/Relocation of Individuals on Eligible Properties Section 13(2)(i), G)(WCL At this time, eligible properties identified in the Plan do not contain residences, nor are there any current plans or intentions by the City for identifying eligible properties that will require the relocation of the residences. Therefore the provisions of Section 13(2)(i-l) are not applicable at this time. E. Local Site Remediation Revolving Fund (Section 8; Section 13(5)(b)) Whenever the Plan includes a property for which taxes will be captured through Tax Increment Financing (TIF) provided by Act 381, it is the Authority's intent to establish a Local Brownfield Revolving Fund (’Fund"). The Fund will consist of tax increment revenues that exceed the costs of eligible activities incurred on an eligible property, as specified in Section 13(5) of Act 387. Section 13(5) authorizes the capture of TIF from an eligible property for up to 5 years after the time that capture is required for the purposes of reimbursing the costs of eligible activities identified in the Plan. It is the intention of the Authority to continue to capture tax increment revenues for 5 years after eligible activities are funded from those properties identified for tax capture in the Plan, 2 5/7/2020 City of Muskegon Brownfield Plan Amendment Harbor West, LLC Development Project provided that the time frame allowed by Act 381 for tax capture is sufficient to accommodate capture to capitalize a Fund. The amount of school operating taxes captured for the Fund will be limited to the amount of school operating taxes captured for eligible department specific activities under the Plan. It may also include funds appropriated or otherwise made available from public or private sources. The Fund may be used to reimburse the Authority, the City, and private parties for the costs of eligible activities at eligible properties and other costs as permitted by Act 381. It may also be used for eligible activities on an eligible property for which there is no ability to capture tax increment revenues. The establishment of the Fund will provide additional flexibility to the Authority in facilitating redevelopment of brownfield properties by providing another source of financing for necessary eligible activities. ii, SITE SPECIFIC PROVISIONS Z. Harbor West, LLC Development Project Eligibility and Project Description (Sec. 13(2)(h)) Project Description Harbor West, LLC (“Harbor West”) intends to develop approximately 3.01 acres of land located at 1000, 1010 and 1060 West Western Avenue in Muskegon, MI (the “Property”) into residential site condominiums (the “Project”). The Project will include the construction of an initial ten (10) new market-rate site condominiums, associated site improvements and marina improvements to the adjacent Hartshorn Marina located at 920 West Western Avenue (“Marina Property”). The Project will include department specific activities, demolition, site preparation and infrastructure improvement activities in order to prepare the Property and Marina Property for redevelopment. A proposed site plan is included in Attachment Z-2. It is anticipated that the Plan will be amended at a later date to include additional costs for future phases of development. The estimated total capital investment to complete Phase | of the Project is estimated to be approximately $5+ million. The eligible property included in this Plan consists of four parcels of property totaling 15.41 acres in the City of Muskegon, Michigan (see Attachment Z-3). This eligible property includes all existing real and all new taxable personal property. Eligibility The 1000 West Western property meets the definition of a “facility” as defined by Part 201 of Natural Resources and Environmental Protection Act (Act 451 of 1994) due to the presence of select metals found in shallow soil intervals that are consistent with area- wide contaminated historical fill. Total mercury, copper, arsenic, selenium, and silver were detected in shallow soil throughout the area exceeding the groundwater surface water interface protection criteria, while arsenic concentrations also exceeding the residential drinking water and direct contact criterion. The 920, 1010 and 1060 West 3 5/71/2020 City of Muskegon Brownfield Plan Amendment Harbor West, LLC Development Project Western parcels are adjacent and contiguous to the 1000 West Western property and development of these parcels is expected to increase its taxable value. Therefore, the parcels are considered “eligible property” under Act 381, Eligible Activities, Financing, Cost of Plan (Sec. 13(2)(a), (b), (c), (g)) It is intended that the amended Plan shall provide for reimbursement of eligible activities conducted on the Property and Marina Property, including department specific activities (i.e. Phase | and Il Environmental Site Assessment and Due Care), demolition, site preparation, infrastructure improvements, brownfield plan/work plan preparation and development, including all associated professional fees. TIF revenues generated from the Project will first be used to reimburse the cost of eligible activities undertaken by the developer and City of Muskegon, in accordance with a development and reimbursement agreement to be executed by the parties. Following full reimbursement of the eligible activities included in this Plan, TIF generated by the Property may be used for any other purpose allowable under Act 381 and the Plan. The following are eligible activities that may be reimbursed through TIF revenues: 1. Department Specific Activities: Activities necessary for the developer to undertake its environmental due diligence, and any necessary costs related to Due Care obligations, including preparation of a Due Care Plan and implementation of Due Care Response Activities and Phase |, Il and BEAs. Vapor barriers and mitigation systems, demarcation markers, contaminated soil excavation, transportation and disposal, environmental investigations and oversight. Costs are estimated at $250,000. 2. Demolition: | Demolition will include removal of existing pavement, curbs, gutters and site improvements. Demolition is necessary in order to prepare the project for the proposed development. Demolition activities costs are estimated at $19,500. 3. Site Preparation: Site Preparation on the Property will include mobilization & demobilization, erosion control activities, dewatering, temporary traffic & construction signage, staking, clearing and grubbing, temporary facility, temporary site control, utility relocation, cut and fill, soil compaction and sub- base, mass grading/land balancing, unstable soil removal and backfill, geotechnical engineering, special foundations, and retaining walls. Site Preparation activities costs are estimated at $626,000. 4. Infrastructure Improvements: Infrastructure Improvements will include new water main, sanitary and storm sewer systems, walkways, bike paths, roadways, curb and gutter, gas and electric lines, public marina improvements, including a pool and a clubhouse. Infrastructure Improvement activities costs are estimated at $3,946,000. 5. Contingency; A 15% contingency is included to cover unexpected cost overruns encountered during construction totaling $726,225. 4 5/7/2020 City of Muskegon Brownfield Plan Amendment Harbor West, LLC Development Project 6. Brownfield/Work Plan Preparation and Development: Costs incurred to prepare and develop this brownfield plan is estimated at $30,000. An estimate of the captured taxable value and tax increment revenues, which includes the impact on the taxing jurisdictions, is attached as Attachment 2-5. Effective Date of Inclusion in Brownfield Plan The Harbor West LLC Development Project was added to this Plan on . Itis intended the duration of the Plan capture is the lesser of the full reimbursement of eligible activities or 30 years with capture beginning in 2021. 17011359 5 5/7/2020 City of Muskegon Brownfield Plan Amendment Harbor West, LLC Development Project ATTACHMENT Z-1 SITE MAP HARBOR MEST, LLC al Sa PROJECT TOMIGAATHIG La Leds sty... bake a) inns BASE UNITED STATES CECCMOAL SURVEr, Sanne EeBUSKEGOH WESTEAST QUADRANGLE MORGAN Hl? REWSED PHOTO IWSPECTED 7580 Dest La eee NVIRONMENTAL ReoORE a= Harbor Wost, LLC SITE LOCATION Vent Pari of 1020 Vest Westen Avenue and MAP Sayieear oon mow WastsnareCanaufing (B00) 956-2834 poparoals 1010 & 1000 Wau Westem Avarue, Fig 1 FRO WE WESTEAN AVE * Packt ds 05-28-208- 574-009 -20 fark GE WESTERN AYP es hi dosat 7 COE MUSSERCM 6 5/7/2020 City of Muskegon Brownfield Plan Amendment Harbor West, LLC Development Project W WESTERN AVE 1000 Parcel #: 61-24-205-574-0007-10 Address: 1000 W WESTERN AVE MUSKEGUIN, MI 45444 Suened fy) HARBOR WEST LLC N AVE 1010 W WESTER Parcel #1 61-24-205-974-0001-15 © Address, 1610 W WESTERN AVE MUSKEGON, MI 45447 Ovened By: HARBOR WEST LLC TRS WAVES TERN AVE Feruel 4, 8120-2 05-874-0001-08 hues. O50 W WESTERM ADE MUUSKRGOM Mi det) Theres Ry HARACIS WES THILO? 7 5/7/2020 City of Muskegon Brownfield Plan Amendment Harbor West, LLC Development Project ATTACHMENT 2-2 PROPOSED SITE PLAN _ HARBOR WEST, LLC DEVELOPMENT PROJECT SN HARTSHOAN MARINA et i se ” a te te WESTS LIOKE 8 5/7/2020 City of Muskegon Brownfield Plan Amendment Harbor West, LLC Development Project ATTACHMENT 2-3 LEGAL DESCRIPTION Parcel 4: THOSE PARTS OF BLOCKS 574 AND 575, REVISED PLAT (OF 1903) OF THE CITY OF MUSKEGON, MUSKEGON COUNTY, MICHIGAN, DESCRIBED AS FOLLOWS: COMMENCING AT THE SOUTHEASTERLY CORNER OF BLOCK 574 OF SAID REVISED PLAT (OF 1903) OF THE CITY OF MUSKEGON; THENCE NORTH 88°43’ WEST 270.42 FEET (M=NORTH 84°41’53” WEST 270.27 FEET) TOA POINT ON THE NORTHERLY LINE OF WEST WESTERN AVENUE FOR A POINT OF BEGINNING; THENCE WESTERLY ALONG THE NORTHERLY LINE OF WEST WESTERN AVENUE 457.28 FEET (M=NORTH 80°29'18” WEST 457.02 FEET); THENCE NORTH 2°04’ WEST 492.92 FEET; THENCE SOUTH 47°05’ EAST 236.7 FEET; THENCE CONTINUING SOUTH 47°04’ EAST TOA POINT 100 FEET NORTH OF AND NORTH 1°40’ WEST OF THE POINT OF BEGINNING. TOGETHER WITH THE C & O RAILWAY COMPANY RIGHT OF WAY RUNNING THROUGH THE ABOVE DESCRIBED PARCEL, EXCEPT THAT PART WHICH WAS DEEDED TO THE CITY OF MUSKEGON AS RECORDED IN LIBER 2138, PAGES 751 AND 752. Property Address: 1000 W. Western Avenue, Muskegon, Michigan Tax Parcel No.: 61-24-205-574-0001-10 BIKE PATH WEST DESCRIPTION: THAT PART OF BLOCK 574 OF THE REVISED PLAT OF 1903 OF THE CITY OF MUSKEGON, DESCRIBED AS: COMMENCING AT THE SOUTHEAST CORNER OF SAID BLOCK 574; THENCE NORTH &8*1.3'54" WEST 270,33 FEET TO A POINT ON THE NORTH RIGHT-OF-WAY LINE OF WESTERN AVENUE; THENCE NORTH B3'55‘00" WEST ALONG SAID NORTH RIGHT~OF—WAY LINE 456.97 FEET; THENCE NORTH 07°31's4" WEST 470.34 FEET TO THE POINT OF BEGINNING; THENCE NORTH 46°32'44" WEST 257.11 FEET: THENCE SOUTH 88727°16" WEST 684.39 FEET; THENCE NORTH 01°31'44" WEST 16.00 FEET; THENCE NORTH 88°27'26" EAST 691.04 FEET; THENCE SOUTH 46°32'44" EAST 247.70 FEET; THENCE SOUTH 07°31'44" EAST 22.62 FEET TO THE POINT OF BEGINNING. BIKE PATH EAST DESCRIPTION (PARCEL 5): THAT PART OF BLOCK 574 OF THE REVISEO PLAT OF 1903 OF THE CITY OF MUSKEGON, MUSKEGON CQUNTY, MICHIGAN, DESCRIBED AS COMMENCING AT THE SOUTHEAST CORNER OF SAID BLOCK 574; THENCE NORTH 88°13'S4" WEST 270.33 FEET TO A POINT ON THE NORTH RIGHT OF WAY LINE OF WESTERN AVENUE: THENCE NORTH 01°09'31" WEST 100,00 FEET; THENCE NORTH 46°351'44" WEST 118.61 FEET TO THE POINT OF BEGINNING; THENCE NORTH 61°45'12" WEST 60.9.3 FEET; THENCE NORTH 46°31'44" WEST 227.22 FEET; THENCE NORTH 46°32'44" WEST 220.80 FEET; THENCE NORTH OV31'44" WEST 22.62 FEET; THENCE SOUTH 46°32'44" EAST 236.79 FEET; THENCE SOUTH 46°31'44" FAST 286,01 FEET TO THE POINT OF GEGINNING. 9 5/7/2020 City of Muskegon Brownfield Plan Amendment Harbor West, LLC Development Project Property Address: 1010 W. Western Avenue, Muskegon, Michigan Tax Parcel No.: 61-24-205-574-0001-15 BIKE PATH WEST DESCRIPTION: THAT PART OF BLOCK 574 OF THE REVISED PLAT OF 1803 GF THE CITY OF MUSKEGON, DESCRIBED AS: COMMENCING AT THE SOUTHEAST CORNER OF SAID BLOCK 574; THENCE NORTH 988°13°S4" WEST 270.33 FEET TO A POINT ON THE NORTH RIGHT-OF-WAY LINE OF WESTERN AVENUE; THENCE NORTH 83°55'00" WEST ALONG SAID NORTH RIGHT-OF-WAY LINE 456.97 FEET: THENCE NORTH 07°31'44" WEST 470.34 FEET TO THE POINT OF BEGINNING; THENCE NORTH 46432'44" WEST 257.11 FEET; THENCE SOUTH 88°27'16" WEST 684,39 FEET: THENCE NORTH O2'31'44" WEST 16.00 FEET; THENCE NORTH 88°27'26" EAST 691,04 FEET: THENCE SOUTH 46°32'44" EAST 247.70 FEET: THENCE SOUTH O13i'44" EAST 22.62 FEET TO THE POINT OF BEGINNING. BIKE PATH EAST DESCRIPTION (PARCEL 5): THAT PART OF BLOCK 574 OF THE REVISED PLAT OF 1903 OF THE CITY OF MUSKEGON, MUSKEGON COUNTY, MICHIGAN, DESCRIBED AS COMMENCING AT THE SOUTHEAST CORNER OF SAID BLOCK 574; THENCE NORTH &8°13'84” WEST 270,33 FEET TO A POINT ON THE NORTH RIGHT OF WAY LINE OF WESTERN AVENUE; THENCE NORTH 01°09"31" WEST 100.00 FEET; THENGE NORTH 46°31'4" WEST 118.61 FEET TO THE POINT OF BEGINNING; THENCE NORTH &1°45'12" WEST 60.93 FEET; THENCE NORTH 46°31'44" WEST 227.22 FEET; THENCE NORTH 46°32'44" WEST 220.80 FEET; THENCE NORTH GV31'44" WEST 22.62 FEET; THENCE SOUTH 46°32'4¢" EAST 236,79 FEET: THENCE SOUTH 4B°3t‘t4" EAST 286.01 FEET TO THE POINT OF BEGINNING, Property Address: 1060 W. Western Avenue, Muskegon, Michigan Parcel: #61-24-205-574-0001-05 Parcel 1: All that part of Block 574 and 575 of the Revised Plat (of 1903) of the City of Muskegon, lying Northerly and Easterly of the following described boundary lines: (EXCEPT the right of way of the Chesapeake and Ohio Railway Co.) Commence at an iron bolt (original) located at the Southeast corner of Block 574 of the Revised Plat of the City of Muskegon, Muskegon County, Michigan; thence North 88°43' West 270.42 feet for a place of beginning; thence North 1°40' West 345.42 feet; thence North 84°6' West 290.81 feet; thence North 47°5' West 236.7 feet, thence North 2°4' West 175.2 feet; thence South 87°55' West 866.7 feet to an iron stake; thence North 37° West 730 feet; thence North 48° West to the thread of the stream in Muskegon Lake, for the place of ending of said lines. EXCEPT FROM PARCEL 1: BIKE PATH WEST DESCRIPTION: THAT PART OF BLOCK 574 OF THE REVISED PLAT OF 1903 OF THE CITY OF MUSKEGON, DESCRIBED AS: COMMENCING AT THE SOUTHEAST CORNER OF SAID BLOCK 574; THENCE NORTH 10 5/7/2020 City of Muskegon Brownfield Plan Amendment Harbor West, LLC Development Project 88'13'54" WEST 270.33 FEET TO A POINT ON THE NORTH RIGHT- OF-WAY LINE OF WESTERN AVENUE; THENCE NORTH 83'55'00" WEST ALONG SAID NORTH RIGHT-OF-WAY LINE 456.97 FEET; THENCE NORTH 01'31'44" WEST 470.34 FEET TO THE POINT OF BEGINNING; THENCE NORTH 46'32'44" WEST 257.11 FEET, THENCE SOUTH 88'27'16" WEST 684.39 FEET; THENCE NORTH 01'31'44" WEST 16.00 FEET; THENCE NORTH 88'27'26" EAST 691.04 FEET; THENCE SOUTH 46'32'44" EAST 247.70 FEET; THENCE SOUTH 01'31'44" EAST 22.62 FEET TO THE POINT OF BEGINNING. BIKE PATH EAST DESCRIPTION: THAT PART OF BLOCK 574 OF THE REVISED PLAT OF 1903 OF THE CITY OF MUSKEGON, MUSKEGON COUNTY, MICHIGAN, DESCRIBED AS COMMENCING AT THE SOUTHEAST CORNER OF SAID BLOCK 574; THENCE NORTH 88'13'54" WEST 270.33 FEET TO A POINT ON THE NORTH RIGHT OF WAY LINE OF WESTERN AVENUE; THENCE NORTH 01'09'31" WEST 100.00 FEET; THENCE NORTH 46'31'44" WEST 118.61 FEET TO THE POINT OF BEGINNING; THENCE NORTH 61'45'12" WEST 60.93 FEET; THENCE NORTH 46'31'44" WEST 227.22 FEET; THENCE NORTH 46'32'44" WEST 220.80 FEET; THENCE NORTH 01'31'44" WEST 22.62 FEET; THENCE SOUTH 46'32'44" EAST 236.79 FEET; THENCE SOUTH 46'31'44" EAST 286.01 FEET TO THE POINT OF BEGINNING. Parcel 2: Part of Blocks 574 and 575, as follows: Commence at the Southeast corner of Block 574 of the Revised Plat (of 1903) of the City of Muskegon, Muskegon County, Michigan; thence North 88°43' West 270.42 feet to the North line of West Western Avenue; thence Westerly along the North line of West Western Avenue 457.28 feet; thence North 2°04' West 492.92 feet to the place of beginning; thence North 2°04' West 175.2 feet; thence South 87°55' West 175.2 feet; thence South 47°05' East 247.75 feet to the place of beginning. ALSO: Commence at the Southeast corner of Block 574 of the Revised Plat (of 1903) of the City of Muskegon, Muskegon County, Michigan; thence North 88°43' West 270.42 feet to the North line of West Western Avenue; thence North 1°40' West 100 feet for a place of beginning; thence North 1°40' West 245.42 feet; thence North 84°6' West 290.81 feet; thence Southeasterly to the place of beginning. Parcel 3: Part of Block 573 of the Revised Plat (of 1903) of the City of Muskegon, Muskegon County, Michigan, described as: Commencing at the Southwest corner of said Block 573 for the point of beginning; thence North 1°40' West along the West line of said Block, 347.0 feet; thence North 21°40' West along the Westerly line of said Block, 241.0 feet; thence North 29°28' West along the Westerly line of said Block, 187.50 feet; thence South 35°37' East 258.20 feet; thence South 09°53' East 504.80 feet to the Northerly line of West Western Avenue; thence South 59°34' West along said Northerly line, 53.0 feet to the point of beginning. Property Address: 920 W. Western Avenue, Muskegon, Michigan Tax Parcel No.: 61-24-205-574-0001-20 11 5/7/2020 City of Muskegon Brownfield Plan Amendment Harbor West, LLC Development Project Eligible Activities Costs Department Specific Activities $234,500 ~ Due Care ~ _Phasel, |L& BEA $15, 15,500 EGLE Eligible Activities Total Cost $250,000 Demolition $19,500 Site Preparation - Mobilization & Demobilization $ 15,000 - — Silt Fence, Inlet Silt Sacks and $7,000 other Erosion Control Activities . $60,000 7 Dewatering 7 Temporary Traffic & Construction Signage $ 6,000 . $5,000 ~__ Staking . . $8,000 ~- Clearing and Grubbing a: $3,000 ~- Temporary Facility i . $17,000 ~ Utility Relocation 7 Cut & Fill $ 35,000 F . $20,000 ~___Land Balancing and Mass Grading . . $130,000 = Soil Compaction and Sub-base : , . $30,000 7~ Geotechnical Engineering . : $250,000 7~ Special Foundations ~ Unstable Fill Removal and Backfill $15, 45,000 oe $25,000 ~ Retaining Walls Site Preparation Sub-Total $626,000 Infrastructure Improvements . $118,000 ~___Water mains . $56,000 ~___ Sanitary System ~ Storm Sewer $ 62,000 F $8,000 -__Walkways/Bike Paths $105,000 7 Roadways $5,000 ~ Curb and Gutter vos $90,000 - Gas and Electric Lines : . . $800,000 ~- Public Boat Launch Relocation — City 12 5/7/2020 City of Muskegon Brownfield Plan Amendment Harbor West, LLC Development Project - Marina Dock Systems - City $1,302,000 ~ Pool and Clubhouse - City $1,400,000 infrastructure Improvements Sub-Total $3,946,000 Total Eligible Activities Total Cost $4,841,500 Contingency (15%) $726,225 Brownfield Plan Preparation and Development $30,000 TOTAL ELIGIBLE ACTIVITIES $5,597,725 13 5/7/2020 City of Muskegon Brownfield Plan Amendment Harbor West, LLC Development Project ATTACHMENT 2-5 TAX CAPTURE ESTIMATES HARBOR WEST 14 5/7/2020 jeu10d7y JoqieH 359M aip(snvrAejqwOlouy)ST psuajdoeUynw p1SPUJ‘soaARWu0MNiejn|L]EOyg)D ‘uYeodS}ays>nIVW soqieH 359m Ta OT DS| ‘ $ = $ 2 $ . $ - $ : S > $ = $ ° $ | £8¢'% $|z9 $ : $ dSW $-sy] 7 Sis Gale S's Sil s s|- ::2 Sest:$_- Siesi-$_- si:S$_-iliz gS$_-iiltiez SS$_-aAlNiEs st:S$_-al e lkeole$_- Slere't $ 6y8'tT $$s} S09509 S$_-alis S$_-ilie S$alis S5 xe [2907 aanqded «xeSys2o3d2a3g5 4Yg7 aanyded 23€3S JUaWasINquiXe] lay YadO1SA30 Sul zag sourjeg * $= $- $- $- S$ $- $- $ y80'rT $ 86'S $ vet $ - $ 23235 210,] anuanayjeqUawasou e Sue Hig Sle Sake ote obs Seles Sie Gil Sif Syn Saye Sas $ xe 2907 aunqded 1a42n3y0gd.e) : Sula, Sule Silke Sale Silis Sil s lis a bs Sue bse SU is SHS iy souejeg JuaWasuNqUay [2}0L i Salis SHE cal e Bile Sue ales Sie cal Sule Bal Sali Cie Gils $ 53505 [e}USU OIAUZ Y3ad019AI yeruymoUsLg 223322335S %0S) puny BujrjJoO4naya[pqjealuilay >® 7$ - $-2 $-le $--* $-¢- $-$- $-i := * =$=* ss$- $-si $-S: $-= $$ {13S 4°quawasanq =$TOV T |G$si[Se}UBWx-=OIAZDN [Ss$e}U|WI-ODGA 312SXBLjuaWsnqily |$-[ = $ « |[e2I0O1LJUsWanNqulyojgS-A=i$]5 u‘eodsiayrn| A‘oze2W YadO1SAI50 3 1a42Yn3yg0d7e) :S9}OUJS U“JO!YEC|S} City of Muskegon Brownfield Plan Amendment Harbor West, LLC Development Project ATTACHMENT Z-6 FACILITY CONFIRMATION 15 5/7/2020 w—e envirologic environmental consulting + services BASELINE ENVIRONMENTAL ASSESSMENT CONDUCTED PURSUANT TO SECTION 20126(1)(C) OF 1994 PA 451, PART 201, AMENDED, AND THE RULES PROMULGATED THEREUNDER FOR VACANT PROPERTY 1000 W. WESTERN AVENUE MUSKEGON, MICHIGAN 49441 OCTOBER 31, 2018 Prepared for: Harbor West, LLC 108 South University Ave Suite 6 Mt. Pleasant, Michigan 48858 Prepared by: ENVIROLOGIC TECHNOLOGIES, INC. 2960 Interstate Parkway Kalamazoo, Michigan 49048 (269) 342-1100 DEss. | Sa FOR DEQ USE ONLY BEA SUBMITTAL # ==" MICHIGAN DEPARTMENT OF ENVIRONMENTAL QUALITY ~ REMEDIATION AND REDEVELOPMENT DIVISION, PO BOX 90426, LANSING, MICHIGAN 48909-7926, Phone §17-373-9837, Fax 617-373-2637 Baseline Environmental Assessment Submittal Form This fam) is for submittal ofa B Envir tal A t (BEA), as defined by Part 201, Eavi tal Jiation and Part 213, Leaking Underground Storage Tanks, of the Natural Resources and Environmental Protection Act, 1994 PA 451, as amended, for the purpose of establishing aa iption to Habitity p {to Section 20126/1)¢) and Section 213232/1)(b) for a new owner or aperator of progenty that is a facility as defined by Section 20101(7){(s) or Property as defined by Section 21303(d). The BEA report must be canducted ertfier prior to or within 45 days afer becoming the owner or operator, whichever is earliest. This form and the BEA report must be submitted prior fo of within 6 months of becoming ihe owner or operator whichever is earliest, A separste BEA Is required for each legal entity that is or will be a new owner or operstor of the property, To maintain ihe exemption to Uabilily, the owner and operator must also disclose the BEA to anysubsequent purchaser or trensfere belore eying Interest in the property pursuant to Section 20126(i}{c) and Section 21323a(1){t). An owner or operator of a facility or Proparty also has due care obligations under Section 20107a and Section 21304c vith respect ta any existing contamination to prevent unacceptable exposure; prevent exacerbalion; take reasonable precautions, provide reasonable cooperation, assistance, and access fo authorized persons taking response activities at the property; comply with land use restrictions associated with response activities; and not impede the effectiveness of response activities implemented at the property. Dccumentation of due care evaluations, all conducted response activities, and compliance with 7a or 4¢ need to be avaitable to the MOEQ, but not submitied, within 8 months of becoming the owner or operator of a facility and/or Property. Section A: Legal Entity Information Name of legal entity that does or will own or operate the Contact for BEA questions if different from submitter: property: Harbor West, LLC Name & Title: David Stegink - Associate Vice President & Sr Environmental Sctentist Address: 104 S. University Ave, Suite 6 ZIP: 43858 Company; Eavirologlc Technologies, inc. City: Mount Pleasant State: M! Address: 2960 interstate Parkway Contact Person (Name & Title): Mr. Sidney Snuith - Member City, Kalamazoo Stale: Mi ZIP: 49048 Telephone: (989) 615-4391 Telephone: 269-342-1100 Email: wsldneysmith @smith-equities.com Email: stegink@envirologic.com Section B: Property Information Street Address of Property:,1000 West Western Avenue County;Muskegon ; City: Muskegon State: Ml Zip: 49448 City/Villageffownship: Sity of Muskegon Property Tax ID (include all applicable IDs): Town: JON Range: 47 W____ Section 23 61-24-205-574-0002-40 Quarter S€374_Quarter-Quarter: SE 1/4 of SE 1/4 Address according to tax records, if different than above Decimal Degrees Latitude: 23.229411 {include all applicable addresses): Decimal Degrees Longitude: -86-266320 City: State: Zip: Reference point for latitude and longitude: Center of sita iv] Main/tront door Status of submitter relative to the property Front gate/main entrance [7 Other 1) (check all that apply): Former Current Prospective Collaction methed: Owner O Survey C] GPs (1 interpolation Operator = 2 Cl Section C: Source of contamination at the property (check all that are known toapply): Facility regulated pursuant to Part 201, other source, or source unknown Part 207 Site ID, if known: Propetty - Leaking Underground Storage Tank regulated pursuant to Part 213 oO Part 211/213 Facility ID, if known: Oil or gas production and development regulated pursuant to Part 615 or 625 5 Licensed landfill regulated pursuant to Part 115 5 Licensed hazardous waste treatment, storage, or disposal facility regulated pursuant to Part 111 EQ 4025 (07/2017) Sectlon D: Applicable Dates (provide date for all that.are relevant): MMIDDIYYYY Date All Appropriate Inquiry (AAI) Report or Phase | Environmental Assessment Report completed: 06/22/2018 Date Baseline Environmental Assessment Report conducted: 10/31/2018 Date submitter first became the owner: 10/30/2018 Date submitter first became the operator: Date submitter first became the operator {if prior to ownership): Anticipated date of becoming the owner for praspective owners: Anticipated date of becoming the operator for prospective operators: If former owner or operator of this property, prior dates of being the owner or operator: Section E: Check the appropriate response to each of the following questions: YES NO 1 {s the property at which the BEA was conducted a “facility” as defined by Section 20101(1)(s) ora — Iv im Property as defined by Section 21303(d)? 2. Was the All Appropriate Inquiry (AAI) completed in accordance with Section 20101(1)(f} and or %a| | 21302(1)(b}? 3. Was the BEA, including the sampling, conducted either prior to or within 45 days of the date of oO ; becaming the owner, operator, or of foreclosure, whichever is earliest? 4, ts this BEA being submitted to the department within 6 months of the submitter first becoming the g owner of operator, or foreclosing? 6. Does the BEA provide sufficient rationale to demonstrate that the data is rellable and relevant to wl oO define conditions at the property at the time of purchase, occupancy, cr foreclosure, even if the BEA relies on studies of data prepared by others or conducted for other purposes? 6. Does this BEA contain the legal description of the property addressed by the BEA? Mal oO 7, Qoes this BEA contain the environmental analytical results, a scaled map showing the sample ¥ a! locations, and the basis for the determination that the property is a facility as defined by Section 20107(1}{s) or the basis for the determination that the property is a Property as defined by Section 21303(d}? Section F; Environmental Consultant Signature: { certify to the best of my knowledge and belief, that this BEA and all related materials are true, accurate, and complete. | certify that the property is a facility as defined by Section 20101(1)(s) ora Property as defined by Section 21303(d) and have provided the sampling and analyses that support that determination, | certify that any exceptions to, or deletions from, the All Appropriate mh Rule are described in Section 1 of the BEA 45) Signature: DS Ad i.) gD Date; iA]il,/ i Printed Name: David A Stegink Company: Envirologie Technologies, Inc, Mailing Address: 2960 interstate Parkway City: Kat 2 State: ML Zip: 49048 Telephone: (269) 242-1100 E-Mail: steginiw@envirologic.com Section G: Legal Entify Signature: Wi With my signalure below, [Le that igthe best of my knowledge and belief, this BEA and all related materials are true, accurate, and conpplete, Signature Mi, L, 7. Date: tA LES, (Person legally authorifgltto of to \foa entity) / / Printed Name: Sidney W Soiith Title and Relationship of signatory to submitter; Harbor West, LLC - Member - Address: 108 5S. University Ave, Suite 6 City: Mount Pleasant State: MU Zip: 48858 Telephone: E-Mail wsidneysrnith@smith-equities.com Submit the BEA report and this form to the MDEQ District Office for the county in which the property is located. An office map is located at wav.michigan.gov/deqrrd. 2 EQ 4025 (07/2017) TABLE OF CONTENTS 1. INTRODUCTION AND DISCUSSION .........ccccsscccseccssccseecseeeeeceeeceseeeeeeeceeeeeeeueeueeeesseeeeuceeenceense 1 As OWNER/OPERATOR INFORMATION ssvsssseessversconsasusvenxesausouarseressavenseecereonesoorsencenoaiareerteonretseannevervess B. INTENDED USE OF PROPERTY C. PHASE | ESA SUMMARY—RECOGNIZED ENVIRONMENTAL CONDITIONS D. EXCEPTIONS/DELETIONS FROM ASTM 1527-05 E. PHASE | ESA DATA GAPS DISCUSSION........000000 F. SAMPLING DiscUSSION—PURPOSE/METHODS G. KNOWN CONTAMINATION —LOCATIONS AND ENVIRONMENTAL MEDIA ....csccccceesseseeeeeceseseeseeeeseeesaaeeenee 2 H. “FAacitity” DEMONSTRATION 2. (PROPERTY INFORMATION: wxiisacivassiaccnnaseasccsenseaserveneessiianneecreenenseannareneanneanessserenes 4 A. PROPERTY LEGAL DESCRIPTION .....cccccccscccccccccsseesessseeaeeeeeeeeeeeeeeeeseeeeeeeeeeeeesseeauaneneausaeeuaaaeaaaaauaneees 4 B. & C. SURVEY MAP, PROPERTY TAX IDENTIFICATION NUMBER(S) ......cescceceeeeceteereeeceeeseeeeseceeeeeeseeseeaseees 4 D. LOCATION MAP .icscsccesesssssessseeceseeececeeceeeeeeeeeenneeeeeeeeeeeeeeeeeeeeeeea eee eeeeaAsAAAAGGGGAUGGCESSGGSGSSeeaeeeEeeEE ES 6 E.. PROPERTY LOCATION..........0cssiunrawnasmnsmun are 8 E, SPATIAL, DAA wsercccecesscovessvarssasasxeonercacnessxvereceeveansaverenerrerecnssevenssnaeeenncvasreeseserecsovesreccswesaaweevececens 8 3, FACILITY STATUS wicoccsscvesevsasenrevevaweccewaveaverenxessaweesevseseavevecnsseneasenceccecescesserenssssereeserseveccesseasss 9 A.. ANAITICAL TABLE sssissestsscassonsiaassanvaavaasavssvsxeenexeaaneannieas cxvevcasenaseraesemeraneunensarensosneansaasscrneaeseoseenns 9 B. LABORATORY ANALYTICAL DATA SHEETS AND CHAIN OF CUSTODY.....cccccssssessecssssssecessseseeeeseseeeeseeeeeeeeees 9 4. IDENTIFICATION OF THE AUTHOR OF THE BEA,.......ccccccscceccececeeeceececessencceenscescnsuseeeeuseseennee 10 5. ASTM 1527-13 PHASE | ENVIRONIVIENTAL SITE ASSESSMENT .......cccscecsceceeecseesneeseeeeeneeeaeece 11 G:, REFERENCES swsssisccsccssvoucrssceccsxecannerssviwevausvawevawasexsscvaevecseueneessvesa necoeeenedsseesevaeesarseecewensueeoses 12 FIGURES FIGURE 1: LOCATION Map i cisaecsenccsiseevcisiaxesssesocnsesns cesvaxavsaanasvaassesuaasvnseioevenns cess enenseaaveseanaeamnsdeaeeenevenereres 7 FIGURE 2: Site Plan With Analytical Data ...iceccccccsssscscessssscssessscssssccscssessecssssecsssesseceessseeesessneseesees 5 TABLES TABLE 12 SPARC] DOE. occssssncencenencessssessensennnsiasiitebcuds S255H5U25UNT NEUE DNATATE KS LAADT MATa NDROTOT Tea TaN T TORRE IN ERR TARE TABLE 2: Summary of “Facility” Contaminants APPENDICES APPENDIX A: Phase II Environmental Site Assessment (Envirologic, November 7, 2017) Senviralogic 1. INTRODUCTION AND DISCUSSION A. Owner/Operator Information Current Owner: Harbor West LLC B. Intended Use of Property Harbor West LLC purchased the property on October 30, 2018, and intends to develop the subject property with multiple condominiums. The subject property location map and site plan are included in Figures 1 and 2, respectively. C. Phase | ESA Summary—Recognized Environmental Conditions Recognized environmental conditions (RECs) were identified in the June 22, 2018, Phase | Environmental Site Assessment (ESA) report conducted by Envirologic. These RECs include the following: = Previous environmental studies have demonstrated the presence of contaminants at “facility concentrations” at the site as a result of historic filling activities at the property and surrounding area. = The former Shaw-Walker/Lakeview Industrial Center property located across W. Western Avenue to the south represents a vapor encroachment threat based on the former detections of both chlorinated and petroleum-related contaminants in soil and groundwater. D. Exceptions/Deletions from ASTM 1527-05 No exceptions to or deletions from the ASTM 1527-13 Phase | ESA standard have been identified in the June 22, 2018, Phase | ESA. E. Phase | ESA Data Gaps Discussion A data gap is the inability to obtain information within the scope of the Phase | ESA. No data gaps were encountered for the Phase | ESA. A data failure is the absence of information typically used to complete a Phase | ESA. No data failures were encountered for the Phase | ESA. envirologle F. Sampling Discussion—Purpose/Methods On October 24—25, 2017, Envirologic initiated and completed field activities at the subject property in order to characterize soil and groundwater conditions. These activities included the installation of nine soil borings located at various locations across the subject property based on a proposed preliminary site plan layout. The boring locations were selected based on the locations of various features shown in the preliminary site plan, such as residencies (GP-1 through GP-7), a playground (GP-9), and a swimming pool (GP-8). Activities also included the collection of shallow soil samples (6 inches below the ground surface) in order to characterize soils for direct contact exposures. Deeper soil samples (approximately 2-6 feet below the ground surface) were collected to better characterize the historically contaminated fill-type soils at the subject property and in the surrounding Muskegon Lake area. Because of previous environmental investigations that identified the presence of trichloroethene and vinyl chloride in groundwater, groundwater samples were collected from temporary monitoring wells that were installed in each of the soil borings. All the soil samples were submitted for analysis of select metals and polynuclear aromatic hydrocarbons (PNAs, method 8270), and all of the groundwater samples were submitted for volatile organic compound (VOC) analysis (method 8260). Soil samples were not analyzed for VOCs since there was no evidence of VOC impact—such as significant photoionization detector (PID) readings, staining, odors, etc.—in soil. A review of the soil analytical results indicates that the detection of PNAs was limited to one boring location, GP-1, located in the northwest corner of the subject property. The reported concentrations of the 10 PNA constituents detected do not exceed any current MDEQ Residential or Non-Residential cleanup criterion. Select metals were detected in each ofthe soil samples collected. Of those metals detected, total mercury, copper, arsenic, selenium, and silver were detected in concentrations exceeding the groundwater surface water interface protection criteria; the concentration of arsenic also exceeded the residential drinking water and direct contact criterion. The Phase II ESA laboratory analytical results demonstrate that the subject property meets the definition of a “facility,” as defined by Part 201 of NREPA. G. Known Contamination—Locations and Environmental Media Soil contaminants detected on the subject property exceeding cleanup criteria were found site- wide at all nine soil boring locations and included arsenic, copper, selenium, silver, and mercury. Selenium concentrations exceed cleanup criteria in every boring except GP-6, located in the 2 envirologic eastern portion of the property beneath proposed residencies. Silver concentrations exceed cleanup criteria in every boring except GP-9, located in the central portion of the property at a proposed playground area. Both arsenic and copper concentrations exceed cleanup criteria in two boring locations: GP-2, located beneath proposed residencies in the northwest portion of the property, and GP-5, located beneath proposed residences in the eastern portion of the property. The only detection of mercury on the property was also an exceedance. The mercury exceedance was detected at GP-7, located near the eastern property boundary, beneath proposed residencies. The known contamination on the property is consistent with the findings of the 2008 Summary Report Area-Wide Assessment of Historic Fill of Muskegon Lake Shoreline, Muskegon, Michigan prepared by Environmental Resources Management and Superior Environmental Corp. This previous study identified the presence of contaminated historic fill soils along the Muskegon Lake Shoreline and included samples collected from the subject property. The presence of arsenic, copper, selenium, silver, and mercury detected in soil at concentrations that exceed current Part 201 generic residential cleanup criteria and screening levels demonstrates that the subject property has been identified as a “facility,” as defined by Part 201 of the NREPA. Refer to Figure 2 for a site plan detailing the sample locations and concentrations of contaminants identified in association with the subject property. H. “Facility” Demonstration The subject property meets the definition of a “facility” based on the detection of contaminants in soil on the subject property at concentrations in excess of MDEQ Residential cleanup criteria. The contaminants identified include: =» Mercury = Selenium =" Copper = Silver = Arsenic 3 enviralogic 2. PROPERTY INFORMATION A. Property Legal Description The subject property consists of two parcels. Parcel 1 (tax identification number 61-24-205-574- 0001-10) will be purchased whole, and a portion of Parcel 2 (tax identification number 61-24-205- 574-0001-20) will be purchased. A legal description for the property being transferred and a Property Identification Number have not yet been created. B.& C. Survey Map, Property Tax Identification Number(s) A scaled site map showing the subject property and sampling locations is presented as Figure 2. envirologic 4 SION ALVA imo D. Location Map rai Is | \ \ \ T\M O 1N q git NISO M mes E. Property Location The subject property is located at 1000 W. Western Avenue in the City of Muskegon. F._ Spatial Data Table 1: Spatial Data City/Village/ : Quarter- ; ; County Town | Range | Section | Quarter Latitude Longitude Township Quarter City of Muskegon 10N |} 17W 25 SE SE 43.229411 -86.266330 Muskegon Latitude and Longitude information was obtained from interpolation of aerial photography. envirologic 3. FACILITY STATUS A._ Analytical Table Table 2: Summary of “Facility” Contaminants Maximum sami Hazardous Substance CAS Number : Location Media Affected Concentration and Depth Arsenic 7440382 8,300 pg/kg | GP-5 @ 6” Soil Copper 7440508 110,000 ug/kg | GP-5 @ 6” Soil Mercury (total) Varies 170 pg/kg GP-7 @ 6” Soil Selenium 7782492 880 pg/kg GP-8 @ 3’ Soil Silver 7440224 980 pg/kg | GP-7 @6” Soil B. Laboratory Analytical Data Sheets and Chain of Custody The laboratory analytical data sheets are included in the November 7, 2017, Phase II ESA completed by Envirologic, which is included in Appendix A of this Baseline Environmental Assessment (BEA). envirologic 4. IDENTIFICATION OF THE AUTHOR OF THE BEA The following individuals have conducted this Baseline Environmental Assessment. We declare that, to the best of our professional knowledge and belief, we meet the definition of Environmental Professional as defined in §312.10 of this part. We have the specific qualifications based on education, training, and experience to assess a property of the nature, history and setting of the subject property. We have developed and performed all appropriate inquiries in conformance with the standards and practices set forth in 40 CFR 312. “Dat. Se David A. Stegink Associate Vice President—Senior Environmental Scientist David A. Stegink graduated from Hope College with a Bachelor of Science degree in Chemistry/Biology and has over 30 years of environmental related experience. Mr. Stegink has been a Project Manager for Envirologic since 1991. Between 1984 and 1991, Mr. Stegink served as a Chemist and Operations Manager for a commercial hazardous waste treatment facility. Mr. Stegink’s expertise includes transactional environmental liability, property assessments including Phase | and II ESAs, Baseline Environmental Assessments, Brownfield Redevelopment, hazardous waste management, underground storage tanks, stormwater management, and environmental policy and regulations. Zach Curry Project Scientist Zach Curry worked under the supervision of Mr. Stegink. Mr. Curry holds an Associate’s Degree in Applied Arts and Science from Muskegon Community College and a Bachelor of Geology from Grand Valley State University. He has conducted original research and field studies in a variety of settings from glaciated Precambrian bedrock in Minnesota to sedimentary beds in Kentucky. Mr. Curry is proficient with ArcGIS software to map and analyze geologic features. Envirologic Technologies, Inc. 2960 Interstate Parkway Kalamazoo, Michigan 49048 (269) 342-1100 10 enviralogic City of Muskegon Brownfield Redevelopment Authority County of Muskegon, State of Michigan RESOLUTION APPROVING BROWNFIELD DEVELOPMENT AND REIMBURSEMENT AGREEMENT Harbor West, LLC Development Project Minutes of a meeting of the Board of the City of Muskegon Brownfield Redevelopment Authority (“Authority”), County of Muskegon, State of Michigan, held in the City Hall on the 11% of August, 2020 at 10:30 a.m., prevailing Eastern Time. PRESENT: Members Bottomley, Sytsema, Hastings, Moore, Johnson, Peterson, DePung, Kalisz, Riegler ABSENT: Members Kleaveland, Wallace, Pollock The following preamble and resolution were offered by Member M. Johnson and supported by Member J. Moore: WHEREAS, the Authority approved a Brownfield Plan Amendment to include the Hartshorn Village project (“Project”) during its meeting on May 12, 2020; WHEREAS, the Harbor West, LLC Brownfield Plan Amendment incluces tax increment financing to pay for certain eligible activities related to the Project; WHEREAS, a Development and Reimbursement Agreement between the City and Harbor West, LLC has been negotiated to provide for reimbursement of the costs of eligible activities identified in the Brownfield Plan Amendment. NOW, THEREFORE, BE IT RESOLVED AS FOLLOWS: 1. The Development and Reimbursement Agreement between the City and Harbor West, LLC for the Harbor West, LLC Brownfield Plan Amendment is necessary to facilitate the implementation of the Brownfield Plan. 2. The Authority hereby approves the Development and Reimbursement Agreement for the Harbor West, LLC Brownfield Plan, and recommends the approval of the Agreement by the Muskegon City Commission. 3. Repealer. All resolutions and parts of resolution in conflict with the provisions of this resolution are hereby repealed or amended to the extent of such conflict. AYES: Bottomley, Sytsema, Hastings, Moore, Johnson, Peterson, DePung, Kalisz, Riegler NAYS: None RESOLUTION DECLARED ADOPTED. Clyairperson | hereby certify that the foregoing is a true and complete copy of a resolution adopted by the Board of the City of Muskegon Brownfield Redevelopment Authority, County of Muskegon, State of Michigan, at a meeting held on August 11, 2020, and that said meeting was conducted and public notice of said meeting was given pursuant to and in full compliance with the Open Meetings Act, being Act 267, Public Acts of Michigan, 1976, and that the minutes of said meeting were kept and will be or have been made available as required by said Act. Chairp Muskegon Social District Plan Introduction: The City of Muskegon seeks to take advantage of Michigan Public Act 124 of 2020 signed in to law on July 1, 2020. This is enabling legislation that would allow Michigan municipalities to establish Social Districts that would allow for “common areas” where two or more contiguous licensed establishments (bars, distilleries, breweries, restaurants and tasting rooms) could sell alcoholic beverages in special cups to be taken into the area for consumption. Muskegon city administration through a collaboration of all City Hall departments is designing a Muskegon Social District and the policies, parameters and management of this new community development tool. This Muskegon Social District Plan is being shared with potential license holder users for refinement of the plan, a final draft will be presented to the Muskegon City Commission for approval and sent on to the Michigan Liquor Control Commission for state concurrence. Management: The Muskegon Social District would be created and managed by the city through its economic development department and downtown manager. The district management and operations would be assisted by the city’s public safety, public works, clerk and finance departments. District boundaries: The Muskegon Social District would have a common area south of Shoreline Drive with the potential of expanding to the north in the future. The initial Muskegon Social District would be mainly along West Western Avenue from Eighth Street to Pine Street, including portions of Clay Avenue, Morris Avenue, Third Street and Jefferson Street. (map attached) Streets in the Social Districts would remain open to traffic and for parking, unless parking spaces are given to outdoor dining. The district is being proposed with the expectation of certain properties being developed that would include future businesses with liquor licenses that might expand the common area. Potential participating license holders: Muskegon Social District -- The Eagles, Tipsy Toad, Mike’s Bar, Pigeon Hill, Burl & Sprig, Top Shelf, Mercy Health/Rad-Dads, Dr. Rolf’s, Racquets, Smash, Walker’s, the CIM’s Courses, Unruly, Boar’s Belly, 18° Amendment, WMSO/The Block, Farmers Market, Hennessy’s, Nipotes, 794 Kitchen, Capone’s, and Rake. Participating license holders would be asked to sign a Social District agreement with the city, which must approve social district permits issued by the MLCC. This allows a license holder to sell alcoholic beverages in special district cups in its service area to be taken into the common area for consumption. Non-alcohol businesses within the district: There are businesses which could be in the common area and allow for Social District beverages to be brought into those places of business. Examples would be retail outlets such as Vintage Redefined, Harris and Willow, Western Market and the Century Club Center. Operations: The Muskegon Social Districts would operate year round but the district’s seasonal road closures along with outdoor services and amenities would be from May 1 to Oct. 31. Operations would be seven days a week. The common areas would be open from 11 a.m. until 11 p.m. Before 11 a.m. and after 11 p.m., Social District beverages would not be able to be possessed nor consumed in the common areas. After hours, consumption of alcoholic beverages would have to be contained within the license holders’ service areas. It is the intent of city administration to begin implementing the Muskegon Social Districts in 2020, if possible. An initial roll out might not be a full Muskegon Social District but by the spring of 2021 the entire Muskegon Social District plan would be implemented. District designation and marking: The boundaries of the Muskegon Social Districts would be clearly designated and marked with signs and graphics on streets and sidewalks. The signs could be accompanied by a trash receptacle for customers to dispose of used district cups as they exit the district. Social District financing: The Muskegon Social District established, implemented and managed by the City of Muskegon must generate enough revenue to cover its costs. A number of funding models could pay for the Muskegon Social District. The options include a surcharge on beverages purchased for possession and consumption in the common areas though an upcharge on cups that would need to be purchased through the city. Participating establishments could handle the surcharge however they choose within their product price structure. The cup could contain a sponsor logo or message that could generate dollars for the district. The district establishments could charge a small daily fee for a wrist band to be a common area user. And finally, a district fee for participating license holders in the Muskegon Social District could generate further revenues. One or a blending of these funding methods would be explored and implemented by consensus of the city and the participating establishments. Revenues would pay for initial implementation such as signs and trash receptacles and ongoing costs such as the cups, security-enforcement, sanitation, marketing-promotion and entertainment. Social District logo and beverage containers: The Muskegon Social Districts should have a name for branding and marketing purposes but must have a special logo for use on the non-glass district beverage cups of no more than 16 ounces. The cups of various colors and/or stickers to differentiate among license holders must also have a logo or name identifying the establishment. Muskegon Social District cups may not be reused, must remain in the establishment where they were purchased or in the common area and may not be taken into an establishment that did not sell the beverage. Muskegon Social District will explore the use of cups that can be recycled or composted. Security-enforcement: Security and enforcement in the Muskegon Social Districts would be provided by the Muskegon Police Department. The Muskegon Social District may hire certified private security personnel to assist within the district. Insurance: The city would insure its management and operation of the Muskegon Social District through its municipal umbrella insurance policy. Participating license holders would be left to secure their own liability insurance as they deem necessary. Sanitation: The Muskegon Public Works Department with heavy assistance from participating establishments would provide sanitation within the district including trash removal, litter pick up ona daily basis and deployment of portable toilets, if needed. Each participating license holder would be required to have a city provided trash receptacle outside of its entrances for the disposal of district cups and empty those receptacles when needed. The city would maintain its current downtown trash receptacles and could expand the number in areas where establishments are not available to assist. Marketing and promotion: The Muskegon Social District should have a branded name for marketing purposes and a distinctive logo. Marketing would be done through traditional free media and paid advertising along with extensive social media. The district needs its own Facebook page, other social media accounts and website. Entertainment/food trucks: The Muskegon Social District has the opportunity to provide entertainment on a regular basis and food trucks when warranted. The district includes three small stages to provide various musical acts, including Olthoff Stage, Alcoa Square and the Farmers Market. The district could also coordinate and promote individual establishments wanting to feature musical entertainment. Finally, food trucks could be introduced to drive visitors into the district and create a street-fair atmosphere when deemed necessary. Festivals/special events: The state’s Social District law does not allow special event liquor licenses to participate ina Social District. Such special licenses are the backbone of several large festival events historically within Muskegon’s Social Districts. Going forward, the Muskegon Social District and its participating license holders seem to favor allowing these “beer tents” with no alcoholic beverage entering or exiting special-event licensed area. But ongoing coordination and collaboration with downtown events and festivals would be needed. 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