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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,
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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,
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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
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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.
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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
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ATTACHMENT Z-1
SITE MAP
HARBOR MEST, LLC al Sa PROJECT
TOMIGAATHIG
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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
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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?
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ATTACHMENT 2-2
PROPOSED SITE PLAN
_ HARBOR WEST, LLC DEVELOPMENT PROJECT
SN
HARTSHOAN
MARINA
et
i
se
”
a
te
te
WESTS LIOKE
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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.
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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
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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
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City of Muskegon Brownfield Plan Amendment
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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
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City of Muskegon Brownfield Plan Amendment
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- 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
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City of Muskegon Brownfield Plan Amendment
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ATTACHMENT 2-5
TAX CAPTURE ESTIMATES
HARBOR WEST
14 5/7/2020
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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
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D. Location Map
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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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