View the PDF version Google Docs PDF Viewer
CITY OF MUSKEGON
DOWNTOWN DEVELOPMENT AUTHORITY (“DDA”)
REGULAR MEETING
DATE OF MEETING: Tuesday, October 13, 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
Roll Call
Il. Approval of the regular meeting minutes of September 8, 2020
Il. Brownfield Redevelopment Authority business
None
IV. Downtown Development Authority business
A. Financial report
B. DDA semi-annual update
C. Public participation
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
September 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, M. Kleaveland,
D. Pollock
MEMBERS ABSENT: J. Moore, excused; F. DePung, excused; M. Johnson Sr.
STAFF PRESENT: P. Wills, Director of Strategic Initiatives; D. Alexander, Downtown
Manager; L. Mikesell, Director of Development Services; H. Griffith,
Code Coordinator; R. Cummins, Administrative Assistant/meeting
facilitator
OTHERS PRESENT: J. Belka, attorney for Harbor West LLC; S. Smith, Harbor West LLC; D.
C. Brubaker-Clarke, CBC Community Development Strategies LLC.
APPROVAL OF MINUTES
A motion to approve the regular meeting minutes of August 11, 2020 was made by D. Kalisz, supported
by H. Sytsema and unanimously approved.
BROWNFIELD REDEVELOPMENT AUTHORITY BUSINESS
Harbor West LLC (Hartshorn Village) Development and Reimbursement Agreement — approval of
receipts for reimbursement. P. Wills summarized the request and provided background information on
the Reimbursement Agreement.
M. Kleaveland asked how much was supposed to be paid. P. Wills stated that $600,000 is eligible costs.
J. Belka stated that the amount that would need to be paid is the $624,525.79 and that the City would
receive $600,000 through reimbursement. There was continued discussion regarding the amounts that
were billed versus what was estimated. There were some items that ended up being under the estimates.
The request is to approve the full amount that was spent. H. Sytsema confirmed that there would be no
reallocation of other costs. C. Brubaker-Clarke confirmed that there would not be.
A motion to approve the Development and Reimbursement Agreement for the approved Brownfield
Plan for Harbor West, LLC (Hartshorn Village) project, was made by D. Pollock, supported by J.
Riegler and unanimously approved, with M. Bottomley, H. Sytsema, B. Hastings, F. Peterson, D.
Kalisz, J. Riegler, J. Wallace Jr, M. Kleaveland and D. Pollock voting aye.
DOWNTOWN DEVELOPMENT AUTHORITY BUSINESS
DDA Financial Report. D. Alexander went over the financial report. The report was submitted to the
commission members by email prior to the meeting. The BID will continue for three more years. A
formal approval based on the current format is not being asked for just an acceptance until a better
formatted version could be shared.
Downtown Project Update. D. Alexander updated the commission members on some projects.
e 1021 Jefferson— Under construction of the former City employee parking lot. He went over the
funding and what will be located in the development and the requirements. Commercial
elements on the 1‘ floor and being occupied in the Summer of 2021 is the possible expectation
time.
e 1144 3" — Former Matson Oldsmobile Property and building. Requests for Qualifications are
going out for the development of the property. There is funding under the Michigan Economic
Development Corporation. There will be three short videos to be on Facebook to show options
for the community to view and vote on which of the three options for the properties and then
the RFQ will be put out based on it. Brad Martel is the owner out of Grand Rapids and is willing
to work with the City to make it a more productive use. M. Bottomley asked about the other
building that is across the street. D. Alexander stated that is owned by a private developer out
of D.C. and has his crew cleaning it up to have a mixed-use developer. He was not sure what
would be done in the back portion but believes that the upstairs will have a couple of residential
uses.
e He described what is being done from a promotional standpoint. This would be on Friday
evenings and Saturday afternoons & evenings. Outdoor seating areas would continue from now
through October. This would be family oriented with fire pots and possibly fire bowls. This
would be with the approval of the Fire Marshall as well.
Social Districts Discussion. D. Alexander gave an update on the social districts and the requirements
that was approved. He described what could be done under what was approved, as well a map of the
area that this would be allowed. There would be special cups that show what is allowed. M. Kleaveland
asked if this was approved by the State. D. Alexander stated that it would and there is a fee of $250
charged by the LLC and this cannot be started without an approval. There is a five-year enabling law
if the City Commission approves of this. He described the time frame that this would operate.
OTHER
There was discussion on other items throughout the City of Muskegon.
v Pere Marquette Beach Sculpture — M. Bottomley asked if there was a date for the sculpture to
be installed at the beach. D. Alexander that that it would be brought in possibly in October and
put together. F. Peterson added that if it couldn’t be installed in October it could possibly be
installed early spring 2021.
v Restaurants — M. Kleaveland asked how the restaurants downtown had fared due to COVID.
D. Alexander stated that many were trying to survive. There were a couple that could not be
reopened. It had helped a little with some being allowed to expand onto the sidewalks for safe
distancing.
v Lumberjacks — D. Alexander stated that the Lumberjacks will be participating with their final
camp and there will be a limitation on how many can go into the arena.
v¥ Hennessey & Boars Belly — D. Alexander stated that they have not opened.
Y Tipsy Toad — D. Alexander stated that they have not opened and there may be a sale of the
structure.
XA
Racquets — D. Alexander stated that this has been sold.
Country Kitchen — D. Alexander stated that they used to be located at Racquets but will now be
in a food truck and the owners want to find a new location in the downtown area.
There being no further business, the meeting was adjourned at11:25 a.m.
DDA BUDGET WORKSHEET FOR FY 2020-21
FY2020-21 ACTUAL
Revenues FY2018-19 ACTUAL | FY 2019-20 -ACTUAL FY2020-21 BUDGET SEPTEMBER 30, 2020
Tax Increment (5%+ annual)* $ 1,069,486.00 | $ 924,457.00 | $ 489,958.00 | $ -
Reimbursement - State S - $- - $ -
Trans From General Fund _ $ * $ £ $ ee:
Interest Income $ 521.63 | $ 263.00 | $ 100.00 | $ -
Fundraising Revenue $ 2,000.00 $ -
{BID Income (or $50,000 levy)** $ 132,432.45 | $ 110,000.00 | $ |
TIFA § - 1s - 1s :
[Former Mall Brownfield Income (GF) $i - |S - {3 =
Total $ 1,070,007.63 | $ 1,059,152.45 | $ 600,058.00 | $ ig
Expenses FY2018-19 ACTUAL FY 2019-20 FY 2020-21 FY 2020-21
Business Dev. Manager Wages - $ 71,924.00 | $ 98,800.00 | $ 23,384.33
Trans to GF - Marketing, Events, Overhead $ - $ - $ 2
FICA (7.65%) $ 5,457.00 | $ = $ 3
Workers Comp (2%) $ 394.00|$ - |$ =
Insurance $ 1,728.00 | $ - $ -
Residency Bonus (4%) S - 8 $ |
Life Insurance (0.24%) 5 269.00 | $ - $ -
401(k) (6%) $ 7,853.00 | $ a $ #
Total Salaries/Benefits $ 87,625.00 | $ 98,800.00 | $ 23,384.33
Walkability Improvements $ $ - $ =|
Streetscape/Wayfinding / Walkability*** $ - $ - $ - a_|
Public Art (Downtown Initiative) $ - $ - $ -
Landscaping $ 50,000.00 | $ - $ -
Snow Removal _ $ 62,629.00 | $ - |s -
Facade Program $ - |s -_|$ 2
Financial Incentives $ -_ |s -_ |s$ -
Downtown Park(s)**** $ 5,759.00 | $ - $ 1,979.51
Marketing/Publications $ 5,000.00 | $ -_|s = (8 5,492.50
Blight $ -_|$ > _ 1S :
Office Space and Misc Operating $ 5,930.11 | $ 17,005.00 | $ B $ 2,769.62
Total Recurring Costs $ 10,930.11 | $ 135,393.00 | $ 151,500.00 | $ 10,241.63
LC Walker Phase 1 $ 750,000.00 | $ -_|[s ~ [s :
LC Walker Phase la***** $ 250,000.00 | $ -_|$ - [s :
Morris Street Lot $ 20,000.00 | $ - $ -
Event Contributions $ = 18 -_ |$ =
Projects and Events $ 1,000,000.00 | $ 20,000.00 | $ - $ -
County Debt Payments ($1M)****** $ __ 865,928.00 $ 134,073.00 | $ =
LC Walker HVAC/Roof (5 Year)******* $- - $ 215,000.00 | $ E
Other Debt Payments (smartzone) $ - $ : $ -
Total Debt Payments $ 865,928.00 | $ 349,073.00 | $ -
Total Expenses $ 1,010,930.11 | $ 1,108,946.00 | $ 599,373.00 | $ 33,625.96
[Net Rev/Expenses [$s 59,077.52 | $ (49,793.55)| $ 685.00 | $ (33,625.96)|
[Cumulative Cash Reserves Ls 59,077.52 | $ (41,492.23)| $ (40,807.23)| $ (74,433.19)]
*Significant Reduction in Tax Increment Planned in Year 10 Due to Transition to “Local Only" TIF
** Anticipates Increaded BID Investment - Focus on Western and Third Streets (BID Board Would Ultimately Decide)
*** Assumes 3rd Street Project in 2018-19 and Clay Ave Streetlighting in 2019-20
****Assumes DDA Maintains Splash Pad and Dog Park, and Develops a Playground Area in FY 2020-21
***** Antcipates an additional $250,000 to complete Phase 1 of LC Walker (Restrooms)
****** Assumes 10-year debt repayment to Muskegon County
** 4 Assumes 10-year debt contribution at $215,000/yr for 10 years related to new roofing, dehumidification, and boiler at LC
O:\FINANCE\COMMON\2021 Budget\Proposed DDA Budget For FY2020-21
Retail business attraction
*¢ Entertainmen t
|”
Assistance to Downtown Establishments
* To allow for downtown restaurants and establishments to open in late
se
=m
ee
‘aeostnblhiymr. T‘WEHLOCM
reDsfhapounivdbk.ly
RALUCOHES
pifrom whic in
©RacquetsBR©olOfFQ's inn©Mikes @Thetagis
@&BK7itac0hern 1Ame8ndth TFWhoaulnkdetri's
© o 9 ® ® ® ® ® Oo
Sign up for City of Muskegon Emails