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CITY OF MUSKEGON
DOWNTOWN DEVELOPMENT AUTHORITY {"DDA")
BROWNFIELD REDEVELOPMENT AUTHORITY {"BRA")
REGULAR MEETING
DATE OF MEETING: Tuesday, May 11, 2021
TIME OF MEETING: 10:30A.M.
PLACE OF MEETING: ZOOM for participants and Facebook Live/
Facebook "City of Muskegon Government"
for public
AGENDA
I. Roll Call
II. Approval of the regular meeting minutes of April 13, 2021
III. Public comment on agenda items
IV. Brownfield Redevelopment Authority business
A. Brownfield Plan Amendment for Viridian Shores Redevelopment Project (Pete
Wills-Jake Ekholm)
B. DISCUSSION ONLY - Project proposal for a state EGLE $1,000,000 brownfield
loan to suppmi Harbor 31 redevelopment site. (Pete Wills-Jake Ekholm)
V. Downtown Development Authority business
A. DDA financial report (Beth Lewis)
B. DDA financial request from the Downtown Muskegon Social District (Dave
Alexander)
C. DDA discussion and direction of FY 2021-22 unexpended funds (board)
D. Downtown events update (Ann Meisch)
VI. Public participation
VII. 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 Meisch, 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
23 1-724-6705
CITY OF MUSKEGON
DOWNTOWN DEVELOPMENT AUTHORITY {DDA) /
BROWNFIELD REDEVELOPMENT AUTHORITY {BRA)
REGULAR MEETING
MINUTES
April 13, 2021
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 (Muskegon MI), B. Hastings (Muskegon MI), J. Riegler
(Muskegon MI), M. Kleaveland (Muskegon MI), M. Johnson Sr (N01ion
Shores MI), J. Moore (Muskegon MI), H. Sytsema (Muskegon MI), J.
Wallace Jr (Muskegon, MI), F. Peterson (Muskegon, MI)
MEMBERS ABSENT: F. DePung D. Pollock, S. Black, D. Kalisz
STAFF PRESENT: P. Wills, Director of Strategic Initiatives; J. Eckholm, Economic
Development Director; L. Mikesell, Director of Development Services;
D. Alexander, Downtown Manager; B. Lewis, Finance Director; K.
Grant, Assistant Finance Director; A. Meisch, City Clerk; S. Pulos,
Administrative Assistant.
OTHERS PRESENT: F. Bednarek, Muskegon Museum of A1i; K. Hallman, Muskegon
Museum of A1i.
APPROVAL OF MINUTES
A motion to approve the regular meeting minutes as corrected of November 24, 2020 was made by H.
Sytsema supp01ied by M. Kleaveland and on a voice vote unanimously approved.
PUBLIC COMMENT ON AGENDA ITEMS -- None.
BROWNFIELD REDEVELOPMENT AUTHORITY BUSINESS
Brownfield update - P. Wills gave an update on what plans might be coming to the BRA. J. Eckholm
told the BRA that a Brownfield Plan Amendment for Harbor 31 property on Muskegon Lake at
Shoreline Drive and Terrace Street will be presented to the BRA in the next month or two. No BRA
action was needed in April.
DOWNTOWN DEVELOPMENT AUTHORITY BUSINESS
DDA Financial Rep01i-B. Lewis reviewed the budget rep01i from March 31 and said the budget is in
line. Expenses and revenues stmiing to come in for the Lakeshore Art Festival and Taste of Muskegon.
The revenues and expenses are in balance as it is three months away from the event. The DDA has
budgeted $25,000 to supp01i the events. The Finance Depmiment asked the DDA to increase the
budgeted amount to $50,000 but no action was taken. H. Sytsema expressed frustration of not having
enough detail in the budget to lmow where the DDA stands for funds available for grants and projects.
B. Lewis promised to update the report with more detail.
Motion to accept the financial report M. Johnson and supported by F. Peterson. Voice vote all in favor,
no nays.
Mercy Health Arena bond payments - The DDA has accepted the debt payments for the arena roof and
ventilation at $215,000 annually for 10 years. The Finance Department is asking the DDA to rescind
that supp01i and instead supp01i the payment of new city bonds refinancing the debt at $130,000 a year
for 10 years. In the sh01i-term, this is a cost savings in the annual budget of about $70,000.
Motion to rescind prior DDA support of debt service for the Mercy Health Arena roof and ventilation
system and for the next 10 years supp01i the arena bond payments at $130,000 a year made by H.
Sytsema and supported by F. Peterson. Roll call vote: F. Peterson, B. Hastings, M. Bottomley, J.
Riegler, M. Kleaveland, M. Johnson Sr, J. Moore, H. Sytsema, voting Yea, none voting Nay.
Muskegon Museum of Art Funding Request-- F. Bednarek and K. Hallman of the Muskegon Museum
of A1i presented on the museum's expansion plans and $9.9 million fundraising campaign. The DDA
was asked to supp01i the campaign with a $100,000 pledge over five years beginning in fiscal year
2022-23. The campaign is at 75 percent of goal. The expansion will allow the museum to display more
of its permanent collection and have larger gallery space for visiting exhibitions. Construction would
begin late 2021 or early 2022. The expansion would open in 2023. DDA members questioned the
museum officials on details of the expansion project. M. Johnson asked for more time to consider the
request in light ofunce1iainty of the DDA events budget. The DDA board overall expressed supp01i of
the museum, of the expansion and assisting in reaching the goal. D. Alexander gave background on the
request that came from a meeting with the museum and F. Peterson. Staff is supporting the request.
Motion to consider the request but to table until the June meeting by M. Johnson and supp01ied by J.
Moore. Roll call vote to table F. Peterson, B. Hastings, M. Bottomley, J. Riegler, M. Kleaveland, M.
Johnson Sr, J. Moore, H. Sytsema, voting Yea, none voting Nay.
Events post-COVID support-The DDA budget amended in August included $15,000 for post-COVID
marketing. At this point, D. Alexander recommended supp01iing the non-profit downtown events as
they attempt to get back in operations in 2021 after a year of no activity due to COVID. A. Meisch
outlined the approach of five events creating a fund through the Community Foundation for Muskegon
County. Such DDA funding could be put into that account.
Motion to supp01i downtown events post-COVID with $15,000 in marketing funds and direct staff to
equally distribute it made by B. Hastings and supported by J. Moore. Motion was withdrawn.
Motion to direct the $15,000 in funds evenly to just the city's/DDA's Lakeshore Art Festival and Taste
of Muskegon made by J. Riegler and supported by J. Moore. Voice vote F. Peterson, B. Hastings, M.
Bottomley, J. Riegler, M. Kleaveland, J. Moore, H. Sytsema, voting Yea, none voting Nay.
Streetlighting on Terrace - L. Mikesell presented a request from DPW/Engineering on support of
decorative streetlighting for the redesign of the boulevard. The estimate for the poles would be
$165,000. The DDA is waiting on budget issues to make a decision at a future meeting. Streetlighting
is in the DDA plan as a priority.
Public participation - None.
Adjournment -- There being no fmiher business, the meeting was adjourned at 12: 19 p.rn.
da
Muskegon Brownfield Development Authority:
Agenda IV-A Item for 5-11-21
Harbor 31 LLC, 105 Viridian Drive
Viridian Shores at Harbor 31 Redevelopment Project
Brownfield Plan Amendment
Requesting party: Harbor 31 LLC
Outline of the request: Harbor 31 LLC has submitted a Brownfield Plan
Amendment for the Viridian Shores at Harbor 31 Redevelopment Project - a
residential development on 3.5 acres located at 105 Viridian Drive along the south
shore of Muskegon Lake. The investment in the first phase is estimated at $15.2
million.
Background: The 3.5-acre property is the site of the former Teledyne Continental
Motors industrial facility. This area is previously known as Edison Landing. It has
been previously designated as a SmartZone in which the GVSU Innovation Hub,
residential site condominiums and the offices of Parmenter Law are currently
located. Plans for the site include single family detached residential as well as
owner-occupied townhomes. Proposed redevelopment activities include the
construction of 33 two-story residential homes (including a combination of 15
single-family free-standing homes and 18 multifamily duplex style homes). The
project will create a walkable community that provides access to Muskegon Lake,
greenspace areas, and downtown Muskegon . Sustainable development concepts
are proposed throughout the project including green building techniques and low-
impact development stormwater management. Total private investment, for this
phase, not including property acquisition, is approximately $15,200,000.
The development is expected to start in Spring 2021 and continue through 2023.
The future masterplan of the phased development will also include the
construction of a 118-unit senior living community, a 134-unit Boardwalk Flats
apartment building, a 44,000 square foot retail and 120-unit apartment complex
named Harbor 31 Commons, a four-story 107 room hotel, a retail boat sales and
on-demand boat storage facility and a 100 slip marina with eight dedicated
shopper docks. The project is expected to have a significant economic impact to
the area through the creation of over 1,200 construction-re lated jobs along with
nearly 550 FTE (full-time equivalent} jobs.
Extensive environmental and geotechnical field work has been performed onsite.
The developers continue to work with EGLE to address several legacy
environmental issues that exist on various aspects of the project scope which
could include wetland replacement obligations. A revised Planned Unit
Development {PUD} site plan was approved by the City Commission in January.
This impactful waterfront multi-use project is another initiative which is key to the
continued redevelopment of our downtown area.
Staff comments:
1. Earlier this year, the developer's environmental consultant completed a
Phase II Environmental Site Assessment {ESA} and relied on historical
environmental investigations conducted over the past 25 years to conclude
that the known contamination onsite meets the definition of a "facility"
under the state's Brownfield Act PA 451.
2. This plan is for $4,018,080 in eligible costs. It is a local-only property tax
capture plan, although through statute the plan is eligible for $76,900 for
eligible environmental costs captured by state educational millage through
EGLE. There is no need for state approval.
3. The local only EGLE eligible costs are $782,000 and include $600,000 for
due care and $80,000 for response activities. Local only MSF eligible costs
are $3,159,180 and include $40,000 demolition, $60,000 asbestos
abatement, $380,000 site preparation and $730,000 for infrastructure
improvements.
4. The initial capture for phase one is estimated at $1.81 million over the 26
years. Subsequent phases are expected to bring further plan amendments
to the BRA that would cover all eligible costs within the plan's timeframe.
5. The cost of the eligible activities included in this Plan Amendment will be
paid for by the Developer. The Developer will seek reimbursement for
eligible activity costs through capture of available local and state (as
applicable} tax increment revenues as permitted by Act 381.
6. Capture of tax increment revenues for Developer reimbursement is
anticipated to commence in 2025 (after the sunset of the Smart Zone tax
abatement for the property} and end in 2047, a total of 26 years. This Plan
Amendment assumes approximately five years of additional capture of tax
increment revenues (following Developer reimbursement) for deposit into
a Local Brownfield Revolving Fund, if available.
7. There is a 15 percent contingency in the plan.
8. A request for 5% interest is included for all accrued and unreimbursed
eligible activities on a yearly basis.
9. There is an annual $10,000 administrative fee paid to the BRA.
Staff recommendation: City staff has reviewed the Viridian Shores at Harbor 31
Redevelopment Project brownfield plan amendment and staff recommends
approval.
Suggested motion: I move to approve/disapprove the resolution for the
Brownfield Plan Amendment for the Viridian Shores at Harbor 31 Redevelopment
Project and further requests a public hearing before the Muskegon City
Commission to consider adoption of the plan.
City of Muskegon
Brownfield Redevelopment Authority
County of Muskegon, State of Michigan
RESOLUTION APPROVING REVISED BROWNFIELD PLAN AMENDMENT
Viridian Shores at Harbor 31 Redevelopment Project
Minutes of a regular meeting of the Board of the City of Muskegon Brownfield
Redevelopment Authority, County of Muskegon, State of Michigan, held on the 11th day of May
2021 at 10:30 a.m., prevailing Eastern Time.
Membera
PRESENT:
---------- ---------- ---
Members
ABSENT:
---------- ---------- ---
The following preamble and resolution were offered by Member _ _ _ _ _ _ _ _ and
supported by Member _ _ _ _ _ _ __
WHEREAS, a Brownfield Plan has been adopted pursuant to Act 381, Public Acts of
Michigan, 1996, as amended ("Act 381"), a copy of which is on file with the Secretary of the City of
Muskegon Brownfield Redevelopment Authority (the "Authority"); and
WHEREAS, the Authority is authorized to approve amendments to the Brownfield Plan and
recommends the Amendment to add eligible properties within the Viridian Shores at Harbor 31
Redevelopment Project for approval to the City of Muskegon, County of Muskegon, State of
Michigan (the "City").
NOW, THEREFORE, BE IT RESOLVED AS FOLLOWS:
1. Approval of Brownfield Plan. The Board hereby adopts and approves the
Brownfield Plan Amendment for the Viridian Shores at Harbor 31 Redevelopment Project
and recommends the approval of the Brownfield Plan Amendments by the Muskegon City
Commission.
2. Public Hearing. The Board hereby requests city personnel to provide a notice of
Public Hearing on the proposed Brownfield Plan Amendments, and further requests that
such hearing notice be provided to all taxing jurisdictions. Notice of the time and place of
the hearing shall be given pursuant to Act 267, Public Acts of Michigan, 1976, as amended
("Open Meetings Act").
3. Deliver Resolution and Brownfield Plan to City. The Chair of the Authority is
directed to deliver a certified copy of this resolution and the Brownfield Plan Amendments to
the City Clerk.
4. Disclaimer. By adoption of this resolution and approval of the Brownfield Plan
Amendments , the Authority assumes no obligation or liability to the owner, developer or
lessor of the Eligible Property for any loss or damage that may result to such persons from
the adoption of this resolution and Brownfield Plan Amendments.
5. Work Plan Transmittal. The Chair of the Authority shall be authorized to transmit to
the Michigan Strategic Fund, the Michigan Economic Development Corporation and/or the
Michigan Department of Environmental Quality, on behalf of the Authority, a final Act 381
Work Plan that has been reviewed and approved by the Authority.
6. 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:
NAYS:
RESOLUTION DECLARED ADOPTED.
Martha Bottomley, Chair
City of Muskegon Brownfield Redevelopme nt Authority
-2-
I 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 regular meeting held on May 11, 2021, 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.
Martha Bottomley, Chair
City of Muskegon Brownfield Redevelopment Authority
-3-
City of Muskegon
Brownfield Redevelopment Authority
Brownfield Plan Amendment for the
Viridian Shores at Harbor 31
150 Viridian Drive
Muskegon, Michigan
Approved by the City of Muskegon Brownfield Redevelopment Authority
Approved by the City of Muskegon Board of Commissioners
Prepared with the assistance of:
Fishbeck
1515 Arboretum Drive SE
Grand Rapids, Michigan 49546
616-464-3876
Table of Contents Fishbeck I Page i
1.0 Introduction ..................................................................................................................................................1
1.1 Proposed Redevelopment and Future Use for the Eligible Property .............................................. 1
1.2 Eligible Property Information ..........................................................................................................1
2.0 Information Required by Section 13(2) of the Statute ................................................................................. 2
2.1 Description of Costs to Be Paid for With Tax Increment Revenues ................................................. 2
2.2 Summary of Eligible Activities .........................................................................................................4
2.3 Estimate of Captured Taxable Value and Tax Increment Revenues ................................................4
2.4 Maximum Amount of Note or Bonded Indebtedness ..................................................................... 5
2.5 Duration of Brownfield Plan ............................................................................................................5
2.6 Estimated Impact of Tax Increment Financing on Revenues of Taxing Jurisdiction ........................ 5
2.7 Legal Description, Property Map, Statement of Qualifying Characteristics and Personal Property5
2.8 Estimates of Residents and Displacement of lndividuals/Families .................................................. 5
2.9 Plan for Relocation of Displaced Persons ........................................................................................5
2.10 Provisions for Relocation Costs .......................................................................................................5
2.11 Strategy for Compliance with Michigan's Relocation Assistance Law ............................................. 6
2.12 Other Material that the Authority or Governing Body Considers Pertinent ................................... 6
List of Figures
Figure 1 Location Map
Figure 2 - Site Layout Map
List of Tables
Table 2 - Tax Increment Revenue Capture
Table 3 Tax Increment Revenue Reimbursement Allocation
List of Attachments
Attachment A Brownfield Plan Amendment Resolution(s)
Attachment B Conceptual Renderings
Attachment C Environmental Data Tables and Map
Attachment D Reimbursement Agreement
May 5, 2021 Fishbeck I Page 1
1.0 Introduction
The City of Muskegon Brownfield Redevelopment Authority (the "Authority" or MBRA) was established by the City
of Muskegon pursuant to the Brownfield Redevelopment Financing Act, Michigan Public Act 381 of 1996, as
amended ("Act 381"). The primary purpose of Act 381 is to encourage the redevelopment of eligible property by
providing economic development incentives through tax increment financing for certain eligible properties.
This Brownfield Plan Amendment ("Plan Amendment") serves as an amendment to the City of Muskegon's
existing Brownfield Plan, allowing inclusion of the eligible property described in Sections 1.1 and 1.2 below.
Incorporation of eligible property into the City's Brownfield Plan permits the use of tax increment financing to
reimburse Viridian Land Shores Co, LLC ("Developer") for the cost of eligible activities required to redevelop the
eligible property. See Attachment A for copies of Plan Amendment resolutions.
1.1 Proposed Redevelopment and Future Use for the Eligible Property
The Developer is proposing to redevelop a portion of the former Continental Motors industrial site located at 105
Viridian Drive, Muskegon, Michigan (the "Property"). Proposed redevelopment activities include the construction
of 33 two-story residential homes (including a combination of 15 single-family free-standing homes and 18 multi-
family duplex style homes) with options for rooftop seating overlooking Muskegon Lake (the "Project"). The
Project will create a walkable community that provides access to Muskegon Lake, greenspace areas, and
downtown Muskegon. Sustainable development concepts are proposed throughout the Project including green
building techniques and low-impact development stormwater management. Total private investment, not
including property acquisition, is approximately $15,200,000. The development will create approximately 10-20
new jobs (office and maintenance) . Project renderings are provided as Attachment B.
The development is expected to start in Spring 2021 and continue through 2023.
1.2 Eligible Property Information
The 3.5-acre Property is located in downtown Muskegon along the south shore of Muskegon Lake. The Property
has been historically utilized for industrial purposes dated back to the 1800s. Based on a recent Phase II
Environmental Site Assessment (ESA) completed in 2021 and historical environmental investigations conducted
over the past 25 years, these past industrial uses have resulted in widespread contamination across the Property.
Known contaminants in the soil with concentrations exceeding Michigan Department of Environment, Great
Lakes, and Energy (EGLE) Part 201 Generic Residential Cleanup Criteria (GRCC) include heavy metals and volatile
organic compound (VOCs) . Groundwater contaminants with concentrations identified above Part 201 GRCC
consist of voes.
The Developer is not a liable party and completed a Baseline Environmental Assessment (BEA) in accordance with
Part 201 of the Natural Resources and Environmental Protect Act, 1995 PA 451, as amended (NREPA) .
Given the known contamination, the Property is a "facility" pursuant to Part 201 of NREPA. As such, it is
considered an "eligible property" as defined by the Michigan Redevelopment Financing Act, Act 381 of 1996.
Maps depicting the location and layout of the Property are attached as Figures 1 and 2. Environmental data
tables are provided in Attachment C.
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May 5, 2021 Fishbeck I Page 2
2.0 Information Requ ired by Section 13(2) of the Statute
2.1 Description of Costs to Be Paid for With Tax Increment Revenues
Act 381 provides pre-approval fo r ce rta in activities t hat have been con duct ed at t he Property. Ad ditional activities
req ui re BRA approval fo r reimburse ment from loca l, school ope rating, and st ate education taxes. Tax increme nt
revenues will be used to reim burse th e Developer for t he fo llowin g eligible activities.
Tables l a, lb and le be low provid e an eli gible activity cost summa ry fo r th e Project.
Table la-Summary of Eligible Activity Costs
EGLE Eligible Activities Estimated Cost
Deoartment Soecific Activities
Site Assessment and BEA Activities $11,200
Due Care Planning $30,000
Documentation of Due Ca re Compliance $12,000
Health and Safety Plan/Soil Management Plan $3,700
EGLE Eligible Activities Sub-Total $56,900
Brownfield Plan Amendment/Act 381 Work Plan Preparation $15,000
Brownfield Plan Amendment Implementation $5,000
EGLE ELIGIBLE ACTIVITIES TOTAL COST $76,900
Table lb-Summary of Eligible Activity Costs
Local Only EGLE Eligible Activities Estimated Cost
Due Care (Sub-Total) $600,000
Volatilization to Indoor Air Mitigation $360,000
Engineered Barriers $100,000
Dewatering $140,000
Response Activities (Sub-Total) $80,000
Contaminated Soil/Fill Material Removal, Disposal and Oversight $80,000
Local Only EGLE Eligible Activities Sub-Total $680,000
Contingency (15%) $102,000
Local Only EGLE ELIGIBLE ACTIVITIES TOTAL COST $782,000
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May 5, 2021 Fi shbeck I Page 3
Table le-Summary of Eligible Activity Costs
Local Only MSF Eligible Activities Estimated Cost
Demolition (Sub-Total) $40,000
Asbestos Abatement (Sub-Total) $60,000
Infrastructure Improvement (Sub-Total) $730,000
Urban Storm water Management System $121,000
Electric $136,000
Landscaping $90,000
Utility Connection Fees $35,000
Signage $15,000
Concrete and Asphalt $191,000
Water and Sanitary Sewer Mains $142,000
Site Preparation (Sub-Total) $380,000
Clearing and Grubbing $5,000
Geotechnical Engineering & Investigation $90,000
Grading and Land Balancing $65,000
Engineered Fill Import and Placement $100,000
Temporary Erosion Control, Fencing and Security $55,000
Relocation of Utilities $65,000
Local only MSF Eligible Activities Sub-Total $1,210,000
Contingency (15%) $181,500
Brownfield Plan Amendment/Act 381 Work Plan Preparation $15,000
Brownfield Plan Amendment Implementation $6,500
Interest (5%) * $1,746,180
LOCAL ONLY MSF ELIGIBLE ACTIVITIES TOTAL COSl $3,159,180
* Interest ca lculat ed yea rly base d on eli gible activity cost s accru ed
Tot al EG LE and loca l only MSF eli gibl e activiti es cost s is $4,018,080.
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May S, 2021 Fishbeck Page 4
2.2 Summary of Eligible Activities
Eligible activities as defined by Act 381 and included in this Plan Amendment consist of the following:
Pre-Approved Department Specific Activities: These activities are permitted to occur prior to Plan Amendment
approval. Preparation of a Phase I ESA, BEA and due care documents are necessary to protect the new Property
owner/Develop er from liability for environmental contamination. Additional due care assessment and/or planning
activities are anticipated, including but not limited to preparation of a soil management plan and health and
safety plan. Pre-approved activities can be reimbursed from state school and local tax increment revenues.
Due Care Activities: Due care activities will include implementation of vapor intrusion mitigation systems, as
applicable, to prevent unacceptable exposures to potential indoor air inhalation concerns. Engineered barriers
will be utilized to protect against direct contact concerns related to known contamination. During construction
activities, dewatering is anticipated. Contaminated groundwater will be properly managed to comply with due
care. Due care costs will include environmental consultant oversight and management.
Asbestos Abatement: An asbestos wrapped pipe was identified on the property during assessment activities and
will need to be properly abated prior to redevelopment activities.
Demolition: Select Site demolition will be necessary to facilitate safe redevelopment and reuse of the Property.
Infrastructure Improvements: Infrastructure improvements include urban stormwater management, electric
utilities, landscaping, utility connection fees, signage, concrete and asphalt pavement and water and sanitary sewer
main upgrades. Costs will include oversight, management, and professional fees associated with these activities.
Site Preparation: Site preparation is expected to include clearing and grubbing, geotechnical engineering, grading
and land-balancing, engineered fill import and placement, temporary erosion control, fencing and security and
relocation of utilities. Costs will include oversight, management, and professional fees associated with these
activities.
Contingency: A 15% is included for all eligible activities not already completed to accommodate unexpected
conditions encountered during the project.
Plan Amendment and Act 381 Work Plan (if necessary) Preparation: This Plan Amendment was required for
authorization of reimbursement to the Developer from tax increment revenues under Public Act 381 of 1996, as
amended. An Act 381 Work Plan may be prepared in the future.
Interest: 5% interest is included for all accrued and unreimbursed eligible activity on a yearly basis.
2.3 Estimate of Captured Taxable Value and Tax Increment Revenues
For the purposes of this Plan Amendment, the taxable value base year is 2021. The 2021 taxable value of the
eligible property is $400,000. After completion of the development, the taxable value is estimated at $7,433,369.
This Plan Amendment assumes a 1.5% annual increase in the taxable value of the eligible property. Initial capture
is anticipated to begin in 2025 (after the sunset of the Smart Zone tax abatement for the property).
The estimated captured taxable value for the redevelopment by year and in aggregate for each taxing jurisdiction
is depicted in tabular form (Table 2: Tax Increment Revenue Capture). Actual taxable values and tax increment
revenues may vary year to year based on economic and market conditions, tax incentives, building additions, and
property improvements, among other factors.
A summary of the estimated reimbursement schedule by year and in aggregate is presented as Table 3: Tax
Increment Revenue Reimbursement Allocation.
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May 5, 2021 Fishbeck Page 5
Method of Financing and Description of Advances Made by the Municipality
The cost of the eligible activities included in this Plan Amendment will be paid for by the Developer. The
Developer will seek reimbursement for eligible activity costs through capture of available local and state (as
applicable) tax increment revenues as permitted by Act 381. Refer to Attachment D for a copy of the
Reimbursement Agreement.
2.4 Maximum Amount of Note or Bonded Indebtedness
Bonds will not be issued for this Project.
2.5 Duration of Brownfield Plan
Capture of tax increment revenues for Developer reimbursement is anticipated to commence in 2025 and end in
2047, a total of 26 years. This Plan Amendment assumes approximately five years of additional capture of tax
increment revenues {following Developer reimbursement) for deposit into a Local Brownfield Revolving Fund, if
available.
2.6 Estimated Impact of Tax Increment Financing on Revenues of Taxing
Jurisdiction
The estimated amount of tax increment revenues to be captured for this redevelopment from each taxing
jurisdiction by year and in aggregate is presented in Tables 2 and 3.
2. 7 Legal Description, Property Map, Statement of Qualifying Characteristics and
Personal Property
• The legal description is as follows:
150 Viridian Drive
CITY OF MUSKEGON LAKESHORE SMARTZONE SITE CONDOMINIUM UNIT A 3RD AMENDMENT TO
MASTER DEED L4189/P164 MASTER DEED RECORDED L3505/P491 SUBJ TO ELECTRIC ESMNT L3591/P578
SBJTTO ELECTRIC ESMNT L3630/P646 SBJTTO UNDERGROUND ELECTRIC LN ESMNT L3719/P211 SBJTTO
UNDERGROUND ELECTRIC LN ESMNT L3728/P997
• The Property layout is depicted on Figure 2.
• The Property is considered an "eligible property" as defined by Act 381 because the Property is a facility
pursuant to Part 201. Facility verification is included in Attachment C.
• New personal property added to the Property is included as part of the Eligible Property to the extent it is
taxable.
2.8 Estimates of Residents and Displacement of Individuals/Families
No residents or families will be displaced because of the Project.
2.9 Plan for Relocation of Displaced Persons
Not applicable.
2.10 Provisions for Relocation Costs
Not applicable.
Z:\2021\210653\WORK\REP1\BROWNFIELO PLAN AMENDMEN1\HARBOR 31_DRAFT_BROWNFIELD PLAN AMENDMENT_2021_0430.00CX
May 5, 2021 Fishbeck
-------~-----------
I Page 6
2.11 Strategy for Compliance with Michigan's Relocation Assistance Law
Not applicable.
2.12 Other Material that the Authority or Governing Body Considers Pertinent
The Project will significantly improve the Muskegon Lake shoreline through revitalization of Property once used
for industrial purposes. The new condominium units are part of a larger developer that will increase the City's tax
base, bring new permanent residences to the City of Muskegon, create new jobs and increase the local
workforce.
Z:\2021\210653\WORK\REPT\BROWNflELD PLAN AMENDMENT\HARBOR 3l_DRAFT_BROWNFIELD PLAN AMENDMENT_2021_D430.DOCX
Figure 1
Location Map
Muskegon East, Michigan 7.5 Minute Quadmngle Map
Published 1972,· Photoi11s ected 1980
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SCALE 1:24000 (1 "=2,000 ' )
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CONTOUR INTERVAL JO FEET
Site Boundaries Shm\>11 are Aooroximate
Topographic Map Figure 1
Vacant Commercial Property
150 Viridian Drive (Lot A)
Muskegon, Michigan 49440
ASES
SES Project 2020-846
Figure 2
Site Layout Map
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RESIDENTIAL I
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MW-106
MUSKEGON LAKE
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TITlE LEGEllO PROJECT
2020846
SITE MAP - - - - APPROX IMATE SITE BOUNDARY - - - - SHORE LINE
Site Location Map & MONITORING WE LL SCALE
SES
1"=80' 11/14/2020
LOCATK)N II] TRANSFORMER ORA\'JN CHECKED
Vacant Commercial Property amh ss
150 Vlrldlan Drive FILE FIGURE
Muskegon, Muskegon County, Michigan 2020846
Table 2
Tax Increment Revenue Capture
Table 2 - Estimate of Total Incremental Taxes Available for Capture 1 of 3
Viridian Shores, Muskegon, Muskegon County, Michiga n
Estimated Taxable Value (TV) Increa se Rate: 1.5%
• .,1 4 7 10 11
Calendar Vear 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031
Base Taxable Value 400,000 $ 400,000 $ 400,000 $ 400,000 400,000 400,000 400,000 $ 400,000 $ 400,000 400,000 $ 400,000
Estimated New TV $ 3,042,320 $ 5,279,880 $ 7,323,516 7,433,369 7,544,869 7,658,042 $ 7,772,913 $ 7,889,507 8,007,849 $ 8,127,967
Incremental Difference (New TV - Base TV)
1
$ 2,642,320 4,879,880 6,923,516 $ 7,033,369 7,144,869 7,258,042 $ 7,372,913 $ 7,489,507 7,607,849 7,727,967
hoolCa t ure Millage Rate
State Education Tax (SET) 6.00000 15,854 29,279 41,541 42,200 42,869 43,548 44,237 44,937 45,647 46,368
School Operating Tax 17.98380 47,519 87,759 124,511 126,487 128,492 130,527 132,593 134,690 136,818 138,978
School Total 23.9838 63,373 117,038 166,052 168,687 171,361 174,075 176,830 179,627 182,465 185,346
County Museum 0.32200 851 1,571 2,229 2,265 2,30 1 2,337 2,374 2,4 12 2,450 2,488
County Veterans 0 .07150 189 349 495 503 511 519 527 535 544 553
Senior Citzens Services 0.49990 1,321 2,439 3,461 3,516 3,572 3,628 3,686 3,744 3,803 3,863
Central Dispatch 0.29999 793 1,464 2,077 2,110 2,143 2,177 2,212 2,247 2,282 2,318
Community College 2.20340 S,822 10,752 15,255 15,497 15,743 15,992 16,245 16,502 16,763 17,028
M.A.I.S.O 4.7S410 12,562 23,199 32,91S 33,437 33,967 34,505 35,052 35,606 36,168 36,740
City Operating 10.07S40 26,622 49,167 69,757 70,864 71,987 73,128 74,285 75,460 76,652 77,862
City Sanitation 2.99790 7,92 1 14,629 20,756 21,085 21,420 21,759 22,103 22,453 22,808 23,168
Hackley library 2.39970 6,341 11,710 16,614 16,878 17,146 17,417 17,693 17,973 18,257 18,545
MPS Sinking 0 .99810 2,637 4,871 6,910 7,020 7,13 1 7,244 7,359 7,475 7,593 7,713
County Operating 5.69780 15,055 27,805 39,449 40,075 40,710 41,355 42,009 42,674 43,348 44,032
local Total 30.3198 80,115 147,957 209,920 213,250 216,631 220,062 223,545 227,080 230,668 234,310
0 MIiiage Rate
Community College Debt 0.34000 898 1,659 $ 2,354 2,391 2,429 2,468 2,507 2,546 2,587 2,628
Hackley Debt 0.45320 1,197 2,212 $ 3,138 $ 3,188 3,238 3,289 $ 3,341 3,394 $ 3,448 $ 3,502
MPS Debt - 199 5 3.86000 10,199 18,836 $ 26,725 $ 27,149 $ 27,579 28,016 $ 28,459 28,909 $ 29,366 $ 29,830
MPS Debt· 2009 3 .50000 9,248 17,080 $ 24,232 $ 24,617 $ 25,007 $ 25,403 $ 25,805 26,213 $ 26,627 $ 27,048
Total Non •Capturable Taxes 8.1532 21,543 39,787 $ 56,449 $ 57,344 $ 58,254 $ 59,176 $ 60,113 61,063 $ 62,028 $ 63,008
1
Assumes 1% annual Increase for Inflation
$ 143,487 $ 264,995 $ 375,972 $ 381,937 $ 387,992 $ 394,138 $ 400,376 $ 406,707 $ 413,134 $ 419,656
Total Tox Increment Reven/ TIR) Available for Capture
Note-
For the purpose of Table 2 the new ta xable value is estimated based on 40% of a total overal investment of $19,000,000 divided over th e three years estima ted for construction of the project
Z:\2021\210653\WORK\Rept\Brownfield Plan Amendment\TIF Tables\TB 1 TBL02 and TBL03_TIF_ harbor 31 local only,xlsx
Table 2 - Estimate of Total Incremental Taxes Available for Capture 2 of 3
Viridian Shores, Muskegon, Muskegon County, Michigan
Estimated Taxable Value (TV) Increase Rate:
PlanYear1 12 13 14 15 16 17 18 19 20 21 22
Calendar Year 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042
Base Taxable Value $ 400,000 $ 400,000 400,000 $ 400,000 400,000 400,000 $ 400,000 400,000 $ 400,000 $ 400,000 400,000
Estimated New TV $ 8,249,886 $ 8,373,635 8,499,239 $ 8,626,728 8,756,129 8,887,471 $ 9,020,783 9,156,095 $ 9,293,436 $ 9,432,838 9,574,330
1 8,620,783 8,756,095 8,893,436 9,032,838 9,174,330
Incremental Difference (New TV . Base TV) $ 7,849,886 $ 7,973,635 8,099,239 $ 8,226,728 8,356,129 8,487,471
hool ca tur MIiiage Rate
Sta te Education Tax (SET) 6.00000 47,099 47,842 48,595 49,360 50,137 50,925 51,725 52,537 53,361 54,197 55,046
School Operating Tax 17.98380 141,171 143,396 145,655 147,948 150,275 152,637 lSS,034 157,468 159,938 162,44S 164,989
School Total 23.9838 188,270 191,238 194,251 197,308 200,412 203,562 206,759 210,004 213,298 216,642 220,035
ocal Millage Rate
County Museum 0.32200 2,528 2,568 2,608 2,649 2,691 2,733 2,776 2,819 2,864 2,909 2,954
County Veterans 0.07150 561 570 S79 588 597 607 616 626 636 646 656
Senior Citzens Services 0.49990 3,924 3,986 4,049 4,113 4,177 4,243 4,310 4,377 4,446 4,516 4,586
Central Dispatch 0.29999 2,3S5 2,392 2,430 2,468 2,507 2,546 2,S86 2,627 2,668 2,710 2,7S2
Community College 2.20340 17,296 17,569 17,846 18,127 18,412 18,701 18,995 19,293 19,596 19,903 $ 20,21S
M.A.I.S.D 4.75410 37,319 37,907 38,505 39,111 39,726 40,350 40,984 41,627 42,280 42,943 $ 43 ,616
City Operating 10.07540 79,091 80,338 81,603 82,888 84,191 85,51S 86,858 88,221 89,605 91,009 $ 92,435
City Sanitation 2.99790 23,S33 23,904 24,281 24,663 2S,051 25,445 25,844 26,250 26,662 27,080 $ 27,504
Hackley library 2.39970 18,837 19,134 19,436 19,742 20,052 20,367 20,687 21,012 21,342 21,676 $ 22,016
MPS Sinking 0.99810 7,83S 7,958 8,084 8,211 8,340 8,471 8,604 8,739 8,877 9,016 $ 9,157
County Operating 5.69780 44,727 45,432 46,148 46,874 47,612 48,360 49,119 49,890 50,673 51,467 $ 52,273
Local Total 30.3198 238,007 241,759 245,567 249,433 253,356 257,338 261,380 265,483 269,647 273,874 $ 278,164
Community College Debt 2,669 2,711 2,754 2,797 2,841 2,886 2,931 2,977 3,024 3,071 3,119
Hackley Debt 0.45320 3,558 3,614 $
3,671 $
3,728 $
3,787 $
3,847 $
3,907 3,968 $
4,031 4,094 4,1S8
MPS Debt · 1995 3.86000 30,301 $ 30,778 31,263 $ 31,755 $ 32,255 $ 32,762 $ 33,276 $ 33,799 $ 34,329 $ 34,867 35,413
MPS Debt· 2009 3.50000 27,475 $ 27,908 28,347 $ 28,794 $ 29,246 $ 29,706 $ 30,173 $ 30,646 $ 31,127 $ 31,615 $ 32,110
Total Non-Capturable Taxes 8.1532 64,002 $ 65,011 66,035 $ 67,074 $ 68,129 $ 69,200 $ 70,287 $ 71,390 $ 72,510 $ 73,647 $ 74,800
1
Assumes J" annual increase for Inflation
$ 498,199
Total Tax Increment Revenue (TIR) Available for Capture S 426,277 $ 432,997 $ 439,818 $ 446,741 $ 453,768 $ 460,900 $ 468,139 $ 475,487 $ 482,946 $ 490,516
Note·
For the purpose of Table 2 the new taxable value is e!stimated based on 40% of a total overal investment of $19,000,000 divided over the three years estimated for construction of the project
Z:\2021\210653\WORK\Rept\Brownfield Plan Amendment\TIF Tables\TB 1 TBL02 and TBL03_TIF_ harbor 31 local only.xlsx
Table 2 - Estimate of Total Incremental Taxes Available for Capture 3 of 3
Viridi an Shores, Muskegon, Muskegon County, Michigan
Estimated TalCable Value (TV) Increase Ra te:
I Plan Vea~! 23 i 24 i 25 1 26 I 27 TOTAL I
Calendar Year 2043 2044 2045 2046 20"7
Base Taxable Value s 400,000 $ 400,000 s 400,000 s $ 400,000 400,000 s
Estim ated New TV $ 9,717,945 s 9,863,714 $10,011,670 $10,314,273$ 10,161,845 $
1
Incremental Diffe rence (New TV- Base TV) $ 9,317,945 $ 9,463,714 $ 9,611,670 $ 9,761,845 $ 9,914,273 $
~rhonl Canture Millage Rate l
State Education Tax (SET) 6.00000 $ 55,908 $ 56,782 $ 57,670 $ 58,571 $ 59,486 $ 1,245,721
School Operat ing Tax 17.98380 $ 167,572 $ 170,194 $ 172,854 $ 175,555 $ 178,296 $ 3,733,801
School Total 23.9838 $ 223,480 $ 226,976 $ 230,524 $ 234, 126 $ 237,782 $ 4,979,522
~oca ure MlllneRate I
County Museum 0.32200 $ 3,000 $ 3,047 $ 3,095 $ 3,143 $ 3,192 $ 66,854
County Veterans 0.07150 $ 666 $ 677 $ 687 $ 698 $ 709 $ 14,845
Senior Ciuens Services 0.49990 $ 4,658 $ 4,731 $ 4 ,80 5 $ 4,880 $ 4,956 $ 103,789
Centra l Dispatch 0.29999 $ 2,795 s 2,839 $ 2,883 $ 2,928 $ 2,974 $ 62,284
Community College 2.20340 s 20, 531 s 20,852 $ 21,178 s 21,509 $ 21,845 $ 457,470
M.A.I.S. D 4.75410 $ 44,298 $ 44,991 $ 45,695 $ 46,409 $ 47,133 $ 987,047
City Operating 10.07540 $ 93,882 $ 95,351 $ 96,84 1 $ 98,354 $ 99,890 $ 2,09 1,857
City Sanitation 2.99790 $ 27,934 $ 28,371 $ 28,815 $ 29,265 $ 29,722 $ 622,425
Hackley library 2.39970 $ 22,360 s 22,710 $ 23,065 $ 23,425 $ 23,791 s 498,226
MPS Sinking 0 .99810 $ 9,300 s 9,446 s 9,593 $ 9,743 $ $ 207,226
9,895
County Operating 5.69780 $ 53,092 $ 53,922 s 54,765 $ 55,621 $ 56,490 $ 1,182,979
Local Tota l 30.3198 $ 282,518 $ 286,938 $ 291,424 $ 295,977 $ 300,599 $ 6,295,002
!PJ,. .. .r,. .. 1i ,..,.ble MIiis••~ MIiiage Rate I
Community College Debt 0 .34000 $ $
3,168 $
3,218 3,268 $ $
3,319 $
3,371 70,591
Hackley Debt 0 .45320 $ $
4,223 $
4,289 4,356 s $
4,424 $
4,493 94,093
MPS De bt· 1995 3.86000 s 35,967 $ 36,530 $ 37,101 s 37,681 $ 38,269 $ 801,414
MPS Debt· 2009 3.50000 $ 32,613 $ 33,123 $ 33,641 $ 34,166 $ 34,700 $ 726,671
Tota l Non •Capturable Taxes 8.1532 $ 75,971 $ 77,160 $ 78,366 $ 79,590 $ 80,833 $ 1,692,769
1
Assuml!.S 1% annual Increase for Inflation
Tota l Tax Increment Revenue (TIR) Ava Hable for Capture S 505,998 $ 513,914 $ 521,948 $ 530,103 $ 538,381 $ 11,274,525
Note·
For the pu rpose of Table 2 the new taxa ble value Is e!stimated based on 40% of a total overal Investment of $19,000,000 divided over th e three years est
Z:\2021\210653\WORK\Rep t\Brownfield Plan Amendment\TIF Tables\TB 1 TBL02 and TBL03_TIF _ harbor 31 local only.xlsx
Table 3
Tax Increment Revenue Reimbursement Allocation
Table 3 - Estimate of Total Incremental Taxes Available for Reimbursement 1 of 2
Viridian Shores, Muskegon, Muskegon County, Michigan
Ont.loper
W1Jmum
l oul 3,919,630
$4,0il,CIIO
MS r
I I ;JU I l!)?.i I >,)U I ms I hl!6 I ?OU I wu I ~0?9 I JO)!) I JOH I :-on I ;,,;u I w._;.i I ?OJ ~ I 1,rn, I
200,412
To1.ils.t.1tclnu,ment1IRtven1.1! s s 63,l7l s 117,018 s 166,0S l $ 168,697$ 111,]r.t $ 114,07$ $ 176,830 $ 179,6J7 $ 181,465 $ l 85,l.t6 $ I U,270 $ 19 1,23! $ 194,Ul $ l.97,303 $
Smc lk-fidd llt.lkw!~t f ~ ISO',!, of SlT1 s I 11.un
$ 200,412
SU t t TIRAvalll b!tfor Rtlmbur11 ment s 6 ],]1) $ 117,038 s 166,05 2 $ 10,sn s 171,361 $ 174,075 $ 176,130 $ t n,,n $ 111,4'S $ 115,3.(6 $ I H,170 $ 191,231 $ 194,U I 197,JOI $
249,UJ 2B,356
s $ 1 13,H.0 216,61 1 220,062 223,~5 227,0SO H0,668 2H,3 10 238,007 24 1,7S9 245,567
.....
Toi~ toe.i i 1ncttmcnlill Rt~'l!nvt! to,115 10 ,957 209,920
10,000 10.000 10.00, 10,000 10,000
IAA Mm'ni1tr1U-• ru
llt'll\bomood ( ntcrpriH 2 - INUI t, , AbiittlMnl
500
,IQ,057
$
$
39,551 $
u,1,
10.000
63,918
,10,C,,O
9,4,960
"""'
106,US
96,, u
10,0CO
IOl,,315
H,315
10,C,,O
110,0 ll
100,0)1
JO.COO
111,TI)
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113,5-IO
217,oao
10,000
U S,lU
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111, ISS
224,1 10
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Ut,007
ll0,179
231,759 $ 215,5'7 $ 219,OJ $ 2O ,u,
l ee.ii TI R AV1 ib ble fo, Rtlmbuntmtnl
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' ' HI.OU $
101,'30 .$ 274,107
'
01al Sta1e &. lo uolTl1'lwallable 111,017
DEVELOPER
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1,H.S.000 J,741,667 5 1,055,411
s
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1.SCU,051 1,563,110
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s s s s s 1J9,4JJ 10156 s s s
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131,759
91,551 s
...,351 7(,,597 s6.S,159 s " " s s
s'
JJ,,u1 Jll,1'7 JlJ.,(i/6 124,66,
Tota l Non Cn-A1onment:al Rtlmbu n ement 11bnct
1,746. IW
s
17,0J4
J,111,751 s
101,771
1,JS!.169 s 1,so.,,og1 '' 1,56&.110 1,59),.tOJ s 1,611.01' s 1,514,719 51,411,011 51.311,471 51,1'1,570 51,061,791 $ 1,911.515 5 1, n J.369 5 1.603,.SJJ 51,..,JJ,416
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CLEANUP CRIURIA COMPARlSOtl FOR SOlts
UHIT A·VlRlotAHSHORES
150\JtRJDtAtlORIVE
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MICHIGAN
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Chemical Abstract Service Number (CASlt) 71432 100414 91576 75092 91203 "'
127184 108883 79016 95636 108678 75014 1330207 Various
Sample ID Sample Date ScreenDepth(bgs) voes
Recent Groundwater Samples
MW-106s 12/8/20 1.7·6,7' <1 <1 <1 <1
11 '" ID JJ 1D/MJ:1.7 ID
P.c1u'liHtIIHCfU U • ,US•ll >IG
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YEAR:~2=0~12~ - - - -
= 500' ~EDR'
YEAR: _,2=0=09' - - - - - - -
= 500' ~EDR'
YEAR: _,2=0=06" - - - - - -
= 500' ~EDR'
YEAR: _1'-"9"'"94,!...__ _ __
= 500' ~EDR'
YEAR: _1,_,,9=86" - - - - ~
= 500' ~EDR'
YEAR: _ 1!..29.!...!
77_ _ _ __
= 500' ~EDR'
YEAR: ~=------
1969 if N
= 500' ~EDR'
INQUIRY#: 5625504.8
YEAR: ~=-----
1962 iN
= 500' ~EDR'
YEAR: 1955 iN
= 500' ~EDR'
YEAR: 1938
= 500' ~EDR'
DDA BUDGET WORKSHEET FOR FY 2020-21
FY2020-21 BUDGET FY2020-21 ACTUAL
Revenues FY2018-19 ACTUAL FY 2019-20 -ACTUAL AMENDED APRIL 30, 2021
Tax Increment $ 1,069,486.00 $ 924,457.00 $ 490,931.00 $ 490,931.00
Reimbursement - State $ - $ - $ -
Event Revenue* $ 96,200.00 $ 18,422.00
Trans From General Fund $ - $ - $ -
Interest Income $ 521.63 $ 263.00 $ 100.00 $ 5.00
Fundraising Revenue** $ 2,000.00 $ 75,000.00 $ 27,300.00
BID Income (or $50,000 levy) ** $ 132,432.45 $ 112,653.00 $ 50,000.00
TIFA $ - $ - $ -
Form er Mall Brownfield Income (GF) $ - $ - $ -
Total $ 1,070,007.63 $ 1,059,152.45 $ 774,884.00 $ 586,658.00
Expenses FY2018-19 ACTUAL FY 2019-20 FY 2020-21 FY 2020-21
Busine ss Dev. Manager Wages $ 71,924.00 $ 73,781.00 $ 58,544.00
Trans to GF - Marketing, Events, Overhead $ - $ - $ -
FICA (7.65%) $ 5,457.00 $ 5,848.00 $ 4,711.00
Workers Comp (2%) $ 394.00 $ 410.00 $ 363.00
Insurance $ 1,728.00 $ 7,748.00 $ 4,066.00
Residency Bonus (4%) $ - $ 2,743.00 $ -
Life Insurance (0.24%) $ 269.00 $ 270.00 $ 251.00
401(k) (6%) $ 7,853.00 $ 8,000.00 $ 5,710.00
Total Salaries/Benefits $ 87,625.00 $ 98,800.00 $ 73,645.00
Walkability Improvements $ - $ - $ -
Streetscape/Wayfinding / Walkability $ - $ - $ -
Public Art (Downtown Initiative) $ - $ - $ -
Landscaping $ 50,000.00 $ 30,000.00 $ 3,000.00
Snow Removal $ 62,629.00 $ 65,000.00 $ -
Fa~ade Program $ - $ - $ -
Financial Incentives $ - $ - $ -
Downtown Park(s)**** $ 5,759.00 $ 9,000.00 $ 3,338.00
Marketing/Promotions $ 5,000.00 $ - $ 25,000.00 $ 5,492.00
Blight $ - $ - $ -
Office Space and Misc Operating $ 5,930.11 $ 17,005.00 $ 17,000.00 $ 7,157.00
Total Recurring Costs $ 10,930.11 $ 135,393.00 $ 146,000.00 $ 18,987.00
LC Walker Phase 1 $ 750,000.00 $ - $ - $ -
LC Walker Phase la $ 250,000.00 $ - $ - $ -
Morris Street Lot $ 20,000.00 $ - $ -
Taste of Muskegon $ - $ 2,600.00 $ 2,192.00
Lakeshore Art Festival $ 159,279.00 $ 25,401.00
Projects and Events $ 1,000,000.00 $ 20,000.00 $ 161,879.00 $ 27,593.00
County Debt Payments ($1M) $ 865,928.00 $ 134,073.00 $ -
LC Walker HVAC/Roof******* $ - $ 208,051.00 $ 208,051.00
Other Debt Payments (smartzone) $ - $ - $ -
Total Debt Payments $ 865,928.00 $ 342,124.00 $ 208,051.00
Total Expenses $ 1,010,930.11 $ 1,108,946.00 $ 748,803.00 $ 328,276.00
!Net Rev/Expenses 59,077.52 I$ (49,793.55)1 $ 2G,os1.oo 1 $ 258,382.00 1
!cumulative Cash Reserves 59,077.52 I $ 9,283.97 I$ 35,364.97 I$ 293,746.97 I
*Event Revenue $65,550 Ta ste of Muskegon and $96,200 Lakeshore Art Festival
** Fundraising Revenue - Taste of Muskegon $12,000, Cookie Crawl $5,000 and Lakeshore Art Festival $70,000
**** ODA Maintains Splash Pad and Dog Park
*******10-year debt contribution at $215,000/yr for 10 years related to new roofing, dehumidification, and boiler at LC
O:\Planning\COMMON\DDA- BRA\DDA - BRA 2021- current year\051121 DDABRA meeting\Proposed DDA Budget For FY2020-21
Muskegon Downtown Development Authority
Agenda item V./B for 5-11-21
Request to help fund Social District common area
Requesting party: City Economic Development
Outline of request: Staff is asking the DDA board to authorize staff to spend no more than
$4,000 to create a Social District gathering space at Second and Western.
Background: The owners of Burl & Sprig in moving into their new location on Second Street (old
Boar's Belly) approached downtown, the city and the chamber on creating common area space
at Second and Western. The site is owned by the Downtown Muskegon Development Corp. and
B&S has an agreement with the DMDC to use the back 30 feet of the site for a portable stage.
B&S has a plan to refurbish the sand and put up picnic tables, lights and some overhead
canopies for shade. The estimate for materials and electric is $8,000. City DPW will be providing
the sand.
Staff comments: Staff likes the idea of adding excitement and activity east of Western-Third.
Last summer, the "party" was always west of Western-Third. If approved by the DDA, I would
go to the BID and ask for authorization for the other $4,000. Right now, you have roughly
$30,000 in surplus funds for the 20-21 fiscal year with one month to go. If funding is secured
and materials purchased, B&S, the chamber and downtown would organize a volunteer event
to install the elements. This would be similar to the downtown cleanup we all did late spring
last year.
Staff recommendation: To authorize up to $4,000 to support materials for a Western and
Second common area in the Social District.
Suggested motion: I move to authorize staff to spend up to $4,000 to assist in funding the
materials for a common area in the Downtown Muskegon Social District at Second and
Western.
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beach cost
--------------·-- ------ _" ___
garden lighting $3,398.00
sun shade tarps $1,620.00
---- --- ----------
6" x 22' poles $500.00
---- ---~--~---
electrical service $1,800.00
-----
consumers
auger rental $250.00
--·-- --
$7,568.00
1
Muskegon Downtown Development Authority
Agenda item V /C for 5-11-21
DDA board discussion on 2021-22 budget
Requesting party: DDA manager
Outline of request: Staff would like to have the DDA board members look at their mission and
2019 strategic plan to direct a discussion on what should be done in the upcoming 2021-22
fiscal year budgeted with anticipate unexpended funds.
Background: Putting aside the Business Improvement District and events revenues and
expenditures in your DDA budget, the DDA budget appears to have approximately
$75,000-$100,000 in unexpended funds next fiscal year for the DDA to decide. BID is a wash
revenues vs. expenditures and the events are a wild card that will be known by mid July, with
the completion of the Lakeshore Art Festival.
Outside of BID and events, DDA tax increment revenues: $368,744
Known expenditures:
Wages/personnel: $98,800
Marketing/promotion: $20,000
Office/misc.: $17,000
Downtown parks: $9,000
Streetscape/decorations: $15,000
Mercy Health Arena debt: $130,000
Total: $289,800
Unexpended funds: $78,944
Fund balance: Approximately $25,000
Staff comments: Board members should come to the May meeting with ideas on how the DDA
funds should be expended. There has been plenty brought to the DDA and board members
have their own ideas. The discussion and consensus building will be helpful for staff to provide
a proposed DDA budget in June.
Suggested motion: None
Muskegon Downtown Development Authority approved
mission statement February 2019:
''Our mission is to allocate our
resources in support of
development, promotions, and
events toward creating a
thriving downtown and its
waterfront where all people can
live, work, play and stay.//
Strategic Plan for the Muskegon Downtown Development Authority
May 14, 2019
Situation Analysis
Downtown Muskegon - and the entire Muskegon community- is in the midst of a historic
transformation. For downtown, that is a new era of a mixed-use, new urbanist, livable, and
walkable downtown where everyone can work, live, play and stay. Starting with the 2001
closure of the Muskegon Mall, its demolition, and the development of the Imagine Muskegon
plan in 2003, downtown has gone through a tremendous change. Much of that change has
been accelerated in the past three to five years. There has been more than $300 million in
downtown investment since the demolition of the Muskegon Mall, and another $100 million in
investment and development is currently underway.
Just as the downtown is being transformed, the management of downtown Muskegon is also
going through a progression. Due to Downtown Development Authority bonds for a third
anchor of the Muskegon Mall in 1990 - which was never built - the Downtown Development
Authority was paying off debt until the end of 2017. Downtown Muskegon Now - a small non-
profit of downtown stakeholders - formed in 2001 under another name to provide traditional
downtown management and promotion. Downtown Muskegon Now's ability to finance
downtown services and improvements were enhanced with the formation of a Business
Improvement District in 2016. With the payment of the Downtown Development Authority
bonds and a new substantial public funding source for downtown development, promotion and
management, the Downtown Development Authority recently took its rightful leadership
position in downtown's operations and future vision. Downtown Muskegon Now agreed to
merge into a rejuvenated Downtown Development Authority at the end of 2018.
Prior to deciding to merge, the Downtown Muskegon Now board -- with the participation of
Business Improvement District and Downtown Development Authority board members -- went
through a three-year downtown strategic planning process in April 2018. The three strategic
initiatives or priorities that came out of that planning session were to:
1. Promote downtown Muskegon as a place to live.
2. Strengthen the connection between the historic downtown and the downtown
waterfront north of Shoreline Drive.
3. Develop an overall downtown marketing plan for all stakeholders to use.
As the Downtown Development Authority ramps up its oversight of downtown management
and expenditure of significant Downtown Development Authority revenues in the district, the
Downtown Development Authority board also went through a similar strategic planning
process. Suzanne Velarde of Velarde Marketing-who was hired by Downtown Muskegon Now
for its strategic planning process - facilitated a planning session with the Downtown
Development Authority board at its March 2019 meeting. This report is a result of that session.
Downtown Development Authority Mission Statement
The mission of the Muskegon Downtown Development Authority is to allocate resources to
support development, promotion and events to create a thriving downtown, including the
waterfront, where all can live, work, play and stay.
Short-Term Strategies
The following strategies represent the Muskegon Downtown Development Authority's priorities
for the 2019/2020 fiscal year (July 2019 through June 2020):
Downtown Marketing
• Support Current Marketing Efforts - Continue to fund and support current marketing
activities that were previously developed and managed by Downtown Muskegon Now.
These activities include the Downtown Muskegon Now website, social media, email
marketing, maps, billboards, print advertising, radio advertising, and geofencing efforts
until a longer-term marketing plan is developed.
• RFP/Contract with Marketing Agency- Distribute a request for proposal and engage in
a selection process for a marketing agency that will be contracted to develop and
implement a Muskegon Downtown Development Authority marketing plan.
• Coordinated Marketing Effort - Muskegon Downtown Development Authority
marketing should complement and be coordinated with other community groups and
organizations to encourage a consistent message for Muskegon. Other community
marketing organizations include, but may not be limited to:
o Muskegon County Convention and Visitors Bureau
o Muskegon Lakeshore Chamber of Commerce
o Government entities, including the City of Muskegon and Muskegon County
o Non-profit institutions (i.e. museums, Community Foundation for Muskegon
County, libraries, Nelson Neighborhood Association)
o Downtown event promoters
o Muskegon schools
Connecting Downtown to the Waterfront
• Work with the City of Muskegon to support initiatives that create a stronger connection
between the core downtown area and the downtown waterfront. Specific activities may
include:
o Developing a plan for a pedestrian-friendly crossing of Shoreline Drive at Third
Street.
o Enhanced lighting and streetscaping on pedestrian routes that go from the south
side of Shoreline Drive to the waterfront. Priority should be given to established
crossings (i.e. 3rd Street and 7th Street).
Wayfinding Signage
• Support the City of Muskegon's improvement and expansion of wayfinding signage
throughout the downtown, particularly signage that directs people to downtown parking
areas.
Financial Incentives
• Loan Program - Provide financial support in the form of a low-interest loan program for
new downtown developments, new downtown businesses or existing downtown
businesses looking to expand within Downtown Development Authority boundaries.
Preference should be given to retail businesses and businesses that expand the socio-
economic diversity of downtown Muskegon.
• Grant Program - Offer a limited number of grant opportunities to area non-profits
and/or public improvement initiatives (i.e. public art projects).
• Facade Program - Implement a fa~ade program that offers financial incentives and
design assistance to downtown businesses and homeowners who are seeking to
improve/renovate the exterior of their building.
Lighting/Streetscaping
• Support efforts to enhance lighting and streetscaping on streets adjacent to the core
downtown.
Long-Term Strategies
The following strategies represent the Muskegon Downtown Development Authority 's priorities
for the 2020/2021 and 2021/2022 fiscal years (July 2020 through June 2022).
In general, the DOA intends to concentrate on developing and promotin g varied living options,
pursuing unique urban retailers in the digital Amazon world, creating entertain ment-foo d-
beverage options to enhance a dynamic nightlife, and seeking recreational opportun ities to
complime nt the Muskegon Lakeshore.
Promotin g and developing
• Living - Already offering subsidized housing for seniors and families, downtow n needs to
develop various market rate, student, "missing middle" and workforce development
housing options within the ODA district. Both marketing and financial incentives of the
short-term strategies can support promotio n of living downtow n.
• Retail Business Attraction - Research and Strategic Planning - Invest in a market study
to research, analyze and prioritize the types of retail businesses to attract to
Muskegon's downtow n. This work should also include the development of an attraction
program, as well as urban retail training for owners and managers, and customer service
training for employees of businesses within the Downtow n Development Authority 's
boundaries. One specific opportun ity would be to attract an outdoor recreation
outfitters or urban outfitters into the downtow n to serve the Lakeshore region, as part
of the Muskegon Lakeshore Chamber of Commerce's 2019-2020 Take It Outdoors
initiative.
• Entertain ment - Building on the strengths of the LC. Walker Arena, Fraunthal Center
and The Block to name three, the DOA will continue to attract varied and diverse food
and beverage businesses and market downtow n Muskegon's special events, festivals
and activities. This will support the opening of the new convention center.
• Recreation - Two specific recreational pursuits can be further developed in the DDA
district - bicycling and paddling - due to the Lakeshore Trail and the Muskegon Lake
waterfron t. Recreational improvements could include a children's playgrounds, a skate
park and a bike park. Others specifics might include:
• Connecting Downtow n to the Waterfro nt - See description in short-term strategies
above.
• Expanded Bikeshare Program - Support the expansion of the downtow n bikeshare
program that is scheduled for launch in summer, 2019. The Downtow n Development
Authority 's role may include:
o Investment in additional bikes
o Investment in additional bike rental locations to expand the service outside
the core downtow n area (i.e. Lakeside, Pere Marquett e Beach)
o Financial support for ongoing management and upkeep of bike equipment
and rental locations
Other Strategies
• Improve Downtown 's Walkability / Accessibility - Work with the City of Muskegon to
support improved walkability and handicapped accessibility throughout the downtown
area, including sidewalks and access to businesses, parks and other public spaces.
• Wayfinding Signage - See description in short-term strategies above.
Addendums:
• Addendum #1 - List of strategic priorities/voting results from March 2019 Muskegon
Downtown Developme nt Authority Board strategic planning session.
• Addendum #2 - Letter from Downtown Muskegon Now to the City of Muskegon and
Muskegon Downtown Developme nt Authority dated December 14, 2018 regarding
endorseme nt of organizational transition and items for consideration in future Downtown
Developme nt Authority activities.
• Addendum #3 -Summary of findings from Downtown Muskegon Now strategic planning
session -April 2018.
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