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CITY OF MUSKEGON
DOWNTOWN DEVELOPMENT AUTHORITY
BROWNFIELD REDEVELOPMENT AUTHORITY
DATE OF MEETING: Tuesday, February 13, 2024
TIME OF MEETING: 10:30A.M.
PLACE OF MEETING: City Hall Commission Chambers,
933Terrace,Muskegon,MI
AGENDA
I. Roll Call
II. Approval of the meeting minutes of January 9, 2024
III. Public comments on agenda items
IV. BRA agenda items - Jake Eckholm
A. Adelaide Pointe- Reimbursement Request #8
V. DDA agenda items- Dave Alexander
A. Public presentation: Semi-annual DDA report and public engagement
B. DDA financial report
C. Shaw Walker Development Agreement for approved EGLE Loan (Jake Eckholm)
D. 2024 Legacy Project events Trunk-and-Treat, GLOW and New Years Ball Drop
(Terry and Joy Puffer)
E. Discussion on potential changes to the DDA Fa9ade Grant program
VI. Adjourn
AMERICAN DISABILITY ACT POLICY FOR ACCESS TO OPEN MEETING OF THE CITY COMMISSION AND ANY
OF ITS COMMITTEES OR SUBCOMMITTEES
To give comment on a live-streamed meeting the city will provide a call-in telephone number to the public to be able
to call and give comment. For a public meeting that is not live-streamed, and which a citizen would like to watch and
give comment, they must contact the City Clerk's Office with at least a two-business day notice. The participant will
then receive a zoom link which will allow them to watch live and give comment. Contact information is below.
For more details, please visit: www.shorelinecity.com
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 TTYffDD: 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
January 9, 2024
Chairperson M. Bottomley called the meeting to order at 10:33 AM and roll was taken.
I. MEMBERS PRESENT: B. Tan-ant, K. Reid, H. Sytsema, A. Boyd, M. Bottomley, B.
Hastings, S. Black, J. Moore, D. Pollock, J.Seyferth
MEMBERS ABSENT: M. Kleaveland, J. Wallace
STAFF PRESENT: J. Hines, Development Analyst, S. Wilson, Treasurer, W.
Webster, development services, D. Alexander, community
engagement, J. Eckholm, Director of Development Services
OTHERS PRESENT: K. Pershbacher
II. Welcome New Member-Martha introduced the newest member, Andrew Boyd who
gave background
III. APPROVAL OF MINUTES
Motion by K. Reid second by B. Hastings, to approve the regular meeting minutes for December,
2023Voice vote, all approved.
IV. PUBLIC COMMENTS ON AGENDA ITEMS - No Public Comments
V. BRA agenda items - Jake Eckholm
A. Adelaide Pointe- Reimbursement Request #7 - Jake and Kirk Pershbacher gave
background and update to support request #7 reimbursement. All costs are
eligible for reimbursement under Act 3 81
B. Hastings made a motion to approve the 7th request for reimbursement submitted
by Adelaide Pointe QOZB, LLC for eligible activities. J. Moore supported
Roll Call: Yay: B. Tarrant, K. Reid, H. Sytsema, A. Boyd, M. Bottomley, B.
Hastings, S. Black, J. Moore, D. Pollock, J. Seyferth
Nay: None
VI. DDA agenda items- Dave Alexander
A. DDA financial rep01i - Dave updated the financial rep01i through December 31,
2023.
J. Seyferth made a motion to accept the December 31, 2023 DDA and events
financial statement. H. Sytsema supported.
Roll Call: Yay: B. Tarrant, K. Reid, H. Sytsema, A. Boyd, M. Bottomley, B.
Hastings, S. Black, J. Moore, D. Pollock, J. Seyferth
Nay: None
B. Farmers Market request for funds City Clerk is requesting the DDA board to
approve expenditures of event funds for Muskegon Farmers Market equipment in
the amount of $42,829 to include oven replacement, snow stop, picnic tables,
cabinets and kitchen mixers, etc.
Bob Tarrant made a motion to approve the expenditure of $42,829 in event funds for
eight items to support the Muskegon FarmersMarket. Supported by H. Sytsema.
Roll Call: Yay: B. Tarrant, K. Reid, H. Sytsema, A. Boyd, M. Bottomley, B.
Hastings, S. Black, J. Moore, D. Pollock, J. Seyferth
Nay: None
C. Fa9ade Grant requests - Leonard Building and West Side A1i Collective
Staff has received two applications for DDA fa9ade grants that need approved
because they are more than $10,000. The Leonard is requesting funds to install a
blade-type exterior sign and requesting $15,000.
J. Seyfe1ih made a motion to approve Corey Leonard's request for $15,000 in a
fa9ade improvement grant. J. Moore supp01ied.
Roll Call: Yay: B. Tarrant, H. Sytsema, A. Boyd, M. Bottomley, B. Hastings, S.
Black, J. Moore, D. Pollock, J. Seyferth
Nay: K. Reid
238 Houston is requesting $15,000 reimbursement for siding on the first and second
floors of a building that was damaged by a fire in 2019.
Bob Tarrant made a motion to approve the West Side Art Collective LLC request for
$15,000 in a fa9ade improvement grant. Supported by B. Hastings.
Roll Call: Yay: B. Tarrant, K. Reid, H. Sytsema, A. Boyd, M. Bottomley, B.
Hastings, S. Black, J. Moore, D. Pollock, J. Seyferth
Nay: None
D. Recap of holiday season downtown (discussion only)
E. 2024 meeting schedule (information only)
VII. Adjournment at 11 :53AM
BRA Agenda Item IV.A
Muskegon Brownfield Development Authority
Agenda Item IV-A for 2-13-24
Request for Reimbursement (8th Request)- Adelaide Pointe Project
Requesting party: Adelaide Pointe QOZB, LLC
Outline of the request: Adelaide Pointe QOZB, LLC has submitted their 8th request for
reimbursement for eligible activities.
The full document can be found at: Adelaide-Pointe-QOZB-LLC-Reimbursement-Request-8-rev-
1302024.pdf (muskegon-mi.gov)
Background: The Adelaide Pointe Project is a 35-acre mixed use waterfront development
project including winter boat storage, marina space, In/Out forklift boat storage,
commercial/retail, and up to 400 housing units. The request for reimbursement was submitted
on (date to come) on behalf of the developer for costs related to the brownfield eligible
activities that was approved in the 3rd Amendment to the Brownfield Plan Amendment adopted
by the City of Muskegon BRA and City of Muskegon Commission May 9, 2023 and
May 23, 2023. The BRA is responsible for formally approving all reimbursement requests for
Brownfield TIF's.
Staff comments:
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/ MSF Non-Environmental Activities and Local Only eligible activities.
Jeff Salowitz and city staff have reviewed all of the invoices submitted for the Reimbursement
Request. Mr. Salowitz and staff have approved the reimbursement request
This request will not be paid out now, actual payments will be made as tax capture becomes
available. Additional requests will be made in the future as work is currently being completed
for this project.
Staff recommendation: City staff recommends the Adelaide Pointe QOZB, LLC's 8th request for
reimbursement for eligible activities for approval.
Suggested motion: I move to approve the 8th request for reimbursement submitted by
Adelaide Pointe QOZB, LLC for eligible activities.
2960 Interst ate Parkway
Ka lamazo o, M ic hi ga n 49048
269.3 42.1100 I fi shbeck .co m
January 30, 2024
Project No. 201515
Jake Eckholm
Economic Development Director
City of Muskegon
933 Terrace Street
Muskegon, Ml 49440
Request for Reimbursement #8
Adelaide Pointe QOZB, LLC, 1204 West Western Avenue, Muskegon, Michigan
By my signature below, it is my professional opinion the expenses described in this Request for Reimbursement
#8 for the above-referenced property represent eligible expenses under the Brownfield Redevelopment Financing
Act (1996 PA 381), as amended, and that the activities have been performed on the eligible property.
All activities described in the reimbursement request have been completed as described in the 3rd Amendment to
the Brownfield Plan adopted by the City of Muskegon BRA and City of Muskegon Commission May 9, 2023 and
May 23, 2023, respectively.
From 2021 through the present, Adelaide Pointe QOZB, LLC (or related entities) has funded the completion of
various activities as outlined in the 3rd Amendment to the Brownfield Plan and this request. The total amount
being requested as part of this Request #8 is $904,885.52. Note the total of $904,885.52 includes the removal of
$7,439.75 from the total (local only) to correct an error in Reimbursement Request 1 and removal of $705.10
(local only) from the total to correct an error identified in Reimbursement Request 4. The $904,885.52 request
breaks down further into $625,392.69 in MSF/EGLE Pre-Approved eligible activities and $279,492.83 in Local Only
eligible activities. A description of the work activities completed and which eligible categories the work was
completed under is shown on the enclosed table . Invoices for the eligible activities detailing the work completed
are provided along with proof of payment for each of the invoices.
Additional work is currently being completed for this project so additional reimbursement requests will be sent in
the future.
If you have any questions or require additional information, please contact me at 616.464.3956 or
kperschbacher@fishbeck.com .
Sincerely,
Kirk W. Perschbacher, E.P.
Senior Brownfield Specialist
Eliciblc Activities Reimbu rsement Table
Adelaide Pointe QOZB, LLC
1148 and 1204 West West cm Avenue, Muskegon, Mich lean
2023 3rd Brownfield Pl:in
Amendment Totals- :~n~::~;;:~~~d
O I r .bl
~~ I Reimburse ment Rcq uc~ 8
MS F/EGU: Eligible Activities
I Rcimbursemc~t Request 8
Local Only Ellc1ble Actlvltles
I Rem:iining Budcets
EGU:/MSF
I Rc m:iining Budcet Local
Only Ellglblc Activities
EGLE/MSF Eligible Costs nyE1g1 eCosts
Contractor
I Ocscrlption I lnvolce D:ite I Invoice No. I
1nvolce Amount
Tot.ii Due C:.re Activities so $1,760,000
Non Environ mental Activities
Stte Prepar.atlon
Fouodot;o, Wo,k to Add,m Special SoH Coo<em, (Spedali,cd
Foundations)
IRedline Excavating, LLC
I Speclall"d Fouodat;oo Worl<-
U/26/2023 193601 $3,520.00 I $905,000.00 I $344,652
OryRackBulldlng
GradJng,LandBalanclng
I $3,520.00
Grading/Land Balancing !Red Linc Excavatinc LLC. I adjacent to DryRackstorace
bulldinitCM Fee
12/26/23 193601 $22,591.25 $1,550,000 $200,000
$22,591.25
I I $398,635.98 $17,062
lnstallatlon of New Electri c
Reloc.itlon of Active Utllities !Consumers Energy I Service Une ;,nd CM Fee
1/3/24 932609 $89,727.00 $350,000 $150,000 I I $260,273.00 I $69,437.03
S89,727.,00
IEdgewater Resources Site Enelneerlne, Marina Design
and CM Fee
1/15/24 4840 $46,123.48
$46,123.48
S!teEnglneering,MarinaOeslgn
Architectural and Engineering Costs IEdcewaterRe$0urces
and CM Fee
U/11/23 4789 $3S,174.97 $500,000 $1,500,000
$35,174.97
S163.20 I $121.39
Site Englncerlne, Marina Design
IEdgew.iterResources 11/2/23 4712 ss2,n4.34
and CM Fee ss2,na.34
!Pub lic lnfl'2Sttucturc
Restroom fixtures for
IFrecd&Vlercck,LLC 7/24/231 11381 $23,000.001
communitybuildinB
I I I $23,000.00
Buildincmateri.ils,
I
Frced&Viereck,LLC I footers/ foundation and
;,rchltecture costs associ;,ted
l/16/241 $79,840.65
I I
Community Buildin&/Oubhousc and Pool with the publlc community
__"911 I I
$1,800,000
I I
$1,628,834
II build!nr.l
BuUdlng materials, geotechnlcal
evaluations and
-
$79,840.55
Freed&Viereck,LLC
II foundations/ footings
~ssoclated with the publlc
community bulldln.lEI
1/23/24 1193 $37,535.24
I I I I $37,535.24
MZH Concrete I Curb and Gutters for Roadways 1/12/24
"" $6,386.80
Public Roadways ltandscape Fonns, Inc,
Red Une Excavating LLC.
I
Street lights for the pubUc
IUtility/Roadways Labor and CM
ro;,dwavs
1/3/24
1/24/24
392755
193612
$139,522.44
$235,850.64
$4,000,000
~- 522.44
I I $2,843,065.63
I Fee
Storm Sewer IRed Une Excavating LLC.
1stonnwaterStructuresandCM
, . 1/24/24 193612 $131,314.56
Tot:il No n-Environment.al Activities
$270,000
S21,593,620 $8,195,000
$235,850.64
$131,314.56 I I $461
Addition.al ltoms
Contingency (15") ]RedlincExcavatlng,LLC I Sea Wa ll Restoration (Ma rl na)I 12/26/231 193601 $9,669.00 $3,239,043 $1,611,750
I $9,669.00
I Sl.198,842 I $1,602,081
Total Addltional Activities $11,006,362 S22,82S,S33
Fishbeck• Brownfield Incentives 10/6/22 415921 $3,487.25 T ·S3.487.25
Adjustments Fishbeck• Brownfield Incentives 1/30/23 420080 $3,952.50 -$3,952.SO
Ashbeck'"'" l Brownfield lncentiveij_ 3/ 26/23 421862 $6,530.90 I -$705.10
Total Reimburseme nt Request $625,392.69 $279,492.83
• s7,439.75 was removed from Request 8 based on acddential duplicated Invoices on Request l
•s1os.10 was removed from Reimbursement Request 8 based on calculation error on Request 4
NOTICE
CITY OF MUSKEGON
INFORMATIONAL
DOWNTOWN DEVELOPMENT AUTHORTY SEMI-ANNUAL MEETING
A semi-annual inf01mational meeting the Muskegon Downtown Development Authority
is scheduled for Tuesday Feb. 13, 2024 at 10:30 a.m. in the city commission chambers at
Muskegon City Hall, 933 Terrace, Muskegon, MI 49440. This is one of two required
informational meetings each year to hear an update on the DDA, its results from 2023
and plans for 2024. The informational meeting is for taxing units, DDA prope1iy owners,
downtown businesses-organizations and the general public. DDA staff will make a brief
presentation and be available for questions as paii of the monthly Downtown
Development Authority-Brownfield Redevelopment Board meeting for February.
Date: Feb. 4, 2024
AMERICAN DISABILITY ACT POLICY FOR ACCESS TO OPEN MEETINGS OF
THE CITY OF MUSKEGON 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
with twenty-four (24) hours 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 Meisch, MMC
City Clerk
933 Terrace Street, Muskegon, MI 49440
(231) 724-6705
Muskegon Downtown Development Authority
Semi-Annual Report
Feb. 13,2024
Financials
The Downtown Development Authority ended its 2022-23 fiscal year in a solid financial position carrying
a $231,880 fund balance forward into the current fiscal year.
Revenues for the 2023-24 fiscal year are estimated to come in at $480,000 from tax increment
collections. That is a 19.6 percent increase due to increased property values and new construction
within the district.
However, DDA expenses also are increasing due to the end of the Muskegon Downtown Business
Improvement District after eight years of special assessments on commercial properties to provide
specific downtown services. Downtown management, marketing, promotion and events had already
transferred to the DDA but with the end of the BID so will downtown snow removal and landscaping
starting in 2024.
The DDA's 2023-24 expenses include $95,000 for personnel costs, $25,000 for streetscape, $19,170 for
landscaping, $64,941 for snow removal, $157,585 for fa~ade improvement grants, $9,000 for parks,
$12,000 for downtown marketing and promotion and $9,000 for office and miscellaneous expenses. In
addition, the DDA continues to support the Trinity Health Arena with annual bond payments of
$130,000 for prior heating-ventilation-air conditioning and roof improvements.
The DDA 2023-24 budget is estimated to have a fund balance carry over of $189,911 going into the next
fiscal year on July 1, 2024. A full year of landscaping and snow removal expenses from the end of the BID
are expected to be covered by larger annual tax increment collections driven by robust increases in
downtown property values and continuation of new development.
Events
The DDA has been the fiduciary of two major downtown annual events - Taste of Muskegon and the
Lakeshore Art Festival -- taken over by the City of Muskegon post COVID. For the summer of 2024, the
city has moved the staff support for those events to the new reformed city Parks and Recreation
Department. The events will be produced with the assistance of city staff by longtime volunteer event
committees. The DDA will remain fiduciary for the two events as a sustainable long-term organizational
plan is contemplated.
The success of Taste of Muskegon and the Lakeshore Art Festival generated fund balance of $169,515 at
the end of the last fiscal year, June 30, 2023. The DDA continues to support the downtown Muskegon
Farmers Market and Kitchen 242 through Taste of Muskegon, contributing $55,409 for equipment and
market-kitchen upgrades since July 1.
Holidays in the City-- Downtown Muskegon's Christmas and New Years holiday events -- was one of the
finest in memory. The holiday lights in Hackley Park and along West Western Avenue continued to be
upgraded with the DOA paying for holiday light pole wraps and contributing to the Legacy Project's
GLOW display on West Western Avenue. A first-year New Years Eve Ball Drop event drew a tremendous
crowd of more than 10,000 revelers. The Legacy Project event has great potential to grow in the future.
Developments
Currently under construction:
• Harbor 31, a $130 million multi-use residential, recreational and commercial redevelopment at
Shoreline Drive and Terrace on Muskegon Lake.
• Adelaide Pointe, a $220 million multi-use residential, recreational and commercial
redevelopment at the far end of West Western Avenue on Muskegon Lake.
• A $13+ million expansion of the Muskegon Museum of Art.
• Redevelopment of the former Huntington Bank tower into Core Plaza - a facility with offices, co-
working space, small retail and food hall tenants and the home of Core Realty Partners
• Boys & Girls Club of The Muskegon Lakeshore's Club House and Neal Family Fitness Facility on
Muskegon Lake was delayed with an arsonist's fire but nearing completion.
• Hackley Center is receiving significant structural renovation to keep the iconic, historic former
school administration building sustainable for generations to come.
\
In the planning stages:
• 880 First Street, the former bank building at First and Clay into housing apartment units
• The former Shaw Walker Building at West Western and Division purchased by Parkland
Properties for a major residential apartment and condominium redevelopment overlooking
Muskegon Lake.
• Lakeview Lofts II and Ill, a continuation of Lakeview Lofts at Western Avenue and Second Street.
• A second residential-commercial building development on West Western Avenue next to The
Leonard.
DDA Facade Grants
The DDA's fa~ade grant program is continuing for its second year in 2023-24. The DDA increased the
pool of grant funds to $100,000 for the fiscal year. So far, the DOA has award the maximum of $15,000
to The Leonard Building at 292 W. Western and the West Side Art Collective at 238 Houston along with
staff approved $9,394 Forrest Tax at 130 E. Apple,
Business changes
New businesses locating in Downtown Muskegon recently include Clove & Crown Boutique, The
Exchange Coffee Shop, The Collective Salon, Hometown Creamery, Chaotic Good holistic therapy, Cajun
Cuisine By Us and Muskegon Axe Throwing. At the same time, Downtown Muskegon has lost Burl &
Sprig distillery, Drip Drop Drink coffee shop and 18th Amendment Distillery.
DDA Agenda Item V.B
Muskegon Downtown Development Authority
Agenda Item V-B for 1-9-24
Acceptance of Financial Statement December 31, 2024
Requesting party: City Economic Development
Outline of the request: Staff is asking the DOA board to review and accept the financial
statements for January 31, 2024.
Staff comments:
There has not been a significant change in the status of the DDA financials since the January
meeting. However, the DOA Financial report for this meeting includes an updated FY23-24
Budget (second column from right) that reflects best information on changes in revenues and
expenses. As budgeted, the ODA would end the fiscal year on June 30, 2024 with a fund balance
of $189,911. You will need to approve two motions, one for the updated budget and the other
for the Jan. 31 financial statement.
Looking at the ODA report, several significant financial events will happen in the third and
fourth quarters of the 2023-24 fiscal year prior to June 30, 2024. The tax increment income has
yet to be posted and is anticipated at $480,000, $80,000 more than initially budgeted but
$80,000 in expected revenues from BID did not materialize. Finally, the $130,000 expenditure
Trinity Health Arena bond payment will be posted later in the fiscal year.
The events financial statement now includes the DDA's approval for expenditures at the
Muskegon Farmers Market and Kitchen 242.
Staff recommendation: To approve the adjusted 2023-24 DOA budget and accept the
December 31, 2023 ODA and events financial statements.
Suggested motions:
1. I move to approve the adjusted 2023-24 fiscal year DDA budget as presented by staff.
2. I move to accept the January 31, 2024 DOA and events financial statements.
DDA FINANCIAL FOR 01/31/2024
FY2023-24 BUDGET FY TOTALS
Revenues FY 2022-23 BUDGET FY2022-23 ACTUAL (updated 2-13-24) JANUARY 31, 2024
Tax Increment $ 321,446.00 $ 401,043.00 $ 480,000.00 $ -
Reimbursement - State $ - $ -
Event Revenue * $ - $ -
Trans From Capital Projects Fund $ - $ -
Interest Income $ - $ 1,139.20 $ - $ 871.83
Fund raising Revenue
BID Income (or $50,000 levy)** $ 17,000.00 $ 17,000.00 $ - $ -
Sponsorship $ - $ - $ -
Former Mall Brownfield Income (GF) $ - $ - $ -
Total $ 338,446.00 $ 419,182.20 $ 480,000.00 $ 871.83
Expenses FY 2022-23 FY2022-23 ACTUAL FY 2023-24 FY 2023-24
Busi ness Dev. Manager Wages $ - $ 75,389.95 $ 42,271.33
Trans to GF - Marketing, Events, Overhead $ - $ -
FICA (7.65%) $ - $ 5,603.75 $ - $ 3,090.38
Workers Comp (2%) $ - $ 424.17 $ - $ 206.24
Insurance $ - $ 11,454.65 $ - $ 12,965.50
Residency Bonus (4%) $ - $ - $ -
Life Insurance (0.24%} $ - $ 317.69 $ - $ 179.96
401(k) (6%} $ - $ 6,822.79 $ - $ 3,797.14
Total Salaries/Benefits $ 98,365.00 $ 100,013.00 $ 95,000.00 $ 62,510.55
Walkability Improvements $ - $ -
Streetscape/Wayfinding / Walkability $ 15,000.00 $ 25,207.87 $ 25,000.00 $ 20,075.00
Public Art (Downtown Initiative) $ - $ -
Landscaping $ - $ - $ 19,170.00 $ 4,548.47
Snow Removal $ - $ 64,941.00 $ 50,092.75
Fa~ade Program $ 15,250.00 $ 157,585.22 $ 52,973.36
Downtown Park(s)** ** $ 9,000.00 $ 4,448.27 $ 9,000.00 $ 839.48
Marketing/Promotions $ 25,000.00 $ 17,135.21 $ 12,000.00 $ 9,420.97
Blight $ -
Office Space and Misc Operating $ 9,000.00 $ 100.00 $ 9,000.00 $ 174.80
Total Recurring Costs $ 73,250.00 $ 46,891.35 $ 296,696.22 $ 138,124.83
Watermark Assistance $ 25,000.00 $ 25,000.00 $ - $ -
Social Bowl $ 34,750.00 $ 34,750.00 $ - $ -
Morris Street Lot $ - $ - $ -
Taste of Muskegon $ - $ -
Lakeshore Art Festival $ -
Projects and Events $ 59,750.00 $ 59,750.00 $ - $ -
County Debt Payments ($1M) $ - $ - $ -
Mercy Health Arena HVAC/Roof******* $ 130,000.00 $ 130,000.00 $ 130,000.00 $ -
Other Debt Payments (smartzone) $ - $ - $ -
Total Debt Payments $ 130,000.00 $ 130,000.00 $ 130,000.00 $ -
Total Expenses $ 361,365.00 $ 336,654.35 $ 521,696.22 $ 200,635.38
I
Net Rev/Expenses I$ (22,919.00)1 $ 82,527.851 $ (41,696.22}1 $ (199,763.55)1
IFund Balance at Beginning of Year 1$ 149,352.50 I 1$ 231,880.35 I
IFund Balance at End of Year 1$ 231,s80.35 I 1$ 32,116.80 I
C:\Users\dave.alexander\AppData\Local\Microsoft\Windows\lNetCache\Content.Outlook\R9WSBC96\DDA January 2024
EVENTS FINANCIAL FOR 01/31/2024
FY TOTALS
Revenues FY 2022-23 BUDGET FY2022-23 ACTUAL FY2023-24 BUDGET JANUARY 31, 2024
Tax Increment $ - $ - $ - $ -
Reimbursement - State $ - $ - $ -
Event Revenue* $ 262,886.00 $ 112,307.55 $ 200,000.00 $ 5,268.78
Trans From Capital Projects Fund $ - $ -
Interest Income $ - $ - $ - $ -
Fundraising Revenue** $ 5,000.00 $ 4,325.00 $ 15,000.00 $ -
BID Income (or $50,000 levy)* * $ - $ - $ - $ -
Sponsorship $ 114,625.00 $ 424,311.73 $ 42,000.00 $ 21,750.00
Former Mall Brownfield Income (GF) $ - $ - $ -
Total $ 382,511.00 $ 540,944.28 $ 257,000.00 $ 27,018.78
Expenses FY 2022-23 FY2022-23 ACTUAL FY2023-24 FY 2023-24
Business Dev. Manager Wages $ - $ - $ - $ -
Trans to GF - Marketing, Events, Overhead $ - $ - $ - $ -
FICA (7.65%) $ - $ - $ - $ -
Workers Comp (2%) $ - $ - $ - $ -
Insurance $ - $ - $ - $ -
Residency Bonus (4%) $ - $ - $ - $ -
Life Insurance (0.24%) $ - $ - $ - $ -
401(k) (6%) $ - $ - $ - $ -
Total Salaries/Benefits $ - $ . $ . $ .
Walkability Improvements $ - $ - $ - $ -
Streetscape/Wayfinding / Walkability $ - $ - $ . $ -
Public Art (Downtown Initiative) $ - $ - $ - $ -
Landscaping $ - $ - $ - $ -
Snow Removal $ - $ - $ - $ -
Fa~ade Program $ - $ - $ - $ -
Financial Incentives $ - $ - $ - $ -
Downtown Park(s)** ** $ - $ - $ - $ -
Marketing/Promotions $ - $ - $ - $ -
Blight $ - $ - $ - $ -
Office Space and Misc Operating $ - $ - $ - $ -
Total Recurring Costs $ - $ - $ - $ .
Misce llaneous Events(Cookie Crawl, Letters to Sa, $ - $ 5,652.00 $ - $ 4,491.57
Taste of Muskegon $ 96,300.00 $ 305,430.12 $ 90,000.00 $ 351.23
Lakeshore Art Festival $ 163,568.00 $ 164,613.87 $ 160,000.00 $ 12,472.76
Projects and Events $ 259,868.00 $ 475,695.99 $ 250,000.00 $ 17,315.56
County Debt Payments ($1M) $ - $ - $ -
Mercy Health Arena HVAC/Roof******* $ - $ - $ -
Farmers Market transfer $ - $ - $ 55,409.40
Total Debt Payments $ . $ - $ - $ 55,409.40
'
Total Expenses $ 259,868.00 $ 475,695.99 $ 250,000.00 $ 72,724.96
I
Net Rev/Expenses I$ 122,643.oo I$ Gs,24s.29 1 $ 7,000.00 I$ (45,706.18)1
I
Fund Balance at Beginning of Year 1$ 104,266.ss I 1$ 169,515.141
I
Fund Balance at End of Year 1$ 169,s1s.14 I 1$ 123,sos.96 I
C:\Users\dave.alexander\AppData\Local\Microsoft\Windows\lNetCache\Content.Outlook\R9WSBC96\DDA January 2024
Cover sheet
from staff
to come
DEVELOPMENT AGREEMENT
This DEVELOPMENT AGREEMENT (the "Agreement") is made and entered into as of
the _ _ day of _ _ , 2023 between the MUSKEGON DOWNTOWN DEVELOPMENT
AUTHORITY with a business address of933 Terrace St., Muskegon, Michigan 49440 ("DDA"),
SHAW WALKER OPPORTUNITY ZONE BUSINESS 1 LLC, SHAW WALKER
OPPORTUNITY ZONE BUSINESS 2 LLC, and SHAW WALKER OPPORTUNITY ZONE
BUSINESS 3 LLC, all with business addresses of 75 W. Walton, Suite A, Muskegon, Michigan
49440 (collectively, the "Developer") and jointly referred to as the "Parties".
RECITALS
WHEREAS, the Developer intends to redevelop certain real property located in the City of
Muskegon, Michigan, being more particularly described on Exhibit A attached hereto (the
"Property"), into a mixed-use development project that will be referred to; as the Shaw Walker
adaptive redevelopment, which project and redevelopment work is more partfeularly described in
the Brownfield Plan Amendment attached as Exhibit B and the Development and Reimburseme'nt
Agreement between the City of Muskegon Brownfield Redevelopment Authority ("BRA") and
Developer attached as Exhibit C (the "Project");
WHEREAS, the Property has been identified as a •'.'facility''· pursuant to .Part 201 of the
Natural Resources and Environmental Protection Act, as amended ("NREP A").
WHEREAS, the DDA has applied for a loan (the "EGLE Loan") from the Michigan
Department of Environment, Great Lakes, and Energy (the "EGLE") in order to fund ce1iain
eligible activities at the Property;
WHEREAS, the DDA will re-loan the EGLE Loan to the Developer to perform eligible
brownfield activities as defined in the Brownfield Act (Act 381 of 1996, as amended) and as further
described in the Brownfield Plan (the "Developer Loan"); and
WHEREAS, this Agreement is intended to set forth the terms and conditions under which
the Developer Loan will be advanced to the Developer by the DDA, the method for repayment of
the Developer Loan to the DDA, and the Parties respective rights and responsibilities in connection
with the proposed redevelopment and remediation of the Prope1iy.
NOW THEREFORE, for good and valuable consideration_includingthe m1,1tuctl
covenants of the Paiiies made herein, the receipt and sufficiency of which consideration is .. ·
hereby acknowledged, the parties agree as follows:
TERMS AND CONDITIONS
1.0 Use of EGLE Loan Funds
Subject to the terms and conditions of this Agreement, the DDA agrees to use the EGLE
Loan to make the Developer Loan to Developer, whereby the DDA shall reimburse or
pay on behalf of the Developer, "Eligible Costs" as defined in the Brownfield Plan
Amendment (Exhibit B) and the Development and Reimbursement Agreement (Exhibit
C), in an amount not to exceed $1,000,000 (the "Developer Loan Funds").
2.0 Commencing of Development
The Developer agrees to commence work on the Project as soon as practicable following
the closing on the construction financing for the Project, and expects to complete the
Project within 24-48 months following commencement of work, subject to events that are
beyond the reasonable control of the Developer and are of the kind and/or nature of a riot,
war, act of enemies (including terrorism within the continental United States), national
emergency, fire, flood, act of God, severe weather conditions, pandemic, governmental
shutdown, material shortage or area or industry wide strike that renders it substantially
impossible for the Developer to pursue completion of the Project.
3.0 Disbursement of Loan Funds
The Developer Loan Funds shall be disbursed to the Developer by the DDA to be applied
to incmTed and paid Eligible Costs approved by the BRA, in accordance with the terms of
the Brownfield Plan and the Development and Reimbursement Agreement. Developer
shall be responsible to submit to the BRA or its authorized representative all requests for
disbursement, in accordance with the Development and Reimbursement Agreement.
4.0 Proof of Developer's Financial Capacity
Prior to the Developer submitting its first request for disbursement, the Developer must
provide the DDA with reasonable evidence of Developer's financing for completion of
the Project (such as a copy of the Developer's construction loan commitment and a
sources and uses of funds schedule) and establish the Loan Payment Escrow (as defined
below) with the DDA, which shall serve as security for the repayment of the Developer
Loan.
5.0 Reimbursement Process
Developer will fund the expense of Eligible Costs and seek reimbursement for the
completed Eligible Costs eligible to be financed with the Developer Loan Funds.
Developer's reimbursement shall be presented to the BRA or its authorized
representative. Reimbursement requests will be reviewed by the BRA and the BRA' s
oversight consultant, if any. Approved Eligible Costs will be reimbursed to the Developer
by the DDA from the Developer Loan Funds. Disbursements of the Developer Loan
Funds will commence in the first year of construction of the Project.
6.0 Loan, Security and Repayment Terms
6.1 Length of Repayment of Loan. The te1m of the Developer Loan shall be fifteen
(15) years (the "Loan Term"), commencing on the date on which Developer Loan
Funds are first disbursed to Developer (the "Commencement Date"), and
maturing on the fifteenth (15 th ) anniversary of the Commencement Date (the
"Maturity Date"). If the first disbursement of Developer Loan Funds to Developer
falls on a day other than the first (1 st) day of a calendar month, then the
Commencement Date shall be deemed to have occurred on the first (1 st) day of the
immediately following calendar month. No interest shall accrue on the Developer
Loan and no payments on the Developer Loan shall be due from Developer
during the construction and stabilization phase of the Project, which shall be the
first sixty (60) months following the Commencement Date. Commencing with the
sixty-first (61 st) month following the Commencement Date, and for the remainder
of the Loan Te1m (the "Repayment Period"), interest shall accrue on the
outstanding principal balance of the Developer Loan at a rate of 1.5% per annum.
6.2 Use of Tax Increment Financing (TIF). Notwithstanding to any contrary
provisions in the Development and Reimbursement Agreement between the BRA
and the Developer, the BRA shall segregate annually sufficient TIF revenues
captured from the Project to pay the DDA to allow the DDA to pay the principal
and interest on the EGLE Loan. Only after sufficient tax increment revenues are
provided to the DDA for the EGLE Loan payment shall any of the BRA's tax
capture from the Prope1iy be used to reimburse the BRA for its administrative
fees and to pay other Eligible Costs to the Developer.
6.3 Regular Developer payments. During the Repayment Period, if the TIF payments
are insufficient to cover the principal and interest payable by DDA to EGLE,
Developer shall be obligated to make regular payments of principal and interest to
the DDA at the same frequency that the DDA is obligated to make payments to
EGLE under the EGLE Loan. Payment due from Developer during the
Repayment Period will be calculated using the outstanding principal balance of
Developer Loan Funds from time to time, ammiized on a straight-line basis over
the remaining years in the Loan Term with interest accruing at 1.5% per annum,
compounded daily. Provided EGLE allows the DDA to prepay on the loan in the
following manner and avoid penalty, premium and future interest payments,
Developer shall be permitted to prepay the Developer Loan at any time during the
Loan Term without penalty or premium. After any partial prepayment of the
Developer Loan, the payments due from Developer shall be re-amortized based
on the outstanding principal balance of Developer Loan Funds and the remaining
years in the Loan Term, again, provided same consideration is granted by EGLE.
7.0 Records; Disbursement; Payments
The DDA will be responsible for keeping a written record of the Developer Loan Funds
disbursed to the Developer, and monies applied in repayment of the Developer Loan. At
the request of Developer, DDA agrees Developer shall have the right to inspect and copy
all of DDA's records pertaining to this Agreement, the Brownfield Plan, and the
Development and Reimbursement Agreement.
8.0 Conditions of Default
Each of the following shall constitute an event of default under this Agreement ("Event
of Default"):
8.1 Default by Developer in the performance of any covenant or obligation under this
Agreement, including the obligation to make payments due on the Developer
Loan during the Repayment Period.
8.2 Default by Developer under any of the terms of the Development and
Reimbursement Agreement.
8.3 Developer becomes insolvent, consents to or applies for the appointment of a
receiver, trustee or liquidator of itself or any of its property, admits in writing its
inability to pay its debts generally as they become due, makes a general
assignment for the benefit of creditors, files a voluntary petition in bankruptcy, or
seeks reorganization or similar arrangement in a proceeding under the bankruptcy
code.
9.0 Notice of Default; Cure Period
Except as otherwise provided in this Agreement, upon an Event of Default, the DDA
shall provide Developer written notice of such default. The Developer shall have a period
(the "Cure Period") of thirty (30) days after Developer receives written notice of such
failure to cure the same and an Event of Default shall not be deemed to exist during the
Cure Period; provided, if Developer commences to cure such failure during the Cure
Period and is diligently and in good faith attempting to effect such cure, the Cure Period
shall be extended for so long as Developer is diligently effecting such cure.
10.0 Remedy for Default
Notwithstanding anything to the contrary in this Agreement, upon an Event of Default
which remains uncured after the Cure Period described in Section 9.0, at the option of the
DDA with notice, the Loan Balance shall become immediately due and payable to the
DDA, and Developer hereby promises to pay the Loan Balance. The DDA shall have the
right to pursue all remedies at law or in equity to collect the Loan Balance, including
without limitation drawing from the Loan Payment Escrow an amount equal to any
delinquent payments due from Developer on the Developer Loan during the Repayment
Period, after which Developer shall be obligated to restore the Loan Payment Escrow to
the original amount as set forth herein, provided the Loan Balance remains unpaid.
11.0 Miscellaneous
11.1 Costs and Fees. Developer promises to pay to the DDA, in addition to the Loan
Balance, all collection costs and reasonable attorney's fees and expenses incurred
by the DDA in enforcement of this Agreement, whether or not litigation is
commenced, including, without limitation, salaries and wages, on an hourly basis,
of the DDA staff for time spent in effmis to enforce this Agreement.
13.2 Notices. All notices, approvals, consents and other communications required
under this Agreement shall be in writing and shall be deemed given: (i) when
delivered in person; (ii) when sent by fax or email: (iii) when sent by a nationally-
recognized receipted overnight delivery service with delivery fees prepaid; or (iv)
when sent by united states first-class, registered, or ce1iified mail, postage
prepaid. The notice shall be effective immediately upon personal delivery or upon
transmission of the fax or email; one day after depositing with a nationally
recognized overnight delivery service; and five days after sending by first class,
registered, or ce1iified mail. Notices shall be sent to the parties as follows:
To: To: Developer
933 Terrace Street 75 W. Walton, Suite A
Muskegon,MI49440 Muskegon, Michigan 49440
Attn: City Manager Attn: Jon Rooks
w/copy to: w/copy to:
Parmenter Law Warner Norcross+ Judd LLP
601 Terrace Street 150 Ottawa Ave NW, Suite 1500
Muskegon, Michigan 49440 Grand Rapids, Michigan 49503
Attn: City Attorney Attn: Jared T. Belka
13.3 Severability. If any term, provision or condition contained in this Agreement
shall, to any extent, be invalid or unenforceable, the remainder of this Agreement
(or the application of such term, provision or condition to persons or
circumstances other than those in respect of which it is invalid or unenforceable)
shall not be affected thereby, and each term, provision or condition of this
Agreement shall be valid and enforceable to the fullest extent permitted by law.
13.4 Miscellaneous. This Agreement may be amended or modified only by the
written agreement ofDDA and Developer. The Recitals and each exhibit attached
to this Agreement is incorporated and made a part of this Agreement as though
more fully set forth in this Agreement. This Agreement shall be interpreted under
and governed by the laws of the State of Michigan.
13.5 Counterparts; Electronic Signatures. This Agreement may be executed in any
number of counterparts, each of which shall be deemed to be an original, but all
of which together shall be deemed to be one and the same instrument.
Electronically imaged signatures may be used in place of original signatures on
this Agreement. Both Parties intend to be bound by the signatures on the
electronically imaged document, are aware that the other party will rely on such
signatures, and hereby waive any defenses to the enforcement of the terms of this
Agreement based on the form of signature.
13.6 Assignment or Delegation. Neither party shall assign or delegate all or any
portion of its rights or obligations contained in this Agreement without the prior
written approval of the other party, in which approval may be withheld in the
other party's sole discretion.
The Paiiies have executed this Agreement effective on the _ _ _ day of _ _ __
2023.
CITY: DEVELOPER:
By: Muskegon Downtown Development By: Shaw QOZB 1, LLC, Shaw QOZB 2,
Authority LLC and Shaw QOZB 3, LLC
Name: Johnathan Seyfe1ih Name: Jon Rooks
Title: City Manager Title: Manager
Date: Date:
EXHIBIT A
PROPERTY DESCRIPTION
EXHIBITB
BROWNFIELD PLAN AMENDMENT
EXHIBIT C
DEVELOPMENT AND REIMBURSEMENT AGREEMENT
DDA Agenda Item V.D
Muskegon Downtown Development Authority
Agenda Item V.D for 2-13-24
Request to address the DDA on 2024 events
Requesting party: The Legacy Project
Outline of the request: Terry and Joy Puffer of the Legacy Project would like to have a
discussion on their non-profits 2024 downtown events -Trunk-and-Treat,
GLOW holiday lights and New Year's Eve Ball Drop.
Staff comments:
The past two years the DDA has provided the Legacy Project a $5,000 contribution for the
holiday light display on West Western Avenue.
Staff recommendation: None
Suggested motion: None
ODA Agenda Item V.E
Muskegon Downtown Development Authority
Agenda Item V.E for 2-13-24
Time for ODA to discuss the Fa~ade Grant Program
Requesting party: City economic development
Outline of the request: Staff would like to have the DDA discuss the 2023-24 Fac;ade Grant
program and provide staff with suggested changes, if any. A copy of the current program is
attached.
Staff comments:
So far this year, the DDA has award the maximum of $15,000 to The Leonard Building at 292 W. Western
and the West Side Art Collective at 238 Houston and staff approved $9,394 Forrest Tax at 130 E. Apple.
The DDA might anticipate a $15,000 request from the Eagles 668 at 621 W. Western for exterior
renovations in the next few months.
Some DDA members have had questions and expressed concerns with the current program.
Staff recommendation: None
Suggested motion: None
Applicant Requested Approved Invoiced and Paid
Ashley Forest- 130 E. Apple $ 9,394.96 $ 9,394.96 $
West Side Art Collective LLC- 238 f- $ 15,000.00 $15,000.00 $
Corey Leonard- 292 W. Western A $ 1 15,000.00 $15,000.00 $
$
$
Totals $ 39,394.96 $ 39,394.96 $
Fa~ade Grant Budget Amount $ 100,000.00
Fund Balance $ 100,000.00
q)'c)- ~~
Applica nt Request ed Approved Invoiced and Paid
Carlisle's $ 15,000.00 $ 15,000.00 $ 15,000.00
No Name Saloon $ 15,000.00 $ 15,000.00 $ 15,000.00
Marat's Bakery $ 10,000.00 $ 10,000.00 $ 10,000.00
Ors. Gundersen/Zucker $ 11,000.00 $ 11,000.00 $
The Early Owl $ 15,000.00 $ 15,000.00 $ 15,000.00
Hometown Creamery $ 4,914.78 $ 4,914.78 $ 4,914.78
Totals $ 70,914.78 $ 70,914.78 $ 59,914.78
Fa~ade Grant Budget Amount $ 62,500.00
Fund Balance $ 2,585.22
City of Muskegon - Downtown Development Authority
2023-24 Building Fa~ade Improvement Grant Program Guidelines
Goal:
To upgrade the look and function of commercial buildings within the Muskegon Downtown Development
Authority (DDA) by encouraging tenant businesses or building owners to make exterior improvements. Such
improvements will enhance the individual property's value; and uplift the block in which the property is
located and the overall district.
Available Funding:
The DDA has budgeted $100,000 for the 2023-24 fiscal year, to be available to applicants on a first-come,
first-serve basis. The number of grants will be limited by the budgeted amount.
Terms:
The Building Fa~ade Improvement Grants are for up to $15,000, with an applicant match of one to one. Thus,
a $5,000 grant would need to have the applicant propose a project of at least $10,000. This is a
reimbursement-oriented program to ensure that proposed work is done appropriately and consistent with the
character of the downtown district.
Eligibility:
• Applicant must be a business or commercial building owner located within the Muskegon Downtown
Development Authority district. Leaseholder businesses must receive the written permission of the
building owner.
• The building must be an existing commercial structure at the sidewalk level, but can be mixed-use on
the floors above. Grants can assist redevelopment, remodeling or renovations to existing commercial
buildings but are not for new buildings.
• All city taxes and other city accounts must be current.
• All work must be done in compliance with all city regulations and ordinances, including obtaining
necessary building permits and the approval of the Historic District Commission when applicable.
• All work must be done by a licensed contractor.
• All changes in access to a building must strictly comply with the federal Americans with Disabilities
Act.
• Work receiving grant funding must not begin until a grant is awarded and work must be completed in
12 months. The applicant can request a 6-month extension in writing if the project is not completed
within 12 months of the approval date.
Eligible Costs:
The DDA board will have the final decision on the eligibility of any items receiving grant funding.
Improvements must be to the exterior of the building and may include:
Exterior walls, windows, doors, exterior painting, cleaning or tuck-pointing of masonry or stone, ADA
improvements to exits and entrances, awnings, decorative signs improving the aesthetics of the
building, exterior lighting for safety and aesthetics and unique exterior architectural features.
Ineligible Costs:
Among other items, grants are not available for:
Property acquisition, site plans, building fees, appraisal or attorney fees, business equipment taxed as
personal property, wages associated with the project paid the applicant or applicant's relatives,
parking lots and landscaping. (Although parking lot improvements and landscaping are encouraged,
they are not grant eligible.)
Application Process:
• Provide a brief statement of intent demonstrating the need for financial assistance; how the project
will improve the building, its block and the district; and a commitment to future property maintenance.
• Provide a description of the proposed project, submitting photos of the existing building and if
available drawings of the improvement.
• Provide detailed cost estimates with at least two competitive quotes from licensed contractors and
their suppliers.
• Provide a timeline for commencing the project and its completion.
• Provide evidence of financial ability to complete the project with the understanding that the grant
funds will only be disbursed upon completion of the project.
Review/Approval Process:
Applications received in the City of Muskegon's Development Services Division Office (Muskegon City Hall, 933
Terrace St, Room 202) will be reviewed by city staff. The DDA board authorized staff will review and approve
grant requests up to $2,500. Grant requests of more than $2,500 will be evaluated by a design/review
committee of city staff and board members appointed by the DDA. Grants of $10,000 or more must receive
final approval by the DDA board.
All reviews will consider the grant program goals, along with the long-term economic development benefits to
the DDA district and the enhancement of the architectural appeal of the applicant building. Changes in
project scope or design must be DDA approved for final reimbursement. If approved, City staff will request an
update on each project after 6 months of the approval date.
Project Reimbursement:
Upon completion of the project, grant recipient must submit final invoices marked as paid along with copies
of grant recipient proof of payment to the contractors and/or suppliers.
Program Authority:
The DDA board has final decisions on all matters related to the Building Fac;:ade Improvement Grant Program.
Any decision by the DDA board is final.
Downtown Development Authority (DOA) Ls'-~
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City of Muskegon - Downtown Development Authority
2023-24 Building Fa~ade Improvement Grant Program Application
Applicant Name Business Address
Email Phone
Project Address Parcel Number
Requested Amount Total Fa~ade Project Cost
Statement of Intent/Need for Funding:
Description of Project-Attach: Photos, Project Plans & 2 Competitive Bids:
Project Timeline/Estimated Completion Date:
By signing the grant application, if awarded, applicant commits to future property
maintenance and certifies the ability to fund the project to completion before grant funds
reimbursements are made.
Applicant Signature:
Please email application to: economicdevelopment@shorelinecity.com
For more information:
Contact Contessa Alexander, Staff Liaison, DDA/BRA
contessa.alexander@shorelinecity.com
231-724-4141
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