Downtown Development Authority Agenda 02-13-2024

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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

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                                   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

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