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CITY OF MUSKEGON DOWNTOWN DEVELOPMENT AUTHORITY BROWNFIELD REDEVELOPMENT AUTHORITY DATE OF MEETING: Tuesday, April 8, 2025 TIME OF MEETING: 10:30 A.M. PLACE OF MEETING: City Hall Conference Room 204 933 Terrace, Muskegon, MI ____________________________________________________________________________ AGENDA I. Roll Call II. Approval of minutes of 3/11/25 III. Public comments on agenda items IV. BRA agenda items- Contessa Alexander a. 221 W. Webster Ave., 221 West Webster LLC V. DDA agenda items- Contessa Alexander a. Shaw Walker Work Plan 3 – EGLE Loan/Grant b. Acceptance of Financial Report 3/31/25 c. Reforecast Budget VI. Adjourn CITY OF MUSKEGON DOWNTOWN DEVELOPMENT AUTHORITY (DDA) / BROWNFIELD REDEVELOPMENT AUTHORITY (BRA) March 11, 2025 M. Bottomley called the meeting to order at 10:30 AM and roll was taken. I. Roll Call Present: K. Reid, M. Kleaveland, H. Sytsema, J. Wallace Jr, M. Bottomley, B. Hastings, J. Moore, J. Seyferth (Late), B. Tarrant, J. Dornbos, K. Thornton (Late) Absent: A. Boyd, S. Black Others Present: Todd Jacobs at Community Foundation, J. Hines, W. Webster, J. Eckholm II. Approval of minutes of 2/11/25– B. Hastings motioned to approve the minutes of February 11, 2025 and supported by J. Moore. All in favor III. Public Comments – None IV. A. Acceptance of Financial Report 2/28/25 – C. Alexander shared the changes since January i.e. increase in event sponsorship, salaries, snow removal. Revenue: $37,797.49. H. Sytsema motioned to accept the financial report for February 28, 2025 and supported by J. Dornbos. Ayes K. Reid, M. Kleaveland, H. Sytsema, J. Wallace Jr, M. Bottomley, B. Hastings, J. Moore, B. Tarrant, J. Dornbos Nays: None B. Façade Grant Application – The Community Foundation is renovating the second floor of the Hilt Building to address structural needs. The project includes replacing the three-story window and atrium glass feature and adding a deck that will extend over the atrium at the front of the building. The estimated cost for the façade improvements is between $250,000 and $300,000, with the total project cost projected at $1,400,000. Todd from Community Foundation shared their vision, floor plan and new exterior work. K. Reid inquired if the balcony is considered part of the façade grant. J. Moore motioned to approve the façade grant application from the Community Foundation for Muskegon County in the amount of $25,000. Supported by B. Tarrant. H. Sytsema will abstain. Ayes K. Reid, M. Kleaveland, K. Thornton, J. Wallace Jr, M. Bottomley, B. Hastings, J. Moore, B. Tarrant, J. Dornbos, J. Seyferth Nays: None C. The Economic Development Department has assumed responsibility for operating the Western Market Chalets. As of February 27, 2025, we have received applications from eight returning vendors and nine new vendors. The Market will continue to function as a business incubator space, with new initiatives being implemented to support vendor success. To enhance vendor success, staff plans to provide business development support through a partnership with Northern Initiatives for a business skills assessment for each vendor. Additionally, we propose engaging a consultant to facilitate three business workshops. After interviewing two potential consultants, Henrietta Hadley of Infinite Solutions Consulting Group, LLC, and Leandra Nesbit of Stingray Advisory Group LLC, staff evaluated both proposals. Both consultants presented strong proposals. However, based on overall experience, alignment with the Chalet's goals, and the structured 6-month engagement that matches the Chalet lease term, staff recommends selecting Leandra Nesbit of Stingray Advisory Group LLC. There are 17 chalets with 8 returning vendors and 10 new applicants. This pilot program will determine further steps and requirements. Currently, each chalet vendor is required to meet with Northern Initiatives in order to be a vendor. Ultimate goal is to mentor for possible future brick and mortar business owners. Orientation for current chalet vendors is in April. B. Tarrant made a motion to approve the allocation of $5,000 to engage Leandra Nesbit of Stingray Advisory Group LLC to provide business training and support for the Western Market Chalet vendors for the 2025 season. Supported by K. Thornton Ayes K. Reid, M. Kleaveland, K. Thornton, J. Wallace Jr, M. Bottomley, B. Hastings, J. Moore, B. Tarrant, J. Dornbos, J. Seyferth, H. Sytsema Nays: None Further Comments: S. Wilson shared 2024 tax capture is going into the Brownfield revolving fund for potential use at some point. Terrace Pointe 2025 capture will be the last year we need capture to pay off that developer. In 2026 we will begin capturing for the revolving fund for that project. Both will capture for 5 years. J. Eckholm shared financial abilities and program opportunities that the team will be working on for the rest of the calendar year to present to the group. J. Eckholm also shared current projects - The Vault in Core Plaza ran into budget overages and will be reaching out to the group for local only brownfield. Lakeview Loft Space II are reaching their end point of HUD financing process. Final renderings and site plan. Will see their Brownfield plan come through. Adjournment 11:37 AM DDA Agenda Item IV.A. Muskegon Downtown Development Authority Agenda Item IV.A. for 4-8-25 Brownfield Plan Amendment, 221 West Webster, LLC 221 West Webster and 1040 2nd Street, Muskegon, MI Requesting Party: 221 West Webster, LLC Outline of Request: 221 West Webster, LLC is requesting consideration of their brownfield plan amendment for the redevelopment project located at 221 West Webster Avenue and 1040 2nd Street. Background: The City of Muskegon Brownfield Redevelopment Authority has received a request from 221 West Webster, LLC for approval of a Brownfield Plan Amendment under Act 381. The proposed amendment involves the completed redevelopment of the former Huntington Bank building, known as Core Plaza, located at 221 West Webster Avenue & 1040 2nd Street, Muskegon, MI 49440. The redevelopment, initiated in 2021 and completed in 2025, successfully transformed the building into a multi-suite commercial structure featuring a restaurant, boutique retail spaces, and office space. The completed project consists of 42,888 sq ft of restored commercial space with an estimated 45 jobs created. Approval of the Act 381 Brownfield Plan Amendment to include the eligible property located at 221 West Webster Avenue & 1040 2nd Street within the City’s existing Brownfield Plan. This amendment permits the use of tax increment financing (TIF) to reimburse the developer for eligible activities totaling $838,500. The estimated administrative cost to the Authority is $105,018, and the Local Brownfield Revolving Fund capture is estimated at $306,814. Staff Comments: City staff and our third-party brownfield consultant has reviewed the plan and recommends approval. Suggested Motion: I move to approve the resolution for the Brownfield Plan Amendment located at 221 West Webster Ave. and 1040 2nd Street and further request staff to set 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 BROWNFIELD PLAN AMENDMENT 221 West Webster, LLC 221 West Webster and 1040 2nd Street, Muskegon, MI 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 8th day of April 2025 at 10:30 a.m., prevailing Eastern Time. PRESENT: ABSENT: The following preamble and resolution were offered by _________ and supported by __________: 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 221 W. Webster 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 221 W. Webster 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 Redevelopment Authority 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 April 8, 2025, 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 March ‘17 City of Muskegon Brownfield Redevelopment Authority Application for Inclusion in the Muskegon Brownfield Plan Introduction The purpose of the City of Muskegon Brownfield Redevelopment Authority is to provide financial incentives for economic development projects within the City of Muskegon where environmental contamination, blight, or functional obsolescence create an impediment to redevelopment of property. Inclusion of a project in the Muskegon Brownfield Plan can result in certain eligible activities being financed through tax increment financing. The statutory authorization for Brownfield Authorities and Brownfield tax increment financing are found in Michigan’s Public Act 381 of 1996, as amended, the Brownfield Redevelopment Financing Act (Act 381). What are the advantages of being included in the Muskegon Brownfield Plan? Tax Increment Financing Inclusion in the Brownfield Plan allows the developer/business the use of tax increment financing for reimbursement of “eligible activities”. These may include: 1) Environmental Response Activities, including Baseline Environmental Assessments, Due Care Activities, and other environmental response activities. 2) Demolition 3) Public Infrastructure Improvements 4) Site Preparation 5) Lead and Asbestos Abatement Do you want to be in the City of Muskegon Brownfield Plan? First, you need to ask yourself the following questions: 1) Is the property where the project proposed a “facility”? (“Facility” is defined by Part 201 of NREPA as property where the concentration of a hazardous substance in soil or groundwater exceeds the applicable Michigan Residential Generic Cleanup Criteria.) 2) Is a building on the property where the project is proposed considered “Blighted”? Blighted is defined by Act 381, as property that meets any of the following criteria: a) Has been declared a public nuisance in accordance with a local housing, building, plumbing, fire, or other related code or ordinance; b) Is an attractive nuisance to children because of physical condition, use, or occupancy; c) Is a fire hazard or is otherwise dangerous to the safety of persons or property; d) Has had the utilities, plumbing, heating, or sewerage permanently disconnected, destroyed, removed, or rendered ineffective so that the property is unfit for its intended use. 3) Is the property where the project is proposed considered “Functionally Obsolete”? Functionally Obsolete is defined by Act 381, as “unable to be used to adequately perform the function for which it was intended due to a substantial loss in value resulting from factors such as overcapacity, changes in technology, deficiencies or super adequacies in design, or other similar factors that affect the property itself or the property’s relationship with other surrounding property.” The City would be involved in making this determination through a qualified assessor. 1 March ‘17 If you answer yes to any of the questions above, the following steps should be taken. 1) Contact the City of Muskegon Planning & Economic Development Department to discuss your project and discuss the project feasibility (appropriate development, proper zoning, eligible according to the applicable statute, etc). 2) City staff and/or Brownfield Consultant will work with you to discuss project eligibility and to evaluate the Brownfield incentives as they may apply to the proposed project (does it make sense for your company to pursue this incentive, or are other avenues more appropriate?) 3) Once the decision is made to proceed to prepare an amendment to the Brownfield Plan, the applicant then files an application to the City to be included in the Muskegon Brownfield Plan (see Fees below). The City staff and/or its Brownfield Consultant, and the applicant will identify the “eligible activities” that may be eligible for reimbursement through tax increment financing. Review and approval of eligible activities by the Michigan Strategic Fund (MSF) and/or the Michigan Department of Environmental Quality (MDEQ) will be required if school operating taxes will be captured for certain eligible activities. The applicant must submit a proposed amendment to the Muskegon Brownfield Plan. After review and discussion with the City staff, the proposed amendment to the Brownfield Plan will be presented to the Brownfield Redevelopment Authority for approval, then to the City Commission for a public hearing. 4) If approved by the Muskegon City Commission, the Brownfield Plan will be amended to include the project. 5) If eligible activities are identified and approved for reimbursement through tax increment financing, it will be necessary for the developer/business to pay the initial costs for MDEQ “eligible activities” and/or MSF eligible activities. Public infrastructure improvements may have alternative financing mechanisms. Act 381 also authorizes bonding; this is entirely subject to consideration and approval by the City. The financing and reimbursement of “eligible activities” through the Brownfield Plan amendment will be addressed in a Development and Reimbursement Agreement between the City and the Developer/Business. Fees There is an administrative fee for inclusion in the City of Muskegon Brownfield Plan. These costs include staff time to review and evaluate the proposed Plan Amendment and Development and Reimbursement Agreement, coordination between the developer/business, consultants, and city preparation of and mailing of notices, etc. The fee for inclusion in the Brownfield Plan is $5,000 Process for Adoption of Brownfield Plan Amendment I. Potential Brownfield Plan Amendment Applicant contacts the City of Muskegon Department of Planning and Economic Development regarding the City’s interest in helping to facilitate the proposed brownfield redevelopment project. If the project is located in the City of Muskegon, and is a “facility” (as defined in Part 201 of the Natural Resources and Environmental Protection Act, Act 451, Public Acts of Michigan, 1994, as amended), or is “functionally obsolete” or “blighted”, as defined by the Brownfield Redevelopment Financing Act, Act 318 of 1996, as amended, and it appears that the proposed project is consistent with the City’s Master Land Use plan and any associated plan, the developer/business will coordinate with planning staff and/or the City Brownfield Consultant. 2 March ‘17 II. The applicant works with the City of Muskegon staff/ Brownfield Consultant and evaluates whether inclusion in the Brownfield Plan is appropriate and beneficial to the proposed development project. If it is, the applicant prepares and submits a Brownfield Plan Application, (see Fees above). The Plan Amendment is required to be completed by the applicant and/or their consultant/attorney. III. The Applicant works with the City Planning & Economic Development Staff/Brownfield consultant to refine/ modify the Plan Amendment as necessary IV. The City schedules a Brownfield Redevelopment Authority (BRA) Meeting. The Brownfield Redevelopment Authority considers a resolution approving the Brownfield Plan Amendment and, if approved, recommends approval to the City Commission. V. The Developer/business prepares and submits a Development and Reimbursement Agreement to the City. This is reviewed and negotiated. When finalized, it is presented to the BRA for approval and forwarded to the City Commission for approval. VI. The City Commission adopts a resolution providing notice to taxing jurisdictions and applicable State Agencies (MDEA and/or MSF) setting a public hearing (the City Commission meets on the second and fourth Tuesday of each month, agenda items must be prepared by the Tuesday prior to City Commission meeting). VII. The City posts a notice of the public hearing. Not less than 10 days prior to the public hearing. The City sends notice of the public hearing to the legislative body of each taxing unit levying taxes subject to capture, as well as the MDEQ for plans including eligible environmental response activities and to the Michigan Strategic Fund (MSF) for plans including eligible non-environmental costs, not less than 10 days prior to the public hearing. The City Commission holds a public hearing on the adoption of the resolution approving the Brownfield Plan (not less than 10 days after sending notice of the proposed Brownfield Plan Amendment to the taxing jurisdictions). VIII. If the City Commission approves the Brownfield Plan Amendment, the Developer/Business develops an Act 381 work plan for the “eligible activities”. The Brownfield Authority submits the Act 381 to the appropriate state agency (MDEQ for eligible environmental response activities, MSF for Demolition, Public Infrastructure Improvements, Site Preparation, Lead and Asbestos Abatement) for review and approval. IX. The City of Muskegon will notify the County Assessor of the Plan Amendment. 3 March ‘17 City of Muskegon Brownfield Redevelopment Authority Application for Inclusion in the Muskegon Brownfield Plan This application requests information that may be utilized to amend the “City of Muskegon Brownfield Redevelopment Authority Brownfield Plan”, as originally approved by the City Commission of the City of Muskegon on April 14, 1998. Please complete the information requested below and return to the Planning Department, City of Muskegon. In order to process the application, a fee of $5,000 is required. Applicant Information Company Name (Developer/Business): 221 West Webster, LLC Contact Person and Title: John Essex, Manager Contact Person Mailing Address: 221 West Webster Ave, Muskegon, MI Contact Person’s Phone Number: 231-375-5273 Fax No. Contact Person’s E-Mail Address: johnessex@corerealty.com Project Information 221 West Webster Avenue, Muskegon, Michigan Location of Eligible Property: 61-24-205-333-0001-00, 61-24-205-333-0001-01 Legal Description/Parcel Number: & 61-24-205-333-0001-02 Property Ownership: 221 West Webster, LLC currently owns the property Current Use of Property: Mixed Use Commercial office, retail and restaurant Type of Brownfield Amendment Requesting: (Please check all that apply:) Tax Increment Financing for Eligible Activities X __________ Yes Is the proposed site a “facility” (as defined by Part 201)? (Please provide a copy of the executive summary of any environmental reports available, such as a Phase I or II Environmental Site Assessment, or Baseline Environmental Assessment.) Is the applicant’s property “blighted” (as defined by P.A. 381 of 1996)? (Please provide supporting information.) Yes, PA 146 Already Is the applicant’s property “functionally obsolete” (as defined by P.A. 381 of 1996)? Approved (Please provide supporting information.) 4 CITY OF MUSKEGON BROWNFIELD REDEVELOPMENT APPLICATION DISCLOSURE STATEMENT Project Name: 221 West Webster Redevelopment aka Core Plaza Developer Name: 221 West Webster, LLC Contractor Name (if applicable): Project Location: 221 West Webster, Muskegon, Michigan Date: 1. Purpose of the Disclosure Statement The purpose of this document is to inform the City of Muskegon Brownfield Redevelopment Authority and its stakeholders that [Developer Name], the developer engaged in the [Project Name] Brownfield Redevelopment Project, intends to use a contracting business that they own or have a financial interest in, [Contractor Name], to provide services for the project. This disclosure is made in the interest of transparency and in accordance with ethical business practices, to avoid any perceived or actual conflict of interest, and to ensure compliance with local, state, and federal regulations concerning Brownfield Redevelopment projects. 2. Developer’s Affiliated Contracting Business [Developer Name], through their ownership or partnership in [Contractor Name], will provide contracting services for [Project Name]. These services may include, but are not limited to: • [List of services provided.] 3. Compliance with City Policies and Regulations The developer affirms that the selection of [Contractor Name] complies with all applicable procurement policies and regulations governing Brownfield Redevelopment projects. The contracting business is fully licensed and insured to perform the required services in the City of Muskegon. 4. Mitigation of Conflicts of Interest The developer acknowledges the potential for a perceived conflict of interest due to the dual role of acting as both the developer and contractor. To mitigate any conflicts: • The developer agrees to maintain clear and transparent records regarding any financial transactions between the developer and [Contractor Name]. • The developer will provide documentation to the City of Muskegon regarding competitive bidding processes (if applicable) and the reason for selecting Contractor Name]. 2 3 1. 7 2 4. 67 0 5 | 933 Terrace St, Muskegon, MI 49440-1397 | www.shorelinecity.com Act 381 Brownfield Plan Amendment 221 West Webster, LLC 221 West Webster Avenue & 1040 2nd Street Muskegon, Michigan 49440 Prepared For: City of Muskegon Brownfield Redevelopment Authority Project No. 2500348 March 3, 2025 Act 381 Brownfield Plan Amendment 221 West Webster, LLC 221 West Webster Avenue & 1040 2nd Street Muskegon, Michigan 49440 Prepared For: City of Muskegon Brownfield Redevelopment Authority City of Muskegon, Michigan March 3, 2025 Project No. 2500348 Recommended for Approval by Brownfield Redevelopment Authority on: ________________ Adopted by the City of Muskegon City Commission on: ________________ Table of Contents Fishbeck | Page i 1.0 Introduction ...................................................................................................................................................1 1.1 Proposed Redevelopment and Future Use for Each 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 2.1.1 Pre-Approved Activities .......................................................................................................2 2.1.2 Local Only Activities .............................................................................................................2 2.1.3 Brownfield Plan/Work Plan Preparation ..............................................................................3 2.1.4 Brownfield Plan/Work Plan Implementation .......................................................................3 2.1.5 Authority Administration Cost .............................................................................................3 2.1.6 Local Brownfield Revolving Fund .........................................................................................3 2.2 Summary of Eligible Activities ...........................................................................................................3 Environmental Activities ......................................................................................................3 Non-Environmental Activities ..............................................................................................3 Authority Expenses ..............................................................................................................3 2.3 Estimate of Captured Taxable Value and Tax Increment Revenues ..................................................3 2.4 Method of Financing and Description of Advances Made by the Municipality ................................4 2.5 Maximum Amount of Note or Bonded Indebtedness .......................................................................4 2.6 Duration of Brownfield Plan..............................................................................................................4 2.7 Estimated Impact of Tax Increment Financing on Revenues of Taxing Jurisdictions ........................4 2.8 Legal Description, Property Map, Statement of Qualifying Characteristics, and Personal Property.4 2.9 Estimates of Residents and Displacement of Individuals/Families....................................................5 2.10 Plan for Relocation of Displaced Persons..........................................................................................5 2.11 Provisions for Relocation Costs .........................................................................................................5 2.12 Strategy for Compliance with Michigan’s Relocation Assistance Law...............................................5 2.13 Other Material that the Authority or Governing Body Considers Pertinent .....................................5 List of Figures Figure 1 – Location Map of the Eligible Property Figure 2 – Site Plan List of Tables Table 1 – Summary of Eligible Costs Table 2 – Total Captured Incremental Taxes Estimates Table 3 – Estimated Reimbursement Schedule List of Appendices Appendix 1 Brownfield Plan Resolution(s) Appendix 2 Development/Reimbursement Agreement Appendix 3 Notice to Taxing Jurisdictions Appendix 4 Notice of Public Hearing Appendix 5 “Facility” Status Documentation \\CORP.FTCH.COM\ALLPROJECTS\2025\2500384\WORK\REPT\SUBMITTAL DOCUMENTATION\ACT 381_221 WEST WEBSTER LLC BROWNFIELD PLAN.DOCX Table of Contents Fishbeck | Page ii List of Abbreviations/Acronyms Act 381 Brownfield Redevelopment Financing Act, 1996 PA 381, as amended Authority City of Muskegon Brownfield Redevelopment Authority BEA Baseline Environmental Assessment Developer 221 West Webster, LLC ESA Environmental Site Assessment LBRF Local Brownfield Revolving Fund NREPA Natural Resources and Environmental Protect Act PA Public Act Plan Amendment Brownfield Plan Amendment Property 221 West Webster Avenue & 1040 2nd Street, Muskegon, Michigan 49440 QLGU Qualified Local Governmental Unit \\CORP.FTCH.COM\ALLPROJECTS\2025\2500384\WORK\REPT\SUBMITTAL DOCUMENTATION\ACT 381_221 WEST WEBSTER LLC BROWNFIELD PLAN.DOCX March 3, 2025 Fishbeck | Page 1 1.0 Introduction The City of Muskegon Brownfield Redevelopment Authority (the “Authority”) was established by the City of Muskegon (the “City”) pursuant to the Brownfield Redevelopment Financing Act, Michigan Public Act (PA) 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 the 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 221 W Webster, LLC (“Developer”) for the cost of eligible activities required to redevelop the eligible property. See Appendix 1 for copies of Plan Amendment resolutions. 1.1 Proposed Redevelopment and Future Use for Each Eligible Property The Developer is in the process of redeveloping the formerly vacant Huntington Bank building, currently known as Core Plaza, located at 221 West Webster Avenue and 1040 2nd Street (the “Property”). Since 2021, floor by floor the building has been fully redeveloped as a multi-suite commercial structure. Once the redevelopment is completed, the building will consist of 42,888 sq ft of restored commercial spaces. The redevelopment plans include a restaurant, boutique commercial retail space, and office space. Construction began in 2021 and is estimated to be completed in 2025/2026. Total investment in the redevelopment is estimated at $10,000,000 and an estimated 45 jobs will be created once the redevelopment is completed. The proposed site plan is included in Figure 2. This project serves a public purpose in the City of Muskegon, a Qualified Local Governmental Unit (QLGU), expanding the tax base, investing significant capital into the community, and creating new jobs. Within walking distance from both Muskegon Lake and Downtown Muskegon’s Social District, the Core Plaza building will attract new businesses and companies looking for office/retail space into the heart of downtown Muskegon. There is no existing hotel or hotel in development on this level of service within the region, so it will draw both community members and national visitors looking to visit this region and Lake Michigan. 1.2 Eligible Property Information Land Parcels: Parcel ID: 61-24-205-333-0001-00 221 West Webster Avenue, Muskegon, Michigan 49440 Approximately 2.13 acres Parcel ID: 61-24-205-333-0001-01 221 West Webster Avenue, Muskegon, Michigan 49440 Approximately 0.25 acres Parcel ID: 61-24-205-333-0001-02 1040 2nd Street, Muskegon, Michigan 49440 Approximately 0.07 acres OPRA Parcels: Parcel ID: 61-24-958-021-0040-00 221 West Webster Avenue, Muskegon, Michigan 49440 Parcel ID: 61-24-957-021-0040-00 \\CORP.FTCH.COM\ALLPROJECTS\2025\2500384\WORK\REPT\SUBMITTAL DOCUMENTATION\ACT 381_221 WEST WEBSTER LLC BROWNFIELD PLAN.DOCX March 3, 2025 Fishbeck | Page 2 221 West Webster Avenue, Muskegon, Michigan 49440 The property is located in the City of Muskegon, a QLGU pursuant to Act 381. The Property was historically developed in the 1880s for use as a cemetery and undertaker/mortuary business, with its most recent use as a banking building. Additionally, the Property was developed in a known area of historical industrial/construction fill material which is known to contain elevated levels of heavy metals. During the acquisition of the Property in 2021, the Developer conducted the appropriate environmental due diligence including a Phase I Environmental Site Assessment (ESA), Phase II ESA, Baseline Environmental Assessment (BEA), and Documentation of Due Care Compliance Report (DDCCR). During the Phase II ESA concentrations of copper, lead, mercury, and zinc were identified in the soil exceeding Michigan Department of Environment, Great Lakes, and Energy (EGLE) Part 201 Generic Residential Cleanup Criteria (GRCC) and lead was identified in the groundwater at concentrations exceeding the EGLE Part 201 GRCC. The Developer is not a liable party and completed a BEA in accordance with Part 201 of the Natural Resources and Environmental Protect Act, 1995 Public Act (PA) 451, as amended (NREPA) during the acquisition of the Property in 2021. Given the known soil and groundwater 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. Historic environmental data tables and associated sample location maps are provided in Appendix 5. 2.0 Information Required by Section 13(2) of the Statute 2.1 Description of Costs to be Paid for with Tax Increment Revenues This Brownfield Plan Amendment has been developed to reimburse existing and limited future costs incurred by the Developer since redevelopment began in 2021. Tax increment revenues will be captured for reimbursement from state school taxes (limited to preapproved activities) and local-only tax increment revenues. The total cost of eligible activities anticipated to be reimbursed to the Developer is anticipated to be $838,500. Authority administrative costs are anticipated to be up to $105,018. While all activities are eligible, as defined in Act 381, the estimated eligible activities and costs under this plan are summarized in Table 1. The capture of tax increment revenue for the Local Brownfield Revolving Fund (LBRF) is estimated to be up to $306,814. 2.1.1 Pre-Approved Activities Eligible costs for reimbursement include Pre-Approved Activities, permitted to occur prior to Plan Amendment adoption. Preparation of Phase I and II ESA(s), BEA, DDCCR, and a pre-demolition asbestos containing materials (ACM) survey was necessary to protect the Developer from clean up liability for known/existing environmental contamination. The total cost is anticipated to be $25,500. Demolition costs, up to $250,000, are preapproved under Act 381 and all remaining demolition costs will be reimbursed through local-only taxes. Building interior demolition was necessary to redevelop the building. The total cost is anticipated to be $250,000. The total Pre-Approved Activities cost is $275,500. 2.1.2 Local Only Activities Significant demolition and asbestos abatement activities have been necessary to fully redevelop the activities. Interior/site demolition activities (excluding the pre-approved activities) are anticipated at $400,000. During \\CORP.FTCH.COM\ALLPROJECTS\2025\2500384\WORK\REPT\SUBMITTAL DOCUMENTATION\ACT 381_221 WEST WEBSTER LLC BROWNFIELD PLAN.DOCX March 3, 2025 Fishbeck | Page 3 interior demolition activities, significant amounts of ACMs were identified in which abatement was necessary. Asbestos abatement activities are anticipated at $150,000. Total Local Only Activity cost is $550,000 2.1.3 Brownfield Plan/Work Plan Preparation Preparation of the Brownfield Plan is estimated to cost $8,000 which is split between pre-approved state and local only eligible activities. 2.1.4 Brownfield Plan/Work Plan Implementation Implementation of the Brownfield Plan is estimated to cost $5,000. 2.1.5 Authority Administration Cost Eligible costs incurred by the Authority are included in this plan as an eligible expense at 10% of annual local tax increment capture per year (after the sunset of the PA 146). These expenses will be reimbursed with local tax increment revenues only and are estimated to total as much as $105,018. 2.1.6 Local Brownfield Revolving Fund The Authority intends to capture tax increments for deposits in the LBRF for an estimated five years, or as allowed by the statute. This capture is estimated to be up to $306,814. 2.2 Summary of Eligible Activities Environmental Activities Pre-approved environmental costs and department specific activities are anticipated to be reimbursed through a Brownfield Plan with state and local tax increment revenues. Non-Environmental Activities As the City of Muskegon is a QLGU, additional non-environmental costs defined in Section 2(o)(ii) of Act 381 can be reimbursed through a Brownfield Plan. While all eligible activities as defined by Act 381 are eligible, this plan is estimated to provide reimbursement of eligible building/site demolition, asbestos abatement, and development of the Brownfield Plan costs. These costs will be reimbursed with state taxes (for a portion of the demolition up to $250,000) and local-only tax increment revenues. Authority Expenses Eligible administrative costs incurred by the Authority are included as a flat fee of 10% of local tax capture. Administration expenses will be reimbursed with local tax increment revenues only. 2.3 Estimate of Captured Taxable Value and Tax Increment Revenues The base taxable value will be the 2024 combined taxable value, $1,630,486. An estimate of the captured taxable value for this redevelopment by year is depicted in Table 2. This plan captures all available tax increment revenues, including real and personal property tax increment revenues. The Project started construction in 2021 and investment in the Project has occurred every year since. Tax increment revenue collection will start within five years of the adoption of this plan and is anticipated to begin as early as 2025. Future taxable value estimates have been derived using the redevelopment information provided by the Developer and reviewing market comparables. After the completion of the project, the projected taxable value is estimated at $2,630,486. In addition to tax increment financing, a PA 146 Obsolete Property Rehabilitation Tax Abatement was approved for the Project in 2021. The PA 146 was approved to abate the local taxes through 2029 \\CORP.FTCH.COM\ALLPROJECTS\2025\2500384\WORK\REPT\SUBMITTAL DOCUMENTATION\ACT 381_221 WEST WEBSTER LLC BROWNFIELD PLAN.DOCX March 3, 2025 Fishbeck | Page 4 and a 50% abatement of the state taxes through 2027. Reimbursements will be made on the actual tax increment that is realized. The estimated captured taxable value for this redevelopment by year and in aggregate for each taxing jurisdiction is depicted in tabular form (Table 2). Once eligible expenses are reimbursed, the Authority may capture up to five full years of the tax increment and deposit the revenues into an LBRF or an amount not to exceed the total cost of eligible activities. The Authority intends to capture tax increments for deposits in the LBRF for an estimated five years. The plan also includes a flat fee of 10% of the local tax increment for administrative and operating expenses of the Authority. A summary of the estimated reimbursement schedule and the amount of capture into the LBRF by year and in aggregate is presented in Table 3. 2.4 Method of Financing and Description of Advances Made by the Municipality The eligible activities contemplated under this plan will be financed by the Developer, as outlined in this plan and the accompanying development and reimbursement agreement (Appendix 2). No advances from the City are anticipated at this time. 2.5 Maximum Amount of Note or Bonded Indebtedness At this time, there are no plans by the Authority to incur indebtedness to support the development of this site, but such plans could be made in the future to assist in the development if the Authority so chooses. 2.6 Duration of Brownfield Plan The Authority intends to begin the capture of tax increment as early as 2025. This plan will then remain in place for 24 years, or until the eligible activities have been fully reimbursed and up to five full years of capture into the LBRF (not to exceed the cost of eligible activities or 30 years), whichever occurs sooner. An analysis showing the reimbursement schedule is attached in Table 3. 2.7 Estimated Impact of Tax Increment Financing on Revenues of Taxing Jurisdictions An estimate of the impact of tax increment financing on the revenues of all taxing jurisdictions is illustrated in detail in Table 2. 2.8 Legal Description, Property Map, Statement of Qualifying Characteristics, and Personal Property A map showing eligible property dimensions is attached in Figure 1. The legal descriptions for the parcels are as follows: Land Parcels: Parcel ID: 61-24-205-333-0001-00 CITY OF MUSKEGON REVISED PLAT OF 1903 LOT 1 TO 9 INCL BLK 333 Parcel ID: 61-24-205-333-0001-01 CITY OF MUSKEGON BUILDING ON LEASED LAND PARCEL Parcel ID: 61-24-205-333-0001-02 CITY OF MUSKEGON BUILDING ON LEASED LAND PARCEL OPRA Parcels: Parcel ID: 61-24-958-021-0040-00 \\CORP.FTCH.COM\ALLPROJECTS\2025\2500384\WORK\REPT\SUBMITTAL DOCUMENTATION\ACT 381_221 WEST WEBSTER LLC BROWNFIELD PLAN.DOCX March 3, 2025 Fishbeck | Page 5 CITY OF MUSKEGON- OPRA REHAB REAL ID NUMBER 24-205-333-0001-00 BEGINNING 12/30/2021 ENDING 12/30/2029 CERT #3-21-0040 Parcel ID: 61-24-957-021-0040-00 CITY OF MUSKEGON- OPRA REHAB (REAL FROZEN) REAL ID NUMBER 24-205-333-0001-00 BEGINNING 12/30/2021 ENDING 12/30/2029 CERT #3-21-0040 The property is located in the City of Muskegon, a QLGU pursuant to Act 381. The property qualifies as “eligible property” under Act 381 on the basis of meeting the definition of “facility.” This Brownfield Plan does intend to capture tax increment revenues associated with personal property tax, if available. 2.9 Estimates of Residents and Displacement of Individuals/Families There are no residents or families residing at this property, and thus no residents, families, or individuals will be displaced by the project. 2.10 Plan for Relocation of Displaced Persons No persons reside on the eligible property. Therefore, this section is not applicable. 2.11 Provisions for Relocation Costs No persons reside on the eligible property. Therefore, this section is not applicable. 2.12 Strategy for Compliance with Michigan’s Relocation Assistance Law No persons reside on the eligible property. Therefore, this section is not applicable. 2.13 Other Material that the Authority or Governing Body Considers Pertinent None. \\CORP.FTCH.COM\ALLPROJECTS\2025\2500384\WORK\REPT\SUBMITTAL DOCUMENTATION\ACT 381_221 WEST WEBSTER LLC BROWNFIELD PLAN.DOCX Figures e enu im Av dd ke Ru La VICINITY MAP MICHIGAN Veterans Memorial Park Bear Lake Beach Park M 120 North Muskegon Verplanks / CITY OF MUSKEGON _ ^ Former Cobb MUSKEGON COUNTY plant site M 120 North Verplanks Muskegon Waterfront Sports Park ive Hard copy is Dr intended to be an 8.5"x11" when im ay plotted. Scale(s) dd indicated and Ru rkw r graphic quality may ive Pa not be accurate for us k egon R any other size. M es Jon J Marquette Avenue ses Mo 221 West Webster Street r Green Acres Rive ive BUS US 31 Park n go Dr ke line Te ore s Mu rra Muskegon, Michigan Sh 1s c SITE Brownfield Plan eS Stt tre re et et Muskegon M 46 PLOT INFO: Z:\2025\2500384\CAD\GIS\ProProj\Michigan ESA.aprx Layout: FIG01_Location Map Date: 2/27/2025 8:50 AM User: ebuyce Division Street Oakwood West Southern Avenue Cemetery West Laketon Avenue West Laketon Avenue East Laketon Avenue Catholic Central High School Sanford Street South Getty Street Peck Street BUS US 31 BUS US 31 PROJECT NO. 2500384 LOCATION MAP Henry Street FIGURE NO. NORTH 0 1,000 FEET 2,000 DATA SOURCES: ESRI STREET MAP. 1 ©Copyright 2025 All Rights Reserved man Boulevard ef fe 1s rs on tS e LEGEND Av t St ay Cl Approximate Property Boundary W Hennesse's Irish Pub St. Marys of the Immaculate Conception rectory e Av Je St. Mary of the y ffe a Immaculate Cl Conception Hard copy is rs W intended to be on 8.5"x11" when ve plotted. Scale(s) A indicated and St er graphic quality may st not be accurate for any other size. eb W W 221 West Webster Street 61-24-205-333-0001-01 ve A 1s on eg tS k us t Muskegon, Michigan Brownfield Plan Greater M W Muskegon Woman's Club 61-24-205-333-0001-00 2n d Muskegon Art St Museum 1s 61-24-205-333-0001-02 tS t ve A on eg PLOT INFO: Z:\2025\2500384\CAD\GIS\ProProj\Michigan ESA.aprx Layout: FIG02_Site Map Date: 2/27/2025 8:50 AM User: ebuyce k us M W American Red Cross Central United Methodist Church 1s t St e Av n 2n go d St e u sk M W H a mi l ton Ave PROJECT NO. St 2500384 SITE MAP d 3r 2n d FIGURE NO. 2nd St St 2 FEET NORTH 0 75 150 DATA SOURCES: ESRI HYRBID REFERENCE LAYER & MiSAIL IMAGERY. ©Copyright 2025 All Rights Reserved e Av n 221 W. Webster Avenue | Muskegon, MI 49440 Listed By: TROY WASSERMAN BRYAN BENCH 231 750 9627 231 578 2508 troywasserman@corerealty.com bryanbench@corerealty.com FLOOR 1 PROPERTY OVERVIEW Core Plaza is a 42,888 square foot building currently occupied and being simultaneously restored level by level, to a full- service multi-use development in downtown Muskegon. FLOOR 1 | LUMBERMAN’S VAULT Be a part of Muskegon's newest downtown hot spot. Lumberman's Vault will be a showcase for some of Muskegon's best ingredients, chefs, and entrepreneurs. The food stalls will house chef-driven concepts that work cohesively together. Lumberman's Vault will also be home to Liquid Assets, Muskegon's newest cocktail bar and lounge. The street-level mezzanine overlooking the food court and cocktail lounge will be home to retail bays perfect for boutique like storefronts, Salons, gift shops and more. The building will be a destination hub connecting people through food while preserving the legacy of a celebrated downtown landmark. FLOOR 2 | BOUTIQUE RETAIL SUITES The second floor which will overlook The Lumberman's Vault food court and Liquid Assets Cocktail & Wine Bar will be home to eight unique, boutique like retail suites. Various suite sizes and build-out options are available. The restoration of the building is centered on preserving many original features such as the bank vault, safety deposit boxes, newspaper clippings and construction photos. Call or email to set up a tour to see for yourself one of Downtown Muskegon's exciting new projects. FLOORS 3 & 4 | OCCUPIED BY CORPORATE OFFICE USERS FLOOR 5 | COWORKING OFFICE SUITES Multiple lease options are available ranging in size from 106 – 197 SF. Rates are gross, with use of nicely-appointed reception area, conference rooms, and employee kitchen/break area. FLOOR 6 | OCCUPIED BY CORPORATE OFFICE USER Listed By: TROY WASSERMAN BRYAN BENCH 231 750 9627 231 578 2508 troywasserman@corerealty.com bryanbench@corerealty.com FLOOR 5 Listed By: TROY WASSERMAN BRYAN BENCH 231 750 9627 231 578 2508 troywasserman@corerealty.com bryanbench@corerealty.com FLOOR 5 Listed By: TROY WASSERMAN BRYAN BENCH 231 750 9627 231 578 2508 troywasserman@corerealty.com bryanbench@corerealty.com Tables Table 1 – Summary of Eligible Costs Act 381 Brownfield Plan 221 Webster, Muskegon, Michigan EGLE Eligible Activities Costs and Schedule EGLE Eligible Activities Cost Department Specific Activities $ 25,500 Phase I ESA, Phase II ESA, BEA $ 20,500 Asbestos Survey $ 5,000 EGLE Eligible Activities Subtotal $ 25,500 Brownfield Plan/Work Plan Preparation $ 2,000 EGLE Eligible Activities Total Costs $ 27,500 MEDC Eligible Activities Costs and Schedule MEDC Eligible Activities Cost Demolition (Pre-Approved) $ 250,000 Demolition $ 250,000 MEDC Eligible Activities Subtotal $ 250,000 Brownfield Plan/Work Plan Preparation $ 2,000 MEDC Eligible Activities Total Costs $ 252,000 Local Only Eligible Activities Costs and Schedule Local Only Eligible Activities Cost Demolition Activities $ 550,000 Site Demolition $ 400,000 Asbestos Abatement $ 150,000 Local Only Eligible Activities Subtotal $ 550,000 Brownfield Plan/Work Plan Preparation $ 4,000 Brownfield Plan/Work Plan Implementation $ 5,000 Local Only Eligible Activities Total Costs $ 559,000 3/3/2025 Table 2 – Total Captured Incremental Taxes Schedule Act 381 Brownfield Plan 221 West Webster Muskegon, MI OPRA Period Estimated Taxable Value (TV) Increase Rate: 2% increase per year Plan Year 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Totals Calendar Year 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047 2048 *Base Taxable Value $ 1,630,486 $ 1,630,486 $ 1,630,486 $ 1,630,486 $ 1,630,486 $ 1,630,486 $ 1,630,486 $ 1,630,486 $ 1,630,486 $ 1,630,486 $ 1,630,486 $ 1,630,486 $ 1,630,486 $ 1,630,486 $ 1,630,486 $ 1,630,486 $ 1,630,486 $ 1,630,486 $ 1,630,486 $ 1,630,486 $ 1,630,486 $ 1,630,486 $ 1,630,486 $ 1,630,486 $ - Future Taxable Value $ 2,630,486 $ 2,683,096 $ 2,736,758 $ 2,791,493 $ 2,847,323 $ 2,904,269 $ 2,962,354 $ 3,021,602 $ 3,082,034 $ 3,143,674 $ 3,206,548 $ 3,270,679 $ 3,336,092 $ 3,402,814 $ 3,470,870 $ 3,540,288 $ 3,611,094 $ 3,683,315 $ 3,756,982 $ 3,832,121 $ 3,908,764 $ 3,986,939 $ 4,066,678 $ 4,148,011 $ - Incremental Difference (New TV - Base TV) $ 1,000,000 $ 1,052,610 $ 1,106,272 $ 1,161,007 $ 1,216,837 $ 1,273,783 $ 1,331,868 $ 1,391,116 $ 1,451,548 $ 1,513,188 $ 1,576,062 $ 1,640,193 $ 1,705,606 $ 1,772,328 $ 1,840,384 $ 1,909,802 $ 1,980,608 $ 2,052,829 $ 2,126,496 $ 2,201,635 $ 2,278,278 $ 2,356,453 $ 2,436,192 $ 2,517,525 $ - School Capture Millage Rate School Operating 18.0000 $ 18,000 $ 18,947 $ 19,913 $ 20,898 $ 21,903 $ 22,928 $ 23,974 $ 25,040 $ 26,128 $ 27,237 $ 28,369 $ 29,523 $ 30,701 $ 31,902 $ 33,127 $ 34,376 $ 35,651 $ 36,951 $ 38,277 $ 39,629 $ 41,009 $ 42,416 $ 43,851 $ 45,315 $ 736,067 State Education Tax (SET) 6.0000 $ 6,000 $ 6,316 $ 6,638 $ 6,966 $ 7,301 $ 7,643 $ 7,991 $ 8,347 $ 8,709 $ 9,079 $ 9,456 $ 9,841 $ 10,234 $ 10,634 $ 11,042 $ 11,459 $ 11,884 $ 12,317 $ 12,759 $ 13,210 $ 13,670 $ 14,139 $ 14,617 $ 15,105 $ 245,356 School Total 24.0000 $ 24,000 $ 25,263 $ 26,551 $ 27,864 $ 29,204 $ 30,571 $ 31,965 $ 33,387 $ 34,837 $ 36,317 $ 37,825 $ 39,365 $ 40,935 $ 42,536 $ 44,169 $ 45,835 $ 47,535 $ 49,268 $ 51,036 $ 52,839 $ 54,679 $ 56,555 $ 58,469 $ 60,421 $ 981,423 Local Capture Millage Rate County Operating 5.5637 $ 5,564 $ 5,856 $ 6,155 $ 6,459 $ 6,770 $ 7,087 $ 7,410 $ 7,740 $ 8,076 $ 8,419 $ 8,769 $ 9,126 $ 9,489 $ 9,861 $ 10,239 $ 10,626 $ 11,020 $ 11,421 $ 11,831 $ 12,249 $ 12,676 $ 13,111 $ 13,554 $ 14,007 $ 227,514 County Museum 0.3169 $ 317 $ 334 $ 351 $ 368 $ 386 $ 404 $ 422 $ 441 $ 460 $ 480 $ 499 $ 520 $ 541 $ 562 $ 583 $ 605 $ 628 $ 651 $ 674 $ 698 $ 722 $ 747 $ 772 $ 798 $ 12,959 County Veterans 0.0739 $ 74 $ 78 $ 82 $ 86 $ 90 $ 94 $ 98 $ 103 $ 107 $ 112 $ 116 $ 121 $ 126 $ 131 $ 136 $ 141 $ 146 $ 152 $ 157 $ 163 $ 168 $ 174 $ 180 $ 186 $ 3,022 Senior Citizen Services 0.4921 $ 492 $ 518 $ 544 $ 571 $ 599 $ 627 $ 655 $ 685 $ 714 $ 745 $ 776 $ 807 $ 839 $ 872 $ 906 $ 940 $ 975 $ 1,010 $ 1,046 $ 1,083 $ 1,121 $ 1,160 $ 1,199 $ 1,239 $ 20,123 Central Dispatch 0.2952 $ 295 $ 311 $ 327 $ 343 $ 359 $ 376 $ 393 $ 411 $ 428 $ 447 $ 465 $ 484 $ 503 $ 523 $ 543 $ 564 $ 585 $ 606 $ 628 $ 650 $ 673 $ 696 $ 719 $ 743 $ 12,072 Community College 2.1693 $ 2,169 $ 2,283 $ 2,400 $ 2,519 $ 2,640 $ 2,763 $ 2,889 $ 3,018 $ 3,149 $ 3,283 $ 3,419 $ 3,558 $ 3,700 $ 3,845 $ 3,992 $ 4,143 $ 4,297 $ 4,453 $ 4,613 $ 4,776 $ 4,942 $ 5,112 $ 5,285 $ 5,461 $ 88,708 MAISD 4.6773 $ 4,677 $ 4,923 $ 5,174 $ 5,430 $ 5,692 $ 5,958 $ 6,230 $ 6,507 $ 6,789 $ 7,078 $ 7,372 $ 7,672 $ 7,978 $ 8,290 $ 8,608 $ 8,933 $ 9,264 $ 9,602 $ 9,946 $ 10,298 $ 10,656 $ 11,022 $ 11,395 $ 11,775 $ 191,267 City Operating 9.8554 $ 9,855 $ 10,374 $ 10,903 $ 11,442 $ 11,992 $ 12,554 $ 13,126 $ 13,710 $ 14,306 $ 14,913 $ 15,533 $ 16,165 $ 16,809 $ 17,467 $ 18,138 $ 18,822 $ 19,520 $ 20,231 $ 20,957 $ 21,698 $ 22,453 $ 23,224 $ 24,010 $ 24,811 $ 403,013 City Sanitation 2.9364 $ 2,936 $ 3,091 $ 3,248 $ 3,409 $ 3,573 $ 3,740 $ 3,911 $ 4,085 $ 4,262 $ 4,443 $ 4,628 $ 4,816 $ 5,008 $ 5,204 $ 5,404 $ 5,608 $ 5,816 $ 6,028 $ 6,244 $ 6,465 $ 6,690 $ 6,919 $ 7,154 $ 7,392 $ 120,077 Hackley Library 2.3516 $ 2,352 $ 2,475 $ 2,602 $ 2,730 $ 2,862 $ 2,995 $ 3,132 $ 3,271 $ 3,413 $ 3,558 $ 3,706 $ 3,857 $ 4,011 $ 4,168 $ 4,328 $ 4,491 $ 4,658 $ 4,827 $ 5,001 $ 5,177 $ 5,358 $ 5,541 $ 5,729 $ 5,920 $ 96,163 MPS Sinking 0.9712 $ 971 $ 1,022 $ 1,074 $ 1,128 $ 1,182 $ 1,237 $ 1,294 $ 1,351 $ 1,410 $ 1,470 $ 1,531 $ 1,593 $ 1,656 $ 1,721 $ 1,787 $ 1,855 $ 1,924 $ 1,994 $ 2,065 $ 2,138 $ 2,213 $ 2,289 $ 2,366 $ 2,445 $ 39,715 Local Total 29.7030 $ 29,703 $ 31,266 $ 32,860 $ 34,485 $ 36,144 $ 37,835 $ 39,560 $ 41,320 $ 43,115 $ 44,946 $ 46,814 $ 48,719 $ 50,662 $ 52,643 $ 54,665 $ 56,727 $ 58,830 $ 60,975 $ 63,163 $ 65,395 $ 67,672 $ 69,994 $ 72,362 $ 74,778 $ 1,214,633 Non-Capturable Millages Millage Rate Community College Debt 0.2700 $ 135 $ 142 $ 149 $ 157 $ 164 $ 172 $ 180 $ 188 $ 196 $ 204 $ 213 $ 221 $ 461 $ 479 $ 497 $ 516 $ 535 $ 554 $ 574 $ 594 $ 615 $ 636 $ 658 $ 680 $ 8,920 Hackley Debt 0.4999 $ 250 $ 263 $ 277 $ 290 $ 304 $ 318 $ 333 $ 348 $ 363 $ 378 $ 394 $ 410 $ 853 $ 886 $ 920 $ 955 $ 990 $ 1,026 $ 1,063 $ 1,101 $ 1,139 $ 1,178 $ 1,218 $ 1,259 $ 16,514 MPS Debt (2020 & 2021) 7.7500 $ 3,875 $ 4,079 $ 4,287 $ 4,499 $ 4,715 $ 4,936 $ 5,161 $ 5,391 $ 5,625 $ 5,864 $ 6,107 $ 6,356 $ 13,218 $ 13,736 $ 14,263 $ 14,801 $ 15,350 $ 15,909 $ 16,480 $ 17,063 $ 17,657 $ 18,263 $ 18,880 $ 19,511 $ 256,024 Non-Capturable Total 8.5199 $ 4,260 $ 4,484 $ 4,713 $ 4,946 $ 5,184 $ 5,426 $ 5,674 $ 5,926 $ 6,184 $ 6,446 $ 6,714 $ 6,987 $ 14,532 $ 15,100 $ 15,680 $ 16,271 $ 16,875 $ 17,490 $ 18,118 $ 18,758 $ 19,411 $ 20,077 $ 20,756 $ 21,449 $ 281,458 Total Tax Increment Revenue (TIR) Available for Capture $ 12,000 $ 12,631 $ 13,275 $ 27,864 $ 29,204 $ 68,406 $ 71,525 $ 74,707 $ 77,952 $ 81,263 $ 84,639 $ 88,083 $ 91,596 $ 95,179 $ 98,834 $ 102,562 $ 106,365 $ 110,243 $ 114,199 $ 118,234 $ 122,350 $ 126,549 $ 130,831 $ 135,199 $ 1,993,692 NOTES: Winter 2024 and Summer 2024 Millages 3/3/2025 Table 3 – Estimated Reimbursement Schedule Act 381 Brownfield Plan 221 W Webster, LLC 221 W Webster Street Muskegon, MI Developer School & Local Maximum Proportionality Local-Only Taxes Total Taxes Reimbursement Estimated Capture State 45.0% $ 172,656 $ - $ 172,656 Estimated Total Administrative Fees $ 105,018 24 Local 55.0% $ 106,844 $ 559,000 $ 665,844 Years of Plan: State Brownfield Redevelopment Fund $ 37,495 TOTAL Local Brownfield Revolving Fund $ 306,814 Local-Only 66.7% $ 559,000 $ 559,000 Pre-Approved 33.3% $ 279,500 $ - $ 279,500 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047 2048 TOTAL Total State Incremental Revenue $ 24,000 $ 25,263 $ 26,551 $ 27,864 $ 29,204 $ 30,571 $ 31,965 $ 33,387 $ 34,837 $ 36,317 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 299,957 OPRA (50%) $ 12,000 $ 12,631 $ 13,275 $ 37,907 State Brownfield Redevelopment Fund (50% of SET) $ 3,000 $ 3,158 $ 3,319 $ 3,483 $ 3,651 $ 3,821 $ 3,996 $ 4,173 $ 4,355 $ 4,540 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 37,495 State TIR Available for Reimbursement $ 9,000 $ 9,473 $ 9,956 $ 24,381 $ 25,554 $ 26,749 $ 27,969 $ 29,213 $ 30,482 $ 31,777 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 224,556 Total Local Incremental Revenue $ 29,703 $ 31,266 $ 32,860 $ 34,485 $ 36,144 $ 37,835 $ 39,560 $ 41,320 $ 43,115 $ 44,946 $ 46,814 $ 48,719 $ 50,662 $ 52,643 $ 54,665 $ 56,727 $ 58,830 $ 60,975 $ 63,163 $ 65,395 $ 67,672 $ 69,994 $ 72,362 $ 74,778 $ 1,214,633 OPRA (100%) $ 29,703 $ 31,266 $ 32,860 $ 34,485 $ 36,144 $ 164,457 BRA Administrative Fee (10%) $ - $ - $ - $ - $ - $ 3,784 $ 3,956 $ 4,132 $ 4,312 $ 4,495 $ 4,681 $ 4,872 $ 5,066 $ 5,264 $ 5,466 $ 5,673 $ 5,883 $ 6,098 $ 6,316 $ 6,540 $ 6,767 $ 6,999 $ 7,236 $ 7,478 $ 105,018 Local TIR Available for Reimbursement $ - $ - $ - $ - $ - $ 34,052 $ 35,604 $ 37,188 $ 38,804 $ 40,452 $ 42,132 $ 43,847 $ 45,595 $ 47,379 $ 49,198 $ 51,054 $ 52,947 $ 54,878 $ 56,847 $ 58,856 $ 60,905 $ 62,994 $ 65,126 $ 67,300 $ 945,159 Total State & Local TIR Available $ 9,000 $ 9,473 $ 9,956 $ 24,381 $ 25,554 $ 60,801 $ 63,574 $ 66,402 $ 69,286 $ 72,229 $ 42,132 $ 43,847 $ 45,595 $ 47,379 $ 49,198 $ 51,054 $ 52,947 $ 54,878 $ 56,847 $ 58,856 $ 60,905 $ 62,994 $ 65,126 $ 67,300 $ 1,169,715 Beginning DEVELOPER Balance Reimbursement Balance $ 838,500 $ 829,500 $ 820,027 $ 810,070 $ 785,689 $ 760,135 $ 699,334 $ 635,761 $ 569,359 $ 520,196 $ 479,745 $ 437,612 $ 393,765 $ 348,170 $ 300,791 $ 251,592 $ 200,538 $ 147,591 $ 92,714 $ 35,867 $ - $ - $ - $ - $ - $ - Pre-Approved Activities (EGLE/MEDC) $ 279,500 $ 279,500 $ 270,500 $ 261,027 $ 251,070 $ 226,689 $ 201,135 $ 140,334 $ 76,761 $ 10,359 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - State Tax Reimbursement $ 172,656 $ 9,000 $ 9,473 $ 9,956 $ 24,381 $ 25,554 $ 26,749 $ 27,969 $ 29,213 $ 10,359 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 172,656 Local Tax Reimbursement $ 106,844 $ - $ - $ - $ - $ - $ 34,052 $ 35,604 $ 37,188 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 106,844 Total Pre-Approved Reimbursement Balance $ 270,500 $ 261,027 $ 251,070 $ 226,689 $ 201,135 $ 140,334 $ 76,761 $ 10,359 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Local-Only Costs $ 559,000 $ 559,000 $ 559,000 $ 559,000 $ 559,000 $ 559,000 $ 559,000 $ 559,000 $ 559,000 $ 559,000 $ 520,196 $ 479,745 $ 437,612 $ 393,765 $ 348,170 $ 300,791 $ 251,592 $ 200,538 $ 147,591 $ 92,714 $ 35,867 $ - $ - $ - $ - $ - Local Tax Reimbursement $ 559,000 $ - $ - $ - $ - $ - $ - $ - $ - $ 38,804 $ 40,452 $ 42,132 $ 43,847 $ 45,595 $ 47,379 $ 49,198 $ 51,054 $ 52,947 $ 54,878 $ 56,847 $ 35,867 $ - $ - $ - $ - $ 559,000 Total Local-Only Reimbursement Balance $ 559,000 $ 559,000 $ 559,000 $ 559,000 $ 559,000 $ 559,000 $ 559,000 $ 559,000 $ 520,196 $ 479,745 $ 437,612 $ 393,765 $ 348,170 $ 300,791 $ 251,592 $ 200,538 $ 147,591 $ 92,714 $ 35,867 $ - $ - $ - $ - $ - $ 559,000 Total Annual Developer Reimbursement $ 9,000 $ 9,473 $ 9,956 $ 24,381 $ 25,554 $ 60,801 $ 63,574 $ 66,402 $ 49,163 $ 40,452 $ 42,132 $ 43,847 $ 45,595 $ 47,379 $ 49,198 $ 51,054 $ 52,947 $ 54,878 $ 56,847 $ 35,867 $ - $ - $ - $ - $ 838,500 LOCAL BROWNFIELD REVOLVING FUND LBRF Deposits * $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 306,814 State Tax Capture $ 27,500 $ - $ - $ - $ - $ - $ - $ - $ - $ 20,124 $ 7,376 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 27,500 Local Tax Capture $ 279,314 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 22,989 $ 60,905 $ 62,994 $ 65,126 $ 67,300 $ 279,314 Total LBRF Capture $ 306,814 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - * Up to five years of capture for LBRF Deposits after eligible activities are reimbursed. May be taken from state and local TIR. 3/3/2025 Appendix 1 Page Intentionally Left Blank Resolutions Pending Appendix 2 Page Intentionally Left Blank Development and Reimbursement Agreement Pending Appendix 3 Page Intentionally Left Blank Notices Pending Appendix 4 Page Intentionally Left Blank Notices Pending Appendix 5 DDA Agenda Item V.A. Muskegon Downtown Development Authority Agenda Item V.A. for 4-8-25 Shaw Walker Workplan 3, Barr Engineering Co. Requesting Party: Barr Engineering Co. Outline of Request: Approval of Proposal from Barr Engineering Co. for Professional Environmental Engineering and Consulting Services for the Former Shaw Walker Furniture Company Facility (Building 5). Background: Barr Engineering Co. has submitted a proposal dated March 25, 2025, to provide environmental engineering and consulting services for the redevelopment of Building 5 at the Former Shaw Walker Furniture Company Facility. The proposed scope of work includes: Preparation of Brownfield Work Plan 03: Approved by EGLE on March 12, 2025 (Budget: $3,000). Completion Report for Selective Demolition and Abatement: Summarizing work completed, including documentation of waste disposal, air monitoring, and related compliance activities (Budget: $7,600). Project Management Support: Coordination of documentation and review of invoices, along with regular meetings with contractors (Budget: $15,000). Total Budget: $25,600 (Time and materials basis). Approval of the proposal from Barr Engineering Co. for the completion of tasks associated with Brownfield Work Plan 03 and related demolition and abatement activities. Staff Comments: City staff has reviewed the proposal and suggest approval. Suggested Motion: I move to approve the proposal submitted by Barr Engineering for the activities planned for Work Plan 3 and authorize the board chair to sign. DDA FINANCIAL FOR 03/31/2025 FY2024-25 BUDGET FY TOTALS Revenues FY 2023-24 BUDGET FY2023-24 ACTUAL (updated) MARCH 31, 2025 Tax Increment $ 481,207.00 $ 481,207.00 $ 504,000.00 $ 516,659.00 2387.5 3rd street salt Reimbursement - State $ - $ - $ - $ - 10675 Summit Lawn Care Event Revenue* $ - $ - $ - $ - 484.74 Good Temps Trans From Lakeside Bid $ - $ - $ - $ 600.00 650 Summit Lawn Care Interest Income $ 1,450.00 $ 1,867.28 $ 1,300.00 $ 966.07 1000 Miner Supply Salt Fundraising Revenue 1500 Miner Supply Salt BID Income (or $50,000 levy)** $ - $ 3,136.62 $ - $ - 216.54 Good Temps Sponsorship $ - $ - $ - $ - 72.18 Good Temps Former Mall Brownfield Income (GF) $ - $ - $ - $ - 60.5 Good Temps Total $ 482,657.00 $ 486,210.90 $ 505,300.00 $ 518,225.07 30.25 Good Temps 2600 Summit Lawn Care Expenses FY 2022-23 FY2023-24 ACTUAL FY 2024-25 FY 2024-25 48.12 Good Temps Business Dev. Manager Wages $ - $ 76,358.74 $ 70,650.06 2387.5 Terrascape Architects Inc. Trans to GF - Marketing, Events, Overhead $ - $ - 6825 Summit Lawn Care FICA (7.65%) $ - $ 5,400.78 $ - $ 5,129.93 336.84 Good Temps Workers Comp (2%) $ - $ 346.26 $ - $ 620.49 1960 Action Industrial (Salt) Insurance $ - $ 22,272.66 $ - $ 18,531.02 262.68 Good Temps Residency Bonus (4%) $ - $ - 419.75 Good Temps Life Insurance (0.24%) $ - $ 315.58 $ - $ 273.75 290.88 Good Temps 401(k) (6%) $ - $ 6,639.66 $ - $ 6,197.29 409.02 Good Temps Total Salaries/Benefits $ 124,986.00 $ 111,333.68 $ 116,124.69 $ 101,402.54 48.12 Good Temps Walkability Improvements $ - $ - 32664.62 Streetscape/Wayfinding / Walkability $ 25,000.00 $ 20,075.00 $ 25,000.00 $ 10,740.00 Public Art (Downtown Initiative) $ - $ - Landscaping $ 19,170.00 $ 27,290.82 $ 40,896.00 $ 28,438.71 Barry's Greenhouse Removal of lights Snow Removal $ 64,941.00 $ 51,396.75 $ 32,719.29 $ 32,664.62 5000 Façade Program $ 67,339.00 $ 57,664.36 $ 154,394.96 $ 88,129.00 Downtown Park(s)**** $ 9,778.00 $ 839.48 $ 5,000.00 $ 5,000.00 wowie Marketing/Promotions $ 12,000.00 $ 13,882.20 $ 14,000.00 $ 9,652.17 45 wowie Blight $ 50,000.00 45 Earle Press Office Space and Misc Operating $ 9,000.00 $ 434.80 $ 1,000.00 $ 1,345.39 230 wowie Total Recurring Costs $ 207,228.00 $ 171,583.41 $ 323,010.25 $ 175,969.89 45 Crisp Country Acres (hay bales) Chalet $ - $ - $ 2,400.00 $ - 1300 Earle Press (Holidays in the City brochure) Property Appraisal $ - $ - $ 5,000.00 $ - 3634.26 Earle Press (Newsletter) Morris Street Lot $ - $ - $ - 2365.74 wowie Taste of Muskegon $ - $ - 45 Earle Press (Holidays in the City Reprint) Lakeshore Art Festival $ - 907.69 Just Us Dvivine Health and Wellness (DDA Award) Projects and Events $ - $ - $ 7,400.00 $ - 1000 Name Cheap County Debt Payments ($1M) $ - $ - $ - 34.48 Mercy Health Arena HVAC/Roof******* $ 130,000.00 $ 130,000.00 $ 130,000.00 $ - Other Debt Payments (smartzone) $ - $ - $ - 9652.17 Total Debt Payments $ 130,000.00 $ 130,000.00 $ 130,000.00 $ - Total Expenses $ 462,214.00 $ 412,917.09 $ 576,534.94 $ 277,372.43 Net Rev/Expenses $ 20,443.00 $ 73,293.81 $ (71,234.94) $ 240,852.64 Fund Balance at Beginning of Year $ 231,880.35 $ 305,174.16 Fund Balance at End of Year $ 305,174.16 $ 546,026.80 \\muskdata\data\Planning\COMMON\DDA - BRA\DDA-BRA 2025\040825 DDA-BRA\DDA\DDA March 2025 DDA FINANCIAL FOR 03/31/2025 FY2024-25 BUDGET FY TOTALS Revenues FY 2023-24 BUDGET FY2023-24 ACTUAL (updated) MARCH 31, 2025 Tax Increment $ 481,207.00 $ 481,207.00 $ 504,000.00 $ 516,659.00 Reimbursement - State $ - $ - $ - $ - Event Revenue* $ - $ - $ - $ - Trans From Lakeside Bid $ - $ - $ - $ 600.00 Interest Income $ 1,450.00 $ 1,867.28 $ 1,300.00 $ 966.07 Fundraising Revenue BID Income (or $50,000 levy)** $ - $ 3,136.62 $ - $ - Sponsorship $ - $ - $ - $ - Former Mall Brownfield Income (GF) $ - $ - $ - $ - Total $ 482,657.00 $ 486,210.90 $ 505,300.00 $ 518,225.07 Expenses FY 2022-23 FY2023-24 ACTUAL FY 2024-25 FY 2024-25 Business Dev. Manager Wages $ - $ 76,358.74 $ 70,650.06 Trans to GF - Marketing, Events, Overhead $ - $ - FICA (7.65%) $ - $ 5,400.78 $ - $ 5,129.93 Workers Comp (2%) $ - $ 346.26 $ - $ 620.49 Insurance $ - $ 22,272.66 $ - $ 18,531.02 Residency Bonus (4%) $ - $ - Life Insurance (0.24%) $ - $ 315.58 $ - $ 273.75 401(k) (6%) $ - $ 6,639.66 $ - $ 6,197.29 Total Salaries/Benefits $ 124,986.00 $ 111,333.68 $ 116,124.69 $ 101,402.54 Walkability Improvements $ - $ - Streetscape/Wayfinding / Walkability $ 25,000.00 $ 20,075.00 $ 25,000.00 $ 10,740.00 Public Art (Downtown Initiative) $ - $ - Landscaping $ 19,170.00 $ 27,290.82 $ 40,896.00 $ 28,438.71 Snow Removal $ 64,941.00 $ 51,396.75 $ 32,719.29 $ 32,664.62 Façade Program $ 67,339.00 $ 57,664.36 $ 154,394.96 $ 88,129.00 Downtown Park(s)**** $ 9,778.00 $ 839.48 $ 5,000.00 $ 5,000.00 Marketing/Promotions $ 12,000.00 $ 13,882.20 $ 14,000.00 $ 9,652.17 Blight $ 50,000.00 Office Space and Misc Operating $ 9,000.00 $ 434.80 $ 1,000.00 $ 1,345.39 Total Recurring Costs $ 207,228.00 $ 171,583.41 $ 323,010.25 $ 175,969.89 Chalet $ - $ - $ 2,400.00 $ - Property Appraisal $ - $ - $ 5,000.00 $ - Morris Street Lot $ - $ - $ - Taste of Muskegon $ - $ - Lakeshore Art Festival $ - Projects and Events $ - $ - $ 7,400.00 $ - 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 $ 462,214.00 $ 412,917.09 $ 576,534.94 $ 277,372.43 Net Rev/Expenses $ 20,443.00 $ 73,293.81 $ (71,234.94) $ 240,852.64 Fund Balance at Beginning of Year $ 231,880.35 $ 305,174.16 Fund Balance at End of Year $ 305,174.16 $ 546,026.80 O:\Planning\COMMON\DDA - BRA\DDA-BRA 2025\040825 DDA-BRA\DDA\DDA March 2025 TOTAL FINANCIAL FOR 03/31/2025 FY TOTALS Revenues FY 2023-24 BUDGET FY2023-24 ACTUAL FY2024-25 BUDGET MARCH 31, 2025 Tax Increment $ 481,207.00 $ 481,207.00 $ 504,000.00 $ 516,659.00 Reimbursement - State $ - $ - $ - $ - Event Revenue* $ 94,000.00 $ 100,420.94 $ 200,000.00 $ 23,311.06 Trans From Capital Projects Fund $ - $ - $ - $ 600.00 Interest Income $ 1,450.00 $ 2,096.73 $ 1,300.00 $ 966.07 Fundraising Revenue** $ - $ - $ 15,000.00 $ - BID Income (or $50,000 levy)** $ - $ 3,136.62 $ - $ - Sponsorship $ 297,750.00 $ 316,389.25 $ 42,000.00 $ 18,500.00 Former Mall Brownfield Income (GF) $ - $ - $ - $ - Total $ 874,407.00 $ 903,250.54 $ 762,300.00 $ 560,036.13 Expenses FY 2023-24 FY2023-24 ACTUAL FY 2024-25 FY 2024-25 Business Dev. Manager Wages $ - $ 76,358.74 $ - $ 70,650.06 Trans to GF - Marketing, Events, Overhead $ - $ - $ - $ - FICA (7.65%) $ - $ 5,400.78 $ - $ 5,129.93 Workers Comp (2%) $ - $ 346.26 $ - $ 620.49 Insurance $ - $ 22,272.66 $ - $ 18,531.02 Residency Bonus (4%) $ - $ - $ - $ - Life Insurance (0.24%) $ - $ 315.58 $ - $ 273.75 401(k) (6%) $ - $ 6,639.66 $ - $ 6,197.29 Total Salaries/Benefits $ 124,986.00 $ 111,333.68 $ 116,124.69 $ 101,402.54 BID Expenses $ - $ - $ - $ - Streetscape/Wayfinding / Walkability $ 25,000.00 $ 20,075.00 $ 25,000.00 $ 10,740.00 Public Art (Downtown Initiative) $ - $ - $ - $ - Landscaping $ 19,170.00 $ 103,363.82 $ 40,896.00 $ 28,438.71 Snow Removal $ 64,941.00 $ 77,358.60 $ 32,719.29 $ 32,664.62 Façade Program $ 67,339.00 $ 57,664.36 $ 154,394.96 $ 88,129.00 Downtown Park(s)**** $ 9,778.00 $ 839.48 $ 5,000.00 $ 5,000.00 Marketing/Promotions $ 12,000.00 $ 13,882.20 $ 14,000.00 $ 9,652.17 Blight $ - $ - $ 50,000.00 $ - Office Space and Misc Operating $ 9,000.00 $ 434.80 $ 1,000.00 $ 1,345.39 Total Recurring Costs $ 207,228.00 $ 273,618.26 $ 323,010.25 $ 175,969.89 Chalet $ - $ - $ 2,400.00 $ - Property Appraisal $ - $ - $ 5,000.00 $ - Miscellaneous Events(Cookie Crawl, Letters to San $ 6,800.00 $ 6,398.18 $ 21,000.00 $ 17,893.58 Taste of Muskegon $ 214,700.00 $ 232,114.05 $ 90,000.00 $ 25,115.20 Lakeshore Art Festival $ 161,254.00 $ 99,349.94 $ 160,000.00 $ 19,213.41 Projects and Events $ 382,754.00 $ 337,862.17 $ 278,400.00 $ 62,222.19 County Debt Payments ($1M) $ - $ 3,136.62 $ - $ - Mercy Health Arena HVAC/Roof******* $ 130,000.00 $ 130,000.00 $ 130,000.00 $ - Farmers Market Transfer $ 95,000.00 $ 92,651.20 $ 30,000.00 $ 1,023.00 Total Debt Payments $ 225,000.00 $ 225,787.82 $ 160,000.00 $ 1,023.00 Total Expenses $ 939,968.00 $ 948,601.93 $ 877,534.94 $ 340,617.62 Net Rev/Expenses $ (65,561.00) $ (45,351.39) $ (115,234.94) $ 219,418.51 Fund Balance at Beginning of Year $ 506,337.51 $ 460,986.12 Fund Balance at End of Year $ 460,986.12 $ 680,404.63 O:\Planning\COMMON\DDA - BRA\DDA-BRA 2025\040825 DDA-BRA\DDA\DDA March 2025 DDA Agenda Item V.C. Muskegon Downtown Development Authority Agenda Item V.C. for 4-8-25 Brownfield Plan Amendment, 351 Phase II, LLC 351 West Western Avenue, Muskegon, MI Requesting Party: City Staff Outline of Request: City staff is requesting a budget reforecast to account for an increase in your tax increment revenue. Background: The original budget includes a tax increment revenue of $500,000. This number will need to be amended in order to include the increased amount of $516,659. Staff Comments: N/A Suggested Motion: I move to approve the budget reforecast to include the increased tax increment amount of $516,659.
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