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CITY OF MUSKEGON
DOWNTOWN DEVELOPMENT AUTHORITY (DDA) /
BROWNFIELD REDEVELOPMENT AUTHORITY (BRA)
SPECIAL MEETING
MINUTES
June 15, 2017
Chairperson M. Bottomley called the meeting to order at 2:30 p.m. and roll was taken.
MEMBERS PRESENT: Heidi Sytsema, Frank Peterson, Martha Bottomley, Mike Kleaveland,
Paul Edbrooke, Mike Johnson, Ron Pesch, Don Kalisz, John Riegler
MEMBERS ABSENT: Jay Wallace, Jr., excused; Jeanette Moore, excused
STAFF PRESENT: Mike Franzak, Derrick Smith, Ken Grant, Diane Renkenberger
OTHERS PRESENT: Gary Post, Liberty Development, LLC; Kevin Donovan, Liberty
Development, LLC; D. Wells via speaker phone
MINUTES
A motion to approve the Special Meeting Minutes of March 14, 2017 was made by M. Johnson,
supported by R. Pesch and unanimously approved.
NEW BUSINESS
Introduction. A proposed Brownfield Plan Amendment has been received by the City from Liberty
Development, LLC, for the Liberty Building (formerly Ameribank) at 880 First Street. The developers
(Gary Post, Kevin Donavan, et al) plan to purchase the building from the City of Muskegon and
redevelop it. The redevelopment includes converting the currently vacant, 54,122 square foot, five-
story commercial building into a mixed-use development (retail, office and residential). Liberty
Development, LLC currently has an option on the building through June 30, 2017. They plan to enter
into a Purchase Agreement with the City by the end of June. The redevelopment will begin in 2017,
with completion planned for the spring/summer of 2019. The BRA is being asked to approve both the
Liberty Building Project Brownfield Plan Amendment and the Development & Reimbursement
Agreement, which outlines the process for repayment of eligible expenses to Liberty Development,
LLC, as well as the City of Muskegon for public parking lot improvements. The amendment and
agreement will be voted on separately.
Brownfield Plan Amendment for the Liberty Building, 880 First Street. G. Post provided an
overview of the project. The building is the former Ameribank building, now known as the Liberty
Building. He reviewed renderings of the proposed development and explained them to the board.
They planned to have commercial, retail, and office space on the first, second, and third floors;
however, that could change, depending on how final plans fell into place. Condo units were planned
for the 4th and 5th floors with some having rooftop access and underground parking. R. Pesch asked
what other parking would be available. G. Post stated that there were an additional 90 spaces available
on the adjacent lot to be shared with High Point Flats, leaving his building with about 45 spaces.
A motion to approve the Brownfield Plan Amendment and Resolution for the Liberty Building at 880
First Street was made by J. Riegler, supported by H. Sytsema and unanimously approved, with H.
Sytsema, F. Peterson, M. Bottomley, M. Kleaveland, P. Edbrooke, M. Johnson, R. Pesch, D. Kalisz,
and J. Riegler voting aye.
Development & Reimbursement Agreement for the Liberty Building. D. Wells discussed the
financial aspects of the project. M. Kleaveland asked if there was a BRA administration fee. D. Wells
stated that a percentage of the local portion of taxes collected would go to the City for the parking lot.
R. Pesch expressed concerns about the capture of school taxes. D. Wells explained how the tax
capture process affected school tax revenues, and stated that the local school district should not be
affected.
A motion to approve the Development and Reimbursement Agreement for the Liberty Building at 880
First Street as proposed, was made by R. Pesch and supported by M. Johnson, with discussion
continuing on the motion.
G. Post stated that page 6 of the Brownfield Plan went into more detail on the numbers. D. Wells
stated that they would submit a work plan to the State and would have a better idea of what the actual
costs would be, as the numbers in the Brownfield Plan were estimates. If there were any major
changes, he stated that he would notify the BRA. M. Johnson asked about the timeline for
construction. G. Post estimated that it would be an 18- to 24-month project. D. Wells and F. Peterson
discussed the language regarding the pass-through of funds. M. Johnson asked F. Peterson if staff was
on board with the proposal and the Development & Reimbursement Agreement. F. Peterson stated
that staff was in favor of it.
A vote was taken on the above motion and was unanimously approved, with H. Sytsema, F. Peterson,
M. Bottomley, M. Kleaveland, P. Edbrooke, M. Johnson, R. Pesch, D. Kalisz, and J. Riegler voting
aye.
OLD BUSINESS
None
OTHER
Project updates – F. Peterson stated that the Amazon building had converted to market rate apartments.
It would be done gradually over 3 years as the current tenants moved out.
M. Bottomley asked for an update on High Point Flats. F. Peterson explained the deadlines and stated
that most of the exterior work was supposed to be done by November.
There being no further business, the meeting was adjourned at 9:55 a.m.
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