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CITY OF MUSKEGON
DOWNTOWN DEVELOPMENT AUTHORITY (DDA) /
BROWNFIELD REDEVELOPMENT AUTHORITY (BRA)
SPECIAL MEETING
MINUTES
February 12, 2019
Chairperson M. Bottomley called the meeting to order at 10:30 AM and roll was taken.
MEMBERS PRESENT: Frank Peterson, Martha Bottomley, Don Kalisz, Mike Johnson, Heidi
Sytsema, Jeanette Moore, Jay Wallace Jr, Paul Edbrooke, John Riegler,
Brad Hastings, Doug Pollock, Francena DePung
MEMBERS ABSENT: Mike Kleaveland
STAFF PRESENT: Mike Franzak, Planning Director; LeighAnn Mikesell, Director of
Municipal Services; Beth Lewis, Finance Director; Diane Renkenberger,
Administrative Assistant
OTHERS PRESENT: Dave Alexander, Downtown Muskegon Now (DMN); Roman Wilson,
Fishbeck Thompson Carr & Huber Inc.; Ken Johnson, Muskegon City
Commissioner
APPROVAL OF MINUTES
A motion to approve the regular meeting minutes of January 8, 2019 was made by J. Moore, supported
by D. Pollock and unanimously approved.
NEW BUSINESS
Elections (Chair, Vice Chair, Secretary)
A motion to retain M. Bottomley as Chairperson was made by M. Johnson, supported by P. Edbrooke
and unanimously approved.
A motion to retain P. Edbrooke as Vice-chairperson was made by J. Riegler, supported by M. Johnson.
and unanimously approved.
A motion to retain M. Kleaveland as Secretary was made by M. Johnson, supported by P. Edbrooke and
unanimously approved.
Downtown Project Update
D. Alexander discussed the ongoing projects in the downtown area which were listed on his memo to
the board dated 2/12/19. He distributed a draft of a brochure promoting the state’s Opportunity Zones
and explained that program and its tax benefits. He also provided updates on the pending dissolution of
Downtown Muskegon Now.
M. Bottomley requested that the board hear the agenda items out of order, with the Windward Pointe
reimbursement request (item III. E) being heard next, and the Core proposal (item III. C) being presented
after budget discussions.
Windward Pointe Brownfield TIF Reimbursement Request
C. Brubaker-Clarke represented the City on Brownfield issues for the Windward Pointe site. She
presented the second reimbursement request from Windward Pointe for eligible costs incurred as part of
their Brownfield TIF. She stated that she had reviewed the invoices submitted and recommended that
the reimbursement request be approved. She reminded the board that, although expenses were approved
now, actual payments would not be made until tax capture became available. R. Wilson was the
environmental consultant representing the property owners. He updated board members on the work
being done, stating that they were continuing their environmental investigation and remediation work.
He also stated that the property owners had received additional grant funds from the state before the last
governor left office. K. Johnson asked if those funds would affect the Brownfield grant reimbursement.
R. Wilson stated that it would likely result in a reduction of Brownfield funds needed.
A motion to approve the second reimbursement request from Windward Pointe was made by J. Riegler,
supported by P. Edbrooke and unanimously approved, with F. Peterson, M. Bottomley, D. Kalisz, M.
Johnson, H. Sytsema, J. Moore, J. Wallace Jr, P. Edbrooke, J. Riegler, B. Hastings, D. Pollock, and F.
DePung voting aye.
Michigan Brownfield Redevelopment Program Grant Application (122 W. Muskegon Avenue)
M. Franzak presented updated information on this project. The applicant had intended to be at the
meeting but those plans were cancelled due to the weather. At the December 11, 2018 DDA meeting,
the board approved a pre-application submission to the DEQ Michigan Brownfield Redevelopment
Program for a $187,532 grant and $135,700 loan request. The DEQ Board met on January 24 and
determined that there was limited data for the site, so the full proposal could not be approved. However,
a counteroffer of $50,000 for an assessment grant was recommended. The assessment grant would be to
conduct further assessment of the site (due care investigation, lead/asbestos/mold survey, preparing a
Plan for Due Care Compliance, grant administration, and third-party oversight). If the assessment
showed there was a need for additional grant funding to address environmental concerns and grant funds
were still available, we could then submit a request for additional grant funding. M. Johnson asked if
there was any downside that could negatively affect the city or the DDA. M. Franzak stated that the City
was limited on how many applications could be submitted in a given year, but the City, the DDA, and
the BRA were all considered separate entities, so that shouldn’t cause a problem.
A motion that the DDA/BRA approve the submittal of the Brownfield Grant Application to the DEQ
was made by J. Riegler, supported by J. Wallace and unanimously approved, with F. Peterson, M.
Bottomley, D. Kalisz, M. Johnson, H. Sytsema, J. Moore, J. Wallace Jr, P. Edbrooke, J. Riegler, B.
Hastings, D. Pollock, and F. DePung voting aye.
DDA Budget Discussion
F. Peterson stated that there was no new budget information to present. The City was on a fiscal year
budget, and the DDA would follow the same. M. Bottomley stated that she would like to get an approved
budget in place before the DDA funded any more projects. D. Alexander explained some items that
Downtown Muskegon Now currently handled, that they would be asking the DDA to take over once the
DDA’s acquisition of DMN was complete. B. Lewis was the city’s Finance Director and stated that she
had met with M. Bottomley, M. Franzak and M. Johnson to come up with basic financial policies,
modeled after current city policies. They presented a draft of the policy to the board for discussion. H.
Sytsema asked how often the board could expect to get updated budget statements. B. Lewis stated that
she would be able to provide monthly updates. P. Edbrooke stated that monthly updates would be
preferable to quarterly. The board concurred that they would like monthly updates, and that the word
“monthly” should be added to the “Financial Responsibilities” section of the Financial Management
Policies document regarding financial statements.
A motion to accept the Financial Management Policies document with the addition that updated budget
statements would be provided on a monthly basis was made by J. Riegler, supported by J. Moore and
unanimously approved, with F. Peterson, M. Bottomley, D. Kalisz, M. Johnson, H. Sytsema, J. Moore,
J. Wallace Jr, P. Edbrooke, J. Riegler, B. Hastings, D. Pollock, and F. DePung voting aye.
M. Bottomley requested that the next DDA meeting be held as a strategic planning session and suggested
that a facilitator be present. D. Alexander stated that he would look into locating someone. M.
Bottomley requested that the March DDA meeting be started at 9:00 AM with plans to last until noon,
in order to get a strategic plan in place.
Core Development Request for 880 1st Street
M. Bottomley stated that she would like the applicant present to provide more information on the request.
F. Peterson explained that there was a gap between the cost to build and expected rental rates in the
downtown area; the request was that the DDA help cover that difference, if needed, for a maximum five-
year period. J. Riegler expressed concerns about the lack of retail downtown. He would like to see a
requirement that the ground floor be built in a flex style so that it would be suitable for possible future
retail use. M. Bottomley stated that was difficult to approve the request without a plan and a budget in
place, and suggested that they board wait until that was done before approving Core’s proposal. F.
Peterson asked what the board would like him to tell Mr. Essex in reference to the proposal. Board
members concurred that they were interested, but they would like Mr. Essex to present his proposal to
the board. K. Johnson asked that language in the purchase agreement be clarified regarding the subsidy
amount.
OLD BUSINESS
Budget discussions and merger updates were provided earlier in the meeting.
OTHER
None
There being no further business, the meeting was adjourned at 12:03 PM.
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