Downtown Development Authority Minutes 05-14-2024

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                                        CITY OF MUSKEGON

                 DOWNTOWN DEVELOPMENT AUTHORITY (DDA) /
                BROWNFIELD REDEVELOPMENT AUTHORITY (BRA)

                                 REGULAR MEETING MINUTES

                                              May 14, 2024

Co-Chairperson B. Hastings called the meeting to order at 10:31 AM and roll was taken.

   I.     Roll Call: Present: B. Tarrant, K. Reid, H. Sytsema, B. Hastings, J. Seyferth, K.
          Thornton, A. Boyd,
          Absent: M. Bottomley, J. Wallace, D. Pollock, M. Kleaveland, S. Black, J. Moore,

   II.    Approval of the meeting minutes of April 9, 2024- A motion to approve the April,
          2024 minutes was made by B. Tarrant and supported by J. Seyferth. All in Favor

   III.   Public comments on agenda items – None

   IV.    BRA agenda items – Contessa Alexander

          A. Assumption and Consumption of Brownfield Plan Agreement, Trilogy Real
             Estate Muskegon, LLC -60 Viridian Drive -
          Background: Trilogy is a 63,000 sq. ft. multi-story senior housing building
           situated at 60 Viridian Drive, formerly the Continental Motor Industrial site with a
           history of industrial use. This development is part of the broader Harbor 31
           project spanning 31 acres, which encompasses various residential components
           including single-family homes (Viridian Shores, The Meadows), apartments
           (Boardwalk Place, Harbor 31 Commons), a marina, office space, and a hotel.
          J. Seyferth made a motion to approve the Assignment of Assumption of the
          Brownfield Plan Agreement from Ryerson Creek Co. LLC, to Trilogy Real Estate
          Management Muskegon LLC. Supported by B. Tarrant
            Roll Call:
            Yays: B. Tarrant, K. Reid, H. Sytsema, A. Boyd, B. Hastings, K. Thornton, J. Seyferth
            Nays: None

          B. Brownfield Development & Reimbursement Agreement, Trilogy Real Estate
             Muskegon, LLC, and the City of Muskegon, 60 Viridian Drive.
          Background: The 5-acre property was formerly the site of the Continental Motors
          industrial facility, featuring a 63,000 square foot, multi-story, 118-unit senior living
          building with surrounding asphalt parking areas, concrete walkways, and
          landscaping. Construction has been completed, and the building will open to
          residents this year. B. Tarrant made a motion to approve the Brownfield
          Development and Reimbursement Agreement for Trilogy Real Estate Muskegon,
          LLC. Supported by K. Reid.
            Roll Call:
            Yays: B. Tarrant, K. Reid, H. Sytsema, A. Boyd, B. Hastings, K. Thornton, J. Seyferth
            Nays: None
V.   DDA agenda items- Contessa Alexander

     A. DDA Financial Report April 30, 2024
        There has been a recent update to the DDA financials since your April meeting.
        The change involves an increase in revenue posted, totaling $481,207.
        Additionally, the posting of $130,000 for the city bond payments for the arena
        has not yet been completed.
        The events budget is in a strong position as we approach the Taste of Muskegon
        and Lakeshore Art Festival season, with an increased fund balance of
        $200,793.92
        k. Reid made a motion to accept the April 30, 2024 DDA and events financial
        statements. J. Seyferth supported.
      Roll Call:
      Yays: B. Tarrant, K. Reid, H. Sytsema, A. Boyd, B. Hastings, K. Thornton, J. Seyferth
      Nays: None

     B. EGLE Grant Discussion Parkland Properties-Discussion Only
         Background: Parkland Properties of Michigan is collaborating with city staff to
         develop a project proposal aimed at securing an EGLE Brownfield Grant for the
         former Shaw Walker Furniture Company site. The proposed grant amount is $3
         million under the EGLE Brownfield Redevelopment Program. Notably, the
         Downtown Development Authority (DDA) successfully secured a $1 million EGLE
         loan last year for this project. City staff recommend that the DDA, as the
         applicant, also apply for this grant. The grant funds will support the following
         activities:
         • Implementation of vapor mitigation systems for the existing building
         • Monitoring and reporting on vapor mitigation system performance
         • Asbestos and hazardous materials abatement
         • Consultant oversight and reporting
         This project aims to transform approximately 630,000 square feet of
         deteriorated industrial space into a vibrant mixed-use development. It is
         anticipated to generate over $120 million in tax revenue over a 20-year period
         from property and income taxes.
     C. Budget Amendment FY 2023-2024
     Background: Due to a state grant awarded for the Lakeshore Art Festival, there has
     been an increase in the events budget by $12,750
     H. Sytsema motioned to approve the amended budget, including the additional state
     grant of $12,750. Supported by B. Tarrant.
      Roll Call:
      Yays: B. Tarrant, K. Reid, H. Sytsema, A. Boyd, B. Hastings, K. Thornton, J. Seyferth
      Nays: None

     D. Social District Budget Presentation – Deborah Santiago-Sweet
        Background: During the previous meeting, there was discussion about the DDA
        potentially covering the costs associated with trash cleanup and staff for the
        social district. The current state of the social district budget is facing depletion
            and requires additional funding. Further discussions with business owners on
            various options on cups and cleanup.
            Bob Tarrant made a motion to approve the allocation of funds for social district
            cleanup and staff as requested by city staff. Supported by K. Reid
          Roll Call:
          Yays: B. Tarrant, K. Reid, H. Sytsema, A. Boyd, B. Hastings, K. Thornton, J. Seyferth
          Nays: None

         E. Taste of Muskegon and Lakeshore Art Festival-Kyle Karczewski updated the
            board about the possibility of handing off the responsibilities of these two events
            so Parks & Recreation can focus more on community engagement opportunities
            like youth programs and holiday events. Event Lab is requesting $25,000 for
            each event as starter funds. Currently in discussion with City Commission for
            next year’s budget. This is discussion only
         F. Budget Discussion FY2024-25 – Discussion Only. Contessa shared summary
            draft budget FY2024-25.
         G. Approval of DDA Façade Grant Application Update for FY 2024-25 –
            Background: The DDA, during its March meeting, approved changes to the
            Façade Grant Program and reached a consensus to increase the grant amount to
            $25,000. During the meeting in April the board directed staff to include additions
            to this application.
            K. Reid made the motion to approve the updated Façade Grant Program for the
            2024-25 fiscal year. Supported by B. Tarrant

          Roll Call:
          Yays: B. Tarrant, K. Reid, H. Sytsema, A. Boyd, B. Hastings, K. Thornton, J. Seyferth
          Nays: None

VI.   Adjournment at 11:42 AM

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