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Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: October 22, 2024 Title: Public Hearing, Brownfield Plan
Amendment- 349 West Websier, LLC, 349 W.
Webster
Submitted by: Contessa Alexander, Development | Department: Economic Development
Analyst
Brief Summary:
349 West Webster, LLC has submitted a Brownfield Plan Amendment for the 349 West Webster
Redevelopment project, which aims to rehabilitate a vacant and blighted office building into a
mixed-use commercial facility. This project will help bring the property back onto the tax rolls, create
jobs, and contribute to the city's economic development.
Detailed Summary & Background:
The project site, currently a vacant and blighted office building, is located at 349 West Websier Ave.
The property has historically been used for both educational and office purposes. The developer, 349
West Webster, LLC, acquired the site from Muskegon Public Schools in 2021. The proposed
redevelopment includes lodging and retail spaces as well as site improvements, with construction
scheduled to begin in Summer 2024 and completion expected by Fall 2025. The estimated
investment is $11,500,000, and the project is expected to create 10 full-time equivalent (FTE) jobs
within two years of completion.
Eligible Activities: The Brownfield Plan includes the following eligible non-environmental activities:
e Site Demolition: $1,050,000
¢ Site Preparation: $150,000
e Architecture and Engineering Fees: $450,000
e Asbestos Abatement: $30,000
e Brownfield Plan Development: $10,000
Administrative costs of the CMBRA, calculated as 10% of total eligible activities, are estimated at
$169,000. Interest expenses at 5.00% are also eligible for reimbursement. The capture period is for 30
years with an additional 5 years for the revolving loan fund.
Total Potential Eligible Activity Costs: $1,859,000.00 (inclusive of contingencies, financing costs, and
administrative fees)
The Development and Reimbursement Agreement is included in this plan. The following are the key
highlights from the agreement:
Reimbursement Source:
The Developer and the City will be reimbursed for the costs of approved Eligible Activities (such as
demolition, site preparation, and infrastructure improvements) through Brownfield Tax Increment
Financing (TIF) Revenue. This revenue is generated from increases in property taxes on the
redeveloped property.
Reimbursement Process:
Both the Developer and the City must submit reimbursement requests to the Authority, accompanied
by the required documentation.
The Authority will review and either approve or dispute the reimbursement request within 30 days.
Payments will be made as tax revenues become available.
If there is insufficient revenue to cover the full reimbursement in any period, the remaining amount will
be paid in subsequent periods as additional revenue becomes available.
Term of Agreement:
The agreement will continue until the Developer and the City have been fully reimbursed or until
December 31, 2060, whichever occurs first. After this date, any remaining captured tax revenue will
be used fo fund a Brownfield Revolving Loan Program.
Legislative Authorization:
This agreement is governed by Act 381, and any changes in the law that affect Brownfield TIF
capture or eligible activities will adjust the agreement accordingly.
Assignment:
The rights and obligations under this agreement cannot be transferred without the consent of the
other parties, except that the Developer and the City may assign their interests to affiliates for
financing purposes.
Miscellaneous Provisions:
The agreement includes standard legal provisions regarding the handling of notices, governing law
(Michigan), and the execution of the agreement in counterparts.
The Brownfield Redevelopment Authority reviewed this plan on October 10, 2024 and motioned to
approve and suggest that the City Commission consider adoption of the plan.
Goal/Focus Area/Action Item Addressed:
Key Focus Areas:
Diverse housing types
Progress toward completion of ongoing economic development projects
Goal/Action litem:
2027 Goal 2: Economic Development Housing and Business
Amount Requested: Budgeted Item:
N/A Yes No N/A | X
Fund(s) or Account(s): Budget Amendment Needed:
N/A Yes No N/A | X
Recommended Motion:
| move that the City Commission approve the Brownfield Redevelopment Plan for the property
located at 349 West Webster Ave, and authorize the Mayor and City Clerk to sign.
Approvals: Guest(s) Invited / Presenting:
Immediate Division
Head Yes
Information
Technology
Other Division Heads
RESOLUTION APPROVING BROWNFIELD PLAN AMENDMENT
349 West Webster, LLC (349 W. Webster)
County of Muskegon, Michigan
2024-October-22
Minutes of a Regular Meeting of the City Commission of the City of Muskegon, County of
Muskegon, Michigan (the "City"), held in the City Commission Chambers on the 22 day of
October, 2024 at 5:30 p.m., prevailing Eastern Time.
PRESENT: Kochin, St.Clair, Johnson, Kilgo, Keener, German, Gorman
ABSENT: None
The following preamble and resolution were offered by Commissioner Kochin and
supported by Vice Mayor St.Clair.
WHEREAS, in accordance with the provisions of Act 381, Public Acts of Michigan, 1996,
as amended ("Act 381"), the City ofMuskegon Brownfield Redevelopment Authority (the
"Authority") has prepared and approved a Brownfield Plan Amendment; and
WHEREAS, a Development and Reimbursement Agreement (the "DRA") has been entered into
by and among the Authority, the City, and the Developer, outlining the terms and conditions for the
reimbursement of eligible activities using Brownfield Tax Increment Financing (TIF) revenue; and
WHEREAS, the Authority has forwarded the Brownfield Plan Amendment, to the City
Commission requesting its approval of the Brownfield Plan Amendment, and
NOW, THEREFORE, BEIT RESOLVED THAT:
1. Thatthe Brownfield Plan constitutes a public purpose under Act 381.
2. That the Brownfield Plan meets all the requirements of Section 13(1) of Act 381.
3. That the proposed method of financing the costs of the eligible activities, as identified
in the Brownfield Plan and defined in Act 381, is feasible and the Authority has the
authority to arrange the financing.
4. That the costs of the eligible activities proposed in the Brownfield Plan are
reasonable and necessary to carry out the purposes of Act 381.
That the amount of captured taxable value estimated to result from the adoption of the
Brownfield Plan is reasonable.
That the Brownfield Plan Amendment is approved and is effective immediately.
That all resolutions or parts of resolutions in conflict herewith shall be and the same are
hereby rescinded.
Be it Further Resolved that the Mayor and City Clerk are hereby authorized to execute all
documents necessary or appropriate to implement the provisions of the Brownfield Plan.
AYES: Keener, German, Gorman, Kochin, St.Clair, Johnson, and Kilgo
NAYS: None
ABSENT: None
RESOLUTION DECLARED APPROVED.
Ann Meisch, City Clerk
No shesyn ——__
Ken Johnson, Mayor
| hereby certify that the foregoing is a true and complete copy of a resolution adopted by the
City Commission of the City of Muskegon, County of Muskegon, State of Michigan, at a regular
meeting held on October 22, 2024 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, as amended, and that the minutes of said meetingwere kept and will
be or have been made available as required by said Act.
Ann Meisch, City Clerk
City of Muskegon
Brownfield Redevelopment Authority
County of Muskegon, State of Michigan
RESOLUTION APPROVING BROWNFIELD PLAN AMENDMENT
349 West Webster, LLC (349 West Webster)
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 9th day of October
2024 at 10:30 a.m., prevailing Eastern Time.
PRESENT: J. Dornbos, K. Reid, H. Sytsema, M. Bottomley, B. Hastings, K. Thornson, J.
Seyferth
ABSENT: B. Tarrant, M. Kleaveland, J. Wallace, Jr., A. Boyd, S. Black, J. Moore
The following preamble and resolution were offered by Reid
K. and supported by Member
H. Sytsema:
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 349 West 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 349 West 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.
A. 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: J. Dornbos, K. Reid, H. Sytsema, M. Bottomley, B. Hastings, K. Thornson, J.
Seyferth
NAYS: None
RESOLUTION DECLARED ADOPTED.
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City of Muskegon Brownfield redevelopment Authority
Martha Bottorgley, Chair
| 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 October 9, 2024, 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.
Worthy!
Martha Bottomley/ Chair a
City of Muskego Brownfield Redevelopment Authority
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