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hd | MUSKEGON
CITY OF
Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: February 11, 2025 Title: Public Hearing- Transformational Brownfield
Plan, Shaw Walker Mixed Use Redevelopment
Project, Parkland Properties of Michigan, LLC, 965
W. Western Ave., 920 Washington Ave., 930 ,
Washington Ave., and 1330 Division Ave.
Submitted by: Contessa Alexander, Development | Department: Economic Development
Analyst
Brief Summary:
Parkland Properties of Michigan, LLC has submitted a Transformational Brownfield Plan for the Shaw
Walker Mixed Use Redevelopment Project located at 965 W. Western Ave., 920 Washington Ave., 930.
Washington Ave., and 1330 Division Ave.
Detailed Summary & Background:
History of the Site: The Shaw Walker site, historically home to the Shaw Walker Furniture Company, \was
constructed between 1911 and 1913. This manufacturing facility was a significant contributor to
Muskegon's industrial landscape uniil it ceased operations in 1989. Following its closure, the site
experienced multiple ownership changes, including Knoll North America, Lakeview Industrial Center
Inc., Mellowood Development Co., P&G Holdings LLC, IGCFCO Ill, LLC, and most recently, Parkland
Properties of Michigan acquired it in December 2022. The site has since remained largely vacant and
deteriorated, representing a substantial blight in the community.
Developer's Plans: Parkland Properties of Michigan, through its affiliated entities, plans a
comprehensive mixed-use redevelopment of the Shaw Walker site. The project will involve:
e Residential Development: Rehabilitation of four existing buildings into 538 new housing units
and 53 existing units, totaling 591 units. These include apartments and condominiums with
amenities such as rooftop pools, jacuzzis, clubhouses, and sports courts.
e Commercial Soace: Conversion of portions of three buildings into 8 commercial retail spaces,
including professional services (daycare, pet care}, health and wellness facilities (salon, fitness
studio), and various retail outlets (market, coffee shop, bookstore).
e Parking and Infrastructure: Rehabilitation of one building into an indoor parking facility and the
construction of new parking lots. Infrastructure improvements include connections to city
water, sewer, and storm systems, and replacing damaged sidewalks.
e The total capital investment is expected to exceed $212.9 million.
e 200 new full-time jobs, 600 temporary construction jobs
Duration of the Brownfield Plan: The Brownfield Plan will be in effect for up to 35 years from the date of
approval by the governing body. The duration for property tax capture will not exceed 30 years,
while the capture of withholding tax and income tax revenues is limited to 20 years from the start:
date. The initiation of tax increment revenue capture must occur within five years post-approval,
subject to Michigan Strategic Fund (MSF) approval.
Eligible Activities and Costs:Eligible activities under the Brownfield Plan include both environmental
and nori-environmental tasks:
e EGLE (Environmental) Eligible Activities:
o Depariment-specific environmental site assessments and mitigation measures
($225,000).
e MSF (Michigan Strategic Fund) Eligible Activities:
o Demolition and Abatement: $4,758,100
o Rehabilitation of Existing Structures: $143,595,767
o New Townhouse Construction: $11,100,000
o Site and Amenities Construction: $8,823,413
Total Eligible Activities Cost: $168,502,280
Total Reimbursable Eligible Costs: $159,598,389, reflecting limitations on Tax Increment Revenue (TIR}
capture
Approved Tax Incentives: The project has been awarded two approved tax incentives: NEZ (15
years), and an OPRA (12 years).
Once approved locally, the project will go before the Michigan Strategic Fund Board in April for final
approval.
Goal/Focus Area/Action Item Addressed:
Key Focus Areas:
Progress toward completion of ongoing economic development projects
Goal/Action Item:
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:
| motion to close the public hearing and approve the Shaw Walker Mixed-Use Redevelopment
Project Transformational Brownfield Plan and authorize the City Mayor and City Clerk to sign the
attached resolution.
Approvals: Guest(s) Invited / Presenting:
Immediate Division X
Head , No
Information
Technology
LORS /1 (A)
RESOLUTION APPROVING THE COMBINED TRANSFORMATIONAL BROWNFIELD PLAN
AMENDMENT
Parkland Properties of Michigan- Shaw Walker, LLC (Shaw Walker Opportunity Zone
Business 1, LLC, Shaw Walker Opportunity Zone Business 2, LLC, Shaw Walker
Opportunity Zone Business 3, LLC, and Shaw Walker Opportunity Zone Business 4, LLC)
965 W. Western Ave., 920 Washington Ave., 930 Washington Ave., 1330 Division Ave.
(Shaw Walker Mixed Use Redevelopment Project)
City of Muskegon
County of Muskegon, Michigan
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 11th day of
February, 2025, at 5:30 p.m., prevailing Eastern Time.
PRESENT: Johnson, Kilgo, Keener, Gorman, Kochin, and St.Clair
ABSENT: German
The following preamble and resolution were offered by Commissioner Keener and
supported by Commissioner Gorman.
WHEREAS, in accordance with the provisions of Act 381, Public Acts of Michigan, 1996,
as amended (“Act 381”), the City of Muskegon Brownfield Redevelopment Authority (the
“Authority”) has approved a Combined Transformational Brownfield Plan Amendment to add
Parkland Properties of Michigan- Shaw Walker, LLC (Shaw Walker Opportunity Zone Business
1, LLC, Shaw Walker Opportunity Zone Business 2, LLC, Shaw Walker Opportunity Zone
Business 3, LLC, and Shaw Walker Opportunity Zone Business 4, LLC) 965 W. Western Ave.,
920 Washington Ave., 930 Washington Ave., 1330 Division Ave.; and
WHEREAS, the Authority has forwarded the Combined Transformational Brownfield
Plan Amendment to the City Commission requesting its approval of the Combined
Transformational Brownfield Plan Amendment; and
WHEREAS, the City Commission has provided notice and a reasonable opportunity to
the taxing jurisdictions levying taxes subject to capture to express their views and
recommendations regarding the Combined Transformational Brownfield Plan Amendment, as
required by Act 381; and
WHEREAS, not less than 10 days has passed since the City Commission provided
notice of the proposed Brownfield Plan to the taxing units; and
WHEREAS, the City Commission held a public hearing on the proposed Brownfield Plan
on February 11, 2025.
NOW, THEREFORE, BE IT RESOLVED THAT:
1. That the Combined Transformational Brownfield Plan Amendment constitutes a
public purpose under Act 381.
2. That the Combined Transformational Brownfield Plan meets all the requirements of
Section 13 of Act 381.
3. That the proposed method of financing the costs of the eligible activities, as identified
in the Combined Transformational 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 Combined Transformational
Brownfield Plan are reasonable and necessary to carry out the purposes of Act 381.
5. That the amount of captured taxable value estimated to result from the adoption of
the Combined Transformational Brownfield Plan is reasonable.
6. That the Combined Transformational Brownfield Plan in the form presented is
approved and is effective immediately.
7. 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 Combined
Transformational Brownfield Plan.
AYES: Kilgo, Keener, Gorman, Kochin, St.Clair, and Johnson
NAYS: None
RESOLUTION DECLARED APPROVED.
\Qyton dna)
Ann Marie Meisch, City Clerk
Vol pdr vner——
Mayor
Ken Johnson,
| 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 February 11, 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, as amended, and altered under Michigan
Governor’s Executive Order 2020-75 (COVID-19) and that the minutes of said meeting were
kept and will be or have been made available as required by said Act.
QreaxnuthuL
Ann Marie Meisch, City Clerk
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