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| CITY OF
mg MUSKEGON
Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: February 25, 2025 Title: Public Hearing-Brownfield Plan Amendment,
Muskegon-Cenitral Park, LLC (Krimson Exploratory
Fund, LLC) 1700 Oak Ave.
Submitted by: Contessa Alexander, Development | Department: Economic Development
Analyst
Brief Summary:
Muskegon-Central Park, LLC (Krimson Exploratory Fund, LLC) is requesting the approval of their
brownfield plan amendment for the site located at 1700 Oak Ave.
Detailed Summary & Background:
The Brownfield Plan Amendment will help facilitate the redevelopment of the former Muskegon
General Hospital site, located at 1700 Oak Avenue. This amendment will enable the use of Tax
Increment Financing (TIF) to reimburse Muskegon-Central Park, LLC (Krimson Exploratory Fund, LLC) for
eligible environmental and site redevelopment activities, supporting the creation of new affordable
housing units.
The former Muskegon General Hospital has remained vacant and blighted, posing environmental
and safety concerns for the surrounding neighborhood. The proposed redevelopment project by
Muskegon-Central Park, LLC (Krimson Exploratory Fund, LLC) aims to demolish the obsolete hospital
structure and construct six new, three-story multifamily residential buildings. These buildings will
provide 144 new rental housing units, designed as affordable workforce housing for individuals and
families earning between 69-77% of Muskegon County’s Area Median Income (AMI). The total project
investment is estimated at $21,532,385.
Eligible Activities: The plan covers a wide range of eligible activities necessary for site
redevelopment, including:
e Demolition of the former hospital building- $1,417,375
e Asbestos abatement and removal of other hazardous materials- $621,000
e Site preparation activities, such as grading, clearing, and utility work- $934,835
e Public infrastructure improvements, including road, sidewalk, and utility Upgrades to support
the new develooment- $2,273,090
e Gap financing assistance to close the housing affordability gap, ensuring the project's
financial viability- $3,500,000
e Brownfield Plan/Work Preparation- $25,000
e Brownfield Plan/Work Plan Implementation- $30,000
Tax Increment Financing (TIF): The plan allows for the capture of new local and state tax increment
revenues generated by the redevelopment to reimburse the developer for eligible costs. The total
cost of eligible activities is estimated at $8,801,300. Authority administrative costs are anticipated to
be $674,440. The capture of TIR for the Local Brownfield Revolving Fund (LBRF) is estimated to be
$1,924,857.
e Local Tax Capture: $4,373,700
e State Tax Capture: $4,427,600
The reimbursement period is anticipated to last until 2048, with collection of TIF revenues beginning in
2026.
Project Timeline:
e Demolition and Site Preparation: Early 2025
e Construction Start: Mid-2025
e Completion of Construction: Late 2026
e TIF Revenue Collection: Beginning in 2026
e Developer Reimbursement Period: 2026-2048
Affordable Housing Impact:
The project will provide 144 rental units, addressing approximately 25% of the city’s projected rental
housing needs for individuals and families earning 51%-80% AMI by 2027.
Community and Economic Benefits:
e Elimination of a longstanding blighted and hazardous structure, improving neighborhood
safety.
e Creation of new jobs during both the construction and operational phases.
e Increase in property tax revenues to support public services.
e Revitalization of the Oak Avenue corridor, encouraging further private investment in the area.
The developer intends to apply for a PA 210 (Commercial Rehabilitation Exemption Certificate. If the
developer is approved, the taxable value of the property will be frozen during the duration of the
certificate {1-10 years}.
The Brownfield Redevelopment Authority approved this Brownfield Plan Amendment on February
10th during their scheduled monthly meeting and recommended moving it forward for final approval
by the City Commission.
Goal/Focus Area/Action ltem Addressed:
Key Focus Areas:
Diverse housing types
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 Accountk(s): Budget Amendment Needed:
N/A Yes No N/A |X
Recommended Motion:
| move to close the Public Hearing and approve the Brownfield Plan Amendment for the
redevelopment project located at 1700 Oak Ave. and authorize the Mayor and City Clerk to sign the
attached resolution.
Approvals: Guest(s) Invited / Presenting:
Immediate Division X
Head No
Information
Technology
Other Division Heads
Communication
Legal Review
L0aS-IS CA)
RESOLUTION APPROVING THE BROWNFIELD PLAN AMENDMENT
Muskegon-Central Park, LLC (Krimson Exploratory Fund, LLC)
1700 Oak Ave.
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 25th day of
February, 2025 at 5:30 p.m., prevailing Eastern Time.
PRESENT: German, Gorman, St.Clair, Johnson, and Kilgo
ABSENT: Keener and Kochin
The following preamble and resolution were offered by Commissioner St.Clair and
supported by Commissioner German.
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 prepared and approved a Brownfield Plan Amendment to add Muskegon-
Central Park, LLC (Krimson Exploratory Fund, LLC) 1700 Oak Ave.; and
WHEREAS, the Authority has forwarded the Brownfield Plan Amendment to the City
Commission requesting its approval of the 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 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 25, 2025.
NOW, THEREFORE, BE IT RESOLVED THAT:
1. That the 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.
5. That the amount of captured taxable value estimated to result from the adoption of
the Brownfield Plan is reasonable.
6. That the 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 Brownfield Plan.
AYES: German, Gorman, St.Clair, Johnson, and Kilgo
NAYS: None
RESOLUTION DECLARED APPROVED.
Ann Marie Meisch, City Clerk
Ken Johhgon, 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 February 25, 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.
\ a tecintnes "
Ann Marie Meisch, City Clerk
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