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CITY OF
m= “7@ MUSKEGON
Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: May 13, 2025 Title: Brownfield Plan Amendment- 351 W.
Western Ave., 351 Phase Il, LLC
Submitted by: Jake Eckholm, Development Department: Economic Development
Services Director
Brief Summary:
351 Phase Il, LLC is requesting consideration of their brownfield plan amendment for the
redevelopment project located at 351 West Western Avenue.
Detailed Summary & Background:
The City of Muskegon Brownfield Redevelopment Authority has received a request for approval of a
Brownfield Plan Amendment under Act 381 for the 351 Phase Il Redevelopment Project. The
proposed amendment involves the redevelopment of approximately 0.5 acres of partially improved
and vacant land located at the corner of W. Western Ave. and 2nd Street in downtown Muskegon.
The project, led by 351 Phase Il, LLC, will transform the property into a mixed-use development
featuring 64 new residential units (41 studios and 23 one-bedroom units), and approximately 3,112
square feet of first-floor retail space. This addition will enhance the existing Lake View Lofts project,
which currently comprises 20 residential units, bringing the total to 84 units.
Approximately 50% of the new units (32 units) will be designated for tenants earning 120% of the area
median income or less for a period of 30 years. The project is expected to commence in summer/fall
2025 and be completed within a 15-month construction period. The total capital investment is
estimated at $27.7 million. The amendment allows for the use of tax increment financing (TIF) to
reimburse the developer for eligible activities totaling $6,540,560. This includes baseline environmental
assessment activities, housing development activities, site preparation, infrastructure improvements,
and potential rent loss. The Brownfield Redevelopment Authority's administrative costs are expected
to be $384,333 and $353,829 for the Local Brownfield Revolving Fund.
Goal/Focus Area/Action Item 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
RESOLUTION APPROVING BROWNFIELD PLAN AMENDMENT
351 Phase Il, LLC (351 West Western Avenue)
County of Muskegon, Michigan
2025-May-13
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 13th day of May,
— 2025 at 5:30 p.m., prevailing Eastern Time.
PRESENT: St.Clair, Kilgo, Keener, German, Gorman, and Kochin
ABSENT: Johnson
The following preamble and resolution were offered by Commissioner Keener 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; 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, 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. Thatthe Brownfield Plan Amendment 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: Kilgo, Keener, German, Gorman, Kochin, and St.Clair
NAYS: None
ABSENT: Johnson
RESOLUTION DECLARED APPROVED.
Ann Meisch, City Clerk
Ken Johrison, 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 May 13, 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 that the minutes of said meetingwere kept and will
be or have been made available as required by said Act.
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Ann Meisch, City Clerk
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