City Commission Packet 01-09-2017

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                          CITY OF MUSKEGON
                    CITY COMMISSION WORKSESSION

                          Monday, January 9, 2017
                                 5:30 p.m.
                         City Commission Chambers

                                  AGENDA



1. Tree Grant from Consumer’s Energy

2. Red Project

3. Brownfield Plan Amendment – Watermark

4. Amendment to the Zoning Ordinance – Waterfront Industrial Planned Unit
   Development (WI-PUD)
5. Highpoint Flats Update

6. Any Other Business

7. Adjournment
At a regular meeting of the City Council of the City of Muskegon, County of Muskegon,
Michigan, held on the ______ day of ________ 2016, at the Muskegon City Hall in said City at
5:30 p.m.

PRESENT:



ABSENT:



       The following preamble and resolution were offered by Councilmember ____________
and supported by Councilmember _____________:

    RESOLUTION TO ALLOW GRAND RAPIDS RED PROJECT TO OPERATE A HARM
              REDUCTION PROGRAM IN THE CITY OF MUSKEGON

       WHEREAS, the City of Muskegon is authorized by the provisions of Act 279 of 1909
under MCL 117.3(j), The Home City Rule, to enter into a contract with a private organization to
provide for health including the prevention of infectious diseases, prevention of drug abuse, and
the counseling and treatment of drug abusers; and

        WHEREAS, the City of Muskegon is also authorized by the provisions of Act 368 of
1978 under MCL 333.7457 (f) to allow a private organization operating within the City limits to
offer for sale, sell, or give away an object used to prevent the transmission of infectious agents;
and

       WHEREAS, the transmission of HIV/AIDS, Hepatitis C, and other infectious diseases
continues to negatively impact this community, with at least 16% of people currently living with
HIV/AIDS in Muskegon County having contracted the disease through injection drug use; and

       WHEREAS, the Grand Rapids Red Project has a nineteen year history of working
cooperatively with law enforcement, public health organizations, substance abuse treatment
agencies, the courts, and the media to educate and inform the public on the principles of a harm
reduction program and the results of such a program; and

        WHEREAS the Grand Rapids Red Project desires to offer its services throughout
Muskegon County, including the city of Muskegon, including the operation of mobile services
within the City, to better address the transmission of infectious diseases in the City, including
Hepatitis C and HIV/AIDS; and

        WHEREAS the Grand Rapids Red Project has secured private funding from a variety of
sources; hired staff; developed effective comprehensive collaborations with other community
agencies for purposes of referral; and will include HIV and Hepatitis C prevention, counseling
and testing, substance abuse counseling, recovery coaching and referral to treatment, and


Muskegon/Red Project Resolution                                                                       1
overdose prevention and response training on site as well as referrals for STI testing, food,
clothing, shelter, domestic violence and other critical needs of the target population; and

        WHEREAS, a proposed resolution to allow Grand Rapids Red Project to operate a harm
reduction program in the City of Muskegon pursuant to Act 279 and Act 368 has been presented
to the City Council;

          NOW, THEREFORE, BE IT RESOLVED THAT:

        1.     The Grand Rapids Red Project is authorized to operate a harm reduction program
for syringe and needle exchange within the city of Muskegon, including the operation of mobile
services within the City, for the sole purposes of preventing the transmission of infectious
agents; and

         2.    The Grand Rapids Red Project, its staff, Board of Directors, and volunteers, while
acting within the scope of authority granted herein, are conducting an activity permitted by the
state of Michigan and are exempt from the provisions of the Public Health Code, MCL 333.7451,
et seq.; and

        3.     The Grand Rapids Red Project, its staff, Board of Directors, and volunteers, while
acting within the scope of authority granted herein, are conducting an activity permitted by the
state of Michigan and are exempt from the provisions of Part II, Chapter 54, Article V, Division
1, Section 54-121 of the Code of Ordinances, City of Muskegon, Michigan.

      FURTHER INFORMATION may be obtained from the Office of the City Manager at the
Muskegon City Hall, 933 Terrace Street, Muskegon, Michigan 49440.

          This notice is given by order of the City Council of the City of Muskegon, Michigan.

                                              _______________________________________
                                              Ann Marie Meisch
                                       City Clerk

        I hereby certify that the foregoing is a true and complete copy of a resolution adopted by
the City Council of the City of Muskegon, County of Muskegon, State of Michigan, at a regular
meeting held on ___________________, 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 meeting were
kept and will be or have been made available as required by said Act.

                                              _______________________________________
                                              Ann Marie Meisch
                                              City Clerk
AYES:




Muskegon/Red Project Resolution                                                                  2
NAYS:


RESOLUTION DECLARED ADOPTED.

                                  _____________________________________
                                  Ann Marie Meisch
                                  City Clerk




Muskegon/Red Project Resolution                                           3
             Commission Meeting Date: January 10, 2017




Date:            January 3, 2017
To:              Honorable Mayor & City Commission
From:            Planning & Economic Development Department
RE:              Public Hearing for Brownfield Plan Amendment
                 and Development and Reimbursement Agreement
                 for P&G Holdings NY, LLC Redevelopment Project
                 (Watermark)


SUMMARY OF REQUEST: To hold a public hearing and approve the resolution approving and
adopting the amendment to the Brownfield Plan and to approve the Development and Reimbursement
Agreement. The amendments are for property owned by P&G Holdings NY, LLC.

FINANCIAL IMPACT: Brownfield Tax Increment Financing will be used to reimburse the developer for
“eligible expenses” incurred in association with development of the Watermark project. P&G Holdings
NY, LLC cost for the development of the property is approximately $30 million in private investment,
resulting in a substantial increase in the local and school taxes generated by the property.

“Eligible Expenses” would be reimbursed starting in 2018. The estimated tax capture and payment
schedule is included as Attachment U-3 in the proposed Brownfield Plan Amendment.

After all eligible costs incurred by the various parties are reimbursed (estimated to be in 2047), the BRA
is authorized to continue to capture local taxes for five more years for deposit into a Local Site
Remediation Revolving Fund.

The Development and Reimbursement Agreement provides the structure for the capture of taxes and
the reimbursement to P&G Holdings and the City of Muskegon for eligible expenses.

BUDGET ACTION REQUIRED: None.

STAFF RECOMMENDATION: To hold a public hearing for approval of the Brownfield Plan
Amendment for the P&G Holdings NY, LLC Redevelopment Project and approve the attached
resolution and authorize the Mayor and Clerk to sign the resolution, and to approve the Development
and Reimbursement Agreement between P&G Holdings NY, LLC, the City of Muskegon and the City of
Muskegon Brownfield Redevelopment Authority.

COMMITTEE RECOMMENDATION: The Muskegon City Commission set the public hearing for
January 10, 2017 at their December 13, 2016 meeting. Since that time, a notice of the public hearing
has been sent to taxing jurisdictions. In addition, the Brownfield Redevelopment Authority approved
the Plan amendment and the Development and Reimbursement Agreement on December 6, 2016 and
recommends that the Muskegon City Commission approve the Plan amendment and Development
and Reimbursement Agreement.
      RESOLUTION APPROVING THE BROWNFIELD PLAN AMENDMENT AND

                DEVELOPMENT AND REIMBURESMENT AGREEMENT

             P & G Holdings NY, LLC Redevelopment Project (Watermark)

                                      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

10th day of January 2017, at 5:30 p.m., prevailing Eastern Time.

PRESENT:       Members

________________________________________________________________________

____________________________________________________________

ABSENT:        Members

__________________________________________________________________

       The   following     preamble   and   resolution   were   offered   by   Commissioner

_________________ and supported by Commissioner _________________:

       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 P & G

Holdings NY, LLC Redevelopment Project (Watermark) ; 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 Authority has forwarded the Development and Reimbursement

Agreement to the City Commission requesting its approval of the Development and

Reimbursement Agreement; 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 January 10, 2017.

       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 the Development and Reimbursement Agreement is approved

and is effective immediately.

       8. 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:          Members

________________________________________________________________________

________________________________________________________________________

______________________________________________________

NAYS:

Members________________________________________________________________

____________________________________________________________



RESOLUTION DECLARED ADOPTED.

                                     _____________________________
                                     Ann Marie Meisch, City Clerk



                                     _____________________________
                                     Stephen J. Gawron, Mayor
I 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 January 10, 2017, 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 meeting were kept and will be or have been made available as required by said Act.



                                             _____________________________
                                             Ann Marie Meisch, City Clerk
    CITY OF MUSKEGON
BROWNFIELD REDEVELOPMENT
        AUTHORITY
BROWNFIELD PLAN AMENDMENT
FOR THE P&G HOLDINGS NY, LLC
  REDEVELOPMENT PROJECT

       August 17, 2016
                         City of Muskegon Brownfield Plan Amendment
                         P&G Holdings NY, LLC Redevelopment Project




            CITY OF MUSKEGON
        BROWNFIELD REDEVELOPMENT
                AUTHORITY
          BROWNFIELD PLAN AMENDMENT
          FOR THE P&G HOLDINGS NY, LLC
            REDEVELOPMENT PROJECT


Original Plan Approved by the Board of the City of Muskegon Brownfield Redevelopment
Authority on February 23, 1998, with amendments approved 8/10/98; 6/13/00; 4/15/03;
7/7/03; 4/20/04; 6/21/04; 9/8/04; 9/5/06; 2/23/07; 5/15/07, 11/12/07, 5/13/08, 6/24/08,
4/9/13 _______________.

Original Plan Approved by the City Commission of the City of Muskegon on
April 14, 1998, with amendments approved 8/11/98; 7/11/00; 5/27/03; 8/12/03; 5/25/04;
7/13/04; 7/27/04; 10/12/04; 10/24/06; 3/27/07; 6/12/07; 1/8/08, 5/13/08, 6/24/08, 5/14/13
and ______________.




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                     City of Muskegon Brownfield Plan Amendment
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                         CITY OF MUSKEGON
                BROWNFIELD REDEVELOPMENT AUTHORITY
                         BROWNFIELD PLAN

                                      INDEX
                                                                  Page

I.     INTRODUCTION                                                 1
II.    GENERAL PROVISIONS                                           1

       A.   Costs of the Brownfield Plan                            1
       B.   Maximum Amount of Indebtedness                          2
       C.   Duration of the Brownfield Plan                         2
       D.   Displacement/Relocation of Individuals on
            Eligible Properties                                     2
       E.   Local Site Remediation Revolving Fund                   2

III.   SITE SPECIFIC PROVISIONS                                     3

       A.   Kirksey/Anaconda Property (Approved 4/14/98)
       B.   Dilesco Corporation Property (Approved 8/11/98)
       C.   Beacon Recycling (Approved 7/11/00)
       D.   Verplank Dock Company (Approved 5/27/03)
       E.   Gillespie Development Property (Approved 8/12/03))
       F.   Loft Properties, LLC Property (Approved 8/12/03)
       G.   Parmenter O’Toole Property (Approved 8/12/03)
       H.   “The WaterMark” Project (Approved 5/25/04)
       I.   Northern Machine Tool (Approved July 13, 2004)
       J.   Terrace Lots Office Building (Approved July 13, 2004)
       K.   Art Works Apartments (Approved July 27, 2004)
       L.   Former Muskegon Mall (Approved October 12, 2004)
       M.   Vida Nova at Edison Landing (Approved 10/10/06)
       N.   Western Ave. Properties LLC and Port City Development Services, LLC
            (Approved 10/10/06)
       O.   Viridian Place at Edison Landing (Approved 10/24/06)
       P.   Hot Rod Harley (Approved March 27, 07)
       Q.   Sidock Building Project (Approved June 12, 07)
       R.   Heritage Square Town Homes (Approved 1/8/08)
       S.   Betten Auto Dealerships (Approved 5/13/08)
       T.   Parkland Muskegon Mixed Use Project (Approved 6/24/08)
       U.   Terrace Point Landing Redevelopment Project (Approved 5/14/13)
       V.   ___________________




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I. INTRODUCTION

In order to promote the revitalization of commercial, industrial, and residential properties
within the boundaries of the City of Muskegon (the “City”), the City established the City
of Muskegon Brownfield Redevelopment Authority (the “Authority”) pursuant to the
Brownfield Redevelopment Financing Act, P.A. 381 of 1996, as amended (“Act 381”),
and a resolution adopted by the Muskegon City Commission on February 10, 1998.
Terms defined in Act 381 and applicable sections of the statute are noted in italics
throughout this document.

The major purpose of this Brownfield Plan (“Plan”) is to promote the redevelopment of
eligible properties within the City that are impacted by the presence of hazardous
substances in concentrations that exceed Michigan’s Part 201 Generic Cleanup Criteria
(“facilities”) or that have been determined to be Functionally Obsolete or Blighted.
Inclusion of property within this Plan can facilitate financing of environmental response
activities, infrastructure improvements, demolition, lead or asbestos abatement, and site
preparation activities at eligible properties; and may also provide other incentives to
eligible taxpayers willing to invest in revitalization of eligible properties. By facilitating
redevelopment of underutilized eligible properties, the Plan is intended to promote
economic growth for the benefit of the residents of the City and all taxing units located
within and benefited by the Authority.

This Plan is intended to be a living document, which can be amended as necessary to
achieve the purposes of Act 381. It is specifically anticipated that properties will be
continually added to the Plan as new projects are identified. The Plan contains general
provisions applicable to the Plan, as well as property-specific information for each
project. The applicable Sections of Act 381 are noted throughout the Plan for reference
purposes.

This Brownfield Plan contains the information required by Section 13(1) of Act 381, as
amended. Additional information is available from the Muskegon City Manager or the
Director of Planning and Economic Development.

II. GENERAL PROVISIONS

A. Costs of the Brownfield Plan (Section 13(1)(a))

Any site-specific costs of implementing this Plan are described in the site-specific
section of the Plan. Site-specific sources of funding may include tax increment financing
revenue generated from new development on eligible brownfield properties, state and
federal grant or loan funds, and/or private parties. Where private parties finance the
costs of eligible activities under the Plan, tax increment revenues may be used to
reimburse the private parties. The initial costs related to preparation of the Brownfield
Plan were funded by the City’s general fund. Subsequent amendments to the Plan may
be funded by the person requesting inclusion of a project in the Plan, and if eligible, may
be reimbursed through tax increment financing.

The Authority intends to pay for administrative costs and all of the things necessary or
convenient to achieve the objectives and purposes of the Authority with fees charged to



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applicants to be included in the Plan, and any eligible tax increment revenues collected
pursuant to the Plan, in accordance with the provisions of Act 381, including, but not
limited to:
    i)      the cost of financial tracking and auditing the funds of the Authority,
    ii)     costs for amending and/or updating this Plan, and
    iii)    costs for Plan implementation

Tax increment revenues that may be generated and captured by this Plan are identified
in the site-specific sections of this Plan.

B. Method for Financing Costs of Plan (Section 13(1)(d) and (e))

The City or Brownfield Authority may incur some debt on a site-specific basis. Please
refer to the site-specific section of this Plan for details on any debt to be incurred by the
City or Authority. When a property proposed for inclusion in the Plan is in an area where
tax increment financing is a viable option, the Authority intends to enter into
Development Agreements with the property owners/developers of properties included in
the Plan to reimburse them for the costs of eligible activities undertaken pursuant to this
Plan. Financing arrangements will be specified in a Development and Reimbursement
Agreement, and also identified in the Site Specific section of the Plan.

C. Duration of the Brownfield Plan (Section 13(1)(f))

The duration of this Plan is expected to be 35 years. It is estimated that the demolition
and abatement costs associated with the Project (defined below) will be completed by
the end of 2017 and it is estimated that it could take up to 30 years to recapture eligible
costs through tax increment revenues. In addition, once all activity costs are
reimbursed, funds may be captured for the local site remediation revolving fund, if
available. Therefore, the duration of capture for the Project (defined below) will begin no
later than 2018 and will continue until such time that all the eligible activities undertaken
in this Plan are reimbursed, but in no event will the Plan exceed the maximum duration
provided for in (MCLA 125.2663(1)(22)). The total costs of eligible activities include the
cost of principal and interest on any note or obligation issued by the Authority to pay for
the costs of eligible activities, the cost of principal and interest otherwise incurred to pay
for eligible activities, the reasonable costs of a work plan or remedial action plan and the
costs of preparation of Brownfield Plans and amendments.

D. Displacement/Relocation of Individuals on Eligible Properties
   (Section 13(1)(i),(j)(k)(l)

The proposed amendment to the Plan will not result in the displacement or relocation of
any individuals on eligible properties identified in this Plan. Therefore, the provisions of
Section 13(1)(i-l) are not applicable at this time.

E. Local Site Remediation Revolving Fund (Section 8; Section 13(1)(m))

Whenever this Plan includes a property for which taxes will be captured through the tax
increment financing authority provided by Act 381, it is the Authority's intent to establish




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                                 P&G Holdings NY, LLC Redevelopment Project



       and fund a Local Site Remediation Revolving Fund ("Fund"). The Fund will consist of
       tax increment revenues that exceed the costs of eligible activities incurred on an eligible
       property, as specified in Section 13(5) of Act 381. Section 13(5) authorizes the capture
       of tax increment revenue from an eligible property for up to 5 years after the time that
       capture is required for the purposes of paying the costs of eligible activities identified in
       the Plan. It is the intention of the Authority to continue to capture tax increment
       revenues for 5 years after eligible activities are funded from those properties identified
       for tax capture in the Plan, provided that the time frame allowed by Act 381 for tax
       capture is sufficient to accommodate capture to capitalize a Fund. The amount of school
       operating taxes captured for the Revolving Fund will be limited to the amount of school
       operating taxes captured for eligible environmental response activities under this Plan. It
       may also include funds appropriated or otherwise made available from public or private
       sources.

       The Revolving Fund may be used to reimburse the Authority, the City, and private
       parties for the costs of eligible activities at eligible properties and other costs as
       permitted by Act 381. It may also be used for eligible activities on an eligible property for
       which there is no ability to capture tax increment revenues. The establishment of this
       Revolving Fund will provide additional flexibility to the Authority in facilitating
       redevelopment of brownfield properties by providing another source of financing for
       necessary eligible activities.

III.   SITE SPECIFIC PROVISIONS

       P&G Holdings NY, LLC Redevelopment Project

       1.     Eligibility and Project Description(Sec. 13(1)(h))

       Project Description

       The proposed project includes a plan to redevelop approximately 435,000 square feet of
       the remaining building into a mixed use project that will include residential market rate
       rental units and a full-scale family entertainment center (the “Project”). The Project will
       include the addition of approximately 120 new market rate residential apartments and
       approximately 200,000 square feet of entertainment and commercial space that would
       include bowling/arcade, a restaurant, laser tag, cybersport, a trampoline park, concert
       venue, indoor mountain biking and commercial retail/office space spread throughout the
       building. The Project is expected to reactivate the building and generate the creation of
       approximately 125+ jobs at the site. The Project will include significant interior
       demolition and abatement activities in order to prepare the building for redevelopment.
       A proposed site plan is included in Attachment U-2.

       The private capital investment to complete the Project is estimated to be approximately
       $30+ million with approximately $7.6 million required to address the demolition and
       abatement costs alone. The Project will likely result in approximately 125+ new jobs with
       average wages of approximately $10/hr and approximately 85+ temporary construction
       jobs during the estimated 24 months of construction.




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The eligible property comprising the P&G Holdings NY, LLC Redevelopment Project
included in this Plan consists of three parcels of property in downtown Muskegon,
Michigan (see Attachment U-1). The parcel number/legal description of the eligible
property is:

Address: 920 Washington Avenue

Parcel: #61-24-205-467-0001-00

Legal description:

CITY OF MUSKEGON REVISED PLAT 1903 PT OF BLKS 467 AND 468 AND ENTIRE BLK 474
TOGETHER WITH PT OF THE C & O RR R/W IN SD BLK 467 VAC MICHIGAN AVE BET SD BLKS 467 &
474 THE 2 VAC ALLEYS IN SD BLK 474 DESC AS BEG ON THE N R/W LN OF MICHIGAN AVE AT A
POINT BEING N 89D 48M 11S E 549.04 FT FROM THE SW COR OF SD BLK 468 TH N 02D 11M 01S E
7.87 FT TH S 87D 51M 37S E 111.67 FT ALG SLY LN OF A 5 STY BLDG TH N 02D 23M 08S E 85.09 FT
ALG E SIDE OF A 4 IN WALL TH S 87D 48M 59S E 28.01 FT ALG NLY LN OF SD 5 STY BLDG TH N 02D
11M 01S E 21.28 FT ALG SD BLDG TH N 88D 38M 32S W 12.93 FT ALG SD BLDG LN TH N 00D 42M
58S E 57.92 FT ALG SD BLDG LN TH S88D 25M 41S E 8.43 FT ALG SD BLDG LN TH N 88D 25M 41S W
0.40 FT ALG SD BLDG LN TH N 01D 34M 19S E 0.30 FT ALG SD BLDG LN TH N 88D 25M 41S W 8.72
FT ALG SD BLDG LN TH N 00D 30M 20S E 24.63 FT TH N 82D 30M 04S W 8.71 FT TH S 00D 30M 20S
W 9.53 FT TH N 83D 24M 04S W 13.72 FT ALG SD 5 STY BLDG LN TH N 09D 23M 07S E 9.68 FT ALG
SD 5 STY BLDG LN TH N 82D 30M 04S W 112.12 FT ALG SD BLDG LN & THE EXTENSION TH'OF TH N
07D 28M 33S E 75.55 FT ALG SD BLDG LN & THE EXTENSION TH'OF TH S 82D 42M 42S E 474.11 FT
ALG THE SLY R/W LN OF WESTERN AVE TH S 00D 01M 06S E 664.21 FT ALG THE W R/W LN 0F
DIVISION ST TH S 89D 34M 02S W 476.58 FT ALG THE N R/W LN OF WASHINGTON AVE TH N 00D
20M 35S W 414.17 FT ALG THE E R/W LN OF HUDSON ST TH S89D 48M 11S W 1.29 FT ALG THE S
R/W LN OF MICHIGAN AVE TO POB CONTAINING 304,686 SF (6.995 AC) SUBJ TO DECLARATION OF
RESTRICTIVE COVENANT RECOR'D 3629/083 SBJT TO ELECTRIC LNS ESMT RECORD'D L/P
3630/666 DESC AS A 10FT WIDE STRIP & BEING 5 FT ON EA SIDE OF EA UNDERGROUND ELECTRIC
LN AS CONSTRUCTED ON OWNER'S LAND A 30 FT WIDE STRIP OF LAND BEING 15 FT ON EA SIDE
OF EA OVERHEAD ELECTRIC LN AS CONSTRUCTED ON OWNERS LAND


Address: 965 W. Western Avenue

Parcel: #61-24-205-468-0001-10

Legal description:

CITY OF MUSKEGON REVISED PLAT 1903 BLK 468 AND PT OF BLK 467 VAC ALLEY IN BLK 468 PART
OF FORMER C & O RAILROAD R/W IN BLK 467 & 468 AND VAC HUDSON ST BET BLK 467 AND 468
AND ALL BEING DESC AS BEG AT THE SW COR OF SAID BLK 468 TH N 00D 19M 25S W 351.64 FT
ALG E R/W LN OF FRANKLIN ST TH N 89D 58M 00S E 278.5 FT ALG THE S R/W LN OF WESTERN AVE
TH S 82D 42M 42S E 284.66 FT ALG SD R/W LN TH S 07D 28M 33S W 75.55 FT ALG THE WLY LN &
EXTENSION TH'OF OF A 5 STORY BRICK BLDG TH S 82D 30M 04S E 112.12 FT ALG SD BLDG LN &
THE EXTENSION TH'OF TH S 09D 23M 07S W 9.68 FT ALG SD BLDG LN TH S 83D 24M 04S E 13.72 FT
ALG SD BLDG LN TH N 00D 30M 04S E 8.71 FT TH S 00D 30M 20S W 24.63 FT TH S 88D 25M 41S E
8.72 FTALG SD BLDG LN TH S 01D 34M 19S W 0.30 FT ALG SD BLDG LN TH S 88D 25M 41S E 0.40 FT
ALG SD BLDG LN TH S 00D 42M 58S W 29.45 FT ALG SD BLDG LN TH N 88D 25M 41S W 8.43 FT ALG
SD BLDG LN TH S 00D 42M 58S W 57.92 FT ALG SD BLDG LN TH S 88D 38M 32S E 12.93 FT ALG SD
BLDG LN TH S 02D 11M 01S W 21.28 FT ALG SD BLDG LN TH N 87D 48M 59S W 28.01 FT ALG SD
BLDG LN TH S 02D 23M 08S W 85.09 FT ALG E SIDE OF A 4 IN WALL TH N 87D 51M 37S W 111.67 FT
ALG SLY SIDE OF SD 5 STY BLDG LN TH S 02D 11M 01S W 7.87 FT TH S 89D 48M 11S W 549.04 FT
ALG N LN OF MICHIGAN AVE TO POB CONTAINING 217056 SF (4.983 AC) SUBJ TO DECLARATION
OF RESTRICTIVE COVENANT RECOR'D 3629/083




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                         P&G Holdings NY, LLC Redevelopment Project




Address: 1330 Division Street

Parcel: #61-24-205-466-0001-00

Legal description:

CITY OF MUSKEGON THAT PT OF BLKS 466 & 475 VAC MICHIGAN AVE AND VAC CLAY AVE COM AT
THE SW COR OF SD BLK 475 FOR POB TH N ALG E LN OF DIVISION ST 337.47 FT TH N 89D 40M 00S
E 427.35 FT TO W LN OF HENRY ST TH S 05D 18M 10S W ALG SD W LN 144.97 FT TO NE COR OF SD
BLK 475 TH S 00D 28M 45S W ALG SD W LN 194.75 FT TO SE COR OF SD BLK 475 TH S 89D 52M 30S
W ALG S LN OF SD BLK 412.33 FT TO POB SUBJ TO DECLARATION OF RESTRICTIVE COVENANT
RECOR'D 3629/083

This eligible property includes all existing real and new personal property.

The eligible property is considered a “facility” pursuant to Part 201. A limited
Industrial/Commercial Remedial Action Plan (RAP) submitted by Lakeview Industrial
Center, Inc. for the entire Shaw Walker facility was approved by the MDEQ on
November 14, 2000. P&G purchased a portion of the facility for redevelopment and
prepared a Baseline Environmental Assessment dated January 11, 2002 for disclosure
to the MDEQ. Subsequently, P&G worked with the MDEQ to prepare an Interim
Response Designed to Meet Criteria (IRDC), to allow for a portion of the eligible property
to be used for residential purposes. The IRDC plan, dated October 17, 2003, was
approved by MDEQ on December 15, 2003. The eligible property had concentrations of
benzo(a)pyrene, lead, dibenz(a,h)anthracene and arsenic in excess of residential direct
contact cleanup criteria. Therefore, the eligible property is considered a “facility”
pursuant to Part 201 and is therefore an eligible property pursuant to Act 381 of 1996, as
amended.

Eligible Activities, Financing, Cost of Plan (Sec. 13(1) (a),(b),(c),(d),(g))

Eligible activities included for reimbursement consist of demolition, lead and asbestos
abatement, site preparation and infrastructure improvements (see chart below).
                                     Eligible Activities
       Demolition                                                     $ 5,650,000
       Lead and Asbestos Abatement                                    $ 2,000,000
       Site Preparation                                               $ 60,000
       Infrastructure Improvements
           - Private                                                  $ 75,000
           - Public (City Street)                                     $ 240,000
               Sub-total                                              $ 8,025,000

       Contingency (15%)                                              $ 1,203,750

       Brownfield Plan/Work Plan Preparation and Development $ 30,000

       Total Eligible Activities
       to be paid for under this Plan                                 $ 9,258,750


                                             5                                      9/9/2016
                                 City of Muskegon Brownfield Plan Amendment
                                 P&G Holdings NY, LLC Redevelopment Project




        The eligible activities described above will occur on the Property and are further
        described as follows:

               1.      Demolition:    Demolition will include significant selective interior and
                       exterior demolition of roofing, flooring, windows, removal of walls, site
                       demolition of existing improvements, etc. Demolition is necessary in
                       order to prepare the project for the proposed improvements.

               2.      Lead and Asbestos Abatement:         Due to the age of the building, it is
                       expected that lead and asbestos will be encountered during the
                       demolition process. Therefore, a survey will be conducted to determine
                       the extent and scope of the abatement and materials will be removed and
                       properly disposed of by a licensed contractor.

               3.      Site Preparation:      Site Preparation on the Property will include mass
                       grading of the existing site on Division.

               4.      Infrastructure Improvements: Infrastructure Improvements will include
                       utility upgrades to the existing storm sewers, water service, sanitary
                       sewer, streets, sidewalks, curbs and gutters, landscaping and mill and
                       repaving of Western Ave from Franklin to Shoreline Drive (approximately
                       1,000’).

               5.      Brownfield/Work Plan Preparation and Development:        Costs incurred
                       to prepare and develop this brownfield plan and a work plan, as required
                       per Act 381 of 1996, as amended.

        An estimate of the captured taxable value and tax increment revenues, which includes
        the impact on the taxing jurisdictions, is attached as Attachment U-3.

        The cost to conduct the Project eligible activities included in this Plan will be initially
        provided by P&G Holdings NY, LLC and they will seek reimbursement for eligible
        activities through tax increment financing from local and state taxes. The Downtown
        Development Authority Tax Increment Financing Plan is expected to support a pass-
        through of its capture to allow the Brownfield Authority to capture 100% of the projected
        increment from the Project. It is intended that the Authority will capture 100% of the
        captured taxable value from the Property to reimburse the developer for eligible activities
        incurred for the Project. No advances via bond or notes will be made from the City for
        this Plan.

        Effective Date of Inclusion in Brownfield Plan

        The P&G Holdings NY, LLC Redevelopment Project was added to this Plan on _______.


14555733-4




                                                     6                                       9/9/2016
           City of Muskegon Brownfield Plan Amendment
           P&G Holdings NY, LLC Redevelopment Project




                ATTACHMENT U-1

                  SITE MAP
P&G HOLDINGS NY, LLC REDEVELOPMENT PROJECT




                               7                        9/9/2016
           City of Muskegon Brownfield Plan Amendment
           P&G Holdings NY, LLC Redevelopment Project




                ATTACHMENT U-2

            PROPOSED SITE PLAN
P&G HOLDINGS NY, LLC REDEVELOPMENT PROJECT




                               8                        9/9/2016
           City of Muskegon Brownfield Plan Amendment
           P&G Holdings NY, LLC Redevelopment Project




                ATTACHMENT U-3

       TAX INCREMENT FINANCING TABLE
P&G HOLDINGS NY, LLC REDEVELOPMENT PROJECT




                               9                        9/9/2016
       2:12 PM9/9/2016                                                                                            920 Washington Redevelopment Project
                                                                                                                             TIF Schedule



                             (1)
Real Property Improvements                                                                                                                                  NEZ Period for Residential
                                                                                                                   OPRA Period for Commercial
                                                          2016         2017          2018          2019             2020          2021        2022                   2023           2024            2025         2026         2027         2028         2029
Base Residential TV (2016)                             $184,915     $184,915     $184,915      $184,915         $184,915      $184,915    $184,915               $184,915       $184,915        $184,915     $184,915     $184,915     $184,915     $184,915
Base Commercial TV (2016)                              $797,863     $797,863     $797,863      $797,863         $797,863      $797,863    $797,863               $797,863       $797,863        $797,863     $797,863     $797,863     $797,863     $797,863
                                (2)
Residential TV after Improvement                       $184,915     $184,915    $2,765,467    $2,793,121       $2,821,053   $2,849,263   $2,877,756             $2,906,533     $2,935,599      $2,964,955   $2,994,604   $3,024,550   $3,054,796   $3,085,344
Commercial TV after Improvement(2)                     $797,863     $797,863    $4,056,443    $4,097,007       $4,137,977   $4,179,357   $4,221,151             $4,263,362     $4,305,996      $4,349,056   $4,392,546   $4,436,472   $4,480,837   $4,525,645
Total Captured Residential Taxable                           $0           $0    $2,580,551    $2,608,206       $2,636,137   $2,664,348   $2,692,840             $2,721,618     $2,750,683      $2,780,039   $2,809,689   $2,839,635   $2,869,880   $2,900,428
Total Captured Commercial Taxable                            $0           $0    $3,258,580    $3,299,145       $3,340,115   $3,381,494   $3,423,288             $3,465,500     $3,508,133      $3,551,193   $3,594,684   $3,638,609   $3,682,974   $3,727,782
Millages(3)
                                    City Operating      10.0869      10.0869       10.0869       10.0869          10.0869           10.0869      10.0869           10.0869        10.0869         10.0869     10.0869      10.0869      10.0869      10.0869
                                County Operating         5.6984       5.6984        5.6984        5.6984           5.6984            5.6984       5.6984            5.6984         5.6984          5.6984      5.6984       5.6984       5.6984       5.6984
                                    City Sanitation      3.0000       3.0000        3.0000        3.0000           3.0000            3.0000       3.0000            3.0000         3.0000          3.0000      3.0000       3.0000       3.0000       3.0000
                                  County Museum          0.3221       0.3221        0.3221        0.3221           0.3221            0.3221       0.3221            0.3221         0.3221          0.3221      0.3221       0.3221       0.3221       0.3221
                                 County Veterans         0.0752       0.0752        0.0752        0.0752           0.0752            0.0752       0.0752            0.0752         0.0752          0.0752      0.0752       0.0752       0.0752       0.0752
                                 County Qual Life        0.2400       0.2400        0.2400        0.2400           0.2400            0.2400       0.2400            0.2400         0.2400          0.2400      0.2400       0.2400       0.2400       0.2400
                                 Central Dispatch        0.3000       0.3000        0.3000        0.3000           0.3000            0.3000       0.3000            0.3000         0.3000          0.3000      0.3000       0.3000       0.3000       0.3000
                                   Comm College          2.2037       2.2037        2.2037        2.2037           2.2037            2.2037       2.2037            2.2037         2.2037          2.2037      2.2037       2.2037       2.2037       2.2037
                                           MAISD         4.7580       4.7580        4.7580        4.7580           4.7580            4.7580       4.7580            4.7580         4.7580          4.7580      4.7580       4.7580       4.7580       4.7580
                                   Hackley Library       2.4000       2.4000        2.4000        2.4000           2.4000            2.4000       2.4000            2.4000         2.4000          2.4000      2.4000       2.4000       2.4000       2.4000
                        State Education Tax (SET)        6.0000       6.0000        6.0000        6.0000           6.0000            6.0000       6.0000            6.0000         6.0000          6.0000      6.0000       6.0000       6.0000       6.0000
                                 School Operating       18.0000      18.0000       18.0000       18.0000          18.0000           18.0000      18.0000           18.0000        18.0000         18.0000     18.0000      18.0000      18.0000      18.0000
                     TOTAL CAPTURED MILLAGE             53.0843      53.0843       53.0843       53.0843          53.0843           53.0843      53.0843           53.0843        53.0843         53.0843     53.0843      53.0843      53.0843      53.0843

Yearly Captured Tax
                                    City Operating           $0           $0            $0            $0               $0                $0           $0               $0              $0              $0          $0           $0           $0      $37,602
                                 County Operating            $0           $0            $0            $0               $0                $0           $0               $0              $0              $0          $0           $0           $0      $21,242
                                    City Sanitation          $0           $0            $0            $0               $0                $0           $0               $0              $0              $0          $0           $0           $0      $11,183
                                  County Museum              $0           $0            $0            $0               $0                $0           $0               $0              $0              $0          $0           $0           $0       $1,201
                                  County Veterans            $0           $0            $0            $0               $0                $0           $0               $0              $0              $0          $0           $0           $0        $280
                                  County Qual Life           $0           $0            $0            $0               $0                $0           $0               $0              $0              $0          $0           $0           $0        $895
                                  Central Dispatch           $0           $0            $0            $0               $0                $0           $0               $0              $0              $0          $0           $0           $0       $1,118
                                   Comm College              $0           $0            $0            $0               $0                $0           $0               $0              $0              $0          $0           $0           $0       $8,215
                                           MAISD             $0           $0            $0            $0               $0                $0           $0               $0              $0              $0          $0           $0           $0      $17,737
                                   Hackley Library           $0           $0            $0            $0               $0                $0           $0               $0              $0              $0          $0           $0           $0       $8,947
                        State Education Tax (SET)            $0           $0        $9,776        $9,897          $10,020           $10,144      $10,270          $20,793         $21,049         $21,307     $21,568      $21,832      $22,098      $22,367
                                 School Operating            $0           $0       $29,327       $29,692          $30,061           $30,433      $30,810          $62,379         $63,146         $63,921     $64,704      $65,495      $66,294      $67,100
                           Local Captured Taxes              $0           $0            $0            $0               $0                $0           $0               $0              $0              $0          $0           $0           $0     $108,420
                            State Captured Taxes             $0           $0       $39,103       $39,590          $40,081           $40,578      $41,079          $83,172         $84,195         $85,229     $86,272      $87,327      $88,391      $89,467
Total Yearly Captured Taxes                                  $0           $0       $39,103       $39,590          $40,081           $40,578      $41,079          $83,172         $84,195         $85,229     $86,272      $87,327      $88,391     $197,887
Cumulative Captured Taxes                                    $0           $0       $39,103       $78,693         $118,774          $159,352     $200,431         $283,603        $367,799        $453,027    $539,300     $626,626     $715,018     $912,904


State Brownfield Fund Capture (3 mill)                       $0           $0       ($9,776)      ($9,897)       ($10,020)          ($10,144)    ($10,270)        ($10,396)      ($10,524)       ($10,654)    ($10,784)    ($10,916)    ($11,049)    ($11,183)
Revolving Fund Capture                                        $0           $0            $0            $0              $0                 $0           $0               $0             $0              $0           $0           $0           $0           $0
Eligible Activities                                   $9,258,750   $9,258,750   $9,258,750    $9,229,423       $9,199,730         $9,169,669   $9,139,236       $9,108,426     $9,035,651      $8,961,980   $8,887,405   $8,811,917   $8,735,506   $8,658,163
   State Tax Reimbursement                                    $0           $0      $29,327       $29,692          $30,061            $30,433      $30,810          $72,775        $73,671         $74,575      $75,488      $76,411      $77,342      $78,283
   Local Tax Reimbursement                                    $0           $0            $0            $0              $0                 $0           $0               $0             $0              $0           $0           $0           $0    $108,420
   Unreimbursed Eligible Activities                   $9,258,750   $9,258,750   $9,229,423    $9,199,730       $9,169,669         $9,139,236   $9,108,426       $9,035,651     $8,961,980      $8,887,405   $8,811,917   $8,735,506   $8,658,163   $8,471,460

Total Project Reimbursement                                  $0           $0       $29,327       $59,020          $89,081          $119,514     $150,324         $223,099        $296,770        $371,345    $446,833     $523,244     $600,587     $787,290
(1) Land increment will be captured but TIF
projections only show Improvements capture due to
NEZ and OPRA abatements and for ease of
reference.
(2) Assumes taxable value increases based on
proposed build out, plus 1% annual increases for
inflation thereafter                                                                                        Local Millage Ratio                    52.3%        $3,944,314 Local Reimbursement
(3) Assumes Millage Rates remain constant                                                                   State Millage Ratio                    47.7%        $3,592,909 State Reimbursement
                                                                                                                                                                $7,537,223 Total Eligible Activities
       2:12 PM9/9/2016                                                                                       920 Washington Redevelopment Project
                                                                                                                        TIF Schedule



Real Property Improvements (1)

                                                           2030         2031         2032         2033         2034         2035         2036            2037         2038         2039         2040         2041         2042         2043         2044
Base Residential TV (2016)                             $184,915     $184,915     $184,915     $184,915     $184,915     $184,915     $184,915        $184,915     $184,915     $184,915     $184,915     $184,915     $184,915     $184,915     $184,915
Base Commercial TV (2016)                              $797,863     $797,863     $797,863     $797,863     $797,863     $797,863     $797,863        $797,863     $797,863     $797,863     $797,863     $797,863     $797,863     $797,863     $797,863
                                (2)
Residential TV after Improvement                      $3,116,197   $3,147,359   $3,178,833   $3,210,621   $3,242,727   $3,275,154   $3,307,906      $3,340,985   $3,374,395   $3,408,139   $3,442,220   $3,476,642   $3,511,409   $3,546,523   $3,581,988
Commercial TV after Improvement(2)                    $4,570,901   $4,616,610   $4,662,777   $4,709,404   $4,756,498   $4,804,063   $4,852,104      $4,900,625   $4,949,631   $4,999,128   $5,049,119   $5,099,610   $5,150,606   $5,202,112   $5,254,133
Total Captured Residential Taxable                    $2,931,282   $2,962,444   $2,993,917   $3,025,706   $3,057,812   $3,090,239   $3,122,991      $3,156,070   $3,189,480   $3,223,224   $3,257,305   $3,291,727   $3,326,494   $3,361,608   $3,397,073
Total Captured Commercial Taxable                     $3,773,039   $3,818,748   $3,864,914   $3,911,542   $3,958,636   $4,006,201   $4,054,241      $4,102,762   $4,151,769   $4,201,265   $4,251,256   $4,301,747   $4,352,743   $4,404,249   $4,456,271
Millages(3)
                                    City Operating      10.0869      10.0869      10.0869      10.0869      10.0869      10.0869      10.0869         10.0869      10.0869      10.0869      10.0869      10.0869      10.0869      10.0869      10.0869
                                County Operating         5.6984       5.6984       5.6984       5.6984       5.6984       5.6984       5.6984          5.6984       5.6984       5.6984       5.6984       5.6984       5.6984       5.6984       5.6984
                                    City Sanitation      3.0000       3.0000       3.0000       3.0000       3.0000       3.0000       3.0000          3.0000       3.0000       3.0000       3.0000       3.0000       3.0000       3.0000       3.0000
                                  County Museum          0.3221       0.3221       0.3221       0.3221       0.3221       0.3221       0.3221          0.3221       0.3221       0.3221       0.3221       0.3221       0.3221       0.3221       0.3221
                                 County Veterans         0.0752       0.0752       0.0752       0.0752       0.0752       0.0752       0.0752          0.0752       0.0752       0.0752       0.0752       0.0752       0.0752       0.0752       0.0752
                                 County Qual Life        0.2400       0.2400       0.2400       0.2400       0.2400       0.2400       0.2400          0.2400       0.2400       0.2400       0.2400       0.2400       0.2400       0.2400       0.2400
                                 Central Dispatch        0.3000       0.3000       0.3000       0.3000       0.3000       0.3000       0.3000          0.3000       0.3000       0.3000       0.3000       0.3000       0.3000       0.3000       0.3000
                                   Comm College          2.2037       2.2037       2.2037       2.2037       2.2037       2.2037       2.2037          2.2037       2.2037       2.2037       2.2037       2.2037       2.2037       2.2037       2.2037
                                           MAISD         4.7580       4.7580       4.7580       4.7580       4.7580       4.7580       4.7580          4.7580       4.7580       4.7580       4.7580       4.7580       4.7580       4.7580       4.7580
                                   Hackley Library       2.4000       2.4000       2.4000       2.4000       2.4000       2.4000       2.4000          2.4000       2.4000       2.4000       2.4000       2.4000       2.4000       2.4000       2.4000
                        State Education Tax (SET)        6.0000       6.0000       6.0000       6.0000       6.0000       6.0000       6.0000          6.0000       6.0000       6.0000       6.0000       6.0000       6.0000       6.0000       6.0000
                                 School Operating       18.0000      18.0000      18.0000      18.0000      18.0000      18.0000      18.0000         18.0000      18.0000      18.0000      18.0000      18.0000      18.0000      18.0000      18.0000
                     TOTAL CAPTURED MILLAGE             53.0843      53.0843      53.0843      53.0843      53.0843      53.0843      53.0843         53.0843      53.0843      53.0843      53.0843      53.0843      53.0843      53.0843      53.0843

Yearly Captured Tax
                                    City Operating       $56,538      $60,931      $65,409      $69,975      $70,774      $71,581      $72,396         $73,219      $74,050      $74,890      $75,738      $76,595      $77,460      $78,333      $79,216
                                 County Operating        $31,940      $34,422      $36,952      $39,531      $39,983      $40,438      $40,899         $41,364      $41,833      $42,308      $42,787      $43,271      $43,759      $44,253      $44,751
                                    City Sanitation      $20,113      $20,344      $20,576      $20,812      $21,049      $21,289      $21,532         $21,776      $22,024      $22,273      $22,526      $22,780      $23,038      $23,298      $23,560
                                  County Museum           $2,159       $2,184       $2,209       $2,234       $2,260       $2,286       $2,312          $2,338       $2,365       $2,391       $2,419       $2,446       $2,473       $2,501       $2,530
                                  County Veterans          $504         $510         $516         $522         $528         $534         $540            $546         $552         $558         $565         $571         $577         $584         $591
                                  County Qual Life        $1,609       $1,627       $1,646       $1,665       $1,684       $1,703       $1,723          $1,742       $1,762       $1,782       $1,802       $1,822       $1,843       $1,864       $1,885
                                  Central Dispatch        $2,011       $2,034       $2,058       $2,081       $2,105       $2,129       $2,153          $2,178       $2,202       $2,227       $2,253       $2,278       $2,304       $2,330       $2,356
                                   Comm College          $14,774      $14,944      $15,115      $15,288      $15,462      $15,638      $15,816         $15,996      $16,178      $16,361      $16,547      $16,734      $16,923      $17,114      $17,306
                                           MAISD         $31,899      $32,265      $32,634      $33,007      $33,384      $33,765      $34,149         $34,538      $34,930      $35,326      $35,726      $36,130      $36,538      $36,950      $37,366
                                   Hackley Library       $16,090      $16,275      $16,461      $16,649      $16,839      $17,031      $17,225         $17,421      $17,619      $17,819      $18,021      $18,224      $18,430      $18,638      $18,848
                        State Education Tax (SET)        $40,226      $40,687      $41,153      $41,623      $42,099      $42,579      $43,063         $43,553      $44,047      $44,547      $45,051      $45,561      $46,075      $46,595      $47,120
                                 School Operating      $120,678     $122,061     $123,459     $124,870     $126,296     $127,736     $129,190        $130,659     $132,142     $133,641     $135,154     $136,683     $138,226     $139,785     $141,360
                           Local Captured Taxes        $177,639     $185,535     $193,577     $201,765     $204,068     $206,395     $208,745        $211,118     $213,515     $215,936     $218,381     $220,851     $223,345     $225,865     $228,409
                            State Captured Taxes       $160,904     $162,749     $164,612     $166,494     $168,395     $170,315     $172,254        $174,212     $176,190     $178,188     $180,205     $182,243     $184,302     $186,381     $188,480
Total Yearly Captured Taxes                            $338,542     $348,284     $358,189     $368,259     $372,463     $376,710     $380,998        $385,330     $389,705     $394,124     $398,587     $403,094     $407,647     $412,245     $416,889
Cumulative Captured Taxes                             $1,251,447   $1,599,731   $1,957,920   $2,326,179   $2,698,642   $3,075,351   $3,456,350      $3,841,680   $4,231,385   $4,625,508   $5,024,095   $5,427,189   $5,834,836   $6,247,081   $6,663,971


State Brownfield Fund Capture (3 mill)                 ($20,113)    ($20,344)    ($20,576)    ($20,812)    ($21,049)    ($21,289)    ($21,532)       ($21,776)    ($22,024)    ($22,273)    ($22,526)    ($22,780)    ($23,038)          $0           $0
Revolving Fund Capture                                        $0           $0           $0           $0           $0           $0           $0              $0           $0           $0           $0           $0           $0           $0           $0
Eligible Activities                                   $8,471,460   $8,153,031   $7,825,090   $7,487,478   $7,140,031   $6,788,617   $6,433,197      $6,073,730   $5,710,176   $5,342,495   $4,970,645   $4,594,584   $4,214,270   $3,829,661   $3,417,416
   State Tax Reimbursement                             $140,791     $142,405     $144,035     $145,682     $147,345     $149,025     $150,722        $152,435     $154,166     $155,914     $157,680     $159,463     $161,264     $186,381     $188,480
   Local Tax Reimbursement                             $177,639     $185,535     $193,577     $201,765     $204,068     $206,395     $208,745        $211,118     $213,515     $215,936     $218,381     $220,851     $223,345     $225,865     $228,409
   Unreimbursed Eligible Activities                   $8,153,031   $7,825,090   $7,487,478   $7,140,031   $6,788,617   $6,433,197   $6,073,730      $5,710,176   $5,342,495   $4,970,645   $4,594,584   $4,214,270   $3,829,661   $3,417,416   $3,000,526

Total Project Reimbursement                           $1,105,719   $1,433,660   $1,771,272   $2,118,719   $2,470,133   $2,825,553   $3,185,020      $3,548,574   $3,916,255   $4,288,105   $4,664,166   $5,044,480   $5,429,089   $5,841,334   $6,258,224
(1) Land increment will be captured but TIF
projections only show Improvements capture due to
NEZ and OPRA abatements and for ease of
reference.
(2) Assumes taxable value increases based on
proposed build out, plus 1% annual increases for
inflation thereafter
(3) Assumes Millage Rates remain constant
       2:12 PM9/9/2016                                                                                          920 Washington Redevelopment Project
                                                                                                                           TIF Schedule



Real Property Improvements (1)

                                                           2045         2046         2047
Base Residential TV (2016)                             $184,915     $184,915     $184,915
Base Commercial TV (2016)                              $797,863     $797,863     $797,863
                                (2)
Residential TV after Improvement                      $3,617,808   $3,653,986   $3,690,526
Commercial TV after Improvement(2)                    $5,306,675   $5,359,741   $5,413,339
Total Captured Residential Taxable                    $3,432,893   $3,469,071   $3,505,611
Total Captured Commercial Taxable                     $4,508,812   $4,561,879   $4,615,476
Millages(3)
                                    City Operating      10.0869      10.0869      10.0869
                                County Operating         5.6984       5.6984       5.6984
                                    City Sanitation      3.0000       3.0000       3.0000
                                  County Museum          0.3221       0.3221       0.3221
                                 County Veterans         0.0752       0.0752       0.0752
                                 County Qual Life        0.2400       0.2400       0.2400
                                 Central Dispatch        0.3000       0.3000       0.3000
                                   Comm College          2.2037       2.2037       2.2037
                                           MAISD         4.7580       4.7580       4.7580
                                   Hackley Library       2.4000       2.4000       2.4000
                        State Education Tax (SET)        6.0000       6.0000       6.0000
                                 School Operating       18.0000      18.0000      18.0000
                     TOTAL CAPTURED MILLAGE             53.0843      53.0843      53.0843

Yearly Captured Tax
                                    City Operating       $80,107      $81,007      $81,917
                                 County Operating        $45,255      $45,764      $46,277
                                    City Sanitation      $23,825      $24,093      $24,363
                                  County Museum           $2,558       $2,587       $2,616
                                  County Veterans          $597         $604         $611
                                  County Qual Life        $1,906       $1,927       $1,949
                                  Central Dispatch        $2,383       $2,409       $2,436
                                   Comm College          $17,501      $17,698      $17,896
                                           MAISD         $37,787      $38,211      $38,640
                                   Hackley Library       $19,060      $19,274      $19,491
                        State Education Tax (SET)        $47,650      $48,186      $48,727
                                 School Operating      $142,951     $144,557     $146,180
                           Local Captured Taxes        $230,979     $233,575     $236,196
                            State Captured Taxes       $190,601     $192,743     $194,906
Total Yearly Captured Taxes                            $421,580     $426,317     $431,102
Cumulative Captured Taxes                             $7,085,551   $7,511,868   $7,942,970 Totals


State Brownfield Fund Capture (3 mill)                       $0           $0           $0            $405,747
Revolving Fund Capture                                        $0           $0           $0                 $0
Eligible Activities                                   $3,000,526   $2,578,947   $2,152,629
   State Tax Reimbursement                             $190,601     $192,743     $194,906           $3,592,909 State
   Local Tax Reimbursement                             $230,979     $233,575     $236,196           $3,944,314 Local
   Unreimbursed Eligible Activities                   $2,578,947   $2,152,629   $1,721,527          $7,537,223

Total Project Reimbursement                           $6,679,803   $7,106,121   $7,537,223          $7,537,223 Total Reimbursement
(1) Land increment will be captured but TIF
projections only show Improvements capture due to
NEZ and OPRA abatements and for ease of
reference.
(2) Assumes taxable value increases based on
proposed build out, plus 1% annual increases for
inflation thereafter
(3) Assumes Millage Rates remain constant
           City of Muskegon Brownfield Plan Amendment
           P&G Holdings NY, LLC Redevelopment Project




                ATTACHMENT U-4

           FACILITY CONFIRMATION
P&G HOLDINGS NY, LLC REDEVELOPMENT PROJECT




                              10                        9/9/2016
              Commission Meeting Date: January 10, 2017




Date:        January 5, 2017
To:          Honorable Mayor and City Commissioners
From:        Planning & Economic Development
RE:          Amendment to the Zoning Ordinance – Waterfront Industrial
             Planned Unit Development (WI-PUD)


SUMMARY OF REQUEST:

Staff-initiated request to amend the Waterfront Industrial Planned Unit
Development (WI-PUD) District to modify the preamble, uses permitted (Section
1504), prohibited uses (Section 1505), and review standards (Section 1506).

FINANCIAL IMPACT:

None

BUDGET ACTION REQUIRED:

None

STAFF RECOMMENDATION:

To approve the zoning ordinance amendment.

COMMITTEE RECOMMENDATION:

The Planning Commission unanimously recommended approval of the ordinance
amendment, with one member absent.
                                       Staff Report (EXCERPT)
                                          CITY OF MUSKEGON
                                       PLANNING COMMISSION
                                          REGULAR MEETING


Hearing, Case 2016-19: Staff-initiated request to amend the Waterfront Industrial Planned Unit
Development (WI-PUD) District to modify the preamble, uses permitted (Section 1504), prohibited uses
(Section 1505), and review standards (Section 1506).
BACKGROUND

   1. In this district, all new projects are required to go through the Planned Unit Development process.
   2. Staff is recommending some modifications to the district in order to best utilize some of the property
      on the east end of Muskegon Lake.
   3. In the preamble, a statement was added to reiterate that every project in these districts should have a
      key principal use defined to ensure that the property is utilized to its fullest potential.
   4. Under Section 1504 – Principal Uses - Staff recommends moving number 1,3 and 6 to Accessory
      Uses. This will emphasize that these properties must have a major commercial operation as a
      principal use and are not solely utilized for minimally staffed operations.
   5. Also under Section 1504- Principal Uses - Staff recommends removing number 5. The elimination of
      aggregate storage would eliminate blight on the waterfront. Also, aggregate storage does not produce
      many jobs and contributes to blight and water pollution. This use would be moved to prohibited uses.
   6. Also under Section 1504- Principal Uses- Staff recommends adding “with proper screening” to
      number 11. The new language would read “Commercial engine and hull repair with property
      screening.” This will help reiterate that anything that could contribute to blight should be screened
      whenever practical.
   7. Under Section 1506: Review Standards – Staff recommends eliminating number 10 and 11. These
      relate to aggregate storage, which would no longer be allowed.
NEW LANGUAGE
Deletions are crossed out and additions are in bold. Numbers will be reordered accordingly:

                          WI-PUD Waterfront Industrial Planned Unit Development

     WI-PUD WATERFRONT INDUSTRIAL PLANNED UNIT DEVELOPMENT DISTRICTS [amended
                                      10/12]

PREAMBLE

The Waterfront Industrial PUD district is established primarily for water-dependent, commercial shipping of
bulk, general cargo, or container goods by freighter, bulk carrier, tanker, tug barge, or other similar
commercial vessels. The WI-PUD District is intended to promote the consolidation of commercial port
activities at the eastern terminus of Muskegon Lake because of its proximity to the interstate, established
industrial uses, and isolation from residential zones. The intent is to localize this district to promote
symbiotic relationships among industrial port activities and to discourage the expansion of such activities
elsewhere along Muskegon Lake frontage. It is further the intent of this district to require planned unit
developments for all projects to ensure a mix of port uses that enhances the industrial economic base of the
city. The planned unit development tool shall be applied to promote flexibility in development and to
enhance functional relationships among uses in the district. All projects in these districts should have a
key principal use defined to ensure that the property is utilized to its fullest potential.

The general categories of uses permitted in the WI-PUD district are associated with standard industrial
classifications, major group industry 44, "Water Transportation" as found in the 1987 Standard Industrial
Classification Manual prepared by the Executive Office of the President, Office of Management and Budget.

SECTION 1504: USES PERMITTED

The following uses, and their accessory buildings and accessory uses, shall be permitted as planned unit
developments. Planned unit developments shall be reviewed and approved by the Planning Commission and
City Commission subject to the conditions outlined below.


PRINCIPAL USES:

1.      Water transportation of freight

2.      Railroad and auto passenger ferries.

3.      Marine cargo handing; loading, unloading and stevedore facilities.

4.      Marine terminal uses including ancillary inter-modal transportation operations.

5.      Any use with outside storage of aggregate, limestone, coal, slag, salt, sand or other bulk materials
        shipped by commercial watercraft vessels and or barges.
6.    Grain elevators.

7.    Bulk and warehouse storage of goods shipped by commercial maritime vessels.
8.    Towing and tugboat services for commercial freight water vessels.

9.    Barge fleeting, mooring and servicing.

10.   Lighterage.

11.   Commercial engine and hull repair, with appropriate screening.

12.   Marine dock, breakwater, harbor construction and repair contracting.

13.   Marine dredging contractors.

14.   Palletizing, decanning, container stripping and packing operations associated with maritime shipping
      and transport.

15.   Bulk liquid facilities of non-hazardous materials.

16.   Material recovery facilities that are entirely contained in buildings.

17.   Commercial fishing facilities.

18.   Manufacturing that is dependent on port facilities.

19.   Any other uses which meet the intent of this district as deemed by the Planning Commission and City
      Commission; except that in no case shall a prohibited use be permitted.

ACCESSORY USES:

1.    Docks, wharves, piers or transit sheds or related facilities used in connection with the transfer,
      handling, storage and transit and incidental processing of cargo from or to waterborne craft.

2.    Truck or rail freight terminal supporting water freight transport.

3.    Offices associated with port facilities and functions.

4.    Parking decks.

5.    Watchmen quarters employed on the premise.

6.    Lift equipment to load and unload ships.

7.    Weigh stations.
8.     Lighthouse.

9.     Fuel dock.

10.    Seaplane base.

11.    Water transportation of freight

12.    Marine cargo handling; loading, unloading and stevedore facilities.


SECTION 1505: PROHIBITED USES

1.     Asphalt batching.

2.     Cement processing.

3.     Storage of petroleum products stored in excess of 1,000 gallons.

4.     Hazardous material or hazardous chemical storage or transport.

5.     Ship cleaning.

6.     Salvage yards, ship scrapping, dismantling and wrecking operations not wholly contained in
       buildings.

7.     Livestock holding.

8.     Marine Salvage.

9.     Open storage of fertilizers, agricultural lime and other chemicals.

10.    Billboards.

11.    Any use with outside storage of aggregate, limestone, coal, slag, salt, sand or other bulk
       materials shipped by commercial watercraft vessels and or barges.


SECTION 1506: REVIEW STANDARDS

The Planning Commission shall approve, deny or modify preliminary planned unit development plans, based
upon the site plan review and landscaping standards of this ordinance and the following standards below.
Likewise, the City Commission shall approve, deny, or modify final planned unit development plans (after
review and recommendation by the Planning Commission) based upon the following standards:
1.    The uses proposed will have a beneficial effect, in terms of public health, safety, welfare, or
      convenience of any combination thereof, on present and potential surrounding land uses. The uses
      proposed will not adversely affect the public utility and circulation systems, surrounding properties,
      or the environment.

2.    The uses proposed should be consistent with the land use plans adopted by the City.

3.    The amount of open space provided is compatible with and meets the requirements of this ordinance,
      which the Planning Commission or City Commission may modify, even though such modifications
      do not conform to that required in other sections of this ordinance.
4.    The amount of off-street parking areas is adequate, which the Planning Commission or City
      Commission may modify even though such modifications do not conform to that required in other
      sections of this ordinance.

5.    The amount of landscaping and buffering areas provided are compatible with and meet the
      requirements of this ordinance, which the Planning Commission or City Commission may modify
      even though such modifications do not conform to that required in other sections of this ordinance.

6.    The design provides for the protection or enhancement of significant natural, historical, or
      architectural features within the proposed development area.

7.    The uses proposed will result in safe, convenient, uncongested and well defined vehicular and
      pedestrian circulation systems.

8.    The land uses presented shall provide a mix of uses to perpetuate an economically viable, mixed use
      port.

9.    The project shall demonstrate adequate support services for all activities.

10.   Stockpiles of salt and agricultural lime must be covered or sufficiently isolated from the surface water
      to prevent leaching.

11.   Aggregate, salt, lime, or soil stockpiling areas shall not occupy more than 30% of the site or district.

12.   Truck freight terminals shall not occupy more than 30% of the site area or district. Trucks shall be
      stored a minimum of two hundred (200) feet from the ordinary high water mark.
                                          CITY OF MUSKEGON

                                   MUSKEGON COUNTY, MICHIGAN

                                         ORDINANCE NO._____

An ordinance to amend the Waterfront Industrial Planned Unit Development District section of the
zoning ordinance to modify the preamble, uses permitted (Section 1504), prohibited uses (Section
1505), and review standards (Section 1506).

THE CITY COMMISSION OF THE CITY OF MUSKEGON HEREBY ORDAINS:

NEW LANGUAGE

NEW LANGUAGE
Deletions are crossed out and additions are in bold. Numbers will be reordered accordingly:

                         WI-PUD Waterfront Industrial Planned Unit Development

  WI-PUD WATERFRONT INDUSTRIAL PLANNED UNIT DEVELOPMENT DISTRICTS [amended
                                   10/12]

PREAMBLE

The Waterfront Industrial PUD district is established primarily for water-dependent, commercial shipping of
bulk, general cargo, or container goods by freighter, bulk carrier, tanker, tug barge, or other similar
commercial vessels. The WI-PUD District is intended to promote the consolidation of commercial port
activities at the eastern terminus of Muskegon Lake because of its proximity to the interstate, established
industrial uses, and isolation from residential zones. The intent is to localize this district to promote
symbiotic relationships among industrial port activities and to discourage the expansion of such activities
elsewhere along Muskegon Lake frontage. It is further the intent of this district to require planned unit
developments for all projects to ensure a mix of port uses that enhances the industrial economic base of the
city. The planned unit development tool shall be applied to promote flexibility in development and to
enhance functional relationships among uses in the district. All projects in these districts should have a
key principal use defined to ensure that the property is utilized to its fullest potential.

The general categories of uses permitted in the WI-PUD district are associated with standard industrial
classifications, major group industry 44, "Water Transportation" as found in the 1987 Standard Industrial
Classification Manual prepared by the Executive Office of the President, Office of Management and Budget.

SECTION 1504: USES PERMITTED

The following uses, and their accessory buildings and accessory uses, shall be permitted as planned unit
developments. Planned unit developments shall be reviewed and approved by the Planning Commission and
City Commission subject to the conditions outlined below.
PRINCIPAL USES:

1.    Water transportation of freight

2.    Railroad and auto passenger ferries.

3.    Marine cargo handing; loading, unloading and stevedore facilities.

4.    Marine terminal uses including ancillary inter-modal transportation operations.

5.    Any use with outside storage of aggregate, limestone, coal, slag, salt, sand or other bulk materials
      shipped by commercial watercraft vessels and or barges.

6.    Grain elevators.

7.    Bulk and warehouse storage of goods shipped by commercial maritime vessels.
8.    Towing and tugboat services for commercial freight water vessels.

9.    Barge fleeting, mooring and servicing.

10.   Lighterage.

11.   Commercial engine and hull repair, with appropriate screening.

12.   Marine dock, breakwater, harbor construction and repair contracting.

13.   Marine dredging contractors.

14.   Palletizing, decanning, container stripping and packing operations associated with maritime shipping
      and transport.

15.   Bulk liquid facilities of non-hazardous materials.

16.   Material recovery facilities that are entirely contained in buildings.

17.   Commercial fishing facilities.

18.   Manufacturing that is dependent on port facilities.

19.   Any other uses which meet the intent of this district as deemed by the Planning Commission and City
      Commission; except that in no case shall a prohibited use be permitted.
ACCESSORY USES:

1.    Docks, wharves, piers or transit sheds or related facilities used in connection with the transfer,
      handling, storage and transit and incidental processing of cargo from or to waterborne craft.

2.    Truck or rail freight terminal supporting water freight transport.

3.    Offices associated with port facilities and functions.

4.    Parking decks.

5.    Watchmen quarters employed on the premise.

6.    Lift equipment to load and unload ships.

7.    Weigh stations.

8.    Lighthouse.

9.    Fuel dock.

10.   Seaplane base.

11.   Water transportation of freight

12.   Marine cargo handling; loading, unloading and stevedore facilities.


SECTION 1505: PROHIBITED USES

1.    Asphalt batching.

2.    Cement processing.

3.    Storage of petroleum products stored in excess of 1,000 gallons.

4.    Hazardous material or hazardous chemical storage or transport.

5.    Ship cleaning.

6.    Salvage yards, ship scrapping, dismantling and wrecking operations not wholly contained in
      buildings.

7.    Livestock holding.

8.    Marine Salvage.
9.     Open storage of fertilizers, agricultural lime and other chemicals.

10.    Billboards.

11.    Any use with outside storage of aggregate, limestone, coal, slag, salt, sand or other bulk
       materials shipped by commercial watercraft vessels and or barges.


SECTION 1506: REVIEW STANDARDS

The Planning Commission shall approve, deny or modify preliminary planned unit development plans, based
upon the site plan review and landscaping standards of this ordinance and the following standards below.
Likewise, the City Commission shall approve, deny, or modify final planned unit development plans (after
review and recommendation by the Planning Commission) based upon the following standards:

1.     The uses proposed will have a beneficial effect, in terms of public health, safety, welfare, or
       convenience of any combination thereof, on present and potential surrounding land uses. The uses
       proposed will not adversely affect the public utility and circulation systems, surrounding properties,
       or the environment.

2.     The uses proposed should be consistent with the land use plans adopted by the City.

3.     The amount of open space provided is compatible with and meets the requirements of this ordinance,
       which the Planning Commission or City Commission may modify, even though such modifications
       do not conform to that required in other sections of this ordinance.
4.     The amount of off-street parking areas is adequate, which the Planning Commission or City
       Commission may modify even though such modifications do not conform to that required in other
       sections of this ordinance.

5.     The amount of landscaping and buffering areas provided are compatible with and meet the
       requirements of this ordinance, which the Planning Commission or City Commission may modify
       even though such modifications do not conform to that required in other sections of this ordinance.

6.     The design provides for the protection or enhancement of significant natural, historical, or
       architectural features within the proposed development area.

7.     The uses proposed will result in safe, convenient, uncongested and well defined vehicular and
       pedestrian circulation systems.

8.     The land uses presented shall provide a mix of uses to perpetuate an economically viable, mixed use
       port.

9.     The project shall demonstrate adequate support services for all activities.
10.    Stockpiles of salt and agricultural lime must be covered or sufficiently isolated from the surface water
       to prevent leaching.

11.    Aggregate, salt, lime, or soil stockpiling areas shall not occupy more than 30% of the site or district.

12.    Truck freight terminals shall not occupy more than 30% of the site area or district. Trucks shall be
       stored a minimum of two hundred (200) feet from the ordinary high water mark.


This ordinance adopted:

Ayes:______________________________________________________________

Nayes:_____________________________________________________________

Adoption Date:

Effective Date:

First Reading:

Second Reading:

                                                     CITY OF MUSKEGON

                                                     By: _________________________________
                                                            Ann Meisch, MMC, City Clerk
                                           CERTIFICATE

        The undersigned, being the duly qualified clerk of the City of Muskegon, Muskegon County,
Michigan, does hereby certify that the foregoing is a true and complete copy of an ordinance adopted
by the City Commission of the City of Muskegon, at a regular meeting of the City Commission on the
10th day of January, 2017, at which meeting a quorum was present and remained throughout, and that
the original of said ordinance is on file in the records of the City of Muskegon. I further certify that
the meeting was conducted and public notice was given pursuant to and in full compliance with the
Michigan Zoning Enabling Act, Public Acts of Michigan No. 33 of 2006, and that minutes were kept
and will be or have been made available as required thereby.

DATED: ___________________, 2017.               __________________________________________
                                                Ann Meisch, MMC
                                                Clerk, City of Muskegon



Publish:        Notice of Adoption to be published once within ten (10) days of final adoption.
                                             CITY OF MUSKEGON
                                             NOTICE OF ADOPTION

Please take notice that on January 10, 2017, the City Commission of the City of Muskegon
adopted an ordinance to amend the Waterfront Industrial Planned Unit Development District
section of the Zoning Ordinance to modify the preamble, uses permitted (Section 1504),
prohibited uses (Section 1505), and review standards (Section 1506). Copies of the ordinance
may be viewed and purchased at reasonable cost at the Office of the City Clerk in the City Hall,
933 Terrace Street, Muskegon, Michigan, during regular business hours.

This ordinance amendment is effective ten days from the date of this publication.

Published ____________________, 2017.                              CITY OF MUSKEGON

                                                                   By _________________________________
                                                                         Ann Meisch, MMC
                                                                         City Clerk

---------------------------------------------------------------------------------------------------------------------

PUBLISH ONCE WITHIN TEN (10) DAYS OF FINAL PASSAGE.

Account No. 101-80400-5354




                                                                                                                        13
WI-PUD Districts in the City of Muskegon

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