Downtown Development Authority Agenda 05-11-2021

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                                                   CITY OF MUSKEGON

                        DOWNTOWN DEVELOPMENT AUTHORITY {"DDA")

                     BROWNFIELD REDEVELOPMENT AUTHORITY {"BRA")

                                                 REGULAR MEETING


                     DATE OF MEETING:                                  Tuesday, May 11, 2021

                     TIME OF MEETING:                                   10:30A.M.

                     PLACE OF MEETING:                                 ZOOM for participants and Facebook Live/
                                                                       Facebook "City of Muskegon Government"
                                                                       for public



                                                           AGENDA


     I.         Roll Call
     II.        Approval of the regular meeting minutes of April 13, 2021
     III.       Public comment on agenda items
     IV.        Brownfield Redevelopment Authority business
                A. Brownfield Plan Amendment for Viridian Shores Redevelopment Project (Pete
                   Wills-Jake Ekholm)
                B. DISCUSSION ONLY - Project proposal for a state EGLE $1,000,000 brownfield
                   loan to suppmi Harbor 31 redevelopment site. (Pete Wills-Jake Ekholm)
      V.        Downtown Development Authority business
                A. DDA financial report (Beth Lewis)
                B. DDA financial request from the Downtown Muskegon Social District (Dave
                   Alexander)
                C. DDA discussion and direction of FY 2021-22 unexpended funds (board)
                D. Downtown events update (Ann Meisch)
      VI.       Public participation
      VII.      Adjourn



AMERICAN DISABILITY ACT POLICY FOR ACCESS TO OPEN MEETING OF THE CITY COMMISSION AND ANY OF
                             ITS COMMITTEES OR SUBCOMMITTEES

    The City of Muskegon will provide necessary reasonable auxiliary aids and services, such as signers for the hearing
 impaired and audio tapes of printed materials being considered at the meeting, to individuals with disabilities who want
  to attend the meeting, 24- hour notice to the City of Muskegon. Individuals with disabilities requiring auxiliary aids or
services should contact the City of Muskegon by writing or calling the following: Ann Meisch, City Clerk at 933 Terrace
 Street, Muskegon, MI 49440 or by calling (231) 724-6705 or TTY/TDD: Dial 7-1-1 and request that representative dial
                                                        23 1-724-6705
                             CITY OF MUSKEGON
                  DOWNTOWN DEVELOPMENT AUTHORITY {DDA) /
                 BROWNFIELD REDEVELOPMENT AUTHORITY {BRA)
                             REGULAR MEETING
                                  MINUTES

                                         April 13, 2021

The meeting was held electronically via Zoom. Chairperson M. Bottomley called the meeting to order
at 10:30 AM and roll was taken.

MEMBERS PRESENT:            M. Bottomley (Muskegon MI), B. Hastings (Muskegon MI), J. Riegler
                            (Muskegon MI), M. Kleaveland (Muskegon MI), M. Johnson Sr (N01ion
                            Shores MI), J. Moore (Muskegon MI), H. Sytsema (Muskegon MI), J.
                            Wallace Jr (Muskegon, MI), F. Peterson (Muskegon, MI)

MEMBERS ABSENT:              F. DePung D. Pollock, S. Black, D. Kalisz

STAFF PRESENT:               P. Wills, Director of Strategic Initiatives; J. Eckholm, Economic
                             Development Director; L. Mikesell, Director of Development Services;
                             D. Alexander, Downtown Manager; B. Lewis, Finance Director; K.
                             Grant, Assistant Finance Director; A. Meisch, City Clerk; S. Pulos,
                             Administrative Assistant.

OTHERS PRESENT:              F. Bednarek, Muskegon Museum of A1i; K. Hallman, Muskegon
                             Museum of A1i.

APPROVAL OF MINUTES

A motion to approve the regular meeting minutes as corrected of November 24, 2020 was made by H.
Sytsema supp01ied by M. Kleaveland and on a voice vote unanimously approved.

PUBLIC COMMENT ON AGENDA ITEMS -- None.

BROWNFIELD REDEVELOPMENT AUTHORITY BUSINESS

Brownfield update - P. Wills gave an update on what plans might be coming to the BRA. J. Eckholm
told the BRA that a Brownfield Plan Amendment for Harbor 31 property on Muskegon Lake at
Shoreline Drive and Terrace Street will be presented to the BRA in the next month or two. No BRA
action was needed in April.


DOWNTOWN DEVELOPMENT AUTHORITY BUSINESS

DDA Financial Rep01i-B. Lewis reviewed the budget rep01i from March 31 and said the budget is in
line. Expenses and revenues stmiing to come in for the Lakeshore Art Festival and Taste of Muskegon.
The revenues and expenses are in balance as it is three months away from the event. The DDA has
budgeted $25,000 to supp01i the events. The Finance Depmiment asked the DDA to increase the
budgeted amount to $50,000 but no action was taken. H. Sytsema expressed frustration of not having
enough detail in the budget to lmow where the DDA stands for funds available for grants and projects.
B. Lewis promised to update the report with more detail.

Motion to accept the financial report M. Johnson and supported by F. Peterson. Voice vote all in favor,
no nays.

Mercy Health Arena bond payments - The DDA has accepted the debt payments for the arena roof and
ventilation at $215,000 annually for 10 years. The Finance Department is asking the DDA to rescind
that supp01i and instead supp01i the payment of new city bonds refinancing the debt at $130,000 a year
for 10 years. In the sh01i-term, this is a cost savings in the annual budget of about $70,000.

Motion to rescind prior DDA support of debt service for the Mercy Health Arena roof and ventilation
system and for the next 10 years supp01i the arena bond payments at $130,000 a year made by H.
Sytsema and supported by F. Peterson. Roll call vote: F. Peterson, B. Hastings, M. Bottomley, J.
Riegler, M. Kleaveland, M. Johnson Sr, J. Moore, H. Sytsema, voting Yea, none voting Nay.

Muskegon Museum of Art Funding Request-- F. Bednarek and K. Hallman of the Muskegon Museum
of A1i presented on the museum's expansion plans and $9.9 million fundraising campaign. The DDA
was asked to supp01i the campaign with a $100,000 pledge over five years beginning in fiscal year
2022-23. The campaign is at 75 percent of goal. The expansion will allow the museum to display more
of its permanent collection and have larger gallery space for visiting exhibitions. Construction would
begin late 2021 or early 2022. The expansion would open in 2023. DDA members questioned the
museum officials on details of the expansion project. M. Johnson asked for more time to consider the
request in light ofunce1iainty of the DDA events budget. The DDA board overall expressed supp01i of
the museum, of the expansion and assisting in reaching the goal. D. Alexander gave background on the
request that came from a meeting with the museum and F. Peterson. Staff is supporting the request.

Motion to consider the request but to table until the June meeting by M. Johnson and supp01ied by J.
Moore. Roll call vote to table F. Peterson, B. Hastings, M. Bottomley, J. Riegler, M. Kleaveland, M.
Johnson Sr, J. Moore, H. Sytsema, voting Yea, none voting Nay.

Events post-COVID support-The DDA budget amended in August included $15,000 for post-COVID
marketing. At this point, D. Alexander recommended supp01iing the non-profit downtown events as
they attempt to get back in operations in 2021 after a year of no activity due to COVID. A. Meisch
outlined the approach of five events creating a fund through the Community Foundation for Muskegon
County. Such DDA funding could be put into that account.

Motion to supp01i downtown events post-COVID with $15,000 in marketing funds and direct staff to
equally distribute it made by B. Hastings and supported by J. Moore. Motion was withdrawn.

Motion to direct the $15,000 in funds evenly to just the city's/DDA's Lakeshore Art Festival and Taste
of Muskegon made by J. Riegler and supported by J. Moore. Voice vote F. Peterson, B. Hastings, M.
Bottomley, J. Riegler, M. Kleaveland, J. Moore, H. Sytsema, voting Yea, none voting Nay.

Streetlighting on Terrace - L. Mikesell presented a request from DPW/Engineering on support of
decorative streetlighting for the redesign of the boulevard. The estimate for the poles would be
$165,000. The DDA is waiting on budget issues to make a decision at a future meeting. Streetlighting
is in the DDA plan as a priority.
Public participation - None.

Adjournment -- There being no fmiher business, the meeting was adjourned at 12: 19 p.rn.

da
                Muskegon Brownfield Development Authority:
                         Agenda IV-A Item for 5-11-21
                        Harbor 31 LLC, 105 Viridian Drive
              Viridian Shores at Harbor 31 Redevelopment Project
                          Brownfield Plan Amendment

Requesting party: Harbor 31 LLC

Outline of the request: Harbor 31 LLC has submitted a Brownfield Plan
Amendment for the Viridian Shores at Harbor 31 Redevelopment Project - a
residential development on 3.5 acres located at 105 Viridian Drive along the south
shore of Muskegon Lake. The investment in the first phase is estimated at $15.2
million.

Background: The 3.5-acre property is the site of the former Teledyne Continental
Motors industrial facility. This area is previously known as Edison Landing. It has
been previously designated as a SmartZone in which the GVSU Innovation Hub,
residential site condominiums and the offices of Parmenter Law are currently
located. Plans for the site include single family detached residential as well as
owner-occupied townhomes. Proposed redevelopment activities include the
construction of 33 two-story residential homes (including a combination of 15
single-family free-standing homes and 18 multifamily duplex style homes). The
project will create a walkable community that provides access to Muskegon Lake,
greenspace areas, and downtown Muskegon . Sustainable development concepts
are proposed throughout the project including green building techniques and low-
impact development stormwater management. Total private investment, for this
phase, not including property acquisition, is approximately $15,200,000.

The development is expected to start in Spring 2021 and continue through 2023.

The future masterplan of the phased development will also include the
construction of a 118-unit senior living community, a 134-unit Boardwalk Flats
apartment building, a 44,000 square foot retail and 120-unit apartment complex
named Harbor 31 Commons, a four-story 107 room hotel, a retail boat sales and
on-demand boat storage facility and a 100 slip marina with eight dedicated
shopper docks. The project is expected to have a significant economic impact to
the area through the creation of over 1,200 construction-re lated jobs along with
nearly 550 FTE (full-time equivalent} jobs.

Extensive environmental and geotechnical field work has been performed onsite.
The developers continue to work with EGLE to address several legacy
environmental issues that exist on various aspects of the project scope which
could include wetland replacement obligations. A revised Planned Unit
Development {PUD} site plan was approved by the City Commission in January.

This impactful waterfront multi-use project is another initiative which is key to the
continued redevelopment of our downtown area.

Staff comments:
   1. Earlier this year, the developer's environmental consultant completed a
       Phase II Environmental Site Assessment {ESA} and relied on historical
       environmental investigations conducted over the past 25 years to conclude
       that the known contamination onsite meets the definition of a "facility"
       under the state's Brownfield Act PA 451.
   2. This plan is for $4,018,080 in eligible costs. It is a local-only property tax
       capture plan, although through statute the plan is eligible for $76,900 for
       eligible environmental costs captured by state educational millage through
       EGLE. There is no need for state approval.
   3. The local only EGLE eligible costs are $782,000 and include $600,000 for
       due care and $80,000 for response activities. Local only MSF eligible costs
       are $3,159,180 and include $40,000 demolition, $60,000 asbestos
       abatement, $380,000 site preparation and $730,000 for infrastructure
      improvements.
   4. The initial capture for phase one is estimated at $1.81 million over the 26
      years. Subsequent phases are expected to bring further plan amendments
      to the BRA that would cover all eligible costs within the plan's timeframe.
   5. The cost of the eligible activities included in this Plan Amendment will be
      paid for by the Developer. The Developer will seek reimbursement for
      eligible activity costs through capture of available local and state (as
      applicable} tax increment revenues as permitted by Act 381.
   6. Capture of tax increment revenues for Developer reimbursement is
      anticipated to commence in 2025 (after the sunset of the Smart Zone tax
      abatement for the property} and end in 2047, a total of 26 years. This Plan
      Amendment assumes approximately five years of additional capture of tax
      increment revenues (following Developer reimbursement) for deposit into
      a Local Brownfield Revolving Fund, if available.
   7. There is a 15 percent contingency in the plan.
   8. A request for 5% interest is included for all accrued and unreimbursed
      eligible activities on a yearly basis.
   9. There is an annual $10,000 administrative fee paid to the BRA.

Staff recommendation: City staff has reviewed the Viridian Shores at Harbor 31
Redevelopment Project brownfield plan amendment and staff recommends
approval.

Suggested motion: I move to approve/disapprove the resolution for the
Brownfield Plan Amendment for the Viridian Shores at Harbor 31 Redevelopment
Project and further requests a public hearing before the Muskegon City
Commission to consider adoption of the plan.
                                         City of Muskegon
                                Brownfield Redevelopment Authority
                               County of Muskegon, State of Michigan

            RESOLUTION APPROVING REVISED BROWNFIELD PLAN AMENDMENT

                         Viridian Shores at Harbor 31 Redevelopment Project




       Minutes of a regular meeting of the Board of the City of Muskegon Brownfield

Redevelopment Authority, County of Muskegon, State of Michigan, held on the 11th day of May

2021 at 10:30 a.m., prevailing Eastern Time.

                         Membera
       PRESENT:
                                   ---------- ---------- ---

                         Members
       ABSENT:
                                   ---------- ---------- ---

       The following preamble and resolution were offered by Member _ _ _ _ _ _ _ _ and

supported by Member _ _ _ _ _ _ __

       WHEREAS, a Brownfield Plan has been adopted pursuant to Act 381, Public Acts of

Michigan, 1996, as amended ("Act 381"), a copy of which is on file with the Secretary of the City of

Muskegon Brownfield Redevelopment Authority (the "Authority"); and

       WHEREAS, the Authority is authorized to approve amendments to the Brownfield Plan and

recommends the Amendment to add eligible properties within the Viridian Shores at Harbor 31

Redevelopment Project for approval to the City of Muskegon, County of Muskegon, State of

Michigan (the "City").


       NOW, THEREFORE, BE IT RESOLVED AS FOLLOWS:

       1.      Approval of Brownfield Plan.       The Board hereby adopts and approves the

       Brownfield Plan Amendment for the Viridian Shores at Harbor 31 Redevelopment Project

       and recommends the approval of the Brownfield Plan Amendments by the Muskegon City
    Commission.

    2.       Public Hearing. The Board hereby requests city personnel to provide a notice of

    Public Hearing on the proposed Brownfield Plan Amendments, and further requests that

    such hearing notice be provided to all taxing jurisdictions. Notice of the time and place of

    the hearing shall be given pursuant to Act 267, Public Acts of Michigan, 1976, as amended

    ("Open Meetings Act").

    3.       Deliver Resolution and Brownfield Plan to City.        The Chair of the Authority is

    directed to deliver a certified copy of this resolution and the Brownfield Plan Amendments to

    the City Clerk.

    4.       Disclaimer.   By adoption of this resolution and approval of the Brownfield Plan

    Amendments , the Authority assumes no obligation or liability to the owner, developer or

    lessor of the Eligible Property for any loss or damage that may result to such persons from

    the adoption of this resolution and Brownfield Plan Amendments.

    5.       Work Plan Transmittal. The Chair of the Authority shall be authorized to transmit to

    the Michigan Strategic Fund, the Michigan Economic Development Corporation and/or the

     Michigan Department of Environmental Quality, on behalf of the Authority, a final Act 381

     Work Plan that has been reviewed and approved by the Authority.

     6.      Repealer. All resolutions and parts of resolution in conflict with the provisions of this

     resolution are hereby repealed or amended to the extent of such conflict.

     AYES:

     NAYS:



RESOLUTION DECLARED ADOPTED.



                                    Martha Bottomley, Chair
                                    City of Muskegon Brownfield Redevelopme nt Authority


                                              -2-
I hereby certify that the foregoing is a true and complete copy of a resolution adopted by the Board

of the City of Muskegon Brownfield Redevelopment Authority, County of Muskegon, State of

Michigan, at a regular meeting held on May 11, 2021, and that said meeting was conducted and

public notice of said meeting was given pursuant to and in full compliance with the Open Meetings

Act, being Act 267, Public Acts of Michigan, 1976, and that the minutes of said meeting were kept

and will be or have been made available as required by said Act.




                                     Martha Bottomley, Chair
                                     City of Muskegon Brownfield Redevelopment Authority




                                               -3-
City of Muskegon
Brownfield Redevelopment Authority

Brownfield Plan Amendment for the
Viridian Shores at Harbor 31
150 Viridian Drive
Muskegon, Michigan


Approved by the City of Muskegon Brownfield Redevelopment Authority
Approved by the City of Muskegon Board of Commissioners




Prepared with the assistance of:
Fishbeck
1515 Arboretum Drive SE
Grand Rapids, Michigan 49546
616-464-3876
Table of Contents                                                                                                                            Fishbeck      I Page i


1.0    Introduction ..................................................................................................................................................1
       1.1     Proposed Redevelopment and Future Use for the Eligible Property .............................................. 1
       1.2     Eligible Property Information ..........................................................................................................1

2.0    Information Required by Section 13(2) of the Statute ................................................................................. 2
       2.1    Description of Costs to Be Paid for With Tax Increment Revenues ................................................. 2
       2.2    Summary of Eligible Activities .........................................................................................................4
       2.3    Estimate of Captured Taxable Value and Tax Increment Revenues ................................................4
       2.4    Maximum Amount of Note or Bonded Indebtedness ..................................................................... 5
       2.5    Duration of Brownfield Plan ............................................................................................................5
       2.6    Estimated Impact of Tax Increment Financing on Revenues of Taxing Jurisdiction ........................ 5
       2.7     Legal Description, Property Map, Statement of Qualifying Characteristics and Personal Property5
       2.8    Estimates of Residents and Displacement of lndividuals/Families .................................................. 5
       2.9     Plan for Relocation of Displaced Persons ........................................................................................5
       2.10    Provisions for Relocation Costs .......................................................................................................5
       2.11   Strategy for Compliance with Michigan's Relocation Assistance Law ............................................. 6
       2.12    Other Material that the Authority or Governing Body Considers Pertinent ................................... 6

List of Figures
Figure 1 Location Map
Figure 2 - Site Layout Map

List of Tables
Table 2 - Tax Increment Revenue Capture
Table 3 Tax Increment Revenue Reimbursement Allocation

List of Attachments
Attachment A        Brownfield Plan Amendment Resolution(s)
Attachment B        Conceptual Renderings
Attachment C        Environmental Data Tables and Map
Attachment D        Reimbursement Agreement
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1.0              Introduction
The City of Muskegon Brownfield Redevelopment Authority (the "Authority" or MBRA) was established by the City
of Muskegon pursuant to the Brownfield Redevelopment Financing Act, Michigan Public Act 381 of 1996, as
amended ("Act 381"). The primary purpose of Act 381 is to encourage the redevelopment of eligible property by
providing economic development incentives through tax increment financing for certain eligible properties.

This Brownfield Plan Amendment ("Plan Amendment") serves as an amendment to the City of Muskegon's
existing Brownfield Plan, allowing inclusion of the eligible property described in Sections 1.1 and 1.2 below.
Incorporation of eligible property into the City's Brownfield Plan permits the use of tax increment financing to
reimburse Viridian Land Shores Co, LLC ("Developer") for the cost of eligible activities required to redevelop the
eligible property. See Attachment A for copies of Plan Amendment resolutions.

1.1              Proposed Redevelopment and Future Use for the Eligible Property
The Developer is proposing to redevelop a portion of the former Continental Motors industrial site located at 105
Viridian Drive, Muskegon, Michigan (the "Property"). Proposed redevelopment activities include the construction
of 33 two-story residential homes (including a combination of 15 single-family free-standing homes and 18 multi-
family duplex style homes) with options for rooftop seating overlooking Muskegon Lake (the "Project"). The
Project will create a walkable community that provides access to Muskegon Lake, greenspace areas, and
downtown Muskegon. Sustainable development concepts are proposed throughout the Project including green
building techniques and low-impact development stormwater management. Total private investment, not
including property acquisition, is approximately $15,200,000. The development will create approximately 10-20
new jobs (office and maintenance) . Project renderings are provided as Attachment B.

The development is expected to start in Spring 2021 and continue through 2023.

1.2               Eligible Property Information
The 3.5-acre Property is located in downtown Muskegon along the south shore of Muskegon Lake. The Property
has been historically utilized for industrial purposes dated back to the 1800s. Based on a recent Phase II
Environmental Site Assessment (ESA) completed in 2021 and historical environmental investigations conducted
over the past 25 years, these past industrial uses have resulted in widespread contamination across the Property.
Known contaminants in the soil with concentrations exceeding Michigan Department of Environment, Great
Lakes, and Energy (EGLE) Part 201 Generic Residential Cleanup Criteria (GRCC) include heavy metals and volatile
organic compound (VOCs) . Groundwater contaminants with concentrations identified above Part 201 GRCC
consist of voes.

The Developer is not a liable party and completed a Baseline Environmental Assessment (BEA) in accordance with
Part 201 of the Natural Resources and Environmental Protect Act, 1995 PA 451, as amended (NREPA) .

Given the known contamination, the Property is a "facility" pursuant to Part 201 of NREPA. As such, it is
considered an "eligible property" as defined by the Michigan Redevelopment Financing Act, Act 381 of 1996.

Maps depicting the location and layout of the Property are attached as Figures 1 and 2. Environmental data
tables are provided in Attachment C.




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2.0              Information Requ ired by Section 13(2) of the Statute
2.1              Description of Costs to Be Paid for With Tax Increment Revenues
Act 381 provides pre-approval fo r ce rta in activities t hat have been con duct ed at t he Property. Ad ditional activities
req ui re BRA approval fo r reimburse ment from loca l, school ope rating, and st ate education taxes. Tax increme nt
revenues will be used to reim burse th e Developer for t he fo llowin g eligible activities.

Tables l a, lb and le be low provid e an eli gible activity cost summa ry fo r th e Project.


                                               Table la-Summary of Eligible Activity Costs

                                                           EGLE Eligible Activities                                Estimated Cost

Deoartment Soecific Activities

      Site Assessment and BEA Activities                                                                                     $11,200
      Due Care Planning                                                                                                      $30,000
      Documentation of Due Ca re Compliance                                                                                  $12,000
      Health and Safety Plan/Soil Management Plan                                                                                $3,700
                                                                              EGLE Eligible Activities Sub-Total             $56,900
      Brownfield Plan Amendment/Act 381 Work Plan Preparation                                                                $15,000

      Brownfield Plan Amendment Implementation                                                                                   $5,000

                                                                      EGLE ELIGIBLE ACTIVITIES TOTAL COST                    $76,900



                                                Table lb-Summary of Eligible Activity Costs

                                           Local Only EGLE Eligible Activities                                     Estimated Cost

      Due Care (Sub-Total)                                                                                                  $600,000

             Volatilization to Indoor Air Mitigation                                                                        $360,000

             Engineered Barriers                                                                                            $100,000

             Dewatering                                                                                                     $140,000

        Response Activities (Sub-Total)                                                                                          $80,000

             Contaminated Soil/Fill Material Removal, Disposal and Oversight                                                     $80,000

                                                              Local Only EGLE Eligible Activities Sub-Total                 $680,000
       Contingency (15%)                                                                                                    $102,000

                                                      Local Only EGLE ELIGIBLE ACTIVITIES TOTAL COST                        $782,000




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                                              Table le-Summary of Eligible Activity Costs

                                          Local Only MSF Eligible Activities                                  Estimated Cost

    Demolition (Sub-Total)                                                                                               $40,000

    Asbestos Abatement (Sub-Total)                                                                                       $60,000

    Infrastructure Improvement (Sub-Total)                                                                              $730,000

           Urban Storm water Management System                                                                          $121,000

           Electric                                                                                                     $136,000

           Landscaping                                                                                                   $90,000

           Utility Connection Fees                                                                                       $35,000

           Signage                                                                                                       $15,000

           Concrete and Asphalt                                                                                         $191,000

           Water and Sanitary Sewer Mains                                                                               $142,000

      Site Preparation (Sub-Total)                                                                                      $380,000

           Clearing and Grubbing                                                                                             $5,000

           Geotechnical Engineering & Investigation                                                                      $90,000

           Grading and Land Balancing                                                                                    $65,000

           Engineered Fill Import and Placement                                                                         $100,000

           Temporary Erosion Control, Fencing and Security                                                               $55,000

           Relocation of Utilities                                                                                       $65,000

                                                              Local only MSF Eligible Activities Sub-Total            $1,210,000

     Contingency (15%)                                                                                                  $181,500

      Brownfield Plan Amendment/Act 381 Work Plan Preparation                                                                $15,000

      Brownfield Plan Amendment Implementation                                                                                $6,500

      Interest (5%) *                                                                                                 $1,746,180

                                                   LOCAL ONLY MSF ELIGIBLE ACTIVITIES TOTAL COSl                      $3,159,180

           * Interest ca lculat ed yea rly base d on eli gible activity cost s accru ed

Tot al EG LE and loca l only MSF eli gibl e activiti es cost s is $4,018,080.




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2.2             Summary of Eligible Activities
Eligible activities as defined by Act 381 and included in this Plan Amendment consist of the following:
Pre-Approved Department Specific Activities: These activities are permitted to occur prior to Plan Amendment
approval. Preparation of a Phase I ESA, BEA and due care documents are necessary to protect the new Property
owner/Develop er from liability for environmental contamination. Additional due care assessment and/or planning
activities are anticipated, including but not limited to preparation of a soil management plan and health and
safety plan. Pre-approved activities can be reimbursed from state school and local tax increment revenues.

Due Care Activities: Due care activities will include implementation of vapor intrusion mitigation systems, as
applicable, to prevent unacceptable exposures to potential indoor air inhalation concerns. Engineered barriers
will be utilized to protect against direct contact concerns related to known contamination. During construction
activities, dewatering is anticipated. Contaminated groundwater will be properly managed to comply with due
care. Due care costs will include environmental consultant oversight and management.

Asbestos Abatement: An asbestos wrapped pipe was identified on the property during assessment activities and
will need to be properly abated prior to redevelopment activities.

Demolition: Select Site demolition will be necessary to facilitate safe redevelopment and reuse of the Property.

Infrastructure Improvements: Infrastructure improvements include urban stormwater management, electric
utilities, landscaping, utility connection fees, signage, concrete and asphalt pavement and water and sanitary sewer
main upgrades. Costs will include oversight, management, and professional fees associated with these activities.

Site Preparation: Site preparation is expected to include clearing and grubbing, geotechnical engineering, grading
and land-balancing, engineered fill import and placement, temporary erosion control, fencing and security and
relocation of utilities. Costs will include oversight, management, and professional fees associated with these
activities.

Contingency: A 15% is included for all eligible activities not already completed to accommodate unexpected
conditions encountered during the project.

Plan Amendment and Act 381 Work Plan (if necessary) Preparation: This Plan Amendment was required for
authorization of reimbursement to the Developer from tax increment revenues under Public Act 381 of 1996, as
amended. An Act 381 Work Plan may be prepared in the future.

Interest: 5% interest is included for all accrued and unreimbursed eligible activity on a yearly basis.



2.3              Estimate of Captured Taxable Value and Tax Increment Revenues
For the purposes of this Plan Amendment, the taxable value base year is 2021. The 2021 taxable value of the
eligible property is $400,000. After completion of the development, the taxable value is estimated at $7,433,369.
This Plan Amendment assumes a 1.5% annual increase in the taxable value of the eligible property. Initial capture
is anticipated to begin in 2025 (after the sunset of the Smart Zone tax abatement for the property).

The estimated captured taxable value for the redevelopment by year and in aggregate for each taxing jurisdiction
is depicted in tabular form (Table 2: Tax Increment Revenue Capture). Actual taxable values and tax increment
revenues may vary year to year based on economic and market conditions, tax incentives, building additions, and
property improvements, among other factors.

 A summary of the estimated reimbursement schedule by year and in aggregate is presented as Table 3: Tax
 Increment Revenue Reimbursement Allocation.


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Method of Financing and Description of Advances Made by the Municipality
The cost of the eligible activities included in this Plan Amendment will be paid for by the Developer. The
Developer will seek reimbursement for eligible activity costs through capture of available local and state (as
applicable) tax increment revenues as permitted by Act 381. Refer to Attachment D for a copy of the
Reimbursement Agreement.

2.4             Maximum Amount of Note or Bonded Indebtedness
Bonds will not be issued for this Project.

2.5              Duration of Brownfield Plan
Capture of tax increment revenues for Developer reimbursement is anticipated to commence in 2025 and end in
2047, a total of 26 years. This Plan Amendment assumes approximately five years of additional capture of tax
increment revenues {following Developer reimbursement) for deposit into a Local Brownfield Revolving Fund, if
available.

2.6              Estimated Impact of Tax Increment Financing on Revenues of Taxing
                 Jurisdiction
The estimated amount of tax increment revenues to be captured for this redevelopment from each taxing
jurisdiction by year and in aggregate is presented in Tables 2 and 3.

2. 7             Legal Description, Property Map, Statement of Qualifying Characteristics and
                 Personal Property
       •   The legal description is as follows:

           150 Viridian Drive

           CITY OF MUSKEGON LAKESHORE SMARTZONE SITE CONDOMINIUM UNIT A 3RD AMENDMENT TO
           MASTER DEED L4189/P164 MASTER DEED RECORDED L3505/P491 SUBJ TO ELECTRIC ESMNT L3591/P578
           SBJTTO ELECTRIC ESMNT L3630/P646 SBJTTO UNDERGROUND ELECTRIC LN ESMNT L3719/P211 SBJTTO
           UNDERGROUND ELECTRIC LN ESMNT L3728/P997

       •   The Property layout is depicted on Figure 2.
       •   The Property is considered an "eligible property" as defined by Act 381 because the Property is a facility
           pursuant to Part 201. Facility verification is included in Attachment C.
       •   New personal property added to the Property is included as part of the Eligible Property to the extent it is
           taxable.

 2.8              Estimates of Residents and Displacement of Individuals/Families
 No residents or families will be displaced because of the Project.

 2.9              Plan for Relocation of Displaced Persons
 Not applicable.

 2.10             Provisions for Relocation Costs
 Not applicable.




 Z:\2021\210653\WORK\REP1\BROWNFIELO PLAN AMENDMEN1\HARBOR 31_DRAFT_BROWNFIELD PLAN AMENDMENT_2021_0430.00CX
May 5, 2021                                                                                                                 Fishbeck
                                                                                                              -------~-----------
                                                                                                                                       I Page 6

2.11            Strategy for Compliance with Michigan's Relocation Assistance Law
Not applicable.

2.12            Other Material that the Authority or Governing Body Considers Pertinent
The Project will significantly improve the Muskegon Lake shoreline through revitalization of Property once used
for industrial purposes. The new condominium units are part of a larger developer that will increase the City's tax
base, bring new permanent residences to the City of Muskegon, create new jobs and increase the local
workforce.




Z:\2021\210653\WORK\REPT\BROWNflELD PLAN AMENDMENT\HARBOR 3l_DRAFT_BROWNFIELD PLAN AMENDMENT_2021_D430.DOCX
Figure 1
Location Map
                                                                                                    Muskegon East, Michigan 7.5 Minute Quadmngle Map
                                                                                                                                    Published 1972,· Photoi11s ected 1980
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                                                                                             CONTOUR INTERVAL JO FEET
                                                                                          Site Boundaries Shm\>11 are Aooroximate

  Topographic Map                                                                                                                        Figure 1
  Vacant Commercial Property
  150 Viridian Drive (Lot A)
  Muskegon, Michigan 49440
                                                                                                                                                      ASES
  SES Project 2020-846
 Figure 2
Site Layout Map
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                   RESIDENTIAL              I
                                                I
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                                                                     MW-106
                                                                                                                                                                              MUSKEGON LAKE




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TITlE                                                                               LEGEllO                                                                                      PROJECT
                                                                                                                                                                                                2020846
    SITE MAP                                                                    - - - - APPROX IMATE SITE BOUNDARY                                  - - - - SHORE LINE
    Site Location Map                                                               &     MONITORING WE LL                                                                       SCALE




                                                                                                                                                                                                                                 SES
                                                                                                                                                                                           1"=80'             11/14/2020
LOCATK)N                                                                            II]   TRANSFORMER                                                                            ORA\'JN            CHECKED
           Vacant Commercial Property                                                                                                                                                        amh                  ss
           150 Vlrldlan Drive                                                                                                                                                    FILE                FIGURE

           Muskegon, Muskegon County, Michigan                                                                                                                                     2020846
        Table 2
Tax Increment Revenue Capture
Table 2 - Estimate of Total Incremental Taxes Available for Capture                                                                                                                                                                                   1 of 3
Viridian Shores, Muskegon, Muskegon County, Michiga n




                    Estimated Taxable Value (TV) Increa se Rate: 1.5%

                                                           •   .,1                                                        4                                                    7                                                   10                11
                                                   Calendar Vear        2021           2022             2023             2024               2025             2026             2027              2028             2029             2030              2031
                                             Base Taxable Value          400,000   $   400,000 $   400,000 $               400,000            400,000         400,000           400,000     $    400,000     $   400,000           400,000      $   400,000
                                               Estimated New TV                    $ 3,042,320 $ 5,279,880 $             7,323,516          7,433,369        7,544,869        7,658,042     $   7,772,913    $ 7,889,507          8,007,849     $ 8,127,967
                      Incremental Difference (New TV - Base TV)
                                                                  1
                                                                                   $   2,642,320        4,879,880        6,923,516      $ 7,033,369          7,144,869        7,258,042     $   7,372,913    $ 7,489,507          7,607,849         7,727,967


     hoolCa t ure                           Millage Rate
State Education Tax (SET)                        6.00000                                  15,854           29,279             41,541          42,200            42,869          43,548            44,237           44,937            45,647           46,368
School Operating Tax                            17.98380                                  47,519           87,759         124,511            126,487           128,492         130,527           132,593          134,690           136,818           138,978

                            School Total         23.9838                                 63,373          117,038          166,052            168,687          171,361          174,075           176,830          179,627          182,465           185,346




County Museum                                    0.32200                                      851           1,571               2,229           2,265            2,30 1             2,337           2,374           2,4 12              2,450             2,488

County Veterans                                  0 .07150                                     189              349               495               503              511              519               527              535               544              553

Senior Citzens Services                          0.49990                                   1,321            2,439               3,461           3,516            3,572              3,628           3,686           3,744               3,803             3,863
Central Dispatch                                 0.29999                                      793           1,464               2,077           2,110            2,143              2,177           2,212           2,247               2,282             2,318
Community College                                 2.20340                                  S,822           10,752             15,255           15,497           15,743             15,992          16,245          16,502            16,763            17,028

M.A.I.S.O                                        4.7S410                                  12,562           23,199             32,91S           33,437           33,967             34,505          35,052          35,606            36,168            36,740

City Operating                                  10.07S40                                  26,622           49,167             69,757           70,864           71,987             73,128          74,285          75,460            76,652            77,862

City Sanitation                                   2.99790                                  7,92 1          14,629             20,756           21,085           21,420             21,759          22,103          22,453            22,808            23,168
Hackley library                                   2.39970                                  6,341           11,710             16,614           16,878           17,146             17,417          17,693          17,973            18,257            18,545
MPS Sinking                                       0 .99810                                 2,637            4,871               6,910           7,020            7,13 1             7,244           7,359           7,475               7,593             7,713

County Operating                                  5.69780                                 15,055           27,805             39,449           40,075           40,710             41,355          42,009          42,674            43,348            44,032

                              local Total         30.3198                                 80,115          147,957          209,920           213,250           216,631          220,062           223,545         227,080           230,668           234,310


     0                                      MIiiage Rate
 Community College Debt                           0.34000                                     898           1,659    $          2,354           2,391            2,429              2,468           2,507           2,546               2,587             2,628

 Hackley Debt                                     0.45320                                  1,197            2,212 $             3,138   $       3,188            3,238              3,289 $         3,341           3,394     $         3,448   $         3,502
 MPS Debt - 199 5                                 3.86000                                 10,199           18,836 $           26,725    $      27,149    $      27,579             28,016 $        28,459          28,909     $      29,366     $      29,830

 MPS Debt· 2009                                   3 .50000                                 9,248           17,080 $           24,232    $      24,617    $      25,007    $        25,403 $        25,805          26,213     $      26,627     $      27,048

             Total Non •Capturable Taxes           8.1532                                 21,543           39,787 $           56,449    $      57,344    $      58,254    $        59,176   $      60,113          61,063     $      62,028     $      63,008



 1
 Assumes 1% annual Increase for Inflation
                                                                                   $     143,487    $     264,995    $     375,972      $     381,937    $     387,992    $     394,138     $     400,376    $    406,707     $     413,134     $     419,656
         Total Tox Increment Reven/    TIR) Available for Capture


 Note-
 For the purpose of Table 2 the new ta xable value is estimated based on 40% of a total overal investment of $19,000,000 divided over th e three years estima ted for construction of the project




Z:\2021\210653\WORK\Rept\Brownfield Plan Amendment\TIF Tables\TB 1 TBL02 and TBL03_TIF_ harbor 31 local only,xlsx
Table 2 - Estimate of Total Incremental Taxes Available for Capture                                                                                                                                                                                                    2 of 3
Viridian Shores, Muskegon, Muskegon County, Michigan




                      Estimated Taxable Value (TV) Increase Rate:

                                                         PlanYear1    12                13                14                15                16                17                18                19                20                21                22
                                                     Calendar Year   2032              2033              2034              2035              2036              2037              2038              2039              2040              2041              2042
                                               Base Taxable Value $  400,000 $   400,000                  400,000  $   400,000                400,000            400,000     $ 400,000               400,000     $   400,000 $          400,000            400,000
                                               Estimated New TV $ 8,249,886 $ 8,373,635                  8,499,239 $ 8,626,728               8,756,129         8,887,471     $ 9,020,783           9,156,095     $ 9,293,436 $ 9,432,838                 9,574,330
                                                                1                                                                                                                8,620,783         8,756,095         8,893,436         9,032,838         9,174,330
                       Incremental Difference (New TV . Base TV) $ 7,849,886 $ 7,973,635                 8,099,239 $ 8,226,728               8,356,129         8,487,471


     hool ca tur                              MIiiage Rate
Sta te Education Tax (SET)                          6.00000           47,099             47,842            48,595            49,360            50,137             50,925           51,725            52,537            53,361             54,197           55,046
School Operating Tax                               17.98380           141,171           143,396           145,655           147,948           150,275           152,637           lSS,034           157,468           159,938           162,44S           164,989
                              School Total          23.9838          188,270            191,238           194,251           197,308           200,412           203,562           206,759           210,004           213,298           216,642           220,035


 ocal                                         Millage Rate
County Museum                                       0.32200                2,528             2,568             2,608             2,649             2,691             2,733             2,776             2,819             2,864             2,909             2,954
County Veterans                                     0.07150                 561               570               S79               588               597               607               616               626               636               646               656
Senior Citzens Services                             0.49990                3,924             3,986             4,049             4,113             4,177             4,243             4,310             4,377             4,446             4,516             4,586
Central Dispatch                                    0.29999                2,3S5             2,392             2,430             2,468             2,507             2,546             2,S86             2,627             2,668             2,710             2,7S2
Community College                                   2.20340            17,296            17,569             17,846           18,127             18,412            18,701            18,995            19,293            19,596            19,903     $      20,21S
M.A.I.S.D                                           4.75410            37,319            37,907             38,505           39,111             39,726            40,350            40,984            41,627            42,280            42,943     $      43 ,616
City Operating                                     10.07540            79,091            80,338             81,603           82,888             84,191            85,51S            86,858            88,221            89,605            91,009     $      92,435
City Sanitation                                     2.99790            23,S33            23,904             24,281           24,663             2S,051            25,445            25,844            26,250            26,662            27,080     $      27,504
Hackley library                                     2.39970            18,837            19,134             19,436           19,742             20,052            20,367            20,687            21,012            21,342            21,676     $      22,016
MPS Sinking                                         0.99810                7,83S             7,958             8,084             8,211             8,340             8,471             8,604             8,739             8,877             9,016   $         9,157
County Operating                                    5.69780            44,727            45,432             46,148           46,874             47,612            48,360            49,119            49,890            50,673            51,467     $      52,273
                                Local Total         30.3198           238,007           241,759            245,567          249,433            253,356           257,338           261,380           265,483           269,647           273,874     $     278,164




Community College Debt                                                     2,669             2,711             2,754             2,797             2,841             2,886             2,931             2,977             3,024             3,071             3,119
 Hackley Debt                                       0.45320                3,558             3,614                 $
                                                                                                               3,671                $
                                                                                                                                 3,728                 $
                                                                                                                                                   3,787                 $
                                                                                                                                                                     3,847                 $
                                                                                                                                                                                       3,907             3,968                 $
                                                                                                                                                                                                                           4,031             4,094             4,1S8
 MPS Debt · 1995                                    3.86000            30,301      $     30,778             31,263 $         31,755 $           32,255 $          32,762 $          33,276 $          33,799 $          34,329 $          34,867            35,413
 MPS Debt· 2009                                     3.50000            27,475      $     27,908             28,347 $         28,794 $           29,246 $          29,706 $          30,173 $          30,646 $          31,127 $          31,615     $      32,110
            Total Non-Capturable Taxes               8.1532            64,002      $     65,011             66,035 $         67,074 $           68,129 $          69,200 $          70,287 $          71,390 $          72,510 $          73,647     $      74,800



 1
 Assumes     J"    annual increase for Inflation
                                                                                                                                                                                                                                                     $     498,199
       Total Tax Increment Revenue (TIR) Available for Capture S      426,277      $    432,997      $     439,818     $    446,741      $     453,768     $     460,900     $     468,139     $     475,487     $     482,946     $     490,516


 Note·
 For the purpose of Table 2 the new taxable value is e!stimated based on 40% of a total overal investment of $19,000,000 divided over the three years estimated for construction of the project




Z:\2021\210653\WORK\Rept\Brownfield Plan Amendment\TIF Tables\TB 1 TBL02 and TBL03_TIF_ harbor 31 local only.xlsx
Table 2 - Estimate of Total Incremental Taxes Available for Capture                                                                                                                                    3 of 3
Viridi an Shores, Muskegon, Muskegon County, Michigan




                               Estimated TalCable Value (TV) Increase Ra te:

                                                     I              Plan Vea~!         23           i       24           i       25        1       26           I       27               TOTAL     I
                                                                Calendar Year          2043                 2044                 2045              2046                 20"7
                                                          Base Taxable Value       s 400,000 $ 400,000 s 400,000                   s          $ 400,000                 400,000      s
                                                            Estim ated New TV $      9,717,945 s 9,863,714 $10,011,670             $10,314,273$ 10,161,845                           $
                                                                               1
                                Incremental Diffe rence (New TV- Base TV)          $ 9,317,945 $ 9,463,714 $ 9,611,670 $ 9,761,845 $ 9,914,273                                       $

~rhonl Canture                                           Millage Rate l
State Education Tax (SET)                                      6.00000             $     55,908 $             56,782         $    57,670      $     58,571          $     59,486     $ 1,245,721
School Operat ing Tax                                         17.98380             $    167,572 $            170,194 $           172,854 $          175,555 $            178,296 $ 3,733,801
                                      School Total            23.9838              $    223,480 $            226,976 $           230,524 $         234, 126 $           237,782      $ 4,979,522


~oca             ure                                     MlllneRate I
County Museum                                                 0.32200              $        3,000 $              3,047       $        3,095   $         3,143       $        3,192   $    66,854
County Veterans                                               0.07150              $          666 $                677       $           687 $            698       $          709   $    14,845
Senior Ciuens Services                                        0.49990              $        4,658 $              4,731       $        4 ,80 5 $         4,880       $        4,956   $ 103,789
Centra l Dispatch                                             0.29999              $        2,795       s        2,839       $        2,883   $         2,928       $        2,974   $    62,284
Community College                                              2.20340             s     20, 531        s     20,852         $     21,178     s      21,509         $     21,845     $ 457,470
M.A.I.S. D                                                     4.75410             $     44,298         $     44,991         $     45,695     $      46,409         $     47,133     $   987,047
City Operating                                               10.07540              $     93,882         $     95,351         $     96,84 1 $         98,354         $     99,890     $ 2,09 1,857
City Sanitation                                                2.99790             $     27,934         $     28,371         $     28,815     $      29,265         $     29,722     $ 622,425
Hackley library                                                2.39970             $     22,360         s     22,710         $     23,065 $          23,425 $             23,791     s    498,226
 MPS Sinking                                                   0 .99810            $        9,300       s        9,446       s      9,593 $           9,743 $                    $ 207,226
                                                                                                                                                                             9,895
 County Operating                                              5.69780             $     53,092         $     53,922         s     54,765 $          55,621 $             56,490 $ 1,182,979
                                          Local Tota l         30.3198             $    282,518         $    286,938         $    291,424 $         295,977 $            300,599     $   6,295,002


!PJ,. .. .r,. .. 1i ,..,.ble   MIiis••~                  MIiiage Rate I
 Community College Debt                                        0 .34000            $            $
                                                                                            3,168                    $
                                                                                                                 3,218                3,268   $             $
                                                                                                                                                        3,319                    $
                                                                                                                                                                             3,371    70,591
 Hackley Debt                                                  0 .45320            $            $
                                                                                            4,223                    $
                                                                                                                 4,289                4,356   s             $
                                                                                                                                                        4,424                    $
                                                                                                                                                                             4,493    94,093
 MPS De bt· 1995                                               3.86000             s     35,967 $             36,530 $             37,101     s      37,681 $             38,269 $   801,414
 MPS Debt· 2009                                                3.50000             $     32,613 $             33,123 $             33,641 $          34,166 $             34,700 $   726,671
                Tota l Non •Capturable Taxes                    8.1532             $     75,971 $             77,160 $             78,366      $     79,590 $             80,833 $ 1,692,769



 1
  Assuml!.S 1% annual Increase for Inflation
       Tota l Tax Increment Revenue (TIR) Ava Hable for Capture S                       505,998         $    513,914         $    521,948     $     530,103         $    538,381     $ 11,274,525


 Note·
 For the pu rpose of Table 2 the new taxa ble value Is e!stimated based on 40% of a total overal Investment of $19,000,000 divided over th e three years est




 Z:\2021\210653\WORK\Rep t\Brownfield Plan Amendment\TIF Tables\TB 1 TBL02 and TBL03_TIF _ harbor 31 local only.xlsx
                 Table 3
Tax Increment Revenue Reimbursement Allocation
Table 3 - Estimate of Total Incremental Taxes Available for Reimbursement                                                                                                                                                                                                                                                                                                                                                                         1 of 2
Viridian Shores, Muskegon, Muskegon County, Michigan




                                                                    Ont.loper
                                                                    W1Jmum




                                                                       l oul               3,919,630
                                                                                         $4,0il,CIIO

                                                                        MS r

                                                                                                       I               I       ;JU             I       l!)?.i      I       >,)U            I        ms          I        hl!6         I       ?OU         I       wu          I        ~0?9        I       JO)!)      I       JOH          I       :-on        I       ;,,;u       I       w._;.i     I       ?OJ ~       I       1,rn,       I
                                                                                                                                                                                                                                                                                                                                                                                                                                   200,412
To1.ils.t.1tclnu,ment1IRtven1.1!                                                                           s               s        63,l7l         s    117,018        s     166,0S l          $     168,697$             111,]r.t        $    114,07$        $    176,830        $     179,6J7        $    181,465       $    l 85,l.t6       $    I U,270        $    19 1,23!       $    194,Ul        $    l.97,303       $

Smc lk-fidd llt.lkw!~t f ~               ISO',!, of SlT1                                                   s                                                                                   I      11.un
                                                                                                                                                                                                                                                                                                                                                                                                          $                        200,412
SU t t TIRAvalll b!tfor Rtlmbur11 ment                                                                     s                         6 ],]1)       $    117,038        s     166,05 2          $     10,sn s              171,361         $    174,075        $    176,130        $     t n,,n         $    111,4'S       $    115,3.(6        $    I H,170        $    191,231        $    194,U I            197,JOI        $

                                                                                                                                                                                                                                                                                                                                                                                                               249,UJ              2B,356
                                                                                                                                                   s                                           $     1 13,H.0             216,61 1             220,062             223,~5               227,0SO             H0,668             2H,3 10              238,007             24 1,7S9            245,567


                                                                                                                                                                              .....
Toi~ toe.i i 1ncttmcnlill   Rt~'l!nvt!                                                                                               to,115             10 ,957              209,920
                                                                                                                                                                                                                                                                                                                                                     10,000              10.000              10.00,             10,000              10,000
IAA Mm'ni1tr1U-• ru
llt'll\bomood ( ntcrpriH 2 - INUI t, , AbiittlMnl
                                                                                                                                         500
                                                                                                                                     ,IQ,057
                                                                                                                                            $
                                                                                                                                            $
                                                                                                                                     39,551 $
                                                                                                                                                          u,1,
                                                                                                                                                          10.000

                                                                                                                                                         63,918
                                                                                                                                                                             ,10,C,,O

                                                                                                                                                                              9,4,960
                                                                                                                                                                                                      """'
                                                                                                                                                                                                     106,US
                                                                                                                                                                                                      96,, u
                                                                                                                                                                                                                           10,0CO
                                                                                                                                                                                                                          IOl,,315
                                                                                                                                                                                                                           H,315
                                                                                                                                                                                                                                                10,C,,O
                                                                                                                                                                                                                                               110,0 ll
                                                                                                                                                                                                                                               100,0)1
                                                                                                                                                                                                                                                                    JO.COO
                                                                                                                                                                                                                                                                   111,TI)
                                                                                                                                                                                                                                                                   ZU>45
                                                                                                                                                                                                                                                                                         10.00,
                                                                                                                                                                                                                                                                                        113,5-IO
                                                                                                                                                                                                                                                                                        217,oao
                                                                                                                                                                                                                                                                                                             10,000
                                                                                                                                                                                                                                                                                                            U S,lU
                                                                                                                                                                                                                                                                                                            H O,W
                                                                                                                                                                                                                                                                                                                                10,000
                                                                                                                                                                                                                                                                                                                               111, ISS
                                                                                                                                                                                                                                                                                                                               224,1 10
                                                                                                                                                                                                                                                                                                                                                    119,00 J
                                                                                                                                                                                                                                                                                                                                                    Ut,007
                                                                                                                                                                                                                                                                                                                                                                        ll0,179
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               DDA BUDGET WORKSHEET FOR FY 2020-21




                                                                                                      FY2020-21 BUDGET         FY2020-21 ACTUAL
Revenues                                          FY2018-19 ACTUAL      FY 2019-20 -ACTUAL                AMENDED                APRIL 30, 2021
Tax Increment                                    $      1,069,486.00    $         924,457.00      $           490,931.00   $           490,931.00
Reimbursement - State                                                   $                 -       $                   -    $                   -
Event Revenue*                                                                                    $            96,200.00   $            18,422.00
Trans From General Fund                                                 $                 -       $                   -    $                    -
Interest Income                                   $           521.63    $              263.00     $               100.00   $                   5.00
Fundraising Revenue**                                                   $            2,000.00     $            75,000.00   $            27,300.00
BID Income (or $50,000 levy) **                                         $          132,432.45     $           112,653.00   $            50,000.00
TIFA                                                                    $                 -       $                   -    $                    -
Form er Mall Brownfield Income (GF)                                     $                 -       $                   -    $                    -
Total                                             $     1,070,007.63    $        1,059,152.45     $           774,884.00   $           586,658.00


Expenses                                          FY2018-19 ACTUAL           FY 2019-20                  FY 2020-21               FY 2020-21
Busine ss Dev. Manager Wages                                            $           71,924.00     $            73,781.00   $            58,544.00
Trans to GF - Marketing, Events, Overhead                               $                 -       $                   -    $                    -
FICA (7.65%)                                                            $            5,457.00     $             5,848.00   $             4,711.00
Workers Comp (2%)                                                       $              394.00     $               410.00   $               363.00
Insurance                                                               $            1,728.00     $             7,748.00   $             4,066.00
Residency Bonus (4%)                                                    $                 -       $             2,743.00   $                    -
Life Insurance (0.24%)                                                  $              269.00     $               270.00   $               251.00
401(k) (6%)                                                             $            7,853.00     $             8,000.00   $             5,710.00
Total Salaries/Benefits                                                 $           87,625.00     $            98,800.00   $            73,645.00
Walkability Improvements                                                $                  -      $                   -    $                    -
Streetscape/Wayfinding / Walkability                                    $                  -      $                   -    $                    -
Public Art (Downtown Initiative)                                        $                  -      $                   -    $                    -
Landscaping                                                             $           50,000.00     $            30,000.00   $              3,000.00
Snow Removal                                                            $           62,629.00     $            65,000.00   $                    -
Fa~ade Program                                                          $                  -      $                   -    $                    -
Financial Incentives                                                    $                  -      $                   -    $                    -
Downtown Park(s)****                                                    $            5,759.00     $             9,000.00    $             3,338.00
Marketing/Promotions                              $          5,000.00   $                  -      $            25,000.00    $             5,492.00
Blight                                                                  $                  -      $                   -    $                    -
Office Space and Misc Operating                   $          5,930.11   $           17,005.00     $            17,000.00    $             7,157.00
Total Recurring Costs                             $        10,930.11    $          135,393.00     $           146,000.00   $            18,987.00
LC Walker Phase 1                                 $       750,000.00    $                  -      $                   -     $                   -
LC Walker Phase la                                $       250,000.00    $                  -      $                   -     $                   -
Morris Street Lot                                                       $           20,000.00     $                   -     $                   -
Taste of Muskegon                                                       $                  -      $             2,600.00    $             2,192.00
Lakeshore Art Festival                                                                            $           159,279.00    $            25,401.00
Projects and Events                               $     1,000,000.00    $           20,000.00     $           161,879.00    $            27,593.00
County Debt Payments ($1M)                                              $          865,928.00     $           134,073.00    $                   -
LC Walker HVAC/Roof*******                                              $                  -      $           208,051.00    $           208,051.00
Other Debt Payments (smartzone)                                         $                  -      $                   -     $                   -
Total Debt Payments                                                     $          865,928.00     $           342,124.00 $             208,051.00
Total Expenses                                    $     1,010,930.11    $        1,108,946.00     $           748,803.00 $             328,276.00


!Net Rev/Expenses                                          59,077.52 I$            (49,793.55)1   $            2G,os1.oo 1 $           258,382.00 1


!cumulative Cash Reserves                                  59,077.52 I $             9,283.97   I$             35,364.97   I$          293,746.97     I
*Event Revenue $65,550 Ta ste of Muskegon and $96,200 Lakeshore Art Festival
** Fundraising Revenue - Taste of Muskegon $12,000, Cookie Crawl $5,000 and Lakeshore Art Festival $70,000
**** ODA Maintains Splash Pad and Dog Park
*******10-year debt contribution at $215,000/yr for 10 years related to new roofing, dehumidification, and boiler at LC




            O:\Planning\COMMON\DDA- BRA\DDA - BRA 2021- current year\051121 DDABRA meeting\Proposed DDA Budget For FY2020-21
                    Muskegon Downtown Development Authority

                              Agenda item V./B for 5-11-21

                  Request to help fund Social District common area



Requesting party: City Economic Development

Outline of request: Staff is asking the DDA board to authorize staff to spend no more than
$4,000 to create a Social District gathering space at Second and Western.

Background: The owners of Burl & Sprig in moving into their new location on Second Street (old
Boar's Belly) approached downtown, the city and the chamber on creating common area space
at Second and Western. The site is owned by the Downtown Muskegon Development Corp. and
B&S has an agreement with the DMDC to use the back 30 feet of the site for a portable stage.
B&S has a plan to refurbish the sand and put up picnic tables, lights and some overhead
canopies for shade. The estimate for materials and electric is $8,000. City DPW will be providing
the sand.

Staff comments: Staff likes the idea of adding excitement and activity east of Western-Third.
Last summer, the "party" was always west of Western-Third. If approved by the DDA, I would
go to the BID and ask for authorization for the other $4,000. Right now, you have roughly
$30,000 in surplus funds for the 20-21 fiscal year with one month to go. If funding is secured
and materials purchased, B&S, the chamber and downtown would organize a volunteer event
to install the elements. This would be similar to the downtown cleanup we all did late spring
last year.

Staff recommendation: To authorize up to $4,000 to support materials for a Western and
Second common area in the Social District.

Suggested motion: I move to authorize staff to spend up to $4,000 to assist in funding the
materials for a common area in the Downtown Muskegon Social District at Second and
Western.
                                '


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                                                                                            1
                    Muskegon Downtown Development Authority

                               Agenda item V /C for 5-11-21

                        DDA board discussion on 2021-22 budget



Requesting party: DDA manager

Outline of request: Staff would like to have the DDA board members look at their mission and
2019 strategic plan to direct a discussion on what should be done in the upcoming 2021-22
fiscal year budgeted with anticipate unexpended funds.

Background: Putting aside the Business Improvement District and events revenues and
expenditures in your DDA budget, the DDA budget appears to have approximately
$75,000-$100,000 in unexpended funds next fiscal year for the DDA to decide. BID is a wash
revenues vs. expenditures and the events are a wild card that will be known by mid July, with
the completion of the Lakeshore Art Festival.

Outside of BID and events, DDA tax increment revenues: $368,744

Known expenditures:

Wages/personnel: $98,800

Marketing/promotion: $20,000

Office/misc.: $17,000

Downtown parks: $9,000

Streetscape/decorations: $15,000

Mercy Health Arena debt: $130,000

Total: $289,800

Unexpended funds: $78,944

Fund balance: Approximately $25,000

Staff comments: Board members should come to the May meeting with ideas on how the DDA
funds should be expended. There has been plenty brought to the DDA and board members
have their own ideas. The discussion and consensus building will be helpful for staff to provide
a proposed DDA budget in June.

Suggested motion: None
Muskegon Downtown Development Authority approved
mission statement February 2019:




''Our mission is to allocate our
resources in support of
development, promotions, and
events toward creating a
thriving downtown and its
waterfront where all people can
live, work, play and stay.//
             Strategic Plan for the Muskegon Downtown Development Authority

                                          May 14, 2019



                                        Situation Analysis

Downtown Muskegon - and the entire Muskegon community- is in the midst of a historic
transformation. For downtown, that is a new era of a mixed-use, new urbanist, livable, and
walkable downtown where everyone can work, live, play and stay. Starting with the 2001
closure of the Muskegon Mall, its demolition, and the development of the Imagine Muskegon
plan in 2003, downtown has gone through a tremendous change. Much of that change has
been accelerated in the past three to five years. There has been more than $300 million in
downtown investment since the demolition of the Muskegon Mall, and another $100 million in
investment and development is currently underway.

Just as the downtown is being transformed, the management of downtown Muskegon is also
going through a progression. Due to Downtown Development Authority bonds for a third
anchor of the Muskegon Mall in 1990 - which was never built - the Downtown Development
Authority was paying off debt until the end of 2017. Downtown Muskegon Now - a small non-
profit of downtown stakeholders - formed in 2001 under another name to provide traditional
downtown management and promotion. Downtown Muskegon Now's ability to finance
downtown services and improvements were enhanced with the formation of a Business
Improvement District in 2016. With the payment of the Downtown Development Authority
bonds and a new substantial public funding source for downtown development, promotion and
management, the Downtown Development Authority recently took its rightful leadership
position in downtown's operations and future vision. Downtown Muskegon Now agreed to
merge into a rejuvenated Downtown Development Authority at the end of 2018.

Prior to deciding to merge, the Downtown Muskegon Now board -- with the participation of
Business Improvement District and Downtown Development Authority board members -- went
through a three-year downtown strategic planning process in April 2018. The three strategic
initiatives or priorities that came out of that planning session were to:

   1. Promote downtown Muskegon as a place to live.
   2. Strengthen the connection between the historic downtown and the downtown
      waterfront north of Shoreline Drive.
   3. Develop an overall downtown marketing plan for all stakeholders to use.

As the Downtown Development Authority ramps up its oversight of downtown management
and expenditure of significant Downtown Development Authority revenues in the district, the
Downtown Development Authority board also went through a similar strategic planning
process. Suzanne Velarde of Velarde Marketing-who was hired by Downtown Muskegon Now
for its strategic planning process - facilitated a planning session with the Downtown
Development Authority board at its March 2019 meeting. This report is a result of that session.



                    Downtown Development Authority Mission Statement

The mission of the Muskegon Downtown Development Authority is to allocate resources to
support development, promotion and events to create a thriving downtown, including the
waterfront, where all can live, work, play and stay.



                                     Short-Term Strategies

The following strategies represent the Muskegon Downtown Development Authority's priorities
for the 2019/2020 fiscal year (July 2019 through June 2020):



Downtown Marketing

   •   Support Current Marketing Efforts - Continue to fund and support current marketing
       activities that were previously developed and managed by Downtown Muskegon Now.
       These activities include the Downtown Muskegon Now website, social media, email
       marketing, maps, billboards, print advertising, radio advertising, and geofencing efforts
       until a longer-term marketing plan is developed.
   •   RFP/Contract with Marketing Agency- Distribute a request for proposal and engage in
       a selection process for a marketing agency that will be contracted to develop and
       implement a Muskegon Downtown Development Authority marketing plan.
   •   Coordinated Marketing Effort - Muskegon Downtown Development Authority
       marketing should complement and be coordinated with other community groups and
       organizations to encourage a consistent message for Muskegon. Other community
       marketing organizations include, but may not be limited to:
          o Muskegon County Convention and Visitors Bureau
          o Muskegon Lakeshore Chamber of Commerce
          o Government entities, including the City of Muskegon and Muskegon County
          o Non-profit institutions (i.e. museums, Community Foundation for Muskegon
              County, libraries, Nelson Neighborhood Association)
          o Downtown event promoters
          o Muskegon schools
Connecting Downtown to the Waterfront

•   Work with the City of Muskegon to support initiatives that create a stronger connection
    between the core downtown area and the downtown waterfront. Specific activities may
    include:
        o Developing a plan for a pedestrian-friendly crossing of Shoreline Drive at Third
           Street.
        o Enhanced lighting and streetscaping on pedestrian routes that go from the south
           side of Shoreline Drive to the waterfront. Priority should be given to established
           crossings (i.e. 3rd Street and 7th Street).



Wayfinding Signage

•   Support the City of Muskegon's improvement and expansion of wayfinding signage
    throughout the downtown, particularly signage that directs people to downtown parking
    areas.



Financial Incentives

    •   Loan Program - Provide financial support in the form of a low-interest loan program for
        new downtown developments, new downtown businesses or existing downtown
        businesses looking to expand within Downtown Development Authority boundaries.
        Preference should be given to retail businesses and businesses that expand the socio-
        economic diversity of downtown Muskegon.
    •   Grant Program - Offer a limited number of grant opportunities to area non-profits
        and/or public improvement initiatives (i.e. public art projects).
    •   Facade Program - Implement a fa~ade program that offers financial incentives and
        design assistance to downtown businesses and homeowners who are seeking to
        improve/renovate the exterior of their building.



Lighting/Streetscaping

    •   Support efforts to enhance lighting and streetscaping on streets adjacent to the core
        downtown.
                                        Long-Term Strategies

The following strategies represent the Muskegon Downtown Development Authority 's priorities
for the 2020/2021 and 2021/2022 fiscal years (July 2020 through June 2022).

In general, the DOA intends to concentrate on developing and promotin g varied living options,
pursuing unique urban retailers in the digital Amazon world, creating entertain ment-foo d-
beverage options to enhance a dynamic nightlife, and seeking recreational opportun ities to
complime nt the Muskegon Lakeshore.

Promotin g and developing

   •   Living - Already offering subsidized housing for seniors and families, downtow n needs to
       develop various market rate, student, "missing middle" and workforce development
       housing options within the ODA district. Both marketing and financial incentives of the
       short-term strategies can support promotio n of living downtow n.
   •   Retail Business Attraction - Research and Strategic Planning - Invest in a market study
       to research, analyze and prioritize the types of retail businesses to attract to
       Muskegon's downtow n. This work should also include the development of an attraction
       program, as well as urban retail training for owners and managers, and customer service
       training for employees of businesses within the Downtow n Development Authority 's
       boundaries. One specific opportun ity would be to attract an outdoor recreation
       outfitters or urban outfitters into the downtow n to serve the Lakeshore region, as part
       of the Muskegon Lakeshore Chamber of Commerce's 2019-2020 Take It Outdoors
       initiative.
   •   Entertain ment - Building on the strengths of the LC. Walker Arena, Fraunthal Center
       and The Block to name three, the DOA will continue to attract varied and diverse food
       and beverage businesses and market downtow n Muskegon's special events, festivals
       and activities. This will support the opening of the new convention center.
   •   Recreation - Two specific recreational pursuits can be further developed in the DDA
       district - bicycling and paddling - due to the Lakeshore Trail and the Muskegon Lake
       waterfron t. Recreational improvements could include a children's playgrounds, a skate
       park and a bike park. Others specifics might include:
   •   Connecting Downtow n to the Waterfro nt - See description in short-term strategies
       above.
  •    Expanded Bikeshare Program - Support the expansion of the downtow n bikeshare
       program that is scheduled for launch in summer, 2019. The Downtow n Development
       Authority 's role may include:
                o   Investment in additional bikes
                o   Investment in additional bike rental locations to expand the service outside
                    the core downtow n area (i.e. Lakeside, Pere Marquett e Beach)
               o   Financial support for ongoing management and upkeep of bike equipment
                   and rental locations

Other Strategies

    •   Improve Downtown 's Walkability / Accessibility - Work with the City of Muskegon to
        support improved walkability and handicapped accessibility throughout the downtown
        area, including sidewalks and access to businesses, parks and other public spaces.
    •   Wayfinding Signage - See description in short-term strategies above.



                                         Addendums:

•   Addendum #1 - List of strategic priorities/voting results from March 2019 Muskegon
    Downtown Developme nt Authority Board strategic planning session.

•   Addendum #2 - Letter from Downtown Muskegon Now to the City of Muskegon and
    Muskegon Downtown Developme nt Authority dated December 14, 2018 regarding
    endorseme nt of organizational transition and items for consideration in future Downtown
    Developme nt Authority activities.

•   Addendum #3 -Summary of findings from Downtown Muskegon Now strategic planning
    session -April 2018.

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