View the PDF version Google Docs PDF Viewer
CITY OF MUSKEGON
REGULAR MEETING
DATE OF MEETING: Tuesday, Oct. 12, 2021
TIME OF MEETING: 10:30 A.M.
PLACE OF MEETING: City Hall Commission Chambers, 933
Terrace, Muskegon, MI
______________________________________________________________________________
AGENDA
I. Roll Call
II. Approval of the regular meeting minutes of July 6, 2021
III. Brownfield Redevelopment Authority business
A. Brownfield Plan Amendment Adelaide Pointe (amended) (Pete Wills-Jake
Eckholm)
B. Brownfield Plan Amendment Trilogy Senior Housing Redevelopment Project at
Harbor 31, 60 Viridian Drive (Pete Wills-Jake Eckholm)
IV. Downtown Development Authority business
A. DDA financial statement (City Finance)
B. DDA Budget (Dave Alexander)
C. Additional funds for Social Sandbox (Dave Alexander)
D. Ending office agreement with the Muskegon Lakeshore Chamber (Jake Eckholm)
E. Marketing services agreement with the Muskegon Lakeshore Chamber (Dave
Alexander)
F. Downtown Christmas decorations contract (Dave Alexander)
G. Events reports LAF and Taste (Ann Meisch)
H. 2022 Lakeshore Art Festival management agreement (Ann Meisch)
V. Other
VI. 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 Marie Cummings, 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 231-724-6705
CITY OF MUSKEGON
DOWNTOWN DEVELOPMENT AUTHORITY (DDA) /
BROWNFIELD REDEVELOPMENT AUTHORITY (BRA)
REGULAR MEETING
MINUTES
July 6, 2021
The meeting was held in the City Commission Chambers. Chairperson M. Bottomley called the
meeting to order at 10:30 AM and roll was taken.
MEMBERS PRESENT: M. Bottomley, B. Hastings, J. Riegler, M. Kleaveland, D. Pollock,
M. Johnson Sr, J. Wallace Jr., Jeanette Moore
MEMBERS ABSENT: Members excused; F. Depung, S. Black, H. Sytsema, D. Kalisz, F.
Peterson
STAFF PRESENT: P. Wills, Director of Strategic Initiatives; D. Alexander,
Downtown Manager, Jake Eckholm Director of Economic
Development, Ken Grant Financial Director
OTHERS PRESENT: Carla Flanders Lakeshore Festival: Ryan Leetsma, Adelaide Pointe
QOZB: Roman Wilson and Kirk Perachbocher Fishbeck
APPROVAL OF MINUTES
Motion by Brad Hastings, Second by Mike Johnson to approve the regular meeting minutes for
May 11, 2021.
BROWNFIELD REDEVELOPMENT AUTHORITY BUSINESS
Brownfield Plan Amendment for Adelaide Pointe. P. Wills gave a summary of the request for a
Brownfield Plan Amendment for the Adelaide Pointe Project located at 1149 and 1204 W. Western
Ave., south shore of Muskegon Lake. Comments were given by Jake Eckholm
involvement with working out infrastructure issues with water and sewer. Including a Public
Beach are will be a positive amenity for everyone to enjoy. Ryan Leetsma gave an update on how
the different phases for the development are proceeding. The buildings will be wooden structures
with great lake views. Questions from Board members were answered. Environmental consultants
from Fishbeck commented on environmental and abatement conditions from former Michigan
Steel site that will need to be considered and corrected. Questions from Board members were
answered.
City staff has reviewed the Adelaide Pointe Project Brownfield Plan Amendment and recommends
approval.
Motion by M. Kleaveland, supported by J. Moore to approve the resolution for the Brownfield
Plan Amendment for the Adelaide Pointe Project and further request staff to set a public hearing
before the Muskegon City Commission to consider adoption of the plan. All in favor
DOWNTOWN DEVELOPMENT AUTHORITY BUSINESS
DDA Financial report. D. Alexander reviewed the financial report for June 30 2021. He discussed
expectations. Tax increment revenues were not yet
included.
A motion to accept the financial statement as presented was made by M. Kleaveland, supported
by J. Moore. All in favor.
Downtown Events Update: Lakeshore Art Festival. Carla Flanders presented the members with
a Preliminary Recap Report handout for the Art Festival on June 26 th and 27th 2021. Carla
exhibits and events.
PUBLIC PARTICIPATION
There was no Public Participation.
OTHER
Member discussions included: Concerns with Western and 2nd Ave. parking; and the progress with
the Hartshorn Village development, and Lakeview Lofts. Peter will look into the Shoreline Park
and waterfront access.
ADOURNMENT 11:56
am
Muskegon Brownfield Development Authority:
Agenda III-A Item for 10-12-21
Adelaide Pointe QOZB, LLC, 1148 and 1204 West Western Ave.
Adelaide Pointe Project
Brownfield Plan Amendment
Requesting party: Adelaide Pointe QOZB, LLC
Outline of the request: Adelaide Pointe QOZB, LLC has submitted an amended
Brownfield Plan Amendment for the Adelaide Pointe Project a 35-acre mixed use
waterfront development project including winter boat storage, marina space, In/Out
forklift boat storage, commercial/retail, and up to 400 housing units. Redevelopment of
this former industrial site is located at 1149 and 1204 West Western Ave on the south
shore of Muskegon Lake. Total private investment, not including property acquisition, is
approximately $250 million.
Background: The project seeks to transform the site of a former steel mill into a
development that will expand public access to waterfront activities through the creation
of a 280 slip marina, 400 new residential condo units of approximately 1,500 sf, dry
stack marina and boat storage, and commercial/retail space. Plans include using
sustainable development techniques, including solar boardwalks and roof systems,
electric vehicle charging stations, low-impact development stormwater management,
and integrated parking. The project is expected to lead to the creation of approximately
100 new positions (retail, office, marina) as well as hundreds of temporary construction-
related jobs. Plans for the site have begun and will continue through Fall 2030.
This sustainably designed multi-use project is intended to improve the existing 3,500-
foot Muskegon Lake shoreline through the expansion of public access for waterfront
activities such as swimming, fishing, boating, inviting peninsula park/greenspace areas,
and transient docking. The project will create a walkable community which will further
connect to an existing bike trail, our vibrant downtown and other recreational activities.
Staff comments:
1. On July 6, 2021, the BRA-DDA approved the original Brownfield Plan Amendment
for this project. At that time, staff was in the midst of negotiations on a TIF split
to lower the eligible cost obligations, for both parties, of expected public
infrastructure improvements. Since those negotiations had not been resolved, it
was decided to NOT forward the original Plan Amendment to the Commission for
approval until an agreement on the public infrastructure was reached. As a result,
an amended version of the original Plan Amendment is before you today which
reflects the agreement on the cost of the public improvements.
2. The additional public infrastructure expenses as reflected in this 2nd Plan
Amendment. Specifically, the City is proposing to use bond proceed of
$10,000,000 to pay certain eligible site preparation and public infrastructure
costs incurred by the City; which will be repaid via tax increment revenues:
a. $6,840,000 for creation of new roadways to support the development
b. $1,035,000 for reconfiguration of West Western
c. $1,615,000 for an East Basin Launch Well
d. Total City Bond eligible costs would be $12,608,621 (including interest of
$2,608,621)
3. This plan now reflects eligible costs of $54,166,757 (originally $28,722,614). It is a
local-only property tax capture plan, although through statute the plan is eligible
for $350,000 for eligible environmental costs captured by state educational
millage through EGLE. There is no need for state approval.
4. The local only EGLE eligible costs are now $3,250,000 (originally $2,250,000) and
include the following due care activities - $500,000 vapor intrusion mitigation,
$1,500,000 soil capping, $250,000 dewatering, and now includes an additional
$1,000,000 for the dredging and removal of soil contaminants. Local only MSF
eligible costs are now $21,295,000 (originally $13,195,000) which include
$1,500,000 demolition, $1,250,000 asbestos abatement, $5,545,000 (originally
$5,445,000) site preparation and $13,000,000 (originally $5,000,000) for public
infrastructure improvements.
a. These particular public infrastructure improvements will include
$10,000,000 for a marina basin, $2,000,000 for parks, and $1,000,000 for
an East Basin Launch Well.
5. The updated initial capture for phase one is estimated at $915,624 (1st
Amendment $646,299) over the 30 years of the plan. Subsequent phases are
expected to bring further plan amendments to the BRA that would cover all
6. The cost of the eligible activities included in this Plan Amendment will be paid for
by the City and Developer. The City and 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.
7. Capture of tax increment revenues for City reimbursement is anticipated to
commence in 2023 and end in 2029. Developer reimbursement will follow with
an estimated start date of 2029. The anticipated end date for Developer
reimbursement is 2048. It is projected that the Plan Amendment will extend 30
years, which assumes four years of additional capture of tax increment revenues
for deposit into a Local Brownfield Revolving Fund, if available.
8. There is a 15 percent contingency in the plan.
9. A request for 5% interest is included for all accrued and unreimbursed eligible
activities on a yearly basis.
10. There is an annual $10,000 administrative fee paid to the BRA.
Staff recommendation: City staff has reviewed the Adelaide Pointe Project second
brownfield plan amendment and recommends approval.
Suggested motion: I move to approve/disapprove the resolution for the amended
Brownfield Plan Amendment for the Adelaide Pointe Project and further request staff to
set 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
Adelaide Pointe Project - amended
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 12th day of October
2021 at 10:30 a.m., prevailing Eastern Time.
PRESENT: Members ____________________________________________________
______________________________________________________________________________
ABSENT: Members ____________________________________________________
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
WHEREAS, the Authority is authorized to approve amendments to the Brownfield Plan and
recommends the Amendment to add eligible properties within the Adelaide Pointe Project for
NOW, THEREFORE, BE IT RESOLVED AS FOLLOWS:
1. Approval of Brownfield Plan. The Board hereby adopts and approves the
Brownfield Plan Amendment for the Adelaide Pointe 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
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 Redevelopment 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 October 12, 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-
Figure 1
Location Map
VICINITY MAP
MICHIGAN
CITY OF
MUSKEGON
_
^
MUSKEGON COUNTY
Hard copy is
intended to be
8.5"x11" when
plotted. Scale(s)
indicated and
graphic quality may
not be accurate for
any other size.
SITE
PROJECT NO.
201515
LOCATION MAP FIGURE NO.
NORTH 0 1,000
FEET
2,000
© OpenStreetMap (and) contributors, CC-BY-SA 1
©Copyright 2020 All Rights Reserved
Figure 2
Site Layout Map
LEGEND
Approximate Property Boundary
Hard copy is
intended to be
8.5"x11" when
plotted. Scale(s)
indicated and
graphic quality may
not be accurate for
any other size.
PROJECT NO.
201515
SITE MAP
Source: Esri, Maxar, GeoEye, Earthstar Geographics, CNES/Airbus
DS, USDA, USGS, AeroGRID, IGN, and the GIS User Community, FIGURE NO.
2
Esri, HERE, Garmin, (c) OpenStreetMap contributors, Esri, HERE,
FEET
Garmin, (c) OpenStreetMapNORTH 0 and the
contributors, 150
GIS user300
community
©Copyright 2020 All Rights Reserved
Table 1
Tax Increment Revenue Capture
Table 2
Tax Increment Revenue Reimbursement Allocation
Attachment A
Conceptual Renderings
Attachment B
Environmental Data Tables and Map
LEGEND
Approximate Property Boundary
@
A Groundwater Sample Location
H
! Soil Gas Sample Location
H
! Soil Sample Location
Blue shading indicates a groundwater sample. Hard copy is
Yellow shading indicates a soil sample. intended to be
8.5"x11" when
plotted. Scale(s)
indicated and
graphic quality may
not be accurate for
any other size.
SB-07(2-3')
12/30/2
Arsenic 19,000
Cadmium 13,000 SB-04 (4-5')
Chromium, Total 190,000 12/30/20
Copper 430,000 Chromium, Total 30,000
Selenium 560 Selenium 600
TW-03
H SB-07
! 12/30/20 H SB-04
!
Benzene 9.7
Cadmium 7.2
Chromium, Total 33
Copper 150
SB-06 (1-2')
Lead 180 SB-03 (3-4')
12/30/20
Mercury 0.65 12/30/20
Chromium, Total 14,000
Zinc 190 Chromium, Total 27,000
Selenium 960
Selenium 1,100
H SB-06
! TW-03 @
A H SB-03
! SB-02 (4-5')
12/30/20
Arsenic 5,900
SB-01 (4-5') Cadmium 8,100
H SB-05
! 12/30/20 Chromium, Total 24,000
SB-05(2-3') Tetrachloroethene 170 Selenium 1,000
12/30/20 Chromium, Total 6,700
Selenium 1,400
Cadmium
Chromium, Total
4,900
49,000
H SB-02
!
H!H SB-01
Copper 76,000
Selenium 770 !
SG-03 H
!
H
! SG-04
SG-01
TW-01 @
A
H
!
@
SG-02
TW-02 A
PROJECT NO.
201515
SAMPLE EXCEEDANCE
Source: Esri, Maxar, MAP
GeoEye, Earthstar Geographics, CNES/Airbus
DS, USDA, USGS, AeroGRID, IGN, and the GIS User Community, FIGURE NO.
4
Esri, HERE, Garmin, (c) OpenStreetMap contributors, Esri, HERE,
FEET
NORTH 0 Garmin,
150(c) OpenStreetMap
300 contributors, and the GIS user
community
©Copyright 2021 All Rights Reserved
Attachment C
Resolutions Approving the Brownfield Plan
Amendment
Attachment D
Reimbursement Agreement
E
Muskegon Brownfield Development Authority:
Agenda III-B Item for 5-11-21
Harbor 31 LLC, 60 Viridian Drive
Trilogy Senior Housing Redevelopment Project at Harbor 31
Brownfield Plan Amendment
Requesting party: Harbor 31 LLC
Outline of the request: Harbor 31 LLC has submitted a Brownfield Plan
Amendment for the Trilogy Senior Housing Redevelopment Project at Harbor 31 -
a senior housing development on 5 acres located at 60 Viridian Drive along the
south shore of Muskegon Lake. The investment in the first phase is estimated at
$15 million.
Background: The 5-acre property is the site of the former Teledyne Continental
Motors industrial facility. Proposed redevelopment activities include the
construction of an approximately 63,000 square foot multi-story 118-unit senior
living building with surrounding asphalt parking areas, concrete walkways and
landscaping. The project will create a walkable community that provides access to
Muskegon Lake, greenspace areas, and downtown Muskegon. Total private
investment, for this phase, not including property acquisition, is approximately
$15,000,000. The development is expected to start in Spring 2022 and continue
through 2023. 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. On May 11th, the BRA-DDA approved a separate Brownfield Plan
Amendment for Viridian Shores at Harbor 31 project at 150 Viridian Drive.
The Amendment approved redevelopment activities, to occur on other
areas of the site, including residential homes, apartments, retail complex,
retail boat sales, boat storage facility and a marina with shopper docks.
2. Earlier this year, the 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 on
PA 451.
3. This plan is for $4,378,740 in eligible costs. It is a local-only property tax
capture plan, although through statute the plan is eligible for $119,500 for
eligible environmental costs captured by state educational millage through
EGLE. There is no need for state approval.
4. The local only EGLE eligible costs are $920,000 and include $800,000 for
due care. Local only MSF eligible costs are $3,339,240 and include $10,000
demolition, $781,968 site preparation and $490,000 for infrastructure
improvements.
5. The initial capture for phase one is estimated at $598,353 over the 27
years. Subsequent phases are expected to bring further plan amendments
to
6. 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.
7. 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 2049, a total of 27 years. This Plan
Amendment assumes approximately three years of additional capture of
tax increment revenues (following Developer reimbursement) for deposit
into a Local Brownfield Revolving Fund, if available.
8. There is a 15 percent contingency in the plan.
9. A request for 4% interest is included for all accrued and unreimbursed
eligible activities on a yearly basis.
10.There is an annual $10,000 administrative fee paid to the BRA.
11.In addition, the City has recently secured a State enhancement grant of
$2.3M to be used to remediate contaminated soil and mitigate adjacent
wetlands on site. A soil cap will be installed over the site to prevent human
and animal interaction with previously impacted soils.
Staff recommendation: City staff has reviewed the Trilogy Senior Housing
Redevelopment Project at Harbor 31 Brownfield Plan Amendment and staff
recommends approval.
Suggested motion: I move to approve/disapprove the resolution for the
Brownfield Plan Amendment for the Trilogy Senior Housing Redevelopment
Project at Harbor 31 and further request 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
Trilogy Senior Housing Redevelopment Project at Harbor 31
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 12th day of October
2021 at 10:30 a.m., prevailing Eastern Time.
PRESENT: Members ____________________________________________________
______________________________________________________________________________
ABSENT: Members ____________________________________________________
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
WHEREAS, the Authority is authorized to approve amendments to the Brownfield Plan and
recommends the Amendment to add eligible properties within the Trilogy Senior Housing
Redevelopment Project at Harbor 31 for approval to the City of Muskegon, County of Muskegon,
NOW, THEREFORE, BE IT RESOLVED AS FOLLOWS:
1. Approval of Brownfield Plan. The Board hereby adopts and approves the
Brownfield Plan Amendment for the Trilogy Senior Housing Redevelopment Project at
Harbor 31 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
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 Redevelopment 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 October 12, 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-
Muskegon East, Michigan 7.5 Minute Quadrangle Map
(Published 1972; Photoinspected 1980)
N
Muskegon Downtown Development Authority
Agenda item A for 10-12-21
Acceptance of financial statement Sept. 30, 2012
Requesting party: City Economic Development
Outline of request: Staff is asking the DDA board to review and accept the financial statement
for Sept. 30, 2021.
Background:
statement that is more understandable and transparent. It is a work in progress but hopefully
improved.
Staff comments: The financial statement is broken into three sections. The first is the DDA
budget from tax increment revenues, the second is for DDA backed downtown events of the
Lakeshore Art Festival and Taste of Muskegon and the third the Business Improvement District.
The DDA financials ar
Staff recommendation: To accept the Sept. 30, 2021 financial statement.
Suggested motion: I move to accept the Sept. 30, 2021 financial statement.
Muskegon Downtown Development Authority
Agenda item B for 10-12-21
Review and approval of the FY 2021-22 Budget
Requesting party: City Economic Development
Outline of request: Staff is asking the DDA board to review and approve the Fiscal Year 2021-22
DDA budget.
Background: a budget
format that is more understandable and transparent. The budget column of the Sept. 30
financial statement reflects the revenues and expenses communicated to the DDA board over
the past two meetings.
Staff comments: The 2021-22 DDA budget shows revenues of $327,287 from property tax
increment revenues and BID income of $17,000 for staff services provided the BID. That
revenue item was $50,000 last year making up for missed administrative payments from the
BID for the end of 2019 and 2020. Expenses of $290,500 show the staff costs, Mercy Health
Arena bond payment for HVAC/roof, streetscape/decorations, downtown parks,
marketing/promotion, and office/miscellaneous. Two items later in the agenda are reflected in
the budget line items. First, a reduction in office/misc of $6,000 from past budgets eliminating
the payments for DDA office space in the Muskegon Lakeshore Chamber of Commerce suite. Of
that, $3,000 each was put into marketing/promotion and streetscape line items. The second
item is the DDA purchase of marketing staff support from the chamber not to exceed $12,500.
has been covered by funds left over from Downtown Muskegon Now. Those funds have all
been spent. After marketing staff services, the DDA would have $19,500 for website hosting,
printed materials, advertising and other promotional activities. The budget shows unspent
funds for 2021-22 of $36,787 and a beginning fund balance of $89,129 of which is available
this fiscal year to be spent at board discretion to meet the DDA mission and goals.
Staff recommendation: To approve the 2021-22 DDA budget.
Suggested motion: I move to approve the 2021-22 DDA budget as presented.
Muskegon Downtown Development Authority
Agenda item C for 10-12-21
Additional Funds for the Social Sandbox
Requesting party: City Economic Development
Outline of request: Staff is asking the DDA board to increase its $4,000 authorized support for
the downtown Social Sandbox to a total of $5,000.
Background: The DDA and Business Improvement District each committed to $4,000 to building
the public gathering space at Second and Western in conjunction with the property owners
Downtown Muskegon Development Corp., Burl & Sprig, the chamber and the city. Volunteers
led by B&S constructed the Social Sandbox and the elements remain city property for potential
future use in other downtown vacant lots. The Social Sandbox was launched in early summer
and has been a huge success in the Downtown Muskegon Social District. It is expected that the
improvements will remain in place through the summer of 2022.
Staff comments: The actual costs came to $10,037 instead of $8,000. Staff is asking the DDA
and BID to split the overage.
Staff recommendation: To authorize an additional $1,018 for materials for the Social Sandbox.
Suggested motion: I move to authorize staff to reimburse an additional $1,018 in costs for the
materials for the Social Sandbox.
Muskegon Downtown Development Authority
Agenda item D for 10-12-21
Ending office agreement with Muskegon Chamber
Requesting party: City Economic Development
Outline of request: Give notice to the Muskegon Lakeshore Chamber of Commerce to end a
lease for office space in the chamber offices.
Background: Since the merger of the DDA and Downtown Muskegon Now in July 2019, the DDA
manager has kept a desk in the Muskegon Lakeshore Chamber of Commerce office suite, 380
W. Western, Suite 202. The arrangement allowed the DDA to have daily contact with the
Muskegon business community and chamber partners. The cost was $500 plus printing costs
that averaged $50 a month. The lease can be ended with 60-day notice.
Staff comments: Staff would like to have the DDA manager fulltime at City Hall in the
chamber office when that arrangement is needed. The savings would be $6,000 plus copy costs
per year.
Staff recommendation: To end the office lease with the Muskegon Lakeshore Chamber of
Commerce.
Suggested motion: I move to give notice to the Muskegon Lakeshore Chamber of Commerce to
.
A letter of understanding between the Muskegon
Downtown Development Authority and the Muskegon
Lakeshore Chamber of Commerce
The two parties the Muskegon Downtown Development Authority (DDA) and the Muskegon Lakeshore
Chamber of Commerce (chamber) agree to the lease of office space from July 1, 2019 to June 30,
2020. The chamber will lease approximately 105 square feet of office space to the DDA in its offices in
the Hines Building, 380 W. Western Ave. Suite 202, Muskegon, MI
The monthly lease payment will be $500. The lease will include the use of the office space, existing
office furnishings, telephone service, information technology with existing computers, network
connections, Internet service, reception desk services and copy machine access with a standard per copy
cost.
Signed by the chamber:
Cindy Larsen
Muskegon Lakeshore Chamber of Commerce president
Date:
Signed by the DDA:
Dave Alexander
Muskegon Downtown Development Authority, business development manager
Date:
Muskegon Downtown Development Authority
Agenda item E for 10-12-21
Contract for marketing services with the Muskegon chamber
Requesting party: City Economic Development
Outline of request: Staff is asking the DDA board authorize an agreement with the Muskegon
Lakeshore Chamber of Commerce for marketing services for downtown Muskegon.
Background:
Morgenstern since July 2019 for downtown Muskegon being paid for with unspent Downtown
Muskegon Now Funds, which are all expended. The DMN funds paid the chamber $25 an hour
for 10 hours a week. The services included website maintenance, social media, graphic arts,
printed materials, email list management, presentation materials and other promotional work.
Staff comments: This arrangement has worked very well for downtown and the chamber as we
have common goals. Staff would like to transfer that cost to the DDA budget within the
marketing and promotion line item. Staff suggests marketing work be provided at $25 an hour
for 10 hours a week for up to 50 weeks. Staff would ask for a monthly invoice outlining the
hours and work completed. The maximum expended would be $12,500 annually.
Staff recommendation: To enter into a marketing services agreement with the Muskegon
Lakeshore Chamber of Commerce for $25 an hour for up to 10 hours a week for up to 50 weeks
a year.
Suggested motion: I move to authorize staff to enter into a marketing services agreement with
the Muskegon Lakeshore Chamber of Commerce.
Muskegon Downtown Development Authority
Agenda item F for 10-12-21
Downtown Christmas decorations contract
Requesting party: City Economic Development
Outline of request: Staff seeks authorization to enter into an agreement with Christmas
Creations by Bailey to provide holiday light pole wraps in the downtown.
Background: As the BID was reduced with its latest three-year renewal, along with
marketing/promotion, streetscape items were moved to the DDA. The DDA streetscape line
item is $15,000 and the BID mainly paid for Christmas decorations. For several years, the
downtown light poles have been wrapped in red, fresh greens and where available white lights
from before Thanksgiving to after New Years. Christmas Creations by Bailey has done a great
job in providing the materials, installation and removal. This is an annual rental/service
agreement not a purchase of lights.
Staff comments: The Bailey quote is $11,305 for 85 lighted poles on Western, Second and Third
and eight non-lighted poles on Pine. That is a 15 percent increase
Staff recommendation: To accept the quote from Christmas Creations by Bailey to provide light
pole decorations for 93 fixtures.
Suggested motion: I move to authorize staff to sign an agreement with Christmas Creations by
Bailey for light pole holiday wraps and have staff negotiate the final details with the vendor.
Muskegon Downtown Development Authority
Agenda item G for 10-12-21
Event reports Taste/Lakeshore Art Festival
Requesting party:
Outline of request: Staff will update the DDA board on 2021 Taste of Muskegon and Lakeshore
Art Festival.
Background: The DDA this year has agreed to be the fiduciary for two downtown city events,
Taste of Muskegon which the city took over for the former Downtown Muskegon Now, and the
Lakeshore Art Festival which the city took over from the Muskegon Lakeshore Chamber of
Commerce. The goal is to at least break even financially with both events with any surplus
goals. The DDA also set aside a total of $15,000 in post-COVID marketing funds to support the
two events, if needed.
Staff comments: Clerk staff will give a report on Taste and along with event director Carla
Flanders on the Lakeshore Art Festival. Preliminary information on both events has been very
positive and it is not anticipated that any of the $15,000 will be needed to support Taste or
MAF. A MAF post event press release is included in your agenda packet.
Staff recommendation: None
Suggested motion: None
Muskegon Downtown Development Authority
Agenda item H for 10-12-21
Approval of a LAF management agreement
Requesting party: City Economic Development
Outline of request: Staff is for authorization to renew a management contract with CMF
Marketing & Events to produce the 2022 Lakeshore Art Festival in downtown Muskegon.
Background:
contract by th
Staff comments: The latest draft is in your agenda packet. A final draft will be provided to you
prior to the meeting.
Staff recommendation: To approve a new management agreement with CMF Marketing &
Events for the 2022 LAF.
Suggested motion: I move to approve the 2022 management agreement with CMF Marketing &
Events for the Lakeshore Art Festival and direct staff to execute it.