Downtown Development Authority Minutes 11-07-2013

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                               CITY OF MUSKEGON
                                SPECIAL MEETING

                                          November 7, 2013

Chairman S. Vaughan called the meeting to order at 11:33 p.m. and roll was taken.

MEMBERS PRESENT:              Paul Edbrooke, Ken Kraus, Martha Bottomley, Frank Peterson, Mike
                              Kleaveland, Tim Taylor, Steve Vaughan, Mike Johnson

MEMBERS ABSENT:               Excused: Gene Fethke, Roger Brink, Dan Rinsema-Sybenga

STAFF PRESENT:                Cathy Brubaker-Clarke, Beth Lewis, Derrick Smith, Diane Renkenberger

OTHERS PRESENT:               R. Cornell, Community Foundation for Muskegon County; D. Stegink,


A motion that the minutes of the special meeting of June 26, 2013 be approved, was made by M.
Bottomley, supported by P. Edbrooke and unanimously approved.


Land Transfer Agreement – Downtown Muskegon Development Corporation (DMDC) lots. The
DMDC submitted a proposal to the BRA to transfer ownership of several DMDC lots located in the
downtown area, to the BRA. R. Cornell, representing the DMDC, explained the reason for the request.
He stated that Renaissance Zone tax benefits were disappearing, and the properties would start
incurring property taxes. The DMDC had limited cash reserves, and needed to use those funds for
association dues, lot maintenance and marketing. The DMDC would still maintain the lots. Marketing
would be a joint effort between the DMDC and the City of Muskegon.

M. Kleaveland asked who would maintain liability insurance. R. Cornell stated that the DMDC would.
M. Johnson asked if anyone saw a downside to the proposal. F. Peterson stated that there was a
potential loss of tax revenue, but the end goal was redevelopment of the lots. It would be more
beneficial to the City if the City owned the lots, with the DMDC taking responsibility for maintenance,
insurance, etc., rather than the County Land Bank. M. Kleaveland asked if there was any due diligence
the BRA needed to do. R. Cornell stated that the City would have 30 days to do any inspections. M.
Bottomley asked who would set the sale price of the lots. R. Cornell stated that the lots had set asking
prices. C. Brubaker-Clarke and F. Peterson stated that the City could negotiate prices with the DMDC
if necessary.

A motion to approve the Land Transfer Agreement as proposed was made by F. Peterson, supported by
M. Bottomley and unanimously approved.

U.S. Environmental Protection Agency (USEPA) Grant – D. Stegink discussed the EPA grant process
and described the types of things for which the grant could be used. He proposed that the BRA apply
for an EPA grant for site assessments. M. Johnson asked if specific properties had to be named at the
time the application was filed. D. Stegink stated that the grant was a community-wide assessment
grant; however, the EPA preferred to see properties that were ready now, with a focused plan. C.
Brubaker-Clarke stated that the grant could be used now for the downtown properties. S. Vaughan
asked what the grant amount would be. D. Stegink stated that the grants were for $200,000 each, and
the BRA could apply for two. M. Kleaveland asked if grant funds could be used for clean-up, or
assessment only. D. Stegink stated that it was for assessment only. S. Vaughan asked if there were
any costs to the BRA. D. Stegink stated that Envirologic would write the grant at no cost. C.
Brubaker-Clarke asked what the BRA’s responsibilities were at this point. D. Stegink stated that there
was nothing the BRA needed to do at this time.

A motion to have the Brownfield Redevelopment Authority (BRA) apply for the USEPA site
assessment grants was made by P. Edbrooke, supported by M. Johnson and unanimously approved.



There being no further business, the meeting was adjourned at 12:20 p.m.

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