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CITY OF MUSKEGON
DOWNTOWN DEVELOPMENT AUTHORITY (DDA) /
BROWNFIELD REDEVELOPMENT AUTHORITY (BRA)
REGULAR MEETING
MINUTES
October 8, 2019
Chairperson M. Bottomley called the meeting to order at 10:34 AM and roll was taken.
MEMBERS PRESENT: M. Kleaveland, F. DePung, D. Pollock, M. Johnson, J. Riegler, M.
Bottomley, J. Moore, P. Edbrooke, J. Wallace Jr, B. Hastings, D. Kalisz
MEMBERS ABSENT: H. Sytsema, excused; F. Peterson, excused
STAFF PRESENT: D. Alexander, M. Franzak, Planning Director; L. Mikesell, Director of
Development Services; B. Lewis, Finance Director; D. Renkenberger,
Administrative Assistant
OTHERS PRESENT: D. Stegink, Envirologic; T. Wasserman, Core Development, Brian Bench,
Core Development; C. Brubaker-Clarke, Brownfield consultant, R.
Wilson, Fishbeck, Thompson, Carr & Huber, Inc; J. Kamp, Pigeon Hill
APPROVAL OF MINUTES
A motion to approve the regular meeting minutes of September 10, 2019 was made by J. Riegler,
supported by J. Moore and unanimously approved.
BRA BUSINESS
Brownfield Plan Amendment for 1208 8th Street – D. Alexander introduced a new project to add to the
city’s Brownfield Plan. This building was located at 1208 8th St. and owned by Core Development. The
building was formerly a car dealership but it had been vacant for some time. Core Development planned
to redevelop the building as a mixed-use commercial property and possible office space.
D. Stegink from Envirologic presented the plan amendment. T. Wasserman and B. Bench discussed
Core Realty and their plans for the property. They intended to market it to others for development, with
3 commercial units available. M. Bottomley asked what type of commercial business, and if they had
considered residential. B. Bench stated that, based on interest so far, a food-related business was likely.
While they were not opposed to residential use there, they believed that the highest and best use was
commercial. M. Johnson asked if they were using traditional financing for the project, and if they had
secured the financing yet. B. Bench stated that they had already secured traditional financing. D. Stegink
discussed the details of the plan amendment and what the funds would be used for, including reimbursing
the applicant for eligible costs, public infrastructure improvements, and rearranging the parking. He
stated that this property was also part of an Obsolete Property district, which would freeze the taxable
value for 12 years, delaying the increase in taxable value for the DDA.
J. Wallace arrived at 10:44 AM.
M. Bottomley asked which part of the adjacent parking lot was included with the subject property. D.
Stegink stated that they had the east part of the parking lot, but the parking in the plan amendment
referred to on-street parking. M. Johnson asked what the construction schedule was. T. Wasserman
stated that it had already started. D. Alexander stated that he had not heard of any concerns about the
plan from city staff or the city attorney. L. Mikesell asked D. Stegink to make sure the board was aware
of this plan’s effect on the DDA. D. Stegink stated that the building was located within the DDA district,
but the DDA would be stepping aside and foregoing collection of tax increments. D. Alexander stated
that it should be addressed in the motion. C. Brubaker-Clarke stated that it was also addressed in the
resolution. D. Stegink discussed the costs involved in the project. C. Brubaker-Clarke assisted with the
wording needed for a motion.
A motion to approve the Resolution for the revised Brownfield Plan Amendment for 1208 8th Street
(Core Development, LLC) with the understanding that the DDA will forego its collection of tax
increments, and forwarding notice to the City Commission to set a public hearing, was made by M.
Johnson, supported by J. Moore and unanimously approved with M. Kleaveland, F. DePung, D. Pollock,
M. Johnson, J. Riegler, M. Bottomley, J. Moore, P. Edbrooke, J. Wallace Jr, B. Hastings, and D. Kalisz
voting aye.
Windward Pointe Brownfield Reimbursement request – C. Brubaker-Clarke was the City’s consultant
on this project and she had reviewed the paperwork related to this 4th request for reimbursement. She
stated that Roman Wilson was present from Fishbeck, Thompson, Carr & Huber, Inc and could answer
questions about the project. R. Wilson discussed the work being done and the site and the associated
costs, and stated that they had been in discussions for development with an interested party. D.
Alexander stated that he and M. Franzak had met with an investor who intended to bring a request for a
new state program called a transformational Brownfield Plan, which was larger than a regular
Brownfield amendment and was reserved for large projects that affected more than only the local
community. This type of plan was new and required approval by the State of Michigan once the
DDA/BRA had approved it. There were no specifics on the plan yet, but D. Alexander wanted to make
sure that board members were aware of it since it was new.
A motion to approve the reimbursement request for Windward Pointe was made by J. Riegler, supported
by J. Wallace and unanimously approved, with M. Kleaveland, F. DePung, D. Pollock, M. Johnson, J.
Riegler, M. Bottomley, J. Moore, P. Edbrooke, J. Wallace Jr, B. Hastings, and D. Kalisz voting aye.
Pigeon Hill Brownfield Reimbursement request – D. Alexander introduced C. Brubaker-Clarke as the
consultant on this project. This was Pigeon Hill’s first reimbursement request, and C. Brubaker-Clarke
had prepared a memo to the board outlining the details. J. Kamp discussed Pigeon Hill’s new facility
and their future plans. C. Brubaker-Clarke stated that she had reviewed the paperwork and recommended
approved of the reimbursement request. D. Alexander asked if there were administrative costs included
in the request. C. Brubaker-Clarke stated that there were not.
A motion to approved Pigeon Hill’s reimbursement request as presented was made by B. Hastings,
supported by D. Kalisz and unanimously approved, with M. Kleaveland, F. DePung, D. Pollock, M.
Johnson, J. Riegler, M. Bottomley, J. Moore, P. Edbrooke, J. Wallace Jr, B. Hastings, and D. Kalisz
voting aye.
Sweetwater Development – 1st amendment to Development & Reimbursement (D&R) Agreement – D.
Alexander stated that Sweetwater Development’s project was a proposed mixed-use development called
The Leonard building on Western Avenue. They were asking to amend their approved D&R Agreement
to add another party to it. The request was due to Opportunity Zone funding and IRS requirements. The
party/name to be added to the agreement is Sweetwater Development Partners, LLC. A motion to add
Sweetwater Development Partners, LLC to the Development & Reimbursement Agreement as requested,
was made by J. Riegler, supported by J. Wallace Jr and unanimously approved, with M. Kleaveland, F.
DePung, D. Pollock, M. Johnson, J. Riegler, M. Bottomley, J. Moore, P. Edbrooke, J. Wallace Jr, B.
Hastings, and D. Kalisz voting aye.
DDA BUSINESS
DDA Financial report – B. Lewis updated board members on the most recent developments concerning
the DDA’s budget. She had met with City Manager F. Peterson and the City Treasurer S. Petersen and
had adjusted budget numbers based on their discussion. She informed the board that the total $1,000,000
payment to the County would be made this year and although the DDA budget would be in the red, there
was a fund balance from last year that would help offset that. B. Hastings noticed that there were no
longer funds in the budget for marketing and publication. D. Alexander stated that those items would
be paid from the BID budget this year, as would snow removal, landscaping, and Christmas decorations.
The BID would continue through December of 2020. B. Lewis stated that the City Clerk’s office was
also working on downtown events.
A motion to approve the amended budget as submitted was made by M. Johnson, supported by J. Moore
and unanimously approved, with M. Kleaveland, F. DePung, D. Pollock, M. Johnson, J. Riegler, M.
Bottomley, J. Moore, P. Edbrooke, J. Wallace Jr, B. Hastings, and D. Kalisz voting aye.
DDA Budget Update/BID Renewal discussion – D. Alexander discussed the revised budget and the BID,
and stated that he was not sure if the BID would be renewed after 2020. He stated that D. Pollock and
J. Riegler were also on the BID board and the may be able to gauge the feelings of that board regarding
another BID renewal. D. Pollock stated that the BID was originally intended to be a bride between past
income and future DDA contributions for the downtown. It had been 5 years now, and significant
changes were needed if the BID were to continue. Several property owners had had appeals granted by
the state tax tribunal and the area of the BID needed to be decreased to better reflect the areas benefitting
from its services. L. Mikesell stated that she hoped the BID board understood the DDA budget issues
and that the BID could be extended. D. Pollock stated that the BID board members would vote on it, the
tax tribunal would have an effect on it, and the City Commission would have to approve it. B. Hastings
asked how properties in the BID were assessed. D. Pollock stated that commercial properties were
assessed based on square footage. It did not include residential properties or non-profit organizations.
D. Alexander also brought up the issue of paid parking. He stated that staff anticipated that it would be
needed sooner than originally thought, as development on Foundry Square, the Convention Center, and
development on other lots currently used for parking would have an effect on downtown parking
availability. If paid parking was installed in parking lots, the city would also need to change on-street
spaces to paid parking. Staff and board members discussed the parking issues.
DDA/BID Letter of Understanding (LoU) – D. Alexander informed the board that he needed them to
approve the Letter of Understanding that was included in the meeting packet. The letter addressed DDA
and city staff support to the BID, and its finances and future. It replaced the LoU that previously existed
between Downtown Muskegon Now (DMN) and the BID.
A motion to approve the Letter of Understanding between the DDA and the Downtown Business
Improvement District (BID), was made by B. Hastings, supported by J. Wallace and unanimously
approved, with M. Kleaveland, F. DePung, D. Pollock, M. Johnson, J. Riegler, M. Bottomley, J. Moore,
P. Edbrooke, J. Wallace Jr, B. Hastings, and D. Kalisz voting aye.
DDA-DMN Merger expectations – Per M. Bottomley’s request, D. Alexander had composed a
memorandum to the DDA board reviewing the responsibilities the DDA had taken over from the merger
with DMN and updating the status of those items.
Economic Development – D. Alexander provided an update on upcoming holiday events and ongoing
development projects.
There being no further business, the meeting was adjourned at 12:00 PM.