Approved Agreements and Contracts 2026/05/12 Brownfield Plan Amendment Encore at Harbor Theatre

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                                 n/m MUSKEGON
                          Agenda Item Review Form
                         Muskegon City Commission

Commission Meeting Date: May 12, 2026                Title: Brownfield Plan Amendment - Encore at
                                                     Harbor Theatre, Lakeside Development
                                                     Properties, LLC


Submitted by: Jocelyn Hines, Development             Department: Economic Development
Analyst


Brief Summary:
Lakeside Development Properties, LLC is requesting approval of a Brownfield Plan Amendment.

Detailed Summary & Background:
Lakeside Development Properties, LLC is requesting approval of a Brownfield Plan Amendment The
Brownfield Redevelopment Authority (BRA) approved the original Brownfield Plan on April 14, 2026.

The proposed amendment will facilitate the redevelopment of the former Harbor Theatre site located
at 1937 Lakeshore Drive through the use of Tax Increment Financing (TIF) to reimburse the developer
for eligible environmental and site redevelopment activities. The project will support the creation of
new residential units and commercial space.


The former Harbor Theatre, now referred to as the Encore, has remained vacant and blighted for an
extended period. The redevelopment will consist of a three-story, 1 1-unit mixed-use building, with the
lower level designated for commercial space and parking. The residential component will include
three one-bedroom units, seven two-bedroom units, and one three-bedroom unit. The total
estimated project investment is $3,750,000.

The Brownfield Plan Amendment includes the following eligible activities and costs: infrastructure and
safety improvements necessary to support housing ($525,000); demolition ($165,000); Brownfield Plan
Amendment preparation ($20,000); Brownfield Plan Amendment implementation ($10,000);
contingency ($103,500); Authority administrative costs ($62,314); and Local Brownfield Revolving Fund
(LBRF) capture ($360,460).

The reimbursement period is anticipated to extend through 2052, with the collection of TIF revenues
beginning in 2027. The LBRF is projected to begin capturing revenue in 2049. The duration of the
reimbursement period may be adjusted pending approval of a Neighborhood Enterprise Zone (NEZ)
or Obsolete Property Rehabilitation Act (OPRA) certificate.

According to the City of Muskegon Housing Needs Assessment, there is a demonstrated need for 413
moderate-income for-sale homes and 322 high-income for-sale homes. This project contributes
toward addressing those identified housing needs.
Goal/Action Item:
2027 Goal 2: Economic Development Housing and Business


Is this a repeat item?:
Explain what change has been made to justify bringing it back to Commission:



Amount Requested:                                 Budgeted Item:

$823,500                                           Yes           No            N/A    X

Fund(s) or Account(s):                            Budget Amendment Needed:

N/A                                                Yes           No            N/A    X

Recommended Motion:
| move to close the public hearing and approve the attached resolution and authorize the Mayor
and City Clerk to sign.

Approvals:                                        Name the Policy/Ordinance Followed:
Immediate Division        X                       Act 381, Public Acts of Michigan, 1996, as
Head                                              amended


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                                           2026-32(D)


           RESOLUTION APPROVING THE BROWNFIELD PLAN AMENDMENT

               Lakeside Development Properties, LLC (1937 Lakeshore Dr.)

                                  (Encore at Harbor Theatre)

                                       City of Muskegon


                                County of Muskegon, Michigan




       Minutes of a Regular Meeting of the City Commission of the City of Muskegon, County of
Muskegon, Michigan (the “City”), held in the City Commission Chambers on the 12th day of
May, 2026 at 5:30 p.m., prevailing Eastern Time.

PRESENT: Johnson, Kilgo, German, Kochin and St.Clair

ABSENT: Keener and Jackson


       The following preamble and resolution were offered by Commissioner St.Clair and
supported by Commissioner German.

       WHEREAS, in accordance with the provisions of Act 381, Public Acts of Michigan, 1996,
as amended (“Act 381”), the City of Muskegon Brownfield Redevelopment Authority (the
“Authority”) has prepared and approved a Brownfield Plan Amendment to Lakeside
Development Properties, LLC, 1937 Lakeshore Dr.; and

       WHEREAS, the Authority has forwarded the Brownfield Plan Amendment to the City
Commission requesting its approval of the Brownfield Plan Amendment, and

       WHEREAS, the City Commission has provided notice and a reasonable opportunity to
the taxing jurisdictions levying taxes subject to capture to express their views and
recommendations regarding the Brownfield Plan Amendment, as required by Act 381; and

       WHEREAS, not less than 10 days has passed since the City Commission provided
notice of the proposed Brownfield Plan to the taxing units; and

       WHEREAS, the City Commission held a public hearing on the proposed Brownfield Plan
on May 12, 2026.


        NOW, THEREFORE, BE IT RESOLVED THAT:
      1.    That the Brownfield Plan constitutes a public purpose under Act 381.

      2.    That the Brownfield Plan meets all the requirements of Section 13(1) of Act 381.
      3. That the proposed method of financing the costs of the eligible activities, as identified
            in the Brownfield Plan and defined in Act 381, is feasible and the Authority has the
            authority to arrange the financing.

      4.    That the costs of the eligible activities proposed in the Brownfield Plan are
            reasonable and necessary to carry out the purposes of Act 381.

       5. That the amount of captured taxable value estimated to result from the adoption of
            the Brownfield Plan is reasonable.

       6.   That the Brownfield Plan in the form presented is approved and is effective
            immediately.

       7. That all resolutions or parts of resolutions in conflict herewith shall be and the same
            are hereby rescinded.


       Be it Further Resolved that the Mayor and City Clerk are hereby authorized to execute

all documents necessary or appropriate to implement the provisions of the Brownfield Plan.




       AYES: Kochin, St.Clair, Johnson, Kilgo, and German

       NAYS: None


       RESOLUTION DECLARED APPROVED.



                                                             Tom Uhre
                                                            Ken Johnson, Mayor




                                                        Qa we k
                                                            Ann Marie Meisch, City Clerk|
       | hereby certify that the foregoing is a true and complete copy of a resolution adopted by

the City Commission of the City of Muskegon, County of Muskegon, State of Michigan, at a

regular meeting held on May 12, 2026 and that said meeting was conducted and public notice of

said meeting was given pursuant to and in full compliance with the Open Meetings Act, being

Act 267, Public Acts of Michigan, 1976, as amended, and that the minutes of said meeting were

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




                                                      Qa eon Due
                                                          Ann Marie Meisch, City Clerk

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