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CITY OF MUSKEGON
LOCAL DEVELOPMENT FINANCE AUTHORITY
REGULAR MEETING
MINUTES
April 22, 2002
D. Seifert called the meeting to order at 12:00 p.m. and roll was taken.
MEMBERS PRESENT: C. Larson, R. Kersman, P. Roy Jr., D. Seifert, M. Balzic, R. Long,
D. Witte, F. Redmond, J. Hayner
MEMBERS ABSENT: V. Zukiewicz; D. Woodward; J. Bodrie, excused; J. Derbin,
excused
STAFF PRESENT: B. Mazade, C. Brubaker-Clarke, J. Fitzpatrick, T. Paul, H. Griffith
OTHERS PRESENT: None
Approval of Minutes
A motion to approve the minutes of the regular meeting of March 25, 2002 was made by C.
Larson, supported by R. Kersman and unanimously approved.
New Business
Election of Officers-D. Seifert stated that he had asked R. Kersman to replace him as chair, R.
Kersman declined the offer. D. Seifert will remain the Chairperson.
Seaway Industrial Park LDFA Development and Tax Increment Financing Plan-B. Mazade
described the boundaries. We would be able to capture the taxes through an LDFA. The EDA
will assist with development and infrastructure ($636,000). D. Seifert inquired about the status
of Gruders purchasing the property and developing it. B. Mazade stated that Gruders might
purchase the west portion along the railroad tracks and build one building there. The City will be
continuing with the LDFA and EDA Plan as there are benefits by doing this. J. Fitzpatrick
provided a Resolution for the LDFA to approve for the plan. P. Roy inquired about capturing
taxes and what happens if the monies that are captured are not needed for the project. B. Mazade
stated that the capturing of the taxes is limited. The only ones that can be captured for this
project are the City, County, MCC, and Hackley Public Library. T. Paul stated that once the
project is complete and there is no need to capture any taxes, then anything that is left over
would be distributed evenly to each taxing jurisdiction. The City can no longer pick and choose
which taxing jurisdiction will get money or how much since Proposal A was passed. P. Roy
inquired what would happen with the resolution, if passed, should there be any changes or excess
revenue. B. Mazade stated that there would be an amendment made to the resolution. F.
Redmond inquired how often the LDFA would be meeting. B. Mazade stated that it would be
more often. The LDFA will meet more frequently particularly in regards to the SmartZone
LDFA. The LDFA will also have to approve a budget and expenditures every year. F. Redmond
inquired what happens when we reach the year 2017 in reference to the capturing of the taxes.
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C. Brubaker-Clarke stated that the taxing would go back to normal unless this project is
completed early.
A motion to approve the request for a resolution for the Seaway Industrial Park LDFA
Development and Tax Increment Financing Plan was made by F. Redmond, supported by R.
Kersman and unanimously approved.
A motion to have the Chairperson sign resolutions in place of the Secretary, as there currently is
not a secretary, was made by P. Roy, supported by J. Hayner and unanimously approved.
SmartZone LDFA Development and Tax Increment Financing Plan-J. Fitzpatrick provided the
SmartZone LDFA Resolution. C. Brubaker-Clarke stated that the plan contemplates a $6 million
bond. The bond funds will be used for the GVSU high-tech building and adjacent parking. In
addition, a total of $50,000 will be used for marketing of the zone. Any remaining funds will be
used for operation and maintenance, of the building. R. Long inquired if there is a contract with
GVSU. C. Brubaker-Clarke stated that there is an agreement. GVSU will be paying the biggest
majority of the operation and maintenance expenses. It is necessary to start off with construction
of this building, as more construction on the adjoining properties will follow. P. Roy inquired
about the benefit that having a university at the site would have to the City and the project. C.
Brubaker-Clarke stated that we are known for manufacturing and would like to get into
alternative energy. The feeling is that once this gets underway, others will also want to locate
there. The City can also qualify for more grants by having a university taking part in the project.
D. Seifert inquired if this would be a problem for ISD since he is aware that they are also
planning a technological center. J. Hayner stated that the ISD is planning to put a technological
center at MCC for 11th and 12th grades. D. Seifert stated that, as a representative of MCC, they
are not opposed to this project. D. Seifert inquired about the principals for Lakefront LLC. C.
Brubaker-Clarke and B. Mazade stated that they are some of the attorneys from Parmentor
O’Toole, such as Chris Kelly and John Schrier. Since they are the City Attorneys, the City is
contracting with Fred Culver, an attorney with Culver Sheridan Evens & Franks, for this project.
C. Brubaker-Clarke that Lakefront LLC is close to finalizing the purchase agreement for the
Teledyne property. They are finishing with the environmental testing first. D. Seifert inquired if
there would be any problems with the having this State Certified. C. Brubaker-Clarke stated that
the SmartZone agreement between the City, LDFA, GVSU, and MEDC would be going before
the City Commission for approval on April 23rd. GVSU has made a verbal approval of the
agreement already. Once all parties approve this, the State will sign and we will have State
Certification. J. Hayner inquired if there should be a representative of the Hackley Public
Library involved with the LDFA since they are now a separate taxing entity and some projects
may affect them when the taxes are captured. B. Mazade stated that this would be looked into
through the City Attorney. F. Redmond inquired if there would be a break-wall built since this is
in a flood plain. C. Brubaker stated that it would be. F. Redmond inquired about the mall in
relation to the SmartZone since they are next to each other. B. Mazade stated that they are
separate and that the mall is not part of the LDFA.
A motion to approve the request for a resolution for the SmartZone LDFA Development and Tax
Increment Financing Plan was made by F. Redmond, supported by R. Kersman and unanimously
approved.
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SmartZone Agreement-B. Mazade stated that they would need to determine the expenditures and
the use of funds in the future.
A motion to approve the request for the SmartZone Agreement Ratification provided City staff
finds no problems with the wording of it the Chairperson or the Secretary will sign it, was made
by P. Roy, supported by J. Hayner and unanimously approved.
A motion to elect F. Redmond as the secretary for the LDFA was made by R. Kersman,
supported by R. Long and unanimously approved.
Chief Administrative Officer-T. Paul stated that a Chief Administrative Officer is needed to file
a Qualifying Statement. The DDA appointed the City Manager to fill out their statement.
A motion to have the City Manager file a Qualifying Statement on behalf of the LDFA was made
by P. Roy, supported by J. Hayner and unanimously approved.
Adjourn
There being no further business, the meeting was adjourned at 1:10 p.m.
hmg
4/22/02
I hereby certify that the foregoing constitutes a true and complete copy of the regular meeting
minutes of April 22, 2002 for the LDFA, County of Muskegon, Michigan.
________________________________
Hope Griffith, Administrative Secretary
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