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CITY OF MUSKEGON
LOCAL DEVELOPMENT FINANCE AUTHORITY
REGULAR MEETING
MINUTES
August 27, 2002
D. Seifert called the meeting to order at 12:05 p.m. and roll was taken.
MEMBERS PRESENT: C. Larson, P. Roy Jr., D. Seifert, R. Long, D. Witte, J. Kolkema-
Shafer, J. Hayner, J. Derbin
MEMBERS ABSENT: D. Woodward, excused; J. Bodrie, excused; R. Kersman, excused;
M. Balzic, V, Zukiewicz
STAFF PRESENT: B. Mazade, C. Brubaker-Clarke, J. Fitzpatrick, H. Griffith, T. Paul
OTHERS PRESENT: F. Culver, Attorney; W. Meier, Lakefront Development LLC.; D.
Alexander, Muskegon Chronicle.
Approval of the Minutes
A motion to approve the minutes of the regular meeting of April 22, 2002 was made by C.
Larson, supported by P. Roy Jr. and unanimously approved.
New Business
Authorize the Issuance of Bonds for the SmartZone Center of Excellence. – B. Mazade stated
that the City has been working with Grand Valley’s deadlines. Grand Valley has asked us to
wait a couple of weeks. Grand Valley has a deadline to use the grant they were given by
February 28, 2003. T. Paul stated that the amount from the bonds that would be used for the
actual construction of the building would be $3.8 million. Once the LDFA approves the bonds,
it would then go before the City Commission for the City’s full faith and credit of the bonds. C.
Brubaker-Clarke added that hopefully everything would be ready to make the September 10th
City Commission meeting.
Property Transfer Agreement for SmartZone Center of Excellence from Lakefront Development
LLC to LDFA. – C. Brubaker-Clarke stated that the Lakefront Development LLC would be
giving a portion of the property to the City for roads and utilities. The Grand Valley site would
go to the LDFA. W. Meier stated that the lot lines have been changed. He displayed an updated
version of the property showing the new property lines. Grand Valley needed a bigger lot for
their building. The building would be off-center on the site. J. Derbin inquired as to which other
lot Grand Valley has stated they may also need. W. Meier stated that it was lot “E” which is
connected to a portion of the Grand Valley building site. Grand Valley would need a lot that is
15,000-sq. ft. for the fuel cell. D. Alexander inquired about the plans for lots “F” and “G”. W.
Meier stated there has been discussion of commercial/retail for them. The lots were offered to
Grand Valley for the fuel cell. Since there will be a road going between the Grand Valley site
and these lots, Grand Valley decided against having the fuel cell across the street. C. Brubaker-
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Clarke stated that the fuel cell would be coming from Germany. It should be in the U.S. in
November and Grand Valley should have it on their site in April.
C. Brubaker-Clarke stated that once everything is completed, there may be numerous closings
happening all at once.
Approve the Lease Agreement with GVSU/LDFA for the Center of Excellence Building. – F.
Culver stated that all parties are pretty much in agreement, and this should be completed soon.
Approve the Workstage Contract for the Construction of the Center of Excellence Building. – C.
Brubaker-Clarke stated that there is a Workstage building in Grand Rapids. She has toured the
building. The building will be “green”, meaning that it will use the most advanced forms of
alternative energy throughout the facility. This includes energy efficient systems, solar panels
and fuel cell generation.
Financing Between the LDFA and Grand Valley. – T. Paul stated that the contract amount is
$4.6 million. The LDFA would be paying $3.8 million through the bonds. Grand Valley has
committed to $600,000. The City is looking for a way to pay the difference. D. Seifert asked for
clarification regarding the leasing the building to Grand Valley. He understood it to be the
LDFA would lease the building to Grand Valley for a certain number of years, after which, the
building would revert to Grand Valley. B. Mazade stated that this would occur once the bonds
were paid off. J. Hayner inquired about the lease. C. Brubaker-Clarke stated that Grand Valley
would be leasing the building for $1 per year. They would also cover operation and maintenance
costs. B. Mazade added that the agreement would be that anything maintenance costs to the
building, over a certain amount, would be covered by the LDFA. P. Roy Jr. inquired if there
were no funds captured to pay the bonds, would the City pay then. T. Paul stated yes. D.
Alexander inquired about the life of the bonds. T. Paul stated that the life of the bonds were until
2025. B. Mazade stated that the City is seeking participation with other groups. The
Community Foundation will share the costs up to $75,000 per year starting in three years and
will go up to ten years. P. Roy jr. he understands the LDFA bonds would cover the building. He
inquired about the funds for the cost of the infrastructure. C. Brubaker-Clarke stated that there is
a grant for the infrastructure. B. Mazade added that the infrastructure would be paid through a
CMI grant and through a special assessment to the developer.
The Next LDFA Meeting. – B. Mazade stated that once all the documents are in, there would be
another LDFA meeting. C. Brubaker-Clarke asked everyone if they could attend a meeting on
September 10 at noon. The members agreed the date and time would be good for them.
Old Business
None.
Adjourn
There being no further business, the meeting was adjourned at 12:38 p.m.
hmg
8/27/02
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