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HomeMy WebLinkAboutLBRA MINUTES 2017-04-03 MINUTES OF THE 13th MEETING OF THE CITY OF LIVONIA BROWNFIELD REDEVELOPMENT AUTHORITY The 13th Meeting of the Brownfield Redevelopment Authority of Livonia was called to order at 5:00 p.m. on Monday, April 3, 2017, by Chairman Engebretson. MEMBERS PRESENT: Jack Engebretson, Chairman Lynda Scheel, Vice Chairman Ken Harb, Secretary Joe Taylor, Treasurer Kathleen E. McIntyre (5:02 arrival) Bill Fried (5:10 arrival) MEMBERS ABSENT: None OTHERS PRESENT: Mark Taormina, Planning & Economic Development Director Michael Slater, Director of Finance Mayor Dennis Wright Barbara Gamber, Economic Development Coordinator Karl Zarbo, Lormax Stern Development Company Trey Buffington, National Real Estate Management Andrew Lendrum, Re/Max New Trend Amanda Slater, Stephenson High School Emily Demers, Stephenson High School Margie Watson, Planning Department ROLL WAS CALLED. A quorum was present. APPROVAL OF MINUTES On a motion by Harb, seconded by Scheel, and unanimously adopted, it was: #01-2017 RESOLVED, that the Minutes of the 12th Meeting of the City of Livonia Brownfield Redevelopment Authority held December 12, 2016, are hereby approved as submitted. A roll call vote on the foregoing resolution resulted in the following: AYES: Harb, Scheel, McIntyre NAYES: None ABSENT: Fried ABSTAIN: Engebretson, Taylor Mr. Engebretson, Chairman, declared the motion is carried and the foregoing resolution adopted. Brownfield Redevelopment Authority April 3, 2017 Page 2 Engebretson: We have two tax capture increment financing checks to be issued to the two companies that have earned those credits. REVIEW OF LBRA TAX CAPTURE FOR LIVONIA MARKETPLACE AND CONSIDERATION OF TAX INCREMENT FINANCE (TIF) REIMBURSEMENT PAYMENT#6 (W-2016) FOR AUTHORIZED ELIGIBLE EXPENSES. Engebretson: Karl Zarbo is here, representing the developer. Mr. Taormina, which remarks would you like to make? Taormina: This item seeks LBRA's approval of reimbursement payment #6 to the developer of the Livonia Marketplace. This payment corresponds with the Winter 2016 tax collection period. The Taxable Value of the property has not changed from the disbursement that we made for the Summer taxes. The 2016 Total Taxable Value was $10,948,820. When we apply the taxes for capture on the real property, it is $47,823.65. Then for the personal property, it is slightly less than that, $39,519.77. It gives us a total of $87,343.42 for capture. Then 20 percent of that goes to the Resolving Fund. That total is $17,468.68 and then the balance of $69,874.74 would be available to the developer. As provided previously, we are giving you a running total of the contributions to the LSRRF as well as the total to the developer. Those numbers are in your staff analysis. Mike Slater has provided you with the breakdown of various businesses that make up Livonia Marketplace and what the taxes were billed and collected for both real and personal property. Then he goes through the calculations on the capture, subtracting out the Zoo Authority and the Art Institute. This is really the basis for the numbers that we just provided to you and for the resolution that we have prepared for your consideration. Thank you. Engebretson: Thank you. Mr. Slater. Slater: I just caught this and I apologize. The distribution is actually going to have to include another $2,116.77. That is for the collection of delinquent taxes that were made during this tax period. The specifics are the 2014 Summer and Winter Radio Shack personal property, the 2014 Summer and Winter Massage Green personal property, and the 2016 Summer personal property from 1000 Degree Pizza. The same methodology is used but the capture on that is an additional $2,116.77, for a total of$89,460.19. Brownfield Redevelopment Authority April 3, 2017 Page 3 Scheel: So that's the amount that's on this page that's here. It's just not what the . . . Slater: It's not in Mark's summary. Taormina: That's my oversight. Those numbers should be added. We can do the math quickly for the purpose of the resolution. Engebretson: Anybody else? If not, we'll go to Mr. Zarbo. Karl Zarbo, Director of Operations, Lormax Stern Development Company, 38500 Woodward Avenue, Suite 200, Bloomfield Hills, Michigan 48304. There isn't a whole lot that's changed since we were here in December. I'll give you a brief update. The Sonic is up and running and we certainly want to thank the City. It clearly is not a red brick building. I think the City really pushed their envelope and that's a brand new prototype and a new look for them and it's done fairly well. The center overall is 90 percent leased. There's only a couple small vacancies. We've got a new Tropical Smoothie tenant in about 2,000 square feet. There's a new nail salon in about 1,700 square feet, and we just turned over the old Happy's Pizza place to a new barbeque place. We turned that over last week. There's just a couple spaces to go. The end is in site and I hope the end for me in retirement is in sight. Again, we thank you as everybody pointed out. And Mike, what I think is great, and Mark, that chart that shows the flow of how the different payments have come is really, really helpful because you can really kind of anticipate where the thing is going. With that, I'll be happy to answer any questions that you have. Engebretson: Well, Karl, I just want to observe what happens to you when you retire. You end up doing stuff like that. Zarbo: Some of it I will miss. Some of it I won't. Engebretson: So are you ready to retire? Zarbo: I'm trying. It was supposed to be this coming July. They've extended it to year end. I've got a large million square foot project going in Chicago that's taking up a lot of time. So I'll probably see where that goes to determine kind of an exact date. Brownfield Redevelopment Authority April 3, 2017 Page 4 Engebretson: Are you in agreement with the numbers? Zarbo: The numbers are wonderful from Mike's detail. It's a lot easier now than it was when we first started this process. So I thank everybody for cranking those numbers out twice a year. Engebretson: This was Mike's second CPA exam. The first one he passed years ago. This is the new standard now. If there is nothing else, a motion would be in order. Taormina: Mr. Chairman, I have the new numbers here. So when the maker wants to, we can insert those revised numbers. Slater: The total is $89,460.19. It's on the back, top right. Scheel: But the $89,460, is it 20 percent goes to the LSRRF and 80 percent goes to the developer? Taormina: Yes. Engebretson: Between Mike and Mark, they'll get the resolution prepared correctly. Let the record show that Mr. Fried joined us at 5:10. Kathleen, were you going to offer the motion? On a motion by McIntyre, seconded by Scheel, and unanimously adopted, it was: #02-2017 RESOLVED, that the City of Livonia Brownfield Redevelopment Authority does hereby approve the distribution of Captured Taxes from the Livonia Marketplace Project as follows: 1. Payment #6 (W-2016) to the "Owner" of the Livonia Marketplace, Livonia Phoenix, LLC, in the amount of $71,568.16 for the reimbursement of eligible expenses related to the redevelopment of the Former Livonia Mall Site; and 2. A deposit of $17,892.03 into the Livonia Brownfield Redevelopment Authority's Local Site Remediation Revolving Fund. Mr. Engebretson, Chairman, declared the motion is carried and the foregoing resolution adopted. Brownfield Redevelopment Authority April 3, 2017 Page 5 Engebretson: The Mayor has joined us while we were in the midst of that deep discussion. Since we're in between items, Dennis, is there anything you want to add? Mayor Wright: I just want to see Seven Mile get developed with the next project coming in. REVIEW OF LBRA TAX CAPTURE FOR LIVONIA COMMONS AND CONSIDERATION OF REIMBURSEMENT PAYMENT #4 (W-2016) FOR AUTHORIZED ELIGIBLE EXPENSES Engebretson: We'll move now with a full Board to the second item on the agenda, which is a similar transaction. This will be Payment #4 for Livonia Commons. Mark, if you would please kick this one off. Taormina: This request is for TIF reimbursement Payment #4 to the developers of the Livonia Commons shopping center. The reimbursement began in the Summer of 2015, whereas the reimbursement for the previous project, Livonia Marketplace, commenced in Summer of 2014. So that's why we're looking at Payment #4. These are lower numbers. Altogether it's a smaller project. Also, we're collecting only real property in this case. The Taxable Value for 2016 on the real property improvements was $2,739,000 and the amount available for capture and disbursement is $25,846.95. Again, we give you a running total in your packet. Engebretson: Would you repeat the number please, Mark? Taormina: $25,846.95. Engebretson: Thank you. Mr. Slater, anything to add? Slater: It looks good to me. Engebretson: Trey, do you want to add anything? Trey Buffington, National Real Estate Management Corp. 9886 Manchester Road, St. Louis, Missouri 63122. No, just thank you. We're 100 percent occupied at this point. Brownfield Redevelopment Authority April 3, 2017 Page 6 Engebretson: Trey mentioned before the meeting that they were fully leased now. Buffington: Yes. Engebretson: That's good news. Karl, I know that we finished with your item, but where are you now with leases? Zarbo: We're at 90 percent. Engebretson: That's good too. Any comments from anyone on the Board? Hearing none, a motion would be in order. On a motion by Scheel, seconded by Harb, and unanimously adopted, it was: #03-2017 RESOLVED, that the City of Livonia Brownfield Redevelopment Authority does hereby approve the distribution of Captured Taxes from the Livonia Commons Project as follows: Payment #4 (W-2016) to the "Owner" of Livonia Commons, TMA-LIVCOM, L.L.C., in the amount of $25,846.95 for the reimbursement of eligible expenses Mr. Engebretson, Chairman, declared the motion is carried and the foregoing resolution adopted. Engebretson: Thank you everybody. Both of those payments have been approved. Now we come to Item #6 to take up any other business. Harb: When is Amazon opening? Wright: October, 2017. Engebretson: For those that haven't heard, Paul Condon has resigned from this Board so that he could be appointed by the Mayor to the Water & Sewer Board. He also serves on the Parks and Recreation Commission. They agreed that it was appropriate to keep it to two boards. We do have our new member that we acknowledged and welcomed earlier on during our meeting tonight. Wright: This Board meets twice a year too. Brownfield Redevelopment Authority April 3, 2017 Page 7 Andrew Lendrum: I know. That's going to be tough to work into my schedule. Taormina: Andy also serves on the Board of Review so he knows a little bit about taxes. Engebretson: Good. Wright: He gets warmed up here before he goes to the Board of Review. Taylor: For those who don't know, this is my last meeting. I've been meeting for the last 38 years on different boards. I kind of decided it was time for some younger people to take over. It's hard for me to get around. Jack was kind enough to pick me up today. I do drive, but to the drugstore or the cleaners. Other than that, Wanda, my partner, chauffeurs me around. There's about five or six doctors a week. Engebretson: Don't forget, Joe. The meter is running. I drove my wife around as her personal Uber driver for a month or so when she was recovering from a real serious illness. If there's nothing else . . . Taormina: I'd just like to thank Joe for his great service to the community. He's still on the Economic Development Corporation. You didn't know that. You're still on the EDC. We're going to have to have a meeting. Taylor: Is that right? Taormina: Yes, you are. You thought that this was the final commission, but it's not. Mclntrye: I just want to echo what Mark said. There are a handful of people in this community who are without par. I grew up here so I kind of know the history of those people and it's not just in my recent experiences as an official of the City. But you're one of that very small group that there's no par. Your contributions would be impossible to measure. You will be missed. The 13th Meeting held by the City of Livonia Brownfield Redevelopment Authority on April 3, 2017, was adjourned at 5:16 p.m. Brownfield Redevelopment Authority April 3, 2017 Page 8 Ken Harb, Secretary MINUTES OF THE 13th MEETING OF THE CITY OF LIVONIA BROWNFIELD REDEVELOPMENT AUTHORITY The 13th Meeting of the Brownfield Redevelopment Authority of Livonia was called to order at 5:00 p.m. on Monday, April 3, 2017, by Chairman Engebretson. MEMBERS PRESENT: Jack Engebretson, Chairman Lynda Scheel, Vice Chairman Ken Harb, Secretary Joe Taylor, Treasurer Kathleen E. McIntyre (5:02 arrival) Bill Fried (5:10 arrival) MEMBERS ABSENT: None OTHERS PRESENT: Mark Taormina, Planning & Economic Development Director Michael Slater, Director of Finance Mayor Dennis Wright Barbara Gamber, Economic Development Coordinator Karl Zarbo, Lormax Stern Development Company Trey Buffington, National Real Estate Management Andrew Lendrum, Re/Max New Trend Amanda Slater, Stephenson High School Emily Demers, Stephenson High School Margie Watson, Planning Department ROLL WAS CALLED. A quorum was present. APPROVAL OF MINUTES On a motion by Harb, seconded by Scheel, and unanimously adopted, it was: #01-2017 RESOLVED, that the Minutes of the 12th Meeting of the City of Livonia Brownfield Redevelopment Authority held December 12, 2016, are hereby approved as submitted. A roll call vote on the foregoing resolution resulted in the following: AYES: Harb, Scheel, McIntyre NAYES: None ABSENT: Fried ABSTAIN: Engebretson, Taylor Mr. Engebretson, Chairman, declared the motion is carried and the foregoing resolution adopted. Brownfield Redevelopment Authority April 3, 2017 Page 2 Engebretson: We have two tax capture increment financing checks to be issued to the two companies that have earned those credits. REVIEW OF LBRA TAX CAPTURE FOR LIVONIA MARKETPLACE AND CONSIDERATION OF TAX INCREMENT FINANCE (TIF) REIMBURSEMENT PAYMENT #6 (W-2016) FOR AUTHORIZED ELIGIBLE EXPENSES. Engebretson: Karl Zarbo is here, representing the developer. Mr. Taormina, which remarks would you like to make? Taormina: This item seeks LBRA's approval of reimbursement payment #6 to the developer of the Livonia Marketplace. This payment corresponds with the Winter 2016 tax collection period. The Taxable Value of the property has not changed from the disbursement that we made for the Summer taxes. The 2016 Total Taxable Value was $10,948,820. When we apply the taxes for capture on the real property, it is $47,823.65. Then for the personal property, it is slightly less than that, $39,519.77. It gives us a total of $87,343.42 for capture. Then 20 percent of that goes to the Resolving Fund. That total is $17,468.68 and then the balance of $69,874.74 would be available to the developer. As provided previously, we are giving you a running total of the contributions to the LSRRF as well as the total to the developer. Those numbers are in your staff analysis. Mike Slater has provided you with the breakdown of various businesses that make up Livonia Marketplace and what the taxes were billed and collected for both real and personal property. Then he goes through the calculations on the capture, subtracting out the Zoo Authority and the Art Institute. This is really the basis for the numbers that we just provided to you and for the resolution that we have prepared for your consideration. Thank you. Engebretson: Thank you. Mr. Slater. Slater: I just caught this and I apologize. The distribution is actually going to have to include another $2,116.77. That is for the collection of delinquent taxes that were made during this tax period. The specifics are the 2014 Summer and Winter Radio Shack personal property, the 2014 Summer and Winter Massage Green personal property, and the 2016 Summer personal property from 1000 Degree Pizza. The same methodology is used but the capture on that is an additional $2,116.77, for a total of$89,460.19. Brownfield Redevelopment Authority April 3, 2017 Page 3 Scheel: So that's the amount that's on this page that's here. It's just not what the . . . Slater: It's not in Mark's summary. Taormina: That's my oversight. Those numbers should be added. We can do the math quickly for the purpose of the resolution. Engebretson: Anybody else? If not, we'll go to Mr. Zarbo. Karl Zarbo, Director of Operations, Lormax Stern Development Company, 38500 Woodward Avenue, Suite 200, Bloomfield Hills, Michigan 48304. There isn't a whole lot that's changed since we were here in December. I'll give you a brief update. The Sonic is up and running and we certainly want to thank the City. It clearly is not a red brick building. I think the City really pushed their envelope and that's a brand new prototype and a new look for them and it's done fairly well. The center overall is 90 percent leased. There's only a couple small vacancies. We've got a new Tropical Smoothie tenant in about 2,000 square feet. There's a new nail salon in about 1,700 square feet, and we just turned over the old Happy's Pizza place to a new barbeque place. We turned that over last week. There's just a couple spaces to go. The end is in site and I hope the end for me in retirement is in sight. Again, we thank you as everybody pointed out. And Mike, what I think is great, and Mark, that chart that shows the flow of how the different payments have come is really, really helpful because you can really kind of anticipate where the thing is going. With that, I'll be happy to answer any questions that you have. Engebretson: Well, Karl, I just want to observe what happens to you when you retire. You end up doing stuff like that. Zarbo: Some of it I will miss. Some of it I won't. Engebretson: So are you ready to retire? Zarbo: I'm trying. It was supposed to be this coming July. They've extended it to year end. I've got a large million square foot project going in Chicago that's taking up a lot of time. So I'll probably see where that goes to determine kind of an exact date. Brownfield Redevelopment Authority April 3, 2017 Page 4 Engebretson: Are you in agreement with the numbers? Zarbo: The numbers are wonderful from Mike's detail. It's a lot easier now than it was when we first started this process. So I thank everybody for cranking those numbers out twice a year. Engebretson: This was Mike's second CPA exam. The first one he passed years ago. This is the new standard now. If there is nothing else, a motion would be in order. Taormina: Mr. Chairman, I have the new numbers here. So when the maker wants to, we can insert those revised numbers. Slater: The total is $89,460.19. It's on the back, top right. Scheel: But the $89,460, is it 20 percent goes to the LSRRF and 80 percent goes to the developer? Taormina: Yes. Engebretson: Between Mike and Mark, they'll get the resolution prepared correctly. Let the record show that Mr. Fried joined us at 5:10. Kathleen, were you going to offer the motion? On a motion by McIntyre, seconded by Scheel, and unanimously adopted, it was: #02-2017 RESOLVED, that the City of Livonia Brownfield Redevelopment Authority does hereby approve the distribution of Captured Taxes from the Livonia Marketplace Project as follows: 1. Payment #6 (W-2016) to the "Owner" of the Livonia Marketplace, Livonia Phoenix, LLC, in the amount of $71,568.16 for the reimbursement of eligible expenses related to the redevelopment of the Former Livonia Mall Site; and 2. A deposit of $17,892.03 into the Livonia Brownfield Redevelopment Authority's Local Site Remediation Revolving Fund. Mr. Engebretson, Chairman, declared the motion is carried and the foregoing resolution adopted. Brownfield Redevelopment Authority April 3, 2017 Page 5 Engebretson: The Mayor has joined us while we were in the midst of that deep discussion. Since we're in between items, Dennis, is there anything you want to add? Mayor Wright: I just want to see Seven Mile get developed with the next project coming in. REVIEW OF LBRA TAX CAPTURE FOR LIVONIA COMMONS AND CONSIDERATION OF REIMBURSEMENT PAYMENT #4 (W-2016) FOR AUTHORIZED ELIGIBLE EXPENSES Engebretson: We'll move now with a full Board to the second item on the agenda, which is a similar transaction. This will be Payment #4 for Livonia Commons. Mark, if you would please kick this one off. Taormina: This request is for TIF reimbursement Payment #4 to the developers of the Livonia Commons shopping center. The reimbursement began in the Summer of 2015, whereas the reimbursement for the previous project, Livonia Marketplace, commenced in Summer of 2014. So that's why we're looking at Payment #4. These are lower numbers. Altogether it's a smaller project. Also, we're collecting only real property in this case. The Taxable Value for 2016 on the real property improvements was $2,739,000 and the amount available for capture and disbursement is $25,846.95. Again, we give you a running total in your packet. Engebretson: Would you repeat the number please, Mark? Taormina: $25,846.95. Engebretson: Thank you. Mr. Slater, anything to add? Slater: It looks good to me. Engebretson: Trey, do you want to add anything? Trey Buffington, National Real Estate Management Corp. 9886 Manchester Road, St. Louis, Missouri 63122. No, just thank you. We're 100 percent occupied at this point. Brownfield Redevelopment Authority April 3, 2017 Page 6 Engebretson: Trey mentioned before the meeting that they were fully leased now. Buffington: Yes. Engebretson: That's good news. Karl, I know that we finished with your item, but where are you now with leases? Zarbo: We're at 90 percent. Engebretson: That's good too. Any comments from anyone on the Board? Hearing none, a motion would be in order. On a motion by Scheel, seconded by Harb, and unanimously adopted, it was: #03-2017 RESOLVED, that the City of Livonia Brownfield Redevelopment Authority does hereby approve the distribution of Captured Taxes from the Livonia Commons Project as follows: Payment #4 (W-2016) to the "Owner" of Livonia Commons, TMA-LIVCOM, L.L.C., in the amount of $25,846.95 for the reimbursement of eligible expenses Mr. Engebretson, Chairman, declared the motion is carried and the foregoing resolution adopted. Engebretson: Thank you everybody. Both of those payments have been approved. Now we come to Item #6 to take up any other business. Harb: When is Amazon opening? Wright: October, 2017. Engebretson: For those that haven't heard, Paul Condon has resigned from this Board so that he could be appointed by the Mayor to the Water & Sewer Board. He also serves on the Parks and Recreation Commission. They agreed that it was appropriate to keep it to two boards. We do have our new member that we acknowledged and welcomed earlier on during our meeting tonight. Wright: This Board meets twice a year too. Brownfield Redevelopment Authority April 3, 2017 Page 7 Andrew Lendrum: I know. That's going to be tough to work into my schedule. Taormina: Andy also serves on the Board of Review so he knows a little bit about taxes. Engebretson: Good. Wright: He gets warmed up here before he goes to the Board of Review. Taylor: For those who don't know, this is my last meeting. I've been meeting for the last 38 years on different boards. I kind of decided it was time for some younger people to take over. It's hard for me to get around. Jack was kind enough to pick me up today. I do drive, but to the drugstore or the cleaners. Other than that, Wanda, my partner, chauffeurs me around. There's about five or six doctors a week. Engebretson: Don't forget, Joe. The meter is running. I drove my wife around as her personal Uber driver for a month or so when she was recovering from a real serious illness. If there's nothing else . . . Taormina: I'd just like to thank Joe for his great service to the community. He's still on the Economic Development Corporation. You didn't know that. You're still on the EDC. We're going to have to have a meeting. Taylor: Is that right? Taormina: Yes, you are. You thought that this was the final commission, but it's not. Mclntrye: I just want to echo what Mark said. There are a handful of people in this community who are without par. I grew up here so I kind of know the history of those people and it's not just in my recent experiences as an official of the City. But you're one of that very small group that there's no par. Your contributions would be impossible to measure. You will be missed. The 13th Meeting held by the City of Livonia Brownfield Redevelopment Authority on April 3, 2017, was adjourned at 5:16 p.m. 4/(/' Ken Harb, Secretary