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HomeMy WebLinkAboutLBRA MINUTES 2017-09-06 MINUTES OF THE 14th MEETING OF THE CITY OF LIVONIA BROWNFIELD REDEVELOPMENT AUTHORITY The 14th Meeting of the Brownfield Redevelopment Authority of Livonia was called to order at 5:00 p.m. on Monday, September 6, 2017, by Chairman Engebretson. MEMBERS PRESENT: Jack Engebretson, Chairman Lynda Scheel, Vice Chairman Ken Harb, Secretary Andrew Lendrum Bill Fried MEMBERS ABSENT: Heather Douglas, Kathleen E. McIntyre OTHERS PRESENT: Mark Taormina, Planning & Economic Development Director Michael Slater, Director of Finance Mayor Dennis Wright Barbara Gamber, Economic Development Coordinator Jared Belka, Warner, Norcross & Judd, L.L.P. Karl Zarbo, Lormax Stern Development Company ROLL WAS CALLED. A quorum was present. WELCOMING REMARKS. We want to welcome Andy Lendrum, who was with us last time, but we welcome you once again. APPROVAL OF MINUTES On a motion by Harb, seconded by Scheel, and unanimously adopted, it was: #04-2017 RESOLVED, that the Minutes of the 12th Meeting of the City of Livonia Brownfield Redevelopment Authority held April 3, 2017, are hereby approved as submitted. Mr. Engebretson, Chairman, declared the motion is carried and the foregoing resolution adopted. Brownfield Redevelopment Authority September 6, 2017 Page 2 CONSIDERATION OF A REQUEST BY JARED BELKA OF WARNER, NORCROSS & JUDD LLP, ON BEHALF OF LIVONIA MARKET II LLC, TO APPROVE THE BROWNFIELD PLAN AND DEVELOPMENT AND REIMBURSEMENT AGREEMENT FOR LIVONIA MARKET II AT 29601, 29659 AND 29701 SEVEN MILE ROAD (FORMER FARMER JACK SUPERMARKET PROPERTY) LOCATED ON THE SOUTH SIDE OF SEVEN MILE ROAD BETWEEN MIDDLEBELT ROAD AND MELVIN AVENUE IN THE NE 1/4 OF SECTION 11. Engebretson: Mr. Taormina, at this time we will turn to you. Taormina: Thank you. I'm going to go through each of the main components to this proposal starting with the Site Plan. This is a request for Brownfield financing involving the former Farmer Jack site, which is located on the south side of Seven Mile Road just west of Middlebelt Road. The name of the project is Livonia Market II. Demolition is currently underway on the approximate 110,000 square foot building that was originally constructed in 1995 as a Builders Square and then later converted to a Farmer Jack. In 2007, A&P closed its chain of Farmer Jack stores, and the building has remained empty ever since. The site now consists of three parcels with a total combined land area of 9.95 acres, including approximately 705 feet of frontage along Seven Mile Road. The zoning is all C-2, General Business. On April 10, 2017, City Council granted approval of the site plan and waiver use for three new commercial buildings that include a 37,000- square foot LA Fitness and two smaller multi-tenant retail buildings identified as "Outlot A" and "Outlet B." LA Fitness will occupy the southwest part of the property. Initially, Outlot A was projected to be a single use, full-service restaurant of about 10,000 square feet. Recently, however, Outlot A was downsized to approximately 5,900 square feet and is planned as a multi- tenant building that will include two leasable units: 1) a 3,750- square foot urgent care clinic called MedPost, and 2) a 2,148- square foot drive-thru restaurant. A site plan and waiver use application is currently before the Planning Commission for review. Outlot B, which measures 8,060 square feet, located in the northwest corner the property, is designed to have up to five tenants. As part of the redevelopment, the site's parking and circulation pattern will be completely reconfigured. Two of the three existing driveways will remain. There is a signalized intersection near the central portion of the frontage on Seven Mile Road, and the easterly driveway will also remain available. Parking will be provided for 522 vehicles. This is substantially Brownfield Redevelopment Authority September 6, 2017 Page 3 more than what is needed to satisfy the zoning ordinance. Storm water will be managed by means of a large open detention system that will be constructed in the southeast corner of the site. This area will be devoted strictly for managing the storm water runoff on the site. Other major site improvements include landscaping, site lighting, and trash containment. Some of the streetscape improvements that are planned along the frontage of Seven Mile Road are going to be consistent with and tie into the Livonia Marketplace project across the street. The next major component is the Brownfield Plan. The submitted Brownfield Plan provides a basic description of the project, the brownfield conditions present on the site, and each of the various Plan elements. The site does qualify as a brownfield based on the determination by the City Assessor that the building, as it existed at the time of her evaluation, was functionally obsolete. This is a legal term that refers to the extent of deficiencies and inadequacies that render it unusable for its intended purpose. Table 1 of the Plan includes a breakdown of the various eligible activities for which the applicant is seeking reimbursement from the capture of tax increment revenues. The major activities and costs associated with each of these include: 1) Baseline Environmental Assessment Activities ($5,000); 2) Lead and Asbestos Abatement ($8,500); 3) Demolition ($550,000); 4) Site Preparation ($1,100,000); and 5) Infrastructure Improvements ($500,000). Additional costs include 15% Contingencies ($324,525) as well as Development and Preparation of the Brownfield Plan ($30,000). The estimated total for all Eligible Expenses is $2,518,025. The largest expense, Site Preparation, involves several activities related to engineering services, erosion control, grading, and utility relocation. Demolition is the second largest expense, and includes the existing building as well as other unusable site features, such as the parking lots, utilities, and landscaping. Tax increment revenue captured on the value of the real property above the established base value will be used to reimburse the Developer for the eligible costs. The base value is established according to the current pre- construction taxable value of the property, which in this case is $1,305,837. As the site is developed and the taxable value of the property increases, the taxes paid on the incremental value above the base value are captured by the LBRA and used to pay the project costs. A complete Tax Capture Table is provided under Schedule 1 of the Brownfield Plan. The Tax Capture Table provides a yearly estimate on the taxable values and the Brownfield Redevelopment Authority September 6, 2017 Page 4 captured tax amounts for each of the separate taxing authorities, and itemizes the available reimbursements. The estimated taxable value of the completed project is $7.7 million, reflecting a capital investment of approximately $15 million. Non-capturable millage include the Zoo Authority, Art Institute and School Debt. The year 2019 is shown as the first full year of tax capture. For that year only, a proportional amount of School Education Taxes (SET) and School Operation Taxes will be captured to pay for a portion of the BEA (Baseline Environmental Assessment). The statute allows for certain preapproved eligible expenses such as the Baseline Environmental Assessment. It allows for the capture of school taxes to help defer those costs, but it's a proportional amount. You will see on the table the collection of a small amount of school tax dollars to pay for the BEA, and that would be limited to just the first year of collection. Schedule 1 shows a 13 year reimbursement period that would run from 2019 through 2031. The 13 years is consistent with the two other projects that we have approved, Livonia Commons and Livonia Marketplace. As with Livonia Marketplace, the ensuing five years following the reimbursement to the Developer, which would be years 2032 through 2036, the LBRA would capture 100 percent of local taxes for the Local Site Remediation Revolving Fund. This fund can be used to pay the costs of eligible activities on eligible property that is located within the city. We have yet to use those dollars for any purposes yet since we've just started collecting it. It is something that we are in discussion with and we will bring to you probably within the next month or two. The projected total cost to the City, which would be the unrealized tax revenue over the life of the Plan, would be about $1.24 million which constitutes roughly 50 percent of the tax increment revenue collected by the Authority above the base value. The City will continue to collect taxes on the $1.3 million of value, which is the base value, which equates to roughly $18,000 a year. That is not something that is a part of the incremental capture. Finally, the Development and Reimbursement Agreement spells out the various obligations between the LBRA and the Developer regarding the collection and payment of tax increment revenues, the duration and timing of the payments, and the retention of funds to pay for the administrative costs of the LBRA. The Law Department has reviewed the proposed Development and Reimbursement Agreement. This Agreement contains several key terms and conditions including the submission of costs. This requires the Developer to provide the Brownfield Redevelopment Authority September 6, 2017 Page 5 City with detailed information on all brownfield eligible costs, including copies of invoices. Payments are limited to the Developer, again, for a period of 13 years only. And then Adjustments, this is a part of the document that spells out the obligations of both the Developer and the Authority and the City with respect to tax bills. The Authority can recommend any amount of the requested reimbursement or limit the number of years of capture based on what it determines is appropriate. Mr. Chairman, I also gave you some key facts regarding this project which summarizes a lot of what I just went over, but it's a good handy reference if you have any questions regarding any of the numbers or key items. That is the summation of the report and all the documents that you have. Engebretson: Thank you very much, Mark. Mike? Slater: That was a great summary, Mark. Engebretson: Jared, are you speaking for the owner or is Karl going to get us started there? Karl Zarbo, Director of Construction, Lormax Stern Development Company. With the Board's approval, I'd like to start and then I'll turn it over to Jared. Thank you for having us here tonight, and with me is Jared Belka with Warner, Norcross & Judd, L.L.P. He is our legal counsel on this. As we've indicated, Jared has put the basic brownfield package together and the goal was to try to make this a little easier, a little simpler, a little bit more direct than what we went through 10 years ago. Mark's presentation was really pretty all inclusive. I just want to touch on a few things, number one, to reinforce a couple things and to add a couple things. As Mark indicated, this is basically a 10-acre site, just slightly under 10 acres. It has been vacant for about nine years. When we first looked at this, and as some of you know, it was almost three years ago, we set several development goals, and it's really been a challenge to try to get this accomplished. One of them certainly was to demolish the 110,000-square foot building that currently exists there. As I say currently exists, it's about 90 percent down as of an hour ago - half the front wall and a little bit of the back wall by the shipping and receiving docks. There's a lot of debris to be shaken out and sorted out and removed from the property, but the building is essentially down. As Mark indicated, we had received approval from City Council for a 37,000-square foot building to house LA Fitness. Brownfield Redevelopment Authority September 6, 2017 Page 6 They will consume 4.474 of the almost 10 acres. As Mark indicated, there's a lot split and there will be three lots for the two owners. The reason there's two ownerships, the outlots are not contiguous. LA Fitness will own the center piece. We will own the two outbuildings and that's why there's three parcels but two ownerships. Hopefully, that's not too confusing. Engebretson: Excuse me, Karl. Where do the property lines go? Zarbo: They're difficult to see. This is the delineation that you can see for the LA Fitness. So this piece becomes that retail outlet. This piece becomes that retail outlet. As Mark says, this retention pond, which is huge, you'll notice that it stays under our control. We're going to build it. We'll own it. We'll control it so that the City and the County has the warm fuzzy that while there's three parcels, there's one control point. Engebretson: Will you own the sticks and bricks? Zarbo: Yes, but not the LA Fitness. LA Fitness, last Friday, that 4.474 acres sold to them. That's really why the lot split. As we've indicated, the building that's on the top left, and actually we're looking at four spaces now, multi-tenant retail. One of the things we hope you noticed in the drawings that Mark showed and the elevations is one of our goals in this development was to try to mirror across the street. We wanted you to come down Seven Mile from either direction and feel that you've reached an area that has been redeveloped under a very controlled package. So one of the things that we hope you noted in your package was that we've repeated a lot of the building materials, a lot of the colors, the awnings. It looks very, very similar to the outbuildings across the street. The other thing you'll notice is that there are two pylon signs across the street at Livonia Marketplace and we have one pylon sign coming for Livonia Market II and it's identical to what's across the street. So that's one of the things that we felt was very important and believed the City felt was important to make this look like you're entering an area with one ownership and that the architecture has been controlled. Up until a couple weeks ago, we really had marked the one outlot as future development, but we were pleasantly surprised with a couple of phone calls and, as Mark indicated, there is some interest and there is a deal working on that lot now and it's happened much, much faster than what we anticipated. We actually anticipated with City Council on land-banking some of Brownfield Redevelopment Authority September 6, 2017 Page 7 that parking because at the time we went through that process, we really didn't have a prospect for that. Again, we wanted to make sure that it's very clear to everyone that when we're talking about demolition, we're talking about physically taking down the building, but we're also talking about, if you were there in the last few days, the landscaping is gone. But the light poles are coming out. The asphalt is coming out. The curbs are coming out. All of the underground utilities are coming out. So this will be a brand new site from ground up. One of the other goals in this was to try to overcome the difficulty, as you say on that plan, the southeast corner is essentially all retention pond. One of the things that really, really slowed this down for a couple years was the cost of that and who and how that was going to be borne by whoever was interested in the project. The challenge in this thing was, again, that brought very, very unusual cost per acre to this site that you wouldn't have. Some of you made me aware that on the west border of this is a 10 foot storm drain. What had been hoped was that the storm water, as it has for 60 years, would feed into that drain and then we wouldn't have to take an acre and a half and build almost a million dollars worth of structure to handle that water, but I guess we pushed it with Wayne County long enough and decided that you will now have a retention pond. Again, it's caused some very unusual costs, but more importantly, probably slowed the project down much longer that what we had thought. One of the things that Mark mentioned was the "functionally obsolete." I would tell you we took several runs and communication over the years with Mark about readapted uses or repurposed, and we just couldn't get any traction. If you're over there and we start to tear the floor out, we'll remind you, with a grocery store, that the utilities under the floors are phenomenal. It just became a struggling point with anybody to try and take that building without essentially ripping out the floor, essentially ripping out the walls, and what we thought, we don't want a retrofit project. Let's build something that looks like it does across the street. While it's taken some time and some extra dollars, that's the project that we wanted to deliver to the city. Again, as Mark mentioned, we went through the process to have it deemed functionally obsolete. We want to make sure there is a feeling in the sense that all of the old will be removed, and one of the important things with that is, if you look at the first slide Mark had, it was a 110,000-square foot grocery store. We're coming back with less than 55,000 square feet. So one of the things that we're very pleased with is we're downloading this Brownfield Redevelopment Authority September 6, 2017 Page 8 project. If you look at the ratio of pervious to impervious, it's much improved. So, we actually meet and exceed your landscaping requirements. The project previous did not. And then obviously the open space with the retention pond handling the water, we think that you'll not only get a better quality of storm water entering your system, but there will be a much greater control rate of that water that's entering that system. Again, when we're all said and done, we're coming back with about half of the square footage, about half of the load on that system. As you're aware, with that project sitting there, the project has been underperforming. I think Mark indicated that the current value on it is $1.3 million. We hope, when we're all said and done, that we're at something approaching $14 - $15 million value and what that means to you folks is what it means to us. The enhanced value certainly is something that we look for as a developer, but what that means for you folks is really obviously a better taxable value. Take an under-performing asset and we hope that we can make it state of the art. Also, the municipal fees connected with this in the last few months and upcoming over the next few months, we hope are something that's an advantage to the city, as is the new construction jobs, which, again, will only be six to nine months in duration, but when the project is completed, you'll have permanent retail jobs. We hope that all of those things kind of put together, that our development goals became your development goals. With that, I'd like to turn it over to Jared who has actually put this package together. Again, we really took the model from across the street that the City of Livonia and especially two the guys sitting here and Mr. Engebretson, ten years ago, did a lot of heavy lifting to get this to what we believe is a concise package but a lot easier to read and understand and comprehend. With that, I'll turn it over to Jared. Jared Belka, Warner, Norcross & Judd, L.L.C. Thank you very much. I appreciate the opportunity to be here this evening. Mark gave a phenomenal overview. I don't have too much to add to that. I think there are two main things I'd like to point out and then I'd be happy to answer any questions. This is a reimbursement program. So the Developer is only going to get reimbursed what they incur. As Mark pointed out, upon completion of the project, they will assemble a cost summary of the costs incurred and submit that to the Brownfield Authority for their review and approval. So they're not subject to any reimbursement until you've approved it. The costs included in the Plan are based on Brownfield Redevelopment Authority September 6, 2017 Page 9 current estimates, but those could certainly come in less so they are only going to get reimbursed what they actually incur. If they come in higher, we have caps within the Plan so these are the caps subject to that 15 percent contingency. The only other thing I'd like to point out is what Karl described basically going back and scrapping everything out of the site to build new. It's programs like this that make that possible as opposed to driving down the road saying, you know what, I'm not going to touch that site. We'll go find somewhere else to build. Because they are a deterrent to future development. When you can see how long it took them to come forward with a plan for this site because they just couldn't quite put their thumb on retrofitting what is there. I just wanted to highlight that, that programs like this make investment like this possible.\ Zarbo: I think one of the keys for some of you that have been around this for a lot of years, in our industry, it's certainly easier to chase a green field. By that I mean if it's just clean dirt, we're out of the ground in a very, very short period of time. As many of you are aware, and poor Kathleen had to go through this from the time she's been on City Council, these are a lot more complicated and there's more moving pieces and again there's more layers of authority certainly beyond even the City of Livonia as it involved the County and the State. A brownfield is not the easiest road to go but, again, we tried to retrofit it a few times and it's really not the product we wanted to put out there. Engebretson: Anything else, Jared? Belka: No. With that, I appreciate the work of Mark and Mike to get us to this point. They did a great job reviewing the materials and responding promptly, and we addressed their comments and we're here today. Again, we thank you for the opportunity. Engebretson: We appreciate their good work also. Let me understand your role. Are you an outside attorney? Belka: To give you my background, I began my career in finance, the banking world, and I ended up with a job at the Michigan Economic Development Corporation in their brownfield redevelopment department. Engebretson: A good launching pad. Brownfield Redevelopment Authority September 6, 2017 Page 10 Belka: Yeah. So, I transitioned out of there and into the law firm I've been with since 2008. I do economic incentive work. I'm fortunate to work with a lot of businesses and developers in redevelopment of these types of properties. Engebretson: So, we'll be seeing you then throughout this process, or are you just here for the launch of the project? Belka: Probably, this. I've worked with Karl in the past to assemble some cost information on the reimbursement portion of projects. Zarbo: In the past, we've submitted to you guys. You've seen the books. They are kind of submittals and the easiest term I think for most to understand is they're like done and drawn requests. Typically, at the end of each year, Mark will ask us to at least bring him up to speed, bring the City up to speed, with what's been spent to date. In this case, this will be a pretty short fuse. There's a ton of money upfront with these eligible activities, and then once we go vertical, it's not reimbursed. One of the cool things that somebody taught me years ago and I remember with what's reimbursable, it's kind of demolition and dirt down. So if you can of remember the three ds', demotion and dirt down, and then you go back and you read Mark's explanation of defining the eligible activities, that's pretty easy to remember. And the opposite, the equivalent of that is once you go vertical, it doesn't qualify for that. We are supposed to attempt to go vertical in 120 to 130 days. Unlike Livonia Marketplace, which was done over many, many years, and there's still a little bit of work left to go, this will have a pretty short fuse on it. Engebretson: So, Karl, talk to us about that fuse. If everything stays on track, the building is down, the dirt is ready, when will you be done? Zarbo: Let me make one other thing really clear. We're doing all the site work including for LA Fitness. And again, we wanted to do that so that you have the assurance that one person is moving the dirt on that 10 acres. Even though it sold last Friday, we're doing all of that - doing all of the demo, all of the underground, all of it. They have what they call a critical path. It's 120 days from last Friday for us to deliver the site to them. And then they will build. We're going to have a little bit of an issue because of the late start with this, probably the landscaping may go in the Spring of 2018. We'll try desperately to get the base course down for asphalt, but it depends on weather. And when the Brownfield Redevelopment Authority September 6, 2017 Page 11 plants close, the wear course may be Spring, 2018. Our intent for the outbuildings are April 1, 2018. They're typically a process of 60 to 90 days. So mid-2018, this should be done. Even the outbuilding that Mark had indicated which really picked up some speed very quick, we think, if it continues to go forward in the next 30 or 60 days, they wouldn't be more than 30 or 60 days behind us. So, you should have a project in its final stages by the middle of next year. Pretty fast track compared to across the street. Engebretson: Yes, but that was a much bigger project. Zarbo: By comparison, that brownfield was $6.6 million for across the street. This is $2.5 million that we're discussing. Engebretson: It's very exciting news. And Jared, welcome to you. We hope we do see you periodically. We've always enjoyed working with Karl, and he's always welcome to come anytime. Does the Board have any questions? Scheel: First of all, you answered my first question, which was regarding who is going to be responsible for the brownfield. Then my next question would be, Mark or Mike probably . . . if that portion of the property is sold and LA Fitness is going to take over building it, then does our Assessing Department assess the LA Fitness building and we collect taxes on that or is that still going to be part of this brownfield recapture? Slater: You would assess the old property. It would still be part of this. Across the street, we have a number of parcels owned by different people but they're all still a part of the brownfield. The Kohl's property is owned by Kohl's, but it's still part of the brownfield. Scheel: So this would be the same thing, then. Zarbo: I might be able to simplify it. Correct me if I'm wrong. The reason that Lormax Stern or Livonia Market II is looking to be reimbursed goes back to my earlier comment. We're doing all of the site work. So, all of those eligible activities that Mark spelled out, we'll write the check. We would turn in those invoices. Like across the street as they indicated, as parcels got sold off, you would tax them individually but we're still being reimbursed across the street because we still spend the money. Brownfield Redevelopment Authority September 6, 2017 Page 12 Scheel: Okay. Belka: If I could add to that as well. Ownership doesn't matter. You don't need to own property to be reimbursed from the taxes from that. Similar to like a downtown development authority, they capture property taxes within a district. This is similar to that. Scheel: Okay. My next question is, when Mark had the map up there that Jack asked about the property. Taormina: The property lines? Scheel: Yes. Taormina: I'm going to go back to this one, which I think it shows parcels A, B and C a little bit better. Scheel: So, Parcel A, you still own a sliver at the side, right, and then down at the bottom? Belka: Yeah. Scheel: Okay. Zarbo: This might be easier. Scheel: I highlighted it on my map when you drew it. So it looks like you own a sliver at the side and a sliver at the bottom, and then this whole section here. So this bottom portion right here, that LA Fitness owns, it goes all the way to the back. Right? Zarbo: If your question is, is the parcel really unusually shaped, the answer is yes. Part of that reason is the only acreage that LA Fitness will accept is basically five acres, and this is as close as we could get. So you'll see some unusual pieces like on that south end, the west end, just as you've indicated. Scheel: Everything that LA Fitness owns, does that back up to the condominiums then? Brownfield Redevelopment Authority September 6, 2017 Page 13 Zarbo: No, and you'll see a split again. This piece to the west is us, and this piece to the east, they go all the way back to the end of the property line. Scheel: Okay. Zarbo: Does that answer that? Is that an any better illustration? Scheel: That's good. And then for the landscaping in the front along Seven Mile Road, is LA Fitness going to be responsible for that or the Developer? Zarbo: We're putting that all in. Scheel: You're putting it all in so it's all matching? Zarbo: Yes. And there's a follow-up to that. We will maintain the common area. So when it's all done, we'll do the snow removal. We'll do the landscaping. Again, so that you got one person to call if you're not happy. We'll also do the common area maintenance of their property. Scheel: Okay. Lendrum: That was in your agreement? Zarbo: What was submitted to the City as an OEA and an REA, and what those are is operating and reciprocal easement agreements and they do just that, Andy. Yes. Lendrum: And that's how you're dealing with the retention pond? Zarbo: Yes. Lendrum: Okay. Engebretson: I'm glad Lynda asked about the land design. Our former Planning Director used to call that a catawampus site plan layout, but it all works and there are cross parking agreements and all that. Zarbo: Yes. We can get you all that. The City has all of it. Engebretson: I don't need to see that. Let the City Council worry about that. Brownfield Redevelopment Authority September 6, 2017 Page 14 Harb: Karl, what do you have to do with the 10 foot storm drain that was on the other side of the property? Zarbo: The original plan or hope was to put the storm water off the site into it. Then years ago when we did Livonia Marketplace, we camera-ed it and there was this much water in it. What we've asked from day one is to try to use the capacity of that 10-foot drain and we just can't find an ear to listen. At some point, we just gave up and we're building a hole in the ground. We just think that we could have put up another building. With a $25, $30 rent on that and put a cap rate, it's worth millions of dollars. Then there's a million dollars that goes back it in. It's probably a $3 to $4 million swing, and there sits a 10 foot drain that you could drive a bus through that doesn't have any water in it. So, what we'll do is, we'll control it into this forebay and then retention pond, and again, it sits at the east end of the property. We'll ship it all the way to the west and put it into the 10-foot drain. Harb: And the economic development guys at Wayne County didn't lend an ear? Zarbo: No. And Mark went to a meeting and I went to a meeting probably a year ago this summer where there was a guy at the County who thought he heard and would listen for a bit, but it's an older system. This is what the book says. At some point, we'd still be talking about developing. We need to go. So we're going to bite the bullet. Engebretson: Anything else from the Board? Karl, I'm not dwelling on this drainage situation. I'd just like to inquire as to how you control the outflow from the detention portion of this pond. Is it just the size of the pipe that's in there that will allow only so many gallons per minute to flow through to the 10-foot pipe? Zarbo: It's engineered and we use PEA and they might be able to get a lot more technical than I can. Again, what you try to do is control the rate at which it leaves. You try to control the flow that leaves, and you try to control the quality. There's a fore bay system there. For all the sophistication that Dr. Tilton did across the street, the fore bay basically is a pretreatment if you will. So it goes into the forebay and has some pretreatment, goes into the retention pond, and then it's very controlled as it leaves. If Brownfield Redevelopment Authority September 6, 2017 Page 15 you think across the street, we take all of the water, including Sears, and it enters a pond behind the bank, then goes over in front of the coney island, and goes all the way to the northwest part of the property and then it's controlled going back into that 10-foot drain. So there's multiple ways to control the rate and the flow. So if you do get one of these crazy rains, it is very controlled how it leaves the site. Engebretson: Thanks for your comments, Karl. Taormina: If there are no other questions from the Board, I think maybe Mike and I have a question. Mine is more of minor question, really. In the Brownfield Plan, Jared, you indicate that the BEA costs are projected at about $5,000. Does this match with the sub-table where you break down the proportionality between the state and local and what's being collected as $5,750. Is that the portion that will be used to pay the BEA? Belka: Yes. Taormina: Is the 750 a proportional amount of contingency added? Belka: Yes. Taormina: The two didn't match. I wasn't sure if they should match. Belka: I think you just had a phase one so it's probably not even . . . it's probably less than that, but at the time, that's . . . Zarbo: It's within pennies of$5,000 plus the contingency. Taormina: Okay. That was my question. Slater: We simply have way more parking than we need. If you just look across the street, it looks like a sea of asphalt, which to me is very unattractive. Is there any thought to land banking this and not putting the asphalt in now? Zarbo: We went through that and it was too nice plus it was rejected and then it was tabled and we then came back. We probably spent three months on that. What originally was planned was the outlot to the top right, we were going to land bank, and I can't remember how many spaces. And I've got to tell you, Mike, we don't want the parking. If you look at where the parking Brownfield Redevelopment Authority September 6, 2017 Page 16 is, it is pretty clear who the requestor is. It's LA Fitness and it was a deal breaker. So I would tell you that the City Council approved it but it was reluctantly and it was by one vote, and the parking came up night after night after night. Slater: I don't get it. Again, it's not my decision. Zarbo: In the center piece, there is a little attempt to hide it with the out buildings. Like across the street, but I would tell you that I don't disagree with you. It got some conversation, though. Didn't it Mark? Taormina: The irony of it, Mr. Chairman, is we hear from developers about how onerous our ordinance is when it comes to parking, like recently with the Panera Bread petition as an outlot development at Laurel Park Place. Here, it's just the opposite where the City attempted to try to get the amount of parking in line with what we believe would be the demand, and there was significant push back by the Developer, well, primarily LA Fitness and their insistence on a minimum amount of parking. I think a lot of it is driven by letting their customers know that there's parking available when they choose to pull in that site. I don't know. I think maybe that is part of the philosophy behind it. Maybe Karl knows more from a retailer's point of view. Zarbo: They come up with these models and it's so different. We've gone to you folks for years and talked about, I mean, the old models were five per thousand square foot of GLS. I went to Mark years ago about the books and said, man, that's got to come down. It's got to go to four. It's got to go to 3.7. And the reason is because the habit of a shopper has changed. You're at a shopping center. Our center is way shorter period of time so the spaces turn over quicker. You don't need as many. For whatever reason, the fitness places take the worst case scenario, which is as the weather turns and weeknights. In their minds, the last thing they want is for you not to have a parking space. If you go there on a July Wednesday when the softball and the golf and the whatever soccer is, parking lots aren't full. But they have that cold weather fear for the parking. So as Mark indicated, it is not what we would typically want. I would have less parking and have another building. I'd give you more landscape. It was a deal breaker with them and we were turned down initially and then it was tabled and then finally we got through and that was really the last issue. I think this was in Brownfield Redevelopment Authority September 6, 2017 Page 17 front of the City Council four times. Patience of a saint on all of you. Engebretson: I remember when that was happening and I can understand Mike's point. It makes a lot of sense but at the same token, as a former business person, I can understand the business operators point as well. It is what it is, and we're certainly not going back to the City Council and say, please change your resolution. I do hope that these are all 10 by 20 parking bays, double parked. Zarbo: We shortened a couple. Mark suggested some along the west border. We shorted a little. We tweaked it and pushed LA Fitness about as far we could. Engebretson: If there is no further discussion, we actually have two motions prepared by the staff, both which are needed here tonight. We would like to act on both of them. Who would like to deal with the first one? On a motion by Scheel, seconded by Harb, and unanimously adopted, it was: #05-2017 RESOLVED, that the Brownfield Plan for Livonia Market II, together with Exhibits and schedules thereto, which was presented to the Livonia Brownfield Redevelopment Authority by the City's Planning Department at its meeting of September 6, 2017, be approved and recommended to the City Council in substantially the form in which it was presented to the Authority, subject to approval as to form by the City's Law Department. Mr. Engebretson, Chairman, declared the motion is carried and the foregoing resolution adopted. On a motion by Lendrum, seconded by Harb, and unanimously adopted, it was: #06-2017 RESOLVED, that a Development and Reimbursement Agreement, providing for reimbursement of eligible costs pursuant to the Brownfield Plan for Livonia Market II, be approved in substantially the form of the Development and Reimbursement Agreement between the City of Livonia Brownfield Redevelopment Authority and Livonia Market II LLC, which was presented to the Authority by the City's Planning Department on September 6, 2017, and that the Board's Chairperson, or in his absence the Vice-Chairperson, is Brownfield Redevelopment Authority September 6, 2017 Page 18 authorized to execute said Development and Reimbursement Agreement on behalf of the Authority, subject to approval as to form of said Development and Reimbursement Agreement by the City's Law Department. Mr. Engebretson, Chairman, declared the motion is carried and the foregoing resolution adopted. Zarbo: Can I just publicly say again, the Staff has been amazing on this and it's been a long, long haul. We teed it up a few times and it's gone away. You can't do this without those guys. I'm very, very appreciative. You guys are really fortunate. Engebretson: We're glad that you stuck with it, Karl. Zarbo: I don't give up quite that easy. Engebretson: You're known to be persistent. Zarbo: Thank you all very much. ELECTION OF OFFICERS Engebretson: The next order of business is election of officers for the coming year. We have one vacancy and that's the office of Treasurer that was held by Joe Taylor. Mr. Taylor made a determination that he needed to step down and so he did and so we have four offices to fill. Chairman and Vice Chairman, Lynda Scheel and I occupy those spots now. I talked to Ken about taking the Treasurer role, but do you want to continue as Secretary? Nominations are order for Chairman. Harb: I move to have Jack continue on. Engebretson: I will, but I'm certainly willing for somebody else to do it as well. On a serious note, I don't want to stand in anybody's way, but if there is no one else that wants to step forward, then I would consider that done. On a motion duly made, seconded, and unanimously adopted, it was: #07-2017 RESOLVED, that Jack Engebretson is hereby re-appointed to serve as Chairman of the City of Livonia Brownfield Brownfield Redevelopment Authority September 6, 2017 Page 19 Redevelopment Authority for a one-year period or until a successor is elected. Mr. Engebretson, Chairman, declared the motion is carried and the foregoing resolution adopted. On a motion duly made, seconded, and unanimously adopted, it was: #08-2017 RESOLVED, that Lynda Scheel is hereby re-appointed to serve as Vice Chair of the City of Livonia Brownfield Redevelopment Authority for a one-year period or until a successor is elected. Mr. Engebretson, Chairman, declared the motion is carried and the foregoing resolution adopted. On a motion duly made, seconded, and unanimously adopted, it was: #09-2017 RESOLVED, that Kenneth Harb is hereby appointed to serve as Secretary of the City of Livonia Brownfield Redevelopment Authority for a one-year period or until a successor is elected. Mr. Engebretson, Chairman, declared the motion is carried and the foregoing resolution adopted. On a motion duly made, seconded, and unanimously adopted, it was: #10-2017 RESOLVED, that Bill Fried is hereby appointed to serve as Treasurer of the City of Livonia Brownfield Redevelopment Authority for a one-year period or until a successor is elected. Mr. Engebretson, Chairman, declared the motion is carried and the foregoing resolution adopted. Engebretson: Is there any other business to come before the Board? Taormina: Mr. Taylor sends his best to his colleagues here. I talked to him on the phone a short while ago. He sounded well. He sends his best to everyone. Engebretson: Thank you for that. Scheel: I just want to mention that we have a list of our emails and addresses and my email address needed to be correct. Brownfield Redevelopment Authority September 6, 2017 Page 20 Engebretson: And Mark, I would like to change my address also to J.r.engebretson(c�gmail.com. Taormina: We'll get those changes made. The 14th Meeting held by the City of Livonia Brownfield Redevelopment Authority on September 6, 2017, was adjourned at 5:54 p.m. /6),/ Ken Harb, Secretary