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HomeMy WebLinkAboutNovember 3, 2021 - 23rd Meeting signedMINUTES OF THE 23'd MEETING OF THE CITY OF LIVONIA BROWNFIELD REDEVELOPMENT AUTHORITY The 23rd Meeting of the Brownfield Redevelopment Authority of Livonia was called to order at 5:00 p.m. on Wednesday, November 3, 2021, by Chairman Engebretson at City of Livonia City Hall MEMBERS PRESENT: Jack Engebretson, Chairman Lynda Scheel, Vice Chairman Ken Harb, Secretary Bill Fried, Treasurer (arrived at 5:07 pm) Andrew Lendrum Steven Vandette Dillon Breen Nicholas Lomako Melissa Karolak (arrived at 5:05 pm) MEMBERS ABSENT: None OTHERS PRESENT: Mark Taormina, Planning &Economic Dev. Director Michael Slater, Director of Finance Jacob Uhazie, Planning & Economic Dev. Coordinator Stephanie Reece, Program Supervisor ROLL WAS CALLED. A quorum was present. APPROVAL OF MINUTES On a motion by Scheel, seconded by Breen, and unanimously adopted, it was: #07-2021 RESOLVED, that the Minutes of the 22"d Meeting of the City of Livonia Brownfield Redevelopment Authority and held April 21, 2021, are hereby approved as amended. Mr. Engebretson, Chairman, declared the motion is carried and the foregoing resolution adopted. REVIEW OF LBRA TAX CAPTURE FOR LIVONIA MARKETPLACE AND CONSIDERATION OF TAX INCREMENT FINANCE (TIF) REIMBURSEMENT PAYMENT #15 (S-2021) FOR AUTHORIZED ELIGIBLE EXPENSES Mr. Taormina: Thank you. I will just summarize the totals for disbursement. In this case, Livonia Marketplace, payment #15 corresponds with the Summer 2021 tax collection. The Finance Department and the Treasurer's office have analyzed the taxes and collection thereof. The disbursements are in the amount $185,901.63 to the developer and $17,252.78 into the Brownfield Redevelopment Authority Local Site Remediation Revolving Fund. As with all projects, we provide a running total showing the cumulative Livonia Brownfield Redevelopment Authority November 3, 2021 Page 2 disbursements to the developer, as well as the deposits into the LSRRF. You can see those totals on page 2 of the report. Mr. Engebretson: Thank you. Are they any questions or comments? If not, a motion would be in order. On a motion by Lomako, seconded by Lendrum, and unanimously adopted, it was: #08-2021 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 #15 (S-2021) to the "Owner" of the Livonia Marketplace, Livonia Phoenix, LLC, in the amount of $185,901.63 for the reimbursement of eligible expenses related to the redevelopment of the Former Livonia Mall Site; and 2) A deposit of $17,252.78 for Administrative Expenses and deposit into the Livonia Brownfield Redevelopment Authority's Local Site Remediation Revolving Fund (LSRRF). Mr. Engebretson: Any discussion? Mr. Engebretson, Chairman, declared the motion is carried and the foregoing resolution adopted. REVIEW OF LBRA TAX CAPTURE FOR LIVONIA COMMONS AND CONSIDERATION OF TAX INCREMENT FINANCE (TIF) REIMBURSEMENT PAYMENT #13 (S-2021) FOR AUTHORIZED ELIGIBLE EXPENSES. Mr. Taormina: Thank you. This was our second Brownfield project. In the case of Livonia Commons, the value of the real property totaled roughly $3.3 million. This was a slight increase over the previous years taxable value of about $3.2 million. The capture totals $44,561.53. Of that, $39,975.39 goes to the developer and $4,586.14 goes to the Michigan Department of Treasury and the State Brownfield Redevelopment Fund, which is the equivalent of 3 mils of State Education Tax Capture. That happens during the summer collection in June each year. Mr. Engebretson: Any questions or comments? Melissa Karolak joined the meeting at 5:05 p.m. Livonia Brownfield Redevelopment Authority November 3, 2021 Page 3 Mr. Engebretson: We had marked you absent. Ms. Karolak: Sorry. It is my first time. I didn't know how to find the place. Mr. Engebretson: We are glad you did. Thank you. Thanks for being a part of our friendly little family here. Any other questions or comments? If not, a motion would be in order. William Fried joined the meeting at 5:07 p.m. On a motion by Scheel, seconded by Vandette, and unanimously adopted, it was: #09-2021 RESOLVED, that the City of Livonia Brownfield Redevelopment Authority does hereby approve the distribution of Captured Taxes from the Livonia Commons Project as follows: 1) Payment #13 (S-2021) to the "Owner' of Livonia Commons, TMA- LIVCOM, LLC, in the amount of $39,975.39 for the reimbursement of eligible expenses. 2) Payment of $4,586.14 to the Michigan Department of Treasury and the State Brownfield Redevelopment Fund Mr. Engebretson, Chairman, declared the motion is carried and the foregoing resolution adopted. REVIEW OF LBRA TAX CAPTURE FOR LIVONIA MARKET II AND CONSIDERATION OF TAX INCREMENT FINANCE I REIMBURSEMENT PAYMENT #5 (S-2021) FOR AUTHORIZED ELIGIBLE EXPENSES. Mr. Taormina: Thank you. This is the third Brownfield project. In the case of Livonia Market II, the 2021 taxable value of all the real property totaled $3.948 million. From that we subtract out the base value of $1.3 million, this leaves a total incremental value for capture of $2.6 million. Applying the 2021 local tax rate for capture, which is 14.1497 mils, we get a total capture of $37,399.82. For this project, 25% is deposited to the LSRRF and 75% goes to the developer. The breakdown in the disbursements is $28,049,87 to the developer and $9,349.96 to the LSRRF. Or. Engebretson: Thank you, Mr. Taormina. Any questions or comments? If not, a motion would be in order. Livonia Brownfield Redevelopment Authority November 3, 2021 Page 4 Mr. Lendrum: So, they have maybe one more payment coming? Mr. Taormina: I'm sorry? Mr. Lendrum: They have, like, maybe one more payment? Mr. Taormina: No. The duration of the payments is eleven years with the first year being 2019. Mr. Lendrum: Yeah, but it says it is not to exceed $1.6 million, right? Mr. Taormina: I'm sorry? Mr. Lendrum: Doesn't it say that they can only get $1.6 million? Mr. Taormina: Yes. So, if you look at the table on the second page, of the $1.6 million, they have collected $141,014, Mr. Lendrum: I put the comma in the wrong place. Sorry. Thank you. Or. Engebretson: Is there anything else or further discussion? Questions or comments? If not, a motion would be in order. On a motion by Breen, seconded by Lomako, and unanimously adopted, it was: #10-2021 RESOLVED, that the City of Livonia Brownfield Redevelopment Authority does hereby approve the distribution of Captured Taxes from the Livonia Marketplace II Project as follows: 1) Payment 1"5 (0-2021) to Livonia Market II, LLC in the amount of $28,049.87 for the reimbursement of eligible expenses as approved in the Brownfield Plan; and 2) A deposit of $9,349.96 into the Livonia Brownfield Redevelopment Authority's Local Site Remediation Revolving Fund (LSRRF). Mr. Engebretson: Is there any discussion? Mr. Engebretson, Chairman, declared the motion is carried and the foregoing resolution adopted. Livonia Brownfield Redevelopment Authority November 3, 2021 Page 5 REVIEW OF LBRA TAX CAPTURE FOR HAGGERTY CENTER AND CONSIDERATION OF TAX INCREMENT FINANCE (TIF) REIMBURSEMENT PAYMENT #5 (S=2021) FOR AUTHORIZED ELIGIBLE EXPENSES. Mr. Taormina: Thank you. In this case, the split is 80/20 between the LSRRF and the developer. For Haggerty Center, the current taxable value of the real property totals $4.8 million roughly. In this case, the base value is set at $844,000. Subtracted from the current taxable value leaves just over $4 million in incremental value for capture. We then apply the tax rate to that amount, which generates a total capture of $56,736.02. The distribution is $45,388.82 to the developer, which is the 80%, and $11,347.20 to the revolving fund. I will point out that we received the second draw on August 21, 2021. This included roughly $3.2 million of eligible costs related to due care activities, site preparation, demolition, and infrastructure improvements. Your report includes the summaries of those expenses, including the certification of costs and a table that breaks them down by category. In addition, we have pages and pages of invoices and manifests. I didn't think you would be interested in going through all of that. If any of you are, I would be happy to supply that. Mr. Engebretson: Mr. Lendrum might. Mr. Taormina: He might. (laughs) Mr. Vandette: Is that the attachment? Mr. Taormina: Yes. There is a memo and a table, as well. Mr. Engebretson: Thank you, Mark. On a serious note, Mark, how is that project coming? Mr. Taormina: It has been well over a year now that the retail has been established and fully occupied. The first apartment building was completed near the end of last year. Leasing is going very well. They were slow at first, but it picked up. The second building is nearing completion. We do not have the full taxable value on the project, but from all indications and my discussions with the developer, Jordan Jonna, the project is going well. He was a little nervous at first with the apartments, but I think leasing has picked up. Mr. Engebretson: It is very attractive. Livonia Brownfield Redevelopment Authority November 3, 2021 Page 6 Mr. Taormina: It is. Ms. Scheel: Can I add to that? Mr. Engebretson: Yes, ma'am. Ms. Scheel: Dan West, from the Chamber of Commerce, did a Cityscape, which is him interviewing people and showing the apartments. If you go on to the Chamber of Commerce's website, you might be able to find that Cityscape. Mr. Engebretson: I am glad you mentioned that, because we never had the opportunity to go see it as was promised in a previous meeting, but that is okay. Mr. Harb: I thought you went without me. Mr. Engebretson: No. We didn't get to go. It was kept secret. I am glad you mentioned that. Okay, back to serious business. We had a thorough presentation of facts and now it is time for a motion. On a motion by Lomako, seconded by Scheel, and unanimously adopted, it was: #11-2021 RESOLVED, that the City of Livonia Brownfield Redevelopment Authority does hereby approve the distribution of Captured Taxes from the Livonia Haggerty Center Project as follows: 1) Payment #5 (S-2021) to Haggerty Square, LLC in the amount of $45,388.82 for the reimbursement of eligible expenses; and 2) A deposit of $11,347.20 into the Livonia Brownfield Redevelopment Authority's Local Site Remediation Revolving Fund (LSRRF) for administrative expenses. Mr. Engebretson, Chairman, declared the motion is carried and the foregoing resolution adopted. ELECTION OF OFFICERS Mr. Engebretson: On to it #8, which is election of officers. It is interesting to me because at our last Zoom meeting, we took up the election of officers even when it was not on the agenda. We elected a slate that was to stay in office until May 2022, unless relieved. What is Livonia Brownfield Redevelopment Authority November 3, 2021 Page 7 your pleasure folks? If you look at the minutes, I think it is pages nine and ten of the minutes from last time, that is where this information was documented. If there was some wiggle room in there, there could be changes. Mark, do you want to comment? Mr. Taormina: Yes, Mr. Chairman. This is partly our mistake. We originally thought that it had been over a year. Going back after the agenda was posted and mailed to the board members, we realized that, in fact, as you have indicated, we took action on this at our spring meeting. So, really no action is needed at this time, if that is the pleasure of the board. Mr. Engebretson: Thank you, Mark. Did you want to make other comments about the makeup of the board? Mr. Taormina: No. Mr. Engebretson: Okay. Well, then is it a consensus that we pass over item #8 at this time? Mr. Vandette: I think so. Mr. Breen: Yeah. Mr. Engebretson: Okay. There is #g. Other business to come before the board. Ms Scheel? Ms. Scheel: Mr. Chairman, I believe that the item we were discussing before, we may be without a Treasurer, if we on choose to elect a Treasurer at this time. Would you like a motion for someone to be the new Treasurer? Mr. Engebretson: Yes. On a motion by Scheel, seconded by Lendrum, and unanimously adopted, it was: #12-2021 RESOLVED, that Dillon Breen is hereby appointed to serve as interim Treasurer thru the Spring of 2022 or the next time at which a full slate of officers is elected. Mr. Engebretson, Chairman, declared the motion is carried and the foregoing resolution adopted. Livonia Brownfield Redevelopment Authority November 3, 2021 Page 8 Mr. Engebretson: Well, Bill, we would like to thank you for your many years from the beginning, I think, serving this board as Treasurer we would like to recognize your service and say thank you. If there is nothing further, I am looking for a motion to adjourn. On a motion duly made, seconded, and unanimously adopted, the 23'd Meeting held by the City of Livonia Brownfield Redevelopment Authority on November 3, 2021 was adjourned at 5:21 p.m. �(r6 Ken Harb, Secretary