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Home My WebLink AboutOctober 23, 2023 - 27th Meeting signedMINUTES OF THE 27th MEETING OF THE CITY OF LIVONIA BROWNFIELD REDEVELOPMENT AUTHORITY The 27th Meeting of the Brownfield Redevelopment Authority of Livonia was called to order at 5:03 p.m. on Wednesday, October 23, 2023, by Chairman Engebretson at City of Livonia City Hall MEMBERS PRESENT: MEMBERS ABSENT: OTHERS PRESENT: Jack Engebretson, Chairman (arrived 5:16pm) Lynda Scheel, Vice Chairman Ken Harb, Secretary Dillon Breen, Treasurer Nicholas Lomako Andrew Lendrum Melissa Karolak Steven Vandette Mark Taormina, Planning & Economic Dev. Director Jacob Uhazie, Planning & Economic Dev. Coordinator Michael Slater, Director of Finance Connie Kumpula, Chief Accountant Stephanie Reece, Program Supervisor Kyle Morton, Ashley Capital ROLL WAS CALLED. A quorum was present. Mr. Engebretson arrived but was detained in the City Hall elevator due to a malfunction. He returned to the meeting at 5:16 p.m. APPROVAL OF MINUTES On a motion by Lendrum, seconded by Harb, and unanimously adopted, it was: #10-2023 RESOLVED, that the Minutes of the 26th Meeting of the City of Livonia Brownfield Redevelopment Authority and held April 25, 2023, as amended, are hereby approved. Acting Chairman Scheel 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 #19 (S-2023) FOR AUTHORIZED ELIGIBLE EXPENSES Mr. Taormina: This constitutes payment 19 of 24 for the Livonia Marketplace project. The staff report outlines the current taxable value. This project captures both real and personal property, so we've included breakdowns of each in terms of the taxable value, the incremental value for capture, and the captures for local and school taxes, which altogether total $221,570.22. That breaks Livonia Brownfield Redevelopment Authority October 23, 2023 Page 2 down to $18,381.94 going to the LSRRF, the revolving fund, and $203,188.28 to the developer. Ms. Scheel: Seeing no questions, a motion is in order. On a motion by Breen, seconded by Lomako, and unanimously adopted, it was: #11-2023 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 #19 (S-2023) to Livonia Phoenix, LLC, in the amount of $203,188.28, for the reimbursement of eligible expenses; and 2) $18,381.94 for deposit into the Livonia Brownfield Redevelopment Authority's Local Site Remediation Revolving Fund (LSRRF) and to pay for administrative expenses. Ms. Scheel: Any discussion? Acting Chairman Scheel 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 #17 (S-2023) FOR AUTHORIZED ELIGIBLE EXPENSES. Mr. Taormina: This is payment 17 of 20, and unlike the first project, Livonia Commons captures taxes from real property. A portion of the captured taxes goes to the State Revolving Fund. The amount going to the developer for this tax capture period is $47,115.16 and the amount to the Michigan Department of Treasury State Revolving Fund equals $5,416.43. Ms. Scheel: Are there any questions regarding this? Seeing none, a motion would be in order. On a motion by Harb, seconded by Lomako, and unanimously adopted, it was: #12-2023 RESOLVED, that the City of Livonia Brownfield Redevelopment Authority does hereby approve the distribution of Captured Taxes from the Livonia Commons Project as follows: Livonia Brownfield Redevelopment Authority October 23, 2023 Page 3 1. Payment #17 (S-2023) to TMA-LIVCOM, LLC, in the amount of $47,115.16 for the reimbursement of eligible expenses. 2. Payment of $5,416.43 to the Michigan Department of Treasury State Revolving Fund. Ms. Scheel: Is there any discussion? Acting Chairman Scheel 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 (TIF) REIMBURSEMENT PAYMENT #9 (S-2023) FOR AUTHORIZED ELIGIBLE EXPENSES. Mr. Taormina: This is payment 9 of 22 as part of an 11-year capture period so we're not quite at the halfway point. Again, there's no personal property tax capture in the case of Livonia Market II. The taxable value of the property is roughly $4.3 million, resulting in an incremental value of capture of approximately $3 million. That translates to $42,487.74 of total tax capture that is split 75-25 between the developer and the LSRRF and for administrative costs. The amount of $31,865.80 goes to the developer, Livonia Market II, LLC, and $10,621.93 into the Local Site Remediation Revolving Fund, or LSRRF. On a motion by Lomako, seconded by Breen, and unanimously adopted, it was: #13-2023 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 #9 (S-2023) to Livonia Market II, LLC, in the amount of $31,865.80 for the reimbursement of eligible expenses; and 2) $10,621.93 for deposit into the Livonia Brownfield Redevelopment Authority's Local Site Remediation Revolving Fund (LSRRF) and to pay for administrative expenses. Ms. Scheel: Is there any discussion? Acting Chairman Scheel declared the motion is carried and the foregoing resolution adopted. Livonia Brownfield Redevelopment Authority October 23, 2023 Page 4 REVIEW OF LBRA TAX CAPTURE FOR HAGGERTY CENTER AND CONSIDERATION OF TAX INCREMENT FINANCE (TIF) REIMBURSEMENT PAYMENT #9 (S-2023) FOR AUTHORIZED ELIGIBLE EXPENSES. Mr. Taormina: This is payment number 9 of 28. In the case of Haggerty Center, the taxable value is $12,252,904. The total tax for capture is $160,809.44. That's broken down between the LSRRF in the amount of $32,161.89, and to the developer the amount is $128,647.55. Ms. Scheel: Thank you. Any other questions? Seeing none, a motion would be in order. On a motion by Lomako, seconded by Harb, and unanimously adopted, it was: #14-2023 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 #9 (S-2023) to Haggerty Square, LLC in the amount of $128,647.55 for the reimbursement of eligible expenses; and 2) $32,161.89 for deposit into the Livonia Brownfield Redevelopment Authority's Local Site Remediation Revolving Fund (LSRRF) and to pay for administrative expenses. Acting Chairman Scheel declared the motion is carried and the foregoing resolution adopted. REVIEW OF LBRA TAX CAPTURE FOR LIVONIA WEST COMMERCE CENTER 2 AND CONSIDERATION OF TAX INCREMENT FINANCE (TIF) REIMBURSEMENT PAYMENT #1 (S-2023) FOR AUTHORIZED ELIGIBLE EXPENSES. Mr. Taormina: This represents the first payment for the Livonia Commerce Center project. You'll see from the information provided, the start date is the Summer 2023 tax collection period, and the end date will be Winter of 2050. Not sure how many of us will be around to witness that. Maybe Kyle. The total number of payments is 56. You'll recall that Mr. Morton appeared before us at a previous meeting, indicating that the total cost of eligible expense was substantially less than what was originally forecasted. For this TIF project, 10% will go to the LSRRF, and then the balance gets split between the Livonia Brownfield Redevelopment Authority October 23, 2023 Page 5 developer and the Department of Treasury for the State Revolving Fund. The taxable value of the property is $9,325,995, which translates to an incremental value of capture of $9,031,750. The total taxes for capture were $262,785.09 and this is split in three parts. The LSRRF and administration costs get $12,730.88, the developer gets $222,958.95, and the Department of Treasury will receive $27,095.25. Mr. Morton is here available to address the Board. Kyle Morton, Ashley Capital, 2575 S. Haggerty Road, Ste. 500, Canton, MI 48188. Just thank you again. This turned out to be a great success. I saw the minutes that Mr. Taormina spoke last time...I think I was here a year ago. I don't think I made the spring meeting. I'm losing track there, but Penske is fully up and running on the TJ Maxx side. DHL is servicing a few of the auto clients in town and the last tenant who took space since the last time I was here was... Penske is expanding and servicing Starbucks, so that'll serve all 500 stores in Michigan and going down into Ohio, I believe. So, they're building out their fridge and freezer inside the building right now. They'll do everything from coffee and paper products to breakfast sandwiches and lunch and stuff like that. So, we'll end up being hopefully a tenant that's there for a long time, spending a lot of money to move into this space. As Mr. Taormina mentioned, I'm hoping we're done in 2040 on the tax payments, not 2050. We were $4 million-ish under budget, or under the cap. Thank you. Ms. Scheel: Okay, so you've heard from Kyle and from Mark, does anybody have any questions? There are no questions, so a motion would be in order. On a motion by Harb, seconded by Lomako, and unanimously adopted, it was: #15-2023 RESOLVED, that the City of Livonia Brownfield Redevelopment Authority does hereby approve the distribution of Captured Taxes from the Livonia West Commerce Center 2 Project as follows: 1) Payment #1 (S-2023) to Livonia West Commerce Center 2, LLC, in the amount of $222,958.95 for the reimbursement of eligible expenses. 2) $12,730.88 for deposit into the Livonia Brownfield Redevelopment Authority's Local Site Remediation Revolving Fund (LSRRF) and to pay for administrative expenses. Livonia Brownfield Redevelopment Authority October 23, 2023 Page 6 3) $27,095.25 to the Michigan Department of Treasury State Revolving Fund. Acting Chairman Scheel declared the motion is carried and the foregoing resolution adopted. Ms. Scheel: That concludes the business we have before us. Is there any other business to come before the board? Mr. Slater: Yes. As many of you know, this is going to be my last meeting. I am retiring. Not till next year, but it will be before the next meeting of the Brownfield Authority. So, I just want to thank everybody for putting up with me for all these years, and hopefully, we did a decent job of providing you information. I'd also like to, though, we had an introduction, this is Connie Kumpula. She's my Chief Accountant. She helps with a lot of the stuff, putting the dollars in the right spot after these approvals. So, Brownfields are complicated, as everyone has learned, and that has been around here for a while. No two of these things were the same when we went through them and it's a lot of work between Mark, and our department, and the Planning Department to keep all this straight. I just appreciate everyone's putting up with me for all these years. On a motion duly made, seconded, and unanimously adopted, the 27th Meeting held by the City of Livonia Brownfield Redevelopment Authority on October 23, 2023, was adjourned at :5:22 p.m. Ken Harb, Secretary