HomeMy WebLinkAboutMarch 20, 2024 - 28th Meeting signedMINUTES OF THE 28th MEETING OF THE
CITY OF LIVONIA BROWNFIELD REDEVELOPMENT AUTHORITY
The 28th Meeting of the Brownfield Redevelopment Authority of Livonia was
called to order at 5:00 p.m. on Wednesday, March 20, 2024, by Chairman
Engebretson at City of Livonia City Hall
MEMBERS PRESENT: Jack Engebretson, Chairman
Lynda Scheel, Vice Chairman
Ken Harb, Secretary
Dillon Breen, Treasurer
Nicholas Lomako
Andrew Lendrum
Steven Vandette
MEMBERS ABSENT: Melissa Karolak
OTHERS PRESENT:
Mark Taormina, Planning & Economic Dev. Director
Jacob Uhazie, Planning & Economic Dev. Coordinator
Michael Slater, Director of Finance
Debra Lichtenberg, Director of Finance
Stephanie Reece, Program Supervisor
ROLL WAS CALLED. A quorum was present.
APPROVAL OF MINUTES
On a motion by Scheel, seconded by Vandette, and unanimously adopted, it was:
#01-2024 RESOLVED, that the Minutes of the 27th Meeting of the City of
Livonia Brownfield Redevelopment Authority and held October
23, 2023, as amended, are hereby approved.
Chairman Engebretson declared the motion is carried and the foregoing
resolution adopted.
Chairman Engebretson made some comments about at the last meeting how he
was late and how he was stuck in the elevator. He stated he is appreciative of the
firefighters that were able to remove him from it.
REVIEW OF LBRA TAX CAPTURE FOR LIVONIA MARKETPLACE AND
CONSIDERATION OF TAX INCREMENT FINANCE (TIF) REIMBURSEMENT
PAYMENT #20 (W-2023) FOR AUTHORIZED ELIGIBLE EXPENSES
Mr. Taormina: So this is for the Winter 2023, and so the next five items are all
Winter 2023 disbursements. The captured values are really the
same as what we saw from the Summer of 2023. In the case of
the value marketplace, the incremental value for capture is a
little over $6 million. In this case, we are capturing both personal
Livonia Brownfield Redevelopment Authority
March 20, 2024
Page 2
and real property, which translates to total taxes for capture in
the amount of $93,570.200, and the breakdown, again, is
between the LSRRF and Administration at 20% and the 80%
going to the developer. You can see the numbers there $18,714
to the fund and administration, and then just under $75,000 to
the developer and we have the prepared resolution highlighted
for you.
Mr. Engebretson: Seeing no questions, a motion is in order.
On a motion by Breen, seconded by Harb, and unanimously adopted, it was:
#02-2024 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 #20 (W-2023) to Livonia Phoenix, LLC, in the
amount of $74,856.16, for the reimbursement of eligible
expenses; and
2) $18,714.04 for deposit into the Livonia Brownfield
Redevelopment Authority's Local Site Remediation Revolving
Fund (LSRRF) and to pay for administrative expenses.
Mr. Engebretson: Any discussion?
Chairman Engebretson 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 #18 (W-2023) FOR AUTHORIZED ELIGIBLE EXPENSES.
Mr. Taormina: Payment number 18 in the case of Livonia Commons. I'll note
that following this payment, we only have two more. In this case
100% of the captured taxes does go to the developer for Winter
of 2023. That amount is $45,742.82. In this case none of the
captured amount goes to the Michigan Department of Treasury
State Revolving Fund that occurs in the summer.
Mr. Engebretson: Are there any questions regarding this? Seeing none, a motion
would be in order.
Livonia Brownfield Redevelopment Authority
March 20, 2024
Page 3
On a motion by Scheel, seconded by Vandette, and unanimously adopted, it was:
#03-2024 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 #18 (W-2023) to TMA-LIVCOM, LLC, in the amount of
$45,742.82 for the reimbursement of eligible expenses.
Mr. Engebretson: Is there any discussion?
Chairman Engebretson 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 #10 (W-2023) FOR AUTHORIZED ELIGIBLE EXPENSES.
Mr. Taormina: Yes, so this is, again, another local only tax capture. The
amount for this period was $49,239.32, split between 25% to the
LSRRF and administration and 75% to the developer. And you
can see the numbers highlighted in the resolution.
On a motion by Lomako, seconded by Harb, and unanimously adopted, it was:
#04-2024 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 #10 (W-2023) to Livonia Market II, LLC, in the amount
of $36,929.49 for the reimbursement of eligible expenses; and
2) $12,309.83 for deposit into the Livonia Brownfield
Redevelopment Authority's Local Site Remediation Revolving Fund
(LSRRF) and to pay for administrative expenses.
Mr. Engebretson: Is there any discussion?
Mr. Vandette: I just have one question. The percentage that goes to the
revolving fund for Livonia at 25%, that is different than some of
the others. Is that set during the Brownfield process of
establishing it at 25%. Is that why there's a difference?
Livonia Brownfield Redevelopment Authority
March 20, 2024
Page 4
Mr. Taormina: Yeah. So, in the case of the Livonia Market II, as I recall, that
was something that was finalized with the Council review and
approval of the project. I don't' know what was recommended
following the authorities, but it's really the Council's decision at
the end on what that split should be. Typically, it's something
that's negotiated between the developer and the city, and then
ultimately approved by City Council. That's why you see it
varying. Someone asked me that question earlier why it was 0%
in the case of Livonia Commons, and that was something that
was really negotiated as part of the review of that project.
Mr. Vandette: Do you know is there a range for that?
Mr. Taormina: There is no limit that I'm aware of. It can range anywhere from
zero to whatever. In this case, this is the 25% .This case is
probably the highest percentage.
Mr. Slater: I think if we had a template document, it would normally be
80/20. Right? They're not all at 20, but I think that's where we
start and then it changes from there.
Mr. Taormina: Actually, the last line item on the agenda is 10% in that case. I
know that there was quite a lot of discussion about that option
Mr. Vandette: Thank you.
Mr. Engebretson: Any further discussion?
Chairman Engebretson declared the motion is carried and the foregoing
resolution adopted.
REVIEW OF LBRA TAX CAPTURE FOR HAGGERTY CENTER AND
CONSIDERATION OF TAX INCREMENT FINANCE (TIF) REIMBURSEMENT
PAYMENT #10 (W-2023) FOR AUTHORIZED ELIGIBLE EXPENSES.
Mr. Taormina: This is the Haggerty center project at Eight Mile and Haggerty
Roads, the mixed -use development. In this case the total taxes
for capture amounts to $186,363.12. The division between the
LSRRF and the administration, in this case, is 20%/80% as
mentioned. You can see the numbers there.
Mr. Engebretson: Thank you. Any other questions? Seeing none, a motion would
be in order.
Livonia Brownfield Redevelopment Authority
March 20, 2024
Page 5
On a motion by Vandette, seconded by Scheel, and unanimously adopted, it was:
#05-2024 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 #10 (W-2024) to Haggerty Square, LLC in the
amount of $149,090.50 for the reimbursement of eligible
expenses; and
2) $37,272.62 for deposit into the Livonia Brownfield
Redevelopment Authority's Local Site Remediation Revolving
Fund (LSRRF) and to pay for administrative expenses.
Chairman Engebretson 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 #2 (W-2023) FOR AUTHORIZED ELIGIBLE
EXPENSES.
Mr. Taormina: This is not only our most recent project, but also the largest
project we've approved to date. This is only the second
payment. In this case, we do capture school taxes. The totals
between the local tax capture and school tax capture is
$228,824.81. As I mentioned previously, this is the one that 10%
goes to the LSRRF and administration and then the balance of
90% goes to the developer.
Mr. Breen:
Mr. Taormina:
Mr. Slater:
This is the longest time wise, what 30 years?
It was less than that. And if you recall going, when at the last
meeting and it is probably reflected in the minutes, you just
approved, where Kyle Morton indicated that there was some
rather significant savings as part of the project. So, the
timeframe was shortened. I can't quote exactly what that is, but I
want to say it was Tess than the 28 years that was approved.
It was approved for 28. They had a bunch of savings because
they were able to use the fill dirt from the 1-275 project instead of
paying for it. And that was one of those savings. But what was
approved for reimbursement as part of the adopted plan was
about $9.7 million, their actual incurred costs were about $5.7
Livonia Brownfield Redevelopment Authority
March 20, 2024
Page 6
million. So, in all likelihood, if values continue to increase like
they are and everything goes on as it is, they will be repaid that
$5.7 million well before the 28 years is up.
Mr. Engebretson: That was an interesting process that was done. Didn't we have
a Zoom meeting on this particular issue?
Ms. Scheel:
Mr. Slater:
Yes, we did.
There were many meetings and many back and forth's. It's
definitely different than all the other ones we did, but I believe
that was our most contaminated property in the city period. From
a brownfield perspective, that's probably going to be one of the
bigger ones you ever do.
Mr. Engebretson: Probably the biggest.,
Mr. Harb:
It's a beautiful site to though. Right now.
Mr. Engebretson: Okay, folks. Do we have motion?
Mr. Harb:
No.
Mr. Engebretson: Is there any discussion?
Mr. Lomako:
Mr. Taormina:
Mr. Lomako:
Mr. Slater:
Mr. Chairman, I'm just questioning the numbers. If it is 10% f
that total capture going to LSRRF and administration, should it
be $22,882? And should the 90% be $205,942?.
I'm using the numbers that were provided to us by the
Treasurer's office. I've got $14,753.91 and $214,070.90.
But again, your total taxes for capture is $228,824, right?
Mr. Chair, I don't have the actual spreadsheet, right here, but
when we say 90%/10%, or 80%/20%, there is a little twist to
that, because the percentage of that goes to the LSRRF is the
10%, the 20%, whatever it is, of local only capture, none of the
school taxes goes to the revolving. So, for simplicity, we say
90%/10% 80%/20%, but in actuality it's always a little bit
different because if they are capturing school taxes.
Mr. Harb: It's the 228 minus the 81 to get you to 147. So
Livonia Brownfield Redevelopment Authority
March 20, 2024
Page 7
Mr. Taormina: You see the local tax capture amount is $147,539.06? It is 10%
of that figure more or less.
Mr. Lomako: Okay.
Mr. Engebretson: Well, that was a good question. And a good response.
Mr. Slater:
Mr. Harb:
Mr. Slater:
Mr. Harb:
Mr. Slater:
Well, the reason I know that is because the model and I think it
was Livonia Marketplace, there was a correction we had to
make after a few years or this where that was the correction,
that it wasn't over the total amount, it was only the local capture.
I believe that's part of the Brownfield Act is that no state taxes
can go to the revolving fund.
So, who collects for the schools? Does the city collect for the
schools?
The Treasurer's office, yes.
I don't I don't notice that on the in these numbers. Do we charge
the schools for that?
For services provided by schools? Are you pulling my leg?
Mr. Engebretson: We've gone from one end of the spectrum to the other. Any
further discussion? Hearing none, please call the roll on the
motion to approve.
On a motion by Scheel, seconded by Lendrum, and unanimously adopted, it was:
#06-2024 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 #2 (W-2023) to Livonia West Commerce Center
2, LLC, in the amount of $214,070.90 for the
reimbursement of eligible expenses.
2) $14,753.91 for deposit into the Livonia Brownfield
Redevelopment Authority's Local Site Remediation
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March 20, 2024
Page 8
Revolving Fund (LSRRF) and to pay for administrative
expenses.
Chairman Engebretson declared the motion is carried and the foregoing
resolution adopted.
Mr. Engebretson: Is there anything else to come before the board?
Mr. Slater:
Mr. Chair, this is my last Brownfield meeting also. April 12th will
be my last day at the city, and I'd like to take the opportunity to
introduce everybody to my successor This is Debbie Peck
Lechtenberg. She will be filling my shoes, improving what we
hopefully set in place here. She's very qualified and very
pleasant to be around. At least so far.
Ms. Scheel: Is this your first day?
Mr. Engebretson: So, Mike, is she replacing you as Director of Finance or
relative to this particular function here.
Mr. Slater:
both for now. Obviously, it'll be up to Debbie as to whether she
continues to attend these meetings or we have someone else do
that, but for now, yes.
Mr. Engebretson: Hello, Debbie. Welcome. I won't be here to welcome you, but I
will take this opportunity to say that important work, very
important work. This process was something unknown to most
of us prior to Mayor Kirksey early after he took my chair and
started his second, eight years, he formed this board. And I'm
sure Mr. Taormina and Mr. Slater, were involved in that process,
but we all got educated and it has been an interesting thing to
participate in. And I do want to say that I think it's really
important work. Some development has occurred in the city, that
may or may not have happened, had it not been for the support
that comes from this board and this law. On the other hand, we
learned that it doesn't really cost the city, anything long term,
because of the way the whole process functions, versus just
leaving some lands laying there wasting away, not generating
any taxes. I think it's been a wonderful opportunity for the city,
and it's been a wonderful opportunity for me, and I want to take
this opportunity to thank all of you for the effort that you've made
for a long time, some far shorter time, but I want you to know
that while I've enjoyed working with you all, and conducted a lot
of meetings sitting in this chair, I'm just not comfortable
Livonia Brownfield Redevelopment Authority
March 20, 2024
Page 9
anymore. Age is catching up with me and a couple of days from
now I turn 87, and it's time for me to go. And so I did ask the
Mayor to let me stay till this last meeting occurred. I wanted to
be here so that I can express my appreciation to all of you.
Mark, I know that you and your team have worked tirelessly to
coordinate with the finance department to prepare wonderful
packets of information on a timely basis. And you have attended
the meetings and you have managed to answer our questions.
You've helped to educate us on the nuances that we're dealing
with. And it's just been, it's been fun. I'm going to miss being
here, but Mr. Slater probably would have a heart attack when he
hears this, but I'm going to devote the balance of my time as I
have been for the last 15 years, doing all the accounting work at
my church. And I'm using QuickBooks Online and a lot of fun
with that. It kind of takes me back to where I started life in the
computer business and big mainframes back in those days. That
world has changed a lot, but I implemented the accounting
system for church 15 years ago using QuickBooks Desktop and
I handed it off to somebody else, but now I'm taking it back and
transitioning to QuickBooks Online for a lot of reasons. But
anyway, that's what I'm going to be doing now. Mike, as you go
out into your leaf raking, or whatever and I will be doing debits
and credits.
Mr. Harb: Are you going to Florida?
Mr. Slater: Eventually, at least for January and February.
Mr. Engebretson: Well, and so you know, that's another part of the problem as
I've gotten older, I've had vision issues and wear hearing aids.
And I don't like to do a job unless I can do it well, and for the last
year or so. I don't feel been doing it particularly well. I walked in
today with Nick Lomako, from the parking lot and I was so out of
breath by the time I got to the elevator.
Mr. Harb:
I know we started together, but I just want to thank you for your
wisdom. Thank you for leading this group the way you have. I
think we've all learned from you. Your graciousness, your
consistency, and we're gonna miss you. I just wanted to say
that.
Mr. Engebretson: Okay. Discussion?
Livonia Brownfield Redevelopment Authority
March 20, 2024
Page 10
ELECTION OF OFFICERS
On a motion by Breen, seconded by Harb, and unanimously adopted, it was:
#07-2024 RESOLVED, that Lynda Scheel is hereby appointed to serve as
Chairman thru the spring of 2025 or the next time at which a full
slate of officers is elected.
On a motion by Breen, seconded by Scheel, and unanimously adopted, it was:
#08-2024 RESOLVED, that Ken Harb is hereby appointed to serve as
Vice Chairman thru the spring of 2025 or the next time at which
a full slate of officers is elected.
On a motion by Harb, seconded by Vandette, and unanimously adopted, it was:
#09-2024 RESOLVED, that Dillon Breen is hereby appointed to serve as
Secretary thru the spring of 2025 or the next time at which a full
slate of officers is elected.
On a motion by Harb, seconded by Breen, and unanimously adopted, it was:
#10-2024 RESOLVED, that Andy Lendrum is hereby appointed to serve
as Treasurer thru the spring of 2025 or the next time at which a
full slate of officers is elected.
Mr. Taormina: Chairman for all your dedication, thanks again. It's been a
pleasure. And yes, you'd have sat in that chair and Mike and I
usually try to sit at the far end of the table as possible. To Mike
too, I mean, we are gonna miss Mike. I am sure. Debbie
understands what she's walking into, or will soon enough but
you know, ifs been an interesting progression, you know, from
the first project that we worked on, the Livonia Marketplace, and
all the lessons we learned from that, which I think was worth it.
That was starting out with a very difficult project at a very
difficult time, and I think that's really paid off on how we
managed all the projects that followed.
Mr. Engebretson: I think you're right in the fact that it was so new, and we
needed so much education. It made it difficult, but it was never
anything but a pleasure to be involved in it.
Mr. Taormina: Just so that everyone knows we don't take this task lightly at
all. Not all things are a good fit necessarily. And so, they never
Livonia Brownfield Redevelopment Authority
March 20, 2024
Page 11
really find their way to you for review, or they don't qualify. We
do anticipate that there will be more in the future. There's
nothing on the immediate horizon right now, but that doesn't
mean that all of a sudden, we will be handed with, you know,
potentially a great opportunity that where Brownfield financing
is going to be critical, you know, it's just a matter of time that it
probably will be used in some capacity. You know, we have
this revolving fund that we're growing and that money will be
used at some point probably related to some activities on city
owned property.
Mr. Engebretson: And I think that you're going to, for sure, see new opportunities
come down the road, because there are going to be
opportunities to redevelop land that will be enhanced by this
whole process here. As I said earlier, I think that we've seen
some things happen that wouldn't have happened had not
been for the work that we've done here,
Mr. Taormina:
Right, and the statute is evolving as well. So, for example, it's
recently been amended to include more opportunities for
housing developments. So, we could very well see that in the
future.
Mr. Engebretson: Okay, well then, let me just say thanks again to everybody.
On a motion duly made, seconded, and unanimously adopted, the 28th Meeting
held by the City of Livonia Brownfield Redevelopment Authority on March 20,
2024, was adjourned at :5:38 p.m.
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Ken Harb, Secretary