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HomeMy WebLinkAboutApril 27, 2026 - 32nd Meeting signedMINUTES OF THE 32nd MEETING OF THE CITY OF LIVONIA BROWNFIELD REDEVELOPMENT AUTHORITY The 32nd Meeting of the Brownfield Redevelopment Authority of Livonia was called to order at 3:04 p.m. on Wednesday, April 27, 2026, by Chairman Scheel at City of Livonia City Hall MEMBERS PRESENT: Lynda Scheel, Chairman Ken Harb, Vice Chairman Dillon Breen, Secretary Nicholas Lomako Rob Donovic MEMBERS ABSENT: Melissa Karolak Jumana Judeh Dan West OTHERS PRESENT: Mark Taormina, Director of Planning Jacob Uhazie, Assistant Planning Director Stephanie Reece, Program Supervisor Benjamin Grier, Director of Finance ROLL WAS CALLED. A quorum was present. APPROVAL OF MINUTES On a motion by Harb, seconded by Lomako, and adopted, it was: #01-2026 RESOLVED, that the Minutes of the 31st Meeting of the City of Livonia Brownfield Redevelopment Authority held November 5, 2025, as amended, are hereby approved. A roll call vote on the foregoing resolution resulted in the following: AYES: Scheel, Harb, Breen, Lomako, NAYS: None ABSENT: Karolak, Judeh, West ABSTAIN: Donovic 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 #24 (W-2025) FOR AUTHORIZED ELIGIBLE EXPENSES Mr. Taormina: Thank you. Livonia Marketplace was the first project that was reviewed by the Brownfield Authority in 2008. It was the reason the Livonia Brownfield Redevelopment Authority April 27, 2026 Page 2 authority was established. I'm happy to announce that this is our final payment, number 24 of 24, to the developer. In this case, the total taxes for capture equaled $111,155.99. You can see the breakdown between what is going to the revolving fund ($22,231) and to the developer ($88,924). You'll also note that the total amount submitted for incurred costs for eligible activities was $4,237,861. To date, since 2014, when the reimbursements commenced, the developer has been paid a total of $3,065,124.76, which is less than the total eligible activity costs incurred. The LBRA limited the reimbursement period to 12 years, which is one reason it fell short of that. Also, the property's total value upon completion was underestimated. Thus, we knew somewhat early on that we would not reach that total, and it's similar to Livonia Commons in that sense. You will also note that we have five years of additional tax increment collection, 100% of which will go directly to the LSRRF, beginning with the Summer 2026 tax collection period. Thank you. Ms. Scheel: Thank you. Mr. Taormina. Are there any questions for Mr. Taormina? Mr. Lomako: Just a really quick one, the remaining five years, 100% of the capture goes to the revolving fund? Mr. Taormina: Yes, 100% of the capture will go to the revolving fund. That's correct. Mr. Lomako: Incredible. That's great. Mr. Donovic: Madam chair, as the newest person here, that's intended, right? We want dollars to go to that revolving fund for the city. Mr. Taormina: Yes. Mr. Donovic: Okay. Mr. Taormina: And that revolving fund, as it continues to grow, it will be up to this body as to how to utilize those funds, working with the administration. Of course, it will have to be limited to eligible brownfield activities Mr. Harb: What about wetlands? Livonia Brownfield Redevelopment Authority April27, 2026 Page 3 Mr. Taormina: That would not qualify. However, what could qualify is demolition and other projects that we may choose to undertake in the future. Ms. Scheel: Any other questions for Mr. Taormina? If not, I need a motion. On a motion by Harb, seconded by Donovic, and unanimously adopted, it was: #02-2026 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 #24 (W-2025) to Livonia Phoenix, LLC, for $88,924.79, for the reimbursement of eligible expenses; and 2) $22,231.20 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? Chairman Scheel declared the motion carried and the foregoing resolution adopted. REVIEW OF LBRA TAX CAPTURE FOR LIVONIA COMMONS AND CONSIDERATION OF TAX INCREMENT FINANCE (TIF) REIMBURSEMENT PAYMENT #22 (W-2025) FOR AUTHORIZED ELIGIBLE EXPENSES. Mr. Taormina: Thank you. This is payment number 22 of 30 overall and 2 of 10, with 100% of the capture going to the revolving fund. Page #2 of the staff report shows all the payments made to the developer, totaling 20. On the right-hand side of the table is a list of the payments now going to the LSRRF. In this case, the total capture is $35,345.98, all of which goes to the LSRRF. I will note that we had to correct the amount of the previous capture. We originally had $54,544 allocated to the LSRRF and administration. Unfortunately, the state taxes were erroneously collected, and upon reviewing the reimbursement agreement and statute, we realized that we cannot capture state school taxes to fund the LSRRF. So, we had to make a journal correction. The money had not been sent, so it was only an accounting correction. No action is needed on the Board's part to make this correction, but I wanted you to be aware of that. Ms. Scheel Thank you. Are there any questions for Mr. Taormina? Mr. Donovic. Mr. Donovic: Mr. Taormina: Mr. Donovic: Mr. Taormina: Mr. Donovic: Mr. Taormina: Mr. Donovic: Ms. Scheel: Mr. Lomako: Mr. Taormina: Ms. Scheel: Mr. Taormina: Ms. Scheel: Livonia Brownfield Redevelopment Authority April27, 2026 Page 4 Madam Chair, so again, as I'm getting kind of spun up on speed here, the next eight payments or so will be going to the revolving fund. That's correct. Okay, so the developer now is paying their traditional taxes. They don't know any difference. They're not receiving any reimbursement. They're not receiving any reimbursement. That's correct. Thank you, sir, thank you. You're welcome. Any other questions? The amendment to the reimbursement agreement is in our packet? I provided you with the amendment for Livonia Market II. There was never an amendment to Livonia Commons that I'm aware of. I know they wanted to, but it was rejected by this body. We turned it down. That's correct. Thanks. Any other questions for Mr. Taormina. If not, I would look for a motion. On a motion by Lomako, seconded by Harb, and unanimously adopted, it was: #03-2026 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) To approve the distribution of captured taxes in connection with Livonia Commons as follows: Payment #22 (W-2025) in the amount of $35,345.98 to the LSRRF. Ms. Scheel: Is there any discussion? Livonia Brownfield Redevelopment Authority April27, 2026 Page 5 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 #14 (W-2025) FOR AUTHORIZED ELIGIBLE EXPENSES. Mr. Taormina: Thank you. This is payment 14 of 22 to the developer. In this case, the total taxes for capture equal $55,732.58. Twenty-five percent is directed to the revolving fund ($13,933.15), and the balance of 75% is paid to the developer ($41,799.44). Each of these differs in the reimbursement period (duration), the amount deposited into the LSRRF, and what's paid to the developer. These aspects of a brownfield project are part of the negotiation process that we go through as we review and approve these plans. Ms. Scheel: Thank you. Mr. Taormina. Any questions for Mr. Taormina? Mr. Donovic. Mr. Donovic: Thank you, Madam Chair. Can you help me understand where, on page one, there is a maximum TIF reimbursement amount of 1.6 million, and the total submitted incurred costs for eligible activities of 2 million and some change? Can you help me understand what those numbers mean and the discrepancy between the two? Mr. Taormina: Final project approval limited the reimbursement amount to $1.6 million. However, the developer demonstrated that they exceeded this amount in total eligible costs. This doesn't mean they're going to get reimbursed for it; it just means that there were more costs incurred for eligible activities than what the Brownfield authority and the City Council approved. Mr. Donovic: Okay, and Madam Chair, if they'd like, they could come back to this board at some timeline and ask for an increase, if they wanted to? Mr. Taormina: Mr. Donovic: Mr. Harb: I don't think there's anything that prohibits them from asking. Okay. Interesting. Thank you, sir. Help me understand how much of the LSRRF would be for administration. Is it 1% or is it arbitrary? Or how do they come up with that? Livonia Brownfield Redevelopment Authority April27, 2026 Page 6 Mr. Taormina: Difficult for me to answer off the top of my head, I'd have to discuss this with both the Finance and the Treasurer's office. Generally speaking, ifs somewhere between 10 and 20% of the of that. Mr. Harb: So, on the previous one, Livonia Commons, it showed a total of 10 payments of $293,000 potentially going into the LSRRF.Is that for administrative as well? Mr. Taormina: A small percentage of that is needed to cover the administrative costs. The vast majority is going into the revolving fund strictly for the purpose of future use towards brownfield eligible activities. Mr. Donovic: That's great. Thank you. Ms. Scheel: Further questions, seeing none, a motion would be in order, On a motion by Lomako, seconded by Harb, and unanimously adopted, it was: #04-2026 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 #14 (W-2025) to Livonia Market II, LLC, for $41,799.44 for the reimbursement of eligible expenses and 2) $13,933.15 for deposit into the Livonia Brownfield Redevelopment Authority's Local Site Remediation Revolving Fund (LSRRF) and to pay for administrative expenses. Ms. Scheel: Any further discussion? Chairman Scheel declared the motion carried and the foregoing resolution adopted. REVIEW OF LBRA TAX CAPTURE FOR HAGGERTY CENTER AND CONSIDERATION OF TAX INCREMENT FINANCE (TIF) REIMBURSEMENT PAYMENT #14 (W-2025) FOR AUTHORIZED ELIGIBLE EXPENSES. Mr. Taormina: This is payment 14 of 28 to the developer, and in this case, it's the reverse of what we just discussed. The maximum TIF reimbursement amount approved was $4.47 million, yet the submitted incurred costs for eligible activities are $3.7 million, so they didn't incur as many costs as they could have for reimbursement through the TIF financing program. Total taxes for Ms Scheel: Mr. Donovic: Livonia Brownfield Redevelopment Authority April27, 2026 Page 7 capture equal $209,221, 20% of which goes to the revolving fund ($41,844) and 80% to the developer ($167,377.26). Thank you. Are there any questions? Mr. Donovic. Thanks, Madam Chair. So, a great point, since there's a difference now, opposite of what we just saw at the last item. What happens there, where it's now exceeded, they only asked for 3.7, but we're paying out 4.4. Mr. Taormina: The reimbursement is capped at what they actually incurred, $3.7 million. And if the total of the reimbursements reaches $3.7 million, let's say two-thirds or three-quarters of the way down the road, that's when payments to the developer will stop. They will have been fully reimbursed for the eligible expenses they actually incurred. Mr. Donovic: Mr. Taormina: Mr. Donovic: Mr. Taormina: Mr. Donovic: Ms. Scheel Mr. Taormina: And then it would, if this Board wants it, it would just go to that fund, basically? That is when 100% of the tax capture goes to the LSRRF. That's correct. Does that also have to be voted on by the City Council or just the board? No. What happens, I believe, when reimbursement occurs ahead of schedule is that the post -five-year disbursement to the LSRRF moves up. We'II verify that that's the case. Thanks, Madam Chair Mr. Taormina, right now we're at 1.283. That's how much we've given back. I think that was the number, yes. Ms. Scheel: Just as long as all members are aware. Keep an eye on it and just watch it once it comes through. Are there any other questions for Mr. Taormina on the subject? If not, a motion's in order On a motion by Harb, seconded by Donovic, and unanimously adopted, it was: Livonia Brownfield Redevelopment Authority April 27, 2026 Page 8 #05-2026 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 #14 (W-2025) to Haggerty Square, LLC in the amount of $167,377.26 for the reimbursement of eligible expenses; and 2) $41,844.31 for deposit into the Livonia Brownfield Redevelopment Authority's Local Site Remediation Revolving Fund (LSRRF) and to pay for administrative expenses. 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 #6 (W-2025) FOR AUTHORIZED ELIGIBLE EXPENSES. Mr. Taormina: This is the plan with the longest duration. In this case, 56 payments or 28 years. You can see that the maximum TIF reimbursement amount was $9.7 million, but the total submitted incurred cost was $5.7 million, so again, lower than what was permitted under the plan. There were some cost savings during the development of this property. They were able to keep much of the soil on site and took other cost -saving measures. Also, the numbers were much more accurate in projecting the true taxable value. We anticipate that this project will pay off sooner rather than later. For this tax capture period, you'll note $259,325: 10% to the revolving fund and 90% to the developer. You can see the numbers below, and I'll answer any questions you may have. Ms. Scheel: Mr. Donovic: Mr. Taormina: Mr. Donovic: Mr. Lomako: Are there any questions for Mr. Taormina? Mr. Donovic. Thanks, Madam Chair. So, the 56 payments, we don't anticipate it'll be 56 payments but will be much less? I think it's going to be fewer. I do believe that. Yes. Thank you, sir. I have a question. If the total taxes of capture are $259,000 Why is the 10% $16,900 and not $25,900? I think 10% should be $25,932, and the 90% should be $233,392. And I notice we have a "not Livonia Brownfield Redevelopment Authority April27, 2026 Page 9 applicable" to the Department of the Treasury, too, for the revolving fund, and before that was applied, wasn't it? I read the minutes of the last meeting involving this case. The Department of the Treasury State Revolving Fund was reimbursed, but not for this period. Mr. Taormina: We'll make sure the numbers are accurately reflected in the reimbursement and the deposits to the revolving fund. The 10% is applied only to the local capture amount. Ms. Scheel: Okay, so do we want to...you'll get back with us with those numbers. Mark? Mr. Taormina: Yes, we'll verify that. Ms. Scheel: We can note that in the resolution. We don't have a motion yet, right? Whoever makes the motion should include it in the resolution, with the correct numbers to be given to the board. Ms. Scheel: Okay, are there any questions for Mark regarding this property? Seeing none. A motion would be in order. On a motion by Donovic, seconded by Herb, and unanimously adopted, it was: #06-2026 RESOLVED, that the City of Livonia Brownfield Redevelopment Authority does hereby approve the distribution of Captured Taxes, with correctly calculated figures, from the Livonia West Commerce Center 2 Project as follows: 1) Payment #6 (W-2025) to Livonia West Commerce Center 2, LLC, in the amount of $242,422.73 to reimburse eligible expenses. 2) $16,902.27 for deposit into the Livonia Brownfield Redevelopment Authority's Local Site Remediation Revolving Fund (LSRRF) and to pay for administrative expenses. Chairman Scheel declared the motion is carried and the foregoing resolution adopted. Ms. Scheel: Any questions? Mr. Lomako: I have a question regarding the motion, because its unclear to me what exactly that means. So, we're just waiting for new numbers before we vote on it, or are we going to... Ms. Scheel: Mr. Breen: Ms. Scheel: Mr. Lomako: Ms. Scheel: Mr. Lomako: Ms. Scheel: Mr. Lomako: Mr. Donovic: Ms. Scheel: Mr. Donovic: Ms. Scheel: Livonia Brownfield Redevelopment Authority April 27, 2026 Page 10 No, we are going to vote on it knowing that corrected numbers are coming our way. The numbers are what they are once we find out what the numbers are. Based on the percentage? Based on the percentage, right. So, we're looking at it as if they're corrected numbers. The computation of it is the same. It's just the actual number may change because of the numbers being incorrectly... Based upon the percentages and the actual capture? Correct. Okay. Correct. That's how I'm looking at it. Alright. Madam Chair, what happens in this scenario? Let's just say this board will table it. Does that mess with the developer and the payout? Is there a certain legal timeline? There are legal timelines that we need to follow. So, unless there was something significant, clarification, because the whole numbers don't necessarily change, it's just like you said, there's a computation that needs to change internally. It might not even be the computation. It might just be, you know, a switching of numbers or something, but if it's just the computation that's simply going back, reviewing, making corrections, getting those corrections to us, and making sure they're noted correctly. Are there any other questions regarding the resolution? ELECTION OF OFFICERS Ms. Scheel: And now we will move on...we're at item number nine. That concluded the business of the captures. We're at the election of officers. So, as we do every year, we elect officers for this board. And in addition to the Livonia Brownfield Redevelopment Authority April 27, 2026 Page 11 Chair, the Vice Chair, the Secretary, the office of Treasurer is also open. Is that correct? Mr. Taormina: That's correct. Ms. Scheel: That was Andrew. So let's start out with nominations for the office of Chair. On a motion by Breen, seconded by Harb, and unanimously adopted, it was: #07-2026 RESOLVED, that Lynda Scheel is hereby appointed to serve as Chairman, Ken Harb is hereby appointed to serve as Vice Chairman, Dillon Breen is hereby appointed as Secretary, and Nicholas Lamako is hereby appointed as Treasurer thru the spring of 2027 or the next time at which a full slate of officers is elected. Chairman Scheel declared the motion is carried and the foregoing resolution adopted. Ms. Scheel: Thank you everyone for agreeing to serve on the Brownfield Authority. Is there any other business that may become before the board? Mr. Taormina: So, this is our Finance Director, Benjamin Grier. Benjamin is pretty new to the world of municipal finance, but has vast experience elsewhere in health care and other areas. Ms. Scheel: So, I have a question. Being that we have our finance chair here, I'm not sure who keeps track of it, whether it's Julie or the finance department, but do we have a balance sheet of what's in the LSRRF? Mr. Taormina: Yes. If you want, we can get an overview of the LSRRF's status at our next meeting. Ms. Scheel: Okay, good time to do that. And that is going to grow quickly, especially now, when you see the money from the Marketplace going in there. Mr. Harb: Livonia Commons is $293,000 over the next eight periods. Ms. Scheel: So, on this LSRRF balance sheet, I want to see the money going in. I want to see what's been taken out for the administration fee or whatever, and what the balance is. So that's what I'm looking for in a balance sheet. Mr. Taormina: Okay. Livonia Brownfield Redevelopment Authority April27, 2026 Page 12 Ms. Scheel: So, welcome, Ben. Thanks for attending our meeting. Hopefully, you can attend our next one. We try to make them short and sweet. Yes, as part of my responsibility, so I will be here. Great. Thank you. Anything else? Mr. Grier: Ms. Scheel: Mr. Taormina: Ms. Scheel: An update on the other...the sixth project that we have, which is 100 West, you'll see that there's quite a lot of construction occurring at the corner of Seven Mile and Victor Parkway. Utilities are being installed. The developer hopes to have the models completed by the end of the summer. In that case, they had some good news and some not -so - good news. The good news was that they were able to store or stockpile and take their soil from the site and place it on that piece of property to the north. This saved the trucking costs. Unfortunately, however, they're encountering even poorer soils than expected, so they had to modify the design of their caissons and geo-piers. Because of this, the costs are likely to go up slightly. So, what they saved by not hauling the soils could very well go into the geo piers. So, we'll get those numbers probably in the next couple of months. Will they be eligible for reimbursement? Mr. Taormina: Up to the maximum, yeah. Those are all eligible activities. Ms. Scheel: But will they...they won't come on in our November meeting? Won't they be till spring? Mr. Taormina: No, the reimbursement begins in 2027. Ms. Scheel: Okay. Mr. Taormina: Yeah, they want to get the value of the property as high as possible before they start capturing. Mr. Donovic: Thanks, Madam Chair. Mr. Taormina, in that event, what happens if the developer says these costs are higher than we initially planned for, and we're trying to balance elsewhere, but it's still coming up short? In that scenario, are they allowed to come back before the Brownfield board and Council to ask for an increase, or how does that... Mr. Taormina: Yes, they would. The amendment request would start with this Board, with a recommendation passed on to Council for its consideration. Mr. Donovic: Mr. Taormina: Mr. Donovic: Mr. Harb: Mr. Donovic: Livonia Brownfield Redevelopment Authority April27, 2026 Page 13 So, when do you think someone like that would do that? A few years from now? Sooner rather than later? Sooner rather than later. It's not something we want to wait on. You don't want to wait until year five. We've turned down people before. Sure. I wasn't sure how that process works. Do they wait till all costs are incurred and they have a better idea, or crunch your numbers now and come to us as soon as possible? Thank you, sir. Ms. Scheel: Anything else from anyone? Mr. Lomako: I have a question. A long time ago, we were discussing using brownfield funds for a library demolition. Is anything happening with the library? Mr. Taormina: Well, nothing is happening in terms of any specific plans, and nothing with this Board at this point in time. An RFQ will go out sometime in May. I don't know the exact date, but the mayor has appointed a task force. That task force was charged with preparing a request for qualifications to seek a developer and partner for the property. The RFQ will go out, like I said, around May, and depending on the response and what the City Council is willing to consider, along with the direction they provide, something could find its way back to this body for consideration. Mr. Lomako: Mr. Taormina: Mr. Harb: Ms. Scheel: Mr. Taormina: Okay. We don't know. Time will tell. We'II see what kind of creative proposals we get from the development community and go from there. Isn't that committee supposed to make the recommendation soon? They have to have the RFQ first. The RFQ is in its final stage of completion. They should have that done, as I said, and out in the next couple of weeks, and I'm not sure how much time they're going to allow for it for a response. Livonia Brownfield Redevelopment Authority April 27, 2026 Page 14 Ms. Scheel: But there is a standing motion out there. The Brownfield approved up to a certain dollar amount for the demolition of Noble, and that amount is just sitting there. It's been approved. Okay, anything else? If not, I need a motion to adjourn. On a motion duly made, seconded, and unanimously adopted, the 31st Meeting held by the City of Livonia Brownfield Redevelopment Authority on April 27, 2026, was adjourned at 3:37 p.m. Dillon Breen, Secretary