HomeMy WebLinkAboutLBRA MINUTES 2015-05-27 (2)MINUTES OF THE NINTH MEETING OF THE
CITY OF LIVONIA BROWNFIELD REDEVELOPMENT AUTHORITY
The Ninth Meeting of the Brownfield Redevelopment Authority of Livonia was called
to order at 5:00 p.m. on Wednesday, May 27, 2015, by Chairman Jack Engebretson.
MEMBERS PRESENT
MEMBERS ABSENT
Jack Engebretson, Chairman
Lynda Scheel, Vice Chairman
Joe Taylor, Treasurer
Ken Harb, Secretary
Paul Condon
Kathleen E. McIntyre
Enrico Soave
Bill Fried
OTHERS PRESENT: Mark Taormina, Planning & Economic
Development Director
Michael Slater, Director of Finance
Karl Zarbo, Lormax-Stern
Margie Watson, Planning Department
ROLL WAS CALLED. A quorum was present.
Engebretson: As you all know, I think you have a copy of the letter from the
Mayor thanking Mr. Cambridge for his service to the LBRA. He is
moving on to bigger and better things in his legal practice, and will
not be joining us tonight or in the future. So we thank him for his
service and the contribution that he made.
APPROVAL OF MINUTES
On a motion by Scheel, seconded by Condon, and adopted, it was:
#01-2015 RESOLVED, that the Minutes of the Eighth Meeting of the City of
Livonia Brownfield Redevelopment Authority held November 12,
2014, are hereby approved as submitted.
Engebretson: Is there any discussion?
Condon: I just want to say how complete those minutes are. I don't know
exactly who is doing them, typing them up. Margie?
Engebretson: Margie.
Condon: Excellent job. They are very, very easy to follow. Thank you.
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May 27, 2015
Page 2
Engebretson: I think I made similar comments to that issue last time. These
minutes really are done exceptionally well. So thank you, Margie,
for that.
Watson: Thank you.
A roll call vote on the foregoing resolution resulted in the following:
AYES: McIntyre, Scheel, Condon, Taylor,
Harb, Engebretson
NAYES: None
ABSENT: Fried
ABSTAIN: Soave
Mr. Engebretson, Chairman, declared the motion is carried and the foregoing
resolution adopted.
REVIEW OF LBRA TAX CAPTURE FOR LIVONIA MARKETPLACE AND
CONSIDERATION OF REIMBURSEMENT PAYMENT #2 (W-2014) FOR
AUTHORIZED ELIGIBLE EXPENSES.
Engebretson: Mr. Zarbo is with us. We're going to turn first to Mr. Taormina and
then to Mr. Slater and then to Mr. Zarbo for this comments.
Mr. Taormina: Thank you, Mr. Chairman. This reimbursement request covers the
Winter 2014 tax collection period and marks payment #2 to the
Developer of the Livonia Marketplace, Livonia Phoenix, L.L.C. I will
just cover some of the main points very briefly. We look at the total
taxable value of all the real and personal property and then make
adjustments to determine the incremental value for capture and
disbursement. For Winter 2014, the total is $13,425,660. Of that,
over two-thirds is accounted for by real property, $10,190,840, and
about $3.2 million in personal property. We then make an
adjustment for TURBO, which is identified on the spread sheet as
the Retained Real Property Value. Then we include the personal
property value and subtract the base value, and that gives us the
amount that we utilize for figuring out the incremental tax, which
ends up being a value of about $2.6 million. Next, the winter tax
rate is applied of 16.42 mils, the total tax capture is $43,217.00. Of
this, 20 percent or $8,643.58 goes to the LSRRF, which is the
Revolving Fund, and the balance, 80 percent or approximately
$34,574.00, goes to the Developer. I will note that this is the last tax
collection period where TURBO will be factored. When we go back
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May 27, 2015
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for the Summer 2015 collection, we're going to be looking at some
substantially different numbers, higher numbers for disbursement,
because it doesn't factor in TURBO. You will recall that for the first
year of TURBO, they were exempt 100 percent, and then the
ensuing five years there was a 50 percent reduction. With that, I'll
answer any questions or if Mike wants to add anything at this point.
Engebretson: Are there any questions of Mark, or should we turn to the Finance
Director first?
Slater: I really don't have much to add. Mark did a great job. I'll be happy
to answer any questions.
Taormina: One other point. The numbers are different from the summer
collection period mostly because of the difference in the applied
millage rate. The value is essentially the same, only a slight
difference, but the tax rates between summer and winter are
substantially different.
Engebretson: Thank you, Mark. Karl, would you like to join us at the table here
and make any comments you feel are appropriate?
Zarbo: Thank you. Karl Zarbo, Director of Operations for Lormax Stern
Development Company. We are the owner/manager/operator of the
Livonia Marketplace. I'd be happy to answer any questions you
may have.
Condon: Can you update us like you usually do on what's going on with the
property?
Zarbo: Let's start with the building that has Petco in it currently. Last week
we completed and turned over a 10,000 square foot box to Dollar
Tree. They are looking to open on or about July 1. Across the pond,
the famous pergola that was built, whose name shall go
unmentioned, and the Coney Island building, we have a Hibachi
Grill under construction. It's kind of a Japanese buffet restaurant.
We've been hit by bankruptcies as I'm sure some of you have seen.
We had a Radio Shack that went out with bankruptcy and a Dots
that has gone out due to a bankruptcy. So we gained two and lost
two. We're sort of treading water. We have just surfaced and it was
really last week in Las Vegas, some interest again in that former
Baker's Square out parcel. We're getting them as cranked up as we
can to figure out what the storm water management component is.
That's killed virtually every deal we've had in the last 2.5 years. So
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May 27, 2015
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we don't know where that will go, but we need somebody that gets
excited enough about this site to be willing to absorb those costs or
see, if possibly with some changes in Wayne County. I don't know if
anybody is going to revisit that. Across the street at Livonia Market
2, again, last week in Las Vegas we surfaced with some interest
with two people who would split that building 55,000 and 55,000.
It's very preliminary. We have previously had discussions with both
of them. We may do one out parcel there also. We have a little bit
of the same problem. The issue is the cost of storm water
management. The way that building sits, the only place to put a
storm water pond really would be at that southwest corner.
Condon: By the Art Van parking lot?
Zarbo: Yes. Where the trucks used to park.
Condon: And thank you very much for that. I appreciate that.
Zarbo: It's a battle. I won't say we've won, but we're winning. And that
pond is fairly significant because where the pond would go, is not
the way the water wants to flow. So there's some significant cost
with managing that water. That's kind of where we're at. We've
struggled with that site I would tell you honestly probably more than
we had thought. We're almost 99 percent leased across our entire
portfolio. That's as much vacancy as we experience. We keep
picking away at it, but as I've indicated, we've signed two and we've
lost two to bankruptcy. And the bankruptcies aren't a reflection on
Livonia or the site. I think everybody read about both of them.
We're still pretty bullish and keep picking away at it.
Engebretson: Thank you for the good job over there, Karl. And regarding the
property across Seven Mile Road, those words are very exciting
even though the site has many challenges in addition to the storm
water management issues. In time that will develop also. I feel very
confident in it that with your team involved, we'll see something as
exciting on that side of Seven Mile Road as we see on the north
side.
Zarbo: Yeah, we're bullish and we're not going anywhere.
Engebretson: We're glad for that. We're not either, and we're equally bullish.
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Taylor: I'm sure you know, Karl, that the shopping center across the street
is being redone. It looks like they're going to do a nice job on it.
That will help that area.
Zarbo: We actually took a couple runs at buying that back a few years ago
and it just didn't pan out. It would have been a nice acquisition with
the former Farmer Jacks but it just didn't happen.
Taylor: I'm sorry. You may have mentioned the restaurant but I didn't hear
it. Is anything going in where the old pie shop restaurant was
located?
Zarbo: No. What we mentioned is that we have someone taking a look at
it. It's a national. They're excited about the site. They have our
whole package. The meetings went very, very well. I don't think
they've figured out the storm water management piece. I'm sure
when their civil engineers take a look at it and have a conversation
with the team here, we'll have to jump start that.
Taylor: Thank you.
Engebretson: Anything else? If there are no further comments or questions, a
motion would be in order. The staff has prepared a
recommendation taking care of the obligations that we have under
the terms and conditions of this agreement. Kathleen, do you have
the prepared resolution? Do you want to offer it?
McIntyre: Yes, I would like to offer the resolution if I may.
Engebretson: You are recognized for that purpose.
On a motion by McIntyre, seconded by Scheel, and unanimously adopted, it was:
#02-2015 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 #2 (W-2014) to the owner of the Livonia
Marketplace, Livonia Phoenix, L.L.C., in the amount of
$34,574.34 for the reimbursement of eligible expenses
related to the redevelopment of the Former Livonia Mall
Site; and
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2. A deposit of $8,643.58 into the Livonia Brownfield
Redevelopment Authority's Local Site Remediation
Revolving Fund.
Mr. Engebretson, Chairman, declared the motion is carried and the foregoing
resolution adopted. The matter will be taken care of just in the
nick of time, Karl. I think we had another day or two to go, but
this is the way it was planned to be.
Zarbo: Thank you very much.
ELECTION OF OFFICERS
Engebretson: Everybody that is an officer presently is still active. The
question is, does anybody want to change?
Condon: Are you willing to continue? Which officer doesn't want to
continue?
Engebretson: Let's do this one at a time. Paul, why don't you get us going?
Condon: I would like to offer the name of Jack Engebretson to continue
as Chairman if he so desires.
On a motion by Condon, seconded by Scheel, and unanimously adopted, it was:
#03-2015 RESOLVED, that Jack Engebretson is hereby re -appointed to
serve as Chairman 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 by McIntyre, seconded by Soave, and unanimously adopted, it was:
#04-2015 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.
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May 27, 2015
Page 7
On a motion by Scheel, seconded by Soave, and unanimously adopted, it was:
#05-2015 RESOLVED, that Joe Taylor is hereby re -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.
On a motion by Taylor, seconded by Condon, and unanimously adopted, it was:
#06-2015 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.
Engebretson: Is there any other business to come before the Board?
McIntyre: Did you say we had a copy of the resignation letter?
Engebretson: I don't know if it was distributed or not, but I'll read it to you. This
letter was dated January 5, 2015, and is address to Jim
Cambridge and signed by the Mayor. It is regarding his
resignation from the Livonia Brownfield Redevelopment
Authority. "Mr. Cambridge: I have received and do hereby
accept your resignation from the Livonia Brownfield
Redevelopment Authority effective December 19, 2014, due to
your appointment to the Civil Service Commission. Permit me to
take this opportunity to express, on behalf of the people of our
community, our sincere appreciation for all your efforts and
contributions as a member of the Livonia Brownfield
Redevelopment Authority. During your six years of service on
the Authority, you have been an integral part of the group. I
appreciate your conscientious approach to dealing with matters
brought before the Authority. 1 look forward to continuing the
working relationship with you and the Civil Service
Commission." So that's the letter. Is there anything else?
Taormina: I would like to let everyone know that when we convene our
next meeting, it will also include the first disbursement payment
to Livonia Commons. So at upcoming meetings, we will be
looking at both projects, Livonia Marketplace and Livonia
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May 27, 2015
Page 8
Commons. Livonia Commons is the old Walmart building on
Middlebelt and Schoolcraft which is now Dick's Sporting Goods
and Jo -Ann Fabrics.
Engebretson: Thank you for that heads up, Mark.
On a motion by Scheel, seconded by Taylor, and unanimously adopted, the Ninth
Meeting held by the City of Livonia Brownfield Redevelopment Authority on May
27, 2015, was adjourned at 5:20 p.m.
Ken Harb, Secretary