HomeMy WebLinkAboutLBRA MINUTES 2017-11-01 MINUTES OF THE 15th MEETING OF THE
CITY OF LIVONIA BROWNFIELD REDEVELOPMENT AUTHORITY
The 15th Meeting of the Brownfield Redevelopment Authority of Livonia was
called to order at 5:00 p.m. on Wednesday, November 1, 2017, by Chairman
Engebretson.
MEMBERS PRESENT: Jack Engebretson, Chairman
Lynda Scheel, Vice Chairman
Ken Harb, Secretary
Heather Douglas
Andrew Lendrum
Kathleen E. McIntyre (5:03)
MEMBERS ABSENT: Bill Fried
OTHERS PRESENT: Mark Taormina, Planning & Economic
Development Director
Michael Slater, Director of Finance
Barbara Gamber, Economic Development Coordinator
Karl Zarbo, Lormax Stern Development Company
Margie Watson, Planning Department
ROLL WAS CALLED. A quorum was present.
APPROVAL OF MINUTES
On a motion by Scheel, seconded by Harb, and adopted, it was:
#11-2017 RESOLVED, that the Minutes of the 14th Meeting of the City of
Livonia Brownfield Redevelopment Authority held September 6,
2017, are hereby approved as submitted.
A roll call vote on the foregoing resolution resulted in the following:
AYES: Scheel, Harb, Lendrum, McIntyre, Engebretson
NAYES: None
ABSENT: Fried
ABSTAIN: Douglas
Mr. Engebretson, Chairman, declared the motion is carried and the foregoing
resolution adopted.
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REVIEW OF LBRA TAX CAPTURE FOR LIVONIA MARKETPLACE AND
CONSIDERATION OF TAX INCREMENT FINANCE (TIF) REIMBURSEMENT
PAYMENT #7 (S-2017) FOR AUTHORIZED ELIGIBLE EXPENSES.
Engebretson: Mark, are you going to introduce this one?
Taormina: Yes. This represents payment #7 to the developer of the Livonia
Marketplace, and it coincides with the Summer 2017 tax
capture. Pursuant to the approved Reimbursement Agreement
and Brownfield Redevelopment Plan, the LBRA is obligated to
make regular biannual payments following the City's collection
of both winter and summer taxes. Final payment occurs upon
fulfillment of all outstanding reimbursement requests up to $6.6
million dollars, but in no event later than tax increment revenues
collected through the Winter 2025 tax bill, whichever occurs
first. The Total Taxable Value of all the real and personal
property as of December 31, 2016, for the Livonia Marketplace
project totaled $11,227,351. This represents an increase over
last year's total of $10,948,820 in an amount equal to $278,531,
or roughly 2.5%. The total Taxable Value includes $8,828,551 in
real property and $2,398,800 in personal property. Again, we
capture both real and personal in the case of Livonia
Marketplace. For Summer 2017, the total taxes for capture
equals the sum of the real property capture, $113,041.11, plus
the personal property capture, $62,572.80, for a total of
$175,613.92. Of this, $35,122.78 (20%) will be deposited to the
LSRRF to pay for administrative costs, and the balance,
$140,491.13 (80%) is eligible to go to the Developer. We note
that this does not include the Zoo Authority or the Art Institute.
Additionally, unpaid taxes totaling $16,417.96, once collected,
will carry over to the Winter 2017 distribution. We have provided
a staff recommendation and a prepared resolution, and we also
have provided a running total of the disbursements that have
gone both to the LSRRF as well to the Developer.
Engebretson: Thank you, Mark. Are there any questions or comments? Also,
Marge, let the record show that Ms. McIntyre joined us at 5:03.
Mr. Slater, do you have any comments to add?
Slater: No. Mark has done it perfectly.
Engebretson: Everything is in order?
Slater: Yes.
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Engebretson: Karl?
Karl Zarbo, Director of Operations, Lormax Stern Development Company, 38500
Woodward Avenue, Suite 200, Bloomfield Hills, Michigan
48304. No. It's gotten fairly routine at this point, and we
appreciate all the assistance.
Engebretson: Heather, do you have any questions? You've studied all this,
right?
Douglas: A little bit. It's going to take a little bit.
Engebretson: We have a recommendation from the Planning Director to move
on this.
Scheel: Are you waiting for a motion?
Engebretson: Yes.
On a motion by Scheel, seconded by McIntyre, and unanimously adopted, it was:
#12-2017 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 #7 (S-2017) to the "Owner" of the Livonia
Marketplace, Livonia Phoenix, LLC, in the amount of
$140,491.13 for the reimbursement of eligible expenses
related to the redevelopment of the Former Livonia Mall
Site; and
2. A deposit of $35,122.78 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.
Brownfield Redevelopment Authority
November 1, 2017
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REVIEW OF LBRA TAX CAPTURE FOR LIVONIA COMMONS AND
CONSIDERATION OF REIMBURSEMENT PAYMENT #5 (S-2017) FOR
AUTHORIZED ELIGIBLE EXPENSES
Engebretson: The representative on this item is unable to be with us tonight,
so Mark, we'll start with you.
Taormina: This project is pretty much on autopilot as it relates to these
biannual tax increment revenue payments. This request is for
TIF reimbursement Payment #5 to the developers of the Livonia
Commons shopping center, which is the development on
Middlebelt Road and 1-96. The project is anchored by Dick's
Sporting Goods and JoAnn Fabrics as well as other tenants that
we identify in the report. This is Payment #5 which coincides
with the 2017 Summer tax collection. The Livonia Commons
Brownfield Plan captures only the incremental taxes on the real
property. We do not collect personal property for TIF distribution
back to the developer. For the 2017 tax year, the taxable value
of all the real property at Livonia Commons totaled $3,026,533,
representing an increase of 10.48% from the previous year's
taxable value of $2,739,280. Subtracting the established base
value of $1,740,800 results in a total Incremental Value for
Capture of $1,285,733. Applying the tax rate for capture,
28.4471 mils, generates a total capture of $36,575. Of this,
$32,718.18 is paid to the Developer, and $3,857.20 (equal to 3
mills of State Education Tax capture) goes to the Michigan
Department of Treasury for its revolving fund. That is a statutory
requirement. There is a slight adjustment in this disbursement to
account for about a $2,000.00 adjustment from December 2016.
We inadvertently omitted the Wayne County RESA
Enhancement millage from the W-2016 capture. So we are
adding that back in. The resolution is for the disbursement of
$34,715.14 to the developer and $3,857.20 to the Michigan
Department of Treasury. Mike has provided all the details
relative to the capture involving this property.
Engebretson: Mark, can you comment further on the 3 mills State Education
Tax capture? I don't understand exactly what's going on there.
Taormina: That is a statutory requirement. The State, like the
municipalities, have their own revolving fund that can be used
for other brownfield eligible properties. I don't know how they
use that fund, but it is something that we are required to pay
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back to the State as part of our tax capture. Maybe Mike can
add to that.
Slater: The rules between the time we did Marketplace and the time we
did Commons changed at the State level. Whereas we didn't
have that requirement for Marketplace when we approved the
Brownfield Plan, the State's requirements at that time was 6 mill
State Education Tax. We're only eligible to collect 3 mills of that
for reimbursement. The other 3 goes back to the State.
Engebretson: Thank you. You made that very clear and anticipated my
question because it was going back to the other operation and
don't remember ever seeing that before. Maybe we've seen it
before for this particular site. It just kind of stood out. Maybe it
stood out because you highlighted it in the packet here and in
your comments.
Slater: It's only once a year so you would have seen this only a couple
times.
Engebretson: Ms. McIntyre, do you have a question?
McIntyre: I do have a question - to ask for a memory refresher as to why
with Livonia Marketplace we have both real and personal in the
agreement, and then with the Commons, we just have real.
Slater: That was what was agreed upon when we negotiated the
agreement. Frankly, I think we got smarter because the
personal property part of this, you get 10-15 businesses and
sometimes they pay, sometimes they don't. For a very small
amount of money, it complicates the whole process. They have
different tax rates.
McIntyre: Okay. I was thinking it had just been a difference in what we
negotiated. There was no change in the Brownfield statute that
doesn't allow personal to be eligible.
Slater: No. We could have done it. It's small dollars, and our preference
going forward is not to capture the personal.
McIntyre: Just take real.
Slater: Yes.
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Taormina: Another factor is a lot of these are exempt under today's taxes. I
mean if you look at the . . .
McIntyre I was wondering too.
Taormina If you look at all the ones that are not included, there's no
values included. Those all have a taxable value below $40,000.
McIntyre: They don't pay anything.
Taormina: That's correct.
McIntyre: We knew the answer would be good.
Taormina: Both of these projects have been audited by the MEDC. They
audited Livonia Marketplace two years ago and they're in the
process right now of auditing the Livonia Commons project.
Engebretson: Anything else, folks?
On a motion by Harb, seconded by McIntyre, and unanimously adopted, it was:
#13-2017 RESOLVED, that the City of Livonia Brownfield Redevelopment
Authority does hereby approve the distribution of Captured
Taxes from the Livonia Commons Project as follows:
Payment #5 (S-2017) to the "Owner" of Livonia
Commons, TMA-LIVCOM, L.L.C., in the amount of
$34,715.14 for the reimbursement of eligible expenses,
and $3,857.20 to the Michigan Department of Treasury
equal to 3 mills of the State Education Tax capture for
payment into the State Brownfield Redevelopment
Fund.
Mr. Engebretson, Chairman, declared the motion is carried and the foregoing
resolution adopted.
Engebretson: Is there anything else to come before the Board? I'd like to ask
a question. Do we have anybody in the stream to fill any of the
vacancies that we have on this Board? Don't we have
authorization for nine and we have seven members.
Taormina: I don't think there are any pending right now. I know we have a
full Board. Originally, did we have nine?
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Engebretson: Yes.
Taormina: Let me go back. I think we changed the bylaws to allow for
seven. Now there may be an opportunity to have up to nine and
I don't know what the Mayor's intention is.
Engrebertson: You may be right, Mark. I went back to some of the original work
and it started out as nine. Okay. Any other questions for staff or
anybody else?
Scheel: Are we supposed to review this new email sheet to make sure
it's correct and then let Marge know?
Engebretson: I remember yours. It had two "II's" and now it's correct. I don't
have my Time Warner address anymore. So that's good.
Everybody take note of several new email addresses here. If
there is nothing else, then a motion to adjourn would be in
order.
On a motion by McIntyre, seconded by Scheel, and unanimously adopted, the
15th Meeting held by the City of Livonia Brownfield Redevelopment Authority on
November 1, 2017, was adjourned at 5:16 p.m.
44/k7
Ken Harb, Secretary