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HomeMy WebLinkAboutApril 21, 2021 - 22nd Meeting signedMINUTES OF THE 22ndt MEETING OF THE CITY OF LIVONIA BROWNFIELD REDEVELOPMENT AUTHORITY The 22nd Meeting of the Brownfield Redevelopment Authority of Livonia was called to order at 5:09 p.m. on Wednesday, April 21, 2021, by Chairman Engebretson via the Zoom Platform due to the COVID-19 pandemic. MEMBERS PRESENT: Jack Engebretson, Chairman Lynda Scheel, Vice Chairman Ken Harb, Secretary Bill Fried, Treasurer Andrew Lendrum Steven Vandette Dillon Breen Nicholas Lomako Melissa Karolak MEMBERS ABSENT: None OTHERS PRESENT: Mark Taormina, Planning &Economic Dev. Director Stephanie Reece, Program Supervisor Jacob Uhazie, Planning & Economic Dev. Coordinator Jordan Jonna, Jonna Construction Robert Skebo, National Real Estate ROLL WAS CALLED. A quorum was present. APPROVAL OF MINUTES On a motion by Scheel, seconded by Harb, and adopted, it was: #01-2021 RESOLVED, that the Minutes of the 21St Meeting of the City of Livonia Brownfield Redevelopment Authority and held October 28, 2020, are hereby approved as amended. A roll call vote on the foregoing resolution resulted in the following: AYES: Breen, Lendrum, Lomako, Harb, Vandette, Scheel, Fried, Karolak, Engebretson NAYS: None ABSENT: None ABSTAIN: None Mr. Engebretson, Chairman, 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 #14(W-2020) FOR AUTHORIZED ELIGIBLE EXPENSES Livonia Brownfield Redevelopment Authority April21, 2021 Page 2 Mr. Taormina: Thank you. This is payment number 14. It corresponds with the Winter 2020 tax collection period. Current taxable value of Livonia Marketplace totals $11,900,034. This breaks down to $9,722,734 roughly in real property value and about $2.2 million in personal property value. The incremental value for capture is $6.3 million. The Winter 2020 tax period, the captured amount totaled $98,930.01. That is split roughly $64,000 real property collection and $34,000 in personal property taxes. It is interesting. You can see 2/3 is devoted to real property, whereas 1/3 is in personal property. The millage applied to that is 15.7 mills. There was a small amount of delinquent taxes that we collected and that increases the total capture to $99,147.20, The split between the developer and the LSRRF is 80120. That results in $79,329.76 going to the developer and $19,817.44 to the LSRRF. That is the breakdown. Mr. Engebretson: Thank you. Are they any questions for the Planning Director? If not, a motion would be in order. On a motion by Lomako, seconded by Vandette, and adopted, it was: #02-2021 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 #14 (W-2020) to the "Owner" of the Livonia Marketplace, Livonia Phoenix, LLC, in the amount of $79,329.76 for the reimbursement of eligible expenses related to the redevelopment of the Former Livonia Mall Site; and 2) A deposit of $19,817.44 into the Livonia Brownfield Redevelopment Authority's Local Site Remediation Revolving Fund (LSRRF). A roll call vote on the foregoing resolution resulted in the following: AYES: Scheel, Lomako, Lendrum, Harb, Vandette, Breen, Fried, Karolak, Engebretson NAYS: None ABSENT: None ABSTAIN: None Livonia Brownfield Redevelopment Authority April21, 2021 Page 3 Mr. Engebretson, Chairman, 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 #12 (W=2020) FOR AUTHORIZED ELIGIBLE EXPENSES. Mr. Taormina: This is our second Brownfield project. It is Livonia Commons located at Middlebelt Road just south of Schoolcraft. Many of you know this shopping complex. It contains the Dicks Sporting Goods. It is probably the most obvious tenant within that complex. For the 2020 winter tax collection, the taxable value of the real property at the Commons total $3.22 million. This is an increase over the taxable value from the previous year and the year prior to that. Small increases each year. We are only collecting real property on this and the other two that we will review after this. The base value for the Livonia Commons is $1.7 million. Resulting in an incremental value for capture of $1.4 million. The tax rate is 25,4972 mills. This generates a total tax capture of $37,826.93. This is all distributed to the developer per the disbursement agreement. Mr. Engebretson: Any questions for the Planning Director? Mr. Vandette: I have a question for Mark, it's about the capture of the mills for the schools. This one is unique that it does capture nine mills for the schools. Why is that and is that unique to this one or is it ... because none of the others... Mr. Taormina: It is not unique to this project. I would have to go back and look at which ones it applies to. I believe the Haggerty Center does to a limited extent. This one had DEQ response activities. You were probably not a part of the original Brownfield plan approval. This is a site of a previously contaminated gas station and dry cleaners. The majority of the eligible expense are related to environmental response activities, which is the reason why the capture includes school taxes. Mr. Vandette: That is an option when the project is being considered? That is an option? Mr. Taormina: The other projects fall into a category of what is referred to as local only. Only local taxes are collected to pay the eligible expenses. Livonia Brownfield Redevelopment Authority April21, 2021 Page 4 In this case they were eligible to seek the approval of the MSF (Michigan Strategic Fund) for the capture of school taxes. They did that. It was approved by the MSF and that is the reason why it is included in the capture. Mr. Vandette: Okay. Mr. Engebretson: I enjoyed the question and the response. You did your homework. Good job, Steve. Any other questions or comments? If not, a motion would be in order. On a motion by Lomako, seconded by Harb, and adopted, it was: #03-2021 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 #12 (W-2020) to the "Owner" of Livonia Commons, TMA-LIVCOM, LLC, in the amount of $37,826.93 for the reimbursement of eligible expenses. A roll call vote on the foregoing resolution resulted in the following: AYES: Lomako, Fried, Lendrum, Harb, Breen, Vandette, Scheel, Karolak, Engebretson NAYS: None ABSENT: None ABSTAIN: None Mr. Engebretson, Chairman, declared the motion is carried and the foregoing resolution adopted. REVIEW Or. OF LBRA TAX CAPTURE FOR LIVONIA MARKET II AND CONSIDERATION OF TAX INCREMENT FINANCE (TIF) REIMBURSEMENT PAYMENT #4 (W-2020) FOR AUTHORIZED ELIGIBLE EXPENSES. Taormina: Thank you. This is payment number four to the developer of Livonia Market II. This is the project located on the south side of Seven Mile Road directly across from Livonia Marketplace. Same developer, Lormax Stern. This is the location of the LA Fitness and other smaller retailers. For this project, the eligible expenses are limited to $1.6 million. The taxable value of the real property totals $3.982 million. Removing the base value of $1.3 million Livonia Brownfield Redevelopment Authority April21, 2021 Page 5 from that results in an incremental value for capture of $2.676 million. The tax rate is 16.4972. That reflects that this is a local only capture. A total of $44,154.15 is what was captured. The split here is 75/25. 75% will go to the developer and 25% goes to LSRRF. The amounts are $11,038.54 to the LSRRF and $33,115,61 to the developer. I would point out that for each one of these projects, we maintain a running total of all the payments going to the developer and the LSRRF. That does not apply in the case of the Livonia Commons. You will see what the totals are. For example, in this case, after the fourth payment the developer will have received from tax increment revenues, $112, 964.34 and the LSRRF will have been funded in the amount of $37,654,68. Each of these projects varies both in payment numbers and those amounts and the percentages. Those are all things that are negotiated as part of the Brownfield Plan and Reimbursement Agreement. Mr. Engebretson: Thank you, Mr. Taormina. Any questions or comments? If not, a motion would be in order. On a motion by Scheel, seconded by Fried, and adopted, it was: #04-2021 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 #4 (W-2020) to Livonia Market II, LLC in the amount of $331115.61 for the reimbursement of eligible expenses as approved in the Brownfield Plan; and 2) A deposit of $11,638.54 into the Livonia Brownfield Redevelopment Authority's Local Site Remediation Revolving Fund (LSRRF). A roll call vote on the foregoing resolution resulted in the following: AYES: Lomako, Fried, Lendrum, Harb, Breen, Vandette, Scheel, Karolak, Engebretson NAYS: None ABSENT: None ABSTAIN: None Mr. Engebretson, Chairman, declared the motion is carried and the foregoing resolution adopted. Livonia Brownfield Redevelopment Authority April21, 2021 Page 6 Melissa Karolak left the meeting at 5:40 P.M. REVIEW OF LBRA TAX CAPTURE FOR HAGGERTY CENTER AND CONSIDERATION OF TAX INCREMENT FINANCE (TIF) REIMBURSEMENT PAYMENT #4 (W-2020) FOR AUTHORIZED ELIGIBLE EXPENSES. Mr. Taormina: Thank you. This project and the last project are on the same schedule for reimbursement. This is payment number four. The base value prior to redevelopment was $844,500. The taxable value of all the property at Haggerty Center as of December 31, 2020 was $2.267 million. You subtract the base value out from the current taxable value and that gives us the incremental value for capture which is $1,423 million. The tax capture rate here is 16,4972 mills. That generates a total of $23,478 in capture. The split is 80120. About $18,700 goes to the developer and $4,695 goes to the LSRRF. Mr. Jordan is here, and he can give you an update on the project. (Inaudible) Mr. Engebretson: Mr. Jonna, did you want to make any comments? Jordan Jonna, Jonna Construction. Thank you. I did have the pleasure of taking a few of the city officials around the new project at Haggerty Center. We officially came up with the name for the project. It is called Live Livonia. That is the website. It is up and running right now. We are definitely behind schedule; I will tell you that much. COVID shutting down construction for about two months in the beginning of spring last year throws a wrench into everything. We thought we would be done with the project by now. We are behind schedule. We are finishing as quick as possible. We will have full C of O's on ... C of O on building C, which is the building closest to the shopping center there and we are about two months after that for building D. The center is running at full (inaudible). It has been a difficult go for the retailers with COVID in the mix. All in all, the center and the whole project is underway. We have been delayed and I think the whole world has been delayed on a lot of things. All in all we are very happy with the look of the project. I hope you guys are too. As far as the dirt and the Brownfield, I will tell you that even the contractor out there has said that this is the most difficult earthwork that they have ever run into. This was a borrowing pit from when they were building 1-275 a long time ago. There were things we ran into in the dirt that we are still unbelieved by. We did make a ton of improvements to get this project into the ground. All in all I think the project looks amazing. We are excited Livonia Brownfield Redevelopment Authority April21, 2021 Page 7 to get this done. We are bummed that this is delayed. I would have liked to have been at least (inaudible) especially the multi- family portion of it. The retail is already leased. We go from there. I am happy to answer any questions. If anyone would like to come out to the site to see the project, I would be more than happy to show anyone. I brag about this project. It has been a great partnership with the city. To get this project underway, it sat vacant for a long time, and we are excited to finally open the multi- family side. Mr. Engebretson: Jordan, I would like to come out and see it. Hopefully, Mr. Taormina can be the facilitator of that if there are others that are interested. Maybe we can all do it at the same time so that we don't dribble your faucet a drop at a time over time and just flush it all at once and get it done. Mr. Taormina, I would respectfully ask you to be prepared for others to be interested and then for you to make arrangements with Mr. Jonna to go out and see it. I am sure you are one of those that has been there. You can see it again. You can always learn something. Any other comments or questions? Mr. Vandette: I live in the area and go by there all the time and I think it is a great mix of retail and restaurants that are in there and I think these are condo's, right? Mr. Jonna: They are multi -family. Mr. Vandette: They look great. I think they turned out really really well, but what I would like to now is, there is a road down the back that dead ends at the Costco gas station. Right now, there is some kind of barricade. Is that going to be opened up in the future? Is that going to be permanently barricaded? If so, what is the purpose of that if it is going to be barricaded? Mr. Donna: No. Right now, we keep it closed on purpose because of how much pedestrian traffic will come through there. It is just not good for the construction site with accidents and whatever construction liability there is. Once it is open, the barricades will come down and we will open up the whole road. Mr. Vandette: We are talking about the same road? The one that comes down the back next to the detention basin, right? Livonia Brownfield Redevelopment Authority April21, 2021 Page 8 Or. Jonna: Yes. Near the end of the development. That will be open once the whole project is opened up. Right now, it is too much of a liability with construction. Mr. Vandette: I was just curious. Thank you. Mr. Engebretson: Another good question and response. I think that the development is looking very good. I don't get by there as often, but I get by there periodically if my wife and I go to Costco. That is about all of my experience there. Any other questions or comments? Mr. Harb: So, this is basically for Mark. Before the project started, the value of the property was around $844,000 and as of December 2020 it grew to $2.2 million and that is with the shopping center, not the apartments or the multi -family housing in the back. At year end do we expect that to grow to $13,7001000? Mr. Taormina: It was a projected taxable value of real property. There is no guarantee. I cannot answer that question. That is something that the assessor will determine based on a number of factors and it could be at, below, or above. Mr. Harb: That was the business model at the time? Mr. Taormina: That was strictly a projection at the time we reviewed the project. We tried to use our best guesstimate. Again, there is no guarantee. Mr. Harb: I think it is a great project and it is great for the city. Your guys are doing a great job. Mr. Jonna: Thank you. We are very proud of this development. I like to show it off to as many people as I can. I wish it could have been right now, but it is what it is. Or, Engebretson: Jordan, I want to ask you a question that we discussed when we had an in -person meeting. The form of living arrangements there as I recall during our in -person meeting, these are going to be high -end rental units. Is that right? Versus condominiums. Or, Jonna: I would classify them as high -end rental units, yes. Livonia Brownfield Redevelopment Authority April21, 2021 Page 9 Mr, Engebretson: I don't have any problems with that, I just wanted to make sure ... we used the word condominium earlier and wanted to make sure we are still on the same page. Mr. Jonna: I believe two bung permits, but one actual legal description. Mr. Engebretson: Good enough. Anything else from any board member? If not, I believe that a motion would be in order. On a motion by Harb, seconded by Fried, and adopted, it was: #05-2021 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 #4 (W-2020) to Haggerty Square, LLC in the amount of $18,783.05 for the reimbursement of eligible expenses; and 2) A deposit of $4,695.76 into the Livonia Brownfield Redevelopment Authority's Local Site Remediation Revolving Fund (LSRRF). A roll call vote on the foregoing resolution resulted in the following: AYES: Breen, Lomako, Fried, Lendrum, Harb, Vandette, Scheel, Engebretson NAYS: None ABSENT: Karolak ABSTAIN: None Mr. Engebretson, Chairman, declared the motion is carried and the foregoing resolution adopted. ELECTION OF OFFICERS Mr, Engebretson: Earlier today I talked to Mr. Taormina and to Ms. Scheel. An issue had been raised as to whether or not election of officers should have been on this agenda. Ms. Scheel, being the very precise record keeper that she is in the Treasurer's office, does an equally good job with our records. She looked up our May meeting last year and that was the last time we had election of officers. I dug out the minutes from that meeting that she referred to and that is in fact when we did elect the officers that are in place right now. The approving resolution concludes that the appointments are for a Livonia Brownfield Redevelopment Authority April21, 2021 Page 10 period of one-year or until a successor is elected. So, we can do one of two things. I believe this item is open enough that we could add election of officers if we wanted to or we could put it off to the next meeting that we have because we are in compliance with the motion that had been offered previously, even thought it has been a year, there was an exception... or until a successor is appointed. That is my understanding of where we are and if anyone would like to offer direction as to the best manner for moving forward, now if your time to speak. Mr. Lomako: I would like to offer a slate motion for all positions as they exist and continue until next election. Mr. Engebretson: I believe that it is an appropriate motion. Let's see if there is support. On a motion by Lomako, seconded by Fried, and unanimously adopted, it was: #06-2021 RESOLVED, that Jack Engebretson is hereby re -appointed to serve as Chairman, that Lynda Scheel is hereby re -appointed to serve as Vice President, that Kenneth Harb is hereby re -appointed to serve as Secretary, and Bill Fried is hereby re -appointed to serve as Treasurer of the City of Livonia Brownfield Redevelopment Authority for a one-year period (thru May 31, 2022) or until a successor is elected. A roll call vote on the foregoing resolution resulted in the following: AYES: Breen, Lomako, Fried, Lendrum, Harb, Vandette, Scheel, Engebretson NAYS: None ABSENT: Karolak ABSTAIN: None Mr. Engebretson, Chairman, declared the motion is carried and the foregoing resolution adoptedI Mr. Taormina: Mr. Chairman, before we exit, can I introduce Jacob Uhazie. Jacob is the newest staff member here in the Planning &Economic Development Department. He is a face you will see in the future during these meeting. His title is Planning & Economic Development Coordinator. Jacob, do you want to introduce yourself? Livonia Brownfield Redevelopment Authority April21, 2021 Page 11 Jacob Uhazie: It is nice to meet everyone. I am glad to be a part of this. I will offer up...I would love to see Jordan's development as well. Mark, if you don't want to take a second tour, I am happy to take everyone up there. I can reach out to everyone. Mr. Engebretson: Tell us a little bit about your background. Mr. Uhazie: I previously worked for HNTB. It is a civil engineering firm in Detroit. I have a Master's in Urban Planning from the University of Louisville. I started here in December of last year. I am excited to be a part of the team. I am really happy to be working in a great community. I was a transportation planner that did a lot of MDOT contracting, then made the switch over here. Mr. Engebretson: Thank you for joining us. We appreciate it. If there is nothing further, I am looking for a motion to adjourn. On a motion duly made, seconded, and unanimously adopted, the 22"d Meeting held by the City of Livonia Brownfield Redevelopment Authority on April 21, 2021 was adjourned at 5:54 p.m. Ken Harb, Secretary