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HomeMy WebLinkAboutApril 27, 2022 - 24th Meeting signedMINUTES OF THE 24th MEETING OF THE CITY OF LIVONIA BROWNFIELD REDEVELOPMENT AUTHORITY The 24th Meeting of the Brownfield Redevelopment Authority of Livonia was called to order at 5:02 p.m. on Wednesday, April 27, 2022, by Chairman Engebretson at City of Livonia City Hall MEMBERS PRESENT: Jack Engebretson, Chairman Lynda Scheel, Vice Chairman Ken Harb, Secretary Steven Vandette Dillon Breen Melissa Karolak MEMBERS ABSENT: Nicholas Lomako Andrew Lendrum OTHERS PRESENT: Mark Taormina, Planning &Economic Dev. Director Michael Slater, Director of Finance Jacob Uhazie, Planning & Economic Dev. Coordinator ROLL WAS CALLED. A quorum was present. APPROVAL OF MINUTES On a motion by Scheel, seconded by Karolak, and unanimously adopted, it was: #01-2022 RESOLVED, that the Minutes of the 23�d Meeting of the City of Livonia Brownfield Redevelopment Authority and held November 3, 2021, are hereby approved as amended. 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 #16 (W-2021) FOR AUTHORIZED ELIGIBLE EXPENSES Mr. Taormina: Thank you, Mr. Chairman. Payment #16. This is related to the Livonia Marketplace project, and in each of these cases, this would be for the winter 2021 tax collection period. For Livonia Marketplace, they captured a total of $87,526.49 and again, I'll just remind everyone that this is the only project that we collect both real and personal property taxes. I've provided the breakdown between the two. You can see real constitutes roughly three times the amount of personal property taxes, but the distribution in this case is an 80/20 split between the developer and the revolving fund. That translates to roughly $70,021, to the developer and $17,500 to the revolving fund. I've provided the resolution and then Livonia Brownfield Redevelopment Authority April27, 2022 Page 2 we've carried out the table to show now many payments are left for this particular project, so it gives a sense of where we're at for the scope of the project. You see the amount and then also the tallies and the total at the bottom, and then how many payments are remaining in this case. There would be a total of 24 payments ending in the winter 2025 tax collection. Mr. Engebretson: It's very nice Mark. I am sure that Mr. Slater had a hand in that, and I commend both of you for a good work product. Okay. Mr. Taormina: I don't do anything without Mike's authorization. Mr. Slater: I will say, Mr. Chair, the treasurer's office helps us quite a bit Or. Engebretson: How about the library? Okay, well, a motion would be in order. On a motion by Scheel, seconded by Harb, and unanimously adopted, it was: #02-2022 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 #16 (W-2021) to the "Owner" of the Livonia Marketplace, Livonia Phoenix, LLC, in the amount of $70,021.19 for the reimbursement of eligible expenses related to the redevelopment of the Former Livonia Mall Site; and 2) A deposit of $17,505.30 for Administrative Expenses and deposit into the Livonia Brownfield Redevelopment Authority's Local Site Remediation Revolving Fund (LSRRF). Mr. Engebretson: Any discussion? 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 #14 (W-2021) FOR AUTHORIZED ELIGIBLE EXPENSES. Mr. Taormina: Thank you. In this case, the incremental value for capture is $38,857.29, all of which is distributed to the developer. This one, I'll just note, is probably our shortest duration project. As you can Livonia Brownfield Redevelopment Authority April27, 2022 Page 3 see from the table. We provided some of the background information on the project. If you want more, we can provide that, but you'll see the numbers here are far less than was originally projected in terms of their tax capture reimbursement. We went through that a couple of years ago, as you recall, when the developer came to us seeking to extend the life of the plan, but it was rejected by the LBRA, so you'll see we have I think six more payments left and then the project is complete. Mr. Engebretson: Okay. Well, folks, you heard the Planning Director present the case. It's up to you. On a motion by Breen, seconded by Karolak, and unanimously adopted, it was: #03-2022 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 #14 (W-2021) to the "Owner" of Livonia Commons, TMA- LIVCOM, LLC, in the amount of $38,857.29 for the reimbursement of eligible expenses. Mr. Vandette: I just have a question Mr. Engebretson: Okay. Well, we do have a motion on the floor. So, a question is very much in order. Mr. Vandette: Thank you. This one I noticed, and I may have asked this question before. Why is there no contribution to I fund for this? Mr. Slater: Simply because that's what was negotiated. Mr. Vandette: Fair enough. They're all a little bit different in their ways. Jr Slater: I have a summary sheet. That's the only way I can keep them straight because there's something different on every one of these things. Mr. Vandette: Got it. Thank you. Or. Engebretson: Good question. Ms. Scheel: There's no contribution at all, not even at the end? Livonia Brownfield Redevelopment Authority April27, 2022 Page 4 Mr. Taormina: That's a great question. I'd have to go back and take a look at the reimbursement agreement. My guess is that I think we collect five years that the statute allows us to deposit 100% of the capture taxes into the revolving fund. Again, for five years, so I think we've done that in for all projects, I believe. Mr. Slater: This one does have five years at the end. Ms. Scheel: Okay. Mr. Taormina: So, while we're not doing that now, Mr. Vandette, we will when they're final payment occurs in 2024, and then there'll be an ensuing five years in which we will collect and capture those taxes and put it in the revolving fund. Mr. Vandette: Okay, thank you, Mr. Chairman. Mr. Harb: What's our relationship with the developer at this time? It seems to me the last time he came in he wanted something we didn't grant him. Mr. Taormina: That's correct. It's fine. I mean, I communicate every once in a while with the people, but it's been a while. I think they made their attempt to get the additional years in the plan, but that failed, and so they're willing to accept that decision and the project looks nice, and it is still a fully occupied development. -Mr. Harb: Very good. Mr. Engebretson: Isn't this exactly what they asked for originally? Mr. Taormina: It is. What happened was, their projections on the taxable value of the property fell far below what it is in reality, and as a result, the amount of taxes... Mr. Slater: They were projected much higher. Mr. Taormina: Excuse me, I did say that backwards. So that's the main reason why they're not generating as much tax capture as what was originally projected. Mr. Slater: But it was their estimates, so while they are getting ... their estimates were wrong. Their estimate was incorrect. But it wasn't something that we... Livonia Brownfield Redevelopment Authority April27, 2022 Page 5 Mr, Taormina: Well, I think we've gotten much better at making sure that whatever they present to us, is aligned better with our estimates too. I know that was done in the case of the last item. We can talk about that. Mr. Engebretson: Well, I'm sure that every effort is made to be fair with all of these folks. I recall specifically that we raised some questions at the time as to whether or not they were going to be happy with the timeframe that they asked for, and sure enough, they came back later and said that they weren't, but they got what they wanted, so I didn't give a lot of sympathy. Okay. So, any further discussion on item number five? Mr. Engebretson, Chairman, declared the motion is carried and the foregoing resolution adopted. Mr. Engebretson: Okay, we're halfway through folks. REVIEW OF LBRA TAX CAPTURE FOR LIVONIA MARKET II AND CONSIDERATION OF TAX INCREMENT FINANCE (TIF) REIMBURSEMENT PAYMENT #6 (W-2021) FOR AUTHORIZED ELIGIBLE EXPENSES. Mr. Taormina: Thank you again, Payment number six to the developer of Livonia Marketplace II, and in this case, the total tax capture for distribution is $43,396.08. Of this, 25% or roughly $10,849.02 gets deposited into the revolving fund and then $32,547 goes to the developer. Mr. Engebretson: Pretty simple. Is there a motion? On a motion by Vandette, seconded by Scheel, and unanimously adopted, it was: #04-2022 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 #6 (W-2021) to Livonia Market II, LLC in the amount of $32,547,06 for the reimbursement of eligible expenses as approved in the Brownfield Plan; and 2) A deposit of $10,849.02 into the Livonia Brownfield Redevelopment Authority's Local Site Remediation Revolving Fund (LSRRF). Livonia Brownfield RedevelopmentAuthority April27, 2022 Page 6 Mr. Engebretson: Is there any discussion? Mr. Engebretson, Chairman, 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 #6 (W=2021) FOR AUTHORIZED ELIGIBLE EXPENSES. Mr. Taormina: Thank you. This represents payment number six to the developer of the Haggerty Center. The current taxable value is $4.8 million, approximately. The project is not complete with respect to what's reflected in the 2021 taxable value that'll change next year. In this case, the total for distribution is $65,830.42. Of that, it's an 80/20 split, where $13,166.48 would go to the revolving fund and $52,665.94 to the developer. Mr. Engebretson: Pretty clear. Mr. Harb: Are they done building? Mr. Taormina: They have completed all of the vertical construction of the project; they are completing the apartments. They are...I don't know what percentage leased they are. Leasing has gone very well. It's my understanding that they're still working on completing the interior of some of the apartments. So, it's not fully occupied yet, but in discussing this with the assessor, she believes the taxable valuation is going to be very close to what the projected amount was from when we approved this project a couple years ago. Mr. Harb: Nice. Mr. Engebretson: Good looking project from the exterior. Mr. Taormina: Has anyone taken that drive back behind? Mr. Breen: Are we allowed? I do it all the time. Mr. Taormina: You can do it now. You can actually pull into the new light at Beaumont and wrap all the way around and get into the Costco parking lot from Seven Mile without having to go out on to Haggerty. Livonia Brownfield Redevelopment Authority April27, 2022 Page 7 Mr, Vandette: I tried getting out from Costco and I couldn't do it, but that was six months ago or so. Mr. Taormina: The drive may not have been completed. It is now. Mr. Vandette: It is now. Mr. Engebretson: We tried to Tuesday, and I told my wife that the Planning Director sent us there. We went back and looked at a wall but I'm glad to hear that I can sneak in there now and save a lot of time. Ms. Karolak: That's for sure. Mr. Engebretson: I'm going to make it a point to go there. Okay, Mr. Taormina: Just keep it quiet. Mr. Engebretson: Any further discussion? We don't have a motion yet. On a motion by Harb, seconded by Karolak, and unanimously adopted, it was: #05-2022 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 #6 (W-2021) to Haggerty Square, LLC in the amount of $52,665.94 for the reimbursement of eligible expenses; and 2) A deposit of $13,166.48 into the Livonia Brownfield Redevelopment Authority's Local Site Remediation Revolving Fund (LSRRF) for administrative expenses. Mr. Engebretson, Chairman, declared the motion is carried and the foregoing resolution adopted. ELECTION OF OFFICERS Mr. Engebretson: We come to item eight on the revised agenda. It was not on the agenda that was sent out to you earlier. This is an item that has been kind of slippery in recent times. We had an election, but we didn't have it on the agenda. And now we have it on the agenda. But anyway, it's time to do it., And this is the right time of year to be doing this. I'll open the floor for discussion, but before we move further, let me just say that if there's anyone that would like to sit in Livonia Brownfield Redevelopment Authority April27, 2022 Page 8 this chair, I have turned 85 and I'm getting tired. It's not that I'm leaving. But, if there's anybody that would like to serve in this capacity, I'd be certainly pleased to see that happen. I am not asking for it to happen, but I'm not oblivious to it happening. Mr. Vandette: As long as you're not the late Jack, I'd like to move for you as Chairman. On a motion by Harb, seconded by Breen, and unanimously adopted, it was: #06-2022 RESOLVED, that Jack Engebretson is hereby re -appointed to serve as Chairman thru the spring of 2023 or the next time at which a full slate of officers is elected. Mr. Engebretson: Well, okay. Is this what we're going to do? One by one go down the list and it's so you've got a motion by heart to put the old guy back in the chair. Mr. Engebretson, Chairman, declared the motion is carried and the foregoing resolution adopted. Mr. Taormina: It was a good try Mike said Mr. Engebretson: So, then we had the vice chairman currently held by Lynda Scheel. I think that even though we don't operate formally like the council does, I would like to nominate Lynda Scheel to be recommended. Okay. Any discussion? On a motion by Engebretson, seconded by Harb, and unanimously adopted, it was: #07-2022 RESOLVED, that Lynda Scheel is hereby re -appointed to serve as Vice Chairman thru the spring of 2023 or the next time at which a full slate of officers is elected. Mr. Engebretson, Chairman, declared the motion is carried and the foregoing resolution adopted. Mr. Harb: Before we go to Secretary, if anyone wants it, please feel free. On a motion by Scheel, seconded by Breen, and unanimously adopted, it was: #08-2022 RESOLVED, that Ken Harb is hereby re -appointed to serve as Secretary thru the spring of 2023 or the next time at which a full slate of officers is elected. Livonia Brownfield Redevelopment Authority April27, 2022 Page 9 Mr. Engebretson, Chairman, declared the motion is carried and the foregoing resolution adopted. Ms. Scheel: We have Treasurer still. Mr. Engebretson: Oh, you're right. Our treasurer has been Bill Fried. I think from day one. Ms. Scheel: Dillon is actually the interim treasurer right now. Mr. Vandette: We elected him in November. Mr. Breen: Preemptively On a motion by Scheel, seconded by Harb, and unanimously adopted, it was: #09-2022 RESOLVED, that Dillon Breen is hereby appointed to serve as Treasurer thru the spring of 2023 or the next time at which a full slate of officers is elected. Mr. Engebretson, Chairman, declared the motion is carried and the foregoing resolution adopted. Mr. Engebretson: So, any other business that any member would like to bring forward? I have one, and that is to commend Mark and staff for putting together what I think is an exceptionally well-done packet with the links that all work, and I really liked the idea of the manner in which you presented it year by year. I think this is a superior work product to anything that we've seen in the 14 years we've been doing this so congratulations and thank you. Even I managed to get through it. I used to do the council packet, so I know it's hard. You've done a nice job and I really want to express my appreciation Mr. Harb: This has been around for 14 years? Really? Mr. Taormina: We created this in 2008. Mr. Engebretson: Kirksey, right? Well, of course the green President rather, too. And I think I was nominated by Jack Kirksey as I was on my way out the door Or. Vandette: We're the senior guys. I was appointed by him as well. Livonia Brownfield Redevelopment Authority April27, 2022 Page 10 Mr. Engebretson: I think that was me. Mr. Taormina: IT shows here that we did start collecting for Livonia Marketplace in 2014. But as you'll recall, we delayed that payment a couple of years. Mr. Engebretson: That was implemented in 2014. Mr. Taormina: But we had created the board several years before that. Mr. Engebretson: More than several. Yeah. Mike, what did you just say? Mr. Slater: The first plan was approved by this board in December of 2000. Mr. Engebretson: Thank you. Ms. Scheel: Does it say who was on the board? Mr. Vandette: Are there other brownfield projects waiting in the wings? Mr. Taormina: Well, no, nothing that's under development right now. We did the Livonia West Commerce Center Project. The last one that we approved. That building if you haven't seen it yet, it's worth driving by. It is just a big warehouse right now. It's pretty impressive. Mr. Engebretson: Where's this? Mr. Taormina: The Ashley project at Eckles and Amhrein. Oh, yeah. It looks so much different. For those of you recall the old GM plant that used to sit on that corner, now it has Amazon and the Republic National Distributing Company and now this building and a few others it looks dramatically different. Mr. Breen: That includes the logistics truck lot as well? Mr. Taormina: Yes, that is all that's part of it as well. Mr. Vandette: Let's move to adjourn so we can talk. Mr. Engebretson: Okay, we can do that, but I would like to say while we're still on the record, I really appreciated getting that drone presentation of that site, in this stage of development. It would be nice if periodically they would do it like that. I'm sure they do it for their own benefit. I don't think that it would be right for us to ask them to do it for us for our benefit, but if they do it for themselves, if they would share it with us that would Livonia Brownfield Redevelopment Authority April 27, 2022 Page 11 definitely be nice. I've walked not every inch of dirt on this site, but most of it, and it's just really amazing. Mr. Taormina: Yeah, I think that we've been remiss, but that's why we should take a tour before Penske moves into the first half of the building. That won't happen until July, so it's probably a good time to ask them to invite us. They have a whole presentation that they can show us on the construction process. It's very interesting. Ms. Scheel: Take us in the van. Mr. Taormina: I forgot about that. Mr. Engebretson: Okay, well, if there's nothing else, then a motion to adjourn would be in order. On a motion duly made, seconded, and unanimously adopted, the 24�h Meeting held by the City of Livonia Brownfield Redevelopment Authority on April 27, 2022, was adjourned at 5:31 p.m. 1,9lam/ Ken Harb, Secretary