Brownfield Redevelopment Authority

MANISTEE CITY BROWNFIELD REDEVELOPMENT AUTHORITY Meeting of July 28, 2015 2 pm - Council Chambers, City Hall, 70 Maple Street, Manistee, Michigan AGENDA I Call to Order II Roll Call III Approval of Agenda At this time the Brownfield Redevelopment Authority can take action to approve the July 28, 2015 Agenda. IV Approval of Minutes At this time Brownfield Redevelopment Authority can take action to approve the April 28, 2015 meeting Minutes. V Public Hearing VI Financial Reports Approval of Invoices There are no invoices for this quarter. Financial Statements Finance Director Ed Bradford will give a financial status update on the Brownfield Redevelopment Authority Funds. VII New Business Discussion of Lighthouse Park At this time the BRA will discuss sampling for contamination at Lighthouse Park. Project Updates Staff will update the Brownfield Redevelopment Authority on the status of current projects. 1|P age VIII Old Business Discussion on Fees for Assistance to Developers The Authority discussed how and when fees will be charged for assisting developers and redevelopers on various projects and establishes a fee amount. Staff was directed at the April meeting to work on a document that can be used to determine fees for assisting with redevelopment inquiries. At this time the Directors will review the proposed fee schedule. IX Public Comments and Communications At this time the Chair will ask if there are any public comments. X Correspondence At this time the Chair will ask if any correspondence has been received to be read into the record. XI Staff Reports Council Presentation Ed Bradford and T. Eftaxiadis will discuss the annual report that was given to City Council on June 2, 2015 reporting the Brownfield Redevelopment Authorities activities this past year. At this time the Chair will ask Staff for their report. XII Members Discussion At this time the Chair will ask members of the Brownfield Redevelopment Authority if they have any items they want to discuss. XIII Adjournment 2|P age  Planning & Zoning 231.398.2805 Fax 231.723-1546 MEMORANDUM www.manisteemi.gov TO: Brownfield Redevelopment Authority Directors FROM: Denise Blakeslee Planning & Zoning DATE: July 21, 2015 RE: July 28, 2015 Brownfield Redevelopment Authority Meeting Directors, the next meeting of the Brownfield Redevelopment Authority will be on Tuesday, July 28, 2015 at 2 pm in the Council Chambers. We have the following items on the Agenda. Approval of Invoices – There are no invoices this quarter. Financial Statements - Finance Director Ed Bradford will give a financial status update on the Brownfield Redevelopment Authority Funds. Lighthouse Park - The Authority will discuss sampling for contamination at Lighthouse Park. Discussion on Fees for Assistance to Developers - Staff was directed at the April meeting to work on a document that can be used to determine fees for assisting with redevelopment inquiries. A copy of the proposed fee schedule is attached for your review. Project Updates - Staff will update the Brownfield Redevelopment Authority on the status of current projects. Council Presentation - Ed Bradford and T. Eftaxiadis will discuss the annual report that was given to City Council on June 2, 2015 reporting the Brownfield Redevelopment Authorities activities this past year. Oath of Office/Section 6 Conflict of Interest - Members that were not present at the January and April meeting will be administered their Oath of Office and read and sign a Section 6 Conflict of Interest. If you are unable to attend the meeting please call me at 398.2805.  MANISTEE CITY BROWNFIELD REDEVELOPMENT AUTHORITY 70 Maple Street Manistee, MI 49660 MEETING MINUTES April 28, 2015 A meeting of the Manistee City Brownfield Redevelopment Authority was held on April 28, 2015 at 2pm in the Council Chambers, City Hall, 70 Maple Street, Manistee, Michigan. Meeting was called to order at 2:10 pm by Chair Clinton McKinven-Copus Roll Call: Members Present: Steve Brower, Donald Kuk, Marlene McBride, Clinton McKinven-Copus, Jeffrey Stege Members Absent: W. Frank Beaver, Dave Carlson, Others: T. Eftaxiadis (BRA Consultant), Ed Bradford (BRA Administrator), Denise Blakeslee (BRA Recording Secretary) APPROVAL OF AGENDA Motion by Steve Brower, seconded by Marlene Mc Bride that the agenda be approved as prepared. With a voice vote this motion passed unanimously. APPROVAL OF MINUTES Motion by Steve Brower, seconded by Marlene McBride that the minutes of the January 27, 2015 Brownfield Redevelopment Authority Meeting be approved as prepared. With a voice vote this motion passed unanimously. PUBLC HEARING None City of Manistee Brownfield Redevelopment Authority Meeting Minutes of April 28, 2015 Page 1 FINANCIAL REPORTS Approval of Invoices – Members reviewed the summary of paid invoices. VENDOR NAME DATE INVOICE INVOICE SERVICE DESCRIPTION NUMBER AMOUNT Eftaxiadis Consulting 1/12/15 CMBRA-1410R $318.75 Consulting Services – BRA 334 River Inc. Street Eftaxiadis Consulting 2/1/15 CMBRA-1501 $743.75 Consulting Services Inc. Eftaxiadis Consulting 4/15/15 CMBRA-1503 $1,742.50 Consulting Services – Joslin Cove Inc. Issues Brownfield Services - Hotel Northern, H&K, Hokanson, Rodeway TOTAL: $2,850.00 MOTION by Marlene Mc Bride, seconded by Jeff Stege to approve previously paid invoices. With a voice vote this motion passed unanimously. Financial Statements Finance Director Ed Bradford reviewed the Balance Sheet and Revenue/Expenditure Report with the Directors (attached). NEW BUSINESS Independent Contractor Agreement On February 24, 2012 the City of Manistee Brownfield Redevelopment Authority entered into a contract with Eftaxiadis Consulting Inc. The Independent Contractor Agreement provides in paragraph 8 that neither party may assign the obligations under the Agreement without prior written consent of the other party. The Independent Contractor is requesting to assign the Contractor Agreement to Eftaxiadis Consulting, LLC. Ed Bradford presented the agreement to the Directors. The Agreement was prepared by the City Attorney. MOTION by Steve Brower, seconded by Marlene McBride that the City of Manistee Brownfield Redevelopment Authority approves the transfer of the Independent Contractor Agreement to Eftaxiadis Consulting LLC and authorized the Chair to execute the agreement transfer. With a voice vote this motion passed unanimously. City of Manistee Brownfield Redevelopment Authority Meeting Minutes of April 28, 2015 Page 2 Consideration of 2015-2016 Budget Finance Director Ed Bradford has drafted a budget for FY 2015-2016 for the City of Manistee Brownfield Authority to review/adopt. Director Kuk entered the meeting at 2:17 pm. The budget was reviewed by the Directors including the amount allocated for Administration/City staff time. The Directors had not issues with the amount allocated for staff time. MOTION by Marlene McBride, seconded by Don Kuk that the City of Manistee Brownfield Redevelopment Authority adopt the 2015-2016 Budget for the Authority (copy attached). With a voice vote this motion passed unanimously. Discussion on Fees for Assistance to Developers The Authority will discuss how and when fees will be charged for assisting developers and redevelopers on various projects and establish a fee amount. Staff was directed to work on a document that can be used to determine fees for assisting with redevelopment inquiries. Project Update T. Eftaxiadis prepared a Project Status Memo for the Directors that was used during the discussion on fees (attached). OLD BUSINESS Oath of Office/Section 6 Conflict of Interest - Annually the Brownfield Redevelopment Authority members will take an Oath of Office and agree to abide by Section 6 Conflict of Interest of the By-Laws of the City of Manistee Brownfield Redevelopment Authority. Ms. Blakeslee administered the Oath of Office to the Directors. Each Director also read and signed a Section 6 Conflict of Interest. Director McBride took her Oath of Office on February 3, 2015. Director Stege took his Oath of Office on April 28, 2015. PUBLIC COMMENTS AND COMMUNICATIONS None CORRESPONDENCE City of Manistee Brownfield Redevelopment Authority Meeting Minutes of April 28, 2015 Page 3 None STAFF REPORTS Ed Bradford, BRA Administrator – Mr. Bradford spoke of receiving an invoice from the EPA for expenditure of funds in excess of the grant amount, but it was determined that it was intended for the County BRA. MEMBERS DISCUSSION None The next regular meeting of the Brownfield Redevelopment Authority will be held on July 28, 2015. ADJOURNMENT Motion by Don Kuk, seconded by Steve Brower that the meeting be adjourned. MOTION PASSED UNANIMOUSLY. Meeting adjourned at 2:57 pm MANISTEE CITY BROWNFIELD REDEVLOPMENT AUTHORITY ____________________________________ Denise J. Blakeslee, Recording Secretary City of Manistee Brownfield Redevelopment Authority Meeting Minutes of April 28, 2015 Page 4 City of Manistee Brownfield Redevelopment Authority Meeting Minutes of April 28, 2015 Page 5 City of Manistee Brownfield Redevelopment Authority Meeting Minutes of April 28, 2015 Page 6 City of Manistee Brownfield Redevelopment Authority Meeting Minutes of April 28, 2015 Page 7 City of Manistee Brownfield Redevelopment Authority Meeting Minutes of April 28, 2015 Page 8 City of Manistee Brownfield Redevelopment Authority Meeting Minutes of April 28, 2015 Page 9  REVENUE/EXPENDITURE REPORT Page: 1 City of Manistee 7/15/2015 For the Period: 7/1/2014 to 6/30/2015 3:04 pm Original Bud. Amended Bud. YTD Actual CURR MTH Encumb. YTD UnencBal % Bud Fund: 243 - BROWNFIELD REDEVELOPMENT AUTHO Revenues Dept: 000 676.000 Reimbursement 349619 05/15/2015 AR RIETH-RILEY CONSTRUCTION CO. American Materials - Brownfield 9,140.09 Invoice #:00002103 2114 Reimbursement 0.00 0.00 9,140.09 0.00 0.00 -9,140.09 0.0 Dept: 000 0.00 0.00 9,140.09 0.00 0.00 -9,140.09 0.0 Revenues 0.00 0.00 9,140.09 0.00 0.00 -9,140.09 0.0 Expenditures Dept: 000 801.000 Professional Services 332684 08/07/2014 AP MORIN/KATHY// River Parc Place & North 756.25 INV#: 78961 332679 09/02/2014 AP EFTAXIADIS CONSULTING INC Consulting Services 403.75 INV#: CMBRA-1408 78956 337612 11/13/2014 AP EFTAXIADIS CONSULTING INC Consulting - Hotel Northern 191.25 INV#: 80111 342036 01/12/2015 AP EFTAXIADIS CONSULTING LLC Consulting - BRA/334 River St, 318.75 INV#: CMBRA-1410R 81120 343492 02/01/2015 AP EFTAXIADIS CONSULTING LLC Consulting, Brownfield Service 743.75 INV#: CMBRA-1501 81413 348348 04/15/2015 AP EFTAXIADIS CONSULTING LLC Consulting, Brownfield Service 1,742.50 INV#: CMBRA-1503 82107 Professional Services 0.00 0.00 4,156.25 0.00 0.00 -4,156.25 0.0 900.000 Printing & Publishing 331487 07/31/2014 AP PIONEER GROUP/THE// Advertisements 34.00 INV#: #41100167 - 07/31/14 78734 337727 10/31/2014 AP PIONEER GROUP/THE// Advertisements 78.25 INV#: #41100167 - 10/31/14 80226 Printing & Publishing 0.00 0.00 112.25 0.00 0.00 -112.25 0.0 Dept: 000 0.00 0.00 4,268.50 0.00 0.00 -4,268.50 0.0 Dept: 691 MDEQ Loan 990.000 American Materials MDEQ Loan 349794 05/31/2015 AP STATE OF MICHIGAN - MDEQ Brownfield Redevelopment Loan 9,140.09 INV#: PR #431839-00 - #3 82489 American Materials MDEQ Loan 0.00 0.00 9,140.09 0.00 0.00 -9,140.09 0.0 MDEQ Loan 0.00 0.00 9,140.09 0.00 0.00 -9,140.09 0.0 Expenditures 0.00 0.00 13,408.59 0.00 0.00 -13,408.59 0.0 Net Effect for BROWNFIELD REDEVELOPMENT AUTHO 0.00 0.00 -4,268.50 0.00 0.00 4,268.50 Change in Fund Balance: -4,268.50  BALANCE SHEET Page: 1 7/15/2015 City of Manistee 3:03 pm As of: 6/30/2015 Balances Fund: 243 - BROWNFIELD REDEVELOPMENT AUTHO Assets 001.000 Cash 31,494.67 Total Assets 31,494.67 Reserves/Balances 390.000 Fund Balance 35,763.17 398.000 Change in Fund Balance -4,268.50 Total Reserves/Balances 31,494.67 Total Liabilities & Balances 31,494.67 Memo To: City of Manistee Brownfield Redevelopment Authority Directors and Administrator From: T. Eftaxiadis, Eftaxiadis Consulting LLC Date: July 28, 2015 Re: Project Status The status of projects since the last Brownfield Redevelopment Authority (“Authority”) meeting is as follows: 1. South Washington Area Redevelopment, River Park Place and North Channel Outlet. The Act 381 Work Plan is under preparation by the Authority. Staff is working with Developer, DPW and City Engineer to obtain cost breakdowns for public infrastructure improvements. 2. H&K Property and Hotel Northern Property. We have had no contacts by the new owners/developers concerning their desire to obtain Authority assistance for MSHDA/MEDC redevelopment grants for these projects. Further staff effort will be expended when/if owners/developers submit the project application (and associated fees) to the Authority. 3. Hokanson Property. We have had no contacts by the new owner/developer concerning his desire to obtain Authority assistance for a Brownfield TIF and/or MEDC redevelopment grant for this project. Therefore, no further staff effort will be expended until the owner/developer submits the project application (and associated fees) to the Authority 4. Rodeway Inn. Authority staff has not had contacts by the new owner of the property concerning Brownfield TIF assistance. 5. Glick’s Property. Staff has participated in public meetings with and assisted representatives of the MEDC and its real estate consultant generating conceptual redevelopment plan for the property. 6. 334 River Street Property. Based on increased property assessed and taxable values, staff anticipates that Brownfield TIF increments will be generated starting with payment of the Winter 2015 taxes. Estimated TIF capture and reimbursement projections have been generated by staff. 7. Lighthouse Park. Staff is assisting the City’s DPW with an environmental assessment of material at the park (treated wood, wood chips, and soils) potentially impacted by chemicals associated with wood preservation. Staff prepared the Work Plan for the assessments and coordinates and oversees the field work by a third party environmental firm on behalf of the DPW. Please let me know if you have any questions or require additional information. Page 1 of 1  CITY OF MANISTEE BROWNFIELD REDEVELOPMENT AUTHORITY Redevelopment Project Funding Assistance Process Outline This document provides an outline of the steps and activities required to process requests for funding assistance by the City of Manistee Brownfield Redevelopment Authority (CMBRA) in support of redevelopment projects within the City. STEP 1. PRE-APPLICATION ACTIVITIES (No Fee Required) 1. Receipt by staff (CMBRA Administrator, Zoning Administrator, CMBRA Consultant) of new/prospective property Owner or Developer (“Owner/Developer”) inquiries concerning CMBRA/City assistance with pursuing redevelopment financial support through City and/or State (MEDC, MSHDA, etc.). 2. Initial staff discussion of inquiry. Assignment of staff contact with Owner/Developer. 3. Initial site visit and prospective project discussion with Owner/Developer. 4. Request for completion and submittal by Owner/Developer of CMBRA Redevelopment Pre-Application Form (Attachment A). 5. Staff review of Pre-Application and initial determination of project viability and desirability. STEP 2. APPLICATION FOR REDEVELOPMENT PROJECT FUNDING (Fees Required) 1. Submittal of Application for Redevelopment Project Funding prepared by applicant and receipt of application fee ($2,000). 2. Administrative and technical review of Application by CMBRA, and City representatives (if needed). 3. Evaluation of applicant’s request for financial assistance by CMBRA and City. Make Go – No Go decision. 4. Meeting with applicant, CMBRA, City and Michigan Department of Environmental Quality (MDEQ) and Michigan Strategic Fund (MSF). 5. Preparation by BRA of standard BRA Plan, including Eligible Costs and Tax Increment Financing (TIF) tables (if applicable) based on information provided in application. 6. Preparation by BRA and City, of Standard Development & Reimbursement Agreement between CMBRA, City (if appropriate) and applicant. The application fee of $2,000 is due with the submittal of the Application and it is non- refundable. Legal fees incurred by the BRA and City for the preparation, review or negotiation of a non-standard Development & Reimbursement Agreement will be invoiced to the applicant at cost and will be payable prior to proceeding with Step 3 of the redevelopment assistance process. -1- STEP 3. BROWNFIELD PLAN RPOCESSING 1. Scheduling of CMBRA public hearing, preparation of resolution, and posting (twice) of notice of public hearing. 2. Public hearing on BRA Plan by CMBRA, followed by meeting of CMBRA to discuss and act on BRA Plan and Development & Reimbursement Agreement. 3. Meeting of City Council to discuss and act on BRA Plan. A non-refundable BRA Plan processing base fee ($1,500) is due prior to scheduling the CMBRA’s meeting to act on the BRA Plan. An additional fee (1%) of the requested TIF reimbursement amount, not to exceed $10,000, will be added to the $1,500 base fee. Substantially more complex projects that require integration of additional forms of financial support that may be pursued by the CMBRA or City on behalf of the Owner/Developer (MSHDA, USDA or MEDC Grants and/or Loans), will require an additional fee ($3,000) per grant/loan application or a (2.5%) fee of the grant/loan application amount, whichever is more. STEP 4. BROWNFIELD ACT 381 WORK PLAN RPOCESSING 1. Preparation by CMBRA staff of Brownfield Act 381 Work Plan (Work Plan) for reimbursement of the Owner/Developer’s “eligible” redevelopment costs. 2. Meeting of CMBRA to discuss and act on Work Plan. 4. Submittal by CMBRA, and coordination with MDEQ and/or MSF of Work Plan for review and approval. A development and processing fee for the Work Plan ($4,000) is due prior to the preparation of the Work Plan. The Work Plan development and processing fee covers the CMBRA’s actual costs (estimated at $1,000 to $4,000 depending on the complexity of the project). The processing fee of $4,000 will be placed in escrow to be used for payment of CMBRA’s costs. The unused portion of the fee will be refunded to the Owner/Developer. This processing fee is an “eligible” cost, therefore it will be included in the BRA Plan and in the Work Plan to be reimbursed to the Owner/Developer by the CMBRA through future incremental tax revenues. STEP 5. PROJECT IMPLEMENTATION Following project initiation, the CMBRA will oversee the implementation of the project as approved in the BRA Plan, Work Plan and Development & Reimbursement Agreement including, but not limited to: 1. Review and approval of applicant’s invoices for “eligible” costs. 2. Review of environmental assessment and remediation reports, if applicable. 3. Inspections of project construction and completion. 4. Capture of, and accounting for incremental tax revenues. 5. Reimbursement of “eligible” costs to applicant. -2- 6. Preparation of annual reports to State. The CMBRA’s costs for performing these functions will be reimbursed through the Administrative Fees included in the BRA Plan and the Act 381 Work Plan. -3- CITY OF MANISTEE BROWNFIELD REDEVELOPMENT AUTHORITY CONFIDENTIAL PRE-APPLICATION STATEMENT OF INTENT FOR REDEVELOPMENT OR REHABILITATION PROJECTS 1. OWNER / DEVELOPER NAME AND CONTACT INFORMATION: 2. PROJECT NAME / LOCATION / ADDRESS: 3. PROJECT DESCRIPTION AND/OR CONCEPTUAL PLAN (ATTACH SITE PLANS OR DRAWINGS, IF AVAILABLE): 4. PROJECT TIMETABLE / SCHEDULE: Page 1 of 2 CITY OF MANISTEE BROWNFIELD REDEVELOPMENT AUTHORITY CONFIDENTIAL PRE-APPLICATION STATEMENT OF INTENT FOR REDEVELOPMENT OR REHABILITATION PROJECTS 5. ESTIMATED PRIVATE INVESTMENT: 6. ESTIMATED CASH FLOW OR ECONOMIC ACTIVITY PROJECTIONS: 7. PROPOSED METHOD AND ESTIMATED “ELIGIBLE” COST FUNDING: 8. REQUESTED TAX ABATEMENT PROGRAM, DURATION OR AMOUNT: 9. DESCRIPTION OF JOB CREATION / RETENTION PLAN: 10. DEVELOPER EXPERIENCE AND CREDENTIALS: Page 2 of 2 ANNUAL STATUS REPORT to City Council June 2, 2015 Ed Bradford and T Eftaxiadis  Established June 2006 by City Council Under Brownfield Redevelopment Financing Act (Act 381 of 1996)  Clinton McKinven-Copus, Chair  Don Kuk, Vice Chair  Steve Brower , Secretary/Treasurer  Dave Carlson Jeff Stege  Marlene McBride Frank Beaver (Three Year Terms)  Ed Bradford, Administrator  Denise Blakeslee, Recording Secretary  T Eftaxiadis, Consultant  CMBRA RESPONSIBILITIES AND AUTHORITIES MISSION: Facilitate Redevelopment of Brownfield Properties BROWNFIELD = Contaminated, Functionally Obsolete, Blighted or Historic Property  Undertake Environmental Assessments and Cleanups  Pursue and Receive Federal Grants for Redevelopment Work  Accept State Grants and Loans for Environmental Cleanups  Capture Tax Increments to Reimburse Public / Private Parties for “Eligible” Environmental and Redevelopment Expenses  Create and Use a Local Site Remediation Revolving Fund  Own, Mortgage or Lease Real Property and Real Estate  Borrow, Issue Bonds/Notes and Invest Assets  Bid, Purchase, Acquire Foreclosure Property CMBRA FUNDING SOURCES  Applicant Fees  Administration TIF Component  Local Site Remediation Revolving Fund (future)  USEPA and MDEQ Grants/ Loans ($1.24MM) USEPA/MDEQ GRANTS/LOANS WORK Environmental Assessments at >30 Sites throughout the City ON-GOING BROWNFIELD TIF PROJECTS American Materials (Rieth Riley) Bulk Materials & Asphalt Facility Brownfield Plan in Place (‘07 – ’29) Ren Zone ‘07 – ‘22 MDEQ Loan Repayment with TIF Developer TIF for Loan 334 River (Former Golden Apple) Residential & Commercial Uses Brownfield Plan in Place (’10 – ’20) Future TIF Revenues ($35K) BROWNFIELD TIF PROJECTS IN-PROGRESS South Washington Area Blighted Buildings & Surrounding Lands Residential & Commercial Mixed Use Multi-Phase Project State (MEDC/MSHDA) Grants Brownfield Plan Approved by City (2014) Pending State Approval of Brownfield TIF Public Infrastructure and Remediation BROWNFIELD TIF PROJECTS IN-PLANNING Hotel Northern (141 Washington Street) Hokanson Building (308 River Street) General Chemical (Middle Section)  RECENT AUTHORITY ACTIVITIES Former Manistee Plating Site Demolition Assistance to HC Former H&K Restoration State Redevelopment Grants Assistance Glick’s Site Conceptual Planning RRC Program Assistance    QUESTIONS?