Brownfield Redevelopment Authority

MANISTEE CITY BROWNFIELD REDEVELOPMENT AUTHORITY Meeting of December 6, 2016 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 December 6, 2016 agenda. IV Approval of Minutes At this time Brownfield Redevelopment Authority can take action to approve the August 2, 2016 meeting minutes. V Public Hearing VI Financial Reports Approval of Invoices At this time the Brownfield Redevelopment Authority will review the summary of paid invoices. Financial Statements Finance Director Ed Bradford will give a financial status update on the Brownfield Redevelopment Authority Funds. VII New Business Review/Approval of the TIF Implementation Plan - South Washington Area Redevelopment Project A TIF Implementation Plan for the “private” component of the South Washington Area Redevelopment Project (River Parc and North Channel properties) as required under the Development and Reimbursement Agreement between the Brownfield Redevelopment Authority, City of Manistee and Manistee Investment Partners LLC. At this time the Brownfield Redevelopment Authority could take action to approve the TIF Implementation Plan for the “private” component of South Washington Area Redevelopment Project. 1|P age  Schedule Meeting dates for 2017 At this time the Brownfield Redevelopment will take action to schedule their meeting dates for 2017. Project Updates Staff will update the Brownfield Redevelopment Authority on the status of current and potential projects. VIII Old Business 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 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 Administrator DATE: December 1, 2016 RE: December Meeting The next meeting of the Brownfield Redevelopment Authority Meeting will be on Tuesday, December 6, 2016. A copy of the meeting agenda and attachments are enclosed for your review. 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 August 2, 2016 A meeting of the Manistee City Brownfield Redevelopment Authority was held on August 2, 2016 at 2pm in the Council Chambers, City Hall, 70 Maple Street, Manistee, Michigan. Meeting was called to order at 2:00 pm by Chair Clinton McKinven-Copus ROLL CALL Members Present: Meagan Kempf, Donald Kuk, Marlene McBride, Clinton McKinven-Copus, Jeffrey Stege Members Absent: W. Frank Beaver, Steve Brower (excused), Others: T. Eftaxiadis (BRA Consultant), Ed Bradford (BRA Administrator), Denise Blakeslee (Recording Secretary) The Authority welcomed new member Meagan Kempf. Denise Blakeslee had a conflict and was unable to attend the first part of the meeting Ed Bradford acted as recording secretary until Ms. Blakeslee arrived. APPROVAL OF AGENDA Motion by Don Kuk, seconded by Marlene McBride that the agenda be approved as prepared. With a Voice Vote this motion passed unanimously APPROVAL OF MINUTES Motion by Don Kuk, seconded by Jeff Stege that the minutes of the June 7, 2016 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 August 2, 2016 Page 1 NEW BUSINESS Site Visit – 334 River Street Members of the Brownfield Redevelopment Authority left City hall to perform a site visit at 334 River Street. On September 7, 2010 the City of Manistee Brownfield Redevelopment Authority approved a Brownfield Plan for the 334 River Street Redevelopment Project. An Act 381 Work Plan was submitted on October 5, 2010 which was mostly funded by Petroleum Impacted Sites Assessment Grant BF- 00E44301-0. A summary of the activities include: o Installation of sheet pilings and several retaining walls in the NE and NW portions of the building as required for the excavation and removal of contaminated soils and waste under the building. o Excavation, removal, transport and disposal of contaminated and oily soils, and wastes (fly ash, coal residue, sawdust, cinders and foundry sand) from numerous locations under the building. o Disposal of asbestos debris from the building basement. o Removal of boiler, condensers, furnace and oily piping systems throughout the building. o Removal, disposal and replacement of former garage oil-saturated wood floors, timber beam sleepers and wood sheathing in the NW building. o Draining of hydraulic hoists (3) and remove hoist concrete bases. o Grading and compaction of remaining soils at the removal areas, placement of clean fill, and installation of impermeable membrane caps over the north portion of the NW building and the north portions of the NE building. o Installation of vapor barrier and concrete cap over the south portion of the NW building (over remaining oil-saturated soils). o Construction of retaining walls and reinforcing shear walls as needed for the demolition of the NE portion of the building. o Demolition of roof, walls and structural elements of the NE portion of the building. o Restoration of neighboring properties impacted by the remediation and demolition activities. 2015 TIF Capture for 334 River Street Directors received a memo from Edward Bradford, Brownfield Administrator regarding 334 River Street Tax Capture (attached). The Directors discussed the project and distribution of funds. Ms. Blakeslee entered the meeting. MOTION by Don Kuk, seconded by Marlene McBride that the City of Manistee Brownfield Redevelopment Authority approves the 2015 distribution of funds for 334 River Street as outlined in the memo prepared by Brownfield Administrator Ed Bradford dated July 27, 2016 and that $195.51 BRA Administrative Fee be paid and staff is authorized to reimburse remaining funds. With a Voice Vote this motion passed unanimously City of Manistee Brownfield Redevelopment Authority Meeting Minutes of August 2, 2016 Page 2 Consideration of Fiscal Year 2017 Brownfield Redevelopment Authority Budget Edward Bradford, Brownfield Administrator presented a budget for Fiscal Year 2017 for consideration MOTION by Don Kuk, seconded by Meagan Kempf to adopt Fiscal Year 2017 Brownfield Redevelopment Authority Budget as prepared. With a Voice Vote this motion passed unanimously FINANCIAL REPORTS Approval of Invoices – There were no new invoices. BRA Financing Finance Director Ed Bradford reviewed the Balance Sheet and Revenue/Expenditure Report with the Directors (attached). MOTION by Don Kuk, seconded by Jeff Stege to approve the Balance Sheet and Revenue/Expenditure Report as submitted. With a Voice Vote this motion passed unanimously Project Update Finance Director Ed Bradford and T. Eftaxiadis updated the Directors on the Edgewater project. 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. New Member Meagan Kempf took her 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. PUBLIC COMMENTS AND COMMUNICATIONS None CORRESPONDENCE None City of Manistee Brownfield Redevelopment Authority Meeting Minutes of August 2, 2016 Page 3 STAFF REPORTS Ed Bradford, BRA Administrator – City Council will be reviewing the County Brownfield Plan for Joslin Cove and a Development Agreement for the project at the Council Meeting tomorrow evening. The next regular meeting of the Brownfield Redevelopment Authority will be held on September 6, 2016. ADJOURNMENT Motion by Don Kuk, seconded by Marlene McBride that the meeting be adjourned. MOTION PASSED UNANIMOUSLY. Meeting adjourned at 3:40 pm MANISTEE CITY BROWNFIELD REDEVLOPMENT AUTHORITY ____________________________________ Denise Blakeslee, Recording Secretary City of Manistee Brownfield Redevelopment Authority Meeting Minutes of August 2, 2016 Page 4 City of Manistee Brownfield Redevelopment Authority Meeting Minutes of August 2, 2016 Page 5 City of Manistee Brownfield Redevelopment Authority Meeting Minutes of August 2, 2016 Page 6 City of Manistee Brownfield Redevelopment Authority Meeting Minutes of August 2, 2016 Page 7  CITY OF MANISTEE BROWNFIELD REDEVELOPMENT AUTHORITY SUMMARY OF INVOICES SUBMITTED FOR PAYMENT REPORTING PERIOD: August 1, 2016 – December 6, 2016 VENDOR NAME DATE INVOICE NUMBER INVOICE SERVICE DESCRIPTION AMOUNT Eftaxiadis Consulting Inc. 8/1/16 CMBRA-1607 2,613.75 Consulting, Brownfield Service Eftaxiadis Consulting Inc. 9/8/16 CMBRA-1608 318.75 BRA/TIF Mgmt/Bookmark Red Eftaxiadis Consulting Inc. 10/10/16 CMBRA-1609 361.25 CMBRA Tech Ser/Bookmark TOTAL: $3,293.75  IMPLEMENTATION PLAN FOR BROWNFIELD TIF REIMBURSABLE ACTIVITIES AT THE SOUTH WASHINGTON AREA PROPERTIES (RIVER PARC AND NORTH CHANNEL BUILDINGS) MANISTEE, MICHIGAN JULY 2016 INTRODUCTION AND PURPOSE The South Washington Area (“SWA”) redevelopment project includes two buildings (former River Parc and North Channel buildings) and vacant land adjacent to the buildings, collectively known as the Private Property (“Property”), as well as public areas and public right-of-ways adjacent to, or associated with the Property. The Property is shown on the attached survey (Figure 1). The Scope and the costs presented in this TIF Implementation Plan (“Plan”) are for “eligible” activities that will be implemented on the Property by the Private Developer (“Developer”) based on the terms of a Development and Reimbursement Agreement (“D&RA”) executed by the City of Manistee Brownfield Redevelopment Authority (“CMBRA”), City of Manistee (“City”) and Developer. It is anticipated that the City will prepare a similar TIF Implementation Plan for the eligible activities (public infrastructure improvements) that the City will undertake per the terms of the D&RA. Cost estimates for the Developer’s eligible activities provided in this Plan were generated in early 2015 as part of the preparation of the Brownfield Plan for the SWA based on the experience of the Developer and the Developer’s consultants and engineers with similar projects. Due to the time lapse between 2015 and the implementation of the redevelopment activities, the actual eligible redevelopment expenses may vary from the original estimates. Therefore, the estimates for some eligible activities may require updating upon receipt of bids from contractors. It should be noted that, while TIF capture revenues designated and approved by the State agencies for reimbursement of environmental eligible expenses cannot be re- allocated to reimburse non-environmental expenses, and vise verse, re-allocation of TIF for reimbursement of eligible expenses within the environmental and non-environmental categories may be authorized by the CMBRA if the actual expenses differ from the original estimates. 1 The numbers in parentheses shown before each description of the eligible activities presented below correspond to the numbers of the eligible activities described in the Act 381 Work Plan, and represent the codes that will be assigned to the actual redevelopment expenses for the purpose of tracking, accounting as needed for their reimbursement through TIF revenues. ENVIRONMENTAL ELIGIBLE ACTIVITIES The Environmental Eligible Activities include the development of site-specific Due Care and Construction Management plan(s); the design and implementation of engineering controls and/or other measures based on the Due Care plan; and placement of deed/land use restrictions as needed. (2.1.2.a) Supplemental Due Care Assessments – Supplemental soil assessments may be required at the property to better define the extent of contamination previously documented at selected locations as needed for the implementation of engineering controls and installation of public and private utilities. While the scope of these assessments cannot be anticipated at this time, it may consist of collection and analysis of limited number of surface and subsurface soil samples and analysis for compounds of concern, and preparation of report(s). For budgeting purposes it is estimated that up to two such assessments may be required involving the collection of up to 20 samples and analysis for selected compounds. (2.1.2.b) Due Care Surveys: Topographic survey may be required for the design of the anticipated engineering controls to be described in the Due Care Plan. (2.1.2.c) Due Care Plan: A Due Care plan will be prepared to describe required engineering controls, construction health & safety issues, and use restrictions for the Property. Cost Estimate for Activities 2.1.2 (a, b and c) above = $10,000. (2.1.2.d) Contaminated Soil Capping - Interior: Contaminated soils (exceeding Direct Contact criteria) located at the crawl space of the North Channel building (up to 8,000 sf) will be capped to eliminate contact by construction workers, building tenants, owners and customers. Cost Estimate = $35,000. (2.1.2.e) Contaminated Soil Capping/Removal - Exterior: Contaminated soils at several locations at the Property exceed the Direct Contact and/or the GSIP criteria. The locations where engineering controls or disposal are proposed to address contamination by heavy metals and/or PNAs include the open area between the River Parc and North Channel buildings, the open areas north, west and northwest of the North Channel building, and the open area south of the River Parc building. The cost provided here includes material, labor, additional 2 sampling and analysis, engineering/field oversight, and reporting. Cost Estimate = $90,000. (2.1.6) Brownfield Plan and Work Plan This task includes the preparation of the environmental components of the Brownfield Plan, the Act 381 Work Plan and the D&RA, by the Developer on behalf of the CMBRA. Cost Estimate = $10,000. (2.1.7) Contingency A contingency on the environmental costs is included in the project budget. Cost Estimate = $21,750 NON-ENVIRONMENTAL ELIGIBLE ACTIVITIES The Non-environmental Eligible Activities that will be undertaken by the Developer are described below. (2.2.1.h) Short Street Retaining Wall The installation of a retaining structure between the west edge of the Property and Short Street will be undertaken jointly by the City and Developer, and initially financed by the Developer. The retaining structure is required to stabilize the east and southeast banks of Short Street and the south slope of the hill west of the Property that are currently eroding and cause soils to spill onto the Property and into the Manistee River Channel due to the steep slope gradient. The stabilization of the Short Street slope will also allow the structural stabilization of the northwest corner of the River Parc building, and the construction of parking areas along the west edges of the North Channel parcel. The retaining wall will be designed by the City and constructed by the Developer’s contractor. While an initial cost estimate for this eligible activity was generated several years ago and is presented here, the final cost is expected to be revised substantially (>$340,000), therefore it would require a re-allocation of TIF revenues between eligible non-environmental activities. Cost Estimate (initial) = $150,000. (2.2.2) Demolitions Due to the functionally obsolete nature of both buildings and other structures on the Property, demolition and/or removal of existing interior and exterior structures and building components will be required. This activity includes:  Exterior Building Demolition that involves remnants of former industrial structures adjacent to the North Channel building, as well as the unstable north “shared” wall of this building. 3   Interior Demolition that involves removal of unstable interior and exterior walls, roof components, floors, staircases, doors and windows, and other structures prior to rehabilitating, rebuilding and/or replacing them in both buildings. Several interior structures damaged by fires (North Channel building) and water/ice (both buildings) will also require demolition. Cost Estimate (all building demolitions) = $30,000.  Site Demolition that includes removal of inactive aerial and underground utilities, obsolete pavements, sidewalks and concrete foundations of former historic structures, and associated structural inspections and engineering. Cost Estimate: $20,000. (2.2.3) Lead Abatement Based on the Hazardous Materials Survey of the North Channel building most interior, and some exterior surfaces contain Lead Based Paint (“LBP”) that will require abatement prior to rehabilitating the proposed commercial and residential sections of the building. Cost Estimate: $35,000. (2.2.4) Asbestos Abatement Also based on the Hazardous Materials Survey performed at the North Channel building, Asbestos Containing Materials (“ACM”) are present throughout the building in the form of floor tile and mastic and window caulking, as well as light ballasts, electric switches potentially containing hazardous oils, and animal droppings. These materials will be abated concurrently with the ACM abatement prior to redevelopment. Cost Estimate: $40,000. (2.2.5) Site Preparation The following site preparation activities are required to prepare the North Channel building and exterior portions of the overall Property for redevelopment: (2.2.5.a) Site grading & balancing. This activity is required on the Property to allow construction of access drives, surface parking, and for storm water control and re- direction. The areas where grading and balancing will be required include the north portion of the River Parc parcel and most of the North Channel parcels. Cost Estimate = $15,000. (2.2.5.b) Debris and fill material management. Historic debris piles at the southwest portion of the North Channel parcel will be removed to allow construction of the access drive (fire lane). Cost Estimate = $5,000. 4  (2.2.5.c) Structural improvements. Based on the Structural Survey of the North Channel building, major structural reinforcement of wooden supporting columns at the central section of the building will be required due to partial collapse associated with the historic fire. Additionally, the entire north wall of the building is unstable due to the demolition of the buildings north of the North Channel building in the 1980s; the buildings shared that wall. This wall will require rebuilding and/or reinforcement. Cost Estimate = $200,000 (including engineering). (2.2.9) Brownfield Plan and Act 381 Work Plan This task includes the preparation of the non-environmental components of the Brownfield Plan, Act 381 Work Plan and associated documentation on behalf of the CMBRA. Cost Estimate = $10,000 (2.2.10) Contingency A contingency on the Site Preparation expenses (activity 2.2.5 above) is included in the project budget. Cost Estimate = $51,750. 5 Memorandum Denise Blakeslee To: Brownfield Redevelopment Authority Planning & Zoning Administrator FROM: Denise Blakeslee 70 Maple Street Manistee, MI 49660 Planning & Zoning Administrator 231.398.2805 dblakeslee@manisteemi.gov DATE: November 30, 2016 www.manisteemi.gov RE: Proposed Meeting Dates 2017 Directors, Section 2.7 of the Brownfield Redevelopment Authority By Laws reads as follows: Meetings. Meetings of the Board may be called by or at the request of the Chairperson of the Board or any two Directors. The meetings of the Board shall be public, and the appropriate notice of such meetings shall be provided to the public. Regular meetings of the Brownfield Redevelopment Authority shall be held in each calendar quarter of each year. In no event shall there be less than four (4) meetings per year. The Board shall hold an Annual Meeting in January of each year at which time officers of the Board shall be elected as provided in Article 3, Section 2. At the February 9, 2016 meeting the Directors discussed the need to hold additional meetings in 2016 due to the responsibilities for the North Washington Area Redevelopment Project and staff recommended changing the meetings to the first Tuesday of the month starting in April. In 2016 the BRA held meetings in February, June, and August with the remaining meetings being cancelled. The BRA will need to discuss their meeting schedule for 2017 and using the First Tuesday of the month as a template the meetings for 2017 would be as follows: January 3, 2017 February 7, 2017 March 7, 2017 April 4, 2017 May 2, 2017 June 6, 2017 July 11, 2017 * August 1, 2017 changed due to holiday September 5, 2017 October 3, 2017 November 7, 2017 December 5, 2017 The By Laws will be reviewed during the Annual Meeting in January. This will provide an opportunity to discuss if any changes are needed in Section 2.7 Meetings to avoid any violations of the By Laws.