Brownfield Redevelopment Authority

MANISTEE CITY BROWNFIELD REDEVELOPMENT AUTHORITY 70 Maple Street Manistee, MI 49660 MEETING MINUTES June 12, 2018 A meeting of the Manistee City Brownfield Redevelopment Authority was held on June 12, 2018 at 2 pm in the Council Chambers, City Hall, 70 Maple Street, Manistee, Michigan. Meeting was called to order at 2:03 pm by Brownfield Administrator Bradford, in the absence of the Chair & Vice Chair. Roll Call: Members Present: Steve Brower, Meagan Kempf (arrived at 2:06 p.m.), Marlene McBride, Jeffrey Stege, Roger Yoder Members Absent: Vacancy (2) Others: T. Eftaxiadis (BRA Consultant), Ed Bradford (BRA Administrator), and others Oath/Section 6 Conflict of Interest The members of the Brownfield Redevelopment Authority took their annual Oath of Office and agreed to abide by Section 6 Conflict of Interest of the By-Laws of the City of Manistee Brownfield Redevelopment Authority. Election of Officers Yoder nominated Kempf to serve as Chair for the 2018 term. Supported by Brower. No other nominations. By unanimous voice vote Kempf will serve as Chair for the 2018 term. Chair Kempf took her seat and conducted the meeting. McBride nominated Stege to serve as Vice Chair for the 2018 term. Supported by Kempf. No other nominations By unanimous voice vote Stege will serve as Vice Chair for the 2018 term. Kempf nominated Yoder to serve as Secretary/Treasurer for the 2018 term. Supported by Stege. By unanimous voice vote, Yoder will serve as Secretary/Treasurer for the 2018 term. City of Manistee Brownfield Redevelopment Authority Meeting Minutes of June 12, 2018 Page 1 Appointment of a Recording Secretary 2018 Administrator Bradford introduced Angela Rabb of the Finance Department and recommended that she be appointed as the Recording Secretary for 2018. Motion by Yoder, seconded by McBride that Angela Rabb be appointed as the Recording Secretary of the Brownfield Redevelopment Authority for 2018. Motion passed unanimously. PUBLIC COMMENTS None CORRESPONDENCE None APPROVAL OF AGENDA Motion by Yoder, seconded by Brower that the agenda be approved with the date of the meeting changed from June 6, 2018 to June 12, 2018. Motion passed unanimously. APPROVAL OF MINUTES Motion by Stege, seconded by Yoder that the minutes of the December 5, 2017 Brownfield Redevelopment Authority Meeting be approved with the spelling of Commissioner Kempf’s name corrected. Motion passed unanimously. PUBLC HEARING None FINANCIAL REPORTS Financial Statements - Finance Director and Brownfield Administrator Ed Bradford gave a financial status update on the Brownfield Redevelopment Authority Funds. Motion by Brower, seconded by Yoder to accept the financial report. Motion passed unanimously. OLD BUSINESS City of Manistee Brownfield Redevelopment Authority Meeting Minutes of June 12, 2018 Page 2 Size of Board A request was made by the Brownfield Administrator at the December 5, 2017 meeting to have the Brownfield Authority reduce the size of the board from seven to five members as is authorized by the by-laws. This request was tabled until the June meeting in the hopes that members could be recruited to the Board. This has not occurred as the two vacancies have been advertised repeatedly and no one has applied. Motion by McBride, seconded by Stege that the Brownfield Redevelopment Authority recommend to City Council that the size of the Board be reduced from seven to five members. Motion passed unanimously. NEW BUSINESS By-Law Review According to the by-laws of the City of Manistee Brownfield Redevelopment Authority, the board shall annually review their by-laws at the annual meeting in January. The board did not have a quorum at their January 2018 meeting, so the by-laws were reviewed at the June 12, 2018 meeting. After board review, it was determined that no changes to the by-laws are necessary. No action taken. Approval of Budget The Brownfield Redevelopment Authority fiscal year runs from July 1 to June 30. The Brownfield Administrator presented a budget for the consideration of the board. Motion by Brower, seconded by Kempf that the Brownfield Redevelopment Authority budget for FY 2019 be adopted. Motion passed unanimously. Approval of Reimbursement of South Washington Area Eligible Expenses and Admin Fees The Brownfield Redevelopment Authority must approve expenses submitted for reimbursement pursuant to adopted Brownfield plans. The BRA has received a request for reimbursement of infrastructure expenses incurred by the City of Manistee. The BRA must also approve the administrative fees charged to the Brownfield plan. T. Eftaxiadis of Eftaxiadis Consulting, LLC. reviewed the expenses eligible for reimbursement and explained that actual expenses of $1,845,003.95 are greater than the projected expenses of $1,195,000 in the approved work plan. The actual expenses can be approved and both the approved Brownfield and work plans need to be amended in the future to change the allowable capture amounts for the higher than projected expenses, subject to availability of higher future TIF revenues. City of Manistee Brownfield Redevelopment Authority Meeting Minutes of June 12, 2018 Page 3 Motion by McBride, seconded by Yoder to approve the eligible expenses of $1,845,003.95 which will be paid subject to the availability of future TIF. Motion passed unanimously. Approval of TIF Reimbursement of 334 River Street (Matthews) Administrative Fees The Brownfield Redevelopment Authority must approve the administrative fees charged to the Brownfield plan. Bradford explained that the 334 River Street project, for which a Brownfield Plan was approved in October 2010, did not generate the projected TIF due to declining property values and the property owner appealing his taxable value after the projected plan was approved. The projected administrative fee is $10,000, but only approximately $1,000 has been captured. The approved plan is for 10 years and TIF has already been captured for 8 years. Per the Development & Reimbursement Agreement, the administrative fees are paid first before any other expenses. Motion by Yoder, seconded by McBride to apply all TIF revenue capture from 334 River Street to the administrative fees due to the administrative fees being priority for reimbursement. Motion passed unanimously. Termination of Contract with Eftaxiadis Consulting LLC T. Eftaxiadis, Managing Member of Eftaxiadis Consulting, LLC has requested to terminate his contract pursuant to section 4 of the agreement effective no later than September 30, 2018. Eftaxiadis said he will assist in obtaining another consultant, if the BRA wishes. He also recommended Compliance, Inc., which already has a contract with the City of Manistee DPW, as the environmental firm. Since Compliance Inc. has no Brownfield Redevelopment capabilities, using Compliance Inc. would also require a different firm to handle Brownfield redevelopment tasks. Bradford suggested that the BRA should consider using Manistee County’s consultant for North Channel since Eftaxiadis has a conflict of interest. Eftaxiadis suggested that the BRA obtain another consultant for any new Brownfield Redevelopment projects between now and September 30, 2018 if he is involved in project(s) that pose a potential conflict of interest. The BRA thanked Eftaxiadis for serving the BRA for twelve years. STAFF REPORTS There have been inquiries for Brownfield projects from: Music Vault Memory Lane Detailing City of Manistee Brownfield Redevelopment Authority Meeting Minutes of June 12, 2018 Page 4 Manistee Iron Works Glik building American Cleaners Gas Station across from House of Flavors NEXT MEETING DATES The BRA decided to meet on Tuesday July 24, 2018 at 2:00 p.m. at City of Manistee, 70 Maple St., Manistee, MI 49660 – Council Chambers. MEMBERS DISCUSSION None. The next regular meeting of the Brownfield Redevelopment Authority will be held on Tuesday July 24, 2018 at 2:00 PM in the City Council Chambers at City Hall. ADJOURNMENT Motion by McBride, seconded by Yoder that the meeting be adjourned. Motion passed unanimously. Meeting adjourned at 3:06 pm MANISTEE CITY BROWNFIELD REDEVLOPMENT AUTHORITY ___________________________________________ Angela L. Rabb, Recording Secretary City of Manistee Brownfield Redevelopment Authority Meeting Minutes of June 12, 2018 Page 5