Brownfield Redevelopment Authority

AGENDA Brownfield Redevelopment Authority Meeting 3:00 PM - Wednesday, March 19, 2025 333 West Michigan Avenue., Three Rivers, MI 49093 Page 1. CALL TO ORDER 2. ROLL CALL 3. APPROVAL OF THE AGENDA 4. APPROVAL OF MINUTES 4.A. Minutes of the meeting held May 9, 2024. 2-3 2024-05-09 Brownfield Redevelopment Authority Minutes 5. PUBLIC HEARINGS 6. GENERAL COMMENTS For general comments, each person will be allowed to address the City Commission only one time, 5 minutes per person. The purpose of public comment is to allow the public to address concerns to the Commission rather than start a public debate or present questions to the Commission. 7. BUSINESS 7.A. Brownfield Plan #7 Agreement 4-8 8. CITY COMMISSION AND CITY MANAGER'S COMMUNICATIONS 9. ADJOURNMENT Page 1 of 8  MINUTES Brownfield Redevelopment Authority Meeting 11:30 AM - Thursday, May 09, 2024 333 West Michigan Avenue., Three Rivers, MI 49093 The Brownfield Redevelopment Authority of the City of Three Rivers was called to order on Thursday, May 09, 2024, at 11:30 AM, in the 333 West Michigan Avenue., Three Rivers, MI 49093, with the following members present: PRESENT: Director of Finance/Administration Bobbi Schoon, City Manager Joe Bippus, City Clerk Leslie Wilson, and GIS Specialist John Beebe EXCUSED: Doug Humbert 1 CALL TO ORDER 2 ROLL CALL 3 APPROVAL OF THE AGENDA a) Director of Finance/Administration Bobbi Schoon made a motion to approve the agenda as presented City Clerk Leslie Wilson seconded the motion. Carried unanimously. 4 APPROVAL OF MINUTES a) Minutes of the meeting held August 27, 2021. Director of Finance/Administration Bobbi Schoon made a motion to approve the minutes as presented City Clerk Leslie Wilson seconded the motion. Carried unanimously. 5 PUBLIC HEARINGS 6 GENERAL COMMENTS a) Lynn Hall McLeod of 1631 Nixon Ln, commented on a PILOT program resolution for Garfield homes and the assessment of the 11 homes. She also discussed damages to the condo owner sprinklers that has not been addressed yet. 7 BUSINESS a) 611 Coolidge Place Mr. Brian Farkas of Allen Edwin reviewed the proposed Act 381 Brownfield Plan for 611 Coolidge Place. Mr. Farkas provided a brief review of the project, Page 2 of 8  in which the proposed redevelopment consists of one vacant parcel totaling 5.62 acres in Three Rivers. The project will involve preparing the site for development to make way for 38 single family rental units. Twelve of these single-family homes will be approximately 1,400-square feet with an unfinished basement and detached garage. The balance of the homes will have varying sizes larger than 1,400-square feet with garages attached to the homes. The development will include a private road with access to Kennedy Street with a cul-de-sac at the end, and an additional private road accessed from the primary private road running through the site. The development will also include walking paths connecting with Armstrong Park – Three Rivers Sports Complex to the south. The housing development is expected to include 6 houses that will be income qualified units at 120% of area median income (“AMI”) or lower. The total capital investment on the project is expected to be approximately $9,500,000. Construction on the project is planned to begin in the summer of 2024 and will be completed by fall of 2025. John Beebe made a motion to recommend that the City Commission adopt the Brownfield Plan for 611 Coolidge Place as submitted Bobbi Schoon seconded the motion. Carried unanimously. 8 ADJOURNMENT a) City Manager Joe Bippus made a motion to adjourn at 11:52 a.m. Doug Humbert seconded the motion. Carried unanimously. Page 3 of 8  BROWNFIELD PLAN DEVELOPMENTAGREEMENT THIS BROWNFIELD PLAN DEVELOPMENT AGREEMENT (the “Agreement”), is entered into on February __, 2025 between THE CITY OF THREE RIVERS BROWNFIELD REDEVELOPMENTAUTHORITY, a Michigan public body corporate, whose address is (“BRA”), and Allen Edwin, a Michigan limited liability company, having an address at 2186 East Centre Portage, MI 49002 (the “Developer”). Recitals A. The BRA and the City of Three Riviers (the “City”) have determined that brownfield redevelopment constitutes the performance of an essential public purpose which protects and promotes the public health, safety and welfare. B. The City established the BRA and adopted a Brownfield Plan (the “Plan”), pursuant to the provisions of PA, 1996, Act 381, being MCL 125.2651, et seq., (“Act 381”) on, June 6, 2024. C. The BRA and the City have designated 611 Coolidge Place, Three Rivers, Ml 49093 as “Housing Property” under section 2(y)(i) of Public Act 381 of 1996 (”Act 381”), as amended, to develop 37 housing units, therefore the property is deemed an “Eligible Property,” under the Act. The legal description of the property is found in Exhibit A. D. Act 381 permits the use of the real and personal property tax revenues generated from the increase in the assessed value of property (“Tax Increment Revenues” or “TIR”) within the Plan following redevelopment of such property to pay or reimburse the payment of costs of conducting Eligible Activities (these costs are referred to as “Eligible Costs”); and, unless Developer is a liable party for the site contamination, permits the reimbursement to Developer of Eligible Costs it has incurred. E. The project will involve preparing the site for development to make way for 37 single family rental units. Twelve of these single—familyhomes will be approximately 1,400— square feet with an unfinished basement and detached garage. The balance of the homes will have varying sizes larger than 1,400-square feet with garages attached to the homes. F. The development will include a private road with access to Kennedy Street with a cul- de-sac at the end, and an additional private road accessed from the primary private road running through the site. The development will also include walking paths connecting with Armstrong Park Three Rivers Sports Complex to the south. — G. The housing development is expected to include 6 houses that will be income qualified units at 120% of area median income (“AMI”)or lower. Page 4 of 8 thereunder have been satisfied, and shall otherwise be in form and substance satisfactory to the BRA. 6. Reimbursement Source. During the term of this Agreement and except as set forth in Paragraph 7 below, the BRA shall reimburse the Developer for its Eligible Costs, as limited under this Agreement, from all applicable collected from the real and personal property taxes on the Property. 7. Reimbursement Process. 7.1 Cost Reimbursement Reguest. Before July 31 of the year after Developer has completed the Project (and in no event more than 2 years following completion of the Project) the Developer will submit to the BRA the Eligible Costs Reimbursement Form, attached as Exhibit C, that identifies the costs of each of the Eligible Activities as described in Paragraph 4. When submitting Exhibit C, the Developer will also provide sufficient documentation of the Eligible Costs incurred including the dates, complete description of the work, proof of payment (accompanied by signed lien waivers from the applicable contractors or subcontractors) and detailed invoices for the costs involved for each Eligible Activity. Exhibit C and the above additional documentation comprise the “Completed Request”. 7.2 BRA Review. The BRA shall review the Completed Request within 30— days after receiving it. If the BRA determines that the documentation submitted by the Developer is not a Completed Request, then Developer shall cooperate in the BRA’s review by providing any additional documentation of the Eligible Costs as deemed reasonable and necessary by the BRA in order to complete its review. 7.3 Reimbursement. Before December 31 of the year after Developer completed the Project (and as property taxes are received each subsequent year) after both the summer and winter taxes are captured on the Property, the BRA shall pay approved Eligible Costs to the Developer from such available TIR following the Plan and this Paragraph 7. if there are insufficient TlR available in any given year to reimburse all of the Developer’s Eligible Costs, as described in paragraph 4, then the BRA shall reimburse the Developer only from available TIR. The BRA shall make additional payments, on an annual basis as property taxes are received, toward the Developer’s remaining unpaid Eligible Costs during the term of this Agreement. Reimbursement of Eligible Costs is subject to Developer paying the Developer’s taxes levied against the Property and the personal property used in the business or operations conducted from the Property. 7.4 Method of Reimbursement. The BRA will reimburse the Developer for Eligible Costs as follows: Checks shall be payable to: Allen Edwin Homes Delivered to the following address: 2186 East Centre, Portage, MI 49002 (By certified mail) Page 5 of 8  10.1 Project. To redevelop the Property by investing approximately $9.5 million in constructing a 37 single family rental units on 5.62 acres of property. More specifically, Developer shall complete the Project substantially following the proposal it presented to the BRA in return for the BRA agreeing to provide the incentives outlined in Paragraph 9. Therefore, the conceptual breakdown of the proposed uses for the Project are as follows: (i) 37 single family rental units; (ii) twelve of these single—family homes will be approximately 1,400-square feet with an unfinished basement and detached garage; (iii) development will include a private road with access to Kennedy Street with a cul-de—sac at the end, and an additional private road accessed from the primary private road running through the site;(iv) development will also include walking paths connecting with Armstrong Park — Three Rivers Sports Complex to the south; and (v) the housing development is expected to include six houses that will be income qualified units at 120% of area median income (“AMI”)or lower. 10.2 Monitor Affordability Occupancy Reguirment. During the Term of this agreement, the Developer shall monitor and annually provide to the BRA that at least six units are occupied by households or individuals that meet income requirements and that the rents being charged on an annual basis are no more than the 120% AMI rents for the applicable rent by bedroom amounts, as described in the then applicable MSHDA Income and Rent Limits table. 10.3 Satisfy MSDHA Eligibility Reguirment. Developer must ensure that households are eligibility at the time of initial occupancy by requiring that households self-certifying using the MSDHA Household Income Self—Certification Form or as othenNise approved by MSHDA. 10.4 Term of affordability The Developer shall ensure that all affordable residential units are occupied by households or individuals that meet income requirements and that the rents being charged on an annual basis are no more than the 120% AMI rents for the applicable rent by bedroom amounts, as described in the then applicable MSHDA Income and Rent Limits table for a period of sixteen (16) years for the term of this agreement. After the sixteen year period has expired the Developer may charge market rental rates for all residential units. 10.5 Project Renderings, Drawings or Plans. Developer shall provide any updated conceptual renderings, architectural or engineering drawings or plans for the Project (collectively “Project Plans”) to the BRA within a reasonable time after any Project Plan is completed. Any substantial deviation in the Project or Project Plans requires the consent of the BRA, which shall not be unreasonably withheld, conditioned or delayed. Final Project Plans or ‘As Built’ plans shall be submitted to the BRA within 10 days of their completion. Page 6 of 8  11.4 Tax Credits/Other State Incentives. To assist and support Developer’s application to receive state tax credits or other state incentives for which either Developer or the Project is eligible. 12. Legislative Authorization. This Agreement is governed by and subject to the restrictions set forth in Act 381. If there is legislation enacted in the future which alters or affects the amount of TIR subject to capture or Eligible Activities, then the Developer’s rights and the BRA’s obligations under this Agreement may be modified accordingly by agreement of the parties. 13. Freedom of Information Act. Developer understands that all documents, with the exception of any protected confidential financial information, submitted by Developer to either the City or BRA may be subject to release under the Freedom of Information Act, Act No. 442 of the Public Acts of 1976 (“FOIA”), and that the City has the final determination regarding to what extent such documentation should be released, partially or in their entirety. No claim of trade secrets or other privilege or exception to FOIA will be asserted by Developer as it relates to this Agreement or such other documents. 14. Plan Modi?cation. The Plan and this Agreement may be modified to the extent allowed under Act 381 by mutual agreement of the parties. 15. Notices. All notices and other communications required or permitted under this Agreement are effective only if done in writing and delivered (i) personally, (ii) one day after being sent by overnight courier, or (iii) three days after being mailed by registered mail, return receipt requested, to the following addresses (or any other address that is specified in writing by either party): lfto Developer: Allen Edwin 2186 East Centre Portage, MI 49002 lfto the BRA: Chairperson Brownfield Redevelopment Authority With copy to: Richard Cherry Miller Johnson 100 West Micigan Ave Suite 200 Kalamazoo, MI 49007 Page 7 of 8  17.2 Rebate of TlR. To obtain the immediate rebate of all payments made to Developer for reimbursement of Developer’s Eligible Costs that BRA paid through date of the event of default. 17.3 Expenses Incurred by BRA. To reimburse BRA for all costs and expenses, except for attorney fees. 18. Governing Law. This Agreement is governed under applicable Michigan law. Both parties had the assistance of legal counsel in the negotiation and preparation of this Agreement. Therefore, no construction or ambiguity of this Agreement is resolved against either party. 19. Binding E?‘ect/Third Parties. This Agreement is binding on and shall inure to the benefit of the parties to this Agreement and their respective successors. This Agreement may not be assigned by any party without the prior written consent of the other party. The parties do not intend to confer any benefits on any person, firm, corporation, or other entity which is not party to this Agreement. 20. Waiver. A party does not waive any of its rights under this Agreement if that party fails to complain about an act or omission by the other party, no matter the duration of such act or omission. And a waiver by either party, whether expressed or implied, of any breach of a provision in this Agreement is not considered a waiver or consent to any subsequent breach of this same or other provision. 21. Authorization. Each of the parties represents and warrants to the other that this Agreement and its execution by the individual(s) on its behalf are authorized by the board of directors or other governing body of that party. 22. Entire Agreement/Countergarts. This Agreement supersedes all agreements previously made between the parties relating to the subject matter. There are no other understandings or agreements between them. This Agreement may be signed in counterparts, which together shall comprise a single agreement, and the effective date for which shall be the date it is signed by both parties. 23. Headings. Headings in this Agreement are for convenience only and shall not be used to interpret or construe its provisions. 24. De?nitions. The terms set forth in this Agreement shall have the same meaning as commonly used, except any term that is defined under FOIA, Act 381 or any other applicable state statute shall have the meaning set forth under that statute, as such may be amended. Dated: February _, 2025 CITY OF THREE RIVERS BROWNFIELD REDEVELOPMENTAUTHORITY By: Page 8 of 8