HomeMy WebLinkAboutMay 13, 2020 - 20th Meeting
MINUTES OF THE 20th MEETING OF THE
CITY OF LIVONIA BROWNFIELD REDEVELOPMENT AUTHORITY
The 20th Meeting of the Brownfield Redevelopment Authority of Livonia was called
to order at 3:08 p.m., via the Zoom Platform, on Wednesday, May 13, 2020, by
Chairman Engebretson.
MEMBERS PRESENT: Jack Engebretson, Chairman
Lynda Scheel, Vice Chairman
Ken Harb, Secretary
Bill Fried, Treasurer (Partial)
Andrew Lendrum
Steven Vandette
Dillon Breen
Nicholas Lomako
MEMBERS ABSENT: None
OTHERS PRESENT: Mark Taormina, Planning & Economic Development
Director
Stephanie Reece, Program Supervisor
ROLL WAS CALLED. A quorum was present.
APPROVAL OF MINUTES
On a motion by Lendrum, seconded by Breen, and adopted, it was:
#01-2020 RESOLVED, that the Minutes of the 19th Meeting of the City of
Livonia Brownfield Redevelopment Authority and held November
20, 2019, are hereby approved as amended.
A roll call vote on the foregoing resolution resulted in the following:
AYES: Breen, Lendrum, Lomako, Harb, Vandette, Scheel,
Engebretson
NAYS: None
ABSENT: Fried
ABSTAIN: None
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 #12 (W-2019) FOR AUTHORIZED ELIGIBLE EXPENSES
Livonia Brownfield Redevelopment Authority
May 13, 2020
Page 2
Mr. Taormina: I will go over this very briefly. Again, this is reimbursement
payment #12 to the developer of Livonia Marketplace. We are
working with the taxable value of the property, real and personal
property as of December 31, 2019. For Livonia Marketplace that
totaled about $10, 841,000. We calculate the incremental value for
capture as being $5,242,553 for the Winter of 2019, which is this
pay period. The captured amounts include $56,452 in real
property taxes and then another $26,046 in personal property
taxes. The total capture, altogether, is $82,498.91. Of that total,
for distribution, $16,499.78 goes to the LSRRF. That represents
20% of the total capture. The balance would be computed as
$65,999.13, which is 80% that goes to the developer.
Mr. Engebretson: Thank you, Mr. Taormina.
Mr. Taormina: We provide a running total so you can see where this project
stands for the first 12 payments as far as what has been paid out
to the LSRRF, as well as the developer.
Mr. Engebretson; Thank you, Mark. Anything else? Mr. Slater? No. Well, if there
is no further discussion, a motion would be in order.
On a motion by Scheel, seconded by Lomako, and adopted, it was:
#02-2020 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 #12 (W-2019) to the “Owner” of the Livonia
Marketplace, Livonia Phoenix, LLC, in the amount of $65,999.13
for the reimbursement of eligible expenses related to the
redevelopment of the Former Livonia Mall Site; and
2) A deposit of $16,499.78 into the Livonia Brownfield
Redevelopment Authority’s Local Site Remediation Revolving
Fund (LSRRF).
A roll call vote on the foregoing resolution resulted in the following:
AYES: Scheel, Lomako, Lendrum, Harb, Vandette, Breen,
Fried, Engebretson
NAYES: None
ABSENT: None
ABSTAIN: None
Livonia Brownfield Redevelopment Authority
May 13, 2020
Page 3
As Item #4 started, Mr. Fried joined the meeting.
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 #10 (W-2019) FOR AUTHORIZED ELIGIBLE EXPENSES.
Mr. Taormina: Thank you. Payment #10, corresponding to the collection of the
2019 Winter taxes in relation to the Brownfield Livonia Commons
Plan, captures only the incremental taxes on the real property.
The personal property is not included as part of the TIF capture.
For the 2019 tax year, the valuable real property at the Commons
total $3,164,252. The base value, when you subtract that out, the
base value of roughly $1.7 million, the value for capture in this
case totals $1,423,452. We applied the tax rate of 25.2914 mils.
This generates a total capture of $36,001.09. All of which goes to
the developer for reimbursement of eligible Brownfield expenses.
With that, Mr. Chairman, I will answer any questions that you may
have.
Mr. Engebretson: Thank you, Mr. Taormina. Anybody have any questions or
comments?
Mr. Vandette: I don’t see where it says anywhere when this agreement ends. It
started in February 2014. When does this agreement end? What
year?
Mr. Taormina: I would have to go back to the reimbursement agreement to find
the exact language when that terminates. I don’t want to guess.
Each one of these projects has slightly varying durations. I can
certainly go back to the reimbursement agreement. I am not
looking at it right now. I am looking at the Cliff’s note version, so I
don’t have that reimbursement agreement. Maybe…Mike has a
steel trap for numbers…
Mr. Slater: No, but I will have before the end of the meeting. It is in my files. I
am looking right now.
Mr. Vandette: I was just curious because the others had a date when the
agreement would end. This one didn’t. Also, because the project
is fully complete. I wondered how many more years now that the
Livonia Brownfield Redevelopment Authority
May 13, 2020
Page 4
project is fully complete, how many more years are there under the
agreement for the reimbursement?
Mr. Taormina: I will tell you that one of the things we look at as we evaluate these
projects, is not only the total amount that they are seeking
reimbursement for, but also what is the capture? What is the
rough estimate of the capture? How close will that get them to the
full reimbursement of eligible costs, but also, what is a reasonable
period for these projects to extend out to? We equate these in
large part to other tax incentive projects, so many of them are in
that 12 to 13 to 14-year range. I am going to speculate that it
probably runs from 2014 to through 2028 or 2029 in this case.
Mike, your muted.
Mr. Slater: Yup. You are close but no cigar. The capture end date for Livonia
Commons is 2024. The last capture is the Winter taxes of 2024.
Mr. Engebretson: Mr. Lomako, I can tell you that my recollection is the period was
something defined by the owner and they were kind of on the light
end of the range that we normally work with. After approval was
given and everything got going, I recall they came back and asked
us to consider extending the date. We declined to do that. I don’t
know if that has any real value but…they defined the number of
years. I think it was a little shorter than it might have otherwise
been able to get. Any further discussion? We don’t’ have a motion
yet. There should be a motion.
On a motion by Lomako, seconded by Fried, and adopted, it was:
#03-2020 RESOLVED, that the City of Livonia Brownfield Redevelopment
Authority does hereby approve the distribution of Captured Taxes
from the Livonia Commons Project as follows:
Payment #10 (W-2019) to the “Owner” of Livonia Commons, TMA-
LIVCOM, LLC, in the amount of $36,001.09 for the reimbursement
of eligible expenses.
A roll call vote on the foregoing resolution resulted in the following:
AYES: Lomako, Fried, Lendrum, Harb, Breen, Vandette,
Scheel, Engebretson
NAYES: None
ABSENT: None
ABSTAIN: None
Livonia Brownfield Redevelopment Authority
May 13, 2020
Page 5
Mr. Engebretson, Chairman, declared the motion is carried and the foregoing
resolution adopted.
REVIEW OF LBRA TAX CAPTURE FOR LIVONIA MARKET II AND
CONSIDERATION OF TAX INCREMENT FINANCE (TIF) REIMBURSEMENT
PAYMENT #2 (W-2019) FOR AUTHORIZED ELIGIBLE EXPENSES.
Mr. Taormina: This particular Brownfield reimbursement agreement runs for a
period of a maximum of 11 years. January 1, 2019 marked the
official commencement date for the reimbursement period for
Livonia Marketplace II. According to the roll, the current tax value
of all real property at Market II equals $3,573,729. When you
subtract out the base value from this figure, it gives an incremental
value for capture of $2.267 million. The tax rate after that is
applied and results in a total capture of $36,947.14. What is
unique about this development is 25% of the captured taxes will go
to the LSRRF and the remaining 75% will go to the developer. In
this case, the revolving fund receives $9,236.78 and the developer
receives $27,710.35. Thank you.
Mr. Engebretson: Thank you, Mr. Taormina. Anyone else? Would someone like to
offer a motion?
On a motion by Lomako, seconded by Fried, and adopted, it was:
#04-2020 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 #2 (W-2019) to Livonia Market II, LLC in the amount
of $27,710.35 for the reimbursement of eligible expenses as
approved in the Brownfield Plan; and
2) A deposit of $9,236.78 into the Livonia Brownfield
Redevelopment Authority’s Local Site Remediation Revolving
Fund (LSRRF).
A roll call vote on the foregoing resolution resulted in the following:
AYES: Lomako, Fried, Lendrum, Harb, Breen, Vandette,
Scheel, Engebretson
NAYES: None
Livonia Brownfield Redevelopment Authority
May 13, 2020
Page 6
ABSENT: None
ABSTAIN: None
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 #2 (W-2019) FOR AUTHORIZED ELIGIBLE EXPENSES.
Mr. Taormina: Thank you. I will just cut right to the chase. When we moved the
base value for the total amount of taxes received for Haggerty
Place, the net result is only $211. 77. We have to break this down
again as the 20% going to the LSRRF and the other 80% going to
the developer. This is very similar to the distribution amounts that
we had for payment #1. It really reflects the incomplete status of
the project. These number will change substantially next year.
There will be $42.35 distributed to the revolving fund and $169.42
going to the developer. I think everyone understands this project
is…this is based on the value of the development as of December
2019. It was only getting started at that time. There has been
substantial completion. At this point, the retail development and
they have resumed construction on the residential portion or phase
of the development.
Mr. Engebretson: Good summary, Mark. Any questions or comments for Mr.
Taormina? We are looking for a motion for this expenditure.
On a motion by Scheel, seconded by Fried, and adopted, it was:
#05-2020 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 #2 (W-2019) to Haggerty Square, LLC in the amount
of $169.42 for the reimbursement of eligible expenses; and
2) A deposit of $42.35 into the Livonia Brownfield Redevelopment
Authority’s Local Site Remediation Revolving Fund (LSRRF).
A roll call vote on the foregoing resolution resulted in the following:
Livonia Brownfield Redevelopment Authority
May 13, 2020
Page 7
AYES: Breen, Lomako, Fried, Lendrum, Harb, Vandette,
Scheel, Engebretson
NAYES: None
ABSENT: None
ABSTAIN: None
Mr. Engebretson, Chairman, declared the motion is carried and the foregoing
resolution adopted.
Mr. Engebretson: Is there any other business that anyone would care to introduce?
If there is nothing else, we will move on.
ELECTION OF OFFICERS
On a motion by Lendrum, seconded by Lomako, and unanimously adopted, it was:
#06-2020 RESOLVED, that Jack Engebretson is hereby re-appointed to serve as
Chairman, that Lynda Scheel is hereby re-appointed to serve as Vice
President, that Kenneth Harb is hereby re-appointed to serve as
Secretary, and Bill Fried is hereby re-appointed to serve as Treasurer of
the City of Livonia Brownfield Redevelopment Authority for a one-year
period or until a successor is elected.
Mr. Engebretson, Chairman, declared the motion is carried and the foregoing resolution
adopted.
Mr. Engebretson: If there is nothing further, I am looking for a motion to adjourn.
On a motion duly made, seconded, and unanimously adopted, the 20th Meeting
held by the City of Livonia Brownfield Redevelopment Authority on May 13, 2020
was adjourned at 3:40 p.m.
Ken Harb, Secretary