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Attachment: CD LED Street Lighting Replacement at Various Locations Bidtab (Awarding a contract for LED Street Lighting Replacement at Various Locations)

DATE: February 23, 2021

Attached is a resolution setting the date and time when the City Commission will hold a public hearing on the establishment of an Industrial Development District at 1705 Northridge Drive NW (the “Property”) for a project proposed by Process Engineering and Equipment Company (the “Applicant”). The Property is located in the Walkerview Business Park, which is the subject of the 425 Conditional Transfer of Property Agreement between the Cities of Grand Rapids and Walker, and was facilitated with the support of the Grand Rapids Brownfield Redevelopment Authority.

The public hearing will be held remotely for Tuesday, March 9, 2021, at 7:00 p.m. or in the City Commission Chambers on the 9th floor of City Hall, 300 Monroe Avenue NW, Grand Rapids, MI 49503 as allowed. square foot office and industrial facility for its operations. The subsequent agenda item

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contains a resolution scheduling a public hearing on an application for an Industrial Facilities Exemption Certificate and provides additional details on the project as well as estimated tax projections.

Attachment JG/jk

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YOUR COMMUNITY DEVELOPMENT COMMITTEE recommends adoption of the following resolution scheduling a public hearing to consider the establishment of an Industrial Development District for the property located at 1705 Northridge Drive NW.

RESOLVED:

1. That to consider the request of Process Engineering and Equipment Company to establish an Industrial Development District for the property located at 1705 Northridge Drive NW, as permitted by PA 198 of 1974, a public hearing be scheduled remotely for Tuesday, March 9, 2021, at 7:00 p.m. or in the City Commission Chambers on the 9th Floor of the City Hall, 300 Monroe Avenue NW, Grand Rapids, MI 49503 as allowed.

The information needed to access the meeting remotely is listed below:

Join Online:

https://cityofgr.webex.com/

Meeting ID: 179 948 9831 Password: grandrapids Join By Phone:

Call: 1-408-418-9388

Access Code: 179 948 9831

; and

2. That the application describing the district remains on file for inspection by the public in the Economic Development Department; and

3. That written notice be mailed to property owners within the proposed district and that the City Clerk shall publish said notice.

Prepared by Jonathan Klooster

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Exhibit A

1705 Northridge Drive NW Proposed Industrial Development District

1705 Northridge Drive NW

Walkerview Industrial Park (approximate)

Attachment: PECO - Map (Schedule Public Hearing on Industrial Development District for PECO in Walkerview)

DATE: February 23, 2021

Attached is a resolution setting March 9, 2020 at 7:00 p.m. as the date and time when the City Commission will hold a public hearing to consider a Revised Brownfield Plan Amendment (the “Revised Plan Amendment”) for Michigan Meadows, LLC (the

“Developer”) for the redevelopment project at 2233 Michigan Street NE (the “Project”).

The Revised Plan Amendment is being considered due to additional eligible costs incurred during the construction of the project, and in light of the construction delays imposed by the COVID-19 pandemic. The original Brownfield Plan Amendment was approved by the City Commission on September 18, 2018. The project is now complete and included capital investment of $16 million and the creation of 87 residential apartment units.

Due to the COVID-19 crisis, Executive Orders of the Governor prohibited construction employees from continuing work at the Project which resulted in carrying costs and loss of revenue due to opening later than planned. When invoices documenting eligible expenses were submitted, the Developer informed staff that the Project incurred additional eligible Brownfield costs of $365,508 due to significant challenges caused by poor soils encountered during the construction process. These additional costs were not anticipated during initial planning for the Project.

Tax increment revenue estimates show that these unanticipated costs can be reimbursed with local-only tax increment capture over a period of four years in addition to the approved reimbursement term. The proposed Revised Plan Amendment facilitates the extension of tax increment capture for the additional Brownfield activities identified by the Developer within the legislative limit of the Brownfield Redevelopment Finance Act while maintaining the ability of the BRA to capture tax increment revenue for the final five years to fund its Local Brownfield Revolving Fund.

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A similar request was approved by the City Commission in mid-2020 for the HGR-1, LLC project located at 10 Ionia Avenue NW. Staff recommends approval Revised Brownfield Plan Amendment, while confirming this action and the action related to the HGR-1, LLC project are recommended due to the impacts of the COVID-19 pandemic and should not be considered precedent-setting for future projects. The Brownfield Redevelopment Authority approved and recommended the Revised Plan Amendment at its January 27, 2021 meeting.

Attachments JG/JK/cb

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YOUR COMMUNITY DEVELOPMENT COMMITTEE recommends adoption of the following resolution scheduling a public hearing on a revised amendment to the Brownfield Plan of the City of Grand Rapids Brownfield Redevelopment Authority related to the Michigan Meadows, LLC Redevelopment Project.

WHEREAS:

1. The City Commission previously approved the Brownfield Plan (the "Plan") of the City of Grand Rapids Brownfield Redevelopment Authority (the "Authority") December 22, 1998, and an amendment to the Plan on September 18, 2018, for the Michigan Meadows, LLC Redevelopment Project (the "Amendment") pursuant to the Brownfield Redevelopment Financing Act, Act 381 of the Pubic Acts of Michigan of 1996, as amended, MCL 125.2651 et seq; and

2. The Authority has pursuant to Act 381 approved and recommended a revised amendment of the Plan revising the Amendment for the Michigan Meadows, LLC Redevelopment project (the "Project") identified therein (the "Revised Amendment");

and

3. Before considering approval of the Revised Amendment the City Commission must hold a public hearing in accordance with Act 381; therefore,

RESOLVED:

1. That a public hearing be held to consider the Revised Amendment to the Plan of the Authority; and

2. That the public hearing be held remotely on Tuesday, March 9, 2021, at 7:00 p.m., or in the City Commission Chambers on the 9^th Floor of the City Hall, 300 Monroe

3. That the City Clerk give or cause to be given public notice of the hearing in accordance with Act 381; and

4. That, in accordance with the provisions of Act 381, the City Clerk give or cause to be given notice of the public hearing to each of the taxing jurisdictions that levy taxes on property included in the Project subject to capture under Act 381; and

5. That a copy of the Revised Amendment be held in the Economic Development Office of the City located on the 9^th Floor of City Hall, 300 Monroe Avenue NW, in the City for public examination and inspection and shall also be available upon calling the City's Economic Development Office at (616) 456-3431; and

6. That all resolutions or parts of resolutions in conflict herewith shall be and the same are hereby rescinded.

Prepared by Christian Borg and Richard A. Wendt

REVISED AMENDMENT TO THE CITY OF GRAND RAPIDS

In 2018, Michigan Meadows, LLC ("Michigan Meadows") proposed to redevelop the property located at 2233 Michigan St. NE (the “Property”). Plans included the demolition of the existing church, attached school building and maintenance barn building. The development included a new public road, public utilities, streetlights, landscaping and private driveways accessing 87 townhome condo units in 23 two-, three- and four-unit buildings (the “Project”). The Project includes associated site improvements, green space, landscaping and hardscape.

The Project will significantly improve the overall use of the site by replacing the functionally obsolete church/school building with residential development. Total capital investment is estimated at $16 million. Construction commenced in 2018 and the Project is now complete.

This Revised Brownfield Plan Amendment (the “Revised Plan Amendment”) is being proposed due the impact of the COVID-19 pandemic, in addition to significant challenges and increased expenses due to poor soils encountered at the site. Due to Executive Orders of the Governor which prohibited construction employees from conducting work on the site, construction on the project was delayed, which added additional carrying costs to the project. This government-ordered delay also delayed the project’s opening, which resulted in lost revenue to the project. This Revised Plan Amendment is being proposed to allow the developer to include eligible activity costs which were incurred during the construction of the project which exceeded the limits established in the original Plan Amendment. In addition to the increased carrying costs due to the pandemic, significant expenses were incurred under the demolition, site preparation and public infrastructure expenditure categories due to the discovery of unsuitable soils across the site during construction.

Basis of Eligibility

Based on an inspection of the building by a Michigan Master Assessing Officer (MMAO), conducted on January 8, 2018, the building has been determined to be functionally obsolete.

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Attachment: 2233 Michigan - Revised Plan Amendment (Scheduling PH on Revised Brownfield Plan Amendment - Michigan Meadows, LLC)