Brownfield Redevelopment Authority Agenda Packet

Brownfield Redevelopment Authority https://www.grandrapidsmi.gov/Government/Meetings

Agenda Packet Grand Rapids, MI 49503

March 24, 2021 @ 8:00 AM Digital Meeting

Generated 3/22/2021 11:54 AM

I. Call to Order

1. Roll Call and Location Announcements

2. Excused Absences*

II. Minutes Approval

1. Approval of Minutes from February 24, 2021*

III. Action Items

1. Resolution approving and recommending a Brownfield Plan Amendment for the 900 W Leonard, LLC Redevelopment Project at 900 Leonard Street NW* (Jonathan Klooster)

2. Resolution approving submission of a Grant Application of up to $1,000,000 to the Michigan Department of Environment, Great Lakes and Energy for the 1601 Madison Redevelopment Project* (Jonathan Klooster)

IV. Other Business

V. Public Comment

VI. Adjournment

*MOTION REQUIRED TO APPROVE

In an effort to promote public health, welfare, and safety, this meeting will be held remotely via Webex*. You can participate in the meeting in one of the following ways:

ONLINE cityofgr.webex.com

EVENT NUMBER: 129 858 1699 PASSWORD: brownfield

BY PHONE CALL: 1-408-418-9388

ACCESS CODE: 129 858 1699

Please RSVP to Regina Pell at [email protected] or (616) 456-3431

NEXT MEETING: Wednesday, April 28, 2021 8:00 AM https://www.grandrapidsmi.gov/Government/Meetings, Digital Meeting

Members: Guillermo Cisneros, Chair Troy Butler, Treasurer Micah Perkins, Member

Lynn Rabaut, Vice Chair Nathaniel Moody, Comm. John Van Fossen, Member

Kristine Bersche, Secretary Kim McLaughlin, Member Joshua Verhulst, Member

Staff Members: Jeremiah Gracia Regina Pell

Jonathan Klooster Tricia Chapman

Christian Borg

Legal Counsel: Richard Wendt

Jessica Wood

Copies To: Eric DeLong

Tim Mroz

Brownfield Redevelopment Authority https://www.grandrapidsmi.gov/Government/Meetings

Minutes Packet Grand Rapids, MI 49503

February 24, 2021 @ 8:00 AM Digital Meeting

Generated 3/19/2021 10:53 AM

I. Call to Order The meeting was called to order at 8:04 AM by Chair Guillermo Cisneros.

PRESENT: Guillermo Cisneros, Lynn Rabaut (8:07), Troy Butler, Micah Perkins, Kimberly McLaughlin, John Van Fossen

ABSENT: Commissioner Nathaniel Moody, Kristine Bersche, Josh Verhulst OTHERS PRESENT:

Jeremiah Gracia, Jonathan Klooster, Regina Pell, Christian Borg, Jessica Solis, Tricia Chapman, Richard Wendt (legal counsel), Jeff Edwards (Rockford Construction)

1. Roll Call and Location Announcements The board announced the locations from which they were attending the meeting remotely. Guillermo Cisneros was attending from Grand Rapids, Michigan. Troy Butler was attending from Marne, Ottawa County, Michigan. John Van Fossen was attending from Kent County, Michigan. Micah Perkins was attending from Grand Rapids, Kent County, Michigan. Kim McLaughlin was attending from Kent County, Michigan. 2. Excused Absences Regina Pell listed the members who had alerted the Executive Director that they would be unable to attend ahead of time. Motion to approve the absences of Kristine Bersche and Nathaniel Moody.

RESULT: ADOPTED [UNANIMOUS] MOVER: John Van Fossen, Member SECONDER: Kim McLaughlin, Member YEAS: Cisneros, Butler, McLaughlin, Perkins, Van Fossen ABSENT: Lynn Rabaut, Kristine Bersche, Nathaniel Moody, Joshua Verhulst

Lynn Rabaut arrived at 8:07 AM. She was attending from Macomb County, Michigan. II. Minutes Approval 1. Approval of Minutes from January 27, 2021

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The minutes from January 27, 2021 were reviewed. No comments or corrections were noted. Motion to approve the January 27, 2021 Minutes.

RESULT: ACCEPTED [UNANIMOUS] MOVER: Lynn Rabaut, Vice Chair SECONDER: Troy Butler, Treasurer YEAS: Cisneros, Rabaut, Butler, McLaughlin, Perkins, Van Fossen ABSENT: Kristine Bersche, Nathaniel Moody, Joshua Verhulst

III. Financial Statements 1. FY2021 Interim Financial Statements as of January 31, 2021 Tricia Chapman introduced herself and presented the financial statements. No comments or corrections were noted.

Motion to approve Statement C: Schedule of Payments and Expenditures from December 1, 2020 – January 31, 2021.

RESULT: APPROVED [UNANIMOUS] MOVER: Troy Butler, Treasurer SECONDER: John Van Fossen, Member YEAS: Cisneros, Rabaut, Butler, McLaughlin, Perkins, Van Fossen ABSENT: Kristine Bersche, Nathaniel Moody, Joshua Verhulst

IV. Action Items 1. Resolution approving a Work Plan and approving and authorizing execution of a

Development and Reimbursement Agreement and Local Brownfield Revolving Fund Loan Agreement for 1601 Madison, LLC for a project located at 1601 Madison Avenue SE

Christian Borg presented the Work Plan and LBRF Loan Agreement for the 1601 Madison, LLC redevelopment project. Phase One of redevelopment of the 10-acre site will demolish existing building to build a office/industrial building and surface parking lot. The board approved the project’s Brownfield Plan on December 9, 2020, and no significant changes have taken place since that time. Jeff Edwards with Rockford Construction gave some additional information on the development.

Motion to approve a Work Plan and Development and Reimbursement Agreement and Local Brownfield Revolving Fund Loan Agreement for 1601 Madison, LLC for a project located at 1601 Madison Avenue SE.

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RESULT: APPROVED [UNANIMOUS] MOVER: John Van Fossen, Member SECONDER: Lynn Rabaut, Vice Chair YEAS: Cisneros, Rabaut, Butler, McLaughlin, Perkins, Van Fossen ABSENT: Kristine Bersche, Nathaniel Moody, Joshua Verhulst

2. FY2021 Budget Amendment Request Mr. Borg presented the item, which adjusts the budget to account for additional Tax Increment Revenue and developer reimbursements. This was necessary due to the budgeting deadlines necessitating the budget be based on estimates, which began in FY2020. Motion to amend the FY2021 budget to account for increased revenue and

anticipated expenditures.

RESULT: APPROVED [UNANIMOUS] MOVER: John Van Fossen, Member SECONDER: Lynn Rabaut, Vice Chair YEAS: Cisneros, Rabaut, Butler, McLaughlin, Perkins, Van Fossen ABSENT: Kristine Bersche, Nathaniel Moody, Joshua Verhulst

V. Other Business None. VI. Public Comment None. VII. Adjournment The meeting was adjourned at 8:26 AM by Chair Cisneros.

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DATE: March 24, 2021

BOARD: Brownfield Redevelopment Authority

FROM: Jeremiah Gracia, Economic Development Director

Economic Development Department

SUBJECT: Resolution approving and recommending a Brownfield Plan

Amendment for the 900 W Leonard, LLC Redevelopment Project

at 900 Leonard Street NW

Attached is a resolution approving and recommending a Brownfield Plan Amendment filed by 900 W Leonard, LLC (the “Developer”) for a redevelopment project proposed at 900 Leonard Street NW (the “Property”). The Property qualifies for the Brownfield program because it has been determined to be a “facility” under Part 201 of the Natural Resources and Environmental Protection Act, Act 451 of 1994, as amended. The Developer owns the Property and proposes to demolish the former YMCA building to construct a new, mixed-use four-story building containing 1,500 square feet of ground-floor retail space and 119 market-rate residential units. Total investment in the project is estimated at $14.6 million with hard construction costs of approximately $12.8 million. Ten new jobs are expected to be created by the tenant of the commercial space, with wages anticipated to be $15.00 per hour with benefits. The Developer is requesting reimbursement of up to $914,207 for brownfield eligible activities including environmental assessment, demolition, lead and asbestos abatement, site preparation, and infrastructure improvements. Reimbursement is expected to occur over an 8-year period, with an additional five years of capture for the Local Brownfield Revolving Fund. The Developer is also seeking approval of a Neighborhood Enterprise Zone tax exemption. The project qualifies for a 15-year NEZ, pursuant to City Commission Policy 900-45, adopted on January 30, 2018, because it proposes to meet two City Investment Criteria. The Developer is proposing to provide a housing type that comprises less than 20% of the existing housing stock in census tract 16 (Criteria 2.A.) and will also work cooperatively with The Rapid to finance the installation of a covered bus shelter (Criteria 3.B.) on the south side of Leonard NW adjacent to the Property. The Developer is working towards the following subcontractor participation goals in connection with the project for Micro-Local Business Enterprises (MLBEs), Women-Owned Business Enterprises (WBE), and Minority-Owned Business Enterprises (MBE) during construction: 7.5% MBE, 1% WBE, and 5.85% MLBE. These levels of participation would amount to 14.35%, or approximately $1,830,000 of the overall

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project construction costs. The project meets multiple objectives of the City’s Strategic Plan and Equitable Economic Development and Mobility Strategic Plan, including:

• Prioritization of MBE, WBE, and MLBE businesses and subcontractors for projects supported by City incentives, and

• Facilitates increased housing supply through the development of a variety of housing types.

Staff estimates that the residents of the apartments could generate approximately $29,119 in new City income taxes annually. As proposed, the apartments would be comprised of studio, one-bedroom, and two-bedroom units, which are detailed below. According to the housing needs assessment recently completed by Bowen National Research, there is demand for 1,469 new rental units in the 80%-120% of area median income (AMI) category by 2025 when factoring for the “step-down gain” of those that have higher incomes but choose to spend less than 30% of their income on housing. Additionally, the study estimates that the number of households that fall within those income ranges will increase by 751 households during that same time period in the City of Grand Rapids.

Number of Units

Est. Household Affordability*

Est. Monthly Rent

Bedrooms Square Feet

40 <80% AMI $930 Studio 338

59 80% AMI $1,170 1 528

20 100% AMI $1,500 2 792 *Area Median Income (AMI) ranges are for price-point reference, do not include other housing costs, and are found in the 04/01/2020 Income and Rent Limits by number of bedrooms in a unit for Kent County, published by the Michigan State Housing Development Authority. The apartment units are not income restricted to households in these AMI ranges.

There are no known environmental concerns at the Property, and the Developer is current on its tax liabilities to the City. Planning Commission approval is not required for the project, which is permitted in the zone district. The project aligns with the Westside Area Specific Plan and has received support from the West Leonard Business Association and West Grand Neighborhood Organization. The project also received support from the Westside Corridor Improvement Authority at their meeting on March 5, 2021 and was presented to the Economic Development Project Team and SmartZone Local Development Finance Authority on March 9, 2021 and March 10, 2021, respectively. If approved, the City Commission would consider scheduling a public hearing on the Brownfield Plan Amendment at its April 13, 2021 meeting.

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https://www.michigan.gov/documents/mshda/mshda_crh_il_93_income_limits_040120_685451_7.pdf

Project Projections – 900 Leonard Avenue NW

Total Amount

City of Grand Rapids Portion

Westside CIA Portion

Investment - Real Property $12,807,520 - -

Investment - Personal Property $327,500 - -

Retained Jobs (FTE) 0 - -

New Jobs (FTE) 10 - -

Average Hourly Wage $15.00 - -

Total New Taxes Generated (1 year) $285,550 $1,956 $44,972

Taxes Paid (1 year) $145,799 $739 $16,661

Taxes Abated (1 year) $139,751 $1,217 $28,311

New City Income Taxes - $32,239 -

Attachments JG/JK/cb

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CITY OF GRAND RAPIDS

BROWNFIELD REDEVELOPMENT AUTHORITY

RESOLUTION APPROVING AND RECOMMENDING AMENDMENT TO THE CITY OF GRAND RAPIDS BROWNFIELD REDEVELOPMENT AUTHORITY BROWNFIELD PLAN TO INCLUDE THE 900 W LEONARD REDEVELOPMENT PROJECT

Boardmember _____________, supported by Boardmember _____________, moved the adoption of the following: WHEREAS: 1. The Board of the City of Grand Rapids Brownfield Redevelopment Authority (the

"Authority") on November 23, 1998, approved and recommended the Authority's Brownfield Plan (the "Plan"), which Plan was subsequently approved by the City Commission of the City of Grand Rapids (the "City") on December 22, 1998, pursuant to the Brownfield Redevelopment Financing Act, Act 381 of the Public Acts of Michigan of 1996, as amended, MCL 125.2651 et seq. ("Act 381"); and,

2. Pursuant to Act 381, an amendment to the Plan in the form of Exhibit A attached hereto for The 900 W Leonard Redevelopment Project (the "Project") identified therein (the "Amendment") has been presented at this meeting; and,

3. The Board of the Authority has received and reviewed the Amendment prepared in accordance with Section 13(1) of Act 381; therefore,

RESOLVED: 1. The Amendment complies with all the requirements set forth in Section 13(1) of Act

381; and,

2. The Project is reasonable and necessary to carry out the purposes of Act 381; and,

3. The Amendment is hereby approved and recommended to the City Commission of the City; and,

4. All resolutions and parts of resolutions insofar as they conflict with the provisions of this resolution be and the same are hereby rescinded.

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YEAS: Boardmembers NAYS: Boardmembers ABSTAIN: Boardmembers ABSENT: Boardmembers RESOLUTION DECLARED ADOPTED. Dated: March 24, 2021

Kristine Bersche, Secretary

CERTIFICATION

I, the undersigned duly qualified and acting Secretary of the City of Grand Rapids Brownfield Redevelopment Authority (the "Authority") do hereby certify that the foregoing is a true and complete copy of a resolution adopted by the Board of Directors of the Authority at a meeting held March 24, 2021, and that public notice of the meeting was given pursuant to Act 267 of the Public Acts of Michigan of 1976, as amended. Dated: March 24, 2021

Kristine Bersche, Secretary Prepared by Christian Borg

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900 W Leonard, LLC 900 Leonard Street NW

Proposed Brownfield/NEZ

900 Leonard Street NW

Economic Development Department March 2021

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AMENDMENT TO THE CITY OF GRAND RAPIDS BROWNFIELD REDEVELOPMENT AUTHORITY BROWNFIELD PLAN FOR THE

900 W LEONARD REDEVELOPMENT PROJECT

March 24, 2021

Introduction

The proposed project involves the demolition of the existing buildings located at 900 Leonard Street NW (the “Property”) that contain a total of 24,630 square feet and preparation of the site for construction of a new approximately 80,200 square foot four-story mixed-use multifamily residential apartment building with first floor retail space (the “Project”) by 900 W Leonard LLC (the “Developer”). The Project will include subgrade parking below the building and is anticipated to include approximately 119 residential apartments with first floor retail space of approximately 1,500 square feet. The Property encompasses approximately 1.12 acres. The Project will include department specific activities, demolition, lead and asbestos abatement, site preparation, and infrastructure improvements (including a public bus stop shelter). Construction is expected to begin in the summer of 2021 and is estimated to be completed within 12 months. The Project is expected to create 10 full-time employees with average wages of approximately $15/hr. Total capital investment in the Project is estimated to be approximately $15.6 million.

Basis of Eligibility

Subsurface investigation results of the Property identified benzene, ethylbenzene, and xylenes in soil samples at concentrations exceeding the EGLE Part 201 Generic Residential Cleanup Criteria (“GRCC”). Therefore, the Property is considered an “eligible property” as defined in the Act because the Property is classified as a “facility” under Part 201 of the Natural Resources and Environmental Protection Act, Act 451 P.A. 1994, as amended (“NREPA”). See Figure 3 for a summary of contamination. The Property includes one parcel of property located at 900 Leonard Street NW (Tax Parcel No. 41-13-23-227-025). See Figure 1&2 for legal description, parcel size, and maps of the Property.

Required Elements of Brownfield Plan

1. A description of costs intended to be paid for with the tax increment revenues. (MCLA 125.2663(2)(a))

The Developer will seek tax increment financing (“TIF”) from available local taxes, school operating taxes, and state education tax millage for eligible activities at the Property, including department specific activities, demolition, lead and asbestos abatement, site preparation,

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infrastructure improvements, brownfield plan/work plan preparation and development, a 15% contingency, and an administrative fee to be paid to the Authority.

Table 1 below presents estimated costs of the eligible activities for the Project which qualify for reimbursement from tax increment financing. The Property is located in a TN zoning district, the Westside Corridor Improvement District and the SmartZone.

Table 1 – Eligible Activities

Task Cost Estimate

1. Department Specific Activities $10,000

2. Demolition $128,000

3. Lead and Asbestos Abatement $10,000

4. Site Preparation $100,000

5. Infrastructure Improvements $531,700

Eligible Activity Sub-total $779,700

6. Contingency (15% - excludes due diligence costs) $115,455

7. Brownfield Plan Amendment/Work Plan Preparation and Development $10,000

8. Local Prepaid Brownfield Fee $9,052

ELIGIBLE ACTIVITY TOTAL $914,207

2. A brief summary of the eligible activities that are proposed for each eligible property. (MCLA 125.2663(2)(b))

“Eligible activities” are defined in the Act as meaning one or more of the following: (i) department specific activities; (ii) relocation of public buildings or operations for economic development purposes; (iii) reasonable cost of environmental insurance; (iv) reasonable cost of developing, preparing and implementing brownfield plans, combined brownfield plans, and work plans; (v) demolition of structures that is not a response activity under Part 201 of NREPA; and (vi) lead, asbestos, or mold abatement. In addition, in qualified local governmental units such as the City of Grand Rapids, the Act includes the following additional activities under the definition of “eligible activities”: (A) infrastructure improvements that directly benefit eligible property; and (B) site preparation that is not a response activity under Part 201 of NREPA.

The cost of eligible activities is estimated in Table 1 above and includes the following:

1. Department Specific Activities. Activities include a Phase I ESA, Phase II ESA, baseline environmental assessment, and preparation of a Due Care Plan.

2. Demolition. Demolition activities will include demolition of the existing building and site improvements in preparation for the proposed redevelopment.

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3. Lead and Asbestos Abatement. Due to the age of the buildings, it is expected that lead and asbestos materials may be encountered during the demolition process. Therefore, the proposed abatement costs will include proper assessment, removal and disposal of any materials encountered during the rehabilitation process. The cost includes the cost of the initial survey to determine the presence of materials required for abatement.

4. Site Preparation. Site preparation activities include mass grading and land balancing and utility relocation.

5. Infrastructure Improvements. Infrastructure improvements that directly benefit the

Project include road repair, sidewalks, curb/gutter, subgrade parking, and installation of a public bus stop shelter.

6. Contingency. A 15% contingency (excludes department specific costs) is included to cover unexpected cost overruns encountered during construction.

7. Brownfield Plan Amendment/Work Plan Preparation, Development and Implementation. Costs incurred to prepare and develop this Plan Amendment and proposed Act 381 Work Plan, as required per Act 381 of 1996, as amended.

8. Prepaid Brownfield Authority Administrative Fee. The Authority will be charging the Developer an administrative fee for the administration of this Plan Amendment and the proposed Work Plan. The Developer will seek reimbursement of this fee from local tax increment revenues.

3. An estimate of the captured taxable value and tax increment revenues for each year of the Plan from each parcel of eligible property and in the aggregate. (MCLA 125.2663(2)(c))

An estimate of real property tax capture for tax increment financing is attached as Table 1.

4. The method by which the costs of the Plan will be financed, including a description of any advances made or anticipated to be made for the costs of the Plan from the City. (MCLA 125.2663(2)(d))

The cost of the Eligible Activities included in this Plan Amendment will initially be paid for by the Developer and it will seek reimbursement through available tax increment revenue during the term of the Plan Amendment.

5. The maximum amount of the note or bonded indebted indebtedness to be incurred, if any. (MCLA 125.2663(2)(e))

Bonds will not be issued for the Project.

6. The duration of the Plan, which shall not exceed the lesser of (1) the period required to pay for the eligible activities from tax increment revenues plus the period

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of capture authorized for the local site remediation revolving fund or (2) 30 years. (MCLA 125.2663(2)(f)).

The duration of the Plan Amendment for the Project is estimated to be 14 years. It is estimated that redevelopment of the Property will be completed by the second quarter of 2022 and that it will take up to 10 years to recapture the eligible activities costs through tax increment revenues, plus up to five years of capture for the Local Brownfield Revolving Fund (the “LBRF”), if available. Therefore, the first year of tax increment capture will be 2022 and the Plan Amendment will remain in place until the Developer is fully reimbursed and the Authority has completed capture for the LBRF capture, if available, subject to the maximum duration provided for in MCL 125.2663. The Authority intends to capture funds to fund the LBRF with tax increment revenue capture, if available.

7. An estimate of the impact of tax increment financing on the revenues of all taxing jurisdictions in which the Property is located. (MCLA 125.2663(2)(g))

An estimate of real property tax capture is attached as Table 1.

8. A legal description of each parcel of eligible property to which the Plan applies, a map showing the location and dimensions of each eligible property, a statement of the characteristics that qualify the property as eligible property, and a statement of whether personal property is included as a part of the eligible property. (MCLA 125.2663(2)(h))

a. See legal description and site map in Figure 1.

b. The Property is a “facility”. See the summary of contamination in Figure 3 for documentation of the Property’s facility status.

c. Characteristics of Property:

The Property was initially developed with five residential homes and a lumber yard prior to 1895 until approximately 1950 when the Salvation Army Citadel was constructed on the north end of the Property. The Citadel, a lumber three residences remained at the Property from 1950-1957 when the lumber yard was razed and the YMCA was constructed. The assemblage of uses remained until 1979 when the Citadel was razed and the west portion of the existing building was constructed. One residence remained on the southwest portion of the Property until 1980. The Property was the location of the YMCA from 1981 to 2011 when the Geek Group, a crypto currency mining and internet technology business, acquired the Property. The Geek Group remained from 2011 to 2019 and has been vacant since.

d. Personal property: New personal property added to the Property is included

as part of the “eligible property” to the extent it is taxable.

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9. An estimate of the number of persons residing on each eligible property to which the Plan applies and the number of families or individuals to be displaced, if any. (MCL 125.2663(2)(i))

There are no persons currently residing on this Property and, therefore, no families or individuals will be displaced.

10. A plan for establishing priority for the relocation of persons displaced by implementation of the Plan, if applicable. (MCLA 125.2663(2)(j))

This section is inapplicable to this site as there are no persons residing on this Property.

11. Provision for the costs of relocating persons displaced by implementation of the Plan, and financial assistance and reimbursement of expenses, if any. (MCLA 125.2663(2)(k))


12. A strategy for compliance with the Michigan Relocation Assistance Act, if applicable (MCLA 125.2663(2)(l))


13. A description of the proposed use of the local site remediation revolving fund. (MCLA 125.2663(2)(m))

The LBRF will not be used for the Project but may be used for other brownfield projects within the City of Grand Rapids.

14. Other material that the Authority or the City Council considers pertinent. (MCLA 125.2663(2)(n))

The Project will significantly improve the overall use of the Property by removing the vacant buildings and replacing them with new residential housing in a multistory building. The Project is located along Leonard on the Westside. The Project will result in an increase in property and income tax revenues for the City of Grand Rapids and State of Michigan.

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Figure 1

Property Description Property Address: 900 Leonard Street NW, Grand Rapids, MI Tax Parcel No.: 41-13-23-227-025 Parcel Size: 1.103 acres Legal Description: LOTS 1 THRU 5 INCL BLK 3 ALSO LOT 6 BLK 3 EX COM 6 FT SLY ALONG W LINE OF SD LOT FROM NW COR OF SD LOT TH NLY ALONG W LINE OF SD LOT 6 FT TO NW COR OF SD LOT TH ELY ALONG N LINE OF SD LOT 6 FT TH SWLY TO BEG ALSO LOTS 7 THRU 9 INCL BLK 3 ALSO ALL OF VAC PORTION OF E&W ALLEY ADJ TO SD LOT 7 BLK 3 ON N * GELOCK & VANBREE'S ADDITION

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Figure 2

Eligible Property Map

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Figure 3

Summary of Contamination

Address Sample Locations/Contaminants above EGLE GRCC

Basis of Brownfield Eligibility

900 Leonard Street NW

[SB-4] Soil: • Volatile Organic Compounds:

− Benzene − Ethylbenzene − Xylenes

Facility

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BASELINE ENVIRONMENTAL ASSESSMENT CONDUCTED PURSUANT TO SECTION 20126(1)(C)

OF 1994 PA 451, PART 201, AS AMENDED, AND THE RULES PROMULGATED THEREUNDER

FORMER YMCA

900 LEONARD STREET NW GRAND RAPIDS, MICHIGAN

SES Project Number: 20-959

October 6, 2020

Prepared For:

Mr. Brad Laackman 900 West Leonard, LLC

280 Ann Street NW Grand Rapids, Michigan 49054

Prepared By:

Thomas Stolz, CPG

4000 Portage Street, Ste. 108 Phone: 269-321-5020 Kalamazoo, Michigan 49001 Fax: 866-856-8921

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TABLE OF CONTENTS 1.0 INTRODUCTION AND DISCUSSION ................................................................................ 1

1.1 Prospective owner and Operator Information and Intended Property Use ..................................................................................... 1

1.2 AAI/ASTM E1527-05 Executive Summary .............................................................. 1 1.3 Exceptions, Deletions, or Data Gaps ...................................................................... 3 1.4 Previous Soil and Groundwater Characterization ................................................... 3 1.5 Basis for BEA Facility Determination ...................................................................... 5 2.0 PROPERTY INFORMATION ............................................................................................... 6 3.0 FACILITY STATUS ............................................................................................................. 7 3.1 Contaminant Identity ............................................................................................... 7 3.2 Contaminated Media and Location ......................................................................... 7 3.3 Discarded or Abandoned Containers ...................................................................... 8 4.0 IDENTIFICATION OF THE AUTHOR OF THE BEA ........................................................... 8 5.0 ASTM PHASE I ENVIRONNMENTAL SITE ASSESSMENT .............................................. 8 6.0 CONCLUSIONS, FUTURE DIFFERENTIATION, AND/OR ALTERNATIVE APPROACHES .......................................................................... 8 7.0 REFERENCES .................................................................................................................... 9 Attachments:

Attachment A: Figures Attachment B: SES Phase I ESA Attachment C: Tax Description Attachment D: Qualifications of the Environmental Professional

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Page 1

Stolz Environmental Solutions, LLC 4000 Portage Street, Ste. 108 Phone: 269-321-5020 Kalamazoo, MI 49001 Fax: 866-856-8921

© 2020 Stolz Environmental Solutions, LLC

1.0 INTRODUCTION AND DISCUSSION

Stolz Environmental Solutions, LLC (SES), has prepared this Baseline Environmental Assessment

(BEA) pursuant to Section 20126 of Part 201 of the Natural Resources and Environmental Protection Act

(NREPA), Public Act 451 of 1994, as amended December 14, 2010 (Part 201), for the former YMCA site

located at 900 Leonard Street NW in Grand Rapids, Michigan (Property). The report was prepared to meet

NB? V-IHN?HN I@ ; ,/+W L?KOCL?G?HNM ;M >?M=LC<?> CH NB? =OLL?HN Michigan Department of Environment,

Great Lakes, and Energy (MDEGLE) Baseline Environmental Assessment Submittal Form. The BEA was

completed on October 6, 2020. A Property Location Diagram is included as Figure 1 in Attachment A of

this report. Previous BEAs were submitted for the Property to the MDEGLE in 2006 and 2011 and are

identified as BEA # 200601962GR, 200702113GR, and 201102883GR.

1.1 Prospective Owner and Operator Information and Intended Property Use

900 West Leonard, LLC, the prospective owner of the Property, ;ONBILCT?> 7/7XM J?L@ILG;H=? I@

this BEA. The prospective owner intends to acquire the Property for investment purposes. The

prospective owner intends to maintain the buildings, pavements, and vegetative cover present on the

Property at the time of the walkover although building of structures, or alterations to the surface cover, may

occur in the future.

A Phase I Environmental Site Assessment (ESA), dated October 6, 2020, was conducted by SES

on the Property. 7/7XM 5B;M? 1 /7+ CH=FO>?> NB? L?PC?Q I@ JL?PCIOM ?HPCLIHG?HN;F ;MM?MMG?HNM @IL NB?

Property. MDEGLE file information indicated soil on the southeast portion of the Property is impacted with

benzene, ethylbenzene, and xylenes at concentrations in excess of the MDEGLE Generic Residential

Cleanup Criteria (GRCC). 8B?L?@IL?$ NB? 5LIJ?LNS CM ; V0;=CFCNSW ;M >?@CH?> <S 5;LN (&'%

A Property Layout Diagram depicting the existing Property features is presented as Figure 2 in

Attachment A.

1.2 AAI/ASTM E1527-05 Executive Summary

The historical uses of the Property were evaluated as part of the Phase I ESA conducted by SES,

dated October 6, 2020 and included in Attachment B of this report. Recognized environmental conditions

(RECs) were identified in connection with the Property. The ?R?=ONCP? MOGG;LS @LIG 7/7XM 5B;M? 1 ESA

is presented below:

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1. Historical sources, including aerial photographs, previous environmental assessments, city directories, tax assessment records, and Sanborn Fire Insurance maps, indicated the Property was initially developed with at least five residences and a lumber yard prior to 1895. The Property was the location of up to five residences and a lumber yard from 1895 until approximately 1950, when a Salvation Army Citadel was constructed on the northwest portion of the Property. The Property was the location of a Salvation Army Citadel, Lumber Yard, and three residences from 1950 until 1957, when the lumber yard Q;M L;T?> NI =IHMNLO=N NB? ?;MN JILNCIH I@ NB? =OLL?HN <OCF>CHA ;M NB? V:3-+ U 9?MNMC>? ,L;H=B%W The Property was the location of the Salvation Army Citadel, YMCA, and three houses until 1979, when the former Citadel was razed to construct the west portion of the current building. One residence remained on the southwest portion of the Property in 1968. The last residence was razed in approximately 1980. The Property was the location of the YMCA and parking lot from 1981 until 2011, when the Geek Group, a crypto currency mining and internet technology business acquired the Property. The Geek Group remained on the Property from 2011 OHNCF (&')% 8B? 5LIJ?LNS Q;M P;=;HN @LIG (&') OHNCF NB? NCG? I@ 7/7XM Q;FEIP?L%

2. SES reviewed previous environmental site assessments performed at the Property, which included

investigations of the site which have been undertaken by Rose & Westra, Inc. of Grand Rapids, Michigan (R&W) in 2006, 2010, and 2011. The Property is a known Baseline Environmental Assessment (BEA) site based on BEAs submitted for the Property by R&W in 2006 and in 2011. Based on information obtained from the R&W BEAs, the Property is a Facility, as defined by Part 201.

Specifically, R&W identified that a heating oil underground storage tank was removed from the area adjacent to the southeast corner of the building in March 2006. Soil sampling in 2006 indicated soil at the Property was impacted with benzene, toluene, ethylbenzene, xylenes, 1,2,4-trimethylbenzene (TMB), and 1,3,5-TMB at concentrations in excess of the MDEGLE Generic Residential Cleanup Criteria (GRCC). Sampling performed in 2010 confirmed soil impact well in excess of the MDEGLE GRCC for benzene, ethylbenzene, and xylenes. The area of the former UST has been covered with a concrete slab, which limits infiltration of precipitation, and thus degradation of the known soil impact. The known benzene, ethylbenzene, and xylene soil impact at the Property represented an REC. Based on the known soil impact at the Property, as documented in MDEGLE files, the Property is a V0;=CFCNSW ;M >?@CH?> <S 5;LN (&'%

3. SES observed the adjoining sites from the Property boundaries and public rights-of-way for evidence

of potential RECs. Leonard Street NW adjoined the Property to the north with a non-profit housing corporation, a residence, a florist, a quick-lube oil change business, and a bicycle shop located north of Leonard Street NW. Widdicomb Avenue NW adjoined the Property to the west, with a church and residences west of Widdicomb Avenue, NW. Residences and an alley adjoined the Property to the south. Fremont Avenue NW adjoined the Property to the east, with a gasoline station and a residence located east of Fremont Avenue NW. ,;M?> IH 7/7XM PCMO;F I<M?LP;NCIHM, as well as MDEGLE file information, the use of the adjoining sites did not represent an REC in connection with the Property.

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4. Based on our review of Environmental Risk Information Service (ERIS) Radius Map Report, SES

identified numerous sites of known environmental concern within the American Society of Testing Materials (ASTM)->?@CH?> L;>CC I@ NB? 5LIJ?LNS% ,;M?> IH 7/7XM L?PC?Q I@ MDEGLE file information, with the exception of the Property itself, listed as a BEA site, none of the sites identified by EDR represented an REC in connection with the Property.

5. SES observed no indications of RECs, including indications of former underground storage tanks,

chemical storage areas of concern, stained soil, or visibly distressed vegetation, on the Property at the time of the walkover.

A scaled Property Location Map and Property Layout Diagram are included in Attachment A as

Figure 1 and Figure 2, respectively.

1.3 Exceptions, Deletions, or Data Gaps

4I FCGCN;NCIHM$ ?R=?JNCIHM IL >?F?NCIHM @LIG 7/7XM 5B;M? 1 /7A Scope of Work were noted except

for the following:

1. Data failure prevented SES from determining the date of first development of the Property. However, the Property was the location of residences and a lumber yard as early as 1895, which was likely the first developed use of the Property. Therefore, the data failure did not represent an REC.

1.4 Previous Soil and Groundwater Characterization Information

As part of our Phase I ESA, SES reviewed existing environmental assessment information, as

included in MDEGLE files for the Property. Relevant information regarding the known contamination on the

Property is included in Appendix J of Attachment B of this report.

Reports available from the MDEGLE included investigations of the site which have been

undertaken by R&W in 2006, 2010, and 2011. The Property is a known BEA site based on BEAs submitted

for the Property by R&W in 2006 and in 2011. Based on information obtained from the R&W BEAs, the

Property is a Facility, as defined by Part 201.

Specifically, R&W identified that a heating oil underground storage tank was removed from the

area adjacent to the southeast corner of the building in March 2006. Soil sampling in 2006 indicated soil at

the Property was impacted with benzene, toluene, ethylbenzene, xylenes, 1,2,4-trimethylbenzene (TMB),

and 1,3,5-TMB at concentrations in excess of the MDEGLE GRCC. Sampling performed in 2010 confirmed

soil impact well in excess of the MDEGLE GRCC for benzene, ethylbenzene, and xylenes. The area of the

former UST has been covered with a concrete slab, which limits infiltration of precipitation, and thus

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degradation of the known soil impact. The known benzene, ethylbenzene, and xylene soil impact at the

Property represented an REC. Based on the known soil impact at the Property, as documented in

MDEGLE files$ NB? 5LIJ?LNS CM ; V0;=CFCNSW ;M >?@CH?> <S 5;LN (&'%

The analytical laboratory MDLs for the various compounds were reported by R&W in general

;==IL>;H=? QCNB NB? V8;LA?N .?N?=NCIH 2CGCNM ;H> .?MCAH;N?> +H;FSNC=;F 3?NBI>MW >I=OG?HN JLI>O=?> <S

the MDEGLE Remediation and Redevelopment Division, dated March 10, 2016.

SES compared the reported soil analyte concentrations to the MDEGLE Part 201 GRCC including

the Statewide Default Background Levels (SDBLs), Residential Drinking Water Protection Criteria (DWPC),

Residential Soil Volatilization to Indoor Air Criteria (SVIAC), Infinite Source Volatile Soil Inhalation Criteria

(SVIC), Particulate Soil Inhalation Criteria (PSIC), and the Direct Contact Criteria (DCC), and the

Groundwater / Surface Water Interface Protection Criteria (GSIC).

The following table depicts the analytes detected at concentrations in excess of the most stringent

applicable MDEGLE GRCC in the soil samples collected by R&W in 2010:

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TABLE 1 - SOIL ANALYTES DETECTED IN EXCESS OF LABORATORY MDLS (UG/KG) 'ROSE & WESTRA 2010

Notes:

1) Shaded indicate concentration in excess of applicable criteria. When the SDBL is higher than the DWPC, the DWPC is not applicable criteria.

2) ID = Insufficient Data To Calculate Criteria.

3) ND = Not Detected

4) NLV = Not Likely to Volatilize, NLL = Not Likely to Leach

The know soil impact at the Property represented an REC% ,;M?> IH 7/7XM preliminary Phase I

/7+ ;=NCPCNC?M$ NB? 5LIJ?LNS CM ; V0;=CFCNSW ;M >?@CH?> <S 5;LN (&'%

1.5 Basis for BEA Facility Determination

,;M?> IH NB? L?MOFNM I@ 7/7XM 5B;M? 1 /7+$ 6/-M C>?HNC@C?> IH NB? 5LIJ?LNS Q?L? ;MM?MM?>

through the collection and analysis of soil samples collected from the areas of the identified RECs by R&W

CH (&'&% ,;M?> IH 7/7XM L?PC?Q I@ NB? ;P;CF;<F? >;N;$ MICF on the Property was impacted with benzene,

ethylbenzene, and xylenes at concentrations in excess of the MDEGLE GRCC. Therefore, the Property is

; V0;=CFCNSW ;M >?@CH?> <S 5;LN (&'%

Location (Feet bg) / Concentration

Analyte SB-3A (1.9-2)

SB-3b (8.8-9.6)

SB-4 (8.3-8.5)

MDEGLE DWPC

MDEGLE DCC

MDEGLE GSIPC

MDEGLE SVIAC

Benzene ND ND 760 100 180,000 4,000 1,600

Toluene ND ND 4,600 16,000 250,000 5,400 250,000

Ethylbenzene ND ND 590 1,500 140,000 360 87,000

Xylenes ND ND 2,930 5,600 150,000 820 150,000

1,3,5-TMB ND ND 100 1,800 94,000 1,100 94,000

1,2,4-TMB ND ND 320 2,100 110,000 570 110,000

Anthracene 500 ND ND 41,000 2.3E+08 ID 1.0E+09

Benzo(a)anthracene ND ND 570 NLL 20,000 NLL NLV

Benzo(a)pyrene ND ND 480 NLL 2,000 NLL NLV

Benzo(b)fluoranthene ND ND 600 NLL 20,000 NLL ID

Chrysene ND ND 600 NLL 2,000,000 NLL ID

Fluoranthene 740 640 1,800 730,000 46,000,000 5,500 46,000,000

Phenanthrene 490 1,900 1,100 56,000 1,600,000 2,100 28,000,000

Pyrene 690 ND 1,400 480,000 29,000,000 ID 1.0E+09

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2.0 PROPERTY INFORMATION

The Property was comprised of one parcel of land which encompassed approximately 1.1 acres

and was developed with one 25,000 square-foot former YMCA at the time of the walkover. The Property

was located in the northeast ¼ Section 23, Township 7 North, Range 12 West, in the City of Grand Rapids,

Kent County, Michigan. The Property was identified by Kent County with Parcel ID 41-13-23-227-025 at

the street address of 900 Leonard Street NW. Based on data obtained by SES from Delorme USGS

topographic mapping software, the center of the Property is located at a Latitude of N42.98518° and a

Longitude of W85.69137°.

A scaled Property Location Map and Property Layout Diagram (also depicting R&W sample

locations) are included in Attachment A as Figure 1 and Figure 2, respectively. A tax description of the

Property, provided by the City of Grand Rapids, is included in Attachment C.

The Property encompassed approximately 1.1 acres and was developed with one 25,000-square-

foot former YMCA at the time of the walkover. The building was vacant at the time of the walkover and was

most recently the location of an internet technology company called the Geek Group. No computer

equipment or other technology remained in the building on the Property at the time of the walkover. The

building which was split between lower, main, and upper floors, was finished with offices, a former gym,

balcony overlooking racquetball courts, former studios, storage areas, a locker room, a commercial kitchen,

a former pool equipment and boiler room, and an entry/lobby area. A partially finished residential

apartment was located on the upper level.

The building was a steel-framed block and brick construction with a partial basement and a partial

concrete slab floor. Floors throughout the building were wood-finished, ceramic tiled, vinyl tiled, carpeted,

sealed concrete in the former pool area, and bare concrete in the storage and mechanical areas. SES

observed no indications of a significant release of hazardous substances within the building at the time of

the walkover. Floor drains were observed in the kitchen, locker rooms, restrooms, and basement. The

drains reportedly discharged to the municipal sanitary sewer system.

The exterior portions of the Property consisted of asphalt and concrete parking and drive areas

northeast and south of the building, and a strip of lawn adjoined the north and west walls of the building. A

concrete pad was located at the southeast corner of the building in an area formerly occupied by a heating

oil underground storage tank (UST). SES observed a nested set of groundwater monitoring wells on the

northeast portion of the Property adjacent to the east Property boundary. The owner of the east-adjoining

site stated to SES that these wells were installed by him with permission of the former owner to investigate

a leaking underground storage tank (LUST) release at the east-adjoining site, and that the wells on the

Property were not impacted with contaminants from his site.

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SES observed no indications of RECs, including indications of former USTs, chemical storage

areas of concern, stained soil, or visibly distressed vegetation, on the Property at the time of the walkover.

3.0 FACILITY STATUS

The following sections describe the occurrence and extent of contaminants detected in the

subsurface at the Property.

3.1 Contaminant Identity

Laboratory analysis of the soil samples collected and analyzed by R&W in 2010 indicated soil at

the Property was impacted with benzene, ethylbenzene, and xylenes at concentrations in excess of the

most stringent applicable MDEGLE GRCC, including the DWPC and GSIPC. ,;M?> IH 7/7XM Phase I

ESA, no other analytes were detected at concentrations in excess of the most stringent MDEGLE GRCC in

the soil samples collected and analyzed from the Property in the most recent sampling of soil in 2010.

The contaminants identified in 2010 by R&W were located in soil underlying a concrete slab, which

limits the infiltration of precipitation. This retards the natural attenuation of the identified impact% 1N CM 7/7XM

professional opinion that the concentrations of benzene, ethylbenzene, and xylenes by R&W in 2010 are

representative of current soil conditions in the areas sampled by R&W in 2010.

3.2 Contaminated Media and Location

,;M?> IH NB? L?MOFNM I@ 7/7XM 5B;M? 1 /7+$ soil impact on the Property at concentrations in

excess of the MDEGLE GRCC was associated with the southeast portion of the Property.

A list of the hazardous substances detected in excess of the most stringent MDEGLE Part 201

GRCC >OLCHA 7/7XM 2CGCN?> 5B;M? 11 /7+ ;=NCPCNC?M CM JLIPC>?> <?FIQ*

TABLE 2

HAZARDOUS SUBSTANCES DETECTED IN EXCESS OF THE MDEGLE PART 201 GRCC

Hazardous Substance CAS Number Maximum

Concentration Sample Location (Depth) Media Affected

Benzene 71432 760 µg/kg SB-4 (8.3-8.5) Soil

Ethylbenzene 100414 590 µg/kg SB-4 (8.3-8.5) Soil

Xylenes 1330207 2,930 µg/kg SB-4 (8.3-8.5) Soil

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1N CM 7/7XM IJCHCIH NB? M;GJFCHA JLIAL;G performed by R&W in 2010 reasonably and adequately

characterized the areas of the Property most likely to be impacted with the greatest concentrations of the

tested analytes, based on the RECs identified. However, based on the nature of contaminant migration,

and the inherent budget limitations associated with soil sampling and laboratory analytical activities, VOCs,

PNAs, and/or metals could be present at concentrations in excess of the most stringent applicable

MDEGLE Part 201 GRCC in the soil or groundwater on the Property in areas previously un-sampled by

R&W or in the form of individual compounds not previously analyzed by R&W.

3.3 Discarded or Abandoned Containers

,;M?> IH NB? L?MOFNM I@ 7/7XM 5B;M? 1 /7+$ discarded or abandoned containers were not identified

on the Property at the time of the walkover.

4.0 IDENTIFICATION OF THE AUTHOR OF THE BEA

The BEA was prepared by Mr. Thomas N. Stolz, Certified Professional Geologist (CPG) an

Environmental Professional (EP). The qualifications and contact information for the Environmental

Professional are included as Attachment D of this report.

5.0 ASTM PHASE I ENVIRONNMENTAL SITE ASSESSMENT

SES completed a Phase I ESA for the Property in compliance with the ASTM Standard E 1527-13

V7N;H>;L> 5L;=NC=? @IL /HPCLIHG?HN;F +MM?MMG?HNM* 5B;M? 1 /HPCLIHG?HN;F 7CN? +MM?MMG?HN 5LI=?MMW$

dated October 6, 2020. A copy of 7/7XM Phase I ESA is presented as Attachment B.

6.0 CONCLUSIONS, FUTURE DIFFERENTIATION, AND/OR ALTERNATIVE APPROACHES

Based on SES's review of the results of chemical analyses presented in this report, soil at the

Property was impacted with benzene, ethylbenzene, and xylenes at concentrations in excess of the most

stringent applicable MDEGLE GRCC. No other analytes were detected at concentrations in excess of the

MDEGLE GRCC in the soil samples collected and analyzed from the Property by R&W in 2010. Under the

definition from Section 20101 of PA 451, Part 201, as amended, the Property is a "Facility."

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The prospective owner intends to acquire the Property for investment purposes. The prospective

owner intends to maintain the buildings, pavements, and vegetative cover present on the Property at the

time of the walkover although building of structures, or alterations to the surface cover, may occur in the

future.

SES has performed this BEA based upon observed conditions and CH@ILG;NCIH L?JILN?> CH 7/7XM

Phase I ESA dated October 6, 2020. Based on subsurface, analytical, and historical data that has been

collected, and the projected future use of the site, it is SES's opinion that this BEA is sufficient to provide a

basis to distinguish a potential future release from the known subsurface soil impact on the Property.

In the process of obtaining information in preparation of this BEA, procedures were followed that

represent current reasonable and accepted engineering and hydrogeological practices and principles, in a

manner consistent with the level of care and skill ordinarily exercised by members of these professions.

Conclusions about Property conditions under no circumstances comprise a warranty that conditions in all

areas of the Property are of the same quality as those areas that SES has inferred from observable

Property conditions and readily available Property history.

7/7XM @CH>CHAM ;H> =IH=FOMCIHM GOMN <? =IHMC>?L?> JLI<;<CFCNC?M <;M?> IH JLI@?MMCIH;F DO>AG?HN

applied to the limited data SES was able to gather during the course of the assessment. In performing this

assessment, SES has endeavored to observe that degree of care and skill generally exercised by other

consultants undertaking similar studies at the same time, under similar circumstances and conditions, and

in the same geographical area.

7.0 REFERENCES

1. Part 201 Generic Cleanup Criteria and Screening Levels, Michigan Department of Environment, Great Lakes, and Energy, June 25, 2018.

2. The Michigan Department of Environment, Great Lakes, and Energy, Instructions for Preparing

and Disclosing Baseline Environmental Assessments and Section 7a Compliance Analyses, effective March 11, 1999, as amended December 14, 2010.

3. Enrolled House Bill 4596, Part 201 of 1994 PA 451, as amended, the Natural Resources and

Environmental Protection Act, June 5, 1995.

4. Phase I Environmental Site Assessment, Former YMCA, 900 Leonard Street NW, Grand Rapids, Michigan, prepared by Stolz Environmental Solutions, LLC, October 6, 2020.

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ATTACHMENTS

Attachment A: Figures Attachment B: SES Phase I ESA Attachment C: Tax Description and Municipal Tax or Survey Map Attachment D: Qualifications of the Environmental Professional

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ATTACHMENT A

FIGURES

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3.1.c

Packet Pg. 36

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Table 1

TIF Table

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Packet Pg. 37

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Tax Increment Revenue Capture Estimates - Commercial Projections900 W Leonard Redevelopment Project

900 W Leonard StreetGrand Rapids, Michigan

March 24, 2021

Estimated Taxable Value (TV) Increase Rate: 0.75% per year Plan Year 0 1 2 3 4 5 6 7 8 9 10 11 12 13 TOTAL

Calendar Year 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034Base Taxable Value 290,000$ 290,000$ 290,000$ 290,000$ 290,000$ 290,000$ 290,000$ 290,000$ 290,000$ 290,000$ 290,000$ 290,000$ 290,000$ 290,000$ 290,000$

Estimated New TV 290,000$ 290,000$ 106,137$ 106,933$ 107,735$ 108,543$ 109,357$ 110,177$ 111,004$ 111,836$ 112,675$ 113,520$ 114,371$ 115,229$ 115,229$ Incremental Difference (New TV - Base TV) -$ -$ (183,863)$ (183,067)$ (182,265)$ (181,457)$ (180,643)$ (179,823)$ (178,996)$ (178,164)$ (177,325)$ (176,480)$ (175,629)$ (174,771)$ (174,771)$

School Capture Millage RateState Education Tax (SET) (50%) 3.0000 -$ -$ (552)$ (549)$ (547)$ (544)$ (542)$ (539)$ (537)$ (534)$ (532)$ (529)$ (527)$ (524)$ (6,457)$ School Operating Tax (50%) 9.0000 -$ -$ (1,655)$ (1,648)$ (1,640)$ (1,633)$ (1,626)$ (1,618)$ (1,611)$ (1,603)$ (1,596)$ (1,588)$ (1,581)$ (1,573)$ (19,372)$

School Total 12.0000 -$ -$ (2,206)$ (2,197)$ (2,187)$ (2,177)$ (2,168)$ (2,158)$ (2,148)$ (2,138)$ (2,128)$ (2,118)$ (2,108)$ (2,097)$ (25,830)$

Local Capture Millage Rate City Library Capital 0.3630 -$ -$ (67)$ (66)$ (66)$ (66)$ (66)$ (65)$ (65)$ (65)$ (64)$ (64)$ (64)$ (63)$ (781)$ KISD General Ed (50%) 0.0439 -$ -$ (8)$ (8)$ (8)$ (8)$ (8)$ (8)$ (8)$ (8)$ (8)$ (8)$ (8)$ (8)$ (94)$ KISD Special Ed (50%) 1.8140 -$ -$ (334)$ (332)$ (331)$ (329)$ (328)$ (326)$ (325)$ (323)$ (322)$ (320)$ (319)$ (317)$ (3,904)$ KISD Voc Ed (50%) 0.4844 -$ -$ (89)$ (89)$ (88)$ (88)$ (87)$ (87)$ (87)$ (86)$ (86)$ (85)$ (85)$ (85)$ (1,043)$ KISD Local (expires 2026) (50%) 0.4421 -$ -$ (81)$ (81)$ (81)$ (80)$ -$ -$ -$ -$ -$ -$ -$ -$ (323)$ Kent County Zoo/Museum 0.4301 -$ -$ (79)$ (79)$ (78)$ (78)$ (78)$ (77)$ (77)$ (77)$ (76)$ (76)$ (76)$ (75)$ (926)$ Kent County Early Childhood 0.2464 -$ -$ (45)$ (45)$ (45)$ (45)$ (45)$ (44)$ (44)$ (44)$ (44)$ (43)$ (43)$ (43)$ (530)$

Local Total 3.8237 -$ -$ (703)$ (700)$ (697)$ (694)$ (611)$ (608)$ (605)$ (602)$ (600)$ (597)$ (594)$ (591)$ (7,602)$

Non-Capturable Millages Millage RateSchool debt 4.8500 -$ -$ (892)$ (888)$ (884)$ (880)$ (876)$ (872)$ (868)$ (864)$ (860)$ (856)$ (852)$ (848)$ (10,440)$ State Education Tax (SET) (50%) 3.0000 -$ -$ (552)$ (549)$ (547)$ (544)$ (542)$ (539)$ (537)$ (534)$ (532)$ (529)$ (527)$ (524)$ (6,457)$ School Operating Tax (50%) 9.0000 -$ -$ (1,655)$ (1,648)$ (1,640)$ (1,633)$ (1,626)$ (1,618)$ (1,611)$ (1,603)$ (1,596)$ (1,588)$ (1,581)$ (1,573)$ (19,372)$ KISD General Ed (50%) 0.0439 -$ -$ (8)$ (8)$ (8)$ (8)$ (8)$ (8)$ (8)$ (8)$ (8)$ (8)$ (8)$ (8)$ (94)$ KISD Special Ed (50%) 1.8140 -$ -$ (334)$ (332)$ (331)$ (329)$ (328)$ (326)$ (325)$ (323)$ (322)$ (320)$ (319)$ (317)$ (3,904)$ KISD Voc Ed (50%) 0.4844 -$ -$ (89)$ (89)$ (88)$ (88)$ (87)$ (87)$ (87)$ (86)$ (86)$ (85)$ (85)$ (85)$ (1,043)$ KISD Local (expires 2026) (50%) 0.4421 -$ -$ (81)$ (81)$ (81)$ (80)$ -$ -$ -$ -$ -$ -$ -$ -$ (323)$ GRCC 1.7472 -$ -$ (321)$ (320)$ (318)$ (317)$ (316)$ (314)$ (313)$ (311)$ (310)$ (308)$ (307)$ (305)$ (3,761)$ Kent County Operating 4.2243 -$ -$ (777)$ (773)$ (770)$ (767)$ (763)$ (760)$ (756)$ (753)$ (749)$ (746)$ (742)$ (738)$ (9,093)$ Kent County Jail 0.7717 -$ -$ (142)$ (141)$ (141)$ (140)$ (139)$ (139)$ (138)$ (137)$ (137)$ (136)$ (136)$ (135)$ (1,661)$ Kent County Senior 0.4888 -$ -$ (90)$ (89)$ (89)$ (89)$ (88)$ (88)$ (87)$ (87)$ (87)$ (86)$ (86)$ (85)$ (1,052)$ Kent County Veterans 0.0487 -$ -$ (9)$ (9)$ (9)$ (9)$ (9)$ (9)$ (9)$ (9)$ (9)$ (9)$ (9)$ (9)$ (105)$ City General Operating 2.6721 -$ -$ (491)$ (489)$ (487)$ (485)$ (483)$ (481)$ (478)$ (476)$ (474)$ (472)$ (469)$ (467)$ (5,752)$ City Capital Reserve 1.2500 -$ -$ (230)$ (229)$ (228)$ (227)$ (226)$ (225)$ (224)$ (223)$ (222)$ (221)$ (220)$ (218)$ (2,691)$ City Library Oper 1.9776 -$ -$ (364)$ (362)$ (360)$ (359)$ (357)$ (356)$ (354)$ (352)$ (351)$ (349)$ (347)$ (346)$ (4,257)$ City Promo & Adver 0.0090 -$ -$ (2)$ (2)$ (2)$ (2)$ (2)$ (2)$ (2)$ (2)$ (2)$ (2)$ (2)$ (2)$ (19)$ City Refuse 1.6000 -$ -$ (294)$ (293)$ (292)$ (290)$ (289)$ (288)$ (286)$ (285)$ (284)$ (282)$ (281)$ (280)$ (3,444)$ City Parks & Rec 1.2500 -$ -$ (230)$ (229)$ (228)$ (227)$ (226)$ (225)$ (224)$ (223)$ (222)$ (221)$ (220)$ (218)$ (2,691)$ Interurban Transit 1.4457 -$ -$ (266)$ (265)$ (264)$ (262)$ (261)$ (260)$ (259)$ (258)$ (256)$ (255)$ (254)$ (253)$ (3,112)$

Total Non-Capturable Taxes 37.1193 -$ -$ (6,825)$ (6,795)$ (6,766)$ (6,736)$ (6,625)$ (6,595)$ (6,565)$ (6,535)$ (6,504)$ (6,473)$ (6,442)$ (6,410)$ (79,270)$

Total Tax Increment Revenue (TIR) Available for Capture -$ -$ (2,909)$ (2,897)$ (2,884)$ (2,871)$ (2,779)$ (2,766)$ (2,753)$ (2,740)$ (2,728)$ (2,715)$ (2,701)$ (2,688)$ (33,432)$

Footnotes:Project is located in the Westside CID and SmartZone.Assumes millages rates remain the same with the exceptionof City noted expirations above.

3.1.c

Packet Pg. 38

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Tax Increment Revenue Capture Estimates - Residential Projections900 W Leonard Redevelopment Project


March 24, 2021

Estimated Taxable Value (TV) Increase Rate: 0.75% per year NEZ Term Plan Year 0 1 2 3 4 5 6 7 8 9 10 11 12 13 TOTAL

Calendar Year 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034Base Taxable Value -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$

Estimated New TV -$ -$ 5,571,702$ 5,613,490$ 5,655,591$ 5,698,008$ 5,740,743$ 5,783,799$ 5,827,177$ 5,870,881$ 5,914,913$ 5,959,275$ 6,003,969$ 6,048,999$ 6,048,999$ Incremental Difference (New TV - Base TV) -$ -$ 5,571,702$ 5,613,490$ 5,655,591$ 5,698,008$ 5,740,743$ 5,783,799$ 5,827,177$ 5,870,881$ 5,914,913$ 5,959,275$ 6,003,969$ 6,048,999$ 6,048,999$

NEZ Millage Rate 26.69000 26.69000 26.69000 26.69000 26.69000 26.69000 26.69000 26.69000 26.69000 26.69000 26.69000 26.69000Total NEZ Taxes 148,709$ 149,824$ 150,948$ 152,080$ 153,220$ 154,370$ 155,527$ 156,694$ 157,869$ 159,053$ 160,246$ 161,448$ NEZ Local-only Abated Rate 15.5036 15.5036 15.5036 15.5036 15.5036 15.5036 15.5036 15.5036 15.5036 15.5036 15.5036 15.5036 Total Local Abated Taxes 86,381$ 87,029$ 87,682$ 88,340$ 89,002$ 89,670$ 90,342$ 91,020$ 91,702$ 92,390$ 93,083$ 93,781$

School Capture Millage RateState Education Tax (SET) 2.3895 -$ -$ 13,313$ 13,413$ 13,514$ 13,615$ 13,717$ 13,820$ 13,924$ 14,028$ 14,134$ 14,240$ 14,346$ 14,454$ 166,519$ School Operating Tax 12.8994 -$ -$ 71,872$ 72,411$ 72,954$ 73,501$ 74,052$ 74,608$ 75,167$ 75,731$ 76,299$ 76,871$ 77,448$ 78,029$ 898,943$

School Total 15.2889 -$ -$ 85,185$ 85,824$ 86,468$ 87,116$ 87,770$ 88,428$ 89,091$ 89,759$ 90,433$ 91,111$ 91,794$ 92,483$ 1,065,462$

Local Capture Millage RateCity General Operating 1.0642 -$ -$ 5,929$ 5,974$ 6,018$ 6,064$ 6,109$ 6,155$ 6,201$ 6,247$ 6,294$ 6,342$ 6,389$ 6,437$ 74,159$ City Capital Reserve 0.4978 -$ -$ 2,774$ 2,794$ 2,815$ 2,837$ 2,858$ 2,879$ 2,901$ 2,923$ 2,945$ 2,967$ 2,989$ 3,011$ 34,692$ City Library Oper 0.7876 -$ -$ 4,388$ 4,421$ 4,454$ 4,488$ 4,521$ 4,555$ 4,589$ 4,624$ 4,658$ 4,693$ 4,729$ 4,764$ 54,885$ City Library Capital 0.1446 -$ -$ 805$ 811$ 818$ 824$ 830$ 836$ 842$ 849$ 855$ 861$ 868$ 874$ 10,074$ City Promo & Adver 0.0036 -$ -$ 20$ 20$ 20$ 20$ 21$ 21$ 21$ 21$ 21$ 21$ 21$ 22$ 249$ City Refuse 0.6372 -$ -$ 3,550$ 3,577$ 3,604$ 3,631$ 3,658$ 3,685$ 3,713$ 3,741$ 3,769$ 3,797$ 3,826$ 3,854$ 44,405$ City Parks & Rec 0.3725 -$ -$ 2,075$ 2,091$ 2,107$ 2,122$ 2,138$ 2,154$ 2,171$ 2,187$ 2,203$ 2,220$ 2,236$ 2,253$ 25,958$ Interurban Transit 0.5757 -$ -$ 3,208$ 3,232$ 3,256$ 3,281$ 3,305$ 3,330$ 3,355$ 3,380$ 3,405$ 3,431$ 3,457$ 3,483$ 40,122$ KISD General Ed 0.0349 -$ -$ 195$ 196$ 198$ 199$ 201$ 202$ 204$ 205$ 207$ 208$ 210$ 211$ 2,434$ KISD Special Ed 1.4448 -$ -$ 8,050$ 8,110$ 8,171$ 8,232$ 8,294$ 8,356$ 8,419$ 8,482$ 8,546$ 8,610$ 8,674$ 8,740$ 100,685$ KISD Voc Ed 0.3858 -$ -$ 2,149$ 2,166$ 2,182$ 2,198$ 2,215$ 2,231$ 2,248$ 2,265$ 2,282$ 2,299$ 2,316$ 2,334$ 26,884$ KISD Local (expires 2026) 0.3521 -$ -$ 1,962$ 1,976$ 1,991$ 2,006$ -$ -$ -$ -$ -$ -$ -$ -$ 7,936$ GRCC 0.6958 -$ -$ 3,877$ 3,906$ 3,935$ 3,965$ 3,994$ 4,024$ 4,055$ 4,085$ 4,116$ 4,147$ 4,178$ 4,209$ 48,490$ Kent County Operating 1.6823 -$ -$ 9,373$ 9,444$ 9,514$ 9,586$ 9,658$ 9,730$ 9,803$ 9,877$ 9,951$ 10,025$ 10,101$ 10,176$ 117,238$ Kent County Jail 0.3073 -$ -$ 1,712$ 1,725$ 1,738$ 1,751$ 1,764$ 1,778$ 1,791$ 1,804$ 1,818$ 1,831$ 1,845$ 1,859$ 21,417$ Kent County Senior 0.1947 -$ -$ 1,085$ 1,093$ 1,101$ 1,109$ 1,117$ 1,126$ 1,134$ 1,143$ 1,151$ 1,160$ 1,169$ 1,177$ 13,566$ Kent County Veterans 0.0194 -$ -$ 108$ 109$ 110$ 111$ 111$ 112$ 113$ 114$ 115$ 116$ 116$ 117$ 1,352$ Kent County Zoo/Museum 0.1713 -$ -$ 954$ 962$ 969$ 976$ 983$ 991$ 998$ 1,006$ 1,013$ 1,021$ 1,028$ 1,036$ 11,937$ Kent County Early Childhood 0.0981 -$ -$ 547$ 551$ 555$ 559$ 563$ 568$ 572$ 576$ 580$ 585$ 589$ 594$ 6,839$

Local Total 9.4696 -$ -$ 52,762$ 53,158$ 53,556$ 53,958$ 52,341$ 52,734$ 53,129$ 53,528$ 53,929$ 54,334$ 54,741$ 55,152$ 479,586$

Non-Capturable Millages Millage RateSchool debt 1.9315 -$ -$ 10,762$ 10,842$ 10,924$ 11,006$ 11,088$ 11,171$ 11,255$ 11,340$ 11,425$ 11,510$ 11,597$ 11,684$ 134,603$

Total Non-Capturable Taxes 1.9315 -$ -$ 10,762$ 10,842$ 10,924$ 11,006$ 11,088$ 11,171$ 11,255$ 11,340$ 11,425$ 11,510$ 11,597$ 11,684$ 134,603$

Total Tax Increment Revenue (TIR) Available for Capture -$ -$ 137,947$ 138,982$ 140,024$ 141,074$ 140,111$ 141,162$ 142,221$ 143,287$ 144,362$ 145,445$ 146,535$ 147,634$ 1,545,048$

Footnotes:Project is located in the Westside CID and SmartZone.Assumes millages rates remain the same with the exceptionof City noted expirations above.Assumes 15yr NEZ

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Packet Pg. 39

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Tax Increment Revenue Capture Estimates - Combined900 W Leonard Redevelopment Project


March 24, 2021

Estimated Taxable Value (TV) Increase Rate: 0.75% per year NEZ Term Plan Year 0 1 2 3 4 5 6 7 8 9 10 11 12 13 TOTAL

Calendar Year 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034Base Taxable Value 290,000$ 290,000$ 290,000$ 290,000$ 290,000$ 290,000$ 290,000$ 290,000$ 290,000$ 290,000$ 290,000$ 290,000$ 290,000$ 290,000$ 290,000$

Estimated New TV 290,000$ 290,000$ 5,677,839$ 5,720,423$ 5,763,326$ 5,806,551$ 5,850,100$ 5,893,976$ 5,938,181$ 5,982,717$ 6,027,588$ 6,072,795$ 6,118,341$ 6,164,228$ 6,164,228$ Incremental Difference (New TV - Base TV)* -$ -$ 5,387,839$ 5,430,423$ 5,473,326$ 5,516,551$ 5,560,100$ 5,603,976$ 5,648,181$ 5,692,717$ 5,737,588$ 5,782,795$ 5,828,341$ 5,874,228$ 5,920,460$

School Capture Millage RateState Education Tax (SET) -$ -$ 12,762$ 12,864$ 12,967$ 13,071$ 13,175$ 13,281$ 13,387$ 13,494$ 13,602$ 13,710$ 13,819$ 13,930$ 160,061$ School Operating Tax -$ -$ 70,217$ 70,763$ 71,314$ 71,868$ 72,427$ 72,989$ 73,556$ 74,128$ 74,703$ 75,283$ 75,867$ 76,456$ 879,571$

-$ -$ 82,979$ 83,627$ 84,281$ 84,939$ 85,602$ 86,270$ 86,943$ 87,621$ 88,305$ 88,993$ 89,687$ 90,385$ 1,039,632$

Local Capture Millage RateCity General Operating -$ -$ 5,929$ 5,974$ 6,018$ 6,064$ 6,109$ 6,155$ 6,201$ 6,247$ 6,294$ 6,342$ 6,389$ 6,437$ 74,159$ City Capital Reserve -$ -$ 2,774$ 2,794$ 2,815$ 2,837$ 2,858$ 2,879$ 2,901$ 2,923$ 2,945$ 2,967$ 2,989$ 3,011$ 34,692$ City Library Oper -$ -$ 4,388$ 4,421$ 4,454$ 4,488$ 4,521$ 4,555$ 4,589$ 4,624$ 4,658$ 4,693$ 4,729$ 4,764$ 54,885$ City Promo & Adver -$ -$ 20$ 811$ 818$ 824$ 830$ 836$ 842$ 849$ 855$ 861$ 868$ 874$ 9,289$ City Refuse -$ -$ 3,550$ 3,284$ 3,312$ 3,340$ 3,369$ 3,398$ 3,427$ 3,456$ 3,485$ 3,515$ 3,545$ 3,575$ 41,255$ City Parks & Rec -$ -$ 2,075$ 2,091$ 2,107$ 2,122$ 2,138$ 2,154$ 2,171$ 2,187$ 2,203$ 2,220$ 2,236$ 2,253$ 25,958$ Interurban Transit -$ -$ 3,208$ 3,232$ 3,256$ 3,281$ 3,305$ 3,330$ 3,355$ 3,380$ 3,405$ 3,431$ 3,457$ 3,483$ 40,122$ City Library Capital -$ -$ 739$ 745$ 751$ 758$ 764$ 771$ 777$ 784$ 791$ 797$ 804$ 811$ 9,293$ KISD General Ed -$ -$ 187$ 188$ 190$ 191$ 193$ 194$ 196$ 197$ 199$ 200$ 202$ 204$ 2,340$ KISD Special Ed -$ -$ 7,716$ 7,778$ 7,841$ 7,903$ 7,966$ 8,030$ 8,094$ 8,159$ 8,224$ 8,290$ 8,356$ 8,423$ 96,781$ KISD Voc Ed -$ -$ 2,060$ 2,077$ 2,094$ 2,110$ 2,127$ 2,144$ 2,161$ 2,179$ 2,196$ 2,213$ 2,231$ 2,249$ 25,842$ KISD Local (expires 2026) -$ -$ 1,880$ 1,896$ 1,911$ 1,926$ -$ -$ -$ -$ -$ -$ -$ -$ 7,613$ GRCC -$ -$ 3,877$ 3,906$ 3,935$ 3,965$ 3,994$ 4,024$ 4,055$ 4,085$ 4,116$ 4,147$ 4,178$ 4,209$ 48,490$ Kent County Operating -$ -$ 9,373$ 8,670$ 8,745$ 8,819$ 8,895$ 8,971$ 9,047$ 9,124$ 9,202$ 9,280$ 9,359$ 9,438$ 108,922$ Kent County Jail -$ -$ 1,712$ 1,584$ 1,597$ 1,611$ 1,625$ 1,639$ 1,653$ 1,667$ 1,681$ 1,695$ 1,710$ 1,724$ 19,898$ Kent County Senior -$ -$ 1,085$ 1,003$ 1,012$ 1,020$ 1,029$ 1,038$ 1,047$ 1,056$ 1,065$ 1,074$ 1,083$ 1,092$ 12,603$ Kent County Veterans -$ -$ 108$ 100$ 101$ 102$ 103$ 103$ 104$ 105$ 106$ 107$ 108$ 109$ 1,256$ Kent County Zoo/Museum -$ -$ 875$ 883$ 890$ 898$ 906$ 913$ 921$ 929$ 937$ 945$ 953$ 961$ 11,011$ Kent County Early Childhood -$ -$ 501$ 506$ 510$ 514$ 519$ 523$ 528$ 532$ 537$ 541$ 546$ 551$ 6,308$

-$ -$ 52,059$ 51,943$ 52,356$ 52,773$ 51,251$ 51,658$ 52,069$ 52,482$ 52,899$ 53,318$ 53,741$ 54,167$ 350,357$

Non-Capturable Millages Millage RateSchool debt -$ -$ 10,762$ 10,842$ 10,924$ 11,006$ 11,088$ 11,171$ 11,255$ 11,340$ 11,425$ 11,510$ 11,597$ 11,684$ 134,603$

-$ -$ 10,762$ 10,842$ 10,924$ 11,006$ 11,088$ 11,171$ 11,255$ 11,340$ 11,425$ 11,510$ 11,597$ 11,684$ 134,603$

Total Tax Increment Revenue (TIR) Available for Capture -$ -$ 135,038$ 135,570$ 136,637$ 137,712$ 136,853$ 137,928$ 139,012$ 140,103$ 141,203$ 142,311$ 143,428$ 144,552$ 1,389,989$

Footnotes:Project is located in the Westside CID and SmartZone.Assumes millages rates remain the same with the exceptionof City noted expirations above.Assumes 15yr NEZ

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Packet Pg. 40

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Tax Increment Revenue Reimbursement Allocation Table900 Leonard Redevelopement Project


March 24, 2021

Developer Maximum

Reimbursement **ProportionalitySchool &

Local TaxesLocal-Only

Taxes Total Estimated Capture 1,312,978$ State 66.6% 608,547$ -$ 608,547$ Administrative Fees 131,298$ Local 32.8% 296,608$ 9,052$ 305,660$ 14 State Brownfield Fund 52,500$

TOTAL 914,207$ LBRF 200,481$ EGLE 1.1% 10,000$ -$ 10,000$ MSF 97.9% 895,155$ 9,052$ 904,207$

NEZ Abatement on Residential2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 TOTAL

Total State Incremental Revenue -$ -$ 82,979$ 83,627$ 84,281$ 84,939$ 85,602$ 86,270$ 86,943$ 87,621$ -$ -$ -$ -$ 682,262$ State Brownfield Redevelopment Fund (50% of SET) -$ -$ (6,381)$ (6,432)$ (6,484)$ (6,535)$ (6,588)$ (6,640)$ (6,693)$ (6,747)$ -$ -$ -$ -$ (52,500)$ State TIR Available for Reimbursement -$ -$ 76,598$ 77,195$ 77,797$ 78,403$ 79,014$ 79,630$ 80,250$ 80,875$ -$ -$ -$ -$ 629,762$

Total Local Incremental Revenue -$ -$ 52,059$ 51,943$ 52,356$ 52,773$ 51,251$ 51,658$ 52,069$ 52,482$ 52,899$ 53,318$ 53,741$ 54,167$ 630,716$ BRA Administrative Fee (10%) -$ -$ (13,504)$ (13,557)$ (13,664)$ (13,771)$ (13,685)$ (13,793)$ (13,901)$ (14,010)$ (5,290)$ (5,332)$ (5,374)$ (5,417)$ (131,298)$ Local TIR Available for Reimbursement -$ -$ 38,555$ 38,386$ 38,693$ 39,002$ 37,566$ 37,866$ 38,167$ 38,472$ 47,609$ 47,986$ 48,367$ 48,750$ 499,418$

Total State & Local TIR Available -$ -$ 115,153$ 115,581$ 116,490$ 117,405$ 116,580$ 117,495$ 118,417$ 119,346$ 47,609$ 47,986$ 48,367$ 48,750$ 1,129,180$

DEVELOPER Reimbursement Balance 914,207$ 914,207$ 914,207$ 799,054$ 683,473$ 566,983$ 449,578$ 332,998$ 215,502$ 97,085$ -$ -$ -$ -$ -$ -$

MSF Non-Environmental Costs 895,155$ 895,155$ 895,155$ 895,155$ 781,274$ 666,970$ 551,767$ 435,659$ 320,367$ 204,170$ 87,061$ -$ -$ -$ -$ -$ State Tax Reimbursement 99% -$ -$ 75,752$ 76,342$ 76,938$ 77,537$ 78,141$ 78,750$ 79,363$ 59,000$ -$ -$ -$ -$ 601,823$ Local Tax Reimbursement -$ -$ 38,129$ 37,962$ 38,265$ 38,571$ 37,151$ 37,447$ 37,746$ 28,061$ -$ -$ -$ -$ 293,332$ Total MSF Reimbursement Balance 0.99$ 895,155$ 895,155$ 781,274$ 666,970$ 551,767$ 435,659$ 320,367$ 204,170$ 87,061$ -$ -$ -$ -$ -$ -$

EGLE Environmental Costs 10,000$ 10,000$ 10,000$ 10,000$ 8,728$ 7,451$ 6,164$ 4,867$ 3,579$ 2,281$ 973$ -$ -$ -$ -$ -$ State Tax Reimbursement 0$ -$ -$ 846$ 853$ 859$ 866$ 873$ 880$ 887$ 659$ -$ -$ -$ -$ 6,723$ Local Tax Reimbursement -$ -$ 426$ 424$ 427$ 431$ 415$ 418$ 422$ 313$ -$ -$ -$ -$ 3,277$ Total EGLE Reimbursement Balance 0.01 10,000$ 10,000$ 8,728$ 7,451$ 6,164$ 4,867$ 3,579$ 2,281$ 973$ -$ -$ -$ -$ -$ -$

Local Only Costs 9,052$ 9,052$ 9,052$ 9,052$ 9,052$ 9,052$ 9,052$ 9,052$ 9,052$ 9,052$ 9,052$ -$ -$ -$ -$ Local Tax Reimbursement 9,052$ -$ -$ -$ -$ 9,052$ Total Local Only Reimbursement Balance 9,052$ 9,052$ 9,052$ 9,052$ 9,052$ 9,052$ 9,052$ 9,052$ 9,052$ -$ -$ -$ -$ -$ -$

Total Annual Developer Reimbursement -$ -$ 115,153$ 115,581$ 116,490$ 117,405$ 116,580$ 117,495$ 118,417$ 97,085$ -$ -$ -$ -$ -$

LBRF Deposits * -$ -$ -$ -$ -$ -$ -$ -$ -$ 7,769$ 47,609$ 47,986$ 48,367$ 48,750$ 200,481$ State Tax Capture -$ -$ -$ -$ -$ -$ -$ -$ -$ 6,723$ -$ -$ -$ -$ 6,723$ Local Tax Capture -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 1,045$ 47,609$ 47,986$ 48,367$ 48,750$ 193,758$ Total LBRF Capture

* Up to five years of capture for LBRF Deposits after eligible activities are reimbursed. May be taken from EGLE & Local TIR only. Footnotes:Project is located in the Westside CID and SmartZone.Assumes millages rates remain the same with the exception of City noted expirations above.Assumes 15yr NEZ on Residential

Estimated Total Years of Plan:

DEVELOPERBeginning Balance

LOCAL BROWNFIELD REVOLVING FUND

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DATE: March 24, 2021

BOARD: Brownfield Redevelopment Authority

FROM: Jeremiah Gracia, Economic Development Director

Economic Development Department

SUBJECT: Resolution approving submission of a Grant Application of up to

$1,000,000 to the Michigan Department of Environment, Great

Lakes and Energy for the 1601 Madison Redevelopment Project

Attached is a resolution approving the submission of a grant application to the Michigan Department of Environment, Great Lakes and Energy (EGLE) for grant funding of up to $1,000,000 for the 1601 Madison redevelopment project (the “Project”). EGLE makes grants and loans available to communities for the purposes of paying for the costs of eligible environmental activities at brownfield redevelopment project sites. In the past, the City and the Brownfield Redevelopment Authority (BRA) have utilized EGLE’s grant program for the Michigan State University Grand Rapids Research Center, the former Iroquois Elementary School in the Ottawa Hills neighborhood, the Downtown Market, and most recently for the 501 Eastern Avenue, 449 Bridge Street, Plaza Roosevelt, 438 Stocking Avenue and Tapestry Square projects. The Project for which grant funding is sought is located at 1601 Madison Avenue SE (the “Property”). The ten-acre site was utilized in the past century for various residential and industrial uses, including the manufacture of various metal products in the 250,000 square foot facility. Elevated concentrations of Volatile Organic Compounds (including chlorinated solvents), Polycyclic Aromatic Hydrocarbons, arsenic, copper, trivalent and hexavalent chromium, lead, nickel, and cyanide were measured in multiple soil and groundwater samples throughout the Property at concentrations greater than one or more Part 201 criteria. In addition, chlorinated solvents were measured in soil, groundwater, and soil gas samples at concentrations exceeding the Site-specific Nonresidential Volatilization to Indoor Criteria established for the Property. 1601 Madison, LLC (the “Developer”), an entity affiliated with Amplify GR and Rockford Construction, is proposing to demolish the existing industrial building to begin a first phase of development on the 10-acre site. Phase One will include the construction of a 60,000 square foot office/industrial building and surface parking lot on a three-acre portion of the Property. The new building will be leased to a single tenant, a device/data management company, which will relocate its West Michigan headquarters to Grand Rapids. It is anticipated that the remaining portion of the Property will be developed as future tenants are identified.

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The proposed grant funding would pay for the cost of demolition, transportation and disposal of contaminated soils, vapor intrusion mitigation, and other response activities, all as permitted by the EGLE grant program, and would assist in positioning the remaining 7 acres of the site for additional development. The total estimated investment in Phase One of the project is $12.5 million, excluding acquisition, and the Project is expected to result in the creation of 95 new full-time equivalent jobs. The attached resolution authorizes staff to submit the application and the BRA Executive Director to execute any and all necessary documents in a form to be approved by BRA legal counsel. The BRA would administer the grant and would receive the administrative revenue provided by EGLE, which is equal to three percent (3%) of the granted amount, or up to $30,000. These funds would be deposited in the BRA fund (Fund 2430, Department 742, Unit 2000, Revenue 5522, Activity 1000). A budget amendment would be required in order to accommodate the additional revenues and expenditures not included in the BRA budget, and the attached resolution authorizes staff to submit a budget amendment to the City Commission upon award of the grant. The BRA has previously approved a Brownfield Plan Amendment, Work Plan, Development and Reimbursement Agreement, and a Local Brownfield Revolving Fund Grant Agreement for the project. These previously approved plans and agreements contemplate and account for this proposed grant application, and depending on the amount of the grant award from EGLE, could reduce the required investment from the BRA in the first phase of the project. JG/JK/cb Attachments

..

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CITY OF GRAND RAPIDS

BROWNFIELD REDEVELOPMENT AUTHORITY

RESOLUTION APPROVING SUBMISSION OF A GRANT APPLICATION TO THE MICHIGAN DEPARTMENT OF ENVIRONMENT, GREAT LAKES AND ENERGY FOR THE 1601 MADISON REDEVELOPMENT PROJECT AND MATTERS RELATED THERETO

Boardmember , supported by Boardmember , moved the adoption of the following:

RESOLVED: 1. That the Executive Director of the Brownfield Redevelopment Authority (BRA) is

authorized to execute all forms and documents, approved as to form by the BRA legal counsel, required to submit an application for Brownfield Redevelopment grant funds to the Michigan Department of Environment, Great Lakes and Energy (EGLE); and

2. That the application for Brownfield Redevelopment grant funds is for eligible activities at contaminated property located at 1601 Madison Avenue SE in Grand Rapids, Michigan, the property proposed to be redeveloped into an office and industrial facility; and

3. That the project as conceptually proposed by the developer is consistent with local development plans, zoning ordinances and the City’s Master plan; and

4. That if the application is successful and funds are awarded, the BRA will proceed with the proposed project and BRA staff will administer the funds and report to the EGLE as necessary; and

5. That if funding is awarded, the BRA, as Grant Administrator, will verify to the EGLE when the approved eligible work is completed and will certify that the completed development is in conformance with local development plans and zoning ordinances; and

6. That if funding is awarded, that BRA staff is authorized to submit a budget amendment request to the City Commission to accommodate the additional revenues and expenditures, consistent with the terms of the grant; and

7. That any grant administration fees earned by the BRA shall be deposited in the BRA fund (Fund 2430, Department 742, Unit 1000, Revenue 5522, Activity 1000).

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YEAS: Boardmembers NAYS: Boardmembers ABSTAIN: Boardmembers ABSENT: Boardmembers RESOLUTION DECLARED ADOPTED. Dated: March 24, 2021 Kristine Bersche, Secretary

CERTIFICATION I, the undersigned duly qualified and acting Secretary of the City of Grand Rapids Brownfield Redevelopment Authority (the "Authority"), do hereby certify that the foregoing is a true and complete copy of a resolution adopted by the Board of Directors of the Authority at a meeting held on March 24, 2021, and that public notice of the meeting was given pursuant to Act 267 of the Public Acts of Michigan of 1976, as amended. Dated: March 24, 2021 Kristine Bersche, Secretary Prepared by Christian Borg

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1601 Madison, LLC 1601 Madison Avenue SE

Proposed Brownfield Project

Economic Development Department December 2020

1601 Madison Avenue SE

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