P.O. Box 30766, Lansing, Michigan 48909 www.michigan.gov/landbank [email protected]517-335-8212 Board of Directors Jeremy Hendges, TED Laura J. Mester, MDOT Shelbi Frayer, Treasury Ronald Smedley, EGLE Michael Turnquist, DTMB Jeff Huntington Interim Director State of Michigan Land Bank Fast Track Authority STATE OF MICHIGAN LAND BANK FAST TRACK AUTHORITY BOARD Wednesday – August 7, 2019 – 9:00 a.m. Michigan Land Bank Fast Track Authority 105 West Allegan – 3 rd Floor Grand River Conference Room Lansing, Michigan 48933 AGENDA 1. CALL TO ORDER 2. ROLL CALL 3. PUBLIC COMMENT 4. APPROVAL OF AGENDA 5. APPROVAL OF MEETING MINUTES a. FROM APRIL 18, 2019 MEETING 6. DIRECTOR’S REPORT a. REDEVELOPMENT LOAN PROGRAM STATUS LOG b. INVENTORY AND DISPOSITION REPORT c. MICHIGAN LAND BANK FAST TRACK FUND BALANCE 7. RESOLUTION – DELEGATION OF AUTHORITY 8. BOARD COUNSEL UPDATE 9. ADJOURNMENT Agenda items will commence at 9:00 a.m., or as soon thereafter as they may be heard. To confirm whether an agenda item has been postponed, or if you have any questions regarding the meeting, please call (517) 335-8212 before noon of the day prior to the meeting. The Authority Board may at its discretion revise this agenda or take up any other issues as need and time allow.
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STATE OF MICHIGAN LAND BANK FAST TRACK AUTHORITY …€¦ · Michael Turnquist, DTMB Jeff Huntington Interim Director State of Michigan Land Bank Fast Track Authority STATE OF MICHIGAN
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Agenda items will commence at 9:00 a.m., or as soon thereafter as they may be heard. To confirm whether an agenda item has
been postponed, or if you have any questions regarding the meeting, please call (517) 335-8212 before noon of the day prior to
the meeting. The Authority Board may at its discretion revise this agenda or take up any other issues as need and time allow.
STATE OF MICHIGAN LAND BANK FAST TRACK AUTHORITY BOARD MEETING
(MLBFTA)
Thursday, April 18, 2019 9:00 A.M.
Michigan Land Bank Fast Track Authority Grand River Conference Room
Members Present: Staff Present: Jeremy Hendges, Chair Josh Burgett Shelbi Frayer Patrick Ennis Ronald Smedley Jeff Huntington Michael Turnquist Ryan McNeil Jennifer Quinlivan Member Absent Brian Woodin Laura Mester Carolyn Latin-Smith Adam Robach, Contractor AG Office Erik Graney 1. Call to Order
Jeremy Hendges, Chair called the meeting to order at 9:01 am. 2. Roll Call
Roll Call taken. Quorum established
3. Public Comment None offered.
4. Approval of Agenda The motion was made by Ronald Smedley to approve the agenda as presented. Shelbi Frayer seconded the motion. Motion carried without dissent.
5. Approval of Meeting Minutes from March 20, 2019
The motion was made by Ronald Smedley to approve the minutes of March 20, 2019. Michael Turnquist seconded the motion. Motion carried without dissent.
6. Election of Vice Chair The Chair asked for nominations for the position of Vice Chair. Shelbi Frayer nominated Ronald Smedley. Hearing no other nominees, the Chair closed nominations. A motion was made by Shelbi Frayer to approve the nomination of Ronald Smedley as Vice-Chair. Michael Turnquist seconded the motion. Motion carried without dissent.
7. Director’s Report
The Director took this opportunity to distribute to members a copy of his resignation letter previously submitted to HR. He reminded the Board that his last day would be Friday, April 19th. On behalf of the Board, the Chair thanked Josh Burgett for his tremendous leadership and efforts in advancing land banking in Michigan. Additionally, the Director commented on the final disposition of the Michigan State Fairgrounds and DeHoCo. Lastly, the Director presented the monthly update on the Redevelopment Loan Program Status Log.
8. Resolution – Delegating an Authorized Officer
The Chair commented that with the departure of the Director, it is recommended that the Michigan Land Bank Track Authority designate the Interim Director, Jeffery M. Huntington, as the Authorized Officer to carry out certain Michigan Land Bank functions effective April 19, 2019. The motion was made by Ronald Smedley to approve the Resolution, Delegating an Authorized Officer, as presented. Supported by Michael Turnquist. Motion carried without dissent.
9. Adjournment The motion was made by Ronald Smedley to adjourn. Shelbi Frayer seconded the motion. Motion carried without dissent. The Chair adjourned the meeting at 9:13 a.m.
SUBJECT: Status Report for the Michigan Land Bank Fast Track
Authority (“Michigan Land Bank” or “MLB”) as of July 31, 2019
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Programs:
MSHDA Hardest Hit Fund Project:
The MLB’s involvement in the program has been completed, however, we will
continue our involvement in the four communities (Pontiac, Inkster, Hamtramck,
and Inkster) with a new focus. As we shift from Land Bank 1.0 (repository) to Land
Bank 2.0 (redevelopment) we will continue to make strides to collaborate with each
community. Collaboration could take the form of offering technical assistance
and/or financial assistance and recycling of the now 412 properties involved.
A current example of collaboration to recycle these program properties, and other
properties in our inventory, is occurring in the City of Highland Park. The MLB,
Wayne County Land Bank, and the City of Highland Park have been in discussions
to work together in an effort to best market properties in the City as all three
entities have ownership of property in the City. As we work through these
discussions with the City, the MLB and Wayne County Land Bank are in the
process of completing a swap of properties that aligns ownership in order to provide
a more marketable product.
Projects:
State Fairgrounds:
- Magic Plus – Sale completed April 10, 2019.
- City of Detroit – Sale completed April 29, 2019.
Detroit House of Corrections:
- Hillside Reality Investments – Sale completed March 20, 2019.
- REDICO
o A draft Response Activity Plan (RAP), totaling $11.3 million in soil
remediation/fill management costs, is under review by the Michigan
Department of Environment, Great Lakes, and Energy (EGLE). The
review is anticipated to be completed by or before September 2019.
o REDICO submitted a request for an Act 381 Brownfield Plan to MITC
Redevelopment Authority, which authorized commencement of
preparation at its April 26th meeting. REDICO’s work plans and
MITC’s brownfield plan will be completed once the RAP is completed
and submitted to EGLE and MSF for approval.
o REDICO has notified the MLB regarding the end of due diligence
period and REDICO’s intention to proceed with the property valuation
stage under the Purchase/Development Agreement. The purchase
price will be determined by an agreed upon appraisal process. The
purchase price will need to be approved by the MLB Board of Directors
and we anticipate closing within 30 days of that approval. REDICO
and the MLB have procured appraisers and are working through that
process.
o Staff has facilitated meetings with Treasury and MSF/MEDC for
project eligible activity financing and continues to coordinate all of
these actions directly or indirectly.
719 Prospect Avenue, NE - Grand Rapids:
We continue to work with the developer on a more comprehensive area wide
development plan. Staff anticipates an Act 381 brownfield project involving MLB
coordination. The MLB is drafting an option purchase/development agreement that
will give the developer until December 31, 2019 to act on the property.
Muskegon Heights Schools:
Demolition of the former Glendale Elementary School was completed. The MLB
continues to be committed to assist the City with development on this site.
Dwelling Place, Inc. has agreed to join the development collaboration with MLB and
InnovaLab, LLC. A new land plan is to be prepared with a mix of residential
building types to add density and capture value. The initial presentation to the
Muskegon Heights Council in work session was scheduled for June 3, 2019, but has
been deferred to August/September.
Condominium Developments:
The MLB has selected a developer for a 29-unit Rolling Hills Condominium site in
Pinckney, MI and are in the process of drafting a purchase/development agreement.
The completion of the purchase/development agreement will commence as we
continue to work with the Village of Pinckney officials and the condominium
association regarding site build-out.
An RFQ for development of the Woodland Trails Condominium lots in Owosso, MI
was due on April 18, 2019. The RFQ did not return a qualified developer entity.
MLB has requested InnovaLab, LLC to organize a development entity for the site.
Market analysis and product selection are underway.
Marquette County Land Bank:
The Osprey Pointe condominium development project has had good movement as on
June 5, 2019 the Marquette County Land Bank notified the MLB that all signatures
were received to remove the subject parcel from the original condominium master
deed, thereby enabling development of the site as a separate parcel. Site and
building design have commenced and the Marquette County Land Bank and
InnovaLab, LLC think the project may have merit to receive funding from a private
lender. If private funding does not come through, the project would be eligible to
apply for Housing Development Loan Funds from the MLB.
Mackinaw Power, Inc. contacted MLB in February 2019 regarding solar power
development of their leasehold properties in Marquette County south of and over a
portion of the Sawyer Airport area. Discussions between Mackinaw Power, Inc.,
Marquette County, and the MLB have continued, and planning meetings are now
being scheduled.
Wayne County Land Bank:
Collaboration has continued with the Wayne County Land Bank and an MOU has
been formalized. The MOU provides that both entities will work towards efforts to
collaborate on activities including inventory synergy and marketing, strategic
development projects, as well as programmatic and technical assistance.
As stated in the HHF update, the MLB and Wayne County Land Bank have already
started working towards these objectives by creating more marketable properties in
the City of Highland Park.
Land Bank Training:
The MLB continues to provide training for any interested municipality in the state,
including but not limited to, county or local officials with or without a local county
land bank. Discussions range from best practices around acquisition, disposition,
demolition, abatement, economic development tools, joining land banking and
redevelopment tax increment financing, and specific project brainstorming. With
the introduction of our Housing Development Loan Program there has been much
conversation on housing needs for communities across the state.
Below is a list of several of the trainings or community visits that have been
conducted:
• April 5, St. Ignace – 25 participants
• April 10 – River Rouge
• April 18 – Adrian
• April 26 – Oscoda
• May 3 – Traverse City
• May 8 – Barry County
• May 14 – West Branch
• June 3 – MAC Program in Grand Rapids – 40 participants
• June 10 - MAC Program in Escanaba – 25 participants
• June 17 – MAC Program in Frankenmuth – 30 participants
• June 20 – Boyne City – Charlevoix County, LBA, BRA, Chamber, and Boyne
City officials
• June 21 – Grayling – Grayling County BRA
• July 12 – Habitat for Humanity in Alpena – 30 participants
• July 23 - MAC Program in Gaylord – 25 participants
Additional trainings and workshops have been requested into September and
October.
State Surplus Redevelopment:
We are working with DTMB Real Estate Division on the following projects:
- Department of Corrections
o Camp Pugsley – Purchase Agreement executed with North Bay Capital
Group. Total purchase price of $1,195,000 ($1MM for Phase 1).
Development agreement executed by MLBFTA, North Bay Capital,
Grand Traverse County and Fife Lake Township. We have executed a
lease agreement for storage during the due diligence period. The
Project-Area Concept Plan was approved in June and the Phase Final
Plan was submitted for entitlement on July 20. An amendment to
include an additional 20 acres owned by MLB and accommodate recent
adjustment of land allocation to Grand Traverse County is in
preparation and to be completed by September 1. The project is on
schedule with closing on Phase 1 expected by October 31.
o Deerfield – The MLB updated the RFQ and posted the site for
development with a submittal deadline of July 19th. No responses were
received. The MLB has set a date in September to discuss next steps
for the former correctional facility with the City of Ionia.
o Tuscola Camp Main/Annex and Caro Cottages – Utilizing assessment
grants from the Tuscola County, the Tuscola Camp Main/Annex and
Caro cottage parcels have had a Phase I Environmental Site
Assessment (ESA) completed. Dates for a Phase II ESA have been set
in August, going into September, to complete due diligence on the sites.
Two (2) proposals were approved from the RFQ solicitation.
Indianfields Township’s request for Caro cottage area floodplain for
park expansion is presently pending survey and execution of a transfer
agreement. Caro Lockup, LLC’s proposal for Tuscola Camp Main was
approved but failed to proceed because the proposed developer was
unable to sufficiently capitalize for purchase and operations.
Remainder of Area 1, and all of Areas 2 & 3 have moved back into the
regular MLB property inventory and are available to the public. On
July 15, Caro Lockup, LLC contacted MLB indicating they now have
equity financing. The MLB has requested and is currently awaiting a
revised proposal.
o West Shoreline – Sale completed June 26, 2019 ($1,338,323.50).
Brightfields:
No advancement since last report as MLB is awaiting re-start of the inter-agency
Brightfields/Alternative Energy Work Group via request of the new administration.
In the interim, the MLB authorized a U-M Graduate Student Team to undertake a
land use/financial feasibility study of its large brownfield sites. This report shall be
completed and received by December 1, 2019.
Land Bank Housing Development Loan Program:
We served as the lending institution for the Kent County Land Bank to address the
workforce housing issue in their community. To date, we have loaned $2,368,388 to
the Kent County Land Bank. That investment has completed three (3) new homes
and one rehab in the City of Grand Rapids. Eleven (11) units are in the process of
being completed and sold in the coming months. We have had four properties close
for a repayment of $687,110 that yielded $28,859 in interest payments. Our final
total interest to be received on the full loan amount is anticipated to be $114,365.
The MLB continues to work with the City of Muskegon as they have been working
through approvals with their city council. Additionally, since the original request
from the City of Muskegon the project has changed from a modular housing
development project to an outdoor stick build housing project with a local developer.
This change in direction has the City checking with private lending institutions
before proceeding with the MLB. This is to ensure that the MLB Housing
Development Loan Program dollars are being used to fund projects that the private
market is not willing to fund.
Incremental Development Alliance:
Post-Boot Camp project development mentoring has been underway since March.
The Calhoun County Land Bank project work has focused on multiple parcels in
Albion and Marshall. In Highland Park a group of approximately 20 local
citizen/small-scale developers are collaborating on project development in the North
Point area. Work has been slower than anticipated because municipal support staff
and officials have required exposure and training to the curriculum. This need was
unexpected and will be considered in future phases of work. Next-phase project
locations (Grand Traverse County / Ingham County / Benzie County/ UP) is pending
final decision on FY 20 MLB budget. On July 19, MLB received a request to
support forming a collaboration in Bay, Saginaw and Midland counties, led by Bay
and Saginaw land banks, for IncDev small-scale developer production and training.
Michigan Rural Community Demolition Grant:
In Fiscal Year 2019, the Michigan Strategic Fund (MSF) received a one-time
appropriation of $350,000 toward blight removal projects in counties with
populations under 50,000. The MLB is administering these grant dollars, while the
MSF will directly reimburse the grantee upon completion and approval by the MLB.
Each awarded grant was to be used to demolish vacant and abandoned structures
and promote public safety, stabilize property values and enhance economic
development opportunities throughout the state of Michigan. The maximum award
per proposal was $50,000.00.
County Land Banks or local units of government such as counties, cities, townships
or villages located in counties with a population less than 50,000 reported in the
2010 census data were considered eligible applicants. There was a limit of one
proposal per applicant; however, multiple applicants from one county could apply.
Applications were due February 15, 2019.
Twenty-six eligible applications and three ineligible applications were received.
These requests totaled over $983,000. Nine of the applicants were awarded grants
ranging from $10,000 to $50,000.
An option within the Grant allowed an applicant to have the MLB procure and
manage the demolition project. Two jurisdictions, the cities of Newaygo and West
Branch, took advantage of that offer.
County: Applicant - Jurisdiction: Proposed Budget by applicant:
Ontonagon Village of Ontonagon $ 50,000.00
Gogebic Bessemer $ 50,000.00
Houghton Houghton County LB $ 50,000.00
Gogebic Ironwood $ 50,000.00
Huron City of Harbor Beach $ 40,000.00
Ontonagon Ontonagon Twp $ 20,000.00
Manistee Manistee Co LB $ 10,000.00
Ogemaw West Branch $ 50,000.00
Newaygo City of Newaygo $ 21,158.00
Houghton County has completed their demolition and has requested
reimbursement. The other eight communities are in varying stages of demolition
and bordering on reimbursement.
The MLB also made it a priority to visit any applicant that was not awarded, if they
requested MLB assistance. Several communities responded which is not only
leading to plans for the demolition of the site they requested, but also to other
possible plans for other projects or community needs, such as housing.
Current CY 2019 Property Information:
Property Inventory:
MLB currently has 2,784 properties in inventory.
Disposition Report:
MLB has disposed of 103 properties for $117,080 in CY2019. We continue to
transfer City of Detroit properties to the Detroit Land Bank Authority. During CY
2019, we have transferred 100 additional properties.
The MLB has continued to streamline our disposition process and developed
processes around tracking our disposition pipeline. Entering CY2019 property
sales, we have:
• Seven (7) closings in process
• Seventy-seven (77) applications in our Disposition Pipeline
The MLB team continues to work diligently to refresh and update our property
information.
The MLB team also continues to be proactive in disposition. So far in calendar year
2019 the MLB has sent just over 400 letters that have generated 34 applications.
There have been a dozen responses from Lake County specific mailings and a few
more stemming from the partnership with the Lake County Land Bank. Other
targeted mailings sent to other adjacent owners across the state have generated
$31,000 in sales and counting. Further work has been conducted in cleaning up the
odds and ends parcels that has resulted in one 10’ by 10’ parcel being combined and
disposed of, with multiple other slivers in the process of returning to the tax rolls.
Finally, the many MLB-branded “Lot for Sale” signs the MLB has placed on parcels
in surrounding counties (especially Jackson County) have generated a very high
number of responses which will hopefully translate to sales. The MLB will continue
to move on multiple fronts so as to recycle state owned property back to productive
use.
Report on Exercise of Delegation of Authority by the Director:
Pursuant to Board approval of Resolution 2019-3, dated April 18, 2019, which
delegated authority to the Director, the following invoices were paid:
- GTJ Consulting, Inv 230725, Date: 6/14/19, $102,960.00, May 2019
Maintenance
- GTJ Consulting, Inv 232022, Date: 7/22/19, $67,411.00, June 2019
Maintenance
Housing Development Loan Program - Status Log
Property Address Property Owner
Loan
Number
Loan
Amount
Effective
Date
Maturity
Date
Payoff Check
Received
Interest
Payment
Payoff
Amount Notes
1010 Cooper Avenue, SE, Grand Rapids, Michigan 49507 Kent County Land Bank Authority 2018-01 $154,784 5/8/2018 5/21/2019 3/11/2019 $7,739.20 $162,523.20
1855 Herrick Avenue, NE, Grand Rapids, Michigan 49505 Kent County Land Bank Authority 2018-02 $162,967 5/8/2018 5/21/2019 3/22/2019 $8,148.35 $171,115.35
836 Sigsbee Street, SE, Grand Rapids, Michigan 49507 Kent County Land Bank Authority 2018-03 $170,500 5/8/2018 5/21/2019 4/9/2019 $8,525.00 $179,025.00
1110 Alto Avenue, SE, Grand Rapids, Michigan 49507 Kent County Land Bank Authority 2019-01 $164,317 1/10/2019 12/31/2019
1116 Alto Avenue, SE, Grand Rapids, Michigan 49507 Kent County Land Bank Authority 2019-02 $166,130 1/10/2019 12/31/2019
1120 Alto Avenue, SE, Grand Rapids, Michigan 49507 Kent County Land Bank Authority 2019-03 $164,317 1/10/2019 12/31/2019
3651 Coit Avenue, NE, Grand Rapids, Michigan 49525 Kent County Land Bank Authority 2019-04 $170,000 1/10/2019 12/31/2019 5/31/2019 $4,446.00 $93,366.00
Full loan amount was not drawn upon.....$88,920
used by Borrower
$0.00 $81,080.00
6/4 - title co. sending check for return of funds
that were not drawn; 6/10 - received check for
$81,050 (requested remaining $30 balance due)
518 Fuller Avenue, SE, Grand Rapids, Michigan 49506 Kent County Land Bank Authority 2019-05 $182,954 1/25/2019 12/31/2019
724 Bates Street, SE, Grand Rapids, Michigan 49503 Kent County Land Bank Authority 2019-06 $175,466 1/25/2019 12/31/2019
729-735 Bates Street, SE, Grand Rapids, Michigan 49503 Kent County Land Bank Authority 2019-07 $500,608 3/6/2019 12/31/2019
737-739 Bates Street, SE, Grand Rapids, Michigan 49503 Kent County Land Bank Authority 2019-08 $356,345 3/6/2019 12/31/2019