Minutes and Agendas

Standale DDA Minutes

Approved 9-23-08
Downtown Development Authority
August 19, 2008
Minutes
Fire Station #2 – 4101 Lake Michigan Drive NW
1:00PM – DDA Conference Room

1. The meeting was called to order at 1:00PM by Chairman Hicks.

Members Present: G. Hicks, J. Cornell, P. Goodale, C. Vander Meulen, J. McIsaac, M. Neal, A. Hartzler, L. Rios, D. Felton, J. DiLeonardo

Members Absent: J. Veldheer

Also Present: Sue Wyngaarden – Varnum, Riddering, Schmidt & Howlett, Mike Murray – Grubb & Ellis, Don Vos – Reliable Sports, Frank Wash, Walker Planning Director – City of Walker, Darrel Schmalzel, Asst. City Manager – City of Walker

2. Approval of Minutes – On a motion by J. Cornell with support by P. Goodale, the meeting minutes of May 20, 2008 were approved. Motion Carried.

3. Consideration of Purchase offer(s) for DDA Property at 4284 Lake Michigan Drive –

Discussion took place regarding 3 Purchase Offers for said property. C. Vander Meulen introduced Mike Murray with Grubb & Ellis, who is representing the DDA in the sale of the property. The property was originally listed in July of 2007. At that time, the offers received were not acceptable. Just recently, 2 offers were received along with a third offer that came in on Monday. Vander Meulen reminded the board about our goals for the property development. We must also consider the Master Plan.

Offer #1 - The first offer was received from J & B Associates. Their main interest for purchasing the property was to build a Jimmy John’s sandwich shop. They initially offered $150,000, but due to unanticipated development costs that amount was recently decreased to $100,000.

Offer #2 – The second offer was received from DP South Haven LLC for a possible construction of an Advanced Auto Parts store. The offer was in the amount of $230,000. They would also purchase the property directly to the west and combine both for development.

Offer #3 was received from Pat Goodale for the construction of a road that would lead to his property located behind Reliable Sports. The proposed offer is in the amount of $175,000.

Following a great deal of discussion regarding the three offers, the DDA decided to accept Offer #2 submitted by DP South Haven LLC with contingencies. Attorney Wyngaarden will prepare a counter offer along with an amended addendum that will include changes regarding due diligence (from 120 to 90 days), a closing date change (from 90 to 30 days), soil boring tests, restoration of property, and an earnest money adjustment (from $1,000 to $10,000). There would also be an added provision regarding review and approvals by City staff, review of Master Plan requirements, and approval by the Planning Commission and the DDA and a change of the closing date to take in February 2009.

A motion was made by J. Cornell with support by D. Felton to accept the offer from DP South Haven LLC in the amount of $ 230,000 with the contingencies stated in amended agreement. Motion Carried. (Member Goodale abstained)

4. Public Parking Lot Easements – Transfer of Property. Attorney Wyngaarden provided information relating to a Purchase Agreement between Standale Lumber and Home Furnishing Co. and the DDA which began in June of 1987. Standale Lumber and Home Furnishing Co. agreed to sell to the DDA certain real property commonly known as 4046 Lake Michigan Drive for the purchase price of $25,000. A Warranty Deed dated August 3, 1987 conveyed the property to the DDA.

The Buyers and the DDA entered into a purchase agreement dated October 30, 1987 whereby the DDA agreed to construct a parking lot on the property and to sell the property to the Buyers after the parking lot was completed for a purchase price equal to the cost to the DDA of constructing the parking lot.

Following completion of the parking lot, the DDA and the Buyers entered into a land contract providing for the purchase of the property at a price of $206,000, payable over 15 years. The buyers paid approximately $25,000 to the DDA as land contract payments for the property, which payments stopped around October 17, 1989. At that time, the DDA agreed that no additional payments would be required from the Buyers since other property owners along Lake Michigan Drive were provided with parking improvements funded through a bond issue.

The parties would like the DDA to reconvey the property to the Buyers as specified in the Agreement. Now, the DDA shall convey a portion of the property by quitclaim deed to Kenneth E. Holtvluwer and Gordon Hicks. Holtvluwer and Hicks each agree to the division of the property between them as described in the agreement and on the attached quit claim deeds for the purchase price of $25,000. Holtvluwer and Hicks each acknowledge that they are accepting the properties in "as is, where is" condition.

A motion was made by L. Rios with support by J. Cornell to approve the transfer of the property. G. Hicks abstained from voting. Motion Carried.

Parking Easements – Special Assessments. The Special Assessments were set to expire on the parking lots in the 2007 tax year. In March, property owners were invited to a meeting to discuss the easements as well as asking the property owners if they are going to "re-up". There were many who were no longer interested in participating in the Special Assessment District. Vander Meulen recommended that a letter be drafted to the property owners informing them that the Special Assessment is expiring and that snow removal and additional services will then become the owner’s responsibility. Snowplowing for the sidewalks in the district will remain as part of the streetscape assessment. Vander Meulen will report on responses at the next meeting.

5. Memorial Day Parade – Historically the City of Walker Recreation Department was in charge of the annual Memorial Day parade. Due to budgetary constraints and resulting staff/hourly reductions, a number of programs needed to be eliminated – the parade being one of the programmed items. The Finance Committee met recently to discuss the possibilities of finding other ways to continue some of the affected events. Vander Meulen asked the DDA if they would be willing to organize and/or supply funding to the parade. Following discussion, it was decided that the DDA would be interested in assisting monetarily. They are interested in holding the Festival during the Memorial weekend at Cummings Park.

6. Budget Status/New Budget for 2008/2009 – Vander Meulen reviewed budget information with members. Fund equity is currently $165,000 (as of 7/1/08), and the proposed budget amount for 2008/09 is $546,000. There are still three outstanding loans: 1) 419 Cummings – one more payment of $60,000, 2) 4243 Lake Michigan Drive – installment of $120,000, and 3) 426 Parkside - $57,000. The home at 419 Cummings is in very poor condition and may be demolished. The streetscape revenues anticipated for 08/09 are $121,700 with expenses of $120,000. There are no remaining funds in the parking lot assessment maintenance fund for 2008/09.

7. Updates:

Former Fire Station #2 – Following several meetings, the team of Constructors Inc. and Cornerstone Architects were chosen by the DDA Subcommittee to work to design and develop the old Fire Station #2 property. City staff met with them to discuss what the next steps will be.

Walgreen’s – The Walgreen’s project that will be located on the former Ralph’s site has been approved by the Planning Commission. In addition to the new store construction, Walgreen’s had also agreed to help provide a new "welcome sign" at the corner of Lake Michigan Drive and Wilson. The developer has asked the DDA for monetary assistance with the "welcome area" improvements. The DDA has agreed to help out with the project and will be discussing costs involved for the improvements at the next DDA meeting. The current Walgreen’s location will be leased out when the new store is completed.

Highlander Restaurant – The former Highlander Restaurant has been purchased and is currently being renovated. The new restaurant is anticipated to be an Italian/Mexican bar & grill. More information to follow.

Goodwill Project/Site Plan – The rezoning is approved.

8. Any Other Business – City Manager Vander Meulen received a call from someone interested in using the former chiropractic office property located in Standale for a site to sell apples. They will have one truck and a stand, and sales are anticipated to end by November 15. The zoning is approved and a temporary use permit will be issued by the building Department. The DDA consented to the use per the City’s zoning requirements.

Next Meeting Date and Time – The next meeting is scheduled for September 23 at 1:00PM, Fire Station #2, 4101 Lake Michigan Drive NW.

Adjournment – On a motion by D. Felton with support by J. Cornell, the meeting was adjourned. Motion Carried.

Respectfully Submitted to City Manager Vander Meulen,

Julia Kozminski, Recording Secretary

The City of Walker, Michigan
4243 Remembrance Rd. NW
Walker, MI 49534
(616)453-6311
City Hall hours: Mon-Thursday from 7:30am to 5:30pm. Closed Fridays
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