AMENDED BROWNFIELD PLAN # W. Grand River Avenue and 303 Abbot Road, East Lansing, Michigan 48823

Transcription

1 EAST LANSING BROWNFIELD REDEVELOPMENT AUTHORITY AMENDED BROWNFIELD PLAN # W. Grand River Avenue and 303 Abbot Road, East Lansing, Michigan Prepared By: East Lansing Brownfield Redevelopment Authority 410 Abbot Road East Lansing, Michigan Contact Person: Tim Dempsey Phone: Triterra 1375 S. Washington Avenue, Suite 300 Lansing, Michigan Contact Person: Dave Van Haaren Phone: Approved by the City of East Lansing BRA on: Adopted by the City of East Lansing City Council on:

2 TABLE OF CONTENTS 1.0 PROJECT SUMMARY INTRODUCTION AND PURPOSE ELIGIBLE PROPERTY INFORMATION PROPOSED REDEVELOPMENT BROWNFIELD CONDITIONS BROWNFIELD PLAN Description of Costs to Be Paid With Tax Increment Revenues and Summary of Eligible Activities Estimate of Captured Taxable Value, Tax Increment Revenues and Impact of Tax Increment Financing on Taxing Jurisdictions Method of Financing Plan Costs and Description of Advances by the Municipality Maximum Amount of Note or Bonded Indebtedness Duration of Brownfield Plan Legal Description, Property Map, Property Characteristics and Personal Property Estimates of Residents and Displacement of Families Plan for Relocation of Displaced Persons Provisions for Relocation Costs Strategy for Compliance with Michigan s Relocation Assistance Law Description of the Proposed Use of Local Site Remediation Revolving Fund Other Material that the Authority or Governing Body Considers Pertinent FIGURES Figure 1: Property Location Map Figure 2: Property Boundary Diagram Figure 3: Overall Site Plan Figure 4: Soil Analytical Results Exceeding of MDEQ GRCC 100 W. Grand River Avenue Figure 5: Soil Analytical Results Exceeding of MDEQ GRCC 136 W. Grand River Avenue Figure 6: Soil Boring Map with Analytical Results Albert Avenue (PM Environmental) TABLES Table 1: Tax Increment Revenue Capture Estimates Table 2: Tax Increment Revenue Reimbursement Allocation Table ATTACHMENTS Attachment A: Legal Descriptions of the Property Attachment B: Summary of Known Environmental Conditions i

3 Brownfield Plan #11 Amendment W. Grand River Avenue and 303 Abbot Road, 1.0 PROJECT SUMMARY Project Name: Developer: Property Location: Parcel Information: Type of Eligible Property: Project Description: W. Grand River Avenue and 303 Abbot Road 100 Grand River LLC W. Grand River Avenue and 303 Abbot Road, East Lansing, Michigan The property consists of seven (7) parcels; Parcel IDs , , , , , , Facility and Adjacent and Contiguous A complete redevelopment of the subject property located in downtown East Lansing. The project includes a complete demolition and redevelopment of the complex of vacant, underutilized, and functionally obsolete building structures and adjacent thoroughfares located in the immediate proximity of Michigan State University (MSU) and City Hall for the City of East Lansing. The Mixed-use Development includes: A 13-story mixed-use retail and apartment building with 2 levels of structured/accessory parking located at the northwest corner of West Grand River Avenue and Abbot Road. The proposed structure will include 13,000 square feet of ground floor retail and 218 mixed market residential units. The proposed structure includes a public plaza on the northern portion along Abbott Road for the benefit of building tenants, customers and the general public. The second and third levels of the structure will include an 89 car screened parking structure integrated into the building for building residents. The screened enclosure will consist of brick masonry, metal panel and louvered openings. It will provide no visible evidence of the parking deck. 2

4 Brownfield Plan #11 Amendment W. Grand River Avenue and 303 Abbot Road, A 10-story Graduate hotel with ground floor lobby, 194 guestrooms, meeting rooms, ballrooms, fitness room and rooftop restaurant and lounge. Replacing misaligned roads at a major downtown intersection and old aged inadequate utilities. Brownfield eligible activities include Baseline Environmental Assessment activities, due care activities, asbestos surveys and abatement, building and site demolition, site preparation and public infrastructure improvements. Total Capital Investment: Estimated Job Creation/Retention: Estimated at $102,010,000 of which $5,956,526 is currently proposed for Brownfield Reimbursement specific to expenses associated with environmental activities, demolition and abatement, site work and public improvements. The redevelopment is anticipated to generate 170 new fulltime equivalent jobs with an estimated annual payroll of 6.2 million dollars. Duration of Plan: 9 years (starting in 2020). Reimbursable Costs: $5,956,526 Additionally, this redevelopment will result in the creation/retention of construction related jobs. On average, 165 construction related jobs / employees will be employed each day for the project s duration and will result in construction related payroll estimated at 35.8 million dollars. 3

5 Brownfield Plan #11 Amendment W. Grand River Avenue and 303 Abbot Road, Reimbursement Summary Use Environmental/Non-Environmental Activities $4,832,245 Interest $1,124,181 Total $5,956,526 Use of New Tax Increment Revenue (TIR): Use Reimburse Developer for Eligible Activity Costs $5,956,526 State Brownfield Revolving Fund $303,841 ELBRA Plan Administration $135,000 DDA Capture Interlocal Agreement $250,000 Local Site Remediation Revolving Fund (LSRRF) $0 New Taxes to City Debt, School Debt, DDA $959,347 Total $7,604,714 4

6 Brownfield Plan #11 Amendment W. Grand River Avenue and 303 Abbot Road, 2.0 INTRODUCTION AND PURPOSE The City of East Lansing Brownfield Redevelopment Authority (Authority or ELBRA ), duly established by resolution of the City Council of the City of East Lansing, pursuant to the Brownfield Redevelopment Financing Act, Michigan Public Act 381 of 1996, MCLA et. seq., as amended (Act 381), is authorized to exercise its powers within the City of East Lansing, Michigan. The purpose of this Brownfield Plan (the Plan ), to be implemented by the ELBRA, is to satisfy the requirements for a Brownfield Plan as specified in Act 381 The Plan will allow the ELBRA to use tax increment financing to reimburse 100 Grand River LLC (referred to as the Developer ) for the costs of eligible activities required to redevelop the eligible property located at W. Grand River Avenue and 303 Abbot Road and adjacent right-of-way in the City of East Lansing, Michigan, (collectively referred to as the Property ). The development activities proposed in this Brownfield Plan will only be economically viable with the support and approval of the brownfield redevelopment incentives described herein. 5

7 Brownfield Plan #11 Amendment W. Grand River Avenue and 303 Abbot Road, 3.0 ELIGIBLE PROPERTY INFORMATION This Brownfield Plan is presented to support the Developer in the redevelopment of 7 parcels of land and various adjacent road right-of-ways located in Downtown East Lansing, Ingham County, Michigan. The parcels are a mix of privately and publicly owned parcels commonly referred to as the Park District Planning Area. The location of the Property is depicted on Figure 1. A summary of the Property is presented in the table below: Eligible Property Address Tax ID Basis of Eligibility 100 W Grand River Avenue Facility 124 W Grand River Avenue Adjacent and Contiguous 128 W Grand River Avenue Adjacent and Contiguous 130 W Grand River Avenue Adjacent and Contiguous 136 W Grand River Avenue Facility 140 W Grand River Avenue Adjacent and Contiguous 303 Abbot Road Adjacent and Contiguous Albert Avenue Right-of-Way N/A Facility The Property consists of approximately 1.2 acres of vacant land. The parcels along West Grand River formerly included a 37,192-square foot, four-story commercial building at 100 W. Grand River Avenue and an 17,369-square foot, two-story commercial and residential building at W. Grand River Avenue. The buildings along West Grand River were vacant and/or underutilized for over a decade. In 2017 these buildings were demolished and removed from the Property by the Developer. The former bank building located at 303 Abbot Road was demolished by the East Lansing Downtown Development Authority (DDA) in August The Property is situated within the City of East Lansing Downtown Development Authority (DDA) boundaries and in the immediate proximity of Michigan State University (MSU) and City Hall. The Property is located within the boundaries of the City of East Lansing, Michigan. Property layout and boundaries are depicted on Figures 2 and 3. The legal description of the Property is included in Attachment A. The Property is considered an eligible property as defined by Act 381, Section 2 because: (a) the Property was previously utilized as a commercial property; (b) it is located within the City of East Lansing, a qualified local governmental unit (QLGU) under MCL (k); (c) the parcels located at 100 and 136 W. Grand River Avenue and the adjacent Evergreen Avenue and Albert Avenue right-of-ways have been determined to meet facility status as the term is defined by Part 201 of Michigan s Natural Resources and Environmental Protection Act, P.A. 451, as amended; (d) the parcel located at 100 W. Grand River Avenue has been determined to be functionally obsolete as defined in Section 2(s) of Act 381; and 6

8 Brownfield Plan #11 Amendment W. Grand River Avenue and 303 Abbot Road, (d) the remaining parcels of the Property are adjacent and contiguous to the aforementioned qualifying parcels. Refer to Attachment B, Summary of Known Environmental Conditions. Figures depicting environmental impact are provided as Figures 4 through 6. 7

9 Brownfield Plan #11 Amendment W. Grand River Avenue and 303 Abbot Road, 4.0 PROPOSED REDEVELOPMENT The Project includes a complete redevelopment of the subject Property including the demolition of all existing structures and the construction of a multi-story mixed-use building, and a multi-story retail and hotel building. The Mixed-use Development Project includes a 13-story retail and apartment building with 2 levels of parking located at the northwest corner of West Grand River Avenue and Abbot Road ( Building A ). The proposed structure will include 13,000 square feet of ground floor retail and 200 mixed market residential units. The proposed structure includes a public plaza on the northern portion along Abbott Road for the benefit of building tenants, customers and the general public. The second and third levels of the structure will include an 89 car screened parking structure integrated into the building for building residents. The screened enclosure will consist of brick masonry, metal panel and louvered openings. It will provide no visible evidence of the parking deck. The proposed Project includes a 10-story hotel with ground floor lobby, 194 guest rooms, meeting rooms, ballrooms, fitness room and rooftop restaurant and lounge. ( Building D ). The building will front on Evergreen Avenue, which will be rebuilt with new underground utilities, street pavers, sidewalks, trees and planters, and an outdoor plaza with a seating area. The Development Project includes significant public way improvements within street rightof-ways and underground infrastructure improvements to correct awkward street alignments and improve capacity of water and sewer lines and redevelopment of Evergreen Avenue as a pedestrian/bicycle thoroughfare. According to the City, the underground infrastructure is over 80 years old and will need to be replaced or upgraded in the next 10 to 20 years. Public way infrastructure improvements include the closure of portions of Evergreen Avenue and realignment Albert Avenue. Underground infrastructure improvements include new water, electric, storm water, and sanitary service. The total anticipated investment into the redevelopment project is estimated at $102,010,000. The development will result in the complete redevelopment of contaminated property in the city of East Lansing. This development will improve the appearance of the area and put the property back to productive use. The redevelopment is anticipated to generate 170 new full-time equivalent jobs with an estimated annual payroll of 6.2 million dollars. Additionally, this redevelopment will result in the creation/retention of construction related jobs. On average, 165 construction related jobs / employees will be employed each day for the project s duration and will result in construction related payroll estimated at 35.8 million dollars. 8

10 Brownfield Plan #11 Amendment W. Grand River Avenue and 303 Abbot Road, 5.0 BROWNFIELD CONDITIONS The parcel located at 100 W. Grand River Avenue contained a residential house from at least 1906 to By 1927 the dwelling was razed, and a four-story commercial building and a former north-adjoining building (the Abbot Building ) were constructed. The Abbot building was razed in 1985, and converted into a parking-lot. This parcel has been used for a bank, State Theater, retail, salons, photography studios, commercial offices, drug store, dry cleaning, printing, and residential purposes. The four-story commercial building (vacant since at least 2004) was demolished in This parcel is currently vacant. The parcel located at W. Grand River Avenue contained a residential house and an outbuilding from at least 1906 until The buildings were razed in 1917, and a two-story commercial building was constructed. Sometime between 1913 and 1926 a residential house (215 Evergreen Avenue) was constructed in the north portion of this parcel, and was razed prior to By 1951 a residential house (211 Evergreen Avenue) was built north of the commercial building on this parcel; the dwelling was converted into a store by 1953, and razed by This parcel was used for commercial offices, retail, multiple restaurants, dance and fitness studios, dry cleaning, and residential purposes. The building (vacant since at least 2010) was demolished in The parcel is currently vacant. The parcel located at 303 Abbot Road contained a residential dwelling from at least 1906 through approximately The residence was demolished circa 1938, at which time a two-story commercial building was constructed on the Property. From 1938 until 2007, the parcel was used for various commercial operations, including multiple banks and a multitude of corporate offices. The building remained vacant from 2007 until its demolition in The buildings at W. Grand River Avenue contained asbestos containing building materials (e.g. pipe insulation, boiler wrap insulation, cement board paneling, floor tile, roofing and roof flashing, roofing tar and fabric, fire doors, mastic, and building caulking) that required abatement prior to demolition. The presence of contaminants in subsurface soils at levels greater than the Michigan Department of Environmental Quality (DEQ) Part 201 residential generic cleanup criteria is documented at 100 W. Grand River Avenue and 136 W. Grand River Avenue and within right-of-ways immediately adjacent to the subject parcels. A summary of known environmental conditions is included in Attachment B. Maps depicting environmental impact within the boundary of the Property is provided as Figures 4 and 6. 9

11 Brownfield Plan #11 Amendment W. Grand River Avenue and 303 Abbot Road, 6.0 BROWNFIELD PLAN 6.1 Description of Costs to Be Paid With Tax Increment Revenues and Summary of Eligible Activities The Developer will be reimbursed for the costs of eligible activities necessary to prepare the Property for redevelopment. The activities included in the Plan are considered eligible activities as defined by Sec 2 of Act 381. Brownfield eligible activities include Baseline Environmental Assessment activities, DEQ department specific due care activities, asbestos surveys and abatement, building and site demolition, site preparation, public infrastructure improvements and preparation of the Brownfield Plan and Act 381 Work Plan. The costs of eligible activities included in, and authorized by, this Plan will be reimbursed with incremental local and state tax revenues generated by the Property redevelopment and captured by the ELBRA, subject to any limitations and conditions described in this Plan and the terms of a Reimbursement Agreement between the Developer and the Authority (the Reimbursement Agreement ). The total cost of activities eligible for reimbursement from tax increment revenues is projected to be $5,956,526. The eligible activities are summarized below: STATE AND LOCAL ELIGIBLE ACTIVITIES DEQ Eligible Activities Department Specific Activities Total DEQ Eligible Activities...$287,559 MSF Eligible Activities Asbestos Abatement, Building and Site Demolition... $1,099,086 Site Preparation and Infrastructure Improvements... $3,415,700 Total MSF Eligible Activities... $4,514,786 Total DEQ and MSF Eligible Activities... $4,802,345 Brownfield Plan / Act 381 Work Plan Preparation... $30,000 Interest (5%)... $1,124,181 TOTAL DEVELOPER ELIGIBLE ACTIVITIES... $5,956,526 10

12 Brownfield Plan #11 Amendment W. Grand River Avenue and 303 Abbot Road, The costs of eligible activities included in, and authorized by, this Plan will be reimbursed with incremental local and state tax revenues generated by the Property redevelopment and captured by the ELBRA, subject to any limitations and conditions described in this Plan and the terms of a Reimbursement Agreement between the Developer and the Authority (the Reimbursement Agreement ). 6.2 Estimate of Captured Taxable Value, Tax Increment Revenues and Impact of Tax Increment Financing on Taxing Jurisdictions The costs of eligible activities included in, and authorized by, this Plan will be reimbursed with incremental local and school tax revenues generated by the Property redevelopment and captured by the ELBRA. This Plan does include the capture of the School Operating or State Education Tax. The 2018 taxable value of the Property was $839,489 which is the initial taxable value for this Plan. Taxable values were obtained from the City of East Lansing on August 9, A summary of initial taxable values is presented on the following page Taxable Values Address Tax ID Taxable Value 100 W Grand River Avenue $434, W Grand River Avenue $40, W Grand River Avenue $44, W Grand River Avenue $44, W Grand River Avenue $227, W Grand River Avenue $47, Abbot Road $0 TOTAL $839,489 The increase in projected taxable values is phased over 4 years with a final taxable value of $15,481,500 in This projected future taxable value is based on an estimate as discussed with the City of East Lansing Assessor s Office. The actual taxable value will be determined by the City s Assessor after the development is completed. It is estimated that the ELBRA will capture tax increment revenues from 2020 through 2028 to reimburse the cost of the eligible activities and capture for ELBRA administration of the Plan. The total impact of incremental tax capture on taxing jurisdictions is estimated at $7,603,662 based on $5,956,526 of Developer Reimbursement, $135,000 for ELBRA administration of the Plan, $303,841 in tax capture for deposits into the State Brownfield 11

13 Brownfield Plan #11 Amendment W. Grand River Avenue and 303 Abbot Road, Revolving Fund, $959,347 in new tax revenue to the city debt, DDA and East Lansing Public Schools millage and $250,000 for DDA capture (interlocal agreement). The captured incremental taxable value and associated tax increment revenue will be based on the actual increased taxable value from all taxable improvements on the Property as determined by the City Assessor and the actual millage rates levied by the various taxing jurisdictions during each year of the plan. The actual tax increment captured will be based on taxable value set through the property assessment process by the local unit of government and the millage rates set each year by the taxing jurisdictions. 6.3 Method of Financing Plan Costs and Description of Advances by the Municipality The Developer is ultimately responsible for financing the costs of eligible activities included in this Plan. Neither the ELBRA nor the County of Ingham will advance any funds to finance the eligible activities described in this Plan. All Plan financing commitments and activities and cost reimbursements authorized under this Plan shall be governed by the Reimbursement Agreement. The inclusion of eligible activities and estimates of costs to be reimbursed in this Plan is intended to authorize the ELBRA to fund such reimbursements. The amount and source of any tax increment revenues that will be used for purposes authorized by this Plan, and the terms and conditions for such use and upon any reimbursement of the expenses permitted by the Plan, will be provided solely under the Reimbursement Agreement contemplated by this Plan. Reimbursements under the Reimbursement Agreement shall not exceed the cost of eligible activities and reimbursement limits described in this Plan Maximum Amount of Note or Bonded Indebtedness Not applicable. 6.5 Duration of Brownfield Plan The duration of this Brownfield Plan for the Property is anticipated to be 9 years after the first year of tax capture, which is proposed as 2020 in this Plan. The Plan shall not authorize the capture of tax increment revenue from the Property after the year in which the total amount of tax increment revenues captured is equal to the sum of the costs permitted to be funded with tax increment revenues or 30 years from the beginning date of the capture of the tax increment revenues for the Property, whichever occurs first. 12

14 Brownfield Plan #11 Amendment W. Grand River Avenue and 303 Abbot Road, 6.6 Legal Description, Property Map, Property Characteristics and Personal Property The boundary subject to this Brownfield Plan consists of 7 parcels of land and various adjacent road right-of-ways located in East Lansing, Ingham County, Michigan. The Property is situated within an area of downtown commercial development located in the immediate proximity of Michigan State University (MSU) and City Hall. The Property is located within the boundaries of the City of East Lansing, Michigan. The general Property location is depicted on Figures 1. Property layout and boundaries are depicted on Figures 2 and 3. A legal description for each parcel is included in Attachment A. The subject Property includes all tangible personal property that now or in the future comes to be owned or installed on the Property by the Developer. 6.7 Estimates of Residents and Displacement of Families No persons will be displaced as a result of this project. 6.8 Plan for Relocation of Displaced Persons Not applicable. 6.9 Provisions for Relocation Costs Not applicable Strategy for Compliance with Michigan s Relocation Assistance Law Not Applicable Description of the Proposed Use of Local Site Remediation Revolving Fund The ELBRA has not established, managed, or maintained a Local Site Remediation Revolving Fund (LSRRF). Therefore, the ELBRA will not capture incremental local taxes to fund the LSRRF and no LSRRF monies will be used to finance or reimburse eligible activities described in this Brownfield Plan. 13

15 Brownfield Plan #11 Amendment W. Grand River Avenue and 303 Abbot Road, 6.12 Other Material that the Authority or Governing Body Considers Pertinent The Developer is relying on additional financial support through an amendment of an existing Large Brownfield Michigan Business Tax (MBT) Credit awarded to the site ( W. Grand River, 303 Abbot Road) by the Michigan Department of Economic Development (MEDC) in May 2011; MEDC Project No

16 FIGURES Figure 1: Property Location Map Figure 2: Property Boundary Diagram Figure 3: Overall Site Plan Figure 4: Soil Analytical Results Exceeding of MDEQ GRCC 100 W. Grand River Avenue Figure 5: Soil Analytical Results Exceeding of MDEQ GRCC 136 W. Grand River Avenue Figure 6: Soil Boring Map with Analytical Results Albert Avenue (PM Environmental)

17 W. GRAND RIVER AVENUE, 303 ABBOT ROAD, 314, 328, 334, 340, 341 EVERGREEN AVENUE EAST LANSING, MI 48823

18 Approximate Property Boundary Approximate Parcel Boundaries FIGURE 2 Property Boundary Diagram Project Number: W. Grand River Avenue & 303 Abbot Road, East Lansing, Michigan Diagram Created By: RD Date: 8/9/2018 Aerial Image 10/13/2016 Albert Avenue Lot 4 ALBERT AVENUE ABBOT ROAD 140 W. Grand River Avenue W. Grand River Avenue ALBERT AVENUE 303 Abbot Road W. Grand River Avenue W. GRAND RIVER AVENUE EVERGREEN AVENUE 136 W. Grand River Avenue W. Grand River Avenue W. Grand River Avenue

19

20 ALBERT AVENUE B110 B102 B101 B108 B109 FIGURE 4 SOIL ANALYTICAL RESULTS IN EXCEEDANCE OF PART 201 MDEQ GRCC PROJECT NUMBER: W. GRAND RIVER AVENUE & 303 ABBOT ROAD EAST LANSING, MICHIGAN DIAGRAM CREATED BY: AMS DATE: 11/10/2016 ABBOT ROAD Approximate Boring/Sample Locations Approximate Soil Gas Sample Locations Approximate Facilty Boundary Other Property Boundaries 303 Abbot Road W. Grand River Avenue SG-3 SG-4 EVERGREEN AVENUE 4-1 (9/15/16) Constituent g/kg Approximate Facility Boundary Copper Mercury 110, W. GRAND RIVER AVENUE Silver 5,640 Zinc 185,000

21 ALBERT AVENUE B105 B103 B104 FIGURE 5 SOIL ANALYTICAL RESULTS IN EXCEEDANCE OF PART 201 MDEQ GRCC PROJECT NUMBER: W. GRAND RIVER AVENUE & ADJACENT PROPERTIES EAST LANSING, MICHIGAN DIAGRAM CREATED BY: AMS DATE: 11/10/2016 EVERGREEN AVENUE SG W. Grand River SG-2 W. GRAND RIVER AVENUE 1-2 (9/15/16) Constituent g/kg Barium Lead 477, ,000 Mercury 149 Zinc 915,000 B107 B (9/15/16) Constituent g/kg Mercury W. Grand River W. Grand River W. Grand River W. Grand River Approximate Boring/Sample Locations Approximate Soil Gas Sample Locations Approximate Facility Boundary Other Property Boundaries

22 FIGURE 7

23 TABLES Table 1: Tax Increment Revenue Capture Estimates Table 2: Tax Increment Revenue Reimbursement Allocation Table

24 Table 1 Tax Increment Revenue Capture Estimates 100 Grand River LLC and 341 Evergreen LLC East Lansing, MI Plan Year Initial Taxable Value (TV) $ 839,489 $ 839,489 $ 839,489 $ 839,489 $ 839,489 $ 839,489 $ 839,489 $ 839,489 $ 839,489 $ 839,489 Projected Annual Increase in TV 1% 1% 1% 1% 1% Projected TV $ 3,500,000 $ 8,000,000 $ 13,000,000 $ 15,481,500 $ 15,636,315 $ 15,792,678 $ 15,950,605 $ 16,110,111 $ 16,271,212 Total Captured TV $ - $ 2,660,511 $ 7,160,511 $ 12,160,511 $ 14,642,011 $ 14,796,826 $ 14,953,189 $ 15,111,116 $ 15,270,622 $ 4,525,025 Annual TIF Revenue by Taxing Jurisdiction Millage Rate TOTALS State Capture School Operating $ 47,835 $ 128,742 $ 218,640 $ 263,256 $ 266,040 $ 268,851 $ 271,690 $ 274,558 $ 81,358 $ 1,820,970 State Education Tax (SET) $ 15,963 $ 42,963 $ 72,963 $ 87,852 $ 88,781 $ 89,719 $ 90,667 $ 91,624 $ 27,150 $ 607,682 Local Capture State Millage: % City Operating $ 33,353 $ 89,766 $ 152,447 $ 183,555 $ 185,496 $ 187,456 $ 189,436 $ 191,436 $ 56,727 $ 1,269,670 City Solid Waste/Recycling $ 4,855 $ 13,068 $ 22,193 $ 26,722 $ 27,004 $ 27,290 $ 27,578 $ 27,869 $ 8,258 $ 184,837 City Library $ 5,305 $ 14,278 $ 24,248 $ 29,196 $ 29,505 $ 29,817 $ 30,132 $ 30,450 $ 9,023 $ 201,953 Lansing Community College (LCC) $ 10,129 $ 27,261 $ 46,297 $ 55,745 $ 56,334 $ 56,930 $ 57,531 $ 58,138 $ 17,228 $ 385,594 East Lansing Public Schools - Building & Site $ 3,397 $ 9,144 $ 15,529 $ 18,698 $ 18,896 $ 19,095 $ 19,297 $ 19,501 $ 5,778 $ 129,335 Intermediate School District (ISD) Operating $ 532 $ 1,432 $ 2,432 $ 2,928 $ 2,959 $ 2,991 $ 3,022 $ 3,054 $ 905 $ 20,256 ISD Special Education $ 11,989 $ 32,267 $ 54,798 $ 65,980 $ 66,677 $ 67,382 $ 68,094 $ 68,812 $ 20,391 $ 456,389 ISD Vocational Education $ 3,439 $ 9,255 $ 15,717 $ 18,925 $ 19,125 $ 19,327 $ 19,531 $ 19,737 $ 5,849 $ 130,905 County Operating - Summer $ 18,091 $ 48,691 $ 82,691 $ 99,566 $ 100,618 $ 101,682 $ 102,756 $ 103,840 $ 30,770 $ 688,706 County Operating - Winter $ 9,817 $ 26,422 $ 44,872 $ 54,029 $ 54,600 $ 55,177 $ 55,760 $ 56,349 $ 16,697 $ 373,724 Capital Region Airport Authority (CRAA) $ 1,860 $ 5,005 $ 8,500 $ 10,235 $ 10,343 $ 10,452 $ 10,563 $ 10,674 $ 3,163 $ 70,795 Capital Area Transportation Authority (CATA) $ 8,000 $ 21,532 $ 36,567 $ 44,029 $ 44,494 $ 44,964 $ 45,439 $ 45,919 $ 13,607 $ 304,550 Local Millage: % $ 6,645,367 Total Millage: % Non-Capturable Millages - New Tax Revenue City Debt $ 2,053 $ 5,524 $ 9,382 $ 11,296 $ 11,416 $ 11,536 $ 11,658 $ 11,781 $ 3,491 $ 78,138 Downtown Development Authority $ 4,525 $ 12,178 $ 20,681 $ 24,902 $ 25,165 $ 25,431 $ 25,699 $ 25,971 $ 7,696 $ 172,247 East Lansing Public Schools - Debt $ 18,624 $ 50,124 $ 85,124 $ 102,494 $ 103,578 $ 104,672 $ 105,778 $ 106,894 $ 31,675 $ 708,962 Cumulative Debt Millage $ 25,201 $ 93,027 $ 208,213 $ 346,906 $ 487,064 $ 628,704 $ 771,839 $ 916,486 $ 959,347 $ 959,347 $ 7,604,714 1 of 1

25 Table 2 Tax Increment Revenue Reimbursement Allocation Table 100 Grand River LLC and 341 Evergreen LLC East Lansing, MI Taxes - Proportionality Eligible Expenses - Proportionality Administration Costs, Loan Funds & New Revenue Tax Ratio Millage Percentage State Local Total Percentage Non -Capturable Millages $ 959,347 State Tax % MSF $ 1,997,842 $ 3,602,750 $ 5,600, % State Brownfield Redevelopment Fund $ 303,841 Local Tax % MDEQ $ 126,968 $ 228,965 $ 355, % BRA Administrative Costs $ 135,000 Total % Total $ 2,124,811 $ 3,831,715 $ 5,956, % DDA Capture $ 250, TOTALS Available Tax Increment Revenue (TIR) Total State Tax Capture Available $ - $ 63,798 $ 171,705 $ 291,603 $ 351,108 $ 354,820 $ 358,570 $ 362,357 $ 366,182 $ 108,508 $ - $ - $ - Capture for State Brownfield Redevelopment Fund (3 mills of SET) (25-Yrs) $ - $ 7,982 $ 21,482 $ 36,482 $ 43,926 $ 44,390 $ 44,860 $ 45,333 $ 45,812 $ 13,575 $ - $ - $ - $ 303,841 State TIR Available for Reimbursement to Developer $ - $ 55,816 $ 150,224 $ 255,121 $ 307,182 $ 310,430 $ 313,710 $ 317,024 $ 320,370 $ 94,933 $ - $ - $ - Total Local Tax Capture Available $ - $ 110,768 $ 298,121 $ 506,292 $ 609,607 $ 616,053 $ 622,563 $ 629,138 $ 635,779 $ 188,395 $ - $ - $ - Downtown Development Authority - Interlocal Agreement $ - $ 7,500 $ 21,500 $ 37,000 $ 44,500 $ 45,000 $ 45,500 $ 46,000 $ 3,000 $ - $ - $ - $ - $ 250,000 Capture for BRA Administrative Costs $ - $ 15,000 $ 15,000 $ 15,000 $ 15,000 $ 15,000 $ 15,000 $ 15,000 $ 15,000 $ 15,000 $ - $ - $ - $ 135,000 Local TIR Available for Reimbursement to Developer $ - $ 88,268 $ 261,621 $ 454,292 $ 550,107 $ 556,053 $ 562,063 $ 568,138 $ 617,779 $ 173,395 $ - $ - $ - Total State & Local TIR Available for Reimbursement to Developer $ - $ 144,084 $ 411,845 $ 709,413 $ 857,289 $ 866,483 $ 875,773 $ 885,161 $ 938,149 $ 268,328 $ - $ - $ - Reimbursement to Developer MSF Non-Environmental Activities State Tax Reimbursement $ - $ 52,481 $ 141,247 $ 239,877 $ 288,826 $ 291,880 $ 294,965 $ 298,080 $ 301,226 $ 89,260 $ - $ - $ - $ 1,997,842 Local Tax Reimbursement $ - $ 82,994 $ 245,988 $ 427,146 $ 517,235 $ 522,826 $ 528,476 $ 534,189 $ 580,863 $ 163,034 $ - $ - $ - $ 3,602,750 MDEQ Environmental Activities State Tax Reimbursement $ - $ 3,335 $ 8,977 $ 15,245 $ 18,356 $ 18,550 $ 18,746 $ 18,944 $ 19,144 $ 5,673 $ - $ - $ - $ 126,968 Local Tax Reimbursement $ - $ 5,274 $ 15,633 $ 27,146 $ 32,872 $ 33,227 $ 33,586 $ 33,949 $ 36,915 $ 10,361 $ - $ - $ - $ 228,965 TOTAL ANNUAL DEVELOPER REIMBURSEMENT $ - $ 144,084 $ 411,845 $ 709,413 $ 857,289 $ 866,483 $ 875,773 $ 885,161 $ 938,149 $ 268,328 $ - $ - $ - Total Remaining Reimbursement $ 5,956,526 $ 5,812,442 $ 5,400,596 $ 4,691,183 $ 3,833,894 $ 2,967,411 $ 2,091,638 $ 1,206,477 $ 268,328 $ 0 $ 0 $ 0 $ 0 $ 6,645,367 1 of 1

26 ATTACHMENT A Legal Description of the Property

27 ATTACHMENT A Legal Description of the Property W. Grand River Avenue and 303 Abbot Road East Lansing, Michigan Address/Tax ID Legal Description* 100 W Grand River Avenue W Grand River Avenue W Grand River Avenue W Grand River Avenue W Grand River Avenue W Grand River Avenue LOTS 21 AND 22, ALSO S 22' OF LOT 23 OAKWOOD PART OF LOT 14-COM AT SE COR OF LOT 14-W'LY ALONG N LINE OF GD RIVER AVE 231/2 FT -N'LY AT RT ANGLES TO GD RIVER AVE 90 FT E'LY PLL TO GD RIVER AVE TO EVERGREEN AVE-S'LY ALONG EVERGREEN AVE. TO BEG OAKWOOD PART OF LOT 14-COM. 231/2 FT. NW OF SE COR. OF LOT 14-NE AT RT ANG TO GD RIVER AVE 90 FT-NW PLL.TO GD. RIVER AVE. 211/2 FT- SW AT RT ANG TO GD RIVER AVE 90 FT SE ALONG N. LINE OF GR.RIVER AVE. 211/2 FT. TO BEG OAKWOOD PART OF LOT 14-COM. 45 FT. NW OF SE COR OF LOT 14-NE AT RT ANG TO GD RIVER AVE 90 FT. NW PLL. TO GD. RIVER AVE. 211/2 FT - SW AT RT ANG TO GD RIVER AVE 90 FT SE ALONG N. LINE OF GD. RIVER AVE. 211/2 FT. TO BEG. OAKWOOD COM AT THE SE COR OF LOT 14 OAKWOOD PART OF THE NE 1/4 OF SEC 13 CITY OF EAST LANSING TH W'LY PLL WITH GRAND RIVER AVE 66.5 FT TO POB TH CONT W'LY PLL WITH GRAND RIVER AVE 43 FT TH N'LY PLL WITH E LOT LN OF LOT 13 OAKWOOD 90 FT TH W'LY PLL WITH GRAND RIVER AVE 22.5FT TH N'LY PLL WITH W LOT LN OF LOT 13 OAKWOOD 75 FT THE'LY PLL WITH GRAND RIVER AVE FT TH S'LY ALONG THE W'LY LN OF EVERGREEN AVE TO A PT FT N OF THE SE COR OF LOT 14 OAKWOOD TH W'LY PLL TO GRAND RIVER AVE 58.5 FT M OR L TH S'LY PLL WITH W'LY LOT LN OF LOT 14 OAKWOOD 90 FT TO POB PART OF LOT 13-COM. 1091/2 FT NW OF SE COR OF LOT 14 -NE AT RT ANG TO SAID GRAND RIVER AVE. 90 FT-NW PLL TOGD RIVER AVE 221/2 FT-SW AT RT ANG TO SAID GRAND RIVER AVE 90 FT SE ALONG N.LINE OF GD RIVER AVE. TO BEG. OAKWOOD 303 Abbot Road N 44 FT OF LOT 23 & S 16 FT OF LOT 24 OAKWOOD * Per City of East Lansing Assessing Records 1

28 ATTACHMENT B Summary of Environmental Conditions

29 ATTACHMENT B Summary of Known Environmental Conditions W. Grand River Avenue and 303 Abbot Road East Lansing, Michigan The parcel located at 100 W. Grand River Avenue contained a residential house from at least 1906 to By 1927 the dwelling was razed, and a four-story commercial building and a former northadjoining building (the Abbot Building ) were constructed. The Abbot building was razed in 1985, and converted into a parking-lot. This parcel has been used for a bank, State Theater, retail, salons, photography studios, commercial offices, drug store, dry cleaning, printing, and residential purposes. The four-story commercial building (vacant since at least 2004) was demolished in This parcel is currently vacant. The parcel located at W. Grand River Avenue contained a residential house and an outbuilding from at least 1906 until The buildings were razed in 1917, and a two-story commercial building was constructed. Sometime between 1913 and 1926 a residential house (215 Evergreen Avenue) was constructed in the north portion of this parcel, and was razed prior to By 1951 a residential house (211 Evergreen Avenue) was built north of the commercial building on this parcel; the dwelling was converted into a store by 1953, and razed by This parcel was used for commercial offices, retail, multiple restaurants, dance and fitness studios, dry cleaning, and residential purposes. The building (vacant since at least 2010) was demolished in The parcel is currently vacant. The parcel located at 303 Abbot Road contained a residential dwelling from at least 1906 through approximately The residence was demolished circa 1938, at which time a two-story commercial building was constructed on the Property. From 1938 until 2007, the parcel was used for various commercial operations, including multiple banks and a multitude of corporate offices. The building remained vacant from 2007 until its demolition in The former buildings at W. Grand River Avenue contained asbestos containing building materials (e.g. pipe insulation, boiler wrap insulation, cement board paneling, floor tile, roofing and roof flashing, roofing tar and fabric, fire doors, mastic, and building caulking) that required abatement prior to demolition. In 2008, PM conducted a Phase II ESA within the right-of-way Albert Avenue. The investigation identified heavy metals (i.e. arsenic, selenium), polynuclear nuclear aromatic hydrocarbons (PAHs) and volatile organic compounds (VOCs) in shallow soil samples within adjacent road right-of-ways that are also within the boundary of the Property area. Concentrations within this area were above the residential generic cleanup criteria established under Part 201 of Michigan s Natural Resources and Environmental Protection Act (NREPA), P.A. 451, as amended. In 2016, Triterra conducted Phase II ESAs at W. Grand River Avenue. The investigation identified heavy metals (i.e. arsenic, barium, copper, lead, mercury, silver, and zinc) at 100 W.

30 Grand River Avenue, and 136 W. Grand River Avenue in subsurface soils above the residential generic cleanup criteria established under Part 201. Environmental impact at the Project area is believed to be from urban fill and the historical use of the subject parcels. The following known environmental assessments and hazardous material surveys were conducted to evaluate current conditions of the Property: Phase II Environmental Site Assessment Letter Report, Northwest corner of Abbot and Grand River Avenue, East Lansing, dated April 10, 2008 prepared by PM Environmental, Inc. (PM); Phase II Environmental Site Assessment Letter Report, Northwest corner of Abbot Road and Albert Avenue, East Lansing, dated June 27, 2008 prepared by PM; Asbestos-Containing Materials & Hazardous Materials Inspection, W. Grand River Avenue, East Lansing, dated July 19, 2016, prepared by Triterra; Asbestos-Containing Materials & Hazardous Materials Inspection, 100 W. Grand River Avenue, East Lansing, dated July 26, 2016, prepared by Triterra; Phase I ESA, W. Grand River Avenue, East Lansing, dated August 25, 2016, prepared by Triterra; Baseline Environmental Assessment (including a Phase II investigation), 100 W. Grand River Avenue, East Lansing, dated August 25, 2016, prepared by Triterra; Baseline Environmental Assessment (including a Phase II investigation), 136 W. Grand River Avenue, East Lansing, dated August 25, 2016, prepared by Triterra;