BROWNFIELD PLAN # W. Grand River Avenue, 303 Abbot Road, 314, 328, 334, 340 and 341 Evergreen Avenue East Lansing, Michigan 48823

Transcription

1 EAST LANSING BROWNFIELD REDEVELOPMENT AUTHORITY BROWNFIELD PLAN #23 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: December 21, 2016 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 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: Property Diagram (Soloman Cordwell Buenz) 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 Analytical Results Exceeding of MDEQ GRCC 341 Evergreen Avenue Figure 7: Soil Boring Map with Analytical Results Albert Avenue (PM Environmental) Figure 8: Soil Boring Map with Analytical Results Evergreen Avenue (PM Environmental) TABLES Table 1: Brownfield Eligible Activities Table 2: Schedule of Estimated Tax Increment Revenue ATTACHMENTS Attachment A: Legal Descriptions of the Property Attachment B: Summary of Known Environmental Conditions Attachment C: Affidavit of Function Obsolescence i

3 Brownfield Plan #23 December 21, PROJECT SUMMARY Project Name: Developer: Property Location: Parcel Information: Type of Eligible Property: Project Description: 100 Grand River LLC and 341 Evergreen LLC East Lansing, Michigan The property consists of twelve (12) parcels; Parcel IDs , , , , , , , , , , , and Facility, Functionally Obsolete 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 12-story hotel and apartment building located at the northwest corner of West Grand River Avenue and Abbot Road. The proposed structure will include 150 guestrooms and meeting space, ground floor retail, 177 mixed market residential units and accessory basement parking. The proposed structure includes a plaza at the corner of West Grand River and Abbot Road for the benefit of building tenants, customers and the general public. A 4-story, 52 unit owner-occupied residential building at the proposed extension of Albert Avenue at the location of the former Evergreen Arms Apartments. A 3-story, 12 unit owner-occupied residential building adjacent to the new parking Garage. 2

4 Brownfield Plan #23 December 21, 2016 A 5-level, 425 space parking garage located immediately adjacent to the 3 and 4 story owneroccupied buildings and across Albert Avenue from the mixed use (hotel, apartment & retail) building to accommodate building tenants, customers and the general public. Relocation and construction of new roadways, public way improvements, utilities, etc. 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: Property and Building Improvements Land Costs: $10,146,000 Hard Costs of Construction: $109,895,460 Soft Costs: $27,950,745 TOTAL INVESTMENT: $147,992,205 Estimated at $147,992,205 of which $24,987,463 (or 16.88%) is currently proposed for Brownfield Reimbursement. Estimated Job Creation/Retention: The redevelopment is anticipated to generate 120 new fulltime equivalent jobs. In addition, this redevelopment will result in the creation/retention of 100 to 150 temporary construction related jobs. Duration of Plan: 23 years (starting in 2018). Developer s Reimbursable Costs: $24,987,463 3

5 Brownfield Plan #23 December 21, 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 and 341 Evergreen LLC (collectively referred to as the Developer ) for the costs of eligible activities required to redevelop the eligible property located at W. Grand River Avenue, 303 Abbot Road, in the City of East Lansing, Michigan, (collectively referred to as the Property ). Any proposed redevelopment of the Property will only be economically viable with the support and approval of the brownfield redevelopment incentives described herein. 4

6 Brownfield Plan #23 December 21, ELIGIBLE PROPERTY INFORMATION This Brownfield Plan is presented to support the Developer in the redevelopment of 12 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 and Functionally Obsolete 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 Evergreen Right-of-Way N/A Facility 314 Evergreen Avenue Adjacent and Contiguous 328 Evergreen Avenue Adjacent and Contiguous 334 Evergreen Avenue Adjacent and Contiguous 340 Evergreen Avenue Adjacent and Contiguous 341 Evergreen Avenue Facility The Property consists of 2.92 acres of land with a mix of developed and vacant parcels. The parcels along West Grand River include 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 have been vacant and/or underutilized for over a decade. The former bank building located at 303 Abbot Road was demolished by the East Lansing Downtown Development Authority (DDA) in August The parcels located at 314 through 340 Evergreen Avenue include a mix of residential and commercial buildings and are all currently occupied. The former Evergreen Arms Apartment buildings at 341 Evergreen Avenue were demolished by the Developer in July of 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. 5

7 Brownfield Plan #23 December 21, 2016 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 under MCL (k); (c) the parcels located at 100 and 136 W. Grand River Avenue and 341 Evergreen 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 (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 and Attachment C, Affidavit of Functional Obsolescence and Attachment D Letter of Blighted Conditions. Figures depicting environmental impact are provided as Figure 4 through 8. 6

8 Brownfield Plan #23 December 21, 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, two low-rise residential buildings and a parking structure. The Mixed-use Development Project includes a 12-story hotel and apartment building located at the northwest corner of West Grand River Avenue and Abbot Road. The proposed structure will include 150 guestrooms, meeting space, ground floor retail, 177 mixed market residential units, ballroom and rooftop restaurant/lounge, office space and accessory underground parking. The proposed structure includes a plaza at the corner of West Grand River and Abbot Road for the benefit of building tenants, customers and the general public. The proposed Project includes a 4-story, 52 unit owner-occupied building at the proposed extension of Albert Avenue at the location of the former Evergreen Arms Apartments and a 3-story, 12 unit owner-occupied building adjacent to the new parking Garage. A 5-story, 425 space parking garage is proposed immediately adjacent to the 3 and 4 story owner-occupied buildings and across Albert Avenue from the mixed-use (hotel, apartment & retail) building to accommodate building tenants, customers and the general public. 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 $147,992,205 including $137,846,205 in hard and soft costs for construction. The development will result in the complete redevelopment of deteriorating, functionally obsolete and 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. This redevelopment is projected to create 120 new, full time equivalent jobs and 100 to 150 temporary construction jobs. 7

9 Brownfield Plan #23 December 21, 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, the current 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 building has been vacant since at least 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 the current 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 has been used for commercial offices, retail, multiple restaurants, dance and fitness studios, dry cleaning, and residential purposes. The building has been vacant since at least 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 parcel located at 341 Evergreen contained two residential dwellings and two detached, single-car garages/ sheds from at least 1926 until they were razed sometime prior to In , two apartment buildings were constructed on the Property. The buildings were razed in July The buildings at W. Grand River Avenue contain 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 will require abatement prior to interior demolition and renovation. The presence of contaminants in subsurface soils at levels greater than the MDEQ Part 201 residential generic cleanup criteria is documented at 100 W. Grand River Avenue, 136 W. Grand River Avenue, 341 Evergreen 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

10 Brownfield Plan #23 December 21, 2016 Additionally, on April 18, 2008, the City of East Lansing Assessing Department formally determined the parcel located at 100 W. Grand River Avenue is functionally obsolete as the term is defined in Section 2(s), of Act 381. The Assessing Department determined the building suffers functional obsolescence and should be razed from the site for future development. The Affidavit of Functional Obsolescence is provided in Attachment C. 9

11 Brownfield Plan #23 December 21, 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 that are intended to be carried out at the Property are considered eligible activities as defined by Sec 2 of Act 381. Brownfield eligible activities include Baseline Environmental Assessment activities, 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 $24,987,463. The eligible activities are summarized below: STATE AND LOCAL ELIGIBLE ACTIVITIES Eligible Environmental Activities Baseline Environmental Assessment Activities... $35,000 Due Care Activities... $1,046,000 Total Environmental Costs... $1,081,000 Eligible Non-Environmental Activities (MSF) Asbestos Activities... $340,000 Demolition... $1,143,500 Site Preparation... $4,027,547 Infrastructure Improvements... $7,959,277 Total Non-Environmental Costs... $13,470,324 Total Environmental and Non-Environmental Costs... $14,551,324 10

12 Brownfield Plan #23 December 21, 2016 Contingency (15%)*... $2,177,449 Brownfield Plan / Act 381 Work Plan Preparation... $18,000 Interest (5%, simple)... $8,240,690 TOTAL DEVELOPER ELIGIBLE ACTIVITIES... $24,987,463 * Contingency calculation excludes costs for BEA, Brownfield Plan and Act 381 Work Plan activities. The costs listed above are further detailed by Project structure/component in Table 1, attached. The costs listed above are estimated and may increase or decrease depending on the nature and extent of unknown conditions encountered on the Property. The actual cost of those eligible activities encompassed by this Plan that will qualify for reimbursement from tax increment revenues captured by the ELBRA shall be governed by the terms of a Reimbursement Agreement. No costs of eligible activities will be qualified for reimbursement except to the extent permitted in accordance with the terms and conditions of the Reimbursement Agreement and Section 2 of Act 381 of 1996, as amended (MCL ). The Reimbursement Agreement and this Plan will dictate the total cost of eligible activities subject to payment. As long as the total cost limit described in this Plan is not exceeded, line item costs of eligible activities may be adjusted after the date this Plan is approved by the City of East Lansing City Council. 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 2016 taxable value of the Property was $1,748,996 which is the initial taxable value for this Plan. Taxable values were obtained from the City of East Lansing on November 7, A summary of initial taxable values is presented in the table below: 11

13 Brownfield Plan #23 December 21, Taxable Values Address Tax ID Taxable Value 100 W Grand River Avenue $437, W Grand River Avenue $39, W Grand River Avenue $43, W Grand River Avenue $43, W Grand River Avenue $225, W Grand River Avenue $45, Abbot Road $0 314 Evergreen Avenue $462, Evergreen Avenue $76, Evergreen Avenue $126, Evergreen Avenue $99, Evergreen Avenue $149,707 TOTAL $1,748,996 The projected taxable value is phased over 4 years with a final taxable value of $18,557,000 in This projected future taxable value is based on an estimate provided by 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 2018 through 2040 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 $26,466,266. Impact to specific taxing jurisdictions is presented in Table 2, Schedule of Tax Increment Revenue. Tax capture for ELBRA administration of the Plan is estimated at $345,000 and tax capture for deposits into the State Brownfield Revolving Fund is estimated at $1,133,804. 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. 12

14 Brownfield Plan #23 December 21, 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 23 years total tax capture after the first year of tax capture anticipated as 2018 under this Plan. In no event shall the duration of the Plan exceed 35 years following the date of the resolution approving the Plan, nor shall the duration of the tax capture exceed the lesser of the period authorized under subsection (4) and (5) of Section 13 of Act 381 or 30 years. Further, in no event shall the beginning date of the capture of tax increment revenues be later than five years after the date of the resolution approving the Plan. 13

15 Brownfield Plan #23 December 21, Legal Description, Property Map, Property Characteristics and Personal Property The boundary subject to this Brownfield Plan consists of 12 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 The parcels located at 328, 334, 340 and 344 Evergreen are occupied for residential use and the parcel located at 314 Evergreen is occupied for both residential and commercial use. All parcels are rental properties owned by the City of East Lansing DDA. 314 and 334 Evergreen will be occupied through at least May 2018 at which time the leases expire. The commercial space of 314 Evergreen has a month to month lease. 328, 340 and 344 Evergreen will be occupied through at least August of 2018 at which time the leases will expire. All residents of the property are transient residents that moved into the property subsequent to purchase by the DDA with the understanding that the property was purchased for redevelopment. As such, the current residents will not meet the definition of displaced persons. 6.8 Plan for Relocation of Displaced Persons Persons occupying residential parcels located along Evergreen Avenue will be notified of expiration of leases in accordance with existing lease agreements. All residents of the property are transient residents that moved into the property subsequent to purchase by the DDA with the understanding that the property was purchased for redevelopment. As such, the current residents will not meet the definition of displaced persons. The following provision is contained in all leases: ALTERATION OF LEASE BY LESSOR: Lessees understand and agree that the leased Premises has been acquired for redevelopment by the East Lansing Downtown Development Authority (DDA) and the lease may be terminated upon 90 days written notice to vacate if the DDA determines that the property is needed for the project and the leased premises will not be available for lease after the expiration of this lease, that this lease may not be renewed or extended from month-to-month beyond the expiration of the initial term described in paragraph one and that Lessee will not be eligible 14

16 Brownfield Plan #23 December 21, 2016 for any moving expenses or relocation benefits at the end of the lease. Lessee also acknowledges and agrees that access to the leased Premises from Evergreen Street may be limited from time to time on or after September 2015, due to construction activities in connection with the Park District Project and that vehicular access and parking on Evergreen Street may be restricted. 6.9 Provisions for Relocation Costs No persons will be displaced outside of the terms of existing lease agreements and, therefore, no relocation costs will be incurred. A provision for relocation costs is not applicable and is not needed for this Plan Strategy for Compliance with Michigan s Relocation Assistance Law All residents of the property are transient residents that moved into the property subsequent to purchase by the DDA with the understanding that the property was purchased for redevelopment. As such, the current residents will not meet the definition of displaced persons. The following provision is contained in all leases: ALTERATION OF LEASE BY LESSOR: Lessees understand and agree that the leased Premises has been acquired for redevelopment by the East Lansing Downtown Development Authority (DDA) and the lease may be terminated upon 90 days written notice to vacate if the DDA determines that the property is needed for the project and the leased premises will not be available for lease after the expiration of this lease, that this lease may not be renewed or extended from month-to-month beyond the expiration of the initial term described in paragraph one and that Lessee will not be eligible for any moving expenses or relocation benefits at the end of the lease. Lessee also acknowledges and agrees that access to the leased Premises from Evergreen Street may be limited from time to time on or after September 2015, due to construction activities in connection with the Park District Project and that vehicular access and parking on Evergreen Street may be restricted. Therefore, no relocation assistance strategy is needed for this Plan 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. 15

17 Brownfield Plan #23 December 21, 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, Evergreen Avenue) by the Michigan Department of Economic Development (MEDC) in May 2011; MEDC Project No

18 FIGURES Figure 1: Property Location Map Figure 2: Property Boundary Diagram Figure 3: Property Diagram (Soloman Cordwell Buenz) 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 Analytical Results Exceeding of MDEQ GRCC 341 Evergreen Avenue Figure 7: Soil Boring Map with Analytical Results Albert Avenue (PM Environmental) Figure 8: Soil Boring Map with Analytical Results Evergreen Avenue (PM Environmental)

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

20 Evergreen Avenue Right of of Way Way ABBOT ROAD VALLEY COURT COURT 341 Evergreen Avenue Evergreen Avenue Right of of Way Way 340 Evergreen Avenue Evergreen Avenue Approximate Property Boundary Parcel Boundaries Diagram Created By: IOS Date: 11/8/2016 EVERGREEN AVENUE FIGURE 2 Property Boundary Diagram Project Number: , 328, 334, 340, 341 Evergreen Avenue East Lansing, MI Evergreen Avenue Evergreen Avenue ALBERT AVENUE 303 Abbot Road W. GRAND RIVER AVENUE 140 W. Grand River Avenue W. Grand River Avenue Avenue W. Grand River Avenue Avenue W. Grand River Avenue Avenue W. Grand River Avenue W. Grand River Avenue

21 VALLEY COURT PARK VALLEY COURT PARK EXISTING VALLEY CT. R.O.W. EXISTING VALLEY CT. R.O.W. ALBERT AVENUE ALBERT AVENUE EVERGREEN AVE. EVERGREEN AVE. ALBERT AVENUE ALBERT AVENUE ABBOT ROAD ABBOT ROAD W. GRAND RIVER AVENUE W. GRAND RIVER AVENUE 2016 Solomon Cordwell Buenz 2016 Solomon 2016 Cordwell Solomon Buenz Cordwell Buenz PROPERTY DIAGRAM PROPERTY AREA DIAGRAM W.GRAND 100 RIVER W. PROPERTY GRAND PROPERTY & RIVER AREA EVERGREEN, AREA AVE. DIAGRAM EAST LANSING, EAST LANSING, MI MI 100 GRAND RIVER 100 LLC GRAND / EVERGREEN RIVER W. GRAND LLC. RIVER & LLC 341 EVERGREEN AVE. EAST LANSING, MI 100 GRAND RIVER LLC. & 341 EVERGREEN 08/18/ ' 64' 09/15/ /18/ ' 8' 64' 16' A-004

22 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

23 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

24 B5 3-5 (8/15/16) Constituent g/kg Selenium 850 B (8/15/16) Constituent g/kg Arsenic 5,200 B (8/15/16) Constituent g/kg Arsenic 5,500 Selenium 410 B6 B5 B1 B4 341 Evergreen Avenue B2 B3 EVERGREEN AVENUE Approximate Facility Boundary FIGURE 6 BORING LOCATIONS & ANALYTICAL RESULTS EXCEEDING MDEQ PART 201 GRCC PROJECT NUMBER: EVERGREEN AVENUE EAST LANSING, MICHIGAN DIAGRAM CREATED BY: RD DATE: 11/10/2016

25 FIGURE 7

26 FIGURE 8

27 TABLES Table 1: Brownfield Eligible Activities Table 2: Schedule Tax Increment Revenue

28 Table 1 Brownfield Eligible Activities 100 Grand River LLC and 341 Evergreen LLC East Lansing, MI As of December 21, 2016 STATE AND LOCAL ONLY ELIGIBLE ACTIVITIES ENVIRONMENTAL Off-Site Improvements W. Grand River Building Evergreen Parking Garage Building (DDA) 341 Evergreen Building Baseline Environmental Assessment Activities $ - $ 15,000 $ 10,000 $ 10,000 $ 35, % $ 11, % $ 23,006 Due Care Activities $ - $ 896,000 $ - $ 150,000 $ 1,046, % $ 358, % $ 687,536 STATE AND LOCAL ELIGIBLE ACTIVITIES NON-ENVIRONMENTAL TOTAL COSTS ENVIRONMENTAL ACTIVITIES TOTAL $ - $ 911,000 $ 10,000 $ 160,000 $ 1,081,000 Asbestos Activities $ - $ 176,200 $ 160,000 $ 3,800 $ 340, % $ 116, % $ 223,482 Demolition Activities $ 363,500 $ 410,000 $ 370,000 $ - $ 1,143, % $ 391, % $ 751,623 Site Preparation Activities $ 50,000 $ 2,598,832 $ 1,215,000 $ 163,715 $ 4,027, % $ 1,380, % $ 2,647,307 Infrastructure Improvements $ 3,880,414 $ 2,185,313 $ 1,893,550 $ - $ 7,959, % $ 2,727, % $ 5,231,633 NON-ENVIRONMENTAL ACTIVITIES TOTAL $ 4,293,914 $ 5,370,345 $ 3,638,550 $ 167,515 $ 13,470,324 ENVIRONMENTAL AND NON-ENVIRONMENTAL ACTIVITIES TOTAL $ 4,293,914 $ 6,281,345 $ 3,648,550 $ 327,515 $ 14,551,324 Contingency (15%) $ 644,087 $ 939,952 $ 545,783 $ 47,627 $ 2,177, % $ 746, % $ 1,431,237 SUB-TOTAL $ 4,938,001 $ 7,221,297 $ 4,194,333 $ 375,142 $ 16,728,773 STATE/SCHOOL INCREMENTAL TAX CAPTURE Brownfield & Act 381 Work Plan Preparation $ 18, % $ 6, % $ 11,831 Interest (5%, simple) $ 8,240, % $ 2,824, % $ 5,416,606 TOTAL (DEVELOPER) ELIGIBLE ACTIVITY COST WITH PLAN COST AND INTEREST $ 24,987,463 $ 8,563,203 $ 16,424,259 BRA Administration Fee $ 345, % $ % $ 345,000 State Brownfield Redevelopment Fund $ 1,448, % $ 1,448, % $ - GRAND TOTAL $ 26,780,974 $ 10,011,714 $ 16,769,259 LOCAL NOTES: These costs and revenue projections should be considered approximate estimates based on expected conditions and available information. It cannot be guaranteed that the costs and revenue projections will not vary from these estimates. Costs for preparation of Baseline Environmental Assessment, Brownfield Plan and Act 381 Work Plan are excluded from contingency calculation. Page 1 of 1

29 1% Table 2 Schedule of Tax Increment Revenue 100 Grand River LLC and 341 Evergreen LLC East Lansing, MI December 21, 2016 Calendar Year Plan Year Initial Taxable Value (TV) $ 1,748,996 $ 1,748,996 $ 1,748,996 $ 1,748,996 $ 1,748,996 $ 1,748,996 $ 1,748,996 $ 1,748,996 $ 1,748,996 $ 1,748,996 $ 1,748,996 $ 1,748,996 $ 1,748,996 $ 1,748,996 $ 1,748,996 $ 1,748,996 $ 1,748,996 $ 1,748,996 Projected Annual Increase in TV 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% Projected TV $ 1,748,996 $ 3,500,000 $ 8,000,000 $ 13,000,000 $ 18,557,000 $ 18,742,570 $ 18,929,996 $ 19,119,296 $ 19,310,489 $ 19,503,593 $ 19,698,629 $ 19,895,616 $ 20,094,572 $ 20,295,518 $ 20,498,473 $ 20,703,458 $ 20,910,492 $ 21,119,597 Total Captured TV $ - $ 1,751,004 $ 6,251,004 $ 11,251,004 $ 16,808,004 $ 16,993,574 $ 17,181,000 $ 17,370,300 $ 17,561,493 $ 17,754,597 $ 17,949,633 $ 18,146,620 $ 18,345,576 $ 18,546,522 $ 18,749,477 $ 18,954,462 $ 19,161,496 $ 19,370,601 Annual TIF Revenue by Taxing Jurisdiction Local Capture Millage Rate City Operating $ - $ 30,799 $ 109,950 $ 197,895 $ 295,638 $ 298,902 $ 302,198 $ 305,528 $ 308,891 $ 312,287 $ 315,718 $ 319,183 $ 322,682 $ 326,217 $ 329,786 $ 333,392 $ 337,033 $ 340,711 City Solid Waste/Recycling $ - $ 3,196 $ 11,408 $ 20,533 $ 30,675 $ 31,013 $ 31,355 $ 31,701 $ 32,050 $ 32,402 $ 32,758 $ 33,118 $ 33,481 $ 33,847 $ 34,218 $ 34,592 $ 34,970 $ 35,351 City Library $ - $ 3,502 $ 12,502 $ 22,502 $ 33,616 $ 33,987 $ 34,362 $ 34,741 $ 35,123 $ 35,509 $ 35,899 $ 36,293 $ 36,691 $ 37,093 $ 37,499 $ 37,909 $ 38,323 $ 38,741 Lansing Community College (LCC) $ - $ 6,666 $ 23,799 $ 42,835 $ 63,991 $ 64,698 $ 65,412 $ 66,132 $ 66,860 $ 67,595 $ 68,338 $ 69,088 $ 69,845 $ 70,610 $ 71,383 $ 72,163 $ 72,952 $ 73,748 East Lansing Public Schools - Building & Site $ - $ 2,252 $ 8,039 $ 14,469 $ 21,615 $ 21,854 $ 22,095 $ 22,338 $ 22,584 $ 22,832 $ 23,083 $ 23,337 $ 23,592 $ 23,851 $ 24,112 $ 24,375 $ 24,642 $ 24,911 Intermediate School District (ISD) Operating $ - $ 332 $ 1,184 $ 2,131 $ 3,183 $ 3,219 $ 3,254 $ 3,290 $ 3,326 $ 3,363 $ 3,400 $ 3,437 $ 3,475 $ 3,513 $ 3,551 $ 3,590 $ 3,629 $ 3,669 ISD Special Education $ - $ 7,890 $ 28,168 $ 50,699 $ 75,740 $ 76,576 $ 77,421 $ 78,274 $ 79,136 $ 80,006 $ 80,885 $ 81,772 $ 82,669 $ 83,574 $ 84,489 $ 85,413 $ 86,346 $ 87,288 ISD Vocational Education $ - $ 2,263 $ 8,079 $ 14,542 $ 21,724 $ 21,964 $ 22,206 $ 22,451 $ 22,698 $ 22,948 $ 23,200 $ 23,455 $ 23,712 $ 23,971 $ 24,234 $ 24,499 $ 24,766 $ 25,037 County Operating $ - $ 11,179 $ 39,908 $ 71,829 $ 107,306 $ 108,490 $ 109,687 $ 110,895 $ 112,116 $ 113,349 $ 114,594 $ 115,852 $ 117,122 $ 118,405 $ 119,700 $ 121,009 $ 122,331 $ 123,666 County - Potter Park Zoo $ - $ 718 $ 2,563 $ 4,613 $ 6,891 $ 6,967 $ 7,044 $ 7,122 $ 7,200 $ 7,279 $ 7,359 $ 7,440 $ 7,522 $ 7,604 $ 7,687 $ 7,771 $ 7,856 $ 7,942 County - Public Transportation $ - $ 210 $ 750 $ 1,350 $ 2,017 $ 2,039 $ 2,062 $ 2,084 $ 2,107 $ 2,131 $ 2,154 $ 2,178 $ 2,201 $ 2,226 $ 2,250 $ 2,275 $ 2,299 $ 2,324 County - Special Transportation $ - $ 840 $ 3,000 $ 5,400 $ 8,068 $ 8,157 $ 8,247 $ 8,338 $ 8,430 $ 8,522 $ 8,616 $ 8,710 $ 8,806 $ 8,902 $ 9,000 $ 9,098 $ 9,198 $ 9,298 County System $ - $ 1,476 $ 5,270 $ 9,486 $ 14,171 $ 14,327 $ 14,485 $ 14,645 $ 14,806 $ 14,969 $ 15,133 $ 15,299 $ 15,467 $ 15,637 $ 15,808 $ 15,981 $ 16,155 $ 16,331 County - Juvenile Justice $ - $ 1,051 $ 3,751 $ 6,751 $ 10,085 $ 10,196 $ 10,309 $ 10,422 $ 10,537 $ 10,653 $ 10,770 $ 10,888 $ 11,007 $ 11,128 $ 11,250 $ 11,373 $ 11,497 $ 11,622 County - Farmland Preservation $ - $ 245 $ 875 $ 1,575 $ 2,353 $ 2,379 $ 2,405 $ 2,432 $ 2,459 $ 2,486 $ 2,513 $ 2,541 $ 2,568 $ 2,597 $ 2,625 $ 2,654 $ 2,683 $ 2,712 County - Health Services $ - $ 613 $ 2,188 $ 3,938 $ 5,883 $ 5,948 $ 6,013 $ 6,080 $ 6,147 $ 6,214 $ 6,282 $ 6,351 $ 6,421 $ 6,491 $ 6,562 $ 6,634 $ 6,707 $ 6,780 County - Parks/Trails $ - $ 876 $ 3,126 $ 5,626 $ 8,404 $ 8,497 $ 8,590 $ 8,685 $ 8,781 $ 8,877 $ 8,975 $ 9,073 $ 9,173 $ 9,273 $ 9,375 $ 9,477 $ 9,581 $ 9,685 Capital Region Airport Authority (CRAA) $ - $ 1,224 $ 4,369 $ 7,864 $ 11,749 $ 11,879 $ 12,010 $ 12,142 $ 12,275 $ 12,410 $ 12,547 $ 12,684 $ 12,824 $ 12,964 $ 13,106 $ 13,249 $ 13,394 $ 13,540 Capital Area Transportation Authority (CATA) $ - $ 5,265 $ 18,797 $ 33,832 $ 50,542 $ 51,100 $ 51,663 $ 52,232 $ 52,807 $ 53,388 $ 53,975 $ 54,567 $ 55,165 $ 55,769 $ 56,380 $ 56,996 $ 57,619 $ 58,247 School Capture School Operating $ - $ 31,518 $ 112,518 $ 202,518 $ 302,544 $ 305,884 $ 309,258 $ 312,665 $ 316,107 $ 319,583 $ 323,093 $ 326,639 $ 330,220 $ 333,837 $ 337,491 $ 341,180 $ 344,907 $ 348,671 State Education Tax (SET) $ - $ 10,506 $ 37,506 $ 67,506 $ 100,848 $ 101,961 $ 103,086 $ 104,222 $ 105,369 $ 106,528 $ 107,698 $ 108,880 $ 110,073 $ 111,279 $ 112,497 $ 113,727 $ 114,969 $ 116,224 Total Capture Available Total Millage Local Tax Capture Available $ - $ 80,596 $ 287,726 $ 517,869 $ 773,651 $ 782,192 $ 790,819 $ 799,532 $ 808,333 $ 817,221 $ 826,198 $ 835,265 $ 844,423 $ 853,672 $ 863,014 $ 872,449 $ 881,979 $ 891,604 Sub-total State Tax Capture Available $ - $ 42,024 $ 150,024 $ 270,024 $ 403,392 $ 407,846 $ 412,344 $ 416,887 $ 421,476 $ 426,110 $ 430,791 $ 435,519 $ 440,294 $ 445,117 $ 449,987 $ 454,907 $ 459,876 $ 464,894 Capture for State Brownfield Redevelopment Fund (3 mills of SET) (25-Yrs) $ - $ 5,253 $ 18,753 $ 33,753 $ 50,424 $ 50,981 $ 51,543 $ 52,111 $ 52,684 $ 53,264 $ 53,849 $ 54,440 $ 55,037 $ 55,640 $ 56,248 $ 56,863 $ 57,484 $ 58,112 State Tax Capture Available $ - $ 36,771 $ 131,271 $ 236,271 $ 352,968 $ 356,865 $ 360,801 $ 364,776 $ 368,791 $ 372,847 $ 376,942 $ 381,079 $ 385,257 $ 389,477 $ 393,739 $ 398,044 $ 402,391 $ 406,783 Total Local & State Tax Capture Available $ - $ 117,368 $ 418,997 $ 754,140 $ 1,126,619 $ 1,139,057 $ 1,151,620 $ 1,164,309 $ 1,177,124 $ 1,190,068 $ 1,203,141 $ 1,216,344 $ 1,229,680 $ 1,243,149 $ 1,256,753 $ 1,270,493 $ 1,284,370 $ 1,298,386 Cumulative Captured Taxes $ - $ 117,368 $ 536,364 $ 1,290,504 $ 2,417,123 $ 3,556,180 $ 4,707,800 $ 5,872,109 $ 7,049,233 $ 8,239,300 $ 9,442,441 $ 10,658,785 $ 11,888,466 $ 13,131,615 $ 14,388,368 $ 15,658,861 $ 16,943,231 $ 18,241,617 Reimbursement of BRA Administration Costs Capture for BRA Administrative Costs $ - $ 15,000 $ 15,000 $ 15,000 $ 15,000 $ 15,000 $ 15,000 $ 15,000 $ 15,000 $ 15,000 $ 15,000 $ 15,000 $ 15,000 $ 15,000 $ 15,000 $ 15,000 $ 15,000 $ 15,000 Capture for BRA Local Site Revolving Loan Fund (LSRRF) $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Cumulative BRA Administrative $ - $ 15,000 $ 30,000 $ 45,000 $ 60,000 $ 75,000 $ 90,000 $ 105,000 $ 120,000 $ 135,000 $ 150,000 $ 165,000 $ 180,000 $ 195,000 $ 210,000 $ 225,000 $ 240,000 $ 255,000 Reimbursement of Remaining Eligible Activities to Developer ($24,987,463) Local/State Annual Total Tax Capture $ - $ 102,368 $ 403,997 $ 739,140 $ 1,111,619 $ 1,124,057 $ 1,136,620 $ 1,149,309 $ 1,162,124 $ 1,175,068 $ 1,188,141 $ 1,201,344 $ 1,214,680 $ 1,228,149 $ 1,241,753 $ 1,255,493 $ 1,269,370 $ 1,283,386 Local/State Remaining Tax Increment Reimbursement $ 24,987,463 $ 24,885,095 $ 24,481,099 $ 23,741,959 $ 22,630,340 $ 21,506,283 $ 20,369,663 $ 19,220,354 $ 18,058,230 $ 16,883,163 $ 15,695,022 $ 14,493,678 $ 13,278,997 $ 12,050,848 $ 10,809,095 $ 9,553,602 $ 8,284,232 $ 7,000,846 Taxes - Proportionality Local Taxes % State Taxes % Total % Debt Millage - Not Captured - New Tax Revenue City Debt $ - $ 1,395 $ 4,980 $ 8,963 $ 13,389 $ 13,537 $ 13,686 $ 13,837 $ 13,989 $ 14,143 $ 14,299 $ 14,456 $ 14,614 $ 14,774 $ 14,936 $ 15,099 $ 15,264 $ 15,431 Downtown Development Authority $ - $ 3,033 $ 10,826 $ 19,486 $ 29,110 $ 29,431 $ 29,756 $ 30,084 $ 30,415 $ 30,749 $ 31,087 $ 31,428 $ 31,773 $ 32,121 $ 32,472 $ 32,827 $ 33,186 $ 33,548 East Lansing Public Schools - Debt $ - $ 9,114 $ 32,536 $ 58,561 $ 87,486 $ 88,452 $ 89,427 $ 90,412 $ 91,408 $ 92,413 $ 93,428 $ 94,453 $ 95,489 $ 96,535 $ 97,591 $ 98,658 $ 99,736 $ 100,824 Cumulative Debt Millage Capture $ - $ 13,541 $ 61,884 $ 148,893 $ 278,878 $ 410,298 $ 543,167 $ 677,500 $ 813,312 $ 950,617 $ 1,089,431 $ 1,229,768 $ 1,371,643 $ 1,515,073 $ 1,660,072 $ 1,806,656 $ 1,954,841 $ 2,104,644 1 of 2

30 1% Table 2 Schedule of Tax Increment Revenue 100 Grand River LLC and 341 Evergreen LLC East Lansing, MI December 21, 2016 Initial Taxable Value (TV) Projected Annual Increase in TV Projected TV Total Captured TV Annual TIF Revenue by Taxing Jurisdiction Local Capture Calendar Year Plan Year Millage Rate City Operating City Solid Waste/Recycling City Library Lansing Community College (LCC) East Lansing Public Schools - Building & Site Intermediate School District (ISD) Operating ISD Special Education ISD Vocational Education County Operating County - Potter Park Zoo County - Public Transportation County - Special Transportation County System County - Juvenile Justice County - Farmland Preservation County - Health Services County - Parks/Trails Capital Region Airport Authority (CRAA) Capital Area Transportation Authority (CATA) School Capture School Operating State Education Tax (SET) Total Capture Available Local Tax Capture Available Sub-total State Tax Capture Available Total Millage Capture for State Brownfield Redevelopment Fund (3 mills of SET) (25-Yrs) State Tax Capture Available Total Local & State Tax Capture Available Cumulative Captured Taxes Reimbursement of BRA Administration Costs Capture for BRA Administrative Costs Capture for BRA Local Site Revolving Loan Fund (LSRRF) Cumulative BRA Administrative Reimbursement of Remaining Eligible Activities to Developer ($24,987,463 Local/State Annual Total Tax Capture Local/State Remaining Tax Increment Reimbursement $ 1,748,996 $ 1,748,996 $ 1,748,996 $ 1,748,996 $ 1,748,996 $ 1,748,996 1% 1% 1% 1% 1% 1% $ 21,330,793 $ 21,544,101 $ 21,759,542 $ 21,977,137 $ 22,196,909 $ 22,418,878 $ 19,581,797 $ 19,795,105 $ 20,010,546 $ 20,228,141 $ 20,447,913 $ 5,724,700 $ 344,426 $ 348,178 $ 351,967 $ 355,795 $ 359,660 $ 100,692 $ 6,647,529 $ 35,737 $ 36,126 $ 36,519 $ 36,916 $ 37,317 $ 10,448 $ 689,731 $ 39,164 $ 39,590 $ 40,021 $ 40,456 $ 40,896 $ 11,449 $ 755,869 $ 74,552 $ 75,364 $ 76,184 $ 77,013 $ 77,849 $ 21,795 $ 1,438,872 $ 25,182 $ 25,457 $ 25,734 $ 26,013 $ 26,296 $ 7,362 $ 486,024 $ 3,709 $ 3,749 $ 3,790 $ 3,831 $ 3,873 $ 1,084 $ 71,581 $ 88,239 $ 89,201 $ 90,172 $ 91,152 $ 92,142 $ 25,797 $ 1,703,049 $ 25,309 $ 25,585 $ 25,864 $ 26,145 $ 26,429 $ 7,399 $ 488,480 $ 125,014 $ 126,376 $ 127,751 $ 129,140 $ 130,544 $ 36,548 $ 2,412,810 $ 8,029 $ 8,116 $ 8,204 $ 8,294 $ 8,384 $ 2,347 $ 154,953 $ 2,350 $ 2,375 $ 2,401 $ 2,427 $ 2,454 $ 687 $ 45,352 $ 9,399 $ 9,502 $ 9,605 $ 9,710 $ 9,815 $ 2,748 $ 181,409 $ 16,509 $ 16,689 $ 16,871 $ 17,054 $ 17,240 $ 4,826 $ 318,637 $ 11,749 $ 11,877 $ 12,006 $ 12,137 $ 12,269 $ 3,435 $ 226,761 $ 2,741 $ 2,771 $ 2,801 $ 2,832 $ 2,863 $ 801 $ 52,911 $ 6,854 $ 6,928 $ 7,004 $ 7,080 $ 7,157 $ 2,004 $ 132,277 $ 9,791 $ 9,898 $ 10,005 $ 10,114 $ 10,224 $ 2,862 $ 188,967 $ 13,688 $ 13,837 $ 13,987 $ 14,139 $ 14,293 $ 4,002 $ 264,176 $ 58,882 $ 59,524 $ 60,172 $ 60,826 $ 61,487 $ 17,214 $ 1,136,449 $ 352,472 $ 356,312 $ 360,190 $ 364,107 $ 368,062 $ 103,045 $ 6,802,822 $ 117,491 $ 118,771 $ 120,063 $ 121,369 $ 122,687 $ 34,348 $ 2,267,607 $ 901,325 $ 911,143 $ 921,059 $ 931,075 $ 941,191 $ 263,500 $ 469,963 $ 475,083 $ 480,253 $ 485,475 $ 490,750 $ 137,393 Total $ 26,466,266 $ 58,745 $ 59,385 $ 60,032 $ 60,684 $ 61,344 $ 17,174 $ 1,133,804 $ 411,218 $ 415,697 $ 420,221 $ 424,791 $ 429,406 $ 120,219 $ 1,312,542 $ 1,326,840 $ 1,341,281 $ 1,355,866 $ 1,370,597 $ 383,719 $ 19,554,159 $ 20,881,000 $ 22,222,281 $ 23,578,147 $ 24,948,744 $ 25,332,463 $ 15,000 $ 15,000 $ 15,000 $ 15,000 $ 15,000 $ 15,000 $ - $ - $ - $ - $ - $ - $ - $ 270,000 $ 285,000 $ 300,000 $ 315,000 $ 330,000 $ 345,000 $ 345,000 $ 1,297,542 $ 1,311,840 $ 1,326,281 $ 1,340,866 $ 1,355,597 $ 368,719 $ 24,987,463 $ 5,703,304 $ 4,391,463 $ 3,065,182 $ 1,724,316 $ 368,719 $ 0 $ 26,466,266 Debt Millage - Not Captured - New Tax Revenue City Debt Downtown Development Authority East Lansing Public Schools - Debt Cumulative Debt Millage Capture $ 15,599 $ 15,769 $ 15,940 $ 16,114 $ 16,289 $ 4,560 $ 301,063 $ 33,914 $ 34,283 $ 34,656 $ 35,033 $ 35,414 $ 9,915 $ 654,545 $ 101,923 $ 103,034 $ 104,155 $ 105,287 $ 106,431 $ 29,797 $ 1,967,149 $ 2,256,080 $ 2,409,165 $ 2,563,917 $ 2,720,351 $ 2,878,485 $ 2,922,757 $ 2,922,757 $ 29,389,023 2 of 2

31 ATTACHMENT A Legal Description of the Property

32 ATTACHMENT A Legal Description of the Property East Lansing, Michigan Address/Tax ID 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 Legal Description* 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 314 Evergreen Avenue LOTS 26 AND 28 OAKWOOD SUB EXC COM AT NW COR OF LOT 28 TH E 100' TH S45' TH W TO EVERGREEN AVE, TH N'LY ALG SAID AVE TO POB SEC 13 T4N, R1W. 328 Evergreen Avenue COM AT THE NW COR OF LOT 28 OF OAKWOOD SUBD TH E 100 FT TH S 45 FT TH W TO EVERGREEN AVE TH N'LY ALONG SAID AVE TO PLACE OF BEG SEC 13 T4NR2W 334 Evergreen Avenue LOT 30 OAKWOOD 340 Evergreen Avenue LOT 32 OAKWOOD 341 Evergreen Avenue THAT PART OF LOTS 17, 18, & 19 LYING N OF A LINE DRAWN DUE W FROM A PT /2 FT S OF NE COR OF LOT 17. OAKWOOD * Per City of East Lansing Assessing Records 1

33 ATTACHMENT B Summary of Environmental Conditions

34 ATTACHMENT C Summary of Known Environmental Conditions 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, the current 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 building has been vacant since at least 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 the current 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 has been used for commercial offices, retail, multiple restaurants, dance and fitness studios, dry cleaning, and residential purposes. The building has been vacant since at least 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 parcel located at 341 Evergreen contained two residential dwellings and two detached, single-car garages/ sheds from at least 1926 until they were razed sometime prior to In , two apartment buildings were constructed on the Property. The buildings were razed in July The buildings at W. Grand River Avenue 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 will require abatement prior to interior demolition and renovation. 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;

35 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 Environmental Site Assessment (ESA), 341 Evergreen Avenue, East Lansing, dated August 22, 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), 341 Evergreen Avenue, East Lansing, dated August 23, 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; The aforementioned asbestos survey identified a significant amount of asbestos containing building materials with the structure located on the Property. ACM documented at the Property included 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 will require abatement prior to interior demolition and renovation In 2008, PM conducted Phase II ESAs at the City Parking Lot #10, within the right-of-way Albert Avenue and at the parking lot and road right-of-way at an between Valley Court and Evergreen 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-ofways 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 and 341 Evergreen Avenue. The investigation identified heavy metals (i.e. arsenic, barium, copper, lead, mercury, silver, and zinc) at 100 W. Grand River Avenue, 136 W. Grand River Avenue, 341 Evergreen 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.

36 ATTACHMENT C Affidavit of Functional Obsolescence

37