Item Coversheet

City of Marquette, MI
300 West Baraga Avenue
Marquette, MI 49855


Agenda Date: 3/13/2023

New Business
Former Marquette General Hospital Redevelopment Reimbursment Agreement

BACKGROUND: 

The Former Marquette Hospital brownfield plan was approved by the City Commission at their May 31, 2022 regular meeting. Since that time, considerable efforts have been undertaken to seek additional funds to reduce the potential brownfield repayment obligation for demolition expenses. To date, over $16 million in State funds have been secured to assist with this development. However, despite this historic investment by the Michigan Strategic Fund, the Michigan Economic Development Corporation, and the Legislature into the Marquette community, additional expenses not covered under these funds are still projected as a barrier to the demolition and redevelopment of this site. The brownfield plan provides for reimbursement of any remaining demolition costs, as well as site preparation costs, public infrastructure, and interest.

 

A component of the brownfield plan is a reimbursement agreement between the Marquette Brownfield Redevelopment Authority (MBRA), Northern Michigan University Foundation (NMUF), and the City of Marquette that outlines the roles and responsibilities for brownfield TIF reimbursement between the MBRA and the entities that conduct Eligible Activities, as well as repayment priority. Under this agreement, as eligible expenses are incurred, the cascade of reimbursement will be the City, the MBRA, and then the NMUF.  The Reimbursement Agreement is a required submittal for the MSF Act 381 work plan.

 

In addition to this agreement, the City Commission will also need to consider a Development Agreement regarding the activities covered under the brownfield plan in the near future.

 

This Agreement has been reviewed by the City Attorney and will be considered by the MBRA at their March 16, 2023 meeting.


FISCAL EFFECT: 
None by this action however the City of Marquette will be the first priority for reimbursement as expenses are incurred under the Former Hospital Redevelopment brownfield plan.

RECOMMENDATION: 
Approve the Reimbursement Agreement with the Northern Michigan University Foundation, and authorize the Mayor and City Clerk to sign.


ALTERNATIVES: 
As determined by the Commission.

ATTACHMENTS:
Description
Reimbursement Agreement