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CITY OF MUSKEGON
CITY COMMISSION MEETING
NOVEMBER 14, 2017 @ 5:30 P.M.
MUSKEGON CITY COMMISSION CHAMBERS
933 TERRACE STREET, MUSKEGON, MI 49440
MINUTES
The Regular Commission Meeting of the City of Muskegon was held at City Hall,
933 Terrace Street, Muskegon, MI at 5:30 p.m., Tuesday, November 14, 2017.
George Monroe, Evanston Avenue Baptist Church, opened the meeting with
prayer, after which the Commission and public recited the Pledge of Allegiance
to the Flag.
ROLL CALL FOR THE REGULAR COMMISSION MEETING:
Present: Mayor Stephen J. Gawron, Vice Mayor Eric Hood, Commissioners
Ken Johnson, Byron Turnquist, Willie German, Jr., Debra Warren, and Dan
Rinsema-Sybenga, City Manager Frank Peterson, City Attorney John Schrier, and
City Clerk Ann Meisch.
2017-90 CONSENT AGENDA:
A. Approval of Minutes City Clerk
SUMMARY OF REQUEST: To approve minutes of the October 24, 2017 Regular
Meeting.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Approval of the minutes.
C. Sale of Parking Lot City Manager
ITEM REMOVED PER STAFF REQUEST
F. Approval of a Neighborhood Enterprise Zone Certificate Planning &
Economic Development (341 Terrace Point Circle)
SUMMARY OF REQUEST: An application for a Neighborhood Enterprise Zone
(NEZ) certificate has been received from Robert and Michelle Klanke for the
new construction of a home at 341 Terrace Point Circle. The estimated cost for
construction is $342,573. The applicant has met local and state requirements for
the issuance of the NEZ certificate.
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FINANCIAL IMPACT: Taxation will be applied as one-half of the previous
year’s state average principal residence millage rate to the value of the facility.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval of NEZ certificate.
G. Approval of a Neighborhood Enterprise Zone Certificate Planning &
Economic Development (307 Terrace Point Circle)
SUMMARY OF REQUEST: An application for a Neighborhood Enterprise Zone
(NEZ) certificate has been received from Jesus Cutie for the new construction of
a home at 307 Terrace Point Circle. The estimated cost for construction is
$319,004. The applicant has met local and state requirements for the issuance of
the NEZ certificate.
FINANCIAL IMPACT: Taxation will be applied as one-half of the previous
year’s state average principal residence millage rate to the value of the facility.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval of NEZ certificate.
H. Approval of a Neighborhood Enterprise Zone Certificate Planning &
Economic Development (345 Terrace Point)
SUMMARY OF REQUEST: An application for a Neighborhood Enterprise Zone
(NEZ) certificate has been received from Gordon and Kimberly Shutek for the
new construction of a home at 345 Terrace Point. The estimated cost for
construction is $380,036. The applicant has met local and state requirements for
the issuance of the NEZ certificate.
FINANCIAL IMPACT: Taxation will be applied as one-half of the previous
year’s state average principal residence millage rate to the value of the facility.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval of NEZ certificate.
I. Approval of a Neighborhood Enterprise Zone Certificate Planning &
Economic Development (656 Terrace Point)
SUMMARY OF REQUEST: An application for a Neighborhood Enterprise Zone
(NEZ) certificate has been received from Patrick Loughridge for the new
construction of a home at 656 Terrace Point. The estimated cost for construction
is $284,705. The applicant has met local and state requirements for the issuance
of the NEZ certificate.
FINANCIAL IMPACT: Taxation will be applied as one-half of the previous
year’s state average principal residence millage rate to the value of the city.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval of NEZ certificate.
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J. Approval of a Neighborhood Enterprise Zone Certificate Planning &
Economic Development (315 Terrace Point Circle)
SUMMARY OF REQUEST: An application for a Neighborhood Enterprise Zone
(NEZ) certificate has been received from Cheryl Parker for the new construction
of a home at 315 Terrace Point Circle. The estimated cost for construction is
$347,032. The applicant has met local and state requirements for the issuance of
the NEZ certificate.
FINANCIAL IMPACT: Taxation will be applied as one-half of the previous
year’s state average principal residence millage rate to the value of the facility.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval of NEZ certificate.
Motion by Commissioner Warren, second by Commissioner Johnson, to approve
the consent agenda as presented, except items B, D, and E.
ROLL VOTE: Ayes: German, Rinsema-Sybenga, Turnquist, Johnson, Gawron,
Hood, and Warren
Nays: None
MOTION PASSES
2017-91 ITEMS REMOVED FROM CONSENT AGENDA:
B. Market Manager City Clerk
SUMMARY OF REQUEST: Over the past year, the market has grown with more
activities, use of the kitchen, and the food hub pilot program. With the addition
of three food truck rallies, Dining in the Dark, Farm-To-Table event, Halloween
Bash, etc. in just the last year or so, the market has grown beyond a part-time
Market Manager. This past year, the Market Manager averaged 35 hours per
week with plenty more to do if able to.
FINANCIAL IMPACT: When calculating the cost of the Market Manager
through the temporary service, we have found it will cost an additional $4,000
per year to hire a Market Manager full-time with benefits.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To create a full-time position for Market Manager.
Motion by Commissioner Turnquist, second by Commissioner Rinsema-Sybenga,
to create a full-time position for Market Manager.
ROLL VOTE: Ayes: Rinsema-Sybenga, Turnquist, Johnson, Gawron, Hood, Warren,
and German
Nays: None
MOTION PASSES
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D. 1078 2nd Street and 1180 4th Street Purchase City Manager
SUMMARY OF REQUEST: Staff was recently presented with the opportunity to
purchase these properties for a combined cost of $79,000. Staff plans to convert
the properties to single family residences and return them to the neighborhood
as private owner-occupied homes. These houses will be purchased and
rehabbed with Public Improvement Funds rather than CDBG/HOME Funds in an
effort to create affordable housing without income restrictions.
FINANCIAL IMPACT: $79,000, plus closing costs.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Authorize City Manager to enter into a purchase
agreement for 1078 Second Street in the amount of $55,000 and 1180 Fourth
Street in the amount of $24,000.
Motion by Commissioner Turnquist, second by Commissioner Rinsema-Sybenga,
to authorize City Manager to enter into a purchase agreement for 1078 Second
Street in the amount of $55,000 and 1180 Fourth Street in the amount of $24,000.
ROLL VOTE: Ayes: Turnquist, Johnson, Gawron, Hood, Warren, German, and
Rinsema-Sybenga
Nays: None
MOTION PASSES
E. Windward Pointe Master Planning City Manager
SUMMARY OF REQUEST: The City and Pure Muskegon have the opportunity to
engage a world premiere water-front redevelopment master planning
organization to help guide the vision for the former Sappi site. DPZ CoDesign
(DPZ) is widely recognized as a leading expert in the latest/best practices for
planning, urban design, and sustainable mixed-use development in waterfront
communities. The cost to bring DPZ into Muskegon to conduct the full master
planning process is significant. DPZ will spend a number of days in Muskegon
gathering data, conducting public meetings and developing a sustainable 21st
Century plan for this site. As part of the Sappi Paper Mill’s closing, approximately
$500,000 was left to the City to help mitigate the effects of the plant’s closure.
Staff is asking that $75,000 of those funds be allocated to the master planning
process for Windward Pointe. The total cost of the process is expected to
exceed $250,000.
FINANCIAL IMPACT: $75,000
BUDGET ACTION REQUIRED: To be included in the 1st Quarter Budget
Reforecast.
STAFF RECOMMENDATION: Authorize the expenditure of $75,000 from the
Sappi Economic Development Fund.
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Motion by Commissioner German, second by Commissioner Johnson, to
authorize the expenditure of $75,000 from the Sappi Economic Development
Fund.
ROLL VOTE: Ayes: Johnson, Gawron, Hood, Warren, German, Rinsema-Sybenga,
and Turnquist.
Nays: None
MOTION PASSES
2017-92 PUBLIC HEARINGS:
A. Request for an Industrial Facilities Exemption Certificate – KLO
Acquisition Planning & Economic Development
SUMMARY OF REQUEST: Pursuant to Public Act 198 of 1974, as amended, KLO
Acquisitions, LLC, 700 Terrace Point, has requested the issuance of an Industrial
Facilities Tax (IFT) Exemption Certificate. The company will be locating its
corporate headquarters at this location, which will result in a real property
investment of almost $450,000 and will create up to 35 new jobs. This qualifies
them for a tax abatement of 12 years under the City’s IFT policy.
FINANCIAL IMPACT: The City will capture additional property taxes
generated by the expansion.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval of the resolution granting an Industrial
Facilities Exemption Certificate for a term of twelve years for real property.
PUBLIC HEARING COMMENCED: No public comments were received under
public hearing for this issue.
Motion by Commissioner Johnson, Second by Commissioner German, to close
the public and approve the resolution granting an Industrial Facilities Exemption
Certificate for a term of twelve (12) years for real property.
PUBLIC PARTICIPATION: Public Comments were received.
ADJOURNMENT: The City Commission Meeting adjourned at 6:40 p.m.
Respectfully Submitted,
Ann Meisch, MMC, City Clerk
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