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City of Muskegon
City Commission Meeting
Minutes
May 23, 2023, 5:30 pm
Muskegon City Hall
933 Terrace Street, Muskegon, MI 49440
Present: Mayor Ken Johnson
Commissioner Rachel Gorman
Commissioner Rebecca St.Clair
Commissioner Eric Hood (left about 7:30 p.m.)
Vice Mayor Willie German, Jr.
Commissioner Michael Ramsey
Commissioner Teresa Emory
Staff Present: City Manager Jonathan Seyferth
City Clerk Ann Meisch
City Attorney John Schrier
Deputy City Clerk Kimberly Young
1. Call To Order
The Regular Meeting of the City of Muskegon was held at City Hall, 933 Terrace
Street, Muskegon, Michigan at 5:30 p.m. on Tuesday, May 23, 2023. Mayor
Johnson called the City Commission Meeting to order at 5:30 p.m.
2. Prayer
Pastor Tara Foreman, Bethany Christian Reformed Church, opened the meeting
with prayer.
3. Pledge of Allegiance
The Pledge of Allegiance to the Flag was recited by the Commission and the
public.
4. Roll Call
As recorded above
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5. Honors, Awards, and Presentations
5.a Muskegon Pride Center
Jeffery Pienela, President of Muskegon Pride Center, addressed the
commission regarding the upcoming Muskegon Pride Festival and
Muskegon Pride Parade.
5.b Seaway Run Presentation
Commissioner Ramsey shared information regarding the 2023 Seaway
Run. The Seaway Run is partnering with all area schools, providing
schools with a code and a champion. Students register at cost ($12) and
parents may register for $20. The fee includes the bib, medal, t-shirt.
Reach out to your school office or Seaway Run for the code for your
school.
6. Public Comment on Agenda Items
Public comments were received.
7. Consent Agenda
Action No. 2023-61
Motion by: Commissioner Ramsey
Second by: Commissioner Emory
To accept the consent agenda as presented, minus items 7b, 7e, and 7i.
Ayes: (7): Mayor Johnson, Commissioner Gorman, Commissioner St.Clair,
Commissioner Hood, Vice Mayor German, Commissioner Ramsey, and
Commissioner Emory
MOTION PASSES (7 to 0)
7.a Approval of Minutes - City Clerk
To approve the minutes of the April 25, 2023 Regular Commission
Meeting.
STAFF RECOMMENDATION: To approve the minutes.
7.c Environmental Contract - Public Safety
There were three bids for the City of Muskegon Environmental cleanup
and grass mowing contract. Earth Creations, Barry's Greenhouse, and
Preferred Lawn Care. Earth Creations came in as the lowest bidder.
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AMOUNT REQUESTED: $197,000 per fiscal year/3-year contract
AMOUNT BUDGETED: $197,000 per year 2023-2026 contract, with an
approximate increase of 10% per year.
FUND OR ACCOUNT: 101-387-494
STAFF RECOMMENDATION: To approve and award the Environmental
clean-up contract to Earth Creations for the upcoming June 5, 2023
through June 5, 2026 and allow the Director of Public Safety to sign the
contract.
7.d All Traffic Solution Contract Renewal - Public Safety
All Traffic Solutions contract is up for renewal as of September 30, 2023.
All Traffic Solutions is the company that we have purchased our digital
display traffic trailers (2). This contract will be for the continued upkeep of
technical support which allows the police department to program the
trailers from a desktop in the office, receive satellite signal. The traffic
trailers have been used in different area of the city to reduce speeding and
at Pere Marquette notifying of paid parking and speed. This amount for the
3-year contract is at a 20% savings to the City.
AMOUNT REQUESTED: $7,200 for a 3-year contract
AMOUNT BUDGETED: $7,200 for a 3-year contract
FUND OR ACCOUNT: 101-301-801
STAFF RECOMMENDATION: To approve the renewal of the 3-year
contract with All Traffic Solutions.
7.f Lumberjacks Renovations - Arena
Seeking approval to construct new team space at Trinity Health Arena. In
exchange, the Lumberjacks would like to add an additional renewal option
to Lumberjacks Shared Use Agreement.
All Traffic Solutions is the company that we have purchased our digital
display traffic trailers (2). This contract will be for the continued upkeep of
technical support which allows the police department to program the
trailers from a desktop in the office, receive satellite signal. The traffic
trailers have been used in different area of the city to reduce speeding and
at Pere Marquette notifying of paid parking and speed. This amount for the
3-year contract is at a 20% savings to the City.
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STAFF RECOMMENDATION: To approve continued exploration for the
addition and amendment and authorize the City Manager and Clerk to
sign.
7.g Parks & Recreation Advisory Committee Establishing Ordinance -
2nd Reading - Public Works
An ordinance to provide guidelines for the creation of a Parks &
Recreation Advisory Committee.
STAFF RECOMMENDATION: To adopt the Parks & Recreation Advisory
Committee ordinance as presented.
7.h Brownfield Development & Reimbursement Agreement, The
Meadows at Harbor 31 LLC, 170 Viridian Drive - Economic
Development
Staff is seeking approval of the Brownfield Development and
Reimbursement Agreement for the Meadows at Harbor 31 LLC and
approval of the resolution.
The Meadows at Harbor 31 is located on 2.5-acres along Muskegon Lake.
The proposed redevelopment activities will include a 21 two-story multi-
family duple style residential homes with surrounding grass lawn areas,
sidewalks and roadways creating a walkable community that provides
access to Muskegon Lake, greenspace areas in downtown Muskegon.
Sustainable development concepts are proposed throughout the project
including green building techniques and low-impact development and
stormwater management. The total costs for the eligible activities,
including contingencies and interest, are $1,961,135. The Brownfield TIF
Revenue will be used to reimburse the Developer for the Developer
Eligible Activities incurred and approved for the Project.
The Total private investment, not including property acquisition, is
approximately $7,000,000. Development is expected to begin this fall
through 2024.
The Development & Reimbursement Agreement outlines the procedures
for the City to reimburse the Developer for eligible expenses within the
Brownfield Plan. The Authority shall pay 100% of the available Brownfield
TIF Revenue to the Developer to reimburse the costs of Developer Eligible
Activities. The Developer will provide the BRA a request for payment of
eligible expenses. The BRA has 30 days to approve the request.
Payments are made on a semi-annual basis when incremental local taxes
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are captured and available. This agreement is to be approved by the
Brownfield Redevelopment Authority during a special meeting held on
May 23, 2023.
The Brownfield Plan Amendment was approved by the BRA on April 14,
2023 and the Commission on April 25, 2023.
STAFF RECOMMENDATION: To approve the Meadows at Harbor 31,
LLC Brownfield Development and Reimbursement Agreement and
authorize the Mayor and City Clerk to sign the agreement and resolution.
7.j Ordinance to Prohibit Illegal Entry into a Motor Vehicle - Public
Safety
Proposal of an ordinance to prohibit illegal entry into a motor vehicle.
Currently local and state law makes it unlawful for any person to enter a
motor vehicle and steal an item. To appropriately charge this offense,
intent needs to be proven that the defendant intended to steal when
entering, or they are caught with the item they removed from the vehicle.
There is no law that prohibits anyone from just entering another person’s
vehicle. In 2022 MUPD investigated 212 reports of larceny from a motor
vehicle. This proposed ordinance makes it illegal for someone to enter
another person’s vehicle. This will allow MUPD another tool during our
investigations.
STAFF RECOMMENDATION: To approve the proposed ordinance
making it illegal for someone to enter another person’s vehicle.
7.k Lakeshore Art Festival Grant - City Clerk
The City of Muskegon is in the process of pursuing a grant from the
Michigan Arts and Culture Council Grant (MACC) in the amount of
$25,000 to support the 2024 Lakeshore Art Festival. Grant funds will
support artists’ fees (performers and artists), art supplies for the interactive
art activities, and marketing efforts to attract a diverse audience. Per the
grant requirements, the funds will be matched 1:1 from the Festival budget
through sponsorship dollars.
STAFF RECOMMENDATION: To authorize staff to apply for the MACC
grant in the amount of $25,000
7.b City Manager DEI Certification - City Manager
Approval for the City Manager to enroll in Cornell University's Diversity,
Equity & Inclusion (DEI) online Certificate Program. As part of the City
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Manager’s employment agreement, there’s a requirement to complete a
DEI certificate program (time frame is unspecified). After some research
and talking with DEI practitioners, I am requesting approval to enroll in
Cornell University’s online DEI Certificate Program.
This program comes highly recommended and is well respected in the DEI
field. I have included an endorsement of the program from Muskegon
Community College’s Chief Diversity Officer, Ken James for your
reference. The program has rolling start dates. It is my objective to start
the program in June or July which should lead to completion by early fall
2023. Although this expense is within the City Manager’s authority,
Commission is being asked to approve this item as it was called out as a
requirement in the City Manager’s contract.
AMOUNT REQUESTED: $3,700
AMOUNT BUDGETED: N/A
FUND OR ACCOUNT: 101-172-861
STAFF RECOMMENDATION: To approve the enrollment of the City
Manager in Cornell University's Online DEI Certificate Program.
Action No. 2023-62(b)
Motion by: Vice Mayor German
Second by: Commissioner St.Clair
To approve the enrollment of the City Manager in Cornell University's
Online DEI Certificate Program.
Ayes: (7): Mayor Johnson, Commissioner Gorman, Commissioner
St.Clair, Commissioner Hood, Vice Mayor German, Commissioner
Ramsey, and Commissioner Emory
MOTION PASSES (7 to 0)
7.e Annual Action Plan Budget2023 - Community & Neighborhood
Services
The Annual Action Plan Budgets are presented to the Commission for
approval based on the Department of Housing and Urban Development
(HUD) appropriations for FY2023. The Community Planning and
Development (CPD) office funded programs are Community Development
Block Grand (CDBG) and HOME investment Partnerships (HOME) and
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the allocations total $1,226,786.00 for eligible programs administered by
the office of Community and Neighborhood Services. The budgets for
CDBG and HOME have been provided for review.
STAFF RECOMMENDATION: To approve the 2023 Annual Action Plan
Budgets for CDBG and HOME Programs.
Action No. 2023-62(e)
Motion by: Vice Mayor German
Second by: Commissioner St.Clair
To approve the 2023 Annual Action Plan Budgets for CDBG and HOME
Programs.
Ayes: (7): Mayor Johnson, Commissioner Gorman, Commissioner
St.Clair, Commissioner Hood, Vice Mayor German, Commissioner
Ramsey, and Commissioner Emory
MOTION PASSES (7 to 0)
7.i FY24 DWRF Project Plan Updates - Department of Public Works
The City’s DWRF Project Plan on file with the state for future revolving
fund projects has been updated, and the City needs to receive comment
and adopt the plan by resolution.
The City has taken advantage of favorable rates and even some principal
forgiveness as a part of the state’s Revolving Loan Fund programs to
complete substantial utility improvement projects, such as the Sanford
Street project currently underway. In order to be eligible for these
programs, projects must be included in the City’s “Project Plan” that is on
file with the state department of EGLE. The specific projects proposed for
the program are not known at this time; this Project Plan is simply a list of
projects the City may propose for the program in the future. The list is
used by the state to perform preliminary environmental and other
clearance work so they are prepared for the projects if and when the City
proposes them.
Prein & Newhof has updated our Drinking Water Revolving Fund (DWRF)
Project Plan (the plan dedicated to drinking water projects) to show
potential projects over the next several years. Part of the updating
process includes holding a meeting where the public can comment on the
plan (satisfied by today’s meeting and the public comment periods within
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it), and a resolution by the Commission adopting the plan. The resolution
is attached.
An Executive Summary of the Project Plan is included. For the full version
(520 pages, 34MB), please visit: 2023-05-08 DWRF Project Plan -
Muskegon -DRAFT
STAFF RECOMMENDATION: To adopt the City's 2024 DWRF Project
Plan by resolution.
Action No. 2023-62(i)
Motion by: Commissioner St.Clair
Second by: Commissioner Ramsey
To adopt the City's 2024 DWRF Project Plan by resolution.
Ayes: (7): Mayor Johnson, Commissioner Gorman, Commissioner
St.Clair, Commissioner Hood, Vice Mayor German, Commissioner
Ramsey, and Commissioner Emory
MOTION PASSES (7 to 0)
8. Public Hearings
8.a Request for an Industrial Facilities Exemption Certificate - Pacific
Floorcare, 2259 S. Sheridan Drive - Planning & Economic
Development
Pacific Floorcare has requested an Industrial Facilities Tax Exemption
Certificate. The company will be making an investment of $2,570,524 in
real property improvements and plans on creating up to 17 jobs as part of
the overall project, qualifying them for a 12-year abatement.
Pacific Floor Care is a manufacturing facility providing quality, and
innovative floor care equipment. Pacific Floorcare will begin construction
for an expansion this month. The expansion will add an additional 36,000
sq ft to the property on 2259 South Sheridan Drive. The new combined
building will be 72,000 sq ft of commercial office and manufacturing space.
The new facility will provide for additional rotational molding equipment
and new production lines in support of new product launches. The new
building will also include a 2,100 sq ft customer training
center. The total investment for this project is $2,570,524 in real property.
This project will create 17 new jobs, add additional space for lines,
warehousing, products and training.
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Staff Comments: There is an established Industrial Development District
on this site from July 26,1983 that encompasses the Port City Industrial
Park and is included in the agenda packet. The IFT committee reviewed
the applicant's project on May 9, 2023 and based on their findings and
calculations, the committee suggests approval of the attached resolution
for a term of 12 years for real property. The business has turned in all of
the necessary documents and application fee.
Contessa Alexander with the Development Services Department
presented information on the request for the Industrial Facilities Exemption
Certificate. Dwana Thompson, Equal Employment Opportunity Director,
provided information on the demographic information and reported that the
company does have an Affirmative Action Policy and EEO Policy. Bill
Fisher, President of Pacific Floor Care - Larry Hines, owner and Greg
Weiss, Vice President of Sales were in attendance. Mr. Fisher provided
information on the expansion of their business. Morgan Carrol, Greater
Muskegon Economic Development supports the project and encourages
the commission to support the request to approve the exemption.
STAFF RECOMMENDATION: To close the public hearing and approve
the resolution granting an Industrial Facilities Exemption Certificate for a
term of 12 years for real property to Pacific Floor Care.
PUBLIC HEARING COMMENCED:
Deborah Peabody, Nelson Neighborhood, not against exemption but has
questions about the demographics of the employees of the company.
Jake Eckholm, Development Services Director, pointed out that this
company meets the criteria put forth by our scoring policy for qualifying for
the exemption.
Action No. 2023-63(a)
Motion by: Commissioner Ramsey
Second by: Commissioner Gorman
To close the public hearing and approve the resolution granting an
Industrial Facilities Exemption Certificate for a term of 12 years for real
property to Pacific Floor Care.
Ayes: (7): Mayor Johnson, Commissioner Gorman, Commissioner
St.Clair, Commissioner Hood, Vice Mayor German, Commissioner
Ramsey, and Commissioner Emory
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MOTION PASSES (7 to 0)
8.b Brownfield Plan Amendment, 3rd Amendment, Adelaide Pointe
QOZB, LLC - Development Services
Approval for Brownfield Plan Amendment, 3rd Amendment for Adelaide
Pointe QOZB, LLC (Adelaide Pointe Project) and to consider the
resolution.
Adelaide Pointe QOZB, LLC has submitted a Brownfield Plan Amendment
(3rd Amendment) for the Adelaide Pointe Project – a 35-acre mixed use
waterfront development project including winter boat storage, marina
space, In/Out forklift boat storage, commercial/retail, and up to 400
housing units. Plans for this site has begun and will continue through Fall
2030 with a total investment of $92,000,000 (not including property
acquisition). The mixed-use waterfront development will create
approximately 100 new jobs (retail, office, restaurant, marina) and provide
contractor work for hundreds of temporary construction workers.
This amendment adds in the eligible environmental and non-
environmental activities and property boundaries (1100 West Western
Avenue) related to the construction of a Dry Rack storage building on the
eastern portion of the new redevelopment area. This caused an increase
in total investment by approximately $7,000,000 an increase in taxable
value by $2,800,000 and increase in environmental and non-
environmental activities equating to approximately $1,900,000. Future
amendments to this amended BPA may be pursued for phases four and
five of the development.
In addition to environmental activities, non-environmental activities will
include demolition, lead/asbestos abatement, site preparation and public
infrastructure improvements. TIF will be used to reimburse the Developer,
for the following eligible activities:
• Pre-approved BEA, documentation of due care, asbestos/lead paint
survey, and additional due care assessment
• Due care activities
• Asbestos, lead paint, and mold abatement
• Select building and site demolition
• Site preparation
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• Infrastructure improvements (public)
• 15% contingency
• Brownfield Plan Amendment
• Brownfield Plan Amendment Implementation
• Interest
Staff Comments:
Adelaide Pointe Brownfield Plan Amendment Approval Dates:
Brownfield Plan Amendment- BRA approval on Oct. 12, 2021 and CC on
Oct 26, 2021
1st Amendment to the BPA- BRA approval on Dec. 13, 2022 and CC on
Dec. 13, 2023.
2nd Amendment to the BPA- BRA and CC approval on Mar. 14, 2023
3rd Amendment to the BPA- BRA approval on May 9, 2023.
STAFF RECOMMENDATION: To close the public hearing and approve
the resolution for the Brownfield Plan Amendment, 3rd Amendment for the
Adelaide Pointe Project authorizing the Mayor and City Clerk to sign.
Contessa Alexander, Development Analyst, presented information on the
request for the Amendment.
PUBLIC HEARING COMMENCED:
Jamie Cross, Nelson Neighborhood, frustrated that there is no plan for the
park/public space at Adelaide Pointe.
Diane Foster, Jackson Hill Neighborhood, wants to know if they're
planning to take money from the newly created Recreation Department -
who is paying for the park?
Deborah Peabody, Nelson Neighborhood, is any part of the $2 million
going to this?
Director Eckholm clarified some issues for the commission, he also
clarified that the park that is being referenced is not part of Adelaide
Pointe's private development, it is city property being improved by
Adelaide Pointe.
Action No. 2023-63(b)
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Motion by: Commissioner Ramsey
Second by: Commissioner Hood
To close the public hearing and approve the resolution for the Brownfield
Plan Amendment, 3rd Amendment for the Adelaide Pointe Project
authorizing the Mayor and City Clerk to sign.
Ayes: (7): Mayor Johnson, Commissioner Gorman, Commissioner
St.Clair, Commissioner Hood, Vice Mayor German, Commissioner
Ramsey, and Commissioner Emory
MOTION PASSES (7 to 0)
9. Unfinished Business
10. New Business
10.a 3rd Amendment, Brownfield Development & Reimbursement
Agreement, Adelaide Pointe QOBZ, LLC - Economic Development
Staff is seeking approval for the 3rd Amendment, Brownfield Development
& Reimbursement Agreement, for Adelaide Pointe QOZB, LLC (Adelaide
Pointe Project) and to consider the resolution.
Adelaide Pointe QOZB, LLC has submitted a Brownfield Plan Amendment
(3rd Amendment) for the Adelaide Pointe Project – a 35-acre mixed use
waterfront development project including winter boat storage, marina
space, In/Out forklift boat storage, commercial/retail, and up to 400
housing units. Plans for this site has begun and will continue through Fall
2030 with a total investment of $92,000,000 (not including property
acquisition). The mixed-use waterfront development will create
approximately 100 new jobs (retail, office, restaurant, marina) and provide
contractor work for hundreds of temporary construction workers.
Due to the addition of the eligible environmental and non-environmental
activities related to the construction of a Dry Rack storage building
mentioned in the 3rd Amendment to the Brownfield Plan Amendment, the
Brownfield Tiff will change, thus needing an updated Brownfield
Development and Reimbursement Agreement. This will cause a shift in
the Brownfield Tax Increment Funds. This agreement is contingent upon
the approval of the 3rd Amendment to the BPA for Adelaide Pointe.
The cost of Eligible Activities may be incurred by the City and APQ. The
total cost of the Eligible Activities in the Brownfield Plan Amendment,
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including contingencies, is estimated to be $38 million dollars (the "Total
Eligible Brownfield TIF Costs").
The Development & Reimbursement Agreement outlines the procedures
for the City to reimburse the Developer for eligible expenses within the
Brownfield Plan. The Authority shall pay 100% of the available Brownfield
TIF Revenue to the Developer to reimburse the costs of Developer Eligible
Activities. The Developer will provide the BRA a request for payment of
eligible expenses. The BRA has 30 days to approve the request.
Payments are made on a semi-annual basis when incremental local taxes
are captured and available. This agreement is to be approved by the
Brownfield Redevelopment Authority during a special meeting held on
May 23, 2023.
The 1st Amendment to the DRA for APQ was approved by the BRA and
CC on Jan.10, 2023. The 2nd Amendment to the DRA was approved by
the BRA and CC on March 14, 2023.
STAFF RECOMMENDATION: To approve the Brownfield Development &
Reimbursement Agreement for Adelaide Pointe QOZB, LLC (Adelaide
Pointe Project) and authorize the Mayor and City Clerk to sign the
agreement and resolution.
Action No. 2023-64(a)
Motion by: Commissioner Ramsey
Second by: Commissioner St.Clair
To approve the Brownfield Development & Reimbursement Agreement for
Adelaide Pointe QOZB, LLC (Adelaide Pointe Project) and authorize the
Mayor and City Clerk to sign the agreement and resolution.
Ayes: (6): Mayor Johnson, Commissioner Gorman, Commissioner
St.Clair, Vice Mayor German, Commissioner Ramsey, and Commissioner
Emory
Absent (1): Commissioner Hood
MOTION PASSES (6 to 0)
10.b Insurance Premium Refund - Non-Union Team Members - City
Manager
In January 2023 several of the City's unions notified management of a
miscalculation in the insurance premiums paid by staff. Upon investigation
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it was determined that there was an error in contributions paid by union
employees (contributions were negotiated at 10%). An administrative
decision was made to adjust union team members back to 10%
contributions and repay union team members for their over payment.
At the April 11, 2023 meeting, the Commission also made the decision to
adjust non-union team members back to the 10% contributions. This item
is to discuss repayment of non-union employees for the amounts paid
over 10% going back to January 1, 2020.
As a reminder, starting in 2017 the City began using three different factors
to determine employee contributions to their insurance premiums (a
percent of actual monthly premiums and a percent of City Paid Benefits
(co-insurance & deductibles)). Prior to 2017 just insurance premiums were
used as a factor. This change was made because of cost increases in co-
insurance and deductibles.
Sometime after 2017 a calculation error occurred and team member’s
contributions increased above the 10% level. Technically, this is ok for
non-union team members as the Commission can set the non-union
insurance contributions at any rate it desires. However, traditionally, the
insurance contributions have been the same across all employment
classes. On April 11, 2023 the commission approved realigning non-union
team members’ insurance with union members.
The question before the Commission today is, should the City refund non-
union team members for the “overpayments” of health insurance
contributions for the same time period as we were required to do for union
team members? (Going back to Jan. 1, 2020.)
This cost will be about $90,400 in payments back to team members
(ranging from about $3,000 to $70 per team member).
STAFF RECOMMENDATION: To approve repaying non-union staff for
insurance premiums paid in excess of 10% going back to January 1, 2020.
Action No. 2023-64(b)
Motion by: Commissioner St.Clair
Second by: Commissioner Ramsey
To approve repaying non-union staff for insurance premiums paid in
excess of 10% going back to January 1, 2020.
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Ayes: (6): Mayor Johnson, Commissioner Gorman, Commissioner
St.Clair, Vice Mayor German, Commissioner Ramsey, and Commissioner
Emory
Absent (1): Commissioner Hood
MOTION PASSES (6 to 0)
11. Any Other Business
12. Public Comment on Non-Agenda items
Public comments were received.
13. Closed Session
14. Adjournment
The City Commission meeting adjourned at 7:50 p.m.
Motion by: Vice Mayor German
Second by: Commissioner Emory
To adjourn.
MOTION PASSES
_________________________
Respectfully Submitted,
Ann Marie Meisch, MMC - City Clerk
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