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City of Muskegon
City Commission Meeting
Minutes
June 27, 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
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
Mayor Johnson called the Muskegon City Commission meeting to order at 5:30
p.m.
2. Prayer
Minister Rex Griggs, Zion Baptist Church, opened the meeting with a 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
5. Honors, Awards, and Presentations
6. Public Comment on Agenda Items
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No public comments were received.
7. Consent Agenda
Action No. 2023-70
Motion by: Commissioner St.Clair
Second by: Commissioner Ramsey
To accept the consent agenda as presented, minus item 7d, 7e, 7h, 7k.
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 May 23, 2023 Regular Commission
Meeting.
STAFF RECOMMENDATION: To approve the minutes.
7.b Arena Concessions - Finance/Arena
Staff is seeking City Commission approval to enter into a 3-year
Agreement with HCK Management to provide concession services at
Trinity Health Arena.
For several years, Trinity Health Arena has outsourced its concessions to
a 3rd party management team. The City of Muskegon is seeking a qualified
team to provide Concession Management duties including, but not limited
to: tracking sales, labor and food costs, hiring staff, cleaning concession,
inventory, ordering supplies/goods, and working with arena management
to continue to provide and enhance a great customer experience.
It is important that arena management is able to control all food, beverage,
and expenses associated with concessions. An RFP was issued for
concession management and HCK Management was the only proposal
submitted. HCK Management is qualified to provide this service.
STAFF RECOMMENDATION: To award the proposal to manage
concessions at Trinity Health Arena to HCK Management for a 3 year
term beginning 9/1/2023 and ending 9/1/2026, subject to negotiation and a
contract will be presented to the City Commission.
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7.c Rezoning of 1043 Washington Avenue - Planning
Request to rezone the property at 1043 Washington Avenue from R-2,
Medium Density Single Family Residential to Form Based Code,
Neighborhood Edge, by FMA Rentals, LLC.
The existing building has 5 residential units and a commercial suite. The
owner would like to convert the commercial suite to another residential
unit. The FBC, Neighborhood Edge designation would allow for all
residential units or a commercial suite, so it could be converted back to
commercial again in the future as the market demands.
STAFF RECOMMENDATION: To approve the request to rezone the
property at 1043 Washington Ave from R-2 to Form Based Code,
Neighborhood Edge.
7.f MEDC RAP 2.0 Grant - Development Services
Staff is requesting approval of the attached resolution for inclusion with
our MEDC Revitalization and Placemaking (RAP) 2.0 grant
application due June 30th, 2023 and commit to funding a local match
obligation of $250,000 for Hackley Park electrical upgrade project costs in
future fiscal years, if the project is selected.
In September 2022, the city was awarded $6M in grant funding as part of
“Round 1” of the MEDC RAP 1.0 program. MEDC is continuing the
program into 2023 as RAP 2.0. The program would provide access to
grant funds for gap financing of place-based infrastructure development,
real estate rehabilitation and development, and public space
improvements. https://www.michiganbusiness.org/rap/2/
This tool provides access to real estate and place-based infrastructure
development gap financing in the form of grants of up to $5M per project
for real estate rehabilitation and development, grants of up to $1M for
public space place-based infrastructure per project, and grants of up to
$20M to local or regional partners who develop a subgrant program.
The city’s grant application seeks $3.25M to fund the following projects:
$1M in place-based infrastructure/public space funding to support the
redevelopment and revitalization of the historic Hackley Square at 349 W.
Webster Ave as well as Hackley Park. At this time, commitment of the
$250,000 local match is an unbudgeted cost and would be accounted for
in a future reforecast. A review of savings within the Public Works budget
will serve to identify the funds.
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$2M for the rehabilitation of the vacant Catholic Charities of West
Michigan building at 1095 Third St. The City Commission approved a
purchase agreement for the building and surrounding parking. As of March
2023, the city is under contract with a new developer, West Urban
Properties, to construct a new mixed-use development.
AMOUNT REQUESTED: $3,250,000
AMOUNT BUDGETED: $0
FUND OR ACCOUNT: 101-901-801-923XXX
STAFF RECOMMENDATION: To approve the resolution and authorize
the Clerk to sign and commit to funding a local match obligation for
Hackley Park electrical upgrade project costs in future fiscal years if the
project is selected.
7.g End of Year Budget Amendment - Finance
At this time staff is asking for approval of the End of Year Budget
Amendment for FY2022-23 budget year. Staff has prepared the End of
Year Budget Amendment for the 22-23 budget year, highlights of the
amendments are as follows:
101 General Fund
Revenues:
101-000-438 Income Tax collections have been better than projected for
the 4th Quarter. We can increase revenue from $10,750,000 to
$11,000,000
101-000-482 Electric Permits revenue should go up to $210,000 from
$195,000
101-000-483 Plumbing Permits revenue should be changed to $112,000
from $105,000
101-000-484 Heating Permits revenue should be changed to $157,000
from $146,000
101-000-486 Rental Property revenue should be changed to $427,000
from $400,000
101-000-696-004963 Loan Proceeds revenue is recorded for the Fire
Truck loan for $761,603
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101-000-684-004800 Misc.& Sundry revenue should be changed to
$142,000 from $100,000.
Expenditures Amendments
City Commission Dept 101- Increase expenditures by $12,000 due to
MML expenditures
City Promotions & Public Relations Dept 103- Increase expenditures by
$38,000 due expenses created by the new Community Relations
positions.
Finance Department Dept 202- Increase expenditures by $8,000 due to
8% payroll for nonunion personnel
Income Tax Dept 205- Increase expenditures by $41,000 mainly due to
postage increases, salary increases and insurance payout for both Union
and Non-Union.
City Clerk Dept 215- Increase expenditures by$56,000 mainly due to
postage increases, salary increases and insurance payout for both Union
and Non-Union.
City Treasurer Dept 253- Increase expenditures by $41,000 mainly due to
postage increases, salary increases and insurance payout for both Union
and Non-Union.
City Assessor Dept 257 Increase expenditures by $12,000 due to some
unexpected tax appeal fees.
Insurance Services 272 – Increase expenditures by $195,000 due lawsuits
and insurance claims. MMRA requires a that members have a minimum
self-insured retention amount.
Police Dept 301- Increase expenditures by $291,000 due to payroll and
overtime.
Fire Dept 336 - Increase expenditures by $85,000 due to payroll and
overtime.
Building Dept 387- Increase expenditures by $610,000 because most of
the permit fees are up significantly and Safebuilt gets a of the revenue
generated from permits.
Central Fire Station 340 – Increase expenditures by $10,000 due utility
costs.
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Community Event Support Dept 446 - Increase expenditures by $10,000
to cover landscaping, snow plowing, and miscellaneous fees. These costs
should be offset by additional revenues.
Planning Dept 701-Increase expenditures by $105,000 off the expense for
the Marihuana Social Equity and Education programs, to cover the city’s
participation in the countywide broadband study, additional site prep for
the infill housing, and other miscellaneous items.
Forestry Dept 771- Increase expenditures by 10,000 due contractual
services costs and supplies.
Capital Projects 901- Increase expenditures by $761,603 for the purchase
of the new fire truck. These costs were previously approved by
Commission and we required to add this asset to our books.
Debt Service 906- Increase expenditures by $1,300 due Agent Fees and
Interest adjustments.
Transfer 999- Additional $102,000 to the Arena
234 Pigeon Hill Brownfield
Revenues:
Tax collections need to be bumped up by $840
Expenditures Amendments
Expenditures need to match the increase in revenue by the same amount
of $840
237 Terrace Point Brownfield
Revenues:
Property Tax values and Tax Capture exceed original projects by
$97,000.00
Expenditures Amendments
Expenditures need to match the increase in revenue by the same amount
of 97,000
252 Farmers Market
Revenues:
Increase revenues by $43,000 this includes reimbursement from the DDA
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Expenditures Amendments
Increase expenditures by $60,000 ($30,000 for contractual and misc.
services and $30,000 for an ice maker and cameras.
This year the Farmer’s Market did not require any funds from the General
Fund.
254 Arena
Expenditures Amendments
Increase expenditures by $102,00 due to payroll increases and
contractual services.
445 Public Improvement
Expenditures Amendments
Increase expenditures by $100,000 to cover unexpected project costs on
capital projects.
482 STATE GRANTS
Expenditures Amendments
Increase expenditures by $4,750,000 for ARPA Expenditures.
643 ENGINEERING SERVICES
Expenditures Amendments
Increase expenditures by $25,000 due to salary rate increases.
STAFF RECOMMENDATION: To approve the End of Year Budget
Amendment as presented.
7.i Transfer of Obsolete Property Rehabilitation Exemption Certificate
#3-016-0027 from P & G Holdings NY, LLC to the new owners, Shaw
QOZB2, LLC - Economic Development
Shaw QOZB 2, LLC has requested an Obsolete Property Rehabilitation
Exemption Certificate transfer for the property 920 Washington Avenue.
On July 12, 2016, the City Commission approved an Obsolete Property
Certificate to P&G Holdings NY, LLC for 920 Washington Ave. State
issued this certificate on 12/13/2016.
Shaw QOZB 2, LLC has purchased the property for redevelopment that
will result in adaptive reuse of nearly 630,000 square feet of dilapidated
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former industrial space into a lively mixed-use development. The project is
projected to result in over $120 million in tax capture over 20 years
between property taxes and new income taxes.
The previous owner (P&G Holdings NY, LLC) had an OPRA parcel on the
property and needs to be transferred over to the new owner.
STAFF RECOMMENDATION: to approve the adoption of the following
resolution approving the transfer of the Obsolete Property Rehabilitation
Exemption Certificate # 3-16-0027 from P&G.
7.j Contract Award - City Hall Boiler Replacement - Public Works
Staff is requesting authorization to enter into a contact with Hurst
Mechanical, in the amount of $534,964 for the replacement of the boiler(s)
and related equipment at City Hall.
Bids were solicited for the replacement of the boiler at City Hall after a
design was completed by Rhodes Engineering. Hurst Mechanical was the
only bid received, however the bid is in line with the engineer’s estimate
and Hurst has performed quality work for the City in the past.
Furthermore, the tight timeframe to complete the project before cold
weather returns has led staff to recommend award to Hurst on the basis of
timing, quality and a reasonable price.
Hurst’s bid is attached. They recommend adding $17,500 in asbestos
abatement costs, which staff agrees with, and staff has also requested a
performance bond for an additional $5,000 cost to ensure the work is done
properly and timely.
This work is budgeted in FY24 (up for adoption this evening), but again
due to the tight timeframe before cold weather staff requests approval
tonight to avoid losing the two weeks until the 7/10 meeting.
STAFF RECOMMENDATION: To authorize staff to enter into a contact
with Hurst Mechanical. in the amount of $534,964 for the replacement of
the boiler(s) and related equipment at City Hall.
7.l DWRF Lead Water Line Engineering - Public Works
Staff requests approval to enter into a contract with Prein & Newhof, Inc.
for engineering services related to lead service line replacements under
the DWRF program.
At the meeting on October 25, 2022, Commission authorized engineering
services for several projects related to the FY23 DWRF & CWSRF
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program through the state. That authorization included approval for work
in the Glenside Neighborhood, for the reconstruction of Wilcox, Thompson
and Edgewater streets in the Bluffton neighborhood, for the reconstruction
of Morton Avenue from Lincoln to Denmark in Lakeside, for repairs to the
Harbour Towne and Edgewater lift stations also in Bluffton, and for the
replacement of approximately 500 lead service lines in the City. The
authorization included $1,319,600 in funds from the FY23, FY24 and FY25
budgets.
Prein & Newhof and DPW have recently discovered that while that item
included the lead service line work in the description of the cover sheet, it
did not include an actual proposal for that work – meaning the cost of the
work was not included. Upon further review, a proposal by Prein &
Newhof was found from January of this year in the amount of $296,400.
Only the design portion of the proposal ($38,000) is funded by City funds-
on-hand; the much larger construction engineering portion goes into the
bond and qualifies for the principal forgiveness and other program
benefits.
This work is critical to both our lead service line replacement efforts
(required by state regulations and in the best interests of our residents and
water system regardless), as well as to the DWRF program we have
benefitted from lately. In fact, two weeks from now DPW staff will return
with the final details of this program. Current information from EGLE
indicates we expect to receive 75% forgiveness on the drinking water
portion of the loan this year, potentially worth over $6,900,000 in grant and
aid.
This year is the final year of three-year program whereby Prein & Newhof
was selected as one of two firms to perform the City’s state revolving fund
work. Based on that process, Commission’s prior support of this
engineering work being awarded to Prein & Newhof, and the critical nature
of this work that will lead, in part, to a substantial award of grant and aid
from the state, staff requests this additional cost be awarded to Prein &
Newhof.
AMOUNT REQUESTED: $296,000 Total - $38,000 (Design/Cash) and
$258,400 (Construction/Bond)
AMOUNT BUDGETED: $150,000 is budgeted in FY24 for all DWRF and
CWSRF engineering fees. Only the $38,000 design portion counts against
this; the remainder will be bonded.
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FUND OR ACCOUNT: 591 (Water Fund)
STAFF RECOMMENDATION: To authorize staff to modify the existing
professional services agreement with Prein & Newhof for additional
services related to the FY23 DWRF lead service line replacements.
7.m EGLE Brownfield Loan Application - City of Muskegon and the
Meadows LLC - Economic Development
The City of Muskegon has been invited to submit an EGLE Brownfield
Loan Application with The Meadows LLC as the Developer.
Fishbeck (the consultant) has submitted a proposal on behalf of the City of
Muskegon for a $1M loan. The pre-vetting process for the EGLE Loan has
been completed and The City of Muskegon is invited to apply for this
project with The Meadows LLC as the developer.
The Harbor 31 project (as a whole redevelopment) is a planned mixed-use
development on approximately 25 acres of Muskegon Lake waterfront in
downtown Muskegon. Proposed uses include a hotel, 33-single and
multifamily residential units, a two-story office building, 48 rental
townhomes, two four-story buildings with grade level retail and apartments
above, a 100-unit waterfront apartment building, a marina, and an in/out
boat service sales and rental operation. For these uses to safely occur,
significant due care measures are required to mitigate environmental
concerns. Vapor barriers and venting systems are necessary beneath
proposed site structures to prevent potential intrusion of harmful vapors.
The cost to implement due care is significant and poses a threat to project
completion. Brownfield funding will be used to complete due care activities
for The Meadows and The Commons so that the development can be
safely completed. The Meadows currently owns the property where The
Commons are located. Eventually The Commons will split from The
Meadows and form a separate LLC and Brownfield Plan.
Staff Comments:
The focus areas for this loan include the projects below:
• 170 Viridian Drive (The Meadows)- This parcel includes the
development of 22 residential rental townhomes known as the Meadows
at Harbor 31. Additional analytical testing is estimated at $25,000 for this
parcel and includes the collection of soil, groundwater and/or soil gas
samples across this parcel to determine if vapor mitigation is necessary at
this parcel.
• 630 & 633 Terrace Street (The Commons East and West)- These
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parcels are located along the eastern and western sides of the
entrance drive to the Harbor 31 Redevelopment. These parcels will each
have a mixed-use building, approximately 30,000 square feet in size.
Therefore, approximately 60,000 square feet of vapor mitigation is
necessary on these parcels. It is anticipated that each building will need a
below slab vapor barrier and/or active mitigation. The projected cost for
vapor mitigation system construction is approximately $8/sq foot, equating
to an estimated $480,000.
• Total costs are expected to be $116,233,000. This includes
assessment/investigation, demolition, abatement, due care activities,
response activities, non-environmental public structure, Non-
Environmental Site Preparation, Contingency (up to 15% of grant/loan),
Administration (up to 3% of grant/loan), EGLE Project Sign (grant/loan
requirement), Grant Closeout Report (grant/loan requirement), Capital
Investment (whole site), and State of Michigan Budget Appropriation.
The applicant for the EGLE Brownfield Loan is the City of Muskegon. The
applicant project contact will be Contessa Alexander. The applicant
signing authority will be Jonathan Seyferth. The project consultant is Kirk
Perschbacher, Fishbeck. The project contact will be responsible for the
day to day operations, working closely with the entire team. This person
will work with the project consultant to send in quarterly invoices to EGLE
for reimbursement. The applicant signing authority will legally sign off on
all documents on behalf of The City of Muskegon. The proper vetting for
this Loan has been completed and The City of Muskegon is invited to
apply.
The following documents will be required with the application:
• A resolution adopted by the city, verifying that the city is willing to
accept the loan
• A Development / Reimbursement Agreement
STAFF RECOMMENDATION: To approve the resolution for the City of
Muskegon to apply for the EGLE Brownfield Loan application with The
Meadows LLC as the Developer and authorize the Mayor and Clerk to
sign.
7.n EGLE Brownfield Loan Application - Downtown Development
Authority, Parkland Properties of Michigan, 965 W. Western Ave., 920
& 930 Washington Ave. - Economic Development
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The Downtown Development Association (DDA) has been invited to
submit an EGLE Brownfield Loan Application with Parkland Properties of
Michigan as the Developer for 965 W. Western Ave., 920 & 930
Washington Ave (Shaw Walker Project).
Environmental Resource Group (the consultant) submitted a proposal on
behalf of the DDA for a $1M loan. The pre-vetting process for the EGLE
Loan has been completed and the DDA is invited to apply for this project
with Parkland Properties of Michigan as the developer.
There are considerable costs related to the environmental activities for the
former Shaw Walker Furniture property. The developer is seeking
$1,000,000 from the EGLE Brownfield Redevelopment Program ($1M
loan). These funds will offset some of the environmental costs for the
activities that are described below.
• Vapor mitigation systems for the existing building
• Vapor mitigation system performance monitoring and reporting
• Asbestos and hazardous materials abatement
• Consultant oversight and reporting
Proposed schedule for eligible activities:
• The project is expected to begin in the fall of 2023 with vapor
system pilot testing and the start of asbestos / hazardous materials
abatement.
The project will result in adaptive reuse of nearly 630,000 square feet of
dilapidated former industrial space into a lively mixed-use development.
The project is projected to result in over $120 million in tax capture over
20 years between property taxes and new income taxes.
Staff Comments:
The applicant for the EGLE Brownfield Loan/ Grant is the City of
Muskegon Downtown Development Authority. The applicant project
contact will be Peter Wills. The applicant signing authority will be Jonathan
Seyferth. The project consultant is Jackie Freiberg, Environmental
Resources Group.
The project contact will be responsible for the day to day operations,
working closely with the entire team. This person will work with the project
consultant to send in quarterly invoices to EGLE for reimbursement.
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The applicant signing authority will legally sign off on all documents on
behalf of the DDA.
The proper vetting for this Loan has been completed and the DDA is
invited to apply. The following documents will be required with the
application:
• A resolution adopted by the city, verifying that the city is willing to
accept the loan
• A Development Agreement is underway.
STAFF RECOMMENDATION: To approve the resolution for the DDA to
apply for the EGLE Brownfield Loan application with Parkland Properties
of Michigan as the Developer and authorize the Mayor and Clerk to sign.
7.d Approval of contract for Mediation & Restorative Services - Planning
To approve the contract for Mediation & Restorative Services to provide
education, outreach, and prevention services to at risk youth.
At the April Work Session meeting, the Commission heard a proposal from
Mediation & Restorative Services to provide education, outreach, and
prevention services to at risk youth. The Commission decided to proceed
with their services and asked staff to prepare a contract.
Services will include one-on-one accountability sessions, monthly group
accountability panels, educating neighborhood associations, monthly
parent/child discussion groups, discuss youth prevention efforts at local
dispensaries, and coordination with the Muskegon Police Department and
the Coalition for a Drug Free Muskegon County.
STAFF RECOMMENDATION: To approve the contract with Mediation &
Restorative Services and authorize staff to sign.
Action No. 2023-71(d)
Motion by: Vice Mayor German
Second by: Commissioner St.Clair
To approve the contract with Mediation & Restorative Services and
authorize staff to sign.
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)
7.e MEDC RAP 1.0 Grant - Development Services
Staff is requesting approval of the attached resolution and authorization to
accept and distribute a 2022 MEDC RAP 1.0 State Grant of $6,000,000,
awarded on September 7, 2022, to support two real estate rehabilitation
projects – 880 First St LLC & Great Lakes Development Investments, Inc.
The city will enter into Subgrant Agreements to distribute $3,000,000 to
880 First St, LLC and $3,000,000 to Great Lakes Development
Investments, Inc. for projects costs incurred as part of their respective
redevelopment projects.
The city applied for and received a 2022 MEDC Revitalization and
Placemaking (RAP) 1.0 grant in the amount of $6M in the Fall 2022 to
support the 880 First St, LLC & Great Lakes Development Investments,
Inc, real estate rehabilitation projects.
The Revitalization and Placemaking Program (“RAP 1.0 Program”) was an
incentive program that deployed state funding to address the COVID-19
impacts and community revitalization needs in communities to invest in
projects that enable population and tax revenue growth through
rehabilitation of vacant and blighted buildings and historic structures,
rehabilitation and development of vacant properties, and development of
permanent place-based infrastructure associated with social zones and
traditional downtowns, outdoor dining, and place-based public spaces.
The city will enter into Subgrant Agreements to distribute $3,000,000 to
880 First St, LLC and $3,000,000 to Great Lakes Development
Investments, Inc. as they are two projects key to meeting the ongoing
housing needs of our community.
AMOUNT REQUESTED: $6,000,000
AMOUNT BUDGETED: $0
FUND OR ACCOUNT: TBD
STAFF RECOMMENDATION: To approve the resolution of support and
authorize the Clerk to sign.
Action No. 2023-71(e)
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Motion by: Vice Mayor German
Second by: Commissioner St.Clair
To approve the resolution of support for the MEDC RAP (Redevelopment
and Placement) Grant, and authorize the 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)
7.h Real Estate Purchase Agreement for The Splash Pad - Downtown
Muskegon Development Center No. 2, Association and the City of
Muskegon - Economic Development
A Real Estate Purchase Agreement has been submitted between The
Downtown Muskegon Development Center No. 2, Association (the
“Seller”) and The City of Muskegon (the “Buyer”) for the purchase of Unit
10 (the “Property”) referred to as the Western Avenue Splash Pad.
A survey plan was created by Gower Professional Surveying, P.C. that is
included in the agenda packet. This survey conveys the Downtown
Muskegon Development Center No. 2 boundaries, the Muskegon County
condominium plan No. 162. This area encompasses ten units between
Terrace, Morris, First, and Clay. The Property is commonly known as the
Western Avenue Splash Pad and is 8066 sq. ft.
This purchase agreement was created in order for Unit 10 to be eliminated
from the Downtown Muskegon Development Center No. 2 boundaries,
and to be purchased by the City of Muskegon.
As described in the Purchased Agreement:
• The Seller shall convey the Property to the Buyer free and clear of
all liens and encumbrances. Seller is also responsible for all real
estate taxes and assessments that have been billed prior to the
effective date.
• Moving forward the Buyer will be held accountable for all
responsibilities, including repairs and maintenance after effective
date.
• All fixtures and equipment are included at no additional costs.
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• Both parties agree that the property is to be sold as is.
• If either party does not perform the terms and conditions of this
agreement within 10 days following receipt of written notice from
either Seller or Buyer, the Seller or Buyer can elect to terminate this
Agreement by written notice and neither party shall have further
obligations under this Agreement.
• Closing costs to be paid by Seller include the following: recording
the deed, the premium for the owner’s policy of title insurance, any
inspection fees, closing fees charged by the Title Company, all
other costs and fees, including attorney fees, it incurred in
connection with this transaction including, the preparation of this
Agreement, and any related closing documents.
• All parties shall deliver the Warranty Deed and all other documents
that are required by this Agreement
AMOUNT REQUESTED: $1,188.75
AMOUNT BUDGETED: $0
FUND OR ACCOUNT: Planning
STAFF RECOMMENDATION: To approve the Real Estate Purchase
Agreement made between Downtown Muskegon Development Center No.
2, Association and The City of Muskegon for the purchase of Unit 10 (the
“Property”) referred to as the Western Avenue Splash Pad authorizing the
Deputy City Manager to sign.
Action No. 2023-71(h)
Motion by: Commissioner Ramsey
Second by: Commissioner Gorman
To approve the Real Estate Purchase Agreement made between
Downtown Muskegon Development Center No. 2, Association and The
City of Muskegon for the purchase of Unit 10 (the “Property”) referred to
as the Western Avenue Splash Pad authorizing the Deputy City Manager
to sign.
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)
7.k Water and Sewer Systems Debt Service Fee - Public Works
Staff requests authorization to institute a debt service fee for both the
water and sewer systems, to appear monthly on each water bill to cover
the debt payments by each system in the prior fiscal year.
On March 13, 2023 staff presented a synopsis of the water system
finances including that the water system is expected to be in debt to other
City funds by about $2,000,000 at the close of the 22-23 fiscal year. This
is due to increasing costs of treatment and capital-intensive repairs to the
system.
Staff presented different funding options, with consensus settling on a
“debt service fee.” This would institute a fee on each water bill, the total of
which would reimburse the system for the amount of debt paid in the prior
fiscal year (for example, the fee proposed at this time will reimburse the
system for the debt paid in the fiscal year ending June 30, 2022). Each
year, staff will make an accounting of the amount of debt paid be each of
the systems and will present adjustments to the fee for consideration by
the Commission. This will more directly tie the projects the City performs
to the amount of the water bill, and will allow the fee to be reduced as
certain bonds or other debts fall off of the system books.
The fee will be distributed on a meter equivalency basis, meaning a typical
residential account will pay the fee at a rate of “one,” while commercial
and industrial accounts will pay the fee at a potentially higher rate
depending on the size of their water meter. Irrigation accounts will not pay
the fee, assuming they are tied to a domestic water account at the same
address. Attached is a breakdown of the meter equivalency calculations
using factors from the American Water Works Association (AWWA).
The water system paid $1,206,318.45 in debt payments for the fiscal year
ending June 30, 2022, and the sewer system paid $473,493.59 for the
same period. Using the attached chart, we anticipate the fee will be $6.09
per month for a residential account on the water system, and $2.39 per
month for a residential account on the sewer system.
City Code states that the City Commission sets the water and sewer rates
by resolution. The attached resolution will institute the fee and establish it
at the rates described herein. The fee will need to be established by a
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similar resolution each year around this time to adjust the fee for the
actual amount of debt incurred each year as described above.
STAFF RECOMMENDATION: To approve the resolution establishing the
Fiscal Year 2023-24 Debt Service Fees for the water and sewer system.
Action No. 2023-71(k)
Motion by: Commissioner Ramsey
Second by: Vice Mayor German
To approve the resolution establishing the Fiscal Year 2023-24 Debt
Service Fees for the water and sewer system.
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 Brownfield Plan Amendment, 880 1st Street, 216 West Clay Avenue -
Economic Development
880 First Street, LLC has submitted a Brownfield Plan Amendment for the
880 1st Street Rehabilitation & New Construction Project- a mixed- use
redevelopment project located at 880 1st St., and 216 West Clay Ave.
880 1st Street Rehabilitation & New Construction Project is a mixed- use
redevelopment project with a total capital investment of $28.8 million. The
projects eligible property is approximately 0.49 acres that consists of one
parcel and a small portion of another adjacent (880 1st St. and 216 W.
Clay Avenue. The property is considered an eligible facility as defined by
Act 381.
The total number of new jobs is 109, which includes construction and
support staff, managerial and administrative employees. There will be
1,384 rentable square feet commercial business space containing a
retail/service provider, 7,700 rentable square feet multi-purpose/co-
working and event space, and 57 multifamily residential apartments
offering attainable workforce housing (units between 80% and 120% of the
AMI according to current MSHDA affordability guidelines). Vertical
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construction is scheduled to begin in the Spring 2024 and anticipated to
be completed by Summer 2026. The total estimated plan capture for
eligible activities is for 35 years, 2025-2059.
After the project is completed the total new taxes received by taxing units
is $2,366.873, total captured by the BRA is $6,201,788, and total new
taxes is $8,568,661.
During the 35 years tax capture period, the total tax capture is
$13,481,830 which includes local taxes (to be reimbursed to the developer
for eligible activities) of $5,225,029, state school taxes (to be reimbursed
to the developer for eligible activities) at $6,935,640, State of Michigan
Brownfield Redevelopment Fund (MBRF) (Maximum of 25-Year period for
tax capture) of $274,220, BRA Local Brownfield Revolving Fund of
$872,283, and the Brownfield Redevelopment Authority (BRA)
Administration of $174,658.
Eligible activities will include EGLE eligible activities such as
assessments, due care planning, and due care activities. MSF non-
environment activities eligible activities include demolition, lead/asbestos
activities, infrastructure improvements, and site preparation activities. The
plan includes a 15% contingency for environmental and non-
environmental activities and 5% in interest.
The Brownfield Redevelopment Authority approved the Brownfield Plan on
June 13th, 2023.
STAFF RECOMMENDATION: To close the Public Hearing and approve
the resolution for the Brownfield Plan Amendment for the 880 1st Street
Rehabilitation & New Construction Project authorizing the City Clerk and
City Mayor to sign.
Public Hearing Commenced:
Contessa Alexander, Development Analyst from City of Muskegon
Development Services Division, presented an overview of the proposed
redevelopment project.
Eric Helzer, 880 First Street development team, gave a presentation
regarding the rehabilitation and new construction project at 880 First
Street.
Brianna Scott, 880 First Street development team, addressed the
commission about her excitement about the project which is taking longer
than expected.
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No public comments.
Action No. 2023-72
Motion by: Commissioner Ramsey
Second by: Vice Mayor German
To close the Public Hearing and approve the resolution for the Brownfield
Plan Amendment for the 880 1st Street Rehabilitation & New Construction
Project authorizing the City Clerk and City Mayor 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
9.a Transmittal of 2023-24 Proposed Budget - Finance
At this time staff is transmitting to the City Commission the proposed
budget for fiscal year 2023-24 which starts July 1, 2023. Both hardcopy
and electronic versions of the budget have been distributed to
Commissioners. Additionally, the budget is available for inspection on the
City’s website and at the City Clerk’s office. The proposed budget was
reviewed in detail with staff at the June 12, 2023 work session. A public
hearing on the budget was held at the regular Commission meeting on
June 13, 2024. City ordinance requires that the budget be adopted by the
Commission on or before the second Commission meeting in June.
https://muskegon-mi.gov/proposed-budget-for-2023-2024/
STAFF RECOMMENDATION: To approve the proposed budget for fiscal
year 2023-24.
Mayor Johnson invited the public comment on the budget. No public
comments were received.
Action No. 2023-73(a)
Motion by: Commissioner Emory
Second by: Commissioner Ramsey
To approve the proposed budget for fiscal year 2023-24.
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Ayes: (7): Mayor Johnson, Commissioner Gorman, Commissioner
St.Clair, Commissioner Hood, Vice Mayor German, Commissioner
Ramsey, and Commissioner Emory
MOTION PASSES (7 to 0)
10. New Business
10.a Distribution of Master Plan to Notice Group - Planning
The Planning Commission has prepared the proposed master plan update
and is submitting it to the City Commission for distribution to the notice
group for a 63-day review.
The notice group includes the planning commissions of all contiguous
local units of government, the Muskegon County Board of Commissioners,
each public utility company, railroad company, and public transportation
company in the City, and any other governmental entity that has
requested to be notified.
The plan can be viewed at this link.
STAFF RECOMMENDATION: To approve distribution of the proposed
master plan to the notice group for a 63-day review period.
Planning Director, Mike Franzak, provided an overview of the Master Plan
Update. The Master Plan is required to have a 63-day review period
before it can be adopted. The presentation included goals and
recommendations in four major areas. There were 27 public input
sessions over the past few years.
Action No. 2023-74(a)
Motion by: Commissioner St.Clair
Second by: Commissioner Hood
To approve distribution of the proposed master plan to the notice group for
a 63-day review period.
Ayes: (7): Mayor Johnson, Commissioner Gorman, Commissioner
St.Clair, Commissioner Hood, Vice Mayor German, Commissioner
Ramsey, and Commissioner Emory
MOTION PASSES (7 to 0)
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11. Any Other Business
11.a ARPA Committee Update
City Manager Jonathan Seyferth informed the Commission that the ARPA
Community Grant Committee has been meeting and staff is looking for
direction on how and when the City Commission would like to review
recommendations. There seems to be consensus that a special meeting
will be scheduled. The City Manager and Clerk will work with the
Commission to determine a date.
11.b ARPA Community Grant Meetings - selection criteria
Vice Mayor German raised concerns about the application review process
that the committee is using and would like to know what criteria, etc., are
being used to determine how to award the grant money. City Manager
Jonathan Seyferth spoke to the process used by the committee to score
the applications. Vice Mayor German is involved in an organization that
submitted an application.
11.c Citizen's Police Review Board
Vice Mayor German has received questions regarding the redaction of
information from the Citizens Police Review Board and will follow up with
Chief Kozal.
11.d Update on Gift Card
Commissioner Emory requested an update on the gift cards. Finance
Director, Ken Grant, provided the update. A meeting of the Gift Card
Committee will be scheduled to discuss how to move forward.
11.e End of Year Budget Amendment
Mayor Johnson requested and Finance Director Ken Grant provided an
overview of the End of Year Budget Amendments. Highlights are included
in the packet.
11.f Muskegon Museum of Art RAP Grant Letter of Support Request
Mayor Johnson was asked to provide a letter of support from the City for
the Muskegon for the Museum of Art's RAP Grant application. He is
seeking commission consensus as to whether or not to provide a letter of
support. There are several considerations to be made and as discussion
took place it was revealed that there is another entity, Adelaide Pointe,
also seeking a letter of support from the City. This is a competitive grant
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that the city has applied for as well. Commission consensus is that the city
should support the grant applications for both entities that have requested
as all projects benefit the city and it's residents.
11.g Parks and Recreation Advisory Committee
The recently created Parks and Recreation Advisory Committee is
accepting applications for positions until July 27, 2023.
12. Public Comment on Non-Agenda items
• Reminder: Individuals who would like to address the City Commission
shall do the following:
• Fill out a request to speak form attached to the agenda or located in the
back of the room.
• Submit the form to the City Clerk.
• Be recognized by the Chair.
• Step forward to the microphone.
• State name and address.
• Limit of 3 minutes to address the Commission
• (Speaker representing a group may be allowed 10 minutes if previously
registered with City Clerk.)
Public comments were received.
13. Closed Session
14. Adjournment
The City Commission meeting adjourned at 8:12 p.m.
Motion by: Commissioner Ramsey
To adjourn at 8:12 p.m.
MOTION PASSES
_________________________
Respectfully Submitted,
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Ann Marie Meisch, MMC - City Clerk
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