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CITY OF MUSKEGON
CITY COMMISSION MEETING
January 23, 2024 @ 5:30 PM
MUSKEGON CITY COMMISSION CHAMBERS
933 TERRACE STREET, MUSKEGON, MI 49440
MINUTES
CALL TO ORDER
The Regular Commission Meeting of the City of Muskegon was held at City Hall,
933 Terrace Street, Muskegon, Michigan at 5:30 PM, Tuesday, January 23, 2024.
Reverend William T. Anderson, Philadelphia Baptist Church, opened the
meeting with prayer, after which the Commission and public recited the Pledge
of Allegiance to the Flag.
ROLL CALL
Present: Mayor Ken Johnson, Vice Mayor Rebecca St. Clair, Commissioners
Katrina Kochin, Destinee Keener, Jay Kilgo, and Rachel Gorman. City Manager
Jonathan Seyferth, City Attorney John Schrier, City Clerk Ann Marie Meisch, and
Deputy City Clerk Kimberly Young
Absent: Commissioner WIllie German, Jr.
HONORS, AWARDS, AND PRESENTATIONS
A. Big Red State Champion Football Honors - POSTPONED TO 2/13/2024
MEETING Manager's Office
PUBLIC COMMENT ON AGENDA ITEMS
Public comments received.
2024-12 CONSENT AGENDA
Motion by Commissioner St.Clair, second by Commissioner Gorman, to approve
the consent agenda minus items B, D, I, F, J, and L.
ROLL VOTE: Ayes: Gorman, Kochin, St.Clair, Johnson, Kilgo, and Keener.
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Nays: None
MOTION PASSES
A. Approval of Minutes City Clerk
To approve the minutes of the January 8, 2024 Worksession and January 9, 2024
Regular meetings.
STAFF RECOMMENDATION: To approve the minutes.
C. 2024 User Fees Finance
City Departments have reviewed and updated their user fees and these have
been incorporated into the Master Fee Resolution that is attached for your
consideration.
STAFF RECOMMENDATION: Approval of the 2024 Master Fee Resolution.
E. Arena Solar Interconnect Agreement Public Works
Staff requests approval of an Interconnect Agreement with Consumers Energy
to allow for the equipment and operations necessary for automatic switching
between grid energy and the solar system on the arena roof.
The solar system on the arena is complete. In order to allow for the automatic
switch equipment to be installed and for the operations necessary for switching
between grid energy and the solar system, the attached agreement is required
to be executed with Consumers Energy. The agreement has been reviewed by
the attorney. It is an electronic signature, so staff requests the Director of Public
Works be authorized to sign.
STAFF RECOMMENDATION: Approve the Interconnect Agreement with
Consumers Energy to allow for the equipment and operations necessary for
automatic switching between grid energy and the solar system on the arena
roof, and authorize the Director of Public Works to sign.
G. Chicken Ordinance Planning
Request to amend the Animals section of the City Code of Ordinances to allow
residents to keep up to six chickens at their residence, under certain conditions.
The ordinance would allow residents to keep up to six female chickens (no
roosters) on a residential parcel that has at least 3,000 sf. The property must be
located in a zoning district that allows for single family houses, duplexes, triplexes
or quadplexes (Single Family Residential, RT, FBC-UR or FBC-LR). The chickens
must be kept in a coop, which shall be in a fenced or covered enclosure, and
must contain a feeding container. Chicken coops must be approved by the
Zoning Administrator through the development permit process.
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STAFF RECOMMENDATION: Approve the amendments to the Animal ordinance
to allow for regulations on keeping chickens.
H. Scattered Site Payment In Lieu of Taxes Agreement with Green
Development Ventures, LLC (Allen Edwin Homes) Economic
Development
This is our first opportunity to take advantage of the new "scattered site"
Payment in lieu of Taxes law passed in Michigan last year, which will allow Green
Development Ventures, LLC (Allen Edwin) to infill 36 homes over the next several
years for workforce rental housing.
For nearly a year, the Development Services Division has been exploring
opportunities to broaden the scope of our current infill housing program. A new
tool has come online in Michigan through Public Act 239, an amendment to the
State's main affordable housing legislation. Previously, the State of Michigan
only allowed cities to issue housing tax exemptions (PILOT) to Low Income
Housing Tax Credit developments, which are almost always larger format
multifamily apartment buildings. This has made it difficult to subsidize single
family or smaller multiplexes for working families and often results in new
construction rental stock that is only at higher market rates. This has also led to a
market where often the only subsidized units are geared towards people at or
below 80% of the area median income, though there is still a sizable shortage of
those units as well.
Our 2023-2027 Housing Needs Assessment illustrates a need for 295 units in the
next five years with rents between $1,431-$2,145,and 403 between $895 and
$1,430. The 36 units proposed by Allen Edwin will largely be 4 bedroom, 2
bathroom homes that will rent between $1,400 and $1,700 per month. Staff has
attached the latest MSHDA rents table that would restrict Allen Edwin to charge
rents below 120% Area Median Income thresholds throughout the life of this
agreement. To put this in context for our community, examples of households
earning 100-120% of the AMI would be a single adult who is a full-time teacher in
their first five years, or wherein one adult works full time in entry level
manufacturing and the other works part-time in retail. Essentially, these houses
will be targeting "working class" people who are often house burdened and until
recently have had few options available to them for subsidy.
As with other PILOT agreements, the City would forego traditional property
taxes, and instead be paid a percentage of the gross rents paid during the tax
year. The relevant state statute defines 10% of gross rents as the minimum, which
is what is proposed here. It should be noted that this is slightly to considerably
higher than the typical LIHTC deal we have seen in past years. For example, if
the average rent collected on these 36 houses is $1,500 a month, the total
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portfolio once complete will gross $648,000 annually. The city would assess
$64,800, or 10%, and then distribute that proportionately to the various taxing
jurisdictions as though it were traditional property taxes. The city's share of this
annual PILOT would be roughly $14,000, as compared with roughly $45,000 if
they were taxed traditionally. These savings of 2/3rds of the taxes is the incentive
for the developer to agree to restrict the rents to the limits set by MSHDA for the
15-year time period of this agreement.
STAFF RECOMMENDATION: Approve the Workforce Housing Restrictive Covenant
between Green Development Ventures, LLC and the City of Muskegon as
presented and to authorize the mayor and clerk to sign.
K. Signing Purchase and Closing Documents Manager's Office
Staff is requesting approval of a resolution which specifies who can sign
purchase agreements and closing documents on behalf of the city. The
resolution names Samantha Pulos as a city employee who is authorized to sign
purchase agreements and closing documents on behalf of the city. This
authority fits into Samantha's new role as the Code Coordinator in the Planning
Department.
STAFF RECOMMENDATION: Approve the resolution authorizing specific city staff
to sign purchase agreements and closing documents on behalf of the city.
2024-13 REMOVED FROM CONSENT AGENDA
B. Consumers Energy Easement for the Water Filtration Plant Tower Public
Works
Staff requests authorization to grant an easement to Consumers Energy for
electric service to the communications tower at the water filtration plant.
Verizon Wireless recently received their Critical Dune Permit from the State
Department of EGLE, which will allow them to begin installation of their
antenna(s) and other equipment. In order to supply power to the equipment,
Consumers Energy needs to bring electic service to the site. This route keeps the
electric lines outside of the fence of the filtration plant, ensuring the minimal
impact on City operations. Staff recommends approval.
STAFF RECOMMENDATION: To approve staff to grant an easement to Consumers
Energy on the water filtration plant property for the purposes of bringing electric
service to the plant's telecommunications tower.
Motion by Commissioner Kochin, second by Commissioner Gorman, to approve
for staff to grant an easement to Consumers Energy on the water filtration plant
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property for the purposes of bringing electric service to the plant's
telecommunications tower.
ROLL VOTE: Ayes: Gorman, Kochin, St.Clair, Johnson, Kilgo, and Keener
Nays: None
MOTION PASSES
D. Sale of 1278 Pine Street Planning
Staff is seeking authorization to sell the City-owned vacant lot at 1278 Pine Street
to Caleb Schuyten. Caleb Schuyten would like to purchase the City-owned
buildable lot at 1278 Pine Street for $1,125 (75% of the True Cash Value of
$1,500) plus half of the closing costs and the fee to register the deed. Caleb
Schuyten will be constructing a single-family home on the property.
STAFF RECOMMENDATION: Authorize the Code Coordinator to complete the
sale of 1278 Pine Street, as described in the attached purchase agreement,
and to have the Mayor and Clerk sign both the purchase agreement and the
deed.
Motion by Commissioner Kilgo, second by Commissioner Gorman, to authorize
the Code Coordinator to complete the sale of 1278 Pine Street, as described in
the attached purchase agreement, and to have the Mayor and Clerk sign both
the purchase agreement and the deed.
ROLL VOTE: Ayes: Keener, Gorman, Kochin, St.Clair, and Johnson
Nays: Kilgo
MOTION PASSES
F. Acquisition of Vacant Lot at 748 Catherine for Infill Housing from
Muskegon Land Bank Economic Development
This lot recently had a grant funded demolition of a derelict home by the
Muskegon County Land Bank. Rather than see it sold privately to expand a lawn
or sit vacant and sporadically maintained, we would like to proactively acquire
it for future phases of City-led infill housing.
We have recently been working to strengthen ties with the Muskegon County
Land Bank Authority and as a result of this we have a great system in place
where we are notified of potential lots that may benefit our urgent housing
need. This lot was recently added to the inventory for the Land Bank after a
long-vacant home was demolished using State Land Bank grant dollars. As we
finish out ARPA Infill Housing we will be making recommendations on continued
builds as part of a broader housing strategy, and continuing our budgeted
property acquisition will benefit all aspects of that.
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AMOUNT REQUESTED: $3,500
FUND OR ACCOUNT: Public Improvement Fund
STAFF RECOMMENDATION: Approve the purchase of the vacant lot at 748
Catherine for the sum of $3,500 as presented, and to direct staff to close on the
property.
Motion by Commissioner Kilgo, second by Commissioner Gorman, to approve
the purchase of the vacant lot at 748 Catherine for the sum of $3,500 as
presented, and to direct staff to close on the property.
Motion by Commissioner Kilgo, second by Commissioner Keener, to table this
item until the February 13, 2024 Commission Meeting.
ROLL VOTE: Ayes: Johnson, Kilgo, Keener, Gorman, Kochin, and St.Clair
Nays: None
MOTION PASSES
I. Green Development Ventures, LLC (Allen Edwin Homes) PILOT Fee
Resolution Economic Development
A resolution is required to establish the annual Payment in lieu of Taxes (PILOT)
fee for the proposed infill housing scattered site project proposed by Green
Development Ventures, LLC (Allen Edwin). This reolution acts in concert with the
proposed Restrictive Covenant on the agenda as necessary documents to be
passed by a local municipality in order to establish a PILOT for scattered site
homes. The resolution sets the annual payment at 10% of gross shelter rents for
the life of the PILOT.
STAFF RECOMMENDATION: Adopt the Resolution establishing the annual PILOT
fee as presented, and authorize the mayor and clerk to sign.
Motion by Commissioner Kilgo, second by Commissioner Gorman, to adopt the
resolution establishing the annual PILOT fee as presented, and authorize the
mayor and clerk to sign.
ROLL VOTE: Ayes: Kochin, St.Clair, Johnson, Kilgo, Keener, and Gorman
Nays: None
MOTION PASSES
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J. Sale of 740 Leonard Avenue Manager's Office
Staff is seeking approval of the sale of 740 Leonard Avenue. 740 Leonard
Avenue was constructed through the agreement with Rudy Briggs to construct
infill housing with ARPA funding. The offer is for full asking price.
STAFF RECOMMENDATION: Approve the purchase agreement for 740 Leonard
Avenue.
Motion by Commissioner Kochin, second by Vice Mayor St.Clair, to approve the
purchase agreement for 740 Leonard Avenue.
ROLL VOTE: Ayes: Gorman, Kochin, St.Clair, Johnson, Kilgo, and Keener
Nays: None
MOTION PASSES
L. Concur with CRC Acceptance of Resignations and Appointment
Recommendations City Clerk
To concur with the Community Relations Committees recommendation and
accept resignations and make appointments to various boards.
CRC recommendation to City Commission to accept resignations of:
Downtown Development/Brownfield Redevelopment/TIF Authority
John Riegler, Resident of District-term expiring 1/31/2026
Lakeside Business Improvement District
Andrea Chambers, Owner or representative term expiring 01/31/2025
Allen Serio, Owner or representative term expiring 01/31/25
And *reappointment/appointment of:
Board of Review
*David Medendorp, Citizen term expiring 01/31/2026
*Martha Bottomley, Citizen term expiring 01/31/2026
*Sherry Burt, Citizen term expiring 01/31/2026
Charlotte Barnes-Evans, Citizen expiring 01/31/2025
Citizen’s Police Review Board
*Shaundrica Roberts, move to Member of a Minority Based Organization
expiring 01/31/2026
*Eric Hood, Law Enforcement Professional expiring 1/31/2026
Sarah Overly, Citizen At Large expiring 01/31/2025
Community Development Block Grant-Citizen’s District Council
*Perry Dennie, Representative of Ward 1 expiring 01/31/2027
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DErika Nicholas-Lewis, Representative of Ward 2 expiring 01/31/2027
Construction Code Board of Appeals
*Brion Boucher, Architect expiring 01/31/2026
*Michael McPhall, Fire expiring 01/31/2026
Walter Christophersen, Electrical expiring 01/31/2026
Downtown Development/Brownfield Redevelopment/TIF Authority
*Michael Kleaveland, Interest of property in district expiring 01/31/2028
*Sherri Black, Citizen expiring 01/31/2028
Kaja Thornton, Resident of district expiring 01/31/2026
Election Commission
*Betty Ivory-Roberts, Citizen expiring 01/31/2027
Equal Opportunity Committee
No action
Farmers Market Advisory Board
*Kim Martens, Seasonal farmer expiring 01/31/2027
*John Zandstra, Seasonal farmer expiring 01/31/2027
Historic District Commission
*Steven Radtke, local preservation society expiring 01/31/2027
*Jacquelyn Huss, local preservation society expiring 01/31/2027
Housing Code Board of Appeals
*Ed Simmons, Citizen expiring 01/31/2027
Housing Commission
Oneata Bailey, Citizen expiring 01/31/2029
Income Tax Board of Review
Patrick Kiely, Resident expiring 01/31/2027
Lakeside Business Improvement District
*Mark Flermoen, Assessed owner/representative expiring 01/31/2027
*Dick Ghezzi, Assessed owner/representative expiring 01/31/2027
Margaret Smith, Assessed owner/representative expiring 01/31/2026
Ronald Jenkins, Assessed owner/representative expiring 01/31/2025
Derek Edlund, Assessed owner/representative expiring 01/31/2025
Local Development Finance Authority
Page 8 of 12
*Andrew Wible, Citizen with interest in district expiring 01/31/2028
Bennie Chambers, Citizen with interest in district expiring 01/31/2028
Local Officer’s Compensation Commission
Heather Hill, Citizen expiring 01/31/2031
Parks and Recreation Advisory Committee
*Lynnette Marks, Muskegon Schools representative expiring 01/31/2027
*Sarah DeLaRosa, Citizen Ward 1 expiring 01/31/2027
*Anthony Olshansky, Citizen Ward 2 expiring 01/31/2027
*David Ruck, Citizen Ward 3 expiring 01/31/2027
*Leann Heywood, Citizen Ward 4 expiring 01/31/2027
*John Burt, Citizen At large expiring 01/31/2027
Planning Commission
Lea Willett LeRoi, Citizen expiring 01/31/2027
Steve Gawron, Citizen expiring 01/31/2027
Zoning Board of Appeals
Deborah Crockett, Resident expiring 01/31/2027
Motion by Commissioner Kilgo, second by Commissioner Gorman, to concur
with the Community Relations Committees recommendation to accept
resignations and make appointments to various boards.
ROLL VOTE: Ayes: Gorman, Kochin, St.Clair, Johnson, Kilgo, and Keener
Nays: None
MOTION PASSES
2024-14 NEW BUSINESS
A. DEI Policy Audit Manager's Office
Staff is requesting approval of the selection of MGT to review a number of city
policies for their impact on equity and provide recommendations for changes
to existing policies as well as for new policies that further our efforts to realize our
equity vision.
Staff advertised a request for proposals (RFP) in mid October with proposals due
November 14. Nine firms provided on time proposals, and the GARE Core Team
members each reviewed the proposals according to the information provided
in the RFP. This is a qualifications based selection so scores were weighted as
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follows: qualifications of the team at 40%, understanding of service at 30%,
relevant experience at 20% and cost at 10%. The team met in mid December
to discuss the scores and come to a consensus on which firm to recommend for
approval. Two firms rose to the top, and references were checked for both.
Staff submits to the commission our recommendation to hire MGT located in
Tampa, FL with recent experience assisting the Ann Arbor Area Community
Foundation, Oregon City, Utah Office of Tourism, Sacramento County, and the
City of Shaker Heights, OH.
The cost will depend on how many policies are reviewed. The GARE Core Team
has narrowed the list to 43 policies. The RFP had contemplated review of up to
100 policies, and priced proposals were based on that figure. The lead team
will negotiate a price for the 43 policies recommended for review. A budget
amendment may be requested in the future, or funding may be requested to
continue work in the next fiscal year.
STAFF RECOMMENDATION: Approve the selection of MGT to audit city policies
and authorize the Deputy City Manager to sign a contract not to exceed
$40,000.
Motion by Vice Mayor St.Clair, second by Commissioner Gorman, to approve
the selection of MGT to audit city policies and authorize the Deputy City
Manager to sign a contract not to exceed $40,000.
ROLL VOTE: Ayes: Keener, Gorman, Kochin, St.Clair, Johnson, and Kilgo
Nays: None
MOTION PASSES
B. Adelaide Pointe Dropwell Docks Discussion Public Works
Adelaide Pointe has proposed new docks at the dropwell location in Hartshorn
Park under the Cooperative Use Agreement and will present the plan for
consideration. Adelaide Pointe has proposed a set of docks that would be
attached to the seawall just east of the Hartshorn boat launch. The docks
would allow for boats dropped into the lake by the In/Out operations, and
would provide additional public dock space for shopping and water access.
While the docks are not shown on the currently approved site plan/PUD plan,
the Cooperative Use Agreement would support the concept if the updated
plans showing the docks were to be approved by the City and EGLE. Adelaide
Pointe will present the plan in detail for review and discussion.
STAFF RECOMMENDATION: For discussion only.
C. CFFMC Spark Grant Application Discussion Public Works
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Staff requests approval to work with the Community Foundation for Muskegon
County (CFFMC) to apply for a Spark Grant for a new skate park at Rotary Park.
The Spark Grant program includes a round of funding designated specifically for
communities that have historically been looked over for grant funding in parks
and public spaces. Each community was assigned to a Community Foundation
in order to assist in distributing the funds outside of the traditional scoring
process. Although Muskegon was successful during the competitive round, and
that may slightly reduce the amount the City could receive, staff has heard
positive reinforcement from knowledgeable individuals that the City could
expect to receive funding from this process.
Due to the compressed application time frame, staff was required to select a
project that had budgetary numbers and conceptual plans already
completed. The only project that met that criteria was the new skate park
proposed at Rotary Park, which is an excellent candidate for the program and
furthers several staff and Commission goals. The concept plan, prepared by
nationally-recognized skate park design firm Grindline, is included for review
and has been budgeted at $1,000,000. If less than the full project amount is
funded a group of community stakeholders has indicated a willingness to raise
funds and they believe some funds to support the project exist in the
community, but due to the compressed timeline no formal campaign has been
launched. If the project is selected, funding would be identified prior to
entering into any formal grant agreement.
If the project is selected for funding, the City and County will need to negotiate
a lease for a portion of Rotary Park. The County has indicated they are willing to
enter into those discussions when the time is right, and has previously indicated
a willingness to host the skate park in this location. A wide-ranging community
engagement campaign conducted in 2021-22 identified Rotary Park as the
community's preferred location and provided many ideas for elements that will
be included in the park.
STAFF RECOMMENDATION: For Discussion Only
D. Sale of 720 Leonard Avenue Manager's Office
Staff is seeking approval of the sale of 720 Leonard Avenue. Commissioner Kilgo
has submitted a letter to Mayor Johnson indicating a conflict of interest as the
agent representing the buyer. Commissioner Kilgo will not participate in the
discussion or vote for this item.
STAFF RECOMMENDATION: Approve the purchase agreement for 720 Leonard
Avenue.
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REMOVED FROM AGENDA and to be considered at a later date. Commissioner
Kilgo has disclosed a conflict regarding this item and our charter requires that all
other commissioners vote in the affirmative for the measure to pass - one
commissioner was absent.
ANY OTHER BUSINESS
Chief Kozal commended the Muskegon Fire Department firefighters on their
performance during recent fire incidents and provided an update on
equipment that has been purchased as well as upcoming grant opportunities.
Chief Kozal also entertained questions from the Commission.
City Manager Jonathan Seyferth updated the Commission on assistance to
residents at Nelson Place who have been displaced.
Commissioner Kilgo announced that the Steele Neighborhood Association is
meeting at the current Steele Middle School building to discuss the future of the
building. If you would like to participate in the discussion, please come.
PUBLIC COMMENT ON NON-AGENDA ITEMS
Public comments received.
ADJOURNMENT
The City Commission meeting adjourned at 8:15 p.m.
Respectfully Submitted,
Ann Marie Meisch, MMC
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