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CITY OF MUSKEGON CITY COMMISSION MEETING June 11, 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 p.m., Tuesday, June 11, 2024. Pastor E. J. Wood, from All Shores Wesleyan 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 Willie German, Jr., Rachel Gorman, Katrina Kochin, Jay Kilgo, and Destinee Keener, City Manager Jonathan Seyferth, City Attorney John Schrier, and City Clerk Ann Marie Meisch. 2024-53 HONORS, AWARDS, AND PRESENTATIONS A. ILA-Inclusive Leadership Academy Recognition Employee Relations Dwana Thompson introduced the participants from the 2024 ILA Inclusive Leadership Academy Class. Commission thanked the participants for finding ways to serve our community. PUBLIC COMMENT ON AGENDA ITEMS Public comments received. 2024-54 CONSENT AGENDA A. Approval of Minutes City Clerk To approve minutes of the May 28, 2024, City Commission Meeting. Page 1 of 8 STAFF RECOMMENDATION: To approve the minutes. B. Sale of 1095 Third Street - ITEM REMOVED PER STAFF REQUEST Economic Development D. Sale of 892 Orchard Planning Staff is seeking authorization to sell the City-owned vacant lot at 892 Orchard to Mark Payne. Mark Payne would like to purchase the City-owned buildable lot at 892 Orchard for $3,000 (75% of the True Cash Value of $4,000) plus half of the closing costs and the fee to register the deed. The buyer will be constructing one single-family home on the property. STAFF RECOMMENDATION: Authorize the Code Coordinator to complete the sale of 892 Orchard, as described in the purchase agreement, and to have the Mayor and Clerk sign both the purchase agreement and the deed. I. Contract for Planning/Architectural Services with SEH Planning The Development Services Division will be contracting with a consulting firm to create a Corridor Improvement Plan for Apple Ave. Staff issued a Request for Proposal (RFP) for the project and received four responses. SEH provided the lowest bid and they are a local firm that located their offices on Webster Ave in 2023. STAFF RECOMMENDATION: To approve the contract with SEH. L. Gaming License Request from HUG MKG (Help Us Give Muskegon) City Clerk HUG MKG is requesting a resolution recognizing them as a non-profit organization operating in the City for the purpose of obtaining a Gaming License. They have been recognized as a 501(c)(3) organization by the State. STAFF RECOMMENDATION: To approve the resolution. M. Complete Streets Policy Manager's Office Staff requests approval of a new Complete Streets Policy. Staff from the Planning, Public Works, and Engineering Departments have developed a Complete Streets Policy in an effort to further our goal to improve quality of life and economic vitality for our residents, workers, and visitors. The Complete Streets Policy will enhance mobility, improve safety, expand transportation access/choice, and build a healthy community. Benefits include reducing vehicle miles traveled and increasing transportation by walking, bicycling, and public transportation which help address a wide variety of challenges including pollution, climate change, traffic congestion, social isolation, obesity, and physical inactivity. Page 2 of 8 STAFF RECOMMENDATION: To approve the Complete Streets Policy. Motion by Commissioner German, second by Vice Mayor St.Clair, to approve the Consent Agenda minus items C, E, F, G, H, J, and K. ROLL VOTE: Ayes: Keener, German, Gorman, Kochin, St.Clair, Johnson, and Kilgo Nays: None MOTION PASSES 2024-55 ITEMS REMOVED FROM THE CONSENT AGENDA C. Rezoning of Properties on Beach St, Indiana Ave, Ohio Ave, Simpson Ave, and Nelson St from R-1 to R-2. (SECOND READING) Planning Staff initiated request to rezone the following properties from R-1, Low Density Single-Family Residential to R-2, Medium Density Single Family Residential: 1510, 1520, 1528, 1536, 1542, 1548, 1554, 1562, 1568, 1582, 1590, 1598, 1602, 1610, 1616, 1622, 1636, 1646, 1650, 1656, 1662, 1668, 1682, 1686, 1692, and 1704 Beach Street; 3660 Indiana Avenue; 1360,1368, 1374, 1386, 1412, 1430, 1448, 1450, 1516, 1517, 1523, 1530, 1538, 1550, 1551, 1560, 1563, 1569, 1570, 1579, 1580, 1590, 1600, 1603, 1622, 1631, 1635, 1636, 1632, 1634, 1640, 1642, 1651, 1652, 1661, 1663, 1666, 1674, 1675, 1682, and 1690 Nelson; 3600 and 3601 Ohio Avenue; and 3691 Simpson Avenue. Staff has received several calls over the past year from property owners in this area that had some concerns about their R-1 zoning designation. Many properties within this focus area are considered “legally non- conforming” because their lots do not meet the minimum lot size requirements (minimum of 50 feet of street frontage and 6,000 sf total). Some property owners were having difficulties with financing options since they would not be able to rebuild after a disaster without a variance from the Zoning Board of Appeals. A couple property owners were inquiring about splitting their large lots, only to find that they were just short on the amount of land needed for two lots. This would not allow more housing types (duplexes, etc), it only modifies the size of a buildable lot. A focus group was held in March with the property owners. The Planning Commission unanimously recommended approval of the rezoning at their May meeting. STAFF RECOMMENDATION: To approve the rezonings as listed in the packet. Motion by Commissioner Kochin, second by Vice Mayor St.Clair, to approve the rezonings as listed in the packet. ROLL VOTE: Ayes: Keener, Gorman, St.Clair, and Johnson Nays: Kilgo, German, and Kochin MOTION PASSES Page 3 of 8 E. Road Construction Contract Award to Anlaan for New and Second Streets DPW- Engineering Staff is requesting authorization to approve a contract with Anlaan Corporation in the amount of $1,145,853.25 for road reconstruction work on New Street; Evanston to Calvin; and 2nd Street; Houston to Muskegon. Bids were solicited for a construction project to reconstruct New Street; Evanston to Calvin; and 2nd; Houston to Muskegon. Anlaan Corp provided the low bid. Bids came in under budget. Project is budgeted for in FY24-25. STAFF RECOMMENDATION: Move to authorize staff to enter into a contract with Anlaan Corporation for the amount of $1,145,853.25 for the reconstruction of New Street and 2nd Street according to the construction plans and approve change orders up to 10 percent of the contract award. Motion by Commissioner Gorman, second by Vice Mayor St.Clair to authorize staff to enter into a contract with Anlaan Corporation for the amount of $1,145,853.25 for the reconstruction of New Street and 2nd Street according to the construction plans and approve change orders up to 10 percent of the contract award. ROLL VOTE: Ayes: Johnson, Kilgo, Keener, German, Gorman, Kochin, and St.Clair Nays: None MOTION PASSES F. Annual Action Plan Budget 2024 Community & Neighborhood Services The budgets for both CDBG and HOME funds are for your review and consent. The Annual Action Plan Budgets are presented to the Commission for approval based on the Department of Housing and Urban Development (HUD) appropriations for FY2024. The Community Planning and Development (CPD) office-funded programs are Community Development Block Grant (CDBG) and HOME investment Partnerships (HOME) and the allocations total $1,136,877.00 for eligible programs administered by the office of Community and Neighborhood Services. STAFF RECOMMENDATION: To approve the 2024 Annual Action Plan Budgets for CDBG and HOME Programs. Motion by Commissioner Keener, second by Commissioner Kochin, to approve the 2024 Annual Action Plan Budgets for CDBG and HOME Programs. ROLL VOTE: Ayes: St.Clair, Johnson, Kilgo, Keener, Gorman, and Kochin Nays: German MOTION PASSES Page 4 of 8 G. Contract for Mediation & Restorative Services Planning Over the past 13 months, the City has been contracting with Mediation & Restorative Services for youth counseling on underage vaping and cannabis consumption. The program is paid for with funding from the Muskegon Social Equity Program. The current contract expires at the end of June and the organization is requesting $40,000 for an additional 12 months. The previous contract was for $47,000 over 13 months. STAFF RECOMMENDATION: To approve the contract with Mediation & Restorative Services. Motion by Vice Mayor St.Clair, second by Commissioner German, to approve the contract with Mediation & Restorative Services. ROLL VOTE: Ayes: Kochin, St.Clair, Johnson, Kilgo, Keener, German, and Gorman Nays: None MOTION PASSES H. Contract for Expungement Clinics with G.U.N.S. Planning The City partnered with G.U.N.S last year to hold a series of expungement clinics. These clinics were well attended and staff wishes to partner with them again for an additional three clinics over the next year. The organization is requesting increased funding this year to cover the costs of follow-up services, surveys and for staff compensation (last year volunteers spent hours pulling iChats, making folders, registering people, making phone calls, and other monitoring duties associated with expungement clinics and wrap around services). These clinics are funded by the Muskegon Social Equity Program. STAFF RECOMMENDATION: To approve contract with G.U.N.S. Motion by Vice Mayor St.Clair, second by Commissioner Kochin, to approve the contract with G.U.N.S. ROLL VOTE: Ayes: Gorman, Kochin, St.Clair, Johnson, Kilgo, Keener, and German Nays: None MOTION PASSES J. Termination of Existing Purchase Agreement & Revised Agreement for the Sale of Lots to EB2 Development Limited Liability Company (Green Rabbit Home Builders) Planning Staff is seeking the termination of the PA for Green Rabbit Home Builders to purchase City-owned vacant lots at 553, 558, 579, 601, 608, & 621 Jackson and 505 Alva, approved 5/28/24 due to clerical errors. Staff is also seeking Page 5 of 8 authorization to sell the same City-owned vacant lots to EB2 Development Limited Liability Company d/b/a Green Rabbit Home Builders. The Purchase Agreement, approved by Commission on 5/28/24, contained errors and omissions in Exhibit A about the eventual combination and split of these lots. Also, Green Rabbit Home Builders must be listed as EB2 Development Limited Liability Company d/b/a Green Rabbit Home Builders. This Purchase Agreement has been re-submitted with corrections made. STAFF RECOMMENDATION: Rescind the authority for the Mayor and Clerk to sign the May 28, 2024, Purchase and Development Agreement and authorization for the Code Coordinator to complete the sale of 553, 558, 579, 601, 608, & 621 Jackson and 505 Alva and now authorize the Code Coordinator to complete the sale of 553, 558, 579, 601, 608, & 621 Jackson and 505 Alva, as described in the revised purchase agreement, and to have the Mayor and Clerk sign both the purchase agreement and the deed. Motion by Commissioner German, second by Vice Mayor St.Clair, to Rescind the authority for the Mayor and Clerk to sign the May 28, 2024, Purchase and Development Agreement and authorization for the Code Coordinator to complete the sale of 553, 558, 579, 601, 608, & 621 Jackson and 505 Alva and now authorize the Code Coordinator to complete the sale of 553, 558, 579, 601, 608, & 621 Jackson and 505 Alva, as described in the revised purchase agreement, and to have the Mayor and Clerk sign both the purchase agreement and the deed. ROLL VOTE: Ayes: German, Gorman, Kochin, St.Clair, Johnson, Kilgo, and Keener Nays: None MOTION PASSES K. Sales Agreement for Nelson House Planning Staff is submitting the formal Purchase Agreement for the previously approved project to relocate the Nelson House. The Muskegon Public Schools Board considered this sales agreement to formally convey the house to the City at their June 4th regular meeting. The target date to move the house to the city- owned lot at 382 West Muskegon Avenue is July 9th, with a rain date of July 10th. STAFF RECOMMENDATION: Motion to approve the Purchase Agreement as presented and to authorize the Mayor and Clerk to sign. Motion by Vice Mayor St.Clair, second by Commissioner Gorman, to approve the Purchase Agreement as presented and to authorize the Mayor and Clerk to sign. ROLL VOTE: Ayes: Keener, German, Gorman, Kochin, St.Clair, Johnson, and Page 6 of 8 Kilgo Nays: None MOTION PASSES 2024-56 PUBLIC HEARINGS A. Request for an Industrial Facilities Exemption Certificate - Forming Technologies, LLC - 2675 Olthoff Drive Economic Development Forming Technologies, LLC has requested an Industrial Facilities Tax Exemption Certificate. The company will be making an investment of $16,000,000 in real property improvements and plans on creating up to 72 jobs over four years as part of the overall project, qualifying them for a 12-year abatement. Forming Technologies, LLC (Form Tech) is a manufacturing facility, founded in November 2004, providing customized pallets, lids, and shipping products using a thermoforming process. In partnership with Bluewater Industrial Development, LLC, Form Tech will begin construction of a new facility starting September 2024. The new 195,000 sq. ft building will house the plastic extrusion and thermoforming business and its associated offices. The total real property investment is $16,000,000. This project will create 72 more jobs over the next four years. Staff Comments: There is an established Industrial Development District on this site since 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 29, 2024, 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 company has turned in all the necessary documents. STAFF RECOMMENDATION: I move 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 Forming Technologies, LLC and to authorize the Mayor and Clerk to sign. The Public Hearing opened to hear and consider any comments from the public. Comments were heard in favor of the exemption from Marla Schneider, President CEO, Greater Muskegon Economic Development. Motion by Commissioner Keener, second by Commissioner Kilgo, 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 Forming Page 7 of 8 Technologies, LLC and to authorize the Mayor and Clerk to sign. ROLL VOTE: Ayes: Kilgo, Keener, German, Gorman, Kochin, St.Clair, and Johnson Nays: None MOTION PASSES B. Transmittal of the 2024-25 Proposed Budget Finance At this time, staff is transmitting to the City Commission the proposed budget for fiscal year 2024-25 which starts July 1, 2024. 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 May 23, 2024, Worksession. A public hearing on the budget was held at the regular Commission meeting on June 11, 2024. City ordinance requires that the budget be adopted by the Commission on or before the second Commission meeting in June. STAFF RECOMMENDATION: To approve the proposed budget for the 2024-25 fiscal year. The Public Hearing opened to hear and consider any comments from the public. No public comments were made. Motion by Commissioner Kilgo, second by Commissioner Keener, to close the Public Hearing and approve the proposed budget for the 2024-25 fiscal year. ROLL VOTE: Ayes: St.Clair, Johnson, Kilgo, Keener, German, Gorman, and Kochin Nays: None MOTION PASSES PUBLIC COMMENT ON NON-AGENDA ITEMS Public comments received. ADJOURNMENT The City Commission meeting adjourned at 8:23 p.m. Respectfully Submitted, Ann Marie Meisch, MMC City Clerk Page 8 of 8
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