City Commission Minutes 08-13-2024

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      CITY OF MUSKEGON
       CITY COMMISSION MEETING
            August 13, 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, August 13, 2024. Pastor
Russell Damm from Oak Crest Church of God 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 Destinee
Keener, Willie German, Jr., Rachel Gorman, Katrina Kochin (arrived at 5:50 p.m.), and
Jay Kilgo. City Manager Jonathan Seyferth, City Attorney John Schrier, and City Clerk
Ann Marie Meisch.

PUBLIC COMMENT ON AGENDA ITEMS
Public comments received.

2024-73 CONSENT AGENDA

    A. Approval of Minutes City Clerk
Approve minutes of the July 23, 2024, City Commission Meeting.
STAFF RECOMMENDATION: Approval of the minutes.
    B. Reimbursement - Purchase Price of 692 W Grand Planning
Reimburse the purchase price of the vacant lot at 692 W Grand. 692 W Grand was
purchased by Ike Dendy in 2022. He is requesting a refund of his purchase price due to
the lot being un-buildable for a residential home. By definition (lot width/square
footage), it is considered build-able, however the topography and proximity to the
Seaway Drive (MDOT) Right of Way made it un-buildable in practical terms.
STAFF RECOMMENDATION: To authorize the refund of $4,575.00 to Ike Dendy for the
purchase price of 692 W Grand and to amend the budget to account for the amount


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refunded.
    C. Sale of 1183 Terrace Planning
Staff is requesting approval of a purchase agreement for 1183 Terrace for $290,000. 1183
Terrace was acquired for $20,000. Formerly a land bank property, previous owners were
unable to make the necessary improvements needed. Originally listed on MLS for
$349,900. An offer for $290,000 was accepted after being listed for more than 6 months.
Staff is seeking permission to approve the purchase agreement and complete the sale.
Total cost for the rehab was $423,018.40.
STAFF RECOMMENDATION: To approve the sale of 1183 Terrace and authorize staff to
sign closing documents.
    D. Sale of 1081 Sophia Planning
Staff is requesting approval of a purchase agreement for 1081 Sophia for $133,920. 1081
Sophia was constructed through the agreement with Dave Dusendang to construct infill
housing with ARPA funding. The offer ($133,920) is over asking price ($129,900) with 3%
seller concessions.
STAFF RECOMMENDATION: To approve the Purchase Agreement for 1081 Sophia for
$133,920.
    E. Sale of 1077 Sophia Planning
Staff is requesting approval of a purchase agreement for 1077 Sophia for $149,900. 1077
Sophia was constructed through an agreement with Dave Dusendang to construct infill
housing with ARPA funding. The offer is listing price ($149,900) with no seller concessions.
STAFF RECOMMENDATION: To approve the Purchase Agreement for 1077 Sophia for
$149,900.
    F. Sale of 1510 Jiroch Planning
Staff is requesting approval of a purchase agreement for 1510 Jiroch for $141,800 with
seller concessions of $6900. 1510 Jiroch was constructed through an agreement with
Dave Dusendang to construct infill housing with ARPA funding. The offer is over the full
listing price ($129,900) with the seller contributing $6900 towards buyers' closing costs,
pre-paid and discount points.
STAFF RECOMMENDATION: To approve the Purchase Agreement for 1510 Jiroch.
    G. Sale of 1732 Terrace. Planning
Staff is requesting approval of a purchase agreement for 1732 Terrace for $243,440. 1732
Terrace was a house that was formerly located at 1761 Clinton, and owned by
Muskegon Public School District. It was previously located on the campus for the new
middle school. MPS approached City staff to move, renovate, and save the house. The
house was listed for $239,900 and an offer for $243,440 with 3% seller concessions was
accepted. Staff is seeking permission to approve the purchase agreement and
complete the sale. Total cost for the rehab was $234,108.05. Note that this property is
part of the scattered site brownfield project. Any difference in sales price and
renovation cost will be recovered via tax capture.



                                   Page 2 of 17
STAFF RECOMMENDATION: To approve the sale of 1732 Terrace and authorize staff to
sign closing documents.
    H. Sale of 1192 and 1194 Pine St. Planning
Staff is requesting approval of a purchase agreement for 1192 and 1194 Pine Street for
$350,000. Both 1192 and 1194 Pine were acquired through tax sale. The properties
contain two separate parcels and houses. However, the two share a yard and off-street
parking. They were sold together for $350,000 and are included in the same purchase
agreement. Total projects cost are $477,317.87 Note that this property is part of the
scattered site brownfield project. Any difference in sales price and renovation cost will
be recovered via tax capture.
STAFF RECOMMENDATION: To approve the sale of 1192 and 1194 Pine Street, and
authorize staff to sign closing documents.
    I.   Amendment to the planned unit development (PUD) at Harbor 31 to include the
         addition of a fence at 140-146 Viridian Dr. SECOND READING Planning
The Lakefront Condo Association (LFCA) at 140-146 Viridian Drive has requested to
amend the Harbor 31 PUD to allow for a fence to be placed on their property. The
request is for a four-foot, black, aluminum fence (see details in attachment/memo from
applicant). There would not be any gates on the fence and it would be open near the
driveway approach and along the boardwalk. The applicant is requesting the fence to
keep people from trespassing on the property to access the boardwalk. The Planning
Commission unanimously recommended approval of the fence.
STAFF RECOMMENDATION: To approve the amendment to the PUD as presented.
    L. DWRF ARP Grant Agreement Public Works
Staff requests authorization to enter into an agreement with the State of Michigan for
$539,000 of ARP dollars as a part of the 2024 DWRF project funding package. As a part
of the 2024 Drinking Water Revolving Fund (DWRF) project package which the
Commission has discussed several times and approved portions of already, $539,000 in
American Rescue Plan dollars have been offered by the State of Michigan. This grant is
a component of how the state is paying for the approximately 50% in "principle
forgiveness" being offered to the project; it does not represent an additional grant
compared to what has been discussed previously. Staff requests authorization to sign
the agreement due to electronic signatures.
STAFF RECOMMENDATION: Authorize staff to enter into an agreement with the State of
Michigan for $539,000 of ARP dollars as a part of the 2024 DWRF project funding
package.
    N. MDOT Contract Signatory Authorization Resolution Public Works
Staff requests adoption of the resolution designating the Contract Administrator,
Maintenance Superintendent and authorized contract signatories for the renewal of our
maintenance contract with MDOT. MDOT is in the process of updating the
maintenance contract that authorizes the City to perform maintenance on state
trunklines (such as Shoreline Drive) and to bill the state for reimbursement of that work.


                                  Page 3 of 17
 At this early stage, MDOT has requested adoption of the resolution which names Dan
VanderHeide, Director of Public Works, as the Contract Administrator and Maintenance
Supervisor. Furthermore, they have requested the City name authorized staff who will
sign the contract when ready, and due to electronic signature requirements, staff has
recommended Dan VanderHeide, Director of Public Works, and Ann Meisch, City Clerk
as signatories. This resolution does not approve the contract; the final version of the
contract will be brought before the Commission for approval once available. This
resolution simply names certain staff in roles that will be referred to in the final contract
document.
STAFF RECOMMENDATION: Adopt the resolution naming Director of Public Works Dan
VanderHeide as the Contract Administrator and Maintenance Superintendent with
regard to maintenance contracts with MDOT, and names Dan VanderHeide and City
Clerk Ann Meisch as authorized signers of the contract, when available.
    O. Equipment Purchase - Beach Tractor Public Works
Staff is requesting authorization to purchase a new beach tractor from J & J Farm Sales
and Services. Every day during beach season, a tractor-towed beach cleaner is used to
maintain the Pere Marquette beach. A new beach tractor was purchased in 2017 that
ultimately proved to be underpowered. This made the tractor difficult to operate and
resulted in frequent equipment failures. Staff has worked diligently for the last 7 years to
keep this tractor operational, but overall, it has been unreliable with higher than
expected maintenance costs.

For the beach cleaning this year, a more powerful Kioti HX1151 tractor is being rented
from J & J Farm Sales and Services to see if improved power can improve performance.
Feedback from staff has been positive. Being more powerful than the previous tractor
makes the Kioti tractor better suited for the job. The City’s Equipment Operators have
noted its easier operation, and staff expects this tractor to have increased reliability and
reduced maintenance costs.

The biweekly rental rate for the Kioti HX1151 tractor is $2,000, with J & J offering that half
of each rental fee be credited towards the purchase of the tractor. The cost for this
tractor and accessories totals $89,730.00 under the Sourcewell contract. Upgrading the
original tires to beach tires cost an additional $6,500. The City is receiving $10,000 as the
trade-in value of the old tractor and $9,000 in credits from the rental payments. The
purchase price is $77,230.00. This expenditure is a budgeted equipment purchase for FY
24-25.
STAFF RECOMMENDATION: Authorize staff to purchase a new beach tractor from J & J
Farm Sales and Services for $77,230.00.
    P. Approval of a Neighborhood Enterprise Zone Certificate – Building 6, 920
       Washington Ave Economic Development
Shaw Walker Opportunity Business 2, LLC is requesting the approval of a Neighborhood




                                    Page 4 of 17
Enterprise Zone (NEZ) for 15 years for the redevelopment of building 6, floors 1-5 located
at 920 Washington Ave. An application for a Neighborhood Enterprise Zone Certificate
has been received from Shaw Walker Opportunity Business 2, LLC for 69 residential units
in their proposed Shaw Walker redevelopment plan. The estimated project cost is
$520,546 per unit. The property was approved as a Neighborhood Enterprise Zone
District on September 13, 2016.

The project is part of the overall Shaw Walker redevelopment.
STAFF RECOMMENDATION: I move to approve the Neighborhood Enterprise Zone
certificate for a duration of 15 years at 920 Washington Ave (building 6, floors 1-5).
    Q. Approval of a Neighborhood Enterprise Zone Certificate – Building 4, 920
       Washington Ave Economic Development
Shaw Walker Opportunity Business 2, LLC is requesting the approval of a Neighborhood
Enterprise Zone (NEZ) for 15 years for the redevelopment of building 4, floors 2-4 located
at 920 Washington Ave. An application for a Neighborhood Enterprise Zone Certificate
has been received from Shaw Walker Opportunity Business 2, LLC for 16 apartment units
in their proposed Shaw Walker redevelopment plan. The estimated project cost is
$615,917 per unit. The property was approved as a Neighborhood Enterprise Zone
District on September 13, 2016.

The project in Building 4 will consist of redeveloping floors 2-4 into 16 residential rental
units. The project is part of the overall Shaw Walker redevelopment.
STAFF RECOMMENDATION: I move to approve the Neighborhood Enterprise Zone
certificate for a duration of 15 years at 920 Washington Ave (building 4, floors 2-4).
    R. Approval of a Neighborhood Enterprise Zone Certificate – Building 3, 920
       Washington Ave. Economic Development
Shaw Walker Opportunity Business 2, LLC is requesting the approval of a Neighborhood
Enterprise Zone (NEZ) for 15 years for the redevelopment of building 3, floors 1-5 located
at 920 Washington Ave. An application for a Neighborhood Enterprise Zone Certificate
has been received from Shaw Walker Opportunity Business 2, LLC for 327 residential units
in their proposed Shaw Walker redevelopment plan. The estimated project cost is
$249,772,000. The property was approved as a Neighborhood Enterprise Zone District on
September 13, 2016.

The project at Building 3 will consist of a complete renovation of approximately 270,785
square feet of existing space into 327 residential rental units. These units will be offered
to income-qualified households with an annual household income of not more than
100% of the area median income. The total estimated project cost is $249,772 per unit.

The project is part of the overall Shaw Walker redevelopment.
STAFF RECOMMENDATION: I move to approve the Neighborhood Enterprise Zone
certificate for a duration of 15 years at 920 Washington Ave (building 3, floors 1-5).


                                    Page 5 of 17
    S. Approval of a Neighborhood Enterprise Zone Certificate – Building 5, 920
       Washington Ave. & 965 W. Western Ave. Economic Development
Shaw Walker Opportunity Business 1, LLC and Shaw Walker Opportunity Business 2, LLC is
requesting the approval of a Neighborhood Enterprise Zone (NEZ) for 15 years for the
redevelopment of building 5 located at 920 Washington Ave. and 965 W. Western
Ave. An application for a Neighborhood Enterprise Zone Certificate has been received
from Shaw Walker Opportunity Business 1 LLC, Shaw Walker Opportunity Business 2, LLC
for 89 apartment units in their proposed Shaw Walker redevelopment plan. The
developers are proposing to redevelop all five floors of building 5. The estimated project
cost is $243,289 per unit. The property was approved as a Neighborhood Enterprise Zone
District on September 13, 2016.

The project is part of the overall Shaw Walker redevelopment.
STAFF RECOMMENDATION: I move to approve the Neighborhood Enterprise Zone
certificate for a duration of 15 years at 920 Washington Ave. and 965 W. Western Ave.
(building 5, floors 1-5).
    T.   Request to revoke the Obsolete Property Rehabilitation Exemption Certificate at
         920 Washington Ave. Economic Development
Shaw Walker QOZB 2, LLC is requesting the revocation of the existing OPRA Certificate
(#3-16-0027) at 920 Washington Ave. The existing certificate was approved on June 27,
2023, by P&G Holdings NYC LLC (prior owner). The project never commenced. The
current owner is proposing a new project that includes a complete redevelopment of
the existing Shaw Walker facility and intends to submit a new application for specific
components of the facility.

OPRA: “125.2792 Revocation of certificate; findings; request for revocation or
reinstatement of certificate.
Sec. 12. (2) Upon receipt of a request by certified mail to the legislative body of the
qualified local governmental unit by the holder of an obsolete property rehabilitation
exemption certificate requesting revocation of the certificate, the legislative body of
the qualified local governmental unit may, by resolution, revoke the certificate.

STAFF RECOMMENDATION: I move to approve the revocation of the Obsolete Property
Rehabilitation Exemption Certificate at 920 Washington Ave. and have the Mayor and
City Clerk sign the resolution and submit it to the State Tax Commission.
    U. Concur with CRC Recommendation to Accept Resignation and Make
       Appointments City Clerk
To concur with CRC recommendation to accept the resignation of Kimi George from
the Historic District Commission and to appoint Corbin Davis as a member with
occupational or financial interest in one or more of the historic districts. To appoint
Jackie Knowlton to the Lakeside Business Improvement District as a member with
assessed property or their representative.


                                  Page 6 of 17
STAFF RECOMMENDATION: To accept the resignation of Kimi George from the Historic
District Commission, appoint Corbin Davis to the Historic District Commission, and
appoint Jackie Knowlton to the Lakeside Business Improvement District.

Motion by Commissioner Gorman, second by Vice Mayor St.Clair to adopt the Consent
Agenda minus items J, K, and M.
ROLL VOTE:    Ayes: Gorman, St.Clair, Johnson, Kilgo, Keener, and German
              Nays: None
MOTION PASSES

2024-74 ITEMS REMOVED FROM THE CONSENT AGENDA

    J. Request for a planned unit development (PUD) at 920 Washington Avenue, 965
       W. Western Avenue, and 1330 Division Street SECOND READING Planning
The redevelopment plans include 450 apartments, 70 condominiums, 37 townhouses
and over 20,000 sf of commercial space. The Planning Commission unanimously
recommended approval of the request with the following conditions:
1. The applicant receives a stormwater permit from the Engineering Department.
2. Bicycle racks are added.
3. Warning signage will be required for the two mid-block crossings on Division St.
4. All utility plans must be approved by the Engineering Department.
STAFF RECOMMENDATION: To approve the request for the PUD at 920 Washington, 965
W Western, and 1330 Division St with the following conditions:
1. The applicant receives a stormwater permit from the Engineering Department.
2. Bicycle racks are added.
3. Warning signage will be required for the two mid-block crossings on Division St.
4. All utility plans must be approved by the Engineering Department.

Motion by Commissioner German, second by Commissioner Kilgo, to approve the
request for the PUD at 920 Washington, 965 W. Western, and 1330 Division St. with the
following conditions:
1. The applicant receives a stormwater permit from the Engineering Department.
2. Bicycle racks are added.
3. Warning signage will be required for the two mid-block crossings on Division St.
4. All utility plans must be approved by the Engineering Department.
ROLL VOTE:    Ayes: St.Clair, Johnson, Kilgo, Keener, German, Gorman, and Kochin
              Nays: None
MOTION PASSES
    K. Request to amend the planned unit development (PUD) at 3400, 3460, 3474



                                 Page 7 of 17
       Wilcox Avenue, 1875 Waterworks Road, and 1490 Edgewater Street (the
       Docks). SECOND READING Planning
The plans have been amended to develop around areas that have been declared as
established wetlands. There will be a total of 240 residential units and a community
building with retail/restaurant space. The Planning Commission unanimously
recommended approval of the amended PUD with the following conditions:


   1. The applicant receives a stormwater permit from the Engineering Department.
   2. All utility plans are reviewed and approved by the Engineering Department
   3. Lane widths of streets are reduced to 9 or 10 feet subject to the Engineering
      Department.
   4. Bulb outs are eliminated on road A.
   5. Road C will be connected back to road B.
   6. The parking lot to the southern marina parking lot will be revised as discussed.
   7. Landscaping areas inside of parking areas and streets will be privately
      maintained.
   8. A public/private street map will be provided and describe the ownership as
      discussed with all privately-owned roadways being publicly accessible.
   9. A landscaping plan is approved by the Planning Department.

Conditions 4, 5, and 6 have been addressed and reflected on the revised plans in the
packet.
STAFF RECOMMENDATION: To approve the request to amend the PUD with the following
conditions:

   1. The applicant receives a stormwater permit from the Engineering Department.
   2. All utility plans are reviewed and approved by the Engineering Department
   3. Lane widths of streets are reduced to 9 or 10 feet subject to the Engineering
      Department.
   4. Landscaping areas inside of parking areas and streets will be privately
      maintained.
   5. A public/private street map will be provided and describe the ownership as
      discussed with all privately-owned roadways being publicly accessible.
   6. A landscaping plan is approved by the Planning Department.


Motion by Commissioner German, second by Commissioner Kilgo, to approve the
request to amend the PUD with the following conditions:

   1. The applicant receives a stormwater permit from the Engineering Department.
   2. All utility plans are reviewed and approved by the Engineering Department
   3. Lane widths of streets are reduced to 9 or 10 feet subject to the Engineering



                                 Page 8 of 17
      Department.
   4. Landscaping areas inside of parking areas and streets will be privately
      maintained.
   5. A public/private street map will be provided and describe the ownership as
      discussed with all privately-owned roadways being publicly accessible.
   6. A landscaping plan is approved by the Planning Department.

MOTION AMENDED
Motion amended by Commissioner German, second by Commissioner Kilgo, to amend
the PUD to add an additional condition that off-street parking, inclusive of handicap
parking, be placed to the north of the structural retaining wall at Public Road E‘s final
northerly bend.

ROLL VOTE ON AMENDMENT
ROLL VOTE:    Ayes: Johnson, Kilgo, Keener, and German
              Nays: St.Clair, Gorman, and Kochin
AMENDED MOTION PASSES

ROLL VOTE ON ORIGINAL MOTION WITH AMENDMENT:
ROLL VOTE:    Ayes: German, Gorman, Kochin, St.Clair, Johnson, Kilgo, and Keener
              Nays: None
MOTION PASSES
    M. Contract Award: H92218 Southern Ave, Lakeshore to Seaway DPW- Engineering
Staff requests authorization to enter into a contract with Kamminga & Roodvoets, Inc.
(K&R) in the amount of $3,050,306.60 for road reconstruction work on Southern Avenue
from Lakeshore Drive to Seaway Drive.
Bids were solicited for a construction project to reconstruct Southern Ave, from
Lakeshore to Seaway. K&R provided the low bid. The bids did come in over budget.
However, the consistency in the bid prices from firm to firm suggests the pricing is
accurate. This project is part of a MDOT Fed Aid Buyout program in which $748,530.00 in
federal gas tax dollars was received for the project. The remainder will be funded by
the City's share of state gas tax distributions, the water fund (for lead service line
replacements and other connection work) and the sewer fund (for spot repair work).
STAFF RECOMMENDATION: Authorize staff to enter into a contract with Kamminga &
Roodvoets, Inc in the amount of $3,050,306.60 for the reconstruction of Southern
Avenue from Lakeshore Drive to Seaway Drive.

Motion by Commissioner Kilgo, second by Commissioner German, to authorize staff to
enter into a contract with Kamminga & Roodvoets, Inc in the amount of $3,050,306.60 for



                                  Page 9 of 17
the reconstruction of Southern Avenue from Lakeshore Drive to Seaway Drive.
ROLL VOTE:     Ayes: None
               Nays: Keener, German, Gorman, Kochin, St.Clair, Johnson, and Kilgo
MOTION FAILS

Motion by Commissioner Kilgo, second by Commissioner German, to authorize staff to
enter into a contract with Terra Contractors, LLC in the amount of $3,135,758.50, for the
reconstruction of Southern Avenue from Lakeshore Drive to Seaway Drive.
ROLL VOTE:     Ayes: Kochin, St.Clair, Jonson, Kilgo, Keener, German, and Gorman
               Nays:
MOTION PASSES
2024-75 PUBLIC HEARINGS

    A. Request, Issuance of a Commercial Rehabilitation Certificate, Muskegon
       Midtown Center, LLC 1095 Third St. Economic Development
Pursuant to Public Act 210 of 2005, as amended, Midtown Center, LLC is requesting the
issuance of a Commercial Rehabilitation Certificate (PA 210) to support further
development at 1095 Third St. On May 14, 2024, the City Commission approved the
establishment of a Commercial Rehabilitation District. Since then, City staff has worked
closely with the developer to finalize a purchase agreement with the city, which was
approved on June 25, 2024. The developer is now seeking the issuance of a
Commercial Rehabilitation Certificate to further facilitate this development. Issuance of
this incentive will freeze the taxable value of the building and exempt the new real
property investment from local taxes.
The structure will be renovated to accommodate mixed uses, including residential,
retail, and office spaces. The project will also support low- to moderate-income housing
by accepting housing choice vouchers. The total capital investment exceeds $10
million, with 30 new permanent jobs and 100 construction jobs expected to be created
during the rehabilitation.
STAFF RECOMMENDATION: I move to close the public hearing and approve/deny the
resolution for the issuance of a Commercial Rehabilitation Certificate at 1095 Third St.
and authorize the City Clerk and Mayor to sign.
The Public Hearing opened to hear and consider any comments from the public. No
public comments were made.

Motion by Vice Mayor St.Clair, second by Commissioner Kilgo, to close the public
hearing and approve the resolution for the issuance of a Commercial Rehabilitation
Certificate at 1095 Third St. and authorize the City Clerk and Mayor to sign.
ROLL VOTE:     Ayes: Gorman, Kochin, St.Clair, Johnson, Kilgo, Kener, and German


                                 Page 10 of 17
              Nays: None
MOTION PASSES

    B. Request for the Establishment of a Commercial Rehabilitation District, 349 W.
       Webster, LLC, 349 W. Webster Ave. Economic Development
 Pursuant to Public Act 210 of 2005, as amended, 349 W. Webster, LLC is requesting the
establishment of a Commercial Rehabilitation District (PA 210) at 349 W. Webster Ave. to
support further development at 349 W. Webster Ave. The developer is requesting the
establishment of a Commercial Rehabilitation District (PA 210) at 349 W. Webster Ave.
The creation of the district will allow the building owner to apply for a Commercial
Rehabilitation Certificate, which will freeze the taxable value of the building and
exempt the new real property investment from local taxes.
The project involves renovating the former Muskegon Public Schools administrative
offices to accommodate mixed uses, short term rentals, lodging, retail, and office
spaces. The renovation will preserve key historic components while repairing the exterior
façade. The total capital investment is over $11 million, and the project is expected to
create 5 new jobs and 100 construction jobs during rehabilitation.
STAFF RECOMMENDATION: I move to close the public hearing and approve the
resolution establishing a Commercial Rehabilitation District at 349 W. Webster Ave. and
authorize the City Clerk and Mayor to sign.

The Public Hearing opened to hear and consider any comments from the public on the
establishment of the district and the issuance of a certificate. Frank Peterson, developer
for the project, explained the project.

Motion by Commissioner German, second by Commissioner Kilgo, to close the public
hearing.
ROLL VOTE:    Ayes: German, Gorman, Kochin, St.Clair, Johnson, Kilgo, and Keener
              Nays:
MOTION PASSES

Motion by Vice Mayor St.Clair, second by Commissioner Gorman, to approve the
resolution establishing a Commercial Rehabilitation District at 349 W. Webster Ave. and
authorize the City Clerk and Mayor to sign.
ROLL VOTE:    Ayes: Keener, German, Gorman, Kochin, St.Clair, Johnson, and Kilgo
              Nays: None
MOTION PASSES
    C. Public Hearing, Issuance of a Commercial Rehabilitation Certificate, 349 W.
       Webster, LLC, 349 W. Webster Ave. Economic Development


                                 Page 11 of 17
Pursuant to Public Act 210 of 2005, as amended, 349 W. Webster, LLC is requesting the
issuance of a Commercial Rehabilitation Certificate (PA 210) at 349 W. Webster Ave. to
support further development at 349 W. Webster Ave. The developer is requesting the
issuance of a Commercial Rehabilitation Certificate (PA 210) at 349 W. Webster Ave.
The approval of this certificate is contingent to the approval of the Commercial
Rehabilitation District. Issuance of this incentive will freeze the taxable value of the
building and exempt the new real property investment from local taxes.

The project involves renovating the former Muskegon Public Schools administrative
offices to accommodate mixed uses, short term rentals, lodging, retail, and office
spaces. The renovation will preserve key historic components while repairing the exterior
façade. The total capital investment is over $11 million, and the project is expected to
create 5 new jobs and 100 construction jobs during rehabilitation.
STAFF RECOMMENDATION: I move to close the public hearing and approve the
resolution establishing a Commercial Rehabilitation Certificate at 349 W. Webster Ave.
and authorize the City Clerk and Mayor to sign.

Motion by Commissioner Kochin, second by Vice Mayor St.Clair, to approve the
resolution establishing a Commercial Rehabilitation Certificate for 349 W. Webster, LLC,
at 349 W. Webster Ave. and authorize the City Clerk and Mayor to sign.
ROLL VOTE:    Ayes: Kilgo, Keener, German, Gorman, Kochin, St.Clair, and Johnson
              Nays: None
MOTION PASSES
    F. Public Hearing - Request to Establish an Obsolete Property District - 965 W.
       Western Economic Development
Pursuant to Public Act 146 of the Michigan Public Acts of 2000, Shaw Walker Opportunity
Zone Business 2, LLC, has requested the establishment of an Obsolete Property District at
965 Washington Ave. to support further development. The developer is requesting the
establishment of an Obsolete Property District at 965 Washington Ave. The establishment
of the Obsolete Property District would allow them to apply for an Obsolete Property
Rehabilitation Exemption Certificate.

This project is part of the larger Shaw Walker redevelopment initiative. At this site,
building 7 will be converted into an approximately 52,000-square-foot enclosed parking
garage. The building is currently being used as warehouse storage. The total capital
investment is over $1.5 million, and the project is expected to create 200 jobs as a result
of the rehabilitation.
STAFF RECOMMENDATION: I move to close the public hearing and approve/deny the
resolution establishing an Obsolete Property District at 965 W. Western Ave. and
authorize the City Clerk and Mayor to sign.
The Public Hearing opened to hear and consider any comments from the public. No



                                  Page 12 of 17
public comments were made.

Motion by Vice Mayor St.Clair, second by Commissioner Kilgo, to close the public
hearing and approve the resolution establishing an Obsolete Property District at 965 W.
Western Ave. and authorize the City Clerk and Mayor to sign.
ROLL VOTE:    Ayes: Johnson, Kilgo, Keener, German, Gorman, Kochin, and St.Clair
              Nays: None
MOTION PASSES
    D. Public Hearing - Request to issue an Obsolete Property Certificate, Shaw Walker
       Opportunity Zone Business 2, LLC- Building 4, 920 Washington Ave. Economic
       Development
Pursuant to Public Act 146 of the Michigan Public Acts of 2000, Shaw Walker Opportunity
Zone Business 2, LLC, has requesting the issuance of an Obsolete Property Certificate at
920 Washington Ave. to support further development. The developer is requesting the
issuance of an Obsolete Property Certificate for Building 4 at 920 Washington Ave. If
granted, the property taxes would be frozen at the pre-rehabilitation rate for the
duration of the certificate. The Obsolete Property Rehabilitation District for this property
was established on July 12, 2016.

The project involves converting the first floor of Building 4 into commercial retail space
available for lease. The developer aims to attract businesses such as restaurants,
markets, fitness centers, daycare, hair salons, massage therapists, and others that will
complement the residential components of the building. The total capital investment is
over $4 million, and the project is expected to create 200 jobs as a result of the
rehabilitation.

This project is part of the larger Shaw Walker redevelopment initiative.
STAFF RECOMMENDATION: I move to close the public hearing and approve/deny the
resolution for the issuance of an Obsolete Property Certificate for Building 4 at 920
Washington Ave. and authorize the City Clerk and Mayor to sign.

Motion by Commissioner Kilgo, second by Vice Mayor St.Clair, to approve the
resolution for the issuance of an Obsolete Property Certificate for 12 years for Building 4
at 920 Washington Ave. and authorize the City Clerk and Mayor to sign.
ROLL VOTE:    Ayes: Kochin, St.Clair, Johnson, Kilgo, Keener, German, and Gorman
              Nays: None
MOTION PASSES
    E. Public Hearing - Request to issue an Obsolete Property Certificate, Shaw Walker
       Opportunity Zone Business 2, LLC- Building 2, 920 Washington Ave. Economic
       Development


                                  Page 13 of 17
Pursuant to Public Act 146 of the Michigan Public Acts of 2000, Shaw Walker Opportunity
Zone Business 2, LLC, has requesting the issuance of an Obsolete Property Certificate at
920 Washington Ave. to support further development. The developer is requesting the
issuance of an Obsolete Property Certificate for Building 2 at 920 Washington Ave. If
granted, the property taxes would be frozen at the pre-rehabilitation rate for the
duration of the certificate. The Obsolete Property Rehabilitation District for this property
was established on July 12, 2016.

The project involves converting the first floor of Building 2 into approximately 11,500
square feet of commercial retail space available for lease. The developer aims to
attract businesses such as restaurants, markets, fitness centers, daycare, hair salons,
massage therapists, and others that will complement the residential components of the
building. The total capital investment is over $1.1 million, and the project is expected to
create 200 jobs as a result of the rehabilitation.

This project is part of the larger Shaw Walker redevelopment.
STAFF RECOMMENDATION: I move to close the public hearing and approve/deny the
resolution for the issuance of an Obsolete Property Certificate for Building 2 at 920
Washington Ave. and authorize the City Clerk and Mayor to sign.

Motion by Commissioner Kilgo, second by Vice Mayor St.Clair, to approve the
resolution for the issuance of an Obsolete Property Certificate for 12 years for Building 2
at 920 Washington Ave. and authorize the City Clerk and Mayor to sign. .
ROLL VOTE:    Ayes: Gorman, Kochin, St.Clair, Johnson, Kilgo, Keener, and German
              Nays:
MOTION PASSES

    G. Public Hearing - Request to issue an Obsolete Property Certificate, Shaw Walker
       Opportunity Zone Business 2, LLC- Building 7, 965 W. Western Economic
       Development
Pursuant to Public Act 146 of the Michigan Public Acts of 2000, Shaw Walker Opportunity
Zone Business 2, LLC, has requested the issuance of an Obsolete Property Certificate at
920 Washington Ave. to support further development. The developer is requesting the
issuance of an Obsolete Property Certificate for Building 7 at 965 W. Western. If granted,
the property taxes would be frozen at the pre-rehabilitation rate for the duration of the
certificate. The approval of the certificate is contingent upon the approval of the
Obsolete Property Rehabilitation District.

The project involves converting Building 7 into an approximately 52,000-square-foot
enclosed parking garage. The building is currently being used as warehouse storage.
The total capital investment is over $1.5 million, and the project is expected to create



                                  Page 14 of 17
200 jobs as a result of the rehabilitation.

This project is part of the larger Shaw Walker redevelopment initiative.
STAFF RECOMMENDATION: I move to close the public hearing and approve/deny the
resolution for the issuance of an Obsolete Property Certificate for Building 7 at 965 W.
Western Ave. and authorize the City Clerk and Mayor to sign.

Motion by Commissioner Kochin, second by Commissioner Kilgo, to approve the
resolution for the issuance of an Obsolete Property Certificate for 12 years for Building 7
at 965 W. Western Ave. and authorize the City Clerk and Mayor to sign.
ROLL VOTE:     Ayes: German, Gorman, Kochin, St.Clair, Johnson, Kilgo, and Keener
               Nays: None
MOTION PASSES

    H. Public Hearing- Request to Create a new Neighborhood Enterprise Zone District
       at 930 Washington Ave. Economic Development
Shaw Walker Opportunity Business 3, LLC is requesting to create a Neighborhood
Enterprise Zone District at 930 Washington Ave. Pursuant to Public Act 147 of the
Michigan Public Acts of 1992, the developer of the Shaw Walker project has requested
to create a new Neighborhood Enterprise Zone (NEZ) district for the parcel at 930
Washington Ave. Properties located in this NEZ district will be eligible to apply for NEZ
certificates, which will lower the residential property taxes on new construction.
STAFF RECOMMENDATION: I move to close the public hearing and approve the
Neighborhood Enterprise Zone District at 930 Washington Ave. and authorize the City
Clerk and Mayor to sign the district resolution.
The Public Hearing opened to hear and consider any comments from the public. No
public comments were made.

Motion by Commissioner Kochin, second by Vice Mayor St.Clair, to close the public
hearing and approve the Neighborhood Enterprise Zone District at 930 Washington Ave.
and authorize the City Clerk and Mayor to sign the district resolution.
ROLL VOTE:     Ayes: Keener, German, Gorman, Kochin, St.Clair, and Johnson
               Nays: None
MOTION PASSES

2024-76 NEW BUSINESS

    A. Special Event - Ballin' on the Beach DPW- Parks and Recreation
Ballin on the Beach is a new event to Pere Marquette. Originally held in 2023 near the


                                    Page 15 of 17
kite shack, this year the event applied to move to the parking lot near the bathhouse
and add a beer tent. Ballin on the Beach is organized by Peter Carroll with Circle C
Trucking. In 2023, there were 26 bobtail trucks (semi trucks without a trailer), one truck
with trailer, a food truck, and a DJ setup in the parking lot near the roundabout. This
year the event is looking to expand, and with these significant changes staff is following
the special event policy for this event - to be approved by the City Commission.

For the 2024 event, the request is to utilize the larger parking lot near Indiana Ave from
September 27-29, 2024 (6-10 pm Friday, 9 am-10 pm Saturday, and leave Sunday
around noon). The organizers are applying to have 42 bobtail trucks, 4 trucks with
trailers, 3 food trucks, 2 live bands, a bubble house, and a beer tent. Staff met with Mr.
Carroll to review requirements and concerns with several requests. The event is aware of
the requirements for the proposed fire pit needing to be at least 25 ft from any structure
and a fencing requirement for a liquor license. There are additional safety concerns
with the amount of infrastructure and attendees in a small space. The addition of a
beer tent changes the dynamics of the event from the previous year. Staff is also
concerned allowing trailers could cause damage to the roundabout or a trailer getting
stuck in the sand and creating a traffic hazard. Staff also acknowledges how long the
event season has become and knows many residents would not wish to extend it any
longer.

Mr. Carroll has been very appreciative of the opportunity to apply for this event and is
receptive to changing the event as needed.
STAFF RECOMMENDATION: Approve the Ballin on the Beach event from 8 a.m.
September 28 until 2 p.m. September 29 with no alcohol or trucks with trailers and
amplified sound must end by 9 p.m.

Motion by Commissioner Goreman, second by Commissioner Keener, to approve the
Ballin on the Beach event from 8 a.m., September 28, until 2 p.m., September 29, with no
alcohol or trucks with trailers and amplified sound must end by 9 p.m.

ROLL VOTE:    Ayes: Kilgo, Keener, German, and St.Clair
              Nays: Gorman, Kochin, and Johnson
MOTION PASSES

ANY OTHER BUSINESS
Commissioner German stated he will be in Chicago August 19-27 representing the
National Democratic Party, 3rd Congressional District. Commissioner Keener thanked
the Commission, Planning, Police and Constituents for their support while she was
absent and dealing with personal matters. Commissioner Kochin thanked the City
Manager and Police for their assistance with a public safety matter. Mayor Johnson
stated that Saturday, August 17, at 1:00 p.m., at the Farmers Market there will be a


                                 Page 16 of 17
celebration of 100 years for Golden Heart Fruit Farm as well as 10 year celebration of our
Farmers Market at their current location.

PUBLIC COMMENT ON NON-AGENDA ITEMS
Public comments received.

ADJOURNMENT
The City Commission meeting adjourned at 8:17 p.m.




                                       Respectfully Submitted,



                                       Ann Marie Meisch, MMC City Clerk




                                 Page 17 of 17

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