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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 Page 1 of 17 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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