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CITY OF MUSKEGON
CITY COMMISSION MEETING
October 22, 2024 @ 5:30 PM
MUSKEGON CITY COMMISSION CHAMBERS
933 TERRACE STREET, MUSKEGON, MI 49440
MINUTES
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, October 22,
2024. Pastor Mackenzie Jager, from First Presbyterian 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
Jay Kilgo, Willie German, Jr., Rachel Gorman, Katrina Kochin, and Destinee
Keener (arrived at 5:55 p.m.), City Manager Jonathan Seyferth, City Attorney
John Schrier, and City Clerk Ann Marie Meisch
2024-87 HONORS, AWARDS, AND PRESENTATIONS
A. Introduction of New Staff to Community and Neighborhood Services-
Lakshmee Persaud Community & Neighborhood Services
Welcoming Lakshmee Persaud to the City of Muskegon as our New Community
Development Specialist for the Community and Neighborhood Services
Department.
PUBLIC COMMENT ON AGENDA ITEMS
Public comments received.
2024-88 CONSENT AGENDA
B. Land Bank - Trade Parcels Planning
The Muskegon County Land Bank sold 1694 Pine to the City in error. They would
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like to trade that property for 1221 Sanford.
1694 Pine was purchased by Development Services from the Muskegon County
Land Bank for $3,500. We were then notified that this address was already
pledged in a Purchase Agreement to Allen Edwin in their workforce rental
program. The Land Bank proposed a trade for 1221 Sanford. Development
Services is agreeable to that trade. 1221 Sanford is of similar size and condition.
The Land Bank will cover any costs associated with the transaction.
STAFF RECOMMENDATION: To authorize the Code Coordinator, Samantha Pulos,
to facilitate the trade of 1694 Pine and 1221 Sanford, with the Muskegon
County Land Bank.
E. Parks Restroom Improvements DPW- Parks
Staff is requesting authorization to contract with the low bidder, Muskegon
Quality Builders, in the amount of $38,525 for park restroom improvements for
McCrea, Beukema & Seyferth Park.
Through our parks master plan survey, we received feedback that our residents
desire improvements to some of our park restrooms. The most in need at this
time (and the parks with the highest amount of feedback for improvements)
are Seyferth, Beukema and McCrea. $100,000 was budgeted through the
adopted Parks Capital Improvement Plan for these improvements. Upgrades
include installing porcelain fixtures and removing stainless steel, masonry work
for ADA improvements and installing new partitions, to name a few. Our
department would like to select the lowest bidder, Muskegon Quality Builders,
at $38,525. The remainder of the budgeted funds will be redirected to new
and other capital improvement projects as needed.
Bid Tab
Muskegon Quality Builders: $38,525
Bultsma Construction Co.: $69,731
STAFF RECOMMENDATION: Authorize staff to contract with Muskegon Quality
Builders in the amount of $38,525 for park restroom improvements for McCrea,
Beukema & Seyferth Park.
F. Reese Pavilion Construction DPW- Parks
Staff seeks authorization to enter into a contract with Patron Construction in the
amount of $51,010 for construction of a pavilion at Reese Park.
The Parks department recently applied for and received a CDBG grant from
the Economic Development division for $20,000 for a pavilion at Reese Park. The
demand for this project was first raised by the Boys & Girls Clubs of Muskegon
Lakeshore. Our local BGC holds a summer camp at this location and a shaded
outdoor area would greatly improve the quality of their program as we do not
have usable space at the park that is out of the elements. The pavilion will also
be an affordable rental option for our residents (between $30 to $60), as this
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park has great amenities for birthday parties or family gatherings. This project is
included in the adopted Parks Capital Improvement Plan and the cost above
the CDBG grant will some from funds devoted to that effort. Staff recommends
the lowest bidder, Patron Construction, for $51,010.
Bid Tab
Patron Construction: $51,010
North Shore Property Solutions: $59,500
Muskegon Quality Builders: $74,851
Sinclair Recreation: $78,880
American Athletix: $108,137
Midwest Construction Group: $176,385
STAFF RECOMMENDATION: Authorize staff to enter into a contract with Patron
Construction in the amount of $51,010 for construction of a pavilion at Reese
Park.
G. Resolution to Urge the United States Department of the Interior to
Approve the Petition of the Grand River Bands of Ottawa Indians for
Federal Acknowledgment. Manager's Office
Seeking commission approval of a resolution to urge the United States
Department of the Interior to approve the petition of the Grand River Bands of
Ottawa Indians for Federal Acknowledgment.
STAFF RECOMMENDATION: Adopt the Resolution to urge the United States
Department of the Interior to approve the petition of the Grand River Bands of
Ottawa Indians for Federal Acknowledgment.
H. Vacation of the Remaining Portion of the Alley Between 2nd St and 3rd
St, South of Webster Ave and North of Muskegon Ave. Planning
The applicant owns the former “Corner” building at the corner of
Muskegon/3rd. They have requested to vacate the remaining portion of the
alley that dead ends at the eastern edge of their property. The applicant does
not intend on building over the alley. However, they would like to limit car
access through the area with landscaping planters and/or art pieces. They are
also considering a decorative walkway that would lead pedestrians towards
the Muskegon Museum of Art.
Vacating an alley relinquishes the City’s interest in the alley. However, a utility
easement would still remain in effect. After vacating the alley, the land would
be owned by everyone in the block. No permanent structures would be
allowed over the former alley until it has been replatted. There are sanitary
and storm sewers located in the alley. The City must maintain an easement to
this infrastructure once the alley is vacated. Any approval of the vacation
should be contingent upon the City retaining a utility easement.
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The Planning Commission unanimously (8-0, 1 member absent) recommended
in favor of vacating the alley with the condition that the City retains a utility
easement with the same boundaries as the alley being vacated.
STAFF RECOMMENDATION: I move that the request to vacate the remaining
portion of the alley between 2nd St and 3rd St, south of Webster Ave and north
of Muskegon Ave, be approved with the condition that the City retains a utility
easement with the same boundaries as the alley being vacated.
I. Equipment Replacement - Plow Trucks Public Works
Staff is requesting approval to purchase two replacement plow trucks.
Two replacement plow trucks will be purchased for the City’s equipment fleet.
The cab and chassis for two trucks will be purchased from West Michigan
International for $108,928.78 each. The build of the boxes and underbody
scraper blades will be done by Truck and Trailer Specialties for a price of
$99,882.00 each. One of the truck builds will include a new V-Box salt spreader
for $34,945.00 to replace an older existing unit that is becoming difficult to
repair. The cab and chassis for this truck will be purchased through the
Sourcewell contract; the build of the box and underbody scraper blade will be
purchased under the MiDEAL contract. Sourcewell and MiDEAL are purchasing
collectives that publicly bid items to offer the best value to member
organizations.
Quantity Unit Price Total
Cab & 2 $108,928.78 $217,857.56
Chassis
Box & 2 $99,882.00 $199,764.00
Underbody
V-Box Salt 1 $34,945.00 $34,945.00
Spreader
Total $452,566.56
The total cost of $452,566.56 is a budgeted expense from the Equipment Fund
for this fiscal year (2024-2025).
STAFF RECOMMENDATION: I move to authorize staff to purchase two new plow
trucks through West Michigan International and Truck & Trailer Specialties for
$452,566.56.
K. Amendment to the Zoning Ordinance - Definition of Short-Term
Rental (SECOND READING) Planning
A definition for short-term rental in the zoning ordinance is necessary for the
creation of a short-term rental ordinance.
Proposed definition:
Short-Term Rental - A property in which a tenant is allowed to lease the
dwelling unit, without a host, for periods of less than 28 days but more than 24
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hours in return for remuneration. A rental in which the host resides on premises
shall not be considered a short-term rental, but shall still register with the City.
The Planning Commission unanimously (5-0, with 4 members absent) voted to
recommend approval of the definition of short-term rental.
STAFF RECOMMENDATION: I move to approve the request to amend Article II of
the zoning ordinance to create a definition for short term rental as proposed.
M. Climate Action Plan Contract Manager's Office
Staff is requesting authorization to enter into a contract with Fresh Coast Climate
Solutions to prepare a Government Operations Climate Action Plan for our
organization. The Plan will be used to manage Greenhouse Gas (GHG) risks and
help identify targeted reduction opportunities with the goal of eliminating the
organization’s GHG emissions by 2040.
In April 2023, the City Commission passed a resolution declaring the city’s
commitment to climate action initiatives and to combat the impact of climate
change on our community and planet. The city intends to reduce its
organizational GHG emissions through deliberative budget, policy, and
administrative actions.
In February 2024, a Government Operations Greenhouse Gas Inventory was
completed. Results of this Inventory are intended to inform the development of
a Climate Action Plan.
Staff received (6) proposals and are recommending the services of Fresh Coast
Climate Solutions based on qualifications of team, scope of work, priced
proposal, project management, and location of the firm. Fresh Coast Climate
Solutions has significant experience conducting these services across the state
(Sterling Heights, Ann Arbor, Dearborn, Flint, Grand Haven), ability to complete
the work plan on time, and offers a good value.
Bids received are as follows:
• $24,766.50 – GZA Geoenvironmental, Inc.
• $49,000 – Fresh Coast Climate Services
• $50,000 – Rafteslis
• $50,315 – EcoMotion
• $52,800 – Blue Strike
• $114,400 – Energy Sciences
The City has received approval of a $75,000 Community Energy Management
Program grant through EGLE. These funds will offset the cost of the contract. A
budget amendment will be required to account for both income from the grant
and an expense related to the contract.
STAFF RECOMMENDATION: I move to authorize staff to contract with Fresh Coast
Climate Solutions in the amount of $49,000 to prepare a Climate Action Plan for
our organization.
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O. Amendment to the Real Estate Purchase and Sale Agreement for 2675
Olthoff Drive Economic Development
2675 Olthoff, LLC (formerly Bluewater Industrial Development, LLC) is requesting
an amendment to the first real estate purchase and sale agreement approved
on May 14, 2024.
On May 14, 2024, the City Commission approved a sale of 12.87 acres at 2675
Olthoff Drive to Bluewater Industrial Development, LLC. This space will be used to
construct a 215,000 square foot facility for Forming Technologies. The
amendments to the original agreement include an extension of the due
diligence period as well removal of language pertaining to the construction of a
retention pond.
STAFF RECOMMENDATION: Motion to approve the Real Estate Purchase and Sale
Agreement amendment with 2675 Olthoff Dr., LLC and to authorize the mayor
and clerk to sign.
P. Second Amendment to Employment Agreement Manager's Office
In the summer of 2024, the City Manager received a review from the City
Commission. The Commission found that the manager exceeded expectations
on average with an overall score of 1.4 (with 1 being the best). The city's
commissioners, division, and department heads reviewed his performance.
Based on this review, the City Manager is requesting an update to his contract
regarding his base wage.
Earlier in 2024, the City Commission created a subcommittee to update the city
manager's review process. The updated review included two components: a
review completed by division and department heads whose results were
provided to the City Commission and a review completed by the City
Commission. The City Commission completed its annual review of the City
Manager in a closed session on June 25, 2024.
The review was completed on a three-point scale, with 1 exceeding
expectations, 2 meeting expectations, and 3 below expectations. The
manager's average score was 1.4.
Given the favorable review and the competitive nature of the City Manager
field, where average salaries for Michigan communities the size of Muskegon are
about $178,000 a year and where the average wage of Muskegon's peer
communities in West Michigan is $185,800, the city manager is requesting that his
base salary be adjusted to $185,000 effective July 1, 2024.
The manager's current base salary is $162,864.
STAFF RECOMMENDATION: I move to approve the Second Amendment to the
City Manager's Employment Agreement effective July 1, 2024.
Motion by Commissioner Keener, second by Commissioner German, to approve
the Consent Agenda minus items A, C, D, J, L and N.
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ROLL VOTE: Ayes: Kochin, St.Clair, Johnson, Kilgo, Keener, German, and
Gorman
Nays: None
MOTION PASSES
2024-89 ITEMS REMOVED FROM THE CONSENT AGENDA
A. Approval of Minutes City Clerk
To approve minutes of the October 7, 2024, Commission Worksession Meeting
and the October 8, 2024, City Commission Meeting.
STAFF RECOMMENDATION: Approval of the minutes.
Motion by Commissioner Kilgo, second by Vice Mayor St.Clair, to approve the
minutes with a correction to the October 8th minutes for the roll vote of item I,
Apple Avenue Resolution, showing Commissioner Kilgo voted no.
ROLL VOTE: Ayes: Gorman, Kochin, St.Clair, Johnson, Kilgo, Keener, and
German
Nays: None
MOTION PASSES
C. General Fund Transfers for FY 2023-24 Finance
During the close out of fiscal year 2023-24 and based on the financial results for
the fiscal year ended June 30, 2024, we want to transfer $50,000 from the
General Fund to the Public Services Fund to prevent a negative unrestricted
balance. A negative unrestricted balance will require a deficit elimination plan
with the State of Michigan.
At the end of the 2023-24 fiscal year, the audit shows that unrestricted position is
negative. By transferring funds from the General Fund this issue will be resolved.
STAFF RECOMMENDATION: To approve the General Fund transfer of $50,000 to
the Public Services Fund in order to avoid filing a deficit elimination plan with the
State of Michigan.
Motion by Commissioner German, second by Commissioner Kilgo, to approve
the General Fund transfer of $50,000 to the Public Services Building Fund in order
to avoid filing a deficit elimination plan with the State of Michigan.
ROLL VOTE: Ayes: German, Gorman, Kochin, St.Clair, Johnson, Kilgo, and
Keener
Nays: None
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MOTION PASSES
D. GameTime Playground Grant - Smith-Ryerson Park DPW- Parks
Staff requests authorization to enter into a contract with Sinclair Recreation in
the amount of $178,000 for the purchase and installation of a new playground
at Smith-Ryerson Park.
Staff applied and was selected for a GameTime matching funds playground
grant. The grant provides 100% matching funds for equipment purchases
(essentially 50% off). The park being proposed for this grant is Smith-Ryerson Park.
The playground is beyond the recommended lifespan and a new playground
was budgeted through the commission approved capital improvement plan.
The feedback from the parks master plan survey supports this investment at
Smith-Ryerson Park as this is our largest park on the east side of town.
We developed this structure through feedback from the survey and
engagement from staff at the playground throughout the summer. The total
cost for the playground and installation is $178,000 which fits into the overall
budget for improvements at Smith-Ryerson park.
STAFF RECOMMENDATION: Authorize staff to enter into a contract with Sinclair
Recreation in the amount of $178,000 for the purchase and installation of a new
playground at Smith-Ryerson Park.
Motion by Commissioner German, second by Vice Mayor St.Clair, to authorize
staff to enter into a contract with Sinclair Recreation in the amount of $178,000
for the purchase and installation of a new playground at Smith-Ryerson Park.
ROLL VOTE: Ayes: Keener, German, Gorman, Kochin, St.Clair, Johnson, and
Kilgo
Nays: None
MOTION PASSES
J. Creation of a Short-Term Rental Ordinance (SECOND READING) Planning
Staff-initiated request to amend Section 2314 of the zoning ordinance to create
a short-term rental ordinance.
The ordinance uses an overlay district approach, splitting the city up into 11
different zones. These zones match the City of Muskegon census tracts. Census
tract information was used to determine the number of housing units in each
zone. Each zone would be allowed up to 4% of the housing units as short-term
rentals. Areas within the Downtown Development Authority and Lakeside
Business Improvement District/Corridor Improvement Authority boundaries would
be exempt from the cap on the number of units. There would be no limit to the
amount of short-term rentals in these areas.
The Short-Term Renal Chart depicts the number of units and short-term rentals in
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each zone. At 4% of the units, Zone 1 would be over the limit by 39 short-term
rentals. No new short-term rentals would be allowed in Zone 1 until the number
of short-term rentals dropped below 34.
The Planning Commission held a public hearing on this request at a special
meeting on Thursday, September 26. The Planning Commission unanimously (5-0,
with 4 members absent) voted to recommend approval of the short-term rental
ordinance, with the following conditions:
1. Amend Section 1(c) - exemptions - to also include the Lakeside Corridor
Improvement Authority along with the Lakeside Business Improvement District.
Also, to clarify that these districts are exempt from the caps, but not from
registering as a short-term rental.
2. Remove Section 4 that would allow the transferring of licenses.
The City Commission voted on a revised version of the Planning Commission's
recommendation at the October 8 City Commission meeting. The ordinance, as
voted by the City Commission on October 8, is included in the packet.
STAFF RECOMMENDATION: I move to approve the request to amend Section
2314 of the zoning ordinance to create a short-term rental ordinance as
presented.
Motion by Commissioner Keener, second by Vice Mayor St.Clair, to approve the
request to amend Section 2314 of the zoning ordinance to create a short-term
rental ordinance as presented.
ROLL VOTE: Ayes: Kilgo, Keener, St.Clair, and Johnson
Nays: German, Gorman, and Kochin
MOTION PASSES
L. Additional Construction Engineering Services for Adelaide Pointe Public
Works
Staff is requesting authorization to approve Contract Amendment No. 1 in the
amount of $83,080 with Eng. Engineering & Surveying for additional construction
engineering services related to Adelaide Pointe.
Eng. Engineering & Surveying was hired by the City to provide construction
inspection services and collect as-constructed documentation on the city's
behalf for the infrastructure that is likely to become public such as watermain,
sanitary sewer and roadways, including a sanitary pump station.
Many aspects of this project have been somewhat fluid in nature with multiple
changes to the utility and roadway layout, modifications to the project
schedule, multiple underground contractors, numerous onsite meetings to
evaluate conditions, etc. Efforts were also needed to accommodate developer
requests to meet intermediate milestones for events, a restaurant opening,
boating events, etc. All of these factors resulted in additional construction
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engineering and administration costs. Eng. has requested this amendment to
cover the additional costs associated with their work. Staff recommends these
additional services be approved, and commends Eng. for their efforts as an
invaluable partner to the City in making sure the public's interests are
represented on site during this crucial project.
STAFF RECOMMENDATION: To authorize staff to approve Contract Amendment
No. 1 in the amount of $83,080 with Eng. Engineering & Surveying for additional
construction engineering services related to Adelaide Pointe.
Motion by Commissioner Kochin, second by Commissioner German, to
authorize staff to approve Contract Amendment No. 1 in the amount of $83,080
with Eng. Engineering & Surveying for additional construction engineering
services related to Adelaide Pointe.
ROLL VOTE: Ayes: Johnson, Kilgo, Keener, German, Gorman, Kochin, and
St.Clair
Nays: None
MOTION PASSES
N. Request to Amend the Planned Unit Development (PUD) at Harbour
Towne to Allow for the Construction of 28 New Condo Units. Planning
The proposed buildings include six fourplexes and two duplexes.
The original PUD for Harbour Towne called for up to 250 units, however, only 190
units were built. The time has lapsed to complete the additional units, so the PUD
must be amended. A discussion was had regarding the installation of sidewalks,
which was an original condition of approval. The PUD was amended in 2002 to
add three additional duplexes along Fulton St. That amendment noted that the
original agreement for sidewalks for the PUD is retained. During the July 11, 2002
Planning Commission meeting it was noted: “In previous amendments the issue
of pedestrian walkways has come up. The original PUD required that walkways
(sidewalks) be provided when the PUD became more fully developed. This issue
needs to be resolved. Cement sidewalks may not be practical in the
development. A boardwalk may be cost prohibitive. An option may be that a
pedestrian/bike lane be painted on the existing street demarking a pedestrian
area that will prompt motorists to be mindful of pedestrians and cyclists. The
existing swath of pavement is fairly wide and open, which can actually promote
speeding in the development.”
The Planning Commission voted in favor (5 to 3, 1 absent) of recommending
approval of the project with the following conditions:
1. A turnaround must be incorporated at the end of Channel View Point.
2. An additional fire hydrant must be added along Channel View Point.
3. A stormwater permit must be obtained from the Engineering Department
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before construction commences
4. A landscaping plan is provided.
5. Sidewalks through Harbour Towne Circle East and West are installed within two
years from the commencement of construction.
STAFF RECOMMENDATION: I move that the request to amend the planned unit
development (PUD) at Harbour Towne to allow for the construction of 28 new
condo units be approved with the following conditions:
1. A turnaround must be incorporated at the end of Channel View Point.
2. An additional fire hydrant must be added along Channel View Point.
3. A stormwater permit must be obtained from the Engineering Department
before construction commences
4. A landscaping plan is provided.
5. Sidewalks through Harbour Towne Circle East and West are installed within two
years from the commencement of construction.
Motion by Commissioner German, second by Commissioner Kilgo, to approve
the request to amend the planned unit development (PUD) at Harbour Towne to
allow for the construction of 28 new condo units be approved with the following
conditions:
1. A turnaround must be incorporated at the end of Channel View Point.
2. An additional fire hydrant must be added along Channel View Point.
3. A stormwater permit must be obtained from the Engineering Department
before construction commences.
4. A landscaping plan is provided.
5. Sidewalks through Harbour Towne Circle East and West are installed within two
years from the commencement of construction.
MOTION AMENDED:
Motion amended by Commissioner Kochin, second by Commissioner German
to remove condition #5 from the PUD.
Vote on Amendment:
ROLL VOTE: Ayes: Kochin and German
Nays: St.Clair, Johnson, Kilgo, Keener, and Gorman
AMENDED MOTION FAILS
Vote on Original Motion:
ROLL VOTE: Ayes: St.Clair, Johnson, Kilgo, Keener, and Gorman
Nays: German and Kochin
MOTION PASSES
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(REQUIRES SECOND READING)
2024-90 PUBLIC HEARINGS
A. Expansion and Removal of Neighborhood Enterprise Zone Districts
Economic Development
Staff is proposing the expansion of the Neighborhood Enterprise Zone Districts in
core neighborhoods in the City. This expansion will allow developers and current
property owners to take advantage of this incentive where there are several
vacant properties. We are also proposing removal of sites where the zoning has
changed, or other incentives will make NEZ ineffective.
Pursuant to Public Act 147 of the Michigan Public Acts of 1992, staff has
requested the expansion and removal of certain Neighborhood Enterprise Zone
(NEZ) Districts. The City of Muskegon has utilized NEZs as a tool to encourage the
construction of new homes and the rehabilitation of existing ones. These zones
have played a crucial role in stabilizing and revitalizing neighborhoods, creating
more housing opportunities for moderate-income residents, and attracting
private developer investment. The incentive is designed to increase the housing
supply in core neighborhoods and stimulate additional investments by current
homeowners.
Prior to the proposed adjustments, some housing developments were unable to
benefit from this initiative due to the location of existing NEZ boundaries. The
removal of certain areas from the NEZ districts reflects changes in zoning,
excluding areas no longer designated for residential use, such as creeks and
schools, or areas benefiting from alternative incentives. This includes
neighborhoods with few or no vacant lots, or where no active NEZ districts
currently exist. Additionally, we plan to remove the NEZ designation in the Port
City Industrial Park. Originally, this NEZ was intended to take advantage of the
Michigan Economic Growth Authority (MEGA) program, which is no longer
offered. Although no record of a resolution approving a district in the Port City
Industrial Park can be found, we seek to comply with the Muskegon County
Assessor's office.
State law allows for up to 15% of the total acreage within the boundaries of a
local government unit to be designated as NEZs. Properties within the updated
NEZ districts will be eligible to apply for NEZ certificates, which reduce residential
property taxes on newly constructed or rehabilitated homes. Notice letters were
sent to the affected taxing jurisdictions on October 10, 2024, and a public
hearing was held on October 22, 2024. In accordance with state law, the
resolution must be adopted no sooner than 60 days after the notice letters were
sent.
STAFF RECOMMENDATION: I move to approve the amendment to the
Neighborhood Enterprise Zone (NEZ) Districts, as requested. This includes the
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expansion of Neighborhood Enterprise Zone Districts to encourage new and
rehabilitated housing, while removing areas no longer zoned for residential use.
The Public Hearing opened to hear and consider any comments from the
public. Comments were heard from Steve Benedict.
Motion by Commissioner Keener, second by Commissioner Kilgo, to close the
Public Hearing and approve the amendment to the Neighborhood Enterprise
Zone (NEZ) Districts, as requested. This includes the expansion of Neighborhood
Enterprise Zone Districts to encourage new and rehabilitated housing, while
removing areas no longer zoned for residential use.
ROLL VOTE: Ayes: Gorman, Kochin, St.Clair, Johnson, Kilgo, Keener, and
German
Nays: None
MOTION PASSES
B. Public Hearing, Brownfield Plan Amendment- Muskegon Midtown Center
LLC, 1095 3rd St. Economic Development
Muskegon Midtown Center, LLC has submitted a Brownfield Plan Amendment
for the redevelopment of 1095 3rd Street. The project involves the rehabilitation
and expansion of a vacant and blighted office building into a mixed-use
commercial and residential facility. This redevelopment will bring the property
back onto the tax rolls, provide much-needed housing, create temporary and
long-term jobs, and contribute to the economic development of Muskegon.
The project site consists of two adjacent parcels, currently blighted and vacant,
located at 1095 3rd Street. Historically used for retail and office purposes, the
property was acquired by the developer in July 2024. The redevelopment
includes residential apartments, commercial spaces, and site improvements.
Construction began in Summer 2024, with completion anticipated by Winter
2025. The private investment is estimated at $11,181,000, with the creation of 30
full-time equivalent (FTE) jobs expected within two years of project completion.
Eligible activities for reimbursement through the Brownfield Plan include
environmental assessments, site demolition, preparation, architecture, and
engineering work. Specific activities are as follows:
• Phase I ESA/Baseline Environmental Assessment: $31,978
• Site Demolition: $250,000
• Site Preparation: $86,500
• Architecture and Engineering Fees: $245,000
• Brownfield Plan Development: $10,000
Administrative costs of the CMBRA, calculated as 10% of total eligible activities,
are estimated at $62,547.80. Interest expenses at 5.00% are also eligible for
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reimbursement. The capture period is set for 30 years plus an additional 5 years
for the brownfield redevelopment loan fund.
Total Potential Eligible Activity Costs: $688,025.80 (inclusive of contingencies,
financing costs, and administrative fees).
The Development and Reimbursement Agreement is included in this plan. The
following are the key highlights from the agreement:
Reimbursement Source:
The Developer and the City will be reimbursed for the costs of approved Eligible
Activities (such as demolition, site preparation, and infrastructure improvements)
through Brownfield Tax Increment Financing (TIF) Revenue. This revenue is
generated from increases in property taxes on the redeveloped property.
Reimbursement Process:
Both the Developer and the City must submit reimbursement requests to the
Authority, accompanied by the required documentation.
The Authority will review and either approve or dispute the reimbursement
request within 30 days. Payments will be made as tax revenues become
available.
If there is insufficient revenue to cover the full reimbursement in any period, the
remaining amount will be paid in subsequent periods as additional revenue
becomes available.
Term of Agreement:
The agreement will continue until the Developer and the City have been fully
reimbursed or until December 31, 2060, whichever occurs first. After this date,
any remaining captured tax revenue will be used to fund a Brownfield Revolving
Loan Program.
Legislative Authorization:
This agreement is governed by Act 381, and any changes in the law that affect
Brownfield TIF capture or eligible activities will adjust the agreement accordingly.
Assignment:
The rights and obligations under this agreement cannot be transferred without
the consent of the other parties, except that the Developer and the City may
assign their interests to affiliates for financing purposes.
Miscellaneous Provisions:
The agreement includes standard legal provisions regarding the handling of
notices, governing law (Michigan), and the execution of the agreement in
counterparts.
The Brownfield Redevelopment Authority has reviewed and approved this plan
on October 10, 2024 and recommends that the City Commission consider
adopting it.
STAFF RECOMMENDATION: I move that the City Commission approve the
Brownfield Redevelopment Plan for the property located at 1095 3rd St., and
authorize the Mayor and City Clerk to sign.
The Public Hearing opened to hear and consider any comments from the
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public. Comments and questions were made by Lora Swenson.
Motion by Commissioner Kilgo, second by Commissioner German, to close the
Public Hearing and approve the Brownfield Redevelopment Plan for the
property located at 1095 3rd St., and authorize the Mayor and City Clerk to sign.
ROLL VOTE: Ayes: German, Gorman, Kochin, St.Clair, Johnson, Kilgo, and
Keener
Nays: None
MOTION PASSES
C. Public Hearing, Brownfield Plan Amendment- 349 West Webster, LLC, 349
W. Webster Economic Development
349 West Webster, LLC has submitted a Brownfield Plan Amendment for the 349
West Webster Redevelopment project, which aims to rehabilitate a vacant and
blighted office building into a mixed-use commercial facility. This project will
help bring the property back onto the tax rolls, create jobs, and contribute to
the city's economic development.
The project site, currently a vacant and blighted office building, is located at
349 West Webster Ave. The property has historically been used for both
educational and office purposes. The developer, 349 West Webster, LLC,
acquired the site from Muskegon Public Schools in 2021. The proposed
redevelopment includes lodging and retail spaces as well as site improvements,
with construction scheduled to begin in Summer 2024 and completion expected
by Fall 2025. The estimated investment is $11,500,000, and the project is
expected to create 10 full-time equivalent (FTE) jobs within two years of
completion.
Eligible Activities: The Brownfield Plan includes the following eligible non-
environmental activities:
• Site Demolition: $1,050,000
• Site Preparation: $150,000
• Architecture and Engineering Fees: $450,000
• Asbestos Abatement: $30,000
• Brownfield Plan Development: $10,000
Administrative costs of the CMBRA, calculated as 10% of total eligible activities,
are estimated at $169,000. Interest expenses at 5.00% are also eligible for
reimbursement. The capture period is for 30 years with an additional 5 years for
the revolving loan fund.
Total Potential Eligible Activity Costs: $1,859,000.00 (inclusive of contingencies,
financing costs, and administrative fees)
The Development and Reimbursement Agreement is included in this plan. The
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following are the key highlights from the agreement:
Reimbursement Source:
The Developer and the City will be reimbursed for the costs of approved Eligible
Activities (such as demolition, site preparation, and infrastructure improvements)
through Brownfield Tax Increment Financing (TIF) Revenue. This revenue is
generated from increases in property taxes on the redeveloped property.
Reimbursement Process:
Both the Developer and the City must submit reimbursement requests to the
Authority, accompanied by the required documentation.
The Authority will review and either approve or dispute the reimbursement
request within 30 days. Payments will be made as tax revenues become
available.
If there is insufficient revenue to cover the full reimbursement in any period, the
remaining amount will be paid in subsequent periods as additional revenue
becomes available.
Term of Agreement:
The agreement will continue until the Developer and the City have been fully
reimbursed or until December 31, 2060, whichever occurs first. After this date,
any remaining captured tax revenue will be used to fund a Brownfield Revolving
Loan Program.
Legislative Authorization:
This agreement is governed by Act 381, and any changes in the law that affect
Brownfield TIF capture or eligible activities will adjust the agreement accordingly.
Assignment:
The rights and obligations under this agreement cannot be transferred without
the consent of the other parties, except that the Developer and the City may
assign their interests to affiliates for financing purposes.
Miscellaneous Provisions:
The agreement includes standard legal provisions regarding the handling of
notices, governing law (Michigan), and the execution of the agreement in
counterparts.
The Brownfield Redevelopment Authority reviewed this plan on October 10, 2024
and motioned to approve and suggest that the City Commission consider
adoption of the plan.
STAFF RECOMMENDATION: I move that the City Commission approve the
Brownfield Redevelopment Plan for the property located at 349 West Webster
Ave, and authorize the Mayor and City Clerk to sign.
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 Brownfield Redevelopment Plan for the
property located at 349 West Webster Ave, and authorize the Mayor and City
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Clerk to sign.
ROLL VOTE: Ayes: Keener, German, Gorman, Kochin, St.Clair, Johnson, and
Kilgo
Nays: None
MOTION PASSES
2024-91 NEW BUSINESS
A. Conflict of Interest Disclosure Community & Neighborhood Services
Seeking approval to waive conflict pursuant to City Charter and State Law. City
staff will be seeking to submit a request to the Department of Housing and
Urban Development for an Exception for a Conflict of Interest for the City of
Muskegon Community and Neighborhood Services (CNS) Department Priority
Home Repair Program.
Under State law, a contract between a public entity and a public servant is
permissible in this particular case when:
1) The public servant discloses in writing to the Mayor, seven days prior to City
Commission action, their interest in the issue and the value of benefits to be
provided by the City;
2) The official body discloses a summary of the transaction in its official minutes.
Where a “conflict of interest” does exist pursuant to the City Charter, the City
may still enter into the contract if all the following occurs:
The City Commission declares that it is in the best interest of the City to enter into
the contract.
The City Attorney and employee provided a letter detailing the disclosure.
STAFF RECOMMENDATION: To waive the conflict of interest pursuant to City
Charter and State Law and request the Department of Housing and Urban
Development for an exception to approve the request of Conflict of Interest
Exception for the City of Muskegon Community and Neighborhood Services
Department Priority Home Repair Program.
Motion by Commissioner Kilgo, second by Commissioner German, to waive the
conflict of interest pursuant to City Charter and State Law and request the
Department of Housing and Urban Development for an exception to approve
the request of Conflict of Interest Exception for the City of Muskegon Community
and Neighborhood Services Department Priority Home Repair Program for
Ashley Briggs.
ROLL VOTE: Ayes: Kilgo, Keener, German, Gorman, Kochin, St.Clair, and
Johnson
Nays: None
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MOTION PASSES
ANY OTHER BUSINESS
City Manager Jonathan Seyferth stated that the City is switching over to BS&A
online and will be unable to take any payments October 30th through
November 4th. This will not affect the election.
Commissioner Kilgo asked about the STR moratorium.
Vice Mayor St.Clair stated that City Hall will be closed November 11th for
Veterans Day. The November Worksession will be combined with the November
12th City Commission Meeting.
Commissioners German and Keener asked about the ARPA Grants. There will be
an update at the December 2nd Legislative Policy Committee Meeting.
Commissioner Kilgo would like to see the data on infill housing.
PUBLIC COMMENT ON NON-AGENDA ITEMS
Public comments received.
ADJOURNMENT
The City Commission meeting adjourned at 9:35 p.m.
Respectfully Submitted,
Ann Marie Meisch, MMC City Clerk
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