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CITY OF MUSKEGON CITY COMMISSION MEETING January 28, 2025 @ 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, January 28, 2025. Mayor Johnson opened the meeting with a moment of silence, after which the Commission and public recited the Pledge of Allegiance to the Flag. ROLL CALL Present: Mayor Ken Johnson, Vice Mayor Rebecca St. Clair, Commissioners Katrina Kochin, Willie German, Jr., Jay Kilgo, and Rachel Gorman, Deputy City Manager LeighAnn Mikesell, City Attorney John Schrier, and Deputy City Clerk Linda Potter Absent: Commissioner Destinee Keener PUBLIC COMMENT ON AGENDA ITEMS No public comments were received. 2025-06 CONSENT AGENDA A. Approval of Minutes City Clerk To approve minutes of the January 13th Commission Worksession Meeting and the January 14th City Commission Meeting. STAFF RECOMMENDATION: Approval of the minutes. B. West Michigan Ironmen Lease Arena The West Michigan Ironmen lease expired in June of 2024. Ironmen Owner and Arena Director have been working together to solidify a new year by year lease structure moving forward. The West Michigan Ironmen and the Arena Director have worked together to produce a new year-to-year lease with the Ironmen since their current lease ended in June of 2024. The Ironmen have faced challenges with viable leagues and the Arena has faced challenges with scheduling the Ironmen within the Page 1 of 10 parameters of the available turf dates. USHL playoffs and various graduations have caused implications in previous years which caused an inefficiency in scheduling and added expense to operations. The Ironmen are in negotiations with a league whose facilities host both USHL and ECHL hockey teams, both in whom will face the same challenges. We are optimistic that we can start and end the Ironmen season within the allotted turf dates accompanied by the Risers. These times are between the months of December and April. With the unknown of playoffs starting in April followed by graduations in May it is in our best interest to consolidate the schedule into a 4-month schedule. The proposed lease is financially consistent with that of the previous seasons. Small modifications regarding the storage of the pads and food/beverage policies have been added. STAFF RECOMMENDATION: To approve the lease as presented for the West Michigan Ironmen 2025 season. C. Commission Meeting - Agenda Structure Manager's Office The City Commission sets the agenda structure (flow of business) for each Commission Meeting. As discussed at the January 13, 2025 Worksession, the Commission is comfortable updating the agenda flow so that Public Hearings are near the top of the meeting before Public Comment, a standing item for Federal/State/County elected officials to provide updates is added, and the second public comment is renamed "General Public Comment." The City Commission sets the format of Commission Meeting agendas, and any change to the format/flow requires Commission action. Staff recommend and the Commission discussed at its January 13, 2025, Worksession about moving Public Hearings to the top of the meeting following Awards, Honors, and Presentations and before Comments on an Agenda Item, adding a section for Federal/State/County updates and renaming the second public comment. The movement of public hearings to the top of the agenda serves a few functions: 1. Often, those who come for public hearings (either as applicants or commentators) leave after the hearing. Moving Public Hearings up on the agenda would accommodate allowing those individuals to leave earlier if they so wished. 2. Those there for a public hearing are often confused when it is their time to speak (during public comment on an agenda item or during the hearing itself). Having the public hearing before public comment on agenda items will lessen that confusion. 3. Often, those who are attending public hearings are paying professional consultants to attend, and this is an economically friendly move for those individuals. It was also discussed and agreed that a new standing item, Federal/State/County Updates, should be added. It is recommended that this Page 2 of 10 happen after public hearings and before general public comment on an agenda item. Lastly, the second public comment section will be renamed General Public Comment. STAFF RECOMMENDATION: Move to approve the updated agenda as presented. G. 2025 USER FEES Finance City Departments have reviewed and updated their user fees and these have been incorporated into the Master Fee Resolution that is for your consideration. Please note that several fees, rec sports, and parking fees, were previously approved by the Commission and are now just being updated in the fee schedule. STAFF RECOMMENDATION: Approval of the 2025 Master Fee Resolution. Motion by Commissioner Kilgo, second by Commissioner German, to adopt the Consent Agenda as presented minus items D, E, F, H, and I. ROLL VOTE: Ayes: Johnson, Kilgo, German, Gorman, Kochin, and St.Clair Nays: None MOTION PASSES 2025-07 ITEMS REMOVED FROM THE CONSENT AGENDA D. Amendment to the Marihuana Facilities Overlay District Planning Request to amend Section 2331, subsection 3(a) of the zoning ordinance, to allow The Grassy Knoll to operate between the hours of 8:00 am and 2:00 am., by the Grassy Knoll. • The Planning Commission unanimously recommended for denial of the request to amend the ordinance because the proposed language is incomplete and it inadvertently restricts the hours of operation for all other marihuana retailers. The applicant was not present at the Planning Commission meeting. • The applicant proposed an ordinance amendment in 2024 to allow for 24-hour marihuana retail sales everywhere in the Marihuana Facilities Overlay District, but the request failed. • The applicant is now requesting to amend the zoning ordinance to allow only their property the ability to operate a retail store and a designated consumption establishment from 8:00 am to 2:00 am. Currently, retailers are allowed to operate between 8 am and 12 am. As presented, the ordinance would restrict any hours of operation for all other marihuana Page 3 of 10 retailers. • The Grassy Knoll is located at 2125 Lemuel St. The address was not included in the proposed ordinance, rather the name was only listed. • Please see Section 2331.3 as it currently exists, followed by the proposed amendments within this document. STAFF RECOMMENDATION: I move to deny the request to amend Section 2331 of the zoning ordinance as proposed. Motion by Commissioner German, second by Commissioner Kilgo, to deny the request to amend Section 2331 of the zoning ordinance as proposed. ROLL VOTE: Ayes: Kilgo, German, Gorman, Kochin, St.Clair, and Johnson Nays: None MOTION PASSES E. Amendment to the zoning ordinance, replacing mentions of "single- family residential districts" with "neighborhood residential districts." Planning Staff initiated request to amend the zoning ordinance to replace all instances of “single-family residential districts” with “neighborhood residential districts.” With the recent zoning reform amendments now in place, the ordinance must be updated to remove references to single-family residential districts. These references can be replaced with neighborhood residential districts. The Planning Commission unanimously recommended for approval of the proposed amendments. STAFF RECOMMENDATION: I move to approve the request to amend the zoning ordinance by replacing all instances of “single-family residential districts” with “neighborhood residential districts" as proposed. Motion by Commissioner German, second by Commissioner Kilgo, to approve the request to amend the zoning ordinance by replacing all instances of “single-family residential districts” with “neighborhood residential districts" as proposed. ROLL VOTE: Ayes: German, Gorman, Kochin, St.Clair, Johnson, and Kilgo Nays: None MOTION PASSES (REQUIRES SECOND READING) F. Amendment to Article II of the zoning ordinance to create definitions for duplexes and triplexes. Planning Staff initiated request to amend Article II of the zoning ordinance to create Page 4 of 10 definitions for duplexes and triplexes. • Now that duplexes and triplexes are allowed in R districts, we must create definitions for them. • After discussion, the Planning Commission recommended changes to the definitions. • The Planning Commission unanimously recommended for approval of the zoning ordinance amendment, which include their updated definitions. • The proposed definitions are as follows: Duplex: A building designed for occupancy by two families living independently of each other. Triplex: A medium-sized structure that’s designed for occupancy by three families living independently of each other. STAFF RECOMMENDATION: I move to approve the request to amend Article II of the zoning ordinance to create definitions for duplexes and triplexes as proposed. Motion by Commissioner German, second by Commissioner Kilgo, to approve the request to amend Article II of the zoning ordinance to create definitions for duplexes and triplexes as proposed. ROLL VOTE: Ayes: German, Gorman, Kochin, St.Clair, Johnson, and Kilgo Nays: None MOTION PASSES (REQUIRES SECOND READING) H. Purchase of 1932 and 1967 Reynolds. Planning Staff is requesting approval of a purchase agreement to buy 1932 Reynolds Street and 1967 Reynolds Street, Muskegon, MI 49442 from the Muskegon County Land Bank. This lot will be added to the City's Infill Housing Program and city-wide Brownfield. It is proximal to several other recent builds and future phase lots. STAFF RECOMMENDATION: Approve the purchase agreement for 1932 and 1967 Reynolds St, Muskegon, MI 49442, for $7,000.00, and authorize the Code Coordinator to sign. Motion by Vice Mayor St.Clair, second by Commissioner Gorman, to approve the purchase agreement for 1932 and 1967 Reynolds St, Muskegon, MI 49442, for $7,000.00, and authorize the Code Coordinator to sign, with the caveat that Section 16 (Prior Owner Purchase) is removed from the agreement. ROLL VOTE: Ayes: Gorman, Kochin, St.Clair, Johnson, Kilgo, and German Nays: None Page 5 of 10 MOTION PASSES I. Approve CRC recommendations City Clerk Concur with Community Relations Committee recommendations for board positions. STAFF RECOMMENDATION: Approve CRC recommendations for board positions. Motion by Commissioner Kochin, second by Vice Mayor St.Clair, to approve CRC recommendations for board positions. ROLL VOTE: Ayes: Kochin, St.Clair, Johnson, Kilgo, German, and Gorman Nays: None MOTION PASSES 2025-08 PUBLIC HEARINGS A. Public Hearing Establishment of a Commercial Redevelopment District- Lakeshore Hotel Partners, LLC, 181 Viridian Drive Economic Development Lakeshore Hotel Partners, LLC has formally requested the establishment of a Commercial Redevelopment District and Certificate for 181 Viridian Drive on December 9, 2024. This designation will enable the property owner to apply for a Commercial Facilities Exemption Certificate, which freezes the building's taxable value and exempts new investments from local taxes. The proposed project involves the development of the Element Hotel by Marriott, part of the broader Harbor 31 Redevelopment Plan. Key details of the hotel project include: • Size & Scope: A 5-story building featuring 132 rooms. • Amenities: A full-service restaurant, fitness center, and indoor pool. • Location: Situated along the Lakeshore, enhancing the area’s appeal as a destination for visitors and residents. • Investment: The project represents a $30 million construction effort spanning 31 acres. The Element Hotel is a key component of the larger Harbor 31 Redevelopment Plan, which aims to transform the area into a vibrant, mixed-use community. In addition to the hotel, the redevelopment plan includes: • Senior living facilities. • Single-family homes. • Townhomes and apartments. Page 6 of 10 • Office space. The project is expected to: • Begin construction in February 2025 and conclude in April 2026. • Create approximately 50 permanent jobs upon completion, enhancing the local workforce. • Generate approximately 225 construction jobs during the development phase. • Revitalize underutilized property along the Lakeshore STAFF RECOMMENDATION: I move to close the public hearing and approve the request from Lakeshore Hotel Partners, LLC, to establish a Commercial Redevelopment District at 181 Viridian Drive and authorize the Mayor and City Clerk to sign the resolution. The Public Hearing opened to hear and consider any comments from the public. No public comments were made. Motion by Commissioner Kilgo, second by Commissioner German, to close the public hearing and approve the request from Lakeshore Hotel Partners, LLC, to establish a Commercial Redevelopment District at 181 Viridian Drive and authorize the Mayor and City Clerk to sign the resolution. ROLL VOTE: Ayes: St.Clair, Johnson, Kilgo, German, Gorman, and Kochin Nays: None MOTION PASSES B. Public Hearing Establishment of a Commercial Facilities Exemption Certificate, Lakeshore Hotel Partners, LLC- 181 Viridian Drive Economic Development Lakeshore Hotel Partners, LLC has formally requested the establishment of a Commercial Facilities Exemption Certificate for 181 Viridian Drive on December 9, 2024. This designation will enable the property owner to apply for a Commercial Facilities Exemption Certificate, which freezes the building's taxable value and exempts new investments from local taxes. The approval of the certificate is contingent upon the approval of the Commercial Redevelopment District. The proposed project involves the development of the Element Hotel by Marriott, part of the broader Harbor 31 Redevelopment Plan. Key details of the hotel project include: • Size & Scope: A 5-story building featuring 132 rooms. • Amenities: A full-service restaurant, fitness center, and indoor pool. • Location: Situated along the Lakeshore, enhancing the area’s appeal as Page 7 of 10 a destination for visitors and residents. • Investment: The project represents a $30 million construction effort spanning 31 acres. The Element Hotel is a key component of the larger Harbor 31 Redevelopment Plan, which aims to transform the area into a vibrant, mixed-use community. In addition to the hotel, the redevelopment plan includes: • Senior living facilities. • Single-family homes. • Townhomes and apartments. • Office space. The project is expected to: • Begin construction in February 2025 and conclude in April 2026. • Create approximately 50 permanent jobs upon completion, enhancing the local workforce. • Generate approximately 225 construction jobs during the development phase. • Revitalize underutilized property along the Lakeshore STAFF RECOMMENDATION: I move to close the public hearing and approve the request from Lakeshore Hotel Partners, LLC, to establish a Commercial Facilities Exemption Certificate at 181 Viridian Drive and authorize the Mayor and City Clerk to sign the resolution. The Public Hearing opened to hear and consider any comments from the public. Mike Houseman, project developer, stated that City staff has been great to work with. Motion by Commissioner German, second by Vice Mayor St.Clair, to close the public hearing and approve the request from Lakeshore Hotel Partners, LLC, to establish a Commercial Facilities Exemption Certificate at 181 Viridian Drive for a period of 12 years and authorize the Mayor and City Clerk to sign the resolution. ROLL VOTE: Ayes: Johnson, Kilgo, German, Gorman, Kochin, and St.Clair Nays: None MOTION PASSES C. Neighborhood Enterprise Zone Certificate -485 Mary St (formerly 845 Ducey Ave) Economic Development Staff is requesting the approval of a Neighborhood Enterprise Zone (NEZ) certificate for 15 years for a new construction home at 485 Mary St (formerly 845 Page 8 of 10 Ducey Ave). An application for a Neighborhood Enterprise Zone (NEZ) certificate has been received from Stephen Homes and Investments for a new construction home at 485 Mary St (formerly 845 Ducey Ave). The cost of construction is approximately $175,000. The applicant has met local and state requirements for the issuance of the NEZ certificate. STAFF RECOMMENDATION: I move to close the public hearing and approve the Neighborhood Enterprise Zone District certificate at 485 Mary St (formerly 845 Ducey Ave) and authorize the City Clerk and Mayor to sign the certificate resolution. The Public Hearing opened to hear and consider any comments from the public. No comments were made. Motion by Commissioner Kilgo, second by Commissioner German, to close the public hearing and approve the Neighborhood Enterprise Zone District certificate for a term of 15 years at 485 Mary St (formerly 845 Ducey Ave.), and authorize the City Clerk and Mayor to sign the certificate resolution. ROLL VOTE: Ayes: Kilgo, German, Gorman, Kochin, St.Clair, and Johnson Nays: None MOTION PASSES D. Neighborhood Enterprise Zone Certificate - 263 W Muskegon Ave. Economic Development Staff is requesting the approval of a Neighborhood Enterprise Zone (NEZ) certificate for 15 years for rehabilitation of 263 W Muskegon Ave. An application for a Neighborhood Enterprise Zone (NEZ) certificate has been submitted by Ryan Kraai for the rehabilitation of a 3-unit residential property located at 263 W Muskegon Ave, within the Nelson neighborhood's historic district. The proposed rehabilitation, with an estimated cost of $40,000, includes re-roofing and re-siding. The application meets all local and state requirements for NEZ certification. Additionally, the Historical District Commission (HDC) has approved all external renovations, and their approval documentation is included in your agenda packet. The agenda also contains the NEZ resolution and a map outlining the NEZ boundaries for your reference. STAFF RECOMMENDATION: I move to close the public hearing and approve the Neighborhood Enterprise Zone District certificate at 263 W Muskegon Ave and authorize the City Clerk and Mayor to sign the certificate and resolution. The Public Hearing opened to hear and consider any comments from the public. No public comments were made. Page 9 of 10 Motion by Commissioner Kochin, second by Commissioner Kilgo, to close the public hearing and approve the Neighborhood Enterprise Zone District certificate for a term of 15 years at 263 W. Muskegon Ave. , and authorize the City Clerk and Mayor to sign the certificate and resolution. ROLL VOTE: Ayes: German, Gorman, Kochin, St.Clair, Johnson, and Kilgo Nays: None MOTION PASSES ANY OTHER BUSINESS Mayor Johnson thanked DPW, Fire and Police for their excellent work during the challenging weather conditions. He also addressed the ICE rumors, and thanked the Police Department and Communications and Engagement team for putting out a post. 2025 road construct projects will be discussed February 19th at DPW from 4:00 p.m. to 6:00 p.m. Commissioner Kochin thanked everyone that was able to attend the City Engagement Session reference the Watershed access and Mart Dock proposal. There will be two more events: February 4th at DPW 5:30 p.m. to 7:00 p.m. and February 17th at Muskegon Innovation Hub from 4:00 p.m. to 5:30 p.m. Commissioner Kilgo mentioned that we don't have a date yet for the Apple Avenue reconstruction final public engagement, when that date comes out he will be sharing it. Wanted constituents to know that your Commissioners are available to talk with you. Commissioner German received calls from Jackson Hill Village Apartment tenants who had concerns with driveway, street, and mailbox areas not being shoveled. He thanked the City Manager and the apartment complex manager for resolving the issue. PUBLIC COMMENT ON NON-AGENDA ITEMS Public comments received. ADJOURNMENT The City Commission meeting adjourned at 6:47 p.m. Respectfully Submitted, Ann Marie Meisch, MMC City Clerk Page 10 of 10
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