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CITY OF MUSKEGON
CITY COMMISSION MEETING
February 25, 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, February 25,
2025. Pastor Duane Bennett from the Mount Zion Church of God in Christ,
opened the meeting with prayer, after which the Commission and public
recited the Pledge of Allegiance to the Flag.
ROLL CALL
Present: Mayor Ken Johnson, Vice Mayor Rebecca St. Clair, Commissioners
Willie German, Jr., Rachel Gorman, and Jay Kilgo, City Manager Jonathan
Seyferth, City Attorney John Schrier, and Deputy City Clerk Linda Potter
Absent: Commissioners Katrina Kochin and Destinee Keener
2025-15 PUBLIC HEARINGS
A. Public Hearing-Brownfield Plan Amendment, Muskegon-Central Park,
LLC (Krimson Exploratory Fund, LLC) 1700 Oak Ave. Economic
Development
Muskegon-Central Park, LLC (Krimson Exploratory Fund, LLC) is requesting the
approval of their brownfield plan amendment for the site located at 1700 Oak
Ave. The Brownfield Plan Amendment will help facilitate the redevelopment of
the former Muskegon General Hospital site, located at 1700 Oak Avenue. This
amendment will enable the use of Tax Increment Financing (TIF) to reimburse
Muskegon-Central Park, LLC (Krimson Exploratory Fund, LLC) for eligible
environmental and site redevelopment activities, supporting the creation of
new affordable housing units.
The former Muskegon General Hospital has remained vacant and blighted,
posing environmental and safety concerns for the surrounding neighborhood.
The proposed redevelopment project by Muskegon-Central Park, LLC (Krimson
Exploratory Fund, LLC) aims to demolish the obsolete hospital structure and
construct six new, three-story multifamily residential buildings. These buildings
will provide 144 new rental housing units, designed as affordable workforce
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housing for individuals and families earning between 69-77% of Muskegon
County’s Area Median Income (AMI). The total project investment is estimated
at $21,532,385.
Eligible Activities: The plan covers a wide range of eligible activities necessary
for site redevelopment, including:
• Demolition of the former hospital building- $1,417,375
• Asbestos abatement and removal of other hazardous materials- $621,000
• Site preparation activities, such as grading, clearing, and utility work-
$934,835
• Public infrastructure improvements, including road, sidewalk, and utility
upgrades to support the new development- $2,273,090
• Gap financing assistance to close the housing affordability gap, ensuring
the project’s financial viability- $3,500,000
• Brownfield Plan/Work Preparation- $25,000
• Brownfield Plan/Work Plan Implementation- $30,000
Tax Increment Financing (TIF): The plan allows for the capture of new local and
state tax increment revenues generated by the redevelopment to reimburse
the developer for eligible costs. The total cost of eligible activities is estimated
at $8,801,300. Authority administrative costs are anticipated to be $674,440. The
capture of TIR for the Local Brownfield Revolving Fund (LBRF) is estimated to be
$1,924,857.
• Local Tax Capture: $4,373,700
• State Tax Capture: $4,427,600
The reimbursement period is anticipated to last until 2048, with collection of TIF
revenues beginning in 2026.
Project Timeline:
• Demolition and Site Preparation: Early 2025
• Construction Start: Mid-2025
• Completion of Construction: Late 2026
• TIF Revenue Collection: Beginning in 2026
• Developer Reimbursement Period: 2026-2048
Affordable Housing Impact: The project will provide 144 rental units, addressing
approximately 25% of the city’s projected rental housing needs for individuals
and families earning 51%-80% AMI by 2027.
Community and Economic Benefits:
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• Elimination of a longstanding blighted and hazardous structure,
improving neighborhood safety.
• Creation of new jobs during both the construction and operational
phases.
• Increase in property tax revenues to support public services.
• Revitalization of the Oak Avenue corridor, encouraging further private
investment in the area.
The developer intends to apply for a PA 210 (Commercial Rehabilitation
Exemption Certificate. If the developer is approved, the taxable value of the
property will be frozen during the duration of the certificate (1-10 years).
The Brownfield Redevelopment Authority approved this Brownfield Plan
Amendment on February 10th during their scheduled monthly meeting and
recommended moving it forward for final approval by the City Commission.
STAFF RECOMMENDATION: I move to close the Public Hearing and approve the
Brownfield Plan Amendment for the redevelopment project located at 1700
Oak Ave. 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 Vice Mayor St.Clair, second by Commissioner German, to close the
Public Hearing and approve the Brownfield Plan Amendment for the
redevelopment project located at 1700 Oak Ave. and authorize the Mayor and
City Clerk to sign the resolution.
ROLL VOTE: Ayes: German, Gorman, St.Clair, Johnson, and Kilgo
Nays: None
MOTION PASSES
PUBLIC COMMENT ON AGENDA ITEMS
Public comments received.
2025-16 CONSENT AGENDA
A. Approval of Minutes City Clerk
Approve minutes of the February 10, 2025, Commission Worksession Meeting
and the February 11, 2025, City Commission Meeting.
STAFF RECOMMENDATION: Approval of the minutes.
B. City of Muskegon 4th of July Fireworks Agreement DPW- Parks
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City of Muskegon 4th of July Fireworks Agreement with Pyrotecnico for a
$40,000 fireworks show at Heritage Landing.
Staff is requesting authorization to enter into an agreement with Pyrotecnico
Fireworks for $40,000 for the annual fireworks show in Muskegon, and approval
of the fireworks display permit for Pyrotecnico contingent upon inspection of
the fireworks and approval of the insurance. The annual Fireworks contract of
$40,000 will be scheduled for July 4, 2025. The agreement is of the standard
form with Pyrotecnico that the City has entered into for the past several years.
The show this year is being planned at Heritage Landing out of concern for
public safety. We plan to have a DJ start at 8:30 p.m. and the fireworks to set
off at 10:30 p.m.
STAFF RECOMMENDATION: I move to authorize staff to enter into an agreement
with Pyrotecnico Fireworks for $40,000 for the annual fireworks show in
Muskegon, and approval of the fireworks display permit for Pyrotecnico.
D. Use Agreement - Muskegon YMCA DPW- Parks
Staff is requesting approval of an agreement with the Muskegon YMCA for use
of city facilities.
The Muskegon YMCA has requested to run various community programs at
Smith-Ryerson and McGraft Parks. This agreement will cover all programs
through August 2025.
Specific summer 2025 programs have yet to be finalized, but will be similar to
programs run in 2024. For context, last year, the YMCA hosted a full-day
summer camp at McGraft Park, with a weekly average of 50 kids. The goal for
summer 2025 would be to replicate that success in other parts of the city, Smith-
Ryerson, for example, and to bring new types of programs.
Costs are primarily covered by the YMCA, with any City contributions being a
part of the approved Recreation Department budget and following the
purchasing policy.
STAFF RECOMMENDATION: Authorize staff to enter into an agreement with
Muskegon YMCA for use of City facilities.
E. Sale of 1325 Terrace Planning
Staff is requesting approval of a Purchase Agreement for 1325 Terrace. 1325
Terrace was constructed through an agreement with Dave Dusendang to
construct infill housing with ARPA funding. The offer is for $155,200, which is
above the listing price of $149,900; with no seller concessions. The offer
includes a $5,000 appliance package and a $300 commission, totaling
$155,200.
STAFF RECOMMENDATION: To approve the Purchase Agreement for 1325
Terrace.
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H. Muskegon Police Department Renovations Public Safety-Police
Staff is seeking to authorize the award of a construction contract for the
renovation of the first floor of the police department.
The police department is seeking to remodel the entire department as a multi-
year capital improvement project. FY 24-25 has a budgeted cost of
$286,653.74 to renovate the first floor of the police department. The police
department is in need of a remodel due to outdated infrastructure, separated
work areas, lack of storage and inadequate work space.
This project received 5 bids for the construction of the renovations with
Muskegon Quality Builders coming in at the lowest bid and the only bid within
budget. The police department recommends awarding the contract to
Muskegon Quality Builders due to their cost and history of professionalism and
quality projects.
STAFF RECOMMENDATION: I move to award the Police Department - First Floor
Renovations construction contract to Muskegon Quality Builders at the cost of
$284,500.
I. 880 First St. Demolition- Asbestos Abatement Proposal Economic
Development
City staff requests approval of Asbestos Abatement Inc.'s proposal for
additional abatement work that is required for the demolition of the 880 First St.
structure. The City of Muskegon solicited bids from qualified contractors for the
demolition of the building located at 880 First St., Muskegon, MI 49440 in July
2024. The scope of work includes complete demolition and removal of the
structure, including all foundations and footings, backfilling the site,
hydroseeding, and asbestos abatement. The primary objective is to eliminate
blight, improve the area's aesthetic appeal, and encourage economic
development by preparing the site for future opportunities.
Asbestos Abatement Inc. was awarded the bid by the City Commission on
October 8, 2024. They completed the majority of the asbestos abatement but
found additional unknown materials located on the roof. Due to the new
finding, additional abatement is required before the company can proceed
with demolition. Asbestos Abatement Inc. has submitted their abatement
proposal for the new materials, which are also attached for your review.
Scope of Work
• Removal and disposal of asbestos-containing materials in Supplemental
Material Testing Report dated 2/19/25
• Required personal air monitoring and clearances included. Continuous
third-party air monitoring is not included.
• State notifications and permits included.
Price: $27,400
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STAFF RECOMMENDATION: I move to approve the proposal from Asbestos
Abatement Incorporated for the additional asbestos abatement work required
at 880 First St. in the amount of $27,400 and authorize the City Manager to sign
the proposal.
Motion by Commissioner Kilgo, second by Commissioner Gorman, to approve
the Consent Agenda as presented minus items C, F, and G.
ROLL VOTE: Ayes: St.Clair, Johnson, Kilgo, German, and Gorman
Nays: None
MOTION PASSES
2025-17 ITEMS REMOVED FROM THE CONSENT AGENDA
C. City of Muskegon Park Rules DPW- Parks
Staff seeks approval of the 2025 City of Muskegon Park Rules.
The Parks & Recreation Advisory workshopped rules and are recommending
the document to be adopted as City of Muskegon Park rules. The rules listed
here were unanimously agreed upon via vote. While certain parks may have
special rules for their unique park usage (such as Pere Marquette & Hackley
Park), these rules will be across the board for all parks both community and
neighborhood. Seasonal park rangers will assist enforcement of rules alongside
Muskegon Public Safety.
STAFF RECOMMENDATION: To adopt the 2025 City of Muskegon Park Rules as
presented.
Motion by Commissioner German, second by Commissioner Kilgo, to adopt the
2025 City of Muskegon Park Rules as presented.
Motion by Commissioner German to amend the motion to adopt the 2025 City
of Muskegon Park Rules as presented with the removal of item 4 which shall be
referred back to the Parks and Recreation Advisory Committee for
consideration of designated areas.
MOTION FAILS – NO SECOND
Motion by Commissioner Kilgo, second by Vice Mayor St.Clair, to amend the
City of Muskegon Park Rules number 4 to keep no smoking but remove or
vaping from the wordage.
(Vote on amendment)
ROLL VOTE: Ayes: St.Clair, Johnson, and Kilgo
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Nays: German and Gorman
MOTION DID NOT PASS
(Vote on original motion)
ROLL VOTE: Ayes: St.Clair, Johnson, and Gorman
Nays: Kilgo, and German
MOTION DID NOT PASS
F. Amendment to the zoning ordinance - Cottage Court
Developments Planning
Staff-initiated request to amend Section 400 and Articles II and XX of the zoning
ordinance to create regulations that allow for cottage court developments.
• A cottage court development is a type of housing design that typically
consists of a cluster of small, single-story homes or cottages arranged
around a shared central courtyard or green space. This design is often
used to create a community-oriented environment, where the homes
are in close proximity to each other, and the shared space fosters social
interaction and a sense of belonging.
• Some key features of a cottage court development include:
o Central Courtyard: The homes are typically arranged around a
shared outdoor space, such as a garden, lawn, or courtyard,
creating a more communal feel.
o Small-Scale Homes: The individual units, often referred to as
cottages, are generally smaller in size and designed to be more
affordable or efficient.
o Pedestrian-Friendly: These developments are often designed with
pedestrians in mind, with pathways connecting the homes and the
central shared space.
o Sense of Community: Because of the proximity and shared spaces,
cottage courts are intended to encourage neighborly interaction,
fostering a tight-knit community.
• The type of density proposed in these types of developments is similar to
the density allowed in the recent zoning reform amendments.
• The zoning amendments proposed would do the following:
o Create a definition for Cottage Court Developments.
o Create a section in the zoning ordinance under General Provisions
that regulates Cottage Court Developments.
o Allows Cottage Court Developments as a use by right (under
certain conditions) in the following zoning districts: R, FBC-NE, FBC-
UR, LFBC-LMR, and LFBC-LR.
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The Planning Commission unanimously (7-0, 2 members absent) recommended
approval of the ordinance amendments.
STAFF RECOMMENDATION: I move to approve the request to amend Section
400 and Articles II and XX of the zoning ordinance to create regulations that
allow for cottage court developments as proposed.
Motion by Commissioner German, second by Commissioner Kilgo, to approve
the request to amend Section 400 and Articles II and XX of the zoning
ordinance to create regulations that allow for cottage court developments as
proposed.
ROLL VOTE: Ayes: Johnson, Kilgo, German, Gorman, and St.Clair
Nays: None
MOTION PASSES (REQUIRES SECOND READING)
G. Amendment to the zoning ordinance - Accessory Commercial
Units Planning
Staff-initiated request to amend Section 400 and Articles II and XX of the zoning
ordinance to create regulations that allow for accessory commercial units.
• An "accessory commercial unit" (ACU) is a small commercial space, like
a retail store or office, that is attached to or built on the same property as
a residential dwelling, essentially acting as a secondary business space
within a residential neighborhood, similar to how an accessory dwelling
unit (ADU) is a secondary living space on a residential lot.
• ACUs are often seen as a way to bring local businesses closer to residents
and increase neighborhood vibrancy without significantly altering the
character of the area.
• The Future Land Use Map created during the Master Plan process,
includes “community node” areas where higher densities and uses
should be considered.
• The Master Plan recommends uses such as these in the following sections
of the document:
o Housing & Neighborhoods: Goal 3: Create walkable community
nodes within a short distance of all residents. Identify existing or
potential community nodes in each city neighborhood to serve as
a strong center(s) from which the neighborhood can orient itself
and build upon. Update land use regulations to permit better
integration of different land uses at identified community nodes.
• Economic Development: Goal 2: Create viable commercial corridors
and community nodes. Simplify zoning regulations to permit flexibility in
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business types. The zoning amendments proposed would do the
following:
o Create a definition for Accessory Commercial Unit.
o Create an Accessory Commercial Unit Overlay District. ACUs would
only be allowed within these boundaries and under these
guidelines.
The Planning Commission unanimously (7-0, 2 members absent) recommended
approval of the ordinance amendment.
STAFF RECOMMENDATION: I move to approve the request to amend Section
400 and Articles II and XX of the zoning ordinance to create regulations that
allow for accessory commercial units as presented.
Motion by Commissioner German, second by Vice Mayor St.Clair, to approve
the request to amend Section 400 and Articles II and XX of the zoning
ordinance to create regulations that allow for accessory commercial units as
presented.
ROLL VOTE: Ayes: Kilgo, German, Gorman, St.Clair, and Johnson
Nays: None
MOTION PASSES (REQUIRES SECOND READING)
ANY OTHER BUSINESS
Commissioner German, in honor of Black History Month, paid tribute to Fredrick
Douglas, Dr. Martin Luther King Jr., and Thurgood Marshall, three pioneers who
led the way for equality and justice.
Commissioner Kilgo asked that it be explained better to our residents how even
and odd parking works.
Vice Mayor St.Clair asked why we don’t have signage explaining what our
parking rules are.
City Manager Jonathan Seyferth stated we will be putting signage up at the
entrances to the City stating our winter parking rules. This is also in the citizen
newsletter each fall.
Mayor Johnson asked about giving warnings, regardless of the time, for the first
parking offense. He also mentioned that winter parking will be ending in a few
days, it ends March 1st.
Commissioner Kilgo asked if staff could share the QR Code with the public so
comments, which will be accepted until March 10th for the M-46 (Apple
Avenue) MDOT Project, could still be made.
Mayor Johnson asked that the design that was presented this week by MDOT
be added to our Connect Muskegon page.
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Commissioner German asked where the City stands reference the DEI initiative
and if we received any letters requesting us to pull back.
City Manager Jonathan Seyferth answered we have not.
Mayor Johnson mentioned that in the February Deputy City Managers update,
LeighAnn Mikesell shared the Human Resources Progress and that two of the
policies were highlighted as models for future development.
GENERAL PUBLIC COMMENT
No public comments were made.
2025-18 CLOSED SESSION
A. Discuss two different attorney client confidential
communications Manager's Office
Motion by Vice Mayor St.Clair, second by Commissioner Kilgo, to go into
Closed Session to consider material exempt from discussion and disclosure by
State or Federal Statute, being an attorney client communication.
ROLL VOTE: Ayes: Gorman, St.Clair, Johnson, Kilgo, and German
Nays: None
MOTION PASSES
Motion by Vice Mayor St.Clair, second by Commissioner Kilgo, to come out of
Closed Session.
ROLL VOTE: Ayes: Johnson, Kilgo, German, Gorman, and St.Clair
Nays: None
MOTION PASSES
ADJOURNMENT
The City Commission meeting adjourned at 9:04 p.m.
Respectfully Submitted,
Ann Marie Meisch, MMC City Clerk
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