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CITY OF MUSKEGON CITY COMMISSION MEETING April 8, 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, April 8, 2025. Reverend Dr. D. W. Tolbert from the New Hope Baptist 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, and Katrina Kochin, City Manager Jonathan Seyferth, Assistant City Attorney William Meier, and City Clerk Ann Marie Meisch Absent: Commissioner Destinee Keener 2025-28 PUBLIC HEARINGS A. Brownfield Plan Amendment- 221 W. Webster Ave., 1040 2nd St., 221 West Webster, LLC Economic Development 221 West Webster, LLC is requesting consideration of their brownfield plan amendment for the redevelopment project located at 221 West Webster Avenue and 1040 2nd Street. The City of Muskegon Brownfield Redevelopment Authority has received a request from 221 West Webster, LLC for approval of a Brownfield Plan Amendment under Act 381. The proposed amendment involves the completed redevelopment of the former Huntington Bank building, known as Core Plaza, located at 221 West Webster Avenue & 1040 2nd Street, Muskegon, MI 49440. The redevelopment, initiated in 2021 and completed in 2025, successfully transformed the building into a multi-suite commercial structure featuring a restaurant, boutique retail spaces, and office space. The completed project consists of 42,888 sq ft of restored commercial space with an estimated 45 jobs created. Approval of the Act 381 Brownfield Plan Amendment to include the eligible property located at 221 West Webster Avenue & 1040 2nd Street within the City’s existing Brownfield Plan. This amendment permits the use of tax increment financing (TIF) to reimburse the developer for eligible activities Page 1 of 11 totaling $838,500. The estimated administrative cost to the Authority is $105,018, and the Local Brownfield Revolving Fund capture is estimated at $306,814. The Public Hearing opened to hear and consider any comments from the public. No public comments were made. STAFF RECOMMENDATION: I move to close the public hearing and approve the Brownfield Plan Amendment for 221 West Webster, LLC and authorize the Mayor and City Clerk to sign. Motion by Commissioner German, second by Commissioner Kochin, to close the public hearing and approve the Brownfield Plan Amendment for 221 West Webster, LLC and authorize the Mayor and City Clerk to sign. ROLL VOTE: Ayes: Kilgo, German, Gorman, Kochin, St.Clair, and Johnson Nays: None MOTION PASSES PUBLIC COMMENT ON AGENDA ITEMS No public comments were received. 2025-29 CONSENT AGENDA A. Approval of Minutes City Clerk To approve minutes of the March 25, 2025, City Commission Meeting. STAFF RECOMMENDATION: Approve the minutes. D. Fireworks Display Permit for Muskegon Country Club City Clerk Pyrotecnico Fireworks, Inc., is requesting approval of a fireworks display permit for Saturday, July 5, 2025, at Muskegon Country Club, 2801 Lakeshore Drive. The Fire Marshall will inspect the fireworks on the day of the event. STAFF RECOMMENDATION: Approve the fireworks display permit for Pyrotecnico Fireworks, Inc., contingent upon inspection of the fireworks. E. Rezoning of 1201 and 1147 3rd St and 236 Monroe Ave. (SECOND READING) Planning Staff-initiated request to rezone the properties at 1201 and 1147 3rd St and 236 Monroe Ave from Convenience & Comparison Business (B-2) to Form-Based Code, Mainstreet (FBC, MS). The “Midtown” portion of 3rd was rezoned from B-2 to Form-Based Code, Mainstreet in 2015. During the rezoning process a couple of property owners were hesitant to Page 2 of 11 rezone because of current or potential developments. The vacant lot at 1201 3rd St was being used as a used-car sales lot at the time, but it has been vacant for close to 10 years. It’s not exactly clear why the parking lot of 1147 3rd St and 236 Monroe Ave were not rezoned at the time. However, both of the parcels are considered non- buildable under the B-2 designation because they do not meet the minimum lot size of 10,890 sf and 100 feet of width. At the public hearing, the property owners adjacent to the property at 236 Monroe Ave disagreed with the recommendation to rezone it to FBC, MS. Staff agreed with them and suggested that we remove 236 Monroe Ave off of the request. Staff will bring forward another zoning amendment request in the future to rezone the property to FBC, UR. The Planning Commission unanimously recommended to approve the request to rezone 1201 and 1147 3rd St from B-2 to FBC, MS. STAFF RECOMMENDATION: I move to approve the rezoning of 1147 and 1201 3rd St from B-2 to Form Based Code, MS. F. Rezoning of 1148 4th St and 318/350 Houston Ave. (SECOND READING) Planning Staff-initiated request to rezone the properties at 1148 4th St, 318 Houston Ave from Limited Business (B-1), and 350 Houston Ave from High-Density Multiple-Family Residential (RM-3) to Form-Based Code, Neighborhood Core (FBC, NC). This area of “Midtown” was rezoned to Form Based Code in 2015. Most of the parcels were zoned to FBC, UR because they were either single-family, duplex, or small multiplex buildings. At the time, these three properties were left out of the rezoning because they did not fit the FBC, UR designation. However, staff has reviewed the form-based code and has determined that the FBC, NC designation will work well for these properties and the buildings and uses would be considered legally conforming. The Nelson Place apartments would be considered a Flex building in the form-based code and the new designation would even allow for mixed-uses if the chose to do that someday. The properties at 1148 4th St and 318 Houston would be considered small multiplexes. Small multiplexes were not allowed as a permitted use in FBC, UR districts at that time, so this property was not included in the initial rezoning request of 2015. This density is allowed within the FBC, NC zoning designation and so are the office uses. The Planning Commission unanimously (7-0, two members absent) recommended approval of the rezoning request. STAFF RECOMMENDATION: I move to approve the request to rezone the properties at 1148 4th St, 318 Houston Ave, and 350 Houston Ave to Form-Based Code, Neighborhood Core. Page 3 of 11 H. Rezoning of several properties from Two-Family Residential (RT) to Neighborhood Residential (R). (SECOND READING) Planning Staff-initiated request to rezone the following properties from Two-Family Residential (RT) to Neighborhood Residential (R): 410/420/428/438/448/456/466/478/508/524/528/530/532/558/562/568/580/586/592/600 Adams Ave, 275 Marshall St, 462/478/494/508/524/540/556/568/594 S Quarterline Rd, 1150/1160/1168/1192/1206 Ambrosia St, 370/376/384/390 Catherine Ave, 1174/1185/1191 Wood St, 353/357/361/369 E Isabella Ave, 1113/1119 Sophia St, 396/422/428/438 McLaughlin Ave, 463 Catawba Ave, 557 McLaren St, 2407 Barclay St, 11/17 Delaware Ave, and 955 W. Laketon Ave. As described in the previous case, staff recommends eliminating the RT zones because we now have better options to allow for duplexes and higher densities. Staff is proposing to rezone these properties from RT to R, Neighborhood Residential. These lots fit the size requirements for the proposed zoning district and the rezonings will make most of these lots legally conforming, whereas most of them are considered legally, non-conforming under the RT designation. These lots are characterized as small-to-medium sized residential lots without the presence of an alley. Without an alley present, the R designation allows only single-family detached houses, duplexes, and accessory dwelling units. Triplexes would not be allowed because there are no alleys associated with these lots. Staff held a focus group in February with all of the associated property owners. Those in attendance were very supportive of the initiative and requested that we move forward with the rezonings. Notice was sent to all properties within 300 feet of the properties to be rezoned. At the time of this writing, staff has not received any comments from the public. The Planning Commission unanimously (7-0, two members absent) recommended to approve the rezoning request. STAFF RECOMMENDATION: I move to approve the request to rezone the above listed addresses from Two-Family Residential (RT) to Neighborhood Residential (R). I. Rezoning of 1769, 1733, 1715, 1766, 1752, 1736, 1724, 1720, and 1714 Beidler St. (SECOND READING) Planning Staff-initiated request to rezone the following properties from Neighborhood Residential (R) to Form-Based Code, Neighborhood Edge (FBC-NE): 1769/1733/1715/1766/1752/1736/1724/1720/1714 Beidler St. This section of Beidler St intersects with the business district along Laketon Ave and is comprised mostly of mixed-use and retail buildings. However, many of the buildings and most of their uses are considered legally non-conforming because they are all zoned R, Neighborhood Residential. The current zoning designation limits development and use options and requires building owners to apply for Special Use Permits for any commercial or multifamily uses. Staff believes these buildings would be better served with a Form Based Code designation that allows for mixed-uses by right. Page 4 of 11 The mid-block alley serves as a natural barrier between the properties proposed for rezoning and the R district to the north. The property at 1727 Beidler St was recently rezoned to FBC, NE this February. The Planning Commission unanimously (7-0, two members absent) recommended to approve the rezoning request. STAFF RECOMMENDATION: I move to approve the request to rezone the addresses listed above from R, Neighborhood Residential to Form Based Code, Neighborhood Edge. M. Community Organization Gatherings at Farmers Market City Clerk Staff met with the City Attorneys to create a guideline for requests from community organizations to be in attendance at the farmers market. The Farmers Market receives requests from organizations to participate at the farmers market to raise funds for their organization, bring awareness to their organization, gather signatures for petitions, etc. The City Attorneys reviewed our current guideline and suggested some changes. Staff is suggesting groups must fill out the request to be at the market. Three organizations will be allowed at the market at a time. The organization may bring one - four foot table and two chairs and a 10x10 tent. The Market Manager will place the organization between the picnic table area and food trucks on Market Street. Organizations may attend up to three times per season. Selling of items will be prohibited. STAFF RECOMMENDATION: To approve the Community Organization application as presented. N. Datacenter Core Technology Upgrade Information Technology Staff recommends the approval of the equipment and licensing for our main data center upgrade. The core infrastructure of our primary data center is aging and needs upgrades. Our servers have been in production for over eight years, and extended support for them ends in April 2025. The network switches have been in production for over 10 years, are no longer supported, and are considered end-of-life. The Windows Server licensing is required to upgrade our virtual servers to the latest versions. STAFF RECOMMENDATION: To approve the purchase of data center hardware and licensing upgrades. O. Concur with CRC Recommendations City Clerk To concur with CRC recommendations to accept resignation and make appointments. To accept the resignation of Dave Wendtland from the Civil Service Commission and appoint Georgia Moss as Citizen, with a term ending 1/31/2027; appoint Nils Bodman Page 5 of 11 to the Lakeside Business Improvement District as Assessed Property Owner or Representative, with a term ending 1/31/2026; and appoint William C. Muhammad to the Citizen's Police Review Board as a Member of a Minority-Based Organization, with a term ending 1/31/2027. STAFF RECOMMENDATION: To accept the resignation of Dave Wendtland from the Civil Service Commission and appoint Georgia Moss as Citizen, with a term ending 1/31/2027; appoint Nils Bodman to the Lakeside Business Improvement District as Assessed Property Owner or Representative, with a term ending 1/31/2026; and appoint William C. Muhammad to the Citizen's Police Review Board as a Member of a Minority-Based Organization, with a term ending 1/31/2027. Motion by Vice Mayor St.Clair, second by Commissioner Gorman, to approve the Consent Agenda as presented minus Items B, C, G, J, K and L. ROLL VOTE: Ayes: German, Gorman, Kochin, St.Clair, Johnson, and Kilgo Nays: None MOTION PASSES 2025-30 ITEMS REMOVED FROM THE CONSENT AGENDA B. Beach Shuttle Service Recommendation Manager's Office Staff is requesting approval of the proposed beach shuttle service. Staff has investigated options for transit service to and among our beaches. Proposals were made by Muskegon Area Transit and Pioneer Resources. The first is a beach circulator option where transit service will circulate among Harbour Towne, Margaret Drake Eliot, Pere Marquette, Beachwood, and Kruse Parks. The second option is a downtown to beach connector providing connection from Downtown and Lakeside to Pere Marquette Park. Each end of the route is further serviced by transit through the beach circulator and regular MATS operations/routes (during times of regular MATS operations). Adjustments were made to each of the options per discussion at the recent work session. Beach Circulator to 8 pm to 9 pm MATS $18,000 $18,400 Pioneer Resources $25,100 $25,900 Downtown to Beach to 8 pm to 9 pm Connector MATS $67,500 did not request a quote Pioneer Resources 1 bus $25,100 $25,900 Pioneer Resources 2 busses $50,200 $51,800 Page 6 of 11 Staff recommends contracting with MATS for the beach circulator and with Pioneer Resources for two busses to cover the downtown to beach connector. Costs for the service will be borne by beach parking revenue. Staff also recommends conducting surveys during the summer service to understand how it is received and what changes should be considered for the future. Once commissioners agree on the service proposal, formal contracts will be developed and follow the approval process per the purchasing policy. STAFF RECOMMENDATION: to approve the beach shuttle service proposal. Motion by Commissioner German, second by Commissioner Gorman, to approve the beach shuttle service proposal. ROLL VOTE: Ayes: German, Gorman, Kochin, St.Clair, Johnson, and Kilgo Nays: None MOTION PASSES C. Amendment to the zoning ordinance - Planned Unit Development (PUD) compliance Planning Staff-initiated request to amend Section 2101 of the zoning ordinance to require the Zoning Administrator to review all Planned Unit Development sites for accuracy before a certificate of occupancy can be issued for any building. Staff is proposing to add additional language to the PUD regulations that requires the Zoning Administrator to ensure compliance with the site plan before a certificate of occupancy can be obtained for a building. There have been some issues over the years with some PUDs receiving a certificate of occupancy without fully complying with the approved site plan. Most recently, the absence of this proposed language has caused confusion in the Harbour Towne development regarding the installation of sidewalks. A certificate of occupancy is issued by the Inspections Department. If the amendment is approved, the Inspections Department would require the Zoning Administrator to sign off on the project before the certificate of occupancy is issued. The Planning Commission recommended a different wording for the ordinance amendment. They unanimously recommended in favor (6-0, 3 members absent) of the following ordinance language: Section 2101 6. The Zoning Administrator shall ensure reasonable progress is being made to comply with all of the provisions and requirements of the PUD plan and construction and placement of all of the improvements therein before a certificate of occupancy may be issued for any building within the PUD. Before a certificate of occupancy for the final elements of the PUD, the Zoning Administrator shall ensure complete compliance with all of the provisions and requirements of the PUD plan and construction and placement of all of the improvements therein before a certificate of occupancy is issued. Page 7 of 11 STAFF RECOMMENDATION: I move to approve the amendment to Section 2101 of the zoning ordinance as proposed by the Planning Commission. Motion by Commissioner Kilgo, second by Commissioner Kochin, to approve the amendment to Section 2101 of the zoning ordinance as proposed by the Planning Commission. ROLL VOTE: Ayes: Gorman, Kochin, St.Clair, Johnson, Kilgo, and German Nays: None MOTION PASSES (REQUIRES SECOND READING) G. Rezoning of 429, 433, 451, 461, 477, 485, 491, 501, 507, 513, 521, 527 E Apple Ave and 1022 Williams St. (SECOND READING) Planning Staff-initiated request to rezone the following properties from Two-Family Residential (RT) to Form-Based Code, Neighborhood Edge (FBC, NE): 429/433/451/461/477/485/491/501/507/513/521/527 E Apple Ave and 1022 Williams St. There are only 70 properties within the City that are zoned RT, Two-Family Residential. The zoning designation could be considered outdated because we now have the FBC, UR designation that also allows for duplexes. The RT designation requires large lots for the development of duplexes, whereas the FBC designation allows for their development on smaller lots. RT lots must be at least 8,712 sf in size and at least 75 feet wide. This requirement makes almost all properties zoned RT legally-non-conforming because they are not wide enough. Nothing could be developed on most of these properties and the existing houses are considered grandfathered. A duplex in the FBC designation can be built on a lot that is only 40 feet wide. The FBC, UR designation allows for single-family detached houses, duplexes and accessory dwellings units. It also allows for triplexes if there is an alley present. Staff recommends eliminating the RT zoning designation. In order to do so, we must first rezone all 70 of the RT properties that currently exist. Staff proposes to rezone these 10 properties to FBC, NE because they are located along Apple Ave adjacent to a business district and there are also alleys present, so the infrastructure already exists to support higher density. Staff held a focus group in February with all of the associated property owners. Those in attendance were very supportive of the initiative and requested that we move forward with the rezonings. Notice was sent to all properties within 300 feet of the properties to be rezoned. At the time of this writing, staff has not received any comments from the public. The Planning Commission unanimously (7-0), two members absent) recommended approval of the rezoning request. STAFF RECOMMENDATION: I move to approve the request to rezone the addresses Page 8 of 11 listed above from RT to FBC, NE. Motion by Commissioner German, second by Vice Mayor St.Clair, to approve the request to rezone the addresses listed above from RT to FBC, NE. ROLL VOTE: Ayes: Kochin, St.Clair, Johnson, Kilgo, German, and Gorman Nays: None MOTION PASSES J. Ordinance Amendment - International Property Maintenance Code Public Safety Building codes are currently enforced by the 2015 International Property Maintenance Code and need to be updated to follow the 2021 version. City of Muskegon Building Inspections follow the International Property Maintenance Code (IPMC) to enforce property maintenance. Ordinances are currently written to follow the 2015 code but need to be updated to reflect the 2021 IPMC. Adopting the 2021 IPMC ensures consistent, minimum standards for property maintenance, promotes public health and safety and provides clear expectations for property owners and occupants. STAFF RECOMMENDATION: I move to adopt the 2021 International Property Maintenance Code for all city ordinances. Motion by Commissioner Kilgo, second by Vice Mayor St.Clair, to adopt the 2021 International Property Maintenance Code for all city ordinances. ROLL VOTE: Ayes: St.Clair, Johnson, Kilgo, German, Gorman, and Kochin Nays: None MOTION PASSES (REQUIRES SECOND READING) K. Approval of Amendment from Placer Labs. Inc. Economic Development The City of Muskegon's Placer agreement is due for renewal. The City of Muskegon entered into an Order Form agreement with Placer Labs, Inc. on April 14, 2021, which is now due for renewal. This Amendment extends the agreement for an additional 12 months starting on April 14, 2025. Key changes include: • Annual License Fee Increase: From $16,800 to $17,640. • Future Fee Increases: Placer Labs, Inc. may increase fees annually, by the greater of CPI or 5% per annum. STAFF RECOMMENDATION: I move to approve the Amendment to Order Form to continue services with Placer Labs, Inc. under the revised terms and authorize Jake Page 9 of 11 Eckholm to sign. Motion by Vice Mayor St.Clair, second by Commissioner Gorman, to approve the Amendment to Order Form to continue services with Placer Labs, Inc. under the revised terms and authorize Jake Eckholm to sign. ROLL VOTE: Ayes: Johnson, Kilgo, German, Gorman, Kochin, and St.Clair Nays: None MOTION PASSES L. City of Muskegon Park Rules DPW- Parks Staff requests approval of Park Rules for City of Muskegon Parks. These are the same rules proposed to the Commission in February and failed to pass. The PRAC (Parks & Recreation Advisory Committee) voted to propose the same rules again to encourage the City Commission to find a way to move forward. The PRAC continues to believe clear park rules are important to support park rangers and resident safety. STAFF RECOMMENDATION: Move to adopt the Park Rules for City of Muskegon Parks as presented. Motion by Commissioner Kochin, second by Commissioner Kilgo, to adopt the Park Rules for City of Muskegon Parks as presented with an amendment to rule #4 - Restrictions on Smoking and Vaping: No smoking or vaping within 100 feet of play areas and pavilions. ROLL VOTE: Ayes: Kilgo, Gorman, Kochin, St.Clair, and Johnson Nays: German MOTION PASSES 2025-31 NEW BUSINESS A. 2nd Quarter Reforecast FY 2024-25 Finance At this time, staff is asking for approval of the 2nd Quarter budget reforecast for the 24/25 fiscal year. Highlights of 2nd Quarter Budget Reforecast: 101 General Fund Revenues: Overall General Fund revenue projections are going up close by almost $1,000,000. Led by Marijuana Tax collections, Miscellaneous, Federal Grants, and Parking Revenues. Expenditures: Page 10 of 11 Overall, General Fund expenditures went up by $600,000. Mostly due to salary increases and grant expenditures Overall, the General Fund has reduced the Original budgeted deficit by more than $300,000. STAFF RECOMMENDATION: To approve the 2nd Quarter fiscal year 2024-25 budget reforecast as presented by staff. Motion by Vice Mayor St.Clair, second by Commissioner German, to approve the 2nd Quarter fiscal year 2024-25 budget reforecast as presented by staff. ROLL VOTE: Ayes: German, Gorman, Kochin, St.Clair, Johnson, and Kilgo Nays: None MOTION PASSES ANY OTHER BUSINESS Commissioner Kochin asked why backing into the angled parking spaces at the beach is not allowed. City Manager Jonathan Seyferth, and Director Tim Kozal stated it is not allowed because of how they are angled. If you back in, when you pull out you will be facing the wrong way into traffic. It is part of our parking code. It was also mentioned that there are a number of Easter Egg Hunts around the City. Commissioner Kilgo asked if there has been a decision made on the Docks at Hartshorn. City Manager Jonathan Seyferth stated the we’re operating under the premise that the developer is going to move forward with it on their own. Mayor Johnson wanted to acknowledged and celebrated Commissioner Gorman for her recognition as Women of Influence by Crain’s Grand Rapids Business Journal. GENERAL PUBLIC COMMENT Public comments received. ADJOURNMENT The City Commission meeting adjourned at 7:59 p.m. Respectfully Submitted, Ann Marie Meisch, MMC City Clerk Page 11 of 11
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