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CITY OF MUSKEGON CITY COMMISSION MEETING August 12, 2025 @ 5:30 PM MUSKEGON CITY COMMISSION CHAMBERS 933 TERRACE STREET, MUSKEGON, MI 49440 MINUTES CALL TO ORDER The Regular Commission Meeting of the City of Muskegon was held at City Hall, 933 Terrace Street, Muskegon, Michigan at 5:30 p.m., Tuesday, August 12, 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 Jay Kilgo, Destinee Keener, Rachel Gorman, and Katrina Kochin, City Manager Jonathan Seyferth, City Attorney John Schrier, and City Clerk Ann Marie Meisch Absent: Commissioner Willie German, Jr. 2025-65 HONORS, AWARDS, AND PRESENTATIONS A. HBCU Club of Muskegon - Tarra Carson Mayor's Office Tarra Carson and Tinoko explained that the HBCU Club of Muskegon provides program and career services to residents in the west Michigan area for grades 7 through college. They gave an update and thanked the City Commission for their support. B. Zoe from the Nelson Neighborhood spoke about the litter issue in the City of Muskegon. Would like to have community cleanups that involve the children because if we involve the children then they will grow into caring adults. 2025-66 PUBLIC HEARINGS A. PA 210 Commercial Rehabilitation Certificate - 1700 Oak Avenue Economic Development Pursuant to Public Act 210 of 2005, as amended, Muskegon Central Park, LLC has requested the issuance of a Commercial Rehabilitation Certificate at 1700 Oak Avenue. Page 1 of 19 Muskegon Central Park, LLC is requesting a Commercial Rehabilitation Certificate for the property located at 1700 Oak Avenue. This site is the former General Hospital, which is now planned for redevelopment into six (6) three-story multifamily buildings, totaling 144 dwelling units ranging from one (1) to three (3) bedrooms. A Commercial Rehabilitation District for this site was established following a public hearing held by the City Commission on July 22, 2025, allowing taxing jurisdictions the opportunity to provide input. Establishment of the district is a required step prior to the consideration of a certificate under Public Act 210 of 2005. In addition to the PA 210 incentive, this project also received approval for a Brownfield Plan Amendment on February 25, 2025. If approved, the Commercial Rehabilitation Certificate will freeze the taxable value of the existing building (in this case, the vacant hospital structure), and exempt the new real property investment from local property taxes for the duration of the certificate. The school operating tax and State Education Tax (SET) will continue to be levied. Land and personal property are not eligible for exemption under this act. The estimated capital investment exceeds $21 million and is expected to create approximately 100 construction jobs, and generate three (3) new permanent jobs following project completion. The City’s internal tax committee has reviewed the application and is recommending an abatement duration of ten (10) years. STAFF RECOMMENDATION: I move to close the public hearing and approve the Commercial Rehabilitation Certificate for 1700 Oak Avenue for a duration of ten (10) years, 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 Keener, second by Commissioner Kochin, to close the public hearing and approve the Commercial Rehabilitation Certificate for 1700 Oak Avenue for a duration of ten (10) years, and authorize the Mayor and City Clerk to sign the application and the resolution. ROLL VOTE: Ayes: Johnson, Kilgo, Keener, Gorman, Kochin, and St.Clair Nays: None MOTION PASSES B. PA 198 Industrial Facilities Exemption - 701 W. Laketon Ave. Economic Development Pursuant to Public Act 198 of 1974, as amended, Molding Media of America, 701 W. Laketon Ave. has requested the issuance of an Industrial Facilities Exemption Certificate for the property located at 701 W. Laketon Ave. Molding Media of America (MMA) has submitted an application for an Industrial Page 2 of 19 Facilities Exemption (IFT) certificate for real property improvements at 701 W. Laketon Avenue, the former Great Lakes Die Cast facility. The company is proposing a capital rehabilitation investment of $185,000. If approved, the IFT certificate would reduce property taxes on the real property improvements by 50%. MMA is a newly established company created in response to the anticipated closure of the current fiberglass supplier for SRS Fiberglass Products. To fill this gap in the market, MMA intends to develop a 68,000 sq. ft. fiberglass processing facility to serve the automotive, commercial interiors, and HVAC markets. In addition to the real property investment, the company plans to make significant investments in equipment and create approximately 50 high-paying jobs over the next two years. As a new business, MMA has signed the City’s Equal Employment Opportunity and Inclusive Workforce Development Letter, affirming its commitment to building a workforce that reflects the diversity of the City of Muskegon. The City’s EEO & Employee Relations Director, in collaboration with the Economic Development Department, will monitor the company’s progress toward these workforce goals. Following review, the City’s Internal Tax Committee recommends approval of a 9-year abatement term for the proposed investment. STAFF RECOMMENDATION: I move to close the public hearing and approve the issuance of an Industrial Facilities Exemption Certificate for a period of nine (9) years for the property located at 701 W. Laketon Avenue, and to 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 Vice Mayor St.Clair, second by Commissioner Kochin, to close the public hearing and approve the issuance of an Industrial Facilities Exemption Certificate for a period of nine (9) years for the property located at 701 W. Laketon Avenue, and to authorize the Mayor and City Clerk to sign the application and the resolution. ROLL VOTE: Ayes: Kilgo, Keener, Gorman, Kochin, St.Clair, and Johnson Nays: None MOTION PASSES C. Neighborhood Enterprise Zone Certificates - 283 E. Walton Ave., 287 E. Walton Ave., 286 Myrtle Ave., 294 Myrtle Ave., 518 Oak Ave., 450 Orchard Ave., and 454 Orchard Ave. Economic Development The staff are requesting the approval of Neighborhood Enterprise Zone (NEZ) certificates for 15 years for a new construction home at 283 E. Walton Ave., 287 Page 3 of 19 E. Walton Ave., 286 Myrtle Ave., 294 Myrtle Ave., 518 Oak Ave., 450 Orchard Ave., and 454 Orchard Ave. An application for Neighborhood Enterprise Zone (NEZ) certificates has been received from RSW Holdings LLC and Barrowstone Capital LLC for the construction of single-family homes located at 283 E. Walton Ave., 287 E. Walton Ave., 286 Myrtle Ave., 294 Myrtle Ave., 518 Oak Ave., 450 Orchard Ave., and 454 Orchard Ave. The estimated construction cost for each home is $157,000. These properties were previously owned by the City of Muskegon. The applicant has met all local and state requirements necessary for the issuance of the NEZ certificate. STAFF RECOMMENDATION: I move to close the public hearing and approve Neighborhood Enterprise Zone (NEZ) certificates for 15 years at 283 E. Walton Ave., 287 E. Walton Ave., 286 Myrtle Ave., 294 Myrtle Ave., 518 Oak Ave., 450 Orchard Ave., and 454 Orchard Ave and authorize the City Clerk and Mayor to sign the certificates and resolutions. The public hearing opened to hear and consider any comments from the public. No public comments were made. Motion by Commissioner Kochin, second by Commissioner Kilgo, to close the public hearing and approve Neighborhood Enterprise Zone (NEZ) certificates for 15 years at 283 E. Walton Ave., 287 E. Walton Ave., 286 Myrtle Ave., 294 Myrtle Ave., 518 Oak Ave., 450 Orchard Ave., and 454 Orchard Ave and authorize the City Clerk and Mayor to sign the applications and resolutions. ROLL VOTE: Ayes: Keener, Gorman, Kochin, St.Clair, Johnson, and Kilgo Nays: None MOTION PASSES PUBLIC COMMENT ON AGENDA ITEMS No public comments were made. 2025-67 CONSENT AGENDA A. Approval of Minutes City Clerk To approve minutes of the July 22, 2025, City Commission Meeting. STAFF RECOMMENDATION: Approval of the minutes. B. Sale of 577, 695, 723 Amity and 461 White Planning Staff is seeking authorization to sell the City-owned vacant lots at 577, 695, and 723 Amity as well as 461 White to Robert Muusse. Robert Muusse would like to purchase the City-owned buildable lots at 577, 695, and 723 Amity as well as 461 White for $12,150 (75% of the True Cash Value of Page 4 of 19 $16,200) plus half of the closing costs, and the fee to register the deed. Robert Muusse will be constructing a single-family home on each of the properties, for a total of 6 homes. STAFF RECOMMENDATION: Authorize staff to sell the City-owned vacant lots at 577, 695, 723 Amity and 461 White to Robert Muusse. C. Sale of 619 Amity Planning Staff is seeking authorization to sell the City-owned vacant lot at 619 Amity to Four Properties LLC. Four Properties LLC (Tyce VanNoord) would like to purchase the City-owned buildable lot at 619 Amity for $3,750 (75% of the True Cash Value of $5,000) plus half of the closing costs, and the fee to register the deed. The parcel will be split into three buildable lots. Four Properties LLC will be constructing a duplex and an accessory dwelling unit (ADU) on two of the properties, and a duplex only on the third property; for a total of three duplexes and two ADUs. STAFF RECOMMENDATION: Authorize staff to sell the City-owned vacant lot at 619 Amity to Four Properties LLC. D. Filtration - Hypochlorite Storage Tank Liner Installations Public Works Staff is requesting authorization for the installation of two PVC liners for two hypochlorite storage tanks at the Water Filtration Plant from Wagner Enterprises Inc. The Water Filtration Plant uses sodium hypochlorite in the production of drinking water. The application of sodium hypochlorite is one of several crucial processes used to inactivate or remove pathogens from the water. Our current storage tanks were originally installed in 1997 and are showing signs of delamination on the interior walls. Replacing both tanks at this time would require significant building alterations, including removal of the roof, piping, and electrical components that are currently in the way. With the current configuration of the storage space, the installation of liners was their recommendation to extend the life of the tanks without undergoing significant building alterations to install new tanks. The installation of liners will also significantly reduce any downtime needed to extend the life of these tanks when compared to re-coating them with more fiberglass or similar materials. Fiberglass repairs have been undertaken in the past, but these repairs fail relatively quickly and do not provide a long- lasting solution. Wagner Enterprises Inc is the manufacturer’s representative for all of our Belding chemical storage tanks, including the hypochlorite tanks. Other bids were not solicited at this time, as staff feels Wagner Enterprises's experience with our specific tanks is invaluable. This should make for a smooth installation process as they are familiar with the construction and material of the current tanks. The Water Filtration Plant has used an average of 456 tons of liquid sodium Page 5 of 19 hypochlorite in the previous two fiscal years and is a critical component in producing safe drinking water for the City of Muskegon and our surrounding wholesale communities. STAFF RECOMMENDATION: I move to authorize staff to contract with Wagner Enterprises Inc for the installation of two PVC liners in two hypochlorite storage tanks at the Water Filtration Plant. E. Filtration - Powder Activated Carbon (PAC) Public Works Staff requests authorization to purchase Powder Activated Carbon (PAC) from Water Solutions Unlimited for $33,290. PAC is added to the water at the beginning of the treatment process during the summer and fall to remove taste and odor compounds. For many years, PAC was purchased from Water Solutions Unlimited, and they supplied the plant with whatever product was available. In 2023, staff spent time searching for a product that would be optimal for our water, and after much research, AquaSorb CB3-MW was selected. AquaSorb CB3-MW was used throughout 2023 and 2024, and the lack of customer complaints related to taste and odor indicated staff’s research paid off, and the product is effective. Also, due to the higher quality product, the water plant used approximately 2,000lbs less PAC compared to previous years. Staff is recommending the purchase and use of AquaSorb CB3‐MW for another season. This is the one treatment chemical that isn’t purchased as part of the treatment chemical purchasing consortium. Staff solicited quotes from five suppliers. Three suppliers were unable to provide quotes: Haviland is the most expensive, Water Solutions Unlimited was the lowest provided quote and AquaSorb CB3‐MW has proven to be an effective product. This is budgeted as part of our treatment chemical purchases. Supplier Product Cost Activated Carbon GC WaterCarb No quote provided Water Solutions Unlimited AquaSorb CB3‐MW $33,290 Calgon WPH1000 No quote provided Haviland Products Havatreat 247 $50,080 Company Carb USA No NSF Product Available No quote provided Additional reasons for the recommendation of AquaSorb CB3-MW include the following: General Carbon’s product is a bituminous coal‐based PAC. Research indicates it can effectively remove taste and odor compounds, but it can also have the Page 6 of 19 potential to impart its own taste and odor to the water. AquaSorb is a more environmentally friendly blend of coconut/wood/coal products compared to solely bituminous coal products, and has been shown to be effective for a broader range of compounds. AquaSorb has been shown to effectively remove Geosmin and MIB, two major contributors to tastes and odors in drinking water. Geosmin was detected in the water in 2022. AquaSorb has been shown to effectively remove microcystins, a toxin produced by cyanobacteria. While microcystins have only been infrequently detected in incredibly low quantities in our lake water, it is an emerging problem. We will benefit from having a product on hand that can aid in the removal of microcystins if needed. Data suggests that AquaSorb is effective at lower doses. We have had issues in the past with blockages developing in our carbon feed pipelines when we feed higher doses. STAFF RECOMMENDATION: I move to authorize staff to purchase powder activated carbon (AquaSorb CB3‐MW) from Water Solutions Unlimited for $33,290.00. F. Ordinance Amendment: Curfew Public Safety (REQUIRES SECOND READING) The police department recommends changing the City of Muskegon's Curfew Ordinance definition of any minor under the age of 16 years of age or younger to under the age of 17 years of age or younger. This will follow suit with the State of Michigan's change of the definition of juvenile from 17 to 18 to ensure 17- year-olds are protected under the curfew ordinance. In 2021, in accordance with the Michigan Juvenile Justice Reform Act of 2018, the definition of juvenile changed from age 17 and under to 18 and under in MCL Section 712A.1. The police department recommends changing the City of Muskegon's Curfew Ordinance definition of any minor under the age of 16 years of age or younger to under the age of 17 years of age or younger. This will follow suit with the State of Michigan's change of the definition of juvenile to ensure 17- year-olds are protected under the curfew ordinance. STAFF RECOMMENDATION: I move to change Chapter 54, Article VII, Section 54- 241 of the Code of Ordinances from any minor 16 years of age or younger to any minor 17 years of age or younger. G. Downtown Muskegon Social District Expansion Request Community Engagement Muskegon City Market, LLC (221 W Webster Ave) and Hackley Castle (349 W Webster Ave) have formally requested to expand the social district to include their establishments. On behalf of Muskegon City Market and Hackley Castle, staff are requesting an Page 7 of 19 expansion of the Downtown Muskegon Social District. The proposal is to expand the district to include an additional block on Third St. from Webster to Muskegon Ave., Webster from 4th to 1st, and 2nd St. and 1st St. from Clay to Webster. Staff believe the proposed expansion design will simplify the district boundaries, making them more intuitive for patrons. The updated outline better aligns the southern edge and includes the Hackley Castle within the district footprint from the start. Please note: Hackley Castle will not be added to the social district at this time, but this adjustment makes them eligible for inclusion in the future without requiring a formal expansion—streamlining administrative processes. The next agenda item is the formal request to permit Muskegon City Market, LLC, into the Downtown Muskegon Social District. MLCC has confirmed that approving both of these items in one meeting is allowed. Staff have contacted all current businesses within the social district. Feedback has been overwhelmingly positive, except for one business expressing concern that the expansion may dilute the district and doubting that patrons will travel from the expanded area to purchase social district beverages. Historic Social District Changes Summer 2020 | Downtown Muskegon Social District Plan was approved April 2021 | The plan was amended to remove the property at 490 W. Western Avenue, owned by Port City CIO Building Association, which requested removal because special non-profit licenses could not be issued inside of a social district in the initial law. April 2022 | The plan was amended on April 26, 2022, to add Hackley Park, areas along Clay Avenue from Second to Fourth Streets, and the property at 490 W. Western Ave., owned by Port City CIO Building Association. May 2024 |At the May 28, 2024, Commission Meeting, the Social District Expansion proposal failed. The proposal was to extend the Downtown Muskegon Social District across Shoreline Drive to allow the Shoreline Inn, the Lakehouse, and the Brewer’s Lounge by Pigeon Hill to join. The common area would cross Shoreline at 5th St and 3rd St, be on the bike trail from 5th to 3rd, and follow the sidewalk up Terrace Point Rd. Discussion on the topic noted safety concerns regarding crossing Shoreline Drive and a request to see the timing of the crosswalks adjusted by MDOT, and potential problems with additional trash being left along the trail. Update from MDOT since that meeting: Pedestrian signals along Shoreline Drive were originally set to allow crossing only to the median in one signal cycle. Last year, the signals at Terrace Point Rd./3rd St, 4th St, 7th St, and Western Ave. were adjusted to allow full crossings in a single Walk signal. The Terrace St. intersection remains unchanged due to its longer distance and wider, more protected median, which would require significantly longer red lights and could increase traffic delays. It's also important to note that Walk signals are activated only when Page 8 of 19 pedestrians press the push button—without it, no signal is given, and crossing isn't advised. STAFF RECOMMENDATION: to approve the amended Downtown Muskegon Social District plan and map as presented. H. Resolution for 221 West Webster Avenue Social District Permit Community Engagement Muskegon City Market, LLC is requesting to join the Downtown Muskegon Social District for their bar, The Vault Food Collective, located at 221 West Webster Ave. Muskegon City Market, LLC is requesting to join the Downtown Muskegon Social District for their bar, The Vault Food Collective, located at 221 W. Webster Ave— located inside the Core Plaza. The Michigan Liquor Control Commission (MLCC) has approved its liquor licenses. To meet state requirements under MCL 436.1551, the business must now receive approval from the City Commission to apply for a Social District Permit through the State. STAFF RECOMMENDATION: to approve the Social District Permit for Muskegon City Market, LLC at 221 West Webster Ave., Muskegon, MI 49440 for consideration by the Michigan Liquor Control Commission. J. Amendment to the zoning ordinance - Allowing marinas as a permitted use in Form-Based Code, Lakeside Mixed Residential districts. (SECOND READING) Planning Staff-initiated request to amend the zoning ordinance to allow marinas as a permitted use in Form-Based Code, Lakeside Mixed Residential districts. This request was brought about after staff had contact with a couple of property owners about land use issues on their properties. If this request is approved, staff will look to rezone several properties in the current Waterfront Marine (WM) district along Lakeshore Dr. to Form Based Code, Lakeside Mixed Residential (FBC-LMR) at a future meeting. The owner at 2984 Lakeshore Dr. wanted to demo and rebuild his house. However, residential uses are not allowed in the WM district and the existing house was considered legally non-conforming (grandfathered). The owner was forced to seek a variance to rebuild the house and the request was eventually approved. The new house plans were approved, but the new house would have to meet the existing setbacks in WM, which is 10/14 (side setback requirement) for a two-story house. Residential setbacks are usually much smaller, such as five feet in many districts. There are eight houses located in the WM district, all of which are considered legally non-conforming. With this current zoning, all property owners will have difficulty rebuilding, putting on additions and possibly even refinancing. The owner at 3092 Lakeshore Dr. demoed the existing house on site and wants Page 9 of 19 to build a multi-family house, between 6-8 units. This is not allowed since residential is not a permitted use in the WM district. Staff are not exactly sure why the entire area was zoned WM, but it has been that way since at least 1986. Were these residential properties hoping to have marinas added to their properties? Was it zoned in an effort to transform this area into strictly marina and phase out residential? Without having a clear answer, staff decided to hold a focus group among the property owners to see what their vision was for their properties moving forward. At the meeting, it was discovered that most of the homeowners wanted to continue to stay strictly residential. A couple of the homeowners wanted to stay residential, but add a marina to the property. All the homeowners stated that they did not have an objection to allowing residential with a higher density than single-family. After the focus group meeting, it was clear that the best path forward would be to allow multi-family residential and marinas on these properties. The FBC-LMR district allows for small multiplexes (up to six units) but it does not allow for marinas. Staff are proposing to amend the ordinance to make marinas a permitted use in this context, then to rezone these eight properties to FBC-LMR. A clause was added to the amendment that states "marinas are a permitted use on properties with Muskegon Lake waterfront frontage." This will eliminate the possibility of any FBC-LMR properties without lake frontage to storage boats on their properties. The master plan supports both WM and FBC-LMR as they both fit the description of a lakeshore that allows for mixed-uses. Planning Commission Recommendation A motion was made to recommend the request to amend the zoning ordinance to allow marinas as a permitted use in Form-Based Code, Lakeside Mixed Residential districts. The motion passed (6 yes, 0 no, 3 absent). STAFF RECOMMENDATION: I move to approve the request to amend the zoning ordinance to allow marinas as a permitted use in the Form-Based Code, Lakeside Mixed Residential districts. L. Sale of 499 Amity Planning Staff is seeking authorization to sell the City-owned vacant lot at 499 Amity to Sjaarda Homes and Properties LLC (Derek Sjaarda). Sjaarda Homes and Properties LLC (Derek Sjaarda) would like to purchase the City-owned buildable lot at 499 Amity for $3,000 (75% of the True Cash Value of $4,000) plus half of the closing costs, and the fee to register the deed. Sjaarda Homes and Properties LLC (Derek Sjaarda) will be constructing a duplex on the property. STAFF RECOMMENDATION: Authorize staff to sell the City-owned vacant lots at 499 Amity to Sjaarda Homes and Properties LLC (Derek Sjaarda). N. Update to City Manager's Contract - Vacation Manager's Office Page 10 of 19 In June 2025, the City Manager received their annual review. The review was favorable. The manager requested an increase in vacation time as a result of the favorable review. STAFF RECOMMENDATION: Approve the Third Amendment To the City Manager's Employment Agreement. O. Request to Create a new Neighborhood Enterprise Zone District at 535 Yuba Economic Development City staff is requesting approval to create a Neighborhood Enterprise Zone (NEZ) District at 535 Yuba Street. This designation would make the property eligible for reduced residential property taxes on new construction. Pursuant to Public Act 147 of the Michigan Public Acts of 1992, City staff is requesting the establishment of a Neighborhood Enterprise Zone (NEZ) District for the parcel located at 535 Yuba Street. Properties located within an NEZ District are eligible to apply for NEZ certificates, which provide a reduction in residential property taxes for newly constructed homes. Notice letters regarding the proposed district were sent to all affected taxing jurisdictions on June 10, 2025, and a public hearing was held on July 8, 2025. In accordance with state law, the resolution establishing the district may not be adopted until at least 60 days after the notice letters were issued. STAFF RECOMMENDATION: I move to approve the creation of a Neighborhood Enterprise Zone District at 535 Yuba and authorize the Mayor and City Clerk to sign the resolution. P. Request to Create a new Neighborhood Enterprise Zone District at 2127 Austin Economic Development City staff is requesting approval to create a Neighborhood Enterprise Zone (NEZ) District at 2127 Austin. This designation would make the property eligible for reduced residential property taxes on new construction. Pursuant to Public Act 147 of the Michigan Public Acts of 1992, City staff is requesting the establishment of a Neighborhood Enterprise Zone (NEZ) District for the parcel located at 2127 Austin. Properties located within an NEZ District are eligible to apply for NEZ certificates, which provide a reduction in residential property taxes for newly constructed homes. Notice letters regarding the proposed district were sent to all affected taxing jurisdictions on June 10, 2025, and a public hearing was held on July 8, 2025. In accordance with state law, the resolution establishing the district may not be adopted until at least 60 days after the notice letters were issued. STAFF RECOMMENDATION: I move to approve the creation of a Neighborhood Page 11 of 19 Enterprise Zone District at 2127 Austin and authorize the Mayor and City Clerk to sign the resolution. Q. Request to Create a new Neighborhood Enterprise Zone District at 2262 Austin Economic Development City staff is requesting approval to create a Neighborhood Enterprise Zone (NEZ) District at 2262 Austin. This designation would make the property eligible for reduced residential property taxes on new construction. Pursuant to Public Act 147 of the Michigan Public Acts of 1992, City staff is requesting the establishment of a Neighborhood Enterprise Zone (NEZ) District for the parcel located at 2262 Austin. Properties located within an NEZ District are eligible to apply for NEZ certificates, which provide a reduction in residential property taxes for newly constructed homes. Notice letters regarding the proposed district were sent to all affected taxing jurisdictions on June 10, 2025, and a public hearing was held on July 8, 2025. In accordance with state law, the resolution establishing the district may not be adopted until at least 60 days after the notice letters were issued. STAFF RECOMMENDATION: I move to approve the creation of a Neighborhood Enterprise Zone District at 2262 Austin and authorize the Mayor and City Clerk to sign the resolution. R. Request to Create a new Neighborhood Enterprise Zone District at 2155 Continental Economic Development City staff is requesting approval to create a Neighborhood Enterprise Zone (NEZ) District at 2155 Continental. This designation would make the property eligible for reduced residential property taxes on new construction. Pursuant to Public Act 147 of the Michigan Public Acts of 1992, City staff is requesting the establishment of a Neighborhood Enterprise Zone (NEZ) District for the parcel located at 2155 Continental. Properties located within an NEZ District are eligible to apply for NEZ certificates, which provide a reduction in residential property taxes for newly constructed homes. Notice letters regarding the proposed district were sent to all affected taxing jurisdictions on June 10, 2025, and a public hearing was held on July 8, 2025. In accordance with state law, the resolution establishing the district may not be adopted until at least 60 days after the notice letters were issued. STAFF RECOMMENDATION: I move to approve the creation of a Neighborhood Enterprise Zone District at 2155 Continental and authorize the Mayor and City Clerk to sign the resolution. Page 12 of 19 S. Request to Create a new Neighborhood Enterprise Zone District at 2209 Valley Economic Development City staff is requesting approval to create a Neighborhood Enterprise Zone (NEZ) District at 2209 Valley. This designation would make the property eligible for reduced residential property taxes on new construction. Pursuant to Public Act 147 of the Michigan Public Acts of 1992, City staff is requesting the establishment of a Neighborhood Enterprise Zone (NEZ) District for the parcel located at 2209 Valley St. Properties located within an NEZ District are eligible to apply for NEZ certificates, which provide a reduction in residential property taxes for newly constructed homes. Notice letters regarding the proposed district were sent to all affected taxing jurisdictions on June 10, 2025, and a public hearing was held on July 8, 2025. In accordance with state law, the resolution establishing the district may not be adopted until at least 60 days after the notice letters were issued. STAFF RECOMMENDATION: I move to approve the creation of a Neighborhood Enterprise Zone District at 2209 Valley St. and authorize the Mayor and City Clerk to sign the resolution. T. Request to Create a new Neighborhood Enterprise Zone District South Getty Economic Development City staff is requesting approval to create a Neighborhood Enterprise Zone (NEZ) District at 1920 S. Getty, 1930 S. Getty, 1940 S. Getty, 1950 S. Getty, & 1960 S. Getty. This designation would make the properties eligible for reduced residential property taxes on new construction. Pursuant to Public Act 147 of the Michigan Public Acts of 1992, City staff is requesting the establishment of a Neighborhood Enterprise Zone (NEZ) District for the parcels located at 1920 S. Getty, 1930 S. Getty, 1940 S. Getty, 1950 S. Getty, & 1960 S. Getty Properties located within an NEZ District are eligible to apply for NEZ certificates, which provide a reduction in residential property taxes for newly constructed homes. Notice letters regarding the proposed district were sent to all affected taxing jurisdictions on June 10, 2025, and a public hearing was held on July 8, 2025. In accordance with state law, the resolution establishing the district may not be adopted until at least 60 days after the notice letters were issued. STAFF RECOMMENDATION: I move to approve the creation of the South Getty Neighborhood Enterprise Zone District and authorize the Mayor and City Clerk to sign the resolution. U. Request to Create a new Neighborhood Enterprise Zone District at 2247 Valley Economic Development Page 13 of 19 City staff is requesting approval to create a Neighborhood Enterprise Zone (NEZ) District at 2247 Valley. This designation would make the property eligible for reduced residential property taxes on new construction. Pursuant to Public Act 147 of the Michigan Public Acts of 1992, City staff is requesting the establishment of a Neighborhood Enterprise Zone (NEZ) District for the parcel located at 2247 Valley St. Properties located within an NEZ District are eligible to apply for NEZ certificates, which provide a reduction in residential property taxes for newly constructed homes. Notice letters regarding the proposed district were sent to all affected taxing jurisdictions on June 10, 2025, and a public hearing was held on July 8, 2025. In accordance with state law, the resolution establishing the district may not be adopted until at least 60 days after the notice letters were issued. STAFF RECOMMENDATION: I move to approve the creation of a Neighborhood Enterprise Zone District at 2247 Valley St. and authorize the Mayor and City Clerk to sign the resolution. V. Driveway Easement to Benefit 1188 Lakeshore Dr Public Works Staff presents a driveway easement benefitting 1188 Lakeshore Dr across the Lakeshore Trail and adjacent former railroad right-of-way. A resident of the City is proposing to build a home at 1188 Lakeshore Drive, and prior to closing on the property their lender has requested a driveway easement from the City allowing the owner of the property to cross the City's Lakeshore Trail property as well as the adjacent former railroad right-of-way the City now owns. Staff have worked with the resident to address concerns regarding sight distance at the trail crossing, and recommend approval of the easement. STAFF RECOMMENDATION: I move approval of a driveway easement benefitting 1188 Lakeshore Dr across the Lakeshore Trail and adjacent former railroad right- of-way. W. Concur with CRC Recommendation City Clerk To concur with CRC recommendation to accept the resignation of Mike Gallavin from the Zoning Board of Appeals and of Karen Evans from the District Library Board and appoint Walt Kubanek to the Local Officer's Compensation Commission and Brandon Stewart to the Zoning Board of Appeals. To accept the resignation of Mike Gallavin from the Zoning Board of Appeals as Resident with a term ending 1/31/2026; accept the resignation of Karen Evans from the District Library Board as Commission Appointment with a term ending 6/30/2027; appoint Walt Kubanek to the Local Officer's Compensation Commission as Citizen with a term ending 1/31/2032; and appoint Brandon Stewart to the Zoning Board of Appeals as Resident with a term ending 1/31/2026. Page 14 of 19 STAFF RECOMMENDATION: To accept the resignation of Mike Gallavin from the Zoning Board of Appeals and of Karen Evans from the District Library Board and appoint Walt Kubanek to the Local Officer's Compensation Commission and Brandon Stewart to the Zoning Board of Appeals. Motion by Commissioner Kilgo, second by Commissioner Kochin, to adopt the Consent Agenda as presented minus items I, K, and M. ROLL VOTE: Ayes: Gorman, Kochin, St.Clair, Johnson, Kilgo, and Keener Nays: None MOTION PASSES 2025-68 ITEMS REMOVED FROM THE CONSENT AGENDA I. Amendment to the zoning ordinance - Extending the hours of operation for marihuana retailers and provisioning centers. (SECOND READING) Planning Request to amend Section 2331 of the zoning ordinance to allow marihuana retailers and provisioning centers with approved drive-thru access to remain open for drive-thru sales only between 12 a.m. and 2 a.m., by The Grassy Knoll. In April 2024, the applicant requested to amend the ordinance to be able to operate 24 hours per day. The ordinance that was proposed was not well written and would have eliminated any hours of operation for all other retail stores. The request was ultimately denied. This request is much more well written and should not cause any unintentional hardships for other marihuana retailers. There are currently three approved drive-through locations within the city. These are located at The Bodega (885 E Apple Ave), The Grassy Knoll (2125 Lemuel St), and Greencraft (551 Young Ave). Current Ordinance Excerpt Section 2331: Marihuana Facilities Overlay District 3. Provisioning Centers, Retailers, Microbusinesses and Designated Consumption Establishments may operate between the hours of 8 am and 12 am. Proposed Ordinance (additions italicized) Section 2331: Marihuana Facilities Overlay District 3. Provisioning Centers, Retailers, Microbusinesses and Designated Consumption Establishments may operate between the hours of 8 am and 12 am. daily; however, Provisioning Centers and Retailers with approved drive-thru access may remain open for drive-thru sales only between the hours of 12 am and 2 am, provided all other applicable local, state, and safety regulations are met. Current Drive-Thru Regulations Section 2331: Marihuana Facilities Overlay District 3.d. Curbside/Drive-Thru. Curbside delivery is allowed at all retail sale locations with an approved site plan that does not impede traffic or pedestrian safety. Page 15 of 19 Drive-thru's are allowed as a special use permitted under the following conditions: i. The underlying zoning designation must be B-2, B-4, MC, I-1, I-2 or any Form Based Code designation/building type that allows for drive-thru businesses. ii. Drive-thru windows must be located on private property. Streets and alleys may only be used for the movement of traffic and may not be used for drive- thru vehicular stacking. iii. A traffic study must be performed showing the anticipated number of stacking spaces and where they would be located on site. Staff Recommendation Staff do not have a recommendation on whether marihuana establishments should be open longer. However, the proposed ordinance is well written and could be incorporated into the ordinance properly. Staff do have some concerns about the applicant's ability to follow the established guidelines. Staff have had discussions with the applicant for the past couple of years about their desire to host temporary campground events on-site during special events around the city. That use type is not allowed in their zoning district (I-1) and would need an amendment for them to proceed. Staff have discovered that a beach event in August is advertising overflow camping at The Grassy Knoll. Planning Commission Recommendation A motion was made to approve the request to allow marihuana retailers and provisioning centers with approved drive-thru access to remain open for drive- thru sales only between 12 a.m. and 2 a.m. However, the motion failed (5 no, 1 yes, 3 absent). STAFF RECOMMENDATION: I move to approve the request to amend Section 2331 of the zoning ordinance to allow marihuana retailers and provisioning centers with approved drive-thru access to remain open for drive-thru sales only between 12 a.m. and 2 a.m. Motion by Commissioner Keener, second by Commissioner Kilgo, to approve the request to amend Section 2331 of the zoning ordinance to allow marihuana retailers and provisioning centers with approved drive-thru access to remain open for drive-thru sales only between 12 a.m. and 2 a.m. ROLL VOTE: Ayes: Gorman, Kochin, St.Clair, Johnson, Kilgo, and Keener Nays: None MOTION PASSES K. Resolution for MNRTF Acquisition Grant Application DPW- Parks Staff requests authorization to apply for a Michigan Natural Resources Trust Fund (MNRTF) acquisition grant for the expansion of Hartshorn Park for a grant amount of $908,200, subject to appraisal. Page 16 of 19 The City of Muskegon is seeking approval to apply for a MNRTF (Michigan Natural Resources Trust Fund) Acquisition Grant administered by the Michigan DNR. The parcel identified for acquisition includes a section of the bike path along the Hartshorn Boat Ramp Park and the drive and a portion of the parking lot behind Fricano's. The intent is to acquire a valuable waterfront parcel along Muskegon Lake to expand public access, preserve natural resources, and enhance recreational opportunities. This acquisition will support the continued development of Hartshorn Park and protect a key segment of the Muskegon Lakeshore Trail, a regional non-motorized pathway that connects residents and visitors to parks, beaches, and downtown Muskegon. The site holds strong potential for future park development, including amenities for picnicking and trail-related activities. The parcel’s integration with the Lakeshore Trail promotes year-round, low-impact recreation such as walking, biking, and birdwatching, further connecting the community to the lake’s natural assets. This project represents a rare opportunity to protect and enhance one of West Michigan’s most important waterfronts. By securing this land, the City of Muskegon will expand public space, preserve scenic views, and promote ecological stewardship. The acquisition supports both recreational use and habitat preservation, providing long-term benefits for residents, visitors, and the health of Muskegon Lake. The listing price for the properties is $1,211,000. The Grant amount requested is $908,200 with the total required match amount of $302,800 being donated by the seller. STAFF RECOMMENDATION: I authorize staff to apply for the Michigan Natural Resources Trust Fund (MNRTF) acquisition grant for the expansion of Hartshorn Park for a grant amount of $908,200, subject to appraisal. Motion by Commissioner Kochin, second by Vice Mayor St.Clair, to authorize staff to apply for the Michigan Natural Resources Trust Fund (MNRTF) acquisition grant for the expansion of Hartshorn Park for a grant amount of $908,200, subject to appraisal. ROLL VOTE: Ayes: Kochin, St.Clair, Johnson, Kilgo, Keener, and Gorman Nays: None MOTION PASSES M. Fleet Vehicle Replacements Public Works Staff is requesting approval to purchase four Chevy Tahoes for the Police Department, along with one Ford F150 and four Ford F450 dump trucks for Public Works. The Equipment Department is planning to replace several aging, out-of- warranty vehicles. As part of this effort, four Chevy Tahoes will be purchased from Berger Chevrolet to replace existing patrol vehicles in the Police Page 17 of 19 Department. Berger Chevrolet quoted a price of $53,959.00 per vehicle. One Ford F150 pickup truck will be purchased from Gorno Ford for $48,233.00, and four Ford F450 small dump trucks will be purchased for $73,236.00 per vehicle from multiple vendors including Gorno Ford. All vehicles will be purchased through the MiDEAL contract, a cooperative purchasing program managed by the State that secures competitively bid pricing to ensure the best value for member agencies. The total expenditure for these vehicle replacements is $557,013, which will be funded through the Equipment Fund as part of the department's planned equipment replacement budget. STAFF RECOMMENDATION: I move to authorize staff to purchase fleet replacement vehicles for a total of $557,013 from Berger Chevrolet and Gorno Ford. Motion by Commissioner Kochin, second by Vice Mayor St.Clair, to authorize staff to purchase fleet replacement vehicles for a total of $557,013 from Berger Chevrolet and Gorno Ford. ROLL VOTE: Ayes: St.Clair, Johnson, Kilgo, Keener, Gorman, and Kochin Nays: None MOTION PASSES 2025-69 NEW BUSINESS A. Designation of Voting Delegates for the Michigan Municipal League Annual Business Meeting City Clerk To designate, by action of the Commission, one of our officials who will be in attendance at the Convention as an official representative to cast the vote of the municipality at the Annual Meeting; and, if possible, to designate one other official to serve as an alternate. STAFF RECOMMENDATION: To appoint an official representative and alternate representative to be in attendance and to cast the vote of the municipality at the Annual Business Meeting of the Michigan Municipal League Convention. Motion by Commissioner Keener, second by Commissioner Kochin, to appoint Vice Mayor St.Clair as the official representative and Commissioner Kilgo as the alternate representative to be in attendance and to cast the vote of the municipality at the Annual Business Meeting of the Michigan Municipal League Convention. ROLL VOTE: Ayes: Johnson, Kilgo, Keener, Gorman, Kochin, and St.Clair Nays: None MOTION PASSES Page 18 of 19 ANY OTHER BUSINESS Mayor Johnson thanked City Clerk Ann Meisch and her office for running the election; and Community Police Coordinator Emily Morgenstern and staff for their work in organizing the National Night Out at Marshfield. The Mayor, Commission, City Manager Jonathan Seyferth, and Captain Zonnebelt discussed distracted and dangerous driving in our City and throughout Muskegon. Commissioner Kochin thanked the City for the recognition of her Aunt for her work and dedication to the City of Muskegon, she loved working for the Parks Department. She also stated the Lakeside Street Performers is Thursday, August 14th at 6:00 p.m.; Touch the Trucks is Thursday, August 21st at 6:00 p.m.; the very first Gaming Convention coming to Muskegon is on Labor Day weekend at the Convention Center; and the Milwaukee Clipper is having their Labor Day party on Labor Day at 6:00 p.m. Commissioner Kochin also wanted to shout out to Captain Bob because he turned 103 and came out in the 92 degree heat. City Manager Jonathan Seyferth stated that Fish and Wildlife sent out a notification that they are going to be doing some die testing on the river and tributaries starting today through August 21st there could be some dye that would make parts of the river appear pink or red. Mayor Johnson stated that underway right now is our tree audit and inventory. GENERAL PUBLIC COMMENT Public comments received. ADJOURNMENT The City Commission meeting adjourned at 7:17 p.m. Respectfully Submitted, Ann Marie Meisch, MMC City Clerk Page 19 of 19
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