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CITY OF MUSKEGON CITY COMMISSION MEETING August 26, 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, August 26, 2025. Reverend Tara Foreman from Bethany 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 Destinee Keener, Willie German, Jr., Katrina Kochin, and Jay Kilgo, City Manager Jonathan Seyferth, City Attorney John Schrier, and City Clerk Ann Marie Meisch Absent: Commissioner Rachel Gorman PUBLIC COMMENT ON AGENDA ITEMS No public comments were made. 2025-70 CONSENT AGENDA A. Approval of Minutes City Clerk To approve minutes of the August 11, 2025, Commission Worksession Meeting, and the August 12, 2025, City Commission Meeting. STAFF RECOMMENDATION: Approval of the minutes. C. Roller Purchase Public Works Staff is requesting to purchase a roller from Michigan CAT for $74,098.90. The Equipment Division is seeking to purchase a new roller for the Highway Department. This roller is larger than the current roller we use for road repairs and will allow for larger road repairs and better quality repairs. Staff used several different rollers to determine what best fit the needs of the department and this machine performed the best. The Highway Department budgeted $75,000 for a new roller in the 25-26 fiscal year and this roller meets the needs Page 1 of 7 and falls in budget at $74,098.90. Michigan CAT has offered the roller at Sourcewell pricing, ensuring the City receives their best price. Sourcewell is a purchasing cooperative that competitively bids contracts and items and offers the best bid price to its members. This competitive bidding process meets the multiple bid requirements of the City. STAFF RECOMMENDATION: I move to authorize staff to purchase a roller from Michigan CAT for $74,098.90. E. First Amendment to PILOT Agreement for Park Terrace Apartments Acquisition Manager's Office The existing ownership of Park Terrace Apartments and Village at Park Terrace Senior Apartments is seeking to sell the portfolio to new ownership. To preserve and lengthen the affordability period, a new Contract for Housing Exemption is required for both projects. The Commission approved this on May 27, 2025 - this is an amendment to extend the Property Acquisition Deadline to December 1, 2025 (original date was September 1, 2025). As noted in May, the new owners hope to put significant capital investment into the facilities in the coming years, and in order to finance the project and make that possible, they are requesting an updated and restated PILOT on both Park Terrace as well as the senior living component, Village at Park Terrace. None of the details of the agreements have changed, other than the Acquisition Deadline, which is being extended from September 1, 2025, to December 1, 2025. The agreement reflects a slight reduction in the PILOT rate to 4% of annual shelter rents but establishes a Municipal Services Agreement (MSA) Charge in a separate agreement. This is to our advantage because the total MSA revenue stays with the City, rather than being split between the taxing jurisdictions like the PILOT payment. This document is the contract for housing exemption for up to 25 years, which will require adherence to MSHDA- regulated rents per requirements in our local ordinance. STAFF RECOMMENDATION: To approve the First Amendment to Amend and Restated Contract for Housing Exemption, and authorize the Clerk and Mayor to sign. F. First Amendment to Municipal Services Agreement Park Terrace Apartments Acquisition Manager's Office The existing ownership of Park Terrace Apartments and Village at Park Terrace Senior Apartments is seeking to sell the portfolio to new ownership. To preserve and lengthen the affordability period, a new Municipal Services Agreement is required for both projects. The Commission approved this on May 27, 2025 - this is an amendment to extend the Property Acquisition Deadline to December 1, 2025 (original date was September 1, 2025). As noted in May, the new owners hope to put significant capital investment into the facilities in the coming years, and in order to finance the project and make that possible, they are requesting an updated and restated Municipal Page 2 of 7 Services Agreement (MSA) on both Park Terrace as well as the senior living component, Village at Park Terrace. None of the details of the agreements have changed, other than the Acquisition Deadline, which is being extended from September 1, 2025, to December 1, 2025. The agreement establishes a new Municipal Services Agreement (MSA) of 2% of the annual shelter rent. This is to our advantage because the total MSA revenue stays with the City, rather than being split between the taxing jurisdictions like the PILOT payment. This document is the contract for housing exemption for up to 25 years, which will require adherence to MSHDA-regulated rents per requirements in our local ordinance. STAFF RECOMMENDATION: To approve the First Amendment to the Municipal Services agreement for Park Terrace Apartments as presented and to authorize the Clerk and Mayor to sign. G. First Amendment to the PILOT Agreement for Village at Park Terrace Acquisition Manager's Office The existing ownership of Village at Park Terrace Senior Apartments and Park Terrace Apartments is seeking to sell the portfolio to new ownership. To preserve and lengthen the affordability period, a new Contract for Housing Exemption is required for both projects. The Commission approved this on May 27, 2025 - this is an amendment to extend the Property Acquisition Deadline to December 1, 2025 (original date was September 1, 2025). As noted in May, the new owners plan to invest significantly in the facilities over the coming years. To finance this project, they are requesting an updated and restated PILOT for both the senior living components, Village at Park Terrace and Park Terrace. None of the details of the agreements have changed, other than the Acquisition Deadline, which is being extended from September 1, 2025, to December 1, 2025. The agreement reflects a slight reduction in the PILOT rate to 4% of annual shelter rents but establishes a Municipal Services Agreement (MSA) Charge in a separate agreement. This is to our advantage because the total MSA revenue stays with the City, rather than being split between the taxing jurisdictions like the PILOT payment. This document is the contract for housing exemption for up to 25 years, which will require adherence to MSHDA-regulated rents per requirements in our local ordinance. STAFF RECOMMENDATION: To approve the First Amendment to Amend and Restated Contract for Housing Exemption, and authorize the Clerk and Mayor to sign. H. First Amendment to Municipal Services Agreement for Village at Park Terrace Acquisition Manager's Office The existing ownership of Village at Park Terrace Senior Apartments and Park Terrace Apartments is seeking to sell the portfolio to new ownership. To preserve and lengthen the affordability period, a new Municipal Services Agreement is required for both projects. The Commission approved this on May 27, 2025 - this Page 3 of 7 is an amendment to extend the Property Acquisition Deadline to December 1, 2025 (original date was September 1, 2025). As noted in May, the new owners hope to put significant capital investment into the facilities in the coming years, and in order to finance the project and make that possible, they are requesting an updated and restated Municipal Services Agreement (MSA) on both at the senior living component, Village at Park Terrace and Park Terrace Apartments. None of the details of the agreements have changed, other than the Acquisition Deadline, which is being extended from September 1, 2025, to December 1, 2025. The agreement establishes a new Municipal Services Agreement (MSA) of 2% of the annual shelter rent. This is to our advantage because the total MSA revenue stays with the City, rather than being split between the taxing jurisdictions like the PILOT payment. This document is the contract for housing exemption for up to 25 years, which will require adherence to MSHDA-regulated rents per requirements in our local ordinance. STAFF RECOMMENDATION: To approve the First Amendment to the Municipal Services agreement for Village at Park Terrace as presented and to authorize the Clerk and Mayor to sign. I. Amendment to the Planned Unit Development (PUD) at Harbour Towne - Changes to the Restaurant at 3505 Marina View Point. Planning Request for an amendment to the PUD to install coolers, build a compactor enclosure, relocate and expand the outside bar, and add a fenced-in smoking area, at 3505 Marina View Point (Dockers). The restaurant (formerly Dockers) is located within the Harbour Towne PUD. Any changes to the footprint of the building require an amendment to the PUD. The site plan includes the following changes to the PUD: - An additional cooler/freezer area will be added near the NE corner of the property. - The outdoor tiki bar will be slightly increased in size (to 480 sf) and will also be slightly realigned to fit within the property line. - A fence will be installed and will be used for an outdoor smoking area for patrons. - The existing dumpster and enclosure will be removed and be replaced with a slightly larger trash compactor and enclosure (12' x 40'). Notice was sent to all properties within 300 feet. Staff did not receive any comments from the public. Staff Recommendation Staff recommend approval of the PUD amendment with the condition that the trash compactor area be screened with a stockade fence or masonry wall of at least five feet tall. Planning Commission Recommendation The Planning Commission unanimously recommended in favor of the request with the condition that the trash compactor area be screened with a stockade Page 4 of 7 fence or masonry wall of at least five feet tall. STAFF RECOMMENDATION: I move to approve the request to amend the Planned Unit Development at Harbour Towne with the condition that the trash compactor area be screened with a stockade fence or masonry wall of at least five feet tall. (REQUIRES SECOND READING) Motion by Commissioner Keener, second by Commissioner Kochin, to adopt the Consent Agenda as presented minus items B and D. ROLL VOTE: Ayes: German, Kochin, St.Clair, Johnson, Kilgo, and Keener Nays: None MOTION PASSES 2025-71 ITEMS REMOVED FROM THE CONSENT AGENDA B. Sale of 561 Catherine Planning Staff is seeking authorization to sell the City-owned vacant lot at 561 Catherine to Habitat for Humanity of Kent County. Habitat for Humanity of Kent County would like to purchase the City-owned buildable lot at 561 Catherine for $7,500 (75% of the True Cash Value of $10,000) plus half of the closing costs, and the fee to register the deed. The lot will be split into three 44' x 132' lots. Habitat for Humanity of Kent County will be constructing a single-family home on each of the properties. The homes will be sold to home-buyers at or below the 80% AMI. The sale price of each home is estimated to fall between $165,000 and $185,000. Please note, the buyers have requested that their timeline to commence construction be stated in the purchase agreement as “by April 30, 2026” instead of the standard 60 days, due to concern about meeting the deadline with it almost being September. STAFF RECOMMENDATION: Authorize staff to sell the City-owned vacant lot at 561 Catherine to Habitat for Humanity of Kent County. Motion by Commissioner German, second by Commissioner Kochin, to authorize staff to sell the City-owned vacant lot at 561 Catherine to Habitat for Humanity of Kent County. ROLL VOTE: Ayes: Kochin, St.Clair, Johnson, Kilgo, Keener, and German Nays: None MOTION PASSES D. Ordinance Amendment: Curfew (SECOND READING) Public Safety 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 Page 5 of 7 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. Motion by Commissioner German, second by Commissioner Keener, 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. ROLL VOTE: Ayes: Kochin, St.Clair, Johnson, Kilgo, Keener, and German Nays: None MOTION PASSES ANY OTHER BUSINESS City Clerk Ann Marie Meisch asked that the October 28th City Commission Meeting be cancelled because it is during early voting. Also, the November 11th City Commission Meeting falls on Veterans Day so we will have a Worksession/City Commission Meeting on November 10th. Commission were in agreement. Commissioner German stated he is on the Equal Opportunity Committee. They make sure there is fair representation for everyone who may encounter some type of issue, discrimination or harassment and there is a vacancy on the Board. He was asked to look into the lack of contracts with minority businesses. He also stated that the Citizens Police Review Board has concrerns with lack of autonomy and he wanted to bring this to the Commission’s attention. Commissioner Keener received numerous calls and emails about Fisherman’s Landing broadcast on Fox and WZZM. There is a meeting on Thursday, September 4th at 10:00 a.m. and 6:00 p.m. at Fisherman’s Landing pavilion. Vice Mayor St.Clair stated that today is Women’s Equality Day. It is the 105th anniversary of women receiving the right to vote in the United States. Commissioner Kochin announced this weekend our very first Board Game Convention is coming to town at the Convention Center, August 30th and 31st. The Milwaukee Clipper will be having a Labor Day party at 6:00 p.m. on Sunday, August 31st. Page 6 of 7 Commissioner Keener stated that the vacant seat on the Equal Opportunity Committee is in her ward. Please fill out an application. Commissioner Kilgo stated there is a local Muskegon County resident who has worked very hard to bring the comedy scene to the City of Muskegon. Laughter on the Lakeshore Fest is this week on Friday and Saturday. Mayor Johnson stated Labor Day is coming up. There is a parade at 11:00 a.m. followed by a gathering at Hackley Park. GENERAL PUBLIC COMMENT Public comments received. ADJOURNMENT The City Commission meeting adjourned at 6:10 p.m. Respectfully Submitted, Ann Marie Meisch, MMC City Clerk Page 7 of 7
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