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CITY OF MUSKEGON CITY COMMISSION MEETING September 9, 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, September 9, 2025. Pastor Duane E. Bennett from 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, Katrina Kochin, Jay Kilgo, and Destinee Keener, City Manager Jonathan Seyferth, City Attorney John Schrier, and City Clerk Ann Marie Meisch 2025-73 HONORS, AWARDS, AND PRESENTATIONS A. Proclamation for Constitution Week Manager's Office To issue a Proclamation recognizing Constitution Week, September 17-23, 2025. Mayor Johnson read the resolution and then presented it to the National Society Daughters of the American Revolution who were in attendance. B. 2025 Community Life Survey for Muskegon County Manager's Office Access Health will provide information on the survey and encourage all to participate. The survey will gather information on people's work, health, money, stresses, and daily life with the goal of helping agencies identify gaps in services. Allison Revell and Jennifer Barangan from Access Health gave a presentation and asked the community to fill out the survey. 2025-74 PUBLIC HEARINGS A. Neighborhood Enterprise Zone Certificates - 973 Ducey Ave., 983 Ducey Ave., and 1003 Ducey Ave. Economic Development Page 1 of 12 Staff is requesting the approval of Neighborhood Enterprise Zone (NEZ) certificates for 15 years for a new construction home at 973 Ducey Ave., 983 Ducey Ave., and 1003 Ducey Ave. Stephens Homes and Investments has submitted three applications for Neighborhood Enterprise Zone (NEZ) certificates for the construction of single- family homes at 973 Ducey Ave., 983 Ducey Ave., and 1003 Ducey Ave. The proposed sale prices are $200,000 each for 973 and 983 Ducey, and $225,000 for 1003 Ducey. These properties were previously owned by the City of Muskegon. The applicant has met all local and state requirements for the issuance of NEZ certificates. The Neighborhood Enterprise Zone Act provides for the development and rehabilitation of residential housing located within eligible distressed communities. Approval of these applications would grant the future property owners a tax abatement that reduces their property taxes by approximately 50% for up to 15 years. STAFF RECOMMENDATION: I move to close the public hearing and approve Neighborhood Enterprise Zone (NEZ) certificates for 15 years at 973 Ducey Ave., 983 Ducey Ave., and 1003 Ducey Ave and authorize the City Clerk and Mayor to sign the applications and resolutions. The public hearing opened to hear and consider any comments from the public. Comments were heard from Dr. Starr. Motion by Commissioner Keener, second by Commissioner Kilgo, to close the public hearing and approve Neighborhood Enterprise Zone (NEZ) certificates for 15 years at 973 Ducey Ave., 983 Ducey Ave., and 1003 Ducey Ave and authorize the City Clerk and Mayor to sign the applications and resolutions. ROLL VOTE: Ayes: Gorman, Kochin, St.Clair, Johnson, Kilgo, Keener, and German Nays: None MOTION PASSES B. Neighborhood Enterprise Zone Certificate - 535 Yuba St. Economic Development The staff are requesting the approval of a Neighborhood Enterprise Zone (NEZ) certificate for 15 years for a new construction home at 535 Yuba St. An application for a Neighborhood Enterprise Zone (NEZ) certificate has been received from Terri Kitchen for a new construction home at 535 Yuba St. The cost of construction is $200,000. The applicant has met local and state requirements for the issuance of the NEZ certificate. STAFF RECOMMENDATION: I move to close the public hearing and approve the Neighborhood Enterprise Zone (NEZ) certificate for 15 years at 535 Yuba St. and Page 2 of 12 authorize the City Clerk and Mayor to sign the certificate and resolution. The public hearing opened to hear and consider any comments from the public. No public comments were made. Motion by Commissioner Kochin, second by Commissioner Keener, to close the public hearing and approve the Neighborhood Enterprise Zone (NEZ) certificate for 15 years at 535 Yuba St. and authorize the City Clerk and Mayor to sign the certificate and resolution. ROLL VOTE: Ayes: Kochin, St.Clair, Johnson, Kilgo, Keener, German, and Gorman Nays: None MOTION PASSES C. Establishment of a Commercial Redevelopment District - 173, 175, & 177 W. Clay Ave. Economic Development Pursuant to Public Act 255 of 1978, as amended, S&S Properties has requested the establishment of a Commercial Redevelopment District. S&S Properties has requested the establishment of a Commercial Redevelopment District. Creating the district will enable the property owner to apply for a Commercial Facilities Exemption Certificate. If approved, the certificate will freeze the taxable value of the building and exempt the new real property investment from local property taxes for the duration of the exemption. The proposed redevelopment will provide space for multiple commercial businesses in the downtown area, supporting continued investment, job creation, and economic vitality within the district. STAFF RECOMMENDATION: I move to close the public hearing and approve the establishment of the Commercial Redevelopment District for 173, 175, & 177 W Clay 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 Commissioner Keener, second by Commissioner German, to close the public hearing and approve the establishment of the Commercial Redevelopment District for 173, 175, & 177 W Clay Ave, and authorize the Mayor and City Clerk to sign the resolution. ROLL VOTE: Ayes: St.Clair, Johnson, Kilgo, Keener, German, Gorman, and Kochin Nays: None MOTION PASSES Page 3 of 12 D. Issuance of a Commercial Facilities Exemption Certificate - 175 & 177 W. Clay Ave. Economic Development Pursuant to Public Act 255 of 1978, as amended, S&S Properties has requested the issuance of a Commercial Facilities Exemption Certificate. The certificate will freeze the taxable value of the building and exempt new real property investment from local taxes. S&S Properties plans to rehabilitate a 5,300 sq. ft. building beginning in September 2025. The project represents a $200,000 real property investment and is expected to create between one (1) and five (5) jobs. The applicant intends to retain existing tenants in the building while activating currently vacant space for other smaller, locally owned businesses. A public hearing on the establishment of the Commercial Redevelopment District is scheduled for the September 9, 2025, City Commission meeting. The Internal Tax Committee has reviewed the application and, based on their findings and calculations, recommends approval of the resolution for a term of four (4) years for real property. The applicant has submitted all required documentation. It should be noted that 173 W. Clay Ave. is not included in this exemption, as work has already commenced on that unit, rendering it ineligible for a PA 255. STAFF RECOMMENDATION: I move to close the public hearing and approve a four (4) year Commercial Facilities Exemption Certificate for S&S Properties, and authorize the Mayor and City Clerk to sign the resolution. The public hearing opened to hear and consider any comments from the public. No public comments were made. Motion by Commissioner Keener, second by Commissioner Kochin, to close the public hearing and approve a four (4) year Commercial Facilities Exemption Certificate for S&S Properties, and authorize the Mayor and City Clerk to sign the resolution. ROLL VOTE: Ayes: Johnson, Kilgo, Keener, German, Gorman, Kochin, and St.Clair Nays: None MOTION PASSES E. Amendment to City of Muskegon Scattered Site Infill Housing Brownfield Plan Economic Development City staff are adding lots acquired since the last update to the Scattered Site Brownfield Plan to ensure that all appropriate TIF revenue is captured to reimburse for eligible activities. The City of Muskegon has been utilizing Brownfield TIF to recapture eligible Page 4 of 12 activities on infill housing in neighborhoods for several years, and is considered a statewide leader in neighborhood infill and reinvestment. The document that allows us to utilize TIF is the approved Scattered Site Infill Housing Plan Amendment. This latest plan amendment has been approved by the City of Muskegon Brownfield Redevelopment Authority at their meeting taking place before this commission meeting on 9/9/2025. This 5th Amendment to the City of Muskegon Scattered Site Infill Housing Brownfield Plan adds 71 vacant residential lots and removes Froebel School from the plan. Froebel is being redeveloped as a LIHTC apartment complex and does not make sense for the scattered site housing TIF. In previous amendments we have removed other city owned large format sites such as 1095 Third Street and 880 First Street as they had projects come up. This should be the last amendment for several years as we finish infilling lots under public control. From there, staff will focus on property acquisition of the remaining 500 +/- privately held vacant buildable lots in our neighborhoods, which could require further amendments. STAFF RECOMMENDATION: Motion to close the public hearing and approve the 5th Amendment to the City of Muskegon Scattered Site Infill Housing Brownfield Plan Amendment as presented. 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 5th Amendment to the City of Muskegon Scattered Site Infill Housing Brownfield Plan Amendment as presented. ROLL VOTE: Ayes: Kilgo, Keener, German, Gorman, Kochin, St.Clair, and Johnson Nays: None MOTION PASSES PUBLIC COMMENT ON AGENDA ITEMS Public comments received. 2025-75 CONSENT AGENDA A. Approval of Minutes City Clerk To approve minutes of the August 26, 2025, City Commission Meeting. STAFF RECOMMENDATION: Approval of the minutes. D. Resolution for Charitable Gaming License - Fresh Coast Alliance City Clerk Page 5 of 12 Fresh Coast Alliance is requesting a resolution recognizing them as a non-profit organization operating in the City for the purpose of obtaining a gaming license. They have been recognized as a 501(c)(3) organization by the State. Fresh Coast Alliance is a non-profit that exists to help those formerly incarcerated and individuals in addiction recovery. They collaborate with like- minded individuals, businesses, and organizations to transform destructive cycles of crime and addiction into productive lifestyles of meaningful employment, responsible citizenship, and healthy choices. STAFF RECOMMENDATION: Approval of the resolution for a Charitable Gaming License. E. Amendment to the Planned Unit Development (PUD) at Harbour Towne - Changes to the Restaurant at 3505 Marina View Point. (SECOND READING) 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 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. Page 6 of 12 G. DDA Class C Liquor License - OB's Southern Brunch House - 379 W. Western Ave., Suite 102 Economic Development OB’s Southern Brunch House has requested a Downtown Development Authority (DDA) Class C On-Premise Liquor License for their location at 379 W. Western Avenue, Suite 102. The Michigan Liquor Control Commission permits the issuance of additional liquor licenses within DDA districts when certain conditions are met. OB’s Southern Brunch House plans to make a $150,000 investment in the building and will operate a full-service restaurant with seating for approximately 80 guests indoors and 20 guests on the outdoor patio. STAFF RECOMMENDATION: I move to approve the Downtown Development Authority Class C On-Premise Liquor License for 379 W. Western Ave., Suite 102 and authorize the Mayor and City Clerk to sign the resolution. H. Contract Award - H92507 Western Ave., 8th to Terrace Resurfacing DPW- Engineering Staff requests authorization to enter into a contract with Michigan Paving and Materials in the amount of $609,849.95 for road resurfacing work on Western Ave. from 8th to Terrace. Bids were solicited for a construction project to resurface Western in the downtown area; 8th to Terrace. Michigan Paving provided the low bid. While the project did come in about $100,000 over the projected budget, the major streets fund has the ability to cover the shortfall from its fund balance and staff are confident this pricing is accurate given the competitive bids received. The project is planned to be done in two phases, with one this fall from 8th to 4th and the second next fall (the fall of 2026) from 4th to Terrace. Staff will work with the contractor to confirm this phasing plan and make adjustments as needed. The project has been designed and phased in a way to minimize disruption to downtown residents and businesses. STAFF RECOMMENDATION: Move to authorize staff to enter into a contract with Michigan Paving and Materials in the amount of $609,849.95 for road resurfacing work on Western Ave. from 8th to Terrace. Motion by Commissioner German, second by Commissioner Kilgo, to adopt the Consent Agenda as presented minus items B, C, and F. ROLL VOTE: Ayes: Keener, German, Gorman, Kochin, St.Clair, Johnson, and Kilgo Nays: None MOTION PASSES 2025-76 ITEMS REMOVED FROM THE CONSENT AGENDA Page 7 of 12 B. Rezoning of Properties Along Peck St. and its Side Streets, from Apple Ave. to Laketon Ave., to Form Based Code. Planning Staff-initiated request to rezone the following properties: 1181 Ransom St, 1200 Ransom St, 1176 Peck St, 1196 Peck St, 1208 Peck St, 1222 Peck St, 1250 Peck St, 1259 Peck St, 1275 Peck St, 1299 Peck St, 1302 Peck St, 1309 Peck St, 1314 Peck St, 1319 Peck St, 1322 Peck St, 1334 Peck St, 1337 Peck St, 1342 Peck St, 1347 Peck St, 1365 Peck St, 1377 Peck St, 1391 Peck St, 1410 Peck St, 1415 Peck St, 1422 Peck St, 1435 Peck St, 1440 Peck St, 1443 Peck St, 1470 Peck St, 1502 Peck St, 1516 Peck St, 1532 Peck St, 1542 Peck St, 1562 Peck St, 1576 Peck St, 1586 Peck St, 1596 Peck St, 1604 Peck St, 1624 Peck St, 1625 Peck St, 1632 Peck St, 1633 Peck St, 1640 Peck St, 1643 Peck St, 1649 Peck St, 1652 Peck St, 1659 Peck St, 1660 Peck St, 1669 Peck St, 1670 Peck St, 1691 Peck St, 1705 Peck St, 1715 Peck St, 1725 Peck St, 1735 Peck St., 19 Irwin Ave, 22 E. Southern Ave, 23 Strong Ave, 24 Morrall Ave, and 32 Iona Ave, from RM-1, Low Density Multiple-Family Residential to Form Based Code, Neighborhood Edge; 1765 Peck St, 1781 Peck St, Parcel # 61-24-205-465-0006-10, and 1778 Sanford St, from B-4, General Business, to Form Based Code, Neighborhood Core; 180 E. Laketon Ave and 1752 Peck St from B-4, General Business and MC, Medical Care, to Form Based Code, Neighborhood Edge; and 36 Catherine Ave, 1366 Peck St, 1378 Peck St, 1386 Peck St, 1394 Peck and 1469 Peck St from B-1, Limited Business, to Form Based Code, Neighborhood Edge. The RM-1 zoning designation poses many problems for existing buildings/businesses along Peck St. The biggest issue with this zoning designation is that nearly all the properties are considered legally non- conforming (grandfathered) because they do not meet the area and bulk requirements. Nearly every property falls short of the following requirements: minimum lot width of 100 feet, maximum building width of 50% (as a portion of lot width), and minimum lot size of 10,890 sf. Many others do not meet the minimum side yard setback requirements of 8, 10, or 12 feet (depending on height of building). These non-conformities can cause issues such as limiting expansion efforts, refinancing problems, and property sales problems. The FBC- NE designation is similar to the RM-1 designation in that it allows many of the same uses, while also limiting buildings to the same height, which is three stories. Staff are recommending that a few of the parcels closer to Laketon Ave. be rezoned to FBC-NC to allow for more density closer to the Laketon Ave. corridor. This designation allows for larger buildings up to five stories and could encourage denser housing options along public transit routes. The B-1 zoning designation is very limiting to the existing businesses in the area. The uses allowed are very limiting, only allowing smaller-type businesses that serve the adjacent residential area. It also limits each use to a maximum of 2,500 sf. Also, none of the businesses between Irwin and Isabella meet the required front and side setback requirements. These buildings are built to the correct scale and placement for walkability, even though it goes against the Page 8 of 12 existing zoning requirements. A rezoning to FBC-NE would bring these buildings into conformity and allow for a greater variety of businesses. Staff held a focus group with affected property owners in June about the potential of a rezoning. There were about 15 participants at the meeting, all of whom agreed that the rezoning effort would positively affect their situations. The maps depict the current and proposed zoning of the parcels along Peck St. The map is broken down into North Peck and South Peck to make it easier to view. Notice was sent to all properties within 300 feet of each parcel to be rezoned. Staff did not receive any comments before the public hearing at the Planning Commission meeting. The Planning Commission unanimously recommended approval of the request at their August 14 meeting. STAFF RECOMMENDATION: I move the request to rezone the properties as listed be approved. Motion by Commissioner Kochin, second by Commissioner Kilgo, that the request to rezone the properties as listed be approved. ROLL VOTE: Ayes: German, Gorman, Kochin, St.Clair, Johnson, Kilgo, and Keener Nays: None MOTION PASSES C. Rezoning of Properties on Lakeshore Dr. and Edgewater St. to Form Based Code. Planning Staff-initiated request to rezone 3172 Edgewater St, 3182 Edgewater St, 2976 Lakeshore Dr, 2984 Lakeshore Dr, 2986 Lakeshore Dr, 3002 Lakeshore Dr, 3084 Lakeshore Dr, 3088 Lakeshore Dr, and 3092 Lakeshore Dr, from WM, Waterfront Marine to Form Based Code, Lakeside Mixed Residential. This request is intended to bring the houses in this area into conformity. The properties are zoned Waterfront Marine (WM), but this zoning designation does not allow for housing. However, it does allow for marinas. Staff were unsure of the future plans of these property owners, so a focus group was held in June to determine the best path forward in terms of zoning. At the meeting, staff learned that some property owners intend to use their land only for housing, while others would like to run a marina along with housing on the same site. Staff determined that the best path forward would be to rezone the properties to a zoning designation that allows for housing and marinas. The Form-Based Code, Lakeside Mixed Residential district allows for housing (up to six units) and a recent zoning amendment will now allow for marinas (only on properties that have Muskegon Lake frontage). Page 9 of 12 There were two recent requests that helped staff realize there was an issue with the current zoning. The property at 2984 Lakeshore Dr. was recently forced to obtain a variance to rebuild their house, since houses are not allowed in WM districts. Although the variance was granted, they were still restricted in terms of where the house could be placed, since the side setback requirements are a minimum of 10 feet for a two-story house. Also, the owner of 3092 Lakeshore Dr recently demolished the house on the site with the intention of rebuilding another housing structure. Without a rezoning, it is very likely that these issues will continue to surface. The future land use map in the master plans identifies this area as "Lakeshore," which is defined as mixed-use along the waterfront. This new zoning designation would allow for housing, marinas, and other commercial uses. Notice was sent to everyone within 300 feet of the affected properties. Staff did not receive any comments from the public before the public hearing at the Planning Commission meeting. The Planning Commission unanimously recommended approval of the request at their August 14 meeting. STAFF RECOMMENDATION: I move the request to rezone the properties as listed be approved. Motion by Commissioner Kochin, second by Commissioner Kilgo, that the request to rezone the properties as listed be approved. ROLL VOTE: Ayes: Gorman, Kochin, St.Clair, Johnson, Kilgo, Keener, and German Nays: None MOTION PASSES F. Sun Day - New Event at Pere Marquette DPW- Parks and Recreation Sun Day is a new event seeking permission to be at Pere Marquette on September 21, 2025. Sun Day is a new event proposed at Pere Marquette this year. According to the Special Event Policy, all new events at Pere Marquette must be approved by the Commission. Organizations Third Act Michigan, Indivisible by the Lakeshore, and Indy Next Gen are organizing an event to celebrate solar and renewable energy as part of the national Sun Day celebration. They are seeking permission to use approximately 10 parking spaces by the new bathrooms at the roundabout. There will be a few displays and activities focused on solar energy in the parking lot. At the end of the event, attendees are invited onto the beach to form the word "protect" with a photo being taken from a drone. STAFF RECOMMENDATION: I move to approve the Sun Day event at Pere Page 10 of 12 Marquette on Sunday, September 21, 2025. Motion by Commissioner Kochin, second by Commissioner Kilgo, to approve the Sun Day event at Pere Marquette on Sunday, September 21, 2025. ROLL VOTE: Ayes: Kochin, St.Clair, Johnson, Kilgo, Keener, German, and Gorman Nays: None MOTION PASSES ANY OTHER BUSINESS Commissioner German stated that the Moses Jones Expressway sign was removed during construction and has not been replaced. Commissioner Keener stated that the street signs from Delano to Barney have not been put back up in her Neighborhood. Commissioner Kochin stated the Tree City USA sign has disappeared in the Glenside Neighborhood. She also mentioned that Muskegon County Emergency Response is holding a seven week training from 9-17-25 to 10-29-25 from 6-9 p.m. Commissioner Kilgo stated that in reference to the Constitutional Week Proclamation he hopes the City of Muskegon upholds to the Constitution regardless of the Supreme Court’s recent decision that racial profiling is ok. It is not ok here in the City of Muskegon. Mayor Johnson stated he may not be at the Planning Commission on Thursday. He has been asked to speak at the Mott Foundation in Flint reference Muskegon and Muskegon Lakes clean up and restoration. He will not be at the 9-23-25 Commission Meeting, Vice Mayor St.Clair will chair the meeting. He will be going to New York City as part of the Great Lakes St. Lawrence Cities initiative. He was recently elected to the Board of Directors. City Manager Jonathan Seyferth stated the City of Muskegon millage rate in Muskegon Public Schools is the fourth lowest of the five Cities in the Metro. He also asked the Commission about their take on the 9-8-25 Worksession Meeting about Fisherman’s Landing, Third Street Wharf, the Mart Dock before we engage in doing further negotiations. Mayor Johnson stated he has reservations about the draft agreement as proposed, not committed to voting in favor at this time. Commissioner Kilgo stated we are close. Would like to see a time table for getting construction started after the grant is approved. Vice Mayor St.Clair stated that she agrees that the general framework is there, but there are definitely still some questions. Commissioner Kochin stated that there are still a lot of unanswered questions. At this time, she would not want to move forward. That doesn’t mean she’s not willing to have a conversation in the future. Page 11 of 12 Commissioner German stated he thought it was a good discussion. He is not sold at this time. There are too many unknowns. Commissioner Keener stated she is good. Commissioner Gorman stated she is in support of staff moving forward and giving us an actual proposal. Move forward on the exhibits. GENERAL PUBLIC COMMENT Public comments received. ADJOURNMENT The City Commission meeting adjourned at 7:25 p.m. Respectfully Submitted, Ann Marie Meisch, MMC City Clerk Page 12 of 12
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