City Commission Minutes 01-13-2026

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     CITY OF MUSKEGON
       CITY COMMISSION MEETING
           January 13, 2026 @ 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, January 13, 2026. Pastor
Russell Damm from the Oak Crest Church of God, 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 Destinee Keener, Commissioners Katrina
Kochin, Rebecca St.Clair, Jay Kilgo, Willie German, Jr., and Kiley Jackson, City
Manager Jonathan Seyferth, City Attorney Brennen Gorman, and Deputy City Clerk
Linda Potter

HONORS, AWARDS, AND PRESENTATIONS
    A. Recognition of Equalization Manager's Office
City Manager Jonathan Seyferth recognized County Equalization Director Donna
VanderVries and staff for achieving a perfect score on the 2025 PA 660 Assessment
Audit Review.

    B. Audit Presentation-ACFR by Brickley Delong Finance
Finance Director Ken Grant introduced Eric VanDop from Brickley DeLong who gave
a presentation of the 2024-25 audit.

2026-03 PUBLIC HEARINGS
    A. Establishment of a Commercial Redevelopment District —356 W. Western
       Ave. Economic Development
Pursuant to Public Act 255 of 1978, as amended, King Real Estate Holdings, LLC has
requested the establishment of a Commercial Redevelopment District for 356 W.
Western Ave. Creating the district will enable the property owner to apply for a
Commercial Facilities Exemption certificate. If approved, the certificate will freeze


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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 re-purpose the Century Club into a pediatric
office, retail suite spaces, family-friendly entertainment space, and keep the event
venue.
STAFF RECOMMENDATION: I move to close the public hearing and approve the
establishment of the Commercial Redevelopment District for 356 W. Western Ave.
and authorize the Mayor and City Clerk to sign the resolution.
The Public Hearing opened to hear and consider any comments from the public. No
public comments were made.

Motion by Vice Mayor Keener, second by Commissioner Kochin, to close the public
hearing and approve the establishment of the Commercial Redevelopment District
for 356 W. Western Ave. and authorize the Mayor and City Clerk to sign the
resolution.
ROLL VOTE:    Ayes: St.Clair, Johnson, Kilgo, Keener, German, Jackson, and Kochin
              Nays: None
MOTION PASSES

    B. Issuance of a Commercial Facilities Exemption Certificate — 356 W. Western
       Ave. Economic Development
Pursuant to Public Act 255 of 1978, as amended, King Real Estate Holdings, LLC 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.
King Real Estate Holdings, LLC plans to rehabilitate the 15,000-square-foot Century
Club building beginning in February 2026. The project represents a $475,232
investment and is expected to create two (2) new permanent healthcare positions,
retain six (6) existing positions, and generate four (4) construction jobs.
This rehabilitation will serve as the new home of Muskegon Pediatrics. Skee Tees, a
current tenant, will remain in the building. The existing event venue space will also be
maintained, with the potential addition of a family-friendly entertainment business.
A public hearing for the establishment of the Commercial Redevelopment District is
scheduled for the January 13, 2026, City Commission meeting.
The internal tax committee has reviewed the application and, based on its 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.
STAFF RECOMMENDATION: I move to close the public hearing and approve a four (4)
year Commercial Facilities Exemption Certificate for King Real Estate Holdings, LLC,
and authorize the Mayor and City Clerk to sign the application and resolution.
The Public Hearing opened to hear and consider any comments from the public. No



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public comments were made.

Motion by Commissioner German, second by Vice Mayor Keener, to close the
public hearing and approve a four (4) year Commercial Facilities Exemption
Certificate for King Real Estate Holdings, LLC, and authorize the Mayor and City Clerk
to sign the application and resolution.
ROLL VOTE:    Ayes: Johnson, Kilgo, Keener, German, Jackson, Kochin, and St.Clair
              Nays: None
MOTION PASSES

FEDERAL/STATE/COUNTY OFFICIALS UPDATE
No comments were made.

PUBLIC COMMENT ON AGENDA ITEMS
No public comments were made.

2026-04 CONSENT AGENDA
    A. Approval of Minutes City Clerk
To approve minutes of the December 9, 2025, City Commission Meeting.
STAFF RECOMMENDATION: Approval of the minutes.
    B. BS&A Online Payments Treasury
We are currently using Point & Pay, a third party processor, for online payments of tax
and utility bills, as well as for credit card payments made at the counter. In 2024,
BS&A launched their own online payment platform, BS&A Payments. After
investigating the BS&A Payments option, we feel it is a better value and option for
our municipality as a payment processor. We are recommending switching our
payment processor to the BS&A Payments platform.
We have recently encountered some issues and limitations with our current payment
processing system. Staff began investigating BS&A Payments as an alternative
payment processor, to see if we could both reduce the issues that have occurred as
well modernize the system that is available to our residents. After spending time
meeting with BS&A Payments' team, as well as researching their capabilities and
talking with various users of the system, we determined this system to be superior to
what we are currently using.
Some of the features we would gain with the BS&A Payments system include:

    • An updated and modernized, easy-to-use customer interface for online
      payments
    • Increased safety features, such as ACH validation prior to payment processing,
      and the ability to read "chip" enabled credit cards


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    • The ability to accept mobile wallet payments, such as Google or Apple Pay
    • Text to pay capabilities
    • Auto-pay and scheduled payment capabilities

One important note regarding this system is that the fees customers pay to use the
system would increase very slightly. The current fee for using a credit card is 2.8%.
With the BS&A payments system, the fee would increase to 2.8% plus $0.50. The
current fee for paying online via ACH (or e-check) is $0.85. The fee under the new
system would be $1.25. Although the fees are slightly higher, we believe the added
value and convenience for the residents makes the switch worthwhile. It is also
important to note that customers are not required to use these payment
methods. We will still offer all of our other options that are free of charge, such as
payment by check, cash, mail, etc. This system is strictly offered as a convenience for
those who choose to use it.
The only cost to the municipality is the cost of the terminals that would be located at
the counters. The cost for each terminal is $350, and we would need 15 terminals.
There are no other fees to the municipality for using the BS&A Payments system.
STAFF RECOMMENDATION: I move to approve changing the City's payment
processor to BS&A Payments and authorize the Treasurer to sign the addendum.
    H. Sewer Jet Truck Purchase Public Works
DPW staff would like to replace our existing sewer jet truck with the 2026 Freightliner
M2 offered from Fredrickson Supply for $318,448.07.
DPW staff use our existing sewer jet truck daily. This truck is used to ensure our sewer
and drain systems are working properly and help remove any blockages. This truck is
commonly used to clear blocked sewer pipelines when residents call regarding
sewer backups at their home. This piece of equipment is one of the City's most
commonly used and its reliability is essential for DPW staff. The current sewer jet truck
is 13 years old and has started showing signs of its age. One option to replace it
would be a 2026 Freightliner from Fredrickson Supply. We have explored several
options for replacement from various vendors and, based on the feedback of staff,
the sewer jet truck from Fredrickson is the best fit for our staff. The control system of
this vehicle mirrors that of similar equipment we currently own and use. This will allow
for cross-training between the departments and equipment. This replacement will
provide the reliability and versatility we need. Fredrickson Supply had quoted the
truck with Sourcewell pricing. Sourcewell is a cooperative purchasing program that
allows agencies to purchase equipment or services through pre-bid contracts,
satisfying the City's purchasing policy and bidding requirements.
STAFF RECOMMENDATION: Staff recommends the purchase of a 2026 Freightliner
Sewer Jet Truck from Fredrickson Supply for the amount of $318,448.07.

Motion by Commissioner St.Clair, second by Commissioner Kilgo, to adopt the
Consent Agenda as presented minus items C, D, E, F, and G.



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ROLL VOTE:    Ayes: Kilgo, Keener, German, Jackson, Kochin, St.Clair, and Johnson
              Nays: None
MOTION PASSES

2026-05 ITEMS REMOVED FROM THE CONSENT AGENDA
    C. 2026 Wage Matrix for Non-Union Part-Time and Limited Term
       Employees Employee Relations
The part-time and limited-term wage matrix is for long-term part-time positions and
seasonal staffing positions. It reflects the increase to the minimum wage that, if
approved, will be retroactive to January 1, 2026.
STAFF RECOMMENDATION: Recommending adoption of the 2026 Wage Matrix for
non-union, part-time and limited-term employees.

Motion by Commissioner German, second by Commissioner St.Clair, to adopt the
2026 Wage Matrix for non-union, part-time and limited-term employees.
ROLL VOTE:    Ayes: Keener, German, Jackson, Kochin, St.Clair, Johnson, and Kilgo
              Nays: None
MOTION PASSES
    D. 2024 Justice Assistance Grant Public Safety
The Police Department is seeking approval to enter into a MOU with the County of
Muskegon and Muskegon Heights to receive funds for the allocated 2024 Edward
Byrne Memorial Justice Assistance Grant (JAG) program funds. Local JAG allocations
to disparate jurisdictions in our county totals $34,675.
This is a grant the community has received before. The City of Muskegon will
continue to act as the fiduciary and receive $21,486, the City of Muskegon Heights
would be a sub-recipient and receive $13,189 and the County of Muskegon would
not receive funding.
Similar to past years, the City of Muskegon’s portion of this grant will be used for the
prosecution of city ordinance cases dealing primarily with neighborhood issues.
STAFF RECOMMENDATION: I move to approve the 2024 JAG Grant Memorandum of
Understanding and authorize the Mayor to sign to receive the grant funds.

Motion by Commissioner Kilgo, second by Commissioner Kochin, to approve the
2024 JAG Grant Memorandum of Understanding and authorize the Mayor to sign to
receive the grant funds.
ROLL VOTE:    Ayes: German, Jackson, Kochin, St.Clair, Johnson, and Keener
              Nays: None
              Abstain: Kilgo




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MOTION PASSES
    E. Resolution Revoking an Obsolete Property Rehabilitation Act (OPRA)
       Exemption Certificate for Ghezzi Investments LLC Economic Development
Staff has drafted a resolution to revoke the OPRA certificate for the property located
at 1937 Lakeshore Drive.
On March 12th, 2019, the City Commission approved a resolution to establish an
Obsolete Property Rehabilitation Act (OPRA) Exemption Certificate for Richard
Ghezzi, of Ghezzi Investments LLC. The property at 1937 Lakeshore Drive (the former
Harbor Theater in Lakeside) was previously approved for rehabilitation under OPRA
to support a redevelopment project. The project was required to commence within
two years of the certificate’s issuance, with a completion deadline of March 12,
2021. Unfortunately, that project was not completed within the required construction
period, and the property has since changed ownership. A new mixed-use
redevelopment project is now proposed for the site. Staff has prepared a resolution
to revoke the existing OPRA certificate in order to allow the current property owners
to consider future development incentives for the property.
Revoking the existing OPRA certificate is a necessary step to clear the prior approval
and enable the current property owners to pursue a new tax abatement for their
proposed redevelopment project.
STAFF RECOMMENDATION: I move to adopt the resolution revoking the Obsolete
Property Rehabilitation Act (OPRA) Exemption Certificate for Ghezzi Investments LLC
at 1937 Lakeshore Drive.

Motion by Commissioner Kochin, second by Commissioner St.Clair, to adopt the
resolution revoking the Obsolete Property Rehabilitation Act (OPRA) Exemption
Certificate for Ghezzi Investments LLC at 1937 Lakeshore Drive.
ROLL VOTE:    Ayes: Jackson, Kochin, St.Clair, Johnson, Kilgo, Keener, and German
              Nays: None
MOTION PASSES
    F. Amendment to Purchase and Development Agreement: 286/294
       Myrtle Planning
Staff is seeking authorization to amend the Purchase and Development Agreement
with RSW Holdings LLC and Barrowstone Capital LLC (approved on June 10, 2025).
In an effort to minimize disruption of established neighboring properties due to
encroachment issues, staff is seeking authorization to amend the Purchase and
Development Agreement with RSW Holdings LLC and Barrowstone Capital LLC
(approved on June 10, 2025) to allow the total number of homes to be built to be
three (3) instead of the currently obligated four (4).
The original number of housing units in this agreement was five (5), reduced to four
(4) after a previously approved amendment. This agreement approved the
purchase of three parent parcels that were to be split into five build-able lots for the


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construction of a single-family home on each lot. The first amendment, approved by
the city commission on 12/9/25, reduced the number of homes to be built on 450
Orchard from two (2) to one (1). 450 Orchard was split into two lots, resulting in a new
address of 454 Orchard. After construction began, the placement of two houses on
this lot resulted in encroachment on neighboring properties.
Another property on the original purchase agreement, 286 Myrtle — later split into
two lots (286 & 294 Myrtle), has been found to also have encroachment issues. The
house on the property to the east straddles the parcel line, as well as, the location of
a neighbor's deck/shed/parking area to the northwest is extending onto the parcel.
Staff is recommending reducing the builders' obligation to one home to be built
here, to combine the current lots (286 & 294 Myrtle) back to one lot, and adjusting
the boundaries to accommodate the encroachment issues.
Staff would like to seek approval for a second amendment for this agreement, and
combine this lot back to its original dimensions and allow the developer to build one
single-family home.
STAFF RECOMMENDATION: To authorize the Code Coordinator to amend the
Purchase and Development Agreement with RSW Holdings LLC and Barrowstone
Capital LLC (approved on June 10, 2025), as described, and to have the Mayor and
Clerk sign the purchase agreement addendum.

Motion by Commissioner German, second by Commissioner St.Clair, to authorize the
Code Coordinator to amend the Purchase and Development Agreement with RSW
Holdings LLC and Barrowstone Capital LLC (approved on June 10, 2025), as
described, and to have the Mayor and Clerk sign the purchase agreement
addendum.
ROLL VOTE:    Ayes: Kochin, St.Clair, Johnson, Kilgo, Keener, German, and Jackson
              Nays: None
MOTION PASSES
    G. Sale of 502 Oak Planning
Staff is seeking authorization to sell the City-owned vacant lot at 502 Oak to David
Arnoldink.
David Arnoldink, would like to purchase the City-owned buildable lot at 502 Oak for
$2,000 (50% of the True Cash Value of $4,000) plus half of the closing costs, and the
fee to register the deed. David Arnoldink will be constructing a duplex and an ADU
on the property.
STAFF RECOMMENDATION: Authorize staff to sell the City-owned vacant lot at 502
Oak to David Arnoldink.

Motion by Commissioner German, second by Commissioner Kochin, to authorize
staff to sell the City-owned vacant lot at 502 Oak to David Arnoldink.
ROLL VOTE:    Ayes: St.Clair, Johnson, Kilgo, Keener, German, Jackson, and Kochin


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             Nays: None
MOTION PASSES


ANY OTHER BUSINESS
Vice Mayor Keener apologized to the Muskegon residents and Commission for the
confusion at last week’s meeting.
Mayor Johnson thanked Vice Mayor Keener for her statements. He apologized to
Commissioner German for interrupting him at last week’s meeting.
Commissioner kilgo stated that Home Depot is having a free trades training program.
The website is pathtopro.com.
Commissioner St.Clair reminded everyone that each January is an opportunity to
apply to be on the City’s boards. Please fill out an application.

GENERAL PUBLIC COMMENT
Public comments received.

ADJOURNMENT
The City Commission meeting adjourned at 7:20 p.m.




                                     Respectfully Submitted,



                                     Ann Marie Meisch, MMC City Clerk




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