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CITY OF MUSKEGON
CITY COMMISSION MEETING
OCTOBER 12, 2004
CITY COMMISSION CHAMBERS @ 5:30 P.M.
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, October 12,
2004.
Mayor Warmington opened the meeting with a prayer from Commissioner
Gawron after which the Commission and public recited the Pledge of
Allegiance to the Flag.
ROLL CALL FOR THE REGULAR COMMISSION MEETING:
Present: Mayor Stephen Warmington, Vice Mayor Bill Larson,
Commissioner Clara Shepherd, Lawrence Spataro, Chris Carter, Kevin Davis,
Stephen Gawron, City Manager Bryon Mazade, City Attorney John Schrier, and
Deputy City Clerk Linda Potter.
INTRODUCTIONS: Tony Kleibecker introduced Mark Kincaid, the new Deputy
Director of Public Safety for Fire Services.
2004-89 CONSENT AGENDA:
A. Approval of Minutes. CITY CLERK
SUMMARY OF REQUEST: To approve the minutes of the Special Commission
Meeting that was held on Wednesday, September 22, 2004; and the Regular
Commission Meeting that was held on Tuesday, September 28, 2004.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval of the minutes.
B. Sale of Buildable Vacant Lot on Dowd Street. PLANNING & ECONOMIC
DEVELOPMENT
SUMMARY OF REQUEST: To approve the sale of a vacant buildable lot at 2335
Dowd Street (Parcel #24-665-000-0520-00) to Fred Glomb, 1466 Ellis Road,
Muskegon, MI. The lot is 123 x 125 ft. and is being offered to Mr. Glomb for
$9,000. The single-family home will comply with the City’s “Policy for Sale of City-
Owned Residential property. The True Cash Value (TCV) for the property listed in
the Assessor’s Office is $12,000, so our price is set at $9,000 which is 75% of that
amount.
FINANCIAL IMPACT: The sale of this lot for construction of a new home will
generate additional tax revenue for the City and will place the property back
on the City’s tax rolls thus relieving the City of continued maintenance costs.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To approve the resolution and to authorize both the
Mayor and the Clerk to sign said resolution and deed.
C. Renewal of Maintenance Contract with MDOT Trunkline Within the City
of Muskegon. PUBLIC WORKS
SUMMARY OF REQUEST: The Michigan Department of Transportation (MDOT)
seeks to renew its contract with the City of Muskegon for road maintenance on
State Highways located within the City of Muskegon. The City of Muskegon
designates Robert Kuhn, its Public Works Director, as the Maintenance
Superintendent on state trunkline highways, and authorizes him and Linda
Potter, Deputy City Clerk, to execute this contract on the City’s behalf. This is a
five-year, renewable contract.
FINANCIAL IMPACT: Our annual contract with MDOT is approximately $221,000.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Recommend approval of five-year contract, the
designation of Robert Kuhn as the Maintenance Superintendent, and authorize
him and Linda Potter, Deputy City Clerk, to execute the contract on the City’s
behalf.
Motion by Commissioner Carter, second by Commissioner Shepherd to approve
the Consent Agenda with the exception of item D.
ROLL VOTE: Ayes: Spataro, Warmington, Carter, Davis, Gawron, Larson,
Shepherd
Nays: None
MOTION PASSES
2004-90 ITEM REMOVED FROM THE CONSENT AGENDA
D. Amendment to the Special Assessment Policy. ENGINEERING
SUMMARY OF REQUEST: As a result of a Legislative Committee meeting, it is
respectfully requested that the special assessment policy be amended in the
following form:
Sub-paragraph “a” (on page 6) of paragraph 10 of section “C” Part “V” of the
special assessment policy be amended to read: In no case shall the
assessments be in excess of benefits to abutting properties nor shall the total
assessments exceed 25% of the total project cost associated with pavement.
This amendment applies only to those activities/improvements eligible under the
table on page 4 of said policy. Furthermore, it is requested that if the
amendment is adopted, implementation be limited to those projects where
special assessment districts have been created after January 1st of 2005.
FINANCIAL IMPACT: None anticipated at this time.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Amend the special assessment policy.
2004-91 PUBLIC HEARINGS:
A. Amendments to Brownfield Plan – Former Muskegon Mall. PLANNING &
ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: To hold a public hearing and approve the resolution
approving and adopting amendments for the Brownfield Plan. The
amendments are for the inclusion of property owned by Downtown Muskegon
Development Corporation (DMDC) in the Brownfield Plan.
FINANCIAL IMPACT: Brownfield Tax increment Financing would be used to
reimburse the City, DMDC, and possibly developers for “eligible expenses”
incurred in association with development of the Mall, starting in 2012, when the
Renaissance Zone status of the Mall property will begin to expire. DMDC
currently estimates that full development of the Mall property will involve
approximately $60 million in private investment, resulting in a substantial increase
in the local and school taxes generated by the property. “Eligible Expenses”
would be reimbursed starting in 2012, including the payment of 4% interest
annually. The estimated tax capture and payment schedule is included as
Attachment L-4 in the proposed Brownfield Plan Amendment. The City is also
authorized by law to capture up to $75,000/year to pay for “reasonable and
actual administrative and operating costs of the Brownfield Redevelopment
Authority. As such, $50,000/year of the local tax increment will be captured to
reimburse the Brownfield Authority for its administrative costs, for a total of
$550,000 over 11 years. After all eligible costs incurred by the various parties are
reimbursed (estimated to be in 2017), the BRA is authorized to continue to
capture local taxes for five more years for deposit into a Local Site Remediation
Revolving Fund. Current estimates indicate that approximately $3,460,000 could
be captured from the taxes on the Mall property for deposit into this local fund.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To hold the public hearing and approve the
resolution and authorize the Mayor and Clerk to sign the resolution.
COMMITTEE RECOMMENDATION: The Muskegon City Commission set the public
hearing for October 12, 2004, at their September 14, 2004 meeting. Since that
time, a notice of the public hearing has been sent to taxing jurisdictions, and it
has been published twice in the Muskegon Chronicle. In addition, the
Brownfield Redevelopment Authority approved the Plan amendment on
September 8, 2004 and further recommends that the Muskegon City
Commission approve the Plan amendment.
The Public Hearing opened at 6:05 p.m. to hear and consider any comments
from the public. No comments were heard.
Motion by Commissioner Spataro, second by Commissioner Gawron to close the
Public Hearing at 6:06 p.m. and approve the amendment to the Brownfield Plan.
ROLL VOTE: Ayes: Carter, Davis, Gawron, Larson, Shepherd, Spataro,
Warmington
Nays: None
MOTION PASSES
2004-92 NEW BUSINESS:
A. FIRST READING: Muskegon Boiler Works Study Committee Final Report.
PLANNING & ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: The Muskegon Boiler Works Study Committee, which
was appointed by the City Commission on June 22, 2004 to study the historic
significance of the Boiler Works property and make a recommendation
regarding the establishment of an historic district, has developed a final report.
The property is located at 1204 Eighth Street (described as City of Muskegon
Revised Plat of 1903 Block 317, Lots 9-13). To finalize its duties, the Study
Committee is forwarding the final report with a recommendation to the City
Commission to establish the Boiler Works Historic District and to amend Chapter
11 of the Code of Ordinances concerning Historic Districts and the Historic
District Commission, to reflect the addition of the new district.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To accept the Muskegon Boiler Works Study
Committee report and recommendation and authorize the Clerk to sign the
Ordinance amending Chapter 11 of the Code of Ordinances concerning
Historic Districts and the Historic District Commission.
COMMITTEE RECOMMENDATION: The Muskegon Boiler Works Study Committee
recommends approval of the establishment of an historic district for the Boiler
Works property. The Planning Commission recommended approval to the City
Commission at their August 12, 2004 meeting.
Motion by Vice Mayor Larson, second by Commissioner Shepherd to accept the
Muskegon Boiler Works Study Committee final report.
ROLL VOTE: Ayes: Larson, Shepherd, Warmington, Carter
Nays: Davis, Gawron, Spataro
MOTION PASSES (REQUIRES SECOND READING)
B. Request for Extension of Deadlines for Former Lakos Property.
PLANNING & ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: At the May 11, 2004 meeting, the City Commission
granted an Amendment for an extension of time to the Agreement between
Desiree Enterprises (Holiday Inn) and the City of Muskegon. The extension
agreement allowed the owner of the property to have until October 1, 2004 to
present plans for the development of the property to the City. Construction was
to begin by April 1, 2005 and the project was to be completed by September 1,
2005. Recently, however, Mr. Elkhouly from the Holiday Inn, has made another
request to extend the deadlines.
FINANCIAL IMPACT: Without development on the site, the amount of taxes paid
to the City is limited.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: None (if the Commission desires to extend the
deadline, again, staff can work with the City Attorney to prepare another
amendment).
Motion by Vice Mayor Larson, second by Commissioner Shepherd to grant
extension with construction to commence no later than September 1, 2005.
ROLL VOTE: Ayes: Larson, Shepherd, Warmington
Nays: Gawron, Spataro, Carter, Davis
MOTION FAILS
C. Approval of Purchase of New Boiler-Central Fire Station. PUBLIC SAFETY
SUMMARY OF REQUEST: Public Safety Division staff request that the Commission
consider our request to purchase a new boiler for the Central Fire Station. This
unit provides heat to this building. During our fall start-up, a crack was
discovered in the unit. Temporary repairs have been made to the current boiler
in order to provide some heat for staff.
Three companies inspected the unit and were asked to submit bids. They
include Northern Boiler, Monarch Welding and Engineering and Bowen Heating.
Bowen has advised us that they would not be able to provide us with a quote.
Both Northern and Monarch did provide us with quotes. Both companies
recommended replacement of the boiler due to its age and the fact that they
will not guarantee that repairing this unit will prevent further failures.
FINANCIAL IMPACT: The cost of the new boiler (Monarch) and installation is
$16,755.
BUDGET ACTION REQUIRED: This item is not provided for in the current budget.
Funds will be drawn from the General Fund Contingency Account.
STAFF RECOMMENDATION: Awarding of the bid to Monarch Welding and
Engineering.
Motion by Commissioner Spataro, second by Vice Mayor Larson to approve the
purchase of a new boiler for the Central Fire Station.
ROLL VOTE: Ayes: Larson, Shepherd, Spataro, Warmington, Carter, Davis,
Gawron
Nays: None
MOTION PASSES
2004-93 ANY OTHER BUSINESS
Property on Western Avenue was discussed (former Muskegon Hotel).
Motion by Commissioner Spataro, second by Commissioner Gawron to request
a legal opinion on the cost to reclaim the property.
ROLL VOTE: Ayes: Spataro, Davis, Gawron
Nays: Shepherd, Warmington, Carter, Larson
MOTION FAILS
The City Commission Meeting adjourned at 6:58 p.m.
Respectfully submitted,
Gail A. Kundinger, MMC
City Clerk
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