City Commission Worksession Minutes 05-10-2021

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                               CITY OF MUSKEGON
                         CITY COMMISSION WORKSESSION

                                 Monday, May 10, 2021
                                      5:30 p.m.
                                  REMOTE MEETING



Present: Mayor Gawron, Vice Mayor Hood, Commissioners Rinsema-Sybenga (left at
5:57 p.m.), Emory, Johnson, Ramsey, and German

Presentation on Adelaide Pointe Development – Economic
The Economic Development Department has been working with the new owners of the
acreage at the end of West Western Avenue in Nims adjacent to Fricanos and
Hartshorn Marina concerning their redevelopment, and they are ready to present their
concept to the City Commission to keep you informed and in anticipation of future
necessary public/private partnership.

The new ownership of the acreage has dubbed the development concept “Adelaide
Pointe” which will feature mixed use including boat storage, marina space, In/Out rack
boat storage, restaurant space, commercial/retail, and up to 300 housing units. The
department has been working with the developer on several priorities from our end,
namely safeguarding existing and adding additional public access to the waterfront,
ensuring a development product that will bring value added to nearby uses and
neighbors, and negotiating what if any incentives the staff would recommend. This
development is unique as they are requesting site control of a portion of our municipal
marina and also to cross an existing bike trail, so we felt it imperative that the
Commission be brought up to speed now that we feel we have negotiated favorable
conditions for a development agreement. Additionally, the developer wishes to ensure
reasonable support from the commission before proceeding with further costs on the
planning and development of the concept.

Representatives were present on Zoom with the Commission to give an overview of this
project to the Commission.

Proposed Lakeside Social District – Economic Development
Two establishments with liquor licenses in Lakeside have approached the city with a
request to create a Lakeside Social District as the city has for downtown Muskegon.
Staff seeks City Commission work session input.
The requests come from Wonderland Distillery and Marine Tap Room but the proposed
district also includes the Lakeshore Tavern, which has not reopened since a COVID
shut down. An outline of the Lakeside Social District with proposed district boundaries
and the potential to expand the district to the east upon request of commercial property
owners is provided. Staff needs City Commission input and direction. If commissioners
want to establish a Lakeside Social District, the needed plan, map and resolution can be
put on the May 25 City Commission agenda for consideration. If approved, it would be
filed with the Michigan Liquor Control Commission. The next two weeks gives the
establishments and staff time to distribute the plan and get feedback from Lakeside
businesses, property owners and residents.

This will appear on the agenda for consideration at the May 25, 2021 City Commission

Carlisle’s Arena Lease – City Manager
Nearly two years ago, the City Commission approved Carlisle’s response to an RFP
seeking restaurant operator for the Arena. Following a number of delays, including
issues with the City’s liquor license and the COVID-19 Pandemic, the ownership group
is ready to move forward. As part of the lease, the ownership group is obligated to cover
the upfront cost of construction and receive a credit toward rent payments to recover
their expenses. The base rental rate is $12.50 per square foot. Initial designs estimate
the square footage of Carlisle’s to be 3,500 square feet, resulting in a $3,125 base
monthly rent. In addition, Carlisle’s will pay a CAM Fee equal to $1,750 per month, and
certain fees during USHL hockey games, professional indoor soccer games, and
professional football games. These funds will be used by the City to meet any
obligations to the three existing sports teams that serve as our anchor tenants. Total
gross rent is expected to equal $77,500 annually for the first five-year term. Carlisle’s
can recoup their construction expenses at a rate of $7.00 per month for each $1,000
spent. Initial estimates for construction were $350,000. We capped the reimbursable
expenses at $500,000.

This item will appear on the agenda for consideration at the May 11, 2021 Regular City
Commission meeting.

Reese & Beukema Parks Plan – Department of Public Works
Leo Evans, Department of Public Works Director, presented information to the
Commission regarding proposed plans for investments at Reese and Beukema Parks.
The proposed outcomes are largely drawn from the 2019 works that was done to
identify capital needs throughout the entirety of the City park system.

Commission Meetings at Farmers Market/Meeting Efficiency
Discussion – Commissioner Ramsey
Discussion took place regarding the length of commission meetings, the number of
items on the commission agendas, and the potential of having in person meetings off-
site as well as when in-person meetings would resume. Some commissioners indicated
they did not feel safe meeting in person at this time.
American Rescue Plan Act Overview – City Manager
City Manager, Frank Peterson, presented information on the American Rescue Plan Act
The topics covered included anticipated Muskegon Receipts, Understood Uses, Interim
Rules, GFOA Recommendations, Additional Guidance, a Recent CNS Community
Survey, Revenue Replacement, Assistance to Households, Neighborhood
Empowerment, Neighborhood Parks, Regional Partnerships Opportunities, Boys/Girls
Club and Muskegon Museum of Art, Frauenthal Center and MCC Block, Assistance to
Tourism Industry, Convention Center, Hartshorn Marina, Downtown Related
Improvements, Shoreline Park and the Waterfront, Public/Private Partnerships, and
Historic Properties. Discussion took place regarding the American Rescue Plan Act.

Public Comment
Public comments were received.

The Worksession meeting adjourned at 9:20 p.m.

                                            Respectfully Submitted,

                                            Ann Marie Meisch, MMC – City Clerk

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