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City of Muskegon
Work Session
Minutes
October 9, 2023, 5:30 pm
Muskegon City Hall
933 Terrace Street, Muskegon, MI 49440
Present: Mayor Ken Johnson
Commissioner Rachel Gorman
Commissioner Rebecca St.Clair
Commissioner Eric Hood
Vice Mayor Willie German, Jr.
Commissioner Teresa Emory
Absent: Commissioner Michael Ramsey
Staff Present: City Manager Jonathan Seyferth
City Clerk Ann Meisch
City Attorney John Schrier
Deputy City Clerk Kimberly Young
2023-104
1. Call to Order
Mayor Johnson called the Work Session Meeting to order at 5:30 p.m.
2. New Business
2.a Resolution Recognizing Indigenous Peoples Day
Mayor Johnson presented a resolution in recognition of Indigenous Peoples' Day,
the second Monday of October and encouraging residents, businesses,
organizations, and public entities to recognize and honor Indigenous Peoples'
Day.
No. 2023-105(a)
Motion by: Vice Mayor German
Second by: Commissioner St.Clair
To recognize October 9, 2023 as Indigenous Peoples Day in Muskegon, MI.
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YES: (5): Mayor Johnson, Commissioner Gorman, Commissioner St.Clair, Vice
Mayor German, and Commissioner Emory
Absent (2): Commissioner Hood, and Commissioner Ramsey
MOTION PASSES (5 to 0)
2.b Samaritas Payment in Lieu of Taxes (PILOT) Agreement - 417 E. Jackson Ave.
Jake Eckholm, Economic Development Director, presented information regarding
the Samaritas Payment in Lieu of Taxes (PILOT) and explained that the
commission will be asked to consider several similar projects in the near future.
City Staff has negotiated and reviewed a Payment in Lieu of Taxes agreement for
commission consideration for an adaptive reuse project at Froebel School into
affordable workforce housing apartments.
For several years staff have been attempting to find a partner that had interest
and capacity in the adaptive reuse of the long-vacant Froebel School building.
Since 2019, we have toured more than 10 entities through the school, and held a
community meeting offering several touring opportunities for the public.
Through these efforts we have developed interest from Samaritas for the
potential installation of affordable housing units by application to the Michigan
Statewide Housing Development Authority (MSHDA) Low Income Housing Tax
Credit (LIHTC) Program. If awarded, then Samaritas proposes historical
preservation and adaptive remodel of the school building into apartments for
low to moderate income residents. The attached agreement establishes their
payment in lieu of taxes as 2% of net shelter rents. Note that this is the lowest
proposed PILOT of our proposed MSHDA submissions. This is due to the facts
that we are the owners of this facility and will incur significant costs to
demolish or otherwise redevelop the site, and that Samaritas is a non-profit
housing developer with limited capacity to finance and construct facilities
compared with for-profit housing development firms.
If approved by commission, Samaritas is also proposing a Municipal Services
Agreement of 3% of net shelter rents, for a total annual payment of 5% of rents.
The Municipal Services Agreement (MSA) stays completely with the city to
defray costs of public service delivery to the site, while the PILOT payment is
divided proportionally to the other taxing jurisdictions, similar to a traditional
property tax payment.
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This item is connected to the Samaritas MSA agenda item, as well as the sales
agreement item for Froebel School.
Discussion took place. This item is on the agenda for October 10, 2023 for City
Commission consideration.
2.c Samaritas Municipal Services Agreement - 417 E. Jackson Ave.
Jake Eckholm, Economic Development Director, provided an explanation of the
Samaritas Municipal Services Agreement and notified the Commissioners they
will be asked to consider several similar projects very soon.
City Staff has negotiated and reviewed a Payment in Lieu of Taxes agreement for
commission consideration for an adaptive reuse project at Froebel School into
affordable workforce housing apartments.
For several years staff have been attempting to find a partner that had interest
and capacity in the adaptive reuse of the long-vacant Froebel School building.
Since 2019, we have toured more than 10 entities through the school, and held a
community meeting offering several touring opportunities for the public.
Through these efforts we have developed interest from Samaritas for the
potential installation of affordable housing units by application to the Michigan
Statewide Housing Development Authority (MSHDA) Low Income Housing Tax
Credit (LIHTC) Program. If awarded, then Samaritas proposes historical
preservation and adaptive remodel of the school building into apartments for
low to moderate income residents. The attached agreement establishes their
Municipal Services Agreement at 3% of shelter rents.
If approved by commission, Samaritas is also proposing a PILOT payment of 2%
of net shelter rents, for a total annual payment of 5% of rents. The Municipal
Services Agreement (MSA) stays completely with the city to defray costs of
public service delivery to the site, while the PILOT payment is divided
proportionally to the other taxing jurisdictions, similar to a traditional property
tax payment.
This item is connected to the Samaritas PILOT agenda item, as well as the sales
agreement item for Froebel School.
Discussion took place and this item will be on the agenda October 10, 2023 for
consideration.
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2.d Froebel School Sale to Samaritas
Jake Eckholm, Economic Development Director, provided some information to
the Commission regarding a proposed purchase agreement which will be
presented for Commission consideration on October 24, 2023.
Mr. Lautenbach, Executive Director of Affordable Housing for Samaritas, spoke
to Commission about the potential plans for the property at the former Froebel
School building at 417 E. Jackson Avenue.
3. Any Other Business
General comments and updates were provided, some discussion took place.
4. Public Comment
Public comment was received.
5. Adjournment
The Work Session meeting adjourned at 6:35 p.m..
Motion by: Vice Mayor German
Second by: Commissioner St.Clair
MOTION PASSES
_________________________
Respectfully Submitted,
Ann Marie Meisch, MMC - City Clerk
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