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CITY OF MUSKEGON CITY COMMISSION MEETING AUGUST 27, 2013 CITY COMMISSION CHAMBERS @ 5:30 P.M. AGENDA CALL TO ORDER: PRAYER: PLEDGE OF ALLEGIANCE: ROLL CALL: HONORS AND AWARDS: INTRODUCTIONS/PRESENTATION: CONSENT AGENDA: A. Approval of Minutes. CITY CLERK B. 2013 – 2014 Muskegon High School Community Officer Agreement. PUBLIC SAFETY C. Emergency Pump Replacement of Sherman Lift Station. PUBLIC WORKS D. City – MDOT Agreement for the Reconstruction of Laketon Avenue between Park and Peck. ENGINEERING E. Request to Re-Float Ten Finger Piers at Hartshorn Marina. PUBLIC WORKS F. Youth Basketball League and Open Gym Proposal – Muskegon Public Schools. PLANNING & ECONOMIC DEVELOPMENT G. Gaming License Request from the Muskegon Rotary Foundation. CITY CLERK PUBLIC HEARINGS: A. Issuance of a Commercial Rehabilitation Certificate – 316 Morris Avenue. PLANNING & ECONOMIC DEVELOPMENT B. Establishment of a Commercial Rehabilitation District – 500 W. Western Avenue. PLANNING & ECONOMIC DEVELOPMENT COMMUNICATIONS: CITY MANAGER’S REPORT: UNFINISHED BUSINESS: NEW BUSINESS: ANY OTHER BUSINESS: PUBLIC PARTICIPATION: Reminder: Individuals who would like to address the City Commission shall do the following: Fill out a request to speak form attached to the agenda or located in the back of the room. Submit the form to the City Clerk. Be recognized by the Chair. Step forward to the microphone. State name and address. Limit of 3 minutes to address the Commission. (Speaker representing a group may be allowed 10 minutes if previously registered with City Clerk.) CLOSED SESSION: ADJOURNMENT: ADA POLICY: The City of Muskegon will provide necessary auxiliary aids and services to individuals who want to attend the meeting upon twenty four hour notice to the City of Muskegon. Please contact Ann Marie Cummings, City Clerk, 933 Terrace Street, Muskegon, MI 49440 or by calling (231) 724-6705 or TTY/TDD dial 7-1-1 to request a representative to dial (231) 724-6705. Date: August 27, 2013 To: Honorable Mayor and City Commissioners From: Ann Marie Cummings, City Clerk RE: Approval of Minutes SUMMARY OF REQUEST: To approve minutes of the August 12th Commission Worksession Meeting, and the August 13th City Commission Meeting. FINANCIAL IMPACT: None. BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: Approval of the minutes. City of Muskegon City Commission Worksession August 12, 2013 City Commission Chambers 5:30 PM MINUTES 2013-67 Present: Commissioners Markowski, Gawron, Hood, Wierengo, German, Turnquist, and Spataro. Absent: None. Smartzone Discussion. In 2011 the City Commission approved an agreement to transfer the development agreement from Belmont, LLC to Muskegon Lakefront, LLC. Although the City Commission approved the agreement, it has not been signed because obligations have not been met. Part of the agreement with Belmont Farms, LLC allows the City to place the special assessment back onto the property, approximately $500,000. There are two obligations that need to be made and kept. The first is the Brownfield Loan. It was in default, but has been caught up. The second is the obligation that two units begin construction by December 31, 2012. The City is obligated to pay the debt service for the MAREC Center. Tim Paul and Bryon Mazade met with representatives last week to discuss the situation. Looking for today – make sure there is a good understanding of the situation and any direction you want to give staff, we would welcome that. The City Commission, by consensus, authorized the City Manager to negotiate and see if both sides can come to a consensus on a new agreement. The City Manager is directed to make contact and be ready to take action if a consensus can not be reached in 30 days. Farmer’s Market/Bike Time. Mayor Gawron reiterated the Commission’s stand that the Farmer’s Market would come first over festivals. The farmers have indicated they do not believe the Farmer’s Market will work by sharing the space with festivals. Commissioner Hood agreed and indicated that he spoke to some of the farmers and they do not believe it will work. As much as he would like to see it work, a promise was made to the Farmer’s Market that they would be put first. Commissioners stressed how much they enjoy Bike Time and want to see it continue to be successful. Clyde Whitehouse, owner of Hot Rod Harley Davidson, spoke. Bike Time is suggesting to have a survey to see how the crowd feels. He believes there may be some confusion of what the proposal actually is and thinks bringing 100,000 additional people to the market will be beneficial. Bike Time also proposes to promote the market all year through their promotional material. It is being requested that a decision be withheld until a survey can take place. Moved by Vice Mayor Spataro, seconded by Commissioner Wierengo that the vendor rules for the Muskegon Farmer’s Market will not be altered and we will not compete with any other existing festival/special events. ROLL CALL VOTE: Ayes: Markowski, Gawron, Hood, Spataro, German, Wierengo, and Turnquist. Nays: None. MOTION PASSES Adjournment. Motion by Commissioner Hood, seconded by Commissioner Spataro to adjourn at 7:32 p.m. MOTION PASSES ____________________________ Ann Marie Cummings, MMC City Clerk CITY OF MUSKEGON CITY COMMISSION MEETING AUGUST 13, 2013 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, August 13, 2013. Mayor Gawron opened the meeting with a prayer from Mr. George Monroe from the Evanston Avenue Baptist Church after which the Commission and public recited the Pledge of Allegiance to the Flag. ROLL CALL FOR THE REGULAR COMMISSION MEETING: Present: Mayor Stephen Gawron, Vice Mayor Lawrence Spataro, Commissioners Eric Hood, Willie German, Sue Wierengo, and Byron Turnquist, City Manager Bryon Mazade, City Attorney John Schrier, and City Clerk Ann Marie Cummings. Absent: Commissioners Lea Markowski (arrived at 5:37 p.m.) 2013-68 CONSENT AGENDA: A. Approval of Minutes. CITY CLERK SUMMARY OF REQUEST: To approve minutes of the July 23rd City Commission Meeting and the July 30th, 31st and August 5th Special Commission Meetings. FINANCIAL IMPACT: None. BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: Approval of the minutes. C. Letter of Support to WMSRDC’s Great Lakes Fisheries Trust Grant Application. PUBLIC WORKS SUMMARY OF REQUEST: Support the West Michigan Shoreline Regional Development’s efforts to secure Fisheries grant to construct approximately 800’ of bike trail, fishing stations and possibly a picnic shelter (depending on the dollars available) on the Hartshorne peninsula’s pier and authorize the Mayor to sign the letter of support. FINANCIAL IMPACT: None to the City, however, the application is expected to request around $200,000. BUDGET ACTION REQUIRED: None. 1 STAFF RECOMMENDATION: Endorse WMSRDC’s efforts and authorize the Mayor to sign the letter of support. E. SECOND READING: Fireworks Ordinance Amendment. PUBLIC SAFETY SUMMARY OF REQUEST: It is requested the City Commission approve the Ordinance Amendment which provides for the regulation of the ignition, discharge and use of consumer fireworks, as allowed under the Michigan Fireworks Safety Act. The ordinance specifically limits the days and hours Consumer fireworks may be ignited, discharged or used in the City. The ordinance prohibits the use of fireworks while under the influence of alcohol or drugs. The Public Safety Office wants to ensure no person shall recklessly endanger the life, health, safety, or well-being of any person by the ignition, discharge, or use of consumer fireworks. FINANCIAL IMPACT: None. BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: To approve the Ordinance as presented. Motion by Vice Mayor Spataro, second by Commissioner Hood to adopt the Consent Agenda as presented with the exception of items B and D. ROLL VOTE: Ayes: Hood, Spataro, German, Wierengo, Turnquist, and Gawron Nays: None MOTION PASSES 2013-69 ITEMS REMOVED FROM THE CONSENT AGENDA: B. Concession Contract for Concession Building at Pere Marquette Park. PUBLIC WORKS SUMMARY OF REQUEST: Staff is asking permission to enter into a one-year contractual agreement for 2014 with Morse and Jinger Michael of Moji Inc. (DBA The Beach Cove) for operating a Concession called “The Beach Cove” (“The Island” Concession) at Pere Marquette Park. FINANCIAL IMPACT: Contract revenue for “The Island” concession was $2,118 for the 2009 operating season, $3,625 in 2010, $1,830 in 2011 and $1,296 in 2012. Concession revenue is normally 10% of gross receipts. However, if approved by Commission, staff would negotiate “in-kind” services/donation to Pere Marquette Park facilities or 10% commission of gross receipts. BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: Authorize DPW Staff to enter into a one-year Concession Agreement with Morse and Jinger Michael of Moji Inc., for a Concession at the Concession (restroom/lifeguard) Building at Pere Marquette Park for 2014. 2 Motion by Commissioner Turnquist, second by Commissioner Wierengo to approve the one-year Concession Agreement with Morse and Jinger Michael of Moji Inc., for a Concession at the Concession Building at Pere Marquette Park for 2014. ROLL VOTE: Ayes: Spataro, German, Wierengo, Turnquist, Markowski, Gawron, and Hood Nays: None MOTION PASSES D. Farmers’ Market DMDC Relocation Site – Purchase Agreement between the City of Muskegon (City) and Downtown Muskegon Development Corporation (DMDC). PLANNING & ECONOMIC DEVELOPMENT SUMMARY OF REQUEST: The DMDC is developing a portion of their property downtown for the relocated City Farmers’ Market. When the property has been developed, the DMDC will transfer the land and improvements to the City for $1. The Purchase Agreement outlines the terms for this transfer, which is expected to occur in the spring of 2014. FINANCIAL IMPACT: The City will be paying $1 for the land and improvements. The City will continue to manage the Farmers’ Market, as well as the new entities, such as the community kitchen. The City will collect the revenues and pay for any future expenditures. BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: To approve the Purchase Agreement between the City and DMDC and authorize the Mayor and Clerk to sign all necessary documents, including closing documents at the time of sale. Motion by Commissioner German, second by Vice Mayor Spataro to approve the Purchase Agreement between the City of Muskegon and the Downtown Muskegon Development Corporation. ROLL VOTE: Ayes: German, Wierengo, Turnquist, Markowski, Gawron, Hood, and Spataro Nays: None MOTION PASSES 2013-70 NEW BUSINESS: A. Presentation of Veterans’ Memorial Park. PUBLIC WORKS SUMMARY OF REQUEST: Allow staff and the engineer to make a required public presentation on the proposed improvements to the Veterans’ Park. The City of Muskegon, in cooperation with MDOT, the City of North Muskegon, Muskegon County, the Lions of Michigan, and local veterans groups, is undertaking the 3 design and construction of improvements to the Veterans’ Memorial Causeway Park to improve barrier-free accessibility. Since the project is within a publicly owned park, public informational meetings are required by MDOT to be held to allow for public comment. FINANCIAL IMPACT: None. BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: Allow the presentation and greet any and all comments offered by the public at the meeting. City Engineer/Public Works Director Mohammed Al-Shatel introduced Frank Bednarek, Hooker Dejong Architects, 316 Morris, who gave an overview of the project. Bruce Callen, Callen Engineering, 15172 Carriage Way, Spring Lake, explained barrier free accessibility and relocation of monuments. Dr. Cobler, 1045 Camelot, Laketon Township, stated the water fountain and two cannons will get a make-over. These two items are not in the scope of this funding. Mohammed Al-Shatel stated that by accepting this project you are okaying the removal of streetlights. Tom Thompson, 5564 Southshore Dr., Fruitland Twp., commented on the decorative trees blocking the view of the interior. County Commissioners Terry Sabo and Rillastine Wilkins support the project. B. Designation of Voting Delegates for the Michigan Municipal League Annual Business Meeting. CITY CLERK SUMMARY OF REQUEST: To designate by action of the Commission, one of our officials who will be in attendance at the Convention as an official representative to cast the vote of the municipality at the annual meeting; and, if possible, to designate one other official to serve as alternate. FINANCIAL IMPACT: None. BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: Approval. Motion by Vice Mayor Spataro, second by Commissioner Wierengo to designate Cathy Brubaker-Clarke as the delegate and Mohammed Al-Shatel as the alternate for the convention. ROLL VOTE: Ayes: Turnquist, Markowski, Gawron, Hood, Spataro, German, and Wierengo Nays: None MOTION PASSES 4 PUBLIC PARTICIPATION: Public comments were received. ADJOURNMENT: The City Commission Meeting adjourned at 6:12 pm. Respectfully submitted Ann Marie Cummings, MMC City Clerk 5 Agenda Item No. _________ Date: 08/27/13 To: Honorable Mayor and City Commission From: Department of Public Works RE: Emergency Pump Replacement of Sherman Lift Station. ________________________________________________________ SUMMARY OF REQUEST: Authorize staff to purchase one new 25 HP Flygt Submersible Sewage Pump from Kennedy Industries for the quoted price of $16,958. FINANCIAL IMPACT: Total cost $16,958. BUDGET ACTION REQUIRED: None, expenditures for the purchase would come from the Sewer Budget. STAFF RECOMMENDATION: Approve purchase. Memorandum To: Mohammed Al-Shatel From: Dave Baker Date: 8/21/2013 Re: Pump Repair or Replacement of Sherman Lift Station One of the pumps at the Sherman Lift Station is in need of repair or replacement. Both pumps at this station are the original pumps from the early 1990’s, and each one was rebuilt in 2006 at a cost of $4,605 each. Repair estimates for the current pump failure is $6500 from Jones Electric or $9,500 from Kennedy Industries. I’m still waiting for official quotes but phone estimates for replacement are $16,958 from Kennedy Industries and over $17,000 from Jones Electric. This station is currently running on two older pumps, both of which have had issues. This station takes in all the businesses along Sherman and some businesses in the Industrial Park area, including the State Prison. For these reasons, I am recommending replacing the pump instead of throwing more and more money towards repairs. This would give us a new, efficient and reliable pump, and give us time to budget for the eventual replacement of the other pump. David Baker Public utilities Supervisor 1 QUOTATION DATE NUMBER PAGE 8/9/2013 48018 1 of 1 Accepted By: B MUS500 Company: I CITY OF MUSKEGON L 611 SENIC DRIVE Date: L MUSKEGON, MI 49445 T PO#: O ATTENTION: DAVE BAKER P: 231-724-6988 DAVE.BAKER@SHORELINECITY.COM WE ARE PLEASED TO PROPOSE THE FOLLOWING FOR YOUR CONSIDERATION: CUSTOMER REF/PO # JOB # JOB TITLE SLP SHIPPING TYPE QUOTE 48018 CP 3152 PUMP REPAIR / REPLACEMENT ACS / MJH FRT ALLOWED QTY DESCRIPTION REPAIR CP 3152: (1) ESTIMATED REPAIR BASED ON COMMON PARTS INCLUDING IMPELLER, WEAR RINGS AND SEAL KIT. INCLUDES PICKUP AND DELIVERY. NET PRICE INCLUDING FREIGHT, BUT NO TAX -- $ 9,500.00 ************************************************************************************************** REPLACE WITH NEW CP 3152 (OLD DESIGN): (1) FLYGT EXPLOSION PROOF SUBMERSIBLE PUMP MODEL CP 3152.091 WITH 454 IMP. PUMP RATED 20 HP, 3/460V WITH 6" DISCHARGE AND 50' MOTOR AND SENSOR CABLE. (1) START-UP ASSISTANCE. NET PRICE INCLUDING FREIGHT, BUT NO TAX -- $ 17,383.00 *************************************************************************************************** REPLACE WITH CURRENT DESIGN, NP 3171: (1) FLYGT EXPLOSION PROOF SUBMERSIBLE PUMP MODEL NP 3171.095 WITH 455 IMP. PUMP RATED 25 HP, 3/460V WITH 4" DISCHARGE AND 50' MOTOR AND SENSOR CABLE. (1) SET OF SPACER BLOCKS TO FIT PUMP TO EXISTING GUIDE RAILS. (1) START-UP ASSISTANCE. NET PRICE INCLUDING FREIGHT, BUT NO TAX -- $ 16,958.00 *************************************************************************************************** WE DO NOT INCLUDE: INSTALLATION, SITE WORK, CONCRETE, ANCHOR BOLTS, PIPING, STARTERS, CONTROLS, CONDUIT, WIRING, OR JUNCTION BOXES. WE APPRECIATE THIS OPPORTUNITY TO QUOTE AND LOOK FORWARD TO BEING OF FUTURE SERVICE. SINCERELY, MARK J. HEMEYER / ADAM C. SHARP KENNEDY INDUSTRIES INC. This proposal is subject to Kennedy's standard terms and conditions of sale (rev'd 5/2011), which are attached or viewable at www.kennedyind.com. Terms of payment are net 30 days from date of invoice with 1-1/2% per month additional charge on unpaid balance. NO TAXES OF ANY KIND ARE INCLUDED IN THIS PROPOSAL P.O. Box 180 52900 Grand River New Hudson, MI 48165-0180 Phone: 248-684-1200 Fax: 248-684-6011 www.KennedyInd.com Page 1 of 1 Linda Potter From: Dave Baker Sent: Monday, August 19, 2013 1:31 PM To: 'M Passage' Subject: RE: pump Hey Mike, Per our conversation, this e‐mail will serve as your bid for the replacement of the pump at Sherman Lift Station. Pump replacement‐ $19,000. Thanks Dave Baker Public utilities Supervisor City of Muskegon 231‐724‐4184 From: M Passage [mailto:mpassage@halljones.com] Sent: Monday, August 05, 2013 2:33 PM To: Dave Baker Subject: pump David We are pleased to quote the following. Flygt pump motor repair. disassemble clean surge test ground test replace all seals and bearings replace cord replace wear rings replace impeller assemble tank test 48 hours paint $6500.00 plus shipping for parts. Parts are 4 weeks out. Thanks Mike Passage Jones Electric Company mpassage@halljones.com 231-726-5001 ph 231-722-4761 fax 8/21/2013 Date: August 27, 2013 To: Honorable Mayor and City Commissioners From: Engineering RE: City – MDOT Agreement for the reconstruction of: Laketon Ave. between Park & Peck SUMMARY OF REQUEST: Approve the attached contract with MDOT for the reconstruction of Laketon Ave. between Peck & Park and approve the attached resolution authorizing the Mayor and City Clerk to sign the contract. FINANCIAL IMPACT: MDOT’s participation is limited to the approved federal funds of $704,475. The estimated total construction cost is $1,129,000 plus engineering cost. BUDGET ACTION REQUIRED: none at this time STAFF RECOMMENDATION: Approve the attached contract and resolution authorizing the mayor & clerk to sign both. COMMITTEE RECOMMENDATION: RESOLUTION__________ RESOLUTION FOR APPROVAL OF A CONTRACT AGREEMENT BETWEEN THE MICHIGAN DEPARTMENT OF TRANSPORTATION AND THE CITY OF MUSKEGON FOR THE RECONSTRUCTION OF LAKETON AVE. BETWEEN PARK & PECK TOGETHER WITH OTHER NECESSARY RELATED WORK ITEMS AND AUTHORIZATION FOR MAYOR STEPHEN J. GAWRON AND CITY CLERK, ANN CUMMINGS, TO EXECUTE SAID CONTRACT Moved by_____________________________________and supported by Commissioner___________________________that the following Resolution be adopted: WHEREAS, entry by the City of Muskegon into Contract no. 13-5425 between the Michigan Department of Transportation and the City of Muskegon for the reconstruction of Laketon Ave. between Park & Peck within the City is in the best interests of the City of Muskegon. RESOLVED, that entry by the City into Contract Agreement Number 13-5425 be and the same is hereby authorized and approved and the Mayor and Clerk are authorized to execute said contract for and on behalf of the City of Muskegon. Adopted this____________day of____________, 2013. BY Stephen J. Gawron, Mayor ATTEST Ann Cummings, City Clerk CERTIFICATION This resolution was adopted at a meeting of the City Commission, held on ____________, 2013. The meeting was properly held and noticed pursuant to the Open Meetings Act of the State of Michigan, Act 267 of the Public Acts of 1976. CITY OF MUSKEGON By___________________________ Ann Cummings, City Clerk Commission Meeting Date: August 27, 2013 Date: August 20, 2013 To: Honorable Mayor & City Commission From: Planning & Economic Development Department RE: Youth Basketball League and Open Gym Proposal- Muskegon Public Schools SUMMARY OF REQUEST: The City of Muskegon has contracted with the Muskegon Public Schools (“Schools”) for the management of the Youth Basketball League and Open Gym since 2010. The program has been successful (see attached report) and the Schools would like to manage the program for the 2013- 2014 school year. The Commission is requested to approve the attached proposal and authorize staff to enter into an agreement with the Schools for oversight of the basketball program and the Open Gym program. FINANCIAL IMPACT: The cost for the program is $18,500 (which has not changed since 2010). BUDGET ACTION REQUIRED: Funds are available through the Leisure Services budget. STAFF RECOMMENDATION: To approve the “Youth Basketball League and Open Gym Proposal” and authorize staff to enter into a formal agreement with the Schools. 21st CCLC After School Programs 349 W. Webster Avenue, Muskegon, MI 49440 231-720-2000 Fax 231-720-2050 August 14, 2013 Youth Basketball League Proposal From: Muskegon Public Schools To: The City of Muskegon Muskegon Public Schools is continually looking for new ways to "reach out and change lives" in our community. Collaborating with the City of Muskegon will help offer safe, positive after school recreational opportunities for the students serviced throughout our communities. Last year's Youth Basketball and Open Gym program established a successful foundation to sustain this collaborative effort. Based on review of expenses our current proposal is as follows: 1.) The MPS Youth Support Services Office located @ Muskegon Hackley Administration Building, would administer the following programs: Open Gym and the Youth Basketball League. These programs would run between October 2013 and March 2014. 2.) The City of Muskegon would contribute $18,500 towards this partnership. The funds would be used for the following expenses: program administration and supervision, custodial services, supplies/materials and support personnel (i.e. referee's and statisticians). Program Descriptions: 1.) Boy's and girl's basketball seasons would run consecutively for (6) weeks with the (6th) week being tournament play to conclude each season. The girl’s season would start Fall of 2013 and the boy’s would begin after the conclusion of Christmas break (Winter 2014). 2.) Student registration fee would remain $25 per student to include: reversible game jerseys, individual participation medals, team plaques, and trophies for the tournament champion and runner up teams. 3.) MPS will accept responsibility for all administrative and supervisory obligations for the Youth Basketball League. Open Gym: 1.) Open gym will be offered for (3) hours the day following the Saturday basketball games for both girls and boys season. 2.) MPS will accept responsibility for all administrative and supervisory obligations for the Open Gym program. It is the policy of the Public Schools of the City of Muskegon that no person shall, on the basis of race, color, religion, national origin or ancestry, sex, age, disability, height, weight, or marital status be excluded from participation in, be denied the benefits of, or be subjected to discrimination during any program or activity or in employment. If you feel you have been discriminated against, please contact the Office of the Assistant Superintendent of Human Resources, 349 W. Webster Avenue, Muskegon, MI 49440 (231) 720-2000 Grant Contacts Kimberly Leavell 231-720-2557 Director 21st CCLC kleavell@mpsk12.net George Sharp 231-720-2061 Assistant Director 21st CCLC gsharp@mpsk12.net Muskegon Public Schools looks forward to our partnership for the 2013/2014 academic year. It is the policy of the Public Schools of the City of Muskegon that no person shall, on the basis of race, color, religion, national origin or ancestry, sex, age, disability, height, weight, or marital status be excluded from participation in, be denied the benefits of, or be subjected to discrimination during any program or activity or in employment. If you feel you have been discriminated against, please contact the Office of the Assistant Superintendent of Human Resources, 349 W. Webster Avenue, Muskegon, MI 49440 (231) 720-2000 Date: August 27, 2013 To: Honorable Mayor and City Commissioners From: Ann Marie Cummings, City Clerk RE: Gaming License Request from the Muskegon Rotary Foundation SUMMARY OF REQUEST: The Muskegon Rotary Foundation 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. FINANCIAL IMPACT: None BUDGET ACTION REQUIRED: None STAFF RECOMMENDATION: Approval Commission Meeting Date: August 27, 2013 Date: August 21, 2013 To: Honorable Mayor and City Commissioners From: Planning & Economic Development RE: Public Hearing – Issuance of a Commercial Rehabilitation Certificate – 316 Morris Ave. SUMMARY OF REQUEST: Pursuant to Public Act 210 of 2005, as amended, The Hinman Company has requested the issuance of a Commercial Rehabilitation Certificate. The City Commission approved the creation of the Commercial Rehabilitation District on January 22, 2013. The certificate will freeze the taxable value of the building and exempt the new real property investment from local taxes. The school operating tax and the State Education Tax (SET) are still levied on the new investment. The company will be investing over $450,000 in the building, which qualifies them for an abatement of 10 years. FINANCIAL IMPACT: The real property taxes would be frozen at their pre-rehabilitated rate for the duration of the certificate BUDGET ACTION REQUIRED: None STAFF RECOMMENDATION: Establishment of the Commercial Rehabilitation Certificate COMMITTEE RECOMMENDATION: None 8/21/2013 Resolution No. _______ MUSKEGON CITY COMMISSION RESOLUTION APPROVING APPLICATION FOR ISSUANCE OF A COMMERCIAL REHABILITATION CERTIFICATE Hinman Lake, LLC WHEREAS, pursuant to P.A. 210 of 2005 as amended, after duly noticed public hearing held on January 22, 2013, this Commission by resolution established a Commercial Rehabilitation District as requested by Hinman Lake, LLC for the building at 363 Ottawa St, Muskegon, Michigan 49442; and WHEREAS, Hinman Lake, LLC has requested in writing for the City to establish a Commercial Rehabilitation District at 363 Ottawa St in a letter dated December 18, 2012; and WHEREAS, the application for the issuance of a Commercial Rehabilitation Certificate was filed within six months of the projects commencement; and WHEREAS, the rehabilitation of this building is calculated to and will have the reasonable likelihood to retain, create, or prevent the loss of employment in Muskegon, Michigan; and WHEREAS, Hinman Lake, LLC is not delinquent in any taxes related to the facility; and WHEREAS, the application is for commercial property as defined in section 2(a) of Public Act 210 of 2005; and WHEREAS, Hinman Lake, LLC has provided answers to all required questions under the application instructions to the City of Muskegon; and WHEREAS, the City of Muskegon requires that rehabilitation of the facility shall be completed by August 22, 2014; and WHEREAS, the application relates to a rehabilitation program that when completed constitutes a qualified facility within the meaning of Public Act 210 of 2005 and that is situated within a Commercial Rehabilitation District established under Public Act 210 of 2005; and WHEREAS, the rehabilitation includes improvements aggregating 10% or more of the true cash value of the property at commencement of the rehabilitation as provided by section 2(j) of Public Act 210 of 2005; and WHEREAS, a Public Hearing was held on August 27, 2013 at which the applicant, the assessor and representatives of the affected taxing units were given written notice and were afforded an opportunity to be heard; and WHEREAS, the aggregate SEV of real property exempt from ad valorem taxes within the City of Muskegon, will not exceed 5% of an amount equal to the sum of the SEV of the unit, plus the SEV of personal and real property thus exempted. NOW, THEREFORE, BE IT RESOLVED by the Muskegon City Commission of the City of Muskegon, Michigan that: 8/21/13 1) The Muskegon City Commission finds and determines that the Certificate considered together with the aggregate amount of certificates previously granted and currently in force under Act No. 210 of the Public Act of 2005 as amended shall not have the effect of substantially impeding the operation of the City of Muskegon or impairing the financial soundness of a taxing unit which levies ad valorem property taxes in the City of Muskegon. 2) The application of Hinman Lake, LLC, for the issuance of a Commercial Rehabilitation Certificate with respect to the building improvements and equipment on the following described parcel of real property situated within the City of Muskegon to wit: CITY OF MUSKEGON REVISED PLAT OF 1903 THAT PT OF BLKS 558-562 VAC ALLEY VAC JEFFERSON ST & VAC WATER ST DESC AS FOLS COM AT W MOST COR LOT 17 OF SD BLK 561 FOR POB TH S 39D 47M E ALG ELY LN OF N FIRST ST 193.65 FT TO NLY LN OF MORRIS AVE TH N 21D 59M 27S E ALG NLY LN MORRIS AVE 203.46 FT TH N 27D 33M E ALG NLY LN MORRIS AVE 275.90 FT TO SWLY LN OF TERRACE ST(125.00 FT WIDE) TH N 62D 44M W ALG SWLY LN TERRACE ST(125 FT WIDE) 449.40 FT TH WLY ALG THE ARC OF THE 177.48 FT R CURVE TO LT A DISTANCE 138.36 FT TO ELY LN OF C&O RR ROW(THE LONG CHORD OF SD CURVE BEARS N 85D 04M W 134.90 FT) 3) The Commercial Rehabilitation Certificate is issued and shall be and remain in force and effect for a period of ten (10) years, ending on December 31, 2023. Adopted this 27th Day of August, 2013. Ayes: Nays: Absent: BY: __________________________________ Stephen Gawron Mayor ATTEST: __________________________________ Ann Cummings Clerk CERTIFICATION I hereby certify that the foregoing constitutes a true and complete copy of a resolution adopted by the Muskegon City Commission, County of Muskegon, Michigan, at a regular meeting held on August 27, 2013. ______________________________ Ann Cummings Clerk 8/21/13 Commission Meeting Date: August 27, 2013 Date: August 21, 2013 To: Honorable Mayor and City Commissioners From: Planning & Economic Development RE: Public Hearing – Establishment of a Commercial Rehabilitation District – 500 W Western Ave. SUMMARY OF REQUEST: Pursuant to Public Act 210 of 2005, as amended, 500 W Western Ave LLC has requested the establishment of a Commercial Rehabilitation District. The creation of the district will allow the building owner to apply for a Commercial Rehabilitation Certificate, which will freeze the taxable value of the building and exempt the new real property investment from local taxes. The school operating tax and the State Education Tax (SET) are still levied on the new investment. Land and personal property cannot be abated under this act. FINANCIAL IMPACT: None BUDGET ACTION REQUIRED: None STAFF RECOMMENDATION: Establishment of the Commercial Rehabilitation District. COMMITTEE RECOMMENDATION: None 8/21/2013 Resolution No. _______ MUSKEGON CITY COMMISSION RESOLUTION APPROVING THE CREATION OF A COMMERCIAL REHABILITATION DISTRICT 500 W Western Ave WHEREAS, 500 W Western Ave has requested in writing for the City to establish a Commercial Rehabilitation District at 500 W Western Ave in a letter received by the city on July 26, 2013; and WHEREAS, the creation of this district is calculated to and will have the reasonable likelihood to retain, create, or prevent the loss of employment in Muskegon, Michigan; and WHERAS, the building at this location is at least 15 years old and is located in a downtown district; and WHEREAS, a Public Hearing was held on August 27, 2013 at which the applicant, the assessor and representatives of the affected taxing units were given written notice and were afforded an opportunity to be heard; NOW, THEREFORE, BE IT RESOLVED, the City Commission of Muskegon does hereby establish a “Commercial Rehabilitation District” for the property at 500 W Western Ave on the following described parcel of real property CITY OF MUSKEGON REVISED PLAT OF 1903 THAT PT OF BLKS 558-562 VAC ALLEY VAC JEFFERSON ST & VAC WATER ST DESC AS FOLS COM AT W MOST COR LOT 17 OF SD BLK 561 FOR POB TH S 39D 47M E ALG ELY LN OF N FIRST ST 193.65 FT TO NLY LN OF MORRIS AVE TH N 21D 59M 27S E ALG NLY LN MORRIS AVE 203.46 FT TH N 27D 33M E ALG NLY LN MORRIS AVE 275.90 FT TO SWLY LN OF TERRACE ST(125.00 FT WIDE) TH N 62D 44M W ALG SWLY LN TERRACE ST(125 FT WIDE) 449.40 FT TH WLY ALG THE ARC OF THE 177.48 FT R CURVE TO LT A DISTANCE 138.36 FT TO ELY LN OF C&O RR ROW(THE LONG CHORD OF SD CURVE BEARS N 85D 04M W 134.90 FT) Adopted this 27th Day of August 2013. Ayes: Nays: Absent: BY: __________________________________ Stephen Gawron Mayor ATTEST: __________________________________ Ann Cummings Clerk 8/21/13 CERTIFICATION I hereby certify that the foregoing constitutes a true and complete copy of a resolution adopted by the Muskegon City Commission, County of Muskegon, Michigan, at a regular meeting held on August 27, 2013. ______________________________ Ann Cummings Clerk 8/21/13
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