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CITY OF MUSKEGON CITY COMMISSION MEETING MARCH 25, 2014 CITY COMMISSION CHAMBERS @ 5:30 P.M. AGENDA CALL TO ORDER: PRAYER: PLEDGE OF ALLEGIANCE: ROLL CALL: HONORS AND AWARDS: INTRODUCTIONS/PRESENTATION: CITY MANAGER’S REPORT: A. March 25, 2014 Report. CITY MANAGER CONSENT AGENDA: A. Approval of Minutes. CITY CLERK B. 2014 Dozer Rental for Beach Leveling. PUBLIC WORKS C. Pothole Wagon. PUBLIC WORKS D. Rezoning Request for the Properties Located at 2306 and 2320 S. Getty Street. PLANNING & ECONOMIC DEVELOPMENT E. MUFD Fire Apparatus & Equipment Request for a 2014 Spartan Metro- Star Custom Chassis Fire Engine. PUBLIC SAFETY F. Heritage Square Development LLC – Loan from City. PLANNING & ECONOMIC DEVELOPMENT PUBLIC HEARINGS: A. Issuance of a Commercial Rehabilitation Certificate for 500 W. Western Avenue. PLANNING & ECONOMIC DEVELOPMENT COMMUNICATIONS: UNFINISHED BUSINESS: NEW BUSINESS: A. Approval of Sale of City-Owned Home at 1500 Leahy. COMMUNITY & NEIGHBORHOOD SERVICES 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. Memorandum To: Mayor and Commissioners From: Frank Peterson Re: City Commission Work Session Date: March 20, 2014 We have a number of items on the agenda, and I thought you could use a little background on them as you prepare for our meeting next week. 1. Consent Agenda: a. The dozer rental is necessary to begin reopening the beach for the 2014 season. b. I think of all years, this will be one of our greatest challenges for filling potholes. The pothole wagon will help us do this more efficiently and effectively. This purchase will replace one of our two existing pothole wagons. c. The rezoning request for 2306 and 2320 Getty has been approved by the Planning Commission. There was no opposition from the surrounding neighborhood, and this will allow for an existing business to expand into some vacant buildings. d. The fire truck came in under budget. We were able to realize some additional savings by joining a purchasing consortium and agreeing to pay for the equipment up-front. e. The Heritage Square Agreement is expected to jumpstart the townhome project on Clay Street. At our recent goal setting session, the idea of getting this and other downtown projects moving again was a high priority for the Commission. In addition to this agreement, which will help build two townhomes, we will be bringing a HOME Funding agreement to the commission soon that will assist in the building of 4 smaller condo units and 4 commercial units. We expect to recoup our investment as the two townhomes sell. 2. New Business a. The only item is the sale of our last CNS home! This marks four home sales this month, and should project good feelings about the 2014 housing market in Muskegon! Other Updates: 1. We have a meeting scheduled with the LC Walker folks next week, and plan to have an update and recommendation to you regarding utilities at the April Work Session. 2. Action Plans for the 2014 12-month goals will be presented at the April Work Session. 3. Staff will make a recommendation on Muskegon/Webster at the April Work Session relative to traffic signalization and how to re-stripe the roadway. 4. With the $215 Million road funding supplement now signed into law, we are in a position to receive about $190,000 in additional funding to help fill potholes in 2014. Additionally, members of the legislature were able to submit for funding for special road projects within their districts. Mohammed worked with both Rep. Hovey-Wright and Sen Hansen to have a project from Muskegon listed for consideration; cross your fingers 5. Pigeon Hill Brewery is scheduled to open this weekend, and City Hub Cyclery held a Grand Opening in Downtown Muskegon this week! Date: March 25, 2014 To: Honorable Mayor and City Commissioners From: Ann Marie Cummings, City Clerk RE: Approval of Minutes SUMMARY OF REQUEST: To approve minutes of the March 10th Commission Worksession Meeting, and the March 11th City Commission Meeting. FINANCIAL IMPACT: None. BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: Approval of the minutes. City of Muskegon City Commission Worksession March 10, 2014 City Commission Chambers 5:30 PM MINUTES 2014-15 Present: Commissioners Gawron, Johnson, German, Hood, Turnquist, Rinsema-Sybenga, and Spataro. Absent: None. LC Walker Arena Utility Costs. Staff has been in discussions with LC Walker Arena’s Management Company. There is concern the building has high operating costs outside of those associated with the hockey team. The management company has made a number of capital investments, but is still in need of some sort of change in the management fee structure to free up capital to operate the arena and keep up on needed maintenance. The City Manager is requesting the Commission to consider reimbursing the management company up to $15,000 per month for utility costs beginning in March 2014, and continuing until we have a satisfactory (but not more than 12 months) to ensure the success of the arena. The City Manager will draw up an agreement to take to the City Commission for consideration. SAPPI Smoke Stack(s) Presentation & Discussion. Representatives of Melching and Trinity Explosives gave an update on the planned implosion of the smokestacks. Sidewalk Snow Removal Ordinance Amendment. Staff has updated the proposed ordinance to address the concerns of the Commissioners. This item has been placed on the March 11, 2014 City Commission meeting for consideration by the Commission. Pilot Request (Nelson Place) – Ordinance Amendment, First Reading Joe Hollander of Hollander Development Corporation (a partner in Nelson Place Limited Dividend Housing Association Limited Partnership), is seeking new financing for Nelson Place. There is currently a Payment in Lieu of Taxes (PILOT) for Nelson Place which was executed on March 26, 1996. Mr. Hollander intends to refinance the existing high interest loan from MSHDA with a lower interest rate loan from another lender. However, the existing PILOT Ordinance for Nelson Place terminates the exemption upon refinancing. Therefore, an amendment to the current Ordinance is being requested to allow for the continuation of the PILOT after refinancing. Mr. Hollander intends to continue with the present rent restrictions and income limits. There will be no significant change to the existing PILOT (length of Contract, PILOT payment). In addition, Nelson Neighborhood Improvement Association will be paid back for a portion of their initial investment in the property. The Commission is requested to review and vote on the Ordinance Amendment at the March 10, 2014 Work Session. It is likely that a second reading will be necessary on March 11, 2014. Staff Recommendation: If the City Commission agrees that the continuation of the PILOT is necessary for this property, staff recommends the ordinance amendment be approved and the Clerk be authorized to sign the necessary documents. Motion by Commissioner Hood, seconded by Commissioner German to approve the ordinance amendment as presented and authorize the Clerk to sign the necessary documents. ROLL CALL: Ayes: Turnquist, Johnson, Gawron, Hood, and German. Nays: None. Abstained: Rinsema-Sybenga and Spataro. MOTION PASSES A second reading will be required. Resolution to Place an Emergency Moratorium on the Establishment of Medical Marijuana Facilities. In light of a number of changes in case law since the implementation of our current ordinance regulating medical marijuana, our recommendation is to implement a 120 day moratorium while staff works to update our ordinance. This item has been placed on the March 11, 2014 City Commission Meeting for consideration by the City Commission. Adjournment. Motion by Commissioner Hood, seconded by Commissioner Johnson to adjourn at 6:50 p.m. MOTION PASSES ____________________________ Ann Marie Cummings, MMC City Clerk CITY OF MUSKEGON CITY COMMISSION MEETING MARCH 11, 2014 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, MI at 5:30 p.m., Tuesday, March 11, 2014. Mayor Gawron opened the meeting with prayer from Pastor Marcy Miller from Samuel Lutheran 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 Ken Johnson, Eric Hood, Willie German, Dan Rinsema-Sybenga, and Byron Turnquist, City Manager Franklin Peterson, City Attorney John Schrier, and City Clerk Ann Marie Cummings. HONORS AND AWARDS: A. West Michigan Trails & Greenways Coalition. Mayor Gawron presented Kati Santee from the West Michigan Trails & Greenways Coalition a resolution thanking them for the generous donation of $50,000 for a connector project linking the non-motorized Musketawa Trail to the Laketon Trail. 2014-16 CONSENT AGENDA: A. Approval of Minutes. CITY CLERK SUMMARY OF REQUEST: To approve minutes of the February 7th Goal Setting Meeting, February 10th Commission Worksession Meeting, and the February 11th City Commission Meeting. FINANCIAL IMPACT: None. BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: Approval of the minutes. B. Gaming License Request from the Muskegon Irish American Society. CITY CLERK SUMMARY OF REQUEST: The Muskegon Irish American Society is requesting a 1 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. C. Consideration of Bids for Palmer Reconstruction between McGraft and Southern. ENGINEERING SUMMARY OF REQUEST: Award the reconstruction of Palmer from McGraft to Southern Avenue contract to Jackson Merkey out of Muskegon Township, MI since they were the lowest responsible bidder with a total bid price of $263,753. FINANCIAL IMPACT: The construction cost of $263,753 plus engineering. BUDGET ACTION REQUIRED: None at this time since this project is in the 2013/2014 CIP’s. STAFF RECOMMENDATION: Award the contract to Jackson Merkey. D. 2014 Pavement Marking Program. PUBLIC WORKS SUMMARY OF REQUEST: Staff is requesting permission to enter into a one-year contractual agreement with Michigan Pavement Marking (MPM) of Wyoming, Michigan for centerline painting. This contract bid was awarded by the Muskegon County Road Commission and for local agencies in the Muskegon County Pavement Marking Group to enter into with MPM with each member billed separately by MPM for painting services requested. FINANCIAL IMPACT: Estimated costs for 2014 are $16,000. Approximately $14,794 in 2009, $14,300 in 2010 was spent for centerline painting. Also $20,334 in 2011 was spent for centerline painting/specialty markings with $16,008 in 2012 and $16,999 in 2013 spent for centerline painting, through previous bids/contracts with MCRC and MPM. BUDGET ACTION REQUIRED: None, contractual work has been budgeted for in the Highway Majors budget. STAFF RECOMMENDATION: Approve the request to enter into a one-year contract with Michigan Pavement Markings. E. Management Agreement – Fisherman’s Landing. FINANCE SUMMARY OF REQUEST: Approval of a proposed agreement for management of Fisherman’s Landing for the 2014 season. Staff has met with Fisherman’s Landing representatives on several occasions to work out details of the agreement. Key provisions of the new agreement: Facility to move more towards self-sufficiency and further relieve City 2 of financial obligations; A non-disparagement clause was added; The agreement terminates at the end of the 2014 season, but no later than November 13, 2014. Staff believes Fisherman’s Landing, Inc. is in the best position to manage the facility and continue to oversee its’ operation. FINANCIAL IMPACT: Estimated $10,000 cost savings to City by additional responsibilities being taken on by Fisherman’s Landing manager with the goal of making the facility more self-supporting. BUDGET ACTION REQUIRED: None at this time. STAFF RECOMMENDATION: Approval. F. Fireworks Delegation of Authority Authorization. PUBLIC SAFETY SUMMARY OF REQUEST: The Director of Public Safety requests that the City Commission review and authorize the “Fireworks Delegation of Authority Authorization Pursuant to PA 256”. The Bureau of Fire Services is seeking for departments that are interested in applying for inspection delegation for consumer fireworks sales facilities (CFRS) under Section 19 of 2011 PA 256. The delegation is for one year. The fire department would be responsible to conduct inspections of the permanent and temporary CFRS location within its jurisdiction (City of Muskegon). Entities (MUFD) that elect to have delegation will receive 80% of the application fee paid for the consumer fireworks certificate ($700 for permanent and $420 for temporary). Currently MUFD has two trained “certified fire inspectors” that are qualified to perform this job task. Application will be made upon the acceptance by City Commission. FINANCIAL IMPACT: Positive financial impact as fees are paid to conduct inspections. BUDGET ACTION REQUIRED: N/A. STAFF RECOMMENDATION: Staff recommends reapproving and performing delegation inspections. G. River Barges to Muskegon Port – Letter of Support. PLANNING & ECONOMIC DEVELOPMENT SUMMARY OF REQUEST: Legislation has been introduced to allow river barge traffic to enter the Muskegon Port. Currently, similar river bare traffic has access to the Wisconsin ports, but not West Michigan ports. If river barge traffic is allowed to enter the Muskegon ports, a drastic increase in export and import will be available to the Muskegon area (including the shipment of goods such as 3 aggregate and alternative energy products into Muskegon and the shipment of agricultural goods out of Muskegon). FINANCIAL IMPACT: The future potential for the Muskegon area to benefit from both import and export of goods through river barge traffic could be significant. BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: To approve the letter of support for “Coast Guard Proposed Rulemaking USCG-2013-0954 directed to the Director of Governmental and Public Affairs, US Coast Guard Headquarters and to authorize the Mayor’s signature. H. 2014, 2015 and 2016 Street Sweeping Contract. PUBLIC WORKS SUMMARY OF REQUEST: To award a three-year contract to provide four annual street sweepings to Tri-Us Services, Inc., 78 N. Ball Creek Rd., Kent City, MI 49330. FINANCIAL IMPACT: Cost will be $202,135.50 each year; $606,406.50 over the course of the contract. Excludes special requests charged at $125/hour. BUDGET ACTION REQUIRED: None, monies appropriated in Highway and State Trunkline budgets. STAFF RECOMMENDATION: Approval of this request. I. City – MDOT Agreement for the Reconstruction of Ramp Connecting Apple Avenue (M-46) to Northbound US-31. ENGINEERING SUMMARY OF REQUEST: Approve the contract with MDOT for the reconstruction of the on-ramp from Apple to northbound US-31 and approve the resolution authorizing the Mayor and City Clerk to sign the contract. FINANCIAL IMPACT: The City’s participation is limited to 8.75% of the State’s share as required by ACT 51 which is estimated at $15,650. BUDGET ACTION REQUIRED: None at this time. STAFF RECOMMENDATION: Approve the contract and resolution authorizing the Mayor and Clerk to sign both. J. Watermain Purchase and Installation. PUBLIC WORKS SUMMARY OF REQUEST: Authorize staff to purchase 8 inch watermain pipe and appurtenances from Michigan Pipe & Valve to install a new 8 inch watermain to the Harris development at 1601 Beach Street. The developer will pay for all materials and the City of Muskegon Water Department will install the watermain using our in-house workforce and equipment. FINANCIAL IMPACT: The estimated cost of materials $27,428 (Developer will reimburse). BUDGET ACTION REQUIRED: None. 4 STAFF RECOMMENDATION: Approve watermain material purchase from Michigan Pipe & Valve for the estimated amount of $27,428. N. Resolution to Place an Emergency Moratorium on the Establishment of Medical Marijuana Facilities. CITY CLERK SUMMARY OF REQUEST: To adopt the resolution placing an emergency moratorium on the establishment of medical marijuana facilities for the next 120 days allowing staff to update the current ordinance based on recent court rulings. FINANCIAL IMPACT: None. BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: To authorize the Mayor and Clerk to sign the resolution. O. Appointment to Civil Service Commission. CITY CLERK SUMMARY OF REQUEST: Appoint Pamela Lynk to the Civil Service Commission. FINANCIAL IMPACT: None. BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: Appointment of Pamela Lynk. COMMITTEE RECOMMENDATION: The Community Relations Committee recommended the appointment at their March 10th meeting. Motion by Vice Mayor Spataro, second by Commissioner Hood to approve the Consent Agenda as read with the exception of items K, L and M. ROLL VOTE: Ayes: Gawron, Hood, Spataro, German, Rinsema-Sybenga, Turnquist, and Johnson Nays: None MOTION PASSES 2014-17 ITEMS REMOVED FROM THE CONSENT AGENDA: K. Participation Agreement for Nims Neighborhood Playground. PLANNING & ECONOMIC DEVELOPMENT SUMMARY OF REQUEST: Staff has been working with Nims Neighborhood (“Neighborhood”) and Muskegon Public Schools (“MPS”) to designate a parcel of property on the former Nims School site for a playground for the neighborhood. When the school closed a few years ago, the play equipment was removed. There are no other playgrounds in close proximity to much of the neighborhood. Therefore, MPS has agreed to donate a parcel of property to the City of Muskegon (“City”), who will then enter into an agreement with the Neighborhood to construct and maintain a playground on the property. At this 5 time, it is not absolutely certain where the playground will be located on the property. Therefore, the “Participation Agreement” has been prepared (and approved and signed by MPS), which will allow the Neighborhood to have an assurance of property control for the future playground (needed for grant applications). FINANCIAL IMPACT: None. BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: To approve the “Participation Agreement” and authorize the Vice-Mayor’s signature. Motion by Commissioner Rinsema-Sybenga, second by Vice Mayor Spataro to approve the participation agreement for Nims Neighborhood playground. ROLL VOTE: Ayes: Hood, Spataro, German, Rinsema-Sybenga, Turnquist, Johnson, and Gawron Nays: None MOTION PASSES L. SECOND READING: PILOT Request (Nelson Place) – Ordinance Amendment. PLANNING & ECONOMIC DEVELOPMENT SUMMARY OF REQUEST: Joe Hollander of Hollander Development Corporation (a partner in Nelson Place Limited Dividend Housing Association Limited Partnership), is seeking new financing for Nelson Place. There is currently a Payment in Lieu of Taxes (PILOT) for Nelson Place which was executed on March 26, 1996. Mr. Hollander intends to refinance the existing high-interest loan from MSHDA with a lower interest rate loan from another lender. However, the existing PILOT Ordinance for Nelson Place terminates the exemption upon refinancing. Therefore, an amendment to the current Ordinance is being requested to allow for the continuation of the PILOT after refinancing. Mr. Hollander intends to continue with the present rent restrictions and income limits (with no dislocation of existing tenants). There will be no significant change to the existing PILOT (length of Contract, PILOT payment). In addition, Nelson Neighborhood Improvement Association will be paid back for a portion of their initial investment in the property. The Commission will review and vote on the Ordinance Amendment at the March 10, 2014 Work Session. It is likely that a second reading will be necessary on March 11, 2014. FINANCIAL IMPACT: None. BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: If the City Commission agrees that the continuation of the PILOT is necessary for this property, staff recommends that the Ordinance amendment be approved and the Clerk be authorized to sign the necessary 6 documents. (Voted on with next item). M. PILOT Request (Nelson Place) – Contract Amendment. PLANNING & ECONOMIC DEVELOPMENT SUMMARY OF REQUEST: The PILOT Contract between Nelson Place Limited Dividend Housing Association Limited Partnership (“Nelson Place”) and the City of Muskegon (“City”) was executed on March 26, 1996. Nelson Place is in the process of refinancing their mortgage. To do so, they must have the Contract amended. The length of the PILOT, as well as the PILOT payment, remain the same. FINANCIAL IMPACT: The terms remain the same. BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: To approve the amended Contract and authorize the Mayor and Clerk to sign. Motion by Commissioner Johnson, second by Commissioner German to approve the PILOT request ordinance amendment and the contract amendment for Nelson Place. ROLL VOTE: Ayes: German, Turnquist, Johnson, Gawron, and Hood Nays: None Abstain: Spataro and Rinsema-Sybenga MOTION PASSES 2014-18 PUBLIC HEARINGS: A. Recommendation for Annual Renewal of Liquor Licenses. CITY CLERK SUMMARY OF REQUEST: To adopt a resolution recommending non-renewal of those liquor license establishments who are in violation of Section 50-146 and 50- 147 of the Code of Ordinances for the City of Muskegon. These establishments have been found to be in non-compliance with the City Code of Ordinances and renewal of their liquor licenses should not be recommended by the City Commission. If any of these establishments come into compliance by March 21, 2014, they will be removed from this resolution, and recommendation for their renewal will be forwarded to the Liquor Control Commission. FINANCIAL IMPACT: None. BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: Adoption of the resolution. The Public Hearing opened to hear and consider any comments from the public. No comments were made. 7 Motion by Vice Mayor Spataro, second by Commissioner Hood to close the Public Hearing and adopt the resolution recommending non-renewal of those liquor license establishments who are in violation of Section 50-146 and 50-147 of the Code of Ordinances for the City of Muskegon. ROLL VOTE: Ayes: German, Rinsema-Sybenga, Turnquist, Johnson, Gawron, Hood, and Spataro Nays: None MOTION PASSES 2014-19 UNFINISHED BUSINESS: A. To Forward Case #EN130182 (1780 Jarman) Back to the Housing Board of Appeals for Oversight of the Rehabilitation of the Property. PUBLIC SAFETY SUMMARY OF REQUEST: This is to request that the City Commission consider forwarding case #EN130182 back to the Housing Board of Appeals to monitor progress and repairs to the structure located at 1780 Jarman Street. Owner, Linda Jones, and/or representatives have been in contact with SAFEbuilt building official/staff to rehabilitate the home. SAFEbuilt Building Official, Krik Briggs, reports that Ms. Jones has applied for applicable building permits and submitted a “rough” timeline which will be considered and presented to the HBA upon approval. FINANCIAL IMPACT: CDBG Funds. BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: To forward case #EN130182 back to the HBA for oversight (repairs, rehabilitation and timeline monitoring), and not to approve demolition of the property known as 1780 Jarman Street. Motion by Commissioner Johnson, second by Commissioner German to forward case #EN130182 back to the HBA for oversight, and not to approve demolition of the property known as 1780 Jarman Street. ROLL VOTE: Ayes: Rinsema-Sybenga, Turnquist, Johnson, Gawron, Hood, Spataro, and German Nays: None MOTION PASSES 2014-20 NEW BUSINESS: A. Approval of Sale of City-Owned Home at 218 Catherine. COMMUNITY & NEIGHBORHOOD SERVICES SUMMARY OF REQUEST: To approve the resolution and instruct the Community & Neighborhood Services Department to complete the sales transaction 8 between Brooks Jr. and Quentina Dawson for the totally rehabilitated home at 218 Catherine, which is part of the City’s HOME Infill program through the U. S. Department of Housing and Urban Development. Mr. and Mrs. Dawson’s purchase price is $49,900. FINANCIAL IMPACT: The proceeds from the sale will be used to continue the rehabilitation of vacant houses through the HOME program to sustain our current investments to stabilize and revitalize neighborhoods. BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: To approve the resolution and direct the CNS staff to complete the sale. Motion by Commissioner German, second by Vice Mayor Spataro to approve the resolution and direct the CNS staff to complete the sale of 218 Catherine. ROLL VOTE: Ayes: Turnquist, Johnson, Gawron, Hood, Spataro, German, and Rinsema-Sybenga Nays: None MOTION PASSES B. Approval of Sale of City-Owned Home at 553 Octavius. COMMUNITY & NEIGHBORHOOD SERVICES SUMMARY OF REQUEST: To approve the resolution and instruct the Community & Neighborhood Services Department to complete the sales transaction between Mr. Robert G. Parker for the totally rehabilitated home at 553 Octavius Street, which is part of the City’s HOME Infill program through the U. S. Department of Housing and Urban Development. Mr. Parker’s purchase price is $63,000. FINANCIAL IMPACT: The proceeds from the sale will be used to continue the rehabilitation of vacant houses through the HOME program to sustain our current investments to stabilize and revitalize neighborhoods. BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: To approve the resolution and direct the CNS staff to complete the sale. Motion by Commissioner Rinsema-Sybenga, second by Commissioner Hood to approve the resolution and direct the CNS staff to complete the sale of 553 Octavius. ROLL VOTE: Ayes: Johnson, Gawron, Hood, Spataro, German, Rinsema- Sybenga, and Turnquist Nays: None MOTION PASSES C. Approval of Sale of City-Owned Home at 1733 Manz. COMMUNITY & 9 NEIGHBORHOOD SERVICES SUMMARY OF REQUEST: To approve the resolution and instruct the Community & Neighborhood Services Department to complete the sales transaction between Aryana Stewart for the newly rehabbed home at 1733 Manz Street, which is part of the City’s Neighborhood Stabilization Program (NSP) through the Michigan State Housing Development Authority Office of Community Development. Ms. Stewart’s purchase price is $40,000. FINANCIAL IMPACT: The proceeds from the sale will be used to pay off remaining NSP debt. BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: To approve the resolution and direct the CNS staff to complete the sale. Motion by Vice Mayor Spataro, second by Commissioner German to approve the resolution and direct the CNS staff to complete the sale of 1733 Manz Street. ROLL VOTE: Ayes: Gawron, Hood, Spataro, German, Rinsema-Sybenga, Turnquist, and Johnson Nays: None MOTION PASSES D. Sidewalk Snow Removal Ordinance Amendment – Revised. PLANNING & ECONOMIC DEVELOPMENT SUMMARY OF REQUEST: The City of Muskegon currently has a snow removal ordinance for sidewalks. However, it is not practical to administer. Therefore, an amendment to the Ordinance is recommended to allow for actual enforcement of the Ordinance. The major changes are to require snow to be removed from sidewalks within 24 hours after the cessation of any storm depositing snow on the sidewalk, and to allow for employees other than police officers, authorized by the City Manager, to enforce the provisions of the Ordinance. In addition, since the February 11 Commission meeting, the draft ordinance has been amended to read, “within twenty-four (24) hours after the cessation of any storm depositing snow on the sidewalk abutting the property or as soon as practical, clear the snow from the sidewalk”. This allows for discretion, depending on the weather conditions. FINANCIAL IMPACT: None. BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: To approve the Ordinance Amendment for “Removal of Snow and Ice from Sidewalks” and authorize the Clerk’s signature. Motion by Commissioner German, second by Commissioner Hood to approve the ordinance amendment for “Removal of Snow and Ice from Sidewalks” and 10 authorize the Clerk’s signature. ROLL VOTE: Ayes: Hood, Spataro, German, Rinsema-Sybenga, Turnquist, Johnson, and Gawron Nays: None MOTION PASSES PUBLIC PARTICIPATION: Public comments were received. ADJOURNMENT: The City Commission Meeting adjourned at 6:15 pm. Respectfully submitted, Ann Marie Cummings, MMC City Clerk 11 AGENDA ITEM NO._____________ CITY COMMISSION MEETING ___________________ TO: Honorable Mayor and City Commission FROM: Department of Public Works DATE: March 25, 2014 SUBJECT: 2014 Dozer Rental for Beach Leveling SUMMARY OF REQUEST: Staff is requesting permission to enter into a rental agreement with Contractors Rental Corporation, out of Grand Rapids, MI for a John Deere 850K WLT Cab Dozer for leveling sand at Pere Marquette Beach. FINANCIAL IMPACT: Estimated cost for the 2014 Dozer rental is $8,245 (which includes $450 for delivery and pickup). BUDGET ACTION REQUIRED: None STAFF RECOMMENDATION: Approve request. COMMITTEE RECOMMENDATION: City of Muskegon Memo To: Mohammed Al-Shatel From: Highway Department Date: 3/10/14 Re: Dozer Rental for Annual Beach Leveling at PM Park Below are 3 bids for the dozer rental, for a maximum of 180 hours usage per month, for the Highway Departments’ beach leveling project for 2014. Michigan CAT submitted a bid proposal of $9,180 per month plus $800 for delivery and pickup for a total of $9,980. Southeastern Equipment Co., Inc. submitted a proposal of $9,500 per month including delivery and pickup. Contractors Rental Corporation submitted a proposal of $7,795 per month plus $450 for delivery and pickup, for a total of $8,245. Based on the availability of the dozer and the tabulated bids above, Contractors Rental Corporation, is the lowest bidder based upon the size of the equipment utilized and its ability to get the project completed within the allotted rental time of 180 hours. Staff is requesting permission to rent the John Deere 850K WLT dozer for leveling the beach from Contractors Rental Corporation for 2014. 1 Date: 3/25/14 To: Honorable Mayor and City Commissioners From: DPW/Equipment RE: Pothole Wagon SUMMARY OF REQUEST: Authorize staff to purchase one (1) 4 ton asphalt pothole wagon from Falcon Road Maintenance equipment, the Mi Deal, State Contract holder. This machine will replace the 2000 model that we had to retire from service due to safety issues. FINANCIAL IMPACT: $19,407.00 on State Contract. BUDGET ACTION REQUIRED: This purchase will be added to the 3rd quarter budget reforecast. STAFF RECOMMENDATION: Authorize staff to purchase one (1) 4 ton Falcon Pothole Wagon. C:\Documents and Settings\Potter\Local Settings\Temporary Internet Files\OLK8\Pothole Wagon.doc MiDEAL PRICE QUOTE No. OZ030314-894 120 Waldo Ave. Requested By: Muskegon Public Works Department Midland, MI 48642 1350 Keating Avenue Phone: (989) 495 – 9332 Muskegon, MI 49442 US Fax: (989) 495 – 9342 Ship To: Same Quote Date Quote Good Through Freight Terms Requested By Payment Terms 03/03/14 04/12/14 FOB Midland, MI Joe Buckingham Net 30 Days Qty Item No Description Price 1 MI10259 4-Ton Falcon Asphalt Recycler & Hot Box Trailer $19,407 12-Volt Battery Triple Wall Construction and Fully Insulated Automatic Temperature Control Tandem Axle Trailer Frame Tires - 8 x 14.5 Electric Brakes w/ Safety Breakaway Single Diesel Burner 6-Pin Round Trailer Plug Paint Color Falcon Orange Conspicuity Tape Included Options: LED Lighting Upgrade-Two Red Stop/Tail/Turn Lights Per Side Solvent Sprayer Bracket Rear-Mounted Analog 50/550 Thermometer Dump Box (12-Volt Electric Over Hydraulic) Timer – 24-Hour Battery Charger Package Tool Holder - 5-Positions Reflects Michigan MiDEAL Contract #071B1300079 Operator, Parts and Service Manual Included One-Year Warranty Included Freight to Muskegon, MI Included Training Included Quote Continued on Page 2 1 of 2 Picture of 4-Ton Diesel Dump Box Trailer Standards For The Falcon Asphalt Recycler & Hot Box: -Ability to recycle asphalt chunks and millings. Visit Falcon's website at www.falconrme.com for a recycling video. -A patented heat management system with a burner box combustion chamber constructed of a one-piece, seamless, vacuum formed ceramic fiber that is 1" thick with an insulation rating for temperatures in excess of 2,000 degrees Fahrenheit (required for recycling asphalt millings). Cross-section of seamless combustion chamber provided. -Combustion efficiency rating exceeds 90% when tested at 105,000 BTU. Independent, 3rd party test results, on a qualified diesel burner testing facility's letterhead, are provided. 2 of 2 Commission Meeting Date: March 25, 2014 Date: March 19, 2014 To: Honorable Mayor and City Commissioners From: Planning & Economic Development RE: Rezoning request for the properties located at 2306 & 2320 S Getty St. SUMMARY OF REQUEST: Request to rezone the properties at 2306 & 23020 S Getty St from B-4, General Business District to I-2,General Industrial District by Port City Architectural Signage. The company, which is located adjacent to these properties, would like to expand their business and utilize the existing buildings on site. FINANCIAL IMPACT: None BUDGET ACTION REQUIRED: None STAFF RECOMMENDATION: Staff recommends approval of the rezoning. COMMITTEE RECOMMENDATION: The Planning Commission recommended approval of the request at their March 13 meeting. 1 Planning Commission Excerpt: STAFF OBSERVATIONS 1. Port City Architectural Signage operates their business at 2350 S Getty St. They manufacture signs at this location, which is zoned I-2, General Industrial, and they also own the properties to the north at 2306 and 2320 S Getty St. Half of the parcel at 2320 is zoned I-2 and half of it is zoned B-4, General Business. The parcel at 2306 S Getty St is zoned B-4. They would like to have all of these properties be zoned I-2 so that they can expand their operations. 2. Both parcels measure roughly 0.4 acres with about 100 feet of road frontage each. Both parcels contain a building. A lighting fixture business was located at 2320 and 3. There appears to be enough parking at this location for industrial uses. However, the applicant will still be required to apply for a site plan review on this property (staff review) because it is a change of use. 4. The properties to the north are zoned for business and residential. The properties to the east are industrial. The properties to the west located in Muskegon Heights and are mostly zoned for business. This area is on the border of the Medendorp Industrial Park. 5. Notification was sent to property owners within 300 feet of these properties and at the time of this writing staff had not received any comments. Port City Architectural Signage at 2350 S Getty with the building at 2320 S Getty to the left. 2 2320 S Getty (former lighting business) and 2306 Getty to the left. 2306 Getty (former Laundromat) and 2320 Getty to the right. 3 Zoning Map Aerial Map 4 CITY OF MUSKEGON MUSKEGON COUNTY, MICHIGAN ORDINANCE NO. An ordinance to amend the zoning map of the City to provide for a zone change for 2306 & 2320 S Getty St from B-4, General Business District to I-2, General Industrial District. THE CITY COMMISSION OF THE CITY OF MUSKEGON HEREBY ORDAINS: The zoning map of the City of Muskegon is hereby amended to change the zoning for the following described properties from B-4, General Business District to I-2, General Industrial District. CITY OF MUSKEGON COM @ SW COR SEC 33 T10N R16W TH N 00D 46M 24S E ALG W LN SD SEC 1873.90 FT TO POB TH S 89D 57M 31S E 189.98 FT TH N 01D 01M 20S E 128.54 FT TO CL BARNEY AVE TH N 89D 59M 14S W 190.53 FT ALG SD CL TO W LN SD SEC 33 TH S 00D 46M 24S W ALG SD W LN 128.35 FT TO POB EXC W 33 FT FOR ST CITY OF MUSKEGON SEC 33 T10N R16W COM AT SW COR SD SEC TH N 00D 46M 24S E ALG W LN SD SEC 1773.90 FT TO POB TH S 89D 57M 31S E 189.54 FT TH N 01D 01M 20S E 100 TH 89D 57M 31S W 189.98 FT TO W LN SD SEC TH S 00D 46M 24S W 190.53 FT ALG SD W LN 100 FT TO POB EX ANY PORTION USED OR TAKEN FOR RD PURPOSES This ordinance adopted: Ayes: Nayes: Adoption Date: Effective Date: First Reading: Second Reading: CITY OF MUSKEGON By: __________________________ Ann Cummings, MMC City Clerk 5 CERTIFICATE (Rezoning of 2306 & 2320 S Getty St) The undersigned, being the duly qualified clerk of the City of Muskegon, Muskegon County, Michigan, does hereby certify that the foregoing is a true and complete copy of an ordinance adopted by the City Commission of the City of Muskegon, at a regular meeting of the City Commission on the 25th day of March, 2014, at which meeting a quorum was present and remained throughout, and that the original of said ordinance is on file in the records of the City of Muskegon. I further certify that the meeting was conducted and public notice was given pursuant to and in full compliance with the Michigan Zoning Enabling Act, Public Acts of Michigan No. 33 of 2008, and that minutes were kept and will be or have been made available as required thereby. DATED: ___________________, 2014. ________________________________ Ann Cummings, MMC Clerk, City of Muskegon Publish: Notice of Adoption to be published once within ten (10) days of final adoption. 6 CITY OF MUSKEGON NOTICE OF ADOPTION Please take notice that on March 25, 2014, the City Commission of the City of Muskegon adopted an ordinance amending the zoning map to provide for the change of zoning for the properties from B-4, General Business District to I-2, General Industrial District. CITY OF MUSKEGON COM @ SW COR SEC 33 T10N R16W TH N 00D 46M 24S E ALG W LN SD SEC 1873.90 FT TO POB TH S 89D 57M 31S E 189.98 FT TH N 01D 01M 20S E 128.54 FT TO CL BARNEY AVE TH N 89D 59M 14S W 190.53 FT ALG SD CL TO W LN SD SEC 33 TH S 00D 46M 24S W ALG SD W LN 128.35 FT TO POB EXC W 33 FT FOR ST CITY OF MUSKEGON SEC 33 T10N R16W COM AT SW COR SD SEC TH N 00D 46M 24S E ALG W LN SD SEC 1773.90 FT TO POB TH S 89D 57M 31S E 189.54 FT TH N 01D 01M 20S E 100 TH 89D 57M 31S W 189.98 FT TO W LN SD SEC TH S 00D 46M 24S W 190.53 FT ALG SD W LN 100 FT TO POB EX ANY PORTION USED OR TAKEN FOR RD PURPOSES Copies of the ordinance may be viewed and purchased at reasonable cost at the Office of the City Clerk in the City Hall, 933 Terrace Street, Muskegon, Michigan, during regular business hours. This ordinance amendment is effective ten days from the date of this publication. Published ____________________, 2014 CITY OF MUSKEGON By ___________________________ Ann Cummings, MMC City Clerk --------------------------------------------------------------------------------------------------------------------- PUBLISH ONCE WITHIN TEN (10) DAYS OF FINAL PASSAGE. Account No. 101-80400-5354 7 Date: March 18th, 2014 To: Honorable Mayor & City Commissioners From: Director of Public Safety Jeffrey Lewis RE: MUFD Fire Apparatus & Equipment Request (2014 Spartan Metro-Star Custom Chassis Fire Engine) SUMMARY OF REQUEST: The Director of Public Safety requests that the Commission authorize the amount of; $545,678.00 to purchase a 2014 Spartan Metro-Star Custom Chassis Fire Engine with related tools/equipment. This truck purchase request is to replace the aging/unserviceable Reserve Engine that is now in-service and supports our fleet of frontline Fire Engines. Our current reserve engines are 20 years old, mechanical problems, deteriorating suspension, and visible rust plagues both reserve fire engines. This selection and request to purchase was achieved by submitting apparatus specification(s) to HGAC (Houston-Galveston Area Council), which procures competitive pricing for governmental units (saving the city $2,000.00, plus staff hours to research). In addition to the new fire apparatus the purchase is complete with selected diagnostic tools & maintenance equipment to service this new truck and the three (3) other Spartan Engines that now provide fire services to our city (see related attachments for detailed information). FINANCIAL IMPACT: N/A – Budgeted BUDGET ACTION REQUIRED: (1) The requested new Fire Apparatus was part of the City’s fiscal year 2013/14 budget cycle ($550,000.00) to enhance front line engine response. (2) Funds required to purchase are; $513,000.00, from MMRA (Michigan Municipal Risk Association) dividend payment, and the remaining funds of $37,000.00 from the fire equipment replacement reserves. (3) Selected Payment Option; Discount Payment Program, (1) Pay 100 % at signing – potential savings $8,639.00. In addition to the payment option, purchase the 100 % performance bond, cost $2,311.00 to assure quality workmanship & acceptance at time of delivery, save an additional $6,328.00 off the total purchase price. STAFF RECOMMENDATION: Staff recommends approval of this purchase with a final cost of; $539,350.00 Page 1 of 1 Panel Visual Layout 5020-001 Panel Layout PUMP INTAKE PUMP PRESSURE INCONTROL CAB BODY PUMP COMPT GENERATOR QUARTZ QUARTZ HEATER CORD AIRHORN REEL DFJL PFJL ENGINE COOLER DRIVER SIDE INTAKE PUMP SHIFT MANUAL OVERRIDE DRAIN/BLEEDER DRAIN/BLEEDER DRAIN/BLEEDER DRAIN/BLEEDER DRAIN/BLEEDER DRAIN/BLEEDER THIS DRAWING IS A CLOSE APPROXIMATION OF YOUR FIRE APPARATUS. IN ALL CASES WHERE THE DRAWING AND THE WRITTEN SPECIFICATION DIFFER, THE SPECIFICATION SHALL PREVAIL. PLEASE WORK WITH YOUR DEALER TO ASSURE THAT THE WRITTEN SPECIFICATION REPRESENTS WHAT YOU WANT IN YOUR FINISHED PRODUCT. SPARTAN ERV BUILDS TO THE WRITTEN SPECIFICATION, NOT THE DRAWING TO ASSURE THAT YOUR NEEDS ARE MET. CORD REEL AIRHORN GENERATOR EMERGENCY SHUTDOWN OFFICER SIDE INTAKE DRAIN/BLEEDER DRAIN/BLEEDER DRAIN/BLEEDER DRAIN/BLEEDER DRAIN/BLEEDER DRAIN/BLEEDER CONTRACT PRICING WORKSHEET Contract Date No.: FS12-13 Prepared: 12/31/2013 For MOTOR VEHICLES only This Form must be prepared by Contractor and given to End User. The H-GAC administrative fee shall be shown in Section F. End User issues PO to Contractor, and MUST also fax a copy of PO, together with completed Pricing Worksheet, to H- GAC @ 713-993-4548. Please type or print legibly. Buying City of Muskegon Fire Department Contractor: Crimson Fire DBA Spartan ERV Agency: Contact Prepared City Buyer, Beth Lewis Jessica Garry Person: By: Phone: 231-724-6917 Phone: 605-582-4022 Fax: 231-724-6768 Fax: 605-582-4001 Email: beth.lewis@shorelinecity.com Email: jessica.garry@spartanerv.com Product Spartan 4-Door Custom Full-Tilt Aluminum Cab, Pumper, Stainless Steel Body, Single Axle, 1250 DC04 Description: Code: GPM Pump, Mid-Mounted A. Product Item Base Unit Price Per Contractor's H-GAC Contract: $ 342,547.00 B. Published Options - Itemize below - Attach additional sheet(s) if necessary - Include Option Code in description if applicable. (Note: Published Options are options which were submitted and priced in Contractor's bid.) Description Cost Description Cost 1 - Upgrade cab to Metro Star $ 26,915.00 11 - Change cab paint to two-tone $ 2,150.00 19 - Cab EMS compartment with exterior access (2) $ 10,550.00 23 - Change cab electrical system to multiplexed w/ 1 screen $ 6,400.00 24 - Add a additional multiplex display $ 2,400.00 27 - Upgrade engine to 400 hosepower (small block) $ 9,500.00 33 - Add engine brake in addition to VG turbo $ 3,250.00 50 - Upgrade front tires, wheels, and suspension to 20,000# $ 4,200.00 67 - Change front wheels to aluminum $ 950.00 68 - Change rear wheels to aluminum $ 2,400.00 77 - Add ESC to the brake system on a single rear axle $ 3,900.00 79 - Upgrade to disc brakes $ 1,100.00 91 - Upgrade front bumper length to be 24" $ 900.00 93 - Upgrade bumper to severe duty $ 2,100.00 98 - Add Q2 siren $ 2,800.00 104 - Add 3" tow eyes to front bumper $ 1,200.00 109 - Add front underseat heaters $ 970.00 112 - Add cab recirculation fans $ 500.00 121 - Add aluminum overlay w/ Sparliner over cab rear wall $ 1,750.00 125 - Upgrade to xtreme duty int. center dash w/ Sparliner $ 2,500.00 129 - Change interior metal surfaces to Sparliner $ 4,900.00 151 - Change exterior door handles to chrome $ 875.00 155 - Upgrade to bus style remote mirrors $ 1,750.00 159 - Add 10" high side cab full length door trim $ 575.00 187 - Add 12 volt eyebrow scene light $ 2,350.00 189 - Add 12 volt side cab recessed scene lights $ 4,600.00 213 - Add interior cab door warning lights $ 900.00 217 - Add single rear view camera system $ 1,475.00 351 - Upgrade to manual operated master intake valves (2) $ 11,800.00 377 - Add 2.5" hose bed preconnect $ 2,200.00 380 - Add front bumper discharge (2) $ 7,000.00 384 - Add remote controlled electronic deck gun package $ 16,500.00 453 - Change wheel well area to be single axle smart storage $ 9,500.00 495 - Change compartment lighting to LED $ 5,100.00 510 - Add 10 kW hydraulic generator w/ PTO, breaker box $ 24,000.00 519 - Electric cord reel with cable (2) $ 5,950.00 523 - Add 120-volt generator & shoreline power outlet (3) $ 2,925.00 527 - Add body 120 volt side mounted scene light (4) $ 6,200.00 531 - Body exterior 12 volt LED scene lights (2) $ 4,400.00 Subtotal B: $ 199,435.00 C. Unpublished Options - Itemize below / attach additional sheet(s) if necessary. (Note: Unpublished options are items which were not submitted and priced in Contractor's bid.) Description Cost Description Cost Change pump to Hale 1500gpm pump $ 1,696.00 Subtotal C: $ 1,696.00 Check: Total cost of Unpublished Options (C) cannot exceed 25% of the total of the Base Unit For this transaction the percentage is: 0% Price plus Published Options (A+B). D. Total Cost Before Any Applicable Trade-In / Other Allowances / Discounts (A+B+C) 543678 Quantity Ordered: 1 X Subtotal of A + B + C + D: $ 543,678.00 = Subtotal D: $ 543,678.00 E. H-GAC Fee Calculation (From Current Fee Tables) Subtotal E: $ 2,000.00 F. Trade-Ins / Other Allowances / Special Discounts / Freight / Installation Description Cost Description Cost Subtotal F: $ - Delivery Date: 270-330 Days ARO G. Total Purchase Price (D+E+F): $ 545,678.00 Commission Meeting Date: March 25, 2014 Date: March 19, 2014 To: Honorable Mayor & City Commission From: Planning & Economic Development Department RE: Heritage Square Development LLC- Loan from City SUMMARY OF REQUEST: The Heritage Square Development project began several years, ago, with the construction of four townhouses. However, the project stalled with the recent Recession. In an effort to jump-start the project, City staff has been working with owner, Gary Post, on financing options. An agreement has been reached to loan Mr. Post $500,000 from the City’s “economic development fund” for the construction of two townhouses (just to the West of the existing four units). Mr. Post has signed a letter (see attached) agreeing to the loan, construction and repayment. In addition, a HOME loan is being considered for one of four new condo units that will be built on the corner of Clay and Second, over 4 commercial units. FINANCIAL IMPACT: The City will loan $500,000 to Mr. Post to complete two townhouses. The funds must be expended by December 2014. BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: To authorize staff and the City Attorney to proceed with the necessary documents to complete the loan transaction with Mr. Post for the construction of two townhouses at Heritage Square (final approval of documents by City Commission); as well as to complete the documents and seek approval (through the CDC and City Commission) for use of HOME funds for one condo unit (total of four to be built) to be built over the commercial unit at the corner of Clay and Second. In addition, Mr. Post will be required to complete the sidewalk in front of his Heritage Square properties. Alley Commercial Units with Apartments Above Model #3 - 2,160 s.f. 926 Second Unit 9 Model #2 - 1,520 s.f. 867 First Unit 16 Units Built, Sold & Occupied Residential Units are numbered 1-20 930 Second Commercial Units are numbered 1C-8C 871 First Unit 8 Unit 15 Unit 13 Unit 20 873 First 934 Second 875 First - Up 936 Second - Up Unit 8C Unit 4C Unit 12 Unit 19 938 Second 877 First Unit 10 Unit 2 Unit 1 Unit 17 940 Second - Up Unit 3C Unit 11 Unit 14 Unit 18 879 First - Up Unit 6 Unit 7C Unit 7 Unit 5 Unit 3 Unit 1C Unit 4 Unit 5C Unit 2C Unit 6C 296 W. Clay 292 W. Clay 288 W. Clay 284 W. Clay 280 W. Clay 276 W. Clay 272 W. Clay 268 W. Clay 264 W. Clay 260 W. Clay 256 W. Clay 252 W. Clay 298 W. Clay - Up 294 W. Clay - Up 254 W. Clay - Up 250 W. Clay - Up Contact: Mary Jamieson: mkjamieson@aol.com 231-744-6219 Gary Post gpost@portcitycds.com 231-578-2033 Units 16-21 of the Downtown Muskegon Development Center No.1, according to the Master Deed dated May 31, 2006, as amended, and as designated as Muskegon County Condominium Subdivision Plan No. 160. Unit 1 ........... 272 W. Clay Unit 2 ........... 276 W. Clay Unit 3 ........... 268 W. Clay Unit 4 ........... 264 W. Clay Unit 5 ........... 280 W. Clay Unit 6 ........... 284 W. Clay Unit 7 ........... 288 W. Clay Unit 8 ........... 930 Second Street Unit 9 ........... 926 Second Street Unit 10 ........... 294 W. Clay Unit 11 ........... 298 W. Clay Unit 12 ........... 940 Second Street Unit 13 ........... 936 Second Street Unit 14 ........... 260 W. Clay Unit 15 ........... 871 First Street Unit 16 ........... 867 First Street Unit 17 ........... 254 W. Clay Unit 18 ........... 250 W. Clay Unit 19 ........... 879 First Street Unit 20 ........... 875 First Street Unit 1C ........... 292 W. Clay Unit 2C ........... 296 W. Clay Unit 3C ........... 938 Second Street Unit 4C ........... 934 Second Street Unit 5C ........... 256 W. Clay Unit 6C ........... 252 W. Clay Unit 7C ........... 877 First Street Unit 8C ........... 873 First Street Commission Meeting Date: March 25, 2014 Date: March 19, 2014 To: Honorable Mayor and City Commissioners From: Planning & Economic Development RE: Public Hearing – Issuance of a Commercial Rehabilitation Certificate – 500 W Western Ave. SUMMARY OF REQUEST: Pursuant to Public Act 210 of 2005, as amended, 500 W Western LLC has requested the issuance of a Commercial Rehabilitation Certificate. The City Commission approved the creation of the Commercial Rehabilitation District on August 27, 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 $385,000 in the building and will create up to 60 jobs, 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 3/19/2014 Resolution No. _______ MUSKEGON CITY COMMISSION RESOLUTION APPROVING APPLICATION FOR ISSUANCE OF A COMMERCIAL REHABILITATION CERTIFICATE 500 W Western, LLC WHEREAS, pursuant to P.A. 210 of 2005 as amended, after duly noticed public hearing held on August 27, 2013, this Commission by resolution established a Commercial Rehabilitation District as requested by 500 W Western, LLC for the building at 500 W Western Ave, Muskegon, Michigan 49441; and WHEREAS, 500 W Western, LLC has requested in writing for the City to establish a Commercial Rehabilitation District at 500 W Western Ave in a letter dated July 26, 2013; 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, 500 W Western, LLC is not delinquent on 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, 500 W Western, 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 March 25, 2015; 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 March 25, 2014 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: 3/19/14 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 500 W Western, 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 COM AT SW COR LOT 1 BLK 567 TH N 48 DEG 29 MIN E AL NLY LN WESTERN AVE 59 FT 3 1/2 IN FOR POB TH N 41 DEG 27 MIN W 31 FT 8 IN TH S 48 DEG 29 MIN W 3 FT 2 IN TH N 41 DEG 27 MIN W 42 FT 4 IN TH N 48 DEG 29 MIN E 3 FT 2 IN TH N 41 DEG 27 MIN W 68 FT 0 IN TH N 48 DEG 29 MIN E 65 FT 7 IN TH S 41 DEG 27 MIN E 142 FT TO NLY LN WESTERN AVE TH S 48 DEG 29 MIN W 65 FT 7 IN TO BEG BLK 567 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, 2024. Adopted this 25th Day of March, 2014. Ayes: Nays: Absent: BY: __________________________________ Stephen J. 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 March 25, 2014. ______________________________ Ann Cummings Clerk 3/20/14 Commission Meeting Date: March 25, 2014 Date: March 19, 2014 To: Honorable Mayor & City Commission From: Community and Neighborhood Services Department RE: Approval of Sale of City-owned home at 1500 Leahy SUMMARY OF REQUEST: To approve the attached resolution and instruct the Community and Neighborhood Services department to complete the sales transaction between Nakkia Grissom, for the totally rehabilitated home at 1500 Leahy, which is part of the City’s Neighborhood Stabilization Program (NSP) through the Michigan State Housing Development Authority Office of Community Development. Ms. Grissom’s purchase price for the home is $70,000. FINANCIAL IMPACT: The proceeds from the sale will be used to continue the rehabilitation of vacant houses through the HOME program to sustain our current investments to stabilize and revitalize neighborhoods. BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: To approve the resolution and direct the CNS staff to complete the sale. COMMITTEE RECOMMENDATION: None. MUSKEGON CITY COMMISSION RESOLUTION TO APPROVE THE PURCHASE OF CURRENTLY CITY-OWNED PROPERTY AT 1500 LEAHY WHEREAS, the City of Muskegon is dedicated to the redevelopment of its neighborhoods and; WHEREAS, the City of Muskegon is dedicated to promoting high quality affordable single-family housing in the community and; WHEREAS, the City of Muskegon is dedicated to promoting homeownership throughout its neighborhoods; NOW THEREFORE, BE IT RESOLVED that the City Commission hereby approves the sale of 1500 Leahy to Nakkia Grissom. Ms. Grissom will purchase the house as an owner-occupied structure. Adopted this 25th day of March, 2014. Ayes: Nays: By ______________________________ Stephen J. Gawron, Mayor By ______________________________ Ann Marie Cummings, MMC City Clerk
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