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CITY OF MUSKEGON
CITY COMMISSION MEETING
SEPTEMBER 8, 2015
CITY COMMISSION CHAMBERS @ 5:30 P.M.
AGENDA
□ CALL TO ORDER:
□ PRAYER:
□ PLEDGE OF ALLEGIANCE:
□ ROLL CALL:
□ HONORS AND AWARDS:
□ INTRODUCTIONS/PRESENTATION:
A. Presentation of 2015 Beautification Awards
□ CITY MANAGER’S REPORT:
□ CONSENT AGENDA:
A. Approval of Minutes City Clerk
B. Approval of the Use & Maintenance of City Owned Property at 58 E.
Grand Avenue Planning & Economic Development
□ PUBLIC HEARINGS:
A. Request to Conduct a Public Hearing of the Community &
Neighborhood Services Department Consolidated Annual Performance
Evaluation Report (CAPER 2014) Community & Neighborhood Services
□ COMMUNICATIONS:
□ UNFINISHED BUSINESS:
□ NEW BUSINESS:
A. Presentation by General Capital Group Planning & Economic
Development
B. West Michigan Lake Hawks – City Support City Manager
C. LC Walker Arena City Manager
□ 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 MEISCH, 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 Meeting
Date: September 2, 2015
There are a number of items on the agenda that I thought you could use a little background on
as you prepare for our meeting.
1. We have a presentation of 2015 Beautification Awards!
2. Under the consent agenda, we are asking the Commission to approve:
a. Last meeting’s minutes.
b. Approval of an agreement to use and maintain a city owned property at 58 E Grand
Avenue. This is for a Community Garden.
c. Approval of partnership with the West Michigan Lake Hawks. We are recommending
that the city, in conjunction with its efforts to create/sustain opportunities for youth,
again partner with the Lake Hawks basketball team. This year, we are asking that the
commission approve the purchase of 50 tickets ($10 each) to each home game
hosted at Muskegon High School. Additionally, we are asking that the commission
approve up to $1,500 toward game uniforms, practice uniforms, and warm-ups that
will display the Watch Muskegon logo. Finally, we are asking that the Commission
authorize the City to hire DSE to record and broadcast the home games played at
Muskegon High School at a cost not to exceed $200 per game. We’re looking for
additional sponsors to help with the uniforms and the broadcasting costs, so our
costs could be reduced. At this point, the not to exceed amount would be $7,100.
d. Authorization to hire Tim Taylor as the Executive Director of the LC Walker Arena.
Tim has been working for the past month, but we are having a harder time than
expected in determining the best way to employ him – via a staffing company, in-
house, or via a contract. In the meantime, he’s been working in good faith. The plan
is to offer Tim a base salary of $75,000.
2. Public Hearings:
3. Under New Business:
a. We are re-presenting an initial PILOT request for the property at 275 West Clay. This
is the same developer that proposed the project on Clay Ave last year. We asked for
some changes in the drawing as well as some changes in the location. There is now
a commercial component, and we feel that the design is moch more conducive to an
urban setting
If there are questions on any agenda items, please try to let staff know in advance, and we will
be sure to have the appropriate data/research available at the meeting.
Frank Peterson
City Manager
Date: September 8, 2015
To: Honorable Mayor and City Commissioners
From: Ann Marie Meisch, City Clerk
RE: Approval of Minutes
SUMMARY OF REQUEST: To approve minutes of the August 25, 2015
City Commission Meeting.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval of the minutes.
CITY OF MUSKEGON
CITY COMMISSION MEETING
AUGUST 25, 2015
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, August 25, 2015.
Pastor Marcy Miller from Samuel Lutheran Church opened the meeting with
prayer, 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 Turnquist, Johnson, Hood, German, and Rinsema-Sybenga, City
Manager Franklin Peterson, City Attorney John Schrier, and City Clerk Ann
Meisch.
2015-59 CONSENT AGENDA:
A. Approval of Minutes City Clerk
SUMMARY OF REQUEST: To approve minutes of the August 10, 2015 Commission
Worksession meeting and the August 11, 2015 City Commission meeting.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIREDE: None
STAFF RECOMMENDATION: Approval of the minutes.
B. Youth Basketball League and Open Gym Proposal – Muskegon Public
Schools Planning and Economic Development
SUMMARY OF REQUEST: The City of Muskegon has contracted with the
Muskegon Public Schools for the management of the Youth Basketball League
and Open Gym since 2010. The program has been successful and the Schools
would like to manage the program for the 2015-2016 school year. The
commission is requested to approve the proposal and authorize staff to enter
into an agreement with the Schools for over sight 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.
C. Certification of MERS Representatives Finance
SUMMARY OF REQUEST: The MERS plan document provides that “the governing
body for each municipality shall certify the names of two (2) delegates to the
Annual Meeting. One delegate shall be a member who is an officer of the
municipality appointed by the governing body of the municipality. The other
delegate shall be a member who is not an officer of the municipality, elected
by the member officer/employees of the municipality.”
The City’s employee units previously agreed to a rotating system (based on date
of joining MERS to select one official employee representative. This year the
official employee representative attending the MERS conference will be Jan
Labrenz (Customer Service Representative II) from the clerical employees’ union
group.
It is recommended that Derrick Smith (Finance Director) be designated as the
City’s employer delegate.
FINANCIAL IMPACT: Registration for the MERS conference in Grand Rapids is
$175 per person. Additionally, mileage, hotel and related costs will be incurred.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Certification of Derrick Smith and Jan Labrenz to be
the City’s officer and employee delegates at the MERS annual meeting in
Grand Rapids October 8 – 9.
D. Lakeshore Museum Loan Agreement (LaFrance Fire Truck) Public
Safety
SUMMARY OF REQUEST: The Director of Public Safety requests that the City
Commission review and authorize the Lakeshore Museum Center Loan
Agreement relating to the 1923 American LaFrance Fire Truck with attached
equipment. Currently, the LaFrance is on display at the Fire House Museum (Clay
Avenue).
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Staff recommends approval of this loan agreement.
E. Special Liquor License – Michigan Irish Music Festival Public Safety
SUMMARY OF REQUEST: To approve a Special Liquor License for the Michigan
Irish Music Festival to serve spirits on September 17 & 18, 2015 form 5PM – 11PM;
September 19, 2015 from 11AM – 11PM; and on September 20, 2015 from 12PM –
6PM at Heritage Landing for their Michigan Irish Music Festival event. They have
already submitted a Special Event Application. Each serving of spirits must be in
a pre-measured format or beverages packaged through authorized
manufacturer; no “free pour” is allowed. Their event is a four-day music and
cultural festival with food and merchandise vendors, Highland Games, dancing,
music stages and spirts tents.
FINANCIAL IMPACT: Any and all City services required will be reimbursed by
Michigan Irish Music Festival.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: The Director requests approval for Michigan Irish
Music Festival to serve spirits at their authorized event.
G. Sale of Boat Slip (A-08) at Harbour Towne Department of Public Works
SUMMARY OF REQUEST: Authorize staff to negotiate and execute an agreement
with Mr. and Mrs. Hall for the purchase of slip #A – 08 at Harbour Towne Marina.
FINANCIAL IMPACT: None at this time, the Hall’s made an offer of $35,000 to
purchase the slip.
BUDGET ACTION REQUIRED: None at this time.
STAFF RECOMMENDATION: Authorize staff to negotiate and execute a purchase
agreement with the Halls should staff feel the terms are favorable.
H. Public Safety Director Employment Agreement City Manager
REMOVED PER STAFF REQUEST
I. City Manager Employment Agreement City Manager
SUMMARY OF REQUEST: Approval of the Second Amendment to the
Employment Agreement with City Manager Frank Peterson.
FINANCIAL IMPACT:
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To approve the Agreement with Frank Peterson and
authorize the City Clerk and Mayor to sign.
Motion by Commissioner German, second by Commissioner Rinsema-Sybenga
to accept the Consent Agenda as read with the exception of item F.
ROLL VOTE: Ayes: Johnson, Gawron, Hood, Spataro, German, Rinsema-
Sybenga, and Turnquist.
Nays: None
MOTION PASSES
2015-60TEMS REMOVED FROM CONSENT AGENDA
F. MSI Property – “Agreement of Purchase and Sale” (PA) Planning and
Economic Development
SUMMARY OF REQUEST: One of the properties desired for the new market-rate
housing initiative is the MSI owned property across from the Nelson
Neighborhood Park. The property contains nine lots that can be developed for
market-rate housing. The agreed upon purchase price is $45,000.
FINANCIAL IMPACT: The City will pay the purchase price of $45,000, as well as
the Survey, City attorney fees, on-half of any escrow costs, the cost of recording
the Warranty Deed and any other cost of closing not required by the Seller in
the Purchase Agreement. These funds were budgeted as part of the Market-
Rate Housing Initiative Program.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To approve the “Agreement of Purchase and Sale”
and authorize the Mayor’s signature, as well as authorize staff to proceed with
the environmental site assessment and closing on the property, signing the
necessary documents.
Motion by Vice Mayor Spataro, second by Rinsema-Sybenga approve the
“Agreement of Purchase and Sale” and authorize the Mayor’s signature, as well
as authorize staff to proceed with the environmental site assessment and closing
on the property, signing the necessary documents.
ROLL VOTE: Ayes: Gawron, Hood, Spataro, German, Rinsema-Sybenga,
Turnquist, and Johnson.
Nays: None
MOTION PASSES
2015-61 UNFINISHED BUSINESS:
A. Section – 10-351 (F) (3) Registration of Rental Dwellings Ordinance
Amendment Public Safety
SUMMARY OF REQUEST: The Director of Public Safety requests that the City
Commission review and authorize the proposed amendment to Chapter 10
Buildings, Article VI, Division 2, subdivision III “Rental Property”, of the City of
Muskegon.
This ordinance amendment focuses on sub-section (F) (3) which would allow an
“Alternative Escrow Option”; in lieu of dwelling fire insurance. The sub-section
and associated bullet points (1-7) explain the escrow option for landlords who
cannot obtain insurance or opt not to acquire dwelling insurance to repair or
demolish a property after a catastrophic fire event.
FINANCIAL IMPACT: Relieve the City of Muskegon from bearing the expense to
demolish uninsured rental properties that are damaged during a working fire.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Staff recommends approving this ordinance
amendment as written.
Motion by Vice Mayor Spataro, second by Commissioner German to approve
the ordinance amendment as written
ROLL VOTE: Ayes: Hood, Spataro, German, Rinsema-Sybenga, Turnquist,
Johnson, and Gawron.
Nays: None
MOTION PASSES
□ NEW BUSINESS:
A. Request for $9,000 from United Way for Day of Caring 2015 Department
of Public Works
SUMMARY OF REQUEST: Authorize staff to grant United Way’s request for $9,000
to purchase and plant landscaping along Seaway Drive as part of their 2015
Day of Caring.
Earlier this year, the City received over $9,000 from MDOT for a tree cutting
violation along Seaway in the City of Norton Shores and they passed that
money to us to do exactly what is being proposed by United Way.
FINANCIAL IMPACT: Grant United Way’s request for $9,000 from the major street
fund where the MDOT’s money was deposited.
BUDGET ACTION REQUIRED: None at this time.
STAFF RECOMMENDATION: Authorize staff to grant the request by United Way.
Motion by Commissioner Hood, second by Commissioner Johnson to authorize
staff to grant the request by United Way.
ROLL VOTE: Ayes: Spataro, German, Rinsema-Sybenga, Turnquist, Johnson,
Gawron, and Hood.
Nays: None
MOTION PASSES
B. Change Order to add Fourth Street reconstruction to
Muskegon/Webster contract Engineering
SUMMARY OF REQUEST: Authorize staff to negotiate and execute a change
order with Jackson Merkey contractors adding the reconstruction of Fourth
Street between Houston & Muskegon to the Muskegon/Webster contract.
FINANCIAL IMPACT: Estimated cost for construction is $67,000
BUDGET ACTION REQUIRED: None, this project is in the current CIP budget.
STAFF RECOMMENDATION: Authorize staff to negotiate and execute a change
order with Jackson-Merkey contractors to add Fourth Street.
Motion by Commissioner Johnson, second by Commissioner Rinsema-Sybenga
to approve authorize staff to negotiate and execute a change order with
Jackson-Merkey contractors to add Fourth Street.
ROLL VOTE: Ayes: German, Rinsema-Sybenga, Turnquist, Johnson, Gawron,
Hood, and Spataro.
Nays: None
MOTION PASSES
PUBLIC PARTICIPATION: Public comments were received.
ADJOURNMENT: The City Commission Meeting adjourned at 6:19 p.m.
Respectfully submitted,
Ann Marie Meisch, MMC
City Clerk
Commission Meeting Date: September 8, 2015
Date: September 1, 2015
To: Honorable Mayor & City Commission
From: Planning & Economic Development Department
RE: Approval of the Use & Maintenance of City Owned
Property at 58 E Grand Ave
SUMMARY OF REQUEST:
To approve the use and maintenance of the City owned property located at 58 E Grand Ave
for a community garden. The property is unbuildable and the City would retain the right to
sell the property with the community garden members having time to remove the garden
prior to any sales.
FINANCIAL IMPACT:
The City would save on the cost of maintenance of this property.
BUDGET ACTION REQUIRED:
None
STAFF RECOMMENDATION:
To approve the attached resolution and maintenance agreement.
COMMITTEE RECOMMENDATION:
None
Resolution No. _______
MUSKEGON CITY COMMISSION
RESOLUTION APPROVING THE USE AND MAINTENANCE OF THE UNBUILDABLE
LOT AT 58 E GRAND AVE IN THE MCLAUGHLIN NEIGHBORHOOD.
WHEREAS, Bruce Mahn, a citizen of the McLaughin Neighborhood, be allowed to use and
maintain the parcel designated as parcel number 24-205-210-0010-00, located at 58 E Grand
Ave; and
WHEREAS, the City would reserve the right to sell the property and give the members time to
remove the gardens prior to any sales; and
WHEREAS, the maintenance would relieve the City from having to maintain the property and
the maintenance costs while the garden is there; and
NOW THEREFORE BE IT RESOLVED, that parcel number 24-205-275-0009-00, located at 58
E Grand Ave be maintained for a community garden by Bruce Mahn and the members of the
community garden.
CITY OF MUSKEGON REVISED PLAT OF 1903 W 1/2 LOT 9 & W 1/2 OF S 14.25 FT LOT 8
BLK 275
Adopted this _____ day of _____________, 2015
Ayes:
Nays:
Absent
By: _________________________
Stephen J. Gawron
Mayor
Attest: ________________________
Ann Meisch, MMC
City Clerk
CERTIFICATION
I hereby certify that the foregoing constitutes a true and complete copy of a resolution adopted
by the City Commission of the City of Muskegon, County of Muskegon, Michigan at a regular
meeting held on _______________, 2015.
By: ________________________
Ann Meisch, MMC
City Clerk
Maintenance Agreement
This Agreement is made September 8, 2015 (“Effective Date”), by and between the City of
Muskegon (“City”), of 933 Terrace Street, Muskegon, Michigan 49440, and Bruce Mahn, Muskegon,
Michigan.
Background
A. “City” is the owner of the vacant lot located at 58 E Grand Ave (“Property”).
B. The parties wish to enter into an agreement regarding the installation and maintenance of a
garden located at the Property.
C. Individual has agreed to perform the installation and physical maintenance of the garden at
the Property pursuant to the terms set forth in this maintenance agreement.
Therefore, the parties agree as follows:
1. General Agreement. Individual agrees, at the sole cost of the Individual, to perform the
installation and physical maintenance of a garden at the Property.
2. Site Design. Individual shall submit a garden design for the Property, and receive design
approval from the City, prior to installation. City agrees not to unreasonably withhold its approval of the
garden design. Any necessary permits or variances (fencing, lighting, electrical, plumbing, etc.) are the
responsibility of the Individual and not the City and must be obtained prior to performing any work.
3. Maintenance. Individual shall be responsible for the physical installation of the garden and
continuing maintenance of the Property, including i) mowing, trimming, fertilizing, weed control and any
other routine maintenance of the grass, trees, shrubs and plantings at the Property, and ii) trash and litter
removal from the Property.
4. Buildable Lot. City retains the right to sell the property at any time without prior notice to
the Individual. In the event the property is sold, City shall notify the Individual, who shall have 30 days
to remove any plantings and other items installed by the Individual.
5. Term. This maintenance agreement shall continue in effect until terminated by either party.
Upon termination, Individual waives any claim against City for installation or maintenance of any item on
the Property.
6. Insurance. Should the Individual place any items (picnic tables, grills, etc.) that are to
remain on the property for an extended period of time, the Individual must purchase liability insurance
and provide proof of the insurance to the City.
7. Hold Harmless. Individual shall indemnify, defend and save City harmless from and against
any and all claims, actions, damages, liability and expense in connection with the loss of life, personal
injury or damage to property arising from any occurrence in or about the Property or from the occupancy
or use by Individual of the Property or any part thereof or resulting in whole or part from any act or
omission of Individual, its employees, invitees, licensees, contractors or agents. City shall not be liable
for any injury to the person or property of Individual or any other persons on the Property resulting from
the criminal or negligent acts of third persons occurring on or nearby the Property.
[signatures appear on following page]
O:\CLERK\Common\Word\Agenda Items for Next Meeting\09082015\Maintenance Agreement.doc
City of Muskegon, a municipal corporation
By: ______________________________
Name: Stephen J Gawron
Title: Mayor
Date: ___________________________
By________________________________
Name: Ann Meisch, MMC
Title: Clerk
Date: ___________________________
___________________________________
___________________________________
Name: ____________________________
Date: ____________________________
O:\CLERK\Common\Word\Agenda Items for Next Meeting\09082015\Maintenance Agreement.doc
Commission Meeting Date: September 8, 2015
Date: September 01, 2015
To: Honorable Mayor & City Commission
From: Community and Neighborhood Services
Department
RE: Request to Conduct a Public Hearing of the
Community & Neighborhood Services Department
Consolidated Annual Performance Evaluation
Report (CAPER 2014)
SUMMARY OF REQUEST: To conduct a public hearing of the 2014-
2015 CAPER projects funded through CDBG and HOME allocations to
the City of Muskegon Community and Neighborhood Services
department.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To submit the 2014-2015 CAPER,
including any public comments received during the 30 day comment
period ending September 22, 2015.
COMMITTEE RECOMMENDATION: None
City of Muskegon
Community Development Block Grant
Consolidated Annual Performance and Evaluation Report
2014 Grant
2014 Program Year CAPER
SUMMARY
We experienced a typical year except for the 2 additional projects to impact our core neighborhood included in our
downtown development area. For the most part, we managed to complete 8 vinyl siding projects for eligible citizens and
repaired close to 40 (goal) residences. However, the most significant changes, unlike past years, were in demolitions and
board-ups of abandoned structures- they were noticeably increased in number. The city is trying to produce a more
positive image that better represents our strengths and services, so addressing blighted neighborhoods is just one initial
step to reaching this goal.
The Target neighborhood identified was census tracts 6.01 and 6.02, otherwise known as Nelson Neighborhood.
The completion of Merrill Street was a benefit to the neighbors not only aesthetically, but emotionally as well because it
was a visual investment of funds in an otherwise untouched neighborhood. Our concentration in this area offered citizens
and youth an opportunity to work alongside a very active neighborhood association. There have been 3 rental
rehabilitation projects started, 5 housing repair assistance activities and 2 vinyl siding constructions completed.
Assisting citizens with Priority Housing repairs - specifically roofs, which made up over half the repairs provided
when a huge windstorm damaged several homes in our community. Many households sought help to make the necessary
repairs that would keep them safe in their homes, and many received help with their furnaces through our partnership with
DTE. Other services requested were for electric and plumbing defects. Below is a snapshot of the programs utilizing
CDBG funds:
2014-15
OBJECTIVE OUTCOME
HOUSING HOUSING REPAIR 40 UNITS 37 UNITS
PRIORITIES VINYL SIDING 10 UNITS 8 UNITS
RAMPS 3 UNITS 4 UNITS
NON-HOUSING DEMOLITION DEMOLISH 10 9 HOUSING
HOUSING UNITS UNITS
PRIORITIES DEMOLISHED
BOARD-UPS BOARD 30 78 HOUSING
HOUSING UNITS UNITS BOARDED
OTHER SUMMER INTERNS 2-3 INTERNS 2 INTERNS
ACTIVITIES
We worked with our sister cities- Muskegon Heights and Norton Shores, as well as the County of Muskegon to
leverage funds with the DTE Energy Test and Tune program. We gained the ability to stretch our funding and include
more citizens while installing updated efficient features like programmable thermostats. Through this effort we were able
to leverage our Priority Housing activities city-wide. The momentum from the previous year helped us market this year-
round opportunity throughout the county. Our partnership proved to be vital for families that would be ineligible for our
program but were allowed access to this service county-wide.
DTE program statistics include 24 county residents; 19 were in the city limits, and of those, only 2 required that we
include CDBG funds to complete the work performed. Our purpose in what we do was performed - helping low-moderate
income families with housing repairs to keep their homes safe and suitable for living.
1
Fair Housing
Each year Muskegon County and our sister cities, Muskegon Heights and Norton Shores, partner through an Inter-
agency agreement which contracts with the Fair Housing Agency of West Michigan (FHA). This agreement enlists
surveys, testing, training and reports explaining our Muskegon area fair housing behaviors and tendencies. This year we
signed a two year agreement to continue the monitoring of our area agencies and to connect with our citizens that reported
possible housing discriminatory actions. The opportunity to reduce unjust practices will strengthen our communities. In
light of our reporting schedules for Action Plans and end of the year reports to HUD, we opted to have the FHA provide us
with a mid-year and end of the year report. This change saved us all money and it is easier to review within our annual
budget schedule.
Municipality Approx. Population Percentage of total Financial Responsibility
City of Muskegon 37,213 22 4500
City of Norton Shores 23,998 14 2500
City of Muskegon Heights 10,831 6 1000
County of Muskegon 171,008 58 7000
TOTALS 243,150 100% $15,000
Affordable Housing
HOME activities for CHDOs and our Homebuyer Program were very successful. Two agencies received CHDO
reserve dollars to produce 3 housing units- 1 homebuyer and 2 rentals. The city was able to rehab one property. There
was one acquisition that ended in a demolition and lot split between the two adjacent neighbors. However the homebuyer
properties will close within 6 months of completion producing two units this funding cycle.
Using the 2009 Building Code standards as our rehabilitation/new construction standard, all housing projects
within the City of Muskegon conform to our local code enforcement team of inspectors. Inspection reports and staff
monitoring are important safeguards throughout the building process.
We continue to work together on the promotion of qualified contractors that provide quality work that meet our
housing codes while promoting efforts to reach minority and female-owned businesses. Recently, our Affirmative Action
department updated policies to include local minority-owned businesses in our selection process. The procurement process
for using contractors has been extended to two-year contracts of service to avoid delays in our activity operations.
General Questions
Any obstacles we faced in meeting the underserved needs could be linked to our funding resources. We do not
have a match requirement in our community, so the biggest challenge was met head on by the reduction of Muskegon’s
2011 grant allocation. We dropped below 1 million in CDBG money, was forced to make policy changes to offset less
funding, we continued to serve low income households and ultimately, we could only fund one sub-recipient agency to
help us carry out our goals. 2014 remained constant with just the one agency, LOVE Inc. We continue to offer grants
from our entitlement funds to provide youth with after-school activities - open gym, and a number of summer programs
and activities geared to engage children and offered specific character building programs.
2
THE PROCESS
Operations
Staff from Community and Neighborhood Services is working with local departments, outside agencies and
commissioners to move forward on our plans to provide services to our low to moderate income citizens. Our efforts to
assist a local unit of government have gone well for 7 years. Increasing our partnerships has enhanced the community’s
perception of us working together. It is clear that we have the staff capacity to continue this level of service work as well
as performing contractual duties in another municipality.
Lead-Based Paint
The County of Muskegon’s Lead Hazard Reduction Program, managed by the County Treasurer’s Department, has
agreed to assist with 2 owner-occupied homes with our commitment, and 3 rental units were completed. The City of
Muskegon continues to partner as a funding agent for rentals units within our city limits in an effort to make safe housing
units for young children. The free testing offered by this grant allows lead-based paint hazard remediation, which supports
our goal to reach more families, leverage dollars, increase partnership, and most importantly, we are part of producing
decent housing units for households with children. We meet these challenges when we:
- Publicize the program to every property owner requesting rental assistance for rehabilitation
- Accept vinyl-siding applications assisted with lead-based paint remediation
The county will test; we will cover non-lead rehab costs at a ratio of 50/50, and if necessary, fill the gap above the
maximum grant threshold. We are committed to reducing lead based paint hazards in rental units in the City of Muskegon
and we have made every effort to partner with the County to help our renters and landlords in this regard.
Community Development
Our Affirmative Action director solicited the local high school and colleges for internship opportunities within the
City of Muskegon. This year a task force of one commissioner and I interviewed agencies that could help youths who will
be returning to high school and we were able to conduct a series of meetings with Michigan Works for our 2015 funding
year. At least five young people were identified through a workshop requesting that they reside and attend Muskegon
Public Schools. The agreement will be to provide a learning atmosphere for our youth to gain work skills, to highlight
local employers, and set in motion future hires.
3
HOUSING NEEDS
Goals and objectives met during Action Plan 2014 are tabulated below:
Type of Repair Total Ethnic Income
Senior 30 -
R F E P/S O Description Amount B W H A AI 60% 50%
20%
1 $6,633.00 1 1
1 1 $6,679.00 1 1
1 $1,000.00 1 1
1 $12,686.00 1 1
1 $1,265.00 1 1
1 $100.00 1 1 1
1 $1,200.00 1 1 1
1 $800.00 1 1 1
1 $6,677.00 1 1
1 $5,195.00 1 1
1 $21,593.00 1 1
1 $3,688.00 1 1 1
1 $7,928.00 1 1
1 $3,055.00 1 1
1 $4,525.00 1 1
1 $3,978.00 1 1
1 $2,200.00 1 1 1
1 $2,024.00 1 1
1 $13,304.83 1 1 1
1 $4,511.00 1 1
1 $2,500.00 1 1 1
1 $4,600.00 1 1 1
1 $6,811.00 1 1 1
1 $5,868.00 1 1
1 1 $4,800.00 1 1
1 1 Boiler $7,889.00 1 1 1
1 $4,977.00 1 1
1 $5,428.00 1 1 1
1 $7,769.00 1 1 1
1 $3,988.00 1 1 1
1 $11,032.00 1 1
1 $6,417.00 1 1
1 $2,470.00 1 1
1 $2,775.00 1 1 1
1 $1,800.00 1 1 1
1 $5,787.33 1 1 1
1 $3,738.00 1 1 1
20 9 2 9 0 $197,691.16 16 20 1 0 0 17 9 24 4
*R=Repair F=Furnace E=Electric P/S=Plumbing/Sewer O=Other
4
INCOME
50-60
<30%AMI 30-50%AMI AMI
4 24 9
HEAD OF
HOUSEHOLD
Male- 17 Female- 20
Supply Total Ethnic Income Senior FHH HH
Install Total
Total Amount B W H A AI 20% 50% 60% Y N Y N Y N
$4,643.75 $3,067.16 $7,710.91 1 1 1 1 1
$2,569.75 $2,588.25 $5,158.00 1 1 1 1 1
$5,523.75 $573.95 $6,097.70 1 1 1 1 1
$3,440.75 $2,392.02 $5,832.77 1 1 1 1 1
$3,736.75 $3,980.58 $7,717.33 1 1 1 1 1
$3,162.75 $2,453.12 $5,615.87 1 1 1 1 1
$5,437.75 $3,773.37 $9,211.12 1 1 1 1 1
$2,352.75 $1,644.77 $3,997.52 1 1 1 1 1
$51,341.22 4 4 0 0 0 1 5 2 3 5 5 3 2 6
*occupants are below 30% AMI
FHH- Female Head of Household
HH- Handicap
Our intent to improve programs and streamline the process by which we assist families was strengthened when we
restricted households to a 10 year limitation to program services. Families could not return to receive new housing repairs
if previously assisted, which prolonged the life of our budget. Without limits, our citizens returned for help annually on a
regular basis. As a result of our 10 year limit, staff was able to utilize grant funds to repair more roofs than in previous
years and provide new citizens with housing repair assistance. We are proud to say that no one was turned away needing
assistance because we ran out of funds.
For all of our housing programs, we did not displace any homeowner. It is necessary to state that our CDBG
funded programs were limited to our entitlement allocation and any additional resources were covered by (PI) Program
Income received from the CDBG programming.
HOME
Affordable, decent and safe housing is critical to goals and objectives of the 2011 Consolidated Plan activities.
ACTIVITIES 5 YR PREVIOUS 2014
PROJECTION PROGRESS PROGRESS
Acquisition 2 2 0
New Construction 5 3* 2
Rehabilitation 10 8 0
Rental 10 10* 3
*CHDO Assisted
5
The City of Muskegon’s Homebuyer Assistance Grant was new to our program roster and used the Program
Income to fund it.
Households Income ≤ 80% AMI
GENDER RACE FAMILY SIZE PURCHASE PRICE NEIGHBORHOOD
(Homebuyer Assistance)
F WHI 3 $72,900 ($5,546.46) Glenside
M WHI 1 $72,900 ($5,600.00) Glenside
F WHI 1 $60,000 ($5,360.00) Nims
F BLK 1 $48,000 ($5,000.00) Nims
F WHI 1 $59,900 ($4,819.16) Lakeside
F BLK 3 $67,900 ($3,483.72) Nims
F WHI 1 $39,000 ($4,072.64) Nelson
F WHI 3 $69,900 ($5,209.33) Nims
F WHI 1 $35,000 ($4,632.38) Campbell
F WHI 1 $47,000 ($4,178.87) Campbell
2014 Homebuyer Assistance Grant Total $ 47,902.58
The italicized grant assistance indicates amounts above $5000 for the added cost of a Lead Risk Assessment.
Public Strategy
As the governmental entity for our Public Housing Agency residing in our city limits, they continue to affirm that
our plans fit the consolidated plan, which supports suitable living environments for low-income households. To promote
homeownership, the City of Muskegon continues to actively engage with the Housing Commission, and now two City
employees are board members. A new director is in place and changes to services because of new leadership have worked
to improve the public perception of the housing agency.
The challenges have been met and now they are back in charge of their financial systems without bi-weekly
approvals from HUD’s Public Housing staff. Strategies to support a stronger relationship between the agency and city
have grown and enhanced our community.
Barriers to Affordable Housing
Current identifiable barriers to affordable housing are FHA mortgages, banks willing to invest, and financing for
families with moderate credit scores- 580 to 620. Several banks have limited low income families’ abilities to purchase
affordable homes that are considered non-conforming collateral. Home selection was limited and the inability to acquire
homes in the areas of marketability has hampered our search for a reasonable property to rehabilitate.
At least 4 homes were bid and each time we came up with nothing. The housing market has shifted to produce
more buyers than homes available to purchase. The competition is fierce and we have been forced to purchase land in city
neighborhoods that have not been inhabited with our housing target. This brings about a new dynamic of social issues.
We have had a Lease with Option to Purchase program, but no one has purchased the home that they are currently
renting. However, our inventory in this program has diminished; one property sold and two remain occupied with the
original tenants.
Neighborhoods in need of assistance for playground equipment and recreational apparatus were just a few
enhancements that we supported through our Neighborhood Grants. We supported the efforts of the neighborhood
6
associations to ensure that the requested improvements happened. Improving neighborhoods will remove barriers to
affordable housing in areas that are questionable to market sales.
In addition, we have worked with the Fair Housing Agency of West Michigan to identify barriers to families who
may have experienced discrimination, which can be considered a barrier to affordable housing. Our collaboration with our
sister cities supports a positive action toward furthering fair housing choice in Muskegon.
This agreement commissions the Fair Housing agency to address realtors, service agencies and public officials, all
in an effort to help eliminate barriers of housing discrimination. Twice a year, we receive reports about what they have
found and what they perceive as solutions to any foreseen areas of affordable housing options.
Homeless Needs
In our community, Muskegon is an active board member of the Continuum of Care Coalition. Local agencies have
experienced some changes with the leadership; another agency has assumed the role of tracking the clients and offering
housing vouchers to households at risk of becoming homeless.
Actions taken to deter homelessness
- Staff training
- Recruitment of landlords
- Multi-agent programs for at risk families
- Support groups
- Improved housing opportunity facilities
More funding for families in the area of rental assistance was accomplished. Previously cut off from any type of
assistance, a family could re-apply for rent subsidy dollars that were released to our area early spring 2012. These federal
dollars helped to prevent eviction which leads to homelessness.
Non-Homeless Special Needs
People Living Below Poverty
Our commission members agreed to fund a local, sub-recipient grant funds to help low-income families pay
utilities and rent. Love INC has been assisting area households with utilities and ramps for the past 4 years. Monitoring
their success of 13 residents of the City of Muskegon with rent/utility assistance, the following is a breakdown of those
non-homeless, households:
Income Level_*_______
Extremely Low 9
Very Low 4
Low 0
Ethnic Group________
Black 5
White 3
Latino 5
* Low: 60 – 80% Very Low: 30 – 50% Extremely Low 20% >
7
HOPWA
The City of Muskegon is home to a HOPWA funded agency who has submitted plans that coincide with the City’s
Consolidated Plan as a Housing priority for affordable housing units. No direct financial assistance has been given to the
agency but any improvement in local properties is a perceived benefit for any persons facing eviction and struggling to
afford a suitable place to live.
Because the City of Muskegon does not receive HOPWA funding, our role is simple: We are available to meet the
needs of all of our citizens regardless of race, religion, color, national origin, age, familial status, marital status, sexual
orientation or gender identity, and an agency that supports this effort.
Emergency Shelter Grant
Not funded directly, but several Continuum of Care coalition members report on the County’s funding. The needs
of at-risk families have been served by the circle of shelters, programs and community organizations receiving state
funding.
Comments
8
Commission Meeting Date: September 8, 2015
Date: September 3, 2015
To: Honorable Mayor and City Commissioners
From: Planning & Economic Development
RE: Presentation by General Capital Group
SUMMARY OF REQUEST:
General Capital Group will be making a presentation on the site that they are considering for
their new mixed use development project. They will be requesting a PILOT for the project in
the near future.
FINANCIAL IMPACT:
None
BUDGET ACTION REQUIRED:
None
STAFF RECOMMENDATION:
None
COMMITTEE RECOMMENDATION:
None
9/3/2015
275 WEST CLAY AVENUE
Family-owned Midwest
developer of high-quality
affordable housing and
commercial properties.
1,600 portfolio units
Berkshire Communities brand of
independent senior housing
GENERAL CAPITAL GROUP
• 20 year old firm
• Headquartered in Milwaukee, with offices in
Chicago
• 20 Employees
• 20 LIHTC Deals as GP, Fee Developer and/or
General Contractor
• Over 50 Commercial Developments (Mixed Use,
Industrial, Retail and Build to Suit)
AREA MAP
PROJECT OVERVIEW
• Mixed Use Building
• Senior Independent Living
• Mixed Income Project
• Currently Vacant Site
BUILDING DETAILS
• 3 Story Mixed Use Building
• 79 Units
• 56 1-BR Units 23 2-BR Units
• Underground parking for residents
• Surface parking behind building
Architectural Design: Traditional Architecture Compliant with
Muskegon’s New Form Based Code
BUILDING QUALITY AND DESIGN
• High quality, brick exterior
• Well articulated building exterior with
attention to pedestrian details
• Traditional architectural design that fits into
Dowtown Muskegon context
• Commercial space on corner of 1st & Clay
SITE PLAN
BUILDING AMENITIES
• 1,800 Sq. Ft. Commercial / Retail Space
• Working on TangleWood Satellite Office
• Significant Common Area
• Community Room
• Exercise Room
• Library / Business Center
• Outdoor courtyard and terrace areas
• On Site Manager and Leasing Office
PROJECT BENEFITS
DOWNTOWN DEVELOPMENT
• Catalytic project for Downtown Muskegon: Significant
investment on vacant infill site.
• Attractive Building: sets good precedent for responsive urban
design and building quality
• Early implementation win for Form Based Code
• Commercial Retail Space
• Tanglewood Satellite Office will provide services for Berkshire
residents and larger community
PROJECT BENEFITS
ECONOMIC DRIVER
National Association of Home Builders Estimates in First Year
a 100 Unit LIHTC Property Will have Following Benefits:
• $8.7 million in additional wages for local workers an profits
for proprietors of business
• $3.3 million in additional taxes for federal, state and local
governments
• 116 additional jobs
PROPOSED BUILDING RENT STRUCTURE
60% Area Median Income Units – 47 (1 BR Rent $524 / 2 BR Rent $623)
40% Area Median Income Units - 26 (1 BR Rent $321 / 2 BR Rent $379)
30% Area Median Income Units – 6 (1 BR Rent $219 / 2 BR Rent $257)
PILOT ECONOMICS
Total 2014 Real Estate Taxes -- $3,9701
Current Assessed Value -- $64,400
PlLOT Request: $22,195
TO: Honorable Mayor and City Commissioners
FROM: Frank Peterson, City Manager
DATE: September 3, 2015
RE: West Michigan Lakehawks
SUMMARY OF REQUEST:
TO authorize staff to support of the West Michigan Lake Hawks as follows:
1. Purchase 50 tickets to each of the 8 home games played at Muskegon High School – to be
provided to youth-related community organizations.
2. The video broadcasting of all 8 games hosted at Muskegon High School.
3. Advertising of the Watch Muskegon campaign on game uniforms, practice uniforms, and
warmups.
FINANCIAL IMPACT:
Not to exceed $7,100
BUDGET ACTION REQUIRED:
None
STAFF RECOMMENDATION:
To authorize city staff to participate in the Lakehawks 2015-16 season as presented.
COMMITTEE RECOMMENDATION:
TO: Honorable Mayor and City Commissioners
FROM: Frank Peterson, City Manager
DATE: September 3, 2015
RE: LC Walker Arena
SUMMARY OF REQUEST:
To authorize staff to hire Tim Taylor as the Chief Executive Officer of the LC Walker Arena at a salary not
to exceed $75,000 annually.
FINANCIAL IMPACT:
$75,000 annually
BUDGET ACTION REQUIRED:
None
STAFF RECOMMENDATION:
To authorize city staff to complete the hire and negotiate a contract with Tim Taylor.
COMMITTEE RECOMMENDATION:
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