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CITY OF MUSKEGON
CITY COMMISSION MEETING
JULY 12, 2016
CITY COMMISSION CHAMBERS @ 5:30 P.M.
AGENDA
□ CALL TO ORDER:
□ PRAYER:
□ PLEDGE OF ALLEGIANCE:
□ ROLL CALL:
□ HONORS AND AWARDS:
□ INTRODUCTIONS/PRESENTATION:
A. Sister Cities Presentation
B. Veteran’s Memorial Park Presentation by Muskegon County
Department of Veteran’s Affairs and the Northside Lions
□ CITY MANAGER’S REPORT:
□ CONSENT AGENDA:
A. Approval of Minutes City Clerk
B. Purchase of 14 Electronic Pollbooks City Clerk
□ PUBLIC HEARINGS:
A. Request for an Industrial Facilities Exemption Certificate – Production
Fabricators Planning & Economic Development
B. Request to Create a New Neighborhood Enterprise Zone District at 316
Morris Street Planning & Economic Development
C. Request to Create a New Neighborhood Enterprise Zone District at 965
W. Western Avenue & 920 Washington Avenue Planning & Economic
Development
D. Request to Establish an Obsolete Property District – 920 Washington
Avenue Planning & Economic Development
E. Request to Issue an Obsolete Property Certificate – P & G Holdings NY,
LLC – 920 Washington Avenue Planning & Economic Development
□ COMMUNICATIONS:
□ UNFINISHED BUSINESS:
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□ NEW BUSINESS:
□ ANY OTHER BUSINESS:
□ PUBLIC PARTICIPATION:
► Reminder: Individuals who would like to address the City Commission shall do the following:
► Fill out a request to speak form attached to the agenda or located in the back of the room.
► Submit the form to the City Clerk.
► Be recognized by the Chair.
► Step forward to the microphone.
► State name and address.
► Limit of 3 minutes to address the Commission.
► (Speaker representing a group may be allowed 10 minutes if previously registered with City Clerk.)
□ CLOSED SESSION:
□ ADJOURNMENT:
ADA POLICY: THE CITY OF MUSKEGON WILL PROVIDE NECESSARY AUXILIARY AIDS AND SERVICES TO INDIVIDUALS
WHO WANT TO ATTEND THE MEETING UPON TWENTY-FOUR HOUR NOTICE TO THE CITY OF MUSKEGON. PLEASE
CONTACT ANN MARIE 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.
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Memorandum
To: Mayor and Commissioners
From: Frank Peterson
Re: City Commission Meeting
Date: July 7, 2016
Here is a quick outline of the items on next week’s agenda:
WORK SESSION – INNOVATION HUB (formerly MAREC Center)
The focus of the work session will be the PM Park discussion. We are also in discussions with
Sarah from the Watermark, and she will make herself available to come and do a presentation
on their plans for redevelopment (as the OPRA and NEZ are on the Commission agenda). We will
lead off with the Watermark discussion and then move on to PM Park.
COMMISSION MEETING
1. We will have a presentation from our Sister Cities leadership, as well as a presentation on
Veteran’s Memorial Park.
2. Under the consent agenda, we are asking the Commission to for approval of the following:
a. Last meeting’s minutes.
b. The purchase of 14 electronic poll-books for the City Clerk’s office.
3. Under Public Hearings, we will cover a number of topics:
a. An IFT request from Production Fabricators. If you recall, they are located in
Muskegon Township and recently purchased a piece of city-owned land adjacent
to their facility. They will now expand onto that piece of property, which will move
a portion of their business into Muskegon. They are planning on an expansion of
about 10,000 square feet.
b. A Neighborhood Enterprise Zone District request for 316 Morris Street (Terrace
Plaza). The owners are planning to add a residential component to their building,
which will initially cover the 6th and 7th floors.
c. A Neighborhood Enterprise Zone District request for 965 West Western Ave and
920 Washington Ave (former Shaw Walker building). The owners are planning to
expand the residential opportunities at the Watermark Lofts. This is a mixed use
project, and a corresponding Obsolete Property District and Certificate will be
sought for the commercial components.
d. An Obsolete Property District establishment request for 920 Washington Ave. This
will facilitate a commercial investment of approximately $13 Million. We are
proposing a two-year timeline for completion.
e. An Obsolete Property Certificate request for 920 Washington Ave. This is related
to item d.
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.
Date: July 6, 2016
To: Honorable Mayor and City Commissioners
From: Ann Marie Meisch, City Clerk
RE: Approval of Minutes
SUMMARY OF REQUEST: To approve minutes of the June 28, 2016
Regular City Commission Meeting.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval of the minutes.
CITY OF MUSKEGON
CITY COMMISSION MEETING
JUNE 28, 2016
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, June 28, 2016.
Pastor Tim Cross, Living Word 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 Eric Hood, Commissioners Debra
Warren, Willie German, Jr., Dan Rinsema-Sybenga, Byron Turnquist, and Ken
Johnson, City Manager Franklin Peterson, City Attorney John Schrier, and City
Clerk Ann Meisch.
2016-53 CONSENT AGENDA:
A. Approval of Minutes City Clerk
SUMMARY OF REQUEST: To approve minutes of the June 10, 2016 Special City
Commission Meeting, June 13, 2016 Worksession Meeting, and the June 14, 2016
Regular City Commission Meeting.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval of the minutes.
D. Community Relations Committee Recommendation City Clerk
SUMMARY OF REQUEST: To concur with recommendations from the Community
Relations Committee to appoint Barbara VanFossen to the District Library Board.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To concur with recommendations.
E. Interview Room Audio & Visual Recording Device Public Safety
SUMMARY OF REQUEST: The Director of Public Safety requests that the
Commission authorize the amount of $15,361.00 for an audio & visual recording
device for the Detective Bureau interview room. This recording system, with
needed attachments, accessories, and backend storage server, will replace the
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current out-of-date recording system. This upgrade will also assist the Muskegon
Police Department to be in compliance with the Audio Recording of Custodial
Interrogations ~ Public Act 479 of 2012. The equipment enhancement should be
completed by August 15, 2016. *This equipment is a sole source purchase which
is compatible with the L3 Communications Dash Cam system in our patrol
vehicles.
FINANCIAL IMPACT: N/A – Budgeted.
BUDGET ACTION REQUIRED: Equipment was budgeted in the 215/2016
(amended) budget cycle to support the equipment upgrade (Police Forfeiture
Fund).
STAFF RECOMMENDATION: Staff recommends approval of this equipment
purchase to update & enhance essential audio & visual recording during
criminal investigations.
F. Backhoe Purchase DPW/Equipment
SUMMARY OF REQUEST: Authorize staff to purchase one (1) Michigan Cat
Backhoe from Michigan Caterpillar, the Mi Deal State Contract holder. This
machine will replace the 2000 model that we will retire from service.
FINANCIAL IMPACT: $111,000 on State Contract.
BUDGET ACTION REQUIRED: None. Amount is within what was budgeted.
STAFF RECOMMENDATION: Authorize staff to purchase one (1) Michigan Cat
Backhoe from Michigan Caterpillar, the Mi Deal State Contract Holder.
G. Fuel System Upgrade DPW/Equipment
SUMMARY OF REQUEST: Authorize staff to purchase new Fuel Master Fuel
Dispensing Module and Fuel pumps from Van Manen Petroleum Group. This is
the second phase of our upgrade that started last year when our monitoring
and leak detections system failed requiring emergency repairs to keep us
compliant with DEQ regulations. This purchase is product exclusive to the
previous repairs done last year due to the age of our system; we are reaching
the point where it is getting hard to find replacement parts for our pumps. With
the Police and Fire as well as DPW staff fueling at our facility it would not be
good for our pumps to be down for an extended period of time.
FINANCIAL IMPACT: $23,000.00
BUDGET ACTION REQUIRED: None. Amount is what was budgeted.
STAFF RECOMMENDATION: Authorize staff to purchase new Fuel Master
Module and Pumps.
H. New Plow Truck DPW/Equipment
SUMMARY OF REQUEST: The Equipment Division is requesting permission to
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purchase one new plow truck from West Michigan International the State Mi-
Deal contract holder.
FINANCIAL IMPACT: $84,292.85
BUDGET ACTION REQUIRED: None. This is the amount budgeted for.
STAFF RECOMMENDATION: Authorize staff to purchase (1) one new plow
truck from West Michigan International, LLC.
K. Vinyl Siding Supplier Contract for Fiscal Year 2016 Community and
Neighborhood Services
SUMMARY OF REQUEST: To authorize Community and Neighborhood Services to
enter a new contract with Keene Lumber Company to be the Vinyl Siding
Supplier for 2016 Fiscal Year. Keene Lumber has agreed to honor the existing
contract price of $46.95 per building square for standard siding and $85.00 per
building square for premium siding.
FINANCIAL IMPACT: Funding will be disbursed from the 2016 Community
Development Block Grant Vinyl Siding fund.
BUDGET ACTION REQUIRED: None at this time.
STAFF RECOMMENDATION: To approve the request.
COMMITTEE RECOMMENDATION: The funding for the Vinyl Siding Program
was approved by the Citizens District Council during the 2016 CDBG Grant
process.
L. Vinyl Siding Installer Contracts for Fiscal Year 2016 Community and
Neighborhood Services
SUMMARY OF REQUEST: To authorize Community and Neighborhood Services to
enter a new contract with JR Tucker Construction to install vinyl siding at an
agreed price of $52.00 per building square for the Vinyl Siding Program’s 2016
fiscal year.
FINANCIAL IMPACT: Funding will be disbursed from the July 1, 2016 – June
30, 2017 Community Development Block Grant Vinyl Siding fund.
BUDGET ACTION REQUIRED: None at this time.
STAFF RECOMMENDATION: To approve the request.
COMMITTEE RECOMMENDATION: The funding for the Vinyl Siding Program
was approved by the Citizen’s District Council during the 2016 CDBG Grant
process.
M. Sewer Rate Adjustment Finance Director
SUMMARY OF REQUEST: Prior to 2015, there had not been a sewer rate increase
since 2010. The 2015 sewer rate resolution that was adopted has not adequately
addressed the needs of the sewer fund. Accordingly, we are asking the City
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Commission to rescind the sewer rate resolution that was adopted in 2015 and
now approve a new resolution with a treatment rate for our customers that is
based on a multiplier of 1.49 times the rate the county bills the City for
wastewater treatment.
FINANCIAL IMPACT: None at this time.
BUDGET ACTION REQUIRED: None at this time. The proposed rate change was
incorporated into the FY 2016-17 budget that was recently approved by the City
Commission.
STAFF RECOMMENDATION: Adoption of the fee adjustment resolution.
Motion by Commissioner Johnson, second by Commissioner Turnquist, to
approve the Consent Agenda as presented with the exception of Items B, C, I, J,
and N.
ROLL VOTE: Ayes: German, Rinsema-Sybenga, Turnquist, Johnson, Gawron,
Hood, and Warren
Nays: None
MOTION PASSES
2016-54 ITEMS REMOVED FROM THE CONSENT AGENDA:
B. Gaming License Request from Muskegon Polish Festival City Clerk
SUMMARY OF REQUEST: The Muskegon Polish Festival is requesting a resolution
recognizing them as a non-profit organization operating in the City for the
purpose of obtaining a Gaming License.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval.
Motion by Commissioner Warren, second by Commissioner German, to approve
a resolution for the Muskegon Polish Festival for the purposes of obtaining a
Gaming License.
ROLL VOTE: Ayes: Rinsema-Sybenga, Turnquist, Johnson, Gawron, Hood,
Warren, and German
Nays: None
MOTION PASSES
C. Approval of Resolution Regarding Precinct Boundary Adjustments
City Clerk
SUMMARY OF REQUEST: To approve a resolution to allow for the adjustment of
precinct boundaries in precincts 5 and 7. Terrace Point Circle did not exist when
the current precinct boundaries were decided. Terrace Point Circle is currently
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sitting in two precincts with no natural boundary. Further adjustments will be
made to this area to include the voters on Viridian Drive, the natural boundary
used for the new precinct division is the census block where the properties are
located. Voters registered on Viridian will have a new polling place of City Hall
effective January 1, 2017 if the resolution is approved. Changes to Terrace Point
Circle will become effective immediately.
FINANCIAL IMPACT: None.
BUDGET ACITON REQUIRED: None.
STAFF RECOMMENDATION: Approval of the resolution.
STAFF RECOMMENDATION: To concur with recommendations.
Motion by Commissioner German, second by Commissioner Rinsema-Sybenga,
to approve the resolution adjusting precinct boundaries in precincts 5 and 7.
ROLL VOTE: Ayes: Turnquist, Johnson, Gawron, Hood, Warren, German, and
Rinsema-Sybenga
Nays: None
MOTION PASSES
I. Plow Truck Build DPW/Equipment
SUMMARY OF REQUEST: Authorize staff to allow Arista Truck Systems to build two
new Plow trucks, the lowest qualified bidder.
FINANCIAL IMPACT: $111,224.00
BUDGET ACTION REQUIRED: None. Amount is within what was budgeted.
STAFF RECOMMENDATION: Authorize staff to allow Arista Truck Systems to
build two new Plow trucks, the lowest qualified bidder.
Motion by Commissioner German, second by Commissioner Rinsema-Sybenga,
to authorize staff to allow Arista Truck Systems to build two new Plow trucks, the
lowest qualified bidder.
ROLL VOTE: Ayes: Johnson, Gawron, Hood, Warren, German, Rinsema-
Sybenga, and Turnquist
Nays: None
MOTION PASSES
J. A & E Barbecue Concession Contract for City of Muskegon Parks
Department of Public Works
SUMMARY OF REQUEST: Staff is asking permission to enter into a 1-year
contractual agreement with Eric Jewel of A & E Barbecue LLC, at Pere
Marquette Park, located within the City of Muskegon, to sell various Barbecue
items from a mobile “smoker on wheels”.
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FINANCIAL IMPACT: Concession revenue is 10% of gross receipts
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Authorize DPW staff to enter into concession
agreement with Eric Jewel of A & E Barbecue LLC.
Motion by Commissioner German, second by Commissioner Warren, to
authorize staff to enter into concession agreement with Eric Jewel of A & E
Barbecue, LLC.
ROLL VOTE: Ayes: Gawron, Hood, Warren, German, Rinsema-Sybenga,
Turnquist, and Johnson
Nays: None
MOTION PASSES
N. Reese Field Management Agreement Department of Public Works
SUMMARY OF REQUEST: Authorize the Mayor and City Clerk to execute the
“Reese Field Soccer Facility Management Agreement” with Sailors Soccer Club
DBA, West Michigan Storm Soccer Club (WMSSC).
FINANCIAL IMPACT: West Michigan Storm Soccer Club will expand the
operations of this facility and will invest in improvements to the facility.
BUDGET ACTION REQUIRED: None. The contract will offer savings in
maintenance costs for the City and create opportunities for capital
improvements by WMSSC that the City is unable to accomplish at this time.
STAFF RECOMMNEDATION: Approve request.
Motion by Commissioner Warren, second by Commissioner Johnson, to
authorize the Mayor and City Clerk to execute the “Reese Field Soccer Facility
Management Agreement” with Sailors Soccer Club DBA, West Michigan Storm
Soccer Club.
ROLL VOTE: Ayes: Hood, Warren, German, Rinsema-Sybenga, Turnquist,
Johnson, and Gawron
Nays: None
MOTION PASSES
2016-55 PUBLIC HEARINGS:
A. Public Hearing – Request to Create a New Neighborhood Enterprise
Zone District at 285 W. Western Avenue Planning and Economic
Development
SUMMARY OF REQUEST: Pursuant to Public Act 147 of the Michigan Public Acts
of 1992, the developer of the Highpoint Flats project has requested to create a
new Neighborhood Enterprise Zone (NEZ) district for the parcel at 285 W.
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Western Avenue. Properties located in NEZ districts are eligible to apply for NEZ
certificates, which will lower the residential property taxes on new or rehab
construction. The State requires that notices are to be sent to the local taxing
jurisdictions regarding the request and that the resolution may not be passed
until after 60 days of the notice letters being sent. Also, a public hearing must be
held no more than 45 days after the notice is sent. Notices were mailed on June
20, 2016. The resolution is planned to come back in front of the City Commission
on August 23, 2016. This project will include between 49-61 apartment units with
first floor retail and/or office space. The NEZ will only affect the residential
component of the project. The City is allowed to designate up to 15% of its total
area as NEZ designations, which calculates out to 2.802 square miles. We
currently have 2.06 square miles designated as NEZ districts. This new district
would only add 0.0004 square miles for an overall total of 2.0604 square miles of
designated NEZ district in the City.
FINANCIAL IMPACT: For those properties that are approved for a NEZ
Certificate, taxation will be levied using half of the State average of millages of
local entities.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Staff recommends approval of the new NEZ district.
PUBLIC HEARING COMMENCED: NO PUBLIC COMMENTS RECEIVED.
Motion by Commissioner Warren, second by Vice Mayor Hood, to close the
public hearing.
ROLL VOTE: Ayes: Warren, German, Rinsema-Sybenga, Turnquist, Johnson,
Gawron, and Hood
Nays: None
MOTION PASSES
2016-56 NEW BUSINESS:
A. Concurrence with the Housing Board of Appeals Notice and Order to
Demolish Public Safety
330 Washington
1592 5th Street
1761 S. Getty Street
1363 7th Street
1524 Hoyt Street
SUMMARY OF REQUEST: This is to request that the City Commission concur with
the findings of the Housing Board of Appeals that the structures are unsafe,
substandard, a public nuisance and that they be demolished within thirty (30)
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days or infraction tickets may be issued. It is further requested that administration
be directed to obtain bids for the demolition of the structures and that the
Mayor and City Clerk be authorized and directed to execute contracts for
demolition with the lowest responsible bidder or staff may issue infraction tickets
to the owner, agent or responsible party if they do not demolish the structure.
FINANCIAL IMPACT: CDBG or General Funds.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To concur with the Housing Board of Appeals
decision to demolish.
Motion by Vice Mayor Hood, second by Commissioner German, to concur with
the Housing Board of Appeals decision to demolish.
ROLL VOTE: Ayes: German, Rinsema-Sybenga, Turnquist, Johnson, Gawron,
Hood, and Warren
Nays: None
MOTION PASSES
B. Skate Park Fund Agreement City Manager
SUMMARY OF REQUEST: The City Commission’s 4th Quarter Budget Reforecast
for FY2015-2016 included a $10,000 expenditure for improvements to the Skate
Park at Syferth Park. Staff is requesting permission to utilize those dollars to
establish a fund at the Community Foundation for Muskegon County to allow for
additional contributions to be made by interested community members.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To approve the Non-Profit Support Services
Agreement with the Community Foundation for Muskegon County, and
authorize the Mayor to sign.
Motion by Commissioner Johnson, second by Commissioner Warren, to approve
the Non-Profit Support Services Agreement with the Community Foundation for
Muskegon County, and authorize the Mayor to sign.
ROLL VOTE: Ayes: Rinsema-Sybenga, Turnquist, Johnson, Gawron, Hood,
Warren, and German
Nays: None
MOTION PASSES
C. LC Walker Arena Lease Agreement City Manager
SUMMARY OF REQUEST: As the City continues to manage the LC Walker Arena,
staff’s top priorities are to reduce or eliminate General Fund subsidies and
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strategically improve the arena in a manner that provides for more frequent use
and higher-quality experience for tenants and event attendees. The greatest
way to accomplish this is to add value in ways that do not disrupt ice utilization,
which is the facility’s greatest revenue source. Accordingly, staff is proposing a
lease agreement and corresponding development agreement with West
Michigan Rum Company, LLC, to provide for the buildout and leasing of
approximately 5,000 square feet of space in the concourse area of the Arena,
adjacent to the corner of Western Avenue and 4th Street. The West Michigan
Rum Company will operate a distillery and restaurant in this space that will
occupy the Western Avenue side of the building and add to the food and
beverage opportunities in the LC Walker Arena on event days. The lease has an
initial 5 year term with nine three-year extension options. Rent shall be $10.00 per
square foot – or approximately $4,166.66 per month initially.
FINANCIAL IMPACT: Development costs are estimated between $300,000
and $350,000. Annual rental income is estimated at $50,000.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To authorize staff to sign the agreements and
begin the due diligence period as outlined in the Development Agreement.
Motion by Commissioner Johnson, second by Commissioner German, to
authorize staff to sign the agreements and begin the due diligence period as
outlined in the Development Agreement.
ROLL VOTE: Ayes: Turnquist, Johnson, Gawron, Hood, Warren, German, and
Rinsema-Sybenga
Nays: None
MOTION PASSES
PUBLIC PARTICIPATION: Public comments were received.
ADJOURNMENT: The City Commission adjourned at 7:10 p.m.
Respectfully Submitted,
Ann Marie Meisch, MMC, City Clerk
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Date: July 12, 2016
To: Honorable Mayor and City Commissioners
From: CITY CLERK’S OFFICE
RE: Purchase of 14 Electronic Pollbooks
SUMMARY OF REQUEST: The laptops that host the electronic pollbook are
approximately five years old and are showing their age. We would like to purchase
new laptops for the 14 precincts and use the existing laptops as back-ups in case of
computer failure. These computers retail for $1,000 and offered through government
purchasing for $700 but IT was able to negotiate a $600 per laptop price.
FINANCIAL IMPACT: $8,400 from the Election Budget.
BUDGET ACTION REQUIRED: This is a budgeted item.
STAFF RECOMMENDATION: To approve the purchase of 14 laptops from Dell
through the government purchasing contract.
Resolution No. _______
MUSKEGON CITY COMMISSION
RESOLUTION APPROVING APPLICATION FOR ISSUANCE
OF INDUSTRIAL FACILITIES EXEMPTION CERTIFICATE
Production Fabricators
WHEREAS, pursuant to P.A. 198 of 1974 as amended, after duly noticed public hearing held on October
27, 2015, this Commission by resolution established an Industrial Development District as
requested by Production Fabricators, which included the property leased by Production
Fabricators, 1608 Creston St, Muskegon, Michigan 49442; and
WHEREAS, Production Fabricators has filed an application for the issuance of an Industrial Facilities Tax
Exemption Certificate with respect to a building addition to be installed within said Industrial
Development District; and
WHEREAS, said application was filed no later than six months after project commencement and the Muskegon
City Commission held a public hearing on July 12, 2016, at the Muskegon City Hall in Muskegon,
Michigan at 5:30 p.m. at which hearing the applicant, the assessor and representatives of the affected
taxing units were given written notice and were afforded an opportunity to be heard on said application;
and
WHEREAS, the installation of machinery and equipment is calculated to and will have the reasonable likelihood
to retain, create, or prevent the loss of employment in Muskegon, Michigan; 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:
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. 198 of
the Public Act of 1974 as amended and Act No. 255 of the Public Acts of 1978 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 Production Fabricators, for the issuance of an Industrial Facilities Tax Exemption
Certificate with respect to the installation of new machinery and equipment on the following
described parcel of real property situated within the City of Muskegon to wit:
CITY OF MUSKEGON PORT CITY INDUSTRIAL CENTER #4 LOT 52 & E 25 FT LOT 53
3) The Industrial Facilities Tax Exemption Certificate is issued and shall be and remain in force and
effect for a period of 12 years on real property.
1
Adopted this 12th Day of July 2016.
Ayes:
Nays:
Absent:
BY: __________________________________
Stephen J. Gawron
Mayor
ATTEST: __________________________________
Ann Meisch
Clerk
CERTIFICATION
I hereby certify that the foregoing constitutes a true and complete a resolution adopted by the Muskegon City
Commission, County of Muskegon, Michigan, at a regular meeting held on July 12, 2016.
______________________________
Ann Meisch
Clerk
2
Commission Meeting Date: July 12, 2016
Date: July 5, 2016
To: Honorable Mayor and City Commissioners
From: Planning & Economic Development
RE: Public Hearing - Request to Create a New Neighborhood
Enterprise Zone District at 316 Morris St.
SUMMARY OF REQUEST:
Pursuant to Public Act 147 of the Michigan Public Acts of 1992, the Hinman Company has
requested to create a new Neighborhood Enterprise Zone (NEZ) district for the parcel at
316 Morris St for a residential addition to the 7th floor of the Terrace Plaza building.
FINANCIAL IMPACT:
For those properties that are approved for a NEZ Certificate, taxation will be levied using
half of the State average of millages of local entities.
BUDGET ACTION REQUIRED:
None
STAFF RECOMMENDATION:
To hold the public hearing.
COMMITTEE RECOMMENDATION:
None
Background
Properties located in NEZ districts are eligible to apply for NEZ certificates, which will lower
the residential property taxes on new or rehab construction. The State requires that
notices are to be sent to the local taxing jurisdictions regarding the request and that the
resolution may not be passed until after 60 days of the notice letters being sent. Also, a
public hearing must be held no more than 45 days after the notice is sent. Notices were
mailed on June 30, 2016. The resolution is planned to come back in front of the City
Commission on September 13, 2016. The NEZ will only affect the residential component
of the project.
The City is allowed to designate up to 15% of its total area as NEZ designations, which
calculates out to 2.802 square miles. We currently have 2.0604 square miles designated
as NEZ districts. This new district (0.0008 square miles) along with the proposed district at
the watermark (0.015 square miles) would only add 0.0158 square miles for an overall
total of 2.0762 square miles of designated NEZ districts in the City.
Commission Meeting Date: July 12, 2016
Date: July 5, 2016
To: Honorable Mayor and City Commissioners
From: Planning & Economic Development
RE: Public Hearing - Request to Create a New Neighborhood
Enterprise Zone District at 965 W Western Ave & 920
Washington Ave.
SUMMARY OF REQUEST:
Pursuant to Public Act 147 of the Michigan Public Acts of 1992, the P&G Holdings NY,
LLC has requested to create a new Neighborhood Enterprise Zone (NEZ) district for a
residential addition to the Watermark.
FINANCIAL IMPACT:
For those properties that are approved for a NEZ Certificate, taxation will be levied using
half of the State average of millages of local entities.
BUDGET ACTION REQUIRED:
None
STAFF RECOMMENDATION:
To hold the public hearing.
COMMITTEE RECOMMENDATION:
None
Background
Properties located in NEZ districts are eligible to apply for NEZ certificates, which will lower
the residential property taxes on new or rehab construction. The State requires that
notices are to be sent to the local taxing jurisdictions regarding the request and that the
resolution may not be passed until after 60 days of the notice letters being sent. Also, a
public hearing must be held no more than 45 days after the notice is sent. Notices were
mailed on June 30, 2016. The resolution is planned to come back in front of the City
Commission on September 13, 2016. The NEZ will only affect the residential component
of the project.
The City is allowed to designate up to 15% of its total area as NEZ designations, which
calculates out to 2.802 square miles. We currently have 2.0604 square miles designated
as NEZ districts. This new district (0.015 square miles) along with the proposed district at
Terrace Plaza (0.0008 square miles) would only add 0.0158 square miles for an overall
total of 2.0762 square miles of designated NEZ districts in the City.
Commission Meeting Date: July 12, 2016
Date: July 5, 2016
To: Honorable Mayor and City Commissioners
From: Planning & Economic Development
RE: Public Hearing - Request to Establish an Obsolete Property
District – 920 Washington Ave
SUMMARY OF REQUEST:
Pursuant to Public Act 146 of the Michigan Public Acts of 2000, P&G Holdings NY,
LLC, has requested the establishment of an Obsolete Property District for their property
at 920 Washington Ave. The establishment of the Obsolete Property District would
allow them to apply for an Obsolete Property Rehabilitation Exemption Certificate.
FINANCIAL IMPACT:
None
BUDGET ACTION REQUIRED:
None
STAFF RECOMMENDATION:
Staff recommends approval of the Obsolete Property District
COMMITTEE RECOMMENDATION:
None.
1
CITY OF MUSKEGON
MUSKEGON COUNTY, MICHIGAN
RESOLUTION NO. _____
A resolution establishing an Obsolete Property Rehabilitation District.
The City Commission of the City of Muskegon hereby RESOLVES:
Recitals
A. The City of Muskegon has been designated as a qualified local government unit for the purpose
of establishing Obsolete Property Rehabilitation Districts and approving Applications for Obsolete
Property Rehabilitation Exemption Certificates.
B. The area located in the land described in this resolution is known to the City Commission and is
clearly characterized by the presence of obsolete commercial property, and the land and
improvements are obsolete commercial property.
C. Notice has been given by certified mail to the owners of all real property within the proposed
Obsolete Property Rehabilitation District and a hearing has been held offering an opportunity to
all owners and any other resident or taxpayer of the City to appear and be heard. Said notice
was given at least ten (10) days before the hearing.
NOW, THEREFORE, THE CITY COMMISSION RESOLVES:
1. That the property described in this resolution and proposed as an Obsolete Property
Rehabilitation District is characterized by obsolete commercial property.
2. That the obsolete commercial property, the subject of this resolution, as is described in
Attachment A.
3. That the City Commission hereby establishes an Obsolete Property Rehabilitation District on the
lands and parcels set forth in the attached description.
This resolution passed.
Ayes __________________________________________________________________
Nays __________________________________________________________________
CITY OF MUSKEGON
BY: __________________________________
Stephen J. Gawron
Mayor
ATTEST: __________________________________
Ann Meisch
Clerk
CERTIFICATION
This resolution was adopted at a meeting of the City Commission, held on July 12, 2016. The
meeting was properly held and noticed pursuant to the Open Meetings Act of the State of Michigan, Act
267 of the Public Acts of 1976.
CITY OF MUSKEGON
By ___________________________
Ann Meisch, City Clerk
ATTACHMENT A: PROPERTY DESCRIPTION
CITY OF MUSKEGON REVISED PLAT 1903 PT OF BLKS 467 AND 468 AND ENTIRE BLK 474
TOGETHER WITH PT OF THE C & O RR R/W IN SD BLK 467 VAC MICHIGAN AVE BET SD
BLKS 467 & 474 THE 2 VAC ALLEYS IN SD BLK 474 DESC AS BEG ON THE N R/W LN OF
MICHIGAN AVE AT A POINT BEING N 89D 48M 11S E 549.04 FT FROM THE SW COR OF SD
BLK 468 TH N 02D 11M 01S E 7.87 FT TH S 87D 51M 37S E 111.67 FT ALG SLY LN OF A 5 STY
BLDG TH N 02D 23M 08S E 85.09 FT ALG E SIDE OF A 4 IN WALL TH S 87D 48M 59S E 28.01
FT ALG NLY LN OF SD 5 STY BLDG TH N 02D 11M 01S E 21.28 FT ALG SD BLDG TH N 88D
38M 32S W 12.93 FT ALG SD BLDG LN TH N 00D 42M 58S E 57.92 FT ALG SD BLDG LN TH
S88D 25M 41S E 8.43 FT ALG SD BLDG LN TH N 88D 25M 41S W 0.40 FT ALG SD BLDG LN TH
N 01D 34M 19S E 0.30 FT ALG SD BLDG LN TH N 88D 25M 41S W 8.72 FT ALG SD BLDG LN
TH N 00D 30M 20S E 24.63 FT TH N 82D 30M 04S W 8.71 FT TH S 00D 30M 20S W 9.53 FT TH
N 83D 24M 04S W 13.72 FT ALG SD 5 STY BLDG LN TH N 09D 23M 07S E 9.68 FT ALG SD 5
STY BLDG LN TH N 82D 30M 04S W 112.12 FT ALG SD BLDG LN & THE EXTENSION TH'OF
TH N 07D 28M 33S E 75.55 FT ALG SD BLDG LN & THE EXTENSION TH'OF TH S 82D 42M 42S
E 474.11 FT ALG THE SLY R/W LN OF WESTERN AVE
Commission Meeting Date: July 12, 2016
Date: July 5, 2016
To: Honorable Mayor and City Commissioners
From: Planning & Economic Development
RE: Public Hearing - Request to issue an Obsolete Property
Certificate –P&G Holdings NY, LLC– 920 Washington Ave
SUMMARY OF REQUEST:
Pursuant to Public Act 146 of the Michigan Public Acts of 2000, P&G Holdings NY, LLC,
has requested the issuance of an Obsolete Property Certificate for their property located at
920 Washington Ave. Total capital investment for this project is estimated at $13,000,000.
The applicant is eligible for a 12-year abatement because of the amount of investment.
FINANCIAL IMPACT:
If an Obsolete Property Certificate is issued, the property taxes would be frozen at the pre-
rehabilitated rate for the duration of the certificate.
BUDGET ACTION REQUIRED:
None
STAFF RECOMMENDATION:
Staff recommends approval of the Obsolete Property Rehabilitation Exemption Certificate
COMMITTEE RECOMMENDATION:
None
CITY OF MUSKEGON
MUSKEGON COUNTY, MICHIGAN
RESOLUTION NO. ________
A resolution approving the application for an Obsolete Property Rehabilitation Exemption Certificate by P&G
Holdings NY, LLC.
The City Commission of the City of Muskegon hereby RESOLVES:
Recitals
A. The City Commission has received an Application for an Obsolete Property Rehabilitation Exemption
Certificate from P&G Holdings NY, LLC, to apply to the improvements located in an Obsolete
Property Rehabilitation District established by previous resolution. All items described under
“Instructions” (a) through (f) of the application for Obsolete Property Rehabilitation Exemption
Certificate have been provided to the City of Muskegon, the Qualified Local Government Unit,
by the applicant.
B. The City of Muskegon is a qualified local governmental unit as determined by STC Bulletin No. 9 of
2000, dated July 12, 2000.
C. An Obsolete Property Rehabilitation District in which the application property is located was
established after a hearing on July 12, 2016.
D. The taxable value of the property proposed to be exempt, plus the aggregate taxable value of
properties already exempted under PA 146 of 2000 and under PA 198 of 1974, does not exceed five
percent (5%) of the total taxable value of the City of Muskegon.
E. In the event it is determined that the said taxable values do exceed five percent (5%), the City
Commission determines further that the said excedence will not have the effect of substantially
impeding the operation of the City of Muskegon or impairing the financial soundness of any affected
taxing units.
F. This resolution of approval is considered by the City Commission on July 12, 2016, after a public
hearing as provided in Section 4(2) of PA 146 of 2000. The hearing was held on this date.
G. The applicant, P&G Holdings NY, LLC, is not delinquent any taxes related to the facility.
H. The exemption to be granted by this resolution is for twelve (12) years.
I. The City Commission finds that the property for which the Obsolete Property Rehabilitation
Exemption Certificate is sought is obsolete property within the meaning of Section 2(h) of Public Act
146 of 2000 in that the property, which is commercial, is functionally obsolete. The City has received
from the applicant all the items required by Section 9 of the application form, being the general
description of the obsolete facility, a general description of the proposed use, a description of the
general nature and extent of the rehabilitation to be undertaken, a descriptive list of fixed building
equipment that will be part of the rehabilitated facility, a time schedule for undertaking and complete
the rehabilitation, and statement of the economic advantages expected from the exemption.
J. Commencement of the rehabilitation has not occurred before the establishment of the district.
K. The application relates to a rehabilitation program that when completed will constitute a rehabilitated
within the meaning of PA 146 of 2000 and will be situated within the Obsolete Property Rehabilitation
District established by the City under PA 146 of 2000.
L. Completion of the rehabilitated facility is calculated to and will, at the time of the issuance of the
Certificate, have the reasonable likelihood to increase commercial activity and create employment; it
will revitalize an urban area. The rehabilitation will include improvements aggregating more than ten
percent (10%) of the true cash value of the property at the commencement of the rehabilitation.
M. The City Commission determines that the applicant shall have twenty-four (24) months to complete
the rehabilitation. It shall be completed by July 12, 2018, or two years after the Certificate is issued,
whichever occurs later.
N. That notice pursuant to statute has been timely given to the applicant, the assessor for the City of
Muskegon, representatives of the affected taxing units and the general public.
NOW, THEREFORE, THE CITY COMMISSION RESOLVES:
1. Based upon the statements set forth in, and incorporating the recitals to this resolution, the City
Commission hereby approves the application filed by P&G Holdings NY, LLC, for an Obsolete
Property Rehabilitation Exemption Certificate, to be effective for a period of twelve (12) years;
2. BE IT FURTHER RESOLVED, that this resolution of approval relates to the property set forth in
Attachment A, the legal description containing the facilities to be improved;
3. BE IT FURTHER RESOLVED, that, as further condition of this approval, the applicant shall comply
with the representations and conditions set forth in the recitals above and in the application material
submitted to the City.
This resolution passed.
Ayes: __________________________________________________________________
Nays: __________________________________________________________________
CITY OF MUSKEGON
BY: __________________________________
Stephen J. Gawron
Mayor
ATTEST: __________________________________
Ann Meisch
Clerk
CERTIFICATE
This resolution was adopted at a meeting of the City Commission held on July 12, 2016. The meeting was
properly held and noticed pursuant to the Open Meetings Act of the State of Michigan, Act 267 of the Public
Acts of 1976.
CITY OF MUSKEGON
By ___________________________
Ann Meisch, City Clerk
ATTACHMENT A: PROPERTY DESCRIPTION
CITY OF MUSKEGON REVISED PLAT 1903 PT OF BLKS 467 AND 468 AND ENTIRE BLK 474
TOGETHER WITH PT OF THE C & O RR R/W IN SD BLK 467 VAC MICHIGAN AVE BET SD BLKS
467 & 474 THE 2 VAC ALLEYS IN SD BLK 474 DESC AS BEG ON THE N R/W LN OF MICHIGAN
AVE AT A POINT BEING N 89D 48M 11S E 549.04 FT FROM THE SW COR OF SD BLK 468 TH N
02D 11M 01S E 7.87 FT TH S 87D 51M 37S E 111.67 FT ALG SLY LN OF A 5 STY BLDG TH N 02D
23M 08S E 85.09 FT ALG E SIDE OF A 4 IN WALL TH S 87D 48M 59S E 28.01 FT ALG NLY LN OF
SD 5 STY BLDG TH N 02D 11M 01S E 21.28 FT ALG SD BLDG TH N 88D 38M 32S W 12.93 FT ALG
SD BLDG LN TH N 00D 42M 58S E 57.92 FT ALG SD BLDG LN TH S88D 25M 41S E 8.43 FT ALG
SD BLDG LN TH N 88D 25M 41S W 0.40 FT ALG SD BLDG LN TH N 01D 34M 19S E 0.30 FT ALG
SD BLDG LN TH N 88D 25M 41S W 8.72 FT ALG SD BLDG LN TH N 00D 30M 20S E 24.63 FT TH N
82D 30M 04S W 8.71 FT TH S 00D 30M 20S W 9.53 FT TH N 83D 24M 04S W 13.72 FT ALG SD 5
STY BLDG LN TH N 09D 23M 07S E 9.68 FT ALG SD 5 STY BLDG LN TH N 82D 30M 04S W 112.12
FT ALG SD BLDG LN & THE EXTENSION TH'OF TH N 07D 28M 33S E 75.55 FT ALG SD BLDG LN
& THE EXTENSION TH'OF TH S 82D 42M 42S E 474.11 FT ALG THE SLY R/W LN OF WESTERN
AVE
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