View the PDF version Google Docs PDF Viewer
CITY OF MUSKEGON
CITY COMMISSION MEETING
MARCH 14, 2017
CITY COMMISSION CHAMBERS @ 5:30 P.M.
AGENDA
□ CALL TO ORDER:
□ PRAYER:
□ PLEDGE OF ALLEGIANCE:
□ ROLL CALL:
□ HONORS AND AWARDS:
□ INTRODUCTIONS/PRESENTATION:
A. Designation of Pine Street from Apple Avenue to Muskegon Avenue
□ CITY MANAGER’S REPORT:
□ CONSENT AGENDA:
A. Approval of Minutes City Clerk
B. Audit Contract Extension Finance
C. Development and Reimbursement Agreement for Construction of Dock
at Fisherman’s Landing Finance
D. Summer Youth Park Program Recreation Program Proposal – Boys and
Girls Club of Muskegon Planning & Economic Development
E. Source Water Protection Plan Agreements; Grant & Engineering Water
Filtration Plant
F. PILOT – Ordinance Amendment Planning & Economic Development
G. PILOT – Muskegon Redevelopment Limited Dividend Housing
Association (Core Financial – Amazon) Planning & Economic
Development
□ PUBLIC HEARINGS:
A. Recommendation for Annual Renewal of Liquor Licenses City Clerk
B. Public Hearing – Establishment of a Commercial Redevelopment
District – 1205 Peck Street Planning & Economic Development
C. Public Hearing – Issuance of a Commercial Facilities Exemption
Certificate – 1205 Peck LLC Planning & Economic Development
Page 1 of 2
□ COMMUNICATIONS:
□ UNFINISHED BUSINESS:
□ NEW BUSINESS:
A. Concurrence with the Housing Board of Appeals Notice and Order to
Demolish Public Safety
1153 Pine
1451 Park
B. Arena Proposal – Rad Dad’s City Manager
C. Letter of Intent for Loan Planning & Economic Development
□ 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.
Page 2 of 2
AGENDA ITEM NO. _
To: Honorable Mayor and City Commissioners
From: DPW
Date: March 13, 2017
Subject: Designation of Pine Street from Apple to Muskegon Avenue
SUMMARY OF REQUEST
A request was received to designate the section of Pine Street between Apple &
Muskegon as Bill Gill Way in recognition of Mr. Gill’s long and dedicated service to the
Muskegon community through his long and dedicated service on the Muskegon County
Board of Commissioners and community services.
FINANCIAL IMPACT
None
BUDGET ACTION REQUIRED
None
RECOMMENDATION
None. However if approved the sign designation would be placed on top of existing street
name signs thus not impacting any addresses.
RESOLUTION # 2017- _________
MUSKEGON CITY COMMISSION
RESOLUTION TO DESIGNATE A SECTION OF PINE STREET
WHEREAS, the City received a request to designate the section of Pine street between Apple
Avenue & Muskegon Avenue as Bill Gill Way; and
WHEREAS, Bill Gill was born in Muskegon, was an army veteran, served as a great champion
for Civil and Human Rights, marched with members of the National Organization of Women to
support efforts to support their right to vote in Springfield, IL, and served as County
Commissioner of Muskegon for 22 years; and
WHEREAS, Bill Gill became a member of the NAACP at the age of 13. He served as a member
of the Muskegon Branch 3147 for 71 years, 22 of those years he served as President of the
branch; and
WHEREAS, the Muskegon community wishes to honor and recognize Mr. Gill’s contribution to
the area; and
WHEREAS, this segment of Pine was chosen to depict where Mr. Gill spent so many years at the
County building serving the greater Muskegon community; and
WHEREAS, the City Commission met on the 13th day of M a r c h , 2017 at 5:30 p.m. to consider
this request;
NOW, THEREFORE, BE IT RESOLVED that the City Commission hereby approve the request to
designate that section of Pine Street between Apple Avenue & Muskegon Avenue as Bill Gill Way.
Ayes:
Nays:
Absent:
This resolution declared adopted this 13th day of March 2017.
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 March 13, 2017.
___________________________________________
Mayor, Stephen J. Gawron
___________________________________________
City Clerk, Ann Marie Meisch
Memorandum
To: Mayor and Commissioners
From: Frank Peterson
Re: City Commission Meeting
Date: March 9, 2017
Here is a quick outline of the items on our agenda(s):
WORK SESSION
1. We will consider an incentive/financing package for the planned development at Unit 7,
which is commonly identified as the downtown volleyball lot. The developers will be on
hand to discuss the project. If we are in agreement with the incentive package, we will
add it to the Tuesday Agenda, as formal approval is needed to finalize the project’s
financing and get the project to an official start date this Spring.
2. We will discuss the potential of a 5-year PILOT Agreement for the Amazon Building as the
new owners look to make certain investments in the building in an effort to make the
development much more of an asset to our downtown.
3. We will discuss the initial terms of a proposal to lease space on the LC Walker Arena
concourse to operate a bar/restaurant, as well as to manage the arena’s concessions.
There are a number of legal agreements that would need to be drafted and executed, but
having the commission’s support on the initial terms will be important before we expend
resources in drafting those documents.
4. Clerk’s Office staff will discuss items related to polling locations. We are looking to
consolidate some locations to reduce the burden on our schools, which serve as polling
locations in many precincts.
5. We’ll discuss some potential changes to rules and fees at the Farmers Market.
6. We’ll discuss the potential of designating Pine Street from Apple Ave to Muskegon Ave in
honor of Bill Gill. Vice Mayor Hood will take the lead on this one.
7. Under other business, I’ll take a few moments to go over any questions/concerns that
Commissioners may have on the regular meeting agenda.
REGULAR MEETING
1. Under Honors and Awards we will formally designate a section of Pine Street in honor of
Bill Gill.
2. Under the consent agenda, we are asking the Commission for approval of the following:
a. Last meeting’s minutes.
b. An extension of our current auditing services contract with Brickley DeLong, a
downtown Muskegon-based company.
c. Development and reimbursement agreement for the construction of new ADA
accessible docks at Fisherman’s Landing. The total cost of the docks will be $160,000.
The Fisherman’s Landing group will pay the first $60,000 and the city will fund the
remaining $100,000 in the form of a loan. The loan will be repaid over a 10 year
period. Loan proceeds will be paid from the City’s Revolving Loan Fund.
d. Summer Youth Recreational Program Proposal by the Boy and Girls Club.
e. Source Water Protection Plan Agreements for grant and engineering. We have been
awarded this grant and are asking permission to accept the grant and work with the
engineering company that procured the grant on our behalf. The grant is designed
to help protect our drinking water intake in Lake Michigan.
f. Amendment to our PILOT Ordinance to allow PILOTs agreements at 3%. This will
allows flexibility to require additional city service fees on these projects.
g. PILOT Agreement for the Amazon Apartments. The agreement would call for a 5 year
PILOT period with a 3% PILOT and a 3% city service fee. The short-term nature of the
PILOT requests stems from the expectation that the cash flow it helps create over
the 5-years will help cover the costs of making needed improvements/upgrades at
the facility.
3. Under Public Hearings:
a. We will recommend annual liquor license approvals. I believe that by the time the
meeting takes place, all current license holders will be in compliance with all
requirements for renewal.
b. Establishment of a Commercial Rehabilitation District at 1205 Peck Street. The
owner is planning improvements to the structure to provide offices. The offices
would services people with certain disabilities.
c. Issue the certificate associated with the district creates at 1205 Peck Street
4. Under new business, we will be asking the Commission to approve the following:
a. Concurrence with the Housing Board of Appeals Notice and Order to Demolish
1153 Pine and 1451 Park.
b. Rad Dad’s Lease Proposal. This proposal is to lease space on the arena concourse
to operate Rad Dad’s Tacos and Tequila, as well as negotiate a management
agreement to operate the arena’s concessions.
Let me know if you have any questions/comments/concerns
Date: March 7, 2017
To: Honorable Mayor and City Commissioners
From: Ann Marie Meisch, City Clerk
RE: Approval of Minutes
SUMMARY OF REQUEST: To approve minutes of the February 28, 2017
Regular City Commission Meetings.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval of the minutes.
CITY OF MUSKEGON
CITY COMMISSION MEETING
FEBRUARY 28, 2017
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, February 28, 2017. Pastor
Wally Reames, Central Assembly of God, 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 J. Gawron, Vice Mayor Hood, Commissioners Ken
Johnson, Debra Warren, Willie German, Jr., Dan Rinsema-Sybenga, and Byron
Turnquist, City Manager Franklin Peterson, City Attorney John Schrier, and City
Clerk Ann Meisch.
2017-13 CONSENT AGENDA:
A. Approval of Minutes City Clerk
SUMMARY OF REQUEST: To approve the minutes of the February 13, 2017
Worksession and the February 14, 2017 Regular City Commission Meetings.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Approval of minutes.
D. 2017 Dozer Rental for Beach Leveling Department of Public Works
SUMMARY OF REQUEST: Staff is requesting permission to enter into a rental
agreement with Southeastern Equipment Co. Inc., out of Novi, MI for a Case
2050 M Dozer for leveling sand at Pere Marquette Beach.
FINANCIAL IMPACT: Estimated cost for the 2017 Dozer rental is $8,500 (which
included $1000 for delivery and pickup).
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Approve request.
E. Buekema Park Roof Materials DPW/Parks Department
SUMMARY OF REQUEST: Authorize staff to purchase roofing material to
reconstruct the restroom building roof and repair two other smaller building roofs
on the property. Work will be performed in house by Parks Staff.
Page 1 of 9
FINANCIAL IMPACT: The total cost of this purchase is $13,535.64 from Keene
Lumber being the responsible low bidder. (Rycenga Building Center $16,792.23,
Weber Lumber $24,398.24)
BUDGET ACTION REQUIRED: None at this time as this proposed purchase was
budgeted for.
STAFF RECOMMENDATION: Authorize staff to purchase the roof materials.
F. One Year Janitorial Services Extension, Optional Year through
4/30/2018 Engineering
SUMMARY OF REQUEST: Extend the current janitorial services contract with
Reliant Professional Cleaning for one more year, thru the end of April 2018, as
per the request from the company.
FINANCIAL IMPACT: The total annual cost of the proposed extension to
clean City Hall, P.D., DPW & Filtration Plant is $62,316 which is an increase of
$1,308 or just over 2.1%.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Approve the one year extension with Reliant
Professional Cleaning Services to provide janitorial services until the end of April
of 2018, at City Hall, DPW & Filtration.
G. Contract Extension Agreement – 1 Year Street Sweeping Contract for
2017 Department of Public Works
SUMMARY OF REQUEST: To exercise the option for a 1-year contractual
extension, as outlined in the previous 3-year contract with TRI-US SERVICES, INC.,
to provide street sweeping services for 2017.
FINANCIAL IMPACT: $202,135.50 cost for the 1 year contract extension.
Funds to cover all expenses are budgeted. Trunkline expenses are reimbursed by
State funding.
BUDGET ACTION REQUIRED: None; monies appropriated in Highway and
State trunkline budgets.
STAFF RECOMMENDATION: Approve request to contract out service for a
1-year extension as specified in previous contract.
I. Copier/Printer Maintenance Agreement Assistant Finance Director
SUMMARY OF REQUEST: The City just ended a five year contract with Applied
Imaging for document management. The City paid a fixed price each month
for the copiers and printers and a per copy cost for the maintenance which
included toner. Almost all the larger copiers are well under their lifetime
maximums and do not need to be replaced. In negotiating a new maintenance
agreement with Applied Imaging we discovered through Applied Imaging’s
Page 2 of 9
MITN Cooperative we could save several hundred dollars a month if we bought
new, more maintenance effective printers. We are proposing to purchase 40
new copiers/printers that will represent a savings of approximately $250 per
month over the cost of maintenance alone for our current fleet. We have been
pleased with our relationship with Applied Imaging and look forward to that
continuing. Additionally, we own the old printers so we will be selling those units
which should help to offset some of the cost of the new equipment.
FINANCIAL IMPACT: Savings of approximately $250 per month over the
current cost of maintenance.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Authorize staff to enter into a five year
agreement with Applied Imaging.
J. Contract for Demolition at 239 Monroe Avenue Community and
Neighborhood Services Department
SUMMARY OF REQUEST: To approve for Community and Neighborhood Services
to execute a contract with Melching, Inc., Nunica MI, for the demolition of the
structure located at 239 Monroe Avenue. This activity is under the Target
Neighborhood Blight Fight Program. The following bids were received:
JMB Demoliton LLC ~ Zeeland MI for $9,250
Melching, Inc ~ Nunica, MI for $8,600
FINANCIAL IMPACT: The funding will be allocated from the City’s CDBG
Funds.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To approve the request.
K. Set Public Hearing for Amendment to Brownfield Plan – Windward
Pointe Planning & Economic Development Department
SUMMARY OF REQUEST: To approve the resolution setting a public hearing for
an amendment for the Brownfield Plan, and notifying taxing jurisdictions of the
Brownfield Plan Amendment including the opportunity to express their views and
recommendations regarding the proposed amendment at the public hearing.
The amendment is for the inclusion of property owned by Pure Muskegon,
located at 2400 Lakeshore Drive, in the Brownfield Plan.
FINANCIAL IMPACT: Brownfield Tax increment Financing will be used to
reimburse the developer for “eligible expenses” incurred in association with
development of the Watermark project, which is approximately $44,863,763.
Pure Muskegon cost for the development of the property is approximately $200
million in private investment, resulting in substantial increase in the local and
school taxes generated by the property.
Page 3 of 9
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To approve the resolution and authorize the
Mayor and Clerk to sign the resolution.
COMMITTEE RECOMMENDATION: The Brownfield Redevelopment Authority
met on February 16, 2017 and approve the Brownfield Plan Amendment and
recommends the approval of the Brownfield Plan Amendment to the Muskegon
City Commission.
L. Defined Benefit Plan Adoption Agreements – Div 01(Non-Union) and Div
21 (Police Patrol) Finance
SUMMARY OF REQUEST: To approve the Defined Benefit Plan Adoption
Agreements to bridge the pension benefit for current non-union employees from
a 2.25% multiplier to a 2.0% multiplier with frozen final average compensation
and to bridge the pension benefit for current police patrol employees from a
3.0% multiplier to a 2.67% multiplier with frozen final average compensation.
FINANCIAL IMPACT: It is estimated that the City’s contribution rate for non-
union would decrease by $196,284 while the City’s contribution rate for police
patrol would decrease by $328,399 for the next fiscal year.
BUDGET ACTION REQUIRED: Future budgets will be reflective of these
changes.
STAFF RECOMMENDATION: To approve the Defined Benefit Plan Adoption
Agreements and authorize the Mayor to sign the agreements.
Motion by Commissioner Rinsema-Sybenga, second by Commissioner Johnson,
to approve the consent agenda as presented, minus items B, C, and H.
ROLL VOTE: Ayes: Johnson, Gawron, Hood, Warren, German, Rinsema-Sybenga,
and Turnquist
Nays: None
MOTION PASSES
2017-14 ITEMS REMOVED FROM THE CONSENT AGENDA:
B. Approval of Resolution to Apply for State Grant to Purchase New Voting
Equipment City Clerk
SUMMARY OF REQUEST: To approve a Resolution to Apply for State Grant to
Purchase New Voting Equipment. All municipalities in the State of Michigan are
in the process of obtaining new voting equipment. Most or all of the cost will be
covered by Federal Help America Vote Act funds and state-appropriated funds.
The State requires the City to apply for a grant in order to be eligible for state
funding assistance.
FINANCIAL IMPACT: None
Page 4 of 9
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Approval of the resolution.
Motion by Commissioner Johnson, second by Commissioner German, to
approve the resolution.
ROLL VOTE: Ayes: Gawron, Hood, Warren, German, Rinsema-Sybenga,
Turnquist, and Johnson
Nays: None
MOTION PASSES
C. Approval of Resolution in Support of Naming Third Street from
Muskegon to Mason City Clerk
SUMMARY OF REQUEST: To approve a Resolution in Support of Designating Third
Street from Muskegon to Mason as Midtown Muskegon.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Approval of the resolution.
Motion by Commissioner German, second by Commissioner Warren, to approve
the resolution.
Motion to amend the resolution to read from Muskegon to Jefferson instead of
from Muskegon to Strong.
ROLL VOTE: Ayes: Warren, German, Rinsema-Sybenga, Turnquist, Johnson,
Gawron, and Hood
Nays: None
MOTION PASSES
VOTE ON ORIGINAL MOTION
ROLL VOTE: Ayes: Hood, Warren, German, Rinsema-Sybenga, Turnquist,
Johnson, and Gawron
Nays: None
MOTION PASSES
H. Lake Michigan Sandy Dog 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 Jeff Taylor & Michelle Sharpy of Lake Michigan
Sandy Dog, at Pere Marquette Park, located within the City of Muskegon, to sell
various food items, as stated in their proposal, from a mobile concession trailer.
FINANCIAL IMPACT: Concession revenue is 10% of gross receipts.
Page 5 of 9
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Authorize DPW staff to enter into concession
agreement with Jeff Taylor and Michelle Sharpy of Lake Michigan Sandy Dog.
Motion by Commissioner Warren, second by Commissioner Rinsema-Sybenga,
to authorize DPW Staff to enter into a concession agreement with Jeff Taylor and
Michelle Sharpy of Lake Michigan Sandy Dog.
ROLL VOTE: Ayes: German, Rinsema-Sybenga, Turnquist, Johnson, Gawron,
Hood, and Warren
Nays: None
MOTION PASSES
2017-15 PUBLIC HEARINGS:
A. Parks & Recreation Master Plan Amendment Department of Public
Works
SUMMARY OF REQUEST: To approve a resolution amending the Parks and
Recreation Master Plan to include updating infrastructure at Hartshorn Marina.
The Michigan Department of Natural Resources requires specific language and
proposals before the city is eligible to apply for state matching grants.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To hold a public hearing and for the City
Commission to adopt the “Muskegon Parks & Recreation Master Plan 2016”
Hartshorn Marina amendments for 2017, and authorize Mayor and Clerk to sign
documents necessary related to the amendments.
PUBLIC HEARING COMMENCED: No public comments were received.
Motion by Commissioner Rinsema-Sybenga, second by Commissioner Warren,
to close the public hearing and to adopt the “Muskegon Parks & Recreation
Master Plan 2016” Hartshorn Marina amendments for 2017, and authorize the
Mayor & Clerk to sign documents necessary related to the amendments.
ROLL VOTE: Ayes: Rinsema-Sybenga, Turnquist, Johnson, Gawron, Hood, Warren,
and German
Nays: None
MOTION PASSES
2017-16 NEW BUSINESS:
A. Concurrence with the Housing Board of Appeals Notice and Order to
Demolish Sixteen Residential Structures Director of Public Safety
SUMMARY OF REQUEST: This is to request that the City Commission concur with
Page 6 of 9
the findings of the Housing Board of Appeals that the following structures are
unsafe, substandard, a public nuisance and that they be demolished.
Address State Equalized Value
1. 862 Stevens $13,500 (2015) & $0 (2016)
2. 139 Myrtle $9,800 (2015) & $0 (2016)
3. 325 Iona $8,100 (2015) & $0 (2016)
4. 333 Catherine $12,500 (2015) & $0 (2016)
5. 430 Allen $10,800 (2015) & $0 (2016)
6. 452 Amity $16,300 (2015) & $0 (2016)
7. 1773 Superior $14,500 (2015) & $0 (2016)
8. 367 E. Holbrook $22,300 (2016)
9. 1725 Wood $11,400 (2016)
10. 1617 Smith $19,000 (2016)
11. 252 E. Isabella $12,500 (2016)
12. 618 Catawba $14,300 (2016)
13. 748 Catherine $13,700 (2016)
14. 501 E. Apple $22,300 (2016)
15. 629 Allen $14,500 (2016)
16. 750 Amity $20,000 (2016)
The properties are owned by the Muskegon County Land Bank and/or the
Muskegon County Treasurer (which will be deeded to the Muskegon County
Land Bank as part of the Hardest Hit 2 Blight Fight Grant that they were
awarded). The properties with $0 SEV for 2016 has the SEV from 2015 included as
those had been tax foreclosed in 2015 with the remainder being foreclosed in
2016.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To concur with the Housing Board of Appeals
decision to demolish.
Motion by Commissioner German, second by Commissioner Warren, to concur
with the Housing Board of Appeals decision to demolish.
ROLL VOTE: Ayes: Turnquist, Johnson, Gawron, Hood, Warren, German, and
Rinsema-Sybenga
Nays: None
MOTION PASSES
Page 7 of 9
B. Sale of a Non-Buildable Vacant Lot in the Port City Industrial Park
Planning & Economic Development Department
SUMMARY OF REQUEST: To approve the land purchase agreement for the sale
for the unaddressed property to Marathon Petroleum Company LP. In order to
meet Michigan Department of Environmental Quality (MDEQ) requirements, the
company needs to perform wetland mitigation on 16.1 acres of land for
activities pertaining to another site outside of the City. The City has over 57 acres
of undevelopable land in the Industrial Park and is able to carve out 28.4 acres
to sell. The property is considered unbuildable because it is located under the
ordinary high water mark and is considered wetlands. The company has agreed
to the purchase price of $100,000. If the purchase agreement is approved, the
company will have 45 days to secure final approval by senior management,
upon which this offer is contingent. Upon final approval by the company, an
earnest money deposit of $10,000 will be placed in escrow and they will begin
all necessary investigations such as survey, title and environmental. Closing will
also be contingent upon acceptance/approval of the site by the MDEQ and
completion by the City of the parcel split/combination.
FINANCIAL IMPACT: The sale of this lot will generate additional tax revenue
for the City as the property will be put back on the City’s tax rolls.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To authorize the Mayor and City Clerk to sign the
Land Purchase Agreement.
Motion by Commissioner Rinsema-Sybenga, second by Vice Mayor Hood, to
authorize the Mayor and City Clerk to sign the Land Purchase Agreement.
ROLL VOTE: Ayes: Johnson, Gawron, Hood, Warren, German, Rinsema-Sybenga,
and Turnquist
Nays: None
MOTION PASSES
C. Second Quarter 2016-17 Budget Reforecast Finance Director
SUMMARY OF REQUEST: At this time staff is transmitting the Second Quarter
2016-17 Budget Reforecast which outlines proposed changes to the budget that
have come about as result of changes in revenue projections, policy priorities,
labor contracts, updated economic conditions, or other factors.
FINANCIAL IMPACT: A summary of second quarter proposed adjustments to
the budget are as follows:
• General Fund revenues are reforecast to be $284,000 lower than the
first quarter budget reforecast, largely due to lower projected income
tax revenues.
Page 8 of 9
• General Fund expenditures are reforecast to be $86,000 higher than
the first quarter budget reforecast.
• There is some refinement of the capital projects budget resulting in an
overall net decrease of $445,000 from the first quarter budget
reforecast due to the removal of $500,000 for the marina docks and
building improvements project in the Marina Fund. However, in the
General Fund $25,000 has been added for roof repairs at LC Walker
Arena and $30,000 has been added for a project to wash and seal the
City Hall building.
BUDGET ACTION REQUIRED: City Commission approval of this reforecast will
formally amend the City’s 2016-17 budget.
STAFF RECOMMENDATION: Approval
Motion by Commissioner Warren, second by Commissioner Rinsema-Sybenga,
to approve the Second Quarter Budget Reforecast for 2016-17.
ROLL VOTE: Ayes: Gawron, Hood, Warren, German, Rinsema-Sybenga, Turnquist,
and Johnson
Nays: None
MOTION PASSES
D. Concur with the Muskegon County Clerk’s Association’s
Recommendation to Select Dominion as the Election Equipment
Vendor
On this 28th day of February, 2017, a motion was made by Commissioner
Johnson and seconded by Commissioner German to concur with the Muskegon
County Clerk’s Association’s recommendation made by a vote of 13-1 at its
February 21, 2017 meeting, that the Muskegon County Clerk, Nancy A. Waters,
select Dominion as the election equipment vendor for the municipalities of
Muskegon County.
AYES: Hood, Warren, German, Rinsema-Sybenga, Turnquist,
Johnson, and Gawron
NAYS: None
MOTION PASSES
PUBLIC PARTICIPATION: No public comments were received.
ADJOURNMENT: The City Commission meeting was adjourned at 6:35 p.m.
Respectfully Submitted,
Ann Marie Meisch, MMC, City Clerk
Page 9 of 9
Commission Meeting Date: March 14, 2017
Date: March 6, 2017
To: Honorable Mayor and City Commissioners
From: Finance
RE: Audit Contract Extension
____________________________________________________________________________
SUMMARY OF REQUEST: The City recently completed its contract for audit
services with Brickley DeLong. The firm has approached the City with a proposal to
extend the contract for five years. This proposal includes fees at the same rate for
the 2017 audit as was charged for the 2016 audit. There is a 2% increase each year
for the 2018 and 2019 audits, followed by an increase of 3% each year for the 2020
and 2021 audits.
The City has had a successful relationship with Brickley for a number of years and
has enjoyed a smooth and efficient annual audit process. With current staff levels
and increased demands on staff time, we believe it is prudent to continue this
relationship. Additionally, Brickley is a major downtown employer and the only CPA
firm located in the City qualified to perform our audit with a significant presence in the
governmental auditing field.
FINANCIAL IMPACT:
Fiscal Year 2016 2017 2018 2019 2020 2021
Previous Fee $36,550 - - - - -
Proposed Fee - $36,550 $37,280 $38,025 $39,165 $40,340
BUDGET ACTION REQUIRED: Future budgets will include the amounts
shown above.
STAFF RECOMMENDATION: Approval.
Commission Meeting Date: March 14, 2017
Date: March 6, 2017
To: Honorable Mayor and City Commissioners
From: Finance
RE: Development and Reimbursement Agreement for
Construction of Dock at Fisherman’s Landing
SUMMARY OF REQUEST: To approve a development and reimbursement
agreement between the City and Fisherman’s Landing, Inc. The agreement will
enable construction of a new dock at Fisherman’s Landing and provides for
Fisherman’s Landing, Inc. to reimburse the City for $100,000 of the construction
costs as a loan.
FINANCIAL IMPACT: $100,000 loan from the City’s Revolving Loan Fund to
Fisherman’s Landing, Inc.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To approve the attached agreement.
Equity Marine Construction LLC
Dale TenBrink
14788 Boom Road
Spring Lake, MI 49456
Phone: 616-847-2482
equitymarine@att.net
February 16, 2017
CLIENT: Fisherman’s Landing
Kevin Wright
501 E. Western Ave.
Muskegon, MI 49443
Project Site: SAME
CONTRACT PROPOSAL
Equity Marine Construction (EMC) has visited the project site consulted with the owner
as to his specifications and has developed the following itemized proposal:
SCOPE OF WORK:
Dock:
1. Supply and install 400’ X 5’ steel frame dock, 2 X 8 treated decking and
supported by thirty eight 5’ X 8’ dock floats by Premier.
2. Supply and install 400’ of D-shape rub rail along entire length of dock with
twenty four tie off cleats.
3. Dock to be held in position with ten 30’ – 40’ X 10” pipe pile and ten slide boxes.
4. All fasteners to be a combination of stainless and galvanized.
5. All exposed steel to be painted in color of choice.
6. All piling and decking edges to be routered for smooth edge.
7. All decking to be screwed not nailed.
COST: $ 110,000
Aluminum Ramp:
1. Supply and install 50’ X 4’ aluminum gangway ramp following hillside down to a
6 X 6 permanent landing at waters edge.
2. Supply and install 10’ X 4’ aluminum gangway going from landing to 4 X 4 dock
approach on the side of main dock.
3. All gangways to have aluminum railings on each side.
COST: $ 40,000
3/3/2017
Commission Meeting Date: March 14, 2017
Date: March 7, 2017
To: Honorable Mayor and City Commission
From: Planning and Economic Development Department
Re: Summer Youth Park Program Recreation Program Contract-
Boys and Girls Club of Muskegon
____________________________________________________________
SUMMARY OF REQUEST: The City of Muskegon (“City”) is recommending
approval of the attached Contract with the Boys and Girls Club of Muskegon
(“Manager”) for the management of the 2017 Summer Youth Park Recreation
Program. For the past several years, the City of Muskegon has provided the
majority of the Leisure Services funds for the Summer Park Youth Recreation
Program. The YMCA managed the program for several summers, and the Boys
and Girls Club took over management for the summer of 2016. This Contract is
consistent with the memo sent to City Commission by the Director of
Community & Economic Development in December 2016 (see attached). For
2017, the Boys and Girls Club of Muskegon will operate in four (4) sites in the
City, three (3) of which are funded by the City of Muskegon (Smith Ryerson
Park, Reese Park and Seyferth Park). The anticipated total cost of the program
for 2017 in the City of Muskegon is $96,381. It is proposed that the City provide
$45,000 towards the program’s management for 2017 and 2018. The Contract
is for two years. However, if funding is no longer available in the future, the
Contract can be cancelled.
FINANCIAL IMPACT: It is anticipated that the funding will be disbursed from
future the Community Development Block Grant Leisure Services Fund.
BUDGET ACTION REQUIRED: None at this time.
STAFF RECOMMENDATION: To approve the Summer Youth Park Program
Proposal and Contract and authorize staff to enter into an agreement with the
Boys and Girls Club of Muskegon.
A Proposal Requesting Funds from the City of Muskegon to Foster Opportunities for City Youth, through Partnership with the Boys & Girls Club of
the Muskegon Lakeshore to Implement Summer Youth Park Recreation Programming.
A comprehensive, targeted youth program designed to enhance youths’ engagement with learning, recreation and the arts by providing consistent
support from caring and trusted adults.
2/13/2017
Table of Contents
Executive Summary Page 3
About Boys & Girls Club of the Muskegon Page 4
Lakeshore
Who We Serve Page 5
Youth Development Principles Page 6
Summer Youth Park Recreation Project Page 7
Proposal
Key Program Highlights Page 10
Summer Youth Park Recreation Budget Page 14
Summary
Closing Page 16
EXECUTIVE SUMMARY
Boys & Girls Clubs of the Muskegon Lakeshore believes that every child deserves a great future. Unfortunately, today’s youth face tremendous obstacles.
Consider that our county of Muskegon is ranked 80 out of 83 counties in the state of Michigan for overall childhood wellbeing. And Despite significant gains in
some aspects of well-being during recent years for children of all races and income levels, disparities remain deep and persistent.
BGCML is well positioned to support and prepare Muskegon’s young people for 21st century success, and reach youth who need us the most, during the
summer months in the City of Muskegon. During the summer of 2016, we positively changed the lives of thousands of children in Muskegon, Michigan through
the Best Summer Ever Program. The Boys & Girls Club of the Muskegon Lakeshore is dedicated to making an even greater impact on youth in the summers to
come.
A Boys & Girls Club experience positively impacts’ youth from the moment they enter the program. What happens for Club youth– building relationships with
staff, participating in fun and engaging programs, learning important skills, making new friends, developing their talents – is referred to as the Club Experience.
This proposal details our plans to increase the quality of the Summer Youth Park Recreation Programming by focusing resources on three of our historical top
performing sites; Smith-Ryerson, Seyferth & Reese Park, with the ultimate goal of deepening the positive impact we make in the youth of Muskegon lives,
from mid-June through mid-August. In addition, BGCML will increase the amount of youth served daily during the Summer Youth Park Recreation
Programming & Summer Enrichment Program, year over year to 165 youth EVERY DAY in the Muskegon Area.
In the Summer Youth Park Recreation Programming, the Club Experience exist and consists of five key elements. The first element, a safe, positive environment,
sets the foundation for life-changing youth development work. The next key element, fun and a sense of belonging, keeps youth engaged. The last three
elements – supportive relationships, opportunities and expectations, and recognition – help transform time spent at the Club Park Sites into experiences that
change young lives. To increase the Club Experience, BGCML plans to increase the operating hours at each park site to Monday-Friday, 10am to 5pm.
These key elements are the driving force behind BGCML’s research-informed theory of change, called the Formula for Impact. Our formula explains how Clubs
help youth achieve critical outcomes. This connection between youth development programs and outcomes is well documented: high-quality youth programs
have strong positive effects on the academic, social and emotional lives of youth. Recent research about BGCML strongly affirms this core principle: by
implementing a high-quality Club Experience, BGCML can increase positive impact on kids. For example BGCA research shows that club members are 40% more
likely to be on track to graduate from High School, and 19% more likely expect to attend college. To sum up, the better the quality of a Summer Youth Park
Recreation Programming, the better the outcomes of Muskegon youth participants.
We will improve the quality of our Club Park Experience by focusing City of Muskegon funding and resources on three of our historical top performing sites;
Smith-Ryerson, Seyferth Park & Reese Park. This key action will help BGCML deepen and sustain our long-term impact on the youth of Muskegon, during the
summer months. Continued support from the City of Muskegon will allow those who need us most to graduate from high school on time with a plan for the
future; demonstrate good character and citizenship; and live a healthy lifestyle. In addition, lunch & dinner meals will be served at each site location.
Boys & Girls Club of the Muskegon Lakeshore respectfully requests $45,000 from the City of Muskegon, to offer a safe, fun & supportive Summer Youth Park
Recreation Programming to 165 youth every day at Smith Ryerson, Reese and Seyferth Park Sites. Note, BGCML self-funds the Muskegon based Nelson Site,
which is planned to serve an additional 170 youth daily during the summer months.
SUMMER YOUTH PARK RECREATION PROGRAMMING
At The Boys & Girls Club of the Muskegon Lakeshore (BGCML) we hold nothing back in creating a brighter future for the young people of our community, but
realize it is a task that cannot be achieved alone. In partnership with the City of Muskegon, The Boys & Girls Club of the Muskegon Lakeshore (BGCML) proposes
the continuation of the “Summer Youth Park Recreation Programming.” This project was developed to extend education & activity in the summer, June thru
August. The “Summer Youth Park Recreation Programming” will serve as a vehicle to administer National Boys & Girls Club proven programs to the youth of
Muskegon. This service, in partnership with the City of Muskegon will be used to implement programs using the below Formula for Impact, to reach our Priority
Outcomes.
BGCML, with the assistance of BGCA, through the “Summer Youth Park Recreation Programming” will implement many tried and proven programs to enable all
Muskegon youth, especially those who need us most, to reach their full potential, as productive, caring and responsible citizens. The emphasis of each program is
to make learning fun, assist youth with Summer Learning, empower youth to envision their future, and motivate youth to obtain their High School Diploma or
GED, and to prepare for college. To insure we reach those youth who need us most in the “Summer Youth Park Recreation Programming” participants will attend
at no cost. The club will offer daily access to a broad range of programs in five core program areas, per each site. These core programs include:
1. Character and Leadership Development- We empower Muskegon young people to support and influence their community, sustain
meaningful relationships, develop a positive self-image, participate in the democratic process, and respect cultural identities.
2. Education and Career Development- We enable Muskegon young people to become proficient in basic educational disciplines, apply learning
to everyday situations, and embrace technology to optimize employability.
3. Health and Life skills- We develop Muskegon young people’s capacity to engage in positive behaviors that nurture their own well-being, set
personal goals, and develop the skills to live successfully as self-sufficient, contributing adults.
4. The Arts and Music- We enable Muskegon young people to develop their creativity and cultural awareness through knowledge and
appreciation of visual, tactile, and/or performing arts and music.
5. Sports, Fitness, and Recreation- We develop fitness, positive use of leisure time, skills for stress management, appreciation for the
environment, and social and interpersonal skills to Muskegon area youth.
Delivering the above five program areas to Muskegon Area youth is an investment in Muskegon’s future. BGCML will provide the following services as a vehicle to
deliver National BGC proven programs, throughout the summer months to Muskegon Area Youth:
1. Summer Youth Park Recreation Programming for youth, ages 6-18 during the summer months, from mid-June thru August (3
months per year). This program would be offered Monday through Friday from 10am-5pm, at the following park sites:
a. Seyferth Park (2250 West Sherman Avenue Muskegon, MI)
i. Goal: To host 50 youth Average Daily, with 80 active Members.
b. Reese Park (1345 East Forest Ave. Muskegon, MI)
i. Goal: To host 50 youth Average Daily, with 80 active Members.
c. Smith Ryerson Park (650 Wood Street Muskegon, MI)
i. Goal: To host 65 youth Average Daily, with 95 active Members.
2. Summer Enrichment Program for youth, ages 6-18 during the summer break from mid-June thru August (3 months per year). This
program would be offered Monday through Friday from 10am-6pm at the following sites:
a. Nelson Elementary School (550 W. Grand Ave Muskegon, MI)
i. Goal: To host 170 youth Average Daily, with 300 active Members.
1. Note, BGCML Self Funds Nelson Site.
*The City of Muskegon will pay for Park Site expenses only (Seyferth, Reese & Smith-Ryerson) for the above listed “Summer Youth Park Recreation
Programming”; the attached budget includes cost for park site expenses only (Summer Youth Park Recreation Programming).
*BGCML self-funds the Nelson Site- cost not included in attached budget.
SUMMER YOUTH PARK RECREATION PROGRAMMING BUDGET SUMMARY 2017
We expect another amazing year for the Summer Youth Park Recreation Programming! The City of Muskegon financially enabled BGCML to increase services to
hundreds of Muskegon youth in 2016, allowing the opening of 5 park sites. In 2017 Summer Parks Budget total revenues & expenses will decrease, comparative
to 2016 Summer Parks revenues & expenses. In 2017 BGCML expects efficiencies to increase from previous years. Increased efficiencies stem from focus on
three Summer Park sites versus, the 2016 five Summer Park Sites. These improvements to service delivery will drive our cost per Summer Recreation participant
down to an estimated $274 in 2017, from the 2016 cost per participant of approximately $352.
Closing
On March 7th , 2017 Boys & Girls Club of the Muskegon Lakeshore received word from Boys & Girls Club of America that the partnership between the City of
Muskegon and local Boys & Girls Club, for their 2016 Summer Parks efforts had caught the eye of top BGCA leadership. The letter acknowledged these efforts
through selection as an Honor Award Winner- the highest award given to clubs for program excellence. The award will be given on May 12th , 2017 at the BGCA
National Conference in Dallas, Texas.
By opening the gates to the “Summer Youth Park Recreation Programming,” Muskegon youth will be entering an extraordinary environment, where they know
their City believes in them, & supports their dreams. In addition, every adult BGCML staff will be dedicated to helping them reach their full potential. Whether by
providing access to new games that makes exercising fun, or empowering them to make their community better through a service project, every day at the
“Summer Youth Park Recreation Programming” will offer opportunities for youth to learn something new and achieve things that they might otherwise not
dreamed of.
Young people often have very different experiences when they are not active during the summer out of school time. Many of the youth we will serve do not
have champions at home: often they lack caring adults who believe they can achieve academic success, make healthy choices and be leaders in the community.
But every youth who enters the “Summer Youth Park Recreation Programming” receives immediate support from advocates who believe they can achieve
great things regardless of their circumstances. This belief in youth stems from experience: time and time again, BGCML staff have championed a young person
who excels despite tremendous odds against them.
This phenomenon, what we call the Club Experience, which will be implemented into the “Summer Youth Park Recreation Programming” has the power to
change and save young lives. The quality of staff, operations and programming dictates just how powerful the Club Experience can be. Our 2017 Youth of the
Year, Antonio Thomas said it best, “It helps you out, gives you different opportunities, a career path you never thought. It might help you out when it comes to
different situations you might encounter in life and that's what they show you.”
Our proposed work will reach hundreds, if not thousands during the 2017 “Summer Youth Park Recreation Programming” ensuring positive change and forward
momentum for the youth of Muskegon. On behalf of the young people in of Muskegon, Michigan, thank you for your thoughtful consideration of this request.
With your support, we will improve the Club Experience at the “Summer Youth Park Recreation Programming” for the youth we serve to help them start great
futures as productive, caring, responsible citizens.
Memorandum
To: Honorable Mayor & City Commission
Cc: Frank Peterson, City Manager
From: Cathy Brubaker-Clarke, Director of Community & Economic Development
Date: 3/9/2017
Re: Proposed Changes to Leisure Services Grant Funds- 2017
For the past several years, the City of Muskegon has provided the majority of the Leisure Services
funds directly to the Boys & Girls Club or the YMCA for the Summer Parks Youth Program
(approximately $48,100, which includes $10,000 from the Community Foundation Seyferth Park
Fund), the YMCA for the Summer Evening Recreation Program at the Muskegon High School
($20,000) and the Muskegon Public Schools for the Youth Basketball League and Open Gym
Program ($18,500). With the remaining Leisure Services funds ($19,100), the City has provided
small grants ($3,000 maximum) to several youth recreation programs on a competitive basis. As the
City is moving toward reorganization in several areas, it makes sense, from a financial and staff time
perspective, to conclude the small grant program.
Staff has been in conversation with both the Boys & Girls Club and Muskegon Public Schools (MPS)
to manage certain aspects of the City leisure services program. I expect to have formal management
contracts to present to the City Commission early in 2017. The Boys & Girls Club is interested in
managing the Summer Parks Recreation Program in the future, although the cost is more than they
had originally anticipated. I have had meetings with the Boys & Girls Club Director, Dakota Crow, as
well as Janelle Mair from the Community Foundation. I believe we will have a viable contract to
present which will take much less oversight from City staff. In addition, I anticipate that we will have
an agreement with MPS, where they may be able to manage funds for several existing programs, such
as the Youth Basketball League & Open Gym, the Summer Evening Recreation Program and other
programs related to the schools (e.g., Port City Youth Football/Cheerleading Club, Growing Goods,
Winter Sports Program). The oversight for management agreements, particularly if they span two or
more years, is much less staff intensive than management of the small grant process has been (which
includes preparing applications, establishing a mailing list, reviewing applications, preparing them
for the grant committee to review, notifying those who applied and following up with them to ensure
they are doing what they included in their applications, preparing checks to mail, etc.) That has taken
hours and hours of staff time for a significantly small amount of grant dollars.
I plan to notify the existing small grant recipients of this change in the near future. In the past, I have
sent out applications in January and I want to notify them prior to that time. As we have consistently
had to cut back on the amounts we grant to the youth organizations, I do not believe the loss of this
program will greatly affect them. Please let me know if you have any questions.
Date: March 14, 2017
To: Honorable Mayor and City Commissioners
From: Water Filtration Plant
RE: Source Water Protection Plan Agreements; Grant & Engineering
SUMMARY OF REQUEST:
Authorize Staff to enter into agreements with MDEQ for a $15,000 grant which requires a
100% City match, and an engineering agreement with Tetra Tech to prepare a Source
Water Protection Plan as recommended by MDEQ.
Tetra Tech is being recommended since they were the engineer who prepared the grant
application and their familiarity with the City’s filtration plant. The engineering cost is a “not
to exceed” $30,000.
FINANCIAL IMPACT:
The total cost of this purchase is $30,000 for engineering of which $15,000 is grant money
and the other $15,000 from the City’s water fund.
BUDGET ACTION REQUIRED:
None
STAFF RECOMMENDATION:
Authorize Staff to sign both agreements; accepting the grant with MDEQ & the engineering
agreement with Tetra Tech.
COMMITTEE RECOMMENDATION:
Commission Meeting Date: March 14, 2017
Date: March 7, 2017
To: Honorable Mayor & City Commission
From: Planning & Economic Development Department
RE: PILOT Ordinance Amendment- Amazon
SUMMARY OF REQUEST: Muskegon Redevelopment Limited Housing Authority
purchased the Amazon property in 2016. There is currently no PILOT for the
property, although it is a Low Income Housing Tax Credit (LIHTC) project. In order to
obtain the financing necessary to make additional capital improvements to the
Amazon, a PILOT is required. Since the property is within the City’s Downtown
Development Authority (DDA), the PILOT will result in a decrease of taxes being paid
into the DDA. An amendment to the current PILOT Ordinance (#2303) is being
recommended for Section 82-51 (1), changing the service charge for the PILOT from
4 percent minimum to 3 percent minimum. The City is able to capture an additional
percentage for the City service fee.
FINANCIAL IMPACT: The Ordinance amendment would allow for a lower minimum
percent of service charge.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: If the City Commission agrees that the PILOT is
necessary for this property, staff recommends that the attached Ordinance
amendment be approved and the Clerk be authorized to sign the necessary
documents.
CITY OF MUSKEGON
MUSKEGON COUNTY, MICHIGAN
ORDINANCE NO. ____
THE CITY COMMISSION OF THE CITY OF MUSKEGON HEREBY ORDAINS:
1. Chapter 82, Article II of the Code of Ordinances of the City of Muskegon,
Michigan, Section 82-51 are amended to read as follows:
Section 82-51. Payment in lieu of taxes; amount; standards for determination.
The payments in lieu of taxes to be made by housing projects exempt from ad
valorem taxes under this division are hereby established by the city pursuant to
Section 15a of Public Act No. 346 of 1966 (MCL 125.1415a), without regard to
the amounts otherwise set forth in such section of this act. The service charge to
be paid in lieu of taxes by any housing project exempt under this division shall be
determined as follows:
(1) Amount. Except as provided in subsection (2)(h) of this section, the
service charge shall be in an amount no less than 3 percent nor more than
20 percent of the contract rents charged for the total of all units in the
exempt housing project, whether the units are occupied or not and whether
or not the rents are paid. In no event shall the service charge exceed the ad
valorem real property taxes which would be paid for the housing project if
it were not exempt.
(2) Standards for determining the amount of the payment in lieu of taxes.
In determining the amount of service charge (not less than the minimum)
which will be paid the city for a housing project exempt under this
division the following standards shall guide the city. All criteria which
apply shall be considered to arrive at the service charge:
a. In the event the housing project or a substantial part thereof is
located in a rehabilitated structure, for that portion of the project
found in the rehabilitated structure the city shall establish a lower
service charge.
b. In the event the housing project is located in an area of the city
which is part of a tax increment district and removes taxable
property from the tax roll, the city shall establish a higher service
charge.
O:\CLERK\Common\Word\Agenda Items for Next Meeting\2017\031417\08a_PILOT Ordinance.doc 1
c. The city shall consider the number of exempt units as compared
to nonexempt units which are attached or contiguous to the
housing project, but which are developed simultaneously with it by
the same developer. To the extent that nonexempt units, including
units calling for market rents, are included in the development, the
city shall consider lowering the rate of the service charge on the
exempt units.
d. In the event the housing project is proximate to nonsubsidized
and nonexempt housing which is not part of any project for which
the developer of the exempt housing project is responsible, the city
shall establish a higher service charge.
e. In the event the housing project is eligible for other property tax
abatements or reductions of any kind, or municipal benefits not
generally available to residential properties, the city shall establish
a higher service charge.
f. In the event the housing project results in an increase in the need
for public services such as water or sewer extensions, public
transportation services, additional snow plowing, police and fire
services, or increased school populations, the city shall establish a
higher service charge.
g. In the event the city determines that the housing project will
result in significantly increased traffic generation or street or
highway safety problems, the city shall establish a higher service
charge.
h. For a project which meets the criteria of section 82-50(4), the
service charge may be continued in the amount the city had
previously determined.
(3) Property or unit becoming ineligible. In the event any residential unit
is found to be occupied by persons who are not eligible to occupy exempt
units under this division, the service charge for that unit, prorated, shall
equal the general property taxes which would be payable (prorata) for that
unit. In the event the city determines that more than 50 percent of the units
in the housing project are occupied by such ineligible persons, then the
entire housing project shall be immediately liable for a service charge in
an amount equal to the ad valorem property taxes which would otherwise
be charged by tax bills normally issuing in the year of the city's
determination.
2. This Ordinance is to become effective ten (10) days after adoption.
O:\CLERK\Common\Word\Agenda Items for Next Meeting\2017\031417\08a_PILOT Ordinance.doc 2
Ayes:
Nays:
First Reading:
Second Reading:
CERTIFICATE
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 ____ day of
_______________, 2017, at which meeting a quorum was present and remained
throughout, and that the meeting was conducted and public notice was given pursuant to
and in full compliance with Act No. 267, Public Acts of Michigan of 1976, as amended,
and that minutes were kept and will be or have been made available as required thereby.
Date:_______________________, 2017
________________________________
Ann Marie Meisch, MMC
City Clerk
Publish: Notice of Adoption to be published once within ten (10) days of final
adoption.
O:\CLERK\Common\Word\Agenda Items for Next Meeting\2017\031417\08a_PILOT Ordinance.doc 3
CITY OF MUSKEGON
NOTICE OF ADOPTION
TO: ALL PERSONS INTERESTED
Please take notice that on ___________________, 2017, the City Commission of
the City of Muskegon amended Chapter 82, Article II of the Muskegon City Code,
summarized as follows:
1. Section 82-51 is amended to provide that the payment in lieu of
taxes shall be not less than 3% nor more than 20% of the contract rents charged
for the total of all units in the project, whether the units are occupied or not and
whether or not the rents are paid.
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 (10) days from the date of this
publication.
Published: _________________, 2017 CITY OF MUSKEGON
By________________________
Ann Marie Meisch, MMC
City Clerk
------------------------------------------------------------------------------------------------------------
PUBLISH ONCE WITHIN TEN (10) DAYS OF FINAL PASSAGE
O:\CLERK\Common\Word\Agenda Items for Next Meeting\2017\031417\08_PILOT - NOTICE OF ADOPTION.doc 1
Commission Meeting Date: March 14, 2017
Date: March 7, 2017
To: Honorable Mayor & City Commission
From: Planning & Economic Development Department
RE: PILOT- Muskegon Redevelopment Limited
Dividend Housing Authority (Amazon)
SUMMARY OF REQUEST: Mr. Back of Muskegon Redevelopment Limited Dividend Housing
Authority is requesting a Payment in Lieu of Taxes (PILOT) for the Amazon property (550 W.
Western). The property is currently a MSHDA LIHTC (Low Income Housing Tax Credit) project.
Normally, LIHTC properties also have PILOT Agreements, which allow them to make improvements
over time, despite restricted rents. Since the Amazon was originally in a Renaissance Zone, a PILOT
was not initially received. The property is no longer in a Renaissance Zone. Muskegon Redevelopment
Limited Dividend Housing Authority purchased the building out of bankruptcy in 2016 and they have
put a significant amount of investment into the property. However, additional major capital
improvements are necessary, and the only way the funds will be available is through a PILOT
designation. Fortunately, Muskegon Redevelopment Limited Dividend Housing Authority is only
requesting a five year PILOT for the Amazon. This will enable the owner to make the necessary
improvements, while providing additional market-rate units in the facility. The long-term goal is to
increase the number of these market-rate units. Currently, the development includes 49 units (60%
Area Median Income), 61 units (50% Area Median Income) and 12 units (Market-Rate); as well as five
commercial units (with plans to convert some of these to market-rate apartments). The Amazon
Apartments contain both 1-, 2, and 3-bedroom units, common area, a community room, and outdoor
courtyard. The minimum service charge of 3% will be imposed (assuming the PILOT Ordinance
Amendment is first approved by City Commission), as well as an essential service fee to the City of 3%
(see “Contract for Housing Exemption” attached).
FINANCIAL IMPACT: The loss of the taxes to the DDA will be substantial. However, the taxing
jurisdictions will benefit from the 3% PILOT and the City will benefit from the 3% essential service
fee. In addition, the PILOT is only approved for five years. Meanwhile, Muskegon Redevelopment
Limited Dividend Housing Authority partners are involved in several other projects downtown which
have, and will, increase the tax base for the DDA.
BUDGET ACTION REQUIRED: None, at this time.
STAFF RECOMMENDATION: To approve the attached “Contract for Housing Exemption” and
“Development Agreement” and authorize the Mayor and Clerk to sign.
CITY OF MUSKEGON
CONTRACT FOR HOUSING EXEMPTION
This Agreement between MUSKEGON REDEVELOPMENT LIMITED DIVIDEND
HOUSING ASSOCIATION, a Michigan limited partnership (the “Developer”) and CITY OF
MUSKEGON, 933 Terrace Street, Muskegon, Michigan (the “City”) is made pursuant to the
following terms:
RECITALS
A. The City has adopted Chapter 82, Article II “Taxation” of the City Code of
Ordinances, providing for tax exemption (the “Ordinance”).
B. It is acknowledged that it is a proper public purpose of the State of Michigan and
its political subdivisions to provide housing for its low-income senior persons and families and to
encourage the development of such housing by providing for a service charge in lieu of property
taxes in accordance with Act 346 of 1966, as amended, the State Housing Development Authority
Act (the “Act”). The City is authorized by the Act and Ordinance to establish or charge the service
charge to be paid in lieu of taxes by any or all classes of housing exempt from taxation under this
Act at any amount it chooses, not to exceed the taxes that would be paid but for this Act. It is
further acknowledged that such housing for low income persons and families is a public necessity,
and as the City will be benefited and improved by such housing, the encouragement of the same
by providing real estate tax exemption for such housing is a valid public purpose. It is further
acknowledged that the continuance of the provisions of this Ordinance for tax exemption and the
service charge in lieu of all ad valorem taxes during the period contemplated in this Ordinance are
essential to the determination of economic feasibility of the housing projects that is constructed or
rehabilitated with financing extended in reliance on such tax exemption.
C. Developer is the owner and operator of the Amazon Apartments located at 550
West Western Avenue, Muskegon, MI 49440 (the “Property”) and is legally described on attached
Exhibit A.
D. The Amazon Apartments consist of 126 units of affordable family housing initially
financed under the Low Income Housing Tax Credit Program of IRC §42 and is subject to a
Regulatory Agreement dated November 6, 2003 and recorded in Liber 3583, Page 415 of the
Muskegon County Records (the “Regulatory Agreement”).
E. The Property is eligible for the tax exemption pursuant to Section 82-50(3) of the
Ordinance.
F. The City encourages the operation, rehabilitation and financing of the said low-
income housing project which is identified by the working name of Amazon Apartments.
G. To further enable and encourage the operation and rehabilitation of the housing
project, Developer and the City enter into this Agreement.
NOW, THEREFORE, THE PARTIES AGREE AS FOLLOWS:
1. Grant of Exemption. As contemplated and pursuant to the Act and Ordinance, the
City hereby grants an exemption from all ad valorem property taxes attributable to the buildings
which consist of rental units offered to eligible low income senior persons and families as defined
by the Michigan State Housing Development Authority (the “Authority”).
2. Term of Exemption. This exemption shall continue for the period of time the
housing units remain subject to income and rent restrictions pursuant to Section 42 of Internal
Revenue Service Codes of 1986, as amended (IRS Codes), or the Regulatory Agreement not to
exceed five (5) years. The City agrees to be contractually bound by this Agreement to honor the
exemption status of the proposed project as provided herein and in this Agreement for the entire
period during which the Project is subject to the Regulatory Agreement or receives low income
housing tax credits under Section 42 of the IRS Codes, provided that the said loan or a loan
originally financed by the low income housing tax credits continues outstanding and not in default
as more particularly set forth in Section 82-50(3)of the Ordinance, but not to exceed five (5) years.
3. Responsibilities of the Developer. The Developer agrees to perform the following:
3.1 The Developer shall pay the service charge and payment in lieu of taxes on
or before July 1, of each year during the time the exemption is in effect. The service
charge shall equal three percent (3%) of the rents charged for the total of all units in the
exempt housing project, whether the units are occupied or not and whether or not the rents
are paid.
3.2 The Developer agrees to file all information required by the Ordinance and
further to meet its obligations to the Authority in connection with the Authority’s
administration of the low income housing tax credit program and Regulatory Agreement.
3.3 In lieu of the requirement to submit a statement of contract rents within 30
days after December 31, as required by the Ordinance, Developer shall submit an annual
audit by April 1st. If not timely filed, and 30 days after notice to Developer of said
delinquency, a penalty of 1.25% of the service charge shall be imposed. This penalty shall
be collectible in the same manner provided in Section 82-54 of the Ordinance.
4. Interpretation of Financing. The City agrees that the existence of the Regulatory
Agreement and use of low income housing tax credits constitutes financing of the loan by the
Authority in fulfillment of the requirements of Section 82-50(3) of the Ordinance.
5. Third Party Beneficiary. This Agreement shall benefit the parties named, including
any limited dividend housing association to be formed, and further shall benefit the Authority, or
such other mortgagee as may have financed the housing project, which may enforce this
Agreement, both as its interest may appear, and on behalf of the Developer and its successors and
assigns. No other party is a beneficiary of this Agreement.
6. Limitation on the Payment of Annual Service Charge. Notwithstanding Section 3,
the service charge to be paid each year in lieu of taxes for the part of the housing project that is tax
exempt but which is occupied by other than low income persons or families shall be equal to the
full amount of the taxes which would be paid on that portion of the housing project if the housing
project were not tax exempt.
7. Counterparts. This Agreement may be executed in several counterparts and an
executed copy hereof may be relied upon as an original.
8. Binding and Benefit. This Agreement shall be binding upon and inure to the benefit
of the parties hereto and their respective heirs, administrators, personal representatives, successors
and assigns.
9. Effective Date. This Agreement shall be effective as of the date it is executed by
the parties.
10. Severability. The various sections and provisions of this Agreement shall be
deemed to be severable, and should any section or provision of this Agreement be declared by any
court of competent jurisdiction to be unconstitutional or invalid the same shall not affect the
validity of this Agreement as a whole or any section or provision of this Agreement, other than the
section or provision so declared to be unconstitutional or invalid.
11. Inconsistent Ordinances. All ordinances or parts of ordinances inconsistent or in
conflict with the provisions of this Agreement are of no effect to the extent of such inconsistency
or conflict.
12. Choice of Law; Venue. This Agreement is executed in accordance with, shall be
governed by, and construed and interpreted in accordance with the laws of the State of Michigan.
The parties agree that for purposes of any dispute in connection with this Agreement, the
Muskegon County Circuit Court shall have exclusive personal and subject matter jurisdiction and
venue.
IN WITNESS WHEREOF, the parties have signed this Agreement on the following page,
on the dates indicated.
City of Muskegon
Dated: ___________________, 2017 By: _________________________
Stephen Gawron, Mayor
Dated: ___________________, 2017 By: _________________________
Ann Meisch, Clerk
MUSKEGON REDEVELOPMENT
LIMITED DIVIDEND HOUSING
ASSOCIATION LIMITED
PARTNERSHIP, a Michigan
limited partnership
By: Corepark Amazon, GP, LLC., a
Delaware LLC , its General
Partner
Dated: ___________________, 2017 By: _________________________
Harold S. Back, Chief Operating Officer
EXHIBIT A
LEGAL DESCRIPTION
THAT PART OF BLOCKS 567, 568, 570, VACATED MART STREET (AS RECORDED
IN LIBER 3058, PAGE 430) AND THE ADJACENT RAILROAD RIGHT OF WAY
THERETO OF THE REVISED PLAT OF 1903 OF THE CITY OF MUSKEGON,
MUSKEGON COUNTY, MICHIGAN, DESCRIBED AST FOLLOWS: COMMENCING
AT THE SOUTHEAST CORNER OF SAID BLOCK 568 FOR POINT OF BEGINNING;
THENCE NORTH 50 DEGREES 57 MINUTES 04 SECONDS EAST ALONG THE
NORTHERLY LINE OF WESTERN AVENUE 20.00 FEET TO THE WESTERLY LINE
OF FIFTH STREET; THENCE NORTH 39 DEGREES 04 MINUTES 13 SECONDS WEST
ALONG SAID WESTERLY LINES 351.52 FEET TO THE SOUTHERLY LINE OF
SHORELINE DRIVE; THENCE SOUTHWESTERLY ALONG SAID SOUTHERLY LINE
ON THE ARC OF 5187.69 FOOT RADIUS CURVE TO THE LEFT A DISTANCE OF
165.51 FEET (THE LONG CHORD OF SAID CURVE BEARS SOUTH 36 DEGREES 54
MINUTES 53 SECONDS WEST 165.51 FEET); THENCE SOUTH 36 DEGREES 00
MINUTES 03 SECONDS WEST ALONG SAID SOUTHERLY LINE OF SHORELINE
DRIVE 329.65 FEET TO A POINT ON WHICH IS 63.00 FEET, MEASURED AT RIGHT
ANGLES, WESTERLY OF THE EASTERLY LINE OF SAID BLOCK 570; THENCE
SOUTH 39 DEGREES 05 MINUTES 00 SECONDS EAST, PARALLEL TO SAID
EASTERLY BLOCK LINE, 226.26 FEET TO THE NORTHERLY LINE OF WESTERN
AVENUE; THENCE NORTH 50 DEGREES 52 MINUTES 45 SECONDS EAST ALONG
SAID NORTHERLY LINE 63.00 FEET TO THE SOUTHEAST CORNER OF SAID
BLOCK 570; THENCE NORTH 51 DEGREES 04 MINUTES 36 SECONDS EAST 66
FEET TO THE SOUTHWEST CORNER OF SAID BLOCK 568; THENCE NORTH 50
DEGREES 57 MINUTES 04 SECONDS EAST ALONG THE NORTHERLY LINE OF
WESTERN AVENUE 350.05 FEET TO POINT OF BEGINNING.
DEVELOPMENT AGREEMENT
This Agreement between MUSKEGON REDEVELOPMENT LIMITED DIVIDEND
HOUSING ASSOCIATION, a Michigan limited partnership (the “Developer”) and CITY OF
MUSKEGON, 933 Terrace Street, Muskegon, Michigan (the “City”) is made pursuant to the
following terms:
RECITALS
A. Concurrent with this Agreement, Developer and City have entered into a Contract
for Housing Exemption (the “Exemption Agreement”), an executed copy of which is attached
hereto as Exhibit 1, for the operation and redevelopment of a low-income housing project for
families, known as the Amazon Apartments located at 550 West Western Avenue, Muskegon MI
(the “Development”); and
B. The City has granted an exemption from all ad valorem property taxes for the
affordable housing units within the Development; and
C. In addition to the terms of the Exemption Agreement regarding the Development’s
tax exempt status, the parties wish to memorialize additional details herein.
Now, therefore, for good and valuable consideration, the parties agree as follows:
1. The Developer agrees to diligently pursue with the Michigan State Housing
Development Authority (“MSHDA”) certain changes to the unit mix and amendments to the
Regulatory Agreement. Developer shall use its best efforts with MSHDA to:
(i) provide for the allowance of certain units to allow occupation by residents
at or under the 80% AMI;
(ii) to cap the affordable units under the current Regulatory Agreement to 105
units; and
(iii) to convert the existing commercial space into no more than six (6) market
rate units.
2. In addition to imposition of the minimum service charge of three percent (3%) of
contract rents, as outlined in the Exemption Agreement”), Developer shall pay to the City an
essential services fee of three percent (3%) of contract rents, for the provision of essential services
such as police and fire protection, pursuant to the same timeline as that of the service charge.
1
Development Agreement – Amazon Apts.
IN WITNESS WHEREOF, the parties have signed this Agreement on the dates indicated
below.
CITY OF MUSKEGON
Dated: __________________, 2017 By: ___________________________
Stephen Gawron, Mayor
Dated: __________________, 2017 By: ___________________________
Ann Meisch, Clerk
MUSKEGON REDEVELOPMENT
LIMITED DIVIDEND HOUSING
ASSOCIATION LIMITED
PARTNERSHIP, a Michigan limited
partnership
By: Core Financial Corporation, a
Michigan corporation, its General
Partner
Dated: ___________________, 2017 By: _________________________
Harold S. Back, President
2
Development Agreement – Amazon Apts.
Date: March 7, 2017
To: Honorable Mayor and City Commissioners
From: Ann Marie Meisch, City Clerk
RE: Recommendation for Annual Renewal of Liquor
Licenses
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 14, 2017, 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.
RESOLUTION RECOMMENDING STATE WITHHOLD
RENEWAL OF LIQUOR LICENSES FOR CODE
VIOLATIONS
Resolution # 2017- _____
THE CITY COMMISSION OF THE CITY OF MUSKEGON DO RESOLVE, that whereas, the
attached business establishments in the City of Muskegon have liquor licenses and are found to be
in violation of Article V, Section 50-146 and 50-147 of the Code of Ordinances of the City of
Muskegon.
AND WHEREAS, a hearing was held on March 14, 2017, before the City Commission to allow
such licensees an opportunity to refute the determination of the City Commission that such
establishments are in non-compliance with the City Code of Ordinances and renewal of their liquor
licenses should not be recommended by the City Commission; and
WHEREAS, an affidavit of mailing of Notices of Hearing and Notification of Non-Compliance to
City Standards to the licensees has been filed;
NOW, THEREFORE, BE IT RESOLVED, that the City Commission of the City of Muskegon
hereby recommends that these liquor licenses not be approved for renewal, and a copy of this
Resolution be sent to the State Liquor Control Commission. If any of these establishments come
into compliance by March 14, 2017, they will be removed from this Resolution.
Approved and adopted this 14th day of March, 2017.
AYES:
NAYS:
By:_________________________________
Ann Marie Meisch, MMC
City Clerk
Commission Meeting Date: March 14, 2017
Date: March 9, 2017
To: Honorable Mayor and City Commissioners
From: Planning & Economic Development
RE: Public Hearing – Establishment of a Commercial Redevelopment
District –1205 Peck St.
SUMMARY OF REQUEST:
Pursuant to Public Act 255 of 1978, as amended, 1205 Peck LLC has requested the
establishment of a Commercial Redevelopment District. The creation of the district will allow
the building owner to apply for a Commercial Facilities Exemption Certificate, which will
freeze the taxable value of the building and exempt the new real property investment
from local taxes.
FINANCIAL IMPACT:
None
BUDGET ACTION REQUIRED:
None
STAFF RECOMMENDATION:
Establishment of the Commercial Redevelopment District.
COMMITTEE RECOMMENDATION:
None
3/9/2017
Resolution No. _______
MUSKEGON CITY COMMISSION
RESOLUTION APPROVING THE CREATION OF A COMMERCIAL REDEVELOPMENT DISTRICT
1205 Peck St
WHEREAS, pursuant to PA 255 of 1978, the City of Muskegon has the authority to establish “Commercial
Redevelopment Districts” within the City of Muskegon at request of a commercial business enterprise or
on its own initiative; and
WHEREAS, 1205 Peck LLC has filed a written request with the clerk of the City of Muskegon requesting
the establishment of the Commercial Redevelopment District for an area in the vicinity of 1205 Peck St
located in the City of Muskegon hereinafter described; and
WHEREAS, the City Commission of the City of Muskegon determined that the district meets the
requirements set forth in section 5 of PA 255 of 1978; and
WHEREAS, written notice has been given by certified mail to all owners of real property located within the
proposed district as required by section 5(3) of PA 255 of 1978; and
WHEREAS, on March 14, 2017 a public hearing was held and all residents and taxpayers of the City of
Muskegon were afforded an opportunity to be heard thereon; and
WHEREAS, the City of Muskegon deems it to be in the public interest of the City of Muskegon to
establish the Commercial Redevelopment District as proposed;
NOW, THEREFORE, BE IT RESOLVED by the City Commission of the City of Muskegon that the
following described parcel(s) of land situated in the City of Muskegon, County of Muskegon, and State of
Michigan, to wit:
CITY OF MUSKEGON REVISED PLAT OF 1903 LOT 8 & SLY 2 FT LOT 7 BLK 330
Adopted this 14th Day of March 2017
Ayes:
Nays:
Absent:
BY: __________________________________
Stephen J. Gawron
Mayor
ATTEST: __________________________________
Ann Meisch
Clerk
3/9/17
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 14, 2017.
______________________________
Ann Meisch
Clerk
3/9/17
Commission Meeting Date: March 14, 2017
Date: March 9, 2017
To: Honorable Mayor and City Commissioners
From: Planning & Economic Development
RE: Public Hearing – Issuance of a Commercial Facilities Exemption
Certificate – 1205 Peck LLC
SUMMARY OF REQUEST:
Pursuant to Public Act 255 of 1978, as amended, 1205 Peck LLC has requested the
issuance of a Commercial Facilities Exemption Certificate. The certificate will freeze the
taxable value of the building and exempt the new real property investment from local
taxes. The company will be investing $70,000 in the building and will create 12 new
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:
Issuance of the Commercial Facilities Exemption Certificate
COMMITTEE RECOMMENDATION:
None
3/9/2017
Resolution No. _______
MUSKEGON CITY COMMISSION
RESOLUTION APPROVING APPLICATION FOR ISSUANCE
OF A COMMERCIAL FACILITIES EXEMPTION CERTIFICATE
1205 Peck LLC
WHEREAS, the City of Muskegon legally established the Commercial Redevelopment District, 1205 Peck
St District, on March 15, 2017, after a public hearing held on March 14, 2017; and
WHEREAS, the state equalized value of the property proposed to be exempt plus the aggregate state
equalized value of property previously exempt and currently in force under Public Act 255 of 1978 and
under Public Act 198 of 1974 (IFT's) does not exceed 5% of the total state equalized value of the City of
Muskegon; and
WHEREAS, the application was approved at a public hearing as provided by section 6(2) of Public Act
255 of 1978 on March 14, 2017; and
WHEREAS, the certificate was approved for a period of 10 years and no extensions will be granted; and
WHEREAS, 1205 Peck LLC is not delinquent in any taxes related to the facility; and
WHEREAS, the application is for commercial property as defined in section 3(3) of Public Act 255 of
1978; and
WHEREAS, 1205 Peck LLC had provided answers to all required questions under Section 6(1) of PA 255
of 1978 to the City of Muskegon; and
WHEREAS, the City of Muskegon requires that the construction, restoration or replacement of the facility
shall be completed by March 14, 2019; and
WHEREAS, the commencement of the construction, restoration or replacement of the facility did not
occur more than 45 days prior to the filing of the application for exemption; and
WHEREAS, the commencement of the construction, restoration or replacement of the facility did not
occur prior to the establishment of the Commercial Redevelopment District; and
WHEREAS, the application relates to a construction, restoration or replacement program which when
completed constitutes a new, replacement or restored facility within the meaning of Public Act 255 of
1978 and that is situated within a Commercial Redevelopment District established under Public Act 255 of
1978; and
WHEREAS, completion of the facility is calculated to, and will at the time of issuance of the certificate,
have the reasonable likelihood to increase commercial activity, create employment, retain employment
and prevent a loss of employment in the community in which the facility is situated; and
WHEREAS, the restoration includes improvements aggregating 10% or more of the true cash value of the
property at commencement of the restoration as provided by section 4(6) of Public Act 255 of 1978.
NOW, THEREFORE, BE IT RESOLVED by the City Commission of the City Commission
Be and hereby is granted a Commercial Facilities Exemption for the real property, excluding land, located
in Commercial Redevelopment District, 1205 Peck District at 1205 Peck St for a period of 10 years,
beginning December 31, 2017, and ending December 30, 2027, pursuant to the provisions of PA 255 of
1978, as amended.
3/9/17
Adopted this 14th Day of March, 2017.
Ayes:
Nays:
Absent:
BY: __________________________________
Stephen J. Gawron
Mayor
ATTEST: __________________________________
Ann Meisch
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 14, 2017.
______________________________
Ann Meisch
Clerk
3/9/17
COMMISSION MEETING DATE: March 14, 2017
TO: Honorable Mayor and Commissioners
FROM: Jeffrey Lewis, Director of Public Safety
RE: Concurrence with the Housing Board of Appeals Notice and Order to Demolish.
Dangerous Building Case #: EN140138 – 1153 Pine.
SUMMARY OF REQUEST: This is to request that the City Commission Concur with the findings of
the Housing Board of Appeals that the structure located at 1153 Pine St. is unsafe, substandard, a public
nuisance and that it be demolished within thirty (30) days or infraction tickets may be issued. It is
further requested that administration be directed to obtain bids for the demolition of the structure and
that the Mayor and City Clerk be authorized and directed to execute a contract 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 (they currently have obtained a demolition permit to complete the
demolition) the City would like to be able to follow through with the demolition bidding process.
Location and ownership: This structure is located on Pine St. between Delaware Ave. and Iona Ave. and
is owned by Brenda Daniels.
Staff Correspondence: The Notice and Order to Repair was issued on 3/19/2014. On 2/2/2017 HBA
declared the structure substandard and dangerous.
Financial Impact: General Funds
Budget action required: None
State Equalized value: $ 20,100.
Estimated cost to repair: $ 50,000
Staff Recommendation: To concur with the Housing Board of Appeals decision to demolish.
Notification procedures:
1) Title search is performed so all interested parties are notified.
2) All notifications are posted on the structure.
3) All notifications are mailed by certified mail with a return card for signature.
Owner Contact: The owner had only missed attending a couple of meetings before the HBA. The owner
has made a couple of timetables that were not kept and the garage was never included in the timeline.
Permits obtained: There are no active permits. The last one was to roof the home & replace the siding in
the back of the home. The only portion of the permit that was approved was the siding replacement on
the rear of the home. The permit has since expired 10/22/2016.
If you disagree with the decision of the City Commission, you have the right to file a petition for
superintending control in Circuit Court for the County of Muskegon within 21 days after the City Commission
concurs.
Pictures from 1/20/2017:
Garage pictures from 1/20/2017:
North side. Rear side.
South Side.
CITY OF MUSKEGON
CODE COMPLIANCE DEPARTMENT
933 TERRACE ST STE 202; MUSKEGON, MI 49440
(231) 724-6702 (Office) (231) 724-6790 (Fax)
DANGEROUS BUILDING REPORT
1153 PINE ST
10/22/2013
Inspection noted:
Exterior Home:
1) Broken/Boarded Windows
2) Boarded up doors
3) Storm door is broken
4) Windows have peeling paint
5) Windows have deteriorated glazing
6) No globes on the light fixtures
7) All wood has peeling paint
8) Roof is deteriorated
9) Missing siding
10) Missing screens
Garage Exterior:
1) Whole Garage has peeling paint
2) Roof is deteriorated
3) Front of garage has siding & the rest is wood
4) Broken/boarded window
5) South eave is deteriorated
BASED UPON A RECENT INSPECTION OF THE ABOVE PROPERTY, IT HAS BEEN
DETERMINED THAT THE STRUCTURE MEETS THE DEFINITION OF A DANGEROUS
AND/OR SUBSTANDARD BUILDING AS SET FORTH IN SECTION 10-61 OF THE
MUSKEGON CITY CODE.
DANGEROUS BUILDING INSPECTION REPORT
04/08/2014
Owner DANIELS BRENDA
944 E SEXTANT RD
MUSKEGON, MI 49441
Enforcement # EN140138
Property Address: 1153 PINE ST
Parcel # 24-205-238-0009-00
Date completed: 4/7/14
DEFICENCIES:
• THIS BUILDING NEEDS A ROOF AND SIDING
• THIS BUILDING HAS LEAD PAINT THROUGHTOUT
• THE FOUNDATION IS BAD AND NEEDS TO BE REPAIRED
• THERE IS ABESTOES IN THE BASEMENT
• MUCH OF THE PLASTER NEEDS TO BE REPAIRED
• THE HOUSE NEEDS NEW WINDOWS
• THE HOUSE NEEDS NEW DOORS
• THE FRONT PORCH NEEDS TO BE REPAIRED
• TO A PERMIT WE WILL NEED PROPER AND COMPLETE DRAWINGS
• HOUSE TO BE REWIRED TO CODE.
• ELECTRIC SERVICE TO BE REPLACED TO CODE.
• SMOKE ALARMS TO BE INSTALLED TO CODE.
• INSURE PROPER HEAT TO UPSTAIRS.
• INSPECT AND CERTIFY ALL HOUSE PLUMBING, INCLUDE BUILDING
SEWER AND WATER SERVICE.
• PROVIDE MIXING VALVE FOR TUB/SHOWER; A ONE HANDLE SCALD-
FREE IS OPTIONAL
• PROVIDE DRYER VENT TO CODE.
• INSPECT AND CERTIFY FURNACE, WATER HEATER AND CHIMNEY.
• REPAIR DUCTWORK (SUSPECTED ASBESTOS)
• CUT DOORS DOWN FOR BEDROOMS, WITHOUT RETURN.
• PRESSURE TEST GAS LINE.
____________________________ _______________
Kirk Briggs, Building Official Date
COMMISSION MEETING DATE: March 14, 2017
TO: Honorable Mayor and Commissioners
FROM: Jeffrey Lewis, Director of Public Safety
RE: Concurrence with the Housing Board of Appeals Notice and Order to Demolish.
Dangerous Building Case #: EN157069 – 1451 Park St.
SUMMARY OF REQUEST: This is to request that the City Commission Concur with the findings of
the Housing Board of Appeals that the structure located at 1451 Park St. is unsafe, substandard, a public
nuisance and that it be demolished within thirty (30) days or infraction tickets may be issued. It is
further requested that administration be directed to obtain bids for the demolition of the structure and
that the Mayor and City Clerk be authorized and directed to execute a contract 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 (they currently have obtained a demolition permit to complete the
demolition) the City would like to be able to follow through with the demolition bidding process.
Location and ownership: This structure is located on Park St. between Washington Ave. and West
Grand Ave. and is owned by Antwan Bruce.
Staff Correspondence: The Notice and Order to Repair was issued on 7/31/2015. On 2/2/2017 the HBA
declared the structure substandard and dangerous.
Financial Impact: General Funds
Budget action required: None
State Equalized value: $ 11,100
Estimated cost to repair: $ 15,000
Staff Recommendation: To concur with the Housing Board of Appeals decision to demolish.
Notification procedures:
1) Title search is performed so all interested parties are notified.
2) All notifications are posted on the structure.
3) All notifications are mailed by certified mail with a return card for signature.
Owner Contact: The owner or his father attended the meetings of the HBA excluding the 1st meeting
where the HBA declared the structure. It then went before the City Commission where this case was sent
back to the HBA to review it again.
Permits obtained: Multiple with many having been closed/cancelled/expired. There are 3 permits that are
currently open. There was supposed to be an inspection to finalize them on 2/28/2017 but the inspection
had been cancelled on all of them due to the work not having been completed.
This case had been tabled by the HBA, in order to work with the owner; eight times with the ninth time
having the HBA declaring this case.
If you disagree with the decision of the City Commission, you have the right to file a petition for
superintending control in Circuit Court for the County of Muskegon within 21 days after the City Commission
concurs.
Pictures from 1/20/2017:
CITY OF MUSKEGON
CODE COMPLIANCE DEPARTMENT
933 TERRACE ST STE 202
MUSKEGON, MI 49440
(231) 724-6702 (Office) (231) 724-6790 (Fax)
DANGEROUS BUILDING REPORT
1451 PARK ST
Inspection noted:
1. Roof flashing is missing or incorrectly installed. Aluminum flashing is loose or missing.
2. Where repairs to existing roof are made, materials and color must blend with balance of
roof. Roof has some shingles or parts of shingles missing.
3. Side of the roof has rotted or missing roof boards.
4. Have eave boards that are rotted or missing.
5. Is not protected from weather by a properly applied water-resistant paint or waterproof
finish. Surface must be scraped prior to applying any water -resistant paint or waterproof
finish.
6. Foundation walls have peeling paint. Paint must be properly scraped prior to painting.
7. Siding has holes in it or is rotted or missing. Siding corners are missing.
8. Siding has peeling paint--and is not protected from weather by a properly applied water
resistant paint or finish. This must be properly scraped before painting.
9. Opening in the wall has been closed off with material that does not blend with the rest of
the structure.
10. Window(s) has/have broken or cracked glass.
11. Window sill is broken, missing or rotted.
12. Window frame is rotted.
13. Window has glazing that is missing or deteriorated.
14. Many windows are boarded.
This listing is a list of exterior items. An interior inspection had not been completed. You would
need to contact SAFEbuilt for a trades inspection to get a complete listing of any additional items
that need to be completed.
BASED UPON A RECENT INSPECTION OF THE ABOVE PROPERTY, IT HAS BEEN
DETERMINED THAT THE STRUCTURE MEETS THE DEFINITION OF A DANGEROUS AND/OR
SUBSTANDARD BUILDING AS SET FORTH IN SECTION 10-61 OF THE MUSKEGON CITY
CODE.
Dangerous Building Inspection
Building Inspector Report
1451 Park
Muskegon, MI 49441
8-14-2015
1. Roof-structure appears to be in decent shape and weather tight.
2. Exterior surfaces require compliance, including but not limited to, doors, door and
window frames, cornices, porches, trim, balconies, decks and steps, shall be
maintained in good condition. Exterior surfaces shall be protected from the
elements by painting or other protective coverings. Peeling, flaking and chipped
paint shall be eliminated and surfaces repainted. All Windows shall be repaired or
replaced to be in sound condition, good repair and weather tight. Windows shall
be easily openable and capable of being held in position by window hardware.
Windows that are replace shall meet energy code. All exterior doors, door
assemblies and hardware shall be in good condition and weather tight. Locks at
all entrances to dwelling unit shall be tightly secure the door
3. Interior of Structure. All interior surfaces shall be repaired to be in good, clean
and sanitary condition. Damaged plaster or drywall shall be repaired or replaced
and peeling, chipping, flaking or abraded paint shall be repaired. Any decade
wood or other defective surface condition shall be corrected. Most damaged to
ceiling and walls that have been opened up to expose framing shall be insulated
to code.
4. Structural Floor Members. All floor joist members that have Rot or been cut,
notched, or bored are required to be fixed. Including the addition of any joist
hangers were needed. Surrounding foundation shall be free from open cracks and
breaks. Crawl spaces in basement will require to be capped with vapor barrier per
code, because non treated floor joist above are within 30” of bare soil.
5. Kitchen Facilities. Dwelling unit shall contain its own bathtub or shower, lavatory,
water closet and kitchen sink which shall be maintained in a sanitary, safe working
condition. The lavatory shall be place in the same room as the water closet or
located in a close proximity to the door leading directly into the room in which such
water closet is located. Every bathroom and toilet room shall comply with the
ventilation requirements, except that a window shall not be required in such spaces
equipped with a mechanical ventilation system. A kitchen sink shall not be used
as a substitute for the required lavatory.
6. Plumbing System. All plumbing fixtures shall be properly installed and
maintained in working order, and shall be kept free from obstructions, leaks, and
defects and be capable of performing the function for which such plumbing fixtures
are designed. All plumbing fixtures shall be maintained in a safe, sanitary and
functional condition. Every sink, lavatory, bathtub or shower, drinking fountain,
water closet or other plumbing fixture shall be properly connected to public water
system. All kitchen sinks, lavatories, laundry facilities, bathtubs and showers shall
be supplied with hot or tempered and cold running water. All plumbing fixtures
shall be properly connected to the public sewer system.
7. Mechanical System. Dwelling shall be provided with heating facilities capable of
maintaining a room temperature of 65 F in all habitable rooms, bathrooms and
toilet rooms.
8. Habitable Spaces. Every habitable space shall have at least one window of
approved size facing directly to the outdoors. Every habitable space shall have at
least one openable window. Habitable rooms shall not be less than 7 feet in any
plan dimension. Habitable rooms shall not have a ceiling height of less than 7 feet.
Every bedroom shall not be less than 70 square feet.
9. Structure must meet all Electrical, Plumbing, and Mechanical Codes before
the issue of a Certificate of Occupancy. All permits for work required shall
be performed by licensed contractors.
AGENDA ITEM NO. _______________
CITY COMMISSION MEETING __________________________
TO: Honorable Mayor and City Commissioners
FROM: Frank Peterson, City Manager
DATE: March 6, 2017
RE: Arena Proposal – Rad Dad’s
SUMMARY OF REQUEST:
City Staff has been working with a group of local business owners interested in creating a restaurant
and bar to service the LC Walker Arena and also provide more daily food/beverage options to the
downtown community. Rad Dad’s Taco and Tequila Bar is proposing to lease approximately 3,500
square feet of concourse space in the arena and 500 square feet of outdoor space to provide outdoor
dining space at the corner of Western Avenue and 4th Street. In addition to operating Rad Dad’s Taco
and Tequila Bar, the ownership group is interested in entering into a management agreement to
operate the arena’s numerous concession stands during event days.
The owners would like to open by June 1, 2017. Staff would like to begin implementation of the
concession management contract in August, with the expectation that full implementation will take
place prior to the beginning of the Lumberjacks’ 2017-18 hockey season.
FINANCIAL IMPACT:
Build-out costs are expected to be less than $350,000. If build out costs are at $350,000, the tenant’s initial
lease rate will be $43,750 annually for both interior and outdoor space. In the event that costs fall below
or exceed $350,000, any amount over or under $350,000 will be added to or subtracted from the tenant’s
lease rate as follows: for every dollar of variance, the tenant’s annual rent will increase/decrease by 12.5
cents. Regardless of savings, rent will be no less than $35,000 annually.
BUDGET ACTION REQUIRED:
$350,000 Capital Improvement is expected; the budget will be included as part of the 3rd Quarter Budget
Reforecast.
STAFF RECOMMENDATION:
To approve the request and authorize the City Manager to negotiate final lease and management terms.
COMMITTEE RECOMMENDATION:
None.
Commission Meeting Date: March 14, 2017
Date: March 18, 2017
To: Honorable Mayor and City Commissioners
From: Planning & Economic Development
RE: Letter of Intent for Loan
SUMMARY OF REQUEST:
To approve the request from 351 W Western LLC to have staff draft a Letter of Intent to fund
a portion of the project through the city’s Revolving Loan Fund and to commit to preleasing
10 residential units. Staff would draft the letter for the mayor to sign.
FINANCIAL IMPACT:
None
BUDGET ACTION REQUIRED:
None
STAFF RECOMMENDATION:
Approval to draft the Letter of Intent
COMMITTEE RECOMMENDATION:
None
3/18/2017
Unit 7 Loan
Staff has been working with 351 W Western LLC on a potential loan from the Revolving Loan Fund for
their project at 351 W Western Ave, also known as Unit 7.
Source of funds for the project:
Equity amount in business: $3,599,675 (52.78%)
Bank Participation: $2,720,000 (39.88%)
City RLF Loan $500,000 (7.33%)
Community Shores Bank has shared a Letter of Intent to fund $2,720,000.
The Community Foundation for Muskegon County has committed $1,500,000.
Muskegon Town Development LLC will provide $450,000 in cash equity.
They have applied for a $1.5 million grant from the MEDC.
They have applied for a $320,935 loan from MEDC.
The terms that staff and 351 W Western LLC have discussed:
5 years at 4% interest only
6th year -25-year amortization at 6% interest
Balloon payment after 15 years
Sign up for City of Muskegon Emails