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CITY OF MUSKEGON
CITY COMMISSION MEETING
NOVEMBER 14, 2017 @ 5:30 P.M.
MUSKEGON CITY COMMISSION CHAMBERS
933 TERRACE STREET, MUSKEGON, MI 49440
AGENDA
□ CALL TO ORDER:
□ PRAYER:
□ PLEDGE OF ALLEGIANCE:
□ ROLL CALL:
□ HONORS AND AWARDS:
□ INTRODUCTIONS/PRESENTATION:
□ CITY MANAGER’S REPORT:
□ CONSENT AGENDA:
A. Approval of Minutes City Clerk
B. Market Manager City Clerk
C. Sale of Parking Lot City Manager – Removed Per Staff Request
D. 1078 2nd Street and 1180 4th Street Purchase City Manager
E. Windward Pointe Master Planning City Manager
F. Approval of a Neighborhood Enterprise Zone Certificate Planning &
Economic Development (341 Terrace Point Circle)
G. Approval of a Neighborhood Enterprise Zone Certificate Planning &
Economic Development (307 Terrace Point Circle)
H. Approval of a Neighborhood Enterprise Zone Certificate Planning &
Economic Development (345 Terrace Point)
I. Approval of a Neighborhood Enterprise Zone Certificate Planning &
Economic Development (656 Terrace Point)
J. Approval of a Neighborhood Enterprise Zone Certificate Planning &
Economic Development (315 Terrace Point Circle)
Page 1 of 2
□ PUBLIC HEARINGS:
A. Request for an Industrial Facilities Exemption Certificate – KLO
Acquisition Planning & Economic Development
□ COMMUNICATIONS:
□ UNFINISHED BUSINESS:
□ NEW BUSINESS:
□ ANY OTHER BUSINESS:
□ PUBLIC PARTICIPATION:
► Reminder: Individuals who would like to address the City Commission shall do the following:
► Fill out a request to speak form attached to the agenda or located in the back of the room.
► Submit the form to the City Clerk.
► Be recognized by the Chair.
► Step forward to the microphone.
► State name and address.
► Limit of 3 minutes to address the Commission.
► (Speaker representing a group may be allowed 10 minutes if previously registered with City Clerk.)
□ CLOSED SESSION:
□ ADJOURNMENT:
ADA POLICY: THE CITY OF MUSKEGON WILL PROVIDE NECESSARY AUXILIARY AIDS AND SERVICES TO INDIVIDUALS
WHO WANT TO ATTEND THE MEETING UPON TWENTY-FOUR HOUR NOTICE TO THE CITY OF MUSKEGON. PLEASE
CONTACT ANN MARIE 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
Memorandum
To: Mayor and Commissioners
From: Frank Peterson
Re: City Commission Meeting
Date: November 09, 2017
Here is a quick outline of the items on our agenda(s):
WORK SESSION
1. Continued discussion on Medical Marihuana Licensing Facilities Act. Look for an
additional memo from staff later today or tomorrow on this issue.
2. Other Business. I’d like to use this time to make sure we’re on the same page regarding
the other items on the Tuesday Agenda.
3. Closed Session for the purposes of collective bargaining.
REGULAR MEETING
1. Under the Consent Agenda, we are asking the Commission to consider the following:
a. Approval of meeting minutes from the most-recent City Commission meeting.
b. Approval to move the market manager position from GoodTemps to official city
employment.
c. An amendment to the purchase agreement with Pigeon Hill Brewing to swap
Parcels A and B. Originally, we agreed to see the PHB the property to the east of
4th Street. Unfortunately, our records were inaccurate and the professional survey
demonstrated that this section of property was significantly smaller than we
originally thought. We are asking the commission to leave the terms unchanged
but instead sell the parcel to the WEST of 4th Street. This is a positive for the city,
as it does relieve some issues we were having related to designing a building and
site plan that properly engaged the Terrace Point side of the property (especially
related to walkability).
d. Authorization to expend $75,000 from the Sappi Economic development Fund to
participate in the hiring of DPZ CoDESIGN to develop a waterfront master plan for
the Windward Pointe site. Staff feels strongly that this development needs to be
properly master planned as both an urban and waterfront environment. We agree
with Pure Michigan that DPZ gives us the best opportunity for this. Staff, elected
officials, and resident stakeholders will be engaged throughout the process, and
as we look into the future regarding our own city-wide master plan, we feel that
this effort could give us a great head start on that process.
e. Authorization to purchase two homes – 1078 Second Street and 1180 4th
Street. Over the past few years, dozens of complaints have been
fielded/addressed regarding these homes. They are located in our Blight Fight
Area. The Second Street property is a non-conforming three-unit house with
limited parking. The 4th Street Property is a vacant HUD property that is
strategically located adjacent to a number of publicly-owned lots. Both could be
easily converted to single-family market rate housing and begin accommodating
families in the near downtown neighborhood. Staff was recently presented with
the opportunity to purchase these properties for a combined cost of $79,000. Staff
plans to convert the properties to single family residences and return them to the
neighborhood as private owner-occupied homes. These houses will be purchased
and rehabbed with Public Improvement Funds rather than CDBG/HOME funds in
an effort to create affordable housing without income restrictions. We expect that
these houses will attract families above the 80% AMI limit, but likely not above
125% AMI.
f. Approval of an Enterprise Zone Certificate for 341 Terrace Point Circle.
g. Approval of an Enterprise Zone Certificate for 307 Terrace Point Circle.
h. Approval of an Enterprise Zone Certificate for 345 Terrace Point Circle.
i. Approval of an Enterprise Zone Certificate for 656 Terrace Point Circle.
j. Approval of an Enterprise Zone Certificate for 315 Terrace Point Circle.
2. Under Public Hearings, we will be take input on the following:
a. A request from KL Outdoor for an industrial facilities exemption certificate.
Let me know if you have any questions/comments/concerns
Date: November 8, 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 October 24, 2017
Regular Meeting.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval of the minutes.
CITY OF MUSKEGON
CITY COMMISSION MEETING
OCTOBER 24, 2017 @ 5:30 P.M.
MUSKEGON CITY COMMISSION CHAMBERS
933 TERRACE STREET, MUSKEGON, MI 49440
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, October 24, 2017.
Commissioner Willie German, Jr., 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 Eric Hood, Commissioners
Ken Johnson, Byron Turnquist, Willie German, Jr., Debra Warren, and Dan
Rinsema-Sybenga, Acting City Manager – Public Safety Director, Chief Jeffrey
Lewis, City Attorney John Schrier, and City Clerk Ann Meisch.
INTRODUCTIONS/PRESENTATION:
Announcement of Recipient of Consumer’s Energy Customer Service Award
Donna Jean’s Sweet Dreams was awarded a check for $1,000 based on the
interaction with several “secret shoppers”. Donna Jean’s was recognized for
excellent customer service.
Muskegon Lake Hawks Lake Hawk’s Coach, Ron Jenkins, introduced several of
the Lake Hawks players and thanked the City Commission for supporting the
program.
2017-84 CONSENT AGENDA:
A. Approval of Minutes City Clerk
SUMMARY OF REQUEST: To approve minutes of the October 9, 2017 Worksession
Meeting and the October 10, 2017 Regular Meeting.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval of the minutes.
B. Extending Sub-recipient Agreements Community & Neighborhood
Page 1 of 5
Services
SUMMARY OF REQUEST: To extend the 2015 Sub-recipient Agreements with Love
INC until December 31, 2017.
FINANCIAL IMPACT: To allow Love INC the opportunity to expend the
remaining dollars from their 2015 grants:
Love INC $4,500 – Wheelchair Ramps
$3,500 – Utility Assistance
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDTAION: To extend the 2015 Sub-recipient Agreements
with Love INC until December 31, 2017.
Motion by Commissioner Rinsema-Sybenga, second by Vice Mayor Hood, to
approve the consent agenda as presented.
ROLL VOTE: Ayes: Gawron, Hood, Warren, German, Rinsema-Sybenga, Turnquist,
and Johnson
Nays: None
MOTION PASSES
2017-85 PUBLIC HEARINGS:
A. BID Special Assessment – Resolution Confirming Special Assessment
Roll Planning & Economic Development
SUMMARY OF REQUEST: The City Commission approved the creation of the BID
special assessment district at the September 26, 2017 meeting and the Special
Assessment Roll is now ready to be confirmed. The assessments will go towards
various downtown expenditures, including snow removal, landscaping,
marketing/promotion/events, streetscape and administration. The BID
assessment includes both a “Class A” and “Class B” district. Staff has prepared
three separate Special Assessment Rolls for the Commission to choose from with
the option of approving it for one, two, or three years.
FINANCIAL IMPACT: The City will contribute $25,000 per year towards
Downtown Muskegon Now as an administrative fee.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To approve the resolution approving the
confirmation of the special assessment roll for three years and authorize the
Mayor and Clerk to sign.
Planning Manager, Mike Franzak, updated the Commission on incidental
changes with the proposed roll, including the removal of Emory House located
at 446 W. Webster due to the address being a primary residence. Letters in
opposition were received regarding 632 & 629 W. Clay, 8 W. Walton, and the
Page 2 of 5
parking lot for Waterston Insurance.
PUBLIC HEARING COMMENCED:
Julia Hunter, representing Ginman Tire, is opposed to the special assessment.
Jillian Miller, representing City Hub Cyclery would like to see the services more
evenly applied to those paying the assessment.
Brian Pearson, Attorney representing Reliable Towing, is opposed to the special
assessment.
Maureen Bulkeis, representing Northwestern Mill Supply, is opposed to the
special assessment.
Jon Rooks, representing the Holiday Inn, is in favor of the assessment.
Doug Pollock, representing the Holiday Inn, is in favor of the assessment.
Clyde Whitehouse, representing Hot Rod Harley Davidson, supports the BID and
the assessment but would prefer the assessment be for one year.
Motion by Commissioner Rinsema-Sybenga, second by Vice Mayor Hood, to
close the public hearing and approve the resolution approving the confirmation
of the special assessment roll for three years and authorize the Mayor and Clerk
to sign.
ROLL VOTE: Ayes: Hood, Warren, Rinsema-Sybenga, Turnquist, Johnson, and
Gawron
Nays: German
MOTION PASSES
2017-86 NEW BUSINESS:
A. Concurrence with the Housing Board of Appeals Notice and Order to
Demolish the Following: Public Safety
1386 Ransom Street
312 Jackson Avenue
1772 5th Street
SUMMARY OF REQUEST: This is to request that the City Commission concur with
the findings of the Housing Board of Appeals that the structures are unsafe,
substandard, a public nuisance and that they be demolished within 30 days. It is
further requested that administration be directed to obtain bids for the
demolition of the structures and that the Mayor and City Clerk be authorized
and directed to execute 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.
FINANCIAL IMPACT: General Funds
Page 3 of 5
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: Hood, Warren, German, Rinsema-Sybenga, Turnquist,
Johnson, and Gawron
Nays: None
MOTION PASSES
B. Local Officers Compensation Committee Recommendation City
Clerk
SUMMARY OF REQUEST: The City of Muskegon’s Local Officers Compensation
Commission met on October 9, 2017 and is recommending salary increases and
travel budget increases for the Mayor and City Commissioners.
STAFF RECOMMENDATION: No action is required unless City Commission
rejects the Committee Recommendation.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
COMMITTEE RECOMMENDATION: The Local Officer’s Compensation
Commission recommends increasing the Mayor’s salary by $300 to $8,100
and the City Commission’s salary by $200 to $6,500 in addition to increasing the
Mayor’s Training, Education, and Travel budget by $500 and the City
Commission’s Training, Education, and Travel budget by $250.
Motion by Commissioner Warren, second by Vice Mayor Hood, to accept the
recommendation of the Local Officer’s Compensation Commission.
ROLL VOTE: Ayes: Warren, German, Rinsema-Sybenga, Turnquist, Hood
Nays: Johnson, Gawron
MOTION PASSES
C. Cooling Towers – LC Walker Arena City Manager
SUMMARY OF REQUEST: The cooling towers at the LC Walker Arena have
required significant repairs over the past three hockey seasons. Additional
significant repairs are again required to address a large coolant leak. Staff
would rather replace the system, which is more than 20 years old. Three bids
were received, with the lowest coming from Refrigeration Concepts, Inc. of
Comstock Park. RCI was the low bidder and has serviced these units regularly.
FINANCIAL IMPACT: $49,260 Expense to the Public Improvement Fund
Page 4 of 5
BUDGET ACTION REQUIRED: None at this time.
STAFF RECOMMENDATION: Authorize City Manager to accept the bid from
Refrigeration Concepts, Inc. in the amount of $49,260 to replace the cooling
towers at the LC Walker Arena.
Motion by Commissioner Johnson, second by Commissioner German to
authorize the City Manager to accept the bid from Refrigeration Concepts, Inc.
in the amount of $49,260 to replace the cooling towers at the LC Walker Arena.
ROLL VOTE: Ayes: German, Rinsema-Sybenga, Turnquist, Johnson, Gawron,
Hood, Warren
Nays: None
MOTION PASSES
ANY OTHER BUSINESS: Commissioner Johnson asked the City Clerk to give an
update regarding the upcoming election. City Clerk, Ann Meisch, reminded the
audience of the date of the election, polling place hours, and absentee ballot
availability.
PUBLIC PARTICIPATION: Public Comments were received.
ADJOURNMENT: The City Commission Meeting adjourned at 7:27 p.m.
Respectfully Submitted,
Ann Meisch, MMC, City Clerk
Page 5 of 5
AGENDA ITEM NO. _______________
CITY COMMISSION MEETING _________________________
TO: Honorable Mayor and City Commissioners
FROM: Frank Peterson, City Manager
DATE: November 8, 2017
RE: 1078 Second Street and 1180 4th Street Purchase
SUMMARY OF REQUEST:
Staff was recently presented with the opportunity to purchase these properties for a combined cost
of $79,000. Staff plans to convert the properties to a single family residences and return them to the
neighborhood as private owner-occupied homes. These houses will be purchased and rehabbed with
Public Improvement Funds rather than CDBG/HOME Funds in an effort to create affordable housing
without income restrictions.
FINANCIAL IMPACT:
$79,000, plus closing costs.
BUDGET ACTION REQUIRED:
None.
STAFF RECOMMENDATION:
Authorize City Manager to enter into a purchase agreement for 1078 Second Street in the amount of
$55,000 and 1180 Fourth Street in the amount of $24,000.
COMMITTEE RECOMMENDATION:
AGENDA ITEM NO. _______________
CITY COMMISSION MEETING _________________________
TO: Honorable Mayor and City Commissioners
FROM: Frank Peterson, City Manager
DATE: November 8, 2017
RE: Windward Pointe Master Planning
SUMMARY OF REQUEST:
The City and Pure Muskegon have the opportunity to engage a world premiere water-front
redevelopment master planning organization to help guide the vision for the former Sappi site. DPZ
CoDESIGN (DPZ) is widely recognized as a leading expert in the latest/best practices for planning, urban
design, and sustainable mixed-use development in waterfront communities. The cost to bring DPZ
into Muskegon to conduct the full master planning process is significant. DPZ will spend a number of
days in Muskegon gathering data, conducting public meetings and developing a sustainable 21st
Century plan for this site. As part of the Sappi Paper Mill’s closing, approximately $500,000 was left to
the City to help mitigate the effects of the plant’s closure. Staff is asking that $75,000 of those funds
be allocated to the master planning process for Windward Pointe. The total cost for the process is
expected to exceed $250,000.
FINANCIAL IMPACT:
$75,000
BUDGET ACTION REQUIRED:
To be included in the 1st Quarter Budget Reforecast.
STAFF RECOMMENDATION:
Authorize the expenditure of $75,000 from the Sappi Economic Development Fund.
COMMITTEE RECOMMENDATION:
Commission Meeting Date: November 14, 2017
Date: November 9, 2017
To: Honorable Mayor and City Commissioners
From: Planning & Economic Development
RE: Approval of a Neighborhood Enterprise Zone Certificate
SUMMARY OF REQUEST:
An application for a Neighborhood Enterprise Zone (NEZ) certificate has been received
from Robert and Michelle Klanke for the new construction of a home at 341 Terrace
Point Circle. The estimated cost for construction is $342,573. The applicant has met
local and state requirements for the issuance of the NEZ certificate.
FINANCIAL IMPACT:
Taxation will be applied as one-half of the previous year’s state average principal residence
millage rate to the value of the facility.
BUDGET ACTION REQUIRED:
None
STAFF RECOMMENDATION:
Approval of the NEZ certificate.
COMMITTEE RECOMMENDATION:
None
11/9/2017
Resolution No. ________
MUSKEGON CITY COMMISSION
RESOLUTION TO APPROVE THE ISSUANCE
OF A NEIGHBORHOOD ENTERPISE ZONE CERTIFICATE
WHEREAS, an application for a Neighborhood Enterprise Zone Certificate has been filed with
the City Clerk by Robert and Michelle Klanke to construct a home at 341 Terrace Point Circle in
the Terrace Point Condominium neighborhood, and;
WHEREAS, the applicant has satisfied both the local and state eligibility criteria for a
Neighborhood Enterprise Zone Certificate;
WHEREAS, the local unit of government is allowing the six (6) month grace period after
construction commencement to apply, which is allowed under the law;
WHEREAS, the Neighborhood Enterprise Zone Certificate will be good for twelve (12) years;
NOW, THEREFORE, BE IT RESOLVED that the application for a Neighborhood Enterprise
Zone Certificate for the new construction of a home by Robert and Michelle Klanke be
approved.
Adopted this 14th day of November, 2017.
Ayes:
Nays:
Absent:
By: __________________________
Stephen J. Gawron, Mayor
Attest: _________________________
Ann Meisch
City Clerk
11/9/17
CERTIFICATION
I hereby certify that the foregoing constitutes a true and complete copy of a resolution adopted
by the City Commission of the City of Muskegon, County of Muskegon, Michigan at a regular
meeting held on November 14, 2017.
By: ________________________
Ann Meisch
City Clerk
11/9/17
Commission Meeting Date: November 14, 2017
Date: November 9, 2017
To: Honorable Mayor and City Commissioners
From: Planning & Economic Development
RE: Approval of a Neighborhood Enterprise Zone Certificate
SUMMARY OF REQUEST:
An application for a Neighborhood Enterprise Zone (NEZ) certificate has been received
from Jesus Cutie for the new construction of a home at 307 Terrace Point Circle. The
estimated cost for construction is $319,004. The applicant has met local and state
requirements for the issuance of the NEZ certificate.
FINANCIAL IMPACT:
Taxation will be applied as one-half of the previous year’s state average principal residence
millage rate to the value of the facility.
BUDGET ACTION REQUIRED:
None
STAFF RECOMMENDATION:
Approval of the NEZ certificate.
COMMITTEE RECOMMENDATION:
None
11/9/2017
Resolution No. ________
MUSKEGON CITY COMMISSION
RESOLUTION TO APPROVE THE ISSUANCE
OF A NEIGHBORHOOD ENTERPISE ZONE CERTIFICATE
WHEREAS, an application for a Neighborhood Enterprise Zone Certificate has been filed with
the City Clerk by Jesus Cutie to construct a home at 307 Terrace Point Circle in the Terrace
Point Condominium neighborhood, and;
WHEREAS, the applicant has satisfied both the local and state eligibility criteria for a
Neighborhood Enterprise Zone Certificate;
WHEREAS, the local unit of government is allowing the six (6) month grace period after
construction commencement to apply, which is allowed under the law;
WHEREAS, the Neighborhood Enterprise Zone Certificate will be good for twelve (12) years;
NOW, THEREFORE, BE IT RESOLVED that the application for a Neighborhood Enterprise
Zone Certificate for the new construction of a home by Jesus Cutie be approved.
Adopted this 14th day of November, 2017.
Ayes:
Nays:
Absent:
By: __________________________
Stephen J. Gawron, Mayor
Attest: _________________________
Ann Meisch
City Clerk
11/9/17
CERTIFICATION
I hereby certify that the foregoing constitutes a true and complete copy of a resolution adopted
by the City Commission of the City of Muskegon, County of Muskegon, Michigan at a regular
meeting held on November 14, 2017.
By: ________________________
Ann Meisch
City Clerk
11/9/17
Commission Meeting Date: November 14, 2017
Date: November 9, 2017
To: Honorable Mayor and City Commissioners
From: Planning & Economic Development
RE: Approval of a Neighborhood Enterprise Zone Certificate
SUMMARY OF REQUEST:
An application for a Neighborhood Enterprise Zone (NEZ) certificate has been received
from Gordon and Kimberly Shutek for the new construction of a home at 345 Terrace
Point. The estimated cost for construction is $380,036. The applicant has met local
and state requirements for the issuance of the NEZ certificate.
FINANCIAL IMPACT:
Taxation will be applied as one-half of the previous year’s state average principal residence
millage rate to the value of the facility.
BUDGET ACTION REQUIRED:
None
STAFF RECOMMENDATION:
Approval of the NEZ certificate.
COMMITTEE RECOMMENDATION:
None
11/9/2017
Resolution No. ________
MUSKEGON CITY COMMISSION
RESOLUTION TO APPROVE THE ISSUANCE
OF A NEIGHBORHOOD ENTERPISE ZONE CERTIFICATE
WHEREAS, an application for a Neighborhood Enterprise Zone Certificate has been filed with
the City Clerk by Gordon and Kimberly Shutek to construct a home at 345 Terrace Point in the
Terrace Point Condominium neighborhood, and;
WHEREAS, the applicant has satisfied both the local and state eligibility criteria for a
Neighborhood Enterprise Zone Certificate;
WHEREAS, the local unit of government is allowing the six (6) month grace period after
construction commencement to apply, which is allowed under the law;
WHEREAS, the Neighborhood Enterprise Zone Certificate will be good for twelve (12) years;
NOW, THEREFORE, BE IT RESOLVED that the application for a Neighborhood Enterprise
Zone Certificate for the new construction of a home by Gordon and Kimberly Shutek be
approved.
Adopted this 14th day of November, 2017.
Ayes:
Nays:
Absent:
By: __________________________
Stephen J. Gawron, Mayor
Attest: _________________________
Ann Meisch
City Clerk
11/9/17
CERTIFICATION
I hereby certify that the foregoing constitutes a true and complete copy of a resolution adopted
by the City Commission of the City of Muskegon, County of Muskegon, Michigan at a regular
meeting held on November 14, 2017.
By: ________________________
Ann Meisch
City Clerk
11/9/17
Commission Meeting Date: November 14, 2017
Date: November 9, 2017
To: Honorable Mayor and City Commissioners
From: Planning & Economic Development
RE: Approval of a Neighborhood Enterprise Zone Certificate
SUMMARY OF REQUEST:
An application for a Neighborhood Enterprise Zone (NEZ) certificate has been received
from Patrick Loughridge for the new construction of a home at 656 Terrace Point. The
estimated cost for construction is $284,705. The applicant has met local and state
requirements for the issuance of the NEZ certificate.
FINANCIAL IMPACT:
Taxation will be applied as one-half of the previous year’s state average principal residence
millage rate to the value of the facility.
BUDGET ACTION REQUIRED:
None
STAFF RECOMMENDATION:
Approval of the NEZ certificate.
COMMITTEE RECOMMENDATION:
None
11/9/2017
Resolution No. ________
MUSKEGON CITY COMMISSION
RESOLUTION TO APPROVE THE ISSUANCE
OF A NEIGHBORHOOD ENTERPISE ZONE CERTIFICATE
WHEREAS, an application for a Neighborhood Enterprise Zone Certificate has been filed with
the City Clerk by Patrick Loughridge to construct a home at 656 Terrace Point in the Terrace
Point Condominium neighborhood, and;
WHEREAS, the applicant has satisfied both the local and state eligibility criteria for a
Neighborhood Enterprise Zone Certificate;
WHEREAS, the local unit of government is allowing the six (6) month grace period after
construction commencement to apply, which is allowed under the law;
WHEREAS, the Neighborhood Enterprise Zone Certificate will be good for twelve (12) years;
NOW, THEREFORE, BE IT RESOLVED that the application for a Neighborhood Enterprise
Zone Certificate for the new construction of a home by Patrick Loughridge be approved.
Adopted this 14th day of November, 2017.
Ayes:
Nays:
Absent:
By: __________________________
Stephen J. Gawron, Mayor
Attest: _________________________
Ann Meisch
City Clerk
11/9/17
CERTIFICATION
I hereby certify that the foregoing constitutes a true and complete copy of a resolution adopted
by the City Commission of the City of Muskegon, County of Muskegon, Michigan at a regular
meeting held on November 14, 2017.
By: ________________________
Ann Meisch
City Clerk
11/9/17
Commission Meeting Date: November 14, 2017
Date: November 9, 2017
To: Honorable Mayor and City Commissioners
From: Planning & Economic Development
RE: Approval of a Neighborhood Enterprise Zone Certificate
SUMMARY OF REQUEST:
An application for a Neighborhood Enterprise Zone (NEZ) certificate has been received
from Cheryl Parker for the new construction of a home at 315 Terrace Point Circle. The
application states that the estimated cost for construction will be $347,032. The
applicant has met local and state requirements for the issuance of the NEZ certificate.
FINANCIAL IMPACT:
Taxation will be applied as one-half of the previous year’s state average principal residence
millage rate to the value of the facility.
BUDGET ACTION REQUIRED:
None
STAFF RECOMMENDATION:
Approval of the NEZ certificate.
COMMITTEE RECOMMENDATION:
None
11/9/2017
Resolution No. ________
MUSKEGON CITY COMMISSION
RESOLUTION TO APPROVE THE ISSUANCE
OF A NEIGHBORHOOD ENTERPISE ZONE CERTIFICATE
WHEREAS, an application for a Neighborhood Enterprise Zone Certificate has been filed with
the Acting City Clerk by Cheryl Parker to construct a home at 315 Terrace Point Circle in the
Terrace Point Condominium neighborhood, and;
WHEREAS, the applicant has satisfied both the local and state eligibility criteria for a
Neighborhood Enterprise Zone Certificate;
WHEREAS, the local unit of government is allowing the six (6) month grace period after
construction commencement to apply, which is allowed under the law;
WHEREAS, the Neighborhood Enterprise Zone Certificate will be good for twelve (12) years;
NOW, THEREFORE, BE IT RESOLVED that the application for a Neighborhood Enterprise
Zone Certificate for the new construction of a home by Cheryl Parker be approved.
Adopted this 14th day of November, 2017.
Ayes:
Nays:
Absent:
By: __________________________
Stephen J. Gawron, Mayor
Attest: _________________________
Ann Meisch
City Clerk
11/9/17
CERTIFICATION
I hereby certify that the foregoing constitutes a true and complete copy of a resolution adopted
by the City Commission of the City of Muskegon, County of Muskegon, Michigan at a regular
meeting held on November 14, 2017.
By: ________________________
Ann Meisch
City Clerk
11/9/17
Commission Meeting Date: November 14, 2017
Date: November 9, 2017
To: Honorable Mayor and City Commissioners
From: Planning & Economic Development
RE: Public Hearing - Request for an Industrial Facilities Exemption
Certificate – KLO Acquisition
SUMMARY OF REQUEST:
Pursuant to Public Act 198 of 1974, as amended, KLO Acquisitions, LLC, 700 Terrace Point,
has requested the issuance of an Industrial Facilities Tax (IFT) Exemption Certificate. The
company will be locating its corporate headquarters at this location, which will result in a real
property investment of almost $450,000 and will create up to 35 new jobs. This qualifies
them for a tax abatement of 12 years under the City’s IFT policy.
FINANCIAL IMPACT:
The City will capture certain additional property taxes generated by the expansion.
BUDGET ACTION REQUIRED:
None
STAFF RECOMMENDATION:
Approval of the attached resolution granting an Industrial Facilities Exemption Certificate for
a term of twelve (12) years for real property.
COMMITTEE RECOMMENDATION:
None
11/9/2017
Resolution No. _______
MUSKEGON CITY COMMISSION
RESOLUTION APPROVING APPLICATION FOR ISSUANCE
OF INDUSTRIAL FACILITIES EXEMPTION CERTIFICATE
KLO ACQUISITION, LLC
WHEREAS, pursuant to P.A. 198 of 1974 as amended, after duly noticed public hearing held on August
22, 2017, this Commission by resolution established an Industrial Development District as
requested by KLO Acquisition, LLC, which included the property leased by KLO Acquisition, LLC,
700 Terrace Point, Muskegon, Michigan 49440; and
WHEREAS, KLO Acquisition, LLC, has filed an application for the issuance of an Industrial Facilities Tax
Exemption Certificate with respect to building improvements to be installed within said Industrial
Development District; and
WHEREAS, said application was filed no later than six months after project commencement and the Muskegon
City Commission held a public hearing on November 14, 2017, at the Muskegon City Hall in Muskegon,
Michigan at 5:30 p.m. at which hearing the applicant, the assessor and representatives of the affected
taxing units were given written notice and were afforded an opportunity to be heard on said application;
and
WHEREAS, the real property improvements are calculated to and will have the reasonable likelihood to retain,
create, or prevent the loss of employment in Muskegon, Michigan; and
WHEREAS, the aggregate SEV of real property exempt from ad valorem taxes within the City of Muskegon, will
not exceed 5% of an amount equal to the sum of the SEV of the unit, plus the SEV of personal and real
property thus exempted.
NOW, THEREFORE, BE IT RESOLVED by the Muskegon City Commission of the City of Muskegon,
Michigan that:
1) The Muskegon City Commission finds and determines that the Certificate considered together with
the aggregate amount of certificates previously granted and currently in force under Act No. 198 of
the Public Act of 1974 as amended and Act No. 255 of the Public Acts of 1978 as amended shall
not have the effect of substantially impeding the operation of the City of Muskegon or impairing the
financial soundness of a taxing unit which levies ad valorem property taxes in the City of
Muskegon.
2) The application of KLO Acquisition, LLC, for the issuance of an Industrial Facilities Tax Exemption
Certificate with respect to the installation of real property improvements on the following described
parcel of real property situated within the City of Muskegon to wit:
3) The Industrial Facilities Tax Exemption Certificate is issued and shall be and remain in force and
effect for a period of 12 years on real property.
Adopted this 14th Day of November 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 a resolution adopted by the Muskegon City
Commission, County of Muskegon, Michigan, at a regular meeting held on November 14, 2017.
______________________________
Ann Meisch
Clerk
CITY OF MUSKEGON
CONTRACT FOR TAX ABATEMENT
Act 198 Public Acts of 1974
AGREEMENT between CITY OF MUSKEGON, a municipal corporation of 933
Terrace Street, Muskegon, Michigan 49441, (“City”) and KLO Acquisition, LLC.
(“Company”).
Recitals:
A. The Company has applied to City for the establishment of an industrial
development district or industrial rehabilitation district pursuant to the provisions of Act
198 of the Public Acts of 1974, as amended, which act requires a contract between the
City and the Company to be agreed and submitted with the Company’s subsequent
anticipated application for an industrial facilities exemption certificate.
B. That in addition to the statutory requirement, the City has determined that it is in
the best interests of the taxpayers, property owners and residents of the City that this
Agreement be approved and executed prior to the establishment of the requested district,
and the City deems this Contract, together with the conditions set forth in the said Act to
constitute a necessary element in the City’s determination whether or not to create the
district.
C. The Company intends to install the project set forth in its application (“project”)
which it believes qualifies for the process of establishing the district and the application
for industrial facilities exemption certificate.
D. The City, provided this Agreement is executed, will determine whether to create
the district based upon the potential for the production of permanent jobs, the
continuation or increase of economic activity, planning and zoning considerations and the
City’s general plan and intentions regarding economic development. In addition to the
City policy considerations and predictions that the Company’s proposed district and
certificate benefit the community in those ways, the City has further determined that the
contractual commitments made by the Company to thereby assist the community shall be
binding on the Company and necessary to continue the tax exemption made possible by
the certificate.
NOW THEREFORE THE PARTIES AGREE:
1. COMPANY AGREEMENT. The Company irrevocably commits to the
investment, job retention and job creation promises made in its application, a copy of
which is attached hereto and incorporated herein. In particular the Company agrees:
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1.1 That 100% of the jobs shall be filled and in existence with full-time
employees by a date no later than two (2) years from the date of the granting of
the certificate by the State Tax Commission.
1.2 The Company shall meet the affirmative action goal included in the
application or in any documents supplied by the City and utilized by the
Company, including any additional representations made to the City Commission
on or before the date two (2) years after the granting of the certificate by the State
Tax Commission. It shall maintain the said levels of employment diversity during
the period of the certificate.
1.3 The Company, by the end of two (2) years from the date of the grant of the
certificate by the State Tax Commission shall have completed the investment of
$442,517 in real property improvements as shown in the application.
1.4 That the improvements and equipment to receive the tax abatement treatment
shall be completed on or before the date two (2) years from the date of granting of
the certificate by the State Tax Commission.
1.5 The Company shall pay its specific taxes required by the act in a timely
manner, and shall not delay payments so as to incur any penalties or interest.
1.6 The Company shall not appeal the valuation of any real or personal property
at the facility to the Michigan Tax Tribunal or the State Tax Commission.
1.7 The Company shall fully cooperate with the City representatives in
supplying all requested and required documentation regarding jobs, investment,
the meeting of all goals and the timely installation and utilization of equipment
and improvements. The City shall be entitled to inspect at reasonable hours the
Company’s premises where the said improvements and equipment have been
installed and where the said jobs are performed.
1.8 The Company shall maintain, during the entire period for which the tax
abatement is granted, the level of jobs, affirmative action goals, production and
utilization of the improvements and equipment at the site where the district has
been created and for which the tax exemption has been granted.
1.9 The Company shall not cause or fail to cure the release of any hazardous
substance, or the violation of any environmental law on its premises in the City.
It shall report any releases to the appropriate governmental authority in a timely
and complete manner, and provide copies of said report documentation to the
City. It shall comply with all orders and actions of any governmental agency
having authority.
1.10 The Company shall maintain the equipment and improvements so as to
minimize physical or functional obsolescence.
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1.11 The Company shall continue to operate its business location in the City,
containing the same number of and type of jobs, for the term of the certificate.
2. AGREEMENT BY THE CITY. Provided this contract has been executed and
further provided all applications to create the district and achieve the industrial facility
exemption certificate have been properly filed, the City shall, in a timely manner,
determine in a public meeting to create the district and receive, process, and approve
thereafter the Company’s application for an industrial facilities exemption certificate.
The City may consider this contract in a meeting separate from and prior to the meeting
in which the City considers the creation of the district and approval of the application for
certificate. Further, the City shall require the submission of this contract signed by the
Company together with its applications, before creating the district.
3. EVENTS OF DEFAULT. The following actions or failures to comply shall be
considered events of default by the Company:
3.1 Failure to meet any of the commitments set forth above.
3.2 The closing of the Company’s facilities in the City. Closing shall mean for
purpose of this Agreement, the removal, without transfer to another site within the
City of substantially all of the production facilities, and the elimination of
substantially all the jobs created or retained thereby, which are set forth in the
Company’s application.
3.3 Failure to afford to the City the documentation and reporting required.
3.4 The failure to create or retain jobs, meet affirmative action goals or expend
the funds on equipment and improvements as represented in the application
within the times required hereby.
3.5 The bankruptcy or insolvency of the Company.
3.6 The failure to pay any and all taxes and assessments levied on the
Company’s property or any other taxes, local, state or federal, including but not
limited to City income taxes and the withholding of said City income taxes from
employees as required by the City Income Tax Ordinance.
3.7 The performance or omission of any act which would lead to revocation
under MCLA 207.565, being §15 of the Act.
3.8 The violation of any provisions, promises, commitments, considerations or
covenants of this Agreement.
4. REMEDIES ON DEFAULT. In the event of any of the above defaults the City
shall have the following remedies which it may invoke without notice, except as may be
reasonably required by the Company’s rights to due process:
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4.1 In the event of closing as determined after investigation of the facts and a
public hearing, the Company shall be immediately liable for penalties to be paid
forthwith to the city as determined as follows:
4.1.1 The Company shall pay to the City for prorata distribution to the
taxing units experiencing the abatement, an amount equal to the difference
between the industrial facilities tax which it has paid, and the total
property taxes to the relevant taxing units which it would have paid, given
its installations of improvements and equipment, during the years for
which the certificate was in effect.
4.1.2 Immediate Revocation. The Company hereby consents to
revocation to the IFT certificate before the State Tax Commission, without
hearing, and the City shall submit a copy of this Agreement to the State
Tax Commission in connection with its revocation procedure, giving
notice that the default has occurred and immediate revocation should
occur.
4.2 In the event the improvements and equipment have not been installed before
the two (2) year period, in addition to the revocation procedures before the State
Tax Commission, the abatement should immediately be reduced by the City
proportionately, and any installations which have not been finished at the end of
said two (2) year period shall not be eligible for the abatement thereafter and shall
be placed on the regular tax roll.
4.3 Failure to Expend the Funds Represented. In the event, (whether or not the
installations have been completed), the Company has not expended the funds it
has represented on its application that it would invest for the installation of
equipment, the abatement shall be reduced prorata, and any remaining value of
equipment shall be placed on the regular tax roll.
4.4 Job Creation and Retention. In the event the promised number of jobs have
not been created or retained at the end of the two (2) years after the grant of the
certificate by the State Tax Commission, the abatement shall be proportionately
reduced.
4.5 Affirmative Action Goals. In the event, after one (1) year from the grant of
the certificate by the State Tax Commission, the affirmative action goals of the
City for additional jobs have not been met on a prorata basis, the abatement shall
be revoked.
4.6 For other violations of this Agreement or for actions or omissions by the
Company amounting to grounds for revocation by statue, the City shall
recommend to the State Tax Commission immediate revocation of the certificate.
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4.7 Special Assessment. For any amount due to be paid to the City, under this
Section 4, the Company consents that the City shall have a personal action against
the Company for the said amount, and in addition, cumulatively, and not by
election, the City shall have a special assessment lien on all the property of the
Company personal and real, located in the City, for the collection of the amounts
due as and in the manner of property taxes and in such case the collection of the
said special assessment shall be accomplished by addition by the City to the
Company’s property tax statement regularly rendered.
5. Governing Law. This Agreement shall be construed and enforced in accordance
with the laws of the State of Michigan applicable to contracts made and to be
performed within the State of Michigan.
6. Counterparts. This Agreement may be executed in one or more counterparts.
Notwithstanding such execution all such counterparts shall constitute one and the same
Agreement.
7. Benefit. This Agreement shall be binding upon and inure to the benefit of the
respective parties, their successors and personal representatives.
8. Effective Date. This Agreement shall be effective on the date the State of
Michigan Tax Commission grants the company at Industrial Facilities Exemption
Certificate.
CITY OF MUSKEGON
By _________________________
Stephen J. Gawron, Mayor
Date _________________________
and___________________________
Ann Meisch, Clerk
Date _________________________
By___________________________
Its______________________
Date _________________________
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