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CITY OF MUSKEGON
CITY COMMISSION MEETING
NOVEMBER 28, 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:
A. City of Muskegon Employees – Years of Service Awards
B. Recognition of Fall 2017 Citizen’s Academy Graduates
□ INTRODUCTIONS/PRESENTATION:
□ CITY MANAGER’S REPORT:
□ CONSENT AGENDA:
A. Approval of Minutes City Clerk
B. Scanning Services City Manager
C. Sale of Parking Lot City Manager
□ PUBLIC HEARINGS:
□ COMMUNICATIONS:
□ UNFINISHED BUSINESS:
□ NEW BUSINESS:
A. Concurrence with the Housing Board of Appeals Notice and Order to
Demolish the Following: Public Safety
638 Oak Avenue
□ ANY OTHER BUSINESS:
□ PUBLIC PARTICIPATION:
► Reminder: Individuals who would like to address the City Commission shall do the following:
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► 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 27, 2017
Here is a quick outline of the items on our agenda:
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 of a scanning services invoice totaling $18,072.65. Much of the
document scanning was aimed at the preservation of old building plans, site plans,
etc. An entire room on the second floor had been dedicated to storing these
documents, but it had grown cluttered and disorganized over the years. I
originally approved the scanning services on a per sheet basis expecting 30,000 or
so sheets to be scanned. We ended up with nearly 65,000, which pushed the cost
above my threshold for approval. With that said, the service has already been
completed and we are simply asking the Commission to authorize the expenditure
after-the-fact.
c. Approval of the revised purchase agreement with Pigeon Hill Brewing for the
purchase of a city parking lot on Shoreline Drive. Originally, we had this item on
the agenda for approval two weeks ago, but decided remove it from consideration
while we finalized the purchase agreement and land survey. Everything is
complete and we are proposing to sell Pigeon Hill Brewing the portion of the
parking lot bounded by Shoreline Drive to the south, 5th Street to the west, 5th
Street to the east, and the Mart Dock to the north. Pigeon Hill has committed to
building a brewing/canning facility and tasting room to accommodate their fast-
growing distribution business. Pigeon Hill Brewing is committed to building a
facility that helps connect the downtown and the lakeshore architecturally, and
the MEDC has offered the City of Muskegon $15,000 in planning grants to help
ensure that the site is designed appropriately to accomplish this.
2. Under the New Business, we are asking the Commission to consider the following:
a. Concurrence with the housing board of appeals to demolish 638 Oak Ave.
Date: November 22, 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 November 13, 2017
Worksession Meeting and the November 14, 2017 Regular Meeting.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval of the minutes.
CITY OF MUSKEGON
CITY COMMISSION WORKSESSION
Monday, November 13, 2017
5:30 p.m.
City Commission Chambers
MINUTES
2017-87
Present: Gawron, Hood, Warren, German, Rinsema-Sybenga, Johnson, and
Turnquist
Absent: None
2017-88 Michigan’s Medical Marihuana Facilities Licensing Act
Discussion of the Michigan Medical Marihuana Facilities Licensing Act continued from
the October 9, 2017 Worksession Meeting. Commissioners have had an opportunity
over the past month to have contact with residents to get their input and to do individual
research.
Motion by Commissioner Johnson, second by Commissioner Warren, to refer the
drafted opt-in ordinance to the Planning Commission for review at their January
2018 meeting.
Ayes: Johnson, Gawron, Warren
Nays: Hood, German, Rinsema-Sybenga, and Turnquist
MOTION FAILS
Comments were received from the public.
2017-89 CLOSED SESSION:
Collective Bargaining
Motion by Vice Mayor Hood, second by Commissioner Johnson, to go into
Closed Session for the purpose of collective bargaining discussions.
Ayes: Gawron, Hood, German, Rinsema-Sybenga, Turnquist, Johnson
Nays: None
MOTION PASSES
Motion by Vice Mayor Hood, second by Commissioner Turnquist to come out of
Closed Session.
Ayes: Hood, Warren, German, Rinsema-Sybenga, Turnquist, Johnson, and
Gawron
Nays: None
MOTION PASSES
Any Other Business
Comments were received of the Commission.
ADJOURNMENT: The Worksession meeting adjourned at 9:15 p.m.
Respectfully Submitted,
Ann Marie Meisch, MMC – City Clerk
CITY OF MUSKEGON
CITY COMMISSION MEETING
NOVEMBER 14, 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, November 14, 2017.
George Monroe, Evanston Avenue Baptist Church, opened the meeting with
prayer, after which the Commission and public recited the Pledge of Allegiance
to the Flag.
ROLL CALL FOR THE REGULAR COMMISSION MEETING:
Present: Mayor Stephen J. Gawron, Vice Mayor Eric Hood, Commissioners
Ken Johnson, Byron Turnquist, Willie German, Jr., Debra Warren, and Dan
Rinsema-Sybenga, City Manager Frank Peterson, City Attorney John Schrier, and
City Clerk Ann Meisch.
2017-90 CONSENT AGENDA:
A. Approval of Minutes City Clerk
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.
C. Sale of Parking Lot City Manager
ITEM REMOVED PER STAFF REQUEST
F. Approval of a Neighborhood Enterprise Zone Certificate Planning &
Economic Development (341 Terrace Point Circle)
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.
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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 NEZ certificate.
G. Approval of a Neighborhood Enterprise Zone Certificate Planning &
Economic Development (307 Terrace Point Circle)
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 NEZ certificate.
H. Approval of a Neighborhood Enterprise Zone Certificate Planning &
Economic Development (345 Terrace Point)
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 NEZ certificate.
I. Approval of a Neighborhood Enterprise Zone Certificate Planning &
Economic Development (656 Terrace Point)
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 city.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval of NEZ certificate.
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J. Approval of a Neighborhood Enterprise Zone Certificate Planning &
Economic Development (315 Terrace Point Circle)
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 estimated cost for construction is
$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 NEZ certificate.
Motion by Commissioner Warren, second by Commissioner Johnson, to approve
the consent agenda as presented, except items B, D, and E.
ROLL VOTE: Ayes: German, Rinsema-Sybenga, Turnquist, Johnson, Gawron,
Hood, and Warren
Nays: None
MOTION PASSES
2017-91 ITEMS REMOVED FROM CONSENT AGENDA:
B. Market Manager City Clerk
SUMMARY OF REQUEST: Over the past year, the market has grown with more
activities, use of the kitchen, and the food hub pilot program. With the addition
of three food truck rallies, Dining in the Dark, Farm-To-Table event, Halloween
Bash, etc. in just the last year or so, the market has grown beyond a part-time
Market Manager. This past year, the Market Manager averaged 35 hours per
week with plenty more to do if able to.
FINANCIAL IMPACT: When calculating the cost of the Market Manager
through the temporary service, we have found it will cost an additional $4,000
per year to hire a Market Manager full-time with benefits.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To create a full-time position for Market Manager.
Motion by Commissioner Turnquist, second by Commissioner Rinsema-Sybenga,
to create a full-time position for Market Manager.
ROLL VOTE: Ayes: Rinsema-Sybenga, Turnquist, Johnson, Gawron, Hood, Warren,
and German
Nays: None
MOTION PASSES
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D. 1078 2nd Street and 1180 4th Street Purchase City Manager
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 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.
Motion by Commissioner Turnquist, second by Commissioner Rinsema-Sybenga,
to 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.
ROLL VOTE: Ayes: Turnquist, Johnson, Gawron, Hood, Warren, German, and
Rinsema-Sybenga
Nays: None
MOTION PASSES
E. Windward Pointe Master Planning City Manager
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 of 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.
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Motion by Commissioner German, second by Commissioner Johnson, to
authorize the expenditure of $75,000 from the Sappi Economic Development
Fund.
ROLL VOTE: Ayes: Johnson, Gawron, Hood, Warren, German, Rinsema-Sybenga,
and Turnquist.
Nays: None
MOTION PASSES
2017-92 PUBLIC HEARINGS:
A. Request for an Industrial Facilities Exemption Certificate – KLO
Acquisition Planning & Economic Development
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 additional property taxes
generated by the expansion.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval of the resolution granting an Industrial
Facilities Exemption Certificate for a term of twelve years for real property.
PUBLIC HEARING COMMENCED: No public comments were received under
public hearing for this issue.
Motion by Commissioner Johnson, Second by Commissioner German, to close
the public and approve the resolution granting an Industrial Facilities Exemption
Certificate for a term of twelve (12) years for real property.
PUBLIC PARTICIPATION: Public Comments were received.
ADJOURNMENT: The City Commission Meeting adjourned at 6:40 p.m.
Respectfully Submitted,
Ann Meisch, MMC, City Clerk
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AGENDA ITEM NO. _______________
CITY COMMISSION MEETING _________________________
TO: Honorable Mayor and City Commissioners
FROM: Frank Peterson, City Manager
DATE: November 28, 2017
RE: Scanning Services
SUMMARY OF REQUEST:
This past summer, the City engaged with Alcogare LLC to scan a number of documents for digital
archiving and storage. The scanning was completed on a per-sheet basis. Many of the documents
were old building plans and site plans – the total quantity was unknown at the onset of the process.
Upon completion, a total of 64,883 documents had been scanned at a cost of $18,072.65. Staff is
seeking formal approval to expense the $18,072.65.
FINANCIAL IMPACT:
$18,072.65 in general fund expenses.
BUDGET ACTION REQUIRED:
None at this time. The expenses will be included in the budget reforecast.
STAFF RECOMMENDATION:
Authorize $18,072.65 in document scanning and archiving costs.
COMMITTEE RECOMMENDATION:
AGENDA ITEM NO. _______________
CITY COMMISSION MEETING _________________________
TO: Honorable Mayor and City Commissioners
FROM: Frank Peterson, City Manager
DATE: November 28, 2017
RE: Sale of Parking Lot
SUMMARY OF REQUEST:
The City Commission previously authorized the City Manager to enter into an agreement to sell Pigeon
Hill Brewing a portion of the city-owned parking lots on Shoreline Drive to accommodate the
company’s expansion plans. The agreement originally called for Sub-Parcels 1 and 2 (collectively Parcel
A) to be sold to Pigeon Hill Brewing and Sub-Parcel 3 (now identified as Parcel B) to be retained by the
City of Muskegon. Upon completion of the formal property survey, it was determined that the size of
Parcel A was significantly less than originally understood by both parties. Parcel A is now insufficiently
sized to accommodate Pigeon Hill’s expansion. Parcel B is sufficiently sized to accommodate the
expansion. Accordingly, staff is asking the City Commission to amend the original purchase agreement
by replacing Parcel A with Parcel B, which would leave Parcel A in the city’s ownership and place Parcel
B in Pigeon Hill Brewing’s ownership.
FINANCIAL IMPACT:
None
BUDGET ACTION REQUIRED:
None.
STAFF RECOMMENDATION:
Authorize City Manager to sign the purchase agreement and proceed with the sale of Parcel B.
COMMITTEE RECOMMENDATION:
COMMISSION MEETING DATE: November 28, 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 #: EN1714969, 638 Oak 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 638 Oak Ave is
unsafe, substandard, a public nuisance and that it be demolished within thirty (30) days.
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.
Location and ownership: This structure is located on Oak Ave between South Getty
Street and Scott Street in the Angell Neighborhood. The structure is owned by Lara
Meier & Amanda Beck, 1714 Jarman St, Muskegon Hts, MI 49444.
Staff Correspondence: The “notice & order to repair” was sent on 10/03/2017. A “10
day notice” was sent on 10/24/2017 for the November 2, 2017 HBA hearing. On
November 2, 2017 the HBA declared the structure substandard and dangerous.
Financial Impact: General Funds
Budget action required: None
State Equalized value: $15,400
Estimated cost to repair: $24,300
Staff Recommendation: To concur with the Housing Board of Appeals decision to
demolish all structures on the property
Owner Contact: On September 29, 2017, the owner (Amanda) contacted the
Inspection Department and stated the home was sold on a land contract over two years
ago. The buyer defaulted on the land contract and the home was retained by the
owner’s on September 18, 2017. The owner stated the home is need of numerous
repairs and they didn’t know how they were going to pay for everything. Owner was
trying to sell the home “as is”.
Permits obtained: None
DANGEROUS BUILDING INSPECTION
Enforcement # EN1714969
Property Address: 638 OAK AVE
Parcel # 24-205-040-0004-20
Date completed: September 29, 2017 (exterior only)
DEFICENCIES:
1) Siding:
a) Siding is missing in several locations
b) Siding not complete
c) Siding corners are missing
2) Windows:
a) Several new windows installed without permits
b) Glazing is missing
c) Sills rotted or missing
d) Peeling or no paint
e) Torn or missing screens
f) Boarded windows have weather exposed interior grade plywood (OSB)
g) Storms windows are broken or missing
3) Front enter step was replaced and does not meet code for tread height
4) Foam spray insulation cannot be exposed to sunlight
5) French door installed on upper floor without a permit; needs to be secure as
the door opens to no porch or landing
6) Boarded doorway on west side of home wave exposed interior grade plywood
(OSB)
7) Roof:
a) Roof has been patch with materials not approved for roofing
b) Shingles are missing and rotted
c) Soffits and fascia are rotted, missing and peeling paint
Date completed: October 12, 2017 (interior)
INTERIOR DEFICENCIES:
1. Electrical Service: The current service is protected by fuses. There has
been numerous updates and changes to the electrical circuits throughout
the home without permits and not to code. The electrical service must be
upgraded to circuit breakers.
2. Smoke detection: Hardwired smoke detection must be added throughout
the home with locations determined by code
3. Basement: Sewage backup or leak has caused at least 2 feet of standing
sewage. Sewage back up or leak must be repaired and the basement must
be cleaned & sanitized (sludge at time of inspection)
4. Furnace & water heaters (2): Due to the sewage leak, the furnace and water
heaters must be inspected by a licensed HVAC contractor and certified
safe or units must be replaced
5. Front bedroom: Bearing wall has been removed causing the ceiling to bow
down. This area is dangerous and in danger of collapse.
6. Front bedroom:
a. Windows must be openable for egress
b. Drywall is not complete
c. Electrical outlets need to be attached and covers installed
d. Floor coverings must be replaced
e. Hardwired smoke detection must be installed per code
f. Trim missing from doors, windows and floor
g. Doors must have door knobs & proper hardware
7. Bedroom 2:
a. Hardwired smoke detection must be installed per code
b. Holes in drywall / plaster must be repaired
c. Windows must be openable for egress
d. Trim missing from floor, doors and windows
e. Doors must have door knobs & proper hardware
8. Living Room:
a. Front entry door frame has been damaged and must be replaced
b. Windows must be repaired or replaced
c. Floor coverings must be replaced
9. Kitchen:
a. Wood floor has peeling paint that must be scraped, sanded & repainted
b. Kitchen cabinets have peeling paint that must be scraped, sanded &
repainted
c. Electrical outlets within 6’ of a sink must be GFCI protected
d. Electrical lighting must be repaired and reattached
e. Holes in drywall must be patched and painted
10. Bath:
a. Door must have door knob and working hardware
b. Electrical outlets within 6’ of a sink must be GFCI protected
11. Back Entry area:
a. Ceiling drywall has collapsed from a water leak above. Leak must be
repaired and ceiling must be replaced
b. Entry door must be weathertight and sealed
c. Floor coverings must be replaced
12. Stairway to Upper Apartment:
a. Handrail is missing
b. Stairway must have railing at the top stairway
c. French door must be secured or gated off to prevent falls
13. Laundry Area:
a. Cap gas line
b. Water drain must be piped to sanitary sewer, cannot be piped to the
outside
c. Drywall missing from walls
d. Door are missing at stairway and kitchen entrance
e. New windows not installed correctly
f. Open wiring and new wiring installed incorrectly. All splices must be
junction boxes and attached to the structure per code requirements
14. Kitchen:
a. Electrical outlets within 6’ of a sink must be GFCI protected
b. Holes in the walls and ceiling must be repaired.
c. Window trim missing or not complete
d. Floor covering must be repaired or replaced
15. Living Room:
a. The door installed in place of the window was completed without a
building permit. The door has no landing or steps on the exterior. The door
must be secured in the closed position or removed & replaced with a
window.
b. Open electrical outlets must be repaired and covers installed
16. Bedroom 1:
a. The large amount of animal feces must be removed and room cleaned
and sanitized.
b. Hardwired smoke detection installed per code
Jay Paulson, Inspector
Based upon my recent inspection of the above property I determined that the structure meets the
definition of a Dangerous Building and/or Substandard Building as set forth in Section 10-61 of
the Muskegon City Code.
If you disagree with the decision of the City Commission, you have the right to file a
petition for superintending control in the Circuit Court for the County of Muskegon within 21
days after the City Commission concurs.
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