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Commission Meeting Date: November 13, 2007 Date: November 6, 2007 To: Honorable Mayor & City Commission From: Community and Neighborhood Services Department RE: Winner of Anti-litter Poster Contest SUMMARY OF REQUEST: Operation R&R (Reawakening & Resurgence) sponsored an Anti-litter Poster Contest for all Muskegon Public School students who live or attend an MPS east of Seaway Drive. 20 students won and we would like to recognize them at the meeting. Students are from 1st grade through 5th grade, Middle School and High School. st FINANCIAL IMPACT: We are giving the winners Savings Bonds. 1 place will receive $100, 2nd place will receive $75 and 3rd place will receive $50. Total cost will be $765.50. We have received contributions from both LaSalle Bank and Huntington Bank to assist with the cost of the Savings Bonds. BUDGET ACTION REQUIRED: None STAFF RECOMMENDATION: None COMMITTEE RECOMMENDATION: CITY OF MUSKEGON CITY COMMISSION MEETING NOVEMBER 13, 2007 CITY COMMISSION CHAMBERS@ 5:30 P.M. AGENDA • CALL TO ORDER: • PRAYER: • PLEDGE OF ALLEGIANCE: • ROLL CALL: • HONORS AND AWARDS: A. Sprague Auto Parts Inc. PUBLIC SAFETY B. Anti-litter Contest. COMMUNITY & NEIGHBORHOOD SERVICES • INTRODUCTIONS/PRESENTATION: • CONSENT AGENDA: A. Approval of Minutes. CITY CLERK B. Request to Receive Three Properties of the Remaining Five Properties Thal Were Not Sold During the Tax Sales for 2007. PLANNING & ECONOMIC DEVELOPMENT C. Request to Submit a Bid to Purchase a Tax-Reverted Property. PLANNING & ECONOMIC DEVELOPMENT D. Control System Annual Software Support. WATER FILTRATION E. Budgeted Equipment Replacement. PUBLIC WORKS F. Tool & Die Recovery Zone Status for Muskegon Tool. PLANNING & ECONOMIC DEVELOPMENT G. Special Events - Catamaran Racing Association Request lo Hold a Catamaran Sailing Event, and Camp Over Night at Pere Marquette. LEISURE SERVICES H. Telecommunications Expense Audit. FINANCE • PUBLIC HEARINGS: A. Request for a Time Extension for the Obsolete Property Rehabilitation Exemption Certificate at 790 Terrace. PLANNING & ECONOMIC DEVELOPMENT • COMMUNICATIONS: • CITY MANAGER'S REPORT: • UNFINISHED BUSINESS: • NEW BUSINESS: A. Resolution to Sell 1122 Spring. COMMUNITY & NEIGHBORHOOD SERVICES B. Donation Program for 2007 Individual Income Tax Returns. INCOME TAX C. Approval to Purchase New Utility Billing System. TREASURER D. Revocation of a Neighborhood Enterprise Zone Certificate. PLANNING & ECONOMIC DEVELOPMENT E. Establishment of the Downtown Development Authority District as a "Redevelopment Project Area". PLANNING & ECONOMIC DEVELOPMENT F. Issuance of a Downtown Development Authority District On-Premises Liquor License - lordache Group, Inc. PLANNING & ECONOMIC DEVELOPMENT • ANY OTHER BUSINESS: • PUBLIC PARTICIPATION: • Reminder: Individuals who would like to address the Cify Commission shall do the following: • Fill out a request to speak form attached lo the agenda or located in the back of the room. • Submit the torm to the Cily 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.) • ADJOURNMENT: ADA POLICY: THE CITY OF MUSKEGON WILL PROVIDE NECESSARY AUXILIARY AIDS AND SERVICES TO !ND!VlDUALS WHO WANT TO ATTEND THE MEETING UPON TWENTY FOUR HOUR NOTICE TO THE C!TY OF MUSKEGON. PLEASE CONTACT ANN MARIE BECKER, CITY CLERK, 933 TERRACE STREET, MUSKEGON, Ml 49440 OR BY CALLING (231) 724,6705 OR TDD: (231) 724-4172. Date: November 13, 2007 To: Honorable Mayor and City Commissioners From: Ann Marie Becker, City Clerk RE: Approval of Minutes SUMMARY OF REQUEST: To approve the minutes of the Regular rd Commission Meeting that was held on Tuesday, October 23 . FINANCIAL IMPACT: None. BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: Approval of the minutes. CITY OF MUSKEGON CITY COMMISSION MEETING NOVEMBER 13, 2007 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, Michigan at 5:30 p.m., Tuesday, November 13,2007. Mayor Warmington opened the meeting with a prayer from Reverend Randall Hansen from the Central United Methodist Church after which the Commission and public recited the Pledge of Allegiance to the Flag. ROLL CALL FOR THE REGULAR COMMISSION MEETING: Present: Mayor Stephen Warmington, Vice Mayor Stephen Gawron, Commissioners Chris Carter, Lawrence Spataro, Sue Wierenga, and Steve Wisneski, City Manager Bryon Mazade, City Attorney John Schrier, and City Clerk Ann Marie Becker. Absent: Commissioner Clara Shepherd (excused). 2007-94 HONORS AND AWARDS: A. Sprague Auto Parts Inc. PUBLIC SAFETY Public Safety Director, Tony Kleibecker, presented an Honorary Ambassador Award to Sprague Auto Parts for their commitment and assistance in providing autos to the Fire Department for training purposes. B. Anti-litter Contest. COMMUNITY & NEIGHBORHOOD SERVICES Community & Services Director, Wilmern Griffin, recognized the students who submitted drawings for the Anti-litter Contest. 2007-95 CONSENT AGENDA: A. Approval of Minutes. CITY CLERK SUMMARY OF REQUEST: To approve the minutes of the Regular Commission Meeting that was held on Tuesday, October 23 rd • FINANCIAL IMPACT: None. BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: Approval of the minutes. B. Request to Receive Three Properties of the Remaining Five Properties That Were Not Sold During the Tax Sales for 2007. PLANNING & ECONOMIC DEVELOPMENT SUMMARY OF REQUEST: The County of Muskegon held two tax sales during 2007. After the tax sales, there were five properties left. According to the State's new tax laws, the City must state which of the properties they do not want to obtain, otherwise the City will get all of them. From the list that was provided, there are two parcels with homes on them and three vacant lots. Staff would like to obtain the three vacant lots and allow the Muskegon County Land Bank Authority to obtain the two homes. FINANCIAL IMPACT: The City will have to maintain the properties and will have the option to sell the properties in the future for home construction. BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: To approve the resolution and to authorize both the Mayor and the Clerk to sign said resolution. COMMITTEE RECOMMENDATION: The Land Reutilization Committee discussed this matter and had a consensus for approval at their regular meeting of October 23, 2007, due to the fact there was not a quorum. C. Request to Submit a Bid to Purchase a Tax-Reverted Property. PLANNING & ECONOMIC DEVELOPMENT SUMMARY OF REQUEST: The State of Michigan has sent a letter to the City as well as all the adjacent property owners' information to submit a bid and purchase a property that is in their possession. The minimum bid allowed is $36,000. A l 0% deposit must be sent with the application. The deposit is refundable. The property is located in the Medendorp Industrial Park. This property had been a former railroad right-of-way. The property is 2.86.±_acres and could be used for future trail right-of-way and/or future development. FINANCIAL IMPACT: To be paid out of the public improvement fund. BUDGET ACTION REQUIRED: Submit l 0% of the bid with the application and if accepted, to pay the difference. STAFF RECOMMENDATION: To approve the resolution and to authorize both the Mayor and the Clerk to sign said resolution and to have the Mayor sign the bid application to allow staff to determine the actual bid amount. D. Control System Annual Software Support. WATER FILTRATION SUMMARY OF REQUEST: Renewal of the annual customer support for the Wonderware control system software at the Water Filtration Plant. FINANCIAL IMPACT: A one-time cost of $10,186.75. BUDGET ACTION REQUIRED: None. This item is budgeted. STAFF RECOMMENDATION: Staff recommends renewal of the annual software customer support agreement at a cost of$ l 0, 186.75. E. Budgeted Equipment Replacement. PUBLIC WORKS SUMMARY OF REQUEST: Approval to purchase two Ford F-250 trucks from Great Lakes Ford. FINANCIAL IMPACT: $34,654. BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: Approve purchase. F. Tool &. Die Recovery Zone Status for Muskegon Tool. PLANNING & ECONOMIC DEVELOPMENT SUMMARY OF REQUEST: To approve development agreement and resolution establishing a Tool & Die Recovery Zone for Muskegon Tool, 1000 E. Barney Ave. FINANCIAL IMPACT: The City will forego approximately $23,000 per year for a total of $346,365 in taxes for the 15 year period of the zone. BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: To approve the development agreement and the resolution establishing a Tool and Die Recovery Zone. G. Special Events - Catamaran Racing Association Request to Hold a Catamaran Sailing Event, and Camp Over Night at Pere Marquette. LEISURE SERVICES SUMMARY OF REQUEST: Catamaran Racing Association of Michigan is requesting permission to hold a Catamaran sailing event at Pere Marquette Park August 2&3, 2008. They intend to use the City-owned lot that is currently leased by Capt. Jacks for overnight camping on August 2. The owners of Capt. Jacks submitted a letter indicating their support of the event. Two organizations hosting separate events at Pere Marquette during this time, Inside/Out volleyball and Meals on Wheels 5k run/walk race, have expressed support for the event. FINANCIAL IMPACT: None. BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: To approve the resolution allowing for overnight camping at Pere Marquette for this even August 2&3, 2008. COMMITTEE RECOMMENDATION: This request was recommended for approval by the Leisure Services Board at the October 15, 2007, meeting. H. Telecommunications Expense Audit. FINANCE SUMMARY OF REQUEST: The City recently solicited proposals for firms to conduct an audit of our telecommunications (telephone, cellular and data) expenses. Such audits are commonly done by larger organizations having complex telecommunications structures. Typically the auditing firms are compensated on a contingency basis, with payment based on a percentage of actual savings realized by the City. The City received three responses to the RFP (a fourth was received late and not opened). The RFP responses are summarized below: Cost if$30k Office Months Savings for Firm Location Price Proposal in Effect Past3Years 40% of Savings _up to $20,000 $11,500 (Net Abnita 35% of Savings $20,001 to $30,000 24 Savings to City Lansing $18,500) 30% of Savings $30,001 to $40,000 25% of Savings over $40 1001 $5,985 (Net $1,995 fee per year fee (not contingency Schociey-Mitchell Grand Rapids 24 Savings to City based) $24.015) $15,000 (Net 50% of Savings Schociey-Mitchell Grand Rapids 24 Sa\/ingsto City $15,000) 40% of Savings up to $50,000 $12,000 (Net Tda! Sdutions Group Saginaw 30% of Sa;ings $50,001 to $100,000 24 Savings to City 20% of Savings over $100,000 $18,000) After reviewing proposals and checking references, the City recommends that Abilita be selected to provide this service. It is the best contingency based proposal received. FINANCIAL IMPACT: Some staff time is involved in gathering data and coordinating the contract. Potential budgetary savings or billing credits may result if billing errors or overcharges are discovered. BUDGET ACTION REQUIRED: None. If successful, the program will result in budget savings to the City; otherwise there is no direct cost other than some staff time. STAFF RECOMMENDATION: Selection of Abilita to audit the City's telecommunications expenses. Motion by Commissioner Carter, second by Vice Mayor Gawron to approve the Consent Agenda as read. ROLL VOTE: Ayes: Gawron, Spataro, Warmington, Wierengo, Wisneski, and Carter Nays: None MOTION PASSES 2007-96 PUBLIC HEARINGS: A. Request for a Time Extension for the Obsolete Property Rehabilitation Exemption Certificate at 790 Terrace. PLANNING & ECONOMIC DEVELOPMENT SUMMARY OF REQUEST: Promised Land Associates, 3355 Merriam Street, Muskegon Heights, Ml 49444, was issued on Obsolete Property Rehabilitation Exemption Certificate (resolution number 2005-54(b}, issued June 14, 2005) for the property located at 790 Terrace Street, Muskegon, Ml. The timeline to complete the rehabilitation was one year, giving them until June 14, 2006 to do so. However, a number of unforeseen problems occurred during this time, making the applicant unable to complete the rehabilitation. The applicant is now requesting on addition two (2) years to rehabilitate the building. The two (2) year extension would give the applicant until November 14, 2009, to complete the rehabilitation. Total capitol investment for this project was stated to be $1,200,000. The project was to consist of a restaurant/banquet hall that would also feature live entertainment. This project was to result in the creation of 40+ new jobs in the city. Because of the new jobs, and the amount of investment, the applicant was granted a 12 year certificate. FINANCIAL IMPACT: If on extension to the Obsolete Property Rehabilitation Exemption Certificate is granted, the property taxes would be frozen for the duration of the certificate. BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: If the City Commission decides to grant on extension for the Obsolete Property Rehabilitation Exemption Certificate, it is recommended that only one (l) additional year be granted. That would give the applicant until November 13, 2008 to rehabilitate the building. The Public Hearing opened to hear and consider any comments from the public. Ciggzree Morris, 311 W. Muskegon, commented. Motion by Commissioner Carter, second by Commissioner Spataro to close the Public Hearing and extend the certificate until August 22, 2008. Motion by Commissioner Wisneski, second by Commissioner Wierengo to amend the motion to have the exterior of the building renovated in 90 days from today. ROLL VOTE ON THE AMENDMENT: Ayes: Wisneski Nays: Spataro, Warmington, Wierengo, Carter, and Gawron AMENDED MOTION FAILS ROLL VOTE ON THE ORIGINAL MOTION: Ayes: Spataro, Wierengo, Carter, and Gawron Nays: Warmington and Wisneski MOTION PASSES 2007-97 NEW BUSINESS: A. Resolution to Sell 1122 Spring. COMMUNITY & NEIGHBORHOOD SERVICES SUMMARY OF REQUEST: To approve the resolution to sell the City owned house at 1122 Spring to Ms. Georgia Crenshaw, of 322 Sumner, Muskegon, for the expected appraised value of $65,000 minus the $15,000 subsidy. The house at 1122 Spring is part of the Operation R&R initiative, also know as "Spring Street Awakening" the structure was obtained by the City of Muskegon through the tax reverted process. After the City obtained the house from the State of Michigan, a total rehabilitation of the house was completed including abatement of any lead in the house. FINANCIAL IMPACT: The program income derived from this transaction will be deposited in the City's HOME funds. BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: To approve the resolution and the sale of 1122 Spring to Ms. Georgia Crenshaw. COMMITTEE RECOMMENDATION: The City Commission and the Land Reutilization Committee approved the project. Motion by Commissioner Spataro, second by Vice Mayor Gawron to approve the resolution and sale of 1122 Spring to Ms. Georgia Crenshaw. ROLL VOTE: Ayes: Spataro, Warmington, Wierengo, Wisneski, Carter, and Gawron Nays: None MOTION PASSES B. Donation Program for 2007 Individual Income Tax Returns. INCOME TAX SUMMARY OF REQUEST: Approval of multiple donations programs for the 2007 income tax returns. Our department's goal is to increase the number tax refunds donated by 20-30%. Each year we will feature two or three donation options for the taxpayers. Some of our top donations programs include Lakeshore Trail Improvements, Muskegon Summer Celebration Fireworks, & the upkeep of Veteran's Memorial Park. FINANCIAL IMPACT: The average amount collected each year is $2,000. Each donated refund saves the City approximately $1 in check fees. BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: Approval of the recommended. Motion by Commissioner Spataro, second by Vice Mayor Gawron to approve the donation program for the 2007 individual income tax returns. ROLL VOTE: Ayes: Warmington, Wierenga, Wisneski, Carter, Gawron, and Spataro Nays: None MOTION PASSES C. Approval to Purchase New Utility Billing Svstem. TREASURER SUMMARY OF REQUEST: Approval to purchase the Equalizer Utility Billing System from BS&A Software. This request is the result of an investigation by City staff of possible utility billing software solutions that will improve productivity and operational efficiency. FINANCIAL IMPACT: Total cost of $36,000. BUDGET ACTION REQUIRED: The 4th Quarter Budget Reforecast to include an adjustment for this purchase as a water fund capital expenditure. STAFF RECOMMENDATION: Approval to purchase the Equalizer Utility Billing System. Motion by Vice Mayor Gawron, second by Commissioner Carter to approve the purchase of the Equalizer Utility Billing System. ROLL VOTE: Ayes: Wierenga, Wisneski, Carter, Gawron, Spataro, and Warmington Nays: None MOTION PASSES D. Revocation of a Neighborhood Enterprise Zone Certificate. PLANNING & ECONOMIC DEVELOPMENT SUMMARY OF REQUEST: Stan and Chris Cunningham are in violation of Sec. 207.78 l sec. l l subsection (4) which states: If the owner of the facility fails to make the annual payment of the neighborhood enterprise zone tax and the ad valorem property tax on the land under the general property tax act, 1893 PA 206, MCL 211.1 to 211.157, the Commission by order shal! revoke the certificate. However, if payment of these taxes is made before the revocation is effective, the Commission, upon application of the owner, shall rescind the order of revocation. If payment of these taxes and any subsequent ad valorem property tax due on the facility is made after revocation of the certificate, the Commission, upon application of the owner, shall reinstate the certificate for the remaining period of time for which the original certificate would have been in effect. Stan and Chris Cunningham have failed to pay 2006 taxes for the property located at 1223 Morgan Avenue whose parcel numbers are 24-94 l-096-0253-00 and 24-613-000-07 51-00. Approval or denial by the City Commission is required and must be forwarded to the State Tax Commission. Staff sent the owners a letter with the County Treasurer's phone number on it regarding the pay off amount of the delinquent property taxes on September 19, 2007, giving them until October 12, 2007, to pay the taxes. They remain unpaid. FINANCIAL IMPACT: The property will no longer be able to take advantage of the certificate number 96-253 which allowed taxation at 50% of the State average for a stated number of years. BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: Approve revocation of the NEZ certificate and have the Mayor and City Clerk sign the resolution and submit it to the State Tax Commission. Motion by Vice Mayor Gawron, second by Commissioner Carter to approve the revocation of the Neighborhood Enterprise Zone Certificate for 1223 Morgan. ROLL VOTE: Ayes: Wisneski, Carter, Gawron, Spataro, Warmington, and Wierengo Nays: None MOTION PASSES E. Establishment of the Downtown Development Authority District as a "Redevelopment Project Area". PLANNING & ECONOMIC DEVELOPMENT SUMMARY OF REQUEST: There is a new type of liquor license available for businesses within the boundaries of the Downtown Development Authority (DDA) District. It is similar to the former ODA liquor license. In order for the Liquor Control Commission to approve issuance of these licenses, the buildings that house the licensed premises must be located within an established "Redevelopment Project Area". The Redevelopment Project Area has the same boundaries as the current DDA. In order to establish this area as the Redevelopment Project Area, the City Commission must approve the resolution. FINANCIAL IMPACT: No immediate impact, although the granting of additional liquor licenses downtown will increase the number of restaurants and entertainment venues possible, thus increasing the City of Muskegon's tax revenues. BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: To approve the resolution and authorize the Mayor and Clerk's signatures. Motion by Commissioner Spataro, second by Commissioner Carter to approve the establishment of the Downtown Development Authority District as a "Redevelopment Project Area" and also include the DMDC property and the Edison Landing property. ROLL VOTE: Ayes: Carter, Gawron, Spataro, Warmington, Wierengo, and Wisneski Nays: None MOTION PASSES F. Issuance of a Downtown Development Authority District On-Premises Liquor License - lordache Group, Inc. PLANNING & ECONOMIC DEVELOPMENT SUMMARY OF REQUEST: The lordache Group, Inc. has applied for a Downtown Development Authority District On-Premises Liquor License for the premises at 380 W. Western, which is located within an area established by the City Commission as a redevelopment project area. The applicant shall be engaged in the operation of a restaurant and an adjacent bakery at this address. FINANCIAL IMPACT: No immediate impact, although the granting of the liquor license to lordache Group will add to the business and entertainment mix in downtown Muskegon, and will add to the City of Muskegon's tax revenues. BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: To approve the resolution and authorize the Mayor and Clerk's signatures. Motion by Commissioner Spataro, second by Vice Mayor Gawron to approve the resolution and authorize the Mayor and Clerk to sign the Downtown Development Authority District on-premises liquor license for lordache Group, Inc. ROLL VOTE: Ayes: Gawron, Spataro, Warmington, Wierengo, Wisneski, and Carter Nays: None MOTION PASSES ANY OTHER BUSINESS: Mayor Warmington stated that Raya Wood is th e winner of the Muskegon Recycling Contest. PUBLIC PARTICIPATION: Various comments were heard from th e public. ADJOURNMENT: The City Commission Meeting adjourned at 6:52 p.m. Respectfully submitted, ~ , ~ \v ~(Su,1/;L, Ann Marie Becker, MMC City Clerk Commission Meeting Date: November 13, 2007 Date: October 24, 2007 To: Honorable Mayor & City Commission From: Planning & Economic Development Department G'1't> c_ RE: Request to Receive Three Properties of the Remaining Five Properties that were not sold during the tax sales for 2007. SUMMARY OF REQUEST: The County of Muskegon held two tax sales during 2007. After the tax sales, there were five properties left. According to the State's new tax laws, the City must state which of the properties they do not want to obtain, otherwise the City will get all of them. From the list that was provided there are two parcels with homes on them and three vacant lots. Staff would like to obtain the three vacant lots and allow the Muskegon County Land Bank Authority to obtain the two homes. FINANCIAL IMPACT: The City will have to maintain the properties and will have the option to sell the properties in the future for home construction. BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: To approve the attached resolution and to authorize both the Mayor and the Clerk to sign said resolution. COMMITTEE RECOMMENDATION: The Land Reutilization Committee discussed this matter and had a consensus for approval at their regular meeting of October 23, 2007 due to the fact there was not a quorum. Resolution No. 2007-95 ( b) MUSKEGON CITY COMMISSION RESOLUTION TO PURCHASE STATE-OWNED TAX REVERTED PROPERTY. WHEREAS, The City may make the properties available under the urban homestead act, 1999 PA 127, MCL 125.2701 to 125.2709, or for any other lawful purpose, and; WHEREAS, the City of Muskegon desires to acquire such lands for purposes of selling the property; WHEREAS, the City of Muskegon does not want to acquire the two parcels that have homes on them and is willing to allow the Muskegon County Land Bank Authority to obtain these two properties; NOW THEREFORE BE IT RESOLVED, that the City of Muskegon shall set up necessary procedures and controls to provide for the property distribution of funds arising from the subsequent sale of the acquired property in conformity with the above mentioned acts. Legal Descriptions for the Properties are Attached. Adopted: November 13, 2007. Ayes: Gawron, Spataro, Warmington, Wierenga, Wisneski, Carter Nays: None Absent: Shepherd The City of Muskegon is interested in acquiring the following parcels: 1) City of Muskegon Revised Plat of 1903 S 26 Feet of Lot 2 and N 7/2 of Lot 3 Block 252 Parcel# 61-24-205-252-0003-00 1278 Terrace 2) City of Muskegon Revised Plat of 1903 sly ½ lot 3 Block 252 Parcel # 6 l-24-205-252-0003-l 0 1282 Terrace 3) City of Muskegon Revised Plat of 1903 N ½ ofW 88 Feet Lot 4 Block 252 Parcel# 61-24-205-252-0004-00 1286 Terrace The City of Muskegon does not want to acquire the following parcels and is willing to allow the Muskegon County Land Bank Authority to acquire them. 1) City of Muskegon Revised Plat of 1903 Lot 19 Block 89 Parcel# 61-24-205-089-0019-00 728 Catawba 2) City of Muskegon Revised Plat of 1903 W 50 Feet of Lots 8 & 9 Block 305 Parcel# 61-24-205-305-0008-00 235E Larch CERTIFICATION I hearby 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 13, 2007. ( \ ·.• . By: \)\\'-,\(\\ ,\;, \ \ I. I>' ,\t, \ Ann Marie Becker, MMC Clerk Commission Meeting Date: November 13, 2007 Date: November 5, 2007 To: Honorable Mayor & City Commission From: Planning & Economic Development Department c/f/-' RE: Request to Submit a Bid to Purchase a Tax- Reverted Property. SUMMARY OF REQUEST: The State of Michigan has sent a letter to the City as well as all the adjacent property owners' information to submit a bid and purchase a property that is in their possession. The minimum bid allowed is $36,000. A 10% deposit must be sent with the application. The deposit is refundable. The property is located in the Medendorp Industrial Park. This property had been a former railroad right-of-way. The property is 2.86 ± acres and could be used for future trail right-of-way and/or future development. FINANCIAL IMPACT: To be paid out of the public improvement fund. BUDGET ACTION REQUIRED: Submit 10% of the bid with the application and if accepted, to pay the difference. STAFF RECOMMENDATION: To approve the attached resolution and to authorize both the Mayor and the Clerk to sign said resolution and to have the Mayor sign the bid application. To allow staff to determine the actual bid amount. COMMITTEE RECOMMENDATION: None. Reso!utionNo. 2007-95(c) MUSKEGON CITY COMMISSION RESOLUTION TO PURCHASE STATE-OWNED TAX REVERTED PROPERTY. WHEREAS, Act 451, P.A. 1994, as amended, provides for the conveyance of State-owned tax- reverted lands to municipal units for public purposes, and; WHEREAS, such lands are under the jurisdiction of the State of Michigan, Department of Natural Resources and are available for acquisition under the provisions of the above mentioned act; WHEREAS, the City of Muskegon desires to acquire such lands for purposes of developing the property; WHEREAS, staff will submit in a reasonable bid offer for the property; WHEREAS, the City of Muskegon will submit I 0% of the bid with the application; WHEREAS, if the City's bid is accepted, will pay the difference within 45 days from the date the State of Michigan sends an invoice; NOW THEREFORE BE IT RESOLVED, that the City of Muskegon shall set up necessary procedures and controls to provide for the property distribution of funds arising from the subsequent sale of the acquired property in conformity with the above mentioned acts. Legal Description for the property is attached. Adop~d: November 13, 2007, Ayes: Gawron, Spataro, Warmington, Wierenga, Wisneski, carter Nays: None Absent: Shepherd te ~ / \ . . ? Ji Attest:~\,\, 1\ \ \(\ L\.1 ,)Z , r I \ Ann Marie Becker, MMC Clerk The City of Muskegon is interested in acquiring the following parcel: Former CSX Transpo11ation right-of-way in the City of Muskegon. That portion of the following description lying in the NE ¼ of the NW ¼; a strip of land 100 ft. in width beginning at the point of intersection of the centerline of Grantors Track at or near Valuation Station 506+00 with the East line of Vulcan St. extended to the North, NE of the plat of Continental Addition to the City; thence extending generally in a northwesterly direction along the former centerline of the railroad track, said strip of land lying adjacent to East St., a distance of 1,370 ft. more or less, to the end point at the intersection of the former centerline of the tract with the South line of Laketon Avenue. CERTIFICATION I hearby 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 13, 2007. '· By: \ii\,'\~\.- }.,_;\I)-\J,\.i\,l-\ . , . ,.;,!? ', ('Ll-, I Ann Marie Becker, MMC Clerk Memorandum To: Honorable Mayor and City Commission From: Hope Mitchell Date: 11/7/2007 Re: The request to submit a bid to purchase a tax-reverted prope1ty. The minimum bid for the former railroad property is $36,000 and staff is proposing to bid $1 over the minimum bid. 1 Michigan Department of Natural Resources Land and Facilities LAND AUCTION BID By authority of Part 21, Act 451, P.A. 1994, as amended. INSTRUCTIONS: 1. Please read the information contained herein, and all other related information carefully. The Michigan Department of Natural Resources (DNR) makes no representations or claims regarding fitness for purpose, ingress and egress, conditions, and/or any covenants or restrictions of the property. 2. Provide the Parcel ID Number whenever addressing any questions or correspondence regarding your Bid. 3. Complete this Land Auction Bid in its entirety and submit to the address as indicated below. Please orint or tvne the foflowina information. Purchase Applicant's Name (Bidder) Telephone CITY OF MUSKEGON (231) 724-6724 Street Address 933 TERRACE STREET City, State, ZIP MUSKEGON, MI 49440 As the Purchase Applicant, I understand and agree that: 1. The State of Michigan will only issue a Quit Claim deed. 2. Updated proof of the State's title to the desired land is not available and, if desired, must be obtained at purchaser's expense. 3. The Michigan DNR policy prohibits sale of State lands to organizations which are discriminatory on the basis of race, color, national origin, religion, disability, age, sex, height, weight or marital status. Appropriate documentation may be required. I hereby offer$ 36,001 • 0 0 for Land Auction Case# 1004 2 4 o , subject to the terms and conditions set forth in the Notice of Sealed Bid. Enclosed herewith is a bid deposit in the form of a Personal/ Cashier's Check or Money Order, payable to the STATE OF MICHIGAN, in the amount of$ 3,600.10 , which represents ten percent (10%) of my offer. The balance of the bid will be made available within forty-five (45) days of receiving written acceptance notice. I understand that if I am not the successful bidder my bid deposit will be returned to me within ten (10) days of the auction date. Date MAIL TO: SEALED BID, PARCEL ID NUMBER 1004240 LAND AND FACILITIES MICHIGAN DEPARTMENT OF NATURAL RESOURCES PO BOX 30448 LANSING Ml 48909-7948 PR6345-3 (Rev. 08/08/2006) I II I Ill Ill GETTY STREET Ill I II II II I II Ill •• I I GETTY STREET - r ::, 0 0.., C - · ~::, ., ROBERTS STREET cii' ROBERTS STREET I ~ z i!: ,_______._ JJ 0 1-----L. ~ 11 C ~ 1------i- m ~ ,______.,____ C m1----L- ROUSE STREET Date: November 13, 2007 To: Honorable Mayor and City Commission From: Water Filtration Plant RE: Control system annual software support SUMMARY OF REQUEST: Renewal of the annual customer support for the Wonderware control system software at the Water Filtration Plant. FINANCIAL IMPACT: A one-time cost of $10,186.75. BUDGET ACTION REQUIRED: None. This item is budgeted. STAFF RECOMMENDATION: Staff recommends renewal of the annual software customer support agreement at a cost of $10,186.75. MEMORANDUM 11/1/07 TO: M. AL-SHATEL, DEPUTY DIRECTOR FROM: R. VENEKLASEN, WATER FILTRATION RE: WATER PLANT CONTROL SYSTEM SOFTWARE ANNUAL SUPPORT CONTRACT The control system software at the Water Filtration Plant is a product by Invensys called Wonderware. This software has been the heart of the plant control system since its inclusion in the Instrumentation and Control System Improvements project in 1993. This is a robust operating platform that is still viable and has subsequently been adopted by many water plants in West Michigan and elsewhere. Wonderware operates as a layer on top of Microsoft Windows. Most importantly it interfaces seamlessly with MS Excel so we can generate reports in a spreadsheet format. The control system software has two values; one is the cost of the operating system the second is the configuration of the software to meet the specific needs of the facility. This software has been continually improved and has added features (tools) that have enhanced the plant operation. However the configuration of the software to meet the specific needs of our facility is the greatest investment In order to take advantage of the improvements to the software over the years we have subscribed to the annual technical support offered by Wonderware through its representatives - currently Wonderware Central. This subscription also allows us, or our consultant, to obtain solutions to problems or guidance in configuring new aspects or applications within our system at no cost. Over the years the cost of the annual support has varied as displayed below: Year Annual Support Cost 2000 $7200.00 2001 $6840.00 2002 $7605.00 2003 $5036.03 2004 $6100.00 2005 $7411.25 2006 $8565.50 2007 $10186.75 There are various reasons for the ups and downs for the cost of this service but typically the cost increases are associated with significant improvements, or changes, in the software - especially as it relates to changes in Microsoft Windows and Microsoft Excel. For example; our system began with Windows 3.1 and has evolved through Window 95, Windows 98, Windows 2000 and is now facing Windows Vista. The peril of not purchasing the annual support is when the need to update the Control software arises. It is more costly to purchase the upgraded software than to have maintained the support and received the updates by virtue of the support subscription. Therefore it is my recommendation that we continue to purchase the control system annual software support for 2008 from Wonderware Central at a cost of $10186.75. Quote Date Number 10/24/2007 AAAQ5526 Bill To: Ship To: City of Muskegon City of Muskegon Water Filtration Plant Water Filtration Plant 1900 Beach Street 1900 Beach Street Muskegon, MI 49441 Muskegon, MI 49441 Attn: Accounts Payable Attn: Robert Veneklasen Terms Rep Quote Expires: FOB Net 30 Days IS 11/23/2007 Item Description Qty Price Each Total 10-4201 Customer Support, $30,000-$79,999 total 1 10,186,75 10,186,75 license value at List Prices - Renewal of CS#25852 through 12/31/08 - Includes SN#440268, 448537, 448539, 448540,448541, 448542, 448543,605928, 605929,608118, 608119, 752316, 777458 06-6914 Wonderware Development Studio 1 0.00 0.00 Includes: Application Server 3.0, InTouch 10.0, InTouch 10.0 Terminal Services Edition, Device Integration, Active Factory 9,2, Historian Server 9.0, Information Server 3.0, MS SQL 2005 Server and MS SQL 2005 SP2 Wonderware Central, 8465 Keystone Crossing, Suite 200, Indianapolis, IN 46240 Subtotal $10,186.75 We are pleased to offer this quote to you, Upon approval, purchase orders may be emailed or faxed to the contacts found below, Sales Tax (6.0%) $0.00 **All Purchase Orders must include terms, taxable status, and any special shipping instructions, Total $10,186.75 ALL SALES ARE FINAL. An" Invoice not naid within terms is subiect to an additional 1.5% ner month finance charoe. Phone# Fax# Orders Web Site 888-676-9933 888-676-4550 orders@wonderwarecentral.com www.wonderwarecentral.com Date: 11/13/17 To: Honorable Mayor and City Commission From: DPW RE: Budgeted Equipment Replacement SUMMARY OF REQUEST: Approval to purchase two Ford F-250 trucks from Great Lakes Ford. FINANCIAL IMPACT: $34,654.00 BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: Approve purchase. Memorandrnn To: Honorable Mayor and City Commissioners From: DPW Date: 11/13/17 Re: Budgeted Vehicle Replacement The Equipment Division has scheduled the replacement for two of our ¾ ton plow trucks. These vehicles are used by the Parks Department to haul supplies for building maintenance and irrigation repair and plow snow at the various parks. We have requested prices from area dealers as well as the statewide purchasing contracts. Attached is a summary of the bids. In accordance with established purchasing policy, I am requesting permission to purchase two 2008 Ford F-250 4X4 trucks from Great Lakes Ford. 1 I - ··-·----·-- Equipment Purchase - 2007 ----~------------------------------~------------------ ··-,----------- ...• · - - - .. ··- . . I Macomb County Great Lakes Ford Whitehall Ford 3942 W. Lansing 2469 E. Apple Ave i 3001 Colby Rd l"yp~c,f_V.ehicle ==t~p;~ryMi. 48H72. Musk; ··~n riJ!i__!9~42I··vvhit~h~11~i .49461- 2008 Ford F-250 4X4 - - - - - - - $35,722.00 $34,654.00 $34,730.00 I - - - - - - ······· ·······-+----- ----j --- -----·------------ ---- -- . ··I ··········-· ' ·······+ .... ···- 1--- Commission Meeting Date: November 13, 2007 Date: November 1, 2007 To: Honorable Mayor & City Commission From: Planning & Economic Development Department c.J:;r:_ RE: Tool & Die Recovery Zone Status for Muskegon Tool SUMMARY OF REQUEST: To approve the attached development agreement and Resolution establishing a Tool & Die Recovery Zone for Muskegon Tool, 1000 E Barney Ave. FINANCIAL IMPACT: The City will forego approximately $23,000 per year for a total of $346,365 in taxes for the 15 year period of the zone. BUDGET ACTION REQUIRED: None STAFF RECOMMENDATION: To approve the development agreement and the resolution establishing a Tool and Die Recovery Zone. COMMITTEE RECOMMENDATION: None 10-29-' 07 08: 50 FROM-City of Muskegon 2317246790 T-494 P002/007 F-954 DEVELOPMENT AGREEMENT CITY OF MUSKEGON TOOL AND DIE RENAISSANCE RECOVERY ZONE THJS IS AN AGREEMENT between the CITY OF MUSKEGON, a municipal corporation, of 933 Terrace Street, Muskegon, Ml 49440 ("City") and Muskegon Tool ("Company"), a Michigan corporation, of 1000 E. Barney Ave., Muskegon, MJ 49443. Recitals: A. The City has received a request from the Company and intends to consider the location designation of a Tool and Die Renaissance Recovery Zone, and as a condition thereof, this Agreement must be approved and executed by the Company prior to the establishment of the Tool and Die Renaissance Recovery Zone. Upon approval of Tool and Die Renaissance Recovery Zone status for the Property, the City will sign this Agreenm1t. The City deems this Agreement to constitute a necessary element in the City's determination regarding the location of Company in the Tool and Die Renaissance Recovery Zone, and the City relies upon the undertakings of Company in the Agreement to allow and continue the Tool and Die Renaissance Recovery Zone status of the company. B. The Company intends to install the projects set forth in its Application for the Tool and Die Recovery Zone. The Company understands that the City relies upon the undertakings of the Company in the Agreement to establish and to continue the Company's status as a Tool and Die Renaissance Recovery Zone Company.· · NOW THEREFORE THAT PARTIES AGREE: I. DOCUMENTS ATTACHEQ. Included in this Agreement are the following documents which have been collected and relied upon by the parties: I. 1 Copy of the Michigan Renaissance Zone Act, as amended to date 2, COMPANY AGREEMENT. The Company agrees to the following commitments which it shall perform in a timely and reasonably acceptable manner: 2.1 Maintain the current level of employment at the same level, or better 3. AGREEMENT BY THE CIT'{. Provided this Agreement has been executed and further provided all applications concerning Tool and Die Renaissance Recovery Zone status have been properly filed, the City shall, in a timely manner, proceed with the appropriate ffieeiiilgs or applications including as necessary \vith the State of Mkhigan and with all local OCT-29-2007 07:54 2317246790 97\ P.02 10-29-' 07 08: 51 FROM-City of Muskegon 2317246790 T-494 P003/007 F-954 review entities by law. The City may consider this agreement in a meeting separate from and prior to the meeting in which the City or any entity considers the approval of the applicant for Tool and Die Renaissance Recovery Zone status. 4. EVENTS OF DEFAULT. The following actions or failures to comply shall be considered events of default by the Company: 4.1 Failure to meet any of the commitments set forth above 4.2 Failure to afford to the City the documentation and rep01ting required 4.3 The failure to pay any taxes other than those exempted by the Michigan Renaissance Zone Act, and the failure to pay any special assessments levied on the Company's property timely after levy or final appeal 4.4 The violation of any provisions, promises, commitments, considerations or covenants of this Agreement 4.5 Relocation of the Company to a location outside the City limits of the City of Muskegon. 5. 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: 5.1 Failure to Install Improvements. In the event the improvements, renovations llnd the equipment have not been completed or installed by the time set forth in the attachments, the City will petition the State to revoke the Tool and Die Renaissance Zone status from the Company. 5.2 failure to Expend the Funds Represented. Whether or not the installations have been completed, if the Company has not expended the funds it has represented on its application that it would invest, the City will petition the State to revoke the Tool and Die Renaissance Recovery Zone status from the Company. 5.3 Failure to Maintain the Current Level of Employment. Whether or not the installations have been completed, if the Company has not maintained the number of employees at the same level as when the application for a Tool and Die Renaissance Recovery Zone designation was submitted, the City will petition the State to 2 OCT-2"3-2O07 07: 54 2317246790 9r-:i•-· r,,-. P.03 10-29-' 07 08: 51 FROM-City of Muskegon 2:317246790 T-494 P004/007 F-954 revoke the Tool and Die Renaissance Recovery Zone status from the Company. 5.4 Relocation of the Company to a Location Outside of the City Limits of the 9ity of Muskegon. In the event the Company relocates outside of the City of Muskegon, the City will petition the State to revoke the Tool and Die Renaissance Zone status from the Company. 5.5 Other Violations. For any material violations of this Agreement, the City reserves the right to seek declaration by a court or entity with authority. 5.6 City Considerations for Determination in Matters of Default. The City shali not unreasonably take any action which may result in invocation of the remedies above. It shall take the following factors into consideration: 5.6.1 The economic conditions, if any, reasonably known to the City, which are found to be directly related to the default or circumstance causing the proposed action by the City 5.6.2 The performance of the Company in meeting the commitments and requirements of the Application, the submitted materials, and the provisions of the Certificate and this Agreement 5.6.3 Whether the effect on the City's finances of the Company's actions is material and substantial 5.6.4 Whether the circumstances affecting the status of the company were created by occurrences beyond the control of the Company or could have been avoided, and, in particular, whether the Company could economically and feasibly continue to perform as required by this Agreement. 5.7 If the Company does not comply with Sections 5.1, 5.2, and 5.3, they will be required to pay the taxes normally due on the property. 6. 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, and in particular the Michigan Renaissance Zone Act of the State, as amended. 3 OCT-29-2007 07:54 2317246790 97\ P.04 10-29-'07 08:52 FROM-City of Muskegon 2317246790 T-494 P005/007 F-954 7. Countemar:!~- This Agreement may be executed in one or more counter- parts, Notwithstanding such execution, all such counterparts shall constitute one and the same Agreement 8, Benefits, This Agreement shall be binding upon and inure to the benefit of the respective parties, their successors assigns and personal representatives. 9, Effective Date, This Agreement shall be effective on the date the State of Michigan grants the Tool and Die Renaissance Recovery Zone designation, 10, Invalidity. In the event any provision of this Agreement is declared invalid by a court or tribunal having competent jurisdiction, the remainder of the Agreement shall remain in full force and effect, CITY OF MUSKEGON, a municipal corporation -------- By and Ann Marie Becker, City Clerk Dated: 1//4 ve.m bec I,S:__ , 2007 Muskegon Tool By ~~l Thomas R. Wheeler, President and WA,..;. T, __~L✓ ._&.b.,,-=~--- William T, Wheeler, Treasurer Dated: d'"'"J 2 7 , 2007 4 OCT-2'3-2OO7 07: 54 2317246790 P,0.5 2007-95(f) Resolution to Request a Renaissance Recovery Zone WHEREAS, the City of Muskegon desires to promote economic activity and maintain/ increase the number of jobs available to residents of the area, and; WHEREAS, certain industries in the state are facing difficult times and the tool and die industry, in particular, has sustained losses due to foreign competition and increased productivity; WHEREAS, the designation of a Renaissance Recovery Zone will temporarily reduce the tax burden paid by the business enabling it to reposition itself to compete globally, and; WHEREAS, the business have entered into a collaborative agreement with other business entities having the appropriate North American Industry Classification System (NAICS) codes, and; WHEREAS, the qualified tool and die business property is property leased or owned by a tool and die business and used primarily for tool and die operations; WHEREAS, should the area be designated a Renaissance Recovery Zone, property within that zone will be exempt from taxes levied by the city, county, and other units of government as provided under this Act, and; WHREAS, we estimate that the tax revenue lost, which is estimated on the attached schedule, would be a small fraction of the benefits the designation of a Renaissance Recovery Zone will bring the community. THEREFORE BE IT RESOLVED, that the City requests that the State of Michigan designate Muskegon Tool, Property ID numbers 24-900-351-0395-00, 24-133-300- 0001-10, and 24-133-300-0001-00 identified by the resolution a Renaissance Recovery Zone under Public Act 376 of 1996 for a duration of up to 15 years. th Adopted this 13 day of November , 2007 Ayes: Gawron, Spataro, Warmington, Wierenga, Wisneski.! and Carter,_ Nays: None Absent: Shepherd 2007-95(f) ATTEST: ~'vv", {\ l"0\i\1ci ~:cJJ--___ Ann Marie Becker Clerk 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 /4ve.w6e, /3 , 2007. \ \11, ,1:) 1\\;'\,u l~LL lv, ~ Ann Marie Becker Clerk City of Muskegon Comparison of 2007 Year Millage Rates to Ren. Zone Millage Rates and % Savings % Savings Non-Principal for Residence Ren.Zone Non-Principal Millage Millage Residence County tax 6.7357 0.3400 94.95% Community College tax 2.2037 0.0000 100.00% MAISD tax 3.7580 0.0000 100.00% City tax 11.0685 0.0000 100.00% School Operating tax 18.0000 0.0000 100.00% School Debt tax 7.0000 7.0000 0.00% Hackley Library tax 2.4000 0.0000 100.00% State Education tax 6.0000 0.0000 100.00% Total 57.1659 7.3400 87.16% RE: Property at 1000 & 1080 E Barney Ave Real Property: The Assessor has assessed the real property for these addresses: parcel# 24-133-300-0001-00 & 24-133-300-0001-10. The owner is listed as Muskegon Tool Property Co LLC. The 2007 Taxable Value = $ 155,632 . Without the ren zone the projected tax bill total for both winter and summer would = $ 8,897 With the ren zone the projected tax bill total for both winter and summer would = $ 1,142 Annual prooertv tax savings = $ 7,755 Personal Property: The Assessor has assessed the personal property for this address set up as parcel# 24-900-351-0395-00. The owner is listed as Muskegon Tool Industries. The 2007 Taxable Value= $ 307,800 . Without the ren zone the projected tax bill total for both winter and summer would = $ 17,596 With the ren zone the projected tax bill total for both winter and summer would = $ 2,259 Annual propertv tax savinas = $ 15,336 Date: November 5, 2007 To: Honorable Mayor and City Commissioners From: Lowell Kirksey, Leisure Services Supervisor RE: Special Events-Catamaran Racing Association Request to hold a Catamaran sailing event, and camp over night at Pere Marquette SUMMARY OF REQUEST: Catamaran Racing Association of Michigan is requesting permission to hold a Catamaran sailing event at Pere Marquette Park August 2-3, 2008. They intend to use the City owned lot that is currently leased by Capt. Jacks for overnight camping on August 2. The owners of Capt. Jacks submitted a letter indicating their support of the event. Two organizations hosting separate events at Pere Marquette during this time, Inside/Out volleyball and Meals on wheels 5k run/walk race, have expressed support for the event. FINANCIAL IMPACT: None. BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: To approve the attached resolution allowing for overnight camping at Pere Marquette for this event August 2-3, 200S. COMMITTEE RECOMMENDATION: This request was recommended for approval by the Leisure Services Board at their October 15, 2007 meeting. CITY OF MUSKEGON MUSKEGON COUNTY, MICHIGAN :RESOLUTION NO. 2007-95(g) A RESOLUTION AJ?J'JlOVING OVERNIGHT CAMPING FOJl THE CATAMARAN JlACING ASSOCIATION OF MICHIGAN The City Commission of the City ofMnskegon hereby RESOLVES: Recitals I. The Catamaran Racing Association Of Michigan is planning a sailing event for August 2- 3, 2008; and 2. Whereas, they are requesting overnight camping at Pere Marquette Park. The event will be held in the city parking lot leased to Captain Jacks Restaurant; and 3. Whereas, there is support for the event from Captain Jacks Restaurant and representatives from other events taking place at Pere Marquette Park that weekend. NOW, THEREFORE, THE CITY COMMISSION RESOLVES: The City Commission agrees to allow overnight camping at Pere Marquette Park for the purpose of hosting members of the Catamaran Racing Association of Michigan on the night of August 2, 200$. Adopted this l_l_ day of November, 2007. AYES: Gawron, Spataro, Warmington, Wierenga, Wisneski, Carter NAYES: None ------------------------ ABSENT: She herd By: By: CERTIFICATION 2007-95(g) This resolution was adopted at a regular meeting of the City Commission, held on November 13, 2007. The meeting was properly held and noticed pursuant to the Open Meetings Act of the State of Michigan, Act 267 of the Public Acts of 1976. CITY OF MUSKEGON By: \~,-,,_;\~\-,·\\,,,\. \ .\, o •·. V l '.).\...\. C\.. Ann Marie Becker, MMC City Clerk Date: November 13, 2007 To: Honorable Mayor and City Commissioners From: Finance Director RE: Telecommunications Expense Audit SUMMARY OF REQUEST: The City recently solicited proposals for firms to conduct an audit of our telecommunications (telephone, cellular and data) expenses. Such audits are commonly done by larger organizations having complex telecommunications structures. Typically the auditing firms are compensated on a contingency basis, with payment based on a percentage of actual savings realized by the City. The City received three responses to the RFP (a fourth was received late and not opened). The RFP responses are summarized below: Costif$30k Office Months Savings for Firm Location Price Proposal in Effect Past3 Years 40% of Savings up to $20,000 $11,500 (Net 35% of Savings $20,001 to $30,000 24 Savings to City Abillta Lansing $18,500) 30% of Savings $30,001 to $40,000 25% of Savings over $40 1001 $5,985 (Net $1,995 fee per year fee (not contingency Schooley~Mitchell Grand Rapids 24 Savlngs to City based) $24.015\ $15,000 (Net 50% of Savings Schooley-Mitchell Grand Rapids 24 Savings to City $15,000\ 40% of Savings up to $50,000 $12,000 (Net Total Solutions Group Saginaw 30% of Savings $50,001 to $100,000 24 Savings to City 20% of Savinas over $100,000 $18,000\ After rev1ew1ng proposals and checking references, the City recommends that Ab1hta be selected to provide this service. It is the best contingency based proposal received. FINANCIAL IMPACT: Some staff time is involved in gathering data and coordinating the contract. Potential budgetary savings or billing credits may result if billing errors or overcharges are discovered. BUDGET ACTION REQUIRED: None. If successful, the program will result in budget savings to the City; otherwise there is no direct cost other than some staff time. STAFF RECOMMENDATION: Selection of Abilita to audit the City's telecommunications expenses. COMMITTEE RECOMMENDATION: None. Commission Meeting Date: November 13, 2007 Date: November 1, 2007 To: Honorable Mayor and City Commissioners From: Planning & Economic Development ci(__.,.. RE: Public Hearing - Request for a time extension for the Obsolete Property Rehabilitation Exemption Certificate at 790 Terrace SUMMARY OF REQUEST: Promised Land Associates, 3355 Merriam Street, Muskegon Heights, Ml 49444, was issued an Obsolete Property Rehabilitation Exemption Certificate (resolution number 2005-54 b, issued June 14, 2005) for the property located at 790 Terrace Street Muskegon, Ml. The timeline to complete the rehabilitation was one year, giving them until June 14, 2006 to do so. However, a number of unforeseen problems occurred during this time, making the applicant unable to complete the rehabilitation. The applicant is now requesting an additional two (2) years to rehabilitate the building. The two (2) year extension would give the applicant until November 14, 2009 to complete the rehabilitation. Total capital investment for this project was stated to be $1,200,000. The project was to consist of a restaurant/banquet hall that would also feature live entertainment. This project was to result in the creation of 40+ new jobs in the City. Because of the new jobs, and the amount of investment, the applicant was granted a 12 year certificate. FINANCIAL IMPACT: If an extension to the Obsolete Property Rehabilitation Exemption Certificate is granted, the property taxes would be frozen for the duration of the certificate. BUDGET ACTION REQUIRED: None STAFF RECOMMENDATION: If the City Commission decides to grant an extension for the Obsolete Property Rehabilitation Exemption Certificate, it is recommended that only one (1) additional year be granted. That would give the applicant until November 13, 2008 to rehabilitate the building. COMMITTEE RECOMMENDATION: None CITY OF MUSKEGON MUSKEGON COUNTY, MICHIGAN RESOLUTION NO. 2007-96(a) A resolution approving a time extension for the Obsolete Property Rehabilitation Exemption Certificate for Promised Land Associates. The City Commission of the City of Muskegon hereby RESOLVES: Recitals A. An Obsolete Property Rehabilitation Exemption Ce1tificate (Resolution number 2005- 54b) was awarded by the City Commission for Promised Land Associates after hearing on June 14, 2005. B. The City Commission determined that the applicant would have twelve (12) months to complete the rehabilitation. It was to be completed by June 14, 2006, one year after the Certificate was issued. C. The applicant was unable to rehabilitate the building by the June 14, 2006 deadline. D. A City Commission Meeting was held on May 22, 2007 in which the Housing Board of Appeals requested that the building be demolished within 30 days, due to it being unsafe, substandard, and a public nuisance. A motion was made to demolish the building, but the motion did not pass. E. Promised Land Associates is requesting a two year extension to complete the rehabilitation, so that they may retain their Obsolete Property Rehabilitation Exemption Certificate. A two year extension would give the applicant until November 13, 2009 to rehabilitate the building. F. The City of Muskegon is a qualified local governmental unit as determined by STC Bulletin No. 9 of 2000, dated July 12, 2000. G. An Obsolete Property Rehabilitation District in which the application property is located was established after hearing on June 14, 2005, being the same date that the district was established. H. The applicant, Promised Land Associates, is not delinquent any taxes related to the facility. I. That notice pursuant to statute has been timely given to the applicant, the assessor for the City of Muskegon, representatives of the affected taxing units and the general public. NOW, THEREFORE, THE CITY COMMISSION RESOLVES: 1. Based upon the statements set forth in, and incorporating the recitals to this resolution, the City Commission hereby approves the application filed by Promised Land Associates, for a time extension on their Obsolete Property Rehabilitation Exemption Certificate, to be effective for a period of fifteen (15) months from the date of the denied motion to demolish the building (May 22, 2007), giving the applicant until August 22, 2008 to rehabilitate the building. 2. BE IT FURTHER RESOLVED, that this resolution of approval relates to the property set forth in Attachment A, the legal description containing the facilities to be improved; 3. BE IT FURTHER RESOLVED, that, as further condition of this approval, the applicant shall comply with the representations and conditions set forth in the recitals above and in the application material submitted to the City. This resolution passed. Ayes: Spataro, Wierenga, Carter, and Gawron Nays: Warmington and Wisneski CITY OF MUSKEGON \ \ /\), G ' f', ,I_ By ···-.j,,1 ~,,\-~.,,_ \ 'Q'v\ A .\ , 2,,Q__ I.l u /\-., Ann Marie Becker, City Clerk CERTIFICATE This resolution was adopted at a meeting of the City Commission held on November 13, 2007. The meeting was properly held and noticed pursuant to the Open Meetings Act of the State of Michigan, Act 267 of the Public Acts of 1976. CITY OF MUSKEGON ~~~\'1/0~0, ;~)c0IC 1,. Ann Marie Becker, City Clerk 2 Attachment A CITY OF MUSKEGON REVISED PLAT OF 1903 LOTS 10, 11 & 12 EXC SLY 63 FT THEREOF, ALSO LOT 13 & NLY 12 FT OF NWLY 41 FT OF LOT 14 BLOCK 175 Commission Meeting Date: November 13, 2007 Date: November 6, 2007 To: Honorable Mayor & City Commission From: Community and Neighborhood Services Department RE: Resolution to Sell 1122 Spring SUMMARY OF REQUEST: To approve the attached Resolution to Sell the City owned house at 1122 Spring to Ms. Georgia Crenshaw, of 322 Sumner, Muskegon, for the expected appraised value of $65,000 minus the $15,000 subsidy. The house at 1122 Spring is part of the Operation R&R initiative, also known as "Spring Street Awakening" the structure was obtained by the City of Muskegon through the tax reverted process. After the City obtained the house from the State of Michigan a total rehabilitation of the house was completed including abatement of any lead in the house. FINANCIAL IMPACT: The program income derived from this transaction will be deposited in the City's HOME. BUDGET ACTION REQUIRED: None STAFF RECOMMENDATION: To approve the Resolution and the sale of 1122 Spring to Ms. Georgia Crenshaw. COMMITTEE RECOMMENDATION: The City Commission and the Land Reutilization Committee approved the project. MUSKEGON CITY COMMISSION 2007-97(a) RESOLUTION TO APPROVE THE PURCHASE OF CURRENTLY STATE OWNED PROPERTY AT 1122 SPRING WHEREAS, the City of Muskegon is dedicated to the redevelopment of its neighborhoods and; WHEREAS, the City of Muskegon is dedicated to promoting high quality affordable single-family housing in the community and; WHEREAS, the City of Muskegon is dedicated to promoting homeownership throughout its neighborhoods; NOW THEREFORE, BE IT RESOLVED that the City Commission hereby approves the sale of 1122 Spring to Georgia Crenshaw of 322 Sumner, Muskegon. Ms. Crenshaw will purchase the house as an owner-occupied structure .. Adopted this 13 th day of November 2007 Ayes: Spataro, Warmington, Wierenga, Wisneski, carter, Gawron Nays: None By j ~· "; I ' i () " I II iv Ann Marie Becker, M C City Clerk CERTIFICATION 2007-97(a) This resolution was adopted at a regular meeting of the City Commission, held on November 13, 2007. The meeting was properly held and noticed pursuant to the Open Meetings Act of the State of Michigan, Act 267 of the Public Acts of 1976. CITY OF MUSKEGON ( . ' By: _\_~_\_\\_._-"\_·~_\_\_·"-!_\=i1,_~.l~.~-'-"1,~(.e>."-JOc·-'"={~. ··--1J-~ 1..,~· Ann Marie Becker, MMC City Clerk • ~ ~ -- -- , _ .. . - . . , ; . I I I, I I I 1\l ! I I ,I I • J I '-,, t-.. f I t , ' AGENDA ITEM NO.- - - - - -- CITY COMMISSION MEETING- - - - - - - TO: HONORABLE MAYOR AND CITY COMMI~ NERS FROM: Kenneth D. Grant, Income Tax Administrator~ DATE: October 30, 2007 RE: Donation program for 2007 Individual Income Tax Returns SUMMARY OF REQUEST: Approval of multiple donations programs for the 2007 income tax returns. Our department's goal is to increase the number tax refunds donated by 20-30%. Each year we will feature two or three donation options for the taxpayers. Some of our top donations programs include Lakeshore Trail Improvements, Muskegon Summer Celebration Fireworks, & the upkeep of Veteran' s Memorial Park. FINANCIAL IMPACT: The average amount collected each year is $2,000.00. Each donated refund saves the city approximately $1. 00 in checks fees. BUDGET ACTION REQUIRED: None STAFF RECOMMENDATION: Approval recommended COMMITTTEE RECOMMENDATION: Date: November 13, 2007 To: Honorable Mayor and City Commissioners From: City Treasurer RE: Approval to Purchase New Utility Billing System SUMMARY OF REQUEST: Approval to purchase the Equalizer Utility Billing System from BS&A Software. This request is the result of an investigation by City staff of possible utility billing software solutions that will improve productivity and operational efficiency. FINANCIAL IMPACT: Total cost of $36,000. BUDGET ACTION REQUIRED: The 4 th Quarter Budget Reforecast to include an adjustment for this purchase as a water fund capital expenditure. STAFF RECOMMENDATION: Approval to purchase the Equalizer Utility Billing System. COMMITTEE RECOMMENDATION: NIA Date: November 7, 2007 To: Honorable Mayor and City Commissioners From: City Treasurer RE: Background Information on the Utility Billing System Request Reason for Search The current utility billing system has been in place at the City since 1997 and was a part of the financial and payroll systems conversions that occurred between 1996 and 1997. At that time, it was anticipated that the utility billing system would be an interface with the City's financial accounting and reporting system. However, an actual interface of the systems has not materialized. As a part of the Finance Division, one of the 2007 budget year goals for City Treasurer's Office was to investigate possible utility billing software solutions that will improve productivity and operational efficiency. In addition, with the rising costs of water utility bills, it becomes more difficult for consumers to manage a quarterly utility bill and would be easier for customers to budget and manage a monthly bill. Such a change could also improve the City's cash flow. Therefore, there is a need to have a utility billing system in place that would easily accommodate a change from quarterly to monthly billing. Search and Criteria Over the last year, City staff began research to replace the cunent utility billing system with a system that would offer the following: 1) Capability of changing customer billing cycle from quarterly to monthly. 2) Easier procedure for Final Bills, Past Due/Shutoff. 3) Provide software that is compatible with the City's cunent computer technology. 4) Ability to rollover outstanding balances to be placed on the tax bill. 5) Auto meter reader system interface. 6) Unlimited entry of metered and non-metered service types, billing items, work order types, etc. 7) Ability of process ACH (Automated Clearing House) electronic payments for customers that have signed-up for direct bank debit to pay their bills. 8) Automatic calculation of penalties. 9) Event scheduler that allows the scheduling of unattended events such as billings, penalty calculations, importing meter reads, etc. I 0) Ability of displaying utility billing data on the web. 11) Positive reputation. 12) Quality customer support. Results We have found that there is a myriad of utility billing systems on the market that can be purchased at prices that range from a low of about twelve thousand to over several hundred thousand dollars. However, our investigation found that the systems at the lower end of the cost range did not meet all of the search criteria. Most of the systems that met the search criteria were at the high end of the cost range. The system that met all of our search criteria, while being at a reasonable cost, was the BS&A Equalizer Utility Billing System. BS&A Software, Inc, was founded in I 987 in Michigan with a vision of providing a powerful software system for local government in Michigan. The company has made a commitment to continuously improve the quality of their existing products and services while constantly looking toward the future. In I 998, the City began using BS&A Software's Assessing and Property Tax Administration Systems. Since that time, all of the municipalities in Muskegon County that perform assessing and property tax billing functions have begun using the BS&A systems. With the successful deployment of the Assessing and Tax Systems, about three years ago, the City's Inspections Department began using the BS&A Permits and Inspections System. City staff have interviewed and met with several other Michigan municipalities that are cmTently using the BS&A Utility Billing System who have given very positive references. Cost of the Proposed Utility Billing System The proposed costs for BS&A Software's Equalizer Utility Billing System are as follows: Software system - $24,000 Network server - 5,000 On-site Training - 5,000 Data conversion 2,000 Proposed Total $36,000 Conclusion The services and the cost of the proposed utility billing system provided by BS&A Software is the most prudent choice when considering current technologies in use at the City while seeking increased productivity and operational efficiency at a reasonable pnce. AGENDA ITEM No. MUSKEGON CITY COMMISSION - November 13, 2007 TO: Honorable Mayor & City Commissioners FROM: Planning Department (j£__, DATE: October 23, 2007 SUBJECT: Revocation of a Neighborhood Enterprise Zone Certificate SUMMARY OF REQUEST Stan and Chris Cunningham is in violation of Sec. 207.781 sec. 11 subsection (4) which states: lf the owner of the facility fails to make the annual payment of the neighborhood ente,prise zone tax and the ad valorem property tax on the land under the general property tax act, 1893 PA 206, MCL 211. J to 211.157, the commission by order shall revoke the certificate. However, ifpayment ofthese taxes is made before the revocation is effective, the commission, upon application of the owner, shall rescind the order ofrevocation. Ifpayment of these taxes and any subsequent ad valorem property tax due on the facility is made after revocation of the certificate, the commissfon, upon application of the owner, shall reinstate the certificate for the remaining period of time for which the original certificate would have been in effect. Stan and Chris Cunningham have failed to pay 2006 taxes for the property located at 1223 Morgan Avenue whose parcel numbers are 24-941-096-0253-00 and 24-613-000-0751-00. Approval or denial by the City Commission is required must be forwarded to the State Tax Commission. Staff sent the owners a letter with the County Treasurer's phone number on it regarding the pay off amount of the delinquent property taxes on September 19, 2007 giving them until October 12, 2007 to pay the taxes. They remain unpaid. FINANCIAL IMP ACT The property will no longer be able to take advantage of the certificate number 96-253 which allowed taxation at 50% of the State average for a stated number of years. BUDGET ACTION REQUIRED None. STAFF RECOMMENDATION Approve revocation of the NEZ cettificate and have the Mayor and City Clerk sign the resolution and submit it to the State Tax Commission. COMMITTEE RECOMMENDATION None. O:\Planning\COMMON\NEZ\1223 Morgan\Agcnda Item-revocation.doc Resolution No. 2007-97(d) MUSKEGON CITY COMMISSION RESOLUTION TO REVOKE THE NEIGHBORHOOD ENTERPISE ZONE CERTIFICATE # 96-253 WHEREAS, Stan and Chris Cunningham have not paid their property taxes for the property located at 1252 Adams in the Marquette neighborhood, and; WHEREAS, the applicant owes for property taxes for the parcel # 24-941-096-0253-00 for the tax year 2006, which does not meet the eligibility criteria for a Neighborhood Enterprise Zone Certificate; WHEREAS, the applicant owes for property taxes for the parcel# 24-613-000-0751-00 for the tax year 2006, which does not meet the eligibility criteria for a Neighborhood Enterprise Zone Certificate; NOW, THEREFORE, BE IT RESOLVED that the Neighborhood Enterprise Zone Certificate# 96-253 be revoked. Adopted this, 13 th day of November, 2007. Ayes: Wisneski, Carter, Gawron, Spataro, Warmington, Wierenga Nays: None Absent: Shepherd ,,:---_;, Attest:\ \l\ '-'~\~\ ; \t,,l ,)C.L\ i A~ Marie Becker, MMC City Clerk 2007-97(d) 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 13, 2007. By: (\ ./\I Z ~ \,\.1v1"-1 '\£1._,kA, L.c0~1 Ann Marie Becker, MMC City Clerk Commission Meeting Date: November 13, 2007 Date: November 5, 2007 To: Honorable Mayor & City Commission From: Planning & Economic Development Department RE: Establishment of the Downtown Development Authority District as a "Redevelopment Project Area" SUMMARY OF REQUEST: There is a new type of liquor license available for businesses within the boundaries of the Downtown Development Authority (ODA) District. It is similar to the former DOA liquor license. In order for the Liquor Control Commission to approve issuance of these licenses, the buildings that house the licensed premises must be located within an established "Redevelopment Project Area". The Redevelopment Project Area has the same boundaries as the current ODA In order to establish this area as the Redevelopment Project Area, the City Commission must approve the attached resolution. FINANCIAL IMPACT: No immediate impact, although the granting of additional liquor licenses downtown will increase the number of restaurants and entertainment venues possible, thus increasing the City of Muskegon's tax revenues. BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: To approve the attached resolution and authorize the Mayor and Clerk's signatures. COMMITTEE RECOMMENDATION: None. CITY OF MUSKEGON MUSKEGON COUNTY, MICIUGAN RESOLUTION NO, :zoo7-97(e) A resolution concerning the establishment ol the Downtown Development Authority District as a ''redevelopment project area", The City Commission of the City of Muskegon hereby RESOLVES: Recitals 1. The City of Muskegon Ordinance No. 969 established a Downtown Development Authority District in the City of Muskegon under 1975 PA [97 (MCL 125.1651, et seq.) 2. 436.152la(l)(b) of the Michigan Compiled Laws provides that in addition to the number of on-premises licenses available in cities under Section 531([), the Michigan Liquor Control Commission may issue licenses to establishments located within a downtown development authority district established under 1975 PA 197 (MCL 125.1651, et seq.) where the governing body of the city has established the development district as a redevelopment project area. NOW, THEREFORE, THE CITY COMMISSION RESOLVES: The City Commission deems it to be in the best interest of the City of Muskegon that the Downtown Development Authority District be established as a redevelopment project area under MCL 436.1521a(l)(b) in order to advance the objectives of the City of Muskegon to halt property value deterioration and increase property tax valuation and revenues within the District by creating the opportunity for the establishment of new bars/restaurants within the District. Adopted this 13 th day of November, 2007. AYES: Carter, Gawron, Spataro, Warmington, Wierenga, and Wisneski NAYES: None ABSENT: Shepherd ·ngton ( \ .' .\ . c· \~)-'-..I," ~"'-!VJ. ; . ( l L, By: 1;,,'-..,0 Ann Marie Becker, MMC Its Clerk CERTIFICATION 2007-97(e) This resolution was adopted at a regular meeting of the City Commission, held on November 13, 2007. The meeting was properly held and noticed pursuant to the Open Meetings Act of the State of Michigan, Act 267 of the Public Acts of 1976. CITY OF MUSKEGON \' By: ~-\\vi~l\:\-0 C r, ~ ,._ ~0\Lv\ Ann Marie Beckel', MMC City Clerk PARMENTER O'TOOLE Attorneys at Law 601 Terrace Street • P.O. Box 786 • Muskegon, Michigan 49443~0786 Phone 231.722.1621 • Fax 231.722.7866 or 231.728.2206 www.Parmenterlaw.com October 30, 2007 Cathy Brubaker-Clarke Planning Department By Email: cathy.brubaker-clarke@postman.org City of Muskegon 933 Tetrnce Street Muskegon,MI49443-0536 Re: Development District Area Class C On-Premises Licenses Resolution Establishing the DDA as a Redevelopment Project Area Dear Cathy: We have made significant progress towards obtaining a determination of the number of DDA Class-C On-Premises Liquor Licenses for which the City of Muskegon will be eligible under MCL 436.1521 a(] )(b ). As is turns out, it will be many' We have been working with Dennis Bums to calculate the total private and public investment within the DDA during the period beginning January 1, 2004 and ending on October 31, 2007. There has been a grand total of $17,745,000 of such investment. This makes the City eligible for 88 Class C On-Premises Licenses. I have attached for your review a copy of the Affidavit and Exhibit, which I have asked Mr. Barnes to execute before a notary, and to have it certified by the City Clerk. You should !mow an important fact with regard to eligible Licenses. Once the number of eligible licenses has been established for a given period of time, the City does not lose them. In addition, if there are incremental additional expenditures of $200,000 within the DDA, additional licenses may be applied for and awarded. In other words, once established, the City can bank any un-issued DDA Licenses for future use. We submitted a draft of Mr. Bums' Affidavit and exhibit of expenditures to the MLCC for preliminary approval. With regard to other documentation to be provided by the City, the MLCC approved everything we submitted, however, they will require that the City adopt and submit to them the following additional Resolutions: a. Resolution Establishing DDA as a "Redevelopment Project Area". Ms. Becker has provided me with Resolution 88-78(c) and Ordinance No. 969 establishing a Downtown Development Authority in the City of Muskegon. Because this Resolution dates back to 1988, it predates the enactment of the statute under which the City of Muskegon now seeks DDA Class C On-Premises Licenses. Therefore, the City Commission must now adopt a Resolution that "establishes the Downtown Development Authority District as a redevelopment project area under MCL 436.1521 a(l)(b)."; and b. Resolution Approving Specific Applicant. The City will need to adopt a Resolution which approves a specific applicant (individual, corporation, limited liability company, limited partnership), at a specific location "ABOVE ALL OTHERS." Remember, that to the extent the City is eligible for multiple DDA Class C On-Premises Licenses, the City is permitted to approve multiple prospective applicants concurrently. You will, however, need to pass a separate Resolution for each and every applicant. Currently, our office is completing a DDA Class C On-Premises License Application for Iordache Group, Inc. for use at a restaurant to be operated downtown. This is currently confidential, however, we anticipate entering into a lease with the Lessor in the very near future. As soon as we have been authorized to do so, we will be submitting a request on behalf of the applicant for the City Commission to recommend approval of their application. In the meantime, when will the Commission be able to consider adopting the Resolution that established the DDA as a redevelopment project area? Please call me to discuss. Sincerely yours, ¥JL<;;:/ 71 cc{'~ Keith L. McEvoy Direct: 231. 722.5413 Fax 231.722.7866 Internet Address: klm@Parmenterlaw.com Attachment AFFIDAVIT OF PUBLIC AND PRIVATE INVESTMENT I, Dennis W. Bums, in my capacity as Assessment Administration Supervisor for the City of Muskegon, a municipal corporation, of 933 Terrace Street, Muskegon, Michigan 49440, being first duly sworn, deposes and says: THAT I am familiar with and make this affidavit with regard to public and private investment in real and personal property within the qualified Downtown Development Authority in the City of Muskegon established pursuant to Ordinance No. 969 ("DDA District"); and THAT, upon information and belief, attached Exhibit A reflects actual public and private investment in real and personal property within the DDA District during the period beginning January 1, 2004 through October 31, 2007; and THAT the foregoing is true to the best of my knowledge and belief. Dated this ___ day of _ _ _ _ _ _ _ _, 2007. Dennis W. Burns, Assessment Administration Supervisor for the City of Muskegon STATE OF MICHIGAN COUNTY OF MUSK.EGON Signed and sworn to before me in Muskegon County, Michigan, on _ _ _ _ __ 2007, by Dennis W. Bums, Assessment Administration Supervisor for the City of Muskegon, a municipal corporation. _ _ _ _ _ _ _ _ _ _, Notary Public Acting in the County of Muskegon Muskegon County, Michigan My Comm. Expires: _ _ _ _ _ _ __ Prepared by: Parmenter O'Toole By: Keith L. McEvoy P.O. Box 786 Muskegon, Michigan 49443-0786 CITY OF MUSKEGON DEVELOPMENT DISTRICT AREA-PUBLIC/PRIVATE INVESTMENTS Private Investment (Real Property): Parcel# Project Year Address Value 24-205-317-0009-00 Boilerworks LLC 2005 600 W. Clay $1,300,000 Harley Davidson 2007 I 49 Shoreline $2,300,000 24-205-556-0001-00 24-205-562-0001-00 National City Bank 2005 715 Terrace $1,300,000 WaterMark Condo's 2004 930 Washington $6,600,000 24-205-467-0001-00 TOTAL $11,500,000 Private Investment (Personal Property): Parcel# Project Year Address Value 24-900-251-6585-00 Warner Norcross 2005 316 Morris $236,000 Knoll Group 2005 965 W, Western $739,000 24-900-351-0420-00 Coles Quality Foods 2005 1188 Lakeshore $2,000,000 24-982-206-0166-00 TOTAL $2,975,000 Public Investment: Parcel# Project Year Address Value New Western Ave 2007 DDA District $3,270,000 TOTAL $3,270,000 GRAND TOTAL: $17,745,000 CERTIFICATION Attached is a true copy of an Affidavit executed by Dennis W. Bums, in his capacity as Assessment Administration Supervisor for the City of Muskegon, a municipal corporation, of 933 Terrace Street, Muskegon, Michigan 49440, with regard to public and private investment in real and personal property within the qualified Downtown Development Authority in the City of Muskegon established pursuant to Ordinance No. 969 within the past five years. CITY OF MUSKEGON 933 Terrace, Muskegon, MI 49440 By: Ann Marie Becker, MMC City Clerk Date: _ _ _ _ _ _,2007 October 23, 2007 Ms. Ciggzree S. Morris 2528 Peck Street Muskegon Heights, MI 49444 Dear Ms. Morris, I am writing a follow-up letter to my letter dated September 7, 2007. As you know, I included the information from the Michigan Liquor Control Commission (MLCC). However, I have had additional conversations with our city attorney's office, as they learn more about this relatively new process. I want to clarify the information that is required by the City to proceed with the Development District On-Premises Liquor License. As stated in the prior letter, you will need to request a resolution from the Muskegon City Commission recommending approval of your application "ABOVE ALL OTHERS". Among other requirements, the City must provide this resolution to the MLCC prior to or at the time you have submitted your DDA On-Premises License application for approval. If you would like the City Commission to consider a resolution that recommends the approval of your application, please submit a request in writing to the City Clerk. As you are probably aware, there are certain financial requirements that must be met prior to the MLCC's issuance of a DDA On-Premises License. First, the license costs $20,000. Second, an applicant must demonstrate that they have expended $75,000 on the licensed premises within the last five (5) years or the Applicant must have a commitment for the expenditure of at least that amount on the building that houses the licensed premised before the issuance of the license. To that end, the Commission will be closely reviewing the economic resources and financial commitments of any applicant prior to making a recommendation for MLCC approval of their DDA On-Premises License application. If you have not already done so, we recommend that you prepare and file your DDA On-Premises License application with the MLCC. The Commission is more likely to be inclined to recommend the approval of an applicant that has already submitted an application to the MLCC for their consideration. It is actually the MLCC (not the City Commission) that will need verification that you have contacted the holders of an existing Class C liquor licenses or quota licenses located within the City of Muskegon that are in escrow and verify whether or not these licenses are for sale. Please let me know if you have any additional questions. Sincerely, Cathy Brubaker-Clarke Director of Community & Economic Development Enclosure Commission Meeting Date: November 13, 2007 Date: November 5, 2007 To: Honorable Mayor & City Commission From: Planning & Economic Development Department c,/3 C RE: Issuance of a Downtown Development Authority District On-Premises Liquor License- lordache Group, Inc. SUMMARY OF REQUEST: The lordache Group, Inc. has applied for a Downtown Development Authority District On-Premises Liquor License for the premises at 380 W. Western, which is located within an area established by the City Commission as a redevelopment project area. The applicant shall be engaged in the operation of a restaurant and an adjacent bakery cafe at this address. FINANCIAL IMPACT: No immediate impact, although the granting of the liquor license to lordache Group will add to the business and entertainment mix in downtown Muskegon, and will add to the City of Muskegon's tax revenues. BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: To approve the attached resolution and authorize the Mayor and Clerk's signatures. COMMITTEE RECOMMENDATION: None. CITY OF MUSKEGON MUSKEGON COUNTY, MICWGAN RESOLUTION NO. 2007-97(£) A resolution concerning the issuance of a Downtown Development Authority District On• Premises Liquor License pursuant to 43&,1521a(1)(b) of the Michigan Compiled Laws. The City Commission of the City of Muskegon hereby RESOLVES: Recitals 1. Iordache Group, Inc. has applied for a Downtown Development Authority District On- Premises Liquor License for the premises at 380 W. Western Avenue, which is located within an area established by the City Commission as a redevelopment project area pursuant to 436.1521a(l)(b) of the Michigan Compiled Laws. 2. It is required that the City Commission approve a specific applicant, at a specific location "ABOVE ALL OTHERS". City Commission Findings The City Commission is satisfied that: 1. That the applicant has sufficiently demonstrated a commitment for a capital investment of not less than $75,000 for the build-out and improvements of the building that will house the licensed premises, which amounts shall be expended before the issuance of the license. 2. That the licensed business shall be engaged in dining, ente1tainment or recreation, that is open to the general public, with a seating capacity of not less than 50 persons. NOW, THEREFORE, THE CITY COMMISSION RESOLVES: The City Commission deems it to be in the best interest of the City of Muskegon to approve the application of Iordache Group, Inc. for a Downtown Development Authority District On- Premises Liquor License for the premises at 380 W. Western Avenue pursuant to 436.1521 a(l)(b) of the Michigan Compiled Laws, and recommends to the Michigan Liquor Control Commission the issuance of said requested license "ABOVE ALL OTHERS". Adopted this 13 th day of November, 2007. AYES: Gawron, Spataro, Warmington, Wierenga, Wisneski, and Carter NAYES: None ABSENT: Shepherd "~.;? By: \'\.A_;vvr-:'.... \\.,'-ll_A__ ~, (,c1.Jl~ Ann Marie Becker, MMC Its Clerk CERTIFICATION 2007-97(f) This resolution was adopted at a regular meeting of the City Commission, held on November 13, 2007. The meeting was properly held and noticed pursuant to the Open Meetings Act of the State of Michigan, Act 267 of the Public Acts of 1976. CITY OF MUSKEGON ~' By: ~.~',,,,,_\ ) \~\cu, 1\ , ,).Q..L\k, Ann Marie Becker, MMC City Clerk ~ (I) 0.. e a.. "Cl ~ (I) Q) Cf) C C 8,.Q E ~~2 cn .E ~ ~Es o8s es~L___ L_~---------------~L----..l....~::..:::.::..._.;:._____
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