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CITY OF MUSKEGON CITY COMMISSION MEETING SEPTEMBER 12, 2006 CITY COMMISSION CHAMBERS @ 5:30 P.M. AGENDA o CALL TO ORDER: o PRAYER: o PLEDGE OF ALLEGIANCE: o ROLL CALL: o HONORS AND AWARDS: o INTRODUCTIONS/PRESENTATION: o CONSENT AGENDA: A. Approval of Minutes. CITY CLERK B. Approval of a Neiqhborhood Enterprise Zone Certificate for 286 Monroe. PLANNING & ECONOMIC DEVELOPMENT C. Approval of a Neighborhood Enterprise Zone Certificate for 1203 4th Street. PLANNING & ECONOMIC DEVELOPMENT D. Sale of a Buildable Vacant Lot at 209 E. Walton. PLANNING & ECONOMIC DEVELOPMENT E. Policy Change to "Policy for Sale of City-Owned Residential Property". PLANNING & ECONOMIC DEVELOPMENT F. Rejection of all Bids for Roof Replacement. PUBLIC WORKS G. Expense for Stormwater Phase II Compliance 2007-2009. PUBLIC WORKS H. Approval of Contractor for Rehabilitation of House at 451 East Isabella. COMMUNITY & NEIGHBORHOOD SERVICES I. Lead Based Paint Abatement at 451 East Isabella. COMMUNITY & NEIGHBORHOOD SERVICES J. Approval of Contractor for Rehabilitation of House at 214 Myrtle. COMMUNITY & NEIGHBORHOOD SERVICES K. Lead Based Paint Abatement at 214 Myrtle. COMMUNITY & NEIGHBORHOOD SERVICES L. Defined Contribution Retirement Plan for New Hires (Police Patrol). FINANCE o PUBLIC HEARINGS: A. Reauest to Issue an Obsolete Property Certificate - 1133 Third Street. PLANNING & ECONOMIC DEVELOPMENT B. Spreading of the Special Assessment Roll for Benton Avenue and Williams Street. Chestnut to Catawba. ENGINEERING C. Spreading of the Special Assessment Roll for Park Street. Laketon to Southern. ENGINEERING D. 2007 Budget Adoption. FINANCE o COMMUNICATIONS: o CITY MANAGER'S REPORT: o UNFINISHED BUSINESS: o NEW BUSINESS: A. Set Public Hearing for Amendment to Brownfield Plan - Redevelopment of the Century Club & Daniels and Redevelopment of Muskegon Savings Bank. PLANNING & ECONOMIC DEVELOPMENT B. Set Public Hearing for Amendment to Brownfield Plan - Vida Nova at Edison landing. PLANNING & ECONOMIC DEVELOPMENT C. Extension of Contract to Market Seaway Industrial Park. PLANNING & ECONOMIC DEVELOPMENT D. Extension of Tool & Die Recovery Zone Status for Northern Machine Tool. PLANNING & ECONOMIC DEVELOPMENT E. Fire Station Construction Contract. CITY MANAGER o ANY OTHER BUSINESS: o PUBLIC PARTICIPATION: > Reminder: Individuals who would like to address the City Commission shall do the following: > Fill out a request to speak form attached to the agenda or located in the back of the room. )> Submit the form to the City Clerk. )> Be recognized by the Chair. > Step forward to the microphone. > State name and address. > Limit of 3 minutes to address the Commission. )> {Speaker representing a group may be allowed 10 minutes if previously registered with City Clerk.) o ADJOURNMENT: ADA POLICY: THE CITY OF MUSKEGON WILL PROVIDE NECESSARY AUXILIARY AIDS AND SERVICES TO INDIVIDUALS WHO WANT TO AITEND THE MEETING UPON TWENTY FOUR HOUR NOTICE TO THE CITY OF MUSKEGON. PLEASE CONTACT LINDA POITER, ACTING CITY CLERK, 933 TERRACE STREET, MUSKEGON, Ml 49440 OR BY CALLING (231) 724-6705 OR TOO: (231) 724·4172. Date: September 12,2006 To: Honorable Mayor and City Commissioners From: City Clerk RE: Approval of Minutes SUMMARY OF REQUEST: To approve the minutes of the Regular Commission Meeting that was held on Tuesday, August 22, 2006. FINANCIAL IMPACT: None. BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: Approval of the minutes. CITY OF MUSKEGON CITY COMMISSION MEETING SEPTEMBER 12, 2006 CITY COMMISSION CHAMBERS@ 5:30P.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, September 12,2006. Mayor Warmington opened the meeting with a prayer from Reverend Michael Borgert from the First Christian Reformed 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, Commissioner Sue Wierengo, Chris Carter, Kevin Davis, Clara Shepherd, and Lawrence Spataro, City Manager Bryon Mazade, City Attorney John Schrier, and Acting City Clerk Linda Potter. 2006-74 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, August 22, 2006. FINANCIAL IMPACT: None BUDGET ACTION REQUIRED: None STAFF RECOMMENDATION: Approval of the minutes. B. Aooroval of a Neighborhood Enterprise Zone Certificate for 286 Monroe. PLANNING & ECONOMIC DEVELOPMENT SUMMARY OF REQUEST: An application for a Neighborhood Enterprise Zone certificate has been received from Neighborhood investment Corporation to rehabilitate a home in the Nelson neighborhood at 286 Monroe Avenue. The home is located in a Neighborhood Enterprise Zone. The application states that the estimated cost for rehabilitation will be $73,057. The rehab will consist of plumbing, electrical, drywall, carpentry, painting, floor coverings, and siding repair for the home. The applicant has met local and state requirements for the issuance of the Neighborhood Enterprise Zone certificate. Approval or denial by the City Commission is required within 60 days of the application date and must be forwarded to the State Tax Commission. FINANCIAL IMPACT: Taxation will be 50% of the State average for the next 12 years. BUDGET ACTION REQUIRED: None STAFF RECOMMENDATION: Approve the issuance of the Neighborhood Enterprise Zone certificate. C. Approval of a Neighborhood Enterprise Zone Certificate for 1203 4'h Street. PLANNING & ECONOMIC DEVELOPMENT SUMMARY OF REQUEST: An application for a Neighborhood Enterprise Zone certificate has been received from Neighborhood Investment Corporation to rehabilitate a home in the Nelson neighborhood at 1203 4th Street. The home is located in a Neighborhood Enterprise Zone. The application states that the estimated cost for rehabilitation will be $35,220. The rehab will consist of windows, floor coverings, paint, drywall, carpentry, bathroom, and a new kitchen to the home. The applicant has met local and state requirements for the issuance of the Neighborhood Enterprise Zone certificate. Approval or denial by the City Commission is required within 60 days of the application date and must be forwarded to the State Tax Commission. FINANCIAL IMPACT: Taxation will be 50% of the State average for the next 9 years. BUDGET ACTION REQUIRED: None STAFF RECOMMENDATION: Approve issuance of the Neighborhood Enterprise Zone certificate. D. Sale of a Buildable Vacant lot at 209 E. Walton. PLANNING & ECONOMIC DEVELOPMENT SUMMARY OF REQUEST: To approve the sale of a vacant buildable lot at 209 E. Walton to J2 Properties Development and Construction Company, LLC. The lot is 132 x 140 ft. and is being offered to J2 Properties Development and Construction Company, LLC for $4,125. This property will be split into two lots to construct two single-family homes facing Murphy Street. The proposed homes will have three bedrooms, two and a half bathrooms, a two stall attached garage, with one home consisting of 1,536 sq. ft. and the other one consisting of 1.400 sq. ft. FINANCIAL IMPACT: The sale of this lot for the construction of two single family homes will generate additional tax revenue for the City and will place the property back on the City's tax rolls thus relieving the City of continued maintenance costs. BUDGET ACTION REQUIRED: None STAFF RECOMMENDATION: To approve the resolution and to authorize both the Mayor and the Clerk to sign said resolution and deed. COMMITTEE RECOMMENDATION: The Land Reutilization Committee recommended approval of the sale at their regular meeting of August 22, 2006. E. Policy Change to "Policy for Sale of City-Owned Residential Property", PLANNING & ECONOMIC DEVELOPMENT SUMMARY OF REQUEST: To approve the changes to the "Policy for Sale of City- Owned Residential Property" as follows: Page 2 item 7 - This is to increase the Home Design Credit from $2,500 to $3,500 and to place a time limit as to when it can be collected. Page 3 "Process for Purchasing Land" to change the name of the brochure to Purchase of City Owned Buildable Lots & Building Incentives. Page 4 "Title Evidence/Insurance" to correct a misspelled word from "spit" to "split". FINANCIAL IMPACT: None 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 recommended approval of the policy change at their regular meeting of August 22, 2006. F. Rejection of all Bids for Roof Replacement. PUBLIC WORKS SUMMARY OF REQUEST: We are asking the Commission to reject all bids submitted for the replacement of the shop area roof at the Public Service Building. Each of the 3 bids taken exceeded the budgeted amount set aside for this project. We will re-bid with modified specifications which are expected to lower the expected bids to within the budgeted amount. FINANCIAL IMPACT: $50,000 was budgeted in the Public Service Building Fund for shop roof replacement in 2006. All three bids were well over $100,000 each. BUDGET ACTION REQUIRED: None STAFF RECOMMENDATION: Reject all bids. This project will be re-bid. G. Expense for Stormwater Phase II Compliance 2007-2009. PUBLIC WORKS SUMMARY OF REQUEST: The Muskegon Area Storm Water Committee is asking for a commitment to Muskegon's share of the 2007-2009 Stormwater Phase II compliance program. Our total expense would be $31,571 payable at $1 0,524 for each year 2007-2009. This is to pay for professional services by our consultant, FTC&H to continue development of required plans for this consortium of municipalities. This is a 3% increase over the current year's amount. $9,917. FINANCIAL IMPACT: This increase has been allocated under the Stormwater Management Budget of the General Fund for 2007. BUDGET ACTION REQUIRED: None STAFF RECOMMENDATION: To approve this commitment. H. Approval of Contractor for Rehabilitation of House at 451 East Isabella. COMMUNITY & NEIGHBORHOOD SERVICES SUMMARY OF REQUEST: To approve the contract with Lewis E. Johnson Construction, 16076 Bonita Court, Grand Haven, Ml for the completion of the rehabilitation of 451 E. Isabella, for the cost of $58,900. After the total rehabilitation is completed, the home will be sold to a qualified first-time homebuyer, continuing the City's aggressive neighborhood revitalization efforts in the Angel neighborhood area under the Operation: Like a "Good Neighbor". The City received four additional bids: • Obenauf DePender Construction LLC, 4471 Thompkins Trail, Muskegon, Ml for $68,578 • J2 Development & Construction, 109 West Laketon Avenue, Muskegon, Ml for $75,010 • Higdon Builders Inc, 11180 East D Avenue, Richland, Ml for $78,350 • Beattie Bros. Construction LLC, 2786 Holton-Whitehall Road, Twin Lake, Ml for $104,995 FINANCIAL IMPACT: The funding for the project will be taken from the City's 2006-2007 HOME funds. BUDGET ACTION REQUIRED: None STAFF RECOMMENDATION: To approve the Community and Neighborhood Services office to develop a contract with Lewis E. Johnson Construction of Grand Haven, Michigan, and direct the Mayor and Clerk to sign the contract. I. Lead Based Paint Abatement at 451 East Isabella. COMMUNITY & NEIGHBORHOOD SERVICES SUMMARY OF REQUEST: To approve the contract with Abatement Specialties Group Inc, 11180 East D Avenue, Richland, Ml for the lead base paint abatement of the city-owned home at 451 E. Isabella for the cost of $32,650. The City received one additional bid from Statewide Abatement, 1720 Creston, North Muskegon, Ml for $33,190. After the lead base paint abatement is complete, the structure will be totally rehabilitated and then sold to a qualified low to moderate income home buyer. FINANCIAL IMPACT: Cost of the abatement will be allocated from the 2006-2007 HOME budget. BUDGET ACTION REQUIRED: None STAFF RECOMMENDATION: To approve Community and Neighborhood Services office to develop a contract with Abatement Specialties Group Inc. of Richland, MI. and direct the Mayor and Clerk to sign the contract. J. Approval of Contractor for Rehabilitation of House at 214 Myrtle. COMMUNITY & NEIGHBORHOOD SERVICES SUMMARY OF REQUEST: To approve the contract with Success Enterprise, 2722 East Broadway, Muskegon, Ml for the completion of the rehabilitation located at 214 Myrtle for the cost of $65,505. This property is located near the City's current lnfill Development Project "Walton Street Renaissance". After the total rehabilitation is completed, the home will be sold to a qualified first-time homebuyer, continuing the City's aggressive neighborhood revitalization efforts in the Angel neighborhood area under the Operation: "Market View Alley". The City received five additional bids: • Obenauf DePender Construction LLC, 4471 Thompkins Trail. Muskegon, Ml for $77,060 • J2 Development & Construction, 109 West Laketon Avenue, Muskegon, Ml for $94,120 • Holden Construction, 601 Amity, Muskegon, Ml for $95,045 • Higdon Builders Inc., 11180 East D Avenue, Richland, Ml for $1 03,500 • Beattie Bros. Construction LLC. 2786 Holton-Whitehall Road, Twin Lake, Ml for $1 40.430 FINANCIAL IMPACT: The funding for the project will be taken from the City's 2006-2007 HOME funds. BUDGET ACTION REQUIRED: None STAFF RECOMMENDATION: To approve the Community and Neighborhood Services office to develop a contract with Success Enterprises and direct the Mayor and Clerk to sign the contract. K. Lead Based Paint Abatement at 214 Myrtle. COMMUNITY & NEIGHBORHOOD SERVICES SUMMARY OF REQUEST: To approve the contract with Success Enterprise, 2722 East Broadway, Muskegon, Ml for the lead base paint abatement of the city- owned home at 214 Myrtle for the cost of $40,950. The City received one additional bid from Abatement Specialties, 11180 East D Avenue, Richland, Ml for $45,700. After the lead base paint abatement is complete, the structure will be totally rehabilitated and then sold to a qualified low to moderate income homebuyer. FINANCIAL IMPACT: Cost of the abatement will be allocated from the 2006-2007 HOME budget. BUDGET ACTION REQUIRED: None STAFF RECOMMENDATION: To approve Community and Neighborhood Services office to develop a contract with Success Enterprises of Muskegon, and direct the Mayor and Clerk to sign the contract. L. Defined Contribution Retirement Plan for New Hires (Police Patrol). FINANCE SUMMARY OF REQUEST: Through negotiation/arbitration with the Police Patrol Union, new employees hired after July 28, 2006, will be covered under a defined contribution pension program. In addition, current employees may also join the Defined Contribution plan on on elective basis during a window period. The new Defined Contribution plan calls for a city contribution of 10% and on employee contribution of 6% of wages. Documents for this plan are the some as for the previous plan set-ups for Clerical, Fire, Non-union and 517M employees. Stoff is requesting authorization to hove the Mayor, Clerk and other required city officials sign the necessary documents to implement the new Defined Contribution plan for police patrol. FINANCIAL IMPACT: Moving to a defined contribution plan will help stabilize and better define the city's annual pension costs. BUDGET ACTION REQUIRED: None at this time. STAFF RECOMMENDATION: Approval Motion by Commissioner Carter, second by Commissioner Spataro to approve the consent agenda as read. ROLL VOTE: Ayes: Carter, Davis, Gawron, Shepherd, Spataro, Warmington, and Wierenga Nays: None MOTION PASSES 2006-75 PUBLIC HEARINGS: A. Request to Issue an Obsolete Property Certificate - 1133 Third Street. PLANNING & ECONOMIC DEVELOPMENT SUMMARY OF REQUEST: Pursuant to Public Act 146 of the Michigan Public Acts of 2000, OAT Holdings LLC, 16012 Baird Drive, Spring Lake, Ml has requested the issuance of on Obsolete Property Certificate for the property located at 1133 Third Street, Muskegon, MI. Total capital investment for this project is $175,000. The project consists of converting the building into a restaurant. Because of the amount of investment, the applicant is eligible for a 9 year certificate. FINANCIAL IMPACT: If an Obsolete Property Certificate is issued, the property taxes would be frozen for the duration of the certificate. BUDGET ACTION REQUIRED: None STAFF RECOMMENDATION: Staff recommends approval. The Public Hearing opened at 5:49 p.m. to hear and consider any comments from the public. No public comments were heard. Motion by Commissioner Carter, second by Commissioner Shepherd to close the Public Hearing at 5:52 p.m. and approve the request to issue an Obsolete Property Certificate for 1133 Third Street. ROLL VOTE: Ayes: Davis, Gawron, Shepherd, Spataro, Warmington, Wierengo, and Carter Nays: None MOTION PASSES B. Spreading of the Special Assessment Roll for Benton Avenue and Williams Street, Chestnut to Catawba. ENGINEERING SUMMARY OF REQUEST: To hold a public hearing on the spreading of the special assessment for Benton & Williams Street from Chestnut to Catawba, and to adopt the resolution confirming the special assessment roll. FINANCIAL IMPACT: A total of $32,272.55 would be spread against the sixteen parcels abutting the project. BUDGET ACTION REQUIRED: None at this time. STAFF RECOMMENDATION: To approve the special assessment roll, and adopt the resolution. The Public Hearing opened at 5:53 p.m. to hear and consider any comments from the public. No public comments were heard. Motion by Vice Mayor Gawron, second by Commissioner Carter to close the Public Hearing at 5:55 p.m. and spread the special assessment roll for Benton and Williams from Chestnut to Catawba. ROLL VOTE: Ayes: Gawron, Shepherd, Spataro, Warmington, Wierengo, Carter, and Davis Nays: None MOTION PASSES C. Spreading of the Special Assessment Roll for Park Street, Laketon to Southern. ENGINEERING SUMMARY OF REQUEST: To hold a public hearing on the spreading of the special assessment for Park Street from Laketon to Southern, and to adopt the resolution confirming the special assessment roll. FINANCIAL IMPACT: A total of $78,723.20 would be spread against the 33 parcels abutting the project. BUDGET ACTION REQUIRED: None at this time. STAFF RECOMMENDATION: To approve the special assessment roll, and adopt the resolution. The Public Hearing opened at 5:56 p.m. to hear and consider any comments from the public. No public comments were heard. Motion by Commissioner Carter, second by Commissioner Spataro to close the Public Hearing at 5:57 p.m. and approve the spreading of the special assessment roll for Park Street, Laketon to Southern. ROLL VOTE: Ayes: Shepherd, Spataro, Warmington, Wierengo, Carter, Davis, and Gawron Nays: None MOTION PASSES D. 2007 Budget Adoption. FINANCE SUMMARY OF REQUEST: This is the time set for a public hearing on the City's proposed budget for the year 2007. The proposed budget has been made available for public inspection at City Hall. Hackley Public Library and the City's website. After hearing public comments, the City Commission may take action to adopt the 2007 budget with whatever changes or adjustments it deems necessary. In any event, City Charter requires the budget be adopted no later than September 25, 2006. FINANCIAL IMPACT: The budget sets forth the priorities and overall financial plan for operations in the year 2007. As proposed, the budget includes no property tax increase. BUDGET ACTION REQUIRED: Adoption of the budget resolution provides the legal appropriation authority necessary for City departments to conduct operations in 2007. STAFF RECOMMENDATION: After receiving comments, close the public hearing and approve the proposed 2007 City of Muskegon Budget resolution. Also, approval of the 3rd Quarter 2006 Budget Reforecast as shown in the Budget Book is recommended at this time. The Public Hearing opened at 5:58 p.m. to hear and consider any comments from the public. No public comments were heard. Motion by Commissioner Carter, second by Commissioner Shepherd to close the Public Hearing at 5:59 p.m. and approve the proposed 2007 Budget and the 3rd Quarter 2006 Budget Reforecasl. ROLL VOTE: Ayes: Spataro, Warmington, Wierengo, Carter, Davis, Gawron, and Shepherd Nays: None MOTION PASSES 2006-76 NEW BUSINESS: A. Set Public Hearing for Amendment to Brownfield Plan - Redevelopment of the Century Club & Daniels and Redevelopment of Muskegon Savings Bank. PLANNING & ECONOMIC DEVELOPMENT SUMMARY OF REQUEST: To approve the resolution setting a public hearing for an amendment for the Brownfield Plan, and notifying taxing jurisdictions of the Brownfield Plan Amendment including the opportunity to express their views and recommendations regarding the proposed amendment at the public hearing. The amendment is for the inclusion of property owned by Western Avenue Properties, LLC and Port City Construction & Development Services, LLC, known as Western Avenue Properties, located at 350, 356, 360-366 W. Western, in the Brownfield Plan. FINANCIAL IMPACT: There is no direct financial impact in including the project in the Brownfield Plan, although the redevelopment of the site into residential condominiums will eventually add to the tax base in Muskegon. BUDGET ACTION REQUIRED: None STAFF RECOMMENDATION: To approve the resolution and authorize the Mayor and Clerk to sign the resolution. COMMITTEE RECOMMENDATION: The Brownfield Redevelopment Authority met on September 5, 2006 and approved the Brownfield Plan Amendment and recommends the approval of the Brownfield Plan Amendment to the Muskegon City Commission. In addition, the Brownfield Redevelopment Authority recommends that the Muskegon City Commission set a public hearing on the Plun Amendment for October 10, 2006. Motion by Commissioner Spataro, second by Commissioner Carter to set the Public Hearing for the Amendment to the Brownfield Plan for the redevelopment of the Century Club and Daniels and the Muskegon Savings Bank for October 10, 2006. ROLL VOTE: Ayes: Warmington, Wierengo, Carter, Davis, Gawron, Shepherd, and Spataro Nays: None MOTION PASSES B. Set Public Hearing for Amendment to Brownfield Plan - Vida Nova at Edison Landing. PLANNING & ECONOMIC DEVELOPMENT SUMMARY OF REQUEST: To approve the resolution setting a public hearing for an amendment for the Brownfield Plan, and notifying taxing jurisdictions of the Brownfield Plan Amendment including the opportunity to express their views and recommendations regarding the proposed amendment at the public hearing. The amendment is for the inclusion of property owned by DDLH, LLC, known as Vida Nova at Edison Landing, located at 160 & 190 Viridian Drive, in the Brownfield Plan. FINANCIAL IMPACT: There is no direct financial impact in including the project in the Brownfield Plan, although the redevelopment of the site into residential condominiums will eventually add to the tax base in Muskegon. BUDGET ACTION REQUIRED: None STAFF RECOMMENDATION: To approve the resolution and authorize the Mayor and Clerk to sign the resolution. COMMITTEE RECOMMENDATION: The Brownfield Redevelopment Authority met on September 5, 2006, and approved the Brownfield Plan Amendment and recommends the approval of the Brownfield Plan Amendment to the Muskegon City Commission. In addition, the Brownfield Redevelopment Authority recommends that the Muskegon City Commission set a public hearing on the Plan Amendment for October 10, 2006. Motion by Vice Mayor Gawron, second by Commissioner Spataro to approve the resolution setting the Public Hearing for the amendment to the Brownfield Plan for Vida Nova at Edison Landing for October 10, 2006. ROLL VOTE: Ayes: Wierengo, Carter, Davis, Gawron, Shepherd, Spataro, and Warmington Nays: None MOTION PASSES C. Extension of Contract to Market Seaway Industrial Park. PLANNING & ECONOMIC DEVELOPMENT SUMMARY OF REQUEST: In 2004, C & A Commercial Real Estate was selected as the company to market Seaway Industrial Park properties, as well as one property located on Getty Street. A nine-month real estate agreement was originally signed by the Mayor, with a six-month extension signed by the City Manager in December 2004. City Commission granted C & A Commercial Real Estate another six-month extension in August 2005 and again in February 2006. Staff feels that Commission should review the performance of C & A Commercial Real Estate in order to determine if there should be another extension of the agreement for a six-month time period. FINANCIAL IMPACT: The continued timely sale and development of these properties will bring more jobs to Muskegon in the near future, thus additional income tax being generated. BUDGET ACTION REQUIRED: None STAFF RECOMMENDATION: No staff recommendation. Motion by Commissioner Carter, second by Commissioner Shepherd to give an extension of the contract to market Seaway Industrial Park to C & A Commercial Real Estate for a six-month time period. ROLL VOTE: Ayes: Carter, Davis, Gawron, Shepherd, Spataro, Warmington, and Wierengo Nays: None MOTION PASSES D. Extension of Tool & Die Recovery Zone Status for Northern Machine Tool. PLANNING & ECONOMIC DEVELOPMENT SUMMARY OF REQUEST: To approve the Resolution extending the Tool & Die Recovery Zone for Northern Machine Tool. The City originally granted 15 years but other municipalities only granted 12 years for other companies in the Coalition, making Northern Machine Tool only eligible for 12 years. The law has since been amended, allowing differing lengths of time for different companies in the coalition. Northern Machine Tool is now requesting an extension to take advantage of the full 15 years. FINANCIAL IMPACT: The original estimates were that the City will forego approximately $7,300 per year for a total of approximately $109,545 in taxes for the 15-year period of the zone. BUDGET ACTION REQUIRED: None STAFF RECOMMENDATION: To approve the Resolution extending the Tool & Die Recovery Zone for Northern Machine Tool, and authorize the Mayor and Clerk to sign. Motion by Commissioner Spataro, second by Commissioner Wierengo to approve the resolution extending the Tool & Die Recovery Zone for Northern Machine Tool. ROLL VOTE: Ayes: Davis, Gawron, Shepherd, Spataro, Warmington, Wierengo, and Carter Nays: None MOTION PASSES E. Fire Station Construction Contract. CITY MANAGER SUMMARY OF REQUEST: To award a contract for the construction of a new central fire station a t th e corner of Terrace Street a nd Western Avenu e. A recomme nda tio n will be ma de a t the commission meeting a fter the bids can be analyzed . FI NANCIAL IMPACT: Approxima tely $3.5 million. BUDGET ACTION REQUIRED: None STAFF RECOMMENDATION: Staff w ill recommend the lowest responsible bidder at the m eeting on Tuesday. Motion by Commissioner Spataro, second by Vice Mayor Gawron to award the contract for the new fire station to Beckering Advisor Inc. with alternate #1. ROLL VOTE: Ayes: Gawron, Shepherd, Spataro, Warmington, Wierengo, Carter, and Davis Nays: None MOTION PASSES ANY OTHER BUSINESS: C ommissio n discussed various items. ADJOURNMENT: The City Commissio n M eeting adjourned at 6:50 p.m . Respectfully su bmitted, Lind a Potter, CMC Acting City Clerk AGENDA ITEM No. _ __ MUSKEGON CITY COMMISSION- September 12, 2006 TO: Honorable Mayor & City Commissioners FROM: Planning DepartmenratC--- DATE: August 22, 2006 SUBJECT: Approval of a Neighborhood Enterprise Zone Certificate for 286 Momoe SUMMARY OF REQUEST An application for a Neighborhood Enterprise Zone (NEZ) certificate has been received from Neighborhood Investment Corporation to rehabilitate a home in the Nelson neighborhood at 286 Momoe Avenue. The home is located in a Neighborhood Enterprise Zone. The application states that the estimated cost for rehabilitation will be $73,057. The rehab will consist of plumbing, electrical, drywall, carpentry, painting, floor coverings, siding repair, and HV AC for the home. The applicant has met local and state requirements for the issuance of the NEZ certificate. Approval or denial by the City Commission is required within 60 days of the application date and must be forwarded to the State Tax Commission. FINANCIAL IMPACT Taxation will be 50% of the State average for the next 12 years. BUDGET ACTION REQUIRED None. STAFF RECOMMENDATION Approve issuance of the NEZ certificate. COMMITTEE RECOMMENDATION None. 0:\Planning\COMMON\NEZ\286 monroe\Agenda Itcm.doc Resolution No. 2006-74(b) MUSKEGON CITY COMMISSION RESOLUTION TO APPROVE THE ISSUANCE OF A NEIGHBORHOOD ENTERPRISE ZONE CERTIFICATE WHEREAS, an application for a Neighborhood Enterprise Zone Certificate has been filed with the City Clerk by Neighborhood Investment Corporation to rehabilitate a home at 286 Monroe Avenue in the Nelson neighborhood, and; WHEREAS, the applicant has satisfied both the local and state eligibility criteria for a Neighborhood Enterprise Zone Certificate; WHEREAS, the Neighborhood Enterprise Zone Certificate will be good for twelve (12) years; NOW, THEREFORE, BE IT RESOLVED that the application for a Neighborhood Enterprise Zone Certificate for the rehabilitation of a home by Neighborhood Investment Corporation be approved. Adopted this, 121h day of September, 2006. Ayes: Carter, Davis, Gawron, Shepherd, Spataro, Warmington, and Wierenga Nays: None Absent: None Attest: Linda ~~ Potter Acting City Clerk 2006-74(b) 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 September 12, 2006. By: ~ ~ Linda Potter Acting City Clerk 286 Monroe AGENDA ITEM No. _ __ MUSKEGON CITY COMMISSION- September 12, 2006 TO: Honorable Mayor & City Connnissioners FROM: Planning Department (!i,L DATE: August 22, 2006 SUBJECT: Approval of a Neighborhood Enterprise Zone Certificate for 1203 41h Street SUMMARY OF REQUEST An application for a Neighborhood Enterprise Zone (NEZ) certificate has been received from Neighborhood Investment Corporation to rehabilitate a home in the Nelson neighborhood at 1203 4th Street. The home is located in a Neighborhood Enterprise Zone. The application states that the estimated cost for rehabilitation will be $35,220. The rehab will consist of windows, HVAC, floor coverings, paint, drywall, carpentry, bathroom, and a new kitchen to the home. The applicant has met local and state requirements for the issuance of the NEZ certificate. Approval or denial by the City Connnission is required within 60 days of the application date and must be forwarded to the State Tax Commission. FINANCIAL IMPACT Taxation will be 50% of the State average for the next 9 years. BUDGET ACTION REQUIRED None. STAFF RECOMMENDATION Approve issuance of the NEZ certificate. COMMITTEE RECOMMENDATION None. 0:\Pianning\COMMON\NEZ\1203 4th \Agenda Item.doc Resolution No. 2006-74 (c) MUSKEGON CITY COMMISSION RESOLUTION TO APPROVE THE ISSUANCE OF A NEIGHBORHOOD ENTERPRISE ZONE CERTIFICATE WHEREAS, an application for a Neighborhood Enterprise Zone Certificate has been filed with the City Clerk by Neighborhood Investment Corporation to rehabilitate a home at 1203 41h Street in the Nelson neighborhood, and; WHEREAS, the applicant has satisfied both the local and state eligibility criteria for a Neighborhood Enterprise Zone Certificate; WHEREAS, the Neighborhood Enterprise Zone Certificate will be good for nine (9) years; NOW, THEREFORE, BE IT RESOLVED that the application for a Neighborhood Enterprise Zone Certificate for the rehabilitation of a home by Neighborhood Investment Corporation be approved. Adopted this, 12'h day of September, 2006. Ayes: Carter, Davis, Gawron, Shepherd, Spataro, Warmington, and Wierenga Nays: None Absent: None Attest: ~ Linda Potter Acting City Clerk 2006-74(c) CERTIFICATION I hereby certify that the foregoing constitutes a true and complete copy of a resolution adopted by the City Commission of the City ofMuskegon, County of Muskegon, Michigan at a regular meeting held on September 12, 2006. By: ~ .dtlvz. Linda Potter Acting City Clerk 1203 41h Street Commission Meeting Date: September 12, 2006 Date: August 22, 2006 To: Honorable Mayor & City Commission From: Planning & Economic Development Department ~c_ RE: Sale of Buildable Vacant Lot at 209 E Walton. SUMMARY OF REQUEST: To approve the sale of a vacant buildable lot at 209 E. Walton (Parcel #24-205-191-0009- 00) to J2 Properties Development and Construction Company, LLC. The lot is 132 x 140ft. and is being offered to J2 Properties Development and Construction Company, LLC $4,125. This property will be split into two lots to construct two single-family homes facing Murphy Street. The proposed homes will have three bedrooms, two and a half bathrooms, a two stall attached garage, with one home consisting of 1,536 sq. ft. and on consisting of 1,400 sq. ft. FINANCIAL IMPACT: The sale of this lot for the construction of two single family homes will generate additional tax revenue for the City and will place the property back on the City's tax rolls thus relieving the City of continued maintenance costs. BUDGET ACTION REQUIRED: None STAFF RECOMMENDATION: To approve the attached resolution and to authorize both the Mayor and the Clerk to sign said resolution and deed. COMMITTEE RECOMMENDATION: The Land Reutilization Committee recommended approval of the sale at their regular meeting of August 22, 2006. ResolutionNo. 2006-74(d) MUSKEGON CITY COMMISSION RESOLUTION APPROVING THE SALE OF A BUILDABLE LOT AT 209 E. WALTON AVENUE IN ANGELL NEIGHBORHOOD FOR $4,125 as recommended by the Land Reutilization Committee at their regular meeting of August 22, 2006. WHEREAS, J2 Properties Development and Construction Company, LLC be allowed to purchase the parcel designated as parcel number 24-205-191-0009-00, located at 209 E Walton Avenue for $4,125; and WHEREAS, the price for parcel number 24-205-191-0009-00 is set by the City at $4,125, which is 75% of the True Cash Value (TCV) listed in the City Assessor's Office; and WHEREAS, the sale would generate additional tax revenue for the City and relieve the City of further maintenance costs; and WHEREAS, the sale is consistent with City policy regarding the disposition of buildable lots, in that, this property will be split for the construction of two single-family homes. NOW THEREFORE BE IT RESOLVED, that parcel number 24-205-191-0009-00, located at 209 E. Walton Avenue be sold to J2 Properties Development and Construction Company, LLC for $4,125. CITY OF MUSKEGON REVISED PLAT OF 1903 LOTS 9 AND 10 BLK 191 Adopted this 1 2t h day of September-, 2 0 0 6 Ayes: Carter , Dav i s, Gawron, Shepherd, Spataro, Warmington, and Wierenga Nays: None Absent None Attest: cr/dA Linda Potter Acting City Clerk 2006-74(d) CERTIFICATION I hereby certify that the foregoing constitutes a true and complete copy of a resolution adopted by the City Conunission ofthe City of Muskegon, County of Muskegon, Michigan at a regular meeting held on September 12, 2006. By: ~ J!tlz& Linda Potter Acting City Clerk J s 209 E. Walton Commission Meeting Date: September 12, 2006 Date: August23,2006 To: Honorable Mayor & City Commission From: Planning & Economic Development Department CB c_ RE: Policy change to "Policy for Sale of City-Owned Residential Property'' SUMMARY OF REQUEST: To approve the changes to the "Policy for Sale of City-Owned Residential Property" as follows: Page 2 item 7 - This is to increase the Home Design Credit from $2,500 to $3,500 and to place a time limit as to when it can be collected. Page 3 "Process for Purchasing Land" to change the name of the brochure to Purchase of City Owned Buildable Lots & Building Incentives. Page 4 "Title Evidence/Insurance" to correct a misspelled word from "spit" to "split". FINANCIAL IMPACT: None. 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 recommended approval of the policy change at their regular meeting of August 22, 2006 8/23/06 RESOLUTIONNO. 2006-74(e) MUSKEGON CITY COMMISSION RESOLUTION TO ADOPT AN AMENDMENT TO THE "POLICY FOR SALE OF CITY- OWNED RESIDENTIAL PROPERTY" WHEREAS, the City of Muskegon owns many lots and wishes to sell these lots, and; WHEREAS, the City of Muskegon would like to change the Home Design Credit from $2,500 to $3,500 and add that there is a one year time limit to collect once the home is constructed; WHEREAS, the City ofMuskegon would like to change the brochure title from Purchase of City Owned Residential Property to Purchase of City Owned Buildable Lots & Building Incentives; WHEREAS, the CityofMuskegon would like to make a spelling correction from spit to split; NOW, THEREFORE, BE IT RESOLVED that the City Commission hereby adopts the following policy amendment: (to be changed on page 2) In no case shall the total number of credits amount to more than $3,500 nor shall it exceed the purchase price of the land. This credit must be asked for within 1 (one) year of building completion by the purchaser/owner. All landscaping must be completed in order to qualify for the credit. (to be changed on page 3) .. ... "Purchase of City Owned Buildable Lots & Building Incentives. (to be changed on page 4) .. ... ..sold and properties split for minimal amounts .... . .. Adopted this l2 1h day of September, 2006. Ayes: Carter, Davis, Gawron, Shepherd, Spataro, Warmington, and Wierenga Nays: None Absent: None Attest _~.c.LI,A., itilld LJ. . l£1-. A:&'ltr.'~tk;nf(!ty(lcll\ A\~<'!>.\1ngDi>i!.~"1n {i\;;1\iin\IDil'i.lkm C<.>~nmur.i\\'D.r1llk>pm·:nt f!'l~~k~'/Tt>M>~m.>r \231il9ll-·H91 OJJ}l99.{:SW mli7>?9·6lltn fW)7!.l .>1i~nw.tk•n Mt ->Jtrnent. Public\.Vorks S'lre•ot>Dil:i.<;l-.;;n WJ~r/5.\."M~r {?31)79~22S~i P31)t,m.f£02 (23;1}733<2591 !)30799..(,003 tl~J)~"fle-2156 fB1):199·r><'!0.1 Muskegon Area Storm Water Committee Regulatory Compliance and SWPPiimpiementatlon Cost Allocation 2007.2009 2007-2009 ANNUAL PHASE II COMMUNITIES ~ COST Dalton Township $8,939 $2,980 Egelston Township $13,616 $4,539 Fruitport Charter Township $12,305 $4,102 Laketon Township $10,598 $3,533 City of Muskegon* $31,571 $10,524 Muskegon Charter Towtishlp $19,322 $6,441 Norton Shores $22,700 $7,567 Roosevelt Park $6,840 $2,280 Sullivan Township $5,778 $1,926 Muskegon Heights $11,263 $3,754 Muskegon County Administration $44,739 $14,913 and Drain Commissioner Muskegon County Road Commission $44,739 $14,913 R:\01513i\Pt0ject Managemenl\2007·2009 Cost Allocatlon.XI5 frc&h 612912006 Commission Meeting Date: September 12,2006 Date: September 5, 2006 To: Honorable Mayor & City Commission From: Community and Neighborhood Services Department RE: Approval of Contractor for Rehabilitation of House at 451 East Isabella. SUMMARY OF REQUEST: To approve the contract with Lewis E. Johnson Construction, of 16076 Bonita Court, Grand Haven, Michigan, for the completion of the rehabilitation to be located at 451 E. Isabella, for the cost of $58,900 (Fifty-eight thousand nine hundred dollars). After the total rehabilitation is completed the home will be sold to a qualified first-time homebuyer, continuing the City's aggressive neighborhood revitalization efforts in the Angel neighborhood area under the Operation: Like A "Good Neighbor" The City received five (4) additional bids: • Obenauf DePender Construction LLC, of 4471 Thompkins Trail Muskegon Michigan, for $ 68,578 (Sixty-eight thousand five hundred seventy-eight dollars) • J2 Development & Construction, of 109 West Laketon Avenue Muskegon Michigan, for$ 75,010 (Seventy-five thousand ten dollars) • Higdon Builders Inc, of 11180 East D Ave Richland Michigan, for $78,350 (Seventy-three thousand three hundred fifty dollars) • Beattie Bros. Construction LLC, of 2786 Holton-Whitehall Road Twin Lake Michigan, for $ 104,995 (One hundred four thousand nine hundred ninety-five dollars) FINANCIAL IMPACT: The funding for the project will be taken from the City's 2006-2007 HOME funds. BUDGET ACTION REQUIRED: None STAFF RECOMMENDATION: To approve for the Community and Neighborhood Services office to develop a contract with Lewis E. Johnson Construction of Grand Haven Michigan and direct the Mayor and Clerk to sign the contract. COMMITTEE RECOMMENDATION: None needed. 24-205-078-0002-00 451 E ISABELLA AVE STREET VIEW 07/03 Commission Meeting Date: September 12,2006 Date: September 5, 2006 To: Honorable Mayor & City Commission From: Community and Neighborhood Services Department RE: Lead Based Paint abatement at 451 East Isabella SUMMARY OF REQUEST: To approve the contract with Abatement Specialties Group Inc, of 11180 East D Ave Richland Michigan, for the lead base paint abatement of the city-owned home at 451 E. Isabella for the cost of $32,650. {Thirty-two thousand six hundred fifty dollars) The City received one additional bid: • Statewide Abatement, of 1720 Creston North Muskegon Michigan, for $33,190 {Thirty-three thousand one hundred ninety dollars) After the lead base paint abatement is complete the structure will be totally rehabilitated and then sold to a qualified low to moderate-income home buyer. FINANCIAL IMPACT: Cost of the abatement will be allocated from the 2006-2007 HOME budget. BUDGET ACTION REQUIRED: None STAFF RECOMMENDATION: To approve Community and Neighborhood Services office to develop a contract with Abatement Specialties Group Inc of Richland Michigan and direct Mayor and Clerk to sign the contract. COMMITTEE RECOMMENDATION: None Commission Meeting Date: September 12,2006 Date: September 5, 2006 To: Honorable Mayor & City Commission From: Community and Neighborhood Services Department RE: Approval of Contractor for Rehabilitation of House at 214 Myrtle. W· f:, · SUMMARY OF REQUEST: To approve the contract with Success Enterprise, of 2722 East Broadway Muskegon Michigan, for the completion of the rehabilitation to be located at 214 Myrtle, for the cost of $65,505 (Sixty-five thousand five hundred and five dollars). This property is located near the City's current lnfill development Project "Walton Street Renaissance". After the total rehabilitation is completed the home will be sold to a qualified first-time homebuyer, continuing the City's aggressive neighborhood revitalization efforts in the Angel neighborhood area under the Operation: "Market View Alley" The City received five (5) additional bids: • Obenauf DePender Construction LLC, of 4471 Thompkins Trail Muskegon Michigan, for $ 77,060 (Seventy-seven thousand sixty dollars) • J2 Development & Construction, of 109 West Laketon Avenue Muskegon Michigan, for$ 94,120 (Ninety-four thousand one hundred twenty dollars) • Holden Construction, of 601 Amity Muskegon Michigan, for $95,045 (Ninety-five thousand forty five dollars) 24-205-206-0014-10 214 MYRTLE AVE STREET VIEW Commission Meeting Date: September 12,2006 Date: September 5, 2006 To: Honorable Mayor & City Commission From: Community and Neighborhood Services Department RE: Lead Based Paint abatement at 214 Myrtle [;j ·b • SUMMARY OF REQUEST: To approve the contract with Success Enterprise, of 2722 East Broadway Muskegon, Michigan for the lead base paint abatement of the city-owned home at 214 Myrtle for the cost of $40,950. (Forty thousand nine hundred fifty dollars) The City received one additional bid: • Abatement Specialties, of 11180 East Dave Richland, Michigan, for $45,700 (Forty-five thousand Seven hundred dollars) After the lead base paint abatement is complete the structure will be totally rehabilitated and then sold to a qualified low to moderate-income home buyer. FINANCIAL IMPACT: Cost of the abatement will be allocated from the 2006-2007 HOME budget. BUDGET ACTION REQUIRED: None STAFF RECOMMENDATION: To approve Community and Neighborhood Services office to develop a contract with Success Enterprises of Muskegon, and direct Mayor and Clerk to sign the contract. COMMITTEE RECOMMENDATION: None 24-205-206-0014-10 214 MYRTLE AVE STREET VIEW Date: September 12, 2006 To: Honorable Mayor and City Commissioners from: Finance Director RE: Defined Contribution Retirement Plan for New Hires (Police Patrol) SUMMARY OF REQUEST: Through negotiation/arbitration with the Police Patrol Union, new employees hired after 7/28/06 will be covered under a defined contribution pension program. In addition, current employees may also join the DC plan on an elective basis during a window period. The new DC plan calls for a city contribution of 10% and an employee contribution of 6% of wages. Documents for this plan are the same as for the previous plan set-ups for Clerical, Fire, Non- union and 517M employees. Staff is requesting authorization to have the Mayor, Clerk and other required city officials sign the necessary documents to implement the new DC plan for police patrol. FINANCIAL IMPACT: Moving to a defined contribution plan will help stabilize and better define the city's annual pension costs. BUDGET ACTION REQUIRED: None at this time. STAFF RECOMMENDATION: Approval COMMITIEE RECOMMENDATION: None MERS REVISED UNIFORM DEFINED CONTRIBUTION PROGRAM RESOLUTION WHEREAS, the MERS Plan Document of 1996, effective October I, 1996, authorized a defined contribution option (Section 19A, Benefit Program DC) as a new benefit program that a participating municipality or court may adopt for MERS members to be administered under the discretion of the Municipal Employees' Retirement Board as trustee and fiduciary, directly by (or through a combination of) MERS or MERS' duly-appointed third-party administrator. WHEREAS, as a new provision, Section 19A, along with the remainder of the Plan, received from the Internal Revenue Service a Letter of Favorable Determination (dated July 8, I 997) that the Plan is a qualified Plan under Section 40 I of the lntemal Revenue Code, and an exempt trust under Section 501. WHEREAS, on May 5, 1997, the Municipal Employees' Retirement Board entered into an Alliance Agreement with ICMA-RC (the International City Management Association Retirement Corporation) as third-party administrator for the defined contribution plans under Plan Document Section 19A. WHEREAS, on November 14, 2001, following MERS' due diligence search and review, the Retirement Board and ICMA-RC entered into the Amended and Restated Alliance Agreement (the "200 I Alliance Agreement") (Attachment I) for third-party administrator services. Participating employees of MERS' municipalities and courts adopting Benefit Program DC receive enhanced services and favorable decreased participant fees under the 2001 Agreement. Additionally, such services and fees shall also be available where the participating municipality or court adopting Benefit Program DC has in effect (or subsequently establishes) an IRC section 457 deferred compensation plan or section 40I(k) plan. Approval of this Revised Uniform Resolution by each MERS participating municipality and court which adopts or has adopted MERS Benefit Program DC is necessary and required in order that the benefits available under the 200 I Alliance Agreement may be extended to covered participants. WHEREAS, this Revised Uniform Resolution has been approved by the Board under the authority of 1996 PA 220, Section 36(2)(a), MCL 38.1536(2)(a), declaring that the Retirement Board "shall determine ... and establish" all provisions of the retirement system. Under this authority, the Board authorized Section I 9 A, the Defined Contribution Benefit Program, which shall not be implemented unless in strict compliance with the terms and conditions of this Revised Resolution. • It is expressly agreed and understood as an integral and nonseverable part of this Revised Resolution that Section 43B of the Plan Document shall not apply to this Revised Uniform Resolution and its administration or interpretation. • In the event any alteration of the terms or conditions stated in this Revised Uniform Resolution is made or occurs, under Section 43B or other plan provision or other law, it is expressly recognized that MERS and the Retirement Board, as sole trustee and fiduciary of the MERS Plan and its trust reserves, and whose authority is nondelegable, shall have no obligation or duty: to administer (or to have administered) the Defined Contribution Benefit MERS DC Adoption Resolution ll/14/01 Page 1 of 6 pages Program; to authorize the transfer of any defined benefit assets to the Defined Contribution Benefit Program; or to continue administration by the third-party administrator or by MERS directly. WHEREAS, concurrent with this Revised Resolution, and as a continuing obligation, this governing body has completed and approved, and submitted to MERS documents necessary for adoption and implementation of the MERS Benefit Program DC. This obligation applies to any documents deemed necessary to the operation of the defined contribution program by MERS' third- party administrator. NOW, THEREFORE, BE IT RESOLVED that the governing body adopts (or readopts) MERS Benefit Program Defined Contribution as provided below. I. NEW EMPLOYEES Effective July 28 , 20~, (to be known as the ADOPTION DATE), the _ ___cC:..:i:cct:..,y.__o_f_M_u_s-;;;k-::e:O:g:-::o-:-n_.,-;--;:---,--:--------- hereby adopts Benefit Program (MERS municipality/court) DC (as set forth in the MERS Uniform Defined Contribution Program Adoption Agreement) for Members of Police Patrol Bargaining Unit .. (specifY employees/division #s) first hired on and after the Adoption Date, and optional participation for any employee or officer of this municipality otherwise eligible to participate in MERS under Sections 2B(3)(a) and 3(3) of the Plan Document who has previously elected to not participate in MERS. ONLY THOSE EMPLOYEES ELIGIBLE FOR MERS MEMBERSIDP (SECTIONS 2B(3) AND 3 OF THE PLAN DOCUMENT) SHALL BE ELIGIBLE TO PARTICIPATE. (A) CONTRIBUTIONS shall be as allowed imd specified in the Adoption Agreement (Attachment 2, completed and approved and a certified copy submitted to MERS concurrent with and incorporated by reference in this Resolution) subject to the provisions of MERS Plan Document: Section 19A(2) that employer contributions shall be in any percentage of compensation from I% to the maximum allowed by the Internal Revenue Code, in increments of 0.1 %; and Section 19A(3), under which an employee member may voluntarily contribute additional amounts to the extent allowed by the Code. (B) EARNINGS under the Adoption Agreement shall include items of "Compensation" under Section 2A(6) of the MERS Plan Document, being the Medicare taxable wages reported on the member's W-2 statement. (C) VESTING shall be as allowed and specified under: (I) Plan Section 19A(l2), whose text is set out 111 Section II(G) of this Revised Resolution: and (2) the Adoption Agreement. STOP If covering new employees only, skip II and go to Ill on page 5. STOP MERS DC Adoption Resolution I i/14!01 Page 2 of 6 pages II. OPTIONAL PROVISION FOR CURRENT MERS MEMBERS WHERE DC PROGRAM FOR NEW EMPLOYEES ESTABLISHED (PLAN SECTION !9A(8)-(l !)) THIS OPTIONAL PROVISION SHALL ONLY BE SELECTED WHERE THE TOTAL FUNDED PERCENT OF AGGREGATE ACCRUED LIABILITIES AND VALUATION ASSETS OF ALL RESERVES SPECIFIED IN TABLE 11 (OR SUCCESSOR TABLE) OF THE MOST RECENT MERS ANNUAL ACTUARIAL VALUATION REPORT IS AT LEAST SIXTY PERCENT (60%). IT IS ADDITIONALLY RESOLVED, as provided in each of the following paragraphs: (A) Effective on the Adoption Date, pursuant to Plan Section !9A(8)(b) all current MERS defined benefit members who are members of the same employee classification described in Section I above on the Adoption Date shall: THE GOVERNING BODY SHALL SELECT ONLY ONE OF THE FOLLOWING where vested under this municipality's MERS vesting program (I 0, 8, or 6 years) where the employee has at least the following number of years of credited service for this municipality on Adoption Date: (insert whole number less than vesting program) without regard to vesting be offered the opportunity to irrevocably elect coverage under Benefit Program DC, under the detailed procedures specified in Plan Section 19A(9)-(11 ). (B) For each eligible employee, an opportunity to irrevocably elect to participate in Benefit Program DC shall be offered. Section 19A(9) specifies an employee's written election to participate shall be filed with MERS: (a) not earlier than the last day of the third month after this Resolution is adopted and received by MERS; and (b) not later than the first day of the first calendar month that is at least six months after MERS receives this Resolution. This means each eligible employee will have about 90 days to make the decision. After MERS receives this Resolution, this governing body's authorized official and eligible employees will be advised by MERS of the election window timelines and other information to consider in making the irrevocable decision whether to participate in Benefit Program DC. (C) Participation for those electing coverage shall be effective the first day of the first calendar month at least seven (7) months after MERS' receipt of the Resolution, here designated as being the month of , 20__, (insert month and year) which shall be known as the "CONVERSION DATE." 0 MERS DC Adoption Resolution 11/14/01 Page 3 of 6 pages (D) The opportunity for current employees on the Adoption Date to participate in the DC Program shall: THE GOVERNING BODY SHALL SELECT ONLY ONE OF THE FOLLOWING apply to all employees who separate from or terminate employment with this municipality after the Adoption Date and before the Conversion Date, so long as the employee does not receive a retirement allowance from MERS based on service for this municipality. _ _ not apply to any employee who separates from or terminates employment with this municipality after the Adoption Date. (E) CONTRIBUTIONS shall be as provided in Section I (A) above. (F) EARNINGS shall be as provided in Section I (B) above. (G) VESTING shall be as provided in Section I (C) above, and participants shall be credited, on participant written request and MERS' verification of such service, with all eligible service, if any, specified in Plan Section 19A(12) which states: Where a member has previously acquired in the employ of any participating municipality or participating court: (a) not less than 1 year of defined benefit service in force with a participating municipality or participating court; (b) eligible credited service where the participating municipality or participating court has adopted the Reciprocal Retirement Act, 1961 PA 88; (c) at least 12 months in which employer contributions by a participating municipality or participating court have been made on behalf of the member under Benefit Program DC, such service shall on the member's written request to the employer and MERS' verification of such service be applied toward satisfYing the vesting schedule for employer contributions. This requirement shall apply to all adoptions of Benefit Program DC on and after October 1, 2000; where previously adopted, the participating municipality or participating court may adopt this subsection (12) with full effectiveness as of the original defined contribution adoption date for the employer division involved. (H) For each employee irrevocably electing to participate in Benefit Program DC, then under Plan Section l9A(ll), MERS shall transfer to the member's credit (as adjusted through MERS' records to the Conversion Date) the greater of: (!)The member's accumulated contributions; or (2) The actuarial present value (as determined in Paragraph (I) below). The transfer shall be made approximately 30 calendar days after the Conversion Date, and the transfer amount shall include pro-rated regular interest at the regular Board -established MERS DC Adoption Resolution 11!14/01 Page 4 of 6 pages rate of (currently four percent (4%)) measured from the Conversion Date to the actual transfer date. (I) Per Plan Section l9A(ll)(b), the Retirement Board has established the assumptions for calculation of the actuarial present value of a member's accrued benefit that may be transferred. The assumptions are: (I) The interest rate in effect as of the Adoption Date, to determine actuarial present value, shall be the Board-established investment earnings rate assumption (currently eight percent (8.00%)). (2) The funded level for the member's specific MERS division (total funded percentage of the present value of accrued benefits and valuation assets of all reserves) as of the Adoption Date from the most recent MERS annual actuarial valuation report data provided by MERS' actuary. In the APV calculation, the funded level used shall be: THE GOVERNING BODY SHALL SELECT ONLY ONE OF THE FOLLOWING _ _ Funded level for the division (not to exceed I 00% funded level). If greater than the division's funded level but not more than I 00% funded level, then MERS is directed to compute the funded percentage for the transfer calculation on % funded basis (insert number not less than funded level percentage and not more than 100%). Where less than 100% funded level exists, this governing body recognizes that such direction shall increase its pension funding liability. MERS shall not implement such direction unless the governing body forwards to MERS sufficient cash up to the funded level selected for all members prior to the Conversion Date; if sufficient cash is not forwarded, then the governing body expressly covenants with MERS and directs, as a condition of this selection, to MERS billing and the governing body remitting to MERS all contributions necessary to fund the unfunded liability occasioned by the aggregate transfer of the difference between the actual funded level for the division and funded level directed above over a period of four (4) years. III. IMPLEMENTATION DIRECTIONS FORMERS BENEFIT PROGRAM DC THIRD-PARTY ADMINISTRATOR. (A) The governing body of this MERS participating municipality or court as Employer desires that MERS Benefit Program DC be administered by MERS' duly-designated third-party administrator and that some or all of the funds held under such plan be invested in the TPA's retirement trust established for the collective investment of funds held under the Employer's retirement, defined contribution, and deferred compensation plans. (B) The Employer hereby establishes MERS Benefit Program Defined Contribution as authorized by Section 19A of the Municipal Employees' Retirement System of Michigan Plan Document, in the form of the third-party administrator's IRS-qualified retirement trust. MERS DC Adoption Resolution II/l4/0l Page 5 of 6 pages (C) The Declaration of Trust (Attaclunent 2, Appendix A, approved and adopted concurrent with and incorporated by reference in this Resolution) is operative and applies with respect to any MERS Benefit Program DC plan or deferred compensation plan previously or subsequently established by the Employer, if the assets are to be invested in the third-party administrator's Fetirement trust. (D) Finance Director (use title of official, not name) shall be the Employer's MERS Benefit Program Defined Contribution Plan coordinator; shall receive necessary reports, notices, etc., from the third-party administrator or its retirement trust; shall cast, on behalf of the Employer, any required votes under the retirement trust; may delegate any administrative duties relating to the defined contribution plan to appropriate departments. (E) The Municipal Employees' Retirement Board retains full and unrestricted authority over the administration of MERS Benefit Program Defined Contribution, including but not limited to the appointment and termination of the third-party administrator, or MERS' self- administration of the defined contribution program in whole or in part. IV. EFFECTIVENESS OF THIS REVISED RESOLUTION BE IT FINALLY RESOLVED: This Resolution shall have no legal effect under the MERS Plan Document until a certified copy of this adopting Resolution shall be filed with MERS, and MERS determines that all necessary requirements under Plan Document Section 19A, the 200 I Alliance Agreement, the Adoption Agreement, and this Resolution have been met. All dates for implementation of Benefit Program DC under Section 19A shall be determined by MERS from the date of filing with MERS of this Revised Resolution in proper form and content. Upon MERS determination that all necessary documents have been submitted to MERS, MERS shall record its formal approval upon this Resolution, and return a copy to the Employer's defined contribution plan coordinator identified in Section III (D) above. In the event an amendatory Resolution or other action by the municipality is required, such Resolution or action shall be deemed effective as of the date of the initial Resolution or action where concurred in by this governing body and MERS (and the third-party administrator if necessary). Section 54 of the Plan Document shall apply to this Resolution and all acts performed under its authority. The terms and conditions of this Revised Resolution supersede and stand in place of any prior resolution, and its terms are controlling. t the official meeting held on September 12 , 20Q.L. Please send MERS fully executed copy of: this Revise eso ution; Part II (Administrative Services Agreement) of the 2001 Alliance Agreement; Adoption Agreement with Declaration of Trust and certified minutes stating governing body approval, and/or union contract language. Received and Approved by the Municipal Employees' Retirement System of Michigan Dated: ---------------- 2006 (Authorized MERS signatory) Att. MERS DC Adoption Resolution 11/14/01 Page 6 of 6 pages •, 2006-74(1) MERS UNIFORM DEFINED CONTRIBUTION PROGRAM ADOPTION AGREEMENT The Employer, a participating municipality or participating court within the State of Michigan that has adopted MERS coverage, hereby establishes a Section 19A, Benefit Program DC to beknownas Police Patrol DC Retirement Plan (the "MERS Plan") in the form of the ICMA Retirement Corpomtion Govermnental Money Purchase Plan and Trust and attached Declamtion of Trust of VantageTrust, as amended and as authorized by Section 19A of the Municipal Employees' Retirement System of Michigan Plan Document L EMPLOYER: City of Muskegon (Name of municipality or court) IL The Effective Date of the Benefit Program DC shall be the first day of the Plan Year during which the Employer adopts the Plan, unless an alternate Effective Date is hereby specified: July 28, 2006 IIL Normal Retirement Age shall be age 51 (nottoexceedage65). Effective 12/31/06 Age 53 prior to that date IV. ELIGIBILITY REQUIREMENTS 1. The following group or groups of Employees are eligible to participate in the Program: Members of Police Patrol Bargaining Unit (SpecifY employee classification and division numbers) 2. Only those Employees eligible for MERS Membership (Section 3 of the MERS Plan) shall be eligible to participate. (A copy of ALL employee enrollment forms must be submitted to MERS as well as ICMA.) V. CONTRIBUTION PROVISIONS 1. The Employer shall contribute on behalf of each Participant 1 0 % of Earnings or$ N /A for the Plan Year (subject to the limitations of sections 415(c) and (e) of the Internal Revenue Code). Each Participant is required to contribute 6 % of Earnings for the Plan Year as a condition of participation in the Plan. (Write "0" if no contribution is required.) MERS Benefit Program DC Adoption Agreement I 2/27/04 Attachment 2 Years of Specified Service Vesting Completed Requirements Zero 0 % One zo % Two 40 % Three 60 % Four !lQ % Five 100 % Six % Seven or more 100 % ·VIII. Loans are pennitted under the Program: 0 Yes [[) No IX. The Plan will accept an eligible rollover distribution from an eligible retirement plan described in Section 401(a)(including "40I(k)") or 403(a) of the Code, an annuity contract described in Section 403(b) of the Code, an eligible deferred compensation plan described in Section 457(b) of the Code maintained by a state, political subdivision of a state, or any agency or instrumentality of a state or political subdivision of a state, or an individual retirement account or annuity described in Section 408(a) or 408(b) of the Code, including after-tax employee contributions, as applicable. Yes D No X. The Employer hereby agrees to the provisiOns of the MERS Uniform Defined Contribution Program and agrees that in the event of any conflict between Section 19A and the MERS Plan, the provisions of Section 19A shall control. XI. The Employer hereby appoints the ICMA Retirement Corporation as the Plan Administrator pursuant to the terms and conditions of the Plan. The Employer hereby agrees to the provisions of the Plan. XII. The Employer hereby acknowledges it understands that failure to properly fill out this Adoption Agreement may result in the ineligibility of the Plan in the Benefit Program DC. MERS Benefit Program DC Adoplion Agreement 3 2127104 In Wit~ss Whereof, the Employer hereby causes this Agreement to be executed on this 12 t day of September 20 0 6 . Employer: By: Title: Attest: Linda Potter MERS Benefil Program DC Adoplion Agreemenl 4 2127/04 .. Appendix A DECLARATION OF TRUST This Declaration of Trust (the "Group Trust Agreement") is made as of the 19th day of May 2001, by Vantage Trust Company, which declares itself to be the sole Trustee of the trust hereby created. WHEREAS, the ICMA Retirement Trust was created as a vehicle for the commingling of the assets of governmental plans and governmental units described in Section 818(a)(6) of the Internal Revenue Code of 1986, as amended, pursuant to a Declaration of Trust dated October 4, 1982, as subsequently amended, a copy of which is attached hereto and incorporated by reference as set out below (the "ICMA Declaration"); and WHEREAS, the trust created hereunder (the "Group Trust") is intended to meet the requirements of Revenue Ruling 81-100, 1981-1 C.B. 326, and is established as a common trust fund within the meaning of Section 391: I of Title 35 of the New Hampshire Revised Statutes Annotated, to accept and hold for investment purposes the assets of the Deferred Compensation and Qualified Plans held by and through the ICMA Retirement Trust. NOW, THEREFORE, the Group Trust is created by the execution of this Declaration of Trust by the Trustee and is established with respect to each Deferred Compensation and Qualified Plan by the transfer to the Trustee of such Plan's assets in the ICMA Retirement Trust, by the Trustees thereof, in accord with the following provisions: l. Incorporation of ICMA Declaration by Reference; ICMA By-Laws. Except as otherwise provided in this Group Trust Agreement, and to the extent not inconsistent herewith, all provisions of the ICMA Declaration are incorporated herein by reference and made a part hereof, to be read by substituting the Group Trust for the Retirement Trust and the Trustee for the Board of Trustees referenced therein. In this respect, unless the context clearly indicates otherwise, all capitalized terms used herein and defined in the ICMA Declaration have the meanings assigned to them in the ICMA Declaration. In addition, the By-Laws of the ICMA Retirement Trust, as the same may be amended from time-to-time, are adopted as the By-Laws of the Group Trust to the extent not inconsistent with the terms of this Group Trust Agreement. Notwithstanding the foregoing, the terms of the ICMA Declaration and By-Laws are further modified with respect to the Group Trust created hereunder, as follows: (a) any reporting, distribution, or other obligation of the Group Trust vis-a-vis any Deferred Compensation Plan, Qualified Plan, Public Employer, Public Employer Trustee, or Employer Trust shaH be deemed satisfied to the extent that such MERS Benefit Program DC Adoption Agreement 5 2127/04 ,. obligation is undertaken by the ICMA Retirement Trust (in which case the obligation of the Group Trust shall run to the ICMA Retirement Trust); and (b) all provisions dealing with the number, qualification, election, term and nomination of Trustees shall not apply, and all other provisions relating to trustees (including, but not limited to, resignation and removal) shall be interpreted in a manner consistent with the appointment of a single corporate trustee. 2. Compliance with Revenue Procedure 81-100. The requirements of Revenue Procedure 81-100 are applicable to the Group Trust as follows: (a) Pursuant to the terms of this Group Trust Agreement and Article X of the By- Laws, investment in the Group Trust is limited to assets of Deferred Compensation and Qualified Plans, investing through the ICMA Retirement Trust. (b) Pursuant to the By-Laws, the Group Trust is adopted as a part of each Qualified Plan that invests herein through the I CMA Retirement Trust. (c) In accord with the By-Laws, that part of the Group Trust's corpus or income which equitably belongs to any Deferred Compensation and Qualified Plan may not be used for or diverted to any purposes other than for the exclusive benefit of the Plan's employees or their beneficiaries who are entitled to benefits under such Plan. (d) In accord with the By-Laws, no Deferred Compensation Plan or Qualified Plan may assign any or part of its equity or interest in the Group Trust, and any purported assignment of such equity or interest shall be void. 3. Governing Law. Except as otherwise required by federal, state or local law, this Declaration of Trust (including the ICMA Declaration to the extent incorporated herein) and the Group Trust created hereunder shall be construed and determined in accordance with applicable laws of the State of New Hampshire. 4. Judicial Proceedings. The Trustee may at any time initiate an action or proceeding in the appropriate state or federal courts within or outside the state ofNew Hampshire for the settlement of its accounts or for the determination of any question of construction which may arise or for instructions. MERS Benefit Program DC Adoption Agreement 6 2127/04 • IN WITNESS WHEREOF, the Trustee has executed this Declaration of Trust as of the day and year first above written. VANTAGETRUST COMPANY By: Name: Paul F. Gallagher Title: Assistant Secretary MERS Benefit Program DC Adoption Agreement 7 2127104 Commission Meeting Date: September 12, 2006 Date: August 29, 2006 To: Honorable Mayor and City Commissioners From: Planning & Economic Development cJOC- RE: Public Hearing - Request to issue an Obsolete Property Certificate - 1133 Third Street SUMMARY OF REQUEST: Pursuant to Public Act 146 of the Michigan Public Acts of 2000, DAT Holdings LLC, 16012 Baird Drive, Spring Lake Ml, has requested the issuance of an Obsolete Property Certificate for the property located at 1133 Third Street, Muskegon, MI. Total capital investment for this project is $175,000. The project consists of converting the building into a restaurant. Because of the amount of investment, the applicant is eligible for a 9 year certificate. FINANCIAL IMPACT: If an Obsolete Property Certificate is issued, the property taxes would be frozen for the duration of the certificate. BUDGET ACTION REQUIRED: None STAFF RECOMMENDATION: Staff recommends approval. COMMITTEE RECOMMENDATION: None r 'I f MIChigan Department or Treasury 3674 (Rev. 6·05) Application for Obsolete Property Rehabilitation Exemption Certificate This form is issued as provided by P.A. 146 of 2000. This application should be filed after the district is established. This project will not receive tax benefits until approved by the State Tax Commission. Applications received after October 31 may not be acted upon in the current year. This application is subject to audit by the Stale Tax Commission. INSTRUCTIONS: File the original and two copies of this form and the required attachments with the clerk of the local government unit. (The State Tax Commission requires two copies of the Application and attachments. The original is retained by the clerk.) Please see State Tax Commission Bulletin 9 of 2000 for more information about the Obsolete Property Rehabilitation Exemption. The following must be provided to the local government unit as attachments to this application: (a) General description of the obsolete facility (year built, original use, most recent use, number of stories, square footage}; (b }General description of the proposed use of the rehabilitated facility, (c) Description of the general nature and extent of the rehabilitation to be undertaken, (d) A descriptive list of the fixed building equipment that will be a part of the rehabilitated facility, (e) A time schedule for undertaking and completing the rehabilitation of the facility, (f) A statement of the economic advantages expected from the exemption. City, School District where facility is located (1nclude school code) / OlD Number of years exemption requested \''l yvs"-------J~L<..<'L-fil"t'~--{-'-1'~·---':c"A~r--n B Increase Commercial activity 0, Retain employment J..23:_Revitalize urban areas 0 Create employment 1-l Prevent a toss of employment ~J r-J.- Increase number of residents in the ~community in which the facility is situated Indicate the number of jobs to be retained or created as a result of rehabilitating the facility, including expected construction employment! tJ} rn Each year, the State Treasurer may approve 25 additional reductions of half the school operatmg and stale ed.Jcat1on taxes for a period not to exceed six years. Check the following bOX if you WISh \0 be considered for thiS BXCIUSIOn. APPLICANT'S CERTIFICATION The undersigned, authorized officer of the company making this application certifies that, to the best of his/her knowledge, no information contained herein or in the attachments hereto is false in any way and that all of the information is truly descriptive of the property for which this application is being submitted. Further, the undersigned is aware that, if any statement or information provided is untrue, the exemption provided by P.A. 146 of 2000 may be in jeopardy. The applicant certifies that this application relates to a rehabilitation program that, when completed, constitutes a rehabilitated facility, as defined by P.A. 146 of 2000 and that the rehabilitation of the facility would not be undertaken without the applicant's receipt of the exemption certificate. 1t is further certified that the undersigned is familiar with the provisions of PA 146 of 2000, of the Michigan Compiled Laws; and to the best of hislher knowledge and belief. (s)he has complied or will be able to comply with all of the requirements thereof which are prerequisite to the approval of the application by the local unit of government and the issuance of an Obsolete Property Rehabilitation Exemption Certificate by the Stale Tax Commission. Narn '·• LOCAL GOVERNMENT UNIT CLERK CER IFICATION Clerk must also complete Parts 1, 2 and 4 on Page 2. Part 3 to be completed by the assessor_ ·~~~---.~-0-,-e-a_p_pl-ic-at-io_o_c_oc_e_i,-e-d-~· Signature FOR STATE TAX COMMIS..,S,IO,.,N"-U,"S,..E,___ _ _ _ _ _ _,_ _ _ _, t""''o" Numbe' ]Date Rece,ed ----- Application for Obsolete Property Rehabilitation Exemption Certificate 1133 3rd St. a) Prope1iy 1133 3'd St. built in 187011880? 2 stories with basement approximately 4000 sq ft each Original use-- unknown Use today-- apartments on the upper floor, Y. commercial rental main floor and % unused for the past 12 years. b) Proposed use ---Bakery/restaurant 100% c) Return the facade to original look, new heating and cooling, new electrical, new water service, insulation, new windows, floors, interior walls, ceilings and doors. d) New boiler and piping for heating and cooling. New electrical service for main floor. New doors, windows and insulation. New flooring, drywall, ceilings and light fixtures. New ovens , cook tops, refrigeration units, freezers, exhaust hoods and vents. Handicap bathrooms. New signs. e) Timeline to completion ---12 to 18 months f) The new business will add employment to the neighborhood, improve the aesthetics and increase activity to the 3'd St. area, hopefully stimulating more business to come back to the downtown area. CITY OF MUSKEGON MUSKEGON COUNTY, MICHIGAN RESOLUT!ONNO. 2006-75(a) A resolution approving the application for an Obsolete Property Rehabilitation Exemption Certificate by DA T Holdings LLC. The City Commission of the City of Muskegon hereby RESOL YES: Recitals A. The City Commission has received an Application for an Obsolete Prope11y Rehabilitation Exemption Ce11ificate from DA T Holdings LLC, to apply to the improvements located in an Obsolete Property Rehabilitation District established by previous resolution. B. The City of Muskegon is a qualified local governmental unit as dete1mined by STC Bulletin No.9 of2000, dated July 12, 2000. C. An Obsolete Property Rehabilitation District in which the application property is located was established after hearing on October 9, 2002, being the same date that the district was established. D. The taxable value of the property proposed to be exempt, plus the aggregate taxable value of properties already exempted under PA 146 of2000 and under PA 198 of 1974, does not exceed five percent (5%) of the total taxable value of the City of Muskegon. E. In the event it is detennined that the said taxable values do exceed five percent (5%), the City Commission detennines further that the said excedence will not have the effect of substantially impeding the operation of the City of Muskegon or impairing the financial soundness of any affected taxing units. F. This resolution of approval is considered by the City Commission on Februmy 25, 2003, after a public hearing as provided in Section 4(2) of PA 146 of 2000. The hearing was held on this date. G. The applicant, DA T Holdings LLC, is not delinquent any taxes related to the facility. H. The exemption to be granted by this resolution is for nine (9) years. I. The City Commission finds that the property for which the Obsolete Prope11y Rehabilitation Exemption Certificate is sought is obsolete property within the meaning of Section 2(h) of Public Act 146 of2000 in that the property, which is commercial, is functionally obsolete. The City has received from the applicant all the items required by Section 9 of the application fonn, being the general description of the obsolete facility, a general description of the proposed use, a description of the general nature and extent of the rehabilitation to be undertaken, a descriptive list of fixed building equipment that will be part of the rehabilitated facility, a time schedule for undertaking and complete the rehabilitation, and statement of the economic advantages expected from the exemption. J. Commencement of the rehabilitation has not occurred before the establishment ofthe district. K. The application relates to a rehabilitation program that when completed will constitute a rehabilitated within the meaning of PA 146 of2000 and will be situated within the Obsolete Property Rehabilitation District established by the City under PA 146 of2000. L. Completion of the rehabilitated facility is calculated to and will, at the time of the issuance of the Certificate, have the reasonable likelihood to increase commercial activity and create employment; it will revitalize an urban area. The rehabilitation will include improvements aggregating more than ten percent (1 0%) of the true cash value of the propetiy at the commencement of the rehabilitation. M. The City Commission determines that the applicant shall have twelve (12) months to complete the rehabilitation. It shall be completed by September 12, 2007, or one year after the Cetiificate is issued, whichever occurs later. N. That notice pursuant to statute has been timely given to the applicant, the assessor for the City ofMuskegon, representatives of the affected taxing units and the general public. NOW, THEREFORE, THE CITY COMMISSION RESOLVES: I. Based upon the statements set fotih in, and incorporating the recitals to this resolution, the City Commission hereby approves the application filed by DA T Holdings LLC for an Obsolete Property Rehabilitation Exemption Cetiificate, to be effective for a penod of nine (9) years; 2. BE IT FURTHER RESOLVED, that this resolution of approval relates to the property described as: CITY OF MUSKEGON REVISED PLAT OF 1903 LOT 13 BLK 367 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: Davis, Gawron, Shepherd, Spataro, Warmington, Wierenga, and Carter Nays: _N_a~y_s_________________________________________________________ CITY OF MUSKEGON By ~ ltttu Linda Potter, Acting City Clerk 2 2006-75(a) CERTIFICATE This resolution was adopted at a meeting of the City Commission held on September 12, 2006. 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 dtmr(b. ~ Linda Potter, Acting City Clerk 3 Commission Meeting Date: September 12, 2006 Date: August 291 2006 To: Honorable Mayor and City Commissioners From: Planning & Economic Development CJOC-- RE: Public Hearing • Request to issue an Obsolete Property Certificate -1133 Third Street SUMMARY OF REQUEST: Pursuant to Public Act 146 of the Michigan Public Acts of 2000, DAT Holdings LLC, 16012 Baird Drive, Spring Lake Ml, has requested the issuance of an Obsolete Property Certificate for the property located at 1133 Third Street, Muskegon, MI. Total capital investment for this project is $175,000. The project consists of converting the building into a restaurant. Because of the amount of investment, the applicant is eligible for a 9 year certificate. FINANCIAL IMPACT: If an Obsolete Property Certificate is issued, the property taxes would be frozen for the duration of the certificate. BUDGET ACTION REQUIRED: None STAFF RECOMMENDATION: Staff recommends approval. COMMITTEE RECOMMENDATION: None i'' j ,tl Mch1gan Department of Treasury 3674 (Rev. 6-05) Application for Obsolete Property Rehabilitation Exemption Certificate This form is issued as provided by P.A. 146 of 2000. This application should be filed after the district is established. This project will not receive tax benefils until approved by the State Tax Commission. Applications received after October 31 may not be acted upon in the current year. This application is subject to audit by the State Tax Commission. INSTRUCTIONS: File the original and two copies of this form and the required attachments with the clerk of the local government unit. (The State Tax Commission requires two copies of the Application and attachments. The original is retained by the clerk.) Please see State Tax Commission Bulletin 9 of 2000 for more information about the Obsolete Property Rehabilitation Exemption. The following must be provided to the local government unit as attachments to this application: (a) General description of the obsolete facility (year built, original use, most recent use, number of stories, square footage); (b)General description of the proposed use of the rehabilitated facility, (c) Description of the general nature and extent of the rehabilitation to be undertaken, (d) A descriptive list of the fixed building equipment that will be a part of the rehabilitated facility, (e) A time schedule for undertaking and completing the rehabilitation of the facility, (f) A statement of the economic advantages expected from the exemption. . ·" School District where racility is located {mclude school code) , /D Number of years exemption requested Expected vr 0 Increase Commercial activl!y 0 Retain employment [23:.Revita!ize urban areas r::>J" Create employment r-l Prevent a: ross of employment r-J.. Increase number of residents in the LC.J- ~ l&. community in which the facility is situated Indicate the number of jobs to be retained or created as a result of rehabilitating the facility, including expected construction employment.'. tf} Each year. the State Treasurer may approve 25 additional reductions of half the school operating and state edJcalton taxes for a period not to exceed six yean•. Check the following box 1f you w1sh to be cons1dered for this exdus1on. APPLICANT'S CERTIFICATION The undersigned, authorized officer of the company making this application certifies that. to the best of his/her knowledge, no information contained herein or in the attachments hereto is false in any way and that all of the information is truly descriptive of the property for which this application is being submitted. Further, the undersigned is aware that, if any statement or information provided is untrue. the exemption provided by P.A. 146 of 2000 may be in jeopardy. The applicant certifies that this application relates to a rehabilitation program that, when completed, constitutes a rehabilitated facility, as defined by P.A. 146 of 2000 and that the rehabilitation of the facility would not be undertaken without the applicant's receipt of the exemption certificate. It is further certified that the undersigned is familiar with the provisions of PA 146 of 2000, of the Michigan Compiled Laws: and to the best of his/her knowledge and belief, (s)he has complied or will be able to comply with all of the requirements thereof which are prerequisite to the approval of the application by the local unit of government and the issuance of an Obsolete Property Rehabilitation Exemption Certificate by the State Tax Commission. Email A9dres.s : j .1 f::---'-~~-'-----"""-"':..:..:...::_:_~+~-='-J"-'--!..'"*~2!..::"'-1---'-)!.-'ry-'-,·~"/u'fc_o'l~_d t-v D l"l c{r' <- Signature , Ttlle '·• - ' LOCAL GOVERNMENT UNIT CLERK CER IFICATION Clerk must also complete Parts 1, 2 and 4 on Page 2. Part 3 to be completed by the assessor. Signature I D'te opphcehon cec,ved FOR STATE TAX COMMISSION USE Application for Obsolete Property Rehabilitation Exemption Certificate 1133 3rd St. a) Property 1133 3'd St. built in 1870/1880? 2 stories with basement approximately 4000 sq ft each Original use-- unknown Use today-- apartments on the upper floor, Y. commercial rental main floor and% unused for the past 12 years. b) Proposed use--- Bakery/restaurant 100% c) Return the facade to original look, new heating and cooling, new electrical, new water service, insulation, new windows, floors, interior walls, ceilings and doors. d) New boiler and piping for heating and cooling. New electrical service for main floor. New doors, windows and insulation. New flooring , drywall, ceilings and light fixtures. New ovens , cook tops, refrigeration units, freezers, exhaust hoods and vents. Handicap bathrooms. New signs. e) Time line to completion ---12 to 18 months f) The new business will add employment to the neighborhood, improve the aesthetics and increase activity to the 3'd St. area, hopefully stimulating more business to come back to the downtown area. CITY OF MUSKEGON MUSKEGON COUNTY, MICHIGAN RESOLUTIONNO. 2006-75(a) A resolution approving the application for an Obsolete Property Rehabilitation Exemption Certificate by DAT Holdings LLC. The City Commission of the City of Muskegon hereby RESOLVES: Recitals A. The City Commission has received an Application for an Obsolete Property Rehabilitation Exemption Certificate from DA T Holdings LLC, to apply to the improvements located in an Obsolete Property Rehabilitation District established by previous resolution. B. The City of Muskegon is a qualified local governmental unit as detennined by STC Bulletin No. 9 of 2000, dated July 12, 2000. C. An Obsolete Property Rehabilitation District in which the application property is located was established after hearing on October 9, 2002, being the same date that the district was established. D. The taxable value of the property proposed to be exempt, plus the aggregate taxable value of properties already exempted under P A 146 of 2000 and under PA 198 of 1974, does not exceed five percent (5%) of the total taxable value of the City of Muskegon. E. In the event it is determined that the said taxable values do exceed five percent (5%), the City Commission detennines fmther that the said excedence will not have the effect of substantially impeding the operation of the City of Muskegon or impairing the financial soundness of any affected taxing units. F. This resolution of approval is considered by the City Commission on Februmy 25, 2003, after a public hearing as provided in Section 4(2) of PA 146 of 2000. The hearing was held on this date. G. The applicant, DA T Holdings LLC, is not delinquent any taxes related to the facility. H. The exemption to be granted by this resolution is for nine (9) years. I. The City Commission finds that the property for which the Obsolete Property Rehabilitation Exemption Certificate is sought is obsolete property within the meaning of Section 2(h) of Public Act 146 of2000 in that the property, which is commercial, is functionally obsolete. The City has received from the applicant all the items required by Section 9 of the application fonn, being the general description of the obsolete facility, a general description of the proposed use, a desctiption of the general nature and extent of the rehabilitation to be undertaken, a descriptive list of fixed building equipment that will be part of the rehabilitated facility, a time schedule for unde1iaking and complete the rehabilitation, and statement of the economic advantages expected from the exemption. J. Commencement of the rehabilitation has not occurred before the establishment ofthe di strict. K. The application relates to a rehabilitation program that when completed wi ll constitute a rehabilitated within the meaning of PA 146 of 2000 and will be situated within the Obsolete Prope1iy Rehabilitation DistJict established by the City under P A 146 of 2000. L. Completion of the rehabilitated facility is calculated to and will, at the time of the issuance of the Certificate, have the reasonable likelihood to increase commercial activity and create employment; it will revitalize an urban area. The rehabilitation will include improvements aggregating more than ten percent (1 0%) of the true cash value of the prope1iy at the commencement of the rehabilitation. M. The City Commi ssion detennines that the applicant shall have twelve ( 12) months to complete the rehabilitation. It shall be completed by September 12, 2007, or one year after the Certificate is issued, whichever occurs later. N. That notice pursuant to statute has been timely given to the applicant, the assessor for the City of Muskegon, representatives of the affected taxing units and the general public. NOW, THEREFORE, THE CITY COMMISSION RESOLVES: I. Based upon the statements set forth in, and incorporating the recitals to this resolution, the City Commission hereby approves the application filed by DAT Holdings LLC for an Obsolete Prope1ty Rehabilitation Exemption Certificate, to be effective for a pen od of nine (9) years; 2. BE IT FURTHER RESOL YEO, that thi s resolution of approval relates to the prope1iy described as: CITY OF MUSKEGON REVISED PLAT OF 1903 LOT 13 BLK 367 3. BE IT FURTHER RESOLVED, that, as further condition of this approval, the applicant shall comply with the representations and conditi ons set forth in the recitals above and in the appli cation mate1ial submitted to the City. This reso luti on passed. Ayes: Davis, Gawron, Shepherd, Spataro, Warmington, Wierenga, and Carter Nays: Nays --~------------------------------------------------------- CITY OF MUSKEGON By ~~ Linda Potter, Acting City Clerk 2 2006-75(a) CERTIFICATE This resolution was adopted at a meeting of the City Commission held on September 12, 2006. 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 ctinda ~ Linda Potter, Acting City Clerk 3 TO: Honorable Mayor and City Commissioners FROM: Engineering DATE: September 12, 2006 RE: Public Hearing Spreading of the Special Assessment Roll Benton & Williams Sts., Chestnut St. to Catawba Ave. SUMMARY OF REQUEST: To hold a public hearing on the spreading of the special assessment for Benton & Williams Sts. from Chestnut St. to Catawba Ave., and to adopt the attached resolution confirming the special assessment roll. FINANCIAL IMPACT: A total of$32,272.55 would be spread against the sixteen- (16) parcels abutting the project. BUDGET ACTION REQUIRED: None at this time. STAFF RECOMMENDATION: To approve the special assessment roll and adopt the attached resolution. COMMITTEE RECOMMENDATION: CITY OF MUSKEGON Resolution No. 2006-7 5 (b) Resolution Confirming Special Assessment Roll For Benton & Williams Sts. From Chestnut St. to Catawba Ave. Properties Assessed: See Exhibit A attached to this resolution. RECITALS: 1. The City Commission determined to create a special assessment district covering the Properties set forth in Exhibit A attached to this resolution on February 14, 2006, at the first hearing. 2. The City has reviewed the special assessment roll which purports to levy a special assessment in the said district, levying on each property a portion of the cost which has been determined to be appropriate, considering the improvements, the benefit to the assessed properties, and the policies of the City. 3. The City Commission has received final bids for the construction and/or installation of the improvements and determines it to be fair and reasonable. 4. The City Commission has heard all objections to the roll filed before or at the hearing. THEREFORE, BE IT RESOLVED: 1. That the special assessment roll submitted by the Board of Assessors is hereby approved. 2. That the assessments levied may be made in installments as follows: annual installments over ten (1 0) years. Any assessment that is paid in installments shall carry interest at the rate of five (5) percent per annum to be paid in addition to the principal payments on the special assessment. RESOLUTION CONFIRMING SPECIAL ASSESSMENT ROLL FOR Benton & Williams Sts., Chestnut St. to Catawba Ave. Continued ... 3. The Clerk is directed to endorse the certificate of this confirmation resolution and the Mayor may endorse or attach his warrant bearing the date of this resolution which is the date of confirmation. This resolution passed. Ayes: ____G_a_w_r_o_n__;,_S_h_e_p,__h_e_r_d....:.,_S_.p~a_t_a_r___;_o_,_,----'-'W-'-a=r-=mc...:i:....::n.::...;g.._t=--o=-.:n:..=...<.-,---'-'-W-=i-=e-=r--=e=n=-=g'--'o"'"",.__ Carter, and Davis Nays: _ _ _c...:N~o~n'-=e---'------------------------- City of Muskegon By ~~ Linda Potter, Acting Clerk CERTIFICATE This resolution was adopted at a meeting of the City Commission, held on September 12, 2006. 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. Further, I hereby certify that the special assessment roll referred to in this resolution was confirmed on this date, being September 12, 2006. City of Muskegon By ----'d . <:.J,.,~ ~'---""'-~~&tz ~~~-- Linda Potter, Acting ·clerk EXHIBIT A Benton Ave. & Williams St. from Chestnut St. to Catawba Ave. SPECIAL ASSESSMENT DISTRICT All properties abutting that section of Benton Ave. & Williams St. from Chestnut St. to Catawba Ave. "a..·~ c: 0 ~ (]) "0 c: Ill "'IllE ~ ' / / ~/ / -11 BENTON & WILLIAMS STS., CHESTNUT ST. TO CATAWBA AVE. MAYOR'S ENDORSEMENT AND WARRANT I, STEPHEN J. WARMINGTON, MAYOR OF THE CITY OF MUSKEGON, HEREBY ENDORSE THE ABOVE CONFIRMATION RESOLUTION AND HEREBY WARRANT TO THE CITY TREASURER THIS DATE THAT HE SHALL PROCEED TO COLLECT THE ASSESSMENTS AT THE TIME AND IN THE MANNER SET FORTH ABOVE. AFFIDAVIT OF MAILING STATE OF MICHIGAN ) ) ss COUNTY OF MUSKEGON ) TO CONFIRM THE SPECIAL ASSESSMENT DISTRICT FOR THE FOLLOWING: H-1584 ,Benton Ave. & Williams St., Chestnut St. To Catawba Ave. THE DEPONENT SAYS THAT THE NOTICE OF HEARING WAS SERVED UPON EACH OWNER OF OR PARTY IN INTEREST IN PROPERTY TO BE ASSESSED IN THE SPECIAL ASSESSMENT DISTRICT WHOSE NAME APPEARS UPON THE LAST TAX ASSESSMENT RECORDS OF THE CITY OF MUSKEGON BY MAILING SUCH NOTICE IN A SEALED ENVELOPE BY FIRST CLASS UNITED STATES MAIL, WITH POSTAGE PREPAID, ADDRESSED TO EACH SUCH OWNER OR PARTY IN INTEREST AT THE ADDRESS SHOWN ON SAID LAST TAX ASSESSMENT RECORDS BY DEPOSITING THEM IN AN OFFICIAL UNITED STATES MAIL RECEPTACLE ON THE 31th DAY OF AUGUST 2006 ~ dt&< LINDA POTTER, ACTING CITY CLERK SUBSCRIBED AND ~~RE ME THIS ~ .;l.. DAY OF , 2006. ~ ~ 'rn . fiRM- l~e-w 10 L NOTAR PUBLIC, MUSKEGON COUNTY, MICHIGAN MY COMMISSION EXPIRES O"S - 16- ;).1) I ~ CITY OF MUSKEGON NOTICE OF PUBLIC HEARING CONFIRMATION OF SPECIAL ASSESSMENT ROLLS SPECIAL ASSESSMENT DISTRICTS: PARK ST., LAKETON AVE. TO SOUTHERN AVE. AND BENTON & WILLIAMS STS., CHESTNUT ST. TO CATAWBA AVE. The locations of the special assessment districts and the properties proposed to be assessed are: All parcels abutting Park St. from Laketon Ave. to Southern Ave. And All parcels abutting Benton & Williams Sts. from Chestnut St. to Catawba Ave. PLEASE TAKE NOTICE that a hearing to confirm the special assessment rolls will be held at the City of Muskegon Commission Chambers on September 12, 2006 at 5:30 p.m. At the time set for the hearing the City Commission will examine and determine whether to approve the special assessment rolls that has been prepared and submitted for the purpose of said hearing and for examination by those persons to be assessed. The special assessment rolls are on file and may be examined during regular business hours at the City Engineer's office between 8:00a.m. and 5:00p.m. on weekdays, except holidays. YOU ARE HEREBY NOTIFIED THAT YOU HAVE A RIGHT TO PROTEST YOUR ASSESSMENT EITHER IN WRITING OR IN PERSON AT THE HEARING. IF THE SPECIAL ASSESSMENT ROLLS IS CONFIRMED, YOU WILL HAVE TillRTY (30) DAYS FROM THE DATE OF CONFIRMATION OF THE ROLLS TO FILE A WRITTEN APPEAL WITH THE MICHIGAN STATE TAX TRIBUNAL. HOWEVER, UNLESS YOU PROTEST AT TillS HEARING OR DID SO AT THE PREVIOUS HEARING ON TillS SPECIAL ASSESSMENT DISTRICTS EITHER IN PERSON OR BY AGENT, OR IN WRITING BEFORE OR AT THE HEARING, YOUR RIGHT TO APPEAL TO THE MICillGAN TAX TRIBUNAL WILL BE LOST. You are further notified that at the first hearing the City Commission determined that the special assessment districts should be created, the improvements made, and the assessments levied. The purpose of this hearing is to hear objections to the assessment rolls and to approve, reject, or correct the said rolls. Linda Potter, Acting City Clerk Publish: SEPTEMBER 2, 2006 ADA POLICY The City will provide necessary appropriate auxiliary aids and services, for example, signers for the hearing impaired, audiotapes for the visually impaired, etc., for disabled persons who want to attend the meeting, upon twenty-four hours notice to the City. Contact: Linda Potter, Acting City Clerk 933 Terrace Street, Muskegon, MI 49440 (231) 724-6705 ofTDD (231) 724-6773 Acct# 643-60447-5267 H 1584 HEARING DATE SEPTEMBER 12, 2006 BENTON ST. & WILLIAMS ST.,CHESTNUT ST. TO CATAWBA SPECIAL ASSESSMENT ROLL DRAPP PARCEL @ OWNER MAILING ADDRESS PAVING /SW TOTAL 24-771-000-0025-0 479 CATAWBA AVE SHERMAN FREDERIC 1239 PECK ST. MUSKEGON Ml 49441 $881.88 $0.00 $881.88 24-771-000-0024-1 1282 WILLIAMS ST ERICKSON RUTHANN 1282 WILLIAMS ST MUSKEGON Ml 49442 $830.00 $905.47 $1,735.47 24-771-000-0030-0 1294 WILLIAMS ST CITY OF MUSKEGON 933 TERRACE ST MUSKEGON Ml 49443-0 $1,618.50 $0.00 $1,618.50 24-771-000-0032-0 1302 WILLIAMS ST JEWETT NEVA J 1302 WILLIAMS ST MUSKEGON Ml 49442 $809.25 $554.02 $1,363.27 24-771-000-0033-0 1308 WILLIAMS ST CHAPMAN EDGAR JR POBOX1121 MUSKEGON Ml 49443 $809.25 $554.02 $1,363.27 24-771-000-0041-0 482 BENTON AVE MUSKEGON CONSTR POBOX477 MUSKEGON Ml 49443 $1,296.88 $0.00 $1,296.88 24-771-000-0039-0 494 BENTON AVE CHAPMAN EDGAR 2011 6TH ST MUSKEGON Ml 49444-1 $1,826.00 $0.00 $1,826.00 24-771-000-0037-0 504 BENTON AVE HICKS JAMES SR/LILLI 504 BENTON AVE MUSKEGON Ml 49442 $1,826.00 $627.34 $2,453.34 24-771-000-0034-1 1331 CHESTNUT ST WILSON JOHN L 1331 CHESTNUT ST MUSKEGON Ml 49442 $1,369.50 $439.37 $1,808.87 24-771-000-0057-0 463 CATAWBA AVE HAVERMANS THEOD 1167 PECK ST MUSKEGON Ml 49441 $1,374.69 $724.46 $2,099.15 24-771-000-0064-0 1311 WILLIAMS ST MUSKEGON CONSTR PO BOX477 MUSKEGON Ml 49443 $6,431.46 1,004.03 $7,435.49 24-771-000-0049-0 1389 KENNETH ST WORKMAN JOHN J/CA 2044 WESTLAKE ROA TWIN LAKE Ml 49457 $3,305.48 $0.00 $3,305.48 24-771-000-0048-0 503 BENTON AVE GUSTIN KENNETH J 503 BENTON AVE MUSKEGON Ml 49442 $913.00 $0.00 $913.00 24-771-000-0047-0 505 BENTON AVE BAKER FRANKLIN Ill 737 W HACKLEY AVE MUSKEGON Ml 49441 $913.00 $0.00 $913.00 24-771-000-0046-0 511 BENTON AVE EDWARDS VIOLA 511 BENTON AVE MUSKEGON Ml 49442 $913.00 $327.71 $1,240.71 24-771-000-0043-0 1345 CHESTNUT ST CROWLEY ROBASTIN 1345 CHESTNUT ST MUSKEGON Ml 49442 $1,369.50 $648.75 $2,018.25 9/13/2006 Page 1 of 2 H 1584 HEARING DATE SEPTEMBER 12, 2006 BENTON ST. & WILLIAMS ST.,CHESTNUT ST. TO CATAWBA SPECIAL ASSESSMENT ROLL DRAPP PARCEL @ OWNER MAILING ADDRESS PAVING I SW TOTAL TOTALS ... -- - $26,487 .38 $5,785.17 $32,272.55 PLEASE NOTE: PARCELS SHOWING $0.00 IN THE TOTAL COLUMN ARE EXEMPT BOARD OF ASSESSORS ~~ V~ lFil LM~t·tl q · 2 5' - a G LARRY MILLARD, DIRECTOR,COUNTY EQUALIZATIO DATE & CHRIS CARTE~ ~-LJ. CITY COMM ISSIONER 9-/j-Ob DATE c; ~;s -o-6 DATE 9/13/2006 Page 2 of 2 TO: Honorable Mayor and City Commissioners FROM: Engineering DATE: September 12, 2006 RE: Public Hearing Spreading of the Special Assessment Roll Park St.,Laketon Ave. to Southern Ave. SUMMARY OF REQUEST: To hold a public hearing on the spreading of the special assessment for Park St. from Laketon Ave. to Southern Ave., and to adopt the attached resolution confirming the special assessment roll. FINANCIAL IMPACT: A total of$78,723.20 would be spread against the thirty-three- (33) parcels abutting the project. BUDGET ACTION REQUIRED: None at this time. STAFF RECOMMENDATION: To approve the special assessment roll and adopt the attached resolution. COMMITTEE RECOMMENDATION: CITY OF MUSKEGON ResolutionNo. 2006-75(c) Resolution Confirming Special Assessment Roll For Park St. from Laketon Ave. to Southern Ave. Properties Assessed: See Exhibit A attached to this resolution. RECITALS: I. The City Commission determined to create a special assessment district covering the Properties set forth in Exhibit A attached to this resolution on February 14,2006, at the first hearing. 2. The City has reviewed the special assessment roll which purports to levy a special assessment in the said district, levying on each property a portion of the cost which has been determined to be appropriate, considering the improvements, the benefit to the assessed properties, and the policies of the City. 3. The City Commission has received final bids for the construction and/or installation of the improvements and determines it to be fair and reasonable. 4. The City Commission has heard all objections to the roll filed before or at the hearing. THEREFORE, BE IT RESOLVED: I. That the special assessment roll submitted by the Board of Assessors is hereby approved. 2. That the assessments levied may be made in installments as follows: annual installments over ten (I 0) years. Any assessment that is paid in installments shall carry interest at the rate of five (5) percent per annum to be paid in addition to the principal payments on the special assessment. RESOLUTION CONFIRMING SPECIAL ASSESSMENT ROLL FOR Park St., Laketon Ave. to Southern Ave. Continued... 3. The Clerk is directed to endorse the certificate of this confirmation resolution and the Mayor may endorse or attach his warrant bearing the date of this resolution which is the date of confirmation. This resolution passed. Ayes: Shepherd, Spataro, Warmington 1 Wierenga 1 Carter, Davis, and Gawron Nays: None City of Muskegon By ~ ;&/u Linda Potter, Acting Clerk CERTIFICATE This resolution was adopted at a meeting of the City Commission, held on September 12, 2006. 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. Further, I hereby certify that the special assessment roll referred to in this resolution was confirmed on this date, being September 12, 2006. City ofMuskegon By ~ l1tlu Linda Potter, Acting Clerk EXHIBIT A Park St. from Laketon Ave. to Southern Ave. SPECIAL ASSESSMENT DISTRICT All properties abutting that section of Park St. from Laketon Ave. to Southern Ave. tsQl ·e n_ a; in" z ~ "' n_ I PARK ST., LAKETON AVE. TO SOUTHERN AVE. MAYOR'S ENDORSEMENT AND WARRANT I, STEPHEN J. WARMINGTON, MAYOR OF THE CITY OF MUSKEGON, HEREBY ENDORSE THE ABOVE CONFIRMATION RESOLUTION AND HEREBY WARRANT TO THE CITY TREASURER THIS DATE THAT HE SHALL PROCEED TO COLLECT THE ASSESSMENTS AT THE TIME AND IN THE MANNER SET FORTH ABOVE. AFFIDAVIT OF MAILING STATE OF MICHIGAN ) ) ss COUNTY OF MUSKEGON ) TO CONFIRM THE SPECIAL ASSESSMENT DISTRICT FOR THE FOLLOWING: H-1610 ,Park St., Lal(eton Ave. to Southern Ave. THE DEPONENT SAYS THAT THE NOTICE OF HEARING WAS SERVED UPON EACH OWNER OF OR PARTY IN INTEREST IN PROPERTY TO BE ASSESSED IN THE SPECIAL ASSESSMENT DISTRI CT WHOSE NAME APPEARS UPON THE LAST TAX ASSESSMENT RECORDS OF THE CITY OF MUSKEGON BY MAILING SUCH NOTICE IN A SEALED ENVELOPE BY FIRST CLASS UNITED STATES MAIL, WITH POSTAGE PREPAID, ADDRESSED TO EACH SUCH OWNER OR PARTY IN INTEREST AT THE ADDRESS SHOWN ON SAID LAST TAX ASSESSMENT RECORDS BY DEPOSITING THEM IN AN OFFICIAL UNITED STATES MAIL RECEPTACLE ON THE 31th DAY OF AUG UST 2006 ~~ LINDA POTTER, ACTING CITY CLERK SUBSCRIBED AND SWORN TO BEFORE ME TH IS d..~ DAYOF ~ ,2006. ~ ~ ~. Kr&~.,k NOTAR PUBLIC, MUSKEGON COUNTY, MICHIGAN MY COMMISSION EXPIRES OS - I S- d....-0 I d. CITY OF MUSKEGON NOTICE OF PUBLIC HEARING CONFIRMATION OF SPECIAL ASSESSMENT ROLLS SPECIAL ASSESSMENT DISTRICTS: WILLIAMS ST. & BENTON AVE., CHESTNUT ST. TO CATAWBA AVE. AND PARK ST., LAKETON AVE. TO SOUTHERN AVE. The locations of the special assessment districts and the properties proposed to be assessed are: All parcels abutting Williams St & Benton Ave. from Chestnut St. to Catawba Ave And All parcels abutting Park St. from Laketon Ave. to Southern Ave. PLEASE TAKE NOTICE that a hearing to confirm the special assessment rolls will be held at the City of Muskegon Commission Chambers on September 12, 2006 at 5:30p.m. At the time set for the hearing the City Commission will examine and determine whether to approve the special assessment rolls that has been prepared and submitted for the purpose of said hearing and for examination by those persons to be assessed. The special assessment rolls are on file and may be examined during regular business hours at the City Engineer's office between 8:00a.m. and 5:00p.m. on weekdays, except holidays. YOU ARE HEREBY NOTIFIED THAT YOU HAVE A RIGHT TO PROTEST YOUR ASSESSMENT EITHER IN WRITING OR IN PERSON AT THE HEARING. IF THE SPECIAL ASSESSMENT ROLLS IS CONFIRMED, YOU WILL HAVE THIRTY (30) DAYS FROM THE DATE OF CONFIRMATION OF THE ROLLS TO FILE A WRITTEN APPEAL WITH THE MICHIGAN STATE TAX TRIBUNAL. HOWEVER, UNLESS YOU PROTEST AT THIS HEARING OR DID SO AT THE PREVIOUS HEARING ON THIS SPECIAL ASSESSMENT DISTRICTS EITHER IN PERSON OR BY AGENT, OR IN WRITING BEFORE OR AT THE HEARING, YOUR RIGHT TO APPEAL TO THE MICHIGAN TAX TRIBUNAL WILL BE LOST. You are further notified that at the first hearing the City Commission determined that the special assessment districts should be created, the improvements made, and the assessments levied. The purpose of this hearing is to hear objections to the assessment rolls and to approve, reject, or correct the said rolls. Linda Potter, Acting City Clerk Publish: SEPTEMBER 2, 2006 ADA POLICY The City will provide necessary appropriate auxiliary aids and services, for example, signers for the hearing impaired, audiotapes for the visually impaired, etc., for disabled persons who want to attend the meeting, upon twenty-four hours notice to the City. Contact: Linda Potter, Acting City Clerk 933 Terrace Street, Muskegon, MI 49440 (231) 724-6705 ofTDD (231) 724-6773 Acct# 643-60447-5267 H 1610 HEARING DATE SEPTEMBER 12, 2006 PARK ST.,LAKETON AVE. TO SOUTHERN AVE. SPECIAL ASSESSMENT ROLL DRAPP PARCEL @ OWNER MAILING ADDRESS PAVING /SW TOTAL 24-205-438-0015-0 497 W FOREST AVE CITY OF MUSKEGON 933 TERRACE ST P 0 MUSKEGON Ml 49443-0 $6,080.00 $0.00 $6,080.00 24-205-438-0009-1 1717 PARK ST CROW DEVELOPMEN 1756 LAKESHORE DR MUSKEGON Ml 49441 $8,032.00 $0.00 $8,032.00 24-205-438-0010-0 1699 PARKST CROW DEVELOPMEN 1756 LAKESHORE DR MUSKEGON Ml 49441 $608.00 $0.00 $608.00 24-205-438-0009-0 1689 PARKST CROW DEVELOPMEN 1756 LAKESHORE DR MUSKEGON Ml 49441 $480.00 $0.00 $480.00 24-205-438-0008-0 1679 PARKST TUMBLIN SHAWANDA 1679 PARK ST MUSKEGON Ml 49441 $1,600.00 $0.00 $1,600.00 24-205-438-0007-0 1671 PARKST TICE KENNETH D 1671 PARK ST MUSKEGON Ml 49441 $1,600.00 $0.00 $1,600.00 24-205-438-0006-0 1663 PARKST VETTER JEFF C 1663PARKST MUSKEGON Ml 49441 $1,600.00 $0.00 $1,600.00 24-205-438-0005-0 1657 PARKST LOGAN ANGELA 1657 PARK ST MUSKEGON Ml 49441 $1,600.00 $0.00 $1,600.00 24-205-438-0004-0 1649 PARK ST GERMAN MARK L 1649 PARK ST MUSKEGON Ml 49441 $1,600.00 $0.00 $1,600.00 24-205-438-0003-0 1641 PARK ST LEEBALL MARK/JOAN 1633 PARK ST MUSKEGON Ml 49441 $1,600.00 $0.00 $1,600.00 24-205-438-0002-0 1633 PARK ST LEEBALL MARK T 1633 PARKST MUSKEGON Ml 49441 $1,600.00 $0.00 $1,600.00 24-205-438-0001-1 1625 PARKST BALOGH STEPHEN 3043 N WORDEN RD MUSKEGON Ml 49445 $1,600.00 $0.00 $1,600.00 24-205-430-0010-0 1605 PARKST RIVER CITY HOUSING 599 GRAND WOODS GRAND RAPID Ml 49525 $1,600.00 $0.00 $1,600.00 24-205-430-0011-1 1601 PARK ST REDDER MARSHALL 3960 30TH ST SW GRANDVILLE Ml 49418 $800.00 $0.00 $800.00 24-205-430-0011-0 1597 PARK ST LAKETOWN INVESTM PO BOX 74 BYRON CENTEMI 49315 $800.00 $0.00 $800.00 24-205-430-0012-0 1589 PARKST CITY OF MUSKEGON PO BOX 536 MUSKEGON Ml 49443-0 $1,600.00 $0.00 $1,600.00 24-205-430-0013-0 1583 PARK ST BARAJAS MARIA 1583 PARK ST MUSKEGON Ml 49441 $1,536.00 $0.00 $1,536.00 24-205-430-0014-0 1575 PARK ST BROOKS RENTAL PR 12603 VAN WAGONE GRANT Ml 49327 $1,600.00 $0.00 $1,600.00 9/13/2006 Page 1 of 3 H 1610 HEARING DATE SEPTEMBER 12, 2006 PARK ST.,LAKETON AVE. TO SOUTHERN AVE. SPECIAL ASSESSMENT ROLL DRAPP PARCEL @ OWNER MAILING ADDRESS PAVING /SW TOTAL 24-205-430-0015-0 1567 PARK ST STAGE JOSEPH R 1567 PARK ST MUSKEGON Ml 49441 $1,600.00 $0.00 $1,600.00 24-205-430-0001-1 447 W SOUTHERN AVE SCHWARTZ ROBBY P/ 12891 OAK CREST LN GRAND HAVENMI 49417 $1,600.00 $0.00 $1,600.00 24-205-460-0004-0 410 W LAKETON AVE CITY OF MUSKEGON PO BOX 536 MUSKEGON Ml 49443-0 $4,678.40 $0.00 $4,678.40 24-205-460-0003-0 400 W LAKETON AVE MUSKEGON RESCUE 1691 PECK ST MUSKEGON Ml 49441 $2,082.56 $0.00 $2,082.56 24-205-460-0002-0 1767 PARK ST CITY OF MUSKEGON 933 TERRACE ST P MUSKEGON Ml 49443-0 $2,583.04 $0.00 $2,583.04 24-205-450-0001-5 1747 7TH ST VANSLOOTEN TREE 1713 7TH ST MUSKEGON Ml 49441 $2,519.36 $0.00 $2,519.36 24-205-450-0001-0 1713 7TH ST VANSLOOTEN TREE 1713 7TH ST MUSKEGON Ml 49441 $9,704.64 $0.00 $9,704.64 24-205-439-0007-0 1670 PARK ST HENDRIE WILLIAM LIC 1670 PARK ST MUSKEGON Ml 49441 $1,595.20 $0.00 $1,595.20 24-205-439-0006-0 1662 PARK ST HENDERSON DEBRA 1662 PARK ST MUSKEGON Ml 49441 $1,595.20 $0.00 $1,595.20 24-205-439-0005-0 1656 PARK ST REDDER MARSHALL 3960 30TH ST SW GRANDVILLE Ml 49418 $1,595.20 $0.00 $1,595.20 24-205-439-0004-0 1648 PARK ST CHERRY RICKY D/MEL 280 OTTAWA AVE MUSKEGON Ml 49442 $1,595.20 $0.00 $1,595.20 24-205-439-0003-0 1638 PARK ST FEDERAL HOME LOA 8250 JONES BRANCH MC LEAN VA 22102 $1,595.20 $0.00 $1,595.20 24-205-439-0001-0 421 W FOREST AVE JPMORGAN CHASE B 4708 MERCANTILE D FORT WORTH TX 76137 $1,595.20 $0.00 $1,595.20 24-205-429-0001-0 1580 PARK ST MUSKEGON PUBLICS 349 W WEBSTER AVE MUSKEGON Ml 49440 $0.00 $0.00 $0.00 24-205-451-0001-0 1700 MESSLER ST BRUNSWICK CORP 525 W LAKETON AVE MUSKEGON Ml 49441 $8,448.00 $0.00 $8,448.00 9/13/2006 Page 2 of 3 H 161 Q HEARING DATE , 2005 PARK ST.,LAKETON AVE. TO SOUTHERN AVE. SPECIAL ASSESSMENT ROLL DRAPP PARCEL @ OWNER MAILING ADDRESS PAVING I SW TOTAL TOTALS - $78,723.20 $0.00 $78,723.20 PLEASE NOTE: PARCELS SHOWING $0.00 IN THE TOTAL COLUMN ARE EXEMPT BOARD OF ASSESSORS ~ :=D~ J~ Cr"" L"""\ q · 25 - v 6 LARRY MI LLARD, DIRECTOR,COUNTY EQUALIZATIO DATE 7 -~ /0 9-/.S-00 ~TA DATE 9-/3-()0 DATE 9/ 13/2006 Page 3 of 3 Date: September 12, 2006 To: Honorable Mayor and City Commissioners From: Finance Director RE: 2007 Budget Adoption SUMMARY OF REQUEST: This is the time set for a public hearing on the City's proposed budget for the year 2007. The proposed budget has been made available for public inspection at City Hall, Hackley Public Library and the City's website (www.shorelinecitv.com). After hearing public comments, the City Commission may take action to adopt the 2007 budget with whatever changes or adjustments it deems necessary. In any event, City Charter requires the budget be adopted no later than September 25, 2006. FINANCIAL IMPACT: The budget sets forth the priorities and overall financial plan for operations in the year 2007. As proposed, the budget includes no property tax increase. BUDGET ACTION REQUIRED: Adoption of the attached budget resolution provides the legal appropriation authority necessary for City departments to conduct operations in 2007. STAFF RECOMMENDATION: After receiving comments, close the public hearing and approve the proposed 2007 City of Muskegon Budget resolution that is attached. Also, approval of the 3rd Quarter 2006 Budget Reforecast as shown in the Budget Book is recommended at this time. COMMITIEE RECOMMENDATION: The Committee of the Whole will review the budget at their September 11th work session. CITY OF MUSKEGON RESOLUTION OF APPROPRIATION 2007 BUDGET 2006-75(d) WHEREAS, the City Manager has submitted a proposed Budget for 2007 in accordance with the City Charter and Michigan Public Act 621 of 1978 known as the "Uniform Budgeting and Accounting Act"; and, WHEREAS, the 2007 proposed Budget has been reviewed by the City Commission following a public hearing for which due notice was given; NOW, THEREFORE, BE IT RESOLVED that the Budget for the City of Muskegon for the fiscal year beginning January 1, 2007 is hereby determined and adopted as follows: GENERAL FUND FUND ACTIVITY NUMBER FUND/ACTIVITY NAME AMOUNT 101-10101 City Commission 86,156 101-10102 City Promotions & Public Relations 8,729 101-10145 City Attorney 402,695 101-10172 City Manager 218,617 101-10875 Contributions to Outside Agencies 177,294 101-10891 Contingency and Bad Debt Expense 400,000 101-20173 Administration 172,692 101-20215 City Clerk & Elections 332,100 101-20220 Civil Service 184,068 101-20228 Affirmative Action 98,681 101-30202 Finance Administration 421,292 101-30205 Income Tax Administration 358,668 101-30209 Assessing Services 427,490 101-30805 Arena Administration 175,300 101-30248 Information Systems Administration 349,989 101-30253 City Treasurer 346,522 101-30851 Insurance Premiums 347,304 101-30906 Debt Retirement 261,194 101-30999 Transfers to Other Funds 808,046 101-40301 Police 8,470,172 101-50336 Fire 3,759,363 101-50387 Fire Safety Inspections 1,014.248 101-60265 City Hall Maintenance 256,988 101-60446 Community Event Support 34,750 101-60448 Streetlighting 572,325 101-60523 Sanitation 1,664,506 101-60528 Recycling 163,368 101-60550 Stormwater Management 16,991 101-60770 Senior Citizen Transit 54,306 101-70276 Cemeteries Maintenance 547,563 101-70585 Parking Operations 7,500 101-70751 Parks Maintenance 1,232,919 101-70357 Graffiti Removal 4,792 101-70757 McGraft Park Maintenance 54,306 101-70775 General Recreation 296,703 101-70863 Farmers' Market and Flea Market 37,826 101-80387 Environmental Services 353,251 101-80400 Planning, Zoning and Economic Development 460,865 101-90000 Major Capital Improvements 0 Grand Total General Fund Appropriations $24 sa27aii OTHER BUDGETED FUNDS FUND ACTIVITY NUMBER FUND/ACTIVITY NAME AMOUNT 202,204 Major Streets and State Trunk lines 5,000,591 203 Local Streets 2,766,437 264 Criminal Forfeitures 63,000 285 Tree Replacement 3,200 BE IT FURTHER RESOLVED that the revenues and other financing sources (including use of prior year balances) for Fiscal Year 2007 are estimated as follows: GENERAL FUND FUND/ACTIVITY NAME AMOUNT Taxes $ 14,794,300 Licenses and Permits 1,015,000 Federal Grants 88,325 State Grants 18,000 State Shared Revenue 4,628,616 Charges for Sales & Services 2,207,373 Interest & Rentals 468,900 Fines & Fees 592,000 Other Revenue 234,750 Other Financing Sources 255,000 Use of Fund Balance 280.522 Total General Fund Revenue Appropriations $24 582 786 OTHER BUDGETED FUNDS FUND ACTIVITY NUMBER FUND/ACTIVITY NAME AMOUNT 202,204 Major Streets and State Trunklines 5,027,969 203 Local Streets 2,794,797 264 Criminal Forfeitures 12,000 285 Tree Replacement 3,200 BE IT FURTHER RESOLVED that the operating expense projections for the following non- budget funds are hereby approved: FUND ACTIVITY NUMBER FUND/ACTIVITY NAME AMOUNT 305 TIFA Debt Service $60,000 394 Downtown Development Authority Debt 585,183 290 Local Finance Development Authority Debt 285 ,847 402 Arena Improvement Fund 20,000 403 Sidewalk Improvement Fund 395,828 404 Public Improvement Fund 2,297,223 482 State Grants Fund 1,505,000 590 Sewer 5,347,483 591 Water 6,170,826 594 Marina/Launch Ramp 1,055,326 661 Equipment 2,436,615 642 Public Service Building 565,516 643 Engineering Services Fund 647,297 677 General Insurance Fund 4,099,023 BE IT FURTHER RESOLVED, that there is hereby appropriated for said fiscal year the several amounts set forth above which, pursuant to the "Uniform Budget and Accounting Act", define the City of Muskegon's appropriation centers, and BE IT FURTHER RESOLVED, that the City Manager is hereby empowered to transfer appropriations within appropriation centers, and BE IT FURTHER RESOLVED, that there is hereby levied a general tax as herein fixed on each dollar of taxable valuation for the purposes herein outlined, said levy to be applied on all ta xable real and personal property in the City of Muskegon as set forth in the assessment roll dated May 2006 : PURPOSE MILLAGE (MILLS} General Operating 8.5000 Sanitation Service 2.5000 Promotion .0732 Total 11 .0732 At a regular meeting of the City Commission of the City of Muskegon, on the 1 2 th Day of September 2006, the foregoing resolution w as moved for adoption by Commiss ioner Cart e r Commissioner Sh eph e rd supported the motion. Resolution declared adopted. City Clerk Commission Meeting Date: September 12, 2006 Date: September 5, 2006 To: Honorable Mayor & City Commission From: Planning & Economic Development Departmentc8C.. RE: Set Public Hearing for Amendment to Brownfield Plan- Redevelopment of the Century Club & Daniels and Redevelopment of Muskegon Savings Bank SUMMARY OF REQUEST: To approve the attached resolution setting a public hearing for an amendment for the Brownfield Plan, and notifying taxing jurisdictions of the Brownfield Plan Amendment including the opportunity to express their views and recommendations regarding the proposed amendment at the public hearing. The amendment is for the inclusion of property owned Western Avenue Properties, LLC and Port City Construction & Development Services, LLC, known as Western Avenue Properties, located at 350, 356, 360-366 W. Western, in the Brownfield Plan. FINANCIAL IMPACT: There is no direct financial impact in including the project in the Brownfield Plan, although the redevelopment of the site into residential condominiums will eventually add to the tax base in Muskegon. BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: To approve the attached resolution and authorize the Mayor and Clerk to sign the resolution. COMMITIEE RECOMMENDATION: The Brownfield Redevelopment Authority met on September 5, 2006 and approved the Brownfield Plan Amendment and recommends the approval of the Brownfield Plan Amendment to the Muskegon City Commission. In addition, the Brownfield Redevelopment Authority recommends that the Muskegon City Commission set a public hearing on the Plan Amendment for October 10, 2006. RESOLUTION NOTIFYING TAXING UNITS AND CALLING PUBLIC HEARING REGARDING APPROVAL OF AMENDMENTS TO THE BROWNFIELD PLAN OF THE CITY OF MUSKEGON BROWNFIELD REDEVELOPMENT AUTHORITY 2006-76(a) City of Muskegon County of Muskegon, Michigan Minutes of a Regular Meeting of the City Commission of the City of Muskegon, County of Muskegon, Michigan (the "City"), held in the City offices, on the 12th day of September, 2006, at 5:30 o'clock p.m., prevailing Eastern Time. PRESENT: Membern Wierenga, Carter, Davis, Gawron, Shepherd, Spataro, and Warmington ABSENT: Members None The following preamble and resolution were offered by Member _S::..p<..:a::..:t:..:a:..::r-=o_ _ _ and supported by Member Carter WHEREAS, the City of Muskegon, County of Muskegon, Michigan (the "City") is authorized by the provisions of Act 381, Public Acts of Michigan, 1996, as amended ("Act 381"), to create a brownfield redevelopment authority; and WHEREAS, pursuant to Act 381, the City Commission of the City duly established the City of Muskegon Brownfield Redevelopment Authority (the "Authority"); and WHEREAS, in accordance with the provisions of Act 381, the Authority has prepared and approved Brownfield Plan Amendments to include the Redevelopment of the Century Club & Daniels and Redevelopment of Muskegon Savings Bank, and WHEREAS, the Authority has forwarded the Brownfield Plan Amendments to the City Commission requesting its approval of the Brownfield Plan Amendments and WHEREAS, prior to approval of the Brownfield Plan Amendments, the Muskegon City Commission desires to hold a public hearing in connection with consideration of the Brownfield Plan Amendments as required by Act 381; and WHEREAS, prior to approval of the Brownfield Plan Amendments, the City Commission is required to provide notice and a reasonable opportunity to the taxing jurisdictions levying taxes subject to capture to express their views and recommendations regarding the Brownfield Plan Amendments. NOW, THEREFORE, BE IT RESOLVED THAT: 1. The City Commission hereby acknowledges receipt of the Brownfield Plan Amendments from the Authority and directs the City Clerk to send a copy of the proposed Brownfield Plan Amendments to the governing body of each taxing jurisdiction in the City, notifying them of the City Commission's intention to consider approval of the Brownfield Plan Amendments [after the public hearing described below]. 2. A public hearing is hereby called on the 1Oth of October, 2006 at 5:30 p.m., prevailing Eastern Time, in the City Hall Commission Chambers to consider adoption by the City Commission of a resolution approving the Brownfield Plan Amendments. 3. The City Clerk shall cause notice of said public hearing to be published in the Muskegon Chronicle, a newspaper of general circulation in the City, twice before the public hearing. The first publication of the notice shall be not less than 20 days or more than 40 days before the date set for the public hearing. The notice shall be published as a display advertisement prominent in size. 4. The notice of the hearing shall be in substantially the following form: CITY OF MUSKEGON COUNTY OF MUSKEGON, STATE OF MICHIGAN PUBLIC HEARING ON .AN AMENDMENT TO THE MUSKEGON BROWNFIELD PLAN, AS APPROVED BY THE CITY OF MUSKEGON BROWNFIELD REDEVELOPMENT AUTHORITY TO ALL INTERESTED PERSONS IN THE CITY OF MUSKEGON: PLEASE TAKE NOTICE that the Muskegon City Commission of the City of Muskegon, Michigan, will hold a public hearing on October 10, 2006, at 5:30p.m., prevailing Eastern Time in the City Hall Commission Chambers located at 933 Terrace Street, Muskegon, Michigan, to consider the adoption of a resolution approving a Brownfield Plan Amendment for the City of Muskegon Brownfield Redevelopment Authority pursuant to Act 381 of the Public Acts of Michigan of 1996, as amended. The property to which the proposed Brownfield Plan Amendment applies is: Redevelopment of the Century Club & Daniels and Redevelopment of Muskegon Savings Bank 350, 356, 360-366 W. Western Avenue Muskegon, Michigan Copies of the proposed Brownfield Plan Amendment are on file at the office of the City Clerk for inspection during regular business hours. At the public hearing, all interested persons desiring to address the City Commission shall be afforded an opportunity to be heard in regard to the approval of the Brownfield Plan Amendments for the City of Muskegon Brownfield Redevelopment Authority. All aspects of the Brownfield Plan Amendments will be open for discussion at the public hearing. FURTHER INFORMATION may be obtained from the City Clerk. This notice is given by order of the City Commission of the City of Muskegon, Michigan. Linda S. Potter, Acting City Clerk 5. All resolutions and parts of resolutions insofar as they conflict with the provisions of this resolution be and the same hereby are rescinded. AYES: Members Warmington, Wierengo, Carter, Davis, Gawron, Shepherd, and Spataro NAYS: Members Non e RESOLUTION DECLARED ADOPTED. Linda S. Potter, Acting City Clerk I hereby certify that the foregoing is a true and complete copy of a resolution adopted by the City Commission of the City of Muskegon, County of Muskegon, State of Michigan, at a regular meeting held on September 12, 2006, and that said meeting was conducted and public notice of said meeting was given pursuant to and in full compliance with the Open Meetings Act, being Act 267, Public Acts of Michigan, 1976, as amended, and that the minutes of said meeting were kept and will be or have been made available as required by said Act. City Clerk Commission Meeting Date: September 12, 2006 Date: September 5, 2006 To: Honorable Mayor & City Commission From: Planning & Economic Development Departmentd3 C.. RE: Set Public Hearing for Amendment to Brownfield Plan- Vida Nova at Edison Landing SUMMARY OF REQUEST: To approve the attached resolution setting a public hearing for an amendment for the Brownfield Plan, and notifying taxing jurisdictions of the Brownfield Plan Amendment including the opportunity to express their views and recommendations regarding the proposed amendment at the public hearing. The amendment is for the inclusion of property owned DDLH, LLC, known as Vida Nova at Edison Landing, located at 160 & 190 Viridian Drive, in the Brownfield Plan. FINANCIAL IMPACT: There is no direct financial impact in including the project in the Brownfield Plan, although the redevelopment of the site into residential condominiums will eventually add to the tax base in Muskegon. BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: To approve the attached resolution and authorize the Mayor and Clerk to sign the resolution. COMMITTEE RECOMMENDATION: The Brownfield Redevelopment Authority met on September 5, 2006 and approved the Brownfield Plan Amendment and recommends the approval of the Brownfield Plan Amendment to the Muskegon City Commission. In addition, the Brownfield Redevelopment Authority recommends that the Muskegon City Commission set a public hearing on the Plan Amendment for October 10, 2006. RESOLUTION NOTIFYING TAXING UNITS AND CALLING PUBLIC HEARING REGARDING APPROVAL OF AMENDMENTS TO THE BROWNFIELD PLAN OF THE CITY OF MUSKEGON BROWNFIELD REDEVELOPMENT AUTHORITY 2006-76(b) City of Muskegon County of Muskegon, Michigan Minutes of a Regular Meeting of the City Commission of the City of Muskegon, County of Muskegon, Michigan (the "City"), held in the City offices, on the 12th day of September, 2006, at 5:30 o'clock p.m., prevailing Eastern Time. PRESENT: Members Wierenga, Carter, Davis, Gawron, Shepherd, Spataro, and Warmington ABSENT: Members None The following preamble and resolution were offered by Member _G_a_w_r_o_n_ _ _ _ and supported by Member Spataro WHEREAS, the City of Muskegon, County of Muskegon, Michigan (the "City") is authorized by the provisions of Act 381, Public Acts of Michigan, 1996, as amended ("Act 381"), to create a brownfield redevelopment authority; and WHEREAS, pursuant to Act 381, the City Commission of the City duly established the City of Muskegon Brownfield Redevelopment Authority (the "Authority"); and WHEREAS, in accordance with the provisions of Act 381, the Authority has prepared and approved Brownfield Plan Amendments to include Vida Nova at Edison Landing, and WHEREAS, the Authority has forwarded the Brownfield Plan Amendments to the City Commission requesting its approval of the Brownfield Plan Amendments and WHEREAS, prior to approval of the Brownfield Plan Amendments, the Muskegon City Commission desires to hold a public hearing in connection with consideration of the Brownfield Plan Amendments as required by Act 381; and WHEREAS, prior to approval of the Brownfield Plan Amendments, the City Commission is required to provide notice and a reasonable opportunity to the taxing jurisdictions levying taxes subject to capture to express their views and recommendations regarding the Brownfield Plan Amendments. NOW, THEREFORE, BE IT RESOLVED THAT: 1. The City Commission hereby acknowledges receipt of the Brownfield Plan Amendments from the Authority and directs the City Clerk to send a copy of the proposed Brownfield Plan Amendments to the governing body of each taxing jurisdiction in the City, notifying them of the City Commission's intention to consider approval of the Brownfield Plan Amendments [after the public hearing described below]. 2. A public hearing is hereby called on the 10111 of October, 2006 at 5:30 p.m., prevailing Eastern Time, in the City Hall Commission Chambers to consider adoption by the City Commission of a resolution approving the Brownfield Plan Amendments. 3. The City Clerk shall cause notice of said public hearing to be published in the Muskegon Chronicle, a newspaper of general circulation in the City, twice before the public hearing. The first publication of the notice shall be not less than 20 days or more than 40 days before the date set for the public hearing. The notice shall be published as a display advertisement prominent in size. 4. The notice of the hearing shall be in substantially the following form: CITY OF MUSKEGON COUNTY OF MUSKEGON, STATE OF MICHIGAN PUBLIC HEARING ON .AN AMENDMENT TO THE MUSKEGON BROWNFIELD PLAN, AS APPROVED BY THE CITY OF MUSKEGON BROWNFIELD REDEVELOPMENT AUTHORITY TO ALL INTERESTED PERSONS IN THE CITY OF MUSKEGON: PLEASE TAKE NOTICE that the Muskegon City Commission of the City of Muskegon, Michigan, will hold a public hearing on October 10, 2006, at 5:30p.m., prevailing Eastern Time in the City Hall Commission Chambers located at 933 Terrace Street, Muskegon, Michigan, to consider the adoption of a resolution approving a Brownfield Plan Amendment for the City of Muskegon Brownfield Redevelopment Authority pursuant to Act 381 of the Public Acts of Michigan of 1996, as amended. The property to which the proposed Brownfield Plan Amendment applies is: Vida Nova at Edison Landing 160 & 190 Vi rid ian Drive Muskegon, Michigan Copies of the proposed Brownfield Plan Amendment are on file at the office of the City Clerk for inspection during regular business hours. At the public hearing, all interested persons desiring to address the City Commission shall be afforded an opportunity to be heard in regard to the approval of the Brownfield Plan Amendments for the City of Muskegon Brownfield Redevelopment Authority. All aspects of the Brownfield Plan Amendments will be open for discussion at the public hearing. FURTHER INFORMATION may be obtained from the City Clerk. This notice is given by order of the City Commission of the City of Muskegon, Michigan. Linda S. Potter, Acting City Clerk 5. All resolutions and parts of resolutions insofar as they conflict with the provisions of this resolution be and the same hereby are rescinded. AYES: Members Wierenga, Carter, Davis, Gawron, Shepherd, Spataro, and Warmington NAYS: Members None RESOLUTION DECLARED ADOPTED. Linda S. Potter, Acting City Clerk I hereby certify that the foregoing is a true and complete copy of a resolution adopted by the City Commission of the City of Muskegon, County of Muskegon, State of Michigan, at a regular meeting held on September 12, 2006, and that said meeting was conducted and public notice of said meeting was given pursuant to and in full compliance with the Open Meetings Act, being Act 267, Public Acts of Michigan, 1976, as amended, and that the minutes of said meeting were kept and will be or have been made available as required by said Act. City Clerk Commission Meeting Date: September 12, 2006 Date: August29,2006 To: Honorable Mayor and City Commissioners From: Planning & Economic Development cJ>L RE: Extension of Contract to Market Seaway Industrial Park SUMMARY OF REQUEST: In 2004 C & A Commercial Real Estate was selected as the company to market Seaway Industrial Park properties, as well as one property located on Getty Street. A nine-month real estate agreement was originally signed by the Mayor, with a six-month extension signed by the City Manager in December 2004. City Commission grant C & A Commercial Real Estate another six-month extension in August 2005 and again in February 2006. Staff feels that Commission should review the performance of C & A Commercial Real Estate in order to determine if there should be another extension of the agreement for a six-month time period. FINANCIAL IMPACT: The continued timely sale and development of these properties will bring more jobs to Muskegon in the near future, thus additional income tax being generated. BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: COMMITTEE RECOMMENDATION: 8/29/2006 Resolution No. 2006-76 (c) MUSKEGON CITY COMMISSION RESOLliTION APPROVING MARKETING CONTRACT FOR SEAWAY INDUSTRIAL PARK WHEREAS, the City of Muskegon has completed the development of Seaway Industrial Park; and WHEREAS, the City of Muskegon believes it is important that the property within the park be sold in a timely manner; and WHEREAS, a Request for Proposals (RFP) was solicited from area commercial real estate agencies for the purpose of marketing Seaway Industrial Park to a wider area; and WHEREAS, C & A Commercial Real Estate submitted the proposal that reflects the best interests of the City; and WHEREAS, an extension of the present real estate agreement is in the best interest ofthe City. NOW THEREFORE BE IT RESOLVED that the Muskegon City Commission does authorize the Mayor to sign on behalf ofthe City, an extension of the real estate agreement with C & A Commercial Real Estate for the purpose of marketing industrial property in Seaway Industrial Park. Adopted this 12th day of September 2006. AYES: Carter, Davis, Gawron, Shepherd, Spataro, Warmington, and Wierengo NAYS: None ABSENT: No ne BY: ATTEST: dndtJ sJ Linda S. Potter, CMC /JtaA Acting City Clerk 2006-76(c) 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 September 12, 2006. o0n;i;; d . ~ Linda S. Potter, CMC Acting City Ckerk To: Bryon Mazade, City Manager Cathy Brubaker-Clark, Economic and Community Development Director Lonna Angullm, Planner From: Norm Cwmingham and Dave Wendtland Subject: Seaway Industrial Park Date: September ll, 2006 We are providing this report as a benclunark of our efforts to market and sell the City's Seaway Industrial Park and Renaissance Zone. Our approach to marketing this property is to market the advantages of the sites and zone to the broadest audience of potential buyers through the several media selections as noted below. We believe we have been successful in getting this message out even in the sluggish economy Michigan and especially West Michigan has experienced over the past two years. We have assisted the City close on three properties and have one pending resulting in two new businesses locating in Muskegon- upon closing the pending purchase, and two retained and expanded. We have attracted more than twenty prospects to tour the sites, sent more than 600 email listings to prospects and have had many "hits" on our MLS listings. Details follow: I. Listing Agreement- The Listing Agreement provides for an incentive to attract other brokers- a 55% share of the commission to the selling broker. 2. Listing/Marketing Packet- A comprehensive Marketing Packet was prepared including a) the Listings b) Investment Schedule c) Sample Development Agreement and, d) the Site Plan. This has reduced the time needed to arrive at an acceptable purchase agreement and facilitates good faith efforts between the City, Buyers and C&A Commercial. 3. Marketing Venues- C&A has exceeded the initial marketing program through expanded use of Commercial Advertising Websites while continuing standard listing venues and on site signage. a. SWMRIC - Seaway Lots have been continually posted on the Regional MLS. This provides access for Brokers and the general public. Since March of this year the listings have been accessed over 200 times by Brokers and over 30 times by non-brokers not including lots already sold. b. C&A Commercial- We continue to post the Seaway Lots on our web site. c. Loopnet- Loopnet is a National Network for Commercial Brokers and accessible to over 600,000 members. The listings have attracted over 5000 "hits" and over 150 emails have been sent to prospects. d. CIMLS - The Seaway lots have been posted on this site as well; although accessible to all Brokers and prospects, it does not track users. e. Home Magazine - C&A is the only CommerciaVIndustrial Broker in West Michigan utilizing this marketing venue. Over seven thousand are distributed monthly in Muskegon, Newaygo, Oceana and Ottawa Counties. f. Business Direct Weekly- The Listing in BDW covers alllO counties of West Michigan. 4. Clients/Prospects- We have conducted over 20 on site tours and located three businesses in the City and have a fourth pending. We have also presented three other purchase offers which for various reasons did not close. Our Marketing Program exceeds our competitors, and we continue to receive inquiries and requests for information on Muskegon and the Seaway Industrial Park. We look forward to continuing the good working relationship we have developed with the City through an extension of our listing agreement. If you have any questions or require additional information please contact either of us. Commission Meeting Date: September 12,2006 Date: August 29, 2006 To: Honorable Mayor & City Commission From: Planning & Economic Development Department c0c_ RE: Extension of Tool & Die Recovery Zone Status for Northern Machine Tool SUMMARY OF REQUEST: To approve the attached Resolution extending the Tool & Die Recovery Zone for Northern Machine Tool. The City originally granted 15 years but other municipalities only granted 12 years for other companies in the Coalition, making Northern Machine Tool only eligible for 12 years. The law has since been amended, allowing differing lengths of time for different companies in the coalition. Northern Machine tool is now requesting an extension to take advantage of the full 15 years. FINANCIAL IMPACT: The original estimates were that the City will forego approximately $7,300.00 per year for a total of approximately $109,545 in taxes for the 15 year period of the zone. BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: To approve the Resolution extending the Tool & Die Recovery Zone for Northern Machine Tool, and authorize the Mayor and Clerk to sign. COMMITTEE RECOMMENDATION: None. RESOLUTION FOR EXTENDING YEARS City of Muskegon Muskegon County, Michigan Resolution 2006-76 (d) A RESOLUTION TO EXTEND THE DURATION OF A TOOL AND DIE RENAISSANCE RECOVERY ZONE ("Recovery Zone") FOR Northern Machine Tool Company WHERAS, 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 foreign productivity; WHEREAS, the designation of a Recovery Zone will temporarily reduce the tax burden paid by the business enabling it to reposition itself to compete globally, and; WHEREAS, the business has entered into a collaborative agreement with other business entities that have the appropriate North American Industrial classification, 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 Recovery Zone, property within that zone will be exempt from taxes levied by the township, county, and other units of government as provided under the ACT, and; WHEREAS, we estimate that the tax revenue lost would be a small fraction of the benefits the designation of a Recovery Zone will bring the community. WHEREAS City of Muskegon had previously supported a Recovery Zone for this property for a period of up to 15 years in a previous resolution adopted on September 13, 2005. WHEREAS, at the time of Recovery Zone designation by the State of Michigan all companies were required to have the same time period equal to the least amount a years approved by any single jurisdiction. For the Whitehall Township Tooling Coalition this length of Zone designation was 12 years that would expire on 12/31/2017. WHEREAS, recent legislation has allowed individual businesses in a Recovery Zone to have differing time periods for the abatement. THEREFORE BE IT RESOLVED, that City of Muskegon requests that the State of Michigan extend the duration of the Recovery Zone of the company identified by this resolution for an additional3 years and would expire on 12/31/2020. 2006-76(d) Adopted this 1ih Day of September 2006. Ayes: Davis, Gawron, Shepherd, Spataro, Warmington, Wierenga, and Carter Nays: None Absent: None ATTEST: ~ Linda Potter, Acting City Clerk CERTIFICATION I hereby certify that the foregoing constitutes a true and complete copy of a resolution adopted by the Muskegon City Commission, County of Muskegon, Michigan, at a regular meeting held on September 12, 2006. ~ &OA Linda Potter, Acting City Clerk AGENDA ITEM N O . - - - - - - - CITY COMMISSION M E E T I N G - - - - - - - - - - TO: Honorable Mayor and City Commissioners FROM: Bryon L. Mazade, City Manager DATE: September 6, 2006 RE: Fire Station Construction Contract SUMMARY OF REQUEST: To award a contract for the construction of a new central fire station at the corner of Terrace Street and Western Avenue. A recommendation will be made at the commission meeting after the bids can be analyzed. FINANCIAL IMPACT: Approximately $3.5 million. BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: Staff will recommend the lowest responsible bidder at the meeting on Tuesday. COMMITTEE RECOMMENDATION: None. pb/0/AGENDA- FIRE STA CNSTRCTN CONTRACT 090606 FIRE STATION BIDS FIRE STA BIDS 090506 9/6/2006 2:55 PM HOOKER I DEJONG ARCHITECTS & ENGINEERS, P.C. - 410 TERRACE PLAZA MUSKEGON, MICHIGAN 49440 Post BID SUMMARY Project: City on Muskegon Fire Station Project No.: 4·0185 Bid Date: September 11i2006 CONTRACTORS Lakewood Beckering BASE BID $3,175,571 $3,212,890 ALT#1 $19,000 -$27,000 Total Base Bid $3,194,571 3,185, 890 1. Add Galv. to Tower $5,975 $1,500 2. F.R. pl:iWOOd roof decking $3,229 $3,500 3 N.C. N.C. 4 N.C. N.C. 5 N.C. N.C. 6. Bunk Clarification $100 N.C. 7. Casework Clarification $4,833 N.C. 8 N.C. N.C. 9 N.C. N.C. 10 N.C. N.C. 11 N.C. N.C. 12. Corridor door 1/2hr rating $180 $180 Total change to Base Bid $14,317 $5,180 Adjusted BASE BID $3,208,888 $3,191,070
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