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CITY OF MUSKEGON
CITY COMMISSION MEETING
OCTOBER 10, 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:
A. Annual Service Awards. CIVIL SERVICE
o INTRODUCTIONS/PRESENTATION:
o CONSENT AGENDA:
A. Approval of Minutes. CITY CLERK
B. Accept Resignations and Make Appointments to Various Boards and
Committees. CITY CLERK
C. SECOND READING: Rezoning Request for Prooertv Located at 699
Pulaski Avenue. PLANNING & ECONOMIC DEVELOPMENT
D. SECOND READING: Rezoning Request for Property Located at 236
Monroe Avenue. PLANNING & ECONOMIC DEVELOPMENT
E. SECOND READING: Rezoning Request for Property Located at 1745
Madison Street. PLANNING & ECONOMIC DEVELOPMENT
F. Sale of Buildable Vacant Lot at 1259 Marquette Avenue. PLANNING &
ECONOMIC DEVELOPMENT
G. Ordinance Amendment - Clarification of Delay Between Historic District
Commission and Demolition. PLANNING & ECONOMIC DEVELOPMENT
H. Budgeted Vehicle Purchases. PUBLIC WORKS
I. Repair of Middle Roof Section - Public Service Building. PUBLIC WORKS
J. Request to Purchase Video Enhancement Software. PUBLIC SAFETY
K. West Michigan Metropolitan Transportation Plan (WestPian). CITY
MANAGER
L. Quit Claim Deed to CSX Transportation for Shoreline Dr. ENGINEERING
o PUBLIC HEARINGS:
A. Amendment to Brownfield Plan - Redevelopment of the Century Club &
Daniels and Redevelopment of Muskegon Savings Bank. PLANNING &
ECONOMIC DEVELOPMENT
B. Amendment to Brownfield Plan - Vida Nova at Edison Landing.
PLANNING & ECONOMIC DEVELOPMENT
o COMMUNICATIONS:
o CITY MANAGER'S REPORT:
o UNFINISHED BUSINESS:
o NEW BUSINESS:
A. Plan to End Homelessness- Continuum of Care Resolution. PLANNING
& ECONOMIC DEVELOPMENT
B. Financial Policies. FINANCE
C. Sale of Public Improvement Bonds. FINANCE
D. Cell Tower Lease. PUBLIC WORKS
E. Request for Flow Transfer. PUBLIC WORKS
F. Sale of Parcel in Seaway Industria! Park. PLANNING & ECONOMIC
DEVELOPMENT
G. Agreement to Trade Used Shotguns for Rifle Lighting Systems. PUBLIC
SAFETY
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 atfached 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 ATTEND THE MEETING UPON TWENTY FOUR HOUR NOTICE TO THE CITY OF MUSKEGON. PLEASE CONTACT LINDA
POTTER, ACTING CITY CLERK, 933 TERRACE STREET, MUSKEGON, Ml 49440 OR BY CALLING (231) 724-6705 OR
TOO: (231) 724-4172.
Civil Service Department
Memo
To: Mayor Warmington and City Commissioners
From: Karen Scholle, Civil Service Personnel Director
CC: B. Mazade, L. Slaughter, L. Potter
Date: September 20, 2006
Re: October 10, 2006 City Commission Meeting and 2006 Employee SetVice Awards
At the October 10 City Commission meeting, the "Honors and Awards" portion will include
recognition of City employees incurring five-year milestone anniversaries in 2006 and presentation
of longevity awards to them. There are 42 employees eligible for awards this year. Attached is your
invitation to the reception. If possible, please stop in to congratulate our employees as your
acknowledgment is meaningful to them.
This is the plan for the 1Oth:
~ You are invited to attend a light reception with the awardees and their significant others, which will
take place from 4:00-5:15 p.m. in Room 103.
~ Service award recipients received invitations for presentation of their certificates during the "Honors
and Awards" portion of the City Commission meeting. RSVP's for this are now in process, with plans
to update the Civil Service President and the Mayor on employee attendance on the 91h of October.
~ During award presentations, will the Mayor, City Commissioners and Civil Service Commissioners
please stand down in front of the Commission seating and congratulate the awardees.
~ When the "Honors and Awards" segment of the Commission meeting begins, will the Mayor please
announce the names of employees receiving the various longevity awards of 5, 10, 15, 20, and 25
years of service to the City. The Civil Service President will hand out each employee's award.
~ Staff will be present to take photos.
(While we continuously strive for an increased employee presence, historically a disappointingly
small number of people participate in the reception and presentations.)
If you have any questions concerning this event, please contact me at phone number 724-6719.
Thank you.
Date: October 10, 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, September 26, 2006.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval of the minutes.
CITY OF MUSKEGON
CITY COMMISSION MEETING
OCTOBER 10, 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, October 10,
2006.
Mayor Warmington opened the meeting with a prayer from Elder George
Monroe from the Evanston Avenue Baptist 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 Lawrence Spataro, Sue Wierengo, Chris Carter, Kevin Davis, and
Clara Shepherd, City Manager Bryon Mazade, City Attorney John Schrier, and
Acting City Clerk Linda Potter.
2006-82 HONORS AND AWARDS:
A. Annual Service Awards. CIVIL SERVICE
Mayor Warmington and the Commissioners presented the Service Awards to the
City employees thanking them for their years of service.
2006-83 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, September 26, 2006.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Approval of the minutes.
B. Accept Resignations and Make Appointments to Various Boards and
Committees. CITY CLERK
SUMMARY OF REQUEST: To accept resignations from Andrea Riegler, Aime
Brown, Tom Russo, Charles Nelson and Ronald Allen; and to appoint Roger
Morgenstern to Public Relations; Linda Wood and Karen Panozzo to Historic
District Commission; Louis Spyke to Board of Canvassers and Election
Commission; and Steven Lague to Construction Code Board of Appeals.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Approval
COMMITTEE RECOMMENDATION: The Community Relations Committee
recommended the appointments at their October 2nd meeting.
C. SECOND READING: Rezoning Request for Property Located at 699
Pulaski Avenue. PLANNING & ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: Request to rezone the property located at 699 Pulaski
Avenue, from 1-1, Light Industrial district to B-4, General Business district.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Staff recommends approval of the request.
COMMITTEE RECOMMENDATION: The Planning Commission recommended
approval of the request at their September 14th meeting. The vote was
unanimous with T. Michalski and B. Larson absent.
D. SECOND READING: Rezoning Request for Property Located at 236
Monroe Avenue. PLANNING & ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: Request to rezone the property located at 236 Monroe
Avenue, from R-1, One Family Residential district to B-2, Convenience and
Comparison Business district.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Staff recommends approval of the request.
COMMITTEE RECOMMENDATION: The Planning Commission recommended
approval of the request at their September 14th meeting. The vote was
unanimous with T. Michalski and B. Larson absent.
E. SECOND READING: Rezoning Request for Property Located at 1745
Madison Street. PLANNING & ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: Request to rezone the property located at 17 45
Madison Street, from 1-1, Light Industrial district to R-1, One Family Residential
district.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Staff recommends approval of the request.
COMMITTEE RECOMMENDATION: The Planning Commission recommended
approval of the request at their September 14th meeting. The vote was
unanimous with T. Michalski and B. Larson absent.
F. Sale of Buildable Vacant Lot at 1259 Marquette Avenue. PLANNING &
ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: To approve the sale of a vacant buildable lot at 1259
Marquette Avenue to Vernon and Dorothy Harris. The lot is 116.45 x 132ft. and is
being offered to Mr. and Mrs. Harris for $9,000. A single family home will be
constructed. The home will have a two stall attached garage, three bedrooms,
two bathrooms, and a basement. The square footage of the home will exceed
what is required by the policy.
FINANCIAL IMPACT: The sale of this lot for the construction of a single family
home 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 Clerk to sign said resolution and deed.
G. Ordinance Amendment- Clarification of Delay Between Historic District
Commission and Demolition. PLANNING & ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: To approve the ordinance amendment clarifying the
delay between Historic District Commission and demolition. The current
ordinance is not clear on when there is a six-month delay and when a structure
can be demolished immediately. The amended ordinance makes it clear that
there is only a six-month delay on structures that are of historic or architectural
worth.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To approve the ordinance amendment.
I. Repair of Middle Roof Section - Public Service Building. PUBLIC WORKS
SUMMARY OF REQUEST: Bids were taken to repair the middle roof section of the
Public Service Building on September 22, 2006. This project is to eliminate
leakage and extend the roof warranty for another 10 years. The low bidder was
East Muskegon Roofing & Sheet Metal for $21 ,715.
FINANCIAL IMPACT: $50,000 was budgeted in the Public Service Building Fund
for middle section (shop area) roof repair or replacement in 2006.
BUDGET ACTION REQUIRED: None is needed.
STAFF RECOMMENDATION: Accept the low bid of $21,715 and authorize staff to
execute an agreement with the successful bidder to complete the project.
J. Request to Purchase Video Enhancement Software. PUBLIC SAFETY
SUMMARY OF REQUEST: Police Department staff is requesting that the
Commission approve an agreement between the City and Cognitech, Inc., of
Pasadena, California. In return, Cognitech will provide the department with
video enhancement software. This software will provide officers with the
capability of enhancing still photographs which can be obtained from
videotape. Increasingly, businesses and homeowners are utilizing video for
security reasons. There is no local assistance available and on occasion we
have had to transport videos to a state police lab in Lansing. Therefore we feel
that it is important for us to obtain and use this technology. Cognitech is also
the vendor utilized by the Michigan State Police. Cognitech submitted a bid of
$15,723.40 for software, support and training. We did receive a quote from one
other company. Salient Stills of Boston, Massachusetts submitted a bid of
$18,000 for software, support and training.
FINANCIAL IMPACT: Funds from the Criminal Forfeiture Account will be used to
purchase this software.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Approval of the agreement.
K. West Michigan Metropolitan Transportation Plan (WestPian). CITY
MANAGER
SUMMARY OF REQUEST: To approve the City of Muskegon's portion of the
WestPian dues. This organization determines projects and distributes federal
transportation funds.
FINANCIAL IMPACT: $16,040
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To approve this request.
L. Quit Claim Deed to CSX Transportation for Shoreline Dr. ENGINEERING
SUMMARY OF REQUEST: Authorize the Mayor & Clerk to execute the Quit Claim
Deed transferring property to CSX. This transaction would conclude the
obligation of both parties under which CSX had to relinquish their rights to the
properties needed for the construction of Shoreline Drive.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To authorize the Mayor and Clerk to sign off on the
quit claim deed and direct staff to record both deeds, the one from CSX to the
City and the one from the City to CSX.
Motion by Vice Mayor Gawron, second by Commissioner Shepherd to approve
the Consent Agenda as read minus item H.
ROLL VOTE: Ayes: Warmington, Wierengo, Carter, Davis, Gawron, Shepherd,
and Spataro
Nays: None
MOTION PASSES
2006-84 ITEMS REMOVED FROM THE CONSENT AGENDA:
H. Budgeted Vehicle Purchases. PUBLIC WORKS
SUMMARY OF REQUEST: Approval to purchase two Ford Rangers from Tony
Betten & Sons Ford.
FINANCIAL IMPACT: Total Cost $26,385
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Approve purchase.
Motion by Commissioner Carter, second by Commissioner Spataro to approve
the purchase of two Ford Rangers from Tony Betten & Sons Ford.
ROLL VOTE: Ayes: Gawron and Spataro
Nays: Wierengo, Carter, Davis, Shepherd and Warmington
MOTION FAILS
Motion by Commissioner Carter, second by Commissioner Wierengo to award
the purchase of two Ford Rangers to Great Lakes Ford for $13,226 each.
ROLL VOTE: Ayes: Carter, Davis, Shepherd, Warmington, and Wierengo
Nay~: Gawron and Spataro
MOTION PASSES
2006-85 PUBLIC HEARINGS:
A. Amendment to Brownfield Plan - Redevelopment of the Century Club &
Daniels and Redevelopment of Muskegon Savings Bank. PLANNING &
ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: To hold a public hearing and approve the resolution
approving and adopting amendments for the Brownfield Plan. The
amendments are for the inclusion of property owned by Western Avenue
Properties, LLC and Port City Construction & Development Services, LLC in the
Brownfield Plan.
FINANCIAL IMPACT: There is no direct financial impact in approving the
Brownfield Plan amendments, although the redevelopment of the property into
a mixed-use development will add to the tax base of the City of Muskegon.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To hold the Public Hearing and approve the
resolution and authorize the Mayor and Clerk to sign the resolution.
COMMITTEE RECOMMENDATION: The Muskegon City Commission set the public
hearing for October 10, 2006, at their September 12, 2006, meeting. Since that
time, a notice of the public hearing has been sent to taxing jurisdictions, and it
has been published twice in the Muskegon Chronicle. In addition, the
Brownfield Redevelopment Authority approved the Plan amendment on
September 5, 2006, and further recommends that the Muskegon City
Commission approve the Plan amendment.
The Public Hearing opened at 5:59 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 6:04 p.m. and approve the amendments to the Brownfield Plan
redevelopment of the Century Club & Daniels and redevelopment of Muskegon
Savings Bank.
ROLL VOTE: Ayes: Davis, Gawron, Shepherd, Spataro, Warmington, Wierengo,
and Carter
Nays: None
MOTION PASSES
B. Amendment to Brownfield Plan - Vida Nova at Edison Landing.
PLANNING & ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: To hold a public hearing and approve the resolution
approving and adopting amendments for the Brownfield Plan. The
amendments are for the inclusion of property owned by DDLH, LLC in the
Brownfield Plan.
FINANCIAL IMPACT: There is no direct financial impact in approving the
Brownfield Plan amendments, although the redevelopment of the property into
a residential condominium project will add to the tax base of the City of
Muskegon.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To hold the public hearing and approve the
resolution and authorize the Mayor and Clerk to sign the resolution.
COMMITTEE RECOMMENDATION: The Muskegon City Commission set the public
hearing for October 10, 2006, at their September 12, 2006, meeting. Since that
time, a notice of the public hearing has been sent to taxing jurisdictions, and it
has been published twice in the Muskegon Chronicle. In addition, the
Brownfield Redevelopment Authority approved the Plan amendment on
September 5, 2006, and further recommends that the Muskegon City
Commission approve the Plan amendment.
The Public Hearing opened at 6:05 p.m. to hear and consider any comments
from the public. No public comments were heard.
Motion by Commissioner Spataro, second by Commissioner Davis to close the
Public Hearing at 6:07 p.m. and adopt the amendment to the Brownfield Plan for
Vida Nova at Edison Landing.
ROLL VOTE: Ayes: Gawron, Shepherd, Spataro, Warmington, Wierengo, Carter,
and Davis
Nays: None
MOTION PASSES
2006-86 NEW BUSINESS:
A. Plan to End Homelessness- Continuum of Care Resolution. PLANNING
& ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: Judy Kell, Continuum of Care Coordinator, has
requested that the City Commission endorse the Ten Year Plan to end
homelessness.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To approve the resolution and authorize the Mayor
and Clerk's signatures.
Motion by Commissioner Spataro, second by Vice Mayor Gawron to approve
the resolution for Continuum of Care and authorize the Mayor and Clerk to sign.
ROLL VOTE: Ayes: Shepherd, Spataro, Warmington, Wierengo, Carter, Davis,
and Gawron
Nays: None
MOTION PASSES
B. Financial Policies. FINANCE
SUMMARY OF REQUEST: Periodically the Financial Policies of the City are
reviewed and revised to include policy changes or revisions adopted by the
Commission or necessitated to come into compliance with state or federal law
since the last update. The last time the Policies were updated was March 2002.
Included with this update are two policies not previously adopted by the
Commission, the Cell Phone Policy created to comply with IRS regulations and
the Pensions and Other Post Employment Benefits Policy created to follow
Governmental Accounting Standards Board guidelines.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Approve the City of Muskegon Financial Policies as
updated October 2006.
Motion by Vice Mayor Gawron, second by Commissioner Carter to approve the
City of Muskegon Financial Policies as updated October 2006.
ROLL VOTE: Ayes: Spataro, Warmington, Wierengo, Carter, Davis, Gawron, and
Shepherd
Nays: None
MOTION PASSES
C. Sale of Public Improvement Bonds. FINANCE
SUMMARY OF REQUEST: Bids will be opened at 2:30 p.m. on Tuesday, October
10, 2006, for sale of $5,400,000 public improvement bonds as previously
authorized by the City Commission. Proceeds of the bond sale will be used to
finance construction of a new Central Fire Station and various recreation
projects. The City Commission is asked to adopt the awarding resolution
assuming acceptable bids are received.
FINANCIAL IMPACT: Interest costs will be known at the time bids are opened
and the Commission will be provided with a summary.
BUDGET ACTION REQUIRED: Debt service costs will be included in the City's
budget for the life of the bonds.
STAFF RECOMMENDATION: Approval of the awarding resolution.
Motion by Vice Mayor Gawron, second by Commissioner Davis to approve the
awarding resolution for the sale of the public improvement bonds to Morgan
Keegan for 4.149%.
ROLL VOTE: Ayes: Warmington, Wierengo, Carter, Davis, Gawron, Shepherd,
and Spataro
Nays: None
MOTION PASSES
D. Cell Tower lease. PUBLIC WORKS
SUMMARY OF REQUEST: Verizon Wireless has proposed to construct a monopole
cellular tower on City property at the location of the Harvey Street surface water
reservoir. By redesigning how we use this piece of property, sufficient land was
made available to accommodate the request for a cellular tower. The cellular
tower overlay district that was previously located at the Public Service Building
was relocated to the Water Reservoir site by the Zoning Board. The revenues
generated from the rental of this site, which begin at $1,500 per month and
escalate at a rate of 3% per year starting in 2008, shall be used to offset
expenses of maintaining the five-million gallon water reservoir.
Motion by Commissioner Carter, second by Commissioner Spataro to approve
the cell tower lease to Verizon Wireless.
ROLL VOTE: Ayes: Wierengo, Carter, Davis, Gawron, Shepherd, Spataro, and
Warmington
Nays: None
MOTION PASSES
E. Request for Flow Transfer. PUBLIC WORKS
SUMMARY OF REQUEST: That the City of Muskegon grant a request to transfer .05
Million Gallons Per Day of its allocation of 10.84 Million Gallons Per Day to Cedar
Creek Township.
Motion by Commissioner Spataro, second by Commissioner Shepherd to
approve the request for the flow transfer with Cedar Creek Township for .05
Million Gallons Per Day.
ROLL VOTE: Ayes: Carter, Davis, Gawron, Shepherd, Spataro, Warmington, and
Wierengo
Nays: None
MOTION PASSES
F. Sale of Parcel in Seaway Industrial Park. PLANNING & ECONOMIC
DEVELOPMENT
SUMMARY OF REQUEST: To approve the sale of Lot #2 in Seaway Industrial Park
to Dan Hoe Excavating, 13664 Ruckys Road, Holland, Ml 49424. The purchase
price is $135,000 (asking price $144,000). This company is currently located in
Holland, but due to increased business in Muskegon, they would like to locate a
satellite plant here. They plan to invest $125,000 to $150,000 in a building and
other site improvements. Expected employment is at least two full-time
employees, possibly more, depending on the season.
FINANCIAL IMPACT: The sale of this lot. while it is located in a Renaissance Zone,
will still generate City of Muskegon income tax.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To approve the resolution and to authorize both the
Mayor and the Clerk to sign said resolution, deed, and all other necessary
documents.
Motion by Commissioner Shepherd, second by Commissioner Carter to approve
the sale of Lot #2 in the Seaway Industrial Park to Dan Hoe Excavating for
$135,000.
ROLL VOTE: Ayes: Davis, Gawron, Shepherd, Spataro, Warmington, Wierengo,
and Carter
Nays: None
MOTION PASSES
G. Agreement to Trade Used Shotguns for Rifle Lighting Systems. PUBLIC
SAFETY
SUMMARY OF REQUEST: Police Department staff is requesting that the
Commission approve an agreement between the City and Gary's Guns, 4021
East Apple, Muskegon, MI. This agreement will allow the department to obtain
20 new Streamlight Tactical LED Lights and mounts for the AR-15 patrol rifles
which are now in service. In return, Gary's would receive 35 used Remington
870 Shotguns. The department has also received an offer from Michigan Police
Equipment, 6521 Lansing Road, Charlotte, MI. The offer equates to $69 per
shotgun as proposed by Gary's and $80 per shotgun as proposed by Michigan
Police Equipment. As there is no actual money exchange occurring, staff would
like to accept the bid from the Muskegon-area business.
FINANCIAL IMPACT: No expenditure of funds to purchase the lighting systems.
No staff time needed to market the used shotguns.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Approval of the agreement.
Motion by Commissioner Spataro, second by Vice Mayor Gawron to approve
the agreement to trade used shotguns for rifle lighting systems with Gary's Guns.
ROLL VOTE: Ayes: Gawron, Shepherd, Spataro, Warmington, Wierengo, Carter,
and Davis
Nays: None
MOTION PASSES
H. Lease Agreement- Central Dispatch. CITY MANAGER
SUMMARY OF REQUEST: To approve a lease agreement with Muskegon Central
Dispatch for space in the new Central Fire Station.
FINANCIAL IMPACT: The agreement requires Central Dispatch to pay their share
of the debt service and operations costs of the fire station.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To approve the lease agreement.
Motion by Commissioner Spataro, second by Commissioner Shepherd to
approve the lease agreement with Central Dispatch to use the new Central Fire
Station.
ROLL VOTE: Ayes: Shepherd, Spataro, Warmington, Wierengo, Carter, Davis,
and Gawron
Nays: None
MOTION PASSES
ANY OTHER BUSINESS: Commission discussed various items.
PUBLIC PARTICIPATION: Various comments were heard from the public.
ADJOURNMENT: The City Commission Meeting adjourned at 6:36p.m .
Respectfully submitted,
Linda Potter, CMC
Acting City Clerk
Date: October 10, 2006
To: Honorable Mayor and City Commissioners
From: City Clerk
RE: Accept Resignations and Make Appointments to
Various Boards and Committees
SUMMARY OF REQUEST: To accept resignations from:
Andrea Riegler- Public Relations
Aime Brown and Tom Russo- Historic District Commission
Charles Nelson - Board of Canvassers/Election Commission
Ronald Allen - Land Reutilization Committee
To make the following appointments:
Roger Morgenstern- Public Relations
Linda Wood and Karen Panozzo- Historic District Commission
Louis Spyke - Board of Canvassers/Election Commission
Steven Lague- Construction Code Board of Appeals
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: The Community Relations Committee recommended the
appointments at their October 2"d meeting.
Commission Meeting Date: September 26, 2006
Date: September 15, 2006
To: Honorable Mayor and City Commissioners
From: Planning & Economic Development ~
RE: Rezoning request for property located at 699 Pulaski Ave.
SUMMARY OF REQUEST:
Request to rezone the property located at 699 Pulaski Avenue, from 1-1, Light
Industrial district to B-4, General Business district.
FINANCIAL IMPACT:
None
BUDGET ACTION REQUIRED:
None
STAFF RECOMMENDATION:
Staff recommends approval of the request.
COMMITIEE RECOMMENDATION:
The Planning Commission recommended approval of the request at their 9/14
meeting. The vote was unanimous, with T. Michalaski and B. Larson absent.
0:\Pianning\COMMON\Zoning\City Commission ltems\rezone\Approve\2006 Approvals\699 Pulaski Ave.doc
1
CITY OF MUSKEGON
MUSKEGON COUNTY, MICHIGAN
ORDINANCE NO. 2202
An ordinance to amend the zoning map of the City to provide for a zone chanee for
certain properties from I-1 "Light Industrial" to B-4 "General Business".
THE CITY COMMISSION OF THE CITY OF MUSKEGON HEREBY ORDAINS:
The zoning map ofthe City ofMuskegon is hereby amended to change the zoning of the
following described property from I-1, "Light Industrial" to B-4 "General Business":
CITY OF MUSKEGON SEC 31 T1 ON R16W COM @ NW COR OF
SW FRL 1/4 OF SW FRL 114 OF SEC 31 TlON R16W THE 489.76 FT
FOR POB THE 250FT TH S 163FT TH W 250FT TH N 163FT TO
POB
This ordinance adopted:
Ayes: Warmington, Wierenga, Carter, Davis, Gawron, Shepherd, Spataro
Nayes: None
Adoption Date: October 10, 2006
Effective Date: October 24, 2006
First Reading: September 26, 2006
Second Reading: October 10, 2006
CITY OF MUSKEGON
By: ~ sJ. ~
Linda S. Potter, CMC
Acting City Clerk
CERTIFICATE (Rezoning of699 Pulaski Avenue 1-1 to B-4)
The undersigned, being the duly qualified clerk of the City ofMuskegon,
Muskegon County, Michigan, does hereby certify that the foregoing is a true and
complete copy of an ordinance adopted by the City Commission of the City of
Muskegon, at a regular meeting of the City Commission on the 10th day of October,
2006, at which meeting a quorum was present and remained throughout, and that the
original of said ordinance is on file in the records of the City of Muskegon. I further
certify that the meeting was conducted and public notice was given pursuant to and in full
compliance with Act No. 267, Public Acts of Michigan of 1976, as amended, and that
minutes were kept and will be or have been made available as required thereby.
DATED: ------"'-O=ct=o=be:...:::.=...r--'1=--=0'---' 2006.
Linda S. Potter, CMC
Acting Clerk, City of Muskegon
Publish: Notice of Adoption to be published once within ten (1 0) days of final
adoption.
CITY OF MUSKEGON
NOTICE OF ADOPTION
Please take notice that on october 10, 2006, the City Commission of the City of
Muskegon adopted an ordinance amending the zoning map to provide for the change of
zoning ofthe following property from I-1, "Light Industrial" to B-4 "General Business":
CITY OF MUSKEGON SEC 31 TlON R16W COM@ NW COR OF
SW FRL 114 OF SW FRL 114 OF SEC 31 TlON R16W THE 489.76 FT
FOR POB THE 250FT TH S 163FT TH W 250FT TH N 163FT TO
POB
Copies of the ordinance may be viewed and purchased at reasonable cost at the Office of
the City Clerk in the City Hall, 933 Terrace Street, Muskegon, Michigan, during regular
business hours.
This ordinance amendment is effective ten days from the date of this publication.
Published October 14 '2006 CITY OF MUSKEGON
By __~~~----~~---
Linda S. Potter, CMC
Acting City Clerk
PUBLISH ONCE WITHIN TEN (10) DAYS OF FINAL PASSAGE.
Account No. 101-80400-5354
0:\Planning\COMMON\Zoning\City Commission Items\rezone\Approve\2006 Approvals\699 Pulaski Ave.doc 4
Staff Report [EXCERPT]
CITY OF MUSKEGON
PLANNING COMMISSION
REGULAR MEETING
September 14, 2006
Hearing; Case 2006-42: Request to rezone the property at 699 Pulaski Avenue from I-1, Light
Industrial District, to B-4, General Business District, by Anthony Tidswell, Instrio, LLC.
BACKGROUND
Applicant: Anthony Tidswell, Instrio, LLC
Property Address/Location: 699 Pulaski Avenue
Reguest: Rezone from I-1, General Industrial district to B-4, General
Business district
Present Land Use: Vacant building
Zoning: B-4, General Business
STAFF OBSERVATIONS
l. This property was recently occupied by Allquest, a business that did insurance restoration
work. Several other commercial uses were in the building in previous years. The
building has been empty for several years, and lost it legal nonconforming status.
2. The current owner wishes to operate a spray-on truck bed liner business, which requires a
B-4 zoning, rather than I-1.
3. The property to the south and west is B-4, General Business, while the zoning to the
north is I-1, Light Industrial. To the east is the City limits at Seaway Drive.
4. The 1997 Master Plan's Future Land Use Map indicates that this property should be
commercial.
5. The 1997 Mast Land Use Plan, in reference to this sub-area states: "Complete the full
commercial development of that area lying between Henry Street, Laketon Avenue,
Seaway Drive, and Sherman Boulevard".
6. Staff has received no comments regarding this request.
0:\Planning\COMMON\Zoning\City Commission Items\rezone\Approve\2006 Approvals\699 Pulaski Ave. doc
5
City of Muskegon
Planning Commission
Case # 2006-42
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View from Seaway Drive. View from Pulaski Aveuue.
0:\Planning\COMMON\Zoning\City Commission ltcms\rezone\Approve\2006 Approva\s\699 Pulaski Ave.doc 6
STAFF RECOMMENDATION
Staff recommends approval of the request to rezone the subject properties from I-1 to B-4
because the request conforms to the goals and recommendation of the City's 1997 Master Plan.
DELIBERATION
Criteria-based questions typically asked during a rezoning include:
I. What, if any, identifiable conditions related to the petition have changed which justify
the petitioned change in zoning.
2. What are the precedents and the possible effects of precedent that might result from the
approval or denial of the petition?
3. What is the impact of the amendment on the ability of the city to provide adequate
public services and facilities and/or programs that might reasonably be required in the
future if the petition is approved?
4. Does the petitioned zoning change adversely affect the environmental conditions or value
ofthe surrounding property?
5. Does the petitioned zoning change generally comply with the adopted Future Land
Use Plan of the City?
6. Are there any significant negative environmental impacts which would reasonably
occur if the petitioned zoning change and resulting allowed structures were built such as:
a. Surface water drainage problems
b. Waste water disposal problems
c. Adverse effect on surface or subsurface water quality
d. The loss of valuable natural resources such as forest, wetland, historic sites, or
wildlife areas.
7. Is the proposed zoning change a "Spot Zone"?
a. Is the parcel small in size relative to its surroundings?
b. Would the zoning change allow uses that are inconsistent with those allowed in the
vicinity?
c. Would the zoning change confer a benefit to the property owner that is not generally
available to other properties in the area?
d. A spot zone is appropriate if it complies with the Master Plan.
0:\Planning\COMMON\Zoning\City Commission Items\rczone\Approve\2006 Approvals\699 Pulaski A ve.doc 7
DETERMINATION
The following motion is offered for consideration:
I move that the request to rezone the property located at 699 Pulaski Avenue from I-1, Light
Industrial district to B-4, General Business district, as described in the public notice, be
recommended for (approval/denial) to the City Commission pursuant to the City of Muskegon
Zoning Ordinance, and the determination of(compliance/lack of compliance) with the intent of
the City Master Land Use and zoning district intent.
0:\Planning\COMMON\Zoning\City Commission Items\rezone\Approve\2006 Approvals\699 Pulaski Ave.doc 8
Commission Meeting Date: September 26, 2006
Date: September 15, 2006
To: Honorable Mayor and City Commissioners
From: Planning & Economic Development CJO (_
RE: Rezoning request for property located at 236 Monroe Ave.
SUMMARY OF REQUEST:
Request to rezone the property located at 236 Monroe Avenue, from R-1 , One
Family Residential district to B-2, Convenience and Comparison Business district.
FINANCIAL IMPACT:
None
BUDGET ACTION REQUIRED:
None
STAFF RECOMMENDATION:
Staff recommends approval of the request.
COMMITIEE RECOMMENDATION:
The Planning Commission recommended approval of the request at their 9/14
meeting. The vote was unanimous, with T. Michalaski and B. Larson absent.
0:\Pianning\COMMON\Zoning\City Commission ltems\rezone\Approve\2006 Approvals\236 Monroc.doc
1
CITY OF MUSKEGON
MUSKEGON COUNTY, MICHIGAN
ORDINANCE NO. 2203 .
An ordinance to amend the zoning map of the City to provide for a zone change for
certain properties from R-1 "One Family Residential" to B-2 "Convenience and
Comparison Business".
THE CITY COMMISSION OF THE CITY OF MUSKEGON HEREBY ORDAINS:
The zoning map of the City ofMuskegon is hereby amended to change the zoning of the
following described property from R-1, "One Family Residential" to B-2 "Convenience
and Comparison Business":
CITY OF MUSKEGON REVISED PLAT OF 1903 E l/2 LOT 10 BLK 367
This ordinance adopted:
Ayes: Warmington, Wierenga, Carter, Davis, Gawron, Shepherd, Spataro
Nayes: None
Adoption Date: October 10, 2006
Effective Date: October 24, 2006
First Reading: September 26, 2006
Second Reading: October 10, 2006
CITY OF MUSKEGON
By: ~ sJ. /lt0,
Linda S. Potter, CMC
Acting City Clerk
CERTIFICATE (Rezoning of236 Momoe Avenue R-1 to B-2)
The undersigned, being the duly qualified clerk of the City ofMuskegon,
Muskegon County, Michigan, does hereby certify that the foregoing is a true and
complete copy of an ordinance adopted by the City Commission of the City of
Muskegon, at a regular meeting of the City Commission on the 10th day of October,
2006, at which meeting a quorum was present and remained throughout, and that the
original of said ordinance is on file in the records of the City of Muskegon. I further
certify that the meeting was conducted and public notice was given pursuant to and in full
compliance with Act No . 267, Public Acts of Michigan of 1976, as amended, and that
minutes were kept and will be or have been made available as required thereby.
DATED: _ __.D
_.'-'c""""'f'-"o'""'b'-"''o..r_
!. . ---'-'
IO "---, 2006.
Linda S. Potter, CMC
Acting Clerk, City of Muskegon
Publish: Notice of Adoption to be published once within ten (1 0) days of final
adoption.
CITY OF MUSKEGON
NOTICE OF ADOPTION
Please take notice that on October 10 , 2006, the City Commission of the City of
Muskegon adopted an ordinance amending the zoning map to provide for the change of
zoning of the following property from R-1, "One Family Residential" to B-2
"Convenience and Comparison Business":
CITY OF MUSKEGON REVISED PLAT OF 1903 E 1/2 LOT 10 BLK 367
Copies of the ordinance may be viewed and purchased at reasonable cost at the Office of
the City Clerk in the City Hall, 933 Terrace Street, Muskegon, Michigan, during regular
business hours.
This ordinance amendment is effective ten days from the date of this publication.
Published _ '--r--'--/Lf__ , 2006
_,_0'-"c'-'-f;-"-o"'-b"--e CITY OF MUSKEGON
By __~~~~--~~---
Linda S. Potter, CMC
Acting City Clerk
PUBLISH ONCE WITHIN TEN (1 0) DAYS OF FINAL PASSAGE.
Account No. 101-80400-5354
0:\Pianning\COMMON\Zoning\City Commission ltems\rezonc\Approvc\2006 Approvals\236 Monroe.doc 4
Staff Report [EXCERPT]
CITY OF MUSKEGON
PLANNING COMMISSION
REGULAR MEETING
September 14, 2006
Hearing; Case 2006-43: Request to rezone the property at 236 Momoe Avenue from R-1, One
Family Residential District to B-2, Convenience and Comparison Business District, by Dennis
Thornley.
BACKGROUND
Applicant: Dennis Thornley, DAT Holding
Property Address/Location: 236 Momoe Avenue
Request: Rezone from R-1, One Family Residential District to B-2,
Convenience and Comparison Business District
Present Land Use: Vacant
Zoning: R-1, One Family Residential
STAFF OBSERVATIONS
1. The property in questions is an unbuildable lot measuring 33 feet wide by 132 feet deep.
The house previously located on this property was torn down a few years ago. Since then
the property has been used as a cut-through from Momoe Avenue to the alley.
2. DAT Holding has purchased this property with plans to develop it into a parking lot to
accommodate the residential units on the second floor of 1133 Third Street. At the
present time, the residents of 1133 Third Street have no parking available to them except
on neighboring property or on the street.
3. The property owner has future plans for the main floor of the building, which includes
commercial uses. Since the building is located in the Downtown Overlay Parking Zone,
parking for these uses will need parking agreements within 1,000 feet of the property.
4. The properties to the south and west are zoned R-1, the properties to the north and east
are zoned B-2.
5. This area is identified in the 1997 Master Land Use Plan/Downtown Redevelopment Plan
as "Neighborhood Retail".
6. Residential uses are allowed as part of a building in B-2 zones.
7. Staff has received no comments regarding this request
0:\Pianning\COMMON\Zoning\City Commission Items\rczone\Approve\2006 Approvals\236 Monroe.doc 5
City of Muskegon
Planning Commission
Case# 2006-43
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0:\Planning\COMMON\Zoning\City Commission Items\rezone\Approve\2006 Approvals\236 Monroe.doc 6
STAFF RECOMMENDATION
Staff recommends approval of the rezoning request.
DETERMINATION
The following motion is offered for consideration:
I move that the request to rezone the property located at 236 Monroe Avenue from R-1, One
Family Residential district, to B-2, Convenience and Comparison Business district as described
in the public notice, be recommended for (approval/denial) to the City Commission pursuant to
the City of Muskegon Zoning Ordinance, and the determination of (compliance/lack of
compliance) with the intent of the City Master Land Use and zoning district intent.
0:\Planning\COMMON\Zoning\City Commission Items\rezone\Approve\2006 Approvals\236 Monroe.doc 7
Commission Meeting Date: September 26, 2006
Date: September 15, 2006
To: Honorable Mayor and City Commissioners
From: Planning & Economic Development cJ?; c,
RE: Rezoning request for property located at 1745 Madison St.
SUMMARY OF REQUEST:
Request to rezone the property located at 1745 Madison Street, from 1-1 , Light
Industrial district to R-1, One Family Residential district.
FINANCIAL IMPACT:
None
BUDGET ACTION REQUIRED:
None
STAFF RECOMMENDATION:
Staff recommends approval of the request.
COMMITTEE RECOMMENDATION:
The Planning Commission recommended approval of the request at their 9/14
meeting. The vote was unanimous, with T. Michalaski and B. Larson absent.
0:\Pianning\COMMON\Zoning\City Commission Items\rezone\Approve\2006 Approvals\1 745 Madison St.doc 1
CITY OF MUSKEGON
MUSKEGON COUNTY, MICHIGAN
ORDINANCE NO. 2204
An ordinance to amend the zoning map of the City to provide for a zone change for
certain properties from 1-1 "Light Industrial" to R-1 "One Family Residential".
THE CITY COMMISSION OF THE CITY OF MUSKEGON HEREBY ORDAINS:
The zoning map of the City ofMuskegon is hereby amended to change the zoning of the
following described property from I-1, "Light Industrial" to R-1 "One Family
Residential":
CITY OF MUSKEGON SEC 28 TION R16W W 132 Ff OF E 165FT OF N 99.55 FT OF
S 419.09 FT OF SW 1/4 OF SW 1/4
This ordinance adopted:
Ayes: Warmington, Wierenga, Carter, Davis, Gawron, Shepherd, Spataro
_____________________________________________________
Nayes : ~N_on_e
Adoption Date: _____o_c_t_o_b_e_r_l_0....;.,__2_00_6_______
Effective Date: ______
o_ct_o_b_e_r__
24__
, _2_0_0_6_____
First Reading: ______s_e-=-p_t_e_rnb_e_r__2_6_,_2_0_0_6_____
Second Reading: ____o_c_t_o_b_e_r_l_0_;,,__2_00_6_______
CITY OF MUSK..E.GON
By: ~ zf. £
Linda S. Po·tter, CMC
Acting City Clerk
CERTIFICATE (Rezoning of 1745 Madison Street I-1 to R-1)
The undersigned, being the duly qualified clerk of the City of Muskegon,
Muskegon County, Michigan, does hereby certify that the foregoing is a true and
complete copy of an ordinance adopted by the City Commission of the City of
Muskegon, at a regular meeting of the City Commission on the 10th day of October ,
2006, at which meeting a quorum was present and remained throughout, and that the
original of said ordinance is on file in the records of the City ofMuskegon. I further
certify that the meeting was conducted and public notice was given pursuant to and in full
compliance with Act No. 267, Public Acts ofMichigan of 1976, as amended, and that
minutes were kept and will be or have been made available as required thereby.
. e_r_l_O_ __ , 2006.
DATED: _ _o_c_t_ob_
Linda S. Potter, CMC
Acting Clerk, City of Muskegon
Publish: Notice of Adoption to be published once within ten (1 0) days of final
adoption.
CITY OF MUSKEGON
NOTICE OF ADOPTION
Please take notice that on October 10 , 2006, the City Commission of the City of
Muskegon adopted an ordinance amending the zoning map to provide for the change of
zoning of the following property from I-1, "Light Industrial" to R-1 "One Family
Residential":
CITY OF MUSKEGON SEC 28 TION R16W W 132FT OF E 165FT OF N 99.55 FT OF
S 419.09 FT OF SW 1/4 OF SW 114
Copies of the ordinance may be viewed and purchased at reasonable cost at the Office of
the City Clerk in the City Hall, 933 Terrace Street, Muskegon, Michigan, during regular
business hours.
This ordinance amendment is effective ten days from the date of this publication.
Published October 14 , 2006 CITY OF MUSKEGON
By __~~~~--~~----
Linda S. Potter, CMC
Acting City Clerk
PUBLISH ONCE WITHIN TEN (1 0) DAYS OF FINAL PAS SAGE.
Account No. 101-80400-5354
0:\Pianning\COMMON\Zoning\City Commission Items\rezone\Approve\2006 Approvals\1745 Madison St.doc 4
Staff Report [EXCERPT]
CITY OF MUSKEGON
PLANNING COMMISSION
REGULAR MEETING
September 14, 2006
Hearing; Case 2006-41: Request to rezone the property at 1745 Madison Street from I-1, Light
Industrial District, to R -1 ,One Family Residential District, by Ross Alsobrooks.
BACKGROUND
Applicant: Ross Alsobrooks
Property Address/Location: 1745 Madison Street
Request: Rezone from I-1 Light Industrial to R-1, One Family Residential
Present Land Use: Residential
Zoning: I-I, Light Industrial
STAFF OBSERVATIONS
1) This property in question is owned by Federal National Mortgage Associates. Mr.
Alsobrooks is in the process of attempting to purchase the property. Presently the
nonconforming zoning is causing him some issues with his financing.
2) Although the property is zoned I-1, Light Industrial, the property has a home and garage
located on it, and is on the edge of a residential neighborhood. Both the home and garage
are in very good shape, and industrial uses would not be logical.
3) The properties to the south and west, are zoned I-1. The zoning to the east and north are
zoned R-1, One Family Residential
4) There are vacant industrial buildings that formerly housed the Spartan Oil Company
located to the south and west of the subject property.
5) The 1997 Master Plan's Future Land Use Map shows this property as residential.
6) The 1997 Master Land Use Plan, in reference to this sub-area states "Restrict further
expansion of industrial development".
7) Staff has received no comments regarding this request.
0:\Planning\COMMON\Zoning\City Commission Itcms\rezone\Approve\2006 Approvals\1745 Madison St.doc 5
City of Muskegon
Planning Commission
Case# 2006-41 ·-<>-· '
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0:\Planning\COMMON\Zoning\City Commission Items\rezone\Approvc\2006 Approvals\1745 Madison St. doc 6
House and garage located at 1745 Madison
Former Spartan Oil Company building.
0:\Planning\COMMON\Zoning\City Commission Items\rezone\Approve\2006 Approvals\1745 Madison St. doc 7
STAFF RECOMMENDATION
Staff recommends approval of the request to rezone the subject properties from I-1 to R-1
because the request conforms to the goals and recommendation of the City's 1997 Master Plan.
DELIBERATION
Criteria-based questions typically asked during a rezoning include:
1. What, if any, identifiable conditions related to the petition have changed which justify
the petitioned change in zoning.
2. What are the precedents and the possible effects of precedent that might result from the
approval or denial of the petition?
3. What is the impact of the amendment on the ability of the city to provide adequate
public services and facilities and/or programs that might reasonably be required in the future if
the petition is approved?
4. Does the petitioned zoning change adversely affect the environmental conditions or value
of the surrounding property?
5. Does the petitioned zoning chauge generally comply with the adopted Future Land
Use Plan of the City?
6. Are there any significant negative environmental impacts which would reasonably
occur if the petitioned zoning change and resulting allowed structures were built such as:
a. Surface water drainage problems
b. Waste water disposal problems
c. Adverse effect on surface or subsurface water quality
d. The loss of valuable natural resources such as forest, wetland, historic sites, or
wildlife areas.
7. Is the proposed zoning change a "Spot Zone"?
a. Is the parcel small in size relative to its surroundings?
b. Would the zoning change allow uses that are inconsistent with those allowed in the
vicinity?
c. Would the zoning change confer a benefit to the property owner that is not generally
available to other properties in the area?
d. A spot zone is appropriate if it complies with the Master Plan.
0:\Planning\COMMON\Zoning\City Commission Items\rezone\Approve\2006 Approvals\1745 Madison St.doc g
DETERMINATION
The following motion is offered for consideration:
I move that the request to rezone the property located at 1745 Madison Street from I-1, Light
Industrial district to R-1, One Family Residential district, as described in the public notice, be
recommended for (approval/denial) to the City Commission pursuant to the City of Muskegon
Zoning Ordinance, and the determination of(compliance/lack of compliance) with the intent of
the City Master Land Use and zoning district intent.
0:\Planning\COMMON\Zoning\City Commission Items\rezone\Approve\2006 Approvals\1745 Madison St.doc 9
Commission Meeting Date: October 10, 2006
Date: October 2, 2006
To: Honorable Mayor & City Commission
From: Planning & Economic Development Department qbG
RE: Sale of Buildable Vacant Lot at 1259 Marquette
Ave.
SUMMARY OF REQUEST:
To approve the sale of a vacant buildable lot at 1259 Marquette Avenue (Parcel #24-611-
000-0482-00) to Vernon and Dorothy Harris. The lot is 116.45 x 132 ft. and is being offered
to Mr. and Mrs. Harris for $9,000. A single family home will be constructed. The home will
have a two stall attached garage, three bedrooms, two bathrooms, and a basement. The
square footage of the home will exceed what is required by the policy.
FINANCIAL IMPACT:
The sale of this lot for the construction of a single family home 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:
None.
Resolution No. 2006-83 (f)
MUSKEGON CITY COMMISSION
RESOLUTION APPROVING THE SALE OF A BUILDABLE LOT AT 1259 MARQUETTE
AVENUE IN MARQUETTE NEIGHBORHOOD FOR $9,000.
WHEREAS, Vemon and Dorothy Harris be allowed to purchase the parcel designated as parcel
number 24-611-000-0482-00, located at 1259 Marquette Avenue for $9,000; and
WHEREAS, the price for parcel number 24-611-000-0482-00 is set by the City at $9,000, 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.
NOW THEREFORE BE IT RESOLVED, that parcel number 24-611-000-0482-00, located at
1259 Marquette Avenue be sold to Vemon and Dorothy Harris for $9,000.
CITY OF MUSKEGON URBAN RENEWAL PLAT NO 2 LOT 482 ELY 34 FEET
LOT 483 AND LOT 481 EXC E 51.45 FEET
Adopted this 10th day of October, 2006.
Ayes: Warmington, Wierenga, Carter, Davis, Gawron, Shepherd, and Spataro
Nays: None
Absent: None
Attest:__d~ ~
Linda Po"tter, Acti~g City Clerk
2006- 83(f)
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 ofMuskegon, Michigan at a regular
meeting held on October 10, 2006.
By: ~ - !11/u
Linda Potter, Acting City Clerk
City-Owned Property to Sell
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REAL ESTATE PURCHASE AGREEMENT
THIS AGREEMENT is made October 10 , 2006 ("Effective Date"), by and between
the CITY OF MUSKEGON, a municipal corporation, with offices at 933 Terrace, Muskegon,
Michigan 49440 ("Seller"), and VERNON HARRIS and DOROTHY HARRIS, husband and
wife, of 492 Oak, Muskegon, Michigan 49442("Buyer").
1. General Agreement and Description of Premises. Seller agrees to sell, and
Buyer agrees to buy, the real estate, and all improvements thereon, with all beneficial easements,
and with all of Seller's right, title and interest in all adjoining public ways, located in the City of
Muskegon, Muskegon County, Michigan ("Premises"), and specifically described as:
CITY OF MUSKEGON URBAN RENEWAL PLAT NO. 2, LOT 482, EASTERLY 34
FEET OF LOT 483 AND LOT 481 EXCEPT THE EAST 51.45 FEET.
Subject to the reservations, restrictions and easements of record, provided said reservations,
restrictions and easements of record are acceptable to Buyer upon disclosure and review of the
same, and subject to any governmental inspections required by law.
2. Purchase Price and Manner of Payment. The purchase price for the Premises
shall be Nine Thousand Dollars ($9,000.00), payable in cash at the closing. The parties
acknowledge that Buyer has already given a $400.00 earnest money deposit to the Seller
("Deposit"). The Deposit shall be applied to the purchase price at closing. If the Closing, as
defined in paragraph 8, does not occur as scheduled due to default by the Buyer, the Deposit
shall be forfeited to the Seller and will not be refunded.
3. Taxes and Assessments. All taxes and assessments that are due and payable at
the time of Closing shall be paid by Seller prior to or at Closing. All taxes and special
assessments that become due and payable after Closing shall be the responsibility of Buyer.
4. Title Iusurauce. Seller agrees to deliver to Buyer, on or before the closing date,
a commitment for title insurance, issued by Metropolitan Title Company, for an amount not less
than the purchase price stated in this Agreement, guaranteeing title on the conditions required
herein. In the event the reservations, restrictions or easements of record disclosed by said title
commitment is, in the sole discretion of Buyer, deemed unreasonable, Seller shall have forty-five
(45) days from the date Seller is notified in writing of such unreasonableness of restriction and
such unmarketability of title, to remedy such objections. If Seller resolves such restrictions and
remedies the title (by obtaining satisfactory title insurance or otherwise) within the time
specified, Buyer agrees to complete this sale as herein provided, within ten (10) days of written
notification thereof. If Buyer closes on the Premises, any objections to the title are deemed
waived. If Seller fails to resolve such restrictions or remedy the title within the time above
specified or fails to obtain satisfactory title insurance, this Agreement will be terminated at
Buyer's option. The premium for the owner's title policy shall be paid by Seller.
0:\Pianning\COMMON\Property\Buildable Lot Sales\2006 Buildable Lot Sales\1259 marquette\pa.DOC
5. Covenant to Construct Improvements and Use. Buyer acknowledges that, as
part of the consideration inuring to the City, Buyer covenants and agrees to construct on the
premises one (1) single-family home, up to all codes, within eighteen (18) months of the closing
of this transaction. Buyer may only remove those trees necessary for construction of the home
and driveway. The home shall be substantially completed within eighteen (18) months and, in
the event said substantial completion has not occurred, or the restriction of this paragraph
relating to tree removal is violated, in the sole judgment of the City, the property and all
improvements then installed shall revert in title to the City, without any compensation or credit
to Buyer, and free of all liens. Buyer futiher covenants that the home shall be owner occupied
for five (5) years after the City issues a certificate of occupancy. The covenants in this paragraph
shall survive the closing and run with the land.
6. Survey. Buyer at its own expense may obtain a survey of the Premises, and
Buyer or its surveyor or other agents may enter the Premises for that purpose prior to Closing. If
no survey is obtained, Buyer agrees that Buyer is relying solely upon Buyer's own judgment as to
the location, boundaries and area ofthe Premises and improvements thereon without regard to
any representations that may have been made by Seller or any other person. In the event that a
survey by a registered land surveyor made prior to closing discloses an encroachment or
substantial variation from the presumed land boundaries or area, Seller shall have the option of
effecting a remedy within thirty (30) days after disclosure, or tendering Buyer's deposit in full
termination of this Purchase Agreement, and paying the cost of such survey. Buyer may elect to
purchase the Premises subject to said encroachment or variation.
7. Condition of Premises and Examination by Buyer. NO IMPLIED
WARRANTIES OF HABITABILITY, QUALITY, CONDITION, FITNESS FOR A
PARTICULAR PURPOSE, OR ANY OTHER IMPLIED WARRANTIES SHALL OPERATE
BETWEEN SELLER AND BUYER, AND BUYER EXPRESSLY WAlVES ANY AND ALL
SUCH IMPLIED WARRANTIES. BUYER UNDERSTANDS AND AGREES THAT THE
PREMISES ARE TAKEN "AS IS," SUBJECT TO THE EXPRESS COVENANTS,
CONDITIONS AND/OR EXPRESS WARRANTIES CONTAINED IN THIS PURCHASE
AGREEMENT. BUYER FURTHER SAYS THAT HE HAS PERSONALLY INSPECTED
THE PREMISES AND IS SATISFIED WITH THE CONDITION OF THE LAND, AND THE
BUILDINGS AND IMPROVEMENTS THEREON, AND THAT THE PROPERTY IS BEING
PURCHASED AS A RESULT OF SUCH INSPECTION AND INVESTIGATION AND NOT
DUE TO ANY REPRESENTATIONS MADE BY OR ON BEHALF OF SELLER. SELLER
KNOWS OF NO HAZARDOUS SUBSTANCES OR CONTAMINATION, AND BUYER
W AlVES ANY CLAIM AGAINST SELLER IN THE EVENT SUCH STUBSTANCES ARE
FOUND.
8. Closing. The closing date of this sale shall be on or before 90 days after the
Effective Date ("Closing"). The Closing shall be conducted at Metropolitan Title Company,
3044 Glade Street, Muskegon, Michigan 49444. If necessary, the parties shall execute an IRS
closing report at the Closing.
9. Delivery of Deed. Seller shall execute and deliver a quitclaim deed to Buyer at
Closing for the Premises.
0:\Pianning\COMMON\Property\Buildable Lot Sales\2006 Buildable Lot Sales\1259 marquette\pa.DOC
I 0. Affidavit of Title. At the Closing, Seller shall deliver to Buyer an executed
Affidavit of Title.
II. Date of Possession. Possession of Premises is to be delivered to Buyer by Seller
on the date of Closing.
12. Costs. Seller shall be responsible to pay the Michigan transfer tax, if any, in the
amount required by law. In addition, Seller shall be responsible to pay for the recording of any
instrument that must be recorded to clear title to the Premises, to the extent required by this
Agreement. Buyer shall pay for the cost of recording the deed to be delivered at Closing.
13. General Provisions.
a. Paragraph Headings. The paragraph headings are inserted in this
Agreement only for convenience.
b. Pronouns. When applicable, pronouns and relative words shall be read as
plural, feminine or neuter.
c. Merger. It is understood and agreed that all understandings and
agreements previously made between Buyer and Seller are merged into this Agreement,
which alone fully and completely expresses the agreement of the parties.
d. Governing Law. This Agreement shall be interpreted and enforced
pursuant to the laws of the State of Michigan.
e. Successors. All terms and conditions of this Agreement shall be binding
upon the parties, their successors and assigns.
f. Severability. In case any one or more of the provisions contained in this
Agreement shall for any reason be held to be invalid, illegal, or unenforceable in any
respect, such invalidity, illegality, or unenforceability shall not affect any other provision
of this Agreement, and this Agreement shall be construed as if such invalid, illegal, or
unenforceable provision(s) had never been contained herein.
g. Survival of Representations and Warranties. The representations,
warranties, covenants and agreements contained in this Agreement and in any instrument
provided for herein shall survive the Closing and continue in full force and effect after
the consummation of this purchase and sale.
h. Modification of the Agreement. This Agreement shall not be amended
except by a writing signed by Seller and Buyer.
The parties have executed this Real Estate Purchase Agreement on the date written below
their names, to be effective as of the day and year first above written.
0:\Pianning\COMMON\Property\Buildable Lot Sa!es\2006 Buildable Lot Sales\1259 marquette\pa.OOC
WITNESSES: SELLER: CITY OF MUSKEGON
Linda S. Potter, Acting Clerk
Date: 10-.20 -o C,
Name: Vernon Harris
SS#: )')(-1o-??{f(
Date:I6;[JG} 0(
I I
0:\Pianning\COMMON\Property\Buildable Lot Sales\2006 Buildable Lot Sales\1259 marquette\pa.DOC
QUIT-CLAIM DEED
KNOW ALL MEN BY THESE PRESENTS: That the CITY OF MUSKEGON, a municipal
corporation, of933 Terrace Street, Muskegon, Michigan 49440,
QUIT CLAIMS to VERNON HARRIS and DOROTHY HARRIS, husband and wife, of 492 Oak,
Muskegon, Michigan 49442,
the following described premises situated in the City of Muskegon, County of Muskegon, State of
Michigan, to wit:
CITY OF MUSKEGON URBAN RENEWAL PLAT NO. 2, LOT 482, EASTERLY 34 FEET
OF LOT 483 AND LOT 481 EXCEPT THE EAST 51.45 FEET.
for the sum of Nine Thousand Dollars ($9,000.00)
PROVIDED, HOWEVER, Grantee, or its assigns, shall complete construction of one (l) single family
home on the premises herein conveyed within eighteen (18) months after the date hereof. In default of
such construction, title to the premises shall revert to the City of Muskegon free and clear of any claim of
Grantee or its assigns. In addition, the City of Muskegon may retain the consideration for this
conveyance free and clear of any claim of Grantee or its assigns. Buyer shall remove only those trees
necessary for construction of the home and driveway. "Complete construction" means: (1) issuance of a
residential building permit by the City ofMuskegon; and, (2) in the sole opinion of the City of
Muskegon's Director of Inspections, substantial completion of the dwelling described in the said building
permit. In the event of reversion of title of the above-described premises, improvements made thereon
shall become the property of Grantor. Provided, further, that Grantee covenants that the parcel described
above shall be improved with not more than one (1) single family home, and it shall be owner-occupied
for five (5) years after the City issues a certificate of occupancy. These covenants and conditions shall
run with the land.
This deed is exempt from real estate transfer tax pursuant to the provisions ofMCLA 207.505(h)(i) and
MCLA 207.526 Sec, 6(h)(i).
Dated this __2_'3_ day of l)c_+o b-t.A.o '2006.
Signed _in the presence of:
and d10;~ eO . !?iivt
/f'€ne <ernpso.e...f Linda S. Potter, Acting Clerk
STATE OF MICHIGAN
COUNTY OF MUSKEGON
Signed and sworn to before me in Muskegon County, Michigan, on 0d..o b.vL_ ~ 3 , 2006, by
STEPHEN J. WARMINGTON and LINDA S. POTTER, the Mayor and Acting Clerk, respectively, of
the CITY OF MUSKEGON, a municipal corporation, on behalf of the City.
cpu ~ }-,., 'f<Ru. ~', ~
PREPARED BY: John C. Schrier "'l'oAnn fl\ k'rvk'o~SKi , Notary Public
Parmenter O'Toole Acting in the County of Muskegon, MI
601 Terrace Street!P.O. Box 786 Muskegon County, Michigan
Muskegon,Ml49443-0786 My Comm. Expires: 0 S- I "- .). D I :>..
Telephone: 231/722-1621
WHEN RECORDED RETURN TO: Grantee
SEND SUBSEQUENT TAX BILLS TO: Grantee
0:\Pianning\COMMON\Property\Buildable lot Sales\2006 Buildable lot Sales\1259 marquetteldeed.DOC
C/lert- .
198395
C - All Parties Pkg
P operty Address: 1259 Marquette
uyer/Borrower: Harris
Seller: City of Muskegon
Description: Documents Common to All Parties
May include the [ ] Disclosure and Acknowledgement
following docs: [ ] Owners Affidavit-Seller
[ ] Owners Affidavit-Buyer
[ ] Broker Fee Statement
[ ] Property Transfer Affidavit
[ ] Property Transfer Acknowledgement
[ ] Inspections
[ ] Closing Agreement
Copies to: Buyer/Borrower, Seller, Selling Agent, Listing Agent, Lender, Title Company, Buyer's
Attorney, Seller's Attorney
1 01/2006 02:04:46p by TIMEDAL01SIV005\vianderson
Policy or Policies issued pursuant to this commitment are underwritten by:
First American Title Insurance Company
SCHEDULE A
Commitment No.: 198395
2202
October 24, 2006
Commitment Date: October 02, 2006 @ 8:00AM
Policy or Policies to be issued: Policy Amount
(a) Residential Title Insurance Policy $9,000.00 ~
Proposed Insured:
Vernon Harris and Dorothy Harris, husband and wife
Policy or Policies to be issued: Policy Amount
(b) ALTA Loan Policy (10·17·92)
Proposed Insured:
The Fee Simple interest in the land described in this Commitment is owned, at the Commitment Date, by:
The City of Muskegon, a Municipal Corporation
The land referred to in this Commitment, situated in the County of Muskegon, City of Muskegon, State of
Michigan, is described as follows:
Lot 482, the Easterly 34 feet of lot 483 and Lot 481 except the East 51.45 feet of Muskegon-Urban Renewal Plat
No. 2 according to the plat thereof recorded in Liber 19 of Plats, Page 13 of Muskegon County Records.
Issuing Agent: Metropolitan Title Company
America's Premier 1ltle Agency
For questions regarding this commitment contact your local
Metropolitan Title Company (231)733·6201 or fax to (231)733·5418
3044 Glade St., Muskegon, MI 49444
etropolitan 11tle Company
044 Glade St.
uskegon, MI 49444
Schedule B- Section I
REQUIREMENTS
Commitment No.: 198395
eneral Requirements
e following requirements must be met:
( ) Instruments necessary to create the estate or interest to be insured must be properly executed, delivered and
duly filed for reoord.
( ) Payment of the full consideration to, or for the account of, the grantors or mortgagors should be made.
( ) Payment of all taxes, charges, assessments, levied and assessed against subject premises, which are due and
payable should be made.
( ) Pay us the premiums, fees and charges for the policy.
( ) You must tell us in writing the name of anyone not referred to in this Commitment who will receive an interest in
the land or who will make a loan on the land. We may make additional requirements or exceptions.
Submit completed Owner's Estoppel/Affidavit/ALTA Statement on the form provided by this company and signed
by or on behalf of all owners.
ecific Requirements
RECORD WARRANTY DEED FROM OWNER NAMED ON SCHEDULE A TO VERNON HARRIS AND DOROTHY
HARRIS.
({)cJ~
2
etropolitan Title Company
044 Glade St.
uskegon, MI 49444
Schedule B- Section II
EXCEPTIONS
Commitment No.: 198395
hedule B of the policy or policies to be issued will contain exceptions to the following matters unless the same are
d posed of to the satisfaction of the Company:
fects, liens encumbrances adverse claims or other matters, if any, created, first appearing in the public records or
a ching subsequent to the effective date hereof but prior to the date the Proposed Insured acquires for value of record
t e estate or interest or mortgage thereon covered by this Commitment.
enera/ Exceptions
y policy we Issue will have the following exceptions unless they are taken care of to our satisfaction:
1 Rights or claims of parties in possession not shown by the public records.
2 Encroachments, overlaps, boundary line disputes, or other matters which would be disclosed by an accurate survey
a d inspection of the premises.
3 Easements, or claims of easements, not shown by the public records.
Any lien, or right to a lien, for services, labor or material heretofore or hereafter furnished, imposed by law and not
s own on the public records.
Taxes or special assessments which are not shown as existing liens by the public records.
ecific Exceptions
1 Terms and Conditions contained in Urban Renewal Plan, as disclosed by instrument recorded in Liber 730, page
657, amended in Liber 808, page 123 and revised In Liber 920, page 388.
Note: Taxes Checked On 10/12/2006.
All Taxes paid to and including 2005
2006 Summer EXEMPT
2005 Winter PAID in the amount of $152.09
Tax Item No. 61-24-611-000-0482-00
State EqualizedValue (S.E.V.) for 2006: $0.00
Taxable: $0.00
School District: Muskegon
Special Assessment: Sidewalk in the amount of $152.09, PA~p in 2005 Winter Tax Bill and Sidewalk Assessment
DUE in the amount of $877.54, if paid by October 31, 2006\$ i5;?
j, O"Q
NOTE: If subject property is connected to public/community water or sewer, furnish a copy of the current bill to
Metropolitan Title Company showing that all charges have been paid to date or the Policy to be issued will Include
an exception on Schedule B for water and sewer charges which became a lien prior to the date of the Policy.
NOTE: Tax information obtained from the local taxing authority discloses that the 2006 taxes were assessed as
0% Homestead property. Any questions regarding the current homestead status of the property should be
directed to the local taxing authority.
3
mmitment for Title Insurance
F RST AMERICAN TITLE INSURANCE COMPANY.
agree to issue a policy to you according to the terms of this Commitment. When we show the policy amount and
y ur name as the proposed insured in Schedule A, this Commitment becomes effective as of the Commitment Date
s own in Schedule A.
I the Requirements shown in this Commitment have not been met within six months after the Commitment Date, our
o ligation under this Commitment will end. Also, our obligation under this Commitment will end when the Policy Is Issued
a d then our obligation to you will be under the Polley.
r obligation under this Commitment is limited by the following:
The Provisions in Schedule A
The Requirements in Schedule B-Section I.
The Exceptions in Schedule B-Section II.
The Conditions below.
Is Commitment Is not valid without Schedule A and Sections I and II of Schedule B.
nditions:
1 Definitions:
(a) "Mortgage" means mortgage, deed of trust or other security instrument. (b) "Public Records" means title
records that give constructive notice of matters affecting the title according to the state statutes where the
land is located.
2 l.ater Defects
The Exceptions In Schedule B - Section II may be amended to show any defects, liens or encumbrances that
appear for the first time in the public records or are created or attached between the Commitment Date and
the date on which all the Requirements (a) and (c) of Schedule B- Section I are met. We shall have no
liability to you because of this amendment.
3 Existing Defects
If any defects, liens or encumbrances existing at Commitment Date are not shown in Schedule B, we may
amend Schedule B to show them. If we do amend Schedule B to show these defects, liens or encumbrances,
we shall be liable to you according to Paragraph 4 below unless you knew of this information and did not tell
us about It in writing.
4 limitation of Our Liability
Our only obligation is to issue to you the Policy referred to in this Commitment, when you have met its
Requirements. If we have any liability to you for any loss you incur because of an error in this Commitment,
our liability will be limited to your actual loss caused by your relying on this Commitment when you acted In
good faith to:
comply with the Requirements shown in Schedule B- Section I OR
eliminate with our written consent any Exceptions shown in Schedule B - Section II
We shall not be liable for more than the Policy Amount shown in Schedule A of this Commitment and our
liability is subject to the terms of the Policy form to be issued to you.
5 Claims must be based on this Commitment
Any claim, whether or not based on negligence, which you may have against us concerning the title to the
land must be based on this Commitment and is subject to its terms.
I ued by: First American Title Insurance Company through its agent:
etropolitan Title Company
3 44 Glade St.
skegon, Michigan 49444
P : (231)733-6201 or Fax to: (231)733-5416
Meiropolitan Title Company
3044 Glade St.
Muskegon, f.U 49444
Phone: (231)733-6201 I Fax: (231)733-5418
PR: METRO ore: 2202 (2802)
Invoice
To: City of Muskegon Invoice No.: 28021384
933 Terrace St. Date: 10/13/2006
Muskegon, MI 49443 198395
Our File No.:
Title Officer: I
Escrow Officer: Vicki Anderson I VIANDERSON
Customer ID: 60615
Attention: Hope Mitchell
Your Reference No.:
RE: Property: Liability Amounts /
1259 Marquette, Muskegon, MI 49442 Owners: $9,000.00
Leudel's:
Buyers: Vernon Hanis, Dorothy Harr~s
Sellers: The City ofMuskegon
1
Description of Charge Invoice Amount
Owners Premium $250.00
Tax Fee $15.00
INVOICE TOTAL $265.00
Comments:
Thank you fOJ' your business!
To assure proper credit, please send a copy of this Invoice and Payment to:
Attention: Accounts Receivable Department
Rcq11ester: ITI Pugc: I
Printed On: 10/13/2006,2:38 PM
ct 23 06 10:24a City .of Muskegon Planning 2317246790 p.2
REAL ESTATE PURCHASE AGREEMENT
THIS AGREEMENT is made October 10 2006 ("Effective Date"), by and between
the CITY OF MUSKEGON, a municipal corporation, with offices at 933 Terrace, Muskegon,
Michigan 49440 ("Seller"), and VERNON HARRIS and DOROTHY HARRIS, husband and
wife, of 492 Oak, Muskegon, Michigan 49442("Buyer").
1. General Agreement and Description of Premlses. Seller agrees to sell, and
Buyer agrees to buy, the real estate, and all improvements thereon, v.ith all beneficial easements,
and with all of Seller's right, title and interest in all adjoining public ways, located in the City of
Muskegon, Muskegon County, Michigan ("Premises"), and specifically described as:
CITY OF MUSKEGON URBAN RENEWAL PLAT NO. 2, LOT 482, EASTERLY 34
FEET OFLOT483 AND LOT481 EXCEPT THE EAST 51.45 FEET.
Subject to the reservations, restrictions and easements of record, provided said reservations,
restrictions and easements ofrecord are acceptable to Buyer upon disclosure and review of the
same, and subject to any governmental inspections required by law.
2. Purchase Price and Manner or Payment. The purchase price for the Premises
shall be Nine Thousand Dollars ($9,000.00), payable i~h at the closing. The parties
acknowledge that Buyer has already given a $400.00 ~est money deposit to the Seller
('"Deposit"). The Deposit shall be applied to the purchase price at closing. If the Closing, as
defined in paragraph 8, does not occur as scheduled due to default by the Buyer, the Deposit
shall be forfeited to the Seller and will not be refunded.
3, Taxes and Assessments. All taxes and assessments that are due and payable at
the time of Closing shall be paid by Seller prior to or at Closing. All ta.xes and special x. ( 0 fi'C510fFCJl
assessments that become due and payable after Closing shall_b~-~~ respo~sibi~ity ofBuyel
4. Title Insurance. Seller agrees to deliver to Buyer, on or before the closing date,
a commitment for title insurance, issued by Metropolitan Title Company, for an amount not less
than the purchase price stated in this Agreement, guaranteeing title on the conditions required
herein. In the event the reservations, restrictions or easements of record disclosed by said title
commitment is, in the sole discretion of Buyer, deemed umeasonable, Seller shall have forty-five
(45) days from the date Seller is notified in writing of such unreasonableness of restriction and
such umnarketability oftitle, to remedy such objections. If Seller resolves such restrictions and
remedies the title (by obtaining satisfactory ti1le insurance or otherwise) within the time
specified, Buyer agrees to complete this sale as herein provided, within ten (10) days ofva:itten
notification thereof. If Buyer closes on the Premises, any objections to the title are deemed
waived. If Seller fuils to resolve such restrictions or remedy the title within the time above
specified or fails to obtain satisfactory title insurance, this Agreement will be terminated at
Buyer's option. The premium for the owner's title policy shall be paid by Seller.
0:\Piamlng\COI'VIriiiON\ProJ:)enrsuii::Jable Lot Sa!es\2006 Buildable Lot Seles,1259 marquelle"iJa.DOC
2317246790 ' p.3 '
ct 23 06 10:24a City of Muskegon Planning
5. Covenant to Construct lmprovements and Use. Buyer acknowledges that, as
part of the consideration inuring to the City, Buyer covenants and agrees to construct on the
premises one (l) single-family home, up to all codes, within eighteen (18) months ofthe closing
of this transaction. Buyer may only remove those trees necessary for construction of the home
and driveway. The home shall be substantially completed within eighteen (18) months and, in
the event said substantial completion has not occurred, or the restriction of this paragraph
relating to tree removal is violated, in the sole judgment of the City, the property and all
improvements then installed shall revert in title to the City, without any compensation or credit
to Buyer, and free of all liens. Buyer further covenants that the horne shall be owner occupied
for five (5) years after the City issues a certificate of occupancy. The covenants in this paragraph
shall survive the closing and run with the land.
6- Su.-vey. Buyer at its own expense may obtain a survey of the Premises, and
Buyer or its sw-veyor or other agents may enter the Premises for that purpose prior to Closing. If
no survey is obtained, Buyer agrees that Buyer is relying solely upon Buyer's own judgment as to
the location, boundaries and area of the Premises and improvements thereon without regard to
any representations that may have been made by Seller or any other person. In the event that a
survey by a registered land surveyor made prior to closing discloses an encroachment or
substantial variation from the presumed land boundaries or area, Seller shall have the option of
effecting a remedy within thirty (30) days after disclosure, or tendering Buyer's deposit in full
termination of this Purchase Agreement, and paying the cost of such survey. Buyer may elect to
purchase the Premises subject to said encroachment or variation.
7. Condition of Premises and Examination by Buyer. NO IMPLIED
WARRANTIES OF HABITAB1LITY, QUALITY, CONDITION, FITNESS FOR A
PARTICULAR PURPOSE, OR ANY OTHER IMPLIED WARRANTIES SHALL OPERATE
BETWEEN SELLER AND BUYER, AND BUYER EXPRESSLY WANES ANY AND ALL
SUCH IMPLIED WARRANTIES. BUYER UNDERSTANDS AND AGREES THAT THE
PREMISES ARE TAKEN "AS IS," SUBJECT TO THE EXPRESS COVENANTS,
CONDITIO)IS AND/OR EXPRESS WARRANTIES CONTAINED IN THIS PURCHASE
AGREE:vlENT. BUYER FURTHER SAYS THAT HE HAS PERSON.'-\LLY INSPECTED
THE PREMISES AND IS SATISFIED WITH THE CONDITION OF THE LAND, AND THE
BUILDINGS AND IMPROVEMENTS THEREON, AND THAT THE PROPERTY IS BEING
PURCHASED AS A RESULT OF SUCH INSPECTION Al';l) INVESTIGATION Al\'D NOT
DUE TO ANY REPRESENTATIONS MADE BY OR ON BEHALF OF SELLER. SELLER
KNOWS OF NO HAZARDOUS SUBSTANCES OR CONTAMINATION, AND BUYER
WAIVES ANY CLAIM AGAINST SELLER IN THE EVENT SUCH STUBSTANCES ARE
FOUND.
8. Closing. The closing date of this sale shall be on or before 90 days after the
Effective Date ("Closing"). The Closing shall be conducted at Metropolitan Title Company,
3044 Glade Street, Muskegon, Michigan 49444. If necessary, the parties shall execute an IRS
closing report at the Closing.
9. Delivery of Deed. Seller shall execute and deliver a quitclaim deed to Buyer at
Closing for the Premises.
O:\Pl2Ming\COI'~MONIProparty\Buildable Lot Sales\2006 Sui\d(lbl~ Lo! Sales,1259 marqueltalpa.OOC
c\ 23 06 10:24a City of Muskegon Planning 2317246790 p.4
10. Affidavit of Title. At the Closing, Seller shall deliver to Buyer an executed
Affidavit of Title.
11. Date of Possession. Possession ofPremises is to be delivered to Buyer by Seller
on the date of Closing.
12. Costs. Seller shall be responsible to pay the Michigan transfer tax, if any, in the
amount required by law. In addition, Seller shall be responsible to pay for the recoriling of any
instrument that must be recorded to clear title to the Premises, to the extent required by this
Agreement. Buyer shall pay for the cost of recording the deed to be delivered at Closing.
13. General Provisions.
a. Paragraph Headings. The paragraph headings are inserted in this
Agreement only for convenience.
b. Pronouns. When applicable, pronouns and relative words shall be read as
plural, feminine or neuter.
c. Merger. It is understood and agreed that all understandings and
agreements previously made between Buyer and Seller are merged into this Agreement,
which alone fully and completely expresses the agreement of the parties.
d. Governing Law. This Agreement shall be interpreted and enforced
pursuant to the laws of the State of Michigan.
e. Successors. All te!IllS and conditions of this Agreement shall be binding
upon the parties, their successors and assigns.
f. Severability. In case any one or more of the provisions contained in this
Agreement shall for any reason be held to be invalid, illegal, or unenforceable in any
respect, such invalidity, illegality, or unenforceability shall not affect any other provision
of this Agreemen1, and this Agreement shall be construed as if such invalid, illegal, or
unenforceable provision(s) had never been contained herein.
g. Survival of Representations and Warranties. The representations,
warranties, covenants and agreements contained in this Agreement and in any instrument
provided for herein shall survive the Closing and continue in full force and effect after
the consummation of this purchase and sale.
h. Modiflcation of the Agreement. Tbis Agreement shall not be amended
except by a writing signed by Seller and Buyer.
The parties have executed this Real Estate Purchase Agreement ou the date written below
their names, to be effective as of the day and year first above written.
0:\Pianning\COMMON\Properl}ABulldabl& LotSalee\2001;! Sulldabi~;~ Lot Sales\1259 maf'Cjueftelpa.OOC
ct 23 06 10:24a City of Muskegon Planning 2317246790, p,5
WITNESSES: SELLER: CITY OF MUSKEGON
Linda S. Potter, Acting Clerk
Date: 10- ;w - o C.
Name: Vernon Banis
SS#: )')C·~-1?9'q
Date:! M2G
r 1
0C
0:\Ptanning\COMMON\Propert.ylevlldabl~ Lot Sales\2000 Buikfeb~ l.ot Sales\1259 marquelfe\pa.DOC
I
~ ote: This fonn is furnished to oive you a slalement of actual seltlement costs. Arroun\s paid to and by tha sa\Uement ~ent are shown, items marked '{POC)" v.'Elre pakl outside this closing; they are shown
~.effi f lnformaUonal purposes and are not included in the totals.
D. Name of Borromr: Vernon Harris, Dorothy Harris
492 Oak Ave, Muskegon, Ml49442
E. Name of Seller: The City of Muskegon
--
933 Terrace St Muskegon, Ml49440
F. Name of lender:
G. Property location: 1259 Marquette, Muskegon, Ml49442
il. Settlement Agent: Metropolitan Title Company I.
Address: 3044 Glade St., Muskegon, Ml 49444 Settlement Date: 11/06/2006
Plac of Settlement Address: 3044 Glade St., Muskegon, Ml49444 Print Date: 10/2512006, 10:33AM
Disbursement Date: 11/06/2006
J. Su mary of Borrower1s Transaction K. Summary of Seller's Transaction
100. ross Amount Due From Borrower 400. Gross A1nount DueTo Seller
101. ontract Sales Price 9,000.00 401. contracl Sales Pnce 9,000.00
102. ersonal Property 402. PeiSonal Property
103. etllament charges to borrower (line 1400) 209.00 403. Total Deposits
104. 404.
105. 405.
Adjus ments for Items paid by seller In advance Adjustments for items paid by seller In advance
106. lty/town taxes 406. City/town taxes
107. ounty taxes 407. County taxes
108. sessments 408. Assessments
109. 409.
110. 410.
111. 411.
112. 412.
113. 413.
114. 414.
115. 415.
120. oss Amount Due From Borrower 9,209.00 420. Gross Amount Due To Seller 9,000.00
200. mounts Paid By Or In Behalf of Borrower 500. Reductions In Amount Due to Seller
201. eposit or earnest money 400.00 501. Excess deposit (see lnslructions) 400.00
202. rlncipalamount ol n<m loan(s) 502. SeWement charges (line1400) 1,321.03
203. Jstlng loan(s) laken subject 503. Existing loan(s) taken subject
204. 504. Payoff of filS! mortgage loan
205. 505. Payoff of seoond mortgage loan
206. 506. Disbursed as Proceeds ($0.00)
207. 507.
208. 508.
209. 509.
Adjus mants for Hems unpaid by seller Adjustments for items unpaid by seller
210. ity/lown taxes 510. City/town taxes
211. ounty taxes 511. County taxes
212. ssessmenls 512. Assessments
213. 513.
214. 514.
215. 515.
216. 516.
217. 517.
218. 518.
219. 519.
220. ~tal Paid By/For Borrowor 400.00 520. Total Reduction Amount Due Seller 1,721.03
801. an Origination Fee ,,
802, an Discount
803, ppraisal Fee
804, redit Report
805, nder's Inspection Fee
806, ortgage Insurance Application Premium
807, sumplion Fee
808,
809,
810,
811.
812,
813.
814.
Sup pi ~enlal Summa!Y
900, ms Required by Lender to be Paid in Advance
901. I terest
902.
903, azard Insurance Premium for
904.
905.
Sup pi mental Summal'/
1000. eserves Denosited with Lender
1001. Hazard Insurance
1002, Mortgage Insurance
1003. ity Property Taxes
1004. ounty Property Taxes
1005. nnual assessments
1006,
1007.
1008. ggregate Accounting Adjuslment
1100. itle Chan:~es
1101. ettlement or closing fee· Metropolitan TiUe Company 175.00 175.00
1102. bstract or tiUe search
1103, IUe examination
1104. IUe Insurance Binder
1105. pocument Fee
1106, ~Olaf)' Fee
1107, ttomeyFee
Includes above item numbers: )
1108, iUe Insurance- See supplemental page for breakdown of individual fees and payees 250.00
includes above item numbers: 1
1109. enders coverage $0.00
1110. fJWners coverage $9,000,00 Premium: $250.00
1111. ax Fee , Metropolilan Titl<l Company 15.00
1112, ecordlng Processing Fee· Metropolilan TIUe Company 20.00
1113,
1114,
1115.
1116.
1117.
1200. ovemment Recordln!l and TransferChaiJI&S .
1201. Recording fees: Deed $1(00 Mortgage $0.00 Release $0.00 14,00
1202. ityloounty tax/stamps:
1203. late tax/stamps:
1204.
1205,
1206.
1300. dditlonal Setuement Charaes
1301. urvey to
1302. est Inspection to
1303, oewalk Assessment to City of Muskegon Assessing Dept 881.03
1304.
1305,
1306.
1307.
1308.
1309.
1310.
131t
1312.
Borr ~r Name & Address: Vernon Harris, Dorothy Harris
492 C k Ave, Muskegon, Mi49442
Selle Name & Address: The City of Muskegon
933 rrace St Muskegon, M149440
Paid From Paid From
Sectl L. Settlement Charges continued Borrower's Sellers
Funds at Funds at
SeHiement SeHiem<>nt
1100. Supplemental SummaiV- 250.00
a OwnerS Premium· Metropolitan TiHe Company- 250.00
1201. Supplemental Summary 14.00
a Deed Recording Fee - Muskegon County Register of Deeds 14.00
The llowlng Section Is restated from the Settlement Statement Page 1
300. ash At Settlement From/To Borrower 600. Cash At SeHiement To/From Seller
301. ross amount due from Borrower (line 120) 9,209.00 601. Gross Amount duo to Seller (line 420) 9,000.00
302. IOUamounts paid by/for Borrower (line 220) 400.00 601. Less reductions in amounts due to Seller (line 520) 1,721.0!
303. ash (X From)( To) Borrower 8,809.00 603. Cash (X To) ( From) Seller 1,278.97
·~;·c"-··· ....
I have carefully reviewed the HUD·1 SeHiemeot Statement and to the best of my knowledge and belief, nis a true and accurate statement of all receipts and
::~:·······w·-·-·~
The City of Muskegon, a Municipal
Vernon Harris Corporation
lJuca~-!JaM?
Dorothy Ha r s
By: Hope Mitchell, Planner I
DISCLOSURE AND ACKNOWLEDGMENT
Date: November 06, 2005
Property Address: 1259 Marquette, Muskegon, MI 49442
By signing this statement the undersigned acknowledge the following:
1. That all closing documents prepared by Metropolitan Title Company are prepared at the direction and request of es
all parties to the transaction, their real estate agent(s)/broker(s) or attorney(s). 1£
al
2. That Metropolitan Title Company is not acting as my agent, attorney, representative or fiduciary, at 'P'
this real estate closing. lY
3. That Metropolitan Title Company's employee who has attended this closing represents only Metropolitan Title ·s:
Company.
51
4. That Metropolitan Title Company's employee who has Identified certain documents to me as he/she has presented In
them to me for signing, but has not given me legal advice as to the meaning or effect of the
documents. I understand that any of his/her statements about the documents are not legal advlee to me. If I tr
have an attorney, that attorney is my only attorney in this transaction. )5
re
5. That I have either read all of the closing documents or am responsible for my own failure to have read them. I
understand that Metropolitan Title Company is not responsible for explaining to me the effect of the
documents I have signed.
I I
6. That the title policy, when issued, will contain all of the exceptions noted on the commitment, unless such ar
exceptions are removed to the satisfaction of Metropolitan Title Company at closing.
7. That I have read this statement and understand it. te
s~
e
y
ric
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:I
th
Metropolitan Title Company •
America's Premier Tide Agency File Number: 198395
OWNER'S AFFIDAVIT /COMPLIANCE AGREEMENT- coptinuf!d .
this November 06, 2006. Vested Owner{s): {[j3
~Q ffitlf'~O tit
't
u
tic
f
:a
Metropolitan Title Company
AmericaS Premier Title Agency File Number: 198395
NOTICE OF YOUR FINANCIAL PRIVACY RIGHTS
want you to know that the privacy and confidentiality of your personal information is very important to Metropolitan
Company . We value your business and we want to retain your trust. In the course of providing products and
,_,rvlcE<sto you, we may obtain nonpublic personal information about you. We are required by law to provide you with
notice in order to inform you how Metropolitan Title Company collects, uses and safeguards your nonpubllc personal
This notice also tells how you can limit our disclosure of personal information about you.
may obtain nonpublic personal information about you from the following sources:
Information we receive from you from applications or other forms;
Information about your transaction with us from our files or from our affiliates;
Information about your transaction with nonaffiliated third parties such as your real estate agent or lender;
information we obtain includes, but Is not limited to, your name, address, social security number, employer, income,
information from financial institutions, parties to a transaction and credit card usage.
meet your needs with quality products and services we may disclose any of the above information that we collect
our customers or former customers to our affiliates or to nonaffiliated third parties as permitted by law.
affiliates are the family of companies controlled by Metropolitan Title Company or under common control with
i'lnclth•>r company. We may share the types of information described above, as permitted by law, with our affiliates for
rtll,rnn<"< of marketing or market research.
f~~~~th~ir~d parties are those not part of the family of companies controlled by Metropolitan Title Company or not
common control with another company.
I
service providers or contractors used by Metropolitan Title Company are required to follow the terms of our Privacy
Access to your nonpublic personal information by a service provider or contractor is restricted to the purpose for
they have been retained by Metropolitan Title Company .
may disclose your personal information to a nonaffiliated third party that we have an agreement with to perform joint
ma1rkeltino of products or services that we feel may interest you.
may disclose this information about our customers or former customers to the following types of nonaffiliated
¢mp.anies:
Financial service providers such as companies engaged in banking, consumer finance, securities and insurance.
Non-financial companies such as envelope stuffers and other fulfillment service providers.
TITLE COMPANY DOES NOT DISCLOSE ANY NONPUBUC PERSONAL INFORMATION ABOUT THEIR
JST•DMI::RS OR FORMER CUSTOMERS EXCEPT, AS PERMmED OR REQUIRED BY LAW.
Company restricts access to your nonpublic personal information to those employees who need to
information in order to provide products and/or services to you. Our employees are required to maintain the
ffir,flrl<>nti~liilh' and privacy of our customers. We maintain physical, electronic and procedural safeguards that comply
federal to guard your nonpublic personal information.
policy at any time, and we will inform you of any changes as required by law.
~~~
us to share with our affiliates your personal information and information about our transactions or
<i<r>eriien.ces with you. The law also allows us to share your personal information with our contractors and service
prefer that we not disclose information about you to nonaffiliated third parties, you may direct us not to share this
ilfrorm>tllr,n by calling the Corporate Office at 1-800-848-5375 or by writing to us at 622 East Grand River, Howell,
ichigan 48843. Please provide your name, address including city and state of the property and our file number.
Metropolitan Title Company
AmenCa3" Premier Title Agency File Number: 198395
198395
November 06, 2006
1259 Marquette, Muskegon, MI 49442
and Seller(s) of this property that all contingencies and addendums to the Offer to
U-4-1-"-'-f-'='L.>..d'-- have been met or are hereby resolved or removed to the satisfaction of the
lrrh'"'"•'"' understand and acknowledged that he/she/they are buying the property in an "As Is" condition and that
mtt:herthe Seller(s) nor Realtor(s) make any warranties as to the Ia and structure purchased or the condition.
Metropolitan Title Company
America's Premier Title Agency File Number: 198395
Mic ·gan Department of Treasurt L-42.60
m (Rev. J.06)
This form issued under authority of
Pf ioPERTY TRANSFER AFFIDAVIT P.A. 415 of 1994. Filing is mandatory.
Th form must be filed whenever real estate or some types of personal property are transferred (even if you are not recording a deed)
It I used by the assessor to ensure the property is assessed properly and receives the correct taxable value. It must be filed by th e
ne owner with the assessor for the city or township where the property is located within 45 days of the transfer. If it Is not file d
tirr ly, a penalty of $5/day (maximum $200) applies. The information on this form Is NOT CONFIDENTIAL
1. treet Address of Property ,2. County ,4. Date of Transfer (or land contract was signed)
259 Marouette Musi<E!!J<Jn MI 49442 Muskegon November 06 2.006
3. ity[fownship/Village of Real Estate DCity
ity of Muskegon DTownship 15. Purchase Price of Real Estate
DVillage $9,000.00
6. roperty Identification Number (PIN). If you don't have a pin, attach legal description. PIN. This number ranges from 10 to 25 digits. It
PI : 61-24-611-000-0482-00 usually Includes hyphens and sometimes Includes
letters. It Is on the property tax bill and on the
assessment notice.
7. eller's (Transferor) Name 8. Buyer's (Transferree) Name and Mailing Address
he CitY of Muskeqon J Vernon Harris and Dorothy Harris
492 Oak Ave
I« ms 9 - 13 are optional. However, by completing them Muskegon, MI 49442
yo may avoid further correspondence.
TransferS include deeds1 land contracts, transfers lnvolvlng 9. Type of Transfer
trusts or wills1 certain long-term leases and interest in ~and Contract Olease
business. See the back for a complete list. Deed OOther (specify)
110. Is the transfer between related persons?
%~s0 I
Ill. Amount of Down Payment
112. If you financed the purchase, DYes 113. Amount Financed (Borrowed)
did you pay market rate of interest? ONo I
Ex mptions
Th Michigan Constitution limits how much a property's taxable value can increase while It is owned by the same person. Once the
pre perty is transferred, the taxable value must be adjusted by the assessor in the following year to 50 percent of the property's usual
sel ng price. Certain types of transfers are exempt from adjustment. Below are brief descriptions of the types of exempt transfers; full
de riptions are in MCL Section 211.27a(7)(a-n). If you believe this transfer is exempt, indicate below the type of exemption you are
cia ming. If you claim an exemption, your assessor may request more information to support your claim.
0 transfer from one spouse to the other spouse
D change in ownership solely to exclude or include a spouse
0 transfer of that portion of a property subject to a life lease or life estate (until the life lease or life estate expires)
0 transfer to effect the foreclosure or forfeiture of real property
0 transfer by redemption from a tax sale
D transfer Into a trust where the settler or the settler's spouse conveys property to the trust and is also the sole beneficiary of
the trust
D transfer resulting from a court order unless the order specifies a monetary payment
0 transfer creating or ending a joint ownership if at least one person is an original owner of the property (or his/her spouse)
0 transfer to establish or release a security interest (collateral)
D transfer of real estate through nonnal public trading of stocks
D transfer between entities under common control or among members of an affiliated group
0 transfer resulting from transaction~ that qualify as a tax-free reorganization
D transfer of qualified agricultural property when the property remains qualified agricultural property and affidavit has been filed
0 other, specify:
Cl) ificatio {\
K7/ty~
0
e rptormation above is true and cvmplete to the /;lest ofmy knowledge.
AJllt~~
Date If signer is other than the owner, print name and title.
11/06/2006
Da
~me Phon~;~t Email Address
r~; 7" s- o34-s
2766, Page 2
Instructions
This form must be filed when there is a transfer of real property or of the following types of personal property:
• buildings on leased land.
• leasehold improvements (as defined in MCL Section 211.8 (h)).
• leasehold estates (as defined in MCL Section 211.8 (I) and (j)).
Transfer of ownership means the conveyance of title to or a present interest in property, including the beneficial use of the
property. It includes, but is not limited to, the following conveyances:
• deed.
• land contract.
• transfer into a trust, unless the sole beneficiary is the settlor (creator of the trust), the settlor's spouse, or both.
• transfer from a trust, unless the distributee is the sole present beneficiary, the spouse of the sole present beneficiary, or
both.
• changes in the sole present beneficiary of a trust, unless the change only adds or substitutes the spouse of the sole
present beneficiary.
• distributions by a will or Intestate succession, unless to the decedent's spouse.
• leases, if the total duration of the lease is more than 35 years, including the initial term and all options for renewal, or if
the lease grants the lessee the right to purchase the property at the end of the lease for not more than 80 percent of the
property's projected true cash value at the end of the lease.
• transfers of more than a SO percent interest in the ownership of a business, unlessthe ownership is gained through the
normal public trading of shares of stock. "
• transfers of property held as a tenancy in common, except the portion of the property not subject to the ownership
inbarest conveyed.
For complete descriptions of qualifying transfers, please refer to MCL Section 211.27a(6)(a-i).
Excerpts from Michigan Complied Laws (MCL), Chapter 211
Section 211.27a(8)
" ... the buyer, grantee, or other transferee of the property shall notify the appropriate assessing office In the local unit of
government In which the property is located of the transfer of ownership of the property within 45 days of the transfer of
ownership, on a form prescribed by the state tax commission that states the parties of the transfer, the date of the transfer,
the actual consideration for the tr-ansfer, and the property's parcel identification number or legal description."
Section 211.27(5)
" ... Beginning December 31, 1994, the purchase price paid in a transfer of property Is not the presumptive true cash value of
the property transferred. In determining the true cash value of the transferred property, an assessing officer shall assess that
property using the same valuation method used to value all other property of that same classification in the assessing
jurisdiction." -
198395
November 06, 2006
Vernon Harris and Dorothy Harris 1The City of Muskegon
1259 Marquette, Muskegon, MI 49442
the undersigned Purchaser, Grantee or Transferee, have been advised that under Act 415, P.A. of 1994, Form L-
(Rev. 1/06) Property Transfer Affidavit must be completed and received by the local assessor within 45 days
the date of transfer.
further understand that the failure to file is punishable by penalty of $5.00 a day up to a maximum of
have received from Metropolitan Title Company on November 06, 2006, a Property Transfer Affidavit, Form
t--..,~ou
(Rev. 1[06), and accept responsibility for filing this form with our city/township assessor. !/We agree to hold
Me:tro,politaln Title Company harmless from any further liability and{or responsibility regarding this fonm.
I/We have requested that Metropolitan Title Company distribute this fonm by regular mail to the city/township
assessor, and hold the title company harmless from any further liability and/or responsibility regarding this
form.
That the Buyer(s) are unable to complete the Property Transfer Affidavit at this time and will undertake to
distribute the form themselves; or have chosen to distribute the form themselves to the local tax collecting
unit.
r 0
Metropolitan Title Company
Americil's Premier Title Agef1CY File Number: 198395
OUU-CLAIM DEED
KNOW ALL MEN BY THESE PRESENTS: That the CITY OF MUSKEGON, a municipal
corporation, of 933 Terrace Street, Muskegon, Michigan 49440,
QUU CLAIMS to VERNON HARRIS and DOROTHY HARRIS, husband and wife, of 492 Oak,
Muskegon, Michigan 49442,
the following described premises situated in the City of Muskegon, County of Muskegon, State of
Michigan, to wit:
CUY OF MUSKEGON URBAN RENEWAL PLAT NO. 2, LOT 482, EASTERLY 34 FEET
OF LOT 483 AND LOT 481 EXCEPT THE EAST 51.45 FEET.
for the sum ofNine Thousand Dollars ($9,000.00)
PROVIDED, HOWEVER, Grantee, or its assigns, shall complete construction of one (I) single family
home on the premises herein conveyed within eighteen (18) months after the date hereof. In default of
such construction, title to the premises shall revert to the City of Muskegon free and clear of any claim of
Grantee or its assigns. In addition, the City of Muskegon may retain the consideration for this
conveyance free and clear of any claim of Grantee or its assigns. Buyer shall remove only those trees
necessary for construction of the home and driveway. "Complete construction" means: (1) issuance of a
residential building permit by the City of Muskegon; and, (2) in the sole opinion of the City of
Muskegon's Director of Inspections, substantial completion of the dwelling described in the said building
permit. In the event of reversion of title of the above-described premises, improvements made thereon
shall become the property of Grantor. Provided, further, that Grantee covenants that the parcel described
above shall be improved with not more thao one (1) single family home, and it shall be owner-occupied
for five (5) years after the City issues a certificate of occupancy. These covenants and conditions shall
run with the land.
This deed is exempt from real estate transfer tax pursuant to the provisions ofMCLA 207 .505(h)(i) and
MCLA 207.526 Sec. 6(h)(i).
Dated this .? '?;, day of [:::c <\- o bVD 2006.
Signed in the presence of: CUYOFMUSK •G
"{')~
/f"¥!fje.
and dlmdo. d . /n!ivt
Linda S. Potter, Acting Clerk
STATE OF MICHIGAN
COUNTY OF MUSKEGON
Signed and sworn to before me in Muskegon County, Michigan, on 0c\o \:,m., J '3 , 2006, by
STEPHEN J. WARMINGTON and LINDA S. POTTER, the Mayor and Acting Clerk, respectively, of
the CnY OF MUSKEGON, a municipal corporation, on behalf of the City.
CZP ~ 'rn. KR.u- ~~ ~
PREPARED BY: John C. Schrier ""J;oAAn /"r\ k'rv)<"o~>-~C,\(.i ,NotaryPublic
Parmenter O'Toole Acting in the County of Muskegon, Ml
601 Terrace StreetiP.O. Box 786 Muskegon County, Michigan
Muskegon,MI49443.0786 My Comm. Expires: 0 S- l ~- .J.D I~
198395
I -Recordings
P perty Address: 1259 Marquette
uyer/Borrower: Harris
Seller: City of Muskegon
Description: Documents to be Recorded
May include the [ ] Deed
following docs:
Copies to: Title Company, Buyer/Borrower, Seller, Selling Agent, Listing Agent, Mortgage Broker,
Lender, Buyer's Attorney, Seller's Attorney
11 01/2006 02:04:46p by TIMEDAL01SIV005\vianderson
Commission Meeting Date: October 10, 2006
Date: October 3, 2006
To: Honorable Mayor and City Commissioners
From: Planning dbG
RE: Ordinance Amendment - Clarification of delay
between Historic District Commission and
demolition
SUMMARY OF REQUEST:
To approve the attached Ordinance amendment clarifying the delay between Historic
District Commission and demolition. The current ordinance is not clear on when
there is a six month delay and when a structure can be demolished immediately.
The amended ordinance makes it clear that there is only a six month delay on
structures that are of historic or architectural worth.
FINANCIAL IMPACT:
None.
BUDGET ACTION REQUIRED:
None.
STAFF RECOMMENDATION:
To approve the attached ordinance amendment.
COMMITTEE RECOMMENDATION:
None.
CITY OF MUSKEGON
MUSKEGON COUNTY, MICHIGAN
ORDINANCE NO. 2205
An Ordinance amending Chapter 38, Section 38-68(b) ofthe Code of Ordinances
concerning approval of demolition or moving of structures of historic or architectural worth.
THE CITY OF MUSKEGON HEREBY ORDAINS:
Chapter 38, Section 38-68(b) of the Code of Ordinances shall be amended to read as follows:
Sec. 38-68. Approval of demolition or moving of structures of historic or
architectural worth.
(b) In cases where approval for demolition is granted, for reasons other than public
health or safety, such certificate shall not become effective until six months after the date
of such issuance, in order to provide a period of time within which it may be possible to
relieve a hardship or to cause the property to be transferred to another owner who will
retain the structure. This six month requirement shall only apply to structures determined
by the historic district commission to be ofhistoric or architectural worth.
This ordinance adopted:
Ayes: Wanni ngton 1 Wi erengo 1 Carter 1 Davis 1 Gawron 1 Shepherd 1 Spataro
Nays: None
Adoption Date: October 101 2006
Effective Date: october 241 2006
First Reading: October 101 2006
Second Reading: N/A
CITY OF MUSKEGON
By~
Linda
.ll!im
Pott~r
Acting Clerk, City of Muskegon
CERTIFICATE
The undersigned, being the duly qualified clerk of the City of Muskegon, Muskegon
County, Michigan, does hereby certify that the foregoing is a true and complete copy of an
ordinance adopted by the Cit~Commission of the City of Muskegon, at a regular meeting of the
City Commission on the lJt._ day of October 2006, at which meeting a quorum was present
and remained throughout, and that the original of said ordinance is on file in the records of the
City of Muskegon. I further certify that the meeting was conducted, and public notice was given,
pursuant to and in full compliance with Act No. 267, Public Acts of Michigan of 1976, as
amended, and that minutes were kept and will be or have been made available as required
thereby.
DATED: October 10 , 2006
~
Linda Potter
lilii&
Acting Clerk, City of Muskegon
Publish: Notice of Adoption to be published once within ten (I 0) days of final adoption.
CITY OF MUSKEGON
NOTICE OF ADOPTION
TO: ALL PERSONS INTERESTED
Please take notice that on October 10 , 2006, the City Commission of the City
of Muskegon adopted an amendment to Chapter 38, Section 38-68(b) of the Muskegon City
Code of Ordinances concerning approval of demolition or moving of structures of historic or
architectural worth. Section 38-68(b) is amended to read as follows:
Sec. 38-68. Approval of demolition or moving of structures of historic or
architectural worth.
(b) In cases where approval for demolition is granted, for reasons other than public
health or safety, such certificate shall not become effective until six months after the date
of such issuance, in order to provide a period of time within which it may be possible to
relieve a hardship or to cause the property to be transferred to another owner who will
retain the structure. This six month requirement shall only apply to structures determined
by the historic district commission to be of historic or architectural worth.
Copies of the ordinance may be viewed and purchased at reasonable cost at the Office of
the City Clerk in the City Hall, 933 Terrace Street, Muskegon, Michigan, during regular business
hours.
This ordinance amendment is effective ten (10) days from the date of this publication.
Published: October 14 '2006 CITY OF MUSKEGON
By~~~----------
Linda Potter
Acting Clerk, City of Muskegon
PUBLISH ONCE WITHIN TEN (10) DAYS OF FINAL PAS SAGE
G:\EDSI\FILES\00100\018225\0ROIN\D26709.DOC
CITY OF MUSKEGON
MUSKEGON COUNTY, MICHIGAN
ORDINANCE NO.
An Ordinance amending Chapter 38, Section 38~68(b) of the Code of Ordinances
concerning approval of demolition or moving of structures of historic or architectural worth.
THE CITY OF MUSKEGON HEREBY ORDAINS:
Chapter 38, Section 38-68(b) of the Code of Ordinances shall be amended to read as follows:
Sec. 38-68. Approval of demoJition or moving of structures of historic or
architectural worth.
(b) In cases where approval for demolition is granted, for reasons other than public
health or safety, such certificate shall not become effective until six months after the date
of such issuance, in order to provide a period of time within which it may be possible to
relieve a hardship or to cause the property to be transferred to another owner who will
retain the structure. This six month requirement shall only apply to stmctures determined
by the historic district commission to be of historic or architectural worth.
This ordinance adopted:
Ayes: ______________________________________________
Nays: -----------------------------------------------___
Adoption Date: _____________________
Effective Date: _____________________
First Reading: _______________________
Second Reading:
CITY OF MUSKEGON
By~~~------------
Linda Potter
Acting Clerk, City of Muskegon
G:\EOSI\FILES\0010010 18225\0RD1NI026709.00C
CERTIFICATE
The undersigned, being the duly qualified clerk of the City of Muskegon, Muskegon
County, Michigan, does hereby certify that the foregoing is a true and complete copy of an
ordinance adopted by the City Conunission of the City of Muskegon, at a regular meeting of the
City Commission on the ___ day of 2006, at which meeting a quorum was present
and remained throughout, and that the 01iginal of said ordinance is on file in the records of the
City of Muskegon. I further certify that the meeting was conducted, and public notice was given,
pursuant to and in full compliance with Act No. 267, Public Acts of Michigan of 1976, as
amended, and that minutes were kept and will be or have been made available as required
thereby.
DATED: ----~2006
Linda Potter
Acting Clerk, City of Muskegon
Publish: Notice of Adoption to be published once within ten (l 0) days of final adoption.
G:IEDSI\FILES\001 001018225\0RDINID2670S.DOC
CITY OF MUSKEGON
NOTICE OF ADOPTION
TO: ALL PERSONS INTERESTED
Please take notice that on , 2006, the City Commission of the City
of Muskegon adopted an amendment to Chapter 38, Section 38~68(b) of the Muskegon City
Code of Ordinances concerning approval of demolition or moving of structures of historic or
architectural worth. Section 38~68(b) is amended to read as follows:
Sec. 38-68. Approval of demolition or moving of structures of historic or
architectural worth.
(b) In cases where approval for demolition is granted, for reasons other than public
health or safety, such certificate shall not become effective until six months after the date
of such issuance, in order to provide a period of time within which it may be possible to
relieve a hardship or to cause the property to be transferred to another owner who will
retain the structure. This six month requirement shall only apply to structures determined
by the historic district commission to be of historic or architectural worth.
Copies of the ordinance may be viewed and purchased at reasonable cost at the Office of
the City Clerk in the City Hall, 933 Ten-ace Street, Muskegon, Michigan, during regular business
hours.
This ordinance amendment is effective ten (10) days from the date of this publication.
Published: _ _ _ _ _ _ _ , 2006 CITY OF MUSKEGON
By~~~~---------
Linda Potter
Acting Clerk, City of Muskegon
PUBLISH ONCE WITHIN TEN (10) DAYS OF FINAL PASSAGE
G:\EDSI\FitES\00100101822510RDIN\026709.00C
Date: October 10, 2006
To: Honorable Mayor and City Commission
From: Public Works
RE: Repair of Middle Roof Section - Public Service
Building
SUMMARY OF REQUEST: Bids were taken to repair the middle roof
section of the Public Service Building on September 22 2006. This
project is to eliminate leakage and extend the roof warranty for another
10 years. The low bidder was East Muskegon Roofing & Sheet Metal for
$21,715.00.
FINANCIAL IMPACT:
$50,000 was budgeted in the Public Service Building Fund for middle
section (shop area) roof repair or replacement in 2006.
BUDGET ACTION REQUIRED:
None is needed.
STAFF RECOMMENDATION:
Accept the low bid of $21,715.00 and authorize staff to execute an
agreement with the successful bidder to complete the project
C:\Documents and Settings\Potterll.ocal Settings\Temporary ln\ernet Fi\es\OLK1AIPSB Roof Repair Agenda10-10-
06.doc
Public
Works ·
Memo
To: Bob Kuhn, DPW Director
From: Bob Fountain, Special Operations SupeNisor
cc: Mohammed AI-Shatel, JR Gann
Date: October 3, 2006
Re: Bids to Repair Middle EPDM Roof Area-Public SeNice Building
One of our capital improvement items for the Public SeNice Building this year is to repair the roof over
the shop area. We have experienced repeated leakage from this roof over the years. It was installed
about 1985.
After taking bids to completely replace this roof area in August, it was determined that the bids far
exceeded the budgetary allocation. Therefore all bids were rejected at the September 12, 2006 by the
City Commission.
After consultation with roofing contractors, it was determined that the project could be re-bid with
altered specifications that would greatly reduce cost and extend the life span of the roof. The roof
membrane was determined to be in good condition, so the specifications were modified to encompass
the repair of seams and edges. This work would extend the warranty on this section of roof for an
additional1 0 years.
The project was re-advertised and bids taken. On September 22, 2006 bids were opened. Three bids
were received from the following contractors.
East Muskegon Roofing and Sheet Metal (Muskegon Twp.) $21,715.00
J. Stevens Co. (Dalton Twp.) $25,200.00
Free Spirit Enterprises (City of Muskegon) $35,000.00
All three of the bidders are qualified roofing contractors. There I recommend that the Commission
accept the low bid from East Muskegon Roofing and Sheet Metal and authorize staff to execute an
agreement with this contractor for completion of this project.
2
City Commission Meeting
Tuesday October 10,2006
TO: Honorable Mayor and City Commissioners
FROM: Anthony L. Kleibecker, Director of Public Safety
DATE: October 3, 2006
SUBJECT: Request to Purchase Video Enhancement Software
Summary of Request:
Police Department staff is requesting that the Commission approve an agreement
between the City and Cognitech, Inc., of Pasadena, California. In return, Cognitech will
provide the department with video enhancement software. This software will provide
officers with the capability of enhancing still photographs which can be obtained from
videotape. Increasingly, businesses and homeowners are utilizing video for security
reasons. There is no local assistance available and on occasion we have had to transport
videos to a state police lab in Lansing. Therefore we feel that it is important for us to
obtain and use this technology. Cognitech is also the vendor utilized by the Michigan
State Police.
Cognitech submitted a bid of$15,723.40 for software, support and training.
We did receive a quote from one other company. Salient Stills of Boston, Massachusetts
submitted a bid of$18,000 for the software, support and training.
Financial Impact:
Funds from the Criminal Forfeiture Account will be used to purchase this software
Budget Action Required:
None
Staff Recommendation:
Approval of the agreement.
Muskegon Police Department
Anthony L. Kleibecker
Director of Public Safety
980 Jefferson www.muskegonpolice.com Phone: 231-724-6750
Muskegon, Michigan FAX: 231-722-5140
49443-0536
TO: Anthony Kleibecker, Director of Public Safety
FROM: Kurt Dykman, Detective
DATE: September 13,2006
RE: Video Analysis Software (Cognitech)
This is updated pricing to the proposal.
$4,673.40- Computer system (Incl's. shipping). This computer will
handle the software and be able to process videos in an
uncompressed format. (See Dell Quotes; may be
$100-$200 less)
$2,000. - Video Acquisition Advanced Pro Card. This card allows
the user to acquire the incoming video and immediately
direct it out to a recording VCR for quick separation of
multiplexed videos.
$9,000.- Software and training for one person (excluding
transportation and accommodations. Breakfast and lunch
are provided).
$50.- Shipping from Cognitech (Insurance on shipment would
be $35)
$15,723.40- TOTAL (excluding transportation and
accommodations for training).
Respectfully submitted,
--=-;;;> .----· . · . /"'
/~~--~~----··
Kurt Dykman
>:"'-~-=-~
-- 'o--..,
TO: Anthony Kleibecker, Director of Public Safety
FROM: Kurt Dykman, Detective
DATE: January 21,2005
RE: Video Analysis Software
On many occasions there has been a need to have video tapes analyzed forensically but
without a consistent way to get the job done. In 2003 there were 56 entries of security
tape being brought in as evidence and in 2004 there were 66 calculating to be 5.5 tapes a
month on 2004. Investigators have tried to use our existing Diebold video player and
print a picture but with little success. We have been approached on many occasions by
other agencies for help just because we are the largest department in our county; we have
been little or no help to them. Tapes have been taken to local community colleges but
with concerns about the continued availability of this source and how effective would
court room testimony be coming from those persons. Without taking our materials to the
state police we have had no other options until now; within this memorandum I will
propose the purchase of video analysis software that would keep everything in-house and
aid in many future investigations. I have looked at two companies, Salient Stills and
Cognitech, and propose going with Cognitech. There is a third company, Ocean
Systems, their base system has a cost of$17,133 and goes up to $30,000. Below is an
overview of both Salient Stills and Cognitech as well the cost associated with each.
SALIENT STILLS
This software was originally developed for and used by the media for use in obtaining
a still print from higher quality recorded video. Since then they have entered the law
enforcement market and began offering their software with tools to analyze (clean-up)
videos to get clearer still prints. Just within the past six months they have added
Demultiplexing to their software; this in very new to them. Their software in said to be
very easy to use and needs no training. I have located and spoken with one individual
within our state that has used this software and recommends it but has not used it for
quite sometime. This person works for a department of the Army and they used Salient
Stills to process television video (IE: CNN) to obtain still pictures of military related
incidents. Two other law enforcement individuals, from outside of Michigan,
recommends this software and says that it is easy to use.
COST: $12,000- Software
$2,400- Annual support (tech support and software updates)
$2,800- Computer (quote did not include monitor)
$300 - Video capture card
$500- Adobe Photoshop
$18,000 --TOTAL
I
**** Because our existing computers will not be able to process the video in an
uncompressed format that is required a new computer is needed. This computer is
configured for this software's needs and no monitor was specified within the quote from
Dell. Because the software has no tools to allow the user to adjust the picture to be able
to further bring out details additional graphics software is needed and Photoshop is
suggested. The armual support fee is to give the user updates to new releases as well as
technical support.
COGNITECH
This software was designed to be used forensically as needed by law enforcement.
Packaged is Video Investigator Professional Edition that is used to "work" the video to
obtain stills as well as Video Active Pro. Ed. that is used to Demultiplex videos. The
software has been time tested with recent updates to the existing versions correcting
system "bugs". This software is harder to learn, has about a one year learning curve
therefore training is strongly recommended. Training is held twice a year at only two
locations; Palm Springs, California and Las Vegas. This software is being used by
Det./Sgt. Jim Young ofMSP in Lansing's Technical Services unit. He has used this
software for five years and instructs for the company. He processes about ten tapes per
week. I had spent an afternoon with him during which time he was able to show the
software and how it processes video. It was apparent that this software has been around
for some time and is very powerful. It has many automatic features within it but the user
has to know how to set the parameters of these features. A much better computer was
needed to handle the needs of the software. The City of Muskegon LT. department aided
in putting together the necessary system. This system's specifications were presented to
Cognitech and was said to meet the requirements to run their software. This system is
better that what would be available from Cognitech and it will be able to process video
files and actions of the software better and quicker resulting in shorter "waiting time"
while videos are being processed. Det./Sgt. Young has invited us back if there should be
any future needs.
The below cost breakdown will show three different ways to obtain this software (both
titles).
COST: $8,000- Software alone with no computer or training. Our
existing computers will not handle/process the materials.
$9,000- Software alone and training for one person (excluding
transportation and accommodations); no computer.
$16,000- Cognitech's packaged system (CVW 320) consisting of a
Dell computer/monitor, both software titles and one seat
Training (does not include shipping). (See attached
Workstation Comparison Chart)
2
AGENDA ITEM N O . - - - - - -
CITY COMMISSION MEETING - - - - - - - -
TO: Honorable Mayor and City Commissioners
FROM: Bryon L. Mazade, City Manager
DATE: October 2, 2006
RE: West Michigan Metropolitan Transportation Plan (WestPian)
SUMMARY OF REQUEST:
To approve the City of Muskegon's portion of the WestPian dues. This organization determines
projects and distributes federal transportation funds.
FINANCIAL IMPACT:
$16,040.
BUDGET ACTION REQUIRED:
None.
STAFF RECOMMENDATION:
To approve this request.
COMMITTEE RECOMMENDATION:
None.
pb!AGENDAfTRANS PlAN WMSRDC 2006
RECEIVED
DC: OCT 0 2 2006
WEST MICHIGAN SHOREUNE INVOICE
REGiONAL DEVELOPMENT COMMiSSION '' u ,, i( r c ; .; !
CITY MANAGLR'S orFiCE
P.O. Box 387 DATE: October 1, 2006
Muskegon, Ml 49443-0387 INVOICE# 5005
Phone: 231-722-7878 Fax: 231-722-9362 FOR: 10/1/06-9/30/07
DUE UPON RECEIPT
Bill To:
Bryon Mazade, Manager
City of Muskegon
PO Box 536
Muskegon, Ml 49443
DESCRIPTION AMOUNT
MPO Dues-West Michigan Metropolitan Transportation Program (WestPian) $16,040.00
For the Fiscal Year 2007
(October 1, 2006 - September 30, 2007)
CR:6365.0365.1 $13,910 6365.0365.3 $2,130
TOTAL $ 16,040.00
Make all checks payable to West Michigan Shoreline Regional Development Commission.
If you have any questions concerning this invoice, contact Susan Stine-Johnson, 231-722-7878x12,
sstinejohnson@wmsrdc.org
Date: October 10, 2006
To: Honorable Mayor and City Commissioners
From: Engineering
RE: Quit Claim Deed to CSX Transportation
SUMMARY OF REQUEST:
Authorize Mayor & Clerk to execute the attached Quit Claim Deed transferring property to CSX.
This transaction would conclude the obligation of both parties under which CSX had to
relinquish their rights to the properties needed for the construction of Shoreline Dr.
FINANCIAL IMPACT:
None.
BUDGET ACTION REQUIRED:
None
STAFF RECOMMENDATION:
To authorize the Mayor and Clerk to sign off on the quit claim deed and direct staff to record
both deeds, the one from CSX to the City and the one from the City to CSX.
COMMITTEE RECOMMENDATION:
Quit Claim Deed
City of Muskegon, a municipal corporation, of 933 Terrace Street, Muskegon, Michigan 49440,
Conveys and Quit Claims To: CSX Transportation, Inc,, a Virginia corporation, with principal place of business
at 500 Water St., J-150, Jacksonville, FL 32202,
the property in the City of Muskegon, County of Muskegon, State of Michigan, which is described as follows:
See Attached Exhibit A
for the sum of: Less Than One Hundred Dollars
free of encumbrances and/or limitations.
This deed is exempt froin real estate transfer tax pursuant to the provisions ofMCLA 207.505(h)(i) and
MCLA 207.526 Sec. 6(h)(i).
Dated: {k fa he r .:u ,200~
Signed in the presence of:
The foregoing instrument was acknowledged before me this J.. 3 day of Du-h.') bJu ,
_le,
200 by Stephen J. Warmington and Gail A. Kundinger, MMC, Mayor and Clerk of the City of Muskegon, a
municipal corporation.
-.:Io~l'l'"1 YY) Rru l<tl0J:; , Notary Public
D...v.o\4 (Jk 1 County, Michigan
My commiss
7
n
expires: o'S- I).· ~1 ~
Acting in Muskegon County, Michigan
Drafted hy & when recorded return to: Send subsequent tax bills to:
John C. Schrier CSX Transportation, Inc.
PARMENTER O'TOOLE 500 Water Street, J. I 50
175 West Apple Avenue, P.O. Box 786 Jack~onville, FL 32202
Muskegon, Michigan 49443·0786
Exhibit A
Legal Description
That part of the City of Muskegon, Muskegon County, Michigan, described as: Commencing at the
Southerly most Corner of Block 556 of the Revised Plat of 1903, City of Muskegon as recorded in Liber 3 of
Plats, Page 71, Muskegon County Records; thence n 61°11'53~ W, 1482.02 feet along the Northeasterly line
of Terrace Street as extended; thence 388.97 feet along a curve to the left with a radius of 767.00 feet, a
central angle of 29°03'24", the chord of which bears s 42°51 '41" W for a distance of 384.82 feet; thence S
28°20'00" W, 94.82 feet to the POINT OF BEGINNING of the centerline of a 50.00 foot wide parcel; thence
N 2820'00" E, 94.82 feet; thence 882.89 feet along a curve to the right with a radius of 767.00 feet, a central
angle of 65°57'11", the chord of which bears N 6P18'35" E for a distance of 834.95 feet; thence S 85°
42'50" E, 1271.36 feet to the point of ending of said centerline of a 50.00 foot wide parcel and the point of
beginning of a 57.50 foot wide parcel, said 57.50 foot wide parcel is described as lying 25.00 feet
southeasterly of and 32.50 feet Northwesterly of and at right angles to the following described line; thence
1501.23 feet along a curve to the left with a radius of 1272.00 feet, a central angle of 67°37'17", the chord of
which bears N 60°28'32" E for a distance of 1415.61 feet; thence N 26° 39'54" E, 135.00 feet to the point of
ending of said 57.50 foot wide parceL
1 or 1
SKETCH OF PROPOSED RAILROAD
NORTH
000
'"'' I
~
\i
SCALE '" f([l
ARC LENGTH 380.97' -----'J'I,<,<,'>:_
RADIUS 767_00'
DELTA 29'03'24' ) ' \
CHORD DIRECTION S42'51'41"W ' A f l . C LENGTH 882.69'
CHORD O!STANCE 384.112' \ \ RADIUS 767.00'
DELTA 65'57'11'
//
\ CHORD N61'18'J5'E
:j\ CHOROD<STANCEe3,~5 • t I\
NORTHER~YLIN~---f-<f..- 1- !IlK. sse 2S.)~fr"' E~h \b\
TERRACE ST. I \ "~('1 It I
N61'11'58' W 1482.0£-
>\~~/ill
'""' ll 1'1
SOUTHERLY
MOST CORNER
OF 8LOCK556
r I
/.;7
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I~S65"42'50'E 1271.36'
/\ ""-;,{ il: .
//\ ' (
;y~i 500
ZSO'l
1
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JZS' ARCLENGTH 1501.23'
/ \ RADIUS 1272.00'
DELTA67"37'17'
I CHORD N60'26'32'E
P.S. 36002
DESCRIPTION OF RAil WAY DESCRIPTION
\\\ ,,,
'~,~~\
That part of the city of Muskegon, Muskegon County, Michigan,
de~criQed as: Commencing at the Southerly most Comer of Bl.ock 556
of lhe Revised Plat of 1.90_~. C.ity q'.,Mus_I\.~IJOf!-i!l~.r!ii.~dfi9JJ:'i."..~iP:er_3
of Plats, Page 71, MuskeQ~.n .Col,ifily'.R~orfiS~·tficitj'Cft N e-t~tt:sa·. W, ''\\
1482.02 feet along the Northeasterly line of Terrace Street es
exlended; thence 388.97 feet along a curve to \he lelt wilh a radius of
767.00 reel, a c.entral angle of 2~'03'24", the chord of which bearsS
\\0
42"51'41" W ror a distan<;.o? of 364.82 feet; thenca S 28"20'00" W,
94.82 feet to the POINT OF BEGINNING of the centerline of a 50.00
foot wide parcel; thence N 2B~20'QO' E, 94.62 feet; thence.882.69 feet
along.a curve to the right with a radius of 767.00 feet a cen!fal angll!
"'"~" ~~
~
.,
~-
moo·~
of 65'57'11', the chord of which bears N 61'18'35' E for a distance of
834.95 feet: thence S 85'42'5:0' E, \271.361eet to th.e point of endipg
of said cenl&lline of a ~0.00 foot wide parcel cm11he point of N25"36'""E
beginning of a 57.50 loot wide parcel. said 57.50 loot wide parcel is P.O.E.
described as lying 25.00 feet Southeasterly of and 32.50 feet
Northwesterly of and at right angies to the following described line:
!hence 1501.23 feet ~long a curve to the !eft w"1lh a radius of 1272.00 CITY OF MUSKEGON
feet, a central angle of 67'37'1 7', the ch01d of which bears N
60'28'32' E for a distance of 1415.61 feet: thence N 26'39"54" E.
135.00 feet to Ihe p.oin! of ending of said 57.50 loot wide parcel: PROPOSED RAILROAD DESCRIPTION
L________________________________________ cc_____j"",''C'~'C·"''~''"---------------------"''e"eJ'
Quit Claim Deed
CSX Transportation, Inc., a Virginia corporation, with principal place of business at 500 Water St., J-150,
Jacksonville, FL 32202,
Conveys and Quit Claims To: City of Muskego11, a municipal corporation, of933 Terrace Street, Muskegon,
Michigan 49440,
the property in the City of Muskegon, County of Muskegon, State of Michigan, which is described as follows:
See Attached Exhibit J1
for the sum of: Less Than One Hundred Dollars
subject to easements!~~d restrictions of record.
This deed is exempt from real estate transfer tax pursuant to the provisions of MCLA 207.505(a) and
MCLA 207.526 Sec. 6(a).
Dated:
Inc.,
;l_/,o·.£:vr
STATEOF
COUNTY OF =r;:w <>-"--
0,____ )he forego;ng ;nstrument was acknowledged befme me th;s ~day of £,r"t;~~ ,200~, by
-"o"='~=J:C::"-=CJk»r'c_c_·
. -'Cw~-- , Its 0 j--d-: ,on behalf of CSX Transportation, Inc.
·•""'~''<':
:
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Nolo" Pobl<s"loofFiorida
LlndaCaroiAdlin
My ~ommlssion 00446637
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~c:.J--~-~~,..~~Lo"~o--==:o_-""-''-"-:::c~~~=--oc-cccc-
, ~otary Public
c,,. Exp1ras0111112009 J.;."'.LLuD::l :j.-)AitLc!.-:1}._
County,
My commission1xpires: -1'1l-1Lf-'.'-""--L---
Acting in \.}LU.Jc...___. ·
Drafted by & when recorded return to: Send subsequent tax bills to:
John C. Schrier City of Muskegon
PARMENTER O'TOOLE 933 Terrace Street
!75 WeslApp!eAvenue, P.O. Box 786 Muskegon, Michigan 49440
Muskegon, Michigan 49443-0786
C:IDocumenls and Setlings\fi.I.Shatei\Local Sellings\Temporal)' lnlemel FilesiOLK4BE\quite claim deed from CSX to the city.OOC
EXHIBITB
LEGAL DESCRIPTION
A PARCEL OF LAND BEING A PART OF THE REVISED PLAT OF THE CITY OF MUSKEGON, MICHIGAN,
SAID PARCEL BEING AN OLD VACATED RAILROAD RIGHT-OF-WAY, VARIABLE IN WIDTH, THE
CENTERLINE OF WHICH IS DESCRIBED AS;
COMMENCING AT THE SOUTHERLY MOST CORNER OF BLOCK 556 OF THE REVISED PLAT OF 1903,
CITY OF MUSKEGON AS RECORDED IN LIBER 3 OF PLATS, PAGE 71, MUSKEGON COUNTY
RECORDS; THENCE NORTH 61 DEGREES 11 MINUTES 58 SECONDS WEST, 1482.02 FEET ALONG
THE NORTHEASTERLY LINE OF TERRACE STREET AS EXTENDED; THENCE 388.97 FEET ALONG A
CURVE TO THE LEFT WITH A RADIUS OF 767.00 FEET, A CENTRAL ANGLE OF 29'03'24", THE CHORD
OF WHICH BEARSS 42'51'41" W FOR A DISTANCE OF 384.82 FEET; THENCE S 28'20'00" W, 94.82
FEET TO THE POINT OF BEGINNING OF SAID CENTERLINE;
THENCE NORTH 28 DEGREES 20 MINUTES 00 SECONDS EAST, A DISTANCE OF 94.82 FEET;
THENCE NORTHEASTERLY ALONG THE ARC OF A CURVE TO THE RIGHT A DISTANCE OF 535.05
FEET, (CURVE DATA BEING: DELTA= 52 DEGREES 04 MINUTES 22 SECONDS, RADIUS= 588.72 FEET,
CHORD = 516.82 FEET, CHORD BEARING = NORTH 54 DEGREES 22 MINUTES 12 SECONDS EAST);
THENCE NORTH 80 DEGREES 24 MINUTES 22 SECONDS EAST, A DISTANCE OF 246.23 FEET;
THENCE EASTERLY· ALONG THE ARC OF A CURVE TO THE RIGHT A DISTANCE OF 469.11 FEET,
(CURVE DATA BEING: DELTA= 40 DEGREES 48 MINUTES 29 SECONDS, RADIUS= 658.64 FEET,
CHORD = 459.26 FEET, CHORD BEARING =SOUTH 79 DEGREES 11 MINUTES 23 SECONDS EAST);
THENCE SOUTH 58 DEGREES 47 MINUTES 09 SECONDS EAST, A DISTANCE OF 358.23 FEET;
THENCE EASTERLY ALONG THE ARC OF A CURVE TO THE LEFT A DISTANCE OF 645.61 FEET,
(CURVE DATA BEING: DELTA= 33 DEGREES 05 MINUTES 51 SECONDS, RADIUS= 1117.62 FEET,
CHORD= 636.67 FEET, CHORD BEARING= SOUTH 75 DEGREES 20 MINUTES 04 SECONDS EAST); TO
THE POINT OF CURVATURE OF A COMPOUND CURVE;
THENCE EASTERLY ALONG SAID CURVE, A DISTANCE OF 248.66 FEET; (CURVE DATA BEING: DELTA
= 29'40'45", RADIUS= 480.04 FEET, CHORD= 245.89 FEET, CHORD BEARING: N 73'16' 38" E);
THENCE NORTH 58 DEGREES 26 MINUTES 15 SECONDS EAST, A DISTANCE OF 445.10 FEET;
THENCE NORTHEASTERLY ALONG THE ARC OF A CURVE TO THE LEFT A DISTANCE OF 256.01
FEET, (CURVE DATA BEING: DELTA =24 DEGREES 33 MINUTES 53 SECONDS, RADIUS =597.12 FEET,
CHORD = 254.05 FEET, CHORD BEARING = NORTH 46 DEGREES 09 MINUTES 18 SECONDS EAST);
THENCE NORTH 33 DEGREES 52 MINUTES 22 SECONDS EAST, A DISTANCE OF 537.54 FEET;
THENCE NORTHEASTERLY ALONG THE ARC OF A CURVE TO THE LEFT A DISTANCE OF 194.96
FEET, (CURVE DATA BEING: DELTA= 7 DEGREES 12 MINUTES 28 SECONDS, RADIUS= 1549.77 FEET,
CHORD= 194.83 FEET, CHORD BEARING =NORTH 30 DEGREES 16 MINUTES 08 SECONDS EAST);
THENCE NORTH 26 DEGREES 39 MINUTES 54 SECONDS EAST, A DISTANCE OF 135.00 FEET. TO THE
POINT OF ENDING.
3
r-·~ ._. . .,,. w ..... 11
WESTSHORE
CONSULTING
FOR: CITY OF MUSKEGON Engin~ers • Scientists • Surveyors • Planners 0 150 300
SITE PLAN SCALE: 1" = 300'
&hibi-1-B .O.E.
CURVE TABLE
CURVE LENGTH RADIUS CHORD SEARING DELTA
C1 535.05' 588.72' 516.82' N54"22'12"E 52'22'12"
/
C2 469.11' 658.64' 459.26' 579'11 '23"E 40"48'29" /
C3 645.61' 1117.62' 636.67' S75"20'04"E 33'05'51" ~~ ~- ',) '-- :', /
C4 248.66' 480.04' 245.89' N73'16'38"E 29'40'45" /
::~ 3 /
C5 ?"iR n1' S07 1?' ?S4. ns' ~.~~.R·no'1,Q;"I=" ?4.'_..,_..,._"i_""i"
~29'03'~4" NEW RAILROAO 1 csl19496·h549:77·1194:83·1~3~·16·08·E=I -7"12·28 . 1 -' / -'/ /
~767.00 ALIGNMEN'i PER /
g~g~~~~!~~2'51'41"w_ --~=-0--~/L NEW RAILROAD ~ --~-- : '/ ~}
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2534 BLACK CREEK ROAD ..__
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MUSKEGON, MI. 49444
PHONE : (231)777-3447
FAX : (231)773-3453
" \
DATE: 6/12/06
FILE NO: 06-0110
SCALE: 1 ~ = 300'
\ DRN BY: ELS
COPYRIGHT 2006 SHEET 1 OF 2
C'\Lnnd Pr-oj.,cts 6112/2006 3,37,48 PM EST
Date: 10/10/06
To: Honorable Mayor and City Commission
From: DPW
RE: Budgeted Vehicle Purchases
SUMMARY OF REQUEST: Approval to purchase (2) Ford Ranger from Tony
Betten & Sons Ford.
FINANCIAL IMPACT: Total Cost $26,385.00
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approve purchase.
Memorandtun
To: Honorable Mayor and City Commissioners
From: DPW
Date: 1Oil 0/06
Re: Budgeted vehicle replacement
The Equipment Division had scheduled the replacement of two of
our 1998 pick up trucks in 2006. These trucks are used on a daily basis
to check on job sites, inspect previous and future work, and carry
various equipment needed for on call and after hours emergencies. In an
attempt to lower operating costs, these vehicles are equipped with the
smaller 2.3 liter 4 cylinder engine.
I have requested prices from area dealers as well as the statewide
purchasing contracts. Attached is a summary of bids.
In accordance with established purchasing policy, I am requesting
permission to purchase two Ford Ranger pickup trucks from Tony
Betten & Sons Ford.
1
Equipment Purchase - 2006
I
I
Signature Ford Great Lakes Ford • Betten& Sons Ford
P.O. Box 242 2469 E. A~~le 3839 Plainfield N.E
Ty~e of Vehicle Central LakeMi Muskegon Mi. Grand Ra~ids Mi
2 Ford Rangers $26,754.00 $26,452.00 $26,385.00
each $ 13,377.00 i, $13,226.00 $ 13,192.50
!
I '
I -------
Commission Meeting Date: October 10, 2006
Date: October 2, 2006
To: Honorable Mayor & City Commission
From: Planning & Economic Development Department~
RE: Public Hearing for Amendments to Brownfield
Plan- Redevelopment of the Century Club &
Daniels and Redevelopment of Muskegon Savings
Bank
SUMMARY OF REQUEST: To hold a public hearing and approve the attached
resolution approving and adopting amendments for the Brownfield Plan. The
amendments are for the inclusion of property owned by Western Avenue Properties,
LLC and Port City Construction & Development Services, LLC in the Brownfield Plan.
FINANCIAL IMPACT: There is no direct financial impact in approving the Brownfield
Plan amendments, although the redevelopment of the property into a mixed-use
development will add to the tax base of the City of Muskegon.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To hold the public hearing and approve the attached
resolution and authorize the Mayor and Clerk to sign the resolution.
COMMITTEE RECOMMENDATION: The Muskegon City Commission set the public
hearing for October 10, 2006, at their September 12, 2006 meeting. Since that time,
a notice of the public hearing has been sent to taxing jurisdictions, and it has been
published twice In the Muskegon Chronicle. In addition, the Brownfield
Redevelopment Authority approved the Plan amendment on September 5, 2006 and
further recommends that the Muskegon City Commission approve the Plan
amendment.
2006-SS(a)
RESOLUTION APPROVING THE BROWNFIELD PLAN AMENDMENT
REDEVELOPMENT OF THE CENTURY CLUB & DANIELS AND
REDEVELOPMENT OF MUSKEGON SAVINGS BANK
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 Commission Chambers,
on the 10th day of October , 2006, at s: 30 o'clock p.m., prevailing Eastern
Time.
PRESENT: Members
Spataro, Warmington, Wierenga, Carter, Davis, Gawron, and
Shepherd
ABSENT: Members
None
The following preamble and resolution were offered by Member
--"'"ca~r._t,_,e""'r~--- and supported by Member Spataro
WHEREAS, in accordance with the provisions of Act 381, Public Acts of
Michigan, 1996, as amended ("Act 381"), the City of Muskegon Brownfield
Redevelopment Authority (the "Authority") has prepared and approved a Brownfield
Plan Amendment to add the Redevelopment of the Century Club & Daniels and
Redevelopment of Muskegon Savings Bank; and
WHEREAS, the Authority has forwarded the Brownfield Plan Amendment to
the City Commission requesting its approval of the Brownfield Plan Amendment;
and
WHEREAS, the City Commission has provided notice and a reasonable
opportunity to the taxing jurisdictions levying taxes subject to capture to express
their views and recommendations regarding the Brownfield Plan Amendment, as
required by Act 381; and
WHEREAS, not less than 20 days has passed since the City Commission
provided notice of the proposed Brownfield Plan to the taxing units; and
WHEREAS, a notice of the Public Hearing on the proposed Brownfield Plan
Amendment was published twice in the Muskegon Chronicle, the first of which was
not less than 20 days before the scheduled Public Hearing; and
WHEREAS, the City Commission held a public hearing on the proposed
Brownfield Plan on October 10,2006.
NOW, THEREFORE, BE IT RESOLVED, THAT:
1. Definitions. Where used in this Resolution the terms set forth below
shall have the following meaning unless the context clearly requires otherwise:
"Eligible Property" means the property designated in the Brownfield Plan as
the Eligible Property, as described in Act 381.
"Brownfield Plan" means the Brownfield Plan prepared by the Authority, as
transmitted to the City Clerk by the Authority for approval, copies of which
Brownfield Plan are on file in the office of the City Clerk.
"Taxing Jurisdiction" shall mean each unit of government levying an ad
valorem property tax on the Eligible Property.
2. Public Purpose. The City Commission hereby determines that the
Brownfield Plan Amendment constitutes a public purpose.
3. Best Interest of the Public. The City Commission hereby determines
that it is in the best interests of the public to promote the revitalization of eligible
properties in the City to proceed with the Brownfield Plan Amendment.
4. Review Considerations. As required by Act 381, the City Commission has,
in reviewing the Brownfield Plan Amendment, taken into consideration
whether the Brownfield Plan Amendment meets the requirements set forth in
Section 13 of Act 381 .
5. Approval and Adoption of Brownfield Plan Amendment. The Brownfield
Plan Amendment as submitted by the Authority is hereby approved and
adopted. A copy of the Brownfield Plan and all amendments thereto shall be
maintained on file in the City Clerk's office.
6. No Capture of Tax Increment Revenues by Authority. The Authority shall
not capture Tax Increment Revenues on the Eligible Property, as described
in the Brownfield Plan Amendment.
7. Disclaimer. By adoption of this resolution and approval of the Brownfield
Plan Amendment, the City assumes no obligation or liability to the owner,
developer or lessor of the Eligible Property for any loss or damage that may
result to such persons from the adoption of this resolution and Brownfield
Plan Amendment. The City makes no guarantees or representations as to
the determinations of the appropriate state officials regarding the ability of
the owner, developer or lessor to qualify for a single business tax credit
pursuant to Act 228, Public Acts of Michigan, 1975, as amended, or as to
the ability of the Authority to capture tax increment revenues from the State
and local school district taxes for the Brownfield Plan.
8. Repealer. 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
Da vi s , Ga wr o n, Sh e pherd, Spa t a ro, Warmington, Wi e r e nga ,
an d Carter
NAYS:
Membeffi,__~N~o~n~e~--------------------------------------------
RESOLUTION DECLARED ADOPTED.
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 October 10, 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.
Linda S. Potter, Acting City Clerk
Commission Meeting Date: October 10,2006
Date: October 2, 2006
To: Honorable Mayor & City Commission
From: Planning & Economic Development Department cJ?;C..
RE: Public Hearing for Amendments to Brownfield
Plan- Vida Nova at Edison Landing
SUMMARY OF REQUEST: To hold a public hearing and approve the attached
resolution approving and adopting amendments for the Brownfield Plan. The
amendments are for the inclusion of property owned by DDLH, LLC in the Brownfield
Plan.
FINANCIAL IMPACT: There is no direct financial impact in approving the Brownfield
Plan amendments, although the redevelopment of the property into a residential
condominium project will add to the tax base of the City of Muskegon.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To hold the public hearing and approve the attached
resolution and authorize the Mayor and Clerk to sign the resolution.
COMMITTEE RECOMMENDATION: The Muskegon City Commission set the public
hearing for October 10, 2006, at their September 12, 2006 meeting. Since that time,
a notice of the public hearing has been sent to taxing jurisdictions, and it has been
published twice In the Muskegon Chronicle. In addition, the Brownfield
Redevelopment Authority approved the Plan amendment on September 5, 2006 and
further recommends that the Muskegon City Commission approve the Plan
amendment.
2006-85(b)
RESOLUTION APPROVING THE BROWNFIELD PLAN AMENDMENT
VIDA NOVA AT EDISON LANDING
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 Commission Chambers,
th
on the 10 day of October , 2006, at 5: 30o'clock p.m., prevailing Eastern
Time.
PRESENT: Members
Spataro, Warmington, Wierenga, Carter, Davis, Gawron, and
Shepherd
ABSENT: Members
None
The following preamble and resolution were offered by Member
-'-S"-pa"'-t.:_a""'r:...;o;___ _ _ and supported by Member --=-D"'-av-'-'1"-'s
' '------
WHEREAS, in accordance with the provisions of Act 381, Public Acts of
Michigan, 1996, as amended ("Act 381"), the City of Muskegon Brownfield
Redevelopment Authority (the "Authority") has prepared and approved a Brownfield
Plan Amendment to add Vida Nova at Edison Landing; and
WHEREAS, the Authority has forwarded the Brownfield Plan Amendment to
the City Commission requesting its approval of the Brownfield Plan Amendment;
and
WHEREAS, the City Commission has provided notice and a reasonable
opportunity to the taxing jurisdictions levying taxes subject to capture to express
their views and recommendations regarding the Brownfield Plan Amendment, as
required by Act 381; and
WHEREAS, not less than 20 days has passed since the City Commission
provided notice of the proposed Brownfield Plan to the taxing units; and
WHEREAS, a notice of the Public Hearing on the proposed Brownfield Plan
Amendment was published twice in the Muskegon Chronicle, the first of which was
not less than 20 days before the scheduled Public Hearing; and
WHEREAS, the City Commission held a public hearing on the proposed
Brownfield Plan on October 10, 2006.
NOW, THEREFORE, BE IT RESOLVED, THAT:
1. Definitions. Where used in this Resolution the terms set forth below
shall have the following meaning unless the context clearly requires otherwise:
"Eligible Property" means the property designated in the Brownfield Plan as
the Eligible Property, as described in Act 381.
"Brownfield Plan" means the Brownfield Plan prepared by the Authority, as
transmitted to the City Clerk by the Authority for approval, copies of which
Brownfield Plan are on file in the office of the City Clerk.
"Taxing Jurisdiction" shall mean each unit of government levying an ad
valorem property tax on the Eligible Property.
2. Public Purpose. The City Commission hereby determines that the
Brownfield Plan Amendment constitutes a public purpose.
3. Best Interest of the Public. The City Commission hereby determines
that it is in the best interests of the public to promote the revitalization of eligible
properties in the City to proceed with the Brownfield Plan Amendment.
4. Review Considerations. As required by Act 381, the City Commission has,
in reviewing the Brownfield Plan Amendment, taken into consideration
whether the Brownfield Plan Amendment meets the requirements set forth in
Section 13 of Act 381.
5. Approval and Adoption of Brownfield Plan Amendment. The Brownfield
Plan Amendment as submitted by the Authority is hereby approved and
adopted. A copy of the Brownfield Plan and all amendments thereto shall be
maintained on file in the City Clerk's office.
6. No Capture of Tax Increment Revenues by Authority. The Authority shall
not capture Tax Increment Revenues on the Eligible Property, as described
in the Brownfield Plan Amendment.
7. Disclaimer. By adoption of this resolution and approval of the Brownfield
Plan Amendment, the City assumes no obligation or liability to the owner,
developer or lessor of the Eligible Property for any loss or damage that may
result to such persons from the adoption of this resolution and Brownfield
Plan Amendment. The City makes no guarantees or representations as to
the determinations of the appropriate state officials regarding the ability of
the owner, developer or lessor to qualify for a single business tax credit
pursuant to Act 228, Public Acts of Michigan, 1975, as amended, or as to
the ability of the Authority to capture tax increment revenues from the State
and local school district taxes for the Brownfield Plan.
8. Repealer. All resolutions and parts of resolutions insofar as they conflict
with the provisions of this resolution be and the same hereby are rescinded.
A YES: Members
Gawron, Shepherd, Spataro, Warmington, Wierenga, Cart e r,
and Davis
NAYS:
Members Non e
---------------------------------------------------
RESOLUTION DECLARED ADOPTED.
~ dJ_ fo-=---
di ~u=----
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 October 10, 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.
Linda S. Potter, Acting City Clerk
Commission Meeting Date: October 10, 2006
Date: September 11, 2006
To: Honorable Mayor & City Commission
From: Planning & Economic Development Department Cf!:C
RE: Plan to End Homelessness- Continuum of Care
Resolution
SUMMARY OF REQUEST: Judy Kell, Continuum of Care Coordinator,
has requested that the City Commission endorse the Ten Year Plan to
end homelessness.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To approve the attached resolution and
authorize the Mayor and Clerk's signatures.
COMMITTEE RECOMMENDATION: The City Commission will consider
at their Work Session on October 9, 2006.
MUSKEGON COUNTY HOMELESS CONTINUUM OF CARE NETWORK
TO: Cathy Brubaker-Ciarke, Planning Director
City of Muskegon
FROM: Judy Kell, Continuum of Care Coordinator
DATE: September 11, 2006
RE: Resolution from the City of Muskegon
Attached please find a resolution that the MCHCCN is respectfully requesting be
adopted by the Muskegon City Commission supporting the creation and
implementation of a Ten Year Plan to End Homelessness in Muskegon County.
As I indicated to you, the Michigan State Housing Development Authority (MSHDA) in
conjunction with the Departments of Community Health and Human Services is
providing funding to each county in the State of Michigan to develop a Ten Year Plan
to End Homelessness. MSHDA will then direct its discretionary dollars to those
projects identified in the Ten Year Plan.
The Ten Year Plan is being developed through focus groups and consultations with
municipal governments, human service agencies, business, educational institutions,
labor, the homeless, service organizations and other associations in the community.
There are four lead entities in the development of the Plan. They are the Community
Coordinating Council, the MCHCCN, the Department of Human Services and the
Department of Community Health.
The Ten Year Plan for Muskegon County proposes to increase rental assistance and
support services for homeless individuals and families as well as a strong
commitment to homeownership at all levels of income in the community. In
addition, there is a strong prevention component built into the Plan.
We will keep our presentation to the City Commission short on October 10, 2006.
We would like the City Commision to add its endorsement to ending homelessness in
Muskegon County within ten years and need to have it included in the Plan by
October 12, 2006.
Thank you for any assistance that you may give us in this endeavor.
Resolution No. 2006-86 (a)
MUSKEGON CITY COMMISSION- RESOLUTION OF SUPPORT FOR THE
PLAN TO END HOMELESSNESS IN MUSKEGON COUNTY
WHEREAS, safe, affordable, permanent housing is an essential component of strong
families and communities; and
WHEREAS, the number of homeless and at risk homeless has increased in Muskegon
County over the last two decades, and
WHEREAS, treating people who have already become homeless is far more expensive
than preventing homelessness; and
WHEREAS, many things contribute to homelessness, including low wages,
transportation issues, child care costs (or lack of adequate child care), medical costs,
domestic violence, substance abuse, evictions and mental illness; and
WHEREAS, breaking the cycle of chronic poverty and homelessness requires new ideas
and innovative action; and
WHEREAS, in 2002, President George W. Bush introduced a ten year plan to end
homelessness. In 2003, this undertaking was endorsed by both NACO and the U.S.
Conference of Mayors. While the plan is not mandated by Congress or HUD, local
communities are strongly encouraged to adopt such plan; and
WHEREAS, the Muskegon County Homeless Continuum of Care Network (MCHCCN)
is an organization consisting of representatives of emergency shelters, transitional
housing, human service agencies, municipal governments, educational institutions, and
individual citizens; and
WHEREAS, the MCHCCN is responsible for developing and maintaining the
Continuum of Care Strategy that provides interim services to homeless individuals and
families while they achieve self-sufficiency. Suppmtive housing and services for those
physically and mentally unable to be self-sufficient also comes under the purview of the
Continuum of Care strategy; and
WHEREAS, the Muskegon County Homeless Continuum of Care Network has issued a
"Call to Action" to all stakeholders to participate in a community-wide effort to develop
and implement a "Blue Print to End Homelessness."
NOW THEREFORE BE IT RESOLVED THAT the Muskegon City Commission
hereby supports the efforts of the MCHCCN.
BE IT FURTHER RESOLVED that the Muskegon City Commission hereby joins in
partnership with the growing coalition to seek better methods to serve our homeless
populations and unite in developing a community-wide plan to pro-actively end the cycle
of homelessness within our borders.
This resolution was adopted by the City of Muskegon on October 10, 2006.
Adopted this loth of October., 2006.
AYES: Shepherd, Spataro, Warmington, Wierenga, Carter,
Davis, and Gawron
NAYS: None
ABSTAIN: None
Linda S. Potter, Acting City Clerk
CERTIFICATION
This resolution was adopted at a regular meeting of the City Commission, held on October I 0,
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: ~ cJ. l6-1iM.
Linda S. Potter, Acting City Clerk
Date: October 3, 2006
To: Honorable Mayor and City Commissioners
From: Assistant Finance Director
RE: Financial Policies
SUMMARY OF REQUEST: Periodically the Financial Policies of the City are
reviewed and revised to include policy changes or revisions adopted by the Commission
or necessitated to come into compliance with state or federal law since the last update.
The last time the Policies were updated was March 2002. Included with this update are
two policies not previously adopted by the Commission, the Cell Phone Policy created
to comply with IRS regulations and the Pensions and Other Post Employment Benefits
Policy created to follow Governmental Accounting Standards Board guidelines.
FINANCIAL IMPACT:
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approve the City of Muskegon Financial Policies as
updated October 2006.
COMMITTEE RECOMMENATION:
CITY OF MUSKEGON
FINANCIAL POLICIES
UPDATE OCTOBER 2006
West Michigan's ShoreUne City
CITY OF MUSKEGON FINANCIAL POLICIES
CITY OF MUSKEGON FINANCIAL POLICIES 1
INTRODUCTION 3
I. OPERATING BUDGET POLICY 3
CONTINGENCY ACCOUNT 4
II. CAPITAL IMPROVEMENTS POLICY 4
Ill. REVENUE POLICY 4
IV. GENERAL FUND RESERVE POLICY 4
V. ACCOUNTING, AUDITING, AND FINANCIAL REPORTING POLICY 5
VI. DEBT POLICY 5
EXTERNAL DEBT 5
INTERFUND LOANS 6
VII. FIXED ASSETS CAPITALIZATION AND DEPRECIATION POLICY 6
CAPITALIZATION THRESHOLDS 6
DEPRECIATION AND ESTIMATED USEFUL LIFE 6
VIII. LIABILITY INSURANCE CLAIM SETTLEMENTS 7
IX. POLICY FOR ADJUSTING UNCOLLECTIBLE ACCOUNTS 7
X. POLICY FOR ADJUSTING DELINQUENT PERSONAL PROPERTY TAXES 8
XI. INVESTMENT POLICY 8
SCOPE 8
OBJECTIVES 8
PRUDENCE 9
ETHICS AND CONFLICTS OF INTEREST 9
DELEGATION OF AUTHORITY 9
AUTHORIZED SECURITIES AND TRANSACTIONS 10
INVESTMENT DIVERSIFICATION AND LIQUIDITY 11
SELECTION OF FINANCIAL INSTITUTIONS AND BROKERS 12
COMPETITIVE TRANSACTIONS 12
SELECTION OF DEPOSITORY BANKS 13
SAFEKEEPING AND CUSTODY 13
PORTFOLIO PERFORMANCE 14
REPORTING 14
POLICY REVISIONS 14
GLOSSARY OF TERMS USED 14
XII. PETTY CASH USES AND LIMITS 16
XIII. PROCEEDS FROM SALE OF CITY-OWNED REAL ESTATE 17
XIV. PROCUREMENT CARD PROGRAM POLICY 17
GENERAL 17
DESIGNATION OF RESPONSIBLE OFFICIAL 17
TRANSACTION AMOUNTS 18
EMERGENCY TRANSACTION AMOUNTS 18
INTEREST COSTS AND SALES TAX 18
OTHER PURCHASING POLICIES 18
RESTRICTIONS ON USE 19
XV. ELECTRONIC PAYMENTS 19
XVI. ACCEPTANCE OF CREDIT CARD PAYMENTS 19
XVII. TRAVEL POLICY AND GUIDELINES 19
SCOPE 19
AUTHORIZED TRAVEL 19
TRAVEL COSTS 19
PAYING FOR TRAVEL COSTS 21
REPORTING REQUIREMENTS FOR TRAVEL EXPENSE REIMBURSEMENT 21
DOUBLE-DIPPING 22
LOCAL BUSINESS EXPENSES 22
XVIII. CELL PHONE POLICY
22
XIX. CASH HANDLING POLICY FOR DEPARTMENTS ACCEPTING PAYMENTS FROM
CITIZENS 22
XX. ACCOUNTS PAYABLE 23
XXI. ACCOUNTS RECEIVABLE AND BANKRUPTCY 24
BASIC COLLECTION PROCEDURES 24
LEGAL ACTION 24
OBSERVATION OF COLLECTION LAWS 24
BANKRUPTCIES 24
XXII. PAYROLL DEDUCTIONS 25
XXIII. PENSIONS AND OTHER POST EMPLOYMENT BENEFITS
25
XXIV. SOCIAL SECURITY NUMBER PRIVACY POLICY
25
PURPOSE 25
DEFINITIONS 26
PROHIBITED USE OF SOCIAL SECURITY NUMBER OF EMPLOYEE, STUDENT, OR
OTHER INDIVIDUAL; EXCEPTIONS 26
PRIVACY POLICY 27
EXEMPTIONS FROM DISCLOSURE 28
VIOLATION OF PRIVACY POLICY
28
2
INTRODUCTION
The financial policies presented here set forth the basic policy framework for the financial
management of the City of Muskegon. Many of the policies represent long-standing principles,
practices, or traditions that have guided the city in the past. They have been brought together in
one place to ensure their consistency and to provide Commission and staff a comprehensive
reference document for current and future decision-making. While these policies are intended to
provide continuity within a constantly changing environment, it is also intended that they be
reviewed regularly and amended as needed.
I. OPERATING BUDGET POLICY
The city shall adhere to the requirements of the State of Michigan "Uniform Budget Act" (P.A. 621
of 1978, as amended).
The budget shall be balanced by Fund. Budgeted expenditures of each fund will be less than or
equal to the sum of projected fund balance at the beginning of the fiscal year and all revenues
which reasonably can be expected to be received during the fiscal year. It will be the annual goal
of the city to match current operating expenditures with current operating revenues for each fund.
Where this is not possible due to economic downturn or other factors, the "operating deficit" (i.e.
operating revenues less operating expenditures) will be clearly highlighted.
Budgets will be adopted on a basis of accounting consistent with generally accepted accounting
principles. Revenues are budgeted when they become measurable and available and
expenditures are charged against the budget when they become measurable, a liability has been
incurred, and the liability will be liquidated with current resources.
The budget shall be adopted through a "Resolution of Appropriation." Appropriations will be made
at the departmental or project level for the General Fund Budget and at the fund level for all other
budgets. The level of formal appropriation will constitute the "appropriation center" for each fund
as defined in the state Uniform Budget Act. Transfers of budgeted funds between appropriation
centers will require the formal approval of the City Commission.
The City Manager and city Department Heads are authorized to transfer line-item budget
amounts within appropriation centers. Budget transfers between appropriation centers or
changes to appropriation center totals require formal amendment by the City Commission, which
may be done at any time during the budget year.
Budgets will be carefully monitored throughout the year. Each quarter the budget together with
the policies and priorities on which it is based will be thoroughly reviewed by the City Manager to
determine whether changes are necessary. An amended budget reforecast will be presented to
the City Commission based on this review.
Department Heads are authorized to reallocate budgeted positions between activities under their
jurisdiction; however, new positions may only be created with approval of the City Manager and
within the budgetary authority approved by the City Commission.
The city will integrate goals and objectives into the budget and develop a system to monitor
performance in meeting city objectives.
All operating funds of the city are subject to the annual budget process and will be reflected in the
annual budget document with the exception of certain "pass-through" funds (such as the current
tax fund), trust and agency funds. funds having a separate fiscal year (e.g. CDBG), and non-
recurring project and grant funds for which a budget shall be adopted at the time the project is
approved.
The enterprise fund and internal service fund operations of the city are intended to be fully self-
supporting, i.e. current revenues will cover current expenditures, debt service, and capital costs.
The city's budget will portray both direct and indirect costs of programs whenever practical.
3
As permitted by state law (P.A. 30 of 1978), the city will fund and maintain a separate Budget
Stabilization Fund for the purpose of ensuring that adequate funding is available to maintain
levels of municipal services in the event of a major revenue loss.
CONTINGENCY ACCOUNT
A "contingency" line-item will be included in the General Fund Budget for unforeseen operating
expenditures. The amount of the contingency account will not exceed five percent (5%) of total
budgeted expenditures. Use of the contingency account will require formal approval of the City
Commission who will authorize the transfer of contingency funds to the appropriation center
where the actual cost will be incurred. If in a given year it is determined that other budgeted
operating funds require a contingency line-item, the same policy will be followed for these funds.
II. CAPITAL IMPROVEMENTS POLICY
A capital improvement program (CIP) will be developed for a period of five years. The CIP will
outline and prioritize all proposed capital projects, including land acquisitions, land improvements,
construction projects and equipment purchases having estimated costs over $50,000 and useful
lives of four or more years. As resources are available, the most current year of the CIP will be
incorporated into the current year of the city's operating budget. The CIP will be reviewed and
updated annually prior to the beginning of the operating budget cycle.
Ill. REVENUE POLICY
The city will strive to maintain a diversified and stable revenue system to shelter it from short-run
fluctuations in any one revenue source. The revenue mix should combine elastic and inelastic
revenue sources to minimize the effect of an economic downturn.
The city will estimate its annual revenues by an objective analytical process using the best
information available.
The city will establish all user charges at a level related to the cost of providing the services and
will annually revise user fees (with review by the City Commission) to adjust for the effects of
inflation, program changes or other factors.
The city will set fees and user charges for each enterprise fund, such as the Water Fund and
Sewer Fund, at a level that fully supports the total direct and indirect costs of the activity. Costs
shall include the cost of annual depreciation of capital assets.
The city will set fees for other user activities, such as recreation services, at a level to support the
direct and appropriate indirect costs of the activity.
The city will aggressively pursue collections of delinquent accounts receivable utilizing
appropriate legal means (including outside collection agents) to enforce payment of amounts
owed.
IV. GENERAL FUND RESERVE POLICY
It will be the city's policy to maintain an unreserved and undesignated General Fund fund balance
reserve equal to at least ten percent (10%) of total actual General Fund Expenditures for the
preceding year. The fund balance will be maintained to provide sufficient working capital and
cash flow for daily financial needs and to help offset significant revenue shortfalls that may occur
due to economic changes.
4
V. ACCOUNTING, AUDITING, AND FINANCIAL REPORTING POLICY
The City will establish and maintain those funds required by law and sound financial
administration. Only the minimum number of funds consistent with legal and operating
requirements will be established, however, because unnecessary funds result in inflexibility,
undue complexity, and inefficient financial administration.
An independent full scope audit of all city funds will be performed on an annual basis. Selection
of the independent auditor will be made by the City Commission based on a competitive request
for proposal (RFP) process every three to five years.
The city will prepare a Comprehensive Annual Financial Report (CAFR) in accordance with
Generally Accepted Accounted Principles (GAAP) as outlined by the Governmental Accounting
Standards Board (GASB). It will be the city's goal to complete the annual audit and prepare the
CAFR within 120 days of the end of the fiscal year.
The city shall submit annually its CAFR to the Certificate of Achievement for Excellence in
Financial Reporting Program sponsored by the Government Finance Officers Association.
Recommendations made by GFOA reviewers shall be incorporated into the city's CAFR for the
subsequent year.
VI. DEBT POLICY
EXTERNAL DEBT
The City of Muskegon will not use long-term debt to finance current operations.
The City of Muskegon will follow a policy of full disclosure and report all material facts about its
financial condition in a timely manner.
The retirement of bonds issued by the city (or its authorities) will be equal to or less than the
useful life of the project being funded.
Whenever possible the City of Muskegon (including its authorities) will limit its issuance of debt to
a maximum of $10 million per year to maintain the yield advantages associated with bank
qualified obligations.
The city will structure bond issues to maintain a level or decreasing debt service schedule and
maintain debt service payments as a predictable and manageable part of the operating budget.
"Pay-As-You-Go" financing will be used when practical. However, when the city utilizes long-
term debt financing it will ensure that the debt is financed soundly by:
• Conservatively projecting revenue sources that will be utilized to repay the debt.
• Financing the improvement over a period not greater than the useful life of the
improvement, and
• Determining that the benefits to be derived outweigh the total costs (including interest
costs) of the project.
Capital lease, certificates of participation, and lease-purchase financing will be treated as debt
financing and be subject to the same policies.
The city (and its Authorities) will normally issue debt through a competitive process in which
formal bids will be solicited from as many interested parties as possible. The city will award sale
of its bonds to the responsible bidder whose bid produces the lowest "true interest cost" (TIC) to
the city over the life of the bond issue.
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Under some circumstances, it is in the city's best interest to issue debt through a negotiated sale
process instead of using a competitive process. The negotiated sale process will only be used
when: 1) the nature of the debt issue is unique and requires particular skills from the investment
banks involved, 2) the interest rate environment or other economic factors that may affect the
issue are particularly volatile and the negotiated sale process can provide needed stability or, 3)
the debt issue is bound by a closing deadline. In all cases where the negotiated process is
utilized, the underwriter/manager will be selected by a competitive review of their fees,
qualifications, and recent performance.
INTERFUND LOANS
In some situations it may be cost effective to loan money from one city fund to another in lieu of
borrowing from external sources. Such interfund loans may only be made with formal approval of
the City Commission including establishment of a fixed repayment schedule. Interest on
interfund loans will be charged at the rate then available on U.S. Treasury notes having a
comparable maturity.
VII. FIXED ASSETS CAPITALIZATION AND DEPRECIATION POLICY
CAPITALIZATION THRESHOLDS
Fixed assets are assets of a long-term character (i.e. a minimum useful life of two years) which
are intended to continue to be held and used, such as land, buildings, improvements other than
buildings, machinery, vehicles and equipment. This policy is intended to establish guidelines for
accounting for, capitalizing and depreciating fixed assets held by the various city funds.
Category Capitalization Threshold (Unit Cost)
Land $ N/A
Land Improvement 10,000
Buildings 10,000
Equipment 10,000
Vehicles 10,000
Office Equipment and Furniture 10,000
Only those items having unit costs in excess of the threshold limits specified above will be
considered fixed assets for purposes of city accounting records. Fixed assets in the city's
proprietary type funds (i.e. Enterprise, Internal Service) shall be capitalized in the year of
purchase and depreciated over their estimated useful lives. Fixed assets of all other funds shall
be maintained by the City and depreciated over their estimated useful lives and shown on the
City's full accrual Government Wide Statement. These include certain public domain general
fixed assets consisting of improvements such as roads, bridges, curbs and gutters, streets and
sidewalks, drainage systems, and lighting systems.
General fixed assets are valued at historical cost or estimated historical cost if actual cost is not
available. Donated assets are valued at their estimated fair value on the date donated. Property
and equipment of the enterprise funds and internal service funds are carried at cost.
DEPRECIATION AND ESTIMATED USEFUL LIFE
Depreciation of Fixed Assets in the city's Proprietary Funds shall be accomplished using the
simple straight life method. The estimated useful life of assets will be based on IRS policies, past
experience, or other reliable sources. Useful lives typically will not exceed fifty (50) years.
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VIII. LIABILITY INSURANCE CLAIM SETTLEMENTS
Under the Michigan Municipal Risk Management Authority (MMRMA) program the city is self-
insured for the first $100,000 of any single liability claim. A portion of the city's annual "premium"
paid to MMRMA is set aside in a reserve account to cover this retained risk and no disbursement
can be made from this reserve without prior authorization from the city.
When a claim is made against the city, all pertinent information is turned over to MMRMA. The
"claims adjusting" section of MMRMA then investigates the claim thoroughly and recommends a
course of action to the city (e.g. deny claim, settle for no more than X dollars, etc.).
The following policy will govern the handling of such liability claims:
• The City Manager or the Finance Director is authorized to approve settlements up to
$10,000 provided that the settlement is consistent with the recommendation of the
MMRMA.
• Settlements for amounts Jess than $10,000 which are not consistent with the
recommendation of MMRMA may only be authorized with concurrence of the City
Attorney and timely notification of the City Commission.
• Proposed claim settlements in excess of $10,000 must be reviewed and approved by the
City Commission.
IX. POLICY FOR ADJUSTING UNCOLLECTIBLE ACCOUNTS
During the normal course of conducting its business, the city invoices outside parties for a variety
of reasons ranging from taxes, fines, or penalties to the sale of city services or goods. Most
billings are paid promptly and the majority of those that are not are ultimately collected through
discontinuance of service, use of third-party collection services, or other means. However, it is
periodically necessary to adjust the city's receivable records by "writing-off' accounts deemed to
be uncollectible or by making an adjustment to reflect the negotiated settlement of a disputed
account.
The city's policy for adjusting accounts receivable shall be:
The City shall maintain in its general ledger records delinquent accounts receivables for the
five most recent years. A reserve for estimated uncollectible accounts receivable shall be
maintained in the general ledger. The reserve will be equal to one-half of the fund's
delinquent accounts receivable outstanding as of each December 31. At the close of each
fiscal year, the City will write-off any balances remaining uncollected that are more than five
years old. Balances write-off may be turned over to a private collection agency for additional
collection efforts.
For receivables under five years old preliminary authorization for adjustments or write-offs of
individual accounts receivable for amounts not in excess of $10,000.00 may be given by the
City Manager or other responsible official designated by the City Manager (e.g. the City
Treasurer in the case of water bills). At least once each year (or more frequently if deemed
necessary) a comprehensive listing of all such accounts together with the reasons the
accounts are deemed uncollectible will be presented to the City Commission for review and
formal approval.
The adjustment or write-off of individual accounts receivable for amounts in excess of
$10,000.00 shall be approved by the City Commission on an individual basis.
Adjustments to accounts receivable which are determined by the City Treasurer to be necessary
due to administrative error may be made without going through the procedure outlined above.
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X. POLICY FOR ADJUSTING DELINQUENT REAL & PERSONAL
PROPERTY TAXES
The city's policy for adjusting delinquent personal property taxes shall be as follows:
• A reserve for estimated uncollectible personal property taxes shall be maintained in each
fund having delinquent personal property tax receivables. The reserve will be equal to
one-half of the fund's delinquent personal property taxes outstanding as of each
December 31.
• The city shall only maintain in its general ledger records delinquent personal property tax
receivables for the two most recent years in an attempt to comply with the GASB 60 day
rule. At the close of each fiscal year, the city will write-off any balances remaining
uncollected that are more than two years old. Balances written off may be turned over to
a private collection agency for additional collection efforts.
Real property taxes that become delinquent are turned over to the County treasurer for collection.
The City is generally made whole at the outset of the collection process and only "charged back"
for those taxes that remain delinquent after several years of unsuccessful collection effort. If in
the City's judgement a delinquent account will ultimately be uncollectible through this process the
City will escrow the funds received from the County to cover an eventually charge back.
XI. INVESTMENT POLICY
The City of Muskegon ("the City") is located in Western Michigan on the shores of Lake Michigan.
The City covers eighteen square miles and is the largest city on the Eastern Shore of Lake
Michigan. The City operates under a Commission-Manager form of government, with a seven-
member commission that appoints the City Manager and the Director of Finance. The Director of
Finance serves as the City's Investment Officer as defined in Michigan Compiled Laws (MCL)
Chapter 129.91.
The following Investment Policy addresses the methods, procedures and practices which must
be exercised to ensure effective and judicious fiscal and investment management of the City's
funds. The purpose of this Investment Policy is to establish the investment scope, objectives,
delegation of authority, standards of prudence, reporting requirements, eligible investments and
transactions, diversification requirements, risk tolerance, and safekeeping and custodial
procedures for the investment of the funds of the City of Muskegon.
This Investment Policy has been adopted by the City Commission of the City of Muskegon by
resolution on October 11, 2006 and it replaces any previously dated investment policies,
guidelines or lists of authorized investments.
SCOPE
This Policy shall apply to the investment management of all financial assets under control of the
City with the exception of the City's Police and Fire Pension fund, the City Employees' Pension
fund and the Retiree Health Care Fund, which are administered separately by their respective
boards of trustees.
All excess cash, except for cash in certain restricted and special accounts, shall be pooled for
investment purposes. The investment income derived from the pooled investment account shall
be allocated to the contributing funds based upon the proportion of the respective average
balances relative to the total pooled balance. Interest earnings shall be distributed to the
individual funds on a monthly basis.
OBJECTIVES
The City's principal investment objectives are:
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• Preservation of capital and protection of investment principal.
• Maintenance of sufficient liquidity to meet anticipated cash flows.
• Attainment of a market value rate of return.
PRUDENCE
The standard of prudence to be used for managing the City's assets shall be the "prudent
investor rule" which in general states that investments shall be made with the judgment and care
that under the circumstances then prevailing, persons of prudence, discretion and intelligence
would exercise in the management of their .own affairs, not in regard to speculation but in regard
to the permanent disposition of their funds, considering the probable income as well as the
probable safety of their capital.
The City's investment program shall be designed and managed with a degree of professionalism
that is worthy of the public trust. The City recognizes that no investment is totally risk Jess and
that the investment activities of the City are a matter of public record. Accordingly, the City
recognizes that occasional measured losses are inevitable in a diversified portfolio and shall be
considered within the context of the overall portfolio's return, provided that adequate
diversification has been implemented and that the sale of a security is in the best long-term
interest of the City.
The Director of Finance and authorized investment personnel acting in accordance with written
procedures and exercising due diligence shall be relieved of personal responsibility for an
individual security's credit risk or market price changes, provided that the deviations from
expectations are reported in a timely fashion to the City Commission and appropriate action is
taken to control adverse developments.
ETHICS AND CONFLICTS OF INTEREST
Elected officials and employees involved in the investment process must refrain from personal
business activity that could conflict with proper execution of the investment program or which
could impair or create the appearance of an impairment of their ability to make impartial
investment decisions. Employees and investment officials must disclose to the City Manager any
financial interests they have in financial institutions that conduct business with the City and they
must subordinate their personal investment transactions to those of the City.
DELEGATION OF AUTHORITY
Responsibility for the investment of the City's funds covered by this Investment Policy resides
with the Director of Finance who shall develop written administrative procedures and internal
controls, consistent with this Policy, for the operation of the City's investment program.
The Director of Finance may delegate the authority to conduct investment transactions and to
manage the operation of the investment portfolio to the Assistant Finance Director and/or the City
Treasurer. No person may engage in an investment transaction except as expressly provided
under the terms of this Investment Policy.
The City may engage the support services of outside professionals in regard to its investment
program, so long as it can be clearly demonstrated that these services produce a net financial
advantage or necessary financial protection of the City's financial resources.
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AUTHORIZED SECURITIES AND TRANSACTIONS
All investments of the City shall be made in accordance with MCL Chapter 129.91 - 129.96 (Act
20 of 1943). Any revisions or extensions of these sections of MCL will be assumed to be part of
this Investment Policy immediately upon being enacted.
The City has further restricted the investment of funds to the following types of securities and
transactions:
1. U.S. Treasury Obligations: Treasury Bills, Treasury Notes and Treasury Bonds with a final
maturity not exceeding five years from date of trade settlement.
2. Federal Instrumentality Securities: Debentures, discount notes, step-up securities and
callable securities, with a final maturity not exceeding five years from the date of trade
settlement, issued by the following only: Federal Home Loan Banks (FHLB), Federal National
Mortgage Association (FNMA), Federal Farm Credit Banks (FFCB) and Federal Home Loan
Mortgage Corporation (FHLMC).
3. Repurchase Agreements: With a termination date not to exceed one year collateralized by
U.S. Treasury Obligations or Federal Instrumentality Securities listed in items 1 and 2 above
with the maturity of the collateral not exceeding 10 years. For the purpose of this section, the
term collateral shall mean purchased securities under the terms of the City's approved
Master Repurchase Agreement. The purchased securities shall have a minimum market
value including accrued interest of 102 percent of the dollar value of the transaction.
Collateral shall be held in the City's custodian bank as safekeeping agent, and the market
value of the collateral securities shall be marked-to-market daily.
Repurchase Agreements shall be entered into only with dealers who have executed a City
approved Master Repurchase Agreement with the City and who are recognized as Primary
Dealers with the Federal Reserve Bank of New York or have a primary dealer within their
holding company structure. Primary Dealers approved as Repurchase Agreement
counterparties shall have a short-term credit rating of at least A-1 or the equivalent and a
long-term credit rating of at least A or the equivalent by at least one service that rates the
firm. The Director of Finance shall maintain a copy of the City's approved Master
Repurchase Agreement along with a list of the broker/dealers who have an executed Master
Repurchase Agreement with the City.
4. Commercial Paper: With maturities not exceeding 270 days from the date of trade settlement
which is rated at least A-1 by Standard and Poor's, P-1 by Moody's or F1 by Fitch at the time
of purchase by at least two of these services which rate the commercial paper. The
aggregate investment in commercial paper shall be limited to 25% of the total portfolio.
5. Eligible Bankers Acceptances: with original maturities not exceeding 180 days from the date
of trade settlement, rated at least A-1 by Standard & Poor's, P-1 by Moody's or F-1 by Fitch,
issued on United States banks whose senior long-term debt is rated, at the time of purchase,
A+ by Standard & Poor's, A 1 by Moody's or A+ by Fitch. The aggregate investment in eligible
bankers acceptances shall be limited to 25% of the total portfolio.
6. Time Certificates of Deposit: with maturities not exceeding five years, in state or nationally
chartered banks whose deposits are insured by the Federal Deposit Insurance Corporation
(FDIC) or collateralized in accordance with MCL 129.91. Time Certificates of Deposit
exceeding $100,000, may be purchased only from financial institutions which meet the
criteria set forth under the section of this policy, "Selection of Depository Banks." The
aggregate investment in time certificates of deposit shall be limited to 25% of the total
portfolio.
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7. Mutual Funds: registered under the Investment Company Act of 1940 which (1) are "no-load"
(meaning no commission or fee shall be charged on purchases or sales of shares); (2) have
a daily net asset value per share that fluctuates not more than +/- 1.5% of the fund's original
net asset value; and (3) limit assets of the fund to securities authorized in MCL 129.91 as
legal investments for municipalities.
8. Money Market Mutual Funds: registered under the Investment Company Act of 1940 which
(1) are "no-load" (meaning no commission or fee shall be charged on purchases or sales of
shares); (2) have a constant daily net asset value per share of $1.00; (3) limit assets of the
fund to securities authorized in MCL 129.91 as legal investments for municipalities; and (4)
have a maximum stated maturity and weighted average maturity in accordance with Federal
Securities Regulation 2a-7.
9. Investment Pools: organized under the Surplus Funds Investment Pool Act (MCL 129.111 to
129.118) which: (1) are "no-load" (i.e. no commission fee shall be charged on purchases or
sales of shares); (2) have a constant daily net asset value per share of $1.00; (3) limit assets
of the fund to securities authorized in MCL 129.91 as legal investments for municipalities;
and (4) have a maximum stated maturity and weighted average maturity in accordance with
Federal Securities Regulation 2a-7.
10. Joint lnterlocal Investment Ventures organized under the Urban Cooperation Act of 1967,
(MCL 124.501 to 124.512) which (1) are "no-load (i.e. no commission fee shall be charged on
purchases or sales of shares); (2) have a constant daily net asset value per share of $1.00;
(3) limit assets of the fund to securities authorized in MCL 129.91 as legal investments for
municipalities; and (4) have a maximum stated maturity and weighted average maturity in
accordance with Federal Securities Regulation 2a-7.
It is the intent of the City that the foregoing list of authorized securities be strictly interpreted. Any
deviation from this list must be preapproved by the City Commission.
The City recognizes that bond proceeds may, from time to time, be subject to the provisions of
the Tax Reform Act of 1986, Federal Arbitrage Regulations, as amended. Due to the legal
complexities of arbitrage law and the necessary immunization of yield levels to correspond to
anticipated cash flow schedules, the reinvestment of such debt issuance may, upon the advice of
Bond Counsel or financial advisors, deviate from the maturity limitation provisions of this Policy.
INVESTMENT DIVERSIFICATION AND LIQUIDITY
It is the intent of the City to diversify the investments within the portfolio to avoid incurring
unreasonable risks inherent in over investing in specific instruments, individual financial
institutions or maturities. Nevertheless, the asset allocation in the portfolio should be flexiole
depending upon the outlook for the economy, the securities markets, and the City's anticipated
cash flow needs.
The maximum investment in each of the following categories shall not exceed 25% of the total
portfolio: Commercial Paper, Eligible Bankers Acceptances and Time Certificates of Deposit.
To the extent possible, investments shall be matched with anticipated cash flow requirements
and known future liabilities. Unless matched to a specific cash flow requirement, the City will not
invest in securities maturing more than 5 years from the date of trade settlement. The City shall
maintain at least 10% of its total portfolio in instruments maturing in 30 days or less. The
weighted average final maturity of the City's portfolio shall at no time exceed 3 years.
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Diversification and liquidity requirements shall apply to the portfolio in the aggregate and not to
individual funds within the portfolio.
The maturity provisions in the previous paragraph do not apply to the city's non-expendable trust
funds (the Cemetery Perpetual Care fund, the Reese Playfield Trust, and the Hackley Park
Trust). These funds may be invested in U.S. Treasury Obligations and Federal Instrumentality
Securities permitted herein with maturities as long as 30 years.
Bond proceeds are not pooled for investment purposes and shall be excluded from calculations
of the diversification and liquidity requirements in this section. Other deviations from the
diversification and liquidity requirements in this section can be made only with the advance
written authorization of the City Commission.
SELECTION OF BROKER/DEALERS
The Director of Finance shall maintain a list of authorized broker/dealers approved for investment
purposes, and it shall be the policy of the City to purchase securities only from those authorized
firms.
To be eligible, a broker/dealer must meet at least one of the following criteria:
1. Be recognized as a Primary Dealer by the Federal Reserve Bank of New York or have a
primary dealer within their holding company structure,
2. Report voluntarily to the Federal Reserve Bank of New York, or
3. Qualify under Securities and Exchange Commission (SEC) Rule 15c3-1 (Uniform Net
Capital Rule).
Broker/dealers will be selected by the Director of Finance on the basis of their expertise in public
cash management and their ability to provide services for the City's account. Approved
broker/dealers and the firms they represent shall be licensed to do business in the State of
Michigan and as such are subject to the provisions of Michigan Statutes relating to the
investment of public funds. Broker/dealers shall attest in writing that they have received and
reviewed a copy of this Policy.
Each authorized broker/dealer shall be required to submit and annually update a City approved
Broker/Dealer Information Request form which includes the firm's most recent financial
statements. The Director of Finance shall maintain a list of approved broker/dealers, along with
each firm's most recent Broker/Dealer Information Request form.
The City may purchase commercial paper from direct issuers even though they are not on the
approved broker/dealer list as long as they meet the criteria outlined in Item 4 of the Authorized
Securities and Transactions section of this Policy.
COMPETITIVE TRANSACTIONS
Each investment transaction shall be competitively transacted with broker/dealers who have been
authorized by the City. At least three broker/dealers shall be contacted for each transaction and
their bid and offering prices shall be recorded.
If the City is offered a security for which there is no other readily available competitive offering,
then the Director of Finance will document quotations for comparable or alternative securities.
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SELECTION OF DEPOSITORY BANKS
Periodically, through a Request for Proposal process, the City shall select a bank to provide
checking account and other banking services for the City. To be eligible for authorization, a bank
must (1) be a member of the FDIC, (2) be eligible to be a depository of funds belonging to the
State of Michigan, (3) maintain a permanent office within the City and (4) meet the minimum
credit criteria (described below) of credit analysis provided by commercially available bank rating
services.
Notwithstanding provision (3) in the preceding paragraph, Time Certificates of Deposit described
in the section of this policy, "Authorized Securities and Transactions" may be purchased from
authorized banks if they maintain a principal office or a branch office in the State of Michigan.
The City shall utilize Highline Banking Data Services to perform credit analysis on banks seeking
authorization. The analysis shall include a composite rating, and individual ratings of liquidity,
asset quality, profitability and capital adequacy. To be eligible for designation to provide
depository and other banking services, a bank shall have an average Highline Banking Data
Services Rating of 30 or better on a scale of zero to 99 with 99 being the highest quality for the
four most recent reporting quarters.
The Director of Finance shall maintain a file of the most recent credit rating analysis reports
performed for each approved bank. Bank credit analysis shall be performed on a semi-annual
basis.
SAFEKEEPING AND CUSTODY
The Director of Finance shall select a bank to provide safekeeping and custodial services for the
City. A City approved safekeeping agreement shall be executed with the custodian bank prior to
utilizing that bank's safekeeping services. The custodian bank will be selected on the basis of its
ability to provide services for th<);.City's acco!Jnt and the competitive pricing of its safekeeping
related services, and shall have an average Highline Banking Data Services Rating of 20 or
better on a scale of zero to 99 with 99 being the highest quality for the four most recent reporting
quarters ..
The Director of Finance shall maintain a file of the credit rating analysis reports performed for the
custodian bank. Bank credit analysis shall be performed on a semi-annual basis.
The purchase and sale of securities and repurchase agreement transactions shall be settled on a
delivery versus payment basis. It is the intent of the City that ownership of all securities be
perfected in the name of the City. Sufficient evidence to title shall be consistent with modern
investment, banking and commercial practices.
All investment securities, except Certificates of Deposit, Mutual Funds, Investment Pools and
Joint lnterlocal Investment Ventures, purchased by the City will be delivered by either book entry
or physical delivery and will be held in third-party safekeeping by the custodian bank, its
correspondent bank or its Depository Trust Company (DTC) participant account.
All Fed wireable book entry securities owned by the City shall be evidenced by a safekeeping
receipt or a customer confirmation issued to the City by the custodian bank stating that the
securities are held in the Federal Reserve system in a customer account for the custodian bank
which will name the City as "customer."
All DTC eligible securities shall be held in the custodian bank's Depository Trust Company (DTC)
participant account and the custodian bank shall issue a safekeeping receipt evidencing that the
securities are held for the City as "customer."
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All non-book entry (physical delivery) securities shall be held by the custodian bank's
correspondent bank and the custodian bank shall issue a safekeeping receipt to the City
evidencing that the securities are held by the correspondent bank for the City as "customer."
PORTFOLIO PERFORMANCE
The investment and cash management portfolio shall be designed to attain a market value rate of
return throughout budgetary and economic cycles, taking into account prevailing market
conditions, risk constraints for eligible securities, and cash flow requirements.
The performance of the City's investments shall be compared to the average yield on the U.S.
Treasury Security that most closely corresponds to the portfolio's actual weighted average
effective maturity. When comparing the performance of the City's portfolio, its rate of return will
be computed net of all fees and expenses.
REPORTING
Accounting and reporting on the City's investment portfolio shall conform to Generally Accepted
Accounting Principles (GAAP) and the Governmental Accounting Standards Board (GASB)
recommended practices. On a monthly basis, the Director of Finance shall submit to the City
Commission an investment report, listing the investments held by the City, the current market
valuation of the investments and performance results. The report shall include a summary of
investment earnings during the period. A record shall be maintained by the City of all bids and
offerings for security transactions in order to ensure that the City receives competitive pricing.
Reports prepared by outside advisors shall be sent to the City's Director of Finance.
POLICY REVISIONS
This Investment Policy shall be reviewed periodically by the Director of Finance and may be
amended by the City Commission as conditions warrant.
GLOSSARY OF TERMS USED
Bankers' Acceptance (BA): A draft or bill or exchange accepted by a bank or trust company.
The accepting institution guarantees payment of the bill , as well as the issuer.
Broker: A broker brings buyers and sellers together for a commission paid by the initiator of the
transaction or by both sides.
Callable Bond: A bond issue in which all or part of its outstanding principal amount may be
redeemed before maturity by the issuer under specified conditions.
Certificate of Deposit: A time deposit with a specific maturity evidenced by a certificate. Large
denomination CDs are typically negotiable.
Collateral: Securities or property pledged by a borrower to secure payment.
Commercial Paper: An unsecured promissory note with a fixed maturity of no more than 270
days. Commercial paper is normally sold at a discount from face value.
Dealer: A dealer, as opposed to a broker, acts as a principal in all transactions, buying and
selling for his/her own account.
Debenture: A bond secured only by the general credit of the issuer.
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Delivery versus Payment: There are two methods of delivery of securities: delivery versus
payment and delivery versus receipt (also called free). Delivery versus payment is delivery of
securities with an exchange of money for the securities. Delivery versus receipt is delivery of
securities with an exchange of a signed receipt for the securities.
Discount Securities: Non-interest bearing money market instruments that are issued at a
discount and redeemed at maturity for full face value.
Diversification: Dividing investment funds among a variety of securities offering independent
returns.
Federal Deposit Insurance Corporation (FDIC): A federal institution that insures bank and
savings and loan deposits, currently up to $100,000.
Federal Funds Rate: The rate of interest at which Fed funds are traded. This rate is currently
pegged by the Federal Reserve through open-market operations.
Fed Wire: A computer system linking member banks and other financial institutions to the Fed,
used for making inter-bank payments of Fed funds and for making deliveries of and payments for
Treasury, agency and book-entry mortgage backed securities.
Investment Adviser's Act: Legislation passed by Congress in 1940 that requires all investment
advisers to register with the Securities and Exchange Commission. The Act is designed to
protect the public from fraud or misrepresentation by investment advisers.
Liquidity: A liquid asset is one that can be converted easily and rapidly into cash without a
substantial loss of value.
Local Government Investment Pool: The aggregate of all funds from political subdivisions that
are placed in custody of pools authorized under the laws of the State.
Mark-to-market: The process whereby the book value or collateral value of a security is
adjusted to reflect its current market value.
Market Value: Current market price of a security.
Master Repurchase Agreement: A written contract covering all future transactions between the
parties to repurchase or reverse repurchase agreements that establish each party's rights in the
transactions. A master agreement will often specify, among other things, the right of the buyer-
lender to liquidate the underlying securities in the event of default by the seller-borrower.
Maturity: The date upon which the principal or stated value of an investment becomes due and
payable.
Money Market Mutual Fund: A mutual fund that limits its investments to some or all types of
money market instruments.
Net Asset Value: The market value of one share of an investment company, such as a mutual
fund.
No Load Fund: A mutual fund that does not levy a sales charge on the purchase of its shares.
Portfolio: Collection of securities held by an investor.
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Primary Dealer: A group of government securities dealers who submit daily reports of market
activity and positions and monthly financial statements to the Federal Reserve Bank of New York
and are subject to its informal oversight. Primary dealers include Securities and Exchange
Commission (SEC)-registered securities broker-dealers, banks, and a few unregulated firms.
Prudent Person Rule: Investments shall be made with judgment and care, under circumstances
then prevailing, which persons of prudence, discretion and intelligence exercise in the
management of their own affairs, not for speculation, but for investment, considering the probable
safety of their capital as well as the probable income to be derived.
Rate of Return: The yield obtainable on a security based on its purchase price or its current
market price. This may be the amortized yield to maturity on a bond or the current income return.
Ratings: An evaluation of an issuer of securities by Moody's, Standard & Poor's, Fitch, or other
rating services of a security's credit worthiness.
Repurchase Agreements: A holder of securities sells securities to an investor with an
agreement to repurchase them at a fixed price on a fixed date. The security "buyer" in effect
lends the "seller" money for the period of the agreement, and the terms of the agreement are
structured to compensate him/her. Dealers use repurchase agreements extensively to finance
their positions.
Rule 2a-7 of the Investment Company Act: Applies to all money market mutual funds and
mandates such funds to maintain certain standards, including a 13-month maturity limit and a 90-
day average maturity on investments, both designed to help the fund maintain a constant one
dollar ($1.00) net asset value.
Safekeeping: Holding of assets (e.g., securities) by a financial institution.
Treasury Bills: A non-interest bearing discount security issued by the U.S. Treasury to finance
the national debt. Most bills are issued to mature in three months or six months.
Treasury Bonds: Long-term U.S. Treasury securities having initial maturities of more than ten
years.
Treasury Notes: lntermediale term coupon bearing U.S. Treasury securities having initial
maturities of from two to ten years.
Yield: The rate of annual income return on an investment, expressed as a percentage.
XII. PETTY CASH USES AND LIMITS
Petty cash accounts may be established in such locations and in such amounts as may be
determined necessary by the City Manager. Petty cash disbursements up to $300.00 are
permitted for the following purposes: 1) for the expedited purchase of minor goods or services, 2)
to provide immediate reimbursement to employees for travel or other costs paid out of their own
pocket in the conduct of city business and, 3) to provide immediate refunds to customers as
warranted. All uses of petty cash must be fully supported by receipts or other appropriate
documentation. Petty cash procedures shall be reviewed periodically by the City's Finance
Department.
Employees traveling on city business may receive a petty cash travel advance of up to $300.00
from the City Treasurer's Office to be used for travel purposes. The employee's department
head must approve travel advances. Cash advances of more than $300.00 are discouraged and
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will only be made upon written authorization of the employee's department head and the city
manager.
In order to distinguish travel advance requests from expense reporting, while simplifying the
process to the extent possible, there is a separate form for that purpose. Please note that with
the Request for Petty Cash Travel Advance form, the requesting party must acknowledge that
receipts and any money owed the city must be returned within ten days of return from travel. If
the money and/or expense documentation is not returned, the employee authorizes the full
amount of the travel advance to be deducted from their paycheck along with a $5.00 processing
fee. The Request for Petty Cash Travel Advance forms are available through the City
Treasurer's Office.
Note that all travel expenses should be reported on the Travel Expense Reporting Form as soon
as possible upon returning from travel. Travel Expense Reporting Forms are available on the
City's Intranet Page.
XIII. PROCEEDS FROM SALE OF CITY-OWNED REAL ESTATE
From time to time the city sells real estate that it owns. It is city policy that, unless required by
law or by specific direction of the City Commission, proceeds from such property sales shall be
deposited to the city's Public Improvement Fund to be used to finance general purpose capital
needs.
In the case of tax reverted property sold by the city, sale proceeds will first be used to reimburse
appropriate city funds for expenses incurred in maintaining and selling the property. Any
remaining sale proceeds will be distributed to the city and other taxing jurisdictions in the same
manner as regular property taxes.
XIV. PROCUREMENT CARD PROGRAM POLICY
GENERAL
Regular government purchasing methods, such as purchase orders, can be cumbersome and
costly in relation to the value of goods being purchased. To promote operational efficiency, the
city has adopted a procurement card purchasing program for use with small dollar value
purchases.
A number of unique controls have been developed for the procurement card program. These
controls will ensure that cards can be used only for specific purchases and within specific dollar
limits. In addition, documentation of all purchases is required by each cardholder with further
approval from the department head and the City Manager's office before payment is made.
The unique procurement card issued by the city has the employee's name embossed on it
together with the City's tax-exempt status. No one other than the employee in whose name is on
the card may use the card. CITY ISSUED PROCUREMENT CARDS MAY ONLY BE USED BY
DESIGNATED CITY EMPLOYEES FOR THE PURCHASE OF GOODS OR SERVICES FOR
THE OFFICIAL BUSINESS OF THE CITY OF MUSKEGON. UNDER NO CIRCUMSTANCES IS
THE PROCUREMENT CARD TO BE USED FOR PERSONAL PURCHASES.
DESIGNATION OF RESPONSIBLE OFFICIAL
The Finance Director is designated as the official responsible for overseeing compliance with this
procurement card policy including procurement card issuance, accounting for procurement card
transactions, monitoring and payment of procurement card statements.
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TRANSACTION AMOUNTS
The procurement card may be used for purchases of individual items up to $2,500.00 in value.
The total monthly dollar value of transactions on each procurement card will generally be limited
to $5,000.00. The City Manager may establish higher monthly credit limits for employees whose
positions require higher than normal use of the procurement card. Also, procurement cards may
be used for individual purchases exceeding $2,500.00 with prior authorization of the City
Manager. The total combined authorized credit limit of all procurement cards issued by the city
shall not exceed five percent of the city's total budget for the current year. All purchases made
with a city procurement card must be fully supported by receipts, invoices, and other
documentation. Such documentation is to be attached to the monthly procurement card
statement and cardholder's reconciliation.
EMERGENCY TRANSACTION AMOUNTS
In the event of an extended emergency, the City Manager is authorized to establish higher
procurement card limits on a temporary basis so that city employees may procure goods and
services necessary to deal with the emergency. In the event this provision is activated, the City
Manager shall provide timely written notification to the City Commission of the employees whose
limits have been increased, the amount of increase, and the period of time the increases are
expected to be in effect. In no event are emergency transaction limits to be in effect for more
than thirty days.
INTEREST COSTS AND SALES TAX
It is the city's policy to pay in full each month on or before the due date the total balance due on
its procurement cards thereby avoiding interest charges. As a municipality, the city is exempt
from payment of state sales tax. City procurement card users are expected to exercise care in
conducting transactions to ensure that they are not incorrectly charged for sales tax.
OTHER PURCHASING POLICIES
The procurement card is a supplement to other purchasing procedures such as purchase orders.
As with the other purchasing methods, the following conditions must be met when using your
procurement card.
• Each single purchase may be comprised of multiple items, but the total cannot exceed
the single purchase dollar limit on your procurement card.
• When purchases exceed the established dollar limits, the normal procedures of using
purchase orders must be followed unless written authorization is given by the employee's
department head.
• The least expensive item that meets your basic needs should be bought and competitive
quotes must be obtained in accordance with existing purchasing policies.
• Cardholders must follow normal budgetary control procedures to ensure that sufficient
funds are available prior to making purchase.
• Use of the procurement card does not relieve the cardholder from complying with
Federal, State and city ordinances, regulations, policies and procedures.
• Use of the procurement card is not intended to replace effective procurement planning
which enable volume discounts.
• Purchases are not to be split to circumvent procurement regulations.
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RESTRICTIONS ON USE
The following list covers purchases for which procurement cards use is prohibited:
• Cash advances through bank tellers or teller machines.
• Traveler's Checks.
• Purchase of gasoline or diesel fuel for city vehicles except in emergencies (use city
pumps or Fuelman System).
• Purchase of items stocked in city inventory unless required in emergencies.
• Additional specific restrictions as deemed necessary by individual departments.
XV. ELECTRONIC PAYMENTS
Modern technology makes it possible to transfer funds electronically in lieu of issuing paper
checks. This technology offers many benefits to users including lower transaction costs, reduced
opportunities for fraud, and better cash management control. The city has effectively utilized this
technology for several years for purposes such as direct deposit of employee paychecks and
automatic payment of customers' water bills. The city supports continued use and expansion of
electronic payments technology for payment of vendors and other uses provided appropriate
internal controls are established. The City Manager and Finance Director, in conjunction with the
city's independent auditors, are authorized to develop the necessary procedures and controls for
expanded use of this technology in the City of Muskegon.
XVI. ACCEPTANCE OF CREDIT CARD PAYMENTS
The city has studied the costs and benefits of accepting credit card payments from customers
and has determined that credit card acceptance significantly enhances customer service and
provides administrative and other benefits to the city that outweigh the associated costs.
Accordingly, the city's policy shall be to accept credit cards for payment of all city bills and
invoices except routine payment of property taxes and income taxes. The City Treasurer or
Income Tax Administrator may permit payment by credit card for property or income taxes in
specific collection cases where they have determined it is in the city's best interest to do so.
XVII. TRAVEL POLICY AND GUIDELINES
SCOPE
This policy applies to all City of Muskegon elected officials, employees, board members,
volunteers and others when travelling on official City business and/or travelling at city expense.
AUTHORIZED TRAVEL
In the normal course of conducting City business, employees are required to travel for purposes
of work-related meetings, training opportunities, professional conferences, or other business
purposes. As part of the annual budget process, departments' request funding for travel purposes
for the coming year. Department heads have full authority to approve travel for their employees
(without additional authorization) within limits of the department's approved travel budget. Travel
that is significantly beyond the parameters of the department's travel budget should be approved
by the City Manager together with a corresponding budget adjustment if required.
TRAVEL COSTS
The City recognizes that its employees are responsible adults who take the same care in
incurring travel expenses while on City business as when traveling on personal business.
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Accordingly, this policy does not establish rigid cost limits for lodging, meals, or other travel costs.
Instead, the following general guidelines are offered while recognizing that special circumstances
may dictate that employees incur costs beyond these guidelines:
Lodging- Lodging costs should generally range between $60.00 - $120.00 per night depending
on location (based on single occupancy and including local taxes which the City is not exempt
from). Employees are relied upon to use their good judgment in selecting safe and economical
accommodations.
Two important factors to remember when making hotel reservations: 1) you should always ask for
special "government" rates that are typically deeply discounted from regular rates and, 2) you
should identify the travel as official City business exempt from state sales tax and inquire as to
any specific documentation requirements the hotel may have.
Costs for in-room movies, exercise rooms, or other hotel services not included in the basic room
rate are not reimbursable by the City.
Meals - Meal costs should generally not exceed $34.00 per person for each full day of travel
(including gratuities and taxes). For partial day travel or individual meal reimbursements, the
following limits will apply:
Breakfast $7.00 Travel Before 8:00AM
Lunch $9.00 Travel Before 12:00 Noon
Dinner $18.00 Travel Before 6:00 PM
Individual meal lirnits will apply regardless of whether or not reimbursement is sought for other
meals during the day. For example, it is not permissible to "skip" breakfast and lunch in order to
be reimbursed $34.00 for a dinner; instead, the dinner will only be reimbursed up to the $18.00
limit specified above. Often lunch or other meals are included in the registration price of a
seminar or conference. It is expected that employees attending these functions will partake in
these meals. The City will not reimburse meal costs if the employee chooses to forgo the
conference meal and dine elsewhere.
Transportation- Vehicle travel may be by either City vehicle or the employee's private vehicle. If a
private vehicle is used, reimbursement will be based on the number of miles traveled times the
allowable IRS business mileage rate in effect as of the preceding January 1. Air travel is
generally used for destinations more than 200 miles away. Employees are encouraged to take
advantage of discounted airfares and should utilize the Muskegon County Airport whenever
possible.
Employees may elect to use private vehicles for travel to destinations more than 200 miles away
and will be reimbursed based on the current IRS mileage rate or equivalent round trip coach
airfare for that destination, whichever is less. However, no reimbursement will be made for added
lodging or meal costs incurred because of the extra travel time.
Employees who elect to use their own vehicle should be aware that under the laws of the State of
Michigan, every vehicle owner is required purchase insurance that is the primary coverage for
that vehicle. While using a private vehicle for City travel, any automobile liability insurance
coverage in force for the City is excess coverage only for the employee/vehicle owner.
Other Costs- Other incidental costs (such as parking, ground transport, phone calls), should not
exceed an average of $15.00 per day. Rental car costs generally will not be reimbursed by the
city as it is expected that employees will utilize lodging in close proximity to the conference or
other event. In extraordinary circumstances where the employee deems it necessary to rent a
car, reimbursement will only be made with the written authorization of the city manager.
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Traveling With Spouse - There is no objection to employees inviting their spouse to travel along
on City business. However, the City will pay for none of the spouse's travel expenses and care
should be taken to maintain separate records of the employee's reimbursable travel costs.
PAYING FOR TRAVEL COSTS
Methods available for employees to pay travel costs include the following:
City Credit Card- Employees who have been issued a City of Muskegon credit card should use it
to pay their travel costs. Additionally, in each department a credit card holder is designated to use
their card to pay for other employees' travel costs that can be readily handled in advance (e.g.
airline tickets, conference registration, hotel, etc.).
Personal Credit Card - Employees who have not been issued a City credit card may find it
convenient to pay travel costs on their own personal credit card and receive cash reimbursement
from the City.
Petty Cash Advance - Employees traveling on city business may receive a petty cash travel
advance of up to $300.00 from the City Treasurer's Office to be used for travel purposes. The
employee's department head must approve travel advances. Cash advances of more than
$300.00 are discouraged and will only be made upon written authorization of the employee's
department head and the city manager.
In order to distinguish travel advance requests from expense reporting, while simplifying the
process to the extent possible, there is a separate form for that purpose. Please note that with
the Request for Petty Cash Travel Advance form, the requesting party must acknowledge that
receipts and any money owed the city must be returned within ten days of return from travel. If
the money and/or expense documentation is not returned, the employee authorizes the full
amount of the travel advance to be deducted from their paycheck along with a $5.00 processing
fee. The Request for Petty Cash Travel Advance forms are available through the City
Treasurer's Office.
Note that all travel expenses should be reported on the Travel Expense Reporting Form as soon
as possible upon returning from travel. Travel Expense Reporting Forms are available on the
City's Intranet Page.
REPORTING REQUIREMENTS FOR TRAVEL EXPENSE REIMBURSEMENT
Travel expense reporting has been simplified to the extent possible. The following guidelines
apply to travel expense reporting:
• Travel expenses are to be reported on the Travel Expense Reporting Form included with this
pamphlet as soon as possible upon returning from travel.
• Only expenses for which cash reimbursement is sought by the employee need to be
reported. Expenses paid in advance or expenses paid by City credit card should not be
included on the Travel Expense Reporting Form.
• Expenses must always be supported by receipts or other documentation.
• If total expenses to be reimbursed are $300.00 or less, you may obtain immediate
reimbursement from the City Treasurer's Office.
• If total expenses to be reimbursed are more than $300.00, they will be reimbursed as a
separately itemized, non-taxable category on the employee's regular bi-weekly paycheck.
Accordingly, travel expense report forms must be submitted to the Finance Office with all
necessary approvals no later than 5:00PM on the Friday prior to payday for reimbursement
on that paycheck.
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DOUBLE-DIPPING
It should go without saying that City expects honest and ethical behavior from its employees in
handling travel expense matters. Travel expenses that are partially or fully paid by outside
parties (such as federal agencies) are not to also be submitted for reimbursement from the City.
Any employee found to be deliberately misreporting travel expenses will be subject to disciplinary
action as well as potential prosecution.
LOCAL BUSINESS EXPENSES
In addition to travel expenses, it is sometimes appropriate for City employees to incur costs on
behalf of boards or committees or in the course of entertaining visiting guests. Department heads
have full authority to approve such costs (within budgetary limits) and the same general
guidelines as outlined above for employee travel expenses should be followed.
XXVIII. CELL PHONE POLICY
GOAL
It is the goal of the City to provide cellular telephones to City employees who need them to
perform the essential functions of their jobs. It is the further desire of the City to make sure that
cellular phones are used primarily for City business with the cost to the City kept as low as
possible.
SAFETY
The first concern of the City is the safety of their employees and the public. Employees should
use proper safety procedures at all times when using a cellular phone, especially while operating
equipment, driving on City business or performing similar duties. This includes pulling to the side
of the road if feasible when making or receiving a cellular phone call.
POLICY
Department Heads and Supervisors may acquire cellular phones for employee use when the
expense and use of the phone is justifiable in terms of improved service and responsiveness to
citizens and/or other employees. Cellular phones should be provided only when they are
required for the employee to perform essential functions of his/her job. Incidental personal use of
cellular phones is permissible. A personal call is one not related to City business or service to
the public.
It is preferable that City provided cellular phones not be used for personal business, but in the
event an employee elects to make or receive a personal call on a City provided cellular phone,
such personal calls should be kept to a minimum, for short duration, and should be made on the
employee's own time, such as during breaks or lunch, or before or after normal working hours.
Employees must reimburse the City for personal calls if total personal usage exceeds more than
30 minutes a month. Reimbursement will be determined by Finance based on current rates
annually. The employee and their Department Head/Supervisor will review the monthly
statements to determine the personal usage. It is the responsibility of the Department
Head/Supervisor to report personal usage to the Finance Department on a monthly basis.
With approval from the City Manager and Department Head an employee may elect to use
his/her own cellular phone for City business. The phone must be fully available during the
employee's scheduled work hours. Employees using their personal cellular phone will be
reimbursed per month for the use of their phone. This reimbursement is taxable income to the
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employee and the amount will be determined by Finance annually. Certain employees who are
required to have enhanced phone features for their job may be reimbursed at a higher rate with
approval from the City Manager.
XIX. CASH HANDLING POLICY FOR DEPARTMENTS ACCEPTING
PAYMENTS FROM CITIZENS
This policy is intended as a guide and supplement to other measures which should exist
surrounding the collection, timely deposit, and recording of collections in the records at each city
location.
For some city departments that have higher volumes of cash transactions, a cash register is used
to record receipt transactions. All transactions must be entered in the register and a receipt
must be issued to each customer. For other departments, the method for recording and
balancing is with a receipt book that has pre-numbered receipts. This method is acceptable with
the understanding that all transactions are entered, and a receipt is issued to every customer.
The pre-numbered receipt books are issued to city departments by the treasurer's office.
City departments handling cash have starting cash, which is used for making change for their
customers. When balancing out the daily transactions, you first remove the starting cash
amount. The receipts should offset the money (cash and checks) that you have remaining. If
this is not the case, then, you have an overage or a shortage. This must be noted on your pink
"cash-out" slip/sheet. Two signatures are required for all deposits. If a discrepancy (shortage or
overage) occurs, the department's authorized person (usually the department head) must review
and sign the cash-out slip/sheet.
For departments that have a cash register, on a daily or other periodic basis, you should enter a
summary of the receipt transactions into the GEMS Financial System's Cash Receipts module on
a "cash sheet" and generate a "Cash Receipts Edit" report. The "Cash Receipts Edit" report,
cash register transaction summary tape, money received, an adding machine tape and/or item
count of checks and the "cash-out" sheet should be hand delivered to the City Treasurer's office
each day. The treasurer's office will issue a receipt for the total amount deposited.
For departments without a cash register, on a daily or other periodic basis, you should prepare a
deposit report detailing the receipt transactions being deposited. Each deposit report includes all
pre-numbered receipt numbers used by the department since the last report, even if the receipt
was voided. The deposit report, money received, an adding machine tape and/or item count of
checks and the "cash-out" sheet should be hand delivered to the City Treasurer's office each day.
The treasurer's office will issue a receipt for the total amount deposited.
If assistance is needed in reference to any of the above, please contact the treasurer's office.
XX. ACCOUNTS PAYABLE
The city fully recognizes the importance of paying its vendors and suppliers in a timely manner.
Late vendor payments result in higher costs as well as damage to the city's reputation.
Accordingly, it is city policy to issue accounts payable (NP) checks on the second and fourth
Fridays of each month. This cycle will ensure that (provided timely departmental approvals are
obtained) vendor payments will be made within 30 days of invoice receipt.
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City departments are expected to plan their payment transactions around the regular NP check
cycle; off-cycle NP checks will not be permitted without the approval of the Finance Director or
Assistant Finance Director. In emergency situations where payment cannot wait for the regular
NP check cycle, arrangements can be made with the Finance Department to electronically
transfer funds to the vendor's account.
XXI. ACCOUNTS RECEIVABLE AND BANKRUPTCY
BASIC COLLECECTION PROCEDURES
Each department will input all invoices through the City's NR system software. Periodically, the
Income Tax Administrator I Deputy Treasurer will review all invoices over 90 days and may
request supporting account documentation from the department that originated the invoice. Upon
reviewing the account history, debtor information, and account balance, the Income Tax
Administrator I Deputy Treasurer will determine the appropriate collection action(s).
The following steps should be followed in collecting delinquent accounts. The size of the account
may influence the effort put into collection attempts. The expenditure of time, effort, and money
to collect large amounts is appropriate; however, the same effort expended on very small (under
$25.00) accounts is wasteful. The course of action may be one or more of the following:
a) Attempt to collect on the account in house:
1) A series of collection letters should be sent if payment is not received from
the billings.
2) Telephone contact is recommended if no explanation or payment is received
in response to billings or collections letters.
b) Proceed with legal collection efforts through Small Claims Court.
c) Forward account(s) to City Attorneys Office for consideration.
d) Delinquent accounts upon which the City is unsuccessful in collection through
the above procedures may be referred to a collection agency.
e) Requests the outstanding balance be submitted for write off.
From time to time, debtors may want to enter into negotiations regarding their delinquent
account(s). The Income Tax Administrator I Deputy Treasurer will have the authority to enter into
meaningful settlement negotiations with the debtor for accounts under $10,000.
LEGAL ACTION
Legal action may be used only as a last resort to collect on delinquent accounts. It will be up to
the Income Tax Administrator I Deputy Treasurer to determine which accounts warrant such
action taking into consideration time and added costs in collecting the delinquent account(s).
During the course of the legal process, settlement offers may be made by the debtor in an effort
to avoid further legal expenditures. The Income Tax Administrator I Deputy Treasurer has the
authority to enter into meaningful settlement negotiations with the debtor for accounts under
$10,000.
OBSERVATION OF COLLECTION LAWS
The Income Tax Administrator I Deputy Treasurer will ensure that all Federal, State and local
laws are observed and understood by all whom engage in collection activities on behalf of the
City of Muskegon.
BANKRUPTCIES
Bankruptcy notices should always be forwarded to the Income Tax Administrator I Deputy
Treasurer, regardless of whether the department receiving the notice of bankruptcy has an
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outstanding receivable balance due from the debtor or not. Other departments throughout the
City may also have business pending with the debtor and must be notified of the bankruptcy
status.
Upon receipt, the Income Tax Administrator I Deputy Treasurer will circulate a notice to various
departments which typically deal with receivable accounts and who may be maintaining a
collection account with the debtor. Departments wishing to be included in the routing on a
regular basis should contact the Income Tax Administrator I Deputy Treasurer.
If a department receives correspondence from the Income Tax Administrator I Deputy Treasurer
requesting information on outstanding debts involved in a bankruptcy, the department should
return to the Income Tax Administrator I Deputy Treasurer the requested information, with
supporting documents, within seven days of receipt. The Income Tax Administrator I Deputy
Treasurer will consolidate information from the City as a whole and prepare and file a claim on a
timely basis.
Departments utilizing an outside collection agency should notify the agency that upon receipt of a
bankruptcy notice, the agency is required to close and return the account to the City immediately.
Under no circumstances is an outside agency, such as a collection agency, to file a bankruptcy
claim on behalf of the City.
The Income Tax Administrator I Deputy Treasurer will review certain accounts that may be
forwarded to the City Attorney's Office for consideration due to the complexity of the bankruptcy
proceeding.
Upon receipt of a bankruptcy discharge or dismissal, the Income Tax Administrator I Deputy
Treasurer will notify all departments involved.
XXII. PAYROLL DEDUCTIONS
The city is required to make various deductions from employee paychecks for taxes, pension
contributions, union dues and other purposes mandated by law, union contracts, or terms of
employment. Additionally, the city offers a range of "voluntary" deduction programs deemed to
be of general benefit to employees. Examples include deferred compensation retirement
savings, ability to purchase additional life insurance through the city's carrier at favorable rates,
and U.S. Savings Bonds.
From time to time, outside firms (typically offering investment and/or insurance products)
approach the City about including their programs on the city's voluntary payroll deduction menu.
Although such programs are touted as "employee benefits having no-cost to the city", the fact is
that such programs can entail significant costs not only for payroll administration, but also in
terms of employee time consumed in marketing or educational efforts. Accordingly, city policy
regarding such requests is as follows: 1) all such requests must be submitted in writing to the city
manager's office; 2) after preliminary staff review and analyses of the benefits and costs, the
request will be forwarded to the labor-management committee for review and
recommendation; 3) if the labor-management committee recommends approval of the request, at
least thirty full-time employees must sign-up for the program before payroll deduction will be
started.
Nothing in this policy will prohibit the city from implementing voluntary deduction programs it
deems desirable even if they do not meet the criteria specified above.
XXIII. PENSIONS AND OTHER POST EMPLOYMENT BENEFITS
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It is the City's policy to have an annual independent actuarial valuation of all the City's retirement
benefits programs and to fund these programs according to actuary funding amounts.
XXIV. SOCIAL SECURITY NUMBER PRIVACY POLICY
Section 1. Purpose
The purpose of this policy is to protect confidential information from individuals and businesses
that have contact with the City of Muskegon.
Section 2. Definitions
(a) "Computer", "computer network", or "computer system" mean those terms as defined by the
City of Muskegon's Information Technology Department
(b) "Mailed" means delivered by United States mail or other delivery service that does not require
the signature of recipient indicating actual receipt.
(c) "Person" means an individual, partnership, Limited Liability Company, association,
corporation, public or nonpublic elementary or secondary school, trade school, vocational school,
community or junior college, college, university, state or local governmental agency or
department, or other legal entity.
(d) "Publicly display" means to exhibit, hold up, post, or make visible or set out for open view,
including, but not limited to, open view on a computer device, computer network, website, or
other electronic medium or device, to members of the public or in a public manner.
(e) "Website" means a collection of pages of the world wide web or internet, usually in HTML
format, with clickable or hypertext links to enable navigation from 1 page or section to another,
that often uses associated graphics files to provide illustration and may contain other clickable or
hypertext links.
Section 3. Prohibited use of social security number of employee, student, or
other individual; exceptions.
(1) Except as provided in subsection (2), a person shall not intentionally do any of the following
with the social security number of an employee, student, or other individual:
(a) Publicly display all or more than 4 sequential digits of the social security number.
(b) Subject to subsection (3), use all or more than 4 sequential digits of the social security
number as the primary account number for an individual. However, if the person is using the
social security number under subdivision (c) and as the primary account number on the effective
date of this act, this subdivision does not apply to that person until January 1, 2006.
(c) Visibly print all or more than 4 sequential digits of the social security number on any
identification badge or card, membership card, or permit or license.
(d) Require an individual to use or transmit all or more than 4 sequential digits of his or her social
security number over the internet or a computer system or network unless the connection is
secure or the transmission is encrypted.
(e) Require an individual to use or transmit all or more than 4 sequential digits of his or her social
security number to gain access to an internet website or a computer system or network unless
the connection is secure, the transmission is encrypted, or a password or other unique personal
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identification number or other authentication device is also required to gain access to the internet
website or computer system or network.
(f) Include all or more than 4 sequential digits of the social security number in or on any
document or information mailed or otherwise sent to an individual if it is visible on or, without
manipulation, from outside of the envelope or packaging.
(g) Subject to subsection (3), beginning January 1, 2006, include all or more than 4 sequential
digits of the social security number in any document or information mailed to a person, unless
any of the following apply:
(i) State or federal law, rule, regulation, or court order or rule authorizes, permits, or
requires that a social security number appear in the document.
(ii) The document is sent as part of an application or enrollment process initiated by the
individual.
(iii) The document is sent to establish, confirm the status of, service, amend, or terminate
an account, contract, policy, or employee or health insurance benefit or to confirm
the accuracy of a social security number of an individual who has an account,
contract, policy, or employee or health insurance benefit.
(iv) The document or information is mailed by a public body under any of the following
circumstances:
(a) The document or information is a public record and is mailed in
compliance with the freedom of information act, 1976 PA 442, MCL 15.231 to
15.246
(b) The document or information is a copy of a public record filed or recorded with a
county clerk or register of deeds office and is mailed by that office to a person
entitled to receive that record.
(c) The document or information is a copy of a vital record recorded as provided by
law and is mailed to a person entitled to receive that record.
(v) The document or information is mailed by or at the request of an individual whose
social security number appears in the document or information or his or her parent or
legal guardian.
(2) Subsection (1) does not apply to any of the following:
(a) A use of all or more than 4 sequential digits of a social security number that is authorized or
required by state or federal statute, rule, or regulation, by court order or rule, or pursuant to legal
discovery or process.
(3) It is not a violation of subsection (1 )(b) or (g) to use all or more than 4 sequential digits of a
social security number if the use is any of the following:
(a) An administrative use of all or more than 4 sequential digits of the social security number the
ordinary course of business, by a person or a vendor of a person or a vendor or contractor of a
person, to do any of the following:
(i) Verify an individual's identity, identify an individual, or do another similar
administrative purpose related to an account, transaction, product, service, or
employment or proposed account, transaction, product, service, or employment.
(ii) Investigate an individual's claim, credit, criminal, or driving history.
(iii) Detect, prevent, or deter identity theft or another crime
(iv) Lawfully pursue or enforce a person's legal rights, including, but not limited to, an
audit, collection, investigation, or transfer of a tax, employee benefit, debt, claim,
receivable, or account or an interest in a receivable or account.
27
(v) Lawfully investigate, collect a spousal obligation or tax liability.
(vi) Provide or administer employee or health insurance or membership benefits, claims,
or retirement programs.
(b) A use of all or more than 4 sequential digits of a social security number as a primary account
number that meets both of the following;
(i) The use began before the effective date of this act.
(ii) The use is ongoing, continuous, and in the ordinary course of business. If the use is
stopped for any reason, this subdivision no longer applies.
Section 4. Privacy policy
(1) Effective January 1, 2006, all employees for the city of Muskegon are required to abide by the
Social Security Policy.
(a) All information that contains social security numbers must be handled discretely and remain
confidential
(b) Prohibits unlawful disclosure of the social security numbers.
(c) Employees will only have access to social security numbers on a need to know basis and if it
pertains the ordinary course of business.
(d) All documents that contain social security numbers must be shredded or destroyed in a
manner that information is no longer legible.
Section 5. Exemption from disclosure
All or more than 4 sequential digits of a social security number contained in a public record are
exempt from disclosure under the freedom of information act, 1976 PA 442, MCL 15.231 to
15.246, pursuant to section 13(1)(d) of the freedom of information act, 1976 PA 442, MCL
15.243.
Sec. 6. Violation of Privacy Policy
(1) A person who violates section 3 with knowledge that the person's conduct violates this act is
guilty of a misdemeanor punishable by imprisonment for not more than 93 days or a fine of not
more than $1 ,000.00, or both.
(2) An individual may bring a civil action against a person who violates section 3 and may recover
actual damages. If the person knowingly violates section 3, an individual may recover actual
damages or $1 ,000.00, whichever is greater. If the person knowingly violates section 3, an
individual may also recover reasonable attorney fees. Except for good cause, not later than 60
days before filing a civil action, an individual must make a written demand to the person for a
violation of section 3 for the amount of his or her actual damages with reasonable documentation
of the violation and the actual damages caused by the violation. This subsection does not apply
to a person for conduct by an employee or agent of the person in violation of a privacy policy
created pursuant to section 4 or in compliance with the fair credit reporting act, 15 USC 1681 to
1681v, or subtitle A of title V of the Gramm-Leach-Biiley act, 15 USC 6801 to 6809, if the person
has taken reasonable measures to enforce its policy and to correct and prevent the reoccurrence
of any known violations.
28
Founded in 1852 MICHIGAN: Ann Arbor
by Sidney Davy Miller Detroit • Grand Rapids
MILLER Howell • Kalamazoo
Lansing • Monroe
Saginaw • Troy
CANFIELD
MILLER, CANFIELD, PADDOCK AND STONE, P.L.c.
New York, NY
Naples
FLORIDA:
Pensacola
CANADA: Windsor, ON
JOEL L. PIELL 150 West Jefferson, Suite 2500 POLAND:Gdynia
TEL: (313) 496-7518 Detroit, Michigan 48226 Warsaw • Wroclaw
FAX: (313) 496-8450
TEL: (313) 963-6420
E~MAIL: picll@millcrcanficld.com
FAX: (313)496-7500
www.millercanfield.com
September 26, 2006
Mr, Timothy 1. Paul
Finance Director
City of Muskegon
933 Terrace Street
P.O. Box 536
Muskegon,MI 49443-0536 Via Email
Re: $5,400,000 City of Muskegon, County of Muskegon, State of Michigan
Limited Tax General Obligation Bonds, Series 2006
Dear Tim:
In connection with the sale of the above-referenced bonds which I understand will
be held on October 10 1h at 2:30 in the afternoon, I am sending you a copy of the Official
Notice of Sale which I will cause to be published no later than October 2"ct in the Bond
Buyer. As you know, it is not necessary for you to publish this locally.
I also send a form of resolution which the City Commission may use at its meeting
to be held on October I o'h to award the bonds to the purchaser.
I would ask that three certified copies of the resolution be returned to me.
Should you have any questions concerning this or if I may be of other assistance to
you, please do not hesitate to contact me.
MILLER, CANFIELD, PADDOCK AND STONE, P.L.C.
Mr. Timothy J. Paul -2- September 26, 2006
I am also sending you a notice of our OPEB meeting at Grand Valley State
University in hopes that you might find it to be or interest to you.
Very truly yours,
~
::LL(~~~;z; ~D STONC, ''·'··'·
Enclosures
Cc: Mr. Wanen M. Creamer, III (w/enclosures) Via Email
Hard copies via US Mail
DISCLOSURE UNDER TREASURY CIRCULAR 230: The United States Federal tax advice contained in this document and its
attachments, if any, may not be used or referred to in the promoting, marketing or recommending of any entity, investment plan
or arrangement, nor is such advice intended or written to be used, and may not be used, by a taxpayer for the purpose or avoiding
Federal tax penalties. Advice that complies with Treasury Circular 230's ··covered opinion'· requirements (and thus, may be
relied on to avoid tax penalties) may be obtained by contacting the author of this document.
DELIR2776051.1\063684-00035
RESOLUTION REA WARD OF BONDS
CITY OF MUSKEGON
County of Muskegon, State of Michigan
Minutes of a regular meeting of the City Commission of the City of Muskegon, County
of Muskegon, Michigan (the "City" or "Issuer"), held on the I Oth day of October, 2006, at 5:30
o'clock p.m., Eastem Daylight Savings Time.
PRESENT: Members Spataro, Warmington, Wierenga, Carter,
Davis, Gawron, and Shepherd
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ABSENT: Members __~N~o~n~e~-----------------------------------
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WHEREAS, October 10,2006, at 2:30 o'clock p.m., Eastern Daylight Savings Time, has
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•
General Obligation Bonds, Series 2006;
AND WHEREAS, said bids have been publicly opened and read;
AND WHEREAS, the bids attached hereto and made pmt hereof have been received.
AND WHEREAS, the bid of Morgan Keegan and Co., Inc. has been detern1ined
to produce the lowest interest cost to the Issuer.
NOW, THEREFORE, BE IT RESOLVED THAT:
I. The bid of Morgan Keegan and Co., Inc. , as above stated, be and
the same is hereby accepted.
2. Checks of the unsuccessful bidders be returned to each bidder's representative or
by registered mail.
3. The Issuer hereby covenants that, to the extent permitted by law, it shall take all
actions within its control necessary to maintain the exclus ion of the interest on the Bonds from
adjusted gross income for general federal income tax purposes under the Internal Revenue Code
of 1986, as amended (the " Code"), including, but not limited to, actions relating to the rebate of
arbitrage earnings, if applicable, and the expenditure and investment of Bond proceeds and
moneys deemed to be Bond proceeds.
4. All changes respecting the Bonds set fotih in the notice of sale published in
connection with the sale of the bonds and the notice of sale be and are hereby approved and
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AYES: Members Warmington, Wierengo, Carter, Davis,
Gawron, Shepherd, and Spataro
NAYS: Members None
~~~--------------------------------------
RESOLUTION DECLARED ADOPTED.
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City Clerk
-2-
I hereby ce1iify 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 October I 0, 2006, and that said meeting was conducted and public
notice of said meeting was given pursuant to and in fu ll compliance with the Open Meetings
Act, being Act 267, Public Acts of Michigan, 1976, and that the minutes of said meeting were
kept and will be or have been made available as required by said Act.
City Clerk
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DELIB :277595 1. 1\063684-00035
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NON-LITIGATION AND SIGNATURE IDENTIFICATION
CERTIFICATE AND RECEIPT
STATE OF MICHIGAN
COUNTY OF MUSKEGON
We hereby certify that we are the duly elected or appointed, qualified and acting officers of the
City of Muskegon, in the County and State aforesaid (the "City"), as herein indicated, and that we did
officially sign by facsimile signatures the City's $5,400,000 Limited Tax General Obligation Bonds,
Series 2006, dated as of October 24, 2006, and delivered herewith (the "Bonds"); that we are on the date
hereof the officers having authority to execute and deliver the Bonds; that there is no litigation of any
nature pending or threatened for the purpose ofrestraining or enjoining the issuance of the Bonds or the
levy and collection of taxes sufficient to pay the interest and principal thereof, nor directly affecting the
proceedings or authority by which the Bonds are issued, the legality of the purpose for which the Bonds
are issued, or the validity of the Bonds, and that neither the corporate existence nor the boundaries of the
City nor the title of its present officers to their respective offices is being contested; that to the best of
our knowledge there is no litigation pending or threatened indirectly or collaterally affecting any of the
foregoing, and that none of the proceedings heretofore taken to authorize the issuance of the Bonds and
to provide security therefor have been repealed, revoked or rescinded.
~~ Dated: October 24, 2006
~
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[City's Seal]
STATE OF MICHIGAN )
) ss.
COUNTY OF MUSKEGON )
On October d. 3 , 2006, before me, a Notary Public in and for said County, personally appeared
the Mayor and the City Clerk of the City of Muskegon, County of Muskegon, State of Michigan, known
to me to be the persons named herein and who executed this Certificate, acknowledge that these persons
executed the same as his/her free act and deed and that the signatures appearing hereon are true and
genume.
My Commission Expires: 0 'S - f ':, - J,D I ~
RECEIPT
I, the undersigned, hereby certify that I am the duly qualified and acting Finance Director of said
City and I further certify that the Bonds have been paid for by Morgan Keegan & Company, Inc. in
accordance with the terms ofthe Official Notice of Sale for the Bonds and the bid therefor.
Dated: October 24, 2006
DELIB:2781551.1 1063684-00035
-2-
MEMORANDUM
TO: Honorable Mayor and City Commission
FROM: Robe11 H. Kuhn, Director of Public Works
DATE: September 26, 2006
RE: Cell Tower Lease
Verizon Wireless has proposed to construct a monopole cellular tower on city
propet1y at the location of the Harvey Street surface water reservoir. By
redesigning how we use this piece of property, sufficient land was made
available to accommodate the request for a cellular tower.
The cellular tower overlay district that was previously located at the Public
Service Building was relocated to the Water Reservoir site by the Zoning
Board. The revenues generated from the rental of this site, which begin at
rn on+~
$1500 per y.ear and escalate at a rate of 3% per year stat1ing in 2008, shall be
used to offset expenses of maintaining the five-million gallon water reservoir.
RHK/ rsh
Attachment
LAW OFFICES
MYERS NELSON DILLON & SHIERK, PLLC
Wtlh Offices in Grand Rapids 40701 WOODWARD AVENUE TELEPHONE (248) 203·2040
SUITE 235 FACSIMILE (248) 203-2045
BLOOMFIELD HILLS, Ml 48304·2221 rlabelle@mnds-pllc.com
ROBERT A. LaBELLE
September 28, 2006
Mr. Robert Kuhn via Federal Express
Director, Department of Public Works
City of Muskegon
1350 E. Keating
Muskegon, Michigan 49442
Re: Proposed Lease with Verizon Wireless
Our Site No. 702 (Mona Lake)
Dear Mr. Kuhn:
Enclosed please find for signature by the City of Muskegon three execution originals each of
the Land Lease Agreement and a Memorandum of Land Lease Agreement and an original of a
Substitute W-9 form. The Lease is in form reviewed by the City's attorneys. The Memorandum is
for recording and the W-9 form is for processing the City into the Verizon Wireless payee system.
If the Lease and other documents are in order, please have each in black ink signed and,
where applicable, notarized on behalf of the City of Muskegon and returned to me. I will see to
their delivety to V erizon Wireless corporate or the assembly of counterpart originals.
In the meantime, please call me with any questions or concerns.
Very Truly Yours,
d~
Robert A. LaBelle
RAL/rl
Enclosures
cc: Ms. Sherri Andrews (via e-mail w / o ends)
Adam G. Zuwerink, Esq. (w/ ends)
SITE NAME: Mona Lake
SITE NUMBER: Ml-702
A TTY/DATE 09/28106
LAND LEASE AGREEMENT
THIS AGREEMENT, made this Cjh1. day of f._j).Jv;.__W , 2006, between THE CITY ·
OF MUSKEGON, a Michigan municipal corporation, with its mailing address located at 1350 E.
Keating, Muskegon, Michigan 49442, hereinafter designated "LESSOR", and NEW PAR, d/b/a Veri-
zan Wireless, with its principal offices at One Verizon Way, Basking Ridge, New Jersey, 07920, herein-
after designated "LESSEE". LESSOR and LESSEE are at times collectively referred to hereinafter as
the 'Parties" or individually as the "Party'~
In consideration of the mutual covenants contained herein and intending to be legally bound
hereby, the Parties hereto agree as follows:
1. PREMISES. LESSOR owns that certain parcel of property (the entirety of LESSOR's
property is refened to hereinafter as the "Property"), located at 2301 Harvey Street, in the City of Mus-
kegon, Muskegon County, Michigan, which is described in Exhibit "A", attached hereto and made a
part hereof, shown on the Tax Map of Muskegon County as Tax ID No. 24-133-400-0013-00. LESSOR
hereby leases to LESSEE a portion of the Property and being described as a parcel containing approxi-
mately 8,967 square feet (the "Land Space"), together with the non-exclusive right, right-of-way and
easement (the "Right of Way") for ingress and egress, seven (7) days a week, twenty-four (24) hours a
day, on foot or motor vehicle, including trucks, and for the installation, operation, maintenance and re-
pair of utility wires, poles, cables, conduits and pipes over, under or along a twenty (20) foot wide right-
of-way and easement extending from the nearest public right-of-way, Harvey Street, to the Land Space,
said Land Space and Right of Way (hereinafter collectively refened to as the "Premises") being sub-
stantially as described herein in Exhibit "A".
In the event any public utility is unable to use the Right of Way, LESSOR hereby agrees to
grant an additional right-of-way and easement either to LESSEE or to the public utility at no cost to
LESSEE which, for all purposes hereunder, shall be deemed a part of the "Right of Way" defined and
granted hereunder.
2. SURVEY. LESSOR also hereby grants to LESSEE the right to survey the Property and
the Premises, and said survey shall then become Exhibit "C" which shall be attached hereto and made a
part hereof, and shall control in the event of boundary and access discrepancies between it and Exhibit
"A". Cost for such work shall be borne by LESSEE.
3. TERM. This Agreement shall be effective as of the date of execution by both Parties, pro-
vided, however, the initial term shall be for five (5) years and shall commence on the Commencement
Date (as hereinafter defined) at which time rental payments shall commence and be due at a total annual
rental set forth in Exhibit "B", to be paid in equal monthly installments on the first day of the month, in
advance, to LESSOR, or to such other person, firm or place as LESSOR may, from time to time, desig-
nate in writing at least thirty (30) days in advance of any rental payment date. The "Commencement
Date" is defined as the first (1st) day of the month following the earlier of: (a) the date one(!) year after
this Agreement is executed and delivered by the Parties, or (b) the date LESSEE commences installation
of the equipment on the Premises. LESSOR and LESSEE agree that they shall execute a written ac-
lmowledgement confirming the Commencement Date. LESSOR and LESSEE acknowledge and agree
that initial rental payment(s) shall not actually be sent by LESSEE until thirty (30) days after the full
execution of the written acknowledgement confirming the Commencement Date. By way of illustration
of the preceding sentence, if the Commencement Date is January I and the written acknowledgement
confirming the Commencement Date is fully executed on January 14, LESSEE shall send to LESSOR
the rental payments for January I and February I by February 13.
4. EXTENSIONS. This Agreement shall automatically be extended for four (4) additional
five (5) year terms unless LESSEE terminates it at the end of the then-current term by giving LESSOR
written notice of the intent to terminate at least six (6) months prior to the end of the then-current term,
on the same covenants, terms and conditions as the initial term, but at the rental set forth in Paragraph 5.
5. EXTENSI 0 N RENTALS. Annual rental for the extension terms shall be the same as the
annual rental effective on the last day of the preceding initial or extended term, except that the annual 3%
increases for rental under Exhibit "B" shall continue in each of the extension terms.
6. ADDITIONAL EXTENSIONS. If at the end of the fourth (4th) five (5) year extension
tenn, this Agreement has not been tetminated by either Party by giving to the other written notice of an
intention to terminate it at least three (3) months prior to the end of such term, this Agreement shall con-
tinue in force upon the same covenants, terms and conditions for a futiher term of five (5) years and for
five (5) year terms thereafter until terminated by either Party by giving to the other written notice of its
intention to so terminate at least three (3) months prior to the end of such term; provided that in no event
shall the total Term of this Agreement, including all extensions, exceed thirty-five (35) years after the
Commencement Date. Annual rental for each such additional five (5) year term shall be equal to one
hundred twenty-five percent (125%) of the mmual rental payable with respect to the immediately preced-
ing five (5) year term. The initial term and all extensions shall be collectively referred to herein as the
"Ternz".
7. USE; GOVERNMENTAL APPROVALS. (a) LESSEE shall use the Premises for the
purpose of constructing, maintaining, repairing and operating a communications facility for the uses and
purposes permitted under Law and in the licenses and approvals granted by the Federal Communications
Commission to LESSEE or its parent or affiliates and uses incidental thereto.
(b) A security fence consisting of chain link construction or similar but comparable con-
struction may be placed around the perimeter of the Premises at the discretion of LESSEE (not including
the Right of Way). The tower and equipment shelter and related exterior improvements on the Land
Space and with respect to the Right of Way (collectively, the "Facilities'') and the antemms, cable, con-
duit, utilities, equipment or fixtures thereon and therein shall be at LESSEE's expense and the installa-
tion of all Facilities and the foregoing shall be at the discretion and option of LESSEE. LESSEE shall
have the right to replace, repair, add or otherwise modifY its equipment and/or conduits or any portion
thereof and the frequencies over which the equipment operates, whether or not the equipment, conduits or
Site No. Ml-702
(Mona Lake)
2
frequencies are specified on any exhibit attached hereto, during the Term. The foregoing notwithstand-
ing, the initial construction of the Facilities shall be completed substantially in accordance with the site
plan attached hereto as Exhibit "A", which was approved by LESSOR. No additional building or tower
or expansion of the existing tower or building shall be constmcted except in accordance with plans and
specifications therefor approved by LESSOR, such approval not to unreasonably withheld, conditioned
or delayed, provided that the foregoing consent shall not be required as to any additional or change in
antennas , cable, conduit, utilities, equipment or fixtures or other change to the Premises other than the
Facilities expressly requiring LESSOR's consent above.
(c) It is understood and agreed that LESSEE's ability to use the Premises is contingent
upon its obtaining after the execution date of this Agreement all of the certificates, permits and other ap-
provals (collectively the "Governmental Approvals") that may be required by any Federal, State or Lo-
cal authorities as well as satisfactory soil boring tests which will permit LESSEE use of the Premises as
set forth above. LESSOR shall cooperate with LESSEE in its effort to obtain the Governmental Ap-
provals and such tests and shall take no action which would adversely affect the status of the Property
with respect to the proposed use by LESSEE. In the event that: (i) any of such applications for such
Governmental Approvals should be finally rejected, (ii) any Gover=ental Approval issued to LESSEE
is canceled, expires or lapses or is otherwise withdrawn or terminated by governmental authority, (iii)
LESSEE determines that such Governmental Approvals may not be obtained in a timely manner, (iv)
LESSEE determines that any soil boring tests are unsatisfactory, or (v) LESSEE, in its reasonable dis-
cretion, determines that it will be unable to use the Premises for its intended purposes, LESSEE shall
have the right to terminate this Agreement. Notice of LESSEE's exercise of its right to terminate shall
be given to LESSOR in writing by certified mail, return receipt requested, and shall be effective upon
the mailing of such notice by LESSEE, or upon such later date as designated by LESSEE. All rentals
paid to said tennination date shall be retained by LESSOR. Upon such termination, this Agreement
shall be of no further force or effect except to the extent of the representations, wananties and indemnities
made by each Party to the other hereunder. Otherwise, the LESSEE shall have no further obligations for
the payment of rent to LESSOR.
8. INDEMNIFICATION. Subject to Paragraph 9 below, each Party shall indemnifY and
hold the other harmless against any claim of liability or loss from personal injury or property damage
resulting from or arising out of the negligence or willful misconduct of the indemnifYing Party, its em-
ployees, contractors or agents, except to the extent such claims or damages may be due to or caused by
the negligence or willful misconduct of the other Party, or its employees, contractors or agents.
9. INSURANCE.
(a) The Parties hereby waive and release any and all rights of action for negligence
against the other which may hereafter arise on account of damage to the Premises or to the Property, re-
sulting from any fire, or other casualty of the kind covered by standard fire insurance policies with ex-
tended coverage, regardless of whether or not, or in what amounts, such insurance is now or hereafter
canied by the Parties, or either of them. These waivers and releases shall apply between the Parties and
they shall also apply to any claims under or through either Party as a result of any asserted right of sub-
rogation. All such policies of insurance obtained by either Party concerning the Premises or the Prop-
erty shall waive the insurer's right of subrogation against the other Party.
Site No. MJ-702
(Mona Lake)
3
(b) Subject to the Parties' indemnification obligations hereunder, LESSOR and LESSEE
each agrees that, at its own cost and expense, it will maintain commercial general liability insurance
against liability for personal injury or death or damage to property arising out of the acts and negligence
of the insured Party, its employees, contractors or agents, with limits not less than $1,000,000 per
occurrence and $3,000,000 general annual aggregate. Each Party's insurance shall be primary as to its
own operations. LESSOR and LESSEE each agree that it will include the other Party as an additional
insured. Such insurance shall: (i) be written on an occurrence basis; and (ii) include liability for bodily
injury, personal injury, property damage, written contracts, products and completed operations,
independent contractor's liability and XCU (explosion, collapse or damage to underground facilities)
coverage. Each Party shall provide to the other certificates of insurance evidencing such coverage. The
fact that either Party is required to furnish insurance in accordance with this Paragraph or the fact that
such insurance is furnished does not and shall not relieve the Party from its obligations to the other Party
under Paragraph 8 for any deficiency amount of which the Party is responsible to the other Party.
10. LIMITATION OF LIABILITY. In no event will either Party be liable to the other, or
any of their respective agents, representatives, employees for any lost revenue, lost profits, loss of
technology, rights or services, incidental, punitive, indirect, special or consequential damages, loss of
data, or interruption or loss of use of service, even if advised of the possibility of such damages, whether
under theory of contract, tort (including negligence), strict liability or otherwise.
11. ANNUAL TERMINATION. Notwithstanding anything to the contrary contained herein,
provided LESSEE is not in default hereunder beyond applicable notice and cure periods, LESSEE shall
have the right to terminate this Agreement upon the annual anniversary of the Commencement Date,
provided that three (3) months prior notice is given to LESSOR and, if such termination would occur
within three (3) yeas of the Commencement Date, a check in the sum of three (3) months' then-current
rent.
12. INTERFERENCE. (a) LESSEE agrees to install equipment of the type and frequency
which will not cause material interference which is measurable in accordance with then existing industry
standards to any equipment of LESSOR or other lessees of the Property which existed on the Property
prior to the date this Agreement is executed by the Parties. In the event any after-installed LESSEE's
equipment causes such interference, and after LESSOR has notified LESSEE in writing of such
interference, LESSEE will take all commercially reasonable steps necessary to correct and eliminate the
interference, including, but not limited to, at LESSEE'S option, powering down such equipment and
later powering up such equipment for intermittent testing. In no event will LESSOR be entitled to
terminate this Agreement or relocate the equipment as long as LESSEE is making a good faith effort to
remedy the interference issue.
Site No. Ml-702
!Mona Ll,e)
(b) LESSOR agrees that LESSOR and/or any other tenants of the Property who currently
have or in the future take possession of the Property will be permitted to install only such equipment that
is of the type and frequency which will not cause material interference which is measurable in accor-
dance with then existing industry standards to the then-existing equipment of LESSEE. The foregoing
notwithstanding, at LESSOR's request, LESSOR shall be permitted to install, rent-free, a single ante1ma
array on the tower constructed on the Land Space (the "Tower") solely for the purpose of municipal
emergency service broadcasting (the "City Transmission Equipment"), provided that: (i) at the time of
LESSOR's request, there remains available space on the Tower under reasonable structural guidelines at
a height reasonably acceptable to LESSEE; (ii) LESSEE approves plans and specifications for the instal-
lation of the City Transmission Equipment, such approval not to be unreasonably withheld or delayed;
and (iii) the type and frequency of the City Transmission Equipment will not cause material interference
which is measurable in accordance with then existing industry standards to the then-existing equipment
of LESSEE or the other existing lessees and occupants of the Tower. The Parties acknowledge that
there will not be an adequate remedy at law for non-compliance with the provisions of this Paragraph
and, therefore, either Party shall have the right to equitable remedies, such as, without limitation, injunc-
tive relief and specific performance.
13. REMOVAL AT END OF TERM. LESSEE shall, upon expiration of the Term, or within
ninety (90) days after any earlier termination of this Agreement, remove its building(s), antenna struc-
ture(s) (except footings), equipment, conduits, fixtures and all personal property and restore the Prem-
ises to its original condition, reasonable wear and tear and casualty damage excepted. At any time that
the net worth of LESSEE shall be less than Ten Million Dollars ($1 0,000,000.00), LESSEE shall deliver
to LESSOR a bond in an amount reasonably sufficient to complete such removal. LESSOR agrees and
acknowledges that all of the equipment, conduits, fixtures and personal property of LESSEE shall re-
main the personal property of LESSEE and LESSEE shall have the right to remove the same at any time
during the Term, whether or not said items are considered fixtures and attachments to real property un-
der applicable Laws. If such time for removal causes LESSEE to remain on the Premises after termina-
tion of this Agreement, LESSEE shall pay rent at the then-existing monthly rate or on the existing
monthly pro-rata basis if based upon a longer payment term, until such time as the removal of the build-
ing, antenna, fixtures and personal property is completed.
14. RIGHT OF FIRST REFUSAL. If LESSOR elects, during the Term to: (a) sell or other-
wise transfer all or any portion of the Property, whether separately or as part of a larger parcel of which
the Property is a part, or (b) grant to a third pmiy by easement or other legal instrument an interest in and
to that portion of the Property occupied by LESSEE, or a larger portion thereof, for the purpose of oper-
ating and maintaining communications facilities or the management thereof, with or without an assign-
ment of this Agreement to such third party, LESSEE shall have the right of first refusal to meet any bona
fide offer of sale or transfer on the same terms and conditions of such offer. If LESSEE fails to meet
such bona fide offer within thirty (30) days after written notice thereof from LESSOR, LESSOR may
sell or grant the easement or interest in the Property or portion thereof to such third person in accordance
with the terms and conditions of such third pmiy offer.
15. RIGHTS UPON SALE. Should LESSOR, at any time during the Term decide to (a) sell
or transfer all or any part of the Property to a purchaser other than LESSEE, or (b) grant to a third pmiy
Site No. Ml-702
(Mona Lai<e)
5
by easement or other legal instrument an interest in and to that portion of the Property occupied by
LESSEE, or a larger portion thereof, for the purpose of operating and maintaining communications fa-
cilities or the management thereof, such sale or grant of an easement or interest therein shall be under
and subject to this Agreement and any such purchaser or transferee shall recognize LESSEE's rights
hereunder under the terms of this Agreement. To the extent that LESSOR grants to a third party by
easement or other legal instrument an interest in and to that portion of the Property occupied by LES-
SEE for the purpose of operating and maintaining communications facilities or the management thereof
and, in conjunction therewith, assigns this Agreement to said third party, LESSOR shall not be released
from its obligations to LESSEE under this Agreement, and LESSEE shall have the right to look to LES-
SOR and the third party for the full performance of this Agreement.
16. QUIET ENJOYMENT. LESSOR covenants that LESSEE, on paying the rent and per-
forming the covenants herein, shall peaceably and quietly have, hold and enjoy the Premises.
17. TITLE. LESSOR represents and warrants to LESSEE as of the execution date of this
Agreement, and covenants during the Term that LESSOR is seized of good and sufficient title and inter-
est to the Property and has full authority to enter into and execute this Agreement. LESSOR further
covenants during the Tetm that there are no other liens, judgments or impediments of title on the Prop-
erty or affecting LESSOR's title to the same, and that there are no covenants, easements or restrictions
which prevent or adversely affect the use or occupancy of the Premises by LESSEE as set forth above.
18. INTEGRATION. It is agreed and understood that this Agreement contains all agree-
ments, promises and understandings between LESSOR and LESSEE and that no verbal or oral agree-
ments, promises or understandings shall be binding upon either LESSOR or LESSEE in any dispute,
controversy or proceeding at law, and any addition, variation or modification to this Agreement shall be
void and ineffective unless made in writing signed by the Parties. In the event any provision of this
Agreement is found to be invalid or unenforceable, such finding shall not affect the validity and en-
forceability of the remaining provisions of this Agreement. The failure of either Party to insist upon
strict performance of any of the terms or conditions of this Agreement or to exercise any of its rights nu-
der this Agreement shall not waive such rights and such Party shall have the right to enforce such rights
at any time and take such action as may be lawful and authorized under this Agreement, in law or in eq-
uity.
19. GOVERNING LAW. This Agreement and the performance thereof shall be governed,
interpreted, construed and regulated by the Laws of the State in which the Property is located.
20. ASSIGNMENT. This Agreement may be sold, assigned or transferred by LESSEE with-
out any approval or consent of LESSOR to LESSEE's principal or affiliates, the subsidiaries or affiliates
of LESSEE's principal or affiliates, any entity which acquires all or substantially all of LESSEE's assets
in the market defined by the Federal Communications Commission in which the Property is located by
reason of a merger, acquisition or other business reorganization, or any entity which acquires or receives
an interest in the towers of LESSEE in the market defined by the Federal Communications Commission
in which the Property is located. As to other parties, this Agreement may not be sold, assigned or trans-
ferred without the written consent of LESSOR, which such consent will not be unreasonably withheld or
Site No. M 1-702
(Monu Lake)
6
delayed. No change of stock ownership or control of LESSEE shall constitute an assignment hereunder.
LESSEE may sublet the Premises within its sole discretion, upon notice to LESSOR; provided no such
sublease shall be given for the purpose of erecting an additional tower on the Land Space. Any sublease
that is entered into by LESSEE shall be subject to the provisions of this Agreement and shall be binding
upon the successors, assigns, heirs and legal representatives of the respective Parties hereto.
21. NOTICES. All notices hereunder must be in writing and shall be deemed validly given if
sent by certified mail, return receipt requested or by commercial courier, provided the courier's regular
business is delivery service and provided further that it guarantees delivery to the addressee by the end
of the next business day following the courier's receipt from the sender, addressed as follows (or any
other address that the Party to be notified may have designated to thesender by like notice):
LESSOR: CITY OF MUSKEGON
Dept. of Public Works
1350 E. Keating
Muskegon, Michigan 49442
Attention: Mr. Robert H. Kuhn
LESSEE: NEW PAR
d/b/a Verizon Wireless
180 Washington Valley Road
Bedminster, New Jersey 07921
Attention: Network Real Estate
Notice shall be effective upon actual receipt or refusal as shown on the receipt obtained pursuant
to the foregoing.
22. SUCCESSORS. This Agreement shall extend to and bind the heirs, personal representa-
tives, successors and assigns of the Patties hereto.
23. SUBORDINATION AND NON-DISTURBANCE. (a) At LESSOR's option, this
Agreement shall be subordinate to any future master lease, ground lease, mortgage, deed of trust or other
secmity interest (a "Mortgage") by LESSOR which from time to time may encumber all or part of the
Property or Right of Way; provided, however, as a condition precedent to LESSEE being required to
subordinate its interest in this Agreement to any future Mottgage covering the Propetty, LESSOR shall
obtain for LESSEE's benefit a non-disturbance and attornment agreement for LESSEE's benefit in the
form reasonably satisfactory to LESSEE, and containing the terms described below (the "Non-
Disturbance Agreement"), and shall recognize LESSEE's right to remain in occupancy of and have ac-
cess to the Premises as long as LESSEE is not in default of this Agreement beyond applicable notice and
cure periods. The Non-Disturbance Agreement shall include the agreement of the encumbering party
("Lender") that, if Lender or its successor-in-interest or any purchaser of Lender's or its successor's in-
terest (a "Purchaser") acquires an ownership interest in the Property, Lender or such successor-in-
interest or Purchaser will (i) honor all of the terms of this Agreement, (ii) fulfill LESSOR's obligations
under this Agreement, and (iii) promptly cure all of the then-existing LESSOR defaults under this
Site No. MJ-702
(Mono Luke)
7
Agreement. Such Non-Disturbance Agreement must be binding on all of Lender's participants in the
subject loan (if any) and on all successors and assigns of Lender and/or its participants and on all Pur-
chasers.
(b) In return for such Non-Disturbance Agreement, LESSEE will execute an agreement
for Lender's benefit in which LESSEE (i) confirms that this Agreement is subordinate to the Mortgage
or other real property interest in favor of Lender, (ii) agrees to attorn to Lender if Lender becomes the
owner of the Property, (iii) agrees to give Lender copies of whatever notices of default LESSEE must
give LESSOR, (iv) agrees to accept a cure by Lender of any of LESSOR's defaults, provided such cure
is completed within the deadline applicable to LESSOR, (v) agrees to not pay rent more than one month
in advance, and (vi) agrees that no material modification or material amendment of this Agreement will
be binding on Lender unless it has been consented to in writing by Lender.
(c) LESSOR and LESSEE agree that, for the purposes of Paragraph 23, non-material
amendments or modifications shall include, but shall not be limited to, the following: (i) any extension
of the Term of this Agreement, (ii) any addition to, alteration, modification, or replacement of LESSEE's
equipment, (iii) any relocation of LESSEE's equipment, (iv) any increase in the rent, and (v) any de-
crease in the rent, provided however, that such an amendment shall become material should the decrease
in rent result in rent lower than the amount then prescribed by the unamended Agreement.
(d) In the event LESSOR defaults in the payment and/or other performance of any Mort-
gage or other real property interest encumbering the Property, LESSEE, may, at its sole option and
without obligation, cure or correct LESSOR's default and upon doing so, LESSEE shall be subrogated to
any and all rights, titles, liens and equities of the holders of such Mortgage or other real property interest
and LESSEE shall be entitled to deduct and setoff against all rents that may otherwise become due under
this Agreement the sums paid by LESSEE to cure or correct such defaults.
24. RECORDING. LESSOR agrees to execute a Memorandum of this Agreement which
LESSEE may record with the appropriate recording officer. The date set forth in such Memorandum is
for recording purposes only and bears no reference to commencement of either the Term or rent pay-
ments.
25. DEFAULT.
(a) In the event there is a breach by LESSEE with respect to any of the provisions of this
Agreement or its obligations under it, including the payment of rent, LESSOR shall give LESSEE writ-
ten notice of such breach. After receipt of such written notice, LESSEE shall have fifteen (15) days in
which to cure any monetary breach and thirty (30) days in which to cure any non-monetary breach, pro-
vided LESSEE shall have such extended period as may be required beyond the thirty (30) days if the
nature of the cure is such that it reasonably requires more than thirty (30) days and LESSEE commences
the cure within the thirty (30) day period and thereafter continuously and diligently pursues the cure to
completion. LESSOR may not maintain any action or effect any remedies for default against LESSEE
unless and until LESSEE has failed to cure the breach within the time periods provided in this Para-
graph.
Site No. MJ-702
(Mona Lake)
8
(b) In the event there is a breach by LESSOR with respect to any of the provisions of this
Agreement or its obligations under it, LESSEE shall give LESSOR written notice of such breach. After
receipt of such written notice, LESSOR shall have thirty (30) days in which to cure any such breach,
provided LESSOR shall have such extended period as may be required beyond the thirty (30) days if the
nature of the cure is such that it reasonably requires more than thirty (30) days and LESSOR commences
the cure within the thirty (30) day period and thereafter continuously and diligently pursues the cure to
completion. LESSEE may not maintain any action or effect any remedies for default against LESSOR
unless and until LESSOR has failed to cure the breach within the time periods provided in this Para-
graph.
26. REMEDIES. Upon a default, the non-defaulting Party may, at its option (but without ob-
ligation to do so), perform the defaulting Party's duty or obligation on the defaulting Party's behalf, in-
cluding, but not limited to, the obtaining of reasonably required insurance policies. The costs and ex-
penses of any such performance by the non-defaulting Party shall be due and payable by the defaulting
Party upon invoice therefor. In the event of a default by either Party with respect to a material provision
of this Agreement, without limiting the non-defaulting Party in the exercise of any right or remedy
which the non-defaulting Party may have by reason of such default, the non-defaulting Party may termi-
nate the Agreement and!or pursue any remedy now or hereafter available to the non-defaulting Party un-
der the Laws or judicial decisions of the State in which the Property is located; provided, however,
LESSOR shall use reasonable efforts to mitigate its damages in connection with a default by LESSEE.
27. ENVIRONMENTAL.
(a) As used herein, the term, "Environmental Laws", shall mean any and local, state or
federal Laws pertaining to the environmental or natural resources or industrial hygiene. As used herein,
the term, "Hazardous Substances", shall mean any toxic or hazardous waste, material or substance that
is regulated by the Environmental Laws.
(b) LESSOR will be responsible for all obligations of compliance with any and all Envi-
ronnlental Laws, including any regulations, guidelines, standards or policies, that are or were in any way
related to activity now conducted in, on or in any way related to the Property, unless such conditions or
concerns are caused by the specific activities of LESSEE in the Premises. LESSEE will be responsible
for all obligations of compliance with any and all Environmental Laws that pertain to the specific activi-
ties of LESSEE in the Premises.
(c) LESSOR shall hold LESSEE harmless and indemnify LESSEE from and assume all
duties, responsibilities and liabilities at LESSOR's sole cost and expense, for all duties, responsibilities,
and liabilities (for payment of penalties, sanctions, forfeitures, losses, costs, or damages) and for re-
sponding to any action, notice, claim, order, summons, citation, directive, litigation, investigation or
proceeding which is in any way related to: (i) failure to comply with any environmental or industrial hy-
giene law, including without limitation any regulations, guidelines, standards, or policies of any gov-
ernmental authorities regulating or imposing standards of liability or standards of conduct with regard to
any environmental or industrial hygiene concerns or conditions as may now or at any time hereafter be
in effect, unless such non-compliance results from conditions caused by the specific activities of LES-
Site No. MI-702
(lvl on a Lake)
9
SEE in the Premises; and (ii) any environmental or industrial hygiene conditions arising out of or in any
way related to the condition of the Property or activities conducted thereon, unless such environmental
conditions are caused by the specific activities of LESSEE in the Premises.
(d) LESSEE shall hold LESSOR harmless and indemnify LESSOR from and assume all
duties, responsibilities and liabilities at LESSEE's sole cost and expense, for all duties, responsibilities,
and liabilities (for payment of penalties, sanctions, forfeitures, losses, costs, or damages) and for re-
sponding to any action, notice, claim, order, summons, citation, directive, litigation, investigation or
proceeding which is in any way related to environmental conditions caused by the specific activities of
LESSEE in the Premises.
28. CASUALTY. In the event of damage by fire or other casualty to the Premises that cannot
reasonably be expected to be repaired within forty-five (45) days following same or, if the Property is
damaged by fire or other casualty so that such damage may reasonably be expected to disrupt LESSEE's
operations at the Premises for more than forty-five (45) days, then LESSEE may, at any time following
such fire or other casualty, provided LESSOR has not completed the restoration required to permit LES-
SEE to resume its operation at the Premises, terminate this Agreement upon fifteen (15) days prior writ-
ten notice to LESSOR. Any such notice of termination shall cause this Agreement to expire with the
same force and effect as though the date set forth in such notice were the date originally set as the expi-
ration date of this Agreement and the Parties shall make an appropriate adjustment, as of such termina-
tion date, with respect to payments due to the other under this Agreement. Notwithstanding the forego-
ing, the rent shall abate during the period of repair following such fire or other casualty in proportion to
the degree to which LESSEE's use of the Premises is impaired.
29. CONDEMNATION. In the event of any condemnation of all or any portion of the Prop-
erty, this Agreement shall terminate as to the part so taken as of the date the condemning authority takes
title or possession, whichever occurs first. If as a result of a partial condemnation of the Premises or
Property, LESSEE, in LESSEE's sole discretion, is unable to use the Premises for the purposes intended
hereunder, or if such condemnation may reasonably be expected to disrupt LESSEE's operations at the
Premises for more than forty-five (45) days, LESSEE may, at LESSEE's option, to be exercised in writ-
ing within fifteen (15) days after LESSOR shall have given LESSEE written notice of such taking (or in
the absence of such notice, within fifteen (15) days after the condemning authority shall have taken pos-
session) terminate this Agreement as of the date the condemning authority takes such possession. LES-
SEE may, on its own behalf, make a claim in any condemnation proceeding involving the Premises for
losses related to the equipment, conduits, fixtures, its relocation costs and its damages and losses (but
not for the loss of its leasehold interest). Any such notice of termination shall cause this Agreement to
expire with the same force and effect as though the date set forth in such notice were the date originally
set as the expiration date of this Agreement and the Parties shall make an appropriate adjustment as of
such termination date with respect to payments due to the other under this Agreement. If LESSEE does
not terminate this Agreement in accordance with the foregoing, this Agreement shall remain in full force
and effect as to the portion of the Premises remaining, except that the rent shall be reduced in the same
proportion as the rentable area of the Premises taken bears to the total rentable area of the Premises. In
the event that this Agreement is not terminated by reason of such condemnation, LESSOR shall
promptly repair any damage to the Premises caused by such condemning authority.
Site No. Ml-702
(Mona Lake)
10
30. SUBMISSION OF AGREEMENT I PARTIAL INVALIDITY I AUTHORITY. The
submission of this Agreement for examination does not constitute an offer to lease the Premises and this
Agreement becomes effective only upon the full execution of this Agreement by the Parties. If any pro-
vision herein is invalid, it shall be considered deleted from this Agreement and shall not invalidate the
remaining provisions of this Agreement. Each of the Parties hereto warrants to the other that the person
or persons executing this Agreement on behalf of such Party has the full right, power and authority to
enter into and execute this Agreement on such Party's behalf and that no consent from any other person
or entity is necessary as a condition precedent to the legal effect of this Agreement.
31. APPLICABLE LAWS. During the Term, LESSOR shall maintain the Property in com-
pliance with all applicable laws, rules, regulations, ordinances, directives, covenants, easements, zoning
and land use regulations, and restrictions of record, permits, building codes, and the requirements of any
applicable fire insurance underwriter or rating bureau, now in effect or which may hereafter come into
effect (including, without limitation, the Americans with Disabilities Act and laws regulating hazardous
substances) (collectively, "Laws"). LESSEE shall, in respect to the condition of the Premises and at
LESSEE's sole cost and expense, comply with (a) all Laws relating solely to LESSEE's specific and
unique nature of use of the Premises (other than general office use); and (b) all building codes requiring
modifications to the Premises due to the improvements being made by LESSEE in the Premises.
32. SURVIVAL. The provisions of this Agreement relating to indemnification from one Patty
to the other Party shall survive any termination or expiration of this Agreement. Additionally, any pro-
visions of this Agreement which require performance subsequent to the termination or expiration of this
Agreement shall also survive such termination or expiration.
33. CAPTIONS. The captions contained in this Agreement are inserted for convenience only
and are not intended to be part of this Agreement. They shall not affect or be utilized in the construction
or interpretation of this Agreement.
34. HOLDOVER. LESSEE has no right to retain possession of the Premises or any part
thereof beyond the expiration of that removal period set forth in Paragraph 13 herein, unless the parties
are negotiating a new lease or lease extension in good faith. In the event that the parties are not in the
process of negotiating a new lease or lease extension in good faith, and LESSEE holds over in violation
of Paragraph 13 and this Paragraph 34, then the rent then in effect payable from and after the time of the
expiration or earlier removal period set forth in Paragraph 13 shall be increased to one hundred and ten
percent (11 0%) of the rent applicable during the month immediately preceding such expiration or earlier
termination.
35. TAXES. LESSEE will pay all personal property taxes assessed directly upon LESSEE's
equipment, fixtures and personal property on the Premises during the Term of this Agreement.
36. SIGNING FEE. LESSOR shall execute this Agreement and, upon execution by LESSEE
and delivery to LESSOR of this Agreement, LESSEE shall pay to LESSOR the sum of One Thousand
Five Hundred and 00/100 Dollars ($1,500.00). This Agreement shall be contingent upon the receipt of
such sum by LESSOR.
Site No. Ml-702
(Mona Lake)
II
37. COUNTERPARTS. This Agreement may be executed in any number of counterparts,
each of which shall be an original but which, taken together, shall constitute one and same instrument.
IN WITNESS WHEREOF, the Parties hereto have set their hands and affixed their respective
seals the day and year first above written.
LESSOR:
THE CITY OF MUSKEGON,
a Michigan municipal corporation
By:
Dated: OcJoher ltf, 2006
Attest:~ ~
Linda Potter, Acting Clerk
Dated: Ocfob(l /{, 2006
LESSEE:
NEW PAR, a Delaware partnership
db/a Verizon Wireless
By: Verizon Wireless (VA W), LLC, its general partner
By:
Howard H. Bower,
Midwest Area Vice President- Network
Dated: __,_/,.C_/,.C_(_q-'----' 2006
RALvS
Site No. Ml-702
(Mona Lake)
12
EXHIBIT "A"
(Sketch of Premises within Property)
Site No. IVTI-702
(Mona Lake)
13
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EXHIBIT "B"
Rental Schedule
1. From the Commencement Date through the day before the first "Rental Change Anniversary", as
defined below, the annual rental shall be EIGHTEEN THOUSAND and 00/100 Dollars ($18,000.00).
2. Effective on January 1, 2008 and each successive January 1''thereafter during the Tenn, including
extension terms under Paragraph 5 of the Agreement (each called a "Rental Change Anniversary"), the
annual rental shall be increased by three percent (3%) of the annual rental for the immediately preceding
year or period.
All rental payable under this Agreement shall be paid to LESSOR in equal monthly installments on
the first day of the month, in advance.
Site No. Ml-70:2
(Mona Lake)
!4
Site No. M£-702
{Mona Lake)
MEMORANDUM OF LAND LEASE AGREEMENT
THIS MEMORANDUM OF LAND LEASE AGREEMENT, made this qN1
day of
A/rJ.,UM.b_l[ , 2006, between THE CITY OF MUSKEGON, a Michigan municipal corporation, with
its mailing address located at 1350 E. Keating, Michigan 49442, hereinafter designated "LESSOR", and
NEW PAR, d/b/a Verizon Wireless, with its principal offices at One Verizon Way, Basking Ridge, New
Jersey, 07920, hereinafter referred to as "LESSEE". LESSOR and LESSEE are at times collectively
referred to hereinafter as the "Parties" or individually as the "Party".
l. LESSOR and LESSEE entered into a Land Lease Agreement (the "Agreement'') on
AJc)\k.mbt ~ , 2006, for an initial term of five (5) years, commencing on the Commencement Date,
as defined in the Agreement and as hereinafter described. The Agreement shall automatically be
extended for four (4) additional five (5) year terms unless LESSEE terminates it at the end of the then
current term by giving LESSOR written notice of the intent to terminate at least three (3) months prior to
the end of the then current term. If, at the end of the fourth (4th) five (5) year extension term, the
Agreement has not been terminated by either Party by giving to the other written notice of an intention to
terminate the Agreement at least three (3) months prior to the end of such term, the Agreement shall
continue in force upon the same covenants, terms and conditions for a further term of five (5) years and
for five (5) year terms thereafter until terminated by either Party by giving to the other written notice of
its intention to so terminate at least three (3) months prior to the end of such term; provided that in no
event shall the total Term of this Agreement, including all extensions, exceed thirty-five (35) years after
the Commencement Date.
2. LESSOR owns that certain parcel of property (the entirety of LESSOR's property is
referred to hereinafter as the "Property"), located in the City of Muskegon, Muskegon County, Michigan,
being further described as the "Overall Parcel" in Exhibit "A", attached hereto and made a part hereof.
Pursuant to and in consideration of the rental and other agreements set forth in the Agreement, LESSOR
hereby leases to LESSEE that certain portion of the Property, being described as a parcel containing
approximately 8,967 square feet (the "Land Space"), together with the non-exclusive right, right-of-way
and easement (the "Right of Way") for ingress and egress, seven (7) days a week, twenty-four (24) hours
a day, on foot or motor vehicle, including trucks, the installation and maintenance of utility wires, poles,
cables, conduits, and pipes over, under, or along a twenty (20) foot wide right-of-way and easement
extending from the nearest public right-of-way, Harvey Street, to the Land Space, and all other purposes
described in the Agreement. The Land Space and Right of Way are hereinafter collectively referred to as
the "Premises". The Land Space and Right of Way are described in Exhibit "A", and as shown on
Exhibit "B", attached hereto and made a part hereof In the event any public utility is unable to use the
Right-of-Way, LESSOR has agreed to grant an additional right-of-way and easement either to LESSEE or
to the public utility at no cost to LESSEE, which, for all purposes hereunder and under the Agreement,
shall be deemed a part of the "Right of Way" defined and granted under the Agreement and hereunder.
3. The "Commencement Date" of the Agreement, of which this is a Memorandum, is the first
(1st) day of the month following the earlier of: (a) the date one (1) year after the Agreement was executed
and delivered by the Parties, or (b) the date LESSEE commences installation of the equipment on the
Premises.
4. LESSEE has the right of first refusal to purchase the Premises during the initial term and all
renewal terms of the Agreement.
5. The terms, covenants and provisions of the Agreement, the terms of which are hereby
incorporated by reference into this Memorandum, shall run with the Premises and the Property and extend
to and be binding upon the respective executors, administrators, heirs, successors and assigns of LESSOR
and LESSEE, as though fully set forth herein.
IN WITNESS WHEREOF, hereunto and to a duplicate hereof, LESSOR and LESSEE have
caused this Memorandum to be duly executed on the date fU'St written hereinabove.
LESSOR:
THE CITY OF MUSKEGON,
a Michigan municipal corporation
Wl1NESS BY:
NAME: ~i='~n~d~a--~d~t~f~e~r--
NAME:
TITLE: ~M~a~yLo~r~-----------------------
WI1NESS
NAME: "ToA,vJ kru 'K'ows\L i
Site No. Ml-702
(Mona Lake)
2
LESSEE:
NEW PAR d/b/a Verizon Wireless
BY: Verizon Wireless (VA W), LLC,
its general partner
WITNESS'- BY:
NAME: N WG i Pu Lf(S Howard H. Bower,
Midwest Area Vice President- Network
d~WJ\A cR.~~
WIT~ ~ \
NAME: (\}\. \_ . \....::::,~
Site No. MI-702
(Mona Lake)
3
LESSOR'S ACKNOWLEDGMENT
STATEOFMICillGAN )
) ss.
COUNTY OF MUSKEGON )
The foregoing instrument was acknowledged before me on C) L l.;- ~ \ '( 2006, by
stephen J. Warmington , the --,-:M.::.:a"'y'-=-o;:-r-:-:-;;-=---::::------ of THE CITY
OF MUSKEGON, a Michigan municipal corporation, on behalf of the City.
Site No. MI-702
(Mona Lake)
4
LESSEE'S ACKNOWLEDGMENT
STATE OF INDIANA )
) ss.:
COUNTY OF HAMILTON )
This instrument was acknowledged before me by Howard H. Bower, who is the Midwest Area Vice
President- Network of Verizon Wireless (YAW) LLC, the general partner of NEW PAR, a Delaware
partnership d/b/a Verizon Wireless, personally known to me or proved on the basis of satisfactory evidence
to be the individual whose name is subscribed to the within instrument and acknowledged to me that he
executed the same in his authorized capacity, and that by his signature on the instrument, the entities upon
behalf of which the individual acted, executed the instrument, and that such individual made such appearance
before the undersigned in the County of Hamilton, State of Indiana.
Witness my hand and official seal, this qtf, day of fJv'l/i.mb-f!..- '2006.
Signature: c:;,
My commission e x p i r e s : - - - - - - - - - - - - - -
C'IIHHIA NAVA
Notary Pubii,:, State of Indiana
f·vi<.:f!C>n County
My COIT''T;ssion Expires
.July :Jo, 2014
Site No. MI-702
(Mona Lake)
5
This instrument drafted by and,
When recorded, return to:
Robert A. LaBelle
Myers Nelson Dillon & Shierk PLLC
40701 Woodward Ave., Suite235
Site No. MI-702
(Mona Lake)
6
EXHIBIT "A"
LEGAL DESCRIPTION OF OVERALL PARCEL
(Taken from Title Commitment)
Land in the City of Muskegon, County of Muskegon, State of Michigan. describe(] as
follows:
All that part of the East 112 of the Southeast 114 of Section 33, Town 10 North,
Range 16 West, Muskegon Township, Muskegon County, Michigan, which lies
southerly of the southerly right-of-way line of the Pennsylvania Railroad and westerly
of a line described as: Beginning at a point on the South line of said Section 33
which is N 89'52'04" W a distance of 193.97 feet from the Southeast corner of said
Section 33; thence N 0'07'56" E a distance of 626.58 feet to \he point of curvature
of a 22,793.3 foot radius curve to the left; thence Northerty along the arc of said ·
curve (chord bearing N 0'28'15.33" W) a distance of 479.89 feet to the point of
tangency of said curve; thence N 1 '04'26.66" W a distance of 354.01 feet; thence N
48'W a distance of 150 feet; thence N 21'04'37" E a distance of 173.92 feet tot
appoint on the arc of a 34,547.5 foot radius curve to the right (chord bearing N
0'13'20.66" W); thence Northerly along the arc ol said curve 500 feet to a Point of
Ending; and lying northeasterly of a line described as: Beginning at a point on the
east line of said Section 33 which is N 1''09'32" E a distance of 695.95 feet from the
Southeast comer of said Section 33; thence N 49"40'04" W a distance of 221.20
feet to the point of curvature of a 1860.08 foot radius curve to the right; \hence
Northwesterly along the arc or said curve (chord bearing N 41''16'05" W) a distance
of 545.32 feet; thence N 57"07'54" E a distance of 25.00 feet to a point on the arc of
a 1835.08 foot radius curve to the right; thence Northwesterly along the arc of said
curve (chord bearing N 25"40'05" W) a distance of 461.17 feet to the point of
tangency of said curve; thence N 18.28'04" W a distance of 519.98 feet; thence S
71 '31 '56" W a distance of 25.00 feet; thence N 18"28'04" W a distance of 300 feet
to a point of ending; and lying North of Little Black Creek; EXCEPT a strip of land
100 feet in width lying Southerly of and along and adjoining the southerly line of the
Pennsylvania Railroad right-of-way across all that part of the Northeast 1/4 of the
Southeast 114 of said Section 33.
Site No. Ml-702
(Moua Lal<e)
EXHIBIT "A" (cc,.-,f'd)
LEGAL DESCRIPTION OF LEASED PARCEL
Commencing at the Southeast comer of Section 33, T10N, R16W, City of
Muskegon, Muskegon County, Michigan; thence N 01°09'32" E 695.95 feet; thence
N 49"40'04" W a distance of 221.20 feet; thence 545.32 feet along the arc of a non-
tangent curve to the right, radiusof 1860.08 feet, central angle of 16°47'51" and
chord bearing N 41"16'05" W 543.37 feet; thence N 57"07'54" E 25.00 feet; thence
461.17 feet along the arc of a non-tangent curve to the right, radius of 1835.08 feet,
central angle of 14T23'56" and chord bearing N 25"40'05" W 459.96 feet; thence N
18"28'04" W 45.15 feet; thence N 71"31'56" E 3.82 feet to a POINT OF
BEGINNNING:
thence N 20"22'26" W 55.81 feet;
thence N OT1 7'37" E 83.51 feet;
thence S 71' 13'25" E 95.00 feet;
thence S 18"46'35' W 90.00 feet;
thence S 69"37'34" W 55.63 feet to the POINT OF BEGINNING;
being a part of the S.E. 1/4 of said Section 33, T10N, R16W, City of
Muskegon, Muskegon County, Michigan; containing 8,967 sq. ft.; and
subject to easements and restrictions of record, if any;
Together with a 20 foot wide ea semen! for ingress, egress and public utilities, !he
centerline of said easement is described as follows:
Commencing at the Southeast comer of Section 33, T1 ON, R16W, City of
Muskegon, Muskegon County, Michigan; thence N 01"09'32' E 695.95 feet; thence
N 49"40'04" W a distance of 221.20 feet; thence 545.32 feet along the arc of a non-
tangent curve to the right, radius of 1860.08 feet, central angle of 16"47'51" and
chord bearing N 41'16'05" W 543.37 feet; thence N 57"07'54" E 25.00 feet; thence
461.17 feet along the arc of a non-tangent curve to the right, radius of 1835.08 feet,
central angle of 14"23'56" and chord bearing N 25"40'05" W 459.96 feet; thence N
18'28'04" W 43.15 feet; thence N 71 '31 '56' E 3.82 feet; thence N 69'37'34" E
55.63 feet; thence N 18"46'35" E 59.00 feet to a POINT OF BEGINNNING:
thence S 71 "13'25" E 59.81 feet;
thence S 59'26'58" E 102.04 feet;
thence N 87'47'29' E 175.17 feet;
thence 77.01 feet along the arc of a curve to the left, radius 50.00 feet,
central angle of 88''14'33", and chord bearing N 43'40'13" E 69.62 feet;
thence N 00'27'04" W 113.61 feet; ·
thence N 06'17'14" W 216.82 feet;
thence N tr53'19" E 225.89 feet;
thence N 00'38'56" E 360.g5 feet to the east & west 1/41ine of said Section
33 and the POINT OF ENDING; being a part of the S.E. 1/4 of said
Section 33, T10N, R16W, City of Muskegon, Muskegon County,
Michigan; except any part taken, deeded or used for public road
purposes and subject to easements and restrictions of record, if any.
Site No. Mf-702
(Mona Lake)
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PROP. C/L OF 20' WIDE
EASEMENT FOR INGRESS/EGRESS
AND PUBUC UTJUTIES
POINT OF BEGINNING OF EASEMENT FOR
mmendng at !he Southeast comer of Section 33, T10N, R16W, Cily of
iNGRESS/EGRESS AND PUBUC UTIL111ES
N ,skegon, Muske<;~on County, Michigan; thenca N 01"09'32" £695.95 feet; !hence
j
0
S 71'13'25" E \9"40'04" W a distance of 221.20 feet; thence 545.32 feel along the an:: of a non·
59.81' gent Cllrve to tlw right, radius of 1860.08 feet, centrnl angle of 16'47'51" and
s 59'26'58" E m:l bearing N 41'16'05" W 543.37 feet; thence N 57•07'54" E 25.00 feet; !hence
102 04' 1.17 feel along !he arc or a non-tangent curve to !he right, rndius of 1835.08 feet,
N 87°47'29" E 1tra! angle of 147'23'56" and chord beefing N 25"40'05" W 459.96 fee!; \he11ce N
"28'04" W 45.15 feat; thence N 71"31'56" E 3.82 feet to a POINT OF
:;;l;::::'t:::=~§";;:;!\{ G!NNNING:
z
~ lhenca N 20"22'26" W 55.81 feet; ~
R "" 51 thence N 07"17'37" E 83.51 feet; r
()
IJ. "" S. thence S 71'13'25" E 95.00 feet
A "" 7 thence S 18'46'35' W 90.00 feet; w '>
CH"" N thence S 69'37'34" W 55.63 feet to the POINT OF BEGINNING; 1--
baing a part ofthaS.E. 114 ofsai<l Sectlon 33, T10N, R16W, City of ~
z
Muskegon, Muskegon COunty, Michigan; containing 6,967 sq. ft; an<! (j)
-.. . da subject to easements an<! resbidions of record, if any;
:0
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ClJRVf: DATA
L 461.17'
tl
If 1-
-...., . ~~
' ...cP.r,p0~)e!herwith a 20 foot wi<le easement for ingress, egress and public umrues, the z ()
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R"' 1635.08'
Delta"' 14'23'56"
f "'<~>• ~~· 1\ertine of said easement Is described as follows: 0 oz
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Chord"' N 25'40'o5• w "4:?o·
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l 459.96'
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'-mmenting at the Southeasl comer of Section 33, T10N, R16W, City of
'- skegon, Muskegon COunty, Michigan; thence N 01'09'32" E 695.95 feet; thence <( .:"-
1 9"40'04" W a distance of-221:20 feet thence 545:32 feel along !he arc· or a·non--·---- - (:)-- - :of-
(/)_w
1 gent curve to the righ~ radius of 1860.08 feet, central angle of16"47'51" and :>u;
-~:::.
_ - :::: --' -,Jrd bearing N 41'16'05" W 543.37 feet; !hence N 57"07'54" E 25Jl0 feel; !hence z z0
-
-
-
- - q,17 feet along !he arc of a non-tangent curve to !he righL radius of 1835,08 feeL
~tral angle of 14'23'56" and chord bearing N 25'40'05" W 459.96 fee~ thenoo N
::::>
,..'26'04" W 43.15 feet; thence N 71'31'56" E 3.82 feet; thence N 69"37'34' E ::::E "w
--- -APPROXIMAlE w :JJ3 feet; thence N 18'46'35" E 59.00 feello a POINT OF BEGINNN!NG: ::::E "'"'
~~~~opR~~ ~~ 5 ~ 0 :0
ON MDOT R.O.W. MAP ~
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thence S 71'13'25" E 59.81 feet
thence S 59'26'56' E 102.04 feet;
lhanca N 87"47'29" E 175.17 feet;
u ::;
u.
~ ' thence 77.01 feet along lhe arc of a curve to lhe tell, radius 50.00 feet,
0
N 57'07'54" E
~ ~ central angle of 86'14'33", and chord bearing N 43'40'13" E 69.62 feel;
25.00' thence N 00'27'04" W 113.61 feet;
thenca N 06'17'14" W 216.62 feet;
!henca N 17"53'19" E 225.89 feel;
5
\hence N 00'38'56" E 360.95 feet to !he east & west 1!4 fme 11f said Sadlon
33 and the POINT OF ENDING; being a part of the S.E 114 of said
Section 33, T10N, R16W. City of Muskegon, Muskegon County,
ClJRVf DATA Midligan: aJI'cepl a Ely part ta~en, deeded or used lor public road
SITE# 702
R = 1860.06' purposes and subject to eaS!Iments ar1d restrictions of record, if any.
A "' 545.32'
Dalto"' 16'47'51"
CH= N 41"16'05" W lTE
543.37'
ate all bearings oo•o7• 13" counter-clockwise to obtain bearings that are based on
e North as determirmd from glo!Jal positioning system (GPS). 1
oNCHMARK
'1e in south face of utility pole located norttl'wesl of the existing driveway gate
t----C'R"Pm;ED MONOPOLE
rox!mately 155 feet east of the centerline of the proposed monopole.
Elevation: 613.48 (USGS & NGV Datum} !
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MEMORANDUM
TO: Honorable Mayor, City Commissioners, and City Manager
FROM: Robert H. Kuhn, Director of Public Works
DATE: September 26, 2006
RE: Request for Flow Transfer
In 1989, the City of Muskegon and local members of the Muskegon County Wastewater
Management System signed the Capacity Allocation Contract. Under this contract, the
City was allocated 10-84 Million Gallons Per Day (MOD) of future wastewater flow. At
that time, allocations were committed and paid for because the system was very near to
peak capacity, and the Michigan Department of Environmental Quality (MDEQ) was not
allowing any new connections to others that did not have a sufficient allocation.
Since the mid-nineties, all flows have decreased and there is much available capacity at the
Wastewater site.
Meanwhile, the City of Muskegon went on an extensive infilteration-elimination program,
and as a result, our 1989 flow of 8.2 MOD has decreased to 5.2 MOD, leaving an available
capacity of well over 5.6 MOD for future growth.
By transferring 50,000 gallons per day (.05 MOD), the City will save about $1800-$2000
per year on the final two 1989 bond payments due in 2007 and 2008.
All future and other bond payments are based on flow rate.
Although they have requested only 35,000 gallons per day, I am asking for a commitment
from the Township of a minimum of 50,000 gallons per day. With your permission, I will
negotiate the final number with the Director of the Muskegon County Wastewater
Management System.
I hereby request that the City of Muskegon grant a request to transfer .05 MOD of its
allocation of 10.84 MOD to Cedar Creek Township.
RHK/rsh
MUSKEGON COUNTY
M c H G A N
August 31, 2006
BOARD OF
PUBLIC WORKS
Mr. Robert Kuhn, Director of Public Works
Louis A. McM urray City of Muskegon
Chair
District 9 1350 East Keating Avenue
Muskegon,MI49442
Marvin R. Engle
Vice Chair
District 5 Dear Bob,
Martin L. Hulka
Secretary I have received a letter from Cedar Creek Township requesting a flow allocation
of35,000 gallons per day for our County Wastewater System (see attached).
P. Don Aley
District 7
Under the 1989 Capacity Allocation Contract, the System Director is
Charles L. Buzzell responsible for administration of the wastewater system capacity. As such, I am
District 2
requesting that the City of Muskegon grant a transfer of0.035 million gallons
James J. Derezinski per day (MGD) of their existing 10.84 MGD allocation to Cedar Creek
District 4
Township. Cedar Creek Township must have this allocation approval to join
Bill Gill the County Wastewater System.
District 8
I. John Snider II Cedar Creek would pay (and the City of Muskegon would save) about $1,800
District 3
per year for this allocated capacity as pm1 of the refinanced 1989 bonds in 2007
Stephen R. Wisniewski and 2008. At that point these "old bonds" would be retired. Long tetm, the City
District 1 of Muskegon and the rest of the system users will benefit from a higher flow.
If approved by your Commission, this allocation will go into effect when Cedar
Creek has completed their contracts with Timberline Estates Mobile Home Park,
Muskegon Township, and the County Wastewater Management System.
Dave Kendrick, County Public Works Director
cc: Ted Williams, County Counsel
Jim Muston, Cedar Creek Township Supervisor
Pat Jordan, Muskegon Township Supervisor
Roland Cmmmel, Municipal Wastewater Committee Chairman
Mike Otiega, Counsel to Municipal Wastewater Committee
WASTEWATER MANAGEMENT SYSTEM • 8301 WHITE ROAD • MUSKEGON , MICH IGAN 49442
(231) 724-3440 • FAX (231) 724-3588
TTY (231) 722-4103 • An EEO I ADA I AA Employer
recycled paper
AUG 3 0 2006
.@~®&rn ®m~rn~ ll®MarJO[p SUPERVISOR
JAMES F. MUSTON
6556 SWEETER ROAD
TWIN LAKE, Ml 49457 CLERK
PHONE {231) 821..(1014 LORRAINE HAWKINS
FAJCf231l821-2725
email: cedarcreektownship@comcast.net TREAsURER
SHARON K. ACKERMAN
TRUSTEES
TONY CROSSER
WILLIAM CARPENTER
August 9, 2006
Mr. Dave Kendrick, Director
Muskegon County Public Works
8301 White Rd.
Muskegon Ml 49442
Dear Mr. Kendrick,
Please consider this letter our request for a flow allocation within the Muskegon County
Wastewater Management System. It is our intention to contract with Muskegon Township to
accept the sewage generated at the Timberline Estates Mobile Home Park and adjacent areas.
This flow is estimated to average 35,000 gallons per day. ·
Sincerely, .
(:?~/??~··
U
V
Jim Muston, Supervisor
Cedar Creek township
JM/clc
Cc: Charles Buzzell, County Commissioner District 2
Roland Crummel, Muskegon Municipal Wastewater Committee Chairman
Pat Jordan, Muskegon Township Supervisor
Mark Nettleton, Cedar Creek Attorney
Lorraine Hawkins, Cedar Creek Clerk
Commission Meeting Date: October 10, 2006
Date: October 3, 2006
To: Honorable Mayor & City Commission
From: Planning & Economic Development Department
RE: Sale of Parcel in Seaway Industrial Park
SUMMARY OF REQUEST:
To approve the sale of Lot #2 in Seaway Industrial Park (see attached map) to Dan Hoe
Excavating, 13664 Ruckys Road, Holland, Ml 49424. The purchase price is $135,000
(asking price $144,000). This company is currently located in Holland, but due to increased
business in the Muskegon, would like to locate a satellite plant here. They plan to invest
$125,000 to $150,000 in a building and other site improvements. Expected employment is
at least 2 full time employees, possibly more, depending on the season.
FINANCIAL IMPACT:
The sale of this lot, while is located in a Renaissance Zone, will still generate City of
Muskegon income tax.
BUDGET ACTION REQUIRED:
None
STAFF RECOMMENDATION:
To approve the attached resolution and to authorize both the Mayor and the Clerk to sign
said resolution, deed, and all other necessary documents.
COMMITTEE RECOMMENDATION:
Resolution No. 2006-86 ( f)
MUSKEGON CITY COMMISSION
RESOLUTION APPROVING THE SALE OF A LOT #2 IN SEAWAY INDUSTRIAL PARK TO
DAN HOE EXCAVATING
WHEREAS, the City of Muskegon has ownership of the property known as Lot #2located in Seaway
Industrial Park, Muskegon, Michigan, designated as parcel numbers 24-131-1 00-0006-1 0; and
WHEREAS, Dan Hoe Excavating, 13664 Ruckys Road, Holland, Ml, has made a legitimate offer to
purchase the subject property; and
WHEREAS, both the Seller (City of Muskegon) and Buyer (Dan Hoe Excavating) agree to the te1ms
of the purchase as outlined in the attached development agreement; and
WHEREAS, the sale would generate additional tax revenue for the City and relieve the City of further
maintenance costs; and
WHEREAS, the redevelopment of the subject property is consistent with the City's objective of
development of Seaway Industrial Park.
NOW THEREFORE BE IT RESOLVED, that the Muskegon City Commission approves the sale of
the property known as Lot #2 to Dan Hoe Excavating for the sum of $135,000.
See attachment A for property description.
Adopted this 10th day of October, 2006
Ayes: Davis, Gawron, Shepherd, Spataro, Warmington, Wierenga, and Carter
Nays: None
Absent None
Linda S. Potter, Acting Clerk
10/10/06
. '
2006-86(f)
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 October 10, 2006.
By: aiiuia S<0 · lliiM.
Linda S. Potter, Acting Clerk
10/10/06
ATTACHMENT A
CITY OF MUSKEGON COM AT SECOR OFNW FRL 114 SEC 31 TION R16WTH N OOD OOM OOS E 1295.50
FT ALG E LN OF SD NW FRL 114 TH S 89D 46M 54S W 672.43 FT ALG S RIW LN OF YOUNG AVE & ITS
EXTENSION IN YOUNG & WILLIAMS ADDN FOR POB TH S OOD OOM OOS E 320.00 FT ALG W RIW LN
TEMPLE STTH S 89D 46M 54S W 349.77 FTTHN 33D 14M 47S W 381.68 FT ALGTHE NE RIW LN OF
CSX RR TH N 89D 46M 54S E 559.02 FT ALG SD S RIW LN OF YOUNG AVE TO POB PROPOSED ESMT
OVER RUDDIMAN CREEK DRAIN THAT PT OF FOL DESC ESMT LYING OVER AND ACROSS ABOVE
PARCEL A 50FT WIDE STRIP OF LAND C/L DESC AS COM AT THEW 1/4 COR OF SEC 31 TION R16W
TH S 89D 49M 59S E 1031.12 FT ALG S LN OF NW FRL 1/4 SD SEC 31 FOR POB OF SD C/L TH N 45D 25M
16S E 354.00 FT TH N 02D 08M 16S E 495.50 FT TH N 43D 12M 46S E 749.75 FT FOR POE OF SD C/L ON
THE S RIW LN OF YOUNG AVE IN YOUNG & WILLIAMS ADDN THE SIDELINES OF SD 50FT WIDE
STRIP OF LAND EXTEND OR SHORTEN TO ALLOW NO GAPS OR OVERLAPS
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QUIT-CLAIM DEED
KNOW ALL MEN BY THESE PRESENTS: That the CITY OF MUSKEGON, a municipal corporation, whose
address is 933 Terrace Street, Muskegon, MI 49440,
QUJT CLAIMS TO: DDBP, LLC, a Michigan limited liability company, of 13664 Rockey's Road, Holland, MI
the following described premises situated in the City of Muskegon, County of Muskegon, State of Michigan, to wit:
SEE ATTACHED EXHIBIT A
for the sum of One Hundred Thirty-five Thousand and no/100 Dollars ($135,000.00).
This deed is exempt from real estate transfer tax pursuant to the provisions ofMCL 207.505 (a) and (h)(i) and
MCL 207.526 (a) and (h)(i).
Dated this _ _ day of _ _ _ _ , 2006
STATE OF MICHIGAN
COUNTY OF MUSKEGON
The foregoing instrument was acknowledged before me this !":L_ day of';t._c~\:Jr). 2006, by Stephen J.
Wannington and Linda S. Potter, Mayor and Acting Clerk, respectively, of the CITY OF MUSKEGON, a municipal
corporation, on behalf ofthe City. n \ , J 1) f;-,
0,., \k).-.._, Yr, • 01' J2vcf-\TIV SilL
:i'D f!'no
f'YI. /J'w 14 ws\Z i , Notary Public
Muskegon County, Michigan
My conunission expires: C'S'-1:,- <70 1.d
PREPARBD BY: Acting in Muskegon County, Michigan
John C. Schrier
Pannenter O'Toole
601 Terrace St., P. 0. Box 786
Muskegon, M1 49443-0786
Telephone: 231.722.1621
SEND SUBSEQUENT TAX BILLS TO: Grantee
WHEN RECORDED RETURN TO: Grantee
G:\EDSI\FILES\00100\042604\DEED_QUIID82904.DOC
J
ATTACHMENT A
CITY OF MUSKEGON COM AT SECOR OFNW FRL 114 SEC 31 TlON R16W TH N OOD OOM OOS E 1295.50
FT ALG E LN OF SD NW FRL 1/4 TH S 89D 46M 54S W 672.43 FT ALG S RIW LN OF YOUNG AVE & ITS
EXTENSION IN YOUNG & WILLIAMS ADDN FOR POB TH S.OOD OOM OOS E 320.00 FT ALG W RIW LN
TEMFLE STTH S 89D 46M 54S W 349.77 FT TH N 33D 14M 47S W 381.68 FT ALG THE NE RIW LN OF
CSX RR TH N 89D 46M 54S E 559.02 FT ALG SD S RIW LN OF YOUNG AVE TO POB PROPOSED ESMT
OVER RUDDIMAN CREEK DRAIN THAT PT OF POL DESC ESMT LYING OVER AND ACROSS ABOVE
PARCEL A 50FT WIDE STRIP OF LAND C/L DESC AS COM AT THEW 1/4 COR OF SEC 31 TlON R16W
TH S 89D 49M 59S E 1031.12 FT ALG S LN OF NW FRL 1/4 SD SEC 31 FOR FOB OF SD C/L TH N 45D 25M
16S E 354.00FT THN02D 08M 16S E495.50FTTHN 43D 12M 46S E 749.75 FTFORPOE OF SD C/LON
THE S RIW LN OF YOUNG AVE IN YOUNG & WILLIAMS ADDN THE SIDELINES OF SD 50FT WIDE
STR!F OF LAND EXTEND OR SHORTEN TO ALLOW NO GAPS OR OVERLAPS
r
'
Michigan Department ofTreasury
L-4260
,2766,{Rev. J-06)
This form is issued under authority of
PROPERTY TRANSFER AFFIDAVIT P.A. 415 of 1994. Filing is mandatory.
This fonn must be filed whenever real estate or sor11e types of personal 'property are transferred (even if you
are not recording a deed). It is used by the assessor to msure the property is assessed properly and receives the correct taxable value. It must
be filed by the new owner with the assessor for the city or township where the property is located within 45 days of the transfer. If it is not
filed timely, a penalty of$5/day (maximum $200) applies. The information on this form is NOT CONFIDENTIAL.
1. Street Address of Property
Vacant Land Young Avenue
T 2. County
Muskegon
4. Date of Transfer (or land contract was signed)
December 13, 2006
3. City/TownshipNillage of Real Estate Deity
City of Muskegon
0Township 5. Purchase Price of Real Estate
$135,000.00
Dvmage
6. Property Identification Number fPJN). If you don't have a PIN, attach a legal description. PIN. This number ranges from 10 to 25 digits.
61-24-131-100-0006-10 It usually includes hyphens and sometimes
includes letters. It is on the property tax bill
and on the assessment notice.
7. Seller's (Transferor) Name
City of Muskegon, a Municipal Corporation l 8. Buyer's (Transferee) Name and Mailing Address
DDBP,LLC
13664 Rockys Road
Items 9-13 are optional. However, by completing Holland, MI 49424
them you may avoid further correspondence.
Transfers include deeds, land contracts, transfers involving 9. Type of Trausfer
I
trusts or wills, certain long-term leases and interest in a
business. See the back for a complete list. D Land Contract D Lease
D Deed D Other (specify)
11. Amount of Down Payment
I
10. DYes
Is the transfer between related persons? DNa
I
12. If you financed the purchase, 13. Amount Financed (Borrowed)
DYes
did you pay market rate of interest? DNa
Exemptions ________________________________________________________________~-------------
I
The Michigan Constitution limits how much a property's taxable value can increase while it is owned by the same person. Once
the property is transferred, the taxable value must be adjusted by the assessor in the following year to 50 percent of the property's
usual selling price. Certain types of transfers are exem£t from adjustment. Below are brief descriptions of the types of exempt
transfers; full descriptions are m MCL Section 21 1.27a(7)(a-n). If you believe this transfer is exempt, indicate below the type of
exemption you are claiming. If you claim au exemption, your assessor may request more information to support your claim.
D transfer from one spouse to the other spouse
D change in ownership solely to exclude or include a spouse
D transfer of that portion of a property subject to a life lease or life estate (rmtil the life lease of life estate expires)
D transfer to effect the foreclosure or forfeiture of real property
D transfer by redemption from a tax sale
D transfer into a trust where the settlor or the settlor's spouse conveys property to the trust and is also the sole beneficiary of the trust
D transfer resulting from a court order unless the order specifies a monetary payment
D transfer creating or ending a joint ownership if at least one person is an original owner of the property (or his/her spouse)
D transfer to establish or release a security interest (collateral)
D transfer of real estate through normal public trading of stocks
D transfer between entities under common control or among members of an affiliated group
D transfer resulting from transactions that qualify as a tax-free reorganization
D transfer of qualified agricultural property when the property remains qualified agricultural property and affidavit has been filed.
D other, specify:
Certification----------------------------------------------------------------------------------------
/certifY that the i11jormation above is true and complete to be best of my knowledge.
~--~~----~~-----------------,
OW.'s~i~------
Date If signer is other than the owner, print name and title.
December 13,
l;mytim~onfN;;;;;ber
2006
E-mail Address
COMMr::UCihL
1\l.ll.\NCI-:
BUY AND SELL AGREEMENT
--or·--
rU;<\t.Tom;• FOR OFFICE, COMMERCIAL, INDUSTRIAL AND MULTI-FAMILY PROPERTY
Office of C td CoJYIME!(.0¢1 . REALTOR®
M!J'~Cl:(a :d I (city), Michigan Phone: _ _<j?LL3LII.t_2_.2"'0"'-7-LL/~ Fax: _ _ _ _ _ _ _ __
Email: Date: ~--/[g~a(_;.
1. ~~~ned Buyer and Seller each acknowledgl$ the Selling Salesperson is acting as (check one): ·
/A~ Subagent of the Seller
0 Agent of the Buyer 0 Dual Agent (with written, informed conuent of both Buyer and Seller)
D Other (specify) : '
C.tlv of
--;,----+-'-W'-"=~""'"------------ County. Michigan, commonly known as
and legally described as follows;
(the "Land"}, together with all buildings, fixtures and improvements situated on the Land (the "Improvements"), and al! equipment and other personal
property appurtenant to and currently used in connection with the Improvements including pers·anal property as described in Exhibit E (I he "Personal
Property"), all of which is collectively referred to herein as the "Premises", except the following:
Dollars ($ I )IJ .V)Q - and Personal Property shalf be
set forth on an atla~hed Exhibit.
4. Terms of Payment shall be as indicated by "X" below (other unmarked terms of purchase do not apply).
0 Cash. The Buyer shall pay the full purchase price to the SeHer upon execution and delivery of a warranty deed and performance by Seller of the
~losing obligations specified in Section 17 below.
~ New Mortgage. The Buyer shall pay the full purchase price to ttie Seller upon execution and delivery of a warranty deed and performance qy
Seller of the closing obligations specified in Section 17 below,.conHngenl upon the Buyer's ability to obtain a .( vtt{rAC-'f1Cut·L ·
type j C year mortgage loan in the amount of $ . bearing interest a!" a· rate no greater
than % per annum. The Buyer shall apply for the inortgage loan immediately and accept it promptly if tendered.
If Buyer does not deliver to Seller on or before {date). proof that Buyer has
accepted a mortgage loan commitment. Seller may thereafter at any time treat this contingency as· not having been satisfied and terminate this
Agreement by written notice to .Buyer. unless Buyer has waived this contingency in writing. prior to the date indicated in this paragraph.
D Contract D Purchase Money Mortgage. The Buyer shall pay the full purchase price to the Seller pursuant to the terms and conditions
stated in a Wesl Michigan Regional Form Number 1 Land Contract or a Purchase Money Mortgage upon performance by Seller of the closing
obligations specified in Section 17 below. The Land Contract or Purchase Money Mortgage shall provide a down payment of
$ and payment of the balance $ in installments
of S - - - - - - - - - - - - o r more. at. Buyer's option. including interest at the rate of _ _ _ _ _ _ _ _ _ % per annum computed
rnonth!y, interest to starl on date of closing, and first payment to become d u e - - - - - - - days after date of closing. The entire unpaid
balance wtll become due and payable months after closing.
Seller understands that consummation of the sale or transfer of the Premises shall not relieve the Seller of any liability that Setter may have under
the mortgage(s) to which the Premises are subject. unless otherwise agreed to by the lender or required by Jaw or regulation.
Additional Provisions:
5 Survey. A D new 0 recertified ;z{exiSting 0 boundary survey with iron corner stakes and with all easements of record. improvements. and
encroachments (II any): and/or D AlTA survey showing all easements of record. improvements. and encroachments. if any. shall be prov1ded by
0 Buyer Seller 0 as soon as possible after the later to occur of (i) the tille insurance commitment referenced in Section 6 below _is delivered
to the party responsible for the survey: and (ii) Buyer's right to terminate under Section 7 below is waived or deemed to have been watved. If the
survey reveals a mat1er that materially and adversely affects the value of the Property or Buyer's intended use of the Property_. Buyer shall have the
right to terminate this Agreement by giving Seller written notice within ( calendar days afler cop1es of both the survey
and tille commitment referenced in Section 6 below are delivered to Buyer. otherwise Buyer's right to terminate this Agreement pursuant to this
Section shall be deerned to have been waived. Other:
~ •>·lOVIto)hl Cu111on~oc.1.11 .o\llo~roo• nl REAl TORS. ~(l(l5
"'"'""'~n D ..,,. 01•2005
,
81,y <.nd Sell A9r<1GriWI1! for Office, Commercial, Industrial and Multi-Family Property P<Jge 2 of G
6. Title lnsuran.ce. At Seller's expense, Seller shall provide Buyer with a stanpard AlTA owner's policy of title insurance in the amount of the purchase
price. effective as of the date of dosing. A commitment to iSsue such policy insuriilg maikelable title (as defined in Section 10 below) vested in'
Buyer, including a tax status report, shall be ordered wlthin seven (7) calendar days affer the Effective Dale of this Agreement, and shall be delivered
as soon as feasible thereafter. If any matter disclosed by the title commitment adversely and materially affects the' value of the P,r.operty or Buy£f's
intended use of the Property, Buyer shall have the right to terminate this Agreement by giving Seller written notice within FirtL L £ l
calendar days after copies of both the title corrimilment and survey referenced in Section 5 above are delivered to Buyer. otherwise Buyer's right to
terminate this Agreement pursuant to this Section shall be deemed to have been waived. A ma!!er disclosed on the title commitment that is in the
form of a lien )hat is liquidated in amount and that can be readily discharged (such as a mortgage) shall not be grounds for termination of this
Agreement by Buyer under this Section so long as Seller discharges s·uch Hen{s) at the ·closing. Other: ·
7. Inspections, By signing this Agreement, Buyer is representing that the Buyer is aware that inspection services of buildings and building c9mponents
and systems are commercially available at a fee. Buyer has the right to inspect the buildings and building components and systems o'r have the
buildings and building components and systems inspected by experts selected by the Buyer.- The Buyer has elected to arrange and pay for
l~eclions including. but not limited to. the following:
)d No lnspeclions 0 Plumbing 0 H~aling, Ventilating & Air Con~ilioning 0 Electrical
D Structural. including roof . 0 Termi!es and other wood destroying insects D Other (specify):
The Buyer shall have the right to terminate this Agreement if the inspection reports are not acceptable to the. Buyer by giving Seller written notice
within _ _ _ _ _ calendar days after the Effective Date of this Agreement. otherwise the right to 'terminate sha'l be deemed to have been waived.
Buyer agrees that Buyer is not relying on an'} representation or statement made by Seller or any real estate sat~sperson (whether made intentionally
or negligenlly) regarding any aspect of the Premises or this sale transaction, except as may be expressly set forth in ·this Agreement, a written
amendment to this Agreemerit, or a disclosure statement separately signed by the Seller. Accordingly. Buyer agree_s to accept the Premises "as is"
and "with all faults" (whether obvious or concealed), except as otherwise expressly proVided in the qocumenls specified in the preceding sentence.
Other:
B. Closing Adju!?tments, The following adjustments shall be made between the parties as Qf.the close.of business on the closing date, with the Buyer
receiving a Gredil or assuming responsibility, as the case may be, for amounts attributable to lime periods following the closing date:
a. Prepaid rent and Additional Rent (as defined in the paragraph);
b. Interest on any exis!ing indebtedness assumed by Buyer;
c. Charges for any transferable service ·contracts assigned to Buyer described in Exhibit D;
d. Utility deposits;
e. Security deposits;
f. AU operating expenses including, but not limited to, CAM, taxes, insurance, plus Additional Rent shall be allocated accurately between the parties
pursuant to the leases.
lf any tenant is late, delinquent or otherwise in default in the payment of rent on the closing date, Seller shall assign to Buyer the claim for and the
right to collect the rent; Buyer shall pay such past due rent to Seller promplly upon receipt, Put Buyer shall not bB obligated to me suit to collect such
rent and shall reassign the d<Jim to Seller on demand. If any tenants are required to pay percentage rent. escalation charges for real estate taxes,
operating expenses, cost-of.Jiving adjustments or other charges of a similar nature ('Additional Rent') and any Additional Rent is collected by Buyer
after closing attributable in whole or in part to any period· prior to closing. Buyer shall promptly pay to Seller Seller's proportionate share of the
Additional Rent. Other:
9. Property Tax.es. Seller shall pay delinquent property taxes. The current year's property taxes will be paid as follows (choose one):
D No proration·.
0 Buyer D Seller shall pay taxes billed Summer (year).
0 Buyer D Seller shall pay taxes billed Winter (year).
D Calendar Year Proration (all taxes billed or to be billed in the year of closing). Calendar year tax le~ies ~ill be estima_ted. if necessary, using
taxable value on the day of closing, broken down to a per diem tax payment and prorated to day of c!osmg w1th Seller pay1ng for January 1 to day
of closing.
SpeCial Assessments and deferred asseSsments. whether due in installments of otherwise, which are due and payable on or before the Effective Date
of this Agreement shall be paid by Seller. All other special assessments. including deferred assessments. for improveme~ls now installed. not yet
installed. or in the process of being 1nsta!led. that are first due and payable after the Effective Dale of this Agreement shall be pa1d by Buyer. Other:
·~ 0'""'''""""
Property Address
•<:1 Cal>ylighl Colnmo101•l A liM« Ql
Rovo,.on Oalo 011;1005
Buy and Sell Aureement for Office, Commerci<ll, lndustnal and Multi~Filmily Propo<rl•; F'·!·:I!O :' ,_,1 •.:
10. Conveyance. Upon performance by Buyer of the closing obligations sp"ecified in Section 18 below, Seller shall convey the marketable ti1fe to the
Premfses to Buyer by warranty deed or agree to convey marketable title by land contract or assignment, as required by Section 4 above. mclud.ng oil.
gas. and other mineral rights, subject only to existing zoning ordinances. and to building and use restrictions. easements. and reservations of record.
if any. As used herein, "marketable tille" means marketable title within the meaning of the Michigan 40-Year Marketable Title Act (Mlch Comp Laws
§§ 565.101 et seq.).
The following paragraph applies only if the Premises include unplatted land:
Seller agrees to grant Buyer at closing the right to make (insert number) ~q,J f)Jl•lAt.>
division(s) under Section 108(2). (3). and (4) of
the Michtgan Land Division Act. (I( no number is inserted, the right to make divisions under the sections referenced above stays with any rema1nder
nlthe parent parcel retained by Seller. If a number is Inserted, Seller retains all_ avail~ble divisions in excess of the number stated: howeve1. Seller
rmd/or REAL TOR@ do not warrant that the number of divisions stated is actually available) If this sale will create a new division. Seller's o\lligallons
11nder this Agreement a(e contingent on Seller's receipt of municipal approval. on or before ,_dale).
IJf the proposed division to create the Premises. Other:
I I. Warranties of Buyer. Except as otherwise provided or acknowledged in this Agreement. BUyer represents and warrants to Seller as follows·
a. fhe performance of the obligations of Buyer under this Agreement will not violate any contract indenture. statute. ordinance. judicial or
"'linistrative order or judginent applicable to Buyer.
b There is no litigation or proceeding pending, or to the Buyer's knowledge threatened. against or involving the Buyer. and the Buyer does n'ot know
or have reason to know of any ground for any such litigation or proceeding, which could have an adverse imPact on Seller or Seller's rnterests
under this Agreement.
c. In entering into this Agreement. Buyer has not relied upon any wrillen or verbal representations made by Setter or any represent<Jtive of Seller.
including any real estate salesperson, regarding the Premises or any aspect of this transaction. which are not expressly set forth in thiS Agreement
Other·
12.·. Warranties of Seller. Except as otherwise provided or acknowledged in this Agreement. Seller represents and warrants to, and agrees with Buyer
as follows:
a Seller's interest in the Premises shall be transferred to Buyer on the closing date, free from liens, encumbrances and claims of others.
b. The performance of the obligations of Seller under this Agreement will not violate any contract. indenture. statute. ordinance. jud1c.ial 01
administrative order or judgment applicable to Seller or the Premises.
c. There is no !ltigalion or proceeding pending or to the Seller's knowledge threatened, against or involving the Seller or the Premises. and the Seller
does not know or have reason to know of any ground for any such litigation or proceeding which could have an adverse impact on Buyer or 13uyer's
\tile to and use of the Premises. before or after closing.
d.Seller shall continUe to operate the Premises in the ordinary course of business and maintain the Premises in a state of good condition and repair
during the iriterim between the signing of this Agreement and the closing dale.
e If a statemeht(s) of income and expense with respect to the operation of the Premises is(are) described in Exhibit 8, such statemenl(s) istare)
accurate for the period(s) designated in the statement(s).
The information-concerning written leases and any tenancies not arising out of written leases described in Exhibit Cis accurate as of the E_ffect1ve
Date of !11is Agreem8nt. and there are no leases or tenancies with respect to the Premises other than those described in Exhibit C (!he "Leases")
Except as otherwiSe described in Exhibit C:
11) AU of the teases are in full force and effect, no party thereto is in material default thereunder, and none of them have been modified. amended
or extended;
12) No renewal or extension options have been granted to tenants;
(3) No tenant has an option to purchase the Premises;
t4) The rents set forth are being collected on a current basis and there are no arrearages in excess of one month;
t5) There are no security deposits, and
{6) No real estate brokerage commission will become payable under any existing arrangement upon exercise of any options or other right to
extend or renew the term of any lease or purchase of the Premises.
g.lf a schedule of service, maintenance. supply and management contracts ("Service Contracts") is described in Exhibit D. the Exhibit lists all the
Servtce Contracts currently in effect with respect to the Premises.
h. The Premises will be in compliance with any applicable smoke detector ordinances as of the closing date.
1. W!lll respect to underlying land contracts or mortgages. the sale will not accelerate indebtedness. increase interest rates. or impose pena!lies and
sanctions. ·
J. Seller is Without personal knowledge as to the presence on the Premises of any toxic or hazardous substances or of any underground storage
tanks.
k Other·
13. Sidewalk Inspection. ff Premises is in a municipality that requires a sidewalk inspection, Seller shall order the inspection and pay for any repaHs
(\ee 111 ed necessary by the municipality. so that the Premises will be in compliance with any applicable stdewalk ordinance as of the cfosmg date
t·l Damage to Premises. tf between the Effective Date of this Agreement and the closing dale. all or any part of the Premises is damaged by !1re or
na.turnl elements or other causes beyond the Seller's control which cannot be repaired prior to the closing date. or any part of the Premtses 1s taken
pu1 sum 1t to any power of eminent domain. Seller shall immediately nolify Buyer of such occurrence, and either Seller or Buyer may _tern11nC1te l/115
/l.()reement by wrillen notice to the other within fifteen (15) days after the date of the damage or taking. If neither elects to terminate \h1s Agreement
there shall be no reduction of the purchase price and at closing Seller shall assign to Buyer whatever rights Seller may have w1th respect to any
msurrmce proceeds or eminent domain award.
o,,,,,, ·''""" zo» t.rz. S'l1tll>o/" IYl·
' ""'""""" '~"'""'"'"'~' "-11>,,"'"" nl RE.O.l TORS. ~005
,_._...,...,, ("o.,.,. <111~nns
JM D ,,,... '""""
<{,le
15. Closing. The closing shall be held on or before ,-;c:~O-;'!C;:._',I::;:'5~.c:'220C'Q;;'{.~=::;,--;;:;-;c;c;ac;=:;-:;;:;;;;;c::;o;:ccc:-;o;;c,-;;-':c::-:;"'"c;co-::;;::c=
and as promplly as practical after all necessary documents have been prepared. An additional period of thirty (30) days shall be allowed for c!osmg
to accommodate delays in title work or the correction of !We defects and/or survey problems which can be readily correctable, delays in obtaining any
required inspections. surveys or repairs, delays in completing Environmental Site Assessments. Baseline Em,ironmental Assessment or Due Care
Plan/Sectipn 7a Compliance Analysis (H suct1 assessments or plans were ordered in a Ume!y manner}, or if the terrhs of purchase require participation of
a lender and the lender has issued a commitment consistent with the requirement but is unable to participate in a closing on or before the required da.te
16. Possession. Seller shall tender to Buyer possession of the Premises upon completion of:the closing, Subject to all exisHng leases and rigl1ts of
tenants in possession. Upon Seller's acceptance, or Buyer's acceptance of a counter offer, ·Buyer shall have !he· right to enter upon the Premises
during reasonable business hours for purposes of inspections and tests: provided, however, that such inspections and testing shalt not unreasonably
interfere with t~e rights of tenants in possession and shall not cause physical damage to the Prernises. Other: ·
17. Seller's Closing Obligations. AI closing, Seller shall deliver the following to Buyer:
a. The warranty deed, land contract or assignment of land contract required by Section 4 of this Agreement.
b.A bill of sale for any Personal Properly (described in Exhibit "E")
c. A written assignment by Seller of Seller's interest in all leases and a transfer to Buyer of all security deposits. accomPanies by the original or a true
copy of each h:'lase.
d.An assignment of all Seller's rights under any Service Contracts described in Exhibit 0 which are assignable by their terms and which Guyer wishes·
to assume, together wrth an original or truei copy of each Service Contract assigned.
e.A notice to any tenants advising the tenants of the sale and directing that future payme.nts be rr.ade to B!Jyer.
f. Any other documents required by this Agreement to be delivered by Seller.
g.An accounting of operating expenses including. but not limited to, CAM. taxes. insurance, plus.Addi!ional Ren!. collected in a·dvance or arrears.
spent or not yet spent by Seller, ~hawing an accurate allocatiori between the parties purSuant 19 the leases. ·
18. BuYer's Closing Obligations. At closing, Buyer shall deliver tO Seller the following: .
a. The cash portion of the purchase price specified in Section 4 above shall be paid by cashier's check Or oiher immediately available funds. as
adjusted by the apporlionments and assignm¢nts in accordance with this Agreement. · · ._ ·
b.A written assumption by Buyer of the obligations of Seller under the leases arising after closing, including an acknowledgment of the receipt of all
security deposits.
c. Any other documents required by this Agreeinent to be delivered by Buyer.
19. 1031 Tax Deferred Exchange. Upon either party's request, the other party shall cooperate and reasonably assist the requesting party in structuring
the purchase and sale contemplatei:l by· this Agreement as part of a tax_·deferred, Jike-k'1nd exchange under Section 1031 of the Internal Revenue
Code of 1986. as amended; provided, however, that in connection lherewilh,.the nonrequeSting party shall not be required to (a) incur any additional
costs or expenses: (b) take legal title to addltionat real property (i.e., the requesting party's "replacement property" or "relinqUished property"): or (C)
agree to delay the closing.
20, Notices. Unless otherwise stated in this Agreement, a notice required or permilled by this A·J'reement shall be sufficient if in writing and either
delivered p~rsonally or by certified mail or other form of documentable delivery addressed to the parties at their ·addresses specified in the proximitY
of their signatures below, and any notices given by mail shall b~ deemed to have qeen 'given as of the rJate of the postmark.
21. Additional Acts. Buyer and Seller agree to execute and deliver such additional documents and to perform such additional acts as rnay become
necessary to effectuate the transfers contemplated by this Agree_rrienl. ·
22. Entire Agreenient. This Agreement contains the entire agreement of the parties with respect to the sale of the Premises. All contef\lporaneous or
prior negotiations have been merged into this Agreement. This Agreement may be modified or amended only by written instrument signed by the
parties ·to this Agreemenl. This Agreement shall be governed by apd construed in accordance with the laws of the Slate of Michigan.
For purposes of this Agreement, the phrase "Effective Dale of this Agreement" shall be the date upon which this Agreement is fully executed pursuant
to Section 32 or 33 below, whichever may apply. . ,
23. Earnest Mone.y. Buyer gives . IIWI. ciA C?/!:!tiA (""I?C.Jit
I . . . REAL TOR, !1) qays to obtain fi L~ ie
the written acceptance of this offer and agrees that this1offer. w€n accepted by Seller, will constitute a binding agreement betw ~n Buyer and Seller.
Buyer shall depos1t $ w1th REAL ToR 0 w1th th1~ /ffer.
D Within after acceptance of th1s offer. OR upon )2f
acceptance of thiS offer, evtdencmg Buyer's good fatth, to be held by the REAL TOR and to apply on the purchase pnce or the down payment portmn
thereof where applicable. If this offer is not accepted or the ti!le is not marketable or if the purchase is contingent upon condthons spec1fied whtch
cannot be mel, this deposit Shall be promptly refunded. If the Buyer defaults. all deposits made may be'forfeited as liquidated damages at Seller's
election or, alternatively, Seller may retain the deposits as part payme:nt of the purChase price and pursue Setter's legal or equitable remedies against
Buyer. If the sale is not closed according to its terms. the selling REALTOR may notify Buyer and Seller of REALTOR'S intended disposition of the
earnest money deposit, and all parties shall be deemed to have agreed to the disposition of the earnest money deposit unless REAL TOR IS notified
of a court action pending concerning this saff:! or disposition of earnest money within sixty (60)-days after notice to the parties.
24. Disclosure of Price and Terms. The purchase price and the terms of this sale may be disclosed by the·Commerciat Alliance of REAL TORS® in the
ordinary conduct of its business. Deletion of this paragraph shall not be considered a counter offer which would r_equire a counter acceptance
25. Credit Reports. Buyer consents that. if not otherwise prohibited, the REAL TOR may give Seller information about the Buyer conlatned m a credit
report which may be furnished to the REAL TOR by a reporling agency. ·
26. Advice of Counsel. Buyer acknowledges that the REAL TOR has recommended that Buyer retain an attorney to pass upon the marketability of title,
to ascertain that the terms of the sale are adhered to before the transaction is dosed and to advise with respect to the Notice referenced in Paragraph
27 hereof.
Property Address 'Zc.?~ .L?! Z
.0 Copyuoh! co ..une•ooal AIIIM<e of REAl TORS. 2005
Ro•»ion O•le !111:1005 ~D '"'"'""''""
Buy iltHi Self Agreement for Office, Commercial, Industrial and Multi-Family Property Page 5 of6
27. Environmental.
a Notice to sellers, buyers, landlords and tenants (environmental risks).
Whenever property is acquired or occupied, the buyer incurs some degree of risk with reuard to potential environ111ental contamination and/or
protected natural resources on the property. Various federal, stale and local laws may impose liability upon the buyer for the remediation of the
contamination even though the buyer did not cause it. or may restrict the buy'er's ability to fully develop or utilize the property. Such risk can be
minimized through !he performance of environmental due dltigeilce.
No real estate broker/salespersons in this transaction possess the expertise necessary tc· assess the nature or extent of these environmental
risks or to determine the presence of environmental contamination or protecled natural resources The real estate broker/s<!lespersons
involved in this transaction do not make independent investigations as to environmental contaminAtion or prolecled tlfllural resources with
respect to any property. and they make no representations regarding the presence :>r absence. now or in the pas!. of environmental
contamination. II is therefore prudent for each party to this transaction to seek legal and technical counsel from professionAls experienced tn
environmental matters to provide an evaluation of !he environmental risks associated with Ihe transaction
b. Environmental reports and assessments.
/'
tv!' Seller shall provide copies of any existing Environmental Assessments or reports involving the Premises within
days after the Effective Date of this Agreement. ·
6 calendar
(2) AI Buyer's option. Buyer shall be given access to the Pre~1ises during normal busine8s hours to perform 0 an ASTM E1528 Transaction
Screpn or D an ASTM E 1527 Phal?e I SHe Assessment (individually or collectively lh~ "Environmental Assessment"). Buyer shall pay
_________ %and Seller shall pay _ _ _ _ _ _ _ _ % of the cost Of the Environmental Assessment. The Environmental
Assessme·nt shall be ordered by the P Buyer D Seller. The Environmental Assessment shall be compleled wlthln ____
calendar days after the Effective Date of this Agreement and shall be certified to
(3) If an Environmental Assessment of the Premises reveals recognized environmental conditions as defined by ASTM. then Buyer shall have
the right to:
(a) terminate this Agreement within calendar days after receipt of the Environmental Assessment report; or
(b) provide Seller with the Environmental Addendum to Buy and Sell Agreem1mt (Seller's rE!fusal to execute the Environmental
Addendum within days shalf, at Buyer's option. terminate this Agreement); or
(c) proceed with the purchase.
(4} For residential housing units. Seller will attach either the Seller's acknowledgment Form Concerning Lead-Based Pnint or a Lead-Based
Paint Seller's Disclosure form. depending on whether the improvements were buill prior to 1978 or 1978 or later.
c. Nondisclosure.
Jf Buyer exercises its right to terminate this Agreement pursuant to subparagraph b. above, Buyer shall not disclose its Environmental
Assessment report(s) to any third-party. AI Seller's request. Buyer shall provide copies of any Environmental Assessment reporl(s) to Seller
d Other:
28. Brokerage Fee. Seller and/or Buyer agrees Ia pay the broker(s) involved in this transaction a brokerage fee as specified In any agency agreement or
other written agreement between them. In the event no such agreement exists. 0 Buyer 0 Seller agrees to pay a brokerage fee of
This brokerage fee shall be paid in full promptly after it is earned. but not
later than any applic<'Jble closing. Unless otherwise previously agreed, BuYer and/or Seller agrees that the. brokerage fee may be shared by the
recipient with any cooperating broker who participates in the sale. in such amount as the recipient decides. wilh,out further disclosure to or consent
from Bliyer and/or Seller Other:
29. Other Provisions.
• 'Su '1' J T ID 6tft!;;IICtUfl f\f,( I ·('.tn-.!JJ.
PropenyAdf1ress Z~ lo£2
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Buy and Sell Agreement for Office, C~mmercial, Industrial and Multi-Family Property Page 6 of 6
30. Index of Exhibits. Other Exhibits.
Not Attached Seller to Exhibit Subject A!lached Sellerlo Exhibit Subject
pplicabl~ Furnish Furnish
/ A Disclosure Regarding Real Estate Agency
Relationships
F P\ddendurn
/ B Income and expense with respect to the
kmeralion of the Premises _,,
·~ c [Wrillen leases and any tenancies not arising
out of written leases
D
/ f-· Service Conlracts
--
/ E list of Personal Property
31 · By sigi~~otrfacl<no~havlng read and received a copy of this Agreement. • , • {(7)'!)\' A?
Witness: ·f--... . . En lily: P,.,o.Jj fll IS!,; NA-N I" ( t / _v
'
Buyer's Addr~~ iJ.c,<., If R.w,(t~I S./2J By: ,"ilo-,.;,f;;',_
Not · P
" ' "
j MtnzvrJ, VU,_,__(_ _LL{J_j[ 'f'-"Z+Y-
Buyer(s) Social Securily Number(s) or Federal tD Number:
E-Mail:-----------------------
SELLER'S ACCEPTANCE Date: --'~"--_.,;J.._·;s<L.~-OL<t(~,________ _________ :lime\
32. The above offer is hereby accepted: C): C'f;'i :
- ---- ' -~~~~~~--
y~-:ro Y:ti i"3q,Qt!)
-----------------------
By signing below, Seller aclmowledges having read and received a copy of this Agreement. ·1r thrs Agreement rs signed by Seller without nny
modification, this becomes the Effective Dale of this Agreement oi?
Seller gives REALTOR above named until __ S fM (lime) ------~~c.'-._o-_.¥>::_________ (rlat·'l. to
obtain B~'s :::?Jceplance of counter offer. if ony
\Mtness.:~c:z_____ _: __
Seller's Address. - - - · - - - - - · -
---·--------
Seller(sj Social Security Number(sJ or Federal 10 Number
E·Mail:
33.
_ _;t'llllO>i
SELLER'S RECEIPT OF ACCEPTANCE
34. Seller acknowledges recerpt cf n copy of tile Buyer's acceplr.mc;e of the r.ounter·offer (if Seller rnade a counter-offer)
Witness· Sel!er. - - - - - · - - - - · - ______ _
WEST MICHIGAN REGIONAl.
ADDENDUM TO PURCHASE AGREEMENT
MLSlli ' Dille: S-ll- t!I;:QQ _ _ _....JA.M.IP.M.
Ll9tlno Office ~ i: 1):. (t2lWI.1.M ~.tr.L l'li'!ALTO!t<Al Phono Fo•
Soiling Ofllc& G't A- (l%11.t( tnt:~«'-- . REALTORd!l Phone Fa•
1. A<ldcndum to Purchase Agreement deled <iJ- 1(,. -~ 42 covering property at
1o50 - wrz Sl4 '4 1'Y?l u'E
2. Thle Addtondt.ll'll to~· an Integral port of tho Purcha"" Agreement, which iG omended as foHows: - - - - - - - -
z..
3. The Seller 1 Buyer (oir¢1e one) g1veB the abOve-naman RfOALTOR® nay• to obtain t11e wrl"on accoptoi\Co of
this Addendum to \he Purct1aso Agr•umetd. II eteept~d, this Addondum Will eongtiluta a b1ndino change to tha Purchase
Agreem..,t, II the Addon<lum 1< nat aocapta<l within the lime period opBCified. this Addendum oheli be 1101d and the exle"ng
term& of the Purcheae Agreement shell continue to apply.
4. REC:lliPT IS ACKNOWU:DOED BY BUYER of a copy of t!Ji-~ii'ilill!"''
o~•· S-lf·o{e ~~~4;~~~~;
Witna .. _ _ _ _ _ _ _ _ _ _ _ _ __
5. RECEIPT IS ACKNOWlEDGED BY SELLER of a copy of this Agreement. /)
Date cz- I ?r -0 & X -:~~====:~=:f.:'l~..J!::;;;~"'-~;;;;'1- Seller
~ma~ tt)(4
0/llnf ~I\ REAl.TOR® B(Wall, 1998
Form 123 Mev. Olte 1198
~-
~
,,,rn COMMrCIIClf\L
~:;~~
R[!\l.fOf/5'
BUY AND SELL AGREEMENT
FOR OFFICE, COMMERCIAL, INDUSTRIAL AND MUL TI-l' A MIL Y PROPERTY
Office of CtA CoMMeaD¢1 . REALTOR®
Mu~?l;'f..t :i'l ' (city), Michigan Phone: -~S?C>...Z3u0_,20JOJ.7LL/_ Fax: ___________________
Email: Date: ~--1'- ~o0 (lime)
1. T~~~ned Buyer and Seller each acknow!edg!;! the Selling Salesperson is acHng as (check one): .
/A~ Subagent of the Seller 0 Agent of the Buyer 0 Dual Agent (with wril!en. informed conr;ent of both Buyer and Seller)
0 Other (specify) : '
C:tb1 ol
Countt. Michigan. commonly known as
and legally described as follows:
(!he "Land"), together with all buildings, fixtures and improvements situated on the Land (the "Improvements"), and all e(juipmen\ and other personal
properly appurtenant to and currently used in connection with the Improvements Including pers·onal property as described in Exhibit E (the ''Personal
Property"), all of which is collectively referred to herein as the "Premises". except the following:
3. Purchase Price. The purchasetprice for the P!Les is: (.
121\l'L tk.Jd~ L 0\t~~ ~)JX(_ do{/M.)
Dollars($ \ )0
1
set forth on an attached Exhibit.
"''Q ) Any allocation of the purchase price between Land, Improvements. and Personal Properly shalf be
4. Terms of Payment shall be as indicated by "X" below (other unmarked terms of purchase do not apply).
0
Cash. The Buyer shall pay the full purchase price to the Seller upon execution and delivery of a warranty deed and performance by Seller of the
~losing
obligations specified in Section 17 below.
~ New Mortgage. The Buyer shall pay the full purchase price to ttie Seller upon execution and delivery of a warranty deed and performance qy
Seller of the closing obligations specified in Section 17 below. contingent upon the Buyer's ability to obtain a .( vt~{r,.fl:r?Cut·L ·
type j C year mortgage loan in the amount of $ . bearing interest ar a rate no greater
than % per annum. The Buyer shalf apply for the inortgage loan immediately and accept it promptly if tendered.
Jf Buyer does not deliver to Seller on or before {date), proof that Buyer has
accepted a mortgage loan commitment. Seller may thereafter at any time treat this contingency as·nat having been satisfied and terminate this
Agreement by written notice to .Buyer. unless Buyer has waived this contingency in writing, prior to the date indicated in this paragraph.
0 Contract 0 Purchase Money Mortgage. The Buyer shall pay the full purchase price to the Seller pursuant to the terms and conditions
stated '1n a West Michigan Regional Form Number 1 Land Contract or a Purchase Money Mortgage upon performance by Seller of the closing
obligations specified in Section 17 below. The Land Contract or Purchase Money Mortgage shall provide a down payment of
$ and payment of the balance $ in installments
of S _ _ _ _ _ _ _ _ _ _ _ _ or more. at. Buyer's option, including interest allhe rate of __________ % per annum computed
monthly. interest to start on date of closing, and first payment to become due ________ days after date of closing. The entire unpaid
balance w11! become due and payable months after closing.
Seller understands that consummation of the sale or transfer of the Premises shall not relieve the Seller of any liability that Seller may have under
the mortgage(s) to which the Premises are subject. unless othef'Nise agreed to by the lender or required by law or regulation.
Additional Provisions:
5 Survey. A D new 0 recertified ;z{exiSting 0 boundary survey with iron corner stakes and with all easements of record. improvements. and
encroachments (II any): and/or D ALTA survey showing all easements of record. improvements. and encroachments, if any. shall be prov1ded by
D Buyer D Seller as soon as possible after the later to occur of (i) the tille insurance commitment referenced in Section 6 below is delivered
to the party responsible for the survey: and (ii) Buyer's right to terminate under Section 7 below is waived or deemed to have been waived. If the
survey reveals a maller that materially and adversely affects the value of the Property or Buyer's intended use of !he Property. Buyer shall have the
right to terminate this Agreement by giving Seller written notice within ( _ _ ) calendar days after copies of both the survey
and Iitle commitment referenced in Section 6 below are delivered to Buyer. otherwise Buyer's right to terminate this Agreement pursuant to this
Section shall be deemed to have been waived. Other:
) •:"''~'"11>1 <'·""''""'r.o~l .\llo;uo<e Ill RIOALTORS. ;!OOS
Ro·,·o<•on D-"•' illo2005
~ D Buyer's ln.t<als
81,y nnd S0ll Agr~omnnl for Of/ice, Commercial, Industrial and Multi-Family Property Page 2 of 13
6. Ti_tle lnsuran.ce. At Seller's expense, Seller shall provide Buy~r with a sfa,ndard ALTA owne_r's policy of litre insurance in the amount of the purchase
pnce, effective as of the date of closing. A commitment to issue such policy insuring marketable tille (as defined in Section 10 below) vested in·
Buyer, including a lax status report, shall _be ordered within seven (7) calendar days after the Effective Date of this Agreement. and shalt be delivered
_as soon as feasible thereafter. If any matter disclosed by the title commitment adversely and materially affecls the'vatue of !he P..[.operty or Buy~·s
tn!ended use of the Property, Buyer shall have the right to terminate this Agreement by giving SeHer written notice within /jv].. L£)
calendar days after copies of both the title corrimltment and survey referenced in Section 5 above are delivered to Buyer. otherwise Buyer's right to
terminate this Agreement pursuant to this Section shall be deemed to have been waived. A matter disclosed on the !ille commitment that is in the
form of a lien that is liquidated in amount and that can b8 readily discharged (such as a mortgage) shall not be grounds for termination of this
Agreement by Buyer under this Section so tong as Seller discharges s·uch lien(s) at the "closing. Other: ·
7. Inspections. By signing this Agreement, Buyer is representing that the Buyer is aware that inspection services of buildings and building c9mponents
and systems are commercially available at a fee. Buyer has the right to inspect the buildings and building components and systems o'r have the
buildings and building components and systems inspected by experts selected by the Buyer: The Buyer has elected to arrange and pay for
i~ections including, but not limited to. the following:
)!:1 No Inspections D Plumbing 0 H~ating, Ventilating & Air Con~i!ioning D Electrical
D Structural. including roof D Termites and other wood destroying insects 0 Other (specrfy):
The Buyer shall have the right to terminate !hi~ Agreement if the inspection reports are no I acceptable to the_ Buyer by giving Seller written notice
within calendar days after the Effective Date of this Agreement. otherwise the rigtit_to-terrninate shall be deemed to have been waived.
Buyer agrees that Buyer is not relying on any representation or statement made by Seller or any real estate salesperson (whether made intentionally
or negligently) regarding an~ aspect of the Premises or this sale transaction, except as may be expressly set forth in this Agreement, a written
amendment to this Agreement, or a disclosure statement separately signed by the Seller. Accordingly. Buyer agrees to accept the Premises "as is"
and "with all faults" (whether obvious or concealed), except as otherwise expressly prov'ided in the qocuments specified in the preceding sentence.
Other: ·
8. Closing Acijul?tments. The following adjustments shall be made between the parties as Qf_the close. of business on the closing date. with the Buyer
receiving a r;redit or assuming responsil;li!ity, as the case may be, for amounts attributable to lime periods following the closing date:
a. Prepaid rent and Additional Rent {as d!3fined in the paragraph);
b. Interest on any existing indebtedness assumed by Buyer;
c. Charges for any transferable service ·contracts assigned to Buyer described in Exhibit D;
d.Utility deposits;
e. Security deposits;
f. All operating expenses including, but not limited to, CAM, taxes. insurance. plus Additional Rent shall be al!ocaled accuralely between the parties
pursuant to the leases.
If any tenant is late, delinquent or otherwise in default in the payment of rent on the closing date, Seller shall assign to Buyer the claim for and the
right to collect the rent; Buyer shall pay such past due rent to Seller promptly upon receipt, !Jut Buyer shall not be obligated to file suit to collect such
rent and shall reassign the Claim to Seller on demand. If any tenants are required to pay percentage rent. escalation charges for real estate taxes.
operating expenses, cost-of-living adjustments or other charges of a similar nature ('Additional Rent') and a'ny Additional Rent is collected by Buyer
after closing attributable in whole or in part to any period· prior to closing, Buyer shall promptly pay to Seller Seller's proportionale share of the
Additional Rent. Other:
9. Property Taxes. Seller shall pay delinquent property taxes. The current year's property taxes will be paid as follows (choose one):
0 No proration:
0 Buyer 0 Seller shall pay taxes billed Summer (year).
D Buyer 0 Seller shall pay taxes billed Winter (year).
D Calendar Year Proration (all taxes billed or to be billed in the year of closing). Calendar year tax fe~ies v:'ill be estima~ed. if necessary. using
taxable value on the day of closing, broken down to a per diem tax payment and prorated Ia day of closrng wtlh Seller payrng for January 1 to day
of closing.
SpeClal Assessments and deferred asseSsments. whether due in instal!ments or otherwise. which are due and payable on or before the Effective Date
of this Agreement shall be paid by Seller. All other special assessments, ~including deferred assessments. for improvements now installed. not yet
installed. or in the process of being mstalled. that are first due and payable after the Effective Date of this Agreement shall be paid.by Buyer. Other:
~0'"'"''"'''·'"
Property Address
•<:1 C~pyti~hl Cotnm•'""' A ti,,noe ol
Rev,.1on 0Aie 0112005
Buy <lnd Sell Aureement for Office, Commercial, lndustnal and Multi-Farnily Propert;: F'-~·:y 3 .:,i ~:
10 Conveyance. Upon performance by-Buyer of the closing obligations specified in Section 18 below, Seller shall convey the marketable title to !he
Premises to Buyer by warranty deed or agree Ia convey marketable title by land contract or assignment, as required by Seclion 4 above. 1nclud.ng 011.
gas. and other mineral rights. subject only to existing zoning ordinances, and to building and use restrictions. easements. and reserva!ions of record.
if any. As used herein. "marketable title" means marketable title within the meaning of the Michigan 40-Year Marketable Title Act (M1ch Comp L.av1s
§§ 565.101 et seq.).
The following paragraph applies only if the Premises include unplatted land:
Seller agrees to grant Buyer at closing the right to make (insert number) /\~u t) f) ll.vt.> division(s) under Section 108(2}. rJl. and {4J of
!he Michigan Land Division Act (If no number is inserted, the right to make divisions under the sectior1s referenced above stays wilh. any rem<Jlllder
of the parent parcel retained by Seller. If a number is Inserted, Seller retains aU available divisions in excess of the number stated: however, Seller
ilndtor REAL TOR® do not warrant that the number of divisions stated is actually available ) lf this sale will create a new division. Seller's obligations
1mder this Agreemenl are contingent on Seller's receipt of municipal approval. on or before 1.dale)
1Jf Ihe proposed division to create the Premises. Other:
I 1. Warranties of Buyer. Except as otherwise provided or acknowledged in this Agreement. BUyer represents and warrants to Seller as follows
a. The performance of the obligations of Buyer under this Agreement will not violate any contract indenture. statute. ordinance. judicial 0r
'linistrative order or judginent applicable to Buyer.
b Tl1ere is no litigatiOn or proceeding pending, or to the Buyer's knowledge threatened. against or involving the Buyer. and the Buyer does n'ot know
or have reason to know of any ground for any such litigation or proceeding, which could have an adverse impact on Seller or Seller's 1n!erests
under this Agreement
c In entering into this Agreement. Buyer has not relied upon any written or verbal representations made by Seller or any representntive of Seller.
including any real estate salesperson, regarding the Premises or any aspect of this transaction. which are not expressly set forth in th1s Agreen;ent
Other·
12_'. Warranties of Seller. Except as otherwise provided or acknowledged in this Agreement. Seller represents and warrants to. and agrees with Buyer
as follows:
a Seller's interest in the Premises shall be transferred to Buyer on the closing date, free from liens, encumbrances and claims of others.
b. The performance of the obligations of Seller under this Agreement will not violate any contract. indenture. statute. ordinance. jucJrcial o1
administrative order or judgment applicable to Seller or the Premises.
c. There is no Illig alion or proceeding pending or to the Seller's knowledge threatened, against or involving the Seller or the Premises. and !he Seller
does not know or have reason to know of any ground for any such litigation or proceeding which could have an adverse impact on Buyer or Buyer's
title to and use of the Premises, before or after closing.
d_Seller shall contin'ue to operate the Premises in the ordinary course of business and maintain the Premises in a state of good condition and repair
during the iriterim between the signing of this Agreement and the closing date.
e If a statemeht(s) of income and expense with respect to the operation of the Premises is(are) described in Exhibit B. such statemenl(sJ IS( are I
accurate for the period(s) designated in the slatement(s).
The informalion.concerning written leases and any tenancies not arising out of written leases described in Exhibil Cis accurate as of the Eff8ctrve
Date of this Agreement and there are no teases or tenancies w!lh respect to the Premises other than those described in Exhibit C (the "Le'ases")
Except as otherwiSe described in Exhibit C:
lt) All of the leases are in full force and effect. no party thereto is in material default thereunder, and ·none of them have been modified. amended
or extended;
!2) No renewal or extension options have been granted to tenants;
(3) No tenant has an option to purchase the Premises:
(4) The rents set forth are being collected on a current basis and there are no arrearages in excess of one month:
15) There are no security deposits, and
{6) No real estate brokerage cOmmission will become payable under any existing arrangement upon exercise of any options or other ri!Jhl to
extend or renew the term of any lease or purchase of the Premises.
g.!f a schedule of service, maintenance, supply and management contracts ("Service Contracts") is described in Exhibit D. the Exhibit lists 811 the
Serv1ce Contracts currently in effect with respect to the Premises.
h_ The Premises will be in compliance with any applicable smoke detector ordinances as of the closing date.
1 With respect to underlying land contracts or mortgages. the sale will not accelerate indebtedness. increase interest rates. or impose penalties and
sanctions.
1• Seller is Without personal knowledge as to the presence on the Premises of any toxic or hazardous substances or of any underground stmage
tanks.
k Other
1J SidEJwa!k Inspection. If Premises is in a municipality that requires a sidewalk inspection. Seller shall order the inspection and pay for any reparrs
c!eemed necessary by the municipality. so thai the Premises will be in compliance with any applicable Sidewalk ordinance as of the closmg date
14 Damage to Premises. If between the Effective Date of this Agreement and the closing dale, all or any part of the Premises is damaged by hre or
ll<lturnl elements or other causes beyond the Seller's control which cannot be repaired prior to the closing date. or any part of the Prem1ses 15 tnken
purs 11 ,111 t to any power of eminenl domain. Seller shalt immediately notify Buyer of such occurrence, and either Seiter or Buyer may _term1n~te lh1s
,\(Jreement by wrilten notice to the other within fifteen (15) days after the date of the damage or taking. If neither elects to termmate th1s Agreemenl
there shall be no reduction of the purchase price and at closing Seller shall assign to Buyer whatever rights Seller may have with respect lo any
~ns1rrrmce proceeds or eminent domain award.
~D '""'''""""
'{Jq
15. Closing. The closing shall be held on or before --'-Q-"c'c'·"r~.,5'c.c'2~o"=o:"(.":c=o--c-c-c-.=c--c-::-c-c:-.-·~=--Cc=-c---c-~-~-:c
and as promptly as practical after all necessary documents have'been prepared. An additional period of thirty (30) days shall be allowed for c!os1ng
lo accommodate delays in lil!e work or the correction of lille defects and/or survey problems which can be readily correctable, delays in oblaining any
required inspections. surveys or repairs, delays in completing Environmental Site Assessments. Baseline Environmental Assessinent or Due Care
Plan/Secti9n 7a Compliance Analysis (if such assessments or plans were ordered in a limety manner), or if the tern1s of purchase require participation of
a fender and the tender has issued a commitment co~sislenl wilh the requirement but is unable to participate in a closing on or before the required d;{te
16. Possession. Seller shall tender to Buyer possession of the Premises upon completion of:lhe dosing, s·ubiect to all existing leases and rigt1ts of
tenants in possession. Upon Seller's acceptance, or Buyer's acceptance of a counter offer, ·Buyer shaH have the· right to enter upon the Premises
during reasonable business hours for purposes of inspections and tests; provided, however, that such inspections and testing shalt not unre<~sonably
interfere with t~e rights of tenants in possession. and shall not cause physical damage to the Premises. Other: ·
17. Seller'.s Closing Obligations. AI closing, Seller shall deliver the following to Buyer:
a, The warranty deed, land contract or assignment of land contract required by Section 4 of this Agreement.
b.A bill of sale for any Personal Property (described in Exhibit "E")
c. A written assignment by Seller of Sel!er's interest in all leases and a transfer to Buyer of all security deposits. accomPanies by the original or a true
copy of each tease.
d.An assignment" of all Seller's rights under anY Service Contracts described in Exhibit 0 which are assignable by their terms and which Buyer wishes ·
to assume, together with an original or true copy of each Service Contract assigned.
e.A notice to any tenants advising the tenants of the sale and directing that future payments be IT".ade to Buy~r.
f. Any other documents required by this Agreement to be delivered by Seller. ·
g.An accounllng of operating expenses Including, but not limited to, CAM, taxes, insurance, plus· Additional Rent. collected in a·dvance or arrears,
spent or not yet spent by Seller. ~hawing an accurate allocatiori between the parties purSuant tP the leases. , · ·
18. Buyer's Closing Obligations. At closing, Buyer shall deliver to Seller the following;
a. The cash portion of the purchase price specified in Section 4 above shall be paid by cashi1~r's check cir ofher immediately available funds. as
adjusted by the apportionments and assignm¢nls in accordance with this Agreement. ·
b.A written assumption by Buyer of the obligations of Seller under the leases arising after closing, including an acknowledgment of the receipt of all
security deposits.
c. Any other documents required by this Agreei-nent to be delivered by Buyer.
19. 1031 Tax Deferred Exchange. Upon either party's request. the other party shall cooperate and reasonably assist the requesting party in structuring
the purchase and sale contemplated by· this Agreement as part of a tax._"deferred, like-kind exchange under Seclion 1031 or the Internal Revenue
Code of 1986, as ~mended; provided, however, that in connection therewith,_ the nonrequeSting party shalt noi be required to (a) incur any additional
costs or expenses; (b) lake legal title to additional real property (i.e., the requesting party's "replacement property" or "relinqUished property"); or (c)
agree to delay the closing·.
20. Notices. Unless otherwise slated in this Agreement, a notice required or permitted by this A·jreement shalt be sufficient if in writing and either
delivered P!3rsonally or by certified mail or other form of documentable delivery addressed to the parties at their "addresses specified in the proximitY
of their signatures below, and any notices given by mail shall b~ deemed to have been 'given as of the date of the postmark.
21. Additional Acts. Buyer and Seller agree to execute and deliver such additional documents and to perform such additional acts as may become
necessary t? effectuate the transfers contemplated by this Agree.ment. ·
22. Entire Agreement. This Agreement contains the entire agreement of the parties with respect to the safe of the Premises. All conterpporaneous or
prior negotiations have been merged into this Agreement. . This Agreement may be modified or amended only by writren instrument signed by lhe
parties "lo this Agreement. This Agreement shall be governed by a[ld construed in accordance with the laws of the Slate of Michigan.
For purposes of this Agreement, the phrase "Effective Dale of this Agreement" shall be the date upon which this Agreement is fully executed pursuant
to Section 32 or 33 below, whichever may apply ,
23. Earnest Money. Buyer gives . lllM. C·Li c)~ICA l"f?C41-1 . .. REALTOR, /"1 ,;~/.,.
the written acceptance of this offer and agrees thatthis1offer, w~n accepted by Seller. will constitute a binding agreement betw
leE!n oays.to obtain
Buyer and Seller.
Suyer shall deposit $ wilh REALTOR 0 with this ..,)ifer;
D within after acceptance of this offer: OR ..J2f .upon
acceptance of this offer, evidencing Buyer's good faith, to be held by the REAL TOR and to apply on !he purchase price or the down payment portion
thereof where applicable. If this offer is not accepted or the tilfe is not marketable or if Ihe purchase is contingent upon condilions specified wh1ch
cannot be mel. this deposit Shall be promptly refunded. If the Buyer defaults, all deposits made may be'forfei\ed as liquidated damages at Seller's
election or, alternatively, Seller may retain the deposits as part payme:nt of the purchase price and pursue Seller's legal or equitable remedies againsl
Buyer. If the sale is not closed according to its terms, the selling REALTOR may notify Buyer and Sefler of REALTOR'S intended disposition o~ the
earnest money deposit, and all parties shall be deemed to have agreed to the disposition of the earnest money deposit unless REALTOR 1s notified
of a court action pending concerning this sal13 or disposition of earnest money within sixty (60) .days after notice to the parties.
24. Disclosure of Price and Terms. The purchase price and the terms of this safe may be disclosed by the-Commercial Alliance of REAL TORS® in the
ordinary conduct or its business. Deletion of this paragraph sha!! not be considered a counter offer which would r~quire a counter acceptance
25. Credit Reports. Buyer consents that. if not otherwise prohibited. !he REAL TOR may give Seller information about the Buyer conta1ned 1n a credit
report which may be furnished lo !he REAL TOR by a reporling agency.
26. Advice of Counsel. Buyer acknowledges that the REALTOR has recommended that Buyer retain an attorney to pass upon the marketability of title.
to ascertain that the terms of the sale are adhered to before the transaction is closed and to advise with respect to the Notice referenced in Paragraph
27 hereof.
Property Address Zc/::,0 .L2! 7
oO Copynohl Comm•lc•al AJii~nco ol REAlTORS. ;!OOS
R~~O>ion D•te 011;!005
Buy ilnrl Sell Agreement for Qrfice, Commercial, Industrial and Multi-Family Property Page 5 of 6
27. Environmental.
a Notice to sellers, buyers, landlords and tenants (environmental risks).
Whenever property is acquired or occupied, the buyer incurs some degree of risk with re!Jard to potential environmental contamination and/or
proJected nalural resources on the property. Various federal. state and local laws may impose liability upon the buyer for the remediation of the
contamination even though the buyer did not cause it, or may r~strid the buyer's ability to fuHy develop or utilize the property. Such risk can be
minimized through the performance of environmental due diligence.
No real est21te broker/salespersons in this lransaction possess the expertise necessary lc- assess the nature or extent of these environmental
risks or to determine the presence of environmental contamination or protected nalural resources The real estate broker/salesrersons
involved in this transaction do not make independent investigations as to environmental contaminntion or protected natural resources with
~espect to any property. and they make no representations regarding the presence ::~r absence. now or in the p<~sL of environmental
contamination. II is therefore prudent for each party to this transaction to seek fe_gaf and technical counsel from professionals experienced u1
environmental mailers to provide an evaluation of the environmental risks associated wi!h the transaclion
b. Environmental reports and assessments.
,1;("" Seller
/'
shall provide copies of any existing Environmental Assessments or reports involving the Premises within
days arter the Effective Dale of this Agreement. ·
6 calendar
(2) At Buyer's option. Buyer shall be given access to the Pre~1ises during normal business hours to perform 0 an ASTM E1528 Transaction
Screen or 0 an ASTM E 1527 Pha~e I Site Assessment (individuafly or collectively lh~ '"Environmental Assessment"'). Buyer shall pay
,_ _ _ _ _ _ _ %and Seller shall pay _ _ _ _ _ _ _ _ % of the cost Of the Environmental Assess men!. The Environmental
Assessme·nt shall be ordered by the P Buyer 0 Seller. The Environmental Assessment shall be completed within ____
calendar days after the Effective Date of this Agreement and shall be certified to
(3j If an Environmental Assessment of the Premises reveals recognized environmental conditions as defined by ASTM, then Buyer shall have
the right to:
{a) terminate this Agreement within calendar days after receipt of the Environmental Assessment report; or
(b) provide Seller with the Environmental Addendum to Buy and Sell Agreement (Seller"s refusal to execute the Environmental
Addendum within days shall, at Buyer's option, terminate this Agreement); or
(c) proceed with the purchase.
(4) For residential housing units. Seller will attach either the Seller's acknowledgment Form Concerning Lead-Based P<~int or a Lead-Based
Paint Seller's Disclosure form. depending on whether the improvements were built prior to 1978 or 1978 or later.
c. Nondisclosure.
If Buyer exercises its right to terminate this Agreement pursuant to subparagraph b. above. Buyer shall not disclose ils Environmental
Assessment report(s) to any third-party. AI Seller's request. Buyer shall provide copies of any Environmental Assessment report(s) to Seller
d. Other:
28. Brokerage Fee. Seller andtor Buyer agrees to pay the broker(s) involved in this transaction a brokerage fee as specified in any agenr.y agreement or
other written agreement between them. In the event no such agreement exists. D Buyer 0 Seller agrees to pay a brokerage fee of
This brokerage fee shall be paid in full promptly after it is earned. but not
later than any 8pplicab!e closing. Unless otherwise previously agreed, Buyer and/or Seller agrees that the. brokerag'e fee may be shared by the
recipient wit11 any cooperating broker who participates in the sale, in such amount as the recipient decides. wilhout further disclosure to or consent
from--BUyer and/or Seller Other: · ·
29. Other Provisions. •
•S "1"J T 70 6t14MCtNf} /}(( 1 y1f»-./h. Tb 6"·li'Tl
Buy and Sell Agreement for Office, Commercial, Industrial and Multi-Family Property Page 6 of6
30. Index of Exhibits. Other Exhibits.
Not Atlached SeUer to Exhibit SUbjeCt AUached Setter to Exhrbil Subject
jAppica"o. Furnish Furnish
/ A Disclosure Regarding Real Estate Agency
Relationships
F ddendurn
Income and expense with respect to the
/ B
looeralion of the Premises _,,
-~ c fN~itten leases and any tenancies not arising
out of written leases
/ D jService Contracts
--
/ E List of Personal Property
3 1. By sigil:~otr;clmo~having read and received a copy of this Agreement. _ • t(~ f)?. f -
. Enlily:i:~f>ft~(
/
·1'---.. t _v
==·
V\Mness: -
Buyer'sAddr~~ /\(,(.,\{ /?.w.e 6 RJ By ·
Its: ()<.<JAJi(2
Buyer(s] Social Security Number(s) or Federal 10 Number: Bus. Phone (Jfa 7'1 '{ 11~ _Fax
E-Mail:------------·-----------
SELLER'S ACCEPTANCE - - - - - - - - - - ;lime\
32. The above offer is hereby accepted: Ct Co/'i :
---- ' . -~-"ho~~~~---
y~-:ro Y:aJ t:H,oa2-
-----------------------
By signing below, Seller ac/<nowledges having read and received a copy of this Agreement. ·1r lhrs Agreement rs signed by Seller without e~ny
modification, this becomes the Effecttve Dale of this Agreernenl. () t9
Setter gives REAL TOR above named until 5 fi'-1 (Ume) ___ __n¥_1;l._.::_~'=-------- (n,teJ. to
obtain B~yer's
.ritte1 _. ceplance of counter offer. if any
Witness: . _ c-C""Z-- _: __ _ EnUiy:' C~,
, il_f_U(~
Seller's Address. - - - - - - - - - - - By ."'__ ~/j\,-"::,-1.'-,J;Jl-.A
Jo!e Ph: lSe s1~n as ' ,our natN ·o appear on lr>e llhll raper~ I
Printed nome of S•gnalnry . .L ' _ _ Ag:LL;-_{_l:'::o "---- ___ _
Its: ____ --~-----~---·· ___ ---~------ -_--------------·-···
Seller(s) Social Security Number(s} or Federal lD Number Bus. Phone 2'>.l.jJb-'j_{,,__7() ~ __Fa:c ___ - - - - - - - - - ·
E-Mail:
BUYER'S RECEIPT OF ACCEPTANCE S'l-'i- nM'&ct)\).(1 -It I Date - - __ ti-ll::e b -- ----· __________ (l•rne)
33.
.. _i!'m~ 1
SELLER'S RECEIPT OF ACCEPTANCE
34_ Seller acknowledges recerpl cf n copy of !be Buyer"s ar:cept;mce of the c;ounler-offer (if Seller rnade a counter-offer)
Witness·-------------------- S e l l e r . - - - - - - - - - - - - - ______ _
~ D '"'"······"'
WS9T MICHIGAN REGIONAl.
ADDENDUM TO PURCHASE AGREEMENT
~(
MLSOII ' Deto: s -lt- ,1l~Q _ _ ___,A.M.IP.M.
U•ttno Office e, :t ft:. (ol4ft1,M ~.tr_L ~~LTO~<Il Phon• F••
Sailing Office Q't d (c%11.tf lnCtk/... . REALTOR~ Phone F'ax
1. A<ld.,dum to Purchase Agreemont dated '9J-/{, -o 1/2 covering property •t
?a3Q - W['Zr 5'1.4 '4 @ <l't
2. Thla Addendl.lf'rlto ~· M Integral part of tho Purth..o Agreement, whiell is omenGed.., fcKows: - - - - - - - -
z.,
3. The Seller 1 Buyer (oir<;te one) gtven lhe obo~~e-nam8d !'!rEALTOR® oaye. to obtain lha wrirton ucceplonce of
this Addendum to the P1.1rchaao Agrttettletd. It eecepted, this Addm'ldum will oonantuta a bJndino change to the PurrllBS&
Agr""m""t. If the Addendum Is nol •ocaptad wKhin the lime period specified. thi• Adde11dum $hull be VOid and the exl$ffrtg
term& ol the Purch&ee AQI'Gament onan continllG to apply.
4. RECEIPT IS ACKNOWU:DOED BY BUYER or a copy ott:bi-~ijli1!(116
o~· "]-II ·o <e
Witna••--------------
5. RECEIPT IS ACKNOWI.EOQED BY SELLER of a copy of thfo Agreement. ;7
Dale 5 ~ {q -0 0 X ---:br:'~~===~':::":-:d.~:'f..J!':S;"-"'--:::C.:::;;:;:;i"'" Seller
~mau tt2(4
011/nt ~11 Re.-\l.T01UD 8(Wal, 1fi9B
Fotm f23 M.~. Oltt 1198
lB.
DfSCRIPTION: SHEET_!!..oF_I_~
COMMENCING AT THE SOUTHEAST CORNER OF THE NORTHWEST FRACTIONAL !/4 OF SECTION 31, T.10N., R.16W.,
CITY OF MUSKEGON, MUSKEGON COUNTY. MICHIGAN THENCE NOO'OO'OO"E 1295.50 FEET ALONG THE EAST LINE OF
SAID NORTHWEST FRACTIONAL 1/4: THENCE S89'·46'54"W 5Z2.43 rEET ALONG THE SOUTH RIGHT OF WAY LINE OF
YOUNG AVENUE AND ITS EXTENSION IN YOUNG AND WILLIAMS ADOiT:ON AS RECORDED IN LIBER J OF PLATS, PAGE
39. MUSKEGON COUNTY RECORDS FOR POINT OF BEGINNING: THENCE SOO'OO'OO"E .320.00 FEET ALONG THE WEST
RIGHT OF WAY LINE OF TEMPLE STREET: THENCE S89'46'54"W 349.77 FEET; THENCE N33'14'47"W 381.68 FEET
ALONG THE NORTHEASTERLY RIGHT OF WAY LINE OF THE CSX RAILROAD; THENCE N89' 46'54"E 559.02 FEET ALONG
SAID SOUTH RIGHT OF WAY LINE OF YOUNG AVENUE TO rOINT OF BEGINNING.
PROPOSED EASEMENT OVER RUDDIMAN CREEK DRAIN:
THAT PART OF THE FOLLOWING DESCRIBED EASEMENT LY1NG OVER AND ACROSS THE ABOVE PARCEL:
A 50 FOOT WIDE STRIP OF LAND, CENTERLINE DESCRIBED AS: COMMENCING AT THE WEST 1/4 CORNER OF
SECTION 31, T.ION., R.16W., CITY OF MUSKEGON, MUSKEGON COUNTY, MICHIGAN THENCE S89'49'59"E 1031.12
FEET ALONG THE SOUTH LINE OF THE NORTHWEST FRACliONAL i/4 OF SAID SECTION 31 FOR POINT OF
BEGINNING OF SAIO CENTERLINE; THENCE N45'25'16"E 354.DD FEET; THENCE N02'01l'I6"E 495.5D FEET; THENCE
N4J'12'46"E 749.75 FEET FOR POINT OF ENDING OF SAID CENTERLINE ON THE SOUTH RIGHT OF WAY LINE OF
YOUNG AVENUE IN YOUNG & WILLIAMS ADDITION, CITY OF MUSKEGON, MUSKEGON COUNTY, MICHIGAN AS
RECORDED IN LIBER J OF PLATS, PAGE 39, MUSKEGON COUNTY REGISTER OF DEEDS.
THE SIDELINES OF SAID 50 FOOT WIDE STRIP Of LAND EXTEND OR SHORTEN TO ALI.OW NO GAPS. OR OVERLAPS,
NOTE: BEARINGS BASED ON THE EAST LINE OF THE NORTHWEST FRACTIONAL 1/4 OF SECTION 31, T.1DN.,
R.16W. PER PLAT OF YOUNG & WILLIAMS ADDITION AS RECORDED IN LIBER 3 OF PLATS, PAGE 39, MUSKEGON
COUNTY REGISTER OF DEEDS.
' NORTH 1/4 CORNER LAKETON AVE.
N SEC. 31, T.1DN., R.16W.
YOUNG AVE.
1\
I
/L_j L_JL_j
559.02'
0 ISO' Joo· 600'
SCALE: 1" = JOO'
LEGEND
P=PLAITED DIMEfjSION
R=RECOROED DIMENSION
M=MEASURED DIMENSION
W=CONC. MONUMENT
•=SET 1/2" RE-ROD
O=FOUND IRON STAKE
-X- =FENCE LINE
SURVEY FOR: CITY OF MUSKEGON RE: SEC. 31, T.IDN., R.I6W. PARCEL '8"
933 TERRACE STREET
MUSKEGON, MICHIGAN 49443-0536
I HEREBY DECLARE THAT THE LAND HEREIN DESCRIBED WAS SURVEYED UNDER MY DIRECT SUPERVISION TO
THE BEST OF OUR ABILITY AND KNOWLEDGE. THE ERROR OF CLOSURE IS NO GREATER THAN 1 IN 5000.
ALL THE REotHRFMrNTC:::: n~ p A tl'"l tn7t'l t/AIIr ,..,,.. ............................. ~-··
PURCHASE AGREEMENT ADDENDUM
The undersigned parties to the Purchase Agreement dated August 16, 2006 on the property known as Vacant Land Young Avenue,
Muskegon, MI 49442, legally described as:
City Muskegon, County of Muskegon, State of Michigan:
Commencing at the Southeast corner of the Northwest fractional 1/4 of Section 31, Town 10 North, Range 16 West; thence
North 00 degrees 00 minutes 00 seconds East 1295.50 feet along the East line of said Northwest fractional1/4; thence
South 89 degrees 46 minutes 54 seconds West 672.43 feet along the South Right of Way line of Young Avenue and its
extension in Young and Williams Addition as recorded in Liber 3 of Plats, Page 39 for Point of Beginning; thence South 00
degrees 00 minutes 00 seconds East 320.00 feet along the West right of way line of Temple Street; thence South 89
degrees 46 minutes 54 seconds West 349.77 feet; thence North 33 degrees 14 minutes 47 seconds West 381.68 feet
along the Northeasterly right of way line of the CSX Railroad; thence North 89 degrees 46 minutes 54 seconds East 559.02
feet along said South right of way line of Young Avenue to Point of Beginning.
also known as Property Address: Vacant Land Young Avenue, Muskegon, MI 49442
PIN: 61-24-131-100-0006-10
hereby mutually agree to amend said contract as follows:
CLOSING DATE TO BE DECEMBER 13, 2006; LEGAL DESCRIPTION IS AS DESCRIBED ABOVE; BUYER ACCEPTS
EXISTING SURVEY; ALL TERMS OF PURCHASE AGREEMENT HAVE BEEN MET.
All other conditions of the Purchase Agreement to remain the same.
Dated: December 13, 2006
Seller(s) Buyer(s)
City of Muskegon, DDB
a Municipal Corporation
by: Daniel L. Posma, member
it~-
by: Brandon L. Posma, member
~)Qrn~
by: Danielle L. Posma, member
100640719
AFFIDAVIT BY SELLER or BORROWER
State of Michigan }
} s.s.
County of Muskegon }
The undersigned is/are either the seller(s) or the borrower(s). The undersigned deposes, states and waiTants as follows:
I. That Seller(s) or BoiTower(s) is/are the owner(s) of the real estate which is described as follows: See commitment
number 100640719.
2. That, in the last six (6) months, the Seller(s) or BoiTower(s) has not executed a mortgage, home equity loan or a line
of credit that encumbers the real estate listed in paragraph 1, except for the following (write "none" if none
executed): - L l l ' - " ' ' - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - ·
3. That, in the last six (6) months, the Seller(s) or BoiTower(s) has not purchased or installed windows for the residence
located on the real estate listed in paragraph I, except for the following (write "none" if none installed):
N!>Z
4. That, in the last six (6) months, the Seller(s) or BmTower(s) has not contracted for improvements or new construction
to the real estate or residence listed in paragraph 1, except for the following (write "none" if no contracts executed);
~
5. That, in the last six (6) months, the Seller(s) or BoiTower(s) has not received notice of and is not aware of any special
assessments on the real estate, including but not limited to assessments for sidewalks, streets, sewer and water lines,
except for the following (write "none" if no assessments): - - - - - - - - - - - - - - - - -
1~
The Seller(s) or Borrower(s) agree(s) to hold First American Title Insurance Company and its policy-issuing agent
harmless from any loss or claim arising because of title insurance protection provided a purchaser or lender in
reliance in whole or in part on the completeness and correctness of the representations or attestations made
herein.
City of Muskegon,
a Municipal Corporation
Subscribed and sworn before me this December 13, 2006.
Acting in the County of Muskegon
l\.l,THY A. H/1.FHIS, f...;UiAFi\' FUBUC ( / / :(, Notary Public
1v1U:~!_/r::r:~~, ·;;:,:PJTY. sr.-rrt U~ :VilGHIBAN 1
::-:---:::-----:----c--:::---:----6{,.-e. county, Michigan
!vlY c~.~,;j~. :,_':_:ipN e:uu·iE;) ·i-i7<:·oo7 My Commission Expires:
Harbor Title Agency, Inc.
955-W. Broadway Avenue
~uskegon,11l 49441
Seller Statement
12/13/2006
Escrow No: 100640719
Seller: City of Muskegon, a Municipal Corporation
933 Terrace
~uskegon, ~I 49442
Purchaser: DDBP,LLC
13664 Rockys Road
Holland, ~I 49424.
Property Address: 31/10/16 NW
Vacant Land Young Avenue
~uskegon, ~I 49442
Debits Credits
Contract Sales Price $135,000.00
Commission Paid at Settlement to C&A Commercial $10,800.00
Settlement or closing fee to Harbor Title Agency, Inc. $125.00
Title insurance to Harbor Title Agency, Inc. $771.50
Sub-totals $1!,696.50 $135,000.00
Balance Due To Seller $123,303.50
I/We hereby aclmowledge receipt of this statement.
City of Muskegon,
a Municipal Co:rporatiou
THE UNDERSIGNED, by the execution hereof, hereby (i) acknowledge that they have read the above and foregoing Closing Statement, (ii) ack110wledge that the same
is true and correct, and (iii) authorize and direat the Closing Agent to receive all amounts and disburse all amounts pursuant to the foregoing Closing Statement.
It is mutually understood and agreed the taxes are estimated and in case of adjustment same will be made between the parties hereto. 'The Closing Agent is relieved of
any responsibility with the adjustment of said taxes.
CLOSING AGREEMENT
Property Address: Vacant Land Young Avenue, Muskegon, MI 49442
BILL OF SALE
KNOW ALL MEN BY THESE PRESENTS, that, I/we, as Seller(s), for valuable consideration, receipt of which is acknowledged,
have bargained and sold and do grant and convey to the Buyer(s), in an "AS IS" condition with no warranty, either expressed or
implied, the following goods and chattels: All items listed in the Purchase Agreement together with the fo11owing: NOT
APPLICABLE - VACANT LAND
ACCEPTING PROPERTY
Buyer(s) 1mderstand and acknowledge, that he/she (they) is/are buying the property .in an "AS IS" condition and that neither the
Seller(s) nor Realtors make any warranties as to the stmcture(s) located upon the land purchased or the condition thereof. We agree to
hold harmless the listing and/or selling broker, andJor their agents, the lender, and Harbor Title fi:om any liability concerning this
matter,
BUY AND SELL RESOLUTION
It is agreed, between the Buyer(s) and Seller(s) of this property, that all contingencies and addenda to the offer to purchase thereto,
have been met or are hereby resolved or removed to the satisfaction of the parties concerned. We agree to hold hannless the listing
and/or selling broker, and/or their agents, the lender, and Harbor Title from any liability concerning this matter. Buyer will be
responsible for all the taxes billed after the date of closing.
SELLERS AFFIDAVIT
The undersigned Seller(s) represent and warrant to the Buyer(s), and Harbor Title that Iiwe have no knowledge of any proceedings
instituted or taken by anyone which will result in a lien or special assessment upon the premises. That Iiwe have no lmowledge of any
delinquent taxes, special assessments, water bills, utility bills, furnished or fmanced insulation, or Homeowners Association fees
covering subject property, except as follows:
Seller(s) further agree that in the event it is determined there are unpaid fees for any of the above specified items for amounts due and
payable prior to and including the date of closing or which become due after the date of closing, and which are the responsibility ,and
obligation of the Seller(s), that the Seller(s) shall pay any and all amounts as so charged as their· obligation and responsibility during
the time they had possession of said property, and shall provide proof of payment of same to listing and selling broker, Harbor Title
and Buyer(s) of said property.
Seller(s) have not undertaken, \vithln the past three (3) months, to have any work performed or materials furnished to the premises,
which could give riSe to any claim of a mechanic's lien against the premises.
Seller(s) further agree to pay any final water/sewer bills charged as their obligation and responsibility during the time they
had possession of the property and shall hold harmless the lender, the Selling/Listing Realtors and Harbor Title from any
liability concerning this matter.
The foregoing closing agreements are hereby accepted and approved.
Date: December 13, 2006
Seller(s) Buyer(s)
DJe
City of Muskegon,
a Municipal Corporation
Oy: Daniel L. Posma, member
~~'--'-
by: Brandon L. Posma, member
~G~
by: Danielle L. Posma, member
City Commission Meeting
Tuesday October 10,2006
TO: Honorable Mayor and City Commissioners
FROM: Anthony L. Kleibecker, Director of Public Safety
DATE: October 3, 2006
SUBJECT: Agreement to Trade Used Shotguns for Rifle Lighting Systems
Summary of Request;
Police Department staff is requesting that the Commission approve an agreement
between the City and Gary's Guns, 4021 East Apple, Muskegon, Michigan. This
agreement will allow the department to obtain 20 new Streamlight Tactical LED Lights
and mounts for the AR-15 patrol rifles which are now in service. In return, Gary's would
receive 35 used Remington 870 Shotguns.
The department has also received an offer from Michigan Police Equipment, 6521
Lansing Road, Charlotte, Michigan.
The offer equates to $69.00 per shotgun as proposed by Gary's and $80.00 per shotgun as
proposed by Michigan Police Equipment. As there is no actual money exchange
occurring, staff would like to accept the bid from the Muskegon-area business.
Financial Impact:
No expenditure of funds to purchase the lighting systems. No staff time needed to market
the used shotguns.
Budget Action Required:
None
Staff Recommendation:
Approval of the agreement.
Aug 07 06 04:3!p F' • I
6521 l.ilnsing Road, Charlotte, Michigan 48813
Phone (517) 322-0443 Michigan Police
Fax (517) 322-0491 Equipment Co.
Fax (V\v.sK~66.U P.O.
To: '54"J e . t="L yNN From: Bill Parks
Fax: 23I "J l. -z.. .s14D Pages: J
Date: 8. B·~t> t,
Re: £cv 1 (lT· CC:
0 Urgent }!) For Review 0 Please Comment D Please Reply 0 Please Recycle
• Comments:
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GARY'S GUNS
4021 APPLE AVE.
MUSKEGON MICHIGAN 49442
PHONE; (231) 788-5159
E-MAIL garysguns2000@yahoo.com
WEB PAGE: garysgunsinc.com
MUSKEGON P.D.
MUSKEGON MICHIGAN
GARYS GUNS PROPOSES AN EXCHANGE OF 20 NEW STREAM LIGHT TACTICAL LED LIGHTS
AND 20 NEWTRI-RAIL MOUNTS FOR YOUR AR-15 WEAPONS, AT A VALUE OF$ 120.00 PER SET.
TO EQUAL $ 2,400.00. .("''I
FOR EXCHANGE OF 35 REMINGTON 870 PUMP SHOTGUNS
AN APPROXIMATE VALUE OF$ 75.00 EACH
GUNS TO BE TRANSFERRED FROM DEPARTMENT LETTERHEAD TO FFL DEALER
GARY'S GUNS, LOCATED AT 4021 APPLE AVE. MUSKEGON MICHIGAN
GARY FOSTER
RECEIVED
AUG 1 4 2006
MUSKEGON POLICE
CHIEF of POucfEPT.
BUY SELL TRADE
YOUR COMPLETE SHOOTING SPORTS SUPPLIER
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: October 5, 2006
RE: Lease Agreement - Central Dispatch
SUMMARY OF REQUEST:
To approve a lease agreement with Muskegon Central Dispatch for space in the new Central
Fire Station.
FINANCIAL IMPACT:
The agreement requires Central Dispatch to pay their share of the debt service and operations
costs of the fire station.
BUDGET ACTION REQUIRED:
None.
STAFF RECOMMENDATION:
To approve the attached lease agreement.
COMMITTEE RECOMMENDATION:
None.
pb\0\AGENDA- LEASE AGREEMENT. CPO 100506
LEASE
This lease is effective on October /cJ , 2006, between the City of Muskegon, a
Michigan municipal corporation, whose address is 993 Terrace Street, Muskegon, Michigan
49440 ("Landlord"), and Muskegon Central Dispatch, located at 860 Terrace Street,
Muskegon, Michigan, 49440 ("Tenant11).
In consideration of the mutual promises of the parties set forth in this lease and
other valuable consideration, the receipt and adequacy of which is acknowledged, the
parties agree as follows:
1. Lease of Premises. Landlord leases to Tenant, and Tenant rents from Landlord,
approximately Two Thousand Three Hundred Fifty Four (2354) square feet of office space, plus
shared space, (''Premises") in the fire station being constructed by Landlord located at Western
Avenue in the City of Muskegon, Michigan ("Property''), together with all improvements located
thereon, subject to all the terms and conditions of this lease. The Premises is specifically
depicted on the site plan attached as Exhibit A.
a. Shared Facilities. Landlord and Tenant shall have shared use of those
facilities identified on Exhibit A, which shall include the break room, lobby/office
administration, bathroom, and conference rooms.
b. Parking. Landlord shall designate four parking spaces at the Property for
exclusive use by Tenant.
2. Term. The initial term of this lease shall be for 25 years commencing as of July
1, 2007 ("Commencement Date"), unless sooner terminated according to the terms of this lease.
3. Preparation of Premises; Landlord's Construction. Landlord shall prepare the
Premises for Tenant's occupancy. Such work shall be performed to the specifications indicated
on attached Exhibit B.
4. Possession. Tenant shall have possession of the Premises on the Commencement
Date. If possession of the Premises shall for any reason not. be delivered to Tenant on the
Commencement Date, this Lease shall continue in full force and effect, and no liability shall
arise against Landlord out of any delay other than the abatement of rent, at the daily rental rate,
until possession ofthe Premises is delivered to Tenant. If Tenant, at its sole option, shall take
possession of any part of the Premises before the Conunencement Date, such possession shall be
governed by the terms of this Lease, and Tenant shall pay Landlord rent begitming on the date of
possession.
G:IEOSI\FILESIOOI00\199311EASE_COID34845.DOC
Page 1
5. Rent; Option to Renew.
a. Rental. Tenant shall pay to Landlord an annual rental amount determined
as follows:
1) Tenant shall pay 17.6% of the debt service from the City of
Muskegon 2006 Public Improvement Bonds attributable to the Western Avenue
Fire Station. (The City of Muskegon 2006 Public Improvement Bond is
$5,4000,000, of which $3,696,970 is attributable to the Western Avenue Fire
Station.); and
2) Tenant shall pay 17.6% pfthe operation and maintenance expenses
of the Western Avenue Fire Station
Such payments shall be made in equal monthly installments, in advance, without any
setoff or deductions, on or before the first day of each month during the term of this
lease. The rent shall be payable at the address for Landlord listed above.
b. Option to Renew. Tenant shall have the option to renew the term of the
lease for five (5) successive periods of five (5) years each. Tenant must exercise its
option to renew by written notice to Landlord at least 90 days before expiration of the
then existing term.
6. Use of Premises. Tenant shall use and occupy the Premises only for those
purposes related to its emergency call center operations. The Premises may be used for any
other purpose only with the prior written consent of Landlord. Tenant shall not use the Premises,
or permit the Premises to be used, in a manner that constitutes a violation of any applicable law,
order, ordinance, or regulation or that may be dangerous. Tenant shall not commit or allow any
waste in or about the Premises nor shall Tenant cause or permit any nuisance.
7. Taxes. Landlord and Tenant are exempt from paying real and personal property
taxes. If Tenant at any time during the term of this Lease becomes non-exempt, it shall promptly
pay any personal property taxes levied or assessed against Tenant's personal property; and shall,
upon request, furnish evidence of such payment to Landlord.
8. Repairs and Maintenance. Landlord shall maintain in good condition and repair
and shall make any necessary capital replacements of the heating and air conditioning piant
system, the electrical wiring system, and the roof and structural walls, to the extent necessary to
preserve Tenant's intended use and enjoyment. Landlord shall be responsible for all snow
plowing and landscaping at the Property. Repairs or replacements necessitated by the negligent
acts of the Tenant shall be made at the expense of the Tenant. Tenant shall keep and maintain
the Premises in good and sanitary order and condition, and will deliver the same to Landlord at
the expiration ofthe Term in as good a condition as when received, except for reasonable use
and wear thereof.
9. Alterations or Improvements. Tenant may, at its expense, make what
alterations, improvements, additions, and changes to the Premises it deems necessary or
expedient in the operation of the Premises, but only with Landlord's consent which will not be
G:\EDSI\FILES\OD100\1993\tEASE_CO\D34B45.DOC
Page2
unreasonably withheld. Tenant shall not, however, without Landlord's written consent, tear
down or materially demolish any improvement on the Premises, or make any material change or
alteration, if the improvement, when completed, will substantially diminish the value of the
Premises.
10. Utilities; Janitorial. Landlord shall provide gas (heat), electtic, water and sewer
utilities for the entire Property during the term of the lease, and Tenant shall pay as additional
monthly rent its 17.6% of the utility expenses. Tenant shall be responsible for providing
janitorial for the second floor of the building and Landlord shall be responsible for providing
janitorial service for the first floor of the building. Landlord shall provide garbage service for
the building. Each party shall be responsible for its own telephone service.
11. Condition of Premises. Except as Landlord and Tenant may otherwise agree in
writing, Tenant's entry into possession shall constitute conclusive evidence that Tenant accepts
the Premises "as is," in its existing condition. No representation, statement or warranty, express
or implied, has been made by or on behalf of Landlord as to such condition, or as to the use that
maybe made of the Premises. ht no event shall Landlord be liable to Tenant for any defect in
the Premises, or for limitations on its use. No representation or warranty of habitability, express
or implied, has been made by or on behalf of Landlord to Tenant.
At the termination of this lease, Tenant shall return the Premises and all equipment,
appliances and fixtures in as good a condition as when Tenant took possession, ordinary wear
and tear excepted, and upon Tenant's failure to do so, Landlord may restore the Premises,
including equipment, appliances and fixtures to such condition and Tenant shall be responsible to
pay the cost of said restoration.
12. Compliance with Laws. Tenant, under penalty of forfeiture and damages, agrees
to comply promptly with all requirements oflaw and with all ordinances, regulations or·orders of
any municipal, state, federal, or other public authority affecting all or any part of the Premises
and with all requirements ofthe Board of Fire Underwriters or similar body and of any liability
insurance company insuring the Landlord against liability for accidents in or connected with all
or any part of the Premises, and Tenant further agrees to save Landlord harmless from any and
all penalties, fines or liabilities that may result from Tenant's failure to so comply.
13. Insurance and Indemnity.
a. Landlord shall procure and maintain in full force and effect fire and
extended coverage insurance with an all-risk endorsement on the Property for its full
insurable replacement cost (excluding foundations and excavation).
b. Tenant shall, at its sole cost and expense, procure and maintain in full
force and effect during the lease term, comprehensive general public liability insurance
against claims for personal injury, death, or property damage occurring on, in, or about
the Premises in a minimum amount of$1,000,000 in respect of personal injury or death
to any one person, and of not less that $1,000,000 in respect of any one occurrence, and
of not less than $1,000,000 for property damage. Tenant shall also be responsible for
obtaining insurance for Tenant's interest and property.
G;\EDSIIFILES\00100\1993\LEASE_C0\034845.DOC
Page 3
c. All insurance policies required hereunder, which may be so-called
"blanket policies", shall: (i) name Landlord and Tenant as insureds; (ii) be payable as
provided in paragraph 15; and, (iii) be purchased from companies reasonably satisfactory
to Landlord.
14. Fire or Casualty; Condemnation. In the event the Premises are totally
destroyed by fire, wind, or other causes beyond the control of the Landlord, or are condemned or
otherwise taken by authority of!ocal, state or federal government, then in any of these events the
lease term shall cease and terminate as of the date of such destruction, condemnation or taking.
In the event of any loss or damage by fire or other casualty for which the building or
improvements on the Premises may be insured, all amounts payable upon any policy or policies
of insurance shall be paid to Landlord except the extent the insurance covers Tenant's
improvements. If the Premises are damaged by fire, rain, wind or other such causes, so as to
render the same partially untenable or partially unfit for use, but are repairable within a
reasonable time, then this lease shall remain in full force and effect, but Tenant's rent shall be
proportionately reduced until the Premises are repaired.
15. Signs. Tenant shall only place, erect or maintain or cause to be placed, erected or
maintained on any exterior surface of the Premises, or anywhere outside of the Premises, such
signs, lettering, decorations, or advertising as are permitted by law and have been approved by
Landlord in writing. Tenant shall, at its own risk and expense, lawfully erect such material.
Upon vacating the Premises, Tenant agrees to remove all signs or other such items and to repair
all damage caused by such removal.
16. Risk of Loss. During the term of this lease, and any extension or renewal thereof,
the risk of loss, with respect to all risks insurable under a fire and extended coverage insurance
policy meeting the requirements of the laws of the State of Michigan, together with the risk of
loss with respect to all uninsurable losses to the Premises which are subject to the control or
prevention by Tenant, shall rest upon Tenant.
17. Assignment or Subletting. The Tenant shall not assign, mortgage, or encumber
this lease, nor sublet or permit the Premises or any part thereof to be used by others, without the
prior written consent of the Landlord in each instance.
18. Security. Landlord shall not be liable for any injury to the person or property of
the Tenant or any other persons caused by the criminal acts of third persons upon the Premises.
19. Tenant's Default and Repossession. If the Premises shall be deserted or
vacated, orifthere shall be a default in the payment of rent or any part thereoffor more than
seven days after written notice of such default by the Landlord, or if there shall be default in the
performance of any other covenant, agreement, condition, rule or regulation herein contained or
incorporated herein by reference for more than seven days after written notice of such default by
the Landlord, this lease (if the Landlord so elects) shall thereupon become null and void, and the
Landlord shall have the right to reenter or repossess the Premises, either by summary
G:\EOSI\FILES\00100\1993\LEASE_C0\034646.DOC
Page4
proceedings, surrender, or otherwise, and dispossess and remove therefrom the Tenant, or other
occupants thereof, and their effects, without being liable to any prosecution therefor. In such
case, the Landlord may, at its option, relet the Premises or any part thereof, as the agent of the
Tenant, and the Tenant shall pay the Landlord the difference between the rent reserved and
agreed to be paid by the Tenant for the portion of the term remaining at the time of reentry or
repossession and the amount, if any, received or to be received under such reletting for such
portion of the term. Tenant agrees to pay all expenses and damages incurred by Landlord as a
result of Tenant's default, including Landlord's reasonable attorney fees.
In the event that Landlord is required to commence eviction proceedings or proceedings
to otherwise enforce collection of rents or enforce and protect the rights of Landlord hereunder,
Tenant shall be responsible to pay Landlord's costs, expenses and fees, including reasonable
actual attorney fees, which shall be incurred by Landlord as a result of such proceedings. In case
any such suit is settled before judgment is entered therein, such costs, expenses and fees,
including reasonable actual attorney fees, shall nevertheless be recoverable by Landlord as part
of said settlement.
If Tenant shall fail to perform any of its obligations hereunder, Landlord may, if it so
elects, and after five days' prior notice to Tenant, cure such default at Tenant's expense, and
Tenant agrees to reimburse Landlord (as additional rent) for all costs and expenses incurred as a
result thereof upon demand.
20. Landlord's Default. In the event that Tenant is required to commence
proceedings to enforce and protect the rights of Tenant hereunder and Tenant receives a
judgment in its favor, Landlord shall be responsible to pay Tenant's costs, expenses and fees,
including reasonable actual attorney fees, which shall be incurred by Tenant as a result of such
proceedings. In case any such suit is settled before judgment is entered therein, such costs,
expenses and fees, including reasonable actual attorney fees, shall not be recoverable by Tenant
as part of said settlement.
If Landlord shall fail to perform any of its obligations hereunder, Tenant may, if it so
elects, and after five days' prior notice to Landlord, cure such default at Landlord's expense, and
Landlord agrees to reimburse Tenant for all costs and expenses incurred as a result thereof upon
demand.
21. Dispute Resolution. In the event a dispute arises regarding this Lease, the parties
agree to first conduct an informal mediation session through a mutually agreeable third-party
mediator. If that mediation session is unsuccessful in resolving the dispute, the Muskegon
County Circuit Court shall then have exclusive personal and subject matter jurisdiction and
venue regarding this Lease.
22. Notices. All notices, approvals, consents and other communications required
under this lease shall be in writing and, except when receipt is required to start the running of a
period of time, shall be deemed given: (i) when delivered in person; (ii) when sent by fax (the
sender shall also send a "hard copy" following the fax; however, the notice shall be effective
upon the transmission of the fax); (iii) one day after depositing in the custody of a nationally-
recognized receipted overnight delivery service with delivery fees prepaid; or (iv) five days after
posting in the United States Mail first-class, registered, or certified mail, postage prepaid and
G:\EDSJ\FILES\00100\1993\LEASE_CO\D34845.DOC
PageS
return receipt requested. Notices shall be sent to the parties at the addresses listed above.
23. Holding Over. It is agreed that any holding over by the Tenant upon expiration
of the term of this lease or any renewal or extension hereof, shaH operate as an extension of this
lease from month to month only.
24. Miscellaneous.
a. Governing Law. This lease is executed in accordance with, shall be
governed by, and construed and interpreted in accordance with, the laws of the State of
Michigan.
b. Entire Agreement. This lease shall constitute the entire agreement, and
shall supersede any other agreements, written or oral, and any contemporaneous or prior
negotiations and representations that may have been made or entered into, by and
between the parties with respect to the subject matter of this lease and shall not be
modified or amended except in a subsequent writing signed by the party against whom
enforcement is sought.
c. Binding Effect. This lease shall be binding upon, and inure to the benefit
of, and be enforceable by, the parties and their respective legal representatives, permitted
successors and assigns.
d. Counterparts. This lease may be executed in counterparts, and each set
of duly delivered identical counterparts, which includes all signatories, shall be deemed
to be one original document.
e. Full Execution. This lease requires the signature of both parties. Until
fully executed, on a single copy or in counterparts, this lease is of no binding force or
effect, and, if not fully executed, this lease is void.
f. Non-Waiver. No waiver by any party of any provision of this lease shall
constitute a waiver by such party of such provision on any other occasion or a waiver by
such party of any other provision of this lease.
g. Severability. Should any one or more of the provisions of this lease be
determined to be invalid, unlawful, or unenforceable in any respect, the validity, legality,
and enforceability of the remaining provisions of this lease shall not in any way be
impaired or affected.
[signatures appear on following page]
G:\EOSI\FILES\001 00\1993\LEASE_C0\034845.DOC
Page6
Landlord and Tenant have caused this lease to be executed the day and year first above
written.
LANDLORD: CITY OF MUSKEGON
Linda Potter, Acting Clerk
Date: /0-:1.0-0 {!
TENANT: MUSKEGON CENTRAL
DISPATCH
By; ~ #'_.,Q .f'v\._~. A U •
Name: "1:::>0 n?d [11\.<'-C o 'Oo:\:l.,_
Title: E..:o c,..l':y<.. "":t:.1n:~
Date: \ :oz.<;.- c I
Page 7
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