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CITY OF MUSKEGON CITY COMMISSION MEETING APRIL 13, 2004 CITY COMMISSION CHAMBERS @ 5:30 P.M. AGENDA o CALL TO ORDER: o PRAYER: o PLEDGE OF ALLEGIANCE: o ROLL CALL: o HONORS AND AWARDS: o INTRODUCTIONS/PRESENTATION o CONSENT AGENDA: A. Approval of Minutes. CITY CLERK B. Liquor License Request - Sardine Room. CITY CLERK C. SECOND READING: Zoning Ordinance Amendment for Permits. PLANNING & ECONOMIC DEVELOPMENT D. Sale of Non-Buildable Lot at 550 Mclaughlin Avenue. PLANNING & ECONOMIC DEVELOPMENT E. Road Salt Procurement Authorization. DEPARTMENT OF PUBLIC WORKS F. Aggregates. Highway Maintenance Materials and Concrete. DEPARTMENT OF PUBLIC WORKS G. Police Car Video Systems. DEPARTMENT OF PUBLIC WORKS H. Sheldon Park Neighborhood Maintenance Agreement. PLANNING & ECONOMIC DEVELOPMENT o PUBLIC HEARINGS: A. Request for an Industrial Facilities Exemption Certificate - United Sign Company. PLANNING & ECONOMIC DEVELOPMENT B. Request for an Industrial Facilities Exemption Certificate - Total Quality Machining, Inc. PLANNING & ECONOMIC DEVELOPMENT o COMMUNICATIONS: o CITY MANAGER'S REPORT: • UNFINISHED BUSINESS: • NEW BUSINESS: A. Pere Marquette Ground Lease Assignment. LEISURE SERVICES B. Hartshorn Marina Proposals. LEISURE SERVICES C. Request for Extension of Deadlines for Former Lakos Property. PLANNING & ECONOMIC DEVELOPMENT D. Purchase of 265 Walton. COMMUNITY & NEIGHBORHOOD SERVICES E. Community Development Block Grant/HOME Final Allocation Decision. COMMUNITY & NEIGHBORHOOD SERVICES F Approval of the 2004-2005 Action Plan. COMMUNITY & NEIGHBORHOOD SERVICES G. Concurrence with the Housing Board of Appeals Notice and Order to Demolish 1355 Pine and 1365 Pine. INSPECTION SERVICES H. Accepting Lemuel Street into the City's Street System. ENGINEERING I. TEDF Category F-Grant Applications. ENGINEERING J. Repeal Article Ill of Chapter 26. ENGINEERING K. Consideration of Bids: Campus & Strong Projects H-157B & H-1579. ENGINEERING • ANY OTHER BUSINESS: • PUBLIC PARTICIPATION: • Reminder: Individuals who would like to address the City Commission shall do the following: • Fill out a request to speak form attached to the agenda or located in the back of the room. • Submit the form fo the City Clerk. • Be recognized by the Choir. • Step foiward to the microphone. • State name and address. • limit of 3 minutes to address the Commission. • (Speaker representing a group may be allowed 10 minutes if previously registered with City Clerk.) • ADJOURNMENT: ADA POLICY: THE CITY OF MUSKEGON WILL PROVIDE NECESSARY AUXILIARY AIDS AND SERVICES TO INDIVIDUALS WHO WANT TO ATTEND THE MEETING UPON TWENTY FOUR HOUR NOTICE TO THE CITY OF MUSKEGON. PLEASE CONTACT GAIL A. KUNDINGER, CITY CLERK, 933 TERRACE STREET, MUSKEGON, Ml 49440 OR BY CALLING (231) 724-6705 OR TDD: (231) 7244172. 2004-34(a) CITY OF MUSKEGON State of Michigan Certificate of Recognition WHEREAS, A National Youth Service Day 2004, "Preparing Muskegon for a Call to Serve," funded by donations from State Farm Insurance Foundation, AT&T "CARES" Youth Innovation Fund, and the Muskegon County Sheriff's Department of Emergency Services has been scheduled for April 16, 2004, and WHEREAS, Volunteer Muskegon's AmeriCorps, with its partners Muskegon County Emergency Services, Family Independence Agency, American Red Cross, Community Mental Health, and the Muskegon Rescue Mission, will recruit a team of 210 youth volunteers; 10 corporate volunteers and 15 senior/retirees in Muskegon county to participate in a mock disaster, blood drive, workshop and senior safety distribution, and WHEREAS, this mock disaster will test the human services division of emergency preparedness and provide information on how to prepare for an emergency, and will also distribute to seniors disaster kits, cell phones, vials for life, and emergency beacon lights, and WHEREAS, these volunteers contribute by giving tirelessly of their time and energy, each individual having a special contribution to offer, and NOW THEREFORE, I Stephen J. Warmington, by virtue of the authority vested in me as Mayor and speaking on behalf of the City Commission hereby recognize April 16, 2004 as National Youth Service Day and urge all citizens to join with us in recognizing the dedication made by Muskegon's Americorps volunteers towards the well being of our community and extend our appreciation for the contributions made by the organizations that support them. IN WITNESS WHEREOF, l have hereunto set my hand and cause the seal of the City of Muskegon to be affixed this 13"' day of April, 2004. Stephen J. Warmington, Mayor Date: April 13, 2004 To: Honorable Mayor and City Commissioners From: Gail A. Kundinger, City Clerk RE: Approval of Minutes SUMMARY OF REQUEST: To approve the minutes of the Regular Commission Meeting that was held on Tuesday, March 23, 2004. FINANCIAL IMPACT: None. BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: Approval of the minutes. CITY OF MUSKEGON CITY COMMISSION MEETING APRIL 13, 2004 CITY COMMISSION CHAMBERS@ 5:30 P.M. MINUTES The Regular Commission Meeting of the City of Muskegon was held at City Hall, 933 Terrace Street, Muskegon, Michigan at 5:30 p.m., Tuesday, April 13, 2004. Mayor Warmington opened the meeting with a prayer from Commissioner Gawron 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 Bill Larson, Commissioners Chris Carter, Kevin Davis, Stephen Gawron Clara Shepherd, and Lawrence Spataro, City Manager Bryon Mazade, City Attorney John Schrier and City Clerk Gail Kundinger. 2004-34 INTRODUCTIONS/PRESENTATIONS: A. National Youth Service Day 2004 "Preparing Muskegon for a Call to Service" Commissioner Spataro presented a resolution announcing Nation Youth Service Day 2004, "Preparing Muskegon for a Call to Service" to Martha Bottomly, representative of Volunteer Muskegon. 2004-35 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, March 23, 2004. FINANCIAL IMPACT: None BUDGET ACTION REQUIRED: None STAFF RECOMMENDATION: Approval of the minutes. B. Liquor License Request - Sardine Room. CITY CLERK SUMMARY OF REQUEST: The Liquor Control Commission seeks local recommendation on a request from Small Perch, Inc. for a new outdoor service area to be held in conjunction with their current 2003 Class C-SDM licensed business with Dance permit and Official Permit (food). FINANCIAL IMPACT: None BUDGET ACTION REQUIRED: None STAFF RECOMMENDATION: All departments are recommending approval. C. SECOND READING: Zoning Ordinance Amendment for Permits. PLANNING & ECONOMIC DEVELOPMENT SUMMARY OF REQUEST: Request to amend Section 2311 (Accessory Structures and Buildings) of Article XXIII (General Provisions) of the City's Zoning Ordinance to add language regarding permits. FINANCIAL IMPACT: None BUDGET ACTION REQUIRED: None STAFF RECOMMENDATION: Staff recommends amendment of the Zoning Ordinance to add language regarding permits. COMMITTEE RECOMMENDATION: The Planning Commission recommended approval of the request at their 3/11 meeting. The vote was unanimous with T. Johnson absent. D. Sale of Non-Buildable Lot at 550 Mclaughlin Avenue. PLANNING & ECONOMIC DEVELOPMENT SUMMARY OF REQUEST: To approve the sale of a vacant non-buildable lot (Parcel #24-205-081-0006-00) at 550 McLaughlin Avenue to Gurney Brower, of 560 McLaughlin Avenue, Muskegon, Ml. Approval of this sale will allow the owner to expand his current yard. Mr. Brower is attempting to purchase the small vacant lot directly to the north of this City-owned property from a private owner. This lot is being offered to Mr. Brower for $1 under the Dollar Lot Marketing Plan. FINANCIAL IMPACT: The sale of this lot will allow the property to be placed back on the City's tax rolls thus relieving the City of Continued maintenance costs. BUDGET ACTION REQUIRED: None STAFF RECOMMENDATION: To approve the resolution and to authorize both the Mayor and the Clerk to sign the resolution and the deed. E. Road Salt Procurement Authorization. DEPARTMENT OF PUBLIC WORKS SUMMARY OF REQUEST: Authorize procurement of 4,500 tons road salt for the 2004/2005 winter season through the State of Michigan MiDeal Program. FINANCIAL IMPACT: Per Ton price yet to be determined; 2003/2004 extended price is $24.70/ton. At the price, 4,500 tons would total $111,150. BUDGET ACTION REQUIRED: None; expense budgeted for through public works. F. Aggregates. Highway Maintenance Materials and Concrete. DEPARTMENT OF PUBLIC WORKS SUMMARY OF REQUEST: Award bid to supply Hl and H2 limestone chip blend to Verplank Trucking Company. Award bid to supply road slag to Verplank Trucking Company. Award bid to supply sylvax-patching material UPM-CP-7 to Rieth-Riley Construction Co., Inc. Award bid to supply bituminous asphalt product to Asphalt Paving, Inc. Award bid to supply Calcium Chloride 38% (road brine) and 32% (winter salting) to Liquid Dustlayer, Inc. Award bid to supply 7-sack mix concrete to Port City Redi-Mix Company, contingent upon product availability, timely deliveries, and prices as quoted. FINANCIAL IMPACT: $120,480, based on 2003 quantities at 2004 quotes. BUDGET ACTION REQUIRED: None; monies appropriated in several budgets. G, Police Car Video Systems. DEPARTMENT OF PUBLIC WORKS SUMMARY OF REQUEST: Approval to purchase ten video systems for police cruisers. FINANCIAL IMPACT: Cost per unit $5,907.50 BUDGET ACTION REQUIRED: None STAFF RECOMMENDATION: Approve purchase of new video systems for police cruisers. Motion by Commissioner Spataro, second by Commissioner Gawron to accept the Consent Agenda as read minus item H. ROLL VOTE: Ayes: Larson, Shepherd, Spataro, Warmington, Carter, Davis, Gawron Nays: None MOTION PASSES 2004-36 ITEMS REMOVED FROM CONSENT AGENDA H. Sheldon Park Neighborhood Maintenance Agreement. PLANNING & ECONOMIC DEVELOPMENT SUMMARY OF REQUEST: To approve the Agreement between Sheldon Park Neighborhood Association and the City of Muskegon. We have had an agreement with the neighborhood Association since 1997, which has been renewed every l-2 years. FINANCIAL IMPACT: The City donates $2,000 to the Association to maintain the Northwest corner of Evanston and Oak Grove Street and the South side of McLaughlin Ave., just East of Burton Road. This is for the term of the Agreement (May l, 2004-December 31, 2005). BUDGET ACTION REQUIRED: None STAFF RECOMMENDATION: To approve the Agreement and authorize the Mayor and Clerk to sign. Motion by Vice Mayor Larson, second by Commissioner Carter to approve the Agreement between Sheldon Park Neighborhood Association and the City of Muskegon, and have the Mayor and Clerk sign. ROLL VOTE: Ayes: Shepherd, Spataro, Warmington, Carter, Davis Gawron, Larson Nays: None MOTION PASSES 2004-37 PUBLIC HEARINGS: A. Request for an Industrial Facilities Exemption Certificate - United Sign Company. PLANNING & ECONOMIC DEVELOPMENT SUMMARY OF REQUEST: Pursuant to Public Act 198 of 197 4, as amended, United Sign Company, 2068 E. Sherman Boulevard, Muskegon, Michigan, has requested the issuance of an Industrial Facilities Exemption Certificate. The total capital investment for this project is $652,095 in personal property which will lead to the retention of 2 jobs. This request qualifies United Sign Company for a 6-year exemption on personal property. United Sign Company's current workforce is 16. FINANCIAL IMPACT: The City will capture certain additional property taxes and income taxes generated by the expansion. BUDGET ACTION REQUIRED: None STAFF RECOMMENDATION: Approval of the resolution granting an Industrial Facilities Exemption Certificate for a term of six (6) years for personal property to United Sign Company. The Public Hearing opened at 5:42pm to hear any comments from the people. No comments were heard at this time. Motion by Commissioner Larson, second by Commissioner Gawron to close the Public Hearing at 5:45pm and to approve the resolution granting an Industrial Facilities Exemption Certificate for a term of six (6) years for personal property to United Sign Company. ROLL VOTE: Ayes: Spataro, Warmington, Carter, Davis, Gawron, Larson, Shepherd Nays: None MOTION PASSES B. Request for an Industrial Facilities Exemption Certificate - Total Quality Machining. Inc. PLANNING & EC.ONOMIC DEVELOPMENT SUMMARY OF REQUEST: Pursuant to Public Act 198 of 1974, as amended, Total Quality Machining, Inc., 2226 Olthoff Drive, Muskegon, Michigan, has requested the issuance of an Industrial Facilities Exemption Certificate. The total capital investment for this project is $129,503 in personal property which will lead to the retention of l O jobs. This request qualifies Total Quality Machining, Inc. for a 6- year exemption on personal property. Total Quality Machining, Inc. 's current workforce is l 0. FINANCIAL IMPACT: The City will capture certain additional property taxes and income taxes generated by the expansion. BUDGET ACTION REQUIRED: None STAFF RECOMMENDATION: Approval of the resolution granting an Industrial Facilities Exemption Certificate for a term of six (6) years for personal property to Total Quality Machining Inc. The Public Hearing opened at 5:45pm to hear any comments from the public. Comments were heard from Rick Goodwin of 3946 Leahy representing Total Quality. Motion by Commissioner Gawron, second by Commissioner Davis to close the Public Hearing at 5:49pm and to approve the resolution granting an Industrial Facilities Exemption Certificate for a term of six (6) years for personal property to Total Quality Mac hinging Inc. ROLL VOTE: Ayes:. Warmington, Carter, Davis, Gawron, Larson, Shepherd, Spataro Nays: None MOTION PASSES 2004-38 UNFINISHED BUSINESS: A. Madison Street Fire Barn: Oakview Neighborhood Association PLANNING AND ECONOMIC DEVELOPMENT Motion by Commissioner Larson, second by Commissioner Spataro to extend the Lease Agreement between the City and Oakview Neighborhood Association for 120 days, and for the Association to inform City Staff within 90 days if they intend to purchase the building. If the property is not able to be purchased by Oakview, a Request for Proposal will be put out for other purchasers of the building. The Neighborhood Association may remain in the building during this time, and upon adopting a sale with another purchaser, they would have 30 days after the property is sold to relocate. ROLL VOTE: Ayes: Carter, Davis, Gawron, Larson, Shepherd, Spataro, Warmington Nays: None MOTION PASSES 2004-39 NEW BUSINESS: A. Pere Marquette Ground Lease Assignment. LEISURE SERVICES SUMMARY OF REQUEST: To authorize the assumption of the ground lease for the restaurant at Pere Marquette Park. FINANCIAL IMPACT: None BUDGET ACTION REQUIRED: None STAFF RECOMMENDATION: Approval. Motion by Commissioner Spataro, second by Vice Mayor Larson to approve the assumption of the ground lease for the restaurant at Pere Marquette Park. ROLL VOTE: Ayes: Davis, Gawron, Larson, Shepherd, Spataro, Warmington, Carter Nays: None MOTION PASSES B. Hartshorn Marina Proposals. LEISURE SERVICES SUMMARY OF REQUEST: To authorize staff to negotiate a contract with Westrec Management, Inc. to manage Hartshorn Marina and other marina properties beginning in 2005. FINANCIAL IMPACT: Unknown BUDGET ACTION REQUIRED: None STAFF RECOMMENDATION: Approval. Motion by Commissioner Spataro, second by Commissioner Gawron to authorize staff to negotiate a contract with Westrec Management Inc. to manage Hartshorn Marina and other marina properties beginning in 2005. ROLL VOTE: Ayes: Gawron, Larson, Shepherd, Spataro, Warmington, Carter, Davis Nays: None MOTION PASSES C. Request for Extension of Deadlines for Former Lakos Property. PLANNING & ECONOMIC DEVELOPMENT SUMMARY OF REQUEST: On February 8, 2000, the City of Muskegon and Desiree Enterprises (Holiday Inn) entered into a "Real Estate Agreement" for the sale of the former Lakos property. At that time, the owners were required to construct a building on the premises within 18 months of closing. On January 22, 2002, an "Amendment Agreement' was entered into between the parties, which allowed for the buyer to construct a parking lot on the premises by May 31, 2002 (which was accomplished), to provide a written schedule of the construction activities to the City by January 15, 2003 (which has not occurred) and to complete the improvements by January 15, 2005. The City has requested the construction schedule from the buyer. However, the purchaser has submitted a letter requesting another time extension (the most recent letter from Mr. Elkhouly requests a 10-12 month extension. Since no schedule or building plans have been forthcoming, and due to the fact that the "Amendment" has been violated, staff is recommending the City proceed with a reversion of the property back to the City. FINANCIAL IMPACT: The City will have an additional piece of property that can be sold for future development. BUDGET ACTION REQUIRED: None STAFF RECOMMENDATION: To deny the request to extend the deadline for the "Amendment" and to proceed with legal action to cause the property to be reverted to the City of Muskegon. However, if the City Commission would prefer that an extension be granted, staff recommends that the Commission refer the item back to staff to negotiate with the purchaser for acceptable terms. Motion by Commissioner Spataro, second by Vice Mayor Larson to refer back to staff to negotiate an extension to the agreement and report back to the City Commission. ROLL VOTE: Ayes: Larson, Shepherd, Spataro, Warmington, Carter, Davis, Gawron Nays: None MOTION PASSES D. Purchase of 265 Walton. COMMUNITY & NEIGHBORHOOD SERVICES SUMMARY OF REQUEST: To approve the purchase of the property located at 265 Walton (City of Muskegon revised Plat of 1903 Lot 6 Block 199 also easterly ½ vacated Rathborne Street Th' to) from Mrs. Roxie Murray, 2221 Riverview, Inkster, Ml 48141 (Seller). After approval of the purchase by the Commission, the CNS Department will combine this property with property already obtained by the City of Muskegon through the tax reversion process. In order that the City will have the required land to complete the proposed future housing development project south of the Farmers Market area. FINANCIAL IMPACT: Funding for purchase will come from the City's 2001 HOME funding. BUDGET ACTION REQUIRED: None STAFF RECOMMENDATION: To approve the request and instruct the Mayor and City Clerk to sign the Purchase Agreement. Motion by Commissioner Shepherd, second by Commissioner Spataro to approve the purchase of the property located at 265 Walton St. from Mrs. Roxie Murray 2221 Riverview, lnster, Ml., and instruct the Mayor and City Clerk to sign the Purchase Agreement. ROLL VOTE: Ayes: Shepherd, Spataro, Warmington, Carter, Davis, Gawron, Larson Nays: None MOTION PASSES E. Community Development Block Grant/HOME Final Allocation Decision. COMMUNITY & NEIGHBORHOOD SERVICES SUMMARY OF REQUEST: For the City Commission to make their final allocation decision concerning the 2004-2005 CDBG/HOME fiscal year. The Commission has received the recommendation from the Citizen's District Council and the City Administration. The Commission made their preliminary recommendations during the March 23, 2004, City Commission Meeting. After receiving the Commissions final allocation decision, the CNS office will amend the City's 2004- 2005 Action Plan if needed and continue the comment period until April 15, 2004. At that time, the City will request the U.S. Housing and Urban Development Department for the release of the funds for the 2004-2005 fiscal year to begin June 1, 2004. FINANCIAL IMPACT: The decision will determine the CDBG/HOME budget for 2004-2005. BUDGET ACTION REQUIRED: The decision will establish the budget. STAFF RECOMMENDATION: The Commission has already received the staff recommendation. Motion by Vice Mayor Larson, second by Commissioner Spataro to approve the final allocation decision concerning the 2004-2005 CDBG/HOME fiscal year. ROLL VOTE: Ayes: Spataro, Warmington, Carter, Davis, Gawron, Larson, Shepherd Nays: None MOTION PASSES F Approval of the 2004-2005 Action Plan. COMMUNITY & NEIGHBORHOOD SERVICES SUMMARY OF REQUEST: To approve the 2004-2005 Action Plan for the City of Muskegon Community Development Block Grant/HOME activity. If the Action Plan is approved, the CNS will continue the comment period of the Action Plan as amended if needed until April 15, 2004. On April 16, 2004, the CNS Office will deliver the Action Plan to the U.S. Housing and Urban Development as required in order to request the Release of Funds for the 2004-2005 fiscal year. FINANCIAL IMPACT: Action Plan establishes the 2004-2005 budget. BUDGET ACTION REQUIRED: None at this time budget established by Action Plan. STAFF RECOMMENDATION: To approve the Action Plan. Motion by Commissioner Spataro, second by Commissioner Shepherd to approve the 2004-2005 Action Plan for the City of Muskegon Community Development Glock Grant/HOME as amended. ROLL VOTE: Ayes: Warmington, Carter, Davis, Gawron, Larson, Shepherd, Spataro Nays: None MOTION PASSES G. Concurrence with the Housing Board of Appeals Notice and Order to Demolish 1355 Pine and 1365 Pine. INSPECTION SERVICES SUMMARY OF REQUEST: This is to request that the City Commission concur with the findings of the Housing Board of Appeals that the structures located at 1355 Pine and 1365 Pine are unsafe, substandard, public nuisances and that they be demolished within thirty (30) days. It is further requested that administration be directed to obtain bids for demolition of the structures and that the Mayor and City Clerk be authorized and directed to execute a contract for demolition with the lowest responsible bidder. 1. 1355 Pine St. CASE# & PROJECT ADDRESS: #EN-040005, 1355 Pine St. LOCATION. AND OWNERSHIP: This structure is located on Pine Street between Bauer and Catawba and is owned by Raymond Kittel. STAFF CORRESPONDENCE: On l /21 /04 the trade inspectors and Fire Marshal conducted an inspection at this house after the housing inspector reported dangerous living conditions. At the time there were two women living there with their six children. They believed they were renting from Mr. Kittel, but he had actually had them sign a Land Contract in the amount of $40,000 on 2/21/03. Upon inspection the Fire Marshal and trade inspectors found the structure to be very dangerous and the two families were told they would have to vacate the premises. Their case workers did help them find new places to stay and were referred to legal Aid of West Michigan in reference to the Land Contract. The utilities have since been cut and the house is vacant. A Notice and Order to repair or remove was issued l/22/04 and on 3/4/04 the HBA declared the structure substandard and a dangerous building. OWNER CONTACT: Mr. Kittel spoke with Mr. Grabinski the week before the HBA meeting and spoke of selling the house. He stated he had a potential buyer already lined up. FINANCIAL IMPACT: CDBG Funds BUDGET ACTION REQUIRED: None STATE EQUALIZED VALUE: $22,800 ESTIMATED COST OF REPAIR: $20,000 STAFF RECOMMENDATION: To concur with the Housing Board of Appeals decision to demolish. Motion by Commissioner Gawron, second by Commissioner Carter to concur with the HBA to demolish 1355 Pine St. and have the Mayor and Clerk authorized and directed to execute a contract for demolition with the lowest responsible bidder. ROLL VOTE: Ayes: Carter, Davis, Gawron, Larson, Shepherd, Spataro, Warmington Nays: None MOTION PASSES 2. 1365 Pine St. CASE# & PROJECT ADDRESS: #EN-040004, 1365 Pine St. LOCATION AND OWNERSHIP: This structure is located on Pine Street between Bauer and Catawba and is owned by Mortgage Electronic Registration. It is currently in the redemption period of foreclosure and a local realtor, John Achterhof!, has listed it to sell. STAFF CORRESPONDENCE: A dangerous building inspection was conducted on l /20/04. A Notice and Order to repair was issued l /22/04. An interior inspection was conducted 3/18/94 and on 3/4/04 the HBA declared the structure substandard and dangerous. OWNER CONTACT: John Achterhof! contacted the Inspection Department and scheduled the interior inspection. He stated he has been contacted by the management company handling the foreclosure to list the property to sell. FINANCIAL IMPACT: CDBG Funds BUDGET ACTION REQUIRED: None STATE EQUALIZED VALUE: $11,800 ESTIMATED COST OF REPAIR: $20,000 STAFF RECOMMENDATION: To concur with the Housing Board of Appeals decision to demolish. Motion by Commissioner Spataro, second by Commissioner Shepherd to concur with the HBA to demolish 1365 Pine St. and have the Mayor and Clerk authorized and directed to execute a contract for demolition with the lowest responsible bidder. ROLL VOTE: Ayes: Davis, Gawron, Larson, Shepherd, Spataro, Warmington, Carter, Nays: None MOTION PASSES H. Accepting Lemuel Street into the City's Street System. ENGINEERING SUMMARY OF REQUEST: Adopt the resolution including Exhibit A accepting Lemuel Street north of Hackley into the City's street system. Lemuel Street was constructed as part of the Seaway Industrial Park Development. FINANCIAL IMPACT: None BUDGET ACTION REQUIRED: None STAFF RECOMMENDATION: Adopt the resolution. Motion by Commissioner Spataro, second by Commissioner Gawron to adopt resolution including exhibit A accepting Lemuel Street north of Hackley into the City's street system. ROLL VOTE: Ayes: Gawron, Larson, Shepherd, Spataro, Warmington, Carter, Davis Nays: None MOTION PASSES I. TEDF Category F-Grant Applications. ENGINEERING SUMMARY OF REQUEST: Your permission to submit a 2005 TEDG Category F Grant application for the Milling & Resurfacing of Lakeshore Dr. between McCracken & Lincoln (2000') is requested. The estimated cost is about $240,000 of which the City's share would be about $60,000 (25%). FINANCIAL IMPACT: A 25% match plus engineering cost which are estimated at $90,000 if the project is approved. BUDGET ACTION REQUIRED: None at this time. However, should the project get approval, we would have to include it in the 2005 Capital Improvement Budget. STAFF RECOMMENDATION: Approve the submittal of the grant application. Motion by Vice Mayor Larson, second by Commissioner Carter to submit a 2005 TEDF Category F Grant application for the Milling & Resurfacing of Lakeshore Dr., between McCracken & Lincoln (2000'). ROLL VOTE: Ayes: Larson, Shepherd, Spataro, Warmington, Carter, Davis, Gawron Nays: None MOTION PASSES J. FIRST READING: Repeal Article Ill of Chapter 26. ENGINEERING SUMMARY OF REQUEST: Adopt the ordinance repealing Article Ill of Chapter 26 of the City's Ordinance dealing with the soil erosion & sedimentation control. By us repealing such ordinance, enforcement of such program will fall on the County's DPW as per MDEQ's rules. At the present time, Muskegon County is the enforcing agent for most of the communities within the County. Repealing said ordinance will not have an impact on City-owned projects since we will be able to retain our Authorized Public Agency designation. However, all activities that fall within the established MDEQ guidelines as needing a soil erosion permit, one must be issued by the County. The advantages of such action can be in the form of consistency. FINANCIAL IMPACT: None, the County has there own fee schedule which is very comparable to the one the City has. BUDGET ACTION REQUIRED: None STAFF RECOMMENDATION: Adopt the ordinance. Motion by Vice Mayor Larson, second by Commissioner Gawron to adopt ordinance repealing Article Ill of Chapter 26 of the City Ordinance dealing with the soil erosion and sedimentation control. ROLL VOTE: Ayes: Shepherd, Spataro, Warmington, Carter, Davis, Gawron, Larson Nays: None MOTION PASSES K. Consideration of Bids: Campus & Strong Projects H-1578 & H-1579 .. ENGINEERING SUMMARY OF REQUEST: The contract to reconstruct both Strong & Campus be awarded to K & R out of Grand Rapids, Ml. K & R was the lowest, responsible bidder with a bid price of $286,687.42. FINANCIAL IMPACT: The construction cost of $286,687.42 plus related engineering expenses. BUDGET ACTION REQUIRED: None STAFF RECOMMENDATION: Award the contract to K & R. Motion by Commissioner Spataro, second by Vice Mayor Larson to award the contract to K & R out of Grand Rapids, Ml. to reconstruct both Strong & Campus streets. ROLL VOTE: Ayes: Spataro, Warmington, Carter, Davis, Gawron, Larson, Shepherd Nays: None MOTION PASSES L. ANY OTHER BUSINESS: Motion by commissioner Davis, second by Commissioner Spataro to participate in the 2004 Scrap Tire Collections, Muskegon County. ROLL VOTE: Ayes: Warmington, Carter, Davis, Gawron, Larson, Shepherd, Spataro Nays: None MOTION PASSES The Regular Commission meeting for the City of Muskegon was adjourned at 7:30pm. Respectfully submitted, ~0-~ Gail A. Kundinger, MMC City Clerk Date: April 13, 2004 To: Honorable Mayor and City Commissioners From: Gail A. Kundinger, City Clerk RE: Liquor License Request Sardine Room (Small Perch, Inc.) 2536 Henry SUMMARY OF REQUEST: The Liquor Control Commission seeks local recommendation on a request from Small Perch, Inc. for a new outdoor seNice area to be held in conjunction with their current 2003 Class C-SDM licensed business with Dance Permit and Official Permit (food). FINANCIAL IMPACT: None. BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: All departments are recommending approval. Muskegon Police Department A~.L.'A~ e~o1,P~ 980 Jefferson Street P.O. Box 536 Muskegon Michigan 49443-0536 (23 1) 724-6750 (231) 722-5140 /= www.muskegonpolice.com October 31 , 2003 To: City Commission through the City Manager From: /:J. _ L .1 ~ Antho~ L.. Kleibecker, Chief of Police Re: Liquor License Request for New Outdoor Service Area 2536 Henry Street (Sardine Room) The Muskegon Police Department has received a request from the Michigan Liquor Control Commission for an investigation of applicant Small Perch, Inc. of 2536 Henry Street, operating under the name of The Sardine Room and Bar. Small Perch, Inc. is requesting a new outdoor service area to be held in conjunction with their current 2003 Class C-SDM licensed business with Dance Permit and Official Permit (food). A check of Muskegon Police Department records shows no reason to deny this request. ALK/dl Reg ID #229231 MICHIGAN DEPARTMENT OF COMMERC!; LIQUOR CONTROL COMMISSION RESOLUTION 2004-35(b) At a _..;;.R;_:e;..g.,__u;;;.::cl..;;;a""r'--~----- meeting of the _ _ _ ___:C;_:i=-t=-y"-..;;;C.. :o;.:;m:.;.:m.:;.1=-·-=s-=s~i:...::o:...:n~----- tAegula,, Of ~I (To...i,Jp 8oanl. Clly of VIiiage c-nc.11 called to order by i ....1_1_~__,....,....2_... Mayor Warmington on ......:.A..._p.._r..... n...a....4___ at s: 30 P.M. the following resolution was offered: Moved by Commissioner Spataro and Supported by Commissioner Gawron Small Perch, Inc. for a new· Outdoor service That the request from Area to be held in conjunction with 2003 Class C-SDM Licensed Business with Dance Permit and Official Permit (food), located at 2536 Henry, Muskegon, MI 49441, Mus~egon County. be considered for Approval (Appro-,111 o, Ola,approwllll Approval Disapproval Yeas: 7 Yeas: Nays: 0 Nays: Absent: O. Absent: It is the consensus of this legislative body that the application be Recommended · · (Aecom- o, _ _ _ _ _ _ _ _ _ _ _ _ for issuance. not Alicommendedl State of Michigan ) 55 County of Muskegon) I hereby certify that the foregoing is a true and complete copy of a resolution ottered and adopted by the City Commission at a _ _ __.,1R:::..ie~g-.Yu..1.l-"aur_ _ _ _ _ _ _ __ (Aevlilar or SpecaolJ meeting held on the 14 th of April, 2004. M ,/ (0&1•J (Signed) . -~ a.k ~~- . . Cl1rto1_F _ (Townonop. Clly, or V1ll1g1 Gail A. Kundinger, City Clerk 933 Terrace, Muskegon, MI 49440 -----,u-dr___ol-:T:-own.o-n,p. Cily or v,111go Boordt - SEAL Zz-'9 .;?6 I Michigan Department of Consumer & Industry Services 8/2 g/u,3 MICIDGAN LIQUOR CONTROL COMMISSION (MLCC) ~ 7150 Han-is Drive, P.O. Box 30005 - Lansing, Michigan 48909-7505 LAW ENFORCEMENT RECOMMENDATION (MCL 436.1501) August 11, 2003 REQ ID # 22923 1 TO: MUSKEGON POLICE DEPARTMENT RE: SMALL PERCH, INC. CHIEF OF POLICE 980 JEFFERSON STREET, PO BOX 536 MUSKEGON, MI 49443-0536 We have received a request from the above licensee for the type of pennit indicated below. Please make an investigation and submit your report and/or recommendation, as requested below, to the offices of the Liquor Control Commission at the above address. Questions about this request should be directed to the MLCC Licensing Division at (517) 322-1400. OFFICIAL PERMIT FOR EXTENDED To copies of Form LC 11 12 will be left with you, the upper po1tions • HOURS OF OPERATION FOR already executed. Indicate your recommendation and return one copy to the Commission, retaining the other. (Authorized by MAC 436.1403) LIVING QUARTERS Indicate your recommendations on the bottom of this letter and return • one copy to the Commission. (Authorized by MCL 436.1217 and 436.1201) SMALL PERCH, INC. REQUESTS A NEW OUTDOOR SERVICE AREA 0 TO BE HELD IN CONJUNCTION WITH 2003 CLASS C-SDM LICENSED BUSINESS WITH DANCE PERMIT AND OFFICIAL PERMIT (FOOD), LOCATED AT 2536 HENRY, MUSKEGON, Ml 49441, MUSKEGON COUNTY. Recommendation: (Recommended / Not recommended) ---+- fe,__._.c;;~C~O~/_??_ m _ ~e~ ·/J~·~dt~e~JJ~----------- Signed: -t /?-if L . I ~ <:::...5:-l-l t.::. ,,:_ Signature and Title Date: 'rt /<.> -J 1 ·- <)\J LC-1636 Rev. 9/01 4880- 1934 sfs To: Chief Tony Kleibecker From: Det. Kurt Dykman Date: 09-12-03 Re: Liquor License Request Chief Kleibecker, The Muskegon Police Department has received a request from the Michigan Liquor Control Commission for an investigation from applicant Small Perch, Inc. of2536 Henry Street, Muskegon, MI. 49441. This business is operating under the name of The Sardine Room and Bar. Small Perch, Inc. is requesting a new outdoor service area to be held in conjunction with 2003 Class C-SDM licensed business with Dance Permit and Official Permit (food). A check of MPD records showed no reason to deny this request. Respectfully submitted, data/common/SmallPerch LIQUOR LICENSE REVIE\V FORl"\f Business Name: _ _ _S=._;,a"-'-/'--'dt'-"--i'_/J_e__Jfz'-'--o---'o'--/YJ--'--_ _ _ _ _ _ _ __ AK.<\ Business Name (if applicable): Sm 11 I/ &ce,/4 Inc. Operato:r/lVIanager's Name: Business Address: Reason for Review: New License D Transfer of Ownership D Dance Permit D Drop/Add Name on License D· Transfer Location D Drop/Add Stock.bolder Name D New Entert~inment Permit D Other ~w Oufdoo/' Serf//c G ffee,q Deadline for receipt of all information: _ _ _ _ _ _ _ _ __ Police Department Approved D Denied D No Action Needed D Income Tax Approved ~Owing D Amount: Treasurer Approved D Owing D Amount: _ _ __ Zoning Approved D Denied D Pending ZBA D Clerk's Approved D Owing D Amount: _ _ __ Fire/Inspection Compliance D Remaining Defects _ _ _ __ Services ~ Department Signature_ __ _·_ _· -=~ -----=--·____=\ 1 + I - '- ~ • 1. _ _ _ __ J ;o·:;.... Gail A. Kundinger, City Clerk L'au r Li ense Coordinator LIQUOR LICENSE REVIEW FORJ.\il ' · ~_e_....:...fo_.__o..::;_o..;../YJ-'--_ _ _ _ _ _ __ Business ~ame: _ ___,,;S=....;.;a~/.....::;c/..;_1_ AKI\ Business Name (if applicable): Sm q§ &ce,,4 Iac . OperatoirflVIanager' s Name: Business Address: Reason for Review: New License D Transfer of Ownership D D Dance Permit Drop/Add Name on License D· Transfer Location D Drop/Add Stockholder Name D New Entert~inment Permit D Other ~w OutJoo/' Serf/1'c G ffee,q Deadline for receipt of all information: _ _ _ __ _ _ _ __ PoHce Department Approved D Denied D No Action Needed D Income Tax Approved D Owing D Amount: - - - - y Treasurer Approved 0 .-/ . *~ , Owing L:1 Amount: (/J-ti'( qq : _ t":r ~ I Of't , ,\.l ""v-);LtJ.- "u · Zoning Approved D Denied D Pending ZBA D f{!; Clerk's Approved D Owing D Amount: _ __ _ Fire/Inspection Compliance D Remaining Defects _ _ _ __ Services Department Signatur~ --:g...------ Gail A. Kundinger, City Clerk Liouor License Coordinator PROPERTY - CINQl Pagel of 1 Next Screen j Charges and Payments Summary Usage History I Chrgs/Pymt Hist j Balance by Utmtyj Inquire EAP I Organization ii 900 Bill Grp # Autopay Account# [j~.'.J.16:2_59.41 Start at Date L1031_031 Qwner I Bent 0 Route 907 Service Address 02536 HENRY ST Customer Name SARDINE ROOM Account Status A Date 51700 Mailing Address 02536 HENRY ST MUSKEGON, MI 49441 # of Units Unit Name # of Meters 1 Account Balance 291. 34+ Current Charges 151.17+ Arrears 140.17+ Deposit Amount Deposit Date Comments NO Charge Due Dtl Date Date Charge Payment EAP Payment Description _j 31704 41204 151.17+ CHARGES _j 30804 145.66- PAYMENT _j 21804 31504 140.17+ CHARGES _j 20504 484.68- PAYMENT _j 12204 21704 162.69+ CHARGES _j 121803 11204 170.31+ CHARGES _j 112103 121703 142.37+ CHARGES _j 103103 532.48- PAYMENT GO http://ntsci/gems 11/PROPERTY/CINQ l .ASP 4/1/2004 NOV 1 D 2003 LIQUOR LICENSE REVIE\V FORJ."1 Cl' L I (,ON f7[ . : , ,.i, _, . ,-'•,•111,W' I Bu.siness :fame: AK.A Business Name (if applicable): Sm q I/ &ce-,4 I?? c:. Operatol!"/lVIanage:r's Name: Business Address: Reason for Review: New License D Transfer of Ownership D Dance Permit D Drop/Add Name on License • Transfer Location D Drop/Add Stockholder Name D New Entert~inment Permit D Other ~w OutJoo/' Serv1'cc &cg Deadline fo:r reteipt of all information: _ _ _ _ _ _ _ _ __ Police Department Approved D Denied D No Action Needed D Income Tax Approved • Owing D Amount: Treasurer Approved • Owing D Amount: Zoning Approved @ Denied D Pending ZBA • Clerk's Approved • Owing • Amount: Fire/Inspection Compliance 0 Remaining Defects Services Department Signature (dud! ·.;;;:/~/Jv...,,~ Gail A. Kundinger, City Clerk Liauor License Coordinator I I- IJ- o3 LIQUOR LICENSE REVIEW FORJ.'\tf Business Name: _ _ _S=--ca~/1.......,dt:;.;__1'_/J_e_--';&'-'----'-0.......,0'-'/?'/--'-_ _ _ _ _ _ _ __ AK.A Business Name (if appiicaible): Smql/ &c0'4 I/?c . Operato1r/lVIanager's Name: Business Address: Reason for Review: New License D Transfer of Ownership D Dance Permit D Drop/Add Name on License D· Transfer Location D Drop/Add Stockholder Name D New Entert~inment Permit D Other ,d'ew Ouf/oo/' Serv1'c G ffee,q Deadline for :receipt of all information: _ _ _ _ _ _ _ _ __ Police Department Approved D Denied D No Action Needed D Income Tax Approved • Owing D Amount: Treasurer Approved • Owing D Amount: Zoning Approved • Denied D Pending ZBA 0 Clerk's Approved ~ Owing • Amount: Fire/Inspection Compliance D Remaining Defects Services Department Signature_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ Gail A. Kundinger, City Clerk Liauor License Coordinator LIQUOR LICENSE REVIEW FORl'1 Business Name: _ _ _S=--=a;!..,.:/1.....;c/::;.:_:_i.....:..~-e,_--'-'fq___;o::....;o::..../'YJ'-----'-------- - - AK.A. Bu.sin.ess Name (if appiicaible): Smq// &ce,/4 Iac. Operato:r/lVIanager's Name: Business Address: Reason for Review: New License D Transfer of Ownership D D Dance Permit Drop/Add Name on License D· Transfer Location O Drop/Add Stock.bolder Name O New Entert~inment Permit D Other /few OutJoo/' Serl/1'c G ffee,q Deadline for receipt of all information: __________ Police Department Approved 0 Denied D No Action Needed 0 Income Tax Approved• Owing D Amount: Treasurer Approved • Owing D Amount: ~~ Approved • Denied D 0 . Zoning Pending ZBA Clerk's Approved • Owing • Amount: \( ( D ~ Fire/Inspection 0 ~;\' Services Gail A. Kundinger, City Clerk Liauor License Coordinator //- ( ✓,--0 J LIQUOR LICENSE REVIEW FORJ.'1 Business Name: _ ___,S~a'--'-/1--=dt-=-1_,/J_e_....:.,.;Y(}.<_;;_o-=-o..;._/'Yl-'--_ _ _ _ _ _ __ AKA. Business Name (if applicable): Smq/) &ce-/4 Iac. Operato:r/lVIanager's Name: Business Addn-ess: Reason for Review: New License D Transfer of. Ownership D Dance Permit D Drop/Add Name on License • D Transfer Location Drop/Add Stock.bolder Name O New Entert~inment Permit D Other few Olt/Joo/' Serf/1'c G &e.cc Deadline for receipt of all information: __________ Police Department Approved D Denied D No Action Needed D Income Tax Approved • Owing D Amount: Treasurer Approved • Owing D Amount: Zoning Approved • Denied D Pending ZBA 0 Clerk's Approved • Fire/Inspection Compliance D •Remainin Servic~es , I) .I ~~1c{c.../_ ~ (" A ' NVO C. be P.·~ ~S.Su.c . Department Signaturf Mil~. . · I II/; ~ I /o3 Gail A. Kundinger, City Clerk Liauor License Coordinator Affirmath•e Action 616/724-6703 F AX/722-1214 Assessor 616/724-6708 FAX/724--il78 Cemetery 616/724-6783 FAX/726-5617 Civil Service 616/724-6716 FAX/724-4055 West Michigan's Shoreline City Clerk 616/724-6705 F AX/724-4178 Comm. & Neigh. Services 616/724-6717 FAX/726-2501 December 18, 2003 Engineering 616/724-6707 FAX/727-6904 Finance Small Perch, Inc. 616/724-6713 FAX/724-6768 2536 Henry Muskegon,MI 49441 Fire Dept. 616/724-6792 FAX1724-6985 Dear Sir: Income Tax 616/724-6770 I have received a letter from the Liquor Control Commission reference your F AX/724-6768 request for a new outdoor service area at 2536 Henry. An inspection is required Info. Systems by the Fire Marshal for maintenance purposes. Please contact the Fire 616/724-6706 FAX/722-4301 Department at 724-6792 to set up the inspection. The Inspection Department Leisure Service needs to see drawings of the area involved. Please contact the Inspection 616/724-6704 Department at 724-6715. FAX1724-1196 Manager's Office This request will then be presented to the City Commission for their 616/724-6724 FAX/722-1214 recommendation. If you have any questions, please contact me at 724-6915. Mayor's Office 616/724-6701 Thank you, FAX/722-121-$ Neigh, & Const. Sen•ices 616/724-6715 FAX/726-2501 Linda Potter, CMC Planning/Zoning Deputy Clerk 616/724-6702 FAX/724-6790 Police Dept. 616/724-6750 FAX/722-5140 Public Works 616/724-4100 FAX/722-4188 Treasurer 616/724-6720 FAX/724-6768 Watrr Billing Dept. 616/724-6718 FAX/724-6768 Wat<'r Filtration 616/724-4106 FAX/755-5290 City of Muskel~on, 933 Terrace Street, P.O. Box 536 1 Muskegon, Ml 49443-0536 Affirmative Action (231)724-6703 FAX (231)722-1214 Assessor (231)724-6708 FAX (231)726-5181 Cemetery (231)724-6783 FAX (231)726-5617 City Manager West Michigan's Shoreline City www.shorellnecity.com (231)724-6724 FAX (231)722-1214 Civil Service (231)724-6716 FAX (231 )724-4405 April 1, 2004 Clerk (23 I )724-6705 FAX (231 )724-4178 Comm. & Neigh. Ms. Ann Smith, President Services (231)724-6717 Campbell Field Neighborhood Association FAX (231)726-2501 1874 Crowley Engineering Muskegon,MI 49441 (231)724-6707 FAX (231)727-6904 Dear Ms. Smith: Finance (231 )724-6713 FAX (231)724-6768 We have received a request from the Liquor Control Commission reference Small Fire Department Perch, Inc. (Sardine Room) desire for a new outdoor service area to be held in (231 )724-6792 conjunction with their current 2003 Class C-SDM licensed business with Dance FAX (231)724-6985 Permit and Official Permit (food) located at 2536 Henry. On Tuesday, April 13, Income Tax 2004, the City Commission will review this request and determine whether or not (231 )724-6770 FAX (231)724-6768 it should be recommended for approval. Info. Technology (231 )724-4126 You are being sent this notice because the City Commission would like to know FAX (231)722-4301 how the Neighborhood Association feels and would appreciate any comments that Inspection Services they may have. You may send these comments to 933 Terrace, Muskegon, MI (231)724-6715 FAX (231)728-4371 49440 or attend the City Commission Meeting on April 13, 2004, at 5:30 p.m. in the Commission Chambers. Leisure Services (231)724-6704 FAX (231)724-1196 If you have any questions, please feel free to contact me at 724-6705. Mayor's Office (231)724-6701 FAX (231)722-1214 Sincerely, Planning/Zoning (231)724-6702 FAX (231)724-6790 Pol ice Department Linda Potter (231)724-6750 Deputy Clerk FAX (231)722-5140 Public Works (231)724-4100 FAX (231)722-4188 Treasurer (23 I )724-6720 FAX (231)724-6768 Water Billing (231)724-6718 FAX (231)724-6768 Water Filtration (231)724-4106 FAX (231)755-5290 City of Muskegon, 933 Terrace Street, P.O. Box 536, Muskegon, MI 49443-0536 Affirmative Action (231)724-6703 FAX (231)722-1214 Assessor (231)724-6708 FAX (231)726-5181 Cemetciy (231)724-6783 FAX (231)726-5617 City Manager West Michigan's Shoreline Cit;y www.shorellnecity.com (231)724-6724 FAX (231)722-1214 Civil Service (231)724-6716 FAX (231 )724-4405 April I, 2004 Clerk (231)724-6705 FAX (231)724-4178 Comm. & Neigh. Small Perch, Inc. Services (231)724-6717 2536 Henry FAX (231)726-2501 Muskegon,MI 49441 Engineering (231)724-6707 Dear Sir: FAX (231)727-6904 Finance This letter is to inform you that your request for a new outdoor service area to be (231 )724-6713 FAX (231)724-6768 held in conjunction with your 2003 Class C-SDM Licensed Business with Dance Fire Department Permit and Official Permit (food) will be presented to the City Commission on (23 I )724-6792 April 13, 2004. This meeting begins at 5 :30 p.m. and is located in the City FAX (231)724-6985 Commission Chambers, 933 Terrace, Muskegon, MI. Income Tax (231)724-6770 FAX (231)724-6768 This request has also been sent to the Campbell Field Neighborhood Association Info. Technology for their comments. It is Commission practice to let the Neighborhood (231)724-4126 Association know of any liquor license requests that are located within their FAX (231)722-4301 boundaries. This allows for comments from the people who live there and not Inspection Services just from the owners of the business' who are located there. (231)724-6715 FAX (231)728-4371 There is a water bill owed at this time. Please make sure this is paid by April 6, Leisure Services (231)724-6704 2004. If you have any questions, please feel free to contact me at 724-6705. FAX (231)724-1196 Mayor's Office Sincerely, (231)724-6701 FAX (231)722-1214 Planning/Zoning (231)724-6702 FAX (231)724-6790 Linda Potter Pol ice Department Deputy Clerk (231)724-6750 FAX (231)722-5140 Public Works (231)724-4100 FAX (231)722-4188 Treasurer (231)724-6720 FAX (231)724-6768 Water Billing (231)724-6718 FAX (231)724-6768 Water Filtration (231)724-4106 FAX (23 l )755-5290 City of Muskegon, 933 Terrace Street, P.O. Box 536, Muskegon, Ml 49443-0536 Affirmative Aclion (231)724-6703 FAX (231)722-1214 Assessor (231)724-6708 FAX (231)726-5181 Cemetery (231)724-6783 FAX (231)726-5617 City Manager Weat Michigan's Shoreline City www.shorellnecity.com (231)724-6724 FAX (231)722-1214 Civil Service (23 I)724-6716 FAX (231 )724-4405 Clerk April 15, 2004 (231)724-6705 FAX (231)724-4178 Comm. & Neigh. Services (231)724-6717 FAX (231 )726-250 I Liquor Control Commission 7150 Harris Engineering (23 I )724-6707 PO Box30005 FAX (231)727-6904 Lansing, MI 48909-7505 Finance (231)724-6713 REF: #229231 FAX (231)724-6768 Small Perch, Inc. Fire Department (23 I )724-6792 2536 Henry FAX (231)724-6985 Muskegon,MI 49441 Income Tax (231 )724-6770 To Whom It May Concern: FAX (231)724-6768 Info. Technology Enclosed is the Resolution and form LC-I 636 for Small Perch, Inc. that was (231)724-4126 FAX (231)722-4301 recommended for approval at the April 13, 2004, City Commission Meeting. Inspection Services (231)724-6715 Please do not hesitate to call me at (231) 724-6705 if you have any questions. FAX (231)728-4371 Leisure Services Sincerely, (23 I )724-6704 FAX (231)724-1196 Mayor's Office (231 )724-670 I FAX (231)722-1214 Linda Potter Planning/Zoning Deputy Clerk (231 )724-6702 FAX (231)724-6790 Enc. Police Department (231)724-6750 FAX (231)722-5140 Public Works (231)724-4100 FAX (231)722-4 I 88 Treasurer (23 I )724-6720 FAX (231)724-6768 Water Billing (231)724-6718 FAX (231)724-6768 Water Filtration (23 I )724-4 I 06 FAX (23 I )755-5290 City of Muskegon, 933 Terrace Street, P.O. Box 536, Muskegon, MI 49443-0536 httn~//www .!i:h orf'li neritv .ro m Commission Meeting Date: March 23, 2004 y ~ Date: March 24, 2004 To: Honorable Mayor and City Commissioners From: Planning & Economic Development RE: Zoning Ordinance Amendment for Permits SUMMARY OF REQUEST: Request to amend Section 2311 (Accessory Structures and Buildings) of Article XXIII (General Provisions) of the City's Zoning Ordinance to add language regarding permits. FINANCIAL IMPACT: None BUDGET ACTION REQUIRED: None STAFF RECOMMENDATION: Staff recommends amendment of the Zoning Ordinance to add language regarding permits. COMMITTEE RECOMMENDATION: The Planning Commission recommended approval of the request at their 3/11 meeting. The vote was unanimous with T. Johnson absent. 3/24/2004 Staff Report [EXCERPT] CITY OF MUSKEGON PLANNING COMMISSION REGULAR MEETING March 11, 2004 Hearing; Case 2004-9: Staff initiated request to amend Section 2311 (Accessory Structures and Buildings) of the Zoning Ordinance adding language regarding permits .. BACKGROUND Staff has come across an oversight in the Zoning Ordinance. On July 31, 2001, The City of Muskegon began enforcing the State of Michigan Construction Code which said that building permits would no longer be required for accessory structure for one and two family dwellings where floor space does not exceed 200 square ft. Therefore the city has required a development permit for these less than 200 square ft. accessory structures. The language made it into the Shed brochure but was never added to the Zoning Ordinance. The ordinance language change is proposed in the first line below in bold italics. Prohibited Signs and Exempt Signs Excerpted from Section 2311 (Accessory Structures and Buildings): SECTION 2311: ACCESSORY STRUCTURES & BUILDINGS Accessory buildings shall require a development permit or when required by building codes, a building permit, except as otherwise permitted in this Ordinance, and shall be subject to the following regulations: 1. Attached: Where the accessory building is structurally attached to a main building, it shall be subject to, and must conform with, all regulations of this Ordinance applicable to the main building. 2. Front Yard, prohibition: Buildings or structures accessory to the principal, shall not be permitted in any front yard. Parking lots are prohibited in any residential front yard. Security stations within an "I" District may be erected in any yard. [amended 10/02] 3. Height restrictions: Buildings accessory to residential buildings shall not be more than one (1) story or fourteen (14) feet in height. 4. Detached: Detached accessory buildings shall: a. Be at least six (6) feet from any principal building b. Be at least three (3) feet from any side or rear lot line. 2 c. Not be located within a dedicated easement or right-of-way. d. Any accessory structure placed in a residential property or zone in the city shall be of residential construction properly painted or sided. Pole style storage buildings and sheet metal accessory structures are prohibited in all residential zones or developments. [amended 8/01] 5. Replacement: Existing accessory structures may be replaced on the existing footprint provided they are wholly contained within the property and meet the required front yard setback. 6. Satellite Dishes: Satellite dishes over twenty four inches (24") in diameter shall be considered accessory structures. The setback placement of satellite dishes shall be measured from the outermost edge of the dish. 7. Number: No more than one (1) accessory building shall be located on any parcel within an "R" or "RT" district, except that two (2) may be permitted when one is a garage or other shelter for automobiles belonging to the residence. 8. Not Permitted Prior to a Principal Structure: Accessory buildings and structures shall not be erected on a lot or parcel in a residentially zoned district prior to the establishment of a principal structure. Where two or more abutting lots are held under one ownership or control in a residentially zoned district, the owner may erect an accessory building on a lot separate from that one which the principal building is located, provided both lots are combined and used as one with a single tax description. CITY OF MUSKEGON MUSKEGON COUNTY, MICHIGAN ORDINANCE NO. 2129 An ordinance to amend Section 2311 (Accessory Structures and Buildings), of Article XXIII (General Provisions) of the City's Zoning Ordinance to create provisions regarding permits. THE CITY COMMISSION OF THE CITY OF MUSKEGON HEREBY ORDAINS: Section 2311 (Accessory Structures and Buildings), of Article XXIII (General Provisions) of the Zoning Ordinance of the City of Muskegon is hereby amended to create provisions regarding permits: SECTION 2311: ACCESSORY STRUCTURES & BUILDINGS Accessory buildings shall require a development permit or when required by building codes, a building permit, except as otherwise permitted in this Ordinance, and shall be subject to the following regulations: I. Attached: Where the accessory building is structurally attached to a main building, it shall be subject to, and must conform with, all regulations of this Ordinance applicable to the main building. 2. Front Yard, prohibition: Buildings or structures accessory to the principal, shall not be permitted in any front yard. Parking lots are prohibited in any residential front yard. Security stations within an "I" District may be erected in any yard. [amended I 0/02] 3. Height restrictions: Buildings accessory to residential buildings shall not be more than one(!) story or fourteen (14) feet in height. 4. Detached: Detached accessory buildings shall: a. Be at least six (6) feet from any principal building b. Be at least three (3) feet from any side or rear lot line. c. Not be located within a dedicated easement or right-of-way. e. Any accessory structure placed in a residential property or zone in the city shall be of residential construction properly painted or sided. Pole style storage buildings and sheet metal accessory structures are prohibited in all residential zones or developments. [amended 8/0 I] 5. Replacement: Existing accessory structures may be replaced on the existing footprint provided they are wholly contained within the property and meet the required front yard setback. 6. Satellite Dishes: Satellite dishes over twenty four inches (24") in diameter shall be considered accessory structures. The setback placement of satellite dishes shall be measured from the outermost edge of the dish. 7. Number: No more than one (1) accessory building shall be located on any parcel within an "R" or "RT" district, except that two (2) may be permitted when one is a garage or other shelter for automobiles belonging to the residence. 8. Not Permitted Prior to a Principal Structure: Accessory buildings and structures shall not be erected on a lot or parcel in a residentially zoned district prior to the establishment of a principal structure. Where two or more abutting lots are held under one ownership or control in a residentially zoned district, the owner may erect an accessory building on a lot separate from that one which the principal building is located, provided both lots are combined and used as one with a single tax description. This ordinance adopted: Ayes: Larson, Shepherd, Spataro, Warmington, Carter, Davis, Gawron Nayes:._N_on _e_ _ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ _ _ _ _ __ _ Adoption Date: April 13, 2004 Effective Date: April 27, 2004 First Reading: March 23, 2004 Second Reading: April 14, 2004 Ord. No. 2129 CERTIFICATE 111e W1dersigned, being the duly qualified clerk of the City of Muskegon, Muskegon CoW1ty, 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 13th day of April, 2004, 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. ~ , / ~ QC~~ · DATED: April 13 ,2004. Gail A. KW1dinger, MMC Clerk, City of Muskegon r Publish: Notice of Adoption to be published once within ten (10) days of final adoption. CITY OF MUSKEGON NOTICE OF ADOPTION Please take notice that on April 13, 2004, the City Commission of the City of Muskegon adopted an ordinance to amend Section 2311 (Accessory Buildings and Structures), of Article XXIII (General Provisions) of the City's Zoning Ordinance to create provisions regarding permits. 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 qiol 17 ,2004 CITY OF MUSKEGON By _ _ _ _ _ _ _ _ _ _ _ __ Gail A. Kundinger, MMC City Clerk PUBLISH ONCE WITHIN TEN (10) DAYS OF FINAL PASSAGE. AccountNo. 101-80400-5354 Commission Meeting Date: April 13, 2004 Date: March 23, 2004 To: Honorable Mayor and City Commissioners From: Planning & Economic Development (..(!i, RE: Sale of Non-Buildable Lot at 550 McLaughlin Avenue SUMMARY OF REQUEST: To approve the sale of a vacant non-buildable lot (Parcel #24-205-081-0006-00) at 550 McLaughlin Avenue to Gurney Brower, of 560 McLaughlin Avenue, Muskegon, Ml. Approval of this sale will allow the owner to expand his current yard. Mr. Brower is attempting to purchase the small vacant lot directly to the north of this City-owned property from a private owner. This lot is being offered to Mr. Brower for $1 under the Dollar Lot Marketing Plan. FINANCIAL IMPACT: The sale of this lot will allow the property to be placed 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 the resolution and the deed. COMMITTEE RECOMMENDATION: 3/23/2004 1 CITY OF MUSKEGON RESOLUTION #2004- 3 s ( a ) RESOLUTION APPROVING THE SALE OF A CITY-OWNED NON-BUILDABLE LOT WHEREAS, the City of Muskegon has received $1 from Gurney L. Brower, 560 McLaughlin A venue, Muskegon, MI 49442 for the purchase of a vacant, City-owned lot located adjacent to his property at 550 McLaughlin Avenue, Muskegon, MI (parcel #24-205-081-0006-10); and WHEREAS, this lot is considered unbuildable under the City's Zoning Ordinance; and WHEREAS, the sale would enable the City to place this property back on the tax rolls, and would relieve the City of further maintenance; and WHEREAS, the sale of this property would be in accordance with property disposition goals and the Dollar Lot Marketing Plan. NOW, THEREFORE BE IT RESOLVED, that the CITY OF MUSKEGON REVISED PLAT OF 1903 S 76 FT LOT 6 BLK 81 be sold to Gurney L. Brower for $1. th Resolution adopted this 13 day of April, 2004. Ayes: Larson, Shepherd, Spataro, Warmington, Carter, Davis, Gawron Nays: None Absent: None By: ~9~-?-j_~~-/=.~~==~ '-- Steph n Mayor Attest L Q. 1 Gail A. Kundinger, MM ~ / • Clerk 2004-35(d) CERTIFICATION This resolution was adopted at a regular meeting of the City Commission, held on April 13, 2004. 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 LQ. ~~ Gail A. Kundinger, MMC Clerk ~ - -""- jj_ m i-- /* ~- I~~~ -_-. --~e•c.:ceJ _ lll__l __ Z! -- - Zt-i:- - -J ---- --/ :g ~---- :g - --1---- :g - -- ____ q~ - _:ft~ :g l ____ ze, lSlnNlS3H8 __ _ ____zn____ _ --- --- ~·':=J -------J I~ - -«l lS S/1\/\f/ll/M - - -- -- ...l£~---- -- QUIT-CLAIM DEED KNOW ALL MEN BY THESE PRESENTS: That the CITY OF MUSKEGON, a municipal corporation, of 933 Terrace Street, Muskegon, Michigan 49440, QUIT CLAIMS to GURNEY L. BROWER, a married man, of560 McLaughlin Avenue, Muskegon, Michigan 49442, the following described premises situated in the City of Muskegon, County of Muskegon, State of Michigan, to wit: CITY OF MUSKEGON REVISED PLAT OF 1903, SOUTH 76 FEET OF LOT 6, BLOCK 81 for the sum of: One Dollar ($1.00) PROVIDED, HOWEVER, If the Grantee or adjoining property owner loses the adjoining property due to foreclosure or non-payment of taxes, the non-buildable lot shall revert to the Gran tor. At that point in time when any lien covers both parcels or there are not liens on either parcel, the property owner may request and the Grantor shall agree to waive and terminate the reverter clause. This deed is exempt from real estate transfer tax pursuant to the provisions of MCLA 207.505(h)(i) and MCLA 207.526 Sec. 6(h)(i). Dated t h i s ~ day of ~Ct/ , 2004. Signed in the presence of: d,wJJ-4, L,,, d <1. dilvt /1,-ft-er u~ klank Trucking Co. $13.78 per ton, delivered Finance Dept (23 1)724-67 13 FAX: (23 1)724-6768 500 ton I-12 Limestone Chip Blend ($11.86 in 2003; $0) Fire Departmen t Verplank Tl'ucking Co. $13.78 per ton, delivered (23 1)724-6792 FAX: (23 1)724-6985 9,000 ton Road Slag 22-A Natural ($8.94 in 2003; $23,795) In come Tax Verplank Trucking Co. $8.67 per ton, delivered (231)724-6770 FAX: (231)724-6768 Meekhofs Lakeside Dock $10.25 per ton, delivered Inspection Services Verplank Trucking Co. $7.11 per ton, delivered, gravel (231)724-671 S Frank Adams Trucking $7.60 per ton, delivered, gravel FAX: (23 1)728-437 1 Leisure Ser vices 500 ton Sylvax Patching Material, UPM-CP-7 ($58.00 in 2003; $8,168) (23 1)724-6704 FAX: (23 1)724- 1196 Rieth-Riley Construction Co. $56.00 per ton, delivered Asphalt Paving, Inc. $65.85 per ton, delivered Mayor's O ffice (23 1)724-670 I FAX: (231)722- 12 14 200 ton Bituminous Asphalt 4: 12, Base ($35.00 in 2003; $15,11 7) Plan ni ng/ Zonin g Asphalt Paving, Inc. $35.00 per ton, picked up {23 1)724-6702 FAX: (23 1)724-6790 1,000 ton Bituminous Asphalt 4:12, Top ($35.00 in 2003; $7,355) Police Depla r tm ent (23 1)724-6750 Asphalt Paving, Inc. $35.00 per ton, picked up FAX: (23 1)722-5 140 Public Works Dcpl. 85,000 gallons Calcium Chloride 38% (road brine) ($0.39 in 2003; $25,861) ( 23 1)724-4 100 FAX: (231)722-4188 Liquid Dustlayer, Inc. $0.39 per gallon, s1n·ead T reas urer's O ffice (23 1)724-6720 15,000 gallons Calcium Chloride 32% (winter salting) ($0.32 in 2003; $950) FAX: (23 1)724-6768 Liquid Dustlayer Inc. $0.32 per gallon, stored W a ler llllllng Dept. (231)724-671 8 FAX: (23 1)724-6768 Waler Fillra tlon (23 1)724-4 106 FAX: (231)755-5290 Department of Public Works & Utilities, 1350 E. Keating Street, Muskegon, Ml 49441 www.shorelinecity.com 2004 Aggregates, Highway Maintenance Materials, and Concrete Page2 April 6, 2004 15,000 gallons Polymer Modified Anionic Asphalt Emulsion (HFST Emulsion) ($0. 78 in 2002; no bid in 2003; $0) No bid Concrete mix as needed (7 Sack Mix $64.00* in 2003, $35,436) Port City Redi-Mix $64.00 per cubic yard, 7 Sack Mix, delivered* Consumers Concrete $66.00 per cubic yard, 7 Sack Mix, delivered High Grade Concrete Prod. $66.00 per cubic yard, 7 Sack Mix, delivered *The 7-sack mix is the most commonly used product. It should be noted that concrete purchases may include several miscellaneous charges, including, but not limited to, hot water, chloride, small loads, second drops, winter price, extra unload time. High Grade Concrete Products' bid was low on the majority of miscellaneous charges. However, based on 2003 purchases, the savings realized by awarding the bid to High Grade for their lower miscellaneous charges did not surpass the savings in purchasing the concrete from Port City Redi-Mix. Purchases will be made from recommended bidder, contingent upon product availability, timely deliveries, and prices as quoted. PMB (L/Docs/Bids/2004 Agg ... Comm Ltr) 2004 Aggregates, Highway Maintenance Materials and Concrete Bidders Frank Adams Trucking & Excavating Inc PO Box 863 Pentwater MI 49449 Asphalt Paving, Inc. 1000 E. Sherman Boulevard Muskegon MI 49444-0190 Consumers Concrete Corp. 4400 E. Evanston Avenue Muskegon MI 49442 High Grade Concrete 540 N. Maple Street Spring Lake MI 49456 Liquid Dustlayer, Inc. P.O. Box 188 Manistee MI 49660 Meekhofs Lakeside Dock Inc. 16861 120th A venue Nunica MI 49448 Port City Redi-Mix Company 1780 Sheridan Road Muskegon MI 49442 Rieth-Riley Construction Co., Inc. 867 Egypt Valley Ada MI 49301 Verpiank Trucking Co. PO Box 8 Fen-ysburg MI 49409 PMB (L/Docs/Bids/2004 Agg ... Comm Ltr) Date: 04/06/04 To: Honorable Mayor and City Commission From: Brett Kraley, Equipment Supervisor DPW RE: Video Systems SUMMARY OF REQUEST: Approval to purchase ten video systems for police cruisers. FINANCIAL IMPACT: Cost per unit $5,907.50 BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: Approve purchase of new video systems for police cruisers. Memorandum To: Honorable Mayor and Commissioner From: Brett Kraley Date: 04/06/04 Re: Video Systems The VHS systems that we began replacing last year continue to fail on a regular basis, costing the police department both staff time and lost use of the vehicle. These systems have been in service for seven years of continuous 24-hour operation and are in need ofreplacement. We would like to begin retrofitting ten (10) of the lowest mileage cruisers with new DVD systems to ensure dependable service to the community. The vendor for this purchase is Kustom Signal from Lenexa, Kansas, the same company from which we purchased the ten systems last year. We have been more than satisfied with their product and service. We expect to complete the purchase of the final seven (7) systems in 2005. I recommend we begin the process of retrofitting our cruisers with the purchase of ten (I 0) new DVD systems from Kustom Signal. 1 Commission Meeting Date: April 13, 2004 Date: April 2, 2004 To: Honorable Mayor & City Commission From: Planning & Economic Development Departmente6C- RE: Sheldon Park Neighborhood Maintenance Agreement SUMMARY OF REQUEST: To approve the attached Agreement between Sheldon Park Neighborhood Association and the City of Muskegon. We have had an agreement with the Neighborhood Association since 1997, which has been renewed every 1-2 years. FINANCIAL IMPACT: The City donates $2,000 to the Association to maintain the Northwest corner of Evanston and Oak Grove Street and the South side of McLaughlin Avenue just East of Burton Road. This is for the term of the Agreement (May 1, 2004-December 31, 2005). BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: To approve the attached Agreement and authorize the Mayor and Clerk to sign. COMMITTEE RECOMMENDATION: None. 2004-36(h) CITY OF MUSKEGON NEIGHBORHOOD CITY LOT MAINTENANCE AGREEMENT THIS AGREEMENT effective May 1, 2004 is made between the CITY OF MUSKEGON, 933 Terrace Street, Muskegon, Michigan ("City") and the SHELDON PARK NEIGHBORHOOD IMPROVEMENT ASSOCIATION, of I 128 Roberts Street, Muskegon, Michigan ("Sheldon Park"), because Sheldon Park wishes to accomplish and perpetuate the maintenance of the City owned lots on the attached Exhibit A for the betterment and beautification of their neighborhood, and because the City wishes to encourage neighborhood associations such as Sheldon Park in this way and in general involvement in the neighborhoods of the City. THEREFORE THE PARTIES AGREE: l. Maintenance of the City Lots. Sheldon Park shall maintain, by mowing or by any other action required, the City owned lots attached in Exhibit A in compliance with all applicable City codes and ordinances for the term of this agreement. 2. Compensation. In return for Sheldon Park's services and its interest in the neighborhood, the City agrees to donate the sum of $2,000 to Sheldon Park, for its general purposes including but not limited to materials and improvements on the lots, but further for the general purposes of Sheldon Park in its work as a neighborhood improvement association. 3. Special Conditions. 3. l Sheldon Park agrees that it will not employ persons to accomplish the mowing and landscaping of the lots, but the work is being done by volunteers recruited by or members of Sheldon Park. The persons actually accomplishing the services or services related to the work on the lots shall not be compensated, except to reimburse out-of-pocket expenditures in connection with the work. 3 .2 Sheldon Park agrees that it has inspected the lots, and fmther has determined that there are no hazards or dangerous conditions on the lots which may be expected to cause injury. In the event any such condition becomes known to Sheldon Park or any of its volunteers, Sheldon Park agrees to notify the City immediately. 3 .3 Sheldon Park agrees to obtain a waiver on the form attached as Exhibit B from each person performing the work as a volunteer and deliver the same to the City before the work begins. 3.4 The persons volunteering to do the work shall not be considered City employees. They shall not be subject to City control or supervision. 3.5 Sheldon Park shall use its best efforts to assure that the properties will be maintained in accordance with applicable City codes and ordinances. 4. Term of the Agreement. This agreement shall have a term of May I, 2004 through December 31, 2005. Payments of the amount for said shall be made at reasonable intervals during the term of this agreement. The agreement may be terminated by either party on 30 days notice. IN WITNESS WHEREOF, the parties execute this agreement effective on the date set forth above. Dated: 4'ci/ JS- , 200'-J Dated: J;r:,/ IS , 200':/ Dated:_~ _ _,_/_5~---' l 200'! EXHIBIT A LOCATION AND LEGAL DESCRIPTIONS OF CITY LOTS 2 Commission Meeting Date: April 13, 2004 Date: March 18, 2004 To: Honorable Mayor and City Commissioners From: Planning & Economic Development c/;;C- RE: Public Hearing - Request for an Industrial Facilities Exemption Certificate - United Sign Company SUMMARY OF REQUEST: Pursuant to Public Act 198 of 1974, as amended, United Sign Company, 2068 E. Sherman Boulevard, Muskegon, Michigan, has requested the issuance of an Industrial Facilities Exemption Certificate. The total capital investment for this project is $652,095 in personal property will lead to the retention of 2 jobs. This request qualifies United Sign Company for a 6-year exemption on personal property. United Sign Company's current workforce is 16. FINANCIAL IMPACT: The City will capture certain additional property taxes and income taxes generated by the expansion (see attached Summary Sheet). BUDGET ACTION REQUIRED: None STAFF RECOMMENDATION: Approval of the attached resolution granting an Industrial Facilities Exemption Certificate for a term of six (6) years for personal property to United Sign Company. COMMITTEE RECOMMENDATION: None 3/18/2004 Resolution No. 2004-37 (a) MUSKEGON CITY COMMISSION RESOLUTION APPROVING APPLICATION FOR ISSUANCE OF INDUSTRIAL FACILITIES EXEMPTION CERTIFICATE UNITED SIGN COMPANY WHEREAS, pursuant to P.A. 198 of 1974 as amended, after duly noticed pubic hearing held on July 26, 1983, this Commission by resolution established an Industrial Development District as requested by the City of Muskegon for the owners of property in the Port City Industrial Park, Muskegon, Michigan 49444; and WHEREAS, United Sign Company has filed an application for the issuance of an Industrial Facilities Tax Exemption Certificate with respect to new machinery and equipment to be installed within said Industrial Development District; and WHEREAS, before acting on said application the Muskegon City Commission held a public hearing on April 13, 2004, at the Muskegon City Hall in Muskegon, Michigan at 5:30 p.m. at which hearing the applicant, the assessor and representatives of the affected taxing units were given written notice and were afforded an opportunity to be heard on said application; and WHEREAS, the installation of machinery and equipment had not begun earlier than six (6) months before March 15, 2004, the date of the acceptance of the application for the issuance of an Industrial Facilities Tax Exemption Certificate; and WHEREAS, the installation of machinery and equipment is calculated to and will have the reasonable likelihood to retain, create, or prevent the loss of employment in Muskegon, Michigan; and WHEREAS, the aggregate SEV of real property exempt from ad valorem taxes within the City of Muskegon, will not exceed 5% of an amount equal to the sum of the SEV of the unit, plus the SEV of personal and real property thus exempted. NOW, THEREFORE, BE IT RESOLVED by the Muskegon City Commission of the City of Muskegon, Michigan that: 1) The Muskegon City Commission finds and determines that the Certificate considered together with the aggregate amount of certificates previously granted and currently in force under Act No. 198 of the Public Act of 1974 as amended and Act No. 255 of the Public Acts of 1978 as amended shall not have the effect of substantially impeding the operation of the City of Muskegon or impairing the financial soundness of a taxing unit which levies ad valorem property taxes in the City of Muskegon. 2) The application of United Sign Company, for the issuance of an Industrial Facilities Tax Exemption Certificate with respect to installation of new machinery and equipment on the following described parcel of real property situated within the City of Muskegon to wit: CITY OF MUSKEGON PORT CITY INDUSTRIAL CENTER NO 5 LOT 58 3) The Industrial Facilities Tax Exemption Certificate is issued and shall be and remain in force and effect for a period of six (6) years on personal property. 2004-37(a) th Adopted this 13 Day of April 2004 Ayes: Spataro, Warmington, Carter, Davis, Gawron, Larson, Shepherd Nays: None Absent: None BY: With superior print quality, the Inca Columbia wide format flatbed printer can also print at extremely high speeds, more than 1300ft'/hour. 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Width 10.5 feet (3.2 meters) Length 31 feet (9.45 meters) Height 6feet (1.77 meters) Weight 6600 lbs (3000 kilogrammes) Space requirements 50 feet x 25 feet Sericol Ilmaging (15 meters x 7.5 meters) The InkJet Division of Serlcol Requirements 1101 West Cambridge Drive Kansas City KS 66103-1311 Voltage supply Constant power supply USA 380/400V 3-Phase neutral & Tel: +1913 342 4060 earth, power rated to 32 amps Fax: +1 913 342 4752 per phase. Network 100BaseT. www.serlcol.com/imaging * Data subject to change without notice. Commission Meeting Date: April 13, 2004 Date: March 18, 2004 To: Honorable Mayor and City Commissioners From: Planning & Economic Development c.1,c..- RE: Public Hearing - Request for an Industrial Facilities Exemption Certificate - Total Quality Machining, Inc. SUMMARY OF REQUEST: Pursuant to Public Act 198 of 1974, as amended, Total Quality Machining, Inc, 2226 Olthoff Drive, Muskegon, Michigan, has requested the issuance of an Industrial Facilities Exemption Certificate. The total capital investment for this project is $129,503 in personal property will lead to the retention of 10 jobs. This request qualifies Total Quality Machining, Inc. for a 6-year exemption on personal property. Total Quality Machining, lnc.'s current workforce is 10. FINANCIAL IMPACT: The City will capture certain additional property taxes and income taxes generated by the expansion (see attached Summary Sheet). BUDGET ACTION REQUIRED: None STAFF RECOMMENDATION: Approval of the attached resolution granting an Industrial Facilities Exemption Certificate for a term of six (6) years for personal property to Total Quality Machining, Inc. COMMITTEE RECOMMENDATION: None 3/1812004 Resolution No. 2004-37(b) MUSKEGON CITY COMMISSION RESOLUTION APPROVING APPLICATION FOR ISSUANCE OF INDUSTRIAL FACILITIES EXEMPTION CERTIFICATE TOTAL QUALITY MACH/NG, INC. WHEREAS, pursuant to P.A. 198 of 1974 as amended, after duly noticed pubic hearing held on February 23, 1999, this Commission by resolution established an Industrial Development District as requested by Reid Tool Supply Company, 2265 Black Creek Road, Muskegon, Michigan 49444; and WHEREAS, Total Quality Machining, Inc. has filed an application for the issuance of an Industrial Facilities Tax Exemption Certificate with respect to new machinery and equipment to be installed within said Industrial Development District; and WHEREAS, before acting on said application the Muskegon City Commission held a public hearing on April 13, 2004, at the Muskegon City Hall in Muskegon, Michigan at5:30 p.m. atwhich hearing the applicant, the assessor and representatives of the affected taxing units were given written notice and were afforded an opportunity to be heard on said application; and WHEREAS, the installation of machinery and equipment had not begun earlier than six (6) months before March 15, 2004, the date of the acceptance of the application for the issuance of an Industrial Facilities Tax Exemption Certificate; and WHEREAS, the installation of machinery and equipment is calculated to and will have the reasonable likelihood to retain, create, or prevent the loss of employment in Muskegon, Michigan; and WHEREAS, the aggregate SEV of real property exempt from ad valorem taxes within the City of Muskegon, will not exceed 5% of an amount equal to the sum of the SEV of the unit, plus the SEV of personal and real property thus exempted. NOW, THEREFORE, BE IT RESOLVED by the Muskegon City Commission of the City of Muskegon, Michigan that: 1) The Muskegon City Commission finds and determines that the Certificate considered together with the aggregate amount of certificates previously granted and currently in force under Act No. 198 of the Public Act of 1974 as amended and Act No. 255 of the Public Acts of 1978 as amended shall not have the effect of substantially impeding the operation of the City of Muskegon or impairing the financial soundness of a taxing unit which levies ad valorem property taxes in the City of Muskegon. 2) The application a/Total Quality Machining, Inc., for the issuance of an Industrial Facilities Tax Exemption Certificate with respect to installation of new machinery and equipment on the following described parcel of real property situated within the City of Muskegon to wit: CITY OF MUSKEGON PORT CITY INDUSTRIAL CENTER NO 4 LOTS 39 & 40 3) The Industrial Facilities Tax Exemption Certificate is issued and shall be and remain in force and effect for a period of six (6) years on personal property. 2004-37(b) Adopted this 13v, Day of April 2004 Ayes: Warmington, Carter, Davis, Gawron, Larson, Shepherd, Spataro Nays: None Absent: None BY: ATTEST: I hereby certify that the foregoing constitutes a true and complete copy of a resolution adopted by the Muskegon City Commission, County of Muskegon, Michigan, at a regular meeting hel_d o April I 3, 2004. Date I O \ 6103 Bill of Lading No. 13 2 2 3 9 Truck No. Load No. Trailer No. _ _ _ _ _ _ __ STRAIGHT BILL OF LADING ORIGINAL -- NOT NEGOTfABLE CARRIER Bennett Motor Express. Inc., (SC:AC) BGME US DOT No. 092693 lOOrindustrial Pn!'kway, 1'.O. Box 569. McDonough, GA 30253 MC-lCC 129712 FRpM: Shipj)ei Address (Origin) . TO: *Con_s}gnceAddress O)estination) NS v\.hre-hw ~ 10-t'o..,\ Ou.a.J 17c1 E' I i z.aJo e¼ 5'6 ~rot\+ '2:,'T. rz_1._Z..1.L:, 0 I¼ o 'j::F' 'f,li -z_a,be#i, N0 0--rzh (p M U5!. \(;qp11 t rY) i o/1 lf44 Nlaiio q /'.) 6-0 ~2l8~h;nmene. /he'"~~. :.::=::~ ,o,,,;~-:.~, 7 7 (,;, IB 2.$ RECEIVED the p1openy dc:~ribr.lf below, in .uppnrcllt good order, ext.:ept a.~ noted (content!; .tml c_on.dltioru,: of coment~ of J)3Cktige:; unknown) marked, conhigned, .ind d~tincd as ah own above, which 11;1id t."ilrri.i:r (th~ won.I carrier bting underslOOtl'thnmghoui the COll!t'.ict n;; ri1ean.ing uny pe1'$0n or corporalion in possession of the propcrzy undet the ·contract) Ugrcc.!: ·to carry to it~ u~tia.l pla.oo of ddivery 'at s.UU tJe;i;tination, if on it:: ro\:itt:; othc-rvijse tlt:livcr to another carrit:r on the route io said clesdnation. It is :mutILiJly a..._ii:n:e~; a~'IO l'~Ch carrier Or all or .any of said property over all or ,1ny ponior\ tif :;aid l'Oute to' dest..in:U:ion; und .a.~ 10 each ps.ny at . ., ·'. '''':tf·/ :''.'';"''.<:?:::'.::j:;,1!,j ~f'"' ::,,;ci :fM~]fff''~l];;''""l':"'' :;: . . :: ,. . ;;: ~ 2.4 bft N~' 77C.€ !Z.fltiJ~-~ .. Addres·s~ ADDRESS:· ~ wt.vsr- ~a1Je1/Z.. ei4iv\ -~ 'Zip: , "TFKlt'Lt • '1- Io - ti .3 No. Description -.WeJght Rate Miles Total C,0,D. FEE PREPAID COLLECT C.O.D. AMT:'$ $ $ Subj~t to Section 7 of conditions !f the .~hinment is to be delivered 10 the co11Ji81,ei: wi!hout rccour.~i: 011 the co11t.iinor, the con~it,nur :;h11ll .~lgfl the followin_g :.ra~menl Toe_ can:ie\'·sb1\l1 npt make delivl!ry of tlut. shipment w.ithout p3ymen1 o/ frclght l'!,l\(i alf other ls.wful .¢h , 2004 by Stephen Wannington, Mayor, and Gail Kundinger, City Clerk, of the City of Muskegon. ~ L,.,.,t:f.,. s. 4,.f-~r -~ , Notary Public __,,/,~?..,/_,,u,.,s~k.u.;-f::;"J"'.JZ="-'-,,-'------ County, Michigan My commission expires: _.,_9_-_,.,.;3""'0'--_,,0'--'~"---- Prepared by: David W. Charron Charron & Hanisch, PLC 5242 Plainfield Avenue NE Grand Rapids, MI 49525 Date: March 31, 2004 To: Honorable Mayor and City Commissioners From: Ric Scott RE: Hartshorn Marina Proposals SUMMARY OF REQUEST: To authorize staff to negotiate a contract with Westrec Management, Inc. to manage Hartshorn Marina and other marina properties beginning in 2005 FINANCIAL IMPACT: Unknown BUDGET ACTION REQUIRED: None STAFF RECOMMENDATION: Approve COMMITTEE RECOMMENDATION: Date: March 31, 2004 To: Honorable Mayor and City Commissioners From: Ric Scott Re: Hartshorn Marina Proposals On February 2, 2004, three proposals were received for the contracting out of Hartshorn Marina. Two proposals were received before the 2:00 opening and one proposal (Westrec) was received just after 2:00 as the overnight company delivered it late. After a review of the proposals, staff is recommending that you reject all proposals, but authorize staff to enter into negotiations with Westrec for a contract to operate the marina and other facilities for the 2005 season. Westrec manages the City of Chicago's marinas and would like to better evaluate this seasons operations before committing to a contract for 2005. Any proposed contract will also need the approval of the Waterways Commission of the DNR. I would ask that you authorize staff to negotiate a contract for contracting out the marina operations for 2005. The contract would be brought back for your approval. Thank you for your consideration. Q, Commission Meeting Date: Date: April 1, 2004 /(~ jJ~ / / To: Honorable Mayor & City Commission It ~ V\ From: Planning & Economic Development Department cfb{.,, RE: Request for Extension of Deadlines for Former Lakos Property SUMMARY OF REQUEST: On February 8, 2000, the City of Muskegon and Desiree Enterprises (Holiday Inn) entered into a "Real Estate Agreement" for the sale of the former Lakos property. At that time, the owners were required to construct a building on the premises within 18 months of closing. On January 22, 2002, an "Amendment Agreement" was entered into between the parties, which allowed for the buyer to construct a parking lot on the premises by May 31, 2002 (which was accomplished), to provide a written schedule of the construction activities to the City by January 15, 2003 (which has not occurred) and to complete the improvements by January 15, 2005. The City has requested the construction schedule from the buyer. However, the purchaser has submitted a letter requesting another time extension (the most recent letter from Mr. Elkhouly requests a 10-12 month extension- see letters attached). Since no schedule or building plans have been forthcoming, and due to the fact that the "Amendment" has been violated, staff is recommending the City proceed with a reversion of the property back to the City. FINANCIAL IMPACT: The City will have an additional piece of property that can be sold for future development. BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: To deny the request to extend the deadline for the "Amendment" and to proceed with legal action to cause the property to be reverted to the City of Muskegon. However, if the City Commission would prefer that an extension be granted, staff recommends that the Commission refer the item back to staff to negotiate with the purchaser for acceptable terms. COMMITTEE RECOMMENDATION: None. APR. 2.2004 11:11AM HOLIDAY INN MUSKEGON N0.547 P,2/2 -1!' -\l~ ~Y\J\: MuskeGoN 4) H<\.Rl30lt April 2, 200!t Caihy Brubaker-Clarke Community and Encomil!Bts Development City of Muskegon 933 Terrace Street POBOXS36 Muskegon, MI 49443 Re: Desiree Enk:rpriaes, Inc Dear Mrs. Brubaker,,Clarke, Oil beh1ilf of Desiree Enterprises, Inc we would like to itiquest an eicoonsion on the construction for the funner Lekoa Property. We are BSklng fur a 10-12 month i:=KtenSion because we need to be prepared fur the upcoming doWQto\W. development, This will help us decide on what will be most beneficial for Desiree Elltaprises Inc, to decide on what to lllllke oftllis property fur our community and our investment. Also due 1n the diftlcu1t time in 011r cocniomy this will make us more efficient to be prepared fur the development Demr:eeF.ttterpriSl!!IJno, will have, asp!!cifioplan to llbowwhlli. Will beplanr!!,d fur1bls property and this plan will be completed by the end of October 2004. The cons1ruotion fur this property y,i]J start by the end ofMiirch 2005, We would appreciate the understanding and support in this situatiOIL Please 1Bke this request into consideratlon due to the fiwt that we are looking forward to the growth in our community and to make the best of dmwtawn Muskegon. Oftlllll! Elldiouly, CHA General ~/Owner HQl.!!ley Inn M;l.l$.,SQn lffllpqr 939 Tu,tttt Snu~m • MuskeGON, M1cbUifAN 49440•1191" TeL&Pl:>ON~ 1616' ru-o,oo • FA.lC Hms• 122--s11a ... 't,J A & M HOSPITALllY AND MANAGEMENT, INC. 24 725 Greenfield Road Southfield, Ml 48075 AKRAM G. NAMOU Direct Dial 248.557.9030 President Fax: 248.557.05 13 ' March 5, 2004 , '.. ,,. 1, r Cathy Brubaker-Clarke Director of Community & Economic Development City of Muskegon 933 ·rerrace Street, P.O. Box 536 Muskegon, MI 49443-0536 RE: Former Lakos Property adjacent to Holiday Inn. Dear Ms Brubaker-Clare, Thank you for your letter of February 11, 2004 with respect to the above property. The past tlu·ee years have flown by. We are excited about improving the propetiy, and look forward to working with you. With this in mind, the past three years have seen an economy that has made working in the Hospitality Industry very difficult. Since 911, like other Hotels throughout the country, the Holiday Inn has suffered a sharp drop in occupancy levels. We have put substantial investment into the Holiday Inn and in spite of the troubled economy we are committed to riding out these difficult times. I'm sure that you have a front row seat to view the many challenges faced by the entire city of Muskegon in this business enviromnent. As a result, financing new construction has become a very arduous task. In spite of these factors. we believe that there is still potential for developing this property, but believe that the timing could be improved by delaying the project. For these reasons we would ask for your consideration for a reasonable extension of the deadlines in the purchase agreement, perhaps for up to three years. Please give me a call so that we can discuss the arrangements necessary to this project. Your consideration is greatly appreciated. Si, cercly, ~ Alt~ ~ou President REAL ESTATE PURCHASE AGREEMENT THIS AGREEMENT is made i;-._,.,..__..,.__..., ~ , 2000, by and between CITY OF MUSKEGON, a municipal corporation, with offices at 933 Terrace, Muskegon, Michigan 49440 ("Seller"), and MUSlffiCON ~IIGH'FS, INC., of 939 Third Street, Muskegon, Michigan 49440 ("Buyer"). -.D~ ~"L-"L ~?'(Z.I."!.L 5 , .:c.r-l<... 1. General Agreement and Description of Premises. Seller agrees to sell, and Buyer agrees to buy, marketable record title of 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, the real property commonly known as 428 W. Western Avenue, Muskegon, Michigan ("Premises"), and specifically described as: Lot 8, EXCEPT the Easterly four inches thereof, and all of Lots 9, 10 and 11; also Lot 12, EXCEPT the Southwesterly 6/1 0ths of a foot, of Block 566 of the Revised Plat of the City of Muskegon. Subject to the reservations, restrictions and easements ofrecord, 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 Thirty Five Thousand Dollars ($35,000), payable as follows: Fifteen Thousand Dollars ($15,000) shall be paid to Buyer in certified funds at closing; The balance of Twenty Thousand Dollars ($20,000) shall be paid in two payments of Ten Thousand Dollars ($10,000) each, on the anniversary date and the second anniversary date of the closing. Balances due from time to time shall accrue interest, compounded monthly, at 6% per annum. Buyer shall execute a Land Contract in the form attached to this Agreement reflecting the said payment arrangement (Exhibit A). The Land Contract shall carry the conditions and indemnity provisions set forth in this Agreement. 3. Taxes and Assessments. All taxes and assessments which are due and payable at the time of Closing shall be paid by Seller prior to or at Closing. All taxes and special assessments which become due and payable after Closing shall be the responsibility of Buyer. 4. Title Insurance. Seller agrees to deliver to Buyer's attorney, ten (10) days prior to closing, a commitment for title insurance, issued by Transnation Title Insurance 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 G:\COMMON\5\GTJ\C-RLESnLAKOS3.PA - 1- 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 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 owners title policy shall be paid by Buyer. 5. Personal Property and Fixtures. All personal property and fixtures which Seller wishes to remove shall be removed on or before Closing. The parties are aware that Buyer intends to demolish the building. Any personal property which is left on the Premises shall be the property of Buyer who may dispose of same. 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 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 Agreement, and paying the cost of such survey. Buyer may elect to purchase the Premises subject to said encroachment or variation. 7. Environmental Matters. Seller represents and warrants to Purchaser as follows: a. To the best of Seller's knowledge, the Premises have been used and operated in compliance with all applicable federal, state and local laws and regulations related to air quality, water quality, waste disposal or management, hazardous or toxic substances, and the protection of health and the environment. b. Seller has not disposed of any hazardous or toxic substances on or in the Premises and, to the best of Seller's knowledge, the Premises and the groundwater beneath the Premises is free from environmental contamination of any kind. c. The Premises does not include any "underground storage tank," as that term is defined by state or federal law. Such representations and warranties shall be deemed to have been made again by Seller as of the Closing. The representations, warranties and covenants set forth in this paragraph shall survive the Closing. 8. 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 WAIVES ANY AND ALL G:\COMMON\5\GTJ\C-RLEST\LAK0S3.PA -2- 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, ALSO SUBJECT TO THE WARRANTY OF BUYER THAT NO HAZARDOUS SUBSTANCES HAVE BEEN PLACED ON THE PREMISES BY THE SELLER. BUYER FURTHER SAYS THAT IT 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. BUYER FURTHER AGREES TO INDEMNIFY AND HOLD THE SELLER HARMLESS FOR ALL COSTS, ATTORNEY FEES, FINES, PENALTIES OR OTHER EXPENSES WHICH MAY BE SOUGHT FROM SELLER BY REASON OF THE ENVIRONMENTAL CONDITION OF THE PREMISES. BUYER ACKNOWLEDGES THAT THE SELLER HAS NOT PHYSICALLY OCCUPIED, USED, MAINTAINED OR IMPROVED THE PREMISES SINCE IT RECEIVED THE TITLE IN EXCHANGE FOR A DEBT DUE IT FROM BUYER'S PREDECESSORS FAR IN EXCESS OF THE MARKET VALUE OF THE PREMISES. BUYER FURTHER ACKNOWLEDGES THAT THE SELLER IS CONVEYING THE PREMISES FOR A PRICE SUBSTANTIALLY LESS THAN THE APPRAISED VALUE, AND THE AGREEMENT TO INDEMNIFY AND HOLD SELLER HARMLESS, TOGETHER WITH OTHER AGREEMENTS FOUND IN THIS CONTRACT, IS PART OF THE CONSIDERATION AS A RESULT. 9. Condition: To Construct Improvements. Buyer acknowledges that, as part of the consideration inuring to the City, and as a condition of this sale, Buyer shall construct on the premises a building and all improvements within eighteen (18) months of the closing of this transaction. The building and all improvements shall be qualified for the issuance by the City of a Certificate of Occupancy or Compliance by that time and, in the event that has not occurred, the property and all improvements then installed shall revert in title to the City, without any compensation or credit to Buyer. In the event the said completion date cannot be met by Buyer for reasons beyond the control of Buyer, such as environmental or governmental regulatory orders which actually delay construction (not caused by buyer), Buyer may request, in writing, at least thirty (30), but no more than sixty (60), days before the end of the said eighteen month period, an extension oftime for said completion, giving the reasons therefor and seeking an extension for no longer than 12 additional months, (for a total ofno more than 30 months). The city shall not unreasonably refuse the request. The covenants in this paragraph shall survive the closing and run with the land. As further condition of this Agreement, and subject to the reversion above, Buyer shall construct the said building and all improvements having the following structural and appearance characteristics: 9.1 The building shall have a height equal to the prevailing height of neighboring buildings, to be at least twenty feet at the front building line. , G:\COMMON\5\GT J\C-RLES1'LAKOS3.PA -3- .- 9 .2 The building shall have a front building line at the same depth as neighboring buildings. 9 .3 The building presently on the premises shall be demolished and legally disposed of within 150 days after the closing. 10.. Real Estate Commission. Buyer and Seller both acknowledge and agree that neither has dealt with any real estate agents, brokers or salespersons regarding this sale, and that no agent, broker, salesperson or other party is entitled to a real estate commission upon the closing of this sale. Buyer and Seller both agree to indemnify and hold the other harmless from any liability, including reasonable attorney fees, occasioned by reason of any person or entity asserting a claim for a real estate commission arising from actions taken by the other party. 11. Closing. The closing date of this sale shall be on or before - - - - - ~ 2000 ("Closing"). The Closing shall be conducted at the closing office of Transnation Title Insurance Company in Muskegon, Michigan. If necessary, the parties shall execute an IRS closing report at the Closing. 12. Delivery of Land Contract. Seller shall execute and deliver the Land Contract (Exhibit A) to Buyer at Closing. 13. Date of Possession. Possession of Premises is to be delivered to Buyer by Seller on the date of Closing. 14. Costs. Seller shall be responsible to pay the Michigan transfer tax in the amount required by law. Seller shall be responsible to pay for the recording of any instrument which must be recorded to clear title to the extent required by this Agreement. Buyer shall pay for the cost ofrecording the warranty deed to be delivered at Closing, and, as stated above, the title insurance premium. 15. 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. G:\COMMON\5\GT J\C-RLEST\LAK0S3.PA -4- e. Successors. All tenns 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 and continue until all liabilities of Buyer have been fully satisfied. h. Modification of the Agreement; No other Agreement. This Agreement and the Land Contract shall not be amended except by a writing signed by Seller and Buyer. There is no other agreement, express or implied, between the parties except this one and the Land Contract which will be signed at closing. The parties have executed this Real Estate Purchase Agreement the day and year first above written. WITNESSES: SELLER: CITY OF MUSKEGON By~~./)~ Fred~en,May r By~O. Gail A. Kundinger, Clerk TID No. _ _ _ _ _ _ _ _ _ _ __ Drafted by: Business Address: PARMENTER O'TOOLE 175 W. Apple Avenue, P.O. Box 786 BY: G. Thomas Johnson Muskegon, Michigan 49443-0786 G:\COMMON\5\GTJ\C-RLEST\LAKOS3.PA -5- AMENDMENT AGREEMENT 2002-11 (a) THIS AGREEMENT is made, effective January 22, 2002 by and between the CITY OF MUSKEGON, a municipal corporation, with offices at 933 Terrace Street, Muskegon, Michigan 49440 ("Seller"), and DESIREE ENTERPRISES, INC. of939 Third Street, Muskegon, Michigan 49440 ("Buyer"). This agreement constitutes an amendment to a certain Real Estate Purchase Agreement between the parties dated February 8, 2000, and a Land Contract between the parties dated March I, 2000, a memorandum of which was recorded on March 6, 2000, at Liber 3020 Page817, Muskegon County Register of Deeds. In all other respects the said agreements shall remain in full force and effect. I. Extension of Time for Completion of Improvements. The Buyer shall have an extended period of time within which to construct the improvements contemplated by Section 9 of the Real Estate Purchase Agreement, so that the time for completion shall now be January 15, 2005, or if the parking lot is not completed by the date set forth below (May 31, 2002), then January 15, 2003. This extension is made on the following conditions. The failure of the Buyer to observe any one of these conditions shall result in immediate reversion of the property to Seller as set forth in paragraph 9 of the Real Estate Purchase Agreement and further in this agreement: 1.1 The Buyer shall construct a parking lot on the premises, which shall be completed, including paving and striping, pursuant to plans which must be approved by the City (Engineering Department), completion of construction to be accomplished by May 31, 2002. By the said date, the parking area shall be constructed and operated, in addition, according to the provisions following: 1.2 The parking lot shall be landscaped in compliance with a landscaping plan to be submitted to and approved by the City (Planning Department). 1.3 All zoning ordinance requirements, including variances, if granted, shall be complied with, including without limitation landscaping, setbacks, layout, lighting, and any other site plan requirements. 1.4 The entrance(s) and exit(s) for the parking area shall be on the alley. C:\WINDOWS\TEMP\Lakos.Amendment 3.doc 1.5 Maintenance, repairs and cle:ming shall be the responsibility of the Buyer or its successors or assigns. 1.6 All improvements of the parking area shall be completed and approved by the City on or before May 31, 2002. 1.7 In the event the parking area is not thus completed by May 31, 2002, the property shall revert to the City, unless the Buyer fills the property with three inches of topsoil and seeds the property for ground cover acceptable to the City by June 30, 2002, and files with the City on June 30, 2002, its plan and timetable for completion, by January 15, 2003, of all buildings and improvements. (In that event, the existing fence shall be removed from its current location to the rear of the property so that it screens the rear delivery and dumpster areas of the hotel by June 30, 2002. If it continues to be necessary or appropriate to maintain an existing fence on the front of the property, the said existing fence shall be continued in addition to a new rear screening fence. The City shall determine whether the front fence shall be continued in place). 1.8 If the parking Jot is completed by May 31, 2002, the Buyer shall deposit with the City a written schedule of the construction activities and completion of buildings and structures appropriate for commercial uses permitted on the property, the said schedule to be filed with the City no later than January 15, 2003. Completion of the said improvements shall be accomplished by January I 5, 2005, and the schedule shall so require. 1.9 Reversion. Continuance of mere parking lot usage or the vacant condition after seeding without timely submitting the appropriate plan above, or if submitted, without timely completion, (January 15, 2003 or 2005), shall result in reversion to the City. Reversion to the City shall mean that without any further action by the City, the entire title to the property shall pass to the City without compensation to Buyer for the improvements or partial improvements made, including without limitation all parking, lighting, landscaping, infrastructure, ground cover, seeding, planting, fences or other installations, or for any expense of any kind. This reversion right of the City is supported by consideration, reflected in the original purchase price. This reversion right survives delivery of a deed pursuant to the Land Contract. 2. Recording and Enforcement. The provisions of this agreement shall constitute amendments to the Land Contract at paragraph 19 thereof, and the incorporated Real Estate Purchase Agreement at paragraph 9 thereof. This agreement may be recorded, and shall constitute record evidence of the City's right to reversion and enforcement of the agreement. The legal description of the property is: C:\WINDOWS\TEMP\Lakos.Amendmenl 3.doc 2 Lot 8, EXCEPT the Easterly four inches thereof, and all of Lots 9, IO and 11; also Lot 12, EXCEPT the Southwesterly 6/1 0ths of a foot, of Block 566 of the Revised Plat of the City of Muskegon. 3. In all other respects the agreements between the parties shall remain in full force and effect. It is binding on the parties and their successors and assigns. WITNESSES: SELLER: CITY OF MUSKEGON BUYER: DESIREE ENTERPRISES, INC .. By_ _ _ _ _ _ _ _ _ _ _ __ Its - - - - - - STATE OF MICHIGAN COUNTY OF MUSK.EGON The foregoing instrument was acknowledged before me this~ day of Jc;nvqr:.v 2002 by Steve Warmington and Gail A. Kundinger, Mayor and Clerk respectively, for and~n behalf of the City of Muskegon. , q;/,;riM ss'.2. £& , .¼- Z,,c, .S lbrl,,-,,~ , Notary Public Muskegon County, Michigan My commission expires: 5'-,,.7.,-::.o.,.;z_ C:\WINDOWS\TEMP\Lak.os.Amendment 3.doc 3 STATE OF MICHIGAN COUNTY OF MUSKEGON The foregoing instrument was acknowledged before me this _ _ day of _ _ _ __ 2002 by _ _ _ _ _ _ _ _ _ _ _ _ _ _, for and on behalf of Desiree Enterprises, Inc., Inc. , Notary Public Muskegon County, Michigan My commission expires: _ _ _ _ _ __ Drafted by and return to: Business Address: PARMENTER O'TOOLE 175 W. Apple Avenue, P.O. Box 786 BY: G. Thomas Johnson Muskegon, Michigan 49443-0786 C:\WINDOWS\TEMP\Lakos.Amendment 3.doc 4 Commission Meeting Date: April 13, 2004 Date: April6,2004 To: Honorable Mayor & City Commission From: Community and Neighborhood Services Department RE: Purchase of 265 Walton SUMMARY OF REQUEST: To approve the purchase of the property located at 265 Walton (City of Muskegon revised Plc!t ofJ 903 Lot 6 Block 199 also easterly ½ vacated Rathborne Stree(Th' toJ)rom Mrs. Roxie Murray 2221 Riverview Inkster, Ml. 48141 ("Seller')· After approval of the purchase by the Commission the CNS department will combine this property with property already obtained by the City of Muskegon through the tax reversion process. In order that the City will have the required land to complete the proposed future housing development project south of the Farmers Market area. FINANCIAL IMPACT: Funding for purchase, will come from the City's 2001 HOME funding. BUDGET ACTION REQUIRED: None STAFF RECOMMENDATION: To approve the request and instruct the Mayor and City Clerk to sign the Purchase agreement COMMITTEE RECOMMENDATION: None REAL ESTA TE PURCHASE AGREEMENT 2004-39(d) THIS AGREEMENT is effective Apr i 1 13 , 2004, by and between Mrs Roxie Murray 2221 Riverview Inkster, MI., 48141 ("Seller") and the CITY OF MUSKEGON, a municipal corporation, with offices at 933 Terrace Street, Muskegon, Michigan 49440 ("Buyer"), 1. General Agreement and Description of Premises. Seller agrees to sell, and Buyer agrees to buy, marketable record title ofreal estate, and all improvements thereon, with all beneficial easements, and with all of Seller's right, title and interest in all adjoining public ways, the real property located at 265 E. Walton in the City of Muskegon, Muskegon County, Michigan ("Premises"), and specifically described as: [City of Muskegon Revised Plat 1903 Lot 6 Block 199 also easternly ½ vacated Rathborne Street Th' To] 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. Consideration and Manner of Payment. In exchange for a warranty deed from Seller to Buyer, Buyer shall pay $5000.00 at closing and shall take the property 3. Taxes and Assessments. All taxes and assessments which are due and payable at the time of Closing shall be paid by Seller prior to or at Closing. All taxes and special assessments which become due and payable after Closing shall be the responsibility of Buyer. 4. Title Insurance. Buyer shall obtain a commitment for title insurance issued by Transnation Title Insurance 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 are, in the sole discretion of Buyer, deemed unreasonable, Seller shall have thirty (30) 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 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 owners title policy shall be paid by Seller. 5. 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 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 agreement, and paying the cost of such survey. Buyer may elect to purchase the Premises subject to said encroachment or variation. 6. Personal Property Fixtures. All personal property and fixtures, which seller wishes to remove, shall be removed on or before Closing. Any personal property left on the Premises has be the property of Buyer, who may dispose of same. 7. Environmental Matters. Seller represents and warrants to Buyer that Seller has not disposed of any hazardous or toxic substances on or in the Premises. Such representation and warranty shall be deemed to have been made again by Seller as of the Closing. Seller agrees to indemnify Buyer and hold it harmless from and against any and all claims, demands liabilities, costs, expenses, penalties, damages, and losses, including, but not limited to, reasonable attorneys' fees, resulting from any misrepresentation or breach of the warranty set for the in this paragraph, which representation and warranty shall survive the Closing. 8. Condition of Premises and Examination by Buyer. NO IMPLIED WARRANTIES OF HABIT ABILITY, QUALITY, CONDITION, FITNESS FOR APARTICULAR PURPOSE, OR ANY OTHER IMPLIED WARRANTIES SHALL OPERA TE BETWEEN SELLER AND BUYER, AND BUYER EXPRESSLY WAIVES 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 AGREEMENT, ALSO SUBJECT TO THE WARRANTY OF SELLER THAT NO HAZARDOUS SUBSTANCES HAVE BEEN PLACED ON THE PREMISES AND IS SATISFIED WITH THE CONDITION OF THE LAND, AND THE BUILDINGS AND IMPROVEMENTS THEREON, AND UNDERSTANDS 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, EXCEPT FOR EXPRESS WARRANTIES. 9. Real Estate Commission. Buyer and Seller both acknowledge and agree that neither has dealt with any real estate agents, brokers or salespersons regarding this sale, and that no agent, broker, salesperson or other party is entitled to a real estate commission upon the closing of this sale. Buyer and Seller both agree to indemnify and hold the other harmless from any liability, including reasonable attorney fees, occasioned by reason of any person or entity asserting a claim for a real estate commission arising from actions taken by the other party. 10. Closing. The closing date of this sale shall be on or before 30 days following the effective date of this Agreement ("Closing"). The Closing shall be conducted at the closing facilities ofTransnation Title Insurance 570 Seminole Road, Ste. 102, Muskegon, MI 49444 or at such other place as may be mutually agreed upon between the parties. 11. Delivery of Deed. Seller shall execute and deliver a warranty deed to Buyer at Closing for the Premises. 12. Affidavit of Title. At the Closing, Seller shall deliver to Buyer an executed Affidavit of Title. 13. Date of Possession. Possession of Premises is to be delivered to Buyer by Seller on the date of Closing. The parties have executed this Real Estate Pw·chase Agreement the day and year first above written. WITNESSES: SELLER: BUYER: City of Muskegon Gail A. Kundinger, MMC City Clerk Drafted by: Business Address: City of Muskegon 933 Ten-ace St., PO Box 536 Community and Neighborhood Services Muskegon, Michigan 49443-0536 CIGGZREE'S APPRAISAL SERVICE 2528 PECK ST. MUSKEGON HTS., Ml 49444 Ffa ~- L1M-265 WAL TON APPRAISAL OF LOCATED AT: 265 E. WALTON AVE. MUSKEGON, Ml 49442-3281 FOR: CITY OF MUSKEGON 933 TERRACE STREET MUSKEGON, Ml 49441 BORROWER: NIA ASOF: March 22, 2004 BY: WILLIAM W. BROOKSHIRE STATE LICENSED APPRAISER TELEPHONE (231) 737-8033 FAX (231) 737-9039 E-MAIL ADDRESS ciggzree@yahoo.com CJGGZREE'S APPRAISAL SERVICE LAND APPRAISAL REPORT Filelt> L1M265WALTON Prrvu>.rtuAddress 265E. WALTON AVE. Census Tract 26121-0003.00-4 LENDER DISCRETIOI-UIRY USE t·ni MUSKEGON Countv MUSKEGON Stale Ml ZinCOOe 49442-3281 Sale Price $ Leoc! Oescrilllkln See Attached Addendum Date OM\er/Occtmant ROXIE MURRAY Ma Reference Mortgage Amounl $ Sale Price$ NIA Dale ol Sale NIA Properly Rights Appraised Mortgage Twe ~ Loan charaeslconcessions to be oaid IN seller$ NIA Fee Simple Disrount Porl!s and Other Concessions R.E. Taxes$ 5.34 TaxYear 2003 HOA $/Mo. NIA Leashold Paid by Seller $ leodeJ1aien1 COMMUNITY & NEIGHBORHOOD SERVICES RCondomklium (HUDNA) Source 933 TERRACE STREET MUSKEGON Ml 49441 I: PUD LOCATION BUILT UP ~ X l/rt,~ ~ Over75% -- Suburban 25,75% Rural 1Jnder2S% NEIGHBORHOOD ANALYSIS Employment Slalii"ty Cmd A,g. ~' "' ,. Osrow B~B~ "'" )( S!ab!e GROWTH RATE ConYMience lo EmplOJ111Cnl ,. ~ O&lioiog i~~ PROPERTY VALUES Ina-easing )( Slable Convenience lo Shopping DEMAND/SUPPLY ,. Shortage /!, In Balance Over Supply Convenfence lo Schools MARKETING TIME Under 3Mos. X 3-6Mos. Over6Mos. Adequacy of Pub'ic Transporta~on PRESENT LAND USE% Sillge Family 2-4 Family ·• MJIHarrily ~ ll of p,opel1,e> mo>I >,mi liar and p101ima10 10 su1Jje<1 and has considered 1hese ,n lhe math I analy,i>. The dosc,ipl1on include, a dollar adjus1mea1. ,ell,cHng mark•I rea • ilem, o! »gnihcanl ,a,,alion bel,.een n,e subject and comparable properties. U • > 1men1" made. Hais tedu lmen! "made, thus oncru,;ng the rndicaled value o! lhe sul>jacl. ITEM SUBJECT COMPARABLE NO. 1 COMPARABLE NO. 2 COMPARABLE NO. J 265 E. WALTON 1871 SANFORD AVE. 1840 NEVADA ST. 159 W. SOUTHERN AVE. Address MUSKEGON MUSKEGON MUSKEGON MUSKEGON to Sub"'ct 1.4 MILES.W. 2.3 MILES.E. 1 .0 MILE S.W. ""'' Safes Price Pnce/ NIA $ $ NIA 1Zl$ $ 5000!2l 5000 $ $ 5500tll 5 500 $ $ 5000!2'.I 5000 Oa!a Soo1ce INSPECT!ON MLS# 2105991 DOM 826 MLS#2318607 DOM 087 MLS# 2256939 DOM 032 VALUE ADJUSTMENTS OESCRiPT!ON DESCRIPTION I ,()IA~·· """1C DESCRIPTION I •mA ·•""'ll DESCRIPTION I +(-JIA~ mm:t Safes or Finaocirlg CASH CASH CASH Concessions NONE NONE NONE Date of Sale/Time NIA 06/27/03 : 08/22/03 : 12110/02 : location URBAN AVG URBAN GD' -1 500 URBAN GD• -1 500 URBAN GD' -1 500 Si!eMew RESIDENTIAL RESIDENTIAL : RESIDENTIAL : RESIDENTIAL : LOT S!ZE 99'X132' 50'X 125' : 1 200 60' X 125' : 1.000 50' X 125' : 1 200 IMPROVEMENTS NOMINAL NOMINAL NOMINAL : NOMINAL : : : ~Adi. ~otan I, IXI- is 300 I I, : IXI. 500 IXL !$ ,, : 300 ,. : Indicated Value Gmss: Gross; 45.51 Gross: 54.~I 54.~I of Sobiact Nel: -6.0 $ 4 700 Nel: -9.1 $ 5,000 Net: -6.0 $ 4,700 Comments of Sales CllTipilliSO!l: THE SELECTED COMPARABLES ARE THE MOST REPRESENTATIVE UNITS THAT ARE CURRENTLY AVAILABLE. THE LOTS WERE EXPOSED FOR SALE ON THE OPEN MARKET. THE COMPS ARE IN SUPERIOR LOCATIONS, THUS LOCATION ADJUSTMENTS. THE COMPARABLE$ WERE All GIVEN DUE CONSIDERATION IN ESTABLISHING THE COMPARATIVE MARKET VALUE OF THE SUBJECT PROPERTY. Comments and Conditioos of Appraisal: NONE NOTED Final Reconcilialioo: THE SALES COMPARISON APPROACH IS CONSIDERED AS THE MOST RELIABLE METHOD IN APPRAISING VACANT LAND. THE VACANT LOT AS SUCH HAS NO IMPROVEMENT COSTS NOR DOES IT GENERATE REVENUE OR INCOME THEREFORE THE INCOME APPROACH WOULD NOT BE FEASIBLE. l{WE) ESTIMATETHEMARKETVALUE.ASDEFINED,OFTHESUBJECT PROPERTY ASOF March 22 2004 to be$ 5000 I (We) certify: that lo the best of my (our) knowlP.dge and belief, the fact'> and dala used herein are Irue and correct; that I (we) peisooally inspected the subject property and inspected all comparable sales cited in this report; and Iha! I (we) have no on discloser! inte1est, present or prospective therein. Appraiser(s)~ ~ .J Review Appraiser (~ appficable) •,, •,,,.,, Inspect Property Appraisal Report ADDENDUM Borrower. NIA File No.: L 1 M-265 WAL TON Property Address: 265 E. WALTON AVE. Case No.: City: MUSKEGON S1ale: Ml Zip: 49442-3281 Lender: COMMUNITY & NEIGHBORHOOD SERVICES Legal Description CITY OF MUSKEGON REVISED PLAT OF 1903 LOT 6 BLK 199 ALSO ELY 1/2 VAC ST RATHBORNE ST ADJ THERETO Site Comments THE SUBJECT PROPERTY IS SITUATED ON A HILL TOP WITH AN OVER VIEW OF REYERSON CREEK VALLEY. DIRECTLY BELOW THE S.P. IS THE FARMERS MARKET, A SEASONAL MARKET FOR FRESH PRODUCE AND WEEKLY FLEA MARKETS. THE LOT IS PRESENTLY ACCESSIBLE BYWAY OF RATHBORNE ST. VIA MYRTLE AVE. Add0ndlm Page 1 of 1 SUBJECT PROPERTY PHOTO ADDENDUM Borrower: NIA File No.: L1M~265 WAL TON Property Address:265 E. WALTON AVE. Case No.: City: MUSKEGON State: Ml Zip: 49442-3281 lender: COMMUNITY & NEIGHBORHOOD SERVICES FRONT VIEW OF SUBJECT PROPERTY Appraised Date: March 22, 2004 Appraised Value:$ $5,000 REAR VIEW OF SUBJECT PROPERTY STREET SCENE COMPARABLE PROPERTY PHOTO ADDENDUM Borrower: NIA File No.: L 1M-265 WAL TON PropertyAddress:265 E. WALTON AVE. Case No.: City: MUSKEGON State: Ml Zip: 49442-3281 Lender: COMMUNITY & NEIGHBORHOOD SERVICES COMPARABLE SALE #1 1871 SANFORD AVE. MUSKEGON Sale Date: 06/27 /03 Sale Price: $ 5,000 I. ' COMPARABLE SALE #2 1840 NEVADA ST. MUSKEGON Safe Date: 08/22/03 Sale Price:$ 5,500 COMPARABLE SALE #3 159W. SOUTHERN AVE. MUSKEGON Sale Date: 12/10/02 Sale Price:$ 5,000 FLOORPLAN Booower: NIA Fife No.: L1M-265 WALTON Pro!?!!!i Address:265 E. WALTON AVE. Case No.: City:: MUSKEGON State: Ml Zi!;!:: 49442-3281 Lender: COMMUNITY & NEIGHBORHOOD SERVICES WALTON AVENUE ~ 99.0 \ ~ 13.860 SQUARE FEET q 99.0' Ii; PUBLIC ALLEY w z "'0 ID Sketch by Apex IV Windows'" ~ AREA CALCULATIONS SUMMARY AREA BREAKDOWN C:000 DescripUoo Size Total& 8reakdo111111 Subtotal• -, J.And 13860. 00 13860.00 TOTAL SITE AREA 13860.00 TELEPHONE (231) 737-8033 FAX (231) 737-9039 E-MAIL ADDRESS c1ggzree@yahoo.com LOCATION MAP Borrower: NIA File No.: L 1M-265 WALTON Property Address:265 E. WALTON AVE Case No.; City: MUSKEGON State: Ml Zip: 49442-3281 Lendi,: COMMUNITY & NEIGHBORHOOD SERVICES TELEPHONE (231) 737-8033 FAX {231) 737-9039 E-MAIL ADDRESS clggzree@yahoo.com FLOOD MAP Borrower: NIA Fi!e No.: L 1M-265 WAL TON Property Address: 265 E. WALTON AVE. Case No.: City: MUSKEGON State: Ml Zip: 49442-3281 Lendff: COMMUNITY & NEIGHBORHOOD SERVICES ~-::, Prepared for: Appraisal SeNice MKG InterFlood~ 265 E Walton Ave www.interflood.c.om • 1-8D0-252-6633 Muskegon, Ml 49-442-3281 -,•.n ·, ~11 FLOODSCAPE Ii~ Flood Hazards Map :) i Map Number ii I 2001s1ooorn ii : ( ,I Effective Dote :I ,Ji June 1, 1977 EB '![ For more int,ormati <>dsowct.<::om @ 1999-2002 FloodSource Corp. U.S Patents Pending_ All rights reserved. For more information. please e-ma!l lnfo@?tloodsource.com. TELEPHONE (231) 737-8033 FAX (231) 737-9039 E-MAIL ADDRESS ciggzree@yahoo.com APPRAISER'S LICENSE Borrower: NIA File No.: l 1M-265 WALTON Property Address:265 E. WALTON AVE. Case No.: City: MUSKEGON State: Ml Zip: 49442-3281 Lender: COMMUNITY & NEIGHBORHOOD SERVICES STATE OF MICHIGAN K975537 DEPARTMENT OF CONSUMER & INDUSTRY SERVICES BOARD OF REAL ESTATE APPRAISERS STATE LICENSED APPR~ISER LICENSE William Brookshire 1b9 Iona Ave Muskegon MI 4~442 l>l!S ~O<;~l!Efll rn !>Ill, 1S\'"lV UH~< .,,c,.,c,0>1 TELEPHONE (231) 737-8033 FAX (231) 737-9039 E-MAIL ADDRESS ciggzree@yahoo.com ClGGZREE'S APPRAISAL SERVICE USP AP COMPLIANCE ADDENDUM File No. L 1M-265 WAL TON Bonowcr 0N0/ A ~ ~ = ~ = ~ = ~ ~ ~ - - - - - - - - - - - - - - Order/I --------------------I Property Addre.., 265 E. WALTON AVE. City MUSKEGON County MUSKEGON St1te _M_I__ ZipCode 4~94~4~2~-~3~28~1~-------I 0 Lmdcr/Client COMMUNITY & NEIGHBORHOO~D=s=E"R~V~IC~E"s~-----cClicnt Rcfercnce # On/\' those ilem.< checked@hdnw annlr to tl,i< ri>non. PURPOSE., FUNCTION AND INTENDED USE OF THE APPRAISAL The purpose oft he appraisal is to provide an opinion of market value of the suhjec1 property as defined in this report, on behalf oflhe appraisal company facilitating the assignment for the referenced client as the intended user of the report. The 011/y fonc1ion of tbe appraisal is lo asslst the client mentioned in this report in evaluating the subject property for lending purpo.ses. The ui;e of this arrraL~al by anyone other than the stated intended user, or for any other use than the stated intended use, is prohibited. D The purpo.se oft he apprais,t! is to provide an opinion of market value of the sobje~1 property, ;is defined in this report, on behalf ofthc appraisal company facilitating the as.<.ignment for the referenced client as the intended user ufthis report. The ,rnlJ· function of the appraisal is to assist the dicnt mentioned in this report in evaluating the h'Ubject prop,erty Real Estate Owned (REO) purpo,;es. The m.e of this appraisal by anyone other than the state,J intemle rli/l<'atirm (i.e., Fannie Mae or Freddie Mac), thi.• revl rt w:i., Sigocd: _ _ _ _ _ _ _ _ _ _ _ _ _ __ 0 6=2 0000 04 ~ - - - - - - - - StiteCertific.ition#: _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ ====~------------- Sl:lte Certific:ition#: or St1teLkense#: _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ or State lkm,.e #: 01e2e0,100 00 2e10 70 9 ~ - - - - - - - - - - - - - State: 0M0 1_____________________ St1te: _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ Expiration Date ofCertHiaition or Liccn.<.e: JULY 31, 2005 Expiration Date ofCertifkatitm or Lice~: _ _ _ _ _ _ _ _ _ __ Bo ~::::::~:::: pro~rty Bo ::::re:~::;;ble., I of! fatcrior only Exterior only ...., F~etti. L1M-265WALTON DEFINITION OF MARKET VALUE: The most probable price which a property should bring ln a compe!itive and open market under all conditions requisite to a fair sale, the buyer and seller, each acting prudently, knowledgeably and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer undnr conditions whereby: (1) buyr.r and seller are typically motivated: (2) both parties are well informed or well advised, and each acting in what he considers his own best interest; (3) a reasonable time is allowed for exposure in the open market; (4) payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and (El) the price represents the normal consideration for the property sold unaffected by special or croative financing or sales concessions* granted by anyone associated with the sale. •Adjustments to the comparables must be made for special or creative financing or sales concessions. No adjustments are necessary for those costs which are normally paid by sellers as a result of tradition or law in a market area; these costs are readily identifiable since the seller pays these costs in virtually all sales transactions, Special or creative financing adjustments can be made to Lhe comparablo property by comparisons to financing terms offered by a third party inslitutional lender that is not already involved in the property or transaction. Any adjustment should not be calculated on a mechanical dollar for dollar cost of the financing or concession but the dollar amount of any adjustment should approKimate the market's reaclion to the financing or concessions based on the Appraiser's judgment. ST A TEMENT OF LIMITING CONDITIONS AND APPRAISER'S C ERTi FiCATION CONTINGENT AND LIMITING CONDITIONS: The appraiser's certification that appears in the appraisal report is subject to the following conditions: 1. The appraiser wm not be responsible for matters or a legal nature that affect either the property being appraised or the title to it. Tho appraiser assumes that the title is good and marketable and, thereforn, will not render any opinions aboul the title. The property is appraised on the basis of it being ooder responsible ownership. 2. The appraiser has provided a sketch in the appraisal report to show approximate dimensions of the improvements and the sketch is included only to assist the reader of the report in visualizing the property and understanding the appraiser's determination of iL-; size. 3. The appraiser has examined the available flood maps that are provided by the Federal Emergency Management Agency (or other data sources) and has noted in the appraisal report whether the subject site is located in an identified Special Flood Hazard Area. Because the appraiser is not a surveyor, he or she makes no guarantees, express or implied, regarding this determination. 4. The appraiser will not give testimony or appear in court because he or she made an appraisal of the property in question, unless specific arrangements to do so have been made beforehand. 5. The appraiser has estimated the value of the land in the cost approach at its highest and best use and !he improvements at their contributory value. These separate valuations of the land and improvements must not be used in conjunction with any other appraisal and are invalid if \hey are so used. 6. The appraiser has noted in the appraisal report any adverse conditions (such as, needed repairs, depreciation, the presence of hazardous wastes, toxic substances, etc.) observed during the inspection of the subject property or that he or she became aware of during the normal rnsearch involved in performing the appraisal. Unless otherwise stated in the appraisal report, the appraiser has no knowledge of any hidden or unapparent conditions of !he property or adverse environmental conditions (including the presrmce of hazardous wastes, toxic substances, elc. ) thal would make the property more or less valuable, and has assumed that there are no such conditions and makes no guarantees or warranties, express or implied, regarding the condition of the property. The appraiser will nol be respons!ble for any such conditions that do exist or for any engineering or testing that might be requirnd to discover whether such conditions exist. Because the appraiser is not an expert in the field of environmental hazards, the appraisal report must not be considered as an environmental assessment of the p1operty. 7. The appraiser obtained the information, estimates, and opinions that were expressed in the appraisal report from sources that he or she considers to be reliable and believes them to be true and correct. The appraiser does not assume responsibility for the accuracy of such items that were furnished by othe1 parties. 8. The appraiser will not disclose the contents of the appraisal report except as provided for in the Uniform Standards of Professional Appraisal Practice, 9. The appraiser has based his or her appraisal report and valuation conclusion for an appraisal thal is subject to satisfactory completion, repairs, or alterations on the assumplion that completion of !he improvements will be performed in a workmanlike manne,. 10. The appraiser mus! provide his or her prior written consent before the lender/client specified in the appraisal report can distribute the appraisal report (including conclusions about the property value, the appraiser's identity and professional designations, and references to any professional appraisal organizations or the firm with which tho appraiser is associated) to anyone other than the borrower; the mortgagee or its successors and assigns; the mortgage insurer; consultants; professional 11pprai!ial organizations; any state or federally approved financial institution: or any department, agency, or instrumentalily or the United States or any state or the District of Columbia; except that the lender/client may distribute the property description section of Lhe report only Lo data collection or reporting servicr.(s) without having Lo obtain the appraiser's prior written consent. The appraiser's w1itten consent and approval must also be obtained before the appraisal can be conveyed by anyone lo the public through advertising, public relations, news, sales. or other media. Vacant Land Page 1 of 2 File llkl. L 1M-265 WAL TON APPRAISERS CERTIFICATION: The Appraiser certifies and agrees that: 1. I have researched the subject market area and have selected a minimum of three recent sales of properties most similar and proximate to the subject property for consideration in the sales comparison analysis and have made a dollar adjustment when appropriate to rennet the markf!t reaction to those items of significant variation. If a significant item in a comparable property is superior to, or more favorable than, the subject property, r have made a negative adjustment to reduce the adjusted sales price of lhf! comparable and, if a significant item in a comparable properly is inferior to, or less favorable than the subject property, I have made a positive adjustment to increase the adjusted sales price of the comparabln. 2. I have taken into consideration the factors that have an impact on value in my development of the estimate of market value in the appraisal reporl. 1have not knowingly withhold any significant information from the appraisal report and I believe, to the best of my knowledge, that all statements and information in the appraisal report are true and correct. 3. I staled in the appraisal repoft only my own personal, unbiased, and professional analysis, opinions, and conclusions, which are subject only to the contingent and Limiting Conditions specified in this form. 4. I have no present or prospective interest in the property that is the subject to this report, and I have no present or prospective personal interest or bias with respect to the participants in the transaction. I did not base, either partially or completely, my analysis and/or the estimate of market value in the appraisal report on the race, color, religion, sex, handicap, familial status, or national origin of either the prospective owners or occupants of the subject properly or or the present owners or occupants of the properties in the vicinity of the subject property. 5. I have no present or contemplated future interest in the subject property, and neither my current or future employment nor my compensation for perlrnming this appraisal is contingent on the appraised value of the property. 6. I was not required to report a predetermined value or direction in value that favors the cause of the client or any related party, the amount of the value estimate, the attainment or a specific result, or the occurrence of a subsequent event in order to receive my compensation and/or employment for performing the appraisal. I did not base the appraisal report on a requested minimum valuation, a specific valuation, or the need to apprnve a specific mortgage loan. 7. I performed this appraisal in conformity with the Uniform Standards of Professional Appraisal Practice that were adopted and promulgated by the Appraisal Standards Board of The Appraisal Foundation and that were in place as of the effective date or this appraisal, with !he exception of the departure provision of those Standards, which does not apply. I acknowledge that an estimate of a masonah!e lime for exposure in the open market is a condition in the definition of market value and the estimate I developed is consistent with the malketing time noted in the neighborhood section of this report, unless I have otherwise stated in the reconcrnation section. 8. I have personally inspected the subject property and the exterior of all properties listed as comparables in the appraisal report. I further certify that I have noted any apparent or known adverse conditions in the subject improvements, on the subject site, or on any site within the immediate vicinity of the subject property of which I am aware and have made adjustments for these adverse conditions in my analysis of the property value to the extent that I had market evidence to support them. I have also commented ;ibout the effect of the adverse condiLions on the marketability of the subject property. 9. I personally prepared all conclusions and opinions about the real estate that were set forth in the appraisal report. If I relied on signilicanl professional assistance from any individual or individuals in the performance of the appraisal or the preparation of the appraisal report, l have named such individual(s) and disclosed the specific tasks performed by them in the reconciliation snction of this appraisal report. I certify that any individual so named is qualified to perform the tasks. I have not authorized anyone to make a change to any item in the report; therefOfe, if an unauthorized change is made to the appraisal report, I will take no respoosibility for ii. SUPERVISORY APPRAISER'S CERTIFICATION: If a supervisory appraiser signed the appraisal report, he or she certifies and agrees that: I directly supervise the appraiser who prepared the appraisal report, have reviewed the appralsal report, agree with lhe statements and conclusions of the appraiser, agree to be bound by the appraiser's certifications numbered 4 through 7 above, and am taking luff responsibility for the appraisal and the appraisal report. ADDRESS OF PROPERTY APPRAISED: 265 E. WALTON AVE., MUSKEGON, Ml, 49442-3281 APPRAISER: SUPERVISORY APPRAISER (only ir required) Si!,Jature: ~ ___/~./.,~::; .J Signature: _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ Name: W I ~ ~ Name: Date Signed: MARCH 26, 2004 Date Signed: ~ - - - - - - - - - - - - - - - - - State Certilkation II: State Certification#: _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ OJ State License II: 12°0=1~00=2~1=79~----------- or State License#: _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ State: M 0 cl~-=~~-~--~=~~=--- State:-~--~--------------- Expiration Dale of Ce,tification or License: JULY 31, 2005 Expiration Dale of Certifteation or License: _ _ _ _ _ _ _ __ 0 Did O Did Not Inspect Property STATE LICENSED APPRAISER Vacant land Page2of2 CIGGZREE'S APPRAISAL SERVICE ENVIRONMENTAL COMPLIANCE RECORD SINGLE FAMILY PROPERTY DISPOSITION • FIi No. L 1M 265 WALTON FHA CASE NUMBER: PROPERTY ADDRESS: 265 E. WALTON AVE. MUSKEGON Ml 49442-3281 COMPLIANCE FINDINGS SOURCE/DOCUMENTATION 1. HISTORIC PRESERVATION Property O is {fil is not r1Sted on the National Register of Checked National Register of Historic Places, Historical Places. Property O is IBJ is not localed in an Historical District. Checked National Register of Historical Places. Note: An appropriate deed restriction will be required 17 property meets either of the forgoing conditions. 2. FLOODPLAIN Property O is {fil is not located within the 100-year Panel#: floodplain (Zones A & V). Map#: 2601610001B Note: Flood insurance may be required. Date of Map: 06/01/1977 3. AIRPORT RUNWAY CLEAR ZONES (24 CER 51D) Property O is IB] is not localed withifl boundary of runway zone. Property not within 3,000 !eel of .. ll"yes•, has the airport operator declined to acquire the the runway clear zone. properly? 0 yes noO .. a signed disclaimer is required (24 CFR Part 51 D). 4. SUMMARY are (g] are not required on the basis of the findings above. If additional actions are required, describe Additional actions D them in an attachment. Instructions for Completion of Environmental Clearance Record Environmental Compliance. Single Fam~y Property Disposition is subject to the environmental policy and procedures shown at 24 CFR Part 50, where applicable. An Environmental Compliance Record must be completed for each acquired property prior to listing for sale and !Im results considered in the development of the terms and condition of the sale. The Contractor shall use the format contained in Exhibit 4, Attachment 8-1, for documentation of the review. The compriance record is to be maintained in the individual property rile. Preparing the Compfiance Record. To document !he results or compliance findings, use copies or !Im appropriate floodplain and airport runway maps, and the National Register of His Lorie Places, in order to identify those properties that are subject to these three requiremen!S. Instructions !or completing the compliance findings on the Environmental Compliance Record are: 1. Historic Preservation. The Naliooal Register of Historic Places idP.nlifies specific properties and historic districts which are subject to historic preservation requiremen!S. II a HUD-Owned Property is listed on the register, or the district i1 which it is located is listed, a deed restriction must be prepared. Consult with counsel for appropriate language to be included in the deed. 2. Floodplain. Based on the Boodplain map, properties located in Special Flood Hazard lveas (SFHA) which are being sold with HUD-insured mortgages or with buydowns or cash rebates, are required to have flood insurance. At the lime of assignment of a case to the closing agen~ the dosing agent must be alerted to this requirement and must ensure that Um purchaser obtains 11ood insurance. Such insurance may be purchased from any state licensed agent. If a property is localed in a SFHA in a community which is suspended from or is nol participating in the National Flood Insurance Program, the property must be offered on an uninsured basis and without a buydown or cash rebate. Listing advertisements must disclose such properties. 3. Airport Runway Clear Zones. Based on airport clear zone maps, properties located within the rWNay dear zone must be offered to the airport operator before the public &slilg. Property will be sold to the airport in accordance \Wh !he policy on safes to local governments described in Exhibit 2. A decfsion by the airport operator not to purchase must be documented in the rne, preferably in the form of a leller from the airport operator. lo the absence of such a letter, a note to tho file documenting the verbal response by the airport operator is sufficient. Bidders on properties located in runway dear zones must provide a signed Notice to Prospective Buyers of Properties Located in Runway Clear Zones and Clear Zones (see Exhibit 4, Attachment B-2). In those few jurisclictions which have properties in runway clear zones, Selling Brokers must be provided with copies of this notice and be advised that it must he included when submitting a bid on a property which is located in a runway clear zone. Listing for Salo. Any property .vhich is subject to these historic, Ooodplain, 1 Of airport clear zone requiremen!S must be so identified when listing the property for sale. NOTE: OTHER ENVIRONMENTAL STATUTES, EXECUTIVE ORDERS AND AUTHORITIES The remaining statutes and authorities cited at 24 CFR 50.4 do not require compliance because they are not relevant to property disposition actions which do not involve new conslruction, Preparer: Supervisor: WILLIAM W. BROOKSHIRE Title:STATE LICENSED APPRAISER Date: MARCH 26, 2004 Title: Date: "" Appraisal Report 1111111111111111111111111111111111111111111111111111111. ~!~l~; Mark Fairehlld, Muskegon Co ROD 002 Page: 1 of 2 :A QUIT CLAIM DEED LIBERTY TITLE AGENCY File No. 76498 The Grantors: Roxie Murray., ct >Inf) le wo...,..,a"" whose address is: 2211 Riverview Drive, Inkster MI 48141 Quit Claims to: CITY OF MUSKEGON, A MICHIGAN MUNICIPAL CORPORATION whose address is: 933 Terrace Street, Muskegon MI 49443 the following described premises situated in the City of Muskegon Muskegon County, State of Michigan, to-wit: (Continued) SEE ATTACHED EXHIBIT NLEGAL DESCRIPTION RIDER for the full consideration of: Five Thmlsand DoJ.lars and 00/100 ($5,000.00) Dated this 13 day of _x~=-~/____ , 2004 STATE OF MICHIGAN ) MICHIGAN REAL ESTATE ; ~ ) ss TRANSFER TAX* Muskegon MI $5.50-C* ** COUNTY OF Washtenaw ) 07/07/2004 $37 .50-S 58438 ff8866 The foregoing instrument was acknowledged before me this n_ day of _ _..Mlaj,.=ql"-/_ _ , 2004 by Roxie Murray> a s/,,,.,3/1? won-i4h 0 My commission expires: TRACY M. ROBERTSON Notary Public, Washtenaw County, Ml County, Michigan My Commission Expires July 19, 2007 . . Ac-f1,,,., /,., vc.,l. ltr>a,._; Drnfted by. Thomas D. Richardson When recorded return to: Grantee 111 N. Main St. 933 Terrace Street ✓ Ann Arbor, MI 48104 Muskegon, MI 49443 tmr File No. 76498 Parcel ID No. EXHIBIT A/LEGAL DESCRIPTION RIDER Land is located in the City of Muskegon , County of Muskegon , State of Michigan, and described as follows: Lot(s) 6, Block 199, Revised Plat (of 1903) of the City of Muskegon, as recorded in Liber 3 of Plats, Page(s) 71, Muskegon County Records and the Easterly 1/2 of vacated Rathborne Street, adjacent thereto. 5110517 L-3610 P-209 IIIIIII IIIII IIIIIII II llllllll lllll lllll 1111111111111111 07/07/2004 11:35A Page: 2 of 2 Mark Fairchild, Muskegon Co ROD D02 Commission Meeting Date: April 13, 2004 Date: April7,2004 To: Honorable Mayor & City Commission From: Community and Neighborhood Services Department RE: Community Development Block Grant/HOME Final allocation decision SUMMARY OF REQUEST: For the City commission to make their final allocation decision concerning the 2004-2005 CDBG/HOME fiscal year. The Commission has received the recommendation from the Citizen's District Council and the City administration. The commission made their preliminary recommendations during the March 23, 2004 City Commission meeting. After receiving the Commissions final allocation decision, the CNS office will amend the City's 2004-2005 Action plan if needed and continue the comment period until April 15, 2004. At that time, the City will request the U. S. Housing and Urban Development department for the release of the funds for the 2004-2005 fiscal year to begin June 1, 2004. FINANCIAL IMPACT: The decision will determine the CDBG/HOME budget for 2004-2005. BUDGET ACTION REQUIRED: The decision will establish the budget. STAFF RECOMMENDATION: The Commission has already received the staff recommendation. COMMITTEE RECOMMENDATION: The Commission has already received the Citizen's District Council recommendations. 2004 - 2005 CDBG / HOME ACTIVITY Community Development Block Grant City Commission Administration Citizen District Council Preliminary City Commission ~ Organization Name/Program Title Amount Requested Recommendation Recommendation Recommendation Final Decision (ifa,uskegon Community Health Project $ 8,000.00 * $ 7,000.00 $ 7,000.00 "':"'s51:4~a= --i,,-;_ • $ ·~ .),; '-'!,~?:::---- --'I'""" - ·-·-· "Miles for Smile Dental SetVices" 2 West Michigan Veterans 5,000.00 * 5,000.00 5,000.00 5,000.00 Veterans Assistance 3 Pioneer Resources 4,800.00 * 2,500.00 2,500.00 2,500.00 Rec for People wldisabilities 4 HealthCare 7,225.00 * 6,000.00 5,000.00 6,000.00 Health screening to low-income -., .., 5 American Red Cross 5,000.00 * 5,000.00 5,000.00 5,000.00 ,...-;,. -;,:l', Senior Transportation -,,s;:s,_s-- 5,000.00 * 2,500.00 250000 ~--;.,•~•r~ - ..;''~ r:_ '•--._ __ , ' ; ·- :6)Volunteer Muskegon Youth SutVey/Mapping J • '"3..✓-i-' V ~ .. ~ 0 /?)Volunteer Muskegon 5,000.00 * 2,500.00 5,000.00 2,500.00 3: ' -- Keep Kids in School Truancy - 8 Legal Aid of Western Michigan 43,302.00 * 9,000.00 9,000.00 9,000.00 Counseling/Legal Education (§)Family Services Center, Inc 10,000.00 * 5,000.00 6,000._QO•. 5,000.00 ~ DAD'S ·----· o_,:'o-.,-,, 0 J..,, n 10 Lakeshore Fair Housing Alliance 10,000.00 * 7,000.00 6,000.00 7,000.00 Fair Housing 11 Muskegon Public Schools 15,000.00 * 7,500.00 8,500.00 ~-S: 06 'i',§QQ BO 5::,:::::~ Software 12 Neighborhood Invest Corp 6,500.00 * 2,500.00 2,500.00 2,500.00 Mainstreet 13 Muskegon Retirement Apartment Inc 10,200.00 * 5,000.00 5,000.00 5,000.00 Fire Code Compliance ;),,'.) / -0,~00 .)' Community Development Block Grant City Commission Administration Citizen District Council Preliminary City Commission Organization Name/Program Title Amount Reguested Recommendation Recommendation Recommendation Final Deci1i!:m 14 Community and Neighborhood Services $ 210,000.00 $ 170,000.00 $ 170,000.00 $ 170,000.00 Siding Program 15 Fire/Inspection 155,000.00 60,000.00 60,000.00 60,000.00 Dangerous Building/Demolition 16 Community and Neighborhood Services 215,000.00 180,000.00 180,000.00 180,000.00 Emergency Rehabilitation 17 Community and Economic Development 20,000.00 Fa9ade Improvement 18 Community and Neighborhood Services 187,000.00 ** 175,000.00 175,000.00 175,000.00 CDBG Administration 19 Community and Neighborhood Services 125,000.00 118,000.00 118,000.00 118,000.00 Rehab Service Delivery 20 Engineering / CNS 50,000.00 35,000.00 35,000.00 35,000.00 Sidewalk Assessment Relief 21 Engineering/ CNS 80,000.00 45,000.00 45,000.00 45,000.00 Street Assessment Relief 22 Leisure Services 80,000.00 * 70,000.00 70,000.00 70,000.00 Youth recreation 23 Finance Dept 245,000.00 245,000.00 245,000.00 245,000.00 Repayment of Shoreline Dr. Bond 24 City Planning 40,000.00 35,000.00 35,000.00 35,000.00 Lot Clean-up 25 City Planning 45,000.00 40,000.00 40,000.00 40,000.00 Code Enforcement 26 DPW 56,784.00 * 46,500.00 46,500.00 $ 46,500.00 Senior Transit Community Development Block Grant City Commission Administration Citizen District Council Preliminary City Commission Organization Name/Program Title Amount Reguested Recommendation Recommendation Recommendation Final Decision Total CDBG Request 1,643,811.00 Total CDBG Allocated+ Pl $75,000 1,287,000.00 1,287,000.00 1,287,000.00 1,287,000.00 $ 1,287,000.00 Recommendations 1,287,000.00 1,286,000.00 1,286,000.00 1,286,000.00 $ Allocated/Request Difference $ (356,811.00) 1000.00 $ 1,000.00 $ 1,000.00 $ 1,287,000.00 Total Amt of Public Service* 215,027.00 136,500.00 136,500.00 136,500.00 Public Service mandated Amt < or = to 15% 193,050.00 193,050.00 193,050.00 193,050.00 $ 193,050.00 Difference $ (21,977.00) $ 56,550.00 $ 56,550.00 $ 56,550.00 $ 193,050.00 Total Amt of City Administration Request** 187,000.00 175,000.00 175,000.00 175,000.00 $ Administrative mandated Amt < 20% 257,400.00 257,400.00 257,400.00 257,400.00 $ 257,400.00 Difference $ 70,400.00 $ 82,400.00 $ 82,400.00 $ 82,400.00 $ 257,400.00 HOME City Commission Administration Citizen District Council Preliminary City Commission Organization Name/Program Title Amount Reguested Recommendation Recommendation Recommendation final Decision 1 Community and Neighborhood Services 75,000.00 75,000.00 $ 75,000.00 $ 75,000.00 Tax-Reverted Rehabilitation 2 Community and Neighborhood Services 85,000.00 80,000.00 $ 80,000.00 $ 80,000.00 HOME Infill Program 3 Community and Neighborhood Services 33,700.00 *** 33,700.00 $ 33,700.00 $ 33,700.00 HOME Administration 4 Neighborhood Investment Corp $ 100,000.00 **** $ 80,000.00 $ 80,000.00 $ 80,000.00 Housing Rehab, Neighborhood Imp. 5 Habitat For Humanity 50,000.00 **** 47,000.00 $ 47,000.00 $ 47,000.00 Acquisition/Rehab 6 Trinity Village Non-Profit Housing Corp 25,000.00 **** 22,000.00 $ 22,000.00 $ 22,000.00 Single-Family Acquisition Total Amt of HOME Request $ 368,700.00 $ 337,700.00 $ 337,700.00 $ 337,700.00 HOME Allocation 337,937.00 $ 337,937.00 $ 337,937.00 $ 337,937.00 $ 337,937.00 Reprogram Funds Total Amt Home Available 337,937.00 337,937.00 $ 337,937.00 $ 337,937.00 Total Amt Difference $ (30,763.00) $ 237.00 237.00 237.00 $ Total Amt of HOME Administration*** $ 33,700.00 $ 33,700.00 $ 33,700.00 $ 33,700.00 Total Amt mandated= 10% $ 33,700.00 $ 33,700.00 $ 33,700.00 $ 33,700.00 Difference $ - $ - $ - $ - $ Total amt of HOME CHOO request**** $ 175,000.00 $ 149,000.00 $ 149,000.00 $ 149,000.00 Total Amt mandated 15% 50,690.00 50,690.00 50,690.00 50,690.00 50,690.00 Difference $ (124,310.00) $ (98,310.00) $ (98,310.00) $ (98,310.00) $ 50,690.00 NOTE *Public Service, **City CDBG Administration, ***HOME Administration, ****CHOO Request Q:CNS\Common\Excel\04.05_Act Commission Meeting Date: April 13, 2004 Date: April 7, 2004 To: Honorable Mayor & City Commission From: Community and Neighborhood Services Department RE: Approval of the 2004-2005 Action Plan SUMMARY OF REQUEST: To approve the 2004-2005 Action Plan for the City of Muskegon Community Development Block Grant/HOME activity. If the Action Plan is approved, the CNS will continue the comment period of the Action Plan as amended if needed until April 15, 2004. On April 16, 2004, the CNS office will deliver the Action Plan to the U. S. Housing and Urban Development as required in order to request the Release of Funds for the 2004-2005 fiscal year. FINANCIAL IMPACT: Action Plan establishes the 2004-2005 budget. BUDGET ACTION REQUIRED: None at this time budget established by Action Plan. STAFF RECOMMENDATION: To approve the Action Plan. ,.w COMMITTEE RECOMMENDATION: None. Action Plan COMMUNITY DEVELOPMENT BLOCK GRANT June 1, 2004 thru May 31, 2005 MISSION STATEMENT & NARRATIVE SUMMARIES To provide its residents with the ability to live in safe, decent, sanitary and attractive housing and to assure the preservation and enhancement of the City's neighborhoods, public facilities and infrastructure as well as to assist local nonprofits and social agencies in delivering their services to low/moderate income residents are examples of annual activities undertaken by the City of Muskegon to promote the overall well-being of this community. This section of the Consolidated Housing & Community Development Plan will describe eligible programs, projects and activities to be undertaken with funds expected to be made available during the above program year and their relationship to housing and non-housing community development needs outlined in previous sections. PURPOSE & INTENT In accordance with the National Affordable Housing Act of 1990, the City of Muskegon must submit an Annual Action Plan to the U. S. Depattment of Housing & Urban Development pursuant to its approved Consolidated Plan 2000-2004, which identifies proposed actions toward meeting housing and non-housing priorities. Affected programs include, but are not limited to the Community Development Block Grant (CDBG), the HOME Investment Partnership (HOME), the Emergency Shelter Grant (ESG), Homeless Assistance, Youth Build, and the Housing Opportunities for Persons Living with AIDS (HOPWA) Programs. COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM ANNUAL STATEMENT OF PRIORITIES & PROPOSED PROJECTS The City's Community Development Block Grant (CDBG) program is annually funded to address the City's short and long-term goals, needs and priorities. These goals, needs and priorities are translated into the City's Annual Action Plan and Statement ofPriorities and Proposed Projects for each program year period. If a determination is made not to implement an activity, to carry out an activity not previously described, or to substantially change the purpose, scope, location, or beneficiaries of an activity, an Amendment to the active program year Action Plan will be enacted. The City's Statement of Priorities and Proposed Projects for this period follows the Summary of Resources below: Projected Resources & Activity Summary: $1,212,000 FY 2004 HUD/CDBG Entitlement 25,000 Program Income 50,000 Program Carry over $1,287,000 Total CDBG funding Other Expected Federal Funding Law Enforcement Block Grant 49,782 DOJ Bullet Proof Vest Program 2,161 Multi-Jurisdictional Drug &Gang 35,260 FEMA Firefighters Assistance 129,875 After School Learning Centers 1,000,000 Total 1,217,078 Summary of Priorities and Proposed Projects The City of Muskegon proposes to undertake activities during the 2004 - 2005 program year described as follows: The Funding is based on entitlement amount of $1,287,000. Housing Priorities & Proposed Projects Proposed projects will aid in the elimination of blight throughout the City, which is detrimental to life, health, and safety. $180,000 Housing Rehab - Emergency Repair Program. Continued assistance to very low-income homeowners for the repair of single-purpose housing deficiencies that pose a serious threat to life, health, or safety. Locations: City/Community Wide Targeted Outcome: 40 Housing Units $170,000 Housing Rehab - Siding Program. Continued assistance to provide vinyl siding to low-income owner-occupants of single-family housing units. Locations: City/Community Wide Targeted Outcome: 30 Housing Units $118,000 Housing Rehab - Service Delivery Costs. Funding for the administration of housing rehab programs and incidental costs associated with the housing rehab activities such as credit reports and recording fees. Location: City/Community Wide Targeted Outcome: 220 Household $60,000 Residential Clearance. Continued funding for the board-up and demolition of vacant, substandard structures that are not suitable for rehabilitation. Locations: Census Tract I-Marquette 2 - Jackson Hill; 3 - Angell; 5 - McLaughlin; and 6.02 Nelson Neighborhood Targeted Outcome: 15 Housing Units $40,000 Code Enforcement. Funding for the enforcement of City ordinances with respect to property maintenance and neighborhood blighting influences. Funding will be used to pay one Code enforcement officer. Locations: Census Tract 3 -Angell Neighborhood, Census Tract 5 - McLaughlin, Census Tract 2 - Jackson Hill, Census Tract 1 - Marquette, Census Tract 6.02 Nelson Neighborhood Targeted Outcome: 1000 Households Non-Housing Priorities & Proposed Projects Proposed projects will encourage commercial and retail development by taking maximum advantage of a variety of resources, to promote business expansion and investment in order to create a balanced recreational, commercial, residential, educational and industrial economic climate as follows: $245,000 Shoreline Drive Bond Repayment. Funding for payment of bond authority funds toward completion of the Shoreline Drive project, to be used for real property acquisition of affected properties. Location: Census Tract 7 - Central Business Targeted Outcome: Area Redevelopment Public Improvements Proposed Projects Proposed projects will provide the impetus to insure the continued maintenance and upgrading of the City's infrastructure, transportation and neighborhood resources as follows: $35,000 Sidewalk Assessment Program. Continued funding of sidewalk replacement costs for low-income homeowners, as identified by the sidewalk replacement program. Location: Census Tracts - Marquette Neighborhood Targeted Outcome: 75 Households $35,000 Public Rehabilitation/Clean-ups. Funding to be used for maintenance of City- owned residential lots and other future public rehabilitation projects. Location: Census Tracts 1, 2 ,3 , 5, 6.01 Targeted Outcome: 200 Lots $45,000 Street Assessment Program. Continued funding of street replacement costs for special assessment levied to low income homeowners who resided in areas where street replacement is proposed. Public Services & Proposed Projects Proposed projects will support community-based organizations by promoting neighborhood self- sufficiency and meet the under-served needs of special needs populations such as youth, the elderly, persons with disabilities and the homeless and low-income residents. $70,000 Recreation Programs. Continued funding of core-city youth recreation programs. Activities include summer/winter swimming, gym activities, basketball, family recreation, indoor soccer, and summer playground programs. Location: Census Tract 2 - Jackson Hill; 3 - Angell; 4 - East Muskegon; 5 - McLaughlin; 6.01 - 6.02 Nelson Targeted Outcome: 500 Youth $46,500 Sr. Citizen Transit. Continued funding to provide low-cost transportation services for elderly residents to medical facilities, shopping centers, edncational/recreational activities and other related destinations. Location: City/Community Wide Targeted Outcome: 1300 Elderly $66,500 Special Projects/Community-Based Organizations. Continuation of grant program for local non-profit organizations to provide various services to low-income community residents. Location: City/Community Wide Targeted Outcome: 12 Community-Based Organizations Approximately: 10,000 individuals Management $175,000 Management & Coordination. General management, oversight and coordination of CDBG activities. Funding includes cost of staff salaries and fringe benefits, office supplies, equipment and contingency; Contract Compliance/EO and Indirect Costs. CDBG PROJECTS/ACTIVITIES - 2004 2004 - 2005 ACTIVITIES - By RANKING REHABILITATION - HOUSING 468,000 36% Emergency Repair Vinyl Siding Administration BOND REPAYMENT 245,000 19% Shoreline Drive PUB. FACILITIES - ASSESSMENTS 115,000 9% Sidewalks/Street Lot maintenance GENERAL ADMINISTRATION 175,000 14% General Admin. Affirm. Action PUBLIC SERVICES 183,000 14% Recreation Programs Sr. Transit CBO Grants Program CODE ENFORCEMENT - HOUSING 100,000 8% Code Inspections Residential Clearance 2004 HOME INVESTMENT PARTNERSHIPS PROGRAM ANNUAL STATEMENT OF PRIORITIES & PROPOSED PROJECTS The HOME Investment Partnerships Program was created by the National Affordable Housing Act of 1990, and the City of Muskegon is a designated "Participating Jurisdiction," which allows direct allocations of funds from the Dept. of HUD. Portions of these funds may be awarded to non-profit organizations to assist with the provision of affordable housing and support services; other eligible activities include acquisition, construction, rehabilitation, investor/rental rehabilitation, downpayment assistance and assistance to first-time homebuyers. The City's Statement of Priorities and Proposed Projects for this period follows the Summary of Resources and Proposed Amendments below: Project Resources: $337,937 Housing Priorities and Proposed Projects Proposed projects will aid in the prevention of further loss of viable housing units, increase affordable homeownership opportunities, encourage new development of affordable housing, and provide continued support for shelter and service programs for the homeless and persons at-risk of homelessness as follows: $149,000 Community Housing Development Organizations. Continued assistance to support non-profit organizations providing housing and housing related activities, and activities for the needs of the homeless and those at risk of homelessness, and technical assistance to emerging non-profit housing organizations. 35 Households/Citywide $33,700 Program Administration. General management, oversight and coordination of HOME program activities. Funding includes staff salaries, fringe benefits, office supplies and equipment. $80,000 Tax-Reverted Infill Program. Assistance to construct single-family dwelling on tax-reverted properties not neighborhood specified. 1 family/targeted neighborhood. $75,000 Tax-Reverted Rehabilitation Program. Assistance to rehabilitate tax-reverted single-family structures and sell to low/moderate-income residents after rehab. 1 family/targeted neighborhood. $337,937 - HOME PROJECTS/ACTIVITIES - 2004 2004 HOME INVESTMENT PARTNERSHIPS PROGRAM CITY OF MUSKEGON COMMUNITY & NEIGHBORHOOD SERVICES PROGRAM DESCRIPTION 2004 ALLOCATION OF FUNDS $337,937 HOME Community Housing Development Organizations (CHDO's) $149,000 As a participating jurisdiction, the City of Muskegon is required to provide opportunities for Community Housing Development Organizations to utilize HOME funds to produce affordable housing within the City of Muskegon. Funding will include the provision of technical assistance to assist in building the capacity of CHDO's to produce affordable housing and for administrative support of the organizations within the regulatory guidelines. Eligible activities include the acquisition of vacant land or existing structures, the construction or rehabilitation of these properties for occupancy by low to moderate-income individuals. Tax-Reverted Infill: $80,000 The City of Muskegon will use the allocated HOME funding to construct a single-family home on a designated tax-reve1ied lot not neighborhood specifically to be located in one of the city's low/moderate-income eligible neighborhoods. The home is to be sold to a low/moderate family whose income is at or near 80% of the city's median income. The potential owners will be recruited with the assistance of one of the city's CHDO's. Downpayment assistance may be available through the CHDO. The length of the affordability period will be determined by the amount of HOME funds used as a subsidy in the project. Program Requirements Properties must be purchased/ occupied by low to ve1y-low income tenants, those with incomes at or below 80% of area median income .. Recapture provisions The City elects to adopt the recapture of the homebuyer subsidy. The homebuyer subsidy will be forgiven by the City at a rate of 1/180 per month throughout the term of the affordability period. Upon sale of the property by the homeowner within the affordability period, the homeowner will be required to repay a prorated portion of the HOME funds used to subsidize the purchase of the home. The property owner's return on investment at the point of sale will include: The amount of the homebuyer's downpayment made from their own resomces The amount of mortgage principle repaid at the time of resale The appreciated value of the prope1iy (Appraised value at resale less the appraised value of the prope1iy at the time of purchase by the homeowner). The homeowner will receive the full amount of the fair retum only if sufficient sale proceeds remain after all outstanding debt (including repayable HOME subsidy amounts) and closing costs are paid. Any proceeds remaining after payment of the outstanding debt, closing costs, fair return, and any HOME subsidy repayment will be shared 50/50 between the homeowner and the City. Any funds repaid to the City will be returned to the HOME trust fund. Repayment of the HOME subsidy amount will not be required is the resale does not provide sufficient net proceeds to satisfy other outstanding debt, pay closing costs, and offer a fair return on investment to the property owner. Partial repayment may be required based on the amount of sales proceeds received by the homeowner. Tax-reverted Rehabilitation: $75,000 The City of Muskegon will use this funding to rehabilitate a single family structures obtained through the tax-reversion process, the dangerous building list or through the U. S. Housing and Urban Developments "Good Neighborhood Program". The funding will be used to rehabilitate the dwelling to code. After the rehabilitation is completed the structures will be sold to an income eligible low/moderate-income family through a partnership with one of the communities CHDO's. The future occupants will have incomes preferably below 65% of area median income. Any profits obtained from this program will be reallocated to the local HOME funds. The recapture provisions are the same as under the Infill program HOME Administration: $33,700 The City of Muskegon will use the funding to administer all HOME programming. Rental Rehabilitation Program - NOT FUNDED THIS FISCAL YEAR This program will provide funding for the rehabilitation of existing rental units located in the City of Muskegon occupied by families whose annual incomes do not exceed 60 percent of the median family income for the area, adjusted for family size. The City will provide a maximum of $30,000 by matching the owner's contribution to the rehabilitation. The property owner must contribute the remaining development costs. Properties rehabilitated under this program must meet applicable local building codes at the completion of the project. Property owners will be eligible for assistance under the City's Rental Rehabilitation programs only if there are no outstanding legal actions pending against them for chronic ontstanding violations. Landlords who have already received assistance under the HUD Rental Rehab program, the MSHDA HOME Rental Rehab program, or the City's HOME Rental Rehab program will not be eligible for additional assistance to the same properties. Qualifying property owners must be current on all taxes and debts owed to the City of Muskegon prior to submitting their application for assistance, and throughout the HOME affordability period. Tenant Occupancy For property receiving HOME Rental Rehabilitation assistance, the units must be occupied by families with incomes at or below 80% of area median income, adjusted for family size. Income determinations will be made at the time of application. Tenant occupancy and income will be re- certified annually for the length of the applicable affordability period. Monitoring In compliance with CFR 24 91.230 the City of Muskegon requires all funded subreceipients and Community Housing Development Organizations (CHDO's) to sign an agreement contract listing their intended scope of services, a delineated budget and to include all required supporting documentation. (i.e. 501 C3 verification, list of staff demographics etc) As well as including in the agreement all pertinent City of Muskegon and U.S. Department of Housing and Urban Development requirements. In addition, all Subreceipients and CHDOS are required to submit quarterly progress reports detailing the organization/agency accomplishments during the past quarter, and or the number of minorities and or low and moderate income residents served. The City of Muskegon Community and Neighborhood Services also physically monitors all Subreciepients and CHDO's at their sites once a year which includes reviewing policies, procedures as well as activities and accomplishments. RELEVANT NARRATIVE STATEMENTS Issue: Continuum of Care Strategy for the Homeless Muskegon County's Continuum of Carel can be viewed as four interconnected phases. Phase One is an outreach and entry phase. The homeless, near homeless, and the working poor at risk of homelessness are identified by organizations that provide life-sustaining assistance ... shelter, food and financial support. These entities include the Salvation Army, City Rescue Mission, Red Cross, Community Action Against Poverty, Every Woman's Place, Catholic Human Development Outreach and the COGIC Center of Trinity Village. Their obligation to this strategic plan is to identify and perform an initial assessment. This process allows referral to safe shelter for the homeless and to case management services for the near homeless to prevent the loss of home. Phase Two is a barrier identification and case management phase. During this phase, client issues are explored more intensely, and individual, client-driven case management plans are designed. Additional services from the community are then "wrapped around" the client that addresses the baniers to safe housing and economic stability. These may include employment assessment and training, substance abuse treatment, support services education, health and dental care provisions, legal support, individual and family counseling and movement into a transitional living situation. The near homeless continue to be monitored and supported to prevent their loss of home. Organizations involved at this time include Family Centers, Legal Aid, Treatment Centers, County Employment and Training sites, Health Care providers, and mental health specialists. It should be noted that even with expensive services in this Phase, a lack of transitional housing can result in a "revolving door" situation, with clients returning into Phase One. Phase Three continues the case management plan, with additional emphasis on self- supporting skills such as gaining and retaining a life sustaining wage, budgeting, parenting, permanent housing education and nutrition. Clients in this phase are moved toward pe1manent housing, if previously homeless, or toward greater stability if identified originally as near homeless. Housing education stresses home ownership as a preferred strategy over renting. In this phase, Housing Commissions, financial institutions, neighborhood associates and the faith-based community are included. Clients in Phase Four are supported in their efforts to gain and maintain a permanent residence, both physically and financially. Section 8 housing vouchers, city renovation project grants, and low or no-cost reclamation loans are sought for this purpose. Support services are offered as required to continue the development and stability of the family toward self-sufficiency and economic sustainability. Case management services taper off as clients become more self- reliant. Priorities in Muskegon County include support for emergency shelters, additional transition housing units, and a computerized case management system for data collection and analysis. Issue: Fair Housing Needs Impediments The City of Muskegon continuously works to assure that any impediments to fair housing opportunities are removed. It is the City of Muskegon administration position that the 2000 Census will illustrate that the City of Muskegon has seen a shift in housing patterns in the last 10 to 15 years where minorities are residing in areas of the city formerly only occupied by white residents. Some of the credit for this shift can be attributed to the work of the nonprofit community promotion of homeownership and also the local realtor community, which has been promoting homeownership throughout the City. The City of Muskegon has also increased the availability of quality housing within the city in a number of ways. The City's Infill programs have given the opportunity to low and moderate-income residents to purchase home they would not be able to afford with out the subsidy. In the last decade the City of Muskegon has also experienced a significant increase in the availability of quality rental housing. Several complexes have been built by the private market offering quality- housing oppmtunities for low and moderate-income residents which includes rental assistance. Even with the increase in available rental housing there still appears to be a need for addition rental assistance. During the period of March 18, 2002 thru March 22 2002, the Muskegon Housing Commission adve1tised open enrollment for its Section 8 vouchers/certificates a total of approximately 1257 applications were received by the Housing Commission from the public hoping to obtain rental assistance. January 9, 2003, Muskegon Heights had an open enrollment for their Section 8 program. A total of 1,000 applications were accepted at that time. The City of Muskegon Inspection department has aggressively implemented a policy that targets substandard housing in the City, requiring that the housing is brought up to code in a quality manner by the owner or the housing is demolished which eliminates the substandard housing from the City's housing stock and also eliminates the possibility of the substandard housing being rented and or sold to someone not in a quality condition. Anyone wishing to make a complaint concerning housing related issues is directed to the City of Muskegon Affirmative Action office. Last fiscal year a fair housing analysis was produced regarding Muskegon County by the Grand Rapids Fair Housing Center. The repmt was financed by the cities of Muskegon, Muskegon Heights, Norton Shores and Muskegon County. There is currently a local coalition of citizen working to establish a Fair Housing Center in Muskegon County. There hasn't been a local organization targeted specifically to fair housing program in several years in Muskegon County. The results of that study is currently being studied and the information derived from the report will be used in future plarruing efforts. Issue: Welfare Reform Impact The Personal Responsibility and Work Opportunity Reconciliation Act of 1996 represents significant changes in perceptions of'welfare reform'. The challenges represented are critical to all segments of a given community, and the City of Muskegon is no exception. The Dept. of HUD is promoting a three-pronged response to begin addressing this issue, and the City of Muskegon will make every attempt to expand its partnerships with HUD, the State of Michigan, and community organizations to provide viable services to its residents affected by the legislation by promoting the following endeavors: * Support for the creation of job opportunity through economic development activities; * Support and monitoring of innovative uses of tenant-based rental assistance linking welfare recipients to jobs; * Support and continued promotion of the family self-sufficiency concept; * Provide supportive technical assistance when needed, to help welfare recipients make the transition from dependency to work through expansion initiatives, funding for supportive services and encourage initiatives that provide access to education and job training. The City acknowledges several area agencies that provide assistance and supportive services with these common goals, and will continue to expand its role and pattnerships, as debate on this issue and its impact continue to be assessed. Issue: Lead Paint Hazard Reduction The City will continue to coordinate actions towai·d reduction of lead hazards in housing units with the Muskegon County Health Department, particularly in homes occupied by children under the age of seven (7), and with elevated blood lead levels. Although, the number of homes rehabilitated under the City's housing programs remain a small portion of units suspected to have lead hazards, the County Health Department continues to focus on the existence of hazards in the community and employees various strategies through area social service agencies for abatement, education, screening and coordination. The City's actions toward eradication of this paiticulai· hazard to the community involves the following: * Continued support and coordination with the Muskegon Cow1ty Health Department; * Priority consideration under housing programs to households with children with elevated blood lead levels; * Allocation of CDBG/HOME funding for lead hazard abatement and remediation in rehabilitated homes; and * Provision of the most current information, data analysis, and prevention methods to the general public through brochures, pamphlets and other education materials on the risks oflead poisoning. Under the City's HOME Program, ce1iain activities involve the acquisition and/or sale of single- family properties and investor-rehabilitation assistance for rental properties. Under this program, the following actions apply for purchase, rental, and renovation of pre-1978 housing units: * Investor/Landlords must disclose known information on lead-based paint hazards before leases take effect; * Sellers must disclose known information on lead-based paint hazards before selling a housing unit; buyers have a minimum of ten (10) days to check for hazards; and * Rehabilitation activities will include specific inspection specifications and procedures for use by contractors performing construction services. The City of Muskegon has worked diligently to train both its staff and its contractors in lead paint remediation. The CNS office has four members of its staff certified in safe work practices. Its rehabilitation inspector is certified in lead supervision and as a lead wiper. The City has also financed the training of a total of approximately 62 area contractors in safe work practices and a total of seven as Lead Based Paint supervisors. The City of Muskegon currently has a qualified staff person who is authorized to teach the safe work practices class and is planning to offer several in house training classes. Public Housing The Muskegon Housing Commission an independent agency from the City of Muskegon is not eligible for the Comprehensive Grant because of the number of housing units in its inventory. During this fiscal Year the City of Muskegon and the Muskegon Housing Commission were able to partner to finally receive approval from HUD to demolish 8 former Turnkey 3 properties. The dilapidated houses were owned by the Muskegon Housing Commission and for whatever reasons had gotten to an obsolescent state. The City along with the Housing Commission and many of the Citizen who had one of the infamous houses in their neighborhood celebrated last July during the demolition of the first home on Oak St by the middle of August 2003 all the houses had been demolished. The City purchased four of the sites from the Housing Commission and two homes have been completed at this time, two other homes will be built on the former Turnkey 3 sites during this coming fiscal year. Also during this fiscal year the City of Muskegon Community and Neighborhood Services Office assisted the Muskegon Housing Commission by conducting the Environmental Review assessment for the Commission Capital Fund grant. According to the Muskegon Housing Commission's Annual Public Housing Plan the Commission has nine goals for this fiscal year. 1. Manage the Commission's public housing program in an efficient and effective manner to achieve minimum status as a standard perfor~er. 2. Continue to provide a safe and secure environment in the Muskegon Housing Commission's public housing development known as Hartford Terrace. 3. Close out Turnkey III program 4. Expand Section 8 Housing Voucher program opportunities for low income families 5. Close out S(h) Homeownership program 6. Expand Family Self-Sufficiency, Community and Supp01iive Services Opportunities. 8. Seek to improve Resident Assessment Satisfaction Survey results 9. Continue to modernize Hartford Terrace Apartment Complex HOUSING AND COMMUNITY DEVELOPMENT NEEDS Conditions The overall condition of housing units in Muskegon is good. Much of the City's substandard housing stock has been eliminated over the past 20 years through Urban Renewal and the City's ongoing demolition program. On the other hand the number of the city's housing units continue to need repairs. Reinvestment in the City's housing stock has decreased with the decline in city property values which has lead to further deterioration and a decrease in the number of units which are suitable for rehabilitation. Housing Needs The greatest housing problem occurs in non-elderly renter households. In 1980, fifty-five percent of the city's low-income households were homeowners and 45% were renters. By 1990, the ratio had reversed with only 345 of the City's ve1y low-income households being homeowners and 66% were renters, the 21 % increase in the very low income rental population resulted in increased demand for rental units that are affordable to the ve1y low-income families, most of whom need some form of income or rental subsidy to meet housing needs. 1.364 or 17% of the city's total owner-occupied households have incomes between 51 % and 80% of the area median. This is interesting because it is 5% lower than the percentage of homeowners who fall below 50% of median income. The higher percentage of very low-income homeowners can be explained by the large numbers of elderly homeowners on fixed incomes that fall into the very low-income categmy. Most of these elderly families purchased their homes when they were employed and lack sufficient funds to maintain the homes. Housing Market Conditions According to the 2000 U.S. Census the City of Muskegon had 15,999 housing units; 8.284 owner occupied, 6,285 renter and 1,249 vacant. A loss of331 units occurred since 1980, but the loss was higher than the City's population loss. Overall City vacancy rates have remained relatively stable. However, among the subsidized rental properties that are designed to remain affordable to the City's low-income residents, there are few vacancies other than normal turnover. Affordable Housing Needs Owner-occupied housing units and rental units are all in great need of maintenance and repair. There is a need for additional rental subsidies for renter household. The Muskegon Housing Commission is the designated Public Housing agency for the City. The Housing Commission has had a major impact in the last few years creating affordable housing units. There is an extremely high demand for Section 8 Rental Assistance. The Section 8 waiting list was recently open from March 18 thru March 22,2002. During the period the Muskegon Housing Commission received a total 1257 applications for Section 8 rental assistance. Which illustrates the continuous need for additional rental assistance for the low and moderate-income residents of Muskegon Homeless Needs The homeless exist in Muskegon County but are nearly invisible. A larger number of households are at-risk of homelessness. These households use area food pantries, soup kitchens, and sho1t term rent assistance. Precise data did not exist for the homeless and at-risk populations at the beginning of the City's five- year plan; however changing economic trends and household demographics, have begun to fmmulate . . . .. . . .. . .. . . . " . to in the Muskegon Area Homeless Coalition Continuum of Care Plan, finalized during early, 2003. This public policy approach and strategy for meeting the needs of the homeless and those populations at risk of becoming homeless demonstrates that homelessness is not caused merely by a lack of shelter, but involves a variety of underlying, unmet needs ---- physical, economic, and social, and refines a stronger focus toward developing strategies to address these needs. The result has enacted a specialized care system to move homeless persons to permanent housing with associated support services to provide outreach, intake and assessment to be coordinated with a centralized tracking system to define services, broad access to emergency shelters, transitional housing and record demographic data of persons served. The expected outcome will guide the allocation of resources addressed by the Consolidated Plan, with a broad-based approach, including focussed discussion among surrounding municipalities, and area wide service providers to establish a balanced system which includes emergency shelter, transitional housing, and associated supportive assistance. Public and Assisted Housing Needs Name of Local Housing (LHA): Muskegon Housing Commission. The Commission operates Hattford Terrace Apartments, a 160-unit elderly/disabled housing complex; Section 8 Tenant Assistance vouchers/ce1tificates. Conditions of LHA units: There has been an effort in the last 2 years to conduct major rehabilitation at the Housing Authority although money has been limited. Barriers to Affordable Housing There are no current or outstanding comt orders, consent decrees or formal U.S. Depattment of Housing & Urban Development sanctions which act as barriers to affordable housing within the City of Muskegon. However in order to facilitate the City's efforts, the City has requested waivers through the Enterprise Community project, as described below: 1. Waiver Request - Public Assistance Programs The use of public assistance grants to offset employers' salary costs for newly hired public assistance recipients in order to help recipients get jobs and to expand jobs. Pilot projects which mandates job search for ADC applicants. Extension of Medicaid coverage to ADC clients entering the work force beyond the 12- month period cmTently provided. Exemption for one vehicle regardless of value from the current asset limitations. 2. Waiver Requests - Public Housing Facilities Waiver to keep elderly fatnilies only in housing for elderly and not disabled residents of any age. Lead-Based Paint Strategy The Muskegon County Health Department is the primary agency involved in the identification of lead poisoning cases in the community and as such the lead agency for hazard identification and treatment of persons with elevated blood levels of lead. Youth in Muskegon are at high risk for lead poisoning for a number of reasons: 97% of the City's housing units were built before 1979 12% of the City's housing units are estimated in substandard condition 26% of the City's households are below the pove1ty level 41 % of the City's housing units are rental with many concentrated in the inner city Since September 200 I the City of Muskegon has tested all structures by a lead based risk assessor in its rehabilitation programs excluding emergency repair and vinyl siding project. Anti-Poverty Strategy The City of Muskegon makes concerted efforts to enhance the quality oflife for all of its citizens, including families and individuals living at or below federally established poverty standards. The standards are defined by household income levels, tenure and makeup, extent of overcrowding and substandard conditions, unemployment, human service needs, and homelessness. In order to assist residents with breaking the cycle of poverty, the City has embarked on several projects, to break the poverty cycle by implementation of several centrally focussed strategies: * Encourage the improvement of existing housing conditions by continuing suppo1t of City-administered housing programs, i.e. code enforcement, low-cost comprehensive grant/loan repair assistance; continued encouragement and support for initiatives aimed at first-time homebuyers, and mortgage financing which fosters affordable housing opportunities, such as those currently provided by the Neighborhood Investment Corporation. * To create viable employment options by supporting area wide economic development activities, including training and re-training of displaced workers, the development of projects which target economic opportunity for designated poverty-level segments, and to assist new and retain/expand existing businesses. * By supplying funding when available to a number of public services that work diligently to assist low income resident break the cycle of poverty. These public services include areas of assistance that focus on health especially in the minority community, legal services, childcare, transportation and education, parent support. Coordination As pait of the community-based partnership organizations and agencies participating in the development of the Consolidated Plan, over 100 local service providers were consulted. Ove1whelming support was provided, with many agencies offering additional programs and resources, such as: The Muskegon Housing Commission, Muskegon Department of Social Services (State of Michigan), Muskegon County Department of Community Mental Health, Muskegon County Health Department, Michigan State Housing Development Authority and Michigan Region 14 Area Agency on Aging. The 2004-2005 CDBG/HOME activities are significantly consistent with the priorities as developed in the 2000 - 2004 Consolidated Plan. The City is meeting all its stated housing priorities through its partnership with the CHDO's and its in-house infill and emergency repair programs. PRIORITY I. To allocate at least the required an10unt of HOME funding to area CHDO's to assist low-income with downpayment assistance and increase their ability to obtain m01tgages. PRIORITY 2. By working through the City's Infill project to increase the number of new homes constructed within the targeted areas. PRIORITY 3. Rehabilitate owner-occupied and rental structures tlu·ough the community. The non-housing priorities are consistent with those established in the Consolidated Plan because the 2004 - 2005 activities in this category promote small business development and overall community economic development. PRIORITY 1. To work collaboratively to increase new employers and the availability of skilled workforce. PRIORITY 2. Increase developable land in the areas of commercial, industrial and residential. PRIORITY 3. Increase number of small businesses. The City of Muskegon public service is highly correlated with the established Consolidated Plan that was under the category of Neighborhood Objectives. The 2004-2005 activities consist of infrastructure improvements, recreation activities, senior programs, education support and neighborhood improvement programming. The neighborhood priorities as developed in the Consolidated Plan are: PRIORITY 1. Increase Leisure Services activities/facilities. PRIORITY 2. Improve quality of life in low/moderate income neighborhoods. PRIORITY 3. Increase neighborhood retail opportunities PRIORITY 4. Improve and upgrade city public safety equipment PRIORITY 5. To continue to work with and when possible supply financial assistance to subrecipients in the health field. As in the past the City of Muskegon will periodically during fiscal year review its activities to assure that the performances of its programs are meeting its goals and objectives. This will be accomplished by reviewing subrecipients and CHDO's quarterly reports as well as conducting on- site monitoring visits. As well as reviewing the department's performance on a monthly/ quarterly basis. All subrecipients and CHDO' s are informed in their agreements that they have one year to complete their projects (June I tlu·ough May 31) unless an extension is granted by the City of Muskegon Community and Neighborhood Services Public Comment ACTION PLAN - YEAR 28 6/0 I /04 thru 5/31/2005 Community Development Block Grant Program Description of Key Proposed Projects AMOUNT PROGRAM ADMINISTRATION $175,000 SHORELINE DRIVE Bond Repayment 245,000 HOUSING REHABILITATION 468,000 PUBLIC IMPROVEMENTS 115,000 CODE ENFORCEMENT 40,000 RESIDENTIAL CLEARANCE 60,000 PUBLIC SERVICES 183,000 TOTAL-CDBG $1,286,000 HOME Investment Partnerships Program Description of Key Proposed Projects DEVELOPMENT Tax -Reverted Infill $80,000 SUPPORT SERVICES Certified Community Housing Development Organizations 149,000 HOUSING Tax-Reverted Rehabilitation 75,000 ADMINISTRATION 33,700 TOTAL-HOME $337,700 DATE: March 30, 2004 TO: Honorable Mayor and Commissioners FROM: Robert B. Grabinski, Director of Inspection Services RE: Concurrence with the Housing Board of Appeals Notice and Order to Demolish. Dangerous Building Case #: En-040005 Address: 1355 Pine. SUMMARY OF REQUEST: This is to request that the City Commission Concur with the findings of the Housing Board of Appeals that the structure located at 1355 Pine is unsafe, substandard, a public nuisance and that it be demolished within thirty (30) days. It is further requested that administration be directed to obtain bids for the demolition of the structure and that the Mayor and City Clerk be authorized and directed to execute a contract for demolition with the lowest responsible bidder. Case# & Project Address: # En-040005, 1355 Pine St. Location and ownership: This structure is located on Pine Street between Bauer and Catawba and is owned by Raymond Kittel. Staff Correspondence: On 1/21/04 the trade inspectors and Fire Marshal conducted an inspection at this house after the housing inspector reported dangerous living conditions. At the time there were two women living there with their six children. They believed they were renting from Mr. Kittel, but he had actually had them sign a Land Contract in the amount of $40,000 on 2/21/03. Upon inspection the Fire Marshal and trade inspectors found the structure to be very dangerous and the two families were told they would have to vacate the premises. Their case workers did help them find new places to stay and were referred to Legal Aid of West Michigan in reference to the Land Contract. The utilities have since been cut and the house is vacant. A notice and order to repair or remove was issued 1/22/04 and on 3/4/04 the HBA declared the structure substandard and a dangerous building. Owner Contact: Mr. Kittel spoke with Mr. Grabinski the week before the HBA meeting and spoke of selling the house. He stated he had a potential buyer already lined up. Financial Impact: CDBG Funds Budget action required: None State Equalized value: $22,800 Estimated cost to repair: $ 20,000 Staff Recommendation: To concur with the Housing Board of Appeals decision to demolish. C:\Documcnts and Scltings\Potter\Local Settings\Temporary Internet Files\OLKlA\AGENDA-1355 Pine.doc page I of2 City Commission Recommendation: The commission will consider this item at it's meeting Tuesday, April 13, 2004. C:\Documents and Settings\Potter\Local Settings\Temporary Internet Files\OLKIA\AGENDA ~1355 Pine.doc page 2 of2 CITY OF MUSKEGON DANGEROUS BUILDING INSPECTION REPORT 1355 PINE (INTERIOR INSPECTION) 1/21/04 Inspection noted: 1. Service to be replaced to meet 2000 MRC. 2. Smoke alarms to meet 2000 MRC. 3. Rewire house to meet 2000 MRC. NOTE: Will need to meet 2003 MRC when new code is adopted. 4. Complete plumbing to be replaced. 5. Structural repair on home floor system required. Improper connections of joists to beams. Improper columns and column support. Opening in floor is improperly framed and must meet MRC 2000 requirements; chapter five floors; or provide structural engineered design on repairs. 6. All stair systems interior and exterior must be brought up to code; missing treads, risers, guardrails and handrails. 7. Smoke alarms must meet sec. R.317 MRC 2000 requirements; hardwired, interconnected with battery back up. 8. Provide egress windows per code; sec. R310 MRC 2000. 9. Numerous damage to ceilings, walls, and floor systems throughout. All floor - ceiling joists must meet required spans. 10. Side porch on home is unstable - rebuild to code -floorings, decking, guards & joists. BASED UPON MY RECENT INSPECTION OF THE ABOVE PROPERTY, I HAVE DETERMINED THAT THE STRUCTURE MEETS THE DEFINITION OF A DANGEROUS AND/OR SUBSTANDARD BUILDING AS SET FORTH IN SECTION 4-23 OF THE MUSKEGON CITY CODE. HENRY FALTINOWSKI, BUILDING INSPECTOR DATE C:\Documents and Settings\Potter\Local Settings\Temporary Internet Files\OLKIA\1355 Pine-lnsp Rpt .doc January 21, 2004 Lucinda McDonald 1355 Pine Street Muskegon, Ml 49442 Dear Ms. McDonald: An inspection was conducted by the Muskegon Fire Department at 1355 Pine Street on 1/21/04. The structure was deemed to be unsafe. All occupants shall be removed from the premises. Please see International Fire Code requirements: 110.1 General. If during the inspection of a premises, a building or structure or any building system, in whole or in part, constitutes a clear and inimical threat to human life, safety or health, the code official shall issue such notice or orders to remove or remedy the conditions as shall be deemed necessary in accordance with this section and shall refer the building to the building department for any repairs, alterations, remodeling, removing or demolition required. 110.1.1 Unsafe conditions. Structures or existing equipment that are or hereafter become unsafe or deficient because of inadequate means of egress or which constitute a fire hazard, or are otherwise dangerous to human life or the public welfare, or which involve illegal or improper occupancy or inadequate maintenance, shall be deemed an unsafe condition. A vacant structure which is not secured against unauthorized entry as required by Section 311 shall be deemed unsafe. 110.1.2 Structural hazards. When an apparent structural hazard is caused by the faulty installation, operation or malfunction of any of the items or devices governed by this code, the code official shall immediately notify the building code official in accordance with Section 110.1. 110.2 Evacuation. The code official or the fire department official in charge of an incident shall be authorized to order the immediate evacuation of any 1355 Pine Street Page2 occupied building deemed unsafe when such building has hazardous conditions that present imminent danger to building occupants. Persons so notified shall immediately leave the structure or premises and shall not enter or re-enter until authorized to do so by the code official or the fire department official in charge of the incident. 110.3 Snmmary abatement. Where conditions exist that are deemed hazardous to life and property, the code official or fire department official in charge of the incident is authorized to abate summarily such hazardous conditions that are in violation of this code. For advice or assistance, please call me at 724-6793. Thank you, Major Metcalf Fire Marshal C: Protective Services January 23, 2004 Marzella & Lucinda McDonald 1355 Pine St. Muskegon, Ml 49442 Re: Unsafe electrical Service at 1355 Pine St. As the result of an inspection at the above referenced property, it was determined that the electrical system was and is an imminent danger to life and property. Because of hazards found during this inspection, in accordance with Article 90-11 of the Michigan Electrical Code, electrical utilities will be terminated on January 27, 2004 if repairs are not made. During this inspection it was determined that the entire electrical system poses a life/safety hazard. This will need to be replaced to code and inspected. An electrical permit will need to be obtained before any work is done. A licensed electrical contractor must make all repairs of safety and code violations, and an inspection must be scheduled before electrical utilities can be restored. The above mentioned violations are a safety issue and in no way should be construed as including any other code violations at the above mentioned property. Should you have any questions, please feel free to call me at (231) 724-6758. Kenneth Murar Electrical Inspector, City of Muskegon Cc: File Fire Department Consumers Energy - (3,'-0,) f /,J /-c_ ~q- I (d/;)oa'-( AGREEMENT THIS AGREEMENT, made this December 21, 2004 by and between: Hitsman Enterprises. (a corporation organized and existing under the law of the State of Michigan); (partnership consisting of _ _ _ _ _ _ _ _ ); (an individual trading as _ __ --;;i: bJ ., ? f ,.,,,,,;7-, ·/ ); hereinafter called the "Contractor," and the City of Muskegon, Michigan, hereinafter called the "City". WITNESSTH, that the Contractor and the City, for the consideration stated herein, mutually agree as follows: ARTICLE 1. Statement of Work. The Contractor shall furnish all supervision, technical personnel, labor, materials, machinery, tools, equipment, and services, including utility and transportation services, and perform and complete all work required for the demolition and clearance of 1355 Pine as well as required supplemental work for the completion of this project, all in strict accordance with the Contract, including all Addenda. ARTICLE 2. Contract Price. The City will pay the Contractor for the performance of this Contract and the completion of the work covered therein an amount not to exceed $4700.00 ARTICLE 3. CONTRACT: The executed contract shall consist of, but not be limited to, the following: Invitation for Bids Instructions to Bidders Bid Proposal Agreement General Specifications for Project Performance Equal Opportunity and Employment Specifications Demolition and Site Clearance Specifications This Agreement, together with other documents listed in Article 3, which said other documents are as fully a part of the Contract as if attached hereto or repeated herein, form the contract between the parties hereto. In the event any provision in any component part of this Contract conflicts with any provision of any other component part, the Contractor shall contact the City immediately in writing for a determination, interpretation, and/or classification of conflicting parts and priority of same. Said determination from the City shall be in writing and shall become an Addendum to this Contract. IN WITNESS WHEREOF, the parties hereto have caused this AGREEMENT to be executed on the day and year first written above. CONTRACTOR:. BY: (µ:< l!:k-\~~--- Printed name and title ··,2: i; '" 2 C c!ZJ1A.. ·. 0 C, u ,c;, ,._. ATTEST: CITY OF MUSKEG ~ \k= l
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