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CITY OF MUSKEGON CITY COMMISSION MEETING MARCH 26, 2019 @ 5:30 P.M. MUSKEGON CITY COMMISSION CHAMBERS 933 TERRACE STREET, MUSKEGON, MI 49440 AGENDA □ CALL TO ORDER: □ PRAYER: □ PLEDGE OF ALLEGIANCE: □ ROLL CALL: □ HONORS AND AWARDS: □ INTRODUCTIONS/PRESENTATION: A. Introduction of Jake Eckholm and Peter Wills Planning & Economic Development B. ADA Update EEO/Affirmative Action Director □ CITY MANAGER’S REPORT: □ CONSENT AGENDA: A. Approval of Minutes City Clerk B. Fireworks Display Permit for Muskegon Country Club City Clerk C. Community Relations Committee Appointment Recommendations City Clerk D. Rescission of Land Use Restrictions for 350 Shoreline Drive Planning & Economic Development E. Demolition Contract for West Shoreline Correctional Facility Planning & Economic Development F. Approval of 2019-2020 Procurement Contracts for CNS Community & Neighborhood Services G. Approval of Sale: City-Owned Home at 1350 Eastwood Community & Neighborhood Services H. Request to Rezone 971 & 975 Washington Avenue Planning & Economic Development I. Amendment to the Form Based Code Section of the Zoning Ordinance Planning & Economic Development Page 1 of 3 J. Request to Approve Purchase Agreement 241 and 255 W. Western Avenue Planning & Economic Development K. Amendment to the Single-Family Residential Section of the Zoning Ordinance Planning & Economic Development L. Hartshorn Marina – Resolution of Support for Waterways Program Grant Application and Commitment for Matching Funds Department of Public Works M. Sheridan & Olthoff – Resolution of Support for Transportation Economic Development Funding Application and Commitment for Matching Funds Department of Public Works N. H91841 Walton Avenue & Marsh Street Department of Public Works O. H91858 Muskegon Avenue and Webster Avenue Re-Paint Department of Public Works /Engineering P. Set Dry Storage User Fee (Catamaran) Department of Public Works Q. City Hall – Chiller Unit Department of Public Works R. Procurement of Bubbler Control Panels DPW/Filtration S. Fifth Third Updated Account Resolution Finance T. First Amendment to the Lumberjacks Lease City Manager □ PUBLIC HEARINGS: A. Establishment of a Commercial Redevelopment District – 351 W Western Ave Planning & Economic Development B. Issuance of a Commercial Facilities Exemption Certificate–351 Phase II,LLC Planning & Economic Development □ COMMUNICATIONS: □ UNFINISHED BUSINESS: □ NEW BUSINESS: A. Request to Adopt the Proposed Amendments to the Master Land Use Plan Planning & Economic Development B. Concurrence with the Housing Board of Appeals Notice & Order to Demolish 593 W Webster Public Safety C. Second Quarter 2018-19 Budget Reforecast Finance □ 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. Page 2 of 3 ► Submit the form to the City Clerk. ► Be recognized by the Chair. ► Step forward to the microphone. ► State name and address. ► Limit of 3 minutes to address the Commission. ► (Speaker representing a group may be allowed 10 minutes if previously registered with City Clerk.) □ CLOSED SESSION: □ ADJOURNMENT: ADA POLICY: THE CITY OF MUSKEGON WILL PROVIDE NECESSARY AUXILIARY AIDS AND SERVICES TO INDIVIDUALS WHO WANT TO ATTEND THE MEETING UPON TWENTY-FOUR HOUR NOTICE TO THE CITY OF MUSKEGON. PLEASE CONTACT ANN MARIE MEISCH, CITY CLERK, 933 TERRACE STREET, MUSKEGON, MI 49440 OR BY CALLING (231) 724- 6705 OR TTY/TDD DIAL 7-1-1-22 TO REQUEST A REPRESENTATIVE TO DIAL (231) 724-6705. Page 3 of 3 Memorandum To: Mayor and Commissioners From: Frank Peterson Re: City Commission Meeting Date: March 21, 2019 Here is a quick outline of the items on our agendas: Goal-Setting Session: We will meet at 3:30 in a special session to finish the goal setting session. We hope to complete this portion by 5:15. Regular Session: 1. Under introductions, LeighAnn Mikesell will introduce Jake Eckholm and Peter Wills. Dwana Thompson will also be in attendance to provide an update on ADA Grievances received. 2. Under the Consent Agenda, we are asking the Commission to consider the following: a. Approval of meeting minutes from the most-recent City Commission meeting. b. Approve a fireworks display permit for the Muskegon Country Club. c. Approval of board appointments recommended by the Community relations Committee at their most-recent meeting. The appointments will fill vacancies in the Historic District Commission and the Local Officers Compensation Commission. d. We are seeking permission to rescind land use restrictions on a city-owned parcel located at 350 Shoreline Drive. The restrictions are part of a restrictive covenant entered into a number of years ago with the responsible party – DTE. We have met with their representatives and both sides have agreed to rescind these restriction and place new/updated restrictions on the property that will allow DTE to complete their required ongoing response activities. e. Approval of a demolition contract with Melching Demolition. The contract will result in the removal of all buildings and infrastructure on the prison site we are acquiring. This expense is required as part of the purchase agreement. f. Approval of the 2019-20 procurement contracts for CNS. Many of the contractors are unchanged from last year. CNS staff indicated that they would be brining additional procurement contractors at a later date to meet the needs of the department. g. We are seeking approval to finalize the sale of 1350 Eastwood Drive. This is a CNS home that is going to an income-qualified owner. h. We are seeking concurrence with the Planning Commission’s recommendation to rezone 971 and 975 Washington to accommodate an expansion planned at Fatty Lumpkin’s Sandwich Shack. i. We are seeking concurrence with the Planning Commission’s recommendation to amend the form based code to allow research and development in certain context areas. This will not allow for facilities using animals. j. We are seeking approval of the purchase agreement for 241 and 255 West Western. Last year, the Commission authorized us to complete a purchase agreement for $70,000 that included these two properties as well as a parcel on Webster between 8th Street and 9th Street. This purchase agreement is only related to the Western Avenue parcels. The sales price is unchanged. The development is scheduled to break ground this spring, and will include a series of attached townhouses. k. We are seeking concurrence with the Planning Commission’s recommendation to amend the single family zoning section of the zoning ordinance to clarify that a short-term vacation rental is a use by right in the district. l. Approval of a resolution supporting staff’s efforts to seek grant funding equal to $350,000, which represents 50% of the costs associated with phase one of the marina improvement plan. The goal is to secure funding this year and implement the improvements in 2020. m. Approval of a resolution supporting staff’s efforts to seek grant funding for the reconstruction of portions of Sheridan Drive and Olthoff Drive. n. We are seeking approval to pave two currently gravel portions of roadways – Walton Ave and Marsh Street. o. We are seeking approval of the bids to repaint Muskegon and Webster Avenues to accommodate more on-street parking. p. We are seeking to set the dry storage fee associated with catamaran storage. The new fee will match the fees charged at the small boat basin. This is a significant increase to the previous fee of $450/year. We have also reduced the total storage space from about 35 catamarans to 5 catamarans because of the high water levels. q. We are seeking approval to replace a chiller unit at City Hall. The problems were identified last fall. We would like to complete the work prior to summer weather. r. We are seeking permission to award a contract for bubbler control panels at the filtration plant. s. We are seeking approval of a resolution that will update the names and titles of the individuals that are authorized to sign on behalf of the City at our main depository back – Fifth Third. t. We are seeking approval to make three small amendments to the lease with the Lumberjacks that was approved last meeting. The change in paragraph 3 requires the team to provide 6 months’ notice if they intend to not renew at the end of one of the lease periods. The second change clarifies that the arena can sell its own concessions-related sponsorships, but that the large sponsorships (beer and soda) will continue to be part of the shared sponsorship agreement. The final amendment clarifies our expectations for dealing with any potential negative impacts to concessions sales that may arise out of adding the additional restaurant spaces to the arena. 3. Under Public Hearings, we are taking comments on the following: a. Establishment of a Commercial Redevelopment District at 351 West Western to accommodate the construction of Lakeview Lofts Phase 2. b. Issuance of a Commercial Facilities Exemption Certificate to 351 Phase II, LLC. The development’s commercial space investment will exceed $3.2 Million; this is in addition to anticipated investments in the residential portions of the mixed use development. 4. Under the New Business, we are asking the Commission to consider the following: a. We are seeking concurrence with the Planning Commission’s recommendation to the proposed amendments to the Master Land Use Plan. b. Concurrence with the Housing Board of Appeals’ decision to demolish one property. c. Approval of the Second Quarter Budget Reforecast. Let me know if you have any questions/comments/concerns Frank Date: March 18, 2019 To: Honorable Mayor and City Commissioners From: Ann Marie Meisch, City Clerk RE: Approval of Minutes SUMMARY OF REQUEST: To approve minutes of the March 11, 2019 Worksession and March 12, 2019 Regular Meeting. FINANCIAL IMPACT: None. BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: Approval of the minutes. CITY OF MUSKEGON CITY COMMISSION WORKSESSION Monday, March 11, 2019 5:30 p.m. City Commission Chambers MINUTES 2019-18 Present: Mayor Gawron, Vice-Mayor Hood, Commissioners Turnquist, Johnson, Warren, and Rinsema-Sybenga Absent: German Any Other Business There was discussion of the proposed Short Term Rental Ordinance that will appear on the agenda on March 12, 2019 for a second reading. Public Participation Comments were received from the public. Adjournment: The Worksession meeting adjourned at 7:53 p.m. Respectfully Submitted, Ann Marie Meisch – MMC, City Clerk CITY OF MUSKEGON CITY COMMISSION MEETING MARCH 12, 2019 @ 5:30 P.M. MUSKEGON CITY COMMISSION CHAMBERS 933 TERRACE STREET, MUSKEGON, MI 49440 The Regular Commission Meeting of the City of Muskegon was held at City Hall, 933 Terrace Street, Muskegon, MI at 5:30 p.m., Tuesday, March 12, 2019, Pastor D. W. Tolbert, New Hope Baptist Church, opened the meeting with prayer, after which the Commission and public recited the Pledge of Allegiance to the Flag. ROLL CALL FOR THE REGULAR COMMISSION MEETING: Present: Mayor Stephen J. Gawron, Vice Mayor Eric Hood, Commissioners Ken Johnson, Byron Turnquist, Debra Warren, and Dan Rinsema-Sybenga, City Manager Frank Peterson, City Attorney Brian Lieberman, and City Clerk Ann Meisch. Absent: Commissioner Willie German, Jr. INTRODUCTIONS/PRESENTATION: A. West Michigan Lake Hawks – Team Introduction and Presentation Mr. Ron Jenkins of the West Michigan Lake Hawks thanked the City Commission for supporting the team and updated those in attendance on the standings. B. Delta Days at City Hall Dwana Thompson Dwana Thompson, our Equal Employment Opportunity and Affirmative Action Director introduced her sorority sisters that will have Delta Days at City Hall. 2019-19 CONSENT AGENDA: A. Approval of Minutes City Clerk SUMMARY OF REQUEST: To approve minutes of the February 19, 2019 Joint Meeting with the Muskegon Public School Board, minutes of the February 26, 2019 Regular Meeting, and minutes of the March 1, 2019 Goal Setting Meeting. FINANCIAL IMPACT: None BUDGET ACTION REQUIRED: None STAFF RECOMMENDATION: Approval of the minutes. B. Fireworks Display Permit for Heritage Landing City Clerk Page 1 of 10 SUMMARY OF REQUEST: Night Magic is requesting approval of a fireworks display permit for July 4, 2019, at Heritage Landing. The fire Marshall will inspect the fireworks on the day of the event. FINANCIAL IMPACT: None BUDGET ACTION REQUIRED: None STAFF RECOMMENDATION: Approval contingent on inspection of the fireworks and approval of insurance. C. Adopt a Resolution Approving On-Premises Tasting Room Permit at 794 Pine Street City Clerk SUMMARY OF REQUEST: To adopt a resolution approving a new On-Premises Tasting Room Permit application for the Rake Beer Project, LLC at 794 Pine Street. FINANCIAL IMPACT: None BUDGET ACTION REQUIRED: None STAFF RECOMMENDATION: Adopt the resolution. D. Notice of Intent Resolution for Sanitary Sewer and Water Supply Revenue Bonds Finance SUMMARY OF REQUEST: The Notice of Intent Resolution is the first step in the bonding process. This resolution authorizes the publication of a Notice of Intent relating to the City’s bonds issued for the purposes of paying all or part of the cost to acquire, construct, furnish and equip improvements to the Sanitary Sewer and Water Supply System, including sewer system and Water Supply System, including sewer system and water supply system rehabilitation and replacement of existing sewer and water lines, together with pump station improvements and treatment plant improvements. The notices indicate the City’s intent to issue Sanitary Sewer System Revenue bonds not to exceed $8,500,000 and Water Supply System Revenue bonds not to exceed $2,000,000. FINANCIAL IMPACT: None BUDGET ACTION REQUIRED: None STAFF RECOMMENDATION: Approve the Notice of Intent Resolutions for Sanitary Sewer System Revenue Bonds not to exceed $8,500,000 and Water Supply System Revenue Bonds not to exceed $2,000,000. E. Amity Bridge – Resolution of Support for Bridge Funding Application and Commitment for Matching Funds Department of Public Works SUMMARY OF REQUEST: The Engineering Department would like to apply for bridge preservation funding through the Michigan Department of Transportation. These funds would be used to remove the Amity bridge and Page 2 of 10 build a new roadway on fill. The bridge was originally constructed to cross a railroad line that no longer exists. Construction is estimated at $415,000, and the city would be required to provide matching funds of approximately $90,000 plus engineering costs. Funding is available starting in 2022. The MDOT application requires a resolution of support and commitment for the matching funds. FINANCIAL IMPACT: $200,000 split over fiscal year 21/22 and 22/23. BUDGET ACTION REQUIRED: None at this time STAFF RECOMMENDATION: Approve the resolution of support for the bridge preservation fund application and commit to funding the required match and engineering costs. F. Resolution of Authority to Sign Street Lighting Contracts with Consumers Energy Department of Public Works SUMMARY OF REQUEST: Approve the resolution of authority to sign contracts with Consumers Energy to facilitate modifications to no more than 10 street lights per contract. FINANCIAL IMPACT: None BUDGET ACTION REQUIRED: None STAFF RECOMMENDATION: Approve the resolution. G. Authorized Representative for County Wastewater Committee Department of Public Works SUMMARY OF REQUEST: Approve the resolution to designate the Public Works Director as the authorized representative to the Muskegon Municipal Wastewater Committee. Retain the City Manager as the alternate representative to this committee. Authorize both to vote on behalf of the city in all business related to this committee. FINANCIAL IMPACT: None BUDGET ACTION REQUIRED: None STAFF RECOMMENDATION: Approve the resolution. H. Heritage Association Streetlight Easements Department of Public Works SUMMARY OF REQUEST: Authorize the mayor and clerk to sign easements with various property owners for city access to the lamp style streetlights in Heritage Village that are located on private property. Since the city will be responsible for future operation and maintenance, access to these lights is necessary. FINANCIAL IMPACT: None Page 3 of 10 BUDGET ACTION REQUIRED: None STAFF RECOMMENDATION: Authorize the mayor and clerk to sign the easements. I. Heritage Village Streetlights Department of Public Works SUMMARY OF REQUEST: Accept ownership of the 26 lamp style streetlights in Heritage Village. The city will be responsible for future operation and maintenance. All streetlights have been upgraded, are in working condition, and have been retrofitted with LED Lamps. FINANCIAL IMPACT: Cost of future operation and maintenance. BUDGET ACTION REQUIRED: Account for operation and maintenance in future budgets. STAFF RECOMMENDATION: Accept ownership of the streetlights. J. Request for Authorization to Sign Community & Neighborhood Services SUMMARY OF REQUEST: Request to authorize Oneata Bailey, CNS Director, to sign as an authorized person on behalf of the City. FINANCIAL IMPACT: None BUDGET ACTION REQUIRED: None STAFF RECOMMENDATION: To approve the authorizing resolution and direct the Mayor and Clerk to sign the resolution. Oneata Bailey has been signing agreements on behalf of the City since 2010. Motion by Commissioner Warren, second by Vice Mayor Hood, to approve the consent agenda as presented, except item K. ROLL VOTE: Ayes: Rinsema-Sybenga, Turnquist, Johnson, Gawron, Hood, and Warren Nays: None MOTION PASSES 2019-20 ITEMS REMOVED FROM CONSENT AGENDA: K. Short Term Vacation Rentals – Second Reading Public Safety SUMMARY OF REQUEST: The Director of Public Safety requests that the Commission consider approving a stand-alone ordinance “Short Term Vacation Rentals” regulation. The City has experienced an increase in short term vacation rentals over the past couple of years. These specialty rental offerings are not regulated in our current “Housing Rental” ordinance. The ordinance will address applying and receiving a short term rental certificate and a safety inspection of the unit(s). Certificate holders will be responsible for insuring tenants are aware Page 4 of 10 and complies with relevant city ordinances, with a focus on number of occupants, recreational fires, parking, fireworks, noise, and trash to name a few noted problem that staff has experienced in an attempt to regulate short term rentals. The requested ordinance will improve neighborhood relations where short term rentals are now located, create a safer and peaceful environment for short term tenants and residents. The staff recommends the annual fee of the Short Term Vacation Rentals to be $250.00 annually. FINANCIAL IMPACT: Revenue generated will be put into a separate account to be used for expenses and purchasing amenities for parks. BUDGET ACTION REQUIRED: None STAFF RECOMMENDATION: Staff recommends approval of the short term vacation rentals ordinance. Motion by Commissioner Turnquist, second by Commissioner Johnson, to approve the short term vacation rentals ordinance. ROLL VOTE: Ayes: Turnquist, Johnson, Gawron, Hood, Warren, and Rinsema- Sybenga Nays: None MOTION PASSES 2019-21 PUBLIC HEARINGS: A. Public Hearing for DWRF Project Plan Department of Public Works SUMMARY OF REQUEST: Conduct a public hearing related to the DWRF Project Plan that was posted for public comment on February 10, 2019 and approve the Resolution to adopt the plan. FINANCIAL IMPACT: BUDGET ACTION REQUIRED: STAFF RECOMMENDATION: Conduct public hearing and approve the resolution. PUBLIC HEARING COMMENCED: No public input was received. Motion by Commissioner Rinsema-Sybenga, second by Commissioner Johnson, to close the public hearing and approve the resolution to adopt the plan. ROLL VOTE: Ayes: Johnson, Gawron, Hood, Warren, Rinsema-Sybenga, and Turnquist Nays: None MOTION PASSES Page 5 of 10 B. Public Hearing – Request to Establish an Obsolete Property District – 1937 Lakeshore Drive Planning & Economic Development SUMMARY OF REQUEST: Pursuant to Public Act 146 of the Michigan Public Acts of 2000, Ghezzi Investments, LLC has requested the establishment of an Obsolete Property District for their property at 1937 Lakeshore Drive. The establishment of the Obsolete Property District would allow them to apply for an Obsolete Property Rehabilitation Exemption Certificate. FINANCIAL IMPACT: BUDGET ACTION REQUIRED: STAFF RECOMMENDATION: Staff recommends approval of the creation of the district. PUBLIC HEARING COMMENCED: Dick Ghezzi, 2017 Lakeshore Drive provided input. Motion by Commissioner Warren, second by Vice Mayor Hood, to close the public hearing and approve the creation of the district. ROLL VOTE: Ayes: Gawron, Hood, Warren, Rinsema-Sybenga, Turnquist, and Johnson Nays: None MOTION PASSES C. Public Hearing – Request to Issue an Obsolete Property Certificate – Ghezzi Investments, LLC Planning & Economic Development SUMMARY OF REQUEST: Pursuant to Public Act 146 of the Michigan Public Acts of 2000, Ghezzi Investments, LLC has requested the issuance of an Obsolete Property Certificate for their property located at 1937 Lakeshore Drive. Total capital investment for this project is estimated to be $1,100,000 and will include the addition of nine apartments and four commercial spaces. The applicant is eligible for a 12-year abatement because of the amount of investment. FINANCIAL IMPACT: BUDGET ACTION REQUIRED: STAFF RECOMMENDATION: Staff recommends approval of the Obsolete Property Rehabilitation Exemption Certificate. PUBLIC HEARING COMMENCED: No public input was received. Motion by Commissioner Rinsema-Sybenga, second by Commissioner Johnson, to close the public hearing and approve the Obsolete Property Rehabilitation Exemption Certificate. ROLL VOTE: Ayes: Hood, Warren, Rinsema-Sybenga, Turnquist, Johnson, and Gawron Page 6 of 10 Nays: None MOTION PASSES D. Recommendation for Annual Renewal of Liquor Licenses City Clerk SUMMARY OF REQUEST: To adopt a resolution recommending non-renewal of those liquor license establishments who are in violation of Section 50-146 and 50- 147 of the Code of Ordinances for the City of Muskegon. These establishments have been found to be in non-compliance with the City Code of Ordinances and renewal of their liquor licenses should not be recommended by the City Commission. If any of these establishments come into compliance by March 12, 2019, they will be removed from this resolution. FINANCIAL IMPACT: BUDGET ACTION REQUIRED: STAFF RECOMMENDATION: Adoption of the resolution. PUBLIC HEARING COMMENCED: No public input was received. Motion by Commissioner Rinsema-Sybenga, second by Commissioner Johnson, to close the public hearing and approve the resolution. ROLL VOTE: Ayes: Warren, Rinsema-Sybenga, Turnquist, Johnson, Gawron, and Hood Nays: None MOTION PASSES E. Marsh Field Passport Grant Application City Manager SUMMARY OF REQUEST: Marsh Field is need of a number of improvements. Muskegon Baseball has asked that the City submit a passport grant application to address some of those needs, including: universally-accessible dugouts, play equipment, walkway improvements, accessible picnic seating, and drinking fountains. The total cost of the improvements are estimated at $300,000. The City’s match would be $150,000. This request is being filed under public hearing to allow for public comment/input, although there is not a formal public hearing requirement in the grant process. FINANCIAL IMPACT: BUDGET ACTION REQUIRED: STAFF RECOMMENDATION: To approve the resolution authorizing the submission of the grant application and the financial commitment of $150,000 to match the funds received; local funds to be expensed from the Public Improvement Fund in FY 2019-20. Page 7 of 10 PUBLIC HEARING COMMENCED: Tiffany Smith, Representing Muskegon Baseball - 529 Greenwood, Grand Rapids, Presented an overview of proposed improvements that the grant would be used for. Mike Haueisen, 903 Turner, asked about fees through the passport. Ken Johnson, City Commissioner, asked if we received input from the disability community – yes, Disability Advocates of West Michigan will review. Motion by Commissioner Johnson, second by Commissioner Rinsema-Sybenga, to approve the resolution authorizing the submission of the grant application and the financial commitment of $150,000 to match the funds received; local funds to be expensed from the Public Improvement Fund in FY 2019-20. ROLL VOTE: Ayes: Rinsema-Sybenga, Turnquist, Johnson, Gawron, Hood, and Warren Nays: None MOTION PASSES 2019-22 NEW BUSINESS: A. LC Walker Arena – Lumberjacks Lease City Manager SUMMARY OF REQUEST: City staff is requesting approval of the lease with the Muskegon Lumberjacks. This is a long-term lease with multiple extension opportunities. A financial analysis sheet is attached to the lease to assist commissioners in quickly identifying the key financial changes in the new agreement. FINANCIAL IMPACT: BUDGET ACTION REQUIRED: STAFF RECOMMENDATION: To authorize the Clerk and Mayor to sign the lease. Motion by Commissioner Rinsema-Sybenga, second by Johnson, to authorize the Clerk and Mayor to sign the lease. ROLL VOTE: Ayes: Rinsema-Sybenga, Turnquist, Johnson, Gawron, Hood, and Warren Nays: None MOTION PASSES B. Purchase Agreement – 880 First Street, 731 Yuba Street, 205 East Muskegon Avenue, 287 East Muskegon Avenue, and 225 Eastern Avenue City Manager SUMMARY OF REQUEST: City staff is seeking permission to enter into a new Page 8 of 10 purchase agreement with Core Development, as follows: 1. Acquisition of the structure at 880 First Street for $150,000 2. Acquisition of the former farmers market site for $50,000 3. Closing on both parcels must take place on or before June 15, 2019 4. Closing is contingent on buyers receipt of the following incentives: a. City-approved Commercial Rehabilitation Certificate for 10 years b. State-issued Community Revitalization Program incentive equal to 20% of eligible expenses. c. City-approved Brownfield Reimbursement Plan to reimburse 100% of eligible expenses after City’s eligible expenses are fully reimbursed. d. Deployment of at least $1,850,000 for the development of a food and manufacturing incubation center on the ground floor of the building. FINANCIAL IMPACT: BUDGET ACTION REQUIRED: STAFF RECOMMENDATION: To authorize the clerk and mayor to sign a purchase agreement with the approved terms for city-owned properties located at 880 First Street and 731 Yuba Street. Motion by Commissioner Turnquist, second by Rinsema-Sybenga, to authorize the Clerk and Mayor to sign a purchase agreement with the approved terms form city-owned properties located at 880 First Street and 731 Yuba Street. ROLL VOTE: Ayes: Turnquist, Johnson, Gawron, Hood, Warren, and Rinsema- Sybenga Nays: None MOTION PASSES C. Purchase Agreement and Grant Agreement – West Shoreline Correctional Facility City Manager SUMMARY OF REQUEST: As part of the City’s effort to expand job-creation opportunities, staff is recommending purchase of approximately 60 acres from the State Land Bank. The site formerly housed the West Shoreline Correctional Facility. The funds necessary to satisfy the purchase agreement will be drawn from the Public Improvement Fund. Staff is also seeking approval of a $4 Million enhancement grant from the State of Michigan prior to closing to offset the purchase costs; these funds will be deposited into the Public Improvement Fund. FINANCIAL IMPACT: BUDGET ACTION REQUIRED: Page 9 of 10 STAFF RECOMMENDATION: To approve the purchase agreement and grant agreement, and authorize the City Clerk and Mayor to sign. Motion by Vice Mayor Hood, second Warren, to approve the purchase agreement and grant agreement, and authorize the City Clerk and Mayor to sign. ROLL VOTE: Ayes: Johnson, Gawron, Hood, Warren, Rinsema-Sybenga, and Turnquist Nays: None MOTION PASSES PUBLIC PARTICIPATION: Public Comments were received. ADJOURNMENT: The City Commission meeting adjourned at 7:47 p.m. Respectfully Submitted, Ann Marie Meisch, MMC – City Clerk Page 10 of 10 Date: March 19, 2019 To: Honorable Mayor and City Commissioners From: Ann Marie Meisch, City Clerk RE: Fireworks Display Permit for Muskegon Country Club SUMMARY OF REQUEST: Melrose Pyrotechnics, Inc. is requesting approval of a fireworks display permit for July 3, 2019 at the Muskegon Country Club, 2801 Lakeshore Drive. The fire Marshall will inspect the fireworks on the day of the event. FINANCIAL IMPACT: None. BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: Approval contingent on inspection of the fireworks and approval of insurance. Date: March 13, 2019 To: Honorable Mayor and City Commissioners From: Ann Marie Meisch, City Clerk RE: Community Relations Committee Appointment Recommendations SUMMARY OF REQUEST: To accept the recommendation to appoint Kimi George to the Historic District Commission and Marty Ferriby to the Local Officer’s Compensation Commission. FINANCIAL IMPACT: None. BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: To concur with the recommendations of the Community Relations Committee and approve the appointments. Date: 3/26/2019 To: Honorable Mayor and City Commissioners From: Planning Department RE: Rescission of Land Use Restrictions for 350 Shoreline Drive SUMMARY OF REQUEST: Authorize the mayor and clerk to sign the notice of rescission of land use restrictions for the city owned property located at 350 Shoreline Drive. This document rescinds the previous land use restrictions on the property and will be filed with the new restrictive covenant already approved by the commission at the February 12, 2019, meeting. FINANCIAL IMPACT: None BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: Authorize the mayor and clerk to sign the rescission of land use restrictions. The undersigned person executing this Notice is the Owner and certifies that he or she is duly authorized and has been empowered to execute and record this Notice. IN WITNESS WHEREOF, the said Owner of the above-described Property has caused this Notice to be executed on this ____ day of , 2019 BY: _________________________________________________ Signature ___________ ________ Name Date _________________________________________________________ Title and Municipality Name STATE OF MICHIGAN COUNTY OF _________ The foregoing instrument was acknowledged before me this ___________day of__________, 2019, by____________________________________, ________________________________________, Name Title and Municipality Name Owner of the Property. Notary Public Signature Printed Name Notary Public, State of County of My commission expires: Acting in the County of Prepared by: Nancy Johnson, MDEQ-RRD 350 Ottawa N.W. Grand Rapids, Michigan 49503 When filed, return to: Vincent Buening TRC Environmental Corporation 1540 Eisenhower Place Ann Arbor, Michigan 48108 EXHIBIT 1 LEGAL DESCRIPTION AND SURVEY OF PROPERTY TERRACE POINT DRIVE IVE DR INE EL OR N O SH R T H SCALE: 1" = 200' FIELD SURVEY BY: SUPERVISION BY: Prepared By: DRAWN BY: CHECKED BY: MOORE BRUGGINK, INC. Consulting Engineers 2020 Monroe Avenue N.W. DATE: PROJECT NO.: Grand Rapids, Michigan 49505-6298 Phone: (616) 363-9801 Web: www.mbce.com Date: 3/26/2019 To: Honorable Mayor and City Commissioners From: Planning/Economic Development Department RE: Demolition Contract for West Shoreline Correctional Facility SUMMARY OF REQUEST: Award the demolition of existing buildings at the West Shoreline Correctional Facility to Melching, Inc. Three contractors were contacted and reviewed the site. All three supplied bids as follows. Melching $338,910.10 JMB Demolition $452,300 Bierlein Companies, Inc. $838,400 FINANCIAL IMPACT: $338,910.10 BUDGET ACTION REQUIRED: None. The cost of demolition will be reimbursed by the MEDC grant. STAFF RECOMMENDATION: Award the project to the low bidder, Melching, Inc. City Of Muskegon Project Description: West Shoreline Correctional Facility Demolition Project Number: Project Engineer: Bid Opening: 12-Mar-19 Melching, Inc. JMB Demolition, LLC Bierlein Companies, Inc. Line Item Pay Code Description Units Quantity Unit Price Total B Total Unit Price Total 1 Demolish Storage Building LSUM 1 $ 11,583.00 $ 11,583.00 $ 15,750.00 $ 15,750.00 $ 18,800.00 $ 18,800.00 2 Demolish Storage/Transportation Building LSUM 1 $ 12,150.00 $ 12,150.00 $ 12,250.00 $ 12,250.00 $ 18,800.00 $ 18,800.00 3 Demolish Inside Administration Building LSUM 1 $ 11,793.60 $ 11,793.60 $ 13,125.00 $ 13,125.00 $ 18,600.00 $ 18,600.00 4 Demolish Outside Administration Building LSUM 1 $ 11,056.50 $ 11,056.50 $ 12,250.00 $ 12,250.00 $ 18,600.00 $ 18,600.00 5 Demolish Educational Facility LSUM 1 $ 17,374.50 $ 17,374.50 $ 17,500.00 $ 17,500.00 $ 31,600.00 $ 31,600.00 6 Demolish Chapel LSUM 1 $ 4,212.00 $ 4,212.00 $ 6,125.00 $ 6,125.00 $ 6,500.00 $ 6,500.00 7 Demolish Food Service Facility LSUM 1 $ 17,253.00 $ 17,253.00 $ 25,000.00 $ 25,000.00 $ 28,000.00 $ 28,000.00 8 Demolish Housing Building 1 LSUM 1 $ 34,830.00 $ 34,830.00 $ 35,000.00 $ 35,000.00 $ 49,900.00 $ 49,900.00 9 Demolish Housing Building 2 LSUM 1 $ 34,830.00 $ 34,830.00 $ 35,000.00 $ 35,000.00 $ 49,900.00 $ 49,900.00 10 Demolish Housing Building 3 LSUM 1 $ 34,830.00 $ 34,830.00 $ 35,000.00 $ 35,000.00 $ 49,900.00 $ 49,900.00 11 Demolish Housing Building 4 LSUM 1 $ 34,830.00 $ 34,830.00 $ 35,000.00 $ 35,000.00 $ 49,900.00 $ 49,900.00 12 Remove Fencing LSUM 1 $ 15,500.00 $ 15,500.00 $ 25,800.00 $ 25,800.00 $ 36,200.00 $ 36,200.00 13 Demolish Miscellaneous Structures LSUM 1 $ 5,467.50 $ 5,467.50 $ 15,000.00 $ 15,000.00 $ 21,700.00 $ 21,700.00 14 Remove Asphalt Surfaces LSUM 1 $ 19,100.00 $ 19,100.00 $ 45,000.00 $ 45,000.00 $ 137,900.00 $ 137,900.00 15 Remove Concrete Surfaces LSUM 1 $ 14,100.00 $ 14,100.00 $ 27,000.00 $ 27,000.00 $ 156,500.00 $ 156,500.00 16 Site Restoration LSUM 1 $ 60,000.00 $ 60,000.00 $ 97,500.00 $ 97,500.00 $ 145,600.00 $ 145,600.00 BASE BID $ 338,910.10 $ 452,300.00 $ 838,400.00 As-Read Same Same Same Page 1 of 1 Commission Meeting Date: March 26, 2019 Date: March 19, 2019 To: Honorable Mayor & City Commission From: Community and Neighborhood Services Department RE: Approval of 2019-2020 Procurement Contracts for CNS SUMMARY OF REQUEST: To approve the following Trades-Services procured through sealed bid proposals producing the lowest responsible bidder with potential for one year extension. Appraisal: Midwest Real Estate Building: Midwest Builders Electrical: Belasco Electric Foundation Repair: Deitz House Moving Engineers House Building Spec Writer: Hager Consulting Interior Cleaning: True Clean Building Services Property Maintenance: Walker Handyman Enterprises Lead Assessment & Clearance: AAA Lead Inspections Mechanical: Bishop Heating and Cooling Painting: Walker Handyman Enterprises Title Service: AAA National Title Group Tree Service: Integrity Tree Services Tub Glazing: Pro Cleaners Vinyl Installer: Mark N Tucker LLC FINANCIAL IMPACT: None BUDGET ACTION REQUIRED: None STAFF RECOMMENDATION: To approve the procured list of contractors and possible one year extension for Trade Contractors-Service Providers for the Community and Neighborhood Services during 2019. COMMITTEE RECOMMENDATION: None required. Commission Meeting Date: March 26, 2019 Date: March 18, 2019 To: Honorable Mayor & City Commission From: Community and Neighborhood Services Department RE: Approval of Sale: City-Owned Home at 1350 Eastwood SUMMARY OF REQUEST: To approve the attached resolution and instruct the Community and Neighborhood Services department to complete the sales transaction with Alexis Eziukwu for the rehabilitated home at 1350 Eastwood Drive: purchase price $137,000. FINANCIAL IMPACT: The proceeds from the sale will be used to continue the rehabilitation of affordable homes through the HOME program and provide funding for our Homebuyer’s Assistance Program. BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: To approve the resolution and direct the CNS staff to complete the sale. COMMITTEE RECOMMENDATION: None. MUSKEGON CITY COMMISSION RESOLUTION TO APPROVE THE SALE OF HUD PROPERTY AT 1350 EASTWOOD DRIVE WHEREAS, the City of Muskegon is dedicated to the redevelopment of its neighborhoods and; WHEREAS, the City of Muskegon is dedicated to promoting high quality affordable single-family housing in the community and; WHEREAS, the City of Muskegon is dedicated to promoting homeownership throughout its neighborhoods; NOW THEREFORE, BE IT RESOLVED that the City Commission hereby approves the sale of the property at 1350 Eastwood Drive to Alexis Eziukwu. This home has been rehabilitated by Community and Neighborhood Services Department through the Home-Buyer Program. Adopted this 26th of March, 2019. Ayes: Nays: By ______________________________ Stephen J. Gawron, Mayor By ______________________________ Ann Marie Cummings, MMC City Clerk AM_Resolution Commission Meeting Date: March 26, 2019 Date: March 21, 2019 To: Honorable Mayor and City Commissioners From: Planning & Economic Development RE: Request to Rezone 971 & 975 Washington Ave SUMMARY OF REQUEST: Request to rezone the properties at 971 & 975 Washington Ave from R-2, Single Family Medium Density Residential to Form Based Code, Neighborhood Edge, by Brett Gilbert. FINANCIAL IMPACT: None BUDGET ACTION REQUIRED: None STAFF RECOMMENDATION: Staff recommends approval of the rezonings COMMITTEE RECOMMENDATION: The Planning Commission unanimously (8-0) recommended approval of the rezonings at their March 14 meeting. 1 STAFF REPORT March 14, 2019 Hearing, Case 2019-04: Request to rezone the properties at 971 & 975 Washington Ave from R-2, Single Family Medium Density Residential to Form Based Code, Neighborhood Edge, by Brett Gilbert. SUMMARY 1. Both properties are owned by Brett Gilbert, owner of Fatty Lumpkins at 971 Washington Ave. This restaurant was approved as a Special Land Use by the Planning Commission in 2009. Mr Gilbert has since bought the commercial property to the west at 975 Washington Ave and would like to utilize the existing building as an extension of Fatty Lumpkins. Rather than asking for another Special Land Use Permit for the new restaurant space, staff encouraged him to apply for a rezoning, which would allow for the restaurant without a Special Land Use Permit and would also make it easier to develop the properties if there are any future expansions. 2. Form Based Code, Neighborhood Edge is a common zoning designation for commercial properties in this area. Please see the zoning maps on the following page. 3. This zoning designation also allows for residential homes as well, in the event the restaurant moves to another location. Please see the zoning ordinance excerpt on Neighborhood Edge. 4. Both properties meet the minimum size (25’ x 100’) standards for Neighborhood Edge lots. Both lots are approximately 26’ x 127’. 971 / 975 Washington Ave 2 Zoning Map Form Based Code, Neighborhood Edge Properties 3 Aerial Map 4 CITY OF MUSKEGON MUSKEGON COUNTY, MICHIGAN ORDINANCE NO. An ordinance to amend the zoning map of the City to provide for a zone change for 971 & 975 Washington Ave from R-2, Single Family Medium Density Residential to FBC, Neighborhood Edge. THE CITY COMMISSION OF THE CITY OF MUSKEGON HEREBY ORDAINS: The zoning map of the City of Muskegon is hereby amended to change the zoning for 971 & 975 Washington Ave from R-2, Single Family Medium Density Residential to FBC, Neighborhood Edge. CITY OF MUSKEGON REVISED PLAT OF 1903 E 24 FT OF W 54 FT LOT 1 BLK 479 CITY OF MUSKEGON REVISED PLAT OF 1903 WLY 30 FT LOT 1 BLK 479 This ordinance adopted: Ayes: Nayes: Adoption Date: Effective Date: First Reading: Second Reading: CITY OF MUSKEGON By: __________________________ Ann Meisch, MMC City Clerk 5 CERTIFICATE (Rezoning 971 & 975 Washington Ave from R-2 to FBC, NE) The undersigned, being the duly qualified clerk of the City of Muskegon, Muskegon County, Michigan, does hereby certify that the foregoing is a true and complete copy of an ordinance adopted by the City Commission of the City of Muskegon, at a regular meeting of the City Commission on the 26th day of March 2019, 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 the Michigan Zoning Enabling Act, Public Acts of Michigan No. 33 of 2006, and that minutes were kept and will be or have been made available as required thereby. DATED: ___________________, 2019 ________________________________ Ann Meisch, MMC Clerk, City of Muskegon Publish Notice of Adoption to be published once within ten (10) days of final adoption. 6 CITY OF MUSKEGON NOTICE OF ADOPTION Please take notice that on March 26, 2019, the City Commission of the City of Muskegon adopted an ordinance amending the zoning map to provide for the change of zoning for 971 & 975 Washington Ave from R-2 to FBC, NE: CITY OF MUSKEGON REVISED PLAT OF 1903 E 24 FT OF W 54 FT LOT 1 BLK 479 CITY OF MUSKEGON REVISED PLAT OF 1903 WLY 30 FT LOT 1 BLK 479 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 ____________________, 2019 CITY OF MUSKEGON By ___________________________ Ann Meisch, MMC City Clerk --------------------------------------------------------------------------------------------------------------------- PUBLISH ONCE WITHIN TEN (10) DAYS OF FINAL PASSAGE. Account No. 101-80400-5354 7 Commission Meeting Date: March 26, 2019 Date: March 21, 2019 To: Honorable Mayor and City Commissioners From: Planning & Economic Development RE: Amendment to the Form Based Code section of the Zoning Ordinance SUMMARY OF REQUEST: Staff initiated request to amend the zoning ordinance to allow research and development as a permitted use in the Downtown and Mainstreet context areas of the Form Based Code. FINANCIAL IMPACT: None BUDGET ACTION REQUIRED: None STAFF RECOMMENDATION: To approve the zoning ordinance amendment COMMITTEE RECOMMENDATION: The Planning Commission unanimously recommended approval of the request 8-0, as long as staff recommends a definition for “research and development” that excludes animal testing, noise and odor. Hearing, Case 2019-05: Staff initiated request to amend the zoning ordinance to allow research and development as a permitted use in the Downtown and Mainstreet context areas of the Form Based Code. SUMMARY 1. The Form Based Code allows for Research & Development in the Neighborhood Core Neighborhood Edge Context Areas, as long as they are in a mixed-use or flex building type. 2. Staff is proposing to allow Research & Development in the Downtown and Mainstreet Context Areas because of the low-impact on surrounding uses and possibility of attracting more businesses downtown. 3. Research & Development refers to the work a business conducts for the innovation, introduction and improvement of its products and procedures. It is a series of investigative activities to improve existing products and procedures or to lead to the development of new products and procedures. 4. This use is not nearly as intensive as industrial. Allowing them only in mixed-use and flex buildings would assure that they are a secondary use of a building and not the main tenant. STAFF’S RECOMMENDATION FOR DEFINITION Research and Development: • The innovation, introduction and improvement of products and procedures. A series of investigative activities to improve existing products and procedures or to lead to the development of new products and procedures. This excludes animal testing and uses that would cause a nuisance due to noise or odor. Downtown Context Area Mainstreet Context Area CITY OF MUSKEGON MUSKEGON COUNTY, MICHIGAN ORDINANCE NO._____ An ordinance to amend the Form Based Code Section of the Zoning Ordinance to allow research and development as a permitted use in the Downtown and Mainstreet context areas. THE CITY COMMISSION OF THE CITY OF MUSKEGON HEREBY ORDAINS: NEW LANGUAGE Research & Development is allowed as a permitted use in the Downtown and Mainstreet context areas of the Form Based Code. This ordinance adopted: Ayes:______________________________________________________________ Nayes:_____________________________________________________________ Adoption Date: Effective Date: First Reading: Second Reading: CITY OF MUSKEGON By: _________________________________ Ann Meisch, MMC, City Clerk CERTIFICATE The undersigned, being the duly qualified clerk of the City of Muskegon, Muskegon County, Michigan, does hereby certify that the foregoing is a true and complete copy of an ordinance adopted by the City Commission of the City of Muskegon, at a regular meeting of the City Commission on the 26th day of March, 2019, 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 the Michigan Zoning Enabling Act, Public Acts of Michigan No. 33 of 2006, and that minutes were kept and will be or have been made available as required thereby. DATED: ___________________, 2019. __________________________________________ Ann Meisch, MMC Clerk, City of Muskegon 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 March 26, 2019, the City Commission of the City of Muskegon adopted an ordinance to amend the Form Based Code section of the Zoning Ordinance to allow research and development as a permitted use in the Downtown and Mainstreet context areas. 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 ____________________, 2019. CITY OF MUSKEGON By _________________________________ Ann Meisch, MMC City Clerk --------------------------------------------------------------------------------------------------------------------- PUBLISH ONCE WITHIN TEN (10) DAYS OF FINAL PASSAGE. Account No. 101-80400-5354 6 Commission Meeting Date: March 19, 2019 Date: March 21, 2019 To: Honorable Mayor and City Commissioners From: Planning & Economic Development RE: Request to Approve the Purchase Agreement – 241 and 255 W Western Ave SUMMARY OF REQUEST: City staff has been working with a housing developer that is interested in creating multifamily housing on these lots. The City Commission authorized the City Manager to negotiate a purchase agreement at the March 7, 2018 Commission meeting. FINANCIAL IMPACT: Funds from the sale will go into the General Fund. BUDGET ACTION REQUIRED: None STAFF RECOMMENDATION: Staff recommends approval of the purchase agreement. COMMITTEE RECOMMENDATION: None REAL ESTATE PURCHASE AGREEMENT 1 This Real Estate Purchase Agreement (“Agreement”) has been made as of ____________, 2019 (“Effective Date”), by the City of Muskegon, a Michigan municipal corporation, of 933 Terrace Street, Muskegon, Michigan 49440 (“City”) and ___________________________, of _________________ (“Dusendang”), with reference to the following facts: Background A. City owns the vacant real property located in the City of Muskegon commonly known as 241 W. Western Avenue, Muskegon, Michigan 49440 and 255 W. Western Avenue, Muskegon, Michigan 49440, and legally described on Exhibit A, together with all improvements, fixtures, easements, hereditaments, and appurtenances associated with the real estate (the “Property”). B. Dusendang desires to purchase and City desires to sell to Dusendang that certain 60-foot northerly portion of the Property as depicted and legally described on Exhibit A (the “Premises”) for the purpose of constructing a mixed use commercial-residential property (the “Project”), as depicted on the attached Exhibit B. Therefore, for good and valuable consideration, the parties agree as follows: 1. Sale and Purchase of Premises. City agrees to sell to Dusendang, and Dusendang agrees to purchase from City, on the terms and subject to the conditions set forth in this Agreement, the Premises. 2. Purchase Price; Payment. The purchase price for the Premises shall be $70,000 (the “Purchase Price”), payable at Closing (as defined below) in immediately available funds. Dusendang shall pay the full Purchase Price, including any adjustments and/or prorations contained herein, to City at Closing in certified funds upon execution and delivery of a quit claim deed. 3. Construction Dates. Construction shall commence prior to January 1, 2019 and be completed by January 1, 2020. For purposes of this paragraph, commencing construction means furnishing labor and materials to the Premises and beginning installation of the approved building foundations for the Project. Completing construction means the issuance of an occupancy permit by the City of Muskegon for the approved Project. In the event Dusendang is unable to commence construction by January 1, 2019 or complete construction prior to January 1, 2020, Dusendang shall promptly notify City and the City shall have the option of granting an extension or terminating this Agreement. 4. City’s Option to Purchase or Sell the Premises upon Termination. Upon the termination of this Agreement pursuant to Section 3, City shall have the option to purchase the Premises, including all improvements thereon. If the Project has been commenced at the time of the exercise of the option, City may, but shall have no obligation to, complete the Project at its own cost and expense or sell it to another party for purposes of completing the Project. With regard to City’s purchase of the Premises pursuant to this Section: a. The purchase price for the Premises, including all improvements thereon, shall be $35,000 plus the lesser of (i) one half of the actual cost of all construction performed by Dusendang on the Premises, or (ii) one half of the appraised value of the Project, excluding the Premises, as of the date of the termination notice as determined by a qualified appraiser selected by City in its sole discretion. 2 b. City’s option shall be exercisable at any time within 30 days following the date of the termination notice. c. Within 10 days after City has exercised its option, Dusendang shall deliver to City, at Dusendang's expense, a commitment for issuance of an ALTA owner's policy of title insurance, with standard exceptions, in the amount of the purchase price of the Property showing City as the proposed insured, subject only to use restrictions and utility easements of record, and such liens and encumbrances that will be discharged at closing. If the evidence of title or any survey discloses that marketable title of record is not vested in Dusendang, or if there exists encumbrances on the Premises other than use restrictions and utility easements of record, City may apply any portion of the proceeds payable to Dusendang to curing any such deficiencies or obtaining the release and discharge of such encumbrances. If the encumbrances to title are not curable or dischargeable by the application of proceeds, City may rescind the exercise of its option by written notice to Dusendang. d. Should City exercise its option, Dusendang shall be responsible for payment of all real estate taxes pertaining to the Premises for which a tax statement has been issued prior to the date of closing, without proration. All tax statements issued subsequent to the date of closing shall be City’s responsibility. e. The closing of the sale following the exercise of City’s option shall take place at a reasonable time and location mutually acceptable to Dusendang and City in Muskegon County, Michigan, after the title evidence provided for herein has been approved by City. In no event, however, shall closing be delayed beyond 30 days from the receipt by City of the title evidence provided for herein, unless such delay shall be due to a defect in title that City has granted Dusendang further time to cure. f. Following the termination of this Agreement, City shall have the right, but not the obligation, to have it or its designee be assigned the rights, and assume the obligations, of Dusendang under contracts in respect of services in connection with the development or construction of the Project. 5. Title Policy and Survey. a. Within 5 days after the Effective Date, Dusendang shall order a title commitment for an extended coverage ALTA owner’s policy of title insurance issued by Transnation Title Agency (the “Title Company”) for the Premises in the amount of the Purchase Price and bearing a date later than the Effective Date, along with copies of all of the underlying documents referenced therein (the “Title Commitment”). Dusendang shall cause the Title Company to issue a marked-up commitment or pro forma owner’s policy with respect to the Premises at the Closing naming Dusendang as the insured and in form and substance satisfactory to Dusendang, but subject to the Permitted Exceptions (defined below). As soon as possible after the Closing, Dusendang shall cause the Title Company to furnish to Dusendang an extended coverage ALTA owner’s policy of title insurance with respect to the Premises (the “Title Policy”). Dusendang shall be responsible for the cost of the Title Policy and any endorsements to the Title Policy that Dusendang desires. b. Dusendang may order at its sole cost an ALTA/ACSM Land Title Survey of the Premises in accordance with the most current ALTA Standards (the “Survey”), certified to 3 Dusendang and to the Title Company. c. City, at its expense, shall prior to Closing complete the division of the Property so that the Premises is a separately identified tax parcel. 6. Title Objections. Dusendang shall have until the end of the Inspection Period (as defined below) within which to raise objections to the status of the City’s title to the Premises or matters shown on the Survey. If objection to the title and/or Survey is made, City shall have 7 days from the date it is notified in writing of the particular defects claimed to either (a) remedy the objections or (b) notify Dusendang that it will not remedy the objections. If Dusendang does not notify City in writing as to any title or survey objections, then Dusendang will be deemed to have accepted the condition of title and survey as set forth in the Title Commitment and Survey. If City is unwilling or unable to remedy the title and/or survey defect or obtain title insurance over such defects within the time period specified, then notwithstanding anything contained herein to the contrary, Dusendang may, at its option, upon written notice to City, either (i) terminate this Agreement, or (ii) waive such objection, in which case such objection shall become a Permitted Exception, and thereafter proceed to the Closing according to the terms of this Agreement. Any matter disclosed on the Title Commitment or the Survey which is waived or not objected to by Dusendang shall be deemed a “Permitted Exception.” The foregoing notwithstanding, no mortgage, monetary encumbrance, lien (except the lien of real estate taxes not yet due and payable) or tenancy right shown on the Title Commitment shall be considered a Permitted Exception, and City shall discharge of record all monetary encumbrances, liens, and tenancy rights affecting the Premises at or prior to Closing. 7. Property Taxes and Assessments. City shall be responsible for the payment of all real estate taxes and assessments that become due and payable prior to Closing, without proration. Dusendang shall be responsible for the payment of all real estate taxes and assessments that become due and payable after Closing, without proration. 8. Inspection Period. At Dusendang’s sole option and expense, Dusendang and Dusendang’s agents may conduct inspections of the Premises within 30 days after the Effective Date (“Inspection Period”). Dusendang’s inspection under this Section may include, by way of example but not limitation, inspections of any existing improvements to the Premises, other systems servicing the Premises, zoning, and the suitability for Dusendang’s intended purposes for the Premises. If Dusendang, in Dusendang’s sole discretion, is not satisfied with the results of the inspections for any reason, Dusendang shall notify City in writing of Dusendang’s dissatisfaction within 3 business days after the expiration of the 30-day Inspection Period. If Dusendang so notifies City, this Agreement shall be terminated and have no further force and effect. If no written objection is made by Dusendang within the stated period, this inspection contingency shall be deemed to be waived by Dusendang and the parties shall proceed to closing in accordance with the terms of this Agreement. 9. Condition of Premises. Dusendang understands and agrees that the Premises are taken “AS IS” subject only to the representations and warranties set forth in this Agreement. Dusendang represents that by closing on the purchase of the Premises, Dusendang will be purchasing the Premises as a result of its inspection and investigation of the Premises and that Dusendang is satisfied with the condition of the land and improvements thereon. Dusendang further represents and warrants that it is not purchasing the Premises based on any representations made by or on behalf of City except as specifically set forth in this Agreement. No implied warranties of habitability, quality, condition, fitness for a particular purpose, or any other implied warranties shall operate between City and Dusendang, and Dusendang expressly waives any and all such implied 4 warranties. 10. City’s Representations and Warranties. a. Authority. City is a Michigan municipal corporation duly organized, validly existing, and in good standing under the laws of the State of Michigan. b. Litigation. There is no litigation or proceeding either pending or, to the best of City’s knowledge without independent inquiry, threatened against or relating to the Premises in any judicial, quasi-judicial or administrative forum. c. Violations. To the best of City’s knowledge without independent inquiry, except as disclosed in writing to, and accepted by Dusendang, there are, and shall be, no uncured violations including, without limitation, environmental violations, of any laws, ordinances, orders, regulations, rules, or requirements of any governmental authority, affecting the Premises or any part thereof. d. Environmental. To the best of City’s knowledge without independent inquiry, no toxic or hazardous substance or waste as defined in any federal, state or local environmental law, ordinance, rule or regulation have been used, stored, generated, recycled, treated, released, spilled, discharged or otherwise disposed of on, in, under, or otherwise affecting the Premises. To the best of City’s knowledge without independent inquiry, City has not received any notice from any applicable governmental entity of the potential or actual existence of any hazardous substance on, in, under, adjacent to, or otherwise affecting the Premises. e. No Violation of Law. The performance of this Agreement by City will not be in violation of any laws, statutes, local ordinances, state or federal regulations, court or administrative order, or ruling, nor is the performance of this Agreement in violation of any loan document’s conditions or restrictions in effect for financing, whether secured or unsecured. 11. Dusendang’s Representations and Warranties. a. Authority. Dusendang is a _______________________. Dusendang has the power and authority to enter into and perform Dusendang’s obligations under this Agreement. b. Litigation. No judgment is outstanding against Dusendang and no litigation, action, suit, judgment, proceeding, or investigation is pending or outstanding before any forum, court, or governmental body, department or agency or, to the knowledge of Dusendang, threatened, that has the stated purpose or the probable effect of enjoining or preventing the Closing. c. Bankruptcy. No insolvency proceeding, including, without limitation, bankruptcy, receivership, reorganization, composition, or arrangement with creditors, voluntary or involuntary, affecting Dusendang or any of Dusendang's assets or properties, is now or on the Closing Date will be pending or, to the knowledge of Dusendang, threatened. 5 d. Sufficient Funds. Dusendang will have sufficient funds to pay the Purchase Price at Closing. 12. Conditions Precedent. This Agreement and all of the obligations of Dusendang under this Agreement are, at Dusendang’s option, subject to the fulfillment, before or at the time of the Closing, of each of the following conditions: a. Representations and Warranties True at the Closing. The representations, covenants, and warranties of City contained in this Agreement shall be true in all material respects at the time of the Closing. b. Performance. The obligations, agreements, documents, and conditions required to be signed and performed by City shall have been performed and complied with before or at the date of the Closing. c. Lot Division. City has completed the division of the Property so that the Premises are a separate tax parcels. d. City Commission Approval. This Agreement is approved by the Muskegon City Commission. 13. Parkland Easement. The parties acknowledge that a non-exclusive easement exists over a portion of the Property on the western edge of 255 W. Western Avenue (“Easement”). The Easement was granted by City to Parkland Muskegon, Inc., owner of the adjacent property to the west, on March 23, 2017. A copy of the Easement Agreement is attached as Exhibit C. The parties agree that Dusendang shall not construct over any portion of the Easement. 14. Default. a. By Dusendang. In the event Dusendang fails to comply with any or all of the obligations, covenants, warranties, or agreements under this Agreement and such default is not cured within 10 days after receipt of notice (other than Dusendang’s failure to tender the purchase price in full at Closing, a default for which no notice is required), then City may terminate this Agreement. b. By City. In the event City fails to comply with any or all of the obligations, covenants, warranties or agreements under this Agreement, and such default is not cured within 10 days after receipt of notice, then Dusendang may either terminate this Agreement or Dusendang may pursue its legal and/or equitable remedies against City including, without limitation, specific performance. 15. Closing. a. Date of Closing. Unless the parties otherwise mutually agree, the Closing shall be held no later than 10 days after Dusendang provides written notification to City that all of the requirements set forth in Section 12 have been fulfilled to the full satisfaction of Dusendang, but no later than __________________, 2018, unless this Agreement is terminated in accordance with its provisions (“Closing”). b. Costs. The costs associated with this Agreement and the Closing shall be 6 paid as follows: (i) City shall pay any state and county transfer taxes in the amount required by law; (ii) City shall pay the premium for the owner’s policy of title insurance, provided that Dusendang shall pay for endorsements to the Title Policy which Dusendang desires; (iii) City shall be responsible to pay for the recording of any instrument that must be recorded to clear title to the extent required by this Agreement; (iv) Dusendang shall pay for the cost of recording the deed; and (v) City and Dusendang shall pay equally any Closing fees charged by the Title Company. c. Deliveries. At Closing, City shall deliver a quit claim deed for the Premises and Dusendang shall pay the balance of the purchase price. The parties shall execute and deliver such other documents reasonably required to effectuate the transaction contemplated by this Agreement. 16. Real Estate Commission. Dusendang and City shall each be responsible for any fees for any real estate agents, brokers, or salespersons regarding this sale that it has hired, but shall have no obligation as to any fees for any real estate agents, brokers, or salespersons regarding this sale that the other party has hired. 17. Notices. All notices, approvals, consents and other communications required under this Agreement shall be in writing and shall be deemed given: (i) when delivered in person; (ii) when sent by fax or email: (iii) when sent by a nationally-recognized receipted overnight delivery service with delivery fees prepaid; or (iv) when sent by United States first-class, registered, or certified mail, postage prepaid. The notice shall be effective immediately upon personal delivery or upon transmission of the fax or email; one day after depositing with a nationally recognized overnight delivery service; and five days after sending by first class, registered, or certified mail. Notices shall be sent to the parties as follows: To City: City of Muskegon Attn.: Frank Peterson, City Manager 933 Terrace Street Muskegon, MI 49440 w/ copy to: Parmenter Law Attn.: John C. Schrier 601 Terrace Street, Suite 200 Muskegon, Michigan 49440 Email: john@parmenterlaw.com To Dusendang: Dave Dusendang ________________________ ________________________ Email: __________________ 18. Miscellaneous. a. Governing Law. This Agreement will be governed by and interpreted in accordance with the laws of the state of Michigan. b. Entire Agreement. This Agreement constitutes the entire agreement of the parties and supersedes any other agreements, written or oral, that may have been made by 7 and between the parties with respect to the subject matter of this Agreement. All contemporaneous or prior negotiations and representations have been merged into this Agreement. c. Amendment. This Agreement shall not be modified or amended except in a subsequent writing signed by all parties. d. Binding Effect. This Agreement shall be binding upon and enforceable by the parties and their respective legal representatives, permitted successors, and assigns. e. Counterparts. This Agreement may be executed in counterparts, and each set of duly delivered identical counterparts which includes all signatories, shall be deemed to be one original document. f. Full Execution. This Agreement requires the signature of all parties. Until fully executed, on a single copy or in counterparts, this Agreement is of no binding force or effect and if not fully executed, this Agreement is void. g. Non-Waiver. No waiver by any party of any provision of this Agreement shall constitute a waiver by such party of any other provision of this Agreement. h. Severability. Should any one or more of the provisions of this Agreement be determined to be invalid, unlawful, or unenforceable in any respect, the validity, legality, and enforceability of the remaining provisions of this Agreement shall not in any way be impaired or affected. i. No Reliance. Each party acknowledges that it has had full opportunity to consult with legal and financial advisors as it has been deemed necessary or advisable in connection with its decision to knowingly enter into this Agreement. Neither party has executed this Agreement in reliance on any representations, warranties, or statements made by the other party other than those expressly set forth in this Agreement. j. Assignment or Delegation. Except as otherwise specifically set forth in this Agreement, neither party shall assign all or any portion of its rights and obligations contained in this Agreement without the express or prior written approval of the other party, in which approval may be withheld in the other party's sole discretion. k. Venue and Jurisdiction. The parties agree that for purposes of any dispute in connection with this Agreement, the Muskegon County Circuit Court shall have exclusive personal and subject matter jurisdiction and that Muskegon County is the exclusive venue. 8 CITY: DUSENDANG: CITY OF MUSKEGON By: _______________________________ By: _______________________________ Name: Stephen J Gawron Name: Dave Dusendang Title: Mayor Title: _____________________________ Dated: __________________, 2019 Dated: __________________, 2019 By: _______________________________ Name: Ann Marie Meisch Title: City Clerk Dated: __________________, 2019 9 Exhibit A Legal Description The following described premises are situated in the City of Muskegon, County of Muskegon, State of Michigan: Unit 2, Downtown Muskegon Development Center No. 2, a Site Condominium, according to the Master Deed recorded in Liber 3703, Page 106, as amended, in the office of the Muskegon County Register of Deeds, and designated as Muskegon County Condominium Subdivision Plan No. 162, together with rights in general common elements and limited common elements as set forth in said Master Deed, and amendments thereto, and as described in Act 59 of the Public Acts 1976, as amended. Parcel No.: 61-24-234-000-0002-00 Commonly known as: 255 W. Western Avenue Unit 3, Downtown Muskegon Development Center No. 2, a Site Condominium, according to the Master Deed recorded in Liber 3703, Page 106, as amended, in the office of the Muskegon County Register of Deeds, and designated as Muskegon County Condominium Subdivision Plan No. 162, together with rights in general common elements and limited common elements as set forth in said Master Deed, and amendments thereto, and as described in Act 59 of the Public Acts 1976, as amended. Parcel No.: 61-24-234-000-0003-00 Commonly known as: 241 W. Western Avenue 10 Exhibit B The Project 11 Exhibit C Easement 12 Commission Meeting Date: March 26, 2019 Date: March 21, 2019 To: Honorable Mayor and City Commissioners From: Planning & Economic Development RE: Amendment to the Single Family Residential Section of the Zoning Ordinance SUMMARY OF REQUEST: Staff initiated request to amend the Single Family Residential section of the zoning ordinance to clarify that short and long term rentals are not prohibited uses. FINANCIAL IMPACT: None BUDGET ACTION REQUIRED: None STAFF RECOMMENDATION: To approve the zoning ordinance amendment COMMITTEE RECOMMENDATION: The Planning Commission unanimously recommended approval of the request 8-0 at their March 14 meeting. Hearing, Case 2019-06: Staff initiated request to amend the Single Family Residential section of the zoning ordinance to clarify that short- and long-term rentals are not prohibited uses. SUMMARY 1. The City Commission recently passed a Short-Term Vacation Rental ordinance (enclosed). 2. Some citizens have complained that the City is not following the zoning ordinance because of Section 400.3.h.xiv(5). See Single Family Residential District attachment. They have claimed that rentals are breaking the rule of prohibiting “lodging services including but not limited to, a tourist home (defined as a bed and breakfast in the ordinance), motel or hotel.” However, this is located in the home occupation section, which also states “the business person operating the home occupation shall reside in the dwelling.” This is not the case with rentals, long or short term, so the City has never considered rentals as home occupations. 3. To clarify and eliminate any confusion, staff is suggesting to amend the ordinance as follows (additions in bold): Home Occupations: xiv. Activities specifically prohibited (but not limited to) include: (5) A lodging service including but not limited to, a tourist home, motel or hotel. This does not include short or long-term rental homes. CITY OF MUSKEGON MUSKEGON COUNTY, MICHIGAN ORDINANCE NO._____ An ordinance to amend the Single Family Residential section of the zoning ordinance to clarify that short and long term rentals are not prohibited uses. THE CITY COMMISSION OF THE CITY OF MUSKEGON HEREBY ORDAINS: NEW LANGUAGE New Additions in Bold: Section 400: Home Occupations: xiv. Activities specifically prohibited (but not limited to) include: (5) A lodging service including but not limited to, a tourist home, motel or hotel. This does not include short or long-term rental homes. This ordinance adopted: Ayes:______________________________________________________________ Nayes:_____________________________________________________________ Adoption Date: Effective Date: First Reading: Second Reading: CITY OF MUSKEGON By: _________________________________ Ann Meisch, MMC, City Clerk CERTIFICATE The undersigned, being the duly qualified clerk of the City of Muskegon, Muskegon County, Michigan, does hereby certify that the foregoing is a true and complete copy of an ordinance adopted by the City Commission of the City of Muskegon, at a regular meeting of the City Commission on the 26th day of March, 2019, 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 the Michigan Zoning Enabling Act, Public Acts of Michigan No. 33 of 2006, and that minutes were kept and will be or have been made available as required thereby. DATED: ___________________, 2019. __________________________________________ Ann Meisch, MMC Clerk, City of Muskegon 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 March 26, 2019, the City Commission of the City of Muskegon adopted an ordinance to amend the Single Family Residential section of the zoning ordinance to clarify that short and long term rentals are not prohibited uses. 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 ____________________, 2019. CITY OF MUSKEGON By _________________________________ Ann Meisch, MMC City Clerk --------------------------------------------------------------------------------------------------------------------- PUBLISH ONCE WITHIN TEN (10) DAYS OF FINAL PASSAGE. Account No. 101-80400-5354 5 Date: 3/26/2019 To: Honorable Mayor and City Commissioners From: Department of Public Works RE: Hartshorn Marina – Resolution of Support for Waterways Program Grant Application and Commitment for Matching Funds SUMMARY OF REQUEST: The Engineering Department would like to apply for a Waterway Program Grant through the Michigan Department of Natural Resources. These funds would be used to complete upgrades and repairs at Hartshorn Marina in conjunction with the recommendations prepared by Abonmarche. We are proposing a total project funding for this round of $700,000 of which $350,000 would be local match and $350,000 would be funding from MDNR. Funding would be available during the 19-20 budget cycle. The MDNR application requires a resolution of support and commitment for the matching funds. FINANCIAL IMPACT: $350,000 in fiscal year 19/20 BUDGET ACTION REQUIRED: None at this time. STAFF RECOMMENDATION: Approve the resolution of support for the Waterways Program Grant application and commit to funding the required match and engineering costs. City of Muskegon RESOLUTION SUPPORT OF APPLICATION FOR WATERWAYS PROGRAM GRANT FUNDS WHEREAS, Muskegon City Commissioners desire to promote safety and fiscal responsibility for the residents and visitors of our great city; and WHEREAS, Muskegon City Commissioners acknowledge there is need for improvements to Hartshorn Marina to support continued operation and improved facilities; and NOW, THEREFORE LET IT BE RESOLVED, that Muskegon City Commissioners support the application for state waterways program funds and commit to funding required match dollars for improvements at Hartshorn Marina. Dated this ______ of _______ 20__. ________________________________ Stephen J. Gawron Mayor _________________________________ Ann Marie Meisch City Clerk Date: 3/26/2019 To: Honorable Mayor and City Commissioners From: Department of Public Works RE: Sheridan & Olthoff – Resolution of Support for Transportation Economic Development Funding Application and Commitment for Matching Funds SUMMARY OF REQUEST: The Engineering Department would like to apply for Category A Transportation Economic Development funding through the Michigan Department of Transportation. These funds would be used to resurface Sheridan Drive and Olthoff Drive in the industrial park. Construction is estimated at $900,000, and the city would be required to provide matching funds of approximately $250,000 plus engineering costs. Funding is available starting as early as 2019. The MDOT application requires a resolution of support and commitment for the matching funds. FINANCIAL IMPACT: $300,000 split over fiscal year 18/19 and 19/20 BUDGET ACTION REQUIRED: None at this time. STAFF RECOMMENDATION: Approve the resolution of support for the Category A Transportation Economic Development application and commit to funding the required match and engineering costs. City of Muskegon RESOLUTION SUPPORT OF APPLICATION FOR CATEGORY A TRANSPORTATION ECONOMIC DEVELOPMENT FUNDING WHEREAS, Muskegon City Commissioners desire to promote safety and fiscal responsibility for the residents and visitors of our great city; and WHEREAS, Muskegon City Commissioners acknowledge there is need for repairs to the roadway to support retention of current industrial base and attraction of new industrial base; and NOW, THEREFORE LET IT BE RESOLVED, that Muskegon City Commissioners support the application for state category A transportation economic development funds and commit to funding required match dollars for improvements on Sheridan Drive and Olthoff Drive. Dated this ______ of _______ 20__. ________________________________ Stephen J. Gawron Mayor _________________________________ Ann Marie Meisch City Clerk Date: March 19, 2019 To: Honorable Mayor and City Commissioners From: Department of Public Works RE: H 91841 Walton Ave & Marsh St. SUMMARY OF REQUEST: To award contract (H 91841) for construction of Marsh St & Walton Ave., including paving of existing gravel rd. with water service improvements. Seven contractors submitted bids for this project as follows: McCormick Sand Inc.. .................................................. $159,293.50 Terra Contractors. ........................................................ $184,209.04 Redline Excavating, LLC. ............................................. $170,662.06 Accurate Excavating, LLC ............................................ $168,055.75 Jackson-Merkey Contractors, Inc.. ............................... $168,233.55 Tiles Excavating, Inc. ................................................... $199,795.58 Epic Excavating……………………………………….......$245,684.10 FINANCIAL IMPACT: $159,293.50 BUDGET ACTION REQUIRED: None. Initially budgeted for $150,000.00 from the CIP but will be adjusted in the next budget reforecast. STAFF RECOMMENDATION: Award the project to the low bidder, McCormick Sand, Inc. CONTRACTOR ADDRESS ENGINEERS ESTIMAT CITY/ST/ZIP Line Description Units Quantity UnitPrice 1 Mobilization, Max LSUM 1 $ 14,023.00 2 Curb and Gutter, Rem Ft 51 $ 8.00 3 Sidewalk, Rem Syd 64 $ 8.00 4 Pavt, Rem, Modified Syd 110 $ 5.00 5 Machine Grading, Modified Sta 6.6 $ 1,500.00 6 Erosion Control, Inlet Protection, Fabric Drop Ea 6 $ 75.00 7 Project Cleanup LSUM 1 $ 3,000.00 8 Aggregate Base, 8 inch Syd 1871 $ 7.00 9 Maintenance Gravel, LM Cyd 50 $ 20.00 10 Sewer, Cl E, 12 inch, Tr Det B Ft 421 $ 35.00 11 Sewer, Ductile Iron Class 52, 12 inch, Tr Det B Ft 60 $ 65.00 12 Dr Structure Cover, Adj, Case 1, Modified Ea 2 $ 650.00 13 Catch Basin Specail Detail Ea 4 $ 1,500.00 14 Dr Structure Cover, Type B, Modified Ea 1 $ 500.00 15 Dr Structure Cover, Type K, Modified Ea 4 $ 750.00 16 HMA, 3C Ton 221 $ 65.00 17 HMA, 4C Ton 221 $ 75.00 18 Driveway, Nonreinf Conc, 6 Inch, Modified Syd 54 $ 30.00 19 Curb and Gutter, Conc, Det F4, Modified Ft 1344 $ 13.00 20 Detectable Warning Surface Ft 10 $ 40.00 21 Sidewalk Ramp, Conc, 4 inch Sft 116 $ 5.00 22 Sidewalk, Conc, 4 inch Sft 429 $ 4.00 23 Sidewalk, Conc, 6 inch Sft 162 $ 4.00 24 Barricade, Type III, High Intensity, Lighted, Furn Ea 3 $ 60.00 25 Barricade, Type III, High Intensity, Lighted, Oper Ea 3 $ 1.00 26 Minor Traf Devices LSUM 1 $ 1,250.00 27 Plastic Drum, High Intensity, Furn Ea 25 $ 20.00 28 Plastic Drum, High Intensity, Oper Ea 25 $ 1.00 29 Sign, Type B, Temp, Prismatic, Furn Sft 101 $ 5.00 30 Sign, Type B, Temp, Prismatic, Oper Sft 101 $ 1.00 31 Topsoil Surface, Furn, 4 inch Syd 1883 $ 4.00 32 Hydroseeding Syd 1883 $ 1.00 33 Watermain, DI, 6 inch, Tr Det G, Modified Ft 13 $ 50.00 34 Water Service, 1 inch, Copper Type k Ft 137 $ 30.00 35 Water Service, Private Property Ft 32 $ 30.00 36 Tapping Sleeve and Valve, 16 inch X 6 inch, With Box Ea 1 $ 3,000.00 37 Sleeve, 6 inch, Long, DI MJ Ea 1 $ 350.00 38 Hydrant, 6 inch, Standard Ea 1 $ 2,400.00 39 Corporation Stop, 1 inch Ea 3 $ 350.00 40 Curb Stop and Box, 1 inch Ea 2 $ 350.00 41 Cut and Cap, 6 inch Watermain Ea 1 $ 550.00 42 Water Service, Building Connection Ea 3 $ 500.00 43 Meter Pit Complete Ea 1 $ 1,300.00 TOTAL APPARENT LOW BIDDER MCCORMICK SAND INC. TERRA CONTRACTORS TE 5430 RUSSELL RD. 856 PULASKI TWIN LAKE, MI 49457 MUSKEGON, MI 49441 UNIT PRICE TOTAL PRICE UNIT PRICE TOTAL PRICE $ 14,023.00 $ 9,500.00 $ 9,500.00 $ 5,000.00 $ 5,000.00 $ 408.00 $ 10.00 $ 510.00 $ 10.00 $ 510.00 $ 512.00 $ 8.00 $ 512.00 $ 6.75 $ 432.00 $ 550.00 $ 10.00 $ 1,100.00 $ 2.25 $ 247.50 $ 9,900.00 $ 1,300.00 $ 8,580.00 $ 1,400.00 $ 9,240.00 $ 450.00 $ 80.00 $ 480.00 $ 105.00 $ 630.00 $ 3,000.00 $ 1.00 $ 1.00 $ 2,000.00 $ 2,000.00 $ 13,097.00 $ 10.00 $ 18,710.00 $ 10.70 $ 20,019.70 $ 1,000.00 $ 0.10 $ 5.00 $ 28.00 $ 1,400.00 $ 14,735.00 $ 27.00 $ 11,367.00 $ 30.00 $ 12,630.00 $ 3,900.00 $ 40.00 $ 2,400.00 $ 57.00 $ 3,420.00 $ 1,300.00 $ 750.00 $ 1,500.00 $ 400.00 $ 800.00 $ 6,000.00 $ 2,000.00 $ 8,000.00 $ 2,600.00 $ 10,400.00 $ 500.00 $ 400.00 $ 400.00 $ 450.00 $ 450.00 $ 3,000.00 $ 525.00 $ 2,100.00 $ 450.00 $ 1,800.00 $ 14,365.00 $ 94.00 $ 20,774.00 $ 101.00 $ 22,321.00 $ 16,575.00 $ 100.00 $ 22,100.00 $ 110.00 $ 24,310.00 $ 1,620.00 $ 45.00 $ 2,430.00 $ 69.50 $ 3,753.00 $ 17,472.00 $ 13.00 $ 17,472.00 $ 22.00 $ 29,568.00 $ 400.00 $ 35.00 $ 350.00 $ 70.00 $ 700.00 $ 580.00 $ 5.00 $ 580.00 $ 10.00 $ 1,160.00 $ 1,716.00 $ 5.00 $ 2,145.00 $ 5.85 $ 2,509.65 $ 648.00 $ 5.00 $ 810.00 $ 7.90 $ 1,279.80 $ 180.00 $ 50.00 $ 150.00 $ 85.00 $ 255.00 $ 3.00 $ 0.50 $ 1.50 $ 5.00 $ 15.00 $ 1,250.00 $ 1,000.00 $ 1,000.00 $ 1,050.00 $ 1,050.00 $ 500.00 $ 16.00 $ 400.00 $ 16.50 $ 412.50 $ 25.00 $ 0.50 $ 12.50 $ 2.00 $ 50.00 $ 505.00 $ 3.00 $ 303.00 $ 4.00 $ 404.00 $ 101.00 $ 0.50 $ 50.50 $ 1.50 $ 151.50 $ 7,532.00 $ 4.00 $ 7,532.00 $ 3.80 $ 7,155.40 $ 1,883.00 $ 1.00 $ 1,883.00 $ 1.53 $ 2,880.99 $ 650.00 $ 40.00 $ 520.00 $ 75.00 $ 975.00 $ 4,110.00 $ 20.00 $ 2,740.00 $ 17.00 $ 2,329.00 $ 960.00 $ 25.00 $ 800.00 $ 20.00 $ 640.00 $ 3,000.00 $ 2,500.00 $ 2,500.00 $ 3,500.00 $ 3,500.00 $ 350.00 $ 250.00 $ 250.00 $ 250.00 $ 250.00 $ 2,400.00 $ 3,450.00 $ 3,450.00 $ 4,400.00 $ 4,400.00 $ 1,050.00 $ 325.00 $ 975.00 $ 300.00 $ 900.00 $ 700.00 $ 425.00 $ 850.00 $ 330.00 $ 660.00 $ 550.00 $ 400.00 $ 400.00 $ 300.00 $ 300.00 $ 1,500.00 $ 850.00 $ 2,550.00 $ 750.00 $ 2,250.00 $ 1,300.00 $ 1,100.00 $ 1,100.00 $ 1,050.00 $ 1,050.00 $ 154,300.00 $ 159,293.50 $ 184,209.04 REDLINE EXCAVATING LLC ACCURATE EXCAVATORS, LLC JACKSON-M 4277 1/2 58TH ST. 2821 CENTRAL ROAD HOLLAND, MI 49423 MUSKEGON, MI 49445 UNIT PRICE TOTAL PRICE UNIT PRICE TOTAL PRICE UNIT PRICE $ 5,450.00 $ 5,450.00 $ 4,000.00 $ 4,000.00 $ $ 10.00 $ 510.00 $ 12.50 $ 637.50 $ $ 10.00 $ 640.00 $ 17.50 $ 1,120.00 $ $ 5.00 $ 550.00 $ 7.75 $ 852.50 $ $ 885.00 $ 5,841.00 $ 2,450.00 $ 16,170.00 $ $ 185.00 $ 1,110.00 $ 150.00 $ 900.00 $ $ 1,000.00 $ 1,000.00 $ 1,000.00 $ 1,000.00 $ $ 7.27 $ 13,602.17 $ 11.25 $ 21,048.75 $ $ 25.00 $ 1,250.00 $ 32.00 $ 1,600.00 $ $ 38.00 $ 15,998.00 $ 32.00 $ 13,472.00 $ $ 121.50 $ 7,290.00 $ 52.00 $ 3,120.00 $ $ 350.00 $ 700.00 $ 300.00 $ 600.00 $ $ 1,230.00 $ 4,920.00 $ 1,700.00 $ 6,800.00 $ $ 865.00 $ 865.00 $ 350.00 $ 350.00 $ $ 1,150.00 $ 4,600.00 $ 710.00 $ 2,840.00 $ $ 100.00 $ 22,100.00 $ 103.00 $ 22,763.00 $ $ 106.00 $ 23,426.00 $ 110.00 $ 24,310.00 $ $ 32.97 $ 1,780.38 $ 45.00 $ 2,430.00 $ $ 13.55 $ 18,211.20 $ 13.50 $ 18,144.00 $ $ 30.33 $ 303.30 $ 33.00 $ 330.00 $ $ 7.35 $ 852.60 $ 5.00 $ 580.00 $ $ 6.25 $ 2,681.25 $ 3.75 $ 1,608.75 $ $ 8.00 $ 1,296.00 $ 5.00 $ 810.00 $ $ 100.00 $ 300.00 $ 55.00 $ 165.00 $ $ 1.10 $ 3.30 $ 10.00 $ 30.00 $ $ 2.00 $ 2.00 $ 330.00 $ 330.00 $ $ 15.40 $ 385.00 $ 18.00 $ 450.00 $ $ 1.10 $ 27.50 $ 1.00 $ 25.00 $ $ 3.30 $ 333.30 $ 4.00 $ 404.00 $ $ 1.10 $ 111.10 $ 1.00 $ 101.00 $ $ 5.12 $ 9,640.96 $ 2.75 $ 5,178.25 $ $ 1.00 $ 1,883.00 $ 1.00 $ 1,883.00 $ $ 140.00 $ 1,820.00 $ 38.00 $ 494.00 $ $ 26.00 $ 3,562.00 $ 12.00 $ 1,644.00 $ $ 31.00 $ 992.00 $ 15.00 $ 480.00 $ $ 4,365.00 $ 4,365.00 $ 3,200.00 $ 3,200.00 $ $ 450.00 $ 450.00 $ 260.00 $ 260.00 $ $ 3,880.00 $ 3,880.00 $ 2,800.00 $ 2,800.00 $ $ 755.00 $ 2,265.00 $ 250.00 $ 750.00 $ $ 340.00 $ 680.00 $ 300.00 $ 600.00 $ $ 725.00 $ 725.00 $ 650.00 $ 650.00 $ $ 1,150.00 $ 3,450.00 $ 675.00 $ 2,025.00 $ $ 810.00 $ 810.00 $ 1,100.00 $ 1,100.00 $ $ 170,662.06 $ 168,055.75 MERKEY CONTRACTORS, INC. TILES EXCAVATING, INC. EPIC EXCA 3430 LUND AVE. 16958 144TH AVE 1351 BRIAR MUSKEGON, MI 49442 NUNICA, MI 49448 GRAND RAPID E TOTAL PRICE UNIT PRICE TOTAL PRICE UNIT PRICE 11,880.00 $ 11,880.00 $ 9,000.00 $ 9,000.00 $ 24,500.00 6.00 $ 306.00 $ 12.00 $ 612.00 $ 8.00 6.00 $ 384.00 $ 11.25 $ 720.00 $ 15.00 7.00 $ 770.00 $ 11.75 $ 1,292.50 $ 15.00 2,660.00 $ 17,556.00 $ 800.00 $ 5,280.00 $ 2,600.00 125.00 $ 750.00 $ 200.00 $ 1,200.00 $ 165.00 745.00 $ 745.00 $ 4,250.00 $ 4,250.00 $ 150.00 8.00 $ 14,968.00 $ 13.50 $ 25,258.50 $ 19.00 2.00 $ 100.00 $ 16.50 $ 825.00 $ 20.00 35.00 $ 14,735.00 $ 36.50 $ 15,366.50 $ 62.00 62.50 $ 3,750.00 $ 82.00 $ 4,920.00 $ 99.00 555.00 $ 1,110.00 $ 350.00 $ 700.00 $ 472.00 1,560.00 $ 6,240.00 $ 1,875.00 $ 7,500.00 $ 2,500.00 365.00 $ 365.00 $ 415.00 $ 415.00 $ 900.00 525.00 $ 2,100.00 $ 410.00 $ 1,640.00 $ 700.00 94.00 $ 20,774.00 $ 112.75 $ 24,917.75 $ 94.00 100.00 $ 22,100.00 $ 120.00 $ 26,520.00 $ 100.00 36.00 $ 1,944.00 $ 68.00 $ 3,672.00 $ 68.00 11.50 $ 15,456.00 $ 22.00 $ 29,568.00 $ 16.00 33.00 $ 330.00 $ 72.00 $ 720.00 $ 60.00 4.00 $ 464.00 $ 10.00 $ 1,160.00 $ 7.00 4.00 $ 1,716.00 $ 8.00 $ 3,432.00 $ 6.00 4.00 $ 648.00 $ 9.00 $ 1,458.00 $ 7.00 50.00 $ 150.00 $ 90.00 $ 270.00 $ 80.00 0.50 $ 1.50 $ 5.00 $ 15.00 $ 1.00 2,700.00 $ 2,700.00 $ 1,500.00 $ 1,500.00 $ 6,400.00 16.00 $ 400.00 $ 17.50 $ 437.50 $ 16.00 0.50 $ 12.50 $ 5.00 $ 125.00 $ 1.00 3.00 $ 303.00 $ 7.00 $ 707.00 $ 3.50 0.50 $ 50.50 $ 5.00 $ 505.00 $ 1.00 3.90 $ 7,343.70 $ 2.85 $ 5,366.55 $ 3.00 0.95 $ 1,788.85 $ 1.75 $ 3,295.25 $ 2.20 77.50 $ 1,007.50 $ 62.00 $ 806.00 $ 110.00 15.00 $ 2,055.00 $ 18.50 $ 2,534.50 $ 35.00 25.00 $ 800.00 $ 22.50 $ 720.00 $ 56.00 4,000.00 $ 4,000.00 $ 4,397.78 $ 4,397.78 $ 4,450.00 230.00 $ 230.00 $ 422.00 $ 422.00 $ 1,075.00 3,270.00 $ 3,270.00 $ 3,946.75 $ 3,946.75 $ 3,775.00 420.00 $ 1,260.00 $ 285.00 $ 855.00 $ 580.00 335.00 $ 670.00 $ 395.00 $ 790.00 $ 475.00 555.00 $ 555.00 $ 475.00 $ 475.00 $ 690.00 465.00 $ 1,395.00 $ 450.00 $ 1,350.00 $ 1,250.00 1,050.00 $ 1,050.00 $ 850.00 $ 850.00 $ 1,700.00 $ 168,233.55 $ 199,795.58 AVATING RCLIFF DR SE DS, MI 49456 TOTAL PRICE $ 24,500.00 $ 408.00 $ 960.00 $ 1,650.00 $ 17,160.00 $ 990.00 $ 150.00 $ 35,549.00 $ 1,000.00 $ 26,102.00 $ 5,940.00 $ 944.00 $ 10,000.00 $ 900.00 $ 2,800.00 $ 20,774.00 $ 22,100.00 $ 3,672.00 $ 21,504.00 $ 600.00 $ 812.00 $ 2,574.00 $ 1,134.00 $ 240.00 $ 3.00 $ 6,400.00 $ 400.00 $ 25.00 $ 353.50 $ 101.00 $ 5,649.00 $ 4,142.60 $ 1,430.00 $ 4,795.00 $ 1,792.00 $ 4,450.00 $ 1,075.00 $ 3,775.00 $ 1,740.00 $ 950.00 $ 690.00 $ 3,750.00 $ 1,700.00 $ 245,684.10 Date: March 26, 2019 To: Honorable Mayor and City Commissioners From: Department of Public Works – Engineering RE: H 91858 Muskegon Ave. and Webster Ave. Re-Paint SUMMARY OF REQUEST: To award contract (H 91858) for street pavement marking improvements along Muskegon Ave and Webster Ave. One contractor submitted bids for this project as follows: PK Contracting. ............................................................ $24,761.46 FINANCIAL IMPACT: $24,761.46 BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: Award the project to the low bidder, PK Contracting. BID TABULATION City of Muskegon Project Engineer: JDB Date: 3/19/2019 Egineering Department Project Number: H91858 Project description: Muskegon Ave. & Webster Ave. Re‐Paint Engineers Estimate PK Contracting Line Item Pay Code Description Units Quantity Unit Price Total Unit Price Total 1 1500001 Mobilization, Max LSUM 1 $ 2,500.00 $ 2,500.00 $ 1,750.00 $ 1,750.00 2 8110039 Pavt Mrkg, Ovly Cold Plastic, 12 inch Cross Hatching, White Ft 30 $ 4.00 $ 120.00 $ 5.95 $ 178.50 3 8110070 Pavt Mrkg, Ovly Cold Plastic, Rt and Lt Turn Arrow Sym Ea 1 $ 200.00 $ 200.00 $ 250.00 $ 250.00 4 8110079 Pavt Mrkg, Ovly Cold Plastic, Sharrow Symbol Ea 15 $ 200.00 $ 3,000.00 $ 195.00 $ 2,925.00 5 8110153 Pavt Mrkg, Sprayable Thermopl, 4 inch, White Ft 531 $ 0.25 $ 132.75 $ 0.39 $ 207.09 6 8110154 Pavt Mrkg, Sprayable Thermopl, 4 inch, Yellow Ft 5,476 $ 0.25 $ 1,369.00 $ 0.39 $ 2,135.64 7 8110343 Rem Spec Mrkg Sft 3,161 $ 2.00 $ 6,322.00 $ 2.95 $ 9,324.95 8 8117050 Pavt Mrkg, Ovly Cold Plastic, Parking Stall Marking, Type lll, White, Mod. Ea 200 $ 50.00 $ 10,000.00 $ 20.00 $ 4,000.00 9 8117050 Pavt Mrkg, Ovly Cold Plastic, Parking Stall Marking, Type lll, Blue, Mod. Ea 8 $ 75.00 $ 600.00 $ 20.00 $ 160.00 10 8120210 Pavt Mrkg, Longit, 6 inch or less width, Rem Ft 6,492 $ 0.75 $ 4,869.00 $ 0.59 $ 3,830.28 11 $ ‐ $ ‐ Totals: $ 29,112.75 $ 24,761.46 = apparent low bidder Page 1 of 1 Date: 3/26/2019 To: Honorable Mayor and City Commissioners From: Department of Public Works RE: Set Dry Storage User Fee (Catamaran) SUMMARY OF REQUEST: Set the dry storage user fee (catamaran) at $995 per post. Posts will be offered on a first come, first served basis, and prior customers will be notified by letter that storage is again being made available. Environmental concerns including high water and impacts to critical dunes have eliminated our ability to provide storage at the water’s edge. A small area near the volleyball courts has been identified as a location that could accommodate these boats. 10 posts will be offered on a trial basis for the 2019 season only. No catamaran storage can be provided at Harbour Towne Beach. FINANCIAL IMPACT: Revenue generated by sale of storage area. BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: Approve the fee for dry storage. Affirmative Action (231)724-6703 FAX (231)722-1214 Assessor/ Equalization Co. (231)724-6386 FAX (231)724-1129 Cemetery/Forestry (231)724-6783 FAX (231)724-4188 City Manager (231)724-6724 FAX (231)722-1214 26 Feb, 2019 Clerk (231)724-6705 FAX (231)724-4178 Dear Catamaran Owner: Comm. & Neigh. Services (231)724-6717 The City of Muskegon is pleased to announce that beginning (insert start date here) applications for seasonal FAX (231)726-2501 Catamaran dry storage will be accepted. Computer Info. Technology (231)724-4126 Due to environmental concerns, dry storage cannot be accommodated at the water’s edge, and will no longer FAX (231)722-4301 be allowed at Harbour Towne Beach. The city is offering 10 posts in a new location at Pere Marquette for the Engineering 2019 season as a pilot. Our ability to offer this type of storage in the future is not guaranteed. Please see the (231)724-6707 attached map outlining the area for dry storage. FAX (231)727-6904 Finance Pricing for posts will be set at $995 for the season and will be offered on a first come, first served basis. If you are interested in obtaining a post for your Catamaran in the 2019 season, please contact the city at 231-724- (231)724-6713 FAX (231)726-2325 4100. Fire Department (231)724-6795 FAX (231)724-6985 Human Resources Sincerely, Co. (Civil Service) (231)724-6442 FAX (231)724-6840 Income Tax Doug Sayles (231)724-6770 Highway Superintendent FAX (231)724-6768 City of Muskegon Mayor’s Office 231.724.4100 (231)724-6701 FAX (231)722-1214 Planning/Zoning (231)724-6702 FAX (231)724-6790 Police Department (231)724-6750 FAX (231)722-5140 Public Works (231)724-4100 FAX (231)722-4188 SafeBuilt (Inspections) (231)724-6715 FAX (231)728-4371 Treasurer (231)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 http://www.shorelinecity.com Catamaran Storage Area for 2019 10 Slips (14 FT x 30 FT) Total Area 140 FT x 30 FT Cartage path Date: 3/26/2019 To: Honorable Mayor and City Commissioners From: Department of Public Works RE: City Hall – Chiller Unit SUMMARY OF REQUEST: Authorize staff to direct Trane to complete repairs to the City Hall air conditioning system in the amount of $8,208.00. Repairs were identified during the fall shut down period that were required to ensure the system is operating efficiently when restarted. FINANCIAL IMPACT: $8,208.00 BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: Authorize staff to hire Trane to complete needed air conditioning system repairs. Date: March 26, 2019 To: Honorable Mayor and City Commissioners From: Department of Public Works - Filtration RE: Procurement of Bubbler Control Panels SUMMARY OF REQUEST: Authorize staff to procure six new bubbler control panels from Commerce Controls to replace old panels at the Water Filtration Plant. FINANCIAL IMPACT: Existing bubbler control panels that provide level indication are old and failing. They are in need of replacement. Commerce Controls has provided instrumentation services at the plant for many years and they will procure parts, build six panels and ship for installation at the cost of $44,730.00. Plant staff will install the panels. BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: Authorization for staff to procure bubbler control panels from Commerce Controls at a cost of $44,730.00 C:\Users\danielle.thomas\Desktop\Commission Requests\Commission approval - Filtration Plant Bubbler Panels.doc SYSTEMS INTEGRATORS 41069 VINCENTI COURT NOVI, MICHIGAN 48375 248-476-1442 www.commercecontrols.com FAX 248-476-6122 March 15, 2019 To: Sanjeev Mungarwadi Ref: Water Filtration Plant Bubblers CCI#18-433rev.1 Commerce Controls, Inc. is pleased to submit the following proposal to provide the Controls System Integration services and equipment deliverables for the above referenced project. Our proposal is in accordance with discussion with Muskegon filtration plant personnel. SUMMARY CCI SCOPE OF WORK CCI will provide the requested services and equipment for the Muskegon Water Filtration Plant. SERVICES In House Engineering: Project Engineer: CCI’s project engineer will be the primary point of contact and will direct internal resources in order to meet all schedule and contract requirements. EQUIPMENT DELIVERABLES & SERVICES Qty Description 6 NEMA 4X Stainless Steel Enclosed Bubbler Panels, including: > Pressure Transmitter > Valves > Fittings > Tubing > Regulator > Flow-Meter PRICE EACH BUBBLER $7,455.00 Net Each Price Includes Tax and Freight START-UP / CALIBRATION SERVICES $1,100.00 Per Day Required Qty Description 1 NEMA 4X Stainless Steel Enclosure for Existing Bubbler PRICE EACH BUBBLER $900.00 Net Each Price Includes Tax and Freight Proposal Clarifications 1. CCI services and deliverables are limited to those specifically listed in this proposal. 2. A one (1) year warranty is included for services and equipment from the date of system final acceptance. Financial Terms and Provisions 1. The proposal price is F.O.B. Shipping Points with freight allowed to the jobsite. 2. Payment Terms are Net 30 Days. 3. Our proposal is valid for 180 days from the date of this proposal. 4. We have included Michigan, sales tax. 5. We have not included the cost to provide Bid or Performance bonding for this project. Commerce Controls, Inc. appreciates the opportunity to submit this proposal. Should you have any questions please contact this office at your convenience for additional clarification. Respectfully Submitted, Commerce Controls, Inc. Eric Hine Sales Engineer Water & Wastewater Systems (248) 522-0477 – Direct (248) 476-6122 – Fax (734) 751-2593 – Mobile Page 2 of 2 AGENDA ITEM NO. _______________ CITY COMMISSION MEETING March 26, 2019 TO: Honorable Mayor and City Commissioners FROM: Frank Peterson, City Manager DATE: March 21, 2019 RE: First Amendment to the Lumberjacks Lease SUMMARY OF REQUEST: City staff is requesting approval of the attached amendments to the Lumberjack’s lease. The changes are within the original spirit of the agreement approved by the commission, but do provide more clarity as we seek to increase sponsorship and lease revenues. FINANCIAL IMPACT: BUDGET ACTION REQUIRED: None at this time. STAFF RECOMMENDATION: To authorize the Clerk and Mayor to sign the lease. COMMITTEE RECOMMENDATION: None. First Amendment to Shared Use Agreement This First Amendment to Shared Use Agreement ("Amendment") dated effective July 1, 2019, is entered into between the City of Muskegon, a municipal corporation, of 933 Terrace Street, Muskegon, Michigan 49440 ("City") and WC Hockey, LLC, an Michigan limited liability company, of 13854 Simone Drive, Shelby Township, MI 48315 ("Lumberjacks") (collectively, the “Parties”) with reference to the following facts: Background The Parties entered into a certain Shared Used Agreement dated Effective July 1, 2019 (“Agreement”), and desire to amend the Agreement as set forth below. Therefore, the Agreement is amended as follows: 1. Paragraph 3. Term. Paragraph 3 is deleted in its entirety and replaced with the following: Term; Early Termination. The term of this Agreement shall be two years beginning July 1, 2019 – June 30, 2021 with the Lumberjacks, at their sole discretion, having three (3), five-year options (each an “Option Term”). Each option must be exercised on or before six months before the expiration of the then-current term. Beginning with the first Option Term, Lumberjacks shall be permitted to terminate this Agreement six months before the expiration of the then-current year. 2. Paragraph 12 (a). Shared Sponsorships. Paragraph 12 (a) is deleted in its entirety and replaced with the following: Shared Sponsorships. The Lumberjacks shall have the exclusive rights to sell all sponsorship opportunities related to the Arena. Notwithstanding the foregoing, the City retains the right to pursue sponsorship opportunities related to the sale of food products and all other beverages EXCEPT malt beverages and soft drinks from the concession areas location within the Arena. The Lumberjacks and the City agree to split 50/50 any and all net revenue from the 9 sponsorship packages included in Exhibit C. This split also includes any additional sponsorship or promotional opportunities related to the Arena that may arise in the future. 3. Paragraph 14 (c). Additional Lease Space, Future Restaurants, Pubs or Retail Space. Paragraph 14 (c) is deleted in its entirety and replaced with the following: Additional Lease Space, Future Restaurants, Pubs or Retail Space. The City anticipates leasing space for two additional restaurants, pubs or retail spaces along the Western Ave. side of the Arena (“Additional Venues”). To the extent this occurs, the City and the Lumberjacks shall work together prior to the execution of any new restaurant leases, Shared Use Agreements or rental arrangements to ensure that they contain provisions that protect both the City and the Lumberjacks from being adversely impacted by such tenancy. Issues that are anticipated to be addressed would include, but not be limited to: (a) patrons of tenants in the Additional Venues having access to the Arena during games on Lumberjacks Hockey Dates or during any Additional Events; (b) prohibiting the sale of any products during games on Lumberjacks Hockey Dates or during any Additional Events at a price lower than is being charged in the Arena for those same products, etc. The parties acknowledge and agree that the business operations at the Additional Venues during Lumberjack Hockey Dates or Additional Events will reduce concession sales within the Shared Space that would otherwise be realized and shared between the Lumberjacks and the City pursuant to this Agreement. The parties agree to work together in good faith to quantify the amount of sales realized by the Additional Venues during Hockey Game Dates and Additional Events and mutually agree upon a percentage or flat fee that shall be paid to the Lumberjacks. 4. Entire Agreement. This Amendment contains the entire understanding among the parties hereto with respect to the subject matter hereof, and supersedes all prior and contemporaneous agreements and understandings, inducements, or conditions, express or implied, oral or written, except as herein contained. 5. Counterparts/Electronic Signature. This Amendment may be executed in any number of counterparts and by different parties to this Amendment on separate counterparts, each of which, when so executed, will be deemed an original, but all such counterparts will constitute one and the same Amendment. Any signature delivered by a party by fax or email will be deemed to be an original signature. 6. Full Execution. This Amendment requires the signature of both parties. Until fully executed, on a single copy or in counterparts, this Amendment is of no binding or effect and if not fully executed, this Amendment is void. The Parties hereto have executed this Agreement on the dates set forth below. Lumberjacks – WC Hockey, LLC City – City of Muskegon By: ________________________________ By: ________________________________ Name: Daniel L. Israel Name: Franklin Peterson Title: Manager Title: City Manager Date: March ___, 2019 Date: March ___, 2019 By: ________________________________ Name: Ann Meisch Title: City Clerk Date: March ___, 2019 Commission Meeting Date: March 26, 2019 Date: March 21, 2019 To: Honorable Mayor and City Commissioners From: Planning & Economic Development RE: Public Hearing – Establishment of a Commercial Redevelopment District – 351 W Western Ave SUMMARY OF REQUEST: Pursuant to Public Act 255 of 1978, as amended, 351 Phase II, LLC has requested the establishment of a Commercial Redevelopment District. The creation of the district will allow the building owner to apply for a Commercial Facilities Exemption Certificate, which will provide a 50% reduction in the number of mills levied as ad valorem taxes, excluding the State Education Tax. FINANCIAL IMPACT: None BUDGET ACTION REQUIRED: None STAFF RECOMMENDATION: Establishment of the Commercial Redevelopment District. COMMITTEE RECOMMENDATION: None 3/21/2019 Resolution No. _______ MUSKEGON CITY COMMISSION RESOLUTION APPROVING THE CREATION OF A COMMERCIAL REDEVELOPMENT DISTRICT 351 W Western Ave WHEREAS, pursuant to PA 255 of 1978, the City of Muskegon has the authority to establish “Commercial Redevelopment Districts” within the City of Muskegon at request of a commercial business enterprise or on its own initiative; and WHEREAS, 351 Phase II, LLC has filed a written request with the clerk of the City of Muskegon requesting the establishment of the Commercial Redevelopment District for an area in the vicinity of 351 W Western Ave located in the City of Muskegon hereinafter described; and WHEREAS, the City Commission of the City of Muskegon determined that the district meets the requirements set forth in section 5 of PA 255 of 1978; and WHEREAS, written notice has been given by certified mail to all owners of real property located within the proposed district as required by section 5(3) of PA 255 of 1978; and WHEREAS, on March 26, 2019 a public hearing was held and all residents and taxpayers of the City of Muskegon were afforded an opportunity to be heard thereon; and WHEREAS, the City of Muskegon deems it to be in the public interest of the City of Muskegon to establish the Commercial Redevelopment District as proposed; NOW, THEREFORE, BE IT RESOLVED by the City Commission of the City of Muskegon that the following described parcel(s) of land situated in the City of Muskegon, County of Muskegon, and State of Michigan, to wit: Adopted this 26th Day of March 2019 Ayes: Nays: Absent: 3/21/19 BY: __________________________________ Stephen J. Gawron Mayor ATTEST: __________________________________ Ann Meisch Clerk CERTIFICATION I hereby certify that the foregoing constitutes a true and complete copy of a resolution adopted by the Muskegon City Commission, County of Muskegon, Michigan, at a regular meeting held on March 26, 2019. ______________________________ Ann Meisch Clerk 3/21/19 Commission Meeting Date: March 26, 2019 Date: March 21, 2019 To: Honorable Mayor and City Commissioners From: Planning & Economic Development RE: Public Hearing – Issuance of a Commercial Facilities Exemption Certificate – 351 Phase II, LLC SUMMARY OF REQUEST: Pursuant to Public Act 255 of 1978, as amended, 351 Phase II, LLC has requested the issuance of a Commercial Facilities Exemption Certificate for their project at 351 West Western Ave. The certificate provides a 50% reduction in the number of mills levied as ad valorem taxes, excluding the State Education Tax, for the commercial portion of the development. The company will be investing $3,221,802 in the commercial space, which qualifies them for an abatement of 10 years. FINANCIAL IMPACT: The certificate provides a 50% reduction in the number of mills levied as ad valorem taxes, excluding the State Education Tax. BUDGET ACTION REQUIRED: None STAFF RECOMMENDATION: Issuance of the Commercial Facilities Exemption Certificate COMMITTEE RECOMMENDATION: None 3/21/2019 Resolution No. _______ MUSKEGON CITY COMMISSION RESOLUTION APPROVING APPLICATION FOR ISSUANCE OF A COMMERCIAL FACILITIES EXEMPTION CERTIFICATE 351 Phase II, LLC WHEREAS, the City of Muskegon legally established the Commercial Redevelopment District, Unit 7(b) District, after a public hearing held on March 26, 2019; and WHEREAS, the state equalized value of the property proposed to be exempt plus the aggregate state equalized value of property previously exempt and currently in force under Public Act 255 of 1978 and under Public Act 198 of 1974 (IFT's) does not exceed 5% of the total state equalized value of the City of Muskegon; and WHEREAS, the application was approved at a public hearing as provided by section 6(2) of Public Act 255 of 1978 on March 26, 2019; and WHEREAS, 351 Phase II, LLC is not delinquent in any taxes related to the facility; and WHEREAS, the application is for commercial property as defined in section 3(3) of Public Act 255 of 1978; and WHEREAS, 351 Phase II, LLC had provided answers to all required questions under Section 6(1) of PA 255 of 1978 to the City of Muskegon; and WHEREAS, the City of Muskegon requires that the construction, restoration or replacement of the facility shall be completed by May 9, 2019; and WHEREAS, the Commercial Facilities Exemption Certificate is granted for a period of ten (10) years and no extensions will be allowed; and WHEREAS, the commencement of the construction, restoration or replacement of the facility did not occur more than 45 days prior to the filing of the application for exemption; and WHEREAS, the commencement of the construction, restoration or replacement of the facility did not occur prior to the establishment of the Commercial Redevelopment District; and WHEREAS, the application relates to a construction, restoration or replacement program which when completed constitutes a new, replacement or restored facility within the meaning of Public Act 255 of 1978 and that is situated within a Commercial Redevelopment District established under Public Act 255 of 1978; and WHEREAS, completion of the facility is calculated to, and will at the time of issuance of the certificate, have the reasonable likelihood to increase commercial activity, create employment, retain employment and prevent a loss of employment in the community in which the facility is situated; and WHEREAS, the restoration includes improvements aggregating 10% or more of the true cash value of the property at commencement of the restoration as provided by section 4(6) of Public Act 255 of 1978. NOW, THEREFORE, BE IT RESOLVED by the City Commission of the City Commission 3/21/19 Be and hereby is granted a Commercial Facilities Exemption for the real property, excluding land, located in Commercial Redevelopment District, Unit 7(b) District at 351 W Western Ave for a period of ten (10) years, beginning December 31, 2019, and ending December 30, 2028, pursuant to the provisions of PA 255 of 1978, as amended. Adopted this 26th Day of March, 2019. Ayes: Nays: Absent: BY: __________________________________ Stephen J. Gawron Mayor ATTEST: __________________________________ Ann Meisch Clerk CERTIFICATION I hereby certify that the foregoing constitutes a true and complete copy of a resolution adopted by the Muskegon City Commission, County of Muskegon, Michigan, at a regular meeting held on March 26, 2019. ______________________________ Ann Meisch Clerk 3/21/19 Commission Meeting Date: March 19, 2019 Date: March 22, 2019 To: Honorable Mayor and City Commissioners From: Planning & Economic Development RE: Request to Adopt the Proposed Amendments to Master Land Use Plan SUMMARY OF REQUEST: Staff initiated request to amend the City of Muskegon Master Land Use Plan to revise the 2008 Downtown & Lakeshore Redevelopment Plan Future Land Use Map and include the Imagine Muskegon Lake Plan. The regional entities have been given the required 63 day review time and a public hearing was held at the March 14 Planning Commission meeting. FINANCIAL IMPACT: None BUDGET ACTION REQUIRED: None STAFF RECOMMENDATION: Staff recommends approval of the Master Plan COMMITTEE RECOMMENDATION: The Planning Commission unanimously recommended approval of the Master Plan at their March 14 meeting. 1 MARCH 14 PLANNING COMMISSION MEETING *Please see the City website for a copy of the Imagine Muskegon Lake Plan or contact staff at 724- 6702. Hearing, Case 2019-07: Staff initiated request to adopt the amended Master Plan. SUMMARY 1. The proposed Master Plan amendments include the addition of certain properties into the 2008 Downtown & Lakeshore Redevelopment Plan and the addition of the Imagine Muskegon Lake Plan. 2. The Planning Commission recommended the amendments in December of 2018. The City Commission approved the distribution of the plan to neighboring communities on January 8. The Planning Commission must now vote on the approval of the plan. The City Commission will also vote on the adoption of the plan. 2 RESOLUTION NO._____ MUSKEGON CITY COMMISSION RESOLUTION APPROVING THE AMENDMENTS TO THE MASTER LAND USE PLAN WHEREAS, the Planning Commission recommended amending the Master Land Use Plan at their December 11, 2018 meeting; and WHEREAS, The City Commission approved the distribution of the notice letter to surrounding municipalities of January 8, 2018 for the 63 review period; and WHEREAS, The Planning Commission held a public hearing on the amendments at the March 14, 2019 Planning Commission meeting where the board unanimously recommended approval of the amendments; and WHEREAS, the amendments include the revision of the 2008 Downtown & Lakeshore Redevelopment Plan Future Land Use Map and to include the Imagine Muskegon Lake Plan; and NOW, THEREFORE, BE IT RESOLVED that the Muskegon City Commission approves the amendments to the Master Land Use Plan as proposed. Adopted this 26th day of March, 2019. Ayes: Nayes: Absent: By ___________________________ Stephan J. Gawron, Mayor By: ___________________________ Ann Meisch, MMC, City Clerk 3 CERTIFICATION This resolution was adopted at a regular meeting of the City Commission, held on March 26, 2019. The meeting was properly held and notices pursuant to the Open Meetings Act of the State of Michigan, Act 267 of the Public Acts of 1976. CITY OF MUSKEGON __________________________________________ Ann Meisch, MMC City Clerk 4 COMMISSION MEETING DATE March 26, 2019 Date: March 26, 2019 To: Honorable Mayor and City Commissioners From: Jeffrey Lewis, Director of Public Safety RE: Concurrence with the Housing Board of Appeals Notice and Order to Demolish. Dangerous Building Case #EN1801788 _______________________________________________________ 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 593 W. Webster Ave. (between 7th and 8th St.) is unsafe, substandard, a public nuisance and that it be demolished within thirty (30) days It is further requested that administration be directed to obtain bids for the demolition of the structure and that the Mayor and City Clerk be authorized and directed to execute a contract for demolition with the lowest responsible bidder or staff may issue infraction tickets to the owner, agent, or responsible party if they do not demolish the structure. Staff Correspondence: A Dangerous Building Inspection was conducted on February 15, 2018. The Notice and Order to Repair or Remove was issued on June 4, 2018. On March 7, 2019 the HBA declared the structure substandard and dangerous. The Notice and Order to Demolish was issued on March 8, 2019. FINANCIAL IMPACT: General Budget BUDGET ACTION REQUIRED: None STATE EQUALIZED VALUE: $80,000 STAFF RECOMMENDATION: To concur with the Housing Board of Appeals decision to demolish. 1|P a g e
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