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CITY OF MUSKEGON
CITY COMMISSION MEETING
APRIL 23, 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. Recognition of Women Veterans Day
B. Mr. Football Presentation
□ CITY MANAGER’S REPORT:
□ CONSENT AGENDA:
A. Approval of Minutes City Clerk
B. Request to Fly the Norwegian Flag City Clerk
C. Special Event Liquor Licenses – 2019 Events City Clerk
D. Zoning Ordinance Amendment – Planned Unit Development Section of
Single-Family Residential Districts
Planning & Economic Development
E. Zoning Ordinance Amendment – Landscaping Requirements Planning &
Economic Development
F. Set the Public Hearing for Amendment to Brownfield Plan – City of
Muskegon (Developer) Planning & Economic Development
G. Set the Public Hearing for Amendment to Brownfield Plan- Sweetwater
Development, LLC Planning & Economic Development
H. Permanent Traffic Control Orders #37 through #52 Department of Public
Works
I. Water Interconnect Contract Department of Public Works
J. City Hall Elevator Repairs Department of Public Works
Page 1 of 3
K. Pere Marquette Park Chalet Request Department of Public Works
L. Smith Ryerson Parking Lot Improvements Department of Public Works
M. Purchase Agreement – 1067 Grand Avenue City Manger
N. Approval of a Neighborhood Enterprise Zone Certificate – 324 Terrace
Point Planning & Economic Development
O. Approval of a Neighborhood Enterprise Zone Certificate – 343 Terrace
Point Planning & Economic Development
□ PUBLIC HEARINGS:
A. Public Hearing for the 2019 Action Plan Community & Neighborhood
Services
B. Public Hearing for DWRF Project Plan Department of Public Works
□ COMMUNICATIONS:
□ UNFINISHED BUSINESS:
□ NEW BUSINESS:
A. Concurrence with the Housing Board of Appeals Notice and Order to
Demolish Public Safety
1874 Jarman Street
1079 Holt Street
190 Wood Street
1873 Franklin Street
B. Revised Notice of Intent to Issue Capital Improvement Bonds City
Manager
C. LC Walker Arena Restaurant Proposals City Manager
D. Purchase Agreement Extension – 1490 Lakeshore Drive City Manager
E. Arena Management – ARC Arena Management City Manager
□ ANY OTHER BUSINESS:
□ PUBLIC PARTICIPATION:
► Reminder: Individuals who would like to address the City Commission shall do the following:
► Fill out a request to speak form attached to the agenda or located in the back of the room.
► Submit the form 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:
Page 2 of 3
□ 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: April 18, 2019
Here is a quick outline of the items on our agenda:
WINC Acknowledgment
Beginning at 5 PM, we will have cake and refreshments in the Commission Chambers in
acknowledgment of the one year anniversary of our City’s creation of Women’s Veterans Day.
Zenata Adams and her group from WINC – Women Injured in Combat – will be present to thank
us for our efforts.
Regular Session:
1. Under presentations, we will have two items:
a. Zenata Adams from WINC will acknowledge the City’s efforts to be Veteran-
friendly.
b. We will honor Cameron Martinez for winning Michigan’s Mr. Football award.
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. Approval of a request by the Sons of Norway to fly the Norwegian Flag at their
facility.
c. Approval of special event liquor licenses for City events.
d. First reading of a zoning ordinance amendment related to the PUD section of the
single family residential districts. This was recommended for approved by the
Planning Commission.
e. First reading of a zoning ordinance amendment related to Landscaping
requirements to allow for trees to be donated to the city’s nursery rather than
replacing trees on site during development.
f. We are seeking to set a public hearing for a brownfield plan amendment related
to the city’s efforts to construct infill housing in the Nelson Neighborhood.
g. We are seeking to set a public hearing for a brownfield plan amendment related
to the Sweetwater Development (The Leonard Building).
h. We are seeking approval of the adoption of a number of permanent traffic control
orders.
i. We are seeking approval of a water interconnect contract to ensure water
reliability.
j. Authorization to enter into an agreement to repair the city hall elevator. The
elevator is very old and has not been function properly for a number of years.
Recently, an electrical problem rendered the elevator essentially unusable.
Accordingly, we are proposing to upgrade both the electrical system and
passenger car.
k. We are seeking permission to install a chalet at Pere Marquette Park to
accommodate Third Coast Rentals. Third Coast began renting beach-related items
at the park last year. The chalet will be located near the new catamaran storage
area.
l. Authorization to enter into an agreement to complete parking lot improvements
at Smith-Ryerson Park.
m. Authorization to sell the city-owned home locate at 1067 Grand Avenue. This
home was acquired by the city from the County Tax Auction for $1.00. An
extensive rehabilitation was undertaken, and is expected to be completed by June
30, 2019. Jonathan and Melissa have offered to purchase the property for
$143,000. To date, staff has invested approximately $70,000 in the property and
anticipates investing an additional $50,000-$60,000 to complete the renovation.
This is a great example of our efforts to save homes from demolition while
demonstrating to private investors that appropriately-renovated homes will sell
at a reasonable market-rate.
n. Approval of Neighborhood Enterprise Zone Certificate for 324 Terrace Point. All
local and state requirements have been met by the applicant.
o. Approval of Neighborhood Enterprise Zone Certificate for 343 Terrace Point. All
local and state requirements have been met by the applicant.
3. Under Public Hearings, we are taking comments on the following:
a. We will take comments on the 2019 CDBG/HOME Action Plan
b. We will take comments on the drinking Water Revolving Loan Fund Project Plan.
4. Under the New Business, we are asking the Commission to consider the following:
a. Concurrence with the Housing Board of Appeals’ decision to demolish four
properties.
b. Revised notice of intent to issue bonds. We previously issued this notice last year
related to the convention center. As the project moves closer to groundbreaking,
our team is recommending that we advertise to allow for up to 30 years. The
previous notice called for up to 25 years. Our agreement with Parkland Properties
requires them to leave the hotel self-assessment in place for the duration of the
debt plus an additional five years. Allowing for up to 30 years will help the facility
from a cash flow standpoint over the initial 5-7 years, while we build a
repair/replacement fund. Staff feels that this is logical move, even with the
additional interest paid over the five extra years because it will allow for the
facility to be maintained annually at a higher level (carpet replacement, A/V
upgrades, etc.).
c. Staff has reviewed additional information from the original proposals and is
seeking permission to proceed with our original recommendation of the sports-
bar themed restaurant proposed by Andy and Jennifer Harris, Andy Price, Jamie
Curtis, and Anthony Lambers. We feel we can accommodate the Nafasi
component of the Wonderland Proposal at the Farmers Market, and that we can
further assist Wonderland find space in the downtown. All parties seem to agree
with this approach.
d. The City entered into a purchase agreement for 1490 Lakeshore Drive
approximately two years ago. Since that time, the group has worked closely with
the DEQ and Amoco to get a plan in place to remediate the remaining
contaminants (oil) on the site. We are happy to see this is progressing, but based
on our dealings with the Sappi redevelopment, we feel we should plan on the due
diligence period lasting up to five years. Accordingly, we are seeking approval of
the updated purchase agreement to provide five years of due diligence.
e. Approval of the arena management agreement with ARC Arena Management.
The agreement will provide some cost relief from the previous agreement with
Two Ts LLC. Arc Arena Management has worked well with the arena’s tenants and
has demonstrated the capacity to manage the entire facility. There have been
some growing pains over the past 6+ months, but we do see the facility moving in
the correct direction. Matt Gongalski from Arc Arena Management previously
served as our food/beverage manager, and owns Rad Dad’s and Cool Kids (located
in the arena).
Let me know if you have any questions/comments/concerns
Frank
Date: April 17, 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 continued Goal
Setting meeting held March 26, 2019, minutes of the Worksession meeting
held April 8, 2019, and minutes of the Regular meeting held April 9, 2019.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval of the minutes.
CITY OF MUSKEGON
GOAL SETTING MEETING
Tuesday, March 26, 2019
3:30 p.m.
City Commission Chambers
933 Terrace Street
Muskegon, MI 49440
MINUTES
2019-27
Present: Mayor Steve Gawron, Commissioners Turnquist, Warren, Hood, Johnson, and
Rinsema-Sybenga.
Absent: Commissioner German.
Employees present include: Frank Peterson, Mike Franzak, Jim Maurer, Oneata Bailey, Leo
Evans, Leighann Mikesell, Jeff Lewis, Kirk Briggs, Dave Smith, Doug Sayles, Dwana
Thompson, Sarah Peterson, Ken Grant, and Ann Meisch.
Welcome
Frank Peterson welcomed the group and reviewed what was covered at the March 1, 2019 Goal
Setting meeting.
1. Discussion took place regarding devotion of staff time to areas that we didn’t devote time
to in 2017 – particularly; community safety plan, education activities, street funding plan,
Muskegon Lake Area of Concern designation, and parks/recreation improvements
including the possibility of eliminating the Parks Commission.
2. There was discussion regarding Programs/Policies that continue improving livability in
our neighborhoods. Some ideas relative to this topic are front porch reclamation
(CDBG), Infill Housing (affordable, semi-affordable, market-rate; attached, detached,
etc.), Park Improvements (deferred maintenance, capital improvement, AP Affiliation
(Listed by priority – over $15 Million, etc.), Local Street Improvements, and Curb Cuts
(CDBG).
3. The group discussed keeping Downtown as top priority – must be considered the
epicenter for activity for all of Muskegon County. Some long term ideas regarding this
are connectivity to the lakeshore, designated parking (structure), Mix of housing
affordability levels, events, and walkability. There was also discussion of equity training
or classes.
4. There was also discussion regarding the need to update policies for development
incentives focusing on thresholds for abatement levels, investment levels, and tax
capture, including commercial and industrial abatements, residential abatements (NEZ),
opportunity zone incentives, and miscellaneous development and investment incentives.
There will be further discussion regarding this at June’s worksession meeting.
5. Discussion took place regarding continued focus on Quality of Life Tenants, equity, and
customer service. There was also discussion regarding a resolution not to give extension
per property taxes per the County Treasurer. This will be addressed at the next City
Commisson meeting.
The meeting adjourned at 5:15 p.m.
Respectfully Submitted,
Ann Marie Meisch, MMC – City Clerk
CITY OF MUSKEGON
CITY COMMISSION WORKSESSION
Monday, April 8, 2019
5:30 p.m.
City Commission Chambers
MINUTES
2019-28
Present: Mayor Gawron, Vice-Mayor Hood, Commissioners Turnquist,
Johnson, Warren, and Rinsema-Sybenga
Absent: German
LC Walker Arena Restaurant Proposals
Economic Development Staff has reviewed the proposals and made a
written recommendation. Staff is requesting permission to implement the
action steps of that recommendation. Staff would return to a subsequent
City Commission meeting to present lease terms for the accepted
proposals. This item was discussed at great length and more information is
being gathered before it will be presented to the City Commission.
Any Other Business
Commissioner Johnson raised concerns about some of the rules for the
Farmer’s Market vendors that he was approached about. The clerk will
discuss with the Market Manager and City Attorney.
Adjournment: The Worksession meeting adjourned at 7:45 p.m.
Respectfully Submitted,
Ann Marie Meisch, MMC, City Clerk
CITY OF MUSKEGON
CITY COMMISSION MEETING
APRIL 9, 2019 @ 5:30 P.M.
MUSKEGON CITY COMMISSION CHAMBERS
933 TERRACE STREET, MUSKEGON, MI 49440
MINUTES
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, April 9, 2019, Reverend
Michael Fedewa, St. Paul’s Episcopal 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 Will Meier, and City Clerk Ann Meisch.
Absent: Commissioner Willie German, Jr.
INTRODUCTIONS/PRESENTATION:
A. 9-1-1 Muskegon Central Dispatch Surcharge Shawn Grabinski
Shawn Grabinski from Muskegon Central Dispatch presented information to the
City Commission and the audience about the 9-1-1 Surcharge question that is
on the May 7, 2019 ballot.
2019-29 CONSENT AGENDA:
A. Approval of Minutes City Clerk
SUMMARY OF REQUEST: To approve the minutes of the March 26, 2019 regular
meeting.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Approval of the minutes.
B. Request to Rezone 971 & 975 Washington Avenue – SECOND READING
Planning & Economic Development
SUMMARY OF REQUEST: Request to rezone the properties at 971 & 975
Washington Avenue from R-2, Single Family Medium Density Residential to Form
Based Code, Neighborhood Edge, by Brett Gilbert.
FINANCIAL IMPACT: None
Page 1 of 6
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.
C. Amendment to the Form Based Code Section of the Zoning Ordinance –
SECOND READING Planning & Economic Development
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 a staff recommends a
definition for “research and development” that excludes animal testing, noise
and odor.
D. Amendment to the Single-Family Residential Section of the Zoning
Ordinance – SECOND READING Planning & Economic Development
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.
F. Resolution to Revoke the Contract for Housing Exemption with Trinity
Village Limited Dividend Housing Association Treasurer
SUMMARY OF REQUEST: Adopt the resolution to revoke the Contract for Housing
Exemption with Trinity Village Limited Dividend Housing Association and
terminate the Payment in Lieu of Taxes (PILOT) status on Trinity Village I and Trinity
Village II. The City Treasurer has received formal notice from the Michigan State
Housing Development Authority that they have foreclosed upon and take
possession of the two properties governed by this agreement.
The State has indicated that they intend to pay the outstanding PILOT
assessments for the 2018 tax year. Beginning in 2019, these properties will be
completely tax exempt as a result of being owned by the State of Michigan.
Page 2 of 6
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Adopt the resolution to terminate the Contract
for Housing Exemptions with Trinity Village Limited Dividend Housing Association.
H. Establish Policy and Application for Sports Leagues and Tournaments
Planning Department
SUMMARY OF REQUEST: Approve the establishment of a policy and application
for sports leagues and tournaments using city parks and facilities. The policy is
similar to the special event policy, provides consistency for users of city facilities,
and informs applicants of rules and regulations that must be followed.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Approve the policy and application.
I. Set Sports Leagues and Tournaments Fees Planning Department
SUMMARY OF REQUEST: Set the fees for sports leagues and tournaments using
city parks and facilities as follows:
• Application fee to be paid by each separate league - $100 to be
submitted 30 days or more prior to the start of the season.
• Tournament fee - $40 fee for each tournament
• Park Use Fee - $40 per league/club/school
• Cleaning Deposit Fee - $100
Application fees may be waived for Veterans groups or school groups for
schools located within the city limits. Groups are directed to note their requests
for waived fees on their applications, and city staff will review.
FINANCIAL IMPACT: Revenue generated by fees.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Approve the fees for sports leagues and
tournaments.
K. 714 Jackson – Demolition of Accessory Structure City Manager
SUMMARY OF REQUEST: The City currently owns the Froebel School property as
a result of tax foreclosure. Sometime this winter, significant damage was done to
an accessory structure. The structure previously housed the school’s boiler. The
damage has left the structure dangerous. Staff ordered an emergency
demolition from Melching, Inc.
FINANCIAL IMPACT: None
Page 3 of 6
BUDGET ACTION REQUIRED: None at this time.
STAFF RECOMMENDATION: To accept the bid of $10,000 from Melching, Inc.
to secure the structure, conduct asbestos testing and abatement, and
complete the demolition at 714 Jackson.
L. Smart Zone Delinquent Tax Resolution REMOVED PER STAFF REQUEST
Motion by Commissioner Rinsema-Sybenga, second by Commissioner Johnson,
to approve the consent agenda as presented, except items E, G, and J.
ROLL VOTE: Ayes: Johnson, Gawron, Hood, Warren, Rinsema-Sybenga, and
Turnquist
Nays: None
MOTION PASSES
2019-30 ITEMS REMOVED FROM CONSENT:
E. Waiver of Interest and Penalty Associated with Failure to File Property
Transfer Affidavits (PTA), Form 2766 Treasurer
SUMMARY OF REQUEST: Adopt the resolution to waive interest and penalty
associated with failure to file form 2766, Property Transfer Affidavit (PTA). Per MCL
211.27b, a municipal unit is required to charge interest and penalties to an
owner of a property that does not file a PTA within 45 days of the transfer of
ownership. We currently do not charge the penalties or interest to a taxpayer
that has not filed the PTA within the 45 day requirement. State statute requires
the governing body to pass a resolution in order to waive the penalties and
interest.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Adopt the resolution to waive penalties and
interest associated with untimely filing of Property Transfer Affidavits.
Motion by Commissioner Rinsema-Sybenga, second by Commissioner Warren,
to approve adopt the resolution to waive penalties and interest associated with
untimely filing of Property Transfer Affidavits.
ROLL VOTE: Ayes: Gawron, Hood, Warren, Rinsema-Sybenga, Turnquist, and
Johnson
Nays: None
MOTION PASSES
G. Invest Funds with Cantella &Co. Finance
SUMMARY OF REQUEST: The Finance department wants authorization to use
Cantella & Co. as an investor to diversify our financial portfolio. All investments
Page 4 of 6
with this institution will follow all City of Muskegon Financial and Investments
policies and guidelines.
FINANCIAL IMPACT: Potential increase of interest revenue.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Approval to authorize Cantella & Co. as an
investment tool for the City of Muskegon.
Commissioner Johnson recused himself for conflict of interest.
Motion by Commissioner Rinsema-Sybenga, second by Commissioner Warren,
to approve authorization of Cantella & Co. as an investment tool for the City of
Muskegon.
ROLL VOTE: Ayes: Hood, Warren, Rinsema-Sybenga, Turnquist, and Gawron
Nays: None
MOTION PASSES
J. Request for Skate Park Funds Planning Department
SUMMARY OF REQUEST: Authorize the mayor and clerk to sign the resolution
requesting distribution of funds from the City of Muskegon Parks Fund at the
Community Foundation for Muskegon County. The Planning Department is
requesting $2,000 to cover costs for surveying the property where we propose to
locate a future skate park. These funds were originally targeted for the
development of a new skate park within the city.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Authorize the mayor and clerk to sign the
resolution.
Motion by Commissioner Warren, second by Commissioner Johnson, to
authorize the Mayor and Clerk to sign the resolution.
ROLL VOTE: Ayes: Warren, Rinsema-Sybenga, Turnquist, Johnson, Gawron, and
Hood
Nays: None
MOTION PASSES
2019-31 NEW BUSINESS:
A. LC Walker Arena Restaurant Proposals REMOVED PER STAFF REQUEST
ANY OTHER BUSINESS: The Commission received an update on disc golf at
McGraft Park. There was discussion of the feasibility of white box space at the
convention center.
Page 5 of 6
PUBLIC PARTICIPATION: Public Comments were received.
ADJOURNMENT: The City Commission meeting adjourned at 6:30 p.m.
Respectfully Submitted,
Ann Marie Meisch, MMC – City Clerk
Page 6 of 6
Date: April 17, 2019
To: Honorable Mayor and City Commissioners
From: Ann Marie Meisch, City Clerk
RE: Request to Fly the Norwegian Flag
SUMMARY OF REQUEST: Sons of Norway are requesting permission
to fly the Norwegian Flag at City Hall on Friday, May 17th in honor of
Norway’s Constitution Day (Independence Day).
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Approval of the request.
Date: April 17, 2019
To: Honorable Mayor and City Commissioners
From: CITY CLERK’S OFFICE
RE: Special Event Liquor License – 2019 Events
SUMMARY OF REQUEST: The Muskegon City Clerk’s Office is organizing several
events for 2019 and we are seeking commission approval to apply for a special liquor
license for beer, wine, and spirit service for the following:
Taste of Muskegon at Hackley Park – June 14 & 15, 2019
Food Truck Rallies at the Farmer’s Market – June 26, July 24, and August 21, 2019
150th Anniversary Celebration at Heritage Landing – July 11, 12, & 13, 2019
Farm-to-Table Fundraiser – September 5, 2019
The Farmer’s Market does have a liquor license but the licensed area does not
extend beyond the barn.
FINANCIAL IMPACT: $50 permit from the State for every date requested.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To approve a special liquor license for the events
organized by the City Clerk for 2019
Commission Meeting Date: April 23, 2019
Date: April 18, 2019
To: Honorable Mayor and City Commissioners
From: Planning & Economic Development
RE: Zoning Ordinance Amendment - Planned Unit Development
Section of Single Family Residential Districts
SUMMARY OF REQUEST:
Staff initiated request to amend Section 403 of the zoning ordinance to revise the intent
of the Planned Unit Development option by allowing limited retail options.
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 April 11 meeting
Hearing, Case 2019-09: Staff initiated request to amend Section 403 of the zoning ordinance to revise the
intent of the Planned Unit Development option by allowing limited retail options.
SUMMARY
1. The PUD option in single-family residential districts currently does not specify whether limited
business options are allowed or not. Staff believes that limited business options, such as those
allowed in B-1 districts, would be beneficial to residential PUDs.
CURRENT LANGUAGE
SECTION 403: PLANNED UNIT DEVELOPMENT OPTION [amended 12/97]
Planned unit developments (PUDs) may be allowed by the Planning Commission under the procedural
guidelines of Section 2101. The intent of Planned Unit Developments in the single family residential district
is to allow for flexibility in the design of housing developments, including but not limited to condominium
developments and cluster subdivisions, to allow for the preservation of open space; allow for economies in
the provision of utilities and public services; provide recreational opportunities; and protect important natural
features from the adverse impacts of development.
PROPOSED LANGUAGE (additions in bold)
Planned unit developments (PUDs) may be allowed by the Planning Commission under the procedural
guidelines of Section 2101. The intent of Planned Unit Developments in the single family residential district
is to allow for flexibility in the design of housing developments, including but not limited to condominium
developments and cluster subdivisions, to allow for the preservation of open space; allow for economies in
the provision of utilities and public services; allow for limited business options that serve the
neighborhood; provide recreational opportunities; and protect important natural features from the adverse
impacts of development.
CITY OF MUSKEGON
MUSKEGON COUNTY, MICHIGAN
ORDINANCE NO._____
An ordinance to amend Section 403 of the zoning ordinance to revise the intent of the Planned Unit
Development option by allowing limited retail options.
THE CITY COMMISSION OF THE CITY OF MUSKEGON HEREBY ORDAINS:
NEW LANGUAGE
(Additions in bold)
Planned unit developments (PUDs) may be allowed by the Planning Commission under the procedural
guidelines of Section 2101. The intent of Planned Unit Developments in the single family residential district
is to allow for flexibility in the design of housing developments, including but not limited to condominium
developments and cluster subdivisions, to allow for the preservation of open space; allow for economies in
the provision of utilities and public services; allow for limited business options that serve the
neighborhood; provide recreational opportunities; and protect important natural features from the adverse
impacts of development.
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
23rd day of April, 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 April 23, 2019, the City Commission of the City of Muskegon adopted an
ordinance to amend Section 403 of the zoning ordinance to revise the intent of the Planned Unit
Development option by allowing limited retail options
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
Commission Meeting Date: April 23, 2019
Date: April 18, 2019
To: Honorable Mayor and City Commissioners
From: Planning & Economic Development
RE: Zoning Ordinance Amendment – Landscaping Requirements
SUMMARY OF REQUEST:
Staff initiated request to amend Section 2331 of the zoning ordinance to allow
applicants to donate trees to the City’s nursery rather than to replace trees on site
during development.
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 April 11 meeting
Hearing, Case 2019-10: Staff initiated request to amend Section 2331 of the zoning ordinance to allow
applicants to donate trees to the City’s nursery rather than to replace trees on site during development.
SUMMARY
1. The ordinance requires that certain live trees on development sites must remain or be replanted elsewhere on site.
However, that is not always possible due to limited space. Staff is suggesting that those trees may be donated to the
City’s nursery instead.
NEW LANGUAGE (additions in bold)
Preservation Required: All existing live trees in excess of twelve (12) inches in diameter and at four and one
half (4 ½) feet above the ground shall be preserved as much as practical. Those that must be removed and
cannot be replaced on site may donate those trees to the City’s nursery to be used elsewhere around the
City.
CITY OF MUSKEGON
MUSKEGON COUNTY, MICHIGAN
ORDINANCE NO._____
An ordinance to amend Section 2331 of the zoning ordinance to allow applicants to donate trees to the City’s
nursery rather than to replace trees on site during development.
THE CITY COMMISSION OF THE CITY OF MUSKEGON HEREBY ORDAINS:
NEW LANGUAGE
(Additions in bold)
Preservation Required: All existing live trees in excess of twelve (12) inches in diameter and at four and one
half (4 ½) feet above the ground shall be preserved as much as practical. Those that must be removed and
cannot be replaced on site may donate those trees to the City’s nursery to be used elsewhere around the
City.
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
23rd day of April, 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 April 23, 2019, the City Commission of the City of Muskegon adopted an
ordinance to amend Section 2331 of the zoning ordinance to allow applicants to donate trees to
the City’s nursery rather than to replace trees on site during development.
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
Commission Meeting Date: April 23, 2019
Date: April 18, 2019
To: Honorable Mayor and City Commissioners
From: Planning & Economic Development
RE: Set the Public Hearing for Amendment to Brownfield Plan –
City of Muskegon (Developer)
SUMMARY OF REQUEST:
To approve the attached resolution setting a public hearing for an amendment to the
Brownfield Plan, and notifying taxing jurisdictions of the Brownfield Plan amendment
including the opportunity to express their views and recommendations regarding the
proposed amendment at the public hearing. The amendment is for the inclusion of
properties in the Nelson Neighborhood owned by the City of Muskegon.
FINANCIAL IMPACT:
There is no direct financial impact in including the project in the Brownfield Plan,
although the redevelopment of the site into a residential development will eventually
add to the tax base in Muskegon.
BUDGET ACTION REQUIRED:
None
STAFF RECOMMENDATION:
To approve the attached resolution and authorize the Mayor and Clerk to sign the
resolution.
COMMITTEE RECOMMENDATION:
The Brownfield Redevelopment Authority met on April 9, 2019 and approved the
Brownfield Plan Amendment, and recommends the approval of the Brownfield Plan
Amendment to the Muskegon City Commission. In addition, the Brownfield
Redevelopment Authority recommends that the Muskegon City Commission set a
public hearing on the Plan Amendment for May 14, 2019.
RESOLUTION NOTIFYING TAXING UNITS
AND CALLING PUBLIC HEARING REGARDING
APPROVAL OF AMENDMENT TO THE BROWNFIELD PLAN OF THE
CITY OF MUSKEGON BROWNFIELD REDEVELOPMENT AUTHORITY
THE CITY OF MUSKEGON (DEVELOPER)
City of Muskegon
County of Muskegon, Michigan
___________________________________
Minutes of a Regular Meeting of the City Commission of the City of Muskegon,
County of Muskegon, Michigan (the "City"), held in the City offices, on the 26th day of
April, 2019, at 5:30 p.m., prevailing Eastern Time.
PRESENT:
Members__________________________________________________________
__________________________________________________________________
ABSENT: Members
__________________________________________________________________
The following preamble and resolution were offered by Member
_________________ and supported by Member _________________:
WHEREAS, the City of Muskegon, County of Muskegon, Michigan (the "City") is
authorized by the provisions of Act 381, Public Acts of Michigan, 1996, as amended
("Act 381"), to create a brownfield redevelopment authority; and
WHEREAS, pursuant to Act 381, the City Commission of the City duly
established the City of Muskegon Brownfield Redevelopment Authority (the "Authority");
and
4/18/19 2
WHEREAS, in accordance with the provisions of Act 381, the Authority has
prepared and approved Brownfield Plan Amendments to include THE CITY OF
MUSKEGON (DEVELOPER), and
WHEREAS, the Authority has forwarded the Brownfield Plan Amendments to the
City Commission requesting its approval of the Brownfield Plan Amendments and
WHEREAS, prior to approval of the Brownfield Plan Amendments, the
Muskegon City Commission desires to hold a public hearing in connection with
consideration of the Brownfield Plan Amendments as required by Act 381; and
WHEREAS, prior to approval of the Brownfield Plan Amendments, the
City Commission is required to provide notice and a reasonable opportunity to the
taxing jurisdictions levying taxes subject to capture, to express their views and
recommendations regarding the Brownfield Plan Amendments.
NOW, THEREFORE, BE IT RESOLVED THAT:
1. The City Commission hereby acknowledges receipt of the Brownfield Plan
Amendments from the Authority and directs the City Clerk to send a copy of the
proposed Brownfield Plan Amendments to the governing body of each taxing
jurisdiction in the City, notifying them of the City Commission's intention to consider
approval of the Brownfield Plan Amendments [after the public hearing described below].
2. A public hearing is hereby called on the 14th of May, 2019 at 5:30 p.m.,
prevailing Eastern Time, in the City Hall Commission Chambers to consider adoption by
the City Commission of a resolution approving the Brownfield Plan Amendments.
4/18/19 3
3. All resolutions and parts of resolutions insofar as they conflict with the
provisions of this resolution be and the same hereby are rescinded.
AYES: Members
_____________________________________________________________________
_______________________________________________________________
NAYS: Members
__________________________________________________________________
RESOLUTION DECLARED ADOPTED.
_____________________________
Ann Meisch, City Clerk
4/18/19 4
I hereby certify that the foregoing is a true and complete copy of a resolution
adopted by the City Commission of the City of Muskegon, County of Muskegon, State
of Michigan, at a regular meeting held on April 26, 2019, and that said meeting was
conducted and public notice of said meeting was given pursuant to and in full
compliance with the Open Meetings Act, being Act 267, Public Acts of Michigan, 1976,
as amended, and that the minutes of said meeting were kept and will be or have been
made available as required by said Act.
_____________________________
Ann Meisch, City Clerk
4/18/19 5
Attachment A
Eligible Property Map
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W
HAMILTON
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SANFORD
31
BR
HOUSTON
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ST 382
EB
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MONROE
240
250
254 235
239
MERRILL
395
487 219
1246
1252
1258
1245
1261
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398
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248
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1352
388 275
ST
1349
MORRALL
S
PU
JEFFERSON
346 M
1392 1387 352
CA
420
1411
WASHINGTON
8TH
459
OOSTERBAAN
GRAND
GRAND
GLADE
SOUTHERN
BR 31 SB
5TH
MESSLER
FOREST
GLADE
GLADE
DALE DALE
JEFFERSON
PARK
DALE
324
6TH
LARCH
NELSON SCATTERED SITE BROWNFIELD
ELIGIBLE PROPERTIES
NEIGHBORHOOD BOUNDARY LAKETON
Attachment B
Expenses to be Interest Owed Amount Paid in Total Amt
Yearly Reimbursed after per Year on Current Year Paid for
Taxable Capture Total Current Year Remaining for Eligible Eligible
Value Amount Captured Capture Balance Expenses Expenses
Year 0 (2019) 0 0 0 $848,000
Year 1 $3,360,000 $95,247 $95,247 $795,153 $42,400.00 $52,847.00 $52,847.00
Year 2 $3,360,000 $95,247 $190,494 $739,664 $39,757.65 $55,489.35 $108,336.35
Year 3 $3,360,000 $95,247 $285,741 $681,400 $36,983.18 $58,263.82 $166,600.17
Year 4 $3,360,000 $95,247 $380,988 $620,223 $34,069.99 $61,177.01 $227,777.18
Year 5 $3,360,000 $95,247 $476,235 $555,987 $31,011.14 $64,235.86 $292,013.03
Year 6 $3,360,000 $95,247 $571,482 $488,539 $27,799.35 $67,447.65 $359,460.69
Year 7 $3,360,000 $95,247 $666,729 $417,719 $24,426.97 $70,820.03 $430,280.72
Year 8 $3,360,000 $95,247 $761,976 $343,358 $20,885.96 $74,361.04 $504,641.76
Year 9 $3,360,000 $95,247 $857,223 $265,279 $17,167.91 $78,079.09 $582,720.84
Year 10 $3,360,000 $95,247 $952,470 $183,296 $13,263.96 $81,983.04 $664,703.89
Year 11 $3,360,000 $95,247 $1,047,717 $97,214 $9,164.81 $86,082.19 $750,786.08
Year 12 $3,360,000 $95,247 $1,142,964 $6,828 $4,860.70 $90,386.30 $841,172.39
Year 13 $3,360,000 $95,247 $1,238,211 -$88,078 $341.38 $94,905.62 $936,078.00
Year 14 $3,360,000 $95,247 $1,333,458 -$187,729 -$4,403.90 $99,650.90 $1,035,728.90
Year 15 $3,360,000 $95,247 $1,428,705 -$292,362 -$9,386.45 $104,633.45 $1,140,362.35
Year 16 $3,360,000 $95,247 $1,523,952 -$402,227 -$14,618.12 $109,865.12 $1,250,227.47
Year 17 $3,360,000 $95,247 $1,619,199 -$517,586 -$20,111.37 $115,358.37 $1,365,585.84
Year 18 $3,360,000 $95,247 $1,714,446 -$638,712 -$25,879.29 $121,126.29 $1,486,712.13
Year 19 $3,360,000 $95,247 $1,809,693 -$765,895 -$31,935.61 $127,182.61 $1,613,894.74
Year 20 $3,360,000 $95,247 $1,904,940 -$899,436 -$38,294.74 $133,541.74 $1,747,436.48
Year 21 $3,360,000 $95,247 $2,000,187 -$1,039,655 -$44,971.82 $140,218.82 $1,887,655.30
Year 22 $3,360,000 $95,247 $2,095,434 -$1,186,885 -$51,982.77 $147,229.77 $2,034,885.07
Year 23 $3,360,000 $95,247 $2,190,681 -$1,341,476 -$59,344.25 $154,591.25 $2,189,476.32
Year 24 $3,360,000 $95,247 $2,285,928 -$1,503,797 -$67,073.82 $162,320.82 $2,351,797.13
Year 25 $3,360,000 $95,247 $2,381,175 -$1,674,234 -$75,189.86 $170,436.86 $2,522,233.99
Year 26 $3,360,000 $95,247 $2,476,422 -$1,853,193 -$83,711.70 $178,958.70 $2,701,192.69
Year 27 $3,360,000 $95,247 $2,571,669 -$2,041,099 -$92,659.63 $187,906.63 $2,889,099.33
Year 28 $3,360,000 $95,247 $2,666,916 -$2,238,401 -$102,054.97 $197,301.97 $3,086,401.29
Year 29 $3,360,000 $95,247 $2,762,163 -$2,445,568 -$111,920.06 $207,167.06 $3,293,568.36
Year 30 $3,360,000 $95,247 $2,857,410 -$2,663,094 -$122,278.42 $217,525.42 $3,511,093.77
Assumptions:
* Taxable value of each house is $70,000 every year, no inflation
* 48 houses are built and complete at the end of year 0
CITY OF MUSKEGON
BROWNFIELD REDEVELOPMENT
AUTHORITY
BROWNFIELD PLAN AMENDMENT
NELSON NEIGHBORHOOD INFILL HOUSING
PROJECT
April 9, 2019
Prepared For The City of Muskegon Brownfield
Redevelopment Authority
Prepared By City of Muskegon Staff
PROJECT NAME
Nelson Neighborhood Infill Housing Project
DEVELOPER
City of Muskegon, a qualified unit of local government, as defined by Public Act 381 of 1996, as
amended
ELIGIBLE PROPERTY LOCATION
There are 28 Eligible Properties for this project, most of which are not adjacent to one another. Please
refer to the “Eligible Property Information Chart” and the “Eligible Property Map (Attachment A)” on the
following pages.
TYPE OF ELIGIBLE PROPERTY
Blighted
SUBJECT PROJECT DESCRIPTION
The project consists of 28 vacant parcels in the Nelson Neighborhood. A majority of the homes will be
single family, detached homes on small lots. However, multi-family homes will be constructed on lots
that allow for them by zoning
ELIGIBLE ACTIVITIES
Seller Concessions, Preparation of Brownfield Plan
DEVELOPER’S REIMBURSABLE
COSTS
$848,000
MAXIMUM DURATION OF
CAPTURE
30 years
ESTIMATED TOTAL CAPITAL
INVESTMENT
$9,000,000
INITIAL TAXABLE
VALUE
$0 (City Owned)
1. Introduction
The City of Muskegon, Michigan (the “City”), established the Muskegon Brownfield
Redevelopment Authority (the “Authority”) on July 4, 1997, pursuant to Michigan Public Act
381 of 1996, as amended (“Act 381”). The primary purpose of Act 381 is to encourage the
redevelopment of eligible property by providing economic incentives through tax increment
financing for certain eligible activities.
The main purpose of this Brownfield Plan is to promote the redevelopment of and investment
in certain “Brownfield” properties within the City. Inclusion of the subject properties within
this Plan will facilitate the development of infill housing at eligible properties. By facilitating
redevelopment of underutilized properties, the Plan is intended to promote economic
growth for the benefit of the residents of the City and all taxing units located within and
benefited by the Authority.
This Plan is intended to be a living document, which can be amended as necessary to achieve
the purposes of Act 381. It is specifically anticipated that properties will be continually added
to the Plan as new projects are identified. The Plan contains general provisions applicable to
the Plan, as well as property-specific information for each project. The applicable Sections of
Act 381 are noted throughout the Plan for reference purposes.
This Brownfield Plan contains the information required by Section 13(1) of Act 381, as
amended. Additional information is available from the Muskegon City Manager or the
Planning Director.
2. General Provisions
A. Costs of the Brownfield Plan (Section 13(1)(a))
Any site-specific costs of implementing this Plan are described in the site-specific section of
the Plan. Site-specific sources of funding may include tax increment financing revenue
generated from new development on eligible brownfield properties, state and federal grant
or loan funds, and/or private parties. Where private parties finance the costs of eligible
activities under the Plan, tax increment revenues may be used to reimburse the private
parties. The initial costs related to preparation of the Brownfield Plan were funded by the
City’s general fund. Subsequent amendments to the Plan may be funded by the person
requesting inclusion of a project in the Plan, and if eligible, may be reimbursed through tax
increment financing.
The Authority intends to pay for administrative costs and all of the things necessary or
convenient to achieve the objectives and purposes of the Authority with fees charged to
applicants to be included in the Plan, and any eligible tax increment revenues collected
pursuant to the Plan, in accordance with the provisions of Act 381, including, but not limited
to:
i) the cost of financial tracking and auditing the funds of the Authority,
ii) costs for amending and/or updating this Plan, and
iii) costs for Plan implementation
Tax increment revenues that may be generated and captured by this Plan are identified in the
site-specific sections of this Plan.
B. Method for Financing Costs of Plan (Section 13(1)(d) and (e))
The City or Brownfield Authority may incur some debt on a site-specific basis. Please refer to
the site-specific section of this Plan for details on any debt to be incurred by the City or
Authority. When a property proposed for inclusion in the Plan is in an area where tax
increment financing is a viable option, the Authority intends to enter into Development
Agreements with the property owners/developers of properties included in the Plan to
reimburse them for the costs of eligible activities undertaken pursuant to this Plan. Financing
arrangements will be specified in a Development and Reimbursement Agreement, and also
identified in the Site Specific section of the Plan.
C. Duration of the Brownfield Plan (Section 13(1)(f))
The duration of this Plan is expected to be 19 years. It is estimated that all of the homes
associated with the Project (defined below) will be completed in 2020 and it is estimated that
it could take 14 years to recapture eligible costs through tax increment revenues. In addition,
once all activity costs are reimbursed, funds may be captured for the local site remediation
revolving fund, if available. Therefore, the duration of capture for the Project (defined below)
will begin no later than 2020 and will continue until such time that all the eligible activities
undertaken in this Plan are reimbursed, but in no event will the Plan exceed the maximum
duration provided for in (MCLA 125.2663(1)(22)). The total costs of eligible activities include
the cost of principal and interest on any note or obligation issued by the Authority to pay for
the costs of eligible activities, the cost of principal and interest otherwise incurred to pay for
eligible activities, the reasonable costs of a work plan or remedial action plan and the costs
of preparation of Brownfield Plans and amendments.
D. Displacement/Relocation of Individuals on Eligible Properties (Section 13(1)(i),(j)(k)(l)
At this time, eligible properties identified in this Plan do not contain existing residences,
therefore the provisions of Section 13(1)(i-l) are not applicable at this time.
E. Local Site Remediation Revolving Fund (Section 8; Section 13(1)(m))
Whenever this Plan includes a property for which taxes will be captured through the tax
increment financing authority provided by Act 381, it is the Authority's intent to establish and
fund a Local Site Remediation Revolving Fund ("Fund"). The Fund will consist of tax increment
revenues that exceed the costs of eligible activities incurred on an eligible property, as
specified in Section 13(5) of Act 381. Section 13(5) authorizes the capture of tax increment
revenue from an eligible property for up to 5 years after the time that capture is required for
the purposes of paying the costs of eligible activities identified in the Plan. It is the intention
of the Authority to continue to capture tax increment revenues for 5 years after eligible
activities are funded from those properties identified for tax capture in the Plan, provided
that the time frame allowed by Act 381 for tax capture is sufficient to accommodate capture
to capitalize a Fund. The amount of school operating taxes captured for the Revolving Fund
will be limited to the amount of school operating taxes captured for eligible environmental
response activities under this Plan. It may also include funds appropriated or otherwise made
available from public or private sources.
The Revolving Fund may be used to reimburse the Authority, the City, and private parties for
the costs of eligible activities at eligible properties and other costs as permitted by Act 381.
It may also be used for eligible activities on an eligible property for which there is no ability
to capture tax increment revenues. The establishment of this Revolving Fund will provide
additional flexibility to the Authority in facilitating redevelopment of brownfield properties
by providing another source of financing for necessary eligible activities.
3. Site Specific Provisions
A. Eligibility and Project Description (Sec. 13(1)(h))
The eligible properties comprising the Nelson Neighborhood Infill Housing Project included in
this Plan is approximately 4.29 acres of vacant spread across 28 parcels in the Nelson
Neighborhood Muskegon, Michigan (See Attachment A). The parcel numbers/legal
description of the eligible properties are:
1246 5th St
Parcel #24-205-378-0006-00
CITY OF MUSKEGON REVISED PLAT OF 1903 N 46 FT LOT 6 BLK 378
1252 5th St
Parcel #24-205-378-0006-10
CITY OF MUSKEGON REVISED PLAT OF 1903 NLY 44 FT OF SLY 86 FT LOT 6 BLK 378
1245 5th St
Parcel #24-205-377-0001-00
CITY OF MUSKEGON REVISED PLAT OF 1903 LOT 1 EX SELY 79.5 FT TH'OF & E 1/2 OF LOT 2 EX SELY
79.5 FT TH'OF BLK 377
1261 5th St
Parcel #24-205-377-0011-00
CITY OF MUSKEGON REVISED PLAT OF 1903 N 1/4 LOT 11 & N 1/2 OF N 1/2 LOT 12 BLK 377
1342 6th St
Parcel #24-205-388-0006-20
CITY OF MUSKEGON REVISED PLAT OF 1903 SELY 44 FT OF SWLY 26 FT LOT 5 & SELY 44 FT OF LOT 6
BLK 388
1349 6th St
Parcel #24-205-389-0012-00
CITY OF MUSKEGON REVISED PLAT OF 1903 N 1/2 LOT 12 BLK 389
1352 6th St
Parcel #24-205-388-0007-00
CITY OF MUSKEGON REVISED PLAT OF 1903 LOT 7 BLK 388
1411 6th St
Parcel #24-205-390-0011-20
CITYOF MUSKEGON REVISED PLAT OF 1903 LOT 11 BLK 390 EXC W 92 FT TH'OF
1387 7th St
Parcel #24-205-375-0005-00
CITY OF MUSKEGON REVISED PLAT OF 1903 SELY 74 FT LOT 5 & N 30 FT LOT 8 BLK 375
395 Houston Ave
Parcel #205-369-0004-00
CITY OF MUSKEGON REVISED PLAT OF 1903 LOT 4 BLK 369
248 Mason Ave
Parcel #24-205-387-0007-00
CITY OF MUSKEGON REVISED PLAT OF 1903 N 1/2 LOT 7 & W 26.7 FT OF S 1/2 LOT 7 BLK 387
275 Mason Ave
Parcel #24-205-391-0003-00
CITY OF MUSKEGON REVISED PLAT OF 1903 LOT 3 BLK 391
346 Mason Ave
Parcel #24-205-389-0009-00
CITY OF MUSKEGON REVISED PLAT OF 1903 W 30 FT LOT 9 BLK 389
352 Mason Ave
Parcel #24-205-389-0008-00
CITY OF MUSKEGON REVISED PLAT OF 1903 LOT 8 BLK 389
219 Merrill Ave
Parcel # 24-205-386-0012-00
CITY OF MUSKEGON REVISED PLAT OF 1903 LOT 12 BLK 386
271 Merrill Ave
Parcel #24-205-387-0005-00
CITY OF MUSKEGON REVISED PLAT OF 1903 LOT 5 BLK 387
388 Merrill Ave
Parcel #24-205-376-0007-20
CITY OF MUSKEGON REVISED PLAT OF 1903 ELY 66 FT OF WLY 132 FT LOT 7 EXC NLY 20 FT BLK 376
235 Monroe Ave
Parcel #24-205-379-0003-10
CITY OF MUSKEGON REVISED PLAT OF 1903 E 28 FT LOT 3 BLK 379
239 Monroe Ave
Parcel #24-205-379-0003-00
CITY OF MUSKEGON REVISED PLAT OF 1903 BLK 379 W 38 FT LOT 3
240 Monroe Ave
Parcel #24-205-367-0010-00
CITY OF MUSKEGON REVISED PLAT OF 1903 W 1/2 LOT 10 BLK 367
250 Monroe Ave
Parcel #24-205-367-0009-00
CITY OF MUSKEGON REVISED PLAT OF 1903 W 1/2 LOT 9 BLK 367
254 Monroe Ave
Parcel #24-205-367-0008-10
CITY OF MUSKEGON REVISED PLAT OF 1903 E 40 FT LOT 8 BLK 367
398 Monroe Ave
Parcel #24-205-370-0011-10
CITY OF MUSKEGON REVISED PLAT OF 1903 E 27 FT OF LOT 11 BLK 370
1392 Park St
Parcel #24-205-375-0003-20
CITY OF MUSKEGON REVISED PLAT OF 1903 PART LOTS 3-4 & 11 BLK 375 COM ON S LN LOT 11 40 FT
E OF SW COR TH E 84 FT TH NLY 26 FT TH NWLY TO A PT 48.5 FT N OF S LN LOT 11 TH W 62.4 FT TH S
48.5 FT TO BEG
382 W Muskegon Ave
Parcel #24-205-336-0008-00
CITY OF MUSKEGON REVISED PLAT OF 1903 SLY 24.75 FT LOT 9 & NLY 55 FT LOT 8 BLK 336
487 W Muskegon Ave
Parcel #24-205-370-0011-10
CITY OF MUSKEGON REVISED PLAT OF 1903 E 27 FT OF LOT 11 BLK 370
420 Washington Ave
Parcel #24-205-375-0010-00
CITY OF MUSKEGON REVISED PLAT OF 1903 LOT 10 BLK 375
459 Washington Ave
Parcel #24-205-408-0002-00
CITY OF MUSKEGON REVISED PLAT OF 1903 LOT 2 &3 BLK 408
The 28 subject properties are all zoned for residential housing. Twenty-two of the subject
properties are zoned for single family residential. Ten of those lots can be split, resulting in a
total of 34 parcels for single family homes. Six of the subject properties are zoned for multi-
family housing. This will allow for an additional 14 housing units (11 rowhomes and one
triplex). The project will result in a total of 48 housing units with an estimated investment of
over $9,000,000.
The chart below depicts a listing of eligible properties and the basis for their eligibility.
Eligible Property Information Chart
Address Tax Identification Basis of Brownfield Approximate Zoning
Number Eligibility Acreage
1246 5th St 24-205-378-0006-00 Seller Concessions 0.07 R-3
1252 5th St 24-205-378-0006-10 Seller Concessions 0.07 R-3
1245 5th St 24-205-377-0001-00 Seller Concessions 0.12 R-3
1261 5th St 24-205-377-0011-00 Seller Concessions 0.1 R-3
1342 6th St 24-205-388-0006-20 Seller Concessions 0.09 R-3
1349 6th St (2 lots) 24-205-389-0012-00 Seller Concessions 0.19 R-3
1352 6th St (2 lots) 24-205-388-0007-00 Seller Concessions 0.2 R-3
1411 6th St 24-205-390-0011-20 Seller Concessions 0.1 R-3
1387 7th St (2 lots) 24-205-375-0005-00 Seller Concessions 0.22 R-3
395 Houston Ave (2 lots) 24-205-369-0004-00 Seller Concessions 0.21 R-3
248 Mason Ave 24-205-387-0007-00 Seller Concessions 0.14 R-3
275 Mason Ave (2 lots) 24-205-391-0003-00 Seller Concessions 0.18 R-3
346 Mason Ave (2 lots) 24-205-389-0009-00 Seller Concessions 0.09 R-3
352 Mason Ave 24-205-389-0008-00 Seller Concessions 0.2 R-3
219 Merrill Ave 24-205-386-0012-00 Seller Concessions 0.12 R-3
271 Merrill Ave (2 lots) 24-205-387-0005-00 Seller Concessions 0.19 R-3
388 Merrill Ave (2 lots) 24-205-376-0007-20 Seller Concessions 0.2 R-3
235 Monroe Ave 24-205-379-0003-10 Seller Concessions 0.09 FBC, UR
239 Monroe Ave 24-205-379-0003-00 Seller Concessions 0.11 FBC, UR
240 Monroe Ave 24-205-367-0010-00 Seller Concessions 0.11 FBC, UR
250 Monroe Ave 24-205-367-0009-00 Seller Concessions 0.2 FBC, UR
254 Monroe Ave 24-205-367-0008-10 Seller Concessions 0.06 FBC, UR
398 Monroe Ave 24-205-370-0011-10 Seller Concessions 0.08 R-3
1392 Park St 24-205-375-0003-20 Seller Concessions 0.07 R-3
382 W Muskegon Ave 24-205-336-0008-00 Seller Concessions 0.24 R-1
487 W Muskegon Ave 24-205-347-0004-00 Seller Concessions 0.19 FBC, UR
420 Washington Ave (2 Seller Concessions 0.19 R-3
24-205-375-0010-00
lots)
459 Washington Ave (4 Seller Concessions 0.46 R-3
24-205-408-0002-00
lots)
Eligible Activities, Financing, Cost of Plan (Sec. 13(1) (a) (b) (c) (d) (g))
Eligible activities include seller concessions and Brownfield Plan preparation and development
(see chart below).
Eligible Activities Chart
Eligible Activity Cost
Seller Concessions $720,000
Sub-total $720,000
Contingency (15%) $108,000
Brownfield Plan Preparation and Development $20,000
Total Eligible Activities to be paid under this $848,000
Plan
The eligible activities described above will occur on the Property and are further described as
follows:
1. Seller Concessions: If the sale of a home results in a loss to the developer, the difference
between the cost of construction and the sale price is considered a seller concession. For
this Plan, it is anticipated that each home may result in the loss of $15,000 per unit (48
units total).
2. Brownfield Plan Preparation and Development: Costs incurred to prepare and develop
this brownfield plan, as required per Act 381 of 1996, as amended.
It is intended that the above eligible activities will be reimbursed with interest at 5%. An estimate
of the captured taxable value and tax increment revenues, which includes the impact on the
taxing jurisdictions, is included as Attachment B.
Effective Date if Inclusion in the Brownfield Plan
The Nelson Neighborhood Infill Housing Project was added to this Plan on __________, 2019 and
will be amended accordingly upon adoption of this Plan Amendment.
Commission Meeting Date: April 23, 2019
Date: April 18, 2019
To: Honorable Mayor and City Commissioners
From: Planning & Economic Development
RE: Set the Public Hearing for Amendment to Brownfield Plan –
Sweetwater Development, LLC
SUMMARY OF REQUEST:
To approve the attached resolution setting a public hearing for an amendment to the
Brownfield Plan, and notifying taxing jurisdictions of the Brownfield Plan amendment
including the opportunity to express their views and recommendations regarding the
proposed amendment at the public hearing. The amendment is for the inclusion of
property at 292 W Western, owned by Sweetwater Development, LLC.
FINANCIAL IMPACT:
There is no direct financial impact in including the project in the Brownfield Plan,
although the redevelopment of the site into a residential development will eventually
add to the tax base in Muskegon.
BUDGET ACTION REQUIRED:
None
STAFF RECOMMENDATION:
To approve the attached resolution and authorize the Mayor and Clerk to sign the
resolution.
COMMITTEE RECOMMENDATION:
The Brownfield Redevelopment Authority met on April 9, 2019 and approved the
Brownfield Plan Amendment, and recommends the approval of the Brownfield Plan
Amendment to the Muskegon City Commission. In addition, the Brownfield
Redevelopment Authority recommends that the Muskegon City Commission set a
public hearing on the Plan Amendment for May 14, 2019.
RESOLUTION NOTIFYING TAXING UNITS
AND CALLING PUBLIC HEARING REGARDING
APPROVAL OF AMENDMENT TO THE BROWNFIELD PLAN OF THE
CITY OF MUSKEGON BROWNFIELD REDEVELOPMENT AUTHORITY
SWEETWATER DEVELOPMENT, LLC
City of Muskegon
County of Muskegon, Michigan
___________________________________
Minutes of a Regular Meeting of the City Commission of the City of Muskegon,
County of Muskegon, Michigan (the "City"), held in the City offices, on the 26th day of
April, 2019, at 5:30 p.m., prevailing Eastern Time.
PRESENT:
Members__________________________________________________________
__________________________________________________________________
ABSENT: Members
__________________________________________________________________
The following preamble and resolution were offered by Member
_________________ and supported by Member _________________:
WHEREAS, the City of Muskegon, County of Muskegon, Michigan (the "City") is
authorized by the provisions of Act 381, Public Acts of Michigan, 1996, as amended
("Act 381"), to create a brownfield redevelopment authority; and
WHEREAS, pursuant to Act 381, the City Commission of the City duly
established the City of Muskegon Brownfield Redevelopment Authority (the "Authority");
and
4/18/19 2
WHEREAS, in accordance with the provisions of Act 381, the Authority has
prepared and approved Brownfield Plan Amendments to include SWEETWATER
DEVELOPMENT, LLC, and
WHEREAS, the Authority has forwarded the Brownfield Plan Amendments to the
City Commission requesting its approval of the Brownfield Plan Amendments and
WHEREAS, prior to approval of the Brownfield Plan Amendments, the
Muskegon City Commission desires to hold a public hearing in connection with
consideration of the Brownfield Plan Amendments as required by Act 381; and
WHEREAS, prior to approval of the Brownfield Plan Amendments, the
City Commission is required to provide notice and a reasonable opportunity to the
taxing jurisdictions levying taxes subject to capture, to express their views and
recommendations regarding the Brownfield Plan Amendments.
NOW, THEREFORE, BE IT RESOLVED THAT:
1. The City Commission hereby acknowledges receipt of the Brownfield Plan
Amendments from the Authority and directs the City Clerk to send a copy of the
proposed Brownfield Plan Amendments to the governing body of each taxing
jurisdiction in the City, notifying them of the City Commission's intention to consider
approval of the Brownfield Plan Amendments [after the public hearing described below].
2. A public hearing is hereby called on the 14th of May, 2019 at 5:30 p.m.,
prevailing Eastern Time, in the City Hall Commission Chambers to consider adoption by
the City Commission of a resolution approving the Brownfield Plan Amendments.
4/18/19 3
3. All resolutions and parts of resolutions insofar as they conflict with the
provisions of this resolution be and the same hereby are rescinded.
AYES: Members
_____________________________________________________________________
_______________________________________________________________
NAYS: Members
__________________________________________________________________
RESOLUTION DECLARED ADOPTED.
_____________________________
Ann Meisch, City Clerk
4/18/19 4
I hereby certify that the foregoing is a true and complete copy of a resolution
adopted by the City Commission of the City of Muskegon, County of Muskegon, State
of Michigan, at a regular meeting held on April 26, 2019, and that said meeting was
conducted and public notice of said meeting was given pursuant to and in full
compliance with the Open Meetings Act, being Act 267, Public Acts of Michigan, 1976,
as amended, and that the minutes of said meeting were kept and will be or have been
made available as required by said Act.
_____________________________
Ann Meisch, City Clerk
4/18/19 5
CITY OF MUSKEGON
BROWNFIELD REDEVELOPMENT AUTHORITY
FIRST AMENDMENT TO THE BROWNFIELD
PLAN FOR DMDC REDEVELOPMENT
PROJECT -
FORMER MUSKEGON MALL
Original Plan Approved by the Board of the City of Muskegon Brownfield
Redevelopment Authority on February 23, 1998, with amendments approved
8/10/98;6/13/00; 4/15/03; 7/7/03; 4/20/04; 6/21/04; 9/8/04; 9/5/06; 2/23/07;
5/15/07; 11/12/07; 5/13/08; 6/24/08 and 4/9/13.
Original Plan Approved by the City Commission of the City of Muskegon on April
14, 1998, with amendments approved 8/11/98; 7/11/00; 5/27/03; 8/12/03;
5/25/04; 7/13/04; 7/27/04; 10/12/04; 10/24/06, 3/27/07; 6/12/07; 1/8/08; 5/13/08;
6/24/08 and 5/14/13
CITY OF MUSKEGON
BROWNFIELD REDEVELOPMENT AUTHORITY
BROWNFIELD PLAN
INDEX
I. INTRODUCTION
II. GENERAL PROVISIONS
A. Costs of the Brownfield Plan
B. Method for Financing Costs of Plan
C. Duration of the Brownfield Plan
D. Displacement/Relocation of Individuals on Eligible
Properties
E. Local Site Remediation Revolving Fund
III. SITE SPECIFIC PROVISIONS
A. Kirksey/Anaconda Property (Approved 4/14/98)
B. Dilesco Corporation Property (Approved 8/11/98)
C. Beacon Recycling (Approved 7/11/00)
D. Verplank Dock Company (Approved 5/27/03)
E. Gillespie Development Property (Approved 8/12/03)
F. Loft Properties, LLC Property (Approved 8/12/03)
G. Parmenter O'Toole Property (Approved 8/12/03)
H. "The WaterMark" Project (Approved 5/25/04)
I. Northern Machine Tool (Approved 7/13/04)
J. Terrace Lots Office Building (Approved 7/13/04)
K. Art Works Apartments (Approved 7/27/04)
L. Former Muskegon Mall (Approved 10/12/04)
M. Vida Nova at Edison Landing (Approved 10/10/06)
N. Western Ave. Properties LLC and Port City Development Services,
LLC (Approved 10/10/06)
O. Viridian Place at Edison Landing (Approved 10/24/06)
P. Hot Rod Harley (Approved 3/27/07)
Q. Sidock Building Project (Approved 6/12/07)
R. Heritage Square Town Homes (Approved 1/8/08)
S. Betten Auto Dealerships (Approved 5/13/08)
T. Parkland Muskegon Mixed Use Project (Approved 6/24/08)
U. Terrace Point Landing Redevelopment Project (Approved 5/14/13)
V. P&G Holdings NY, LLC (Approved 1/10/17)
City of Muskegon Brownfield Plan Amendment
December 2018
I. INTRODUCTION
In order to promote the revitalization of commercial, industrial, and residential
properties within the boundaries of the City of Muskegon (the "City"), the City
established the City of Muskegon Brownfield Redevelopment Authority (the
"Authority") pursuant to Act 381, Public Acts of Michigan, as amended ("Act 381"),
and a resolution adopted by the Muskegon City Commission on February 10, 1998.
Terms defined in Act 381 and applicable sections of the statute are noted in italics
throughout this document.
This Brownfield Plan ("Plan") was originally intended to address the redevelopment
of eligible properties within the City that are impacted by the presence of hazardous
substances in concentrations that exceed Michigan's Part 201 Generic Cleanup
Criteria ("facilities") or that have been determined to be Functionally Obsolete or
Blighted. By facilitating redevelopment of underutilized eligible properties, the Plan
is intended to promote economic growth for the benefit of the residents of the City
and all taxing units located within and benefited by the Authority.
The Plan is intended to be a living document, which can be amended as necessary
to achieve the purposes of Act 381. It is specifically anticipated that properties will
be continually added to the Plan as new projects are identified. The Plan contains
general provisions applicable to the Plan, as well as property-specific information
for each project. The applicable Sections of Act 381 are noted throughout the Plan
for reference purposes.
The Plan contains the information required by Section 13(2) of Act 381, as
amended. Additional information is available from the Muskegon City Manager or
the Director of Planning and Economic Development.
II. GENERAL PROVISIONS
A. Costs of the Brownfield Plan (Section 13(2)(a))
Any site-specific costs of implementing the Plan are described in the site-specific
section of the Plan. Site-specific sources of funding may include tax increment
financing revenue generated from new development on eligible brownfield
properties, state and federal grant or loan funds, and/or private parties. Where
private parties finance the costs of eligible activities under the Plan, tax increment
revenues may be used to reimburse the private parties. The initial costs related
to preparation of the Plan were funded by the City's general fund. Subsequent
amendments to the Plan may be funded by the person requesting inclusion of a
project in the Plan, and if eligible, may be reimbursed through tax increment
financing.
The Authority intends to pay for administrative costs and all of the things necessary
or convenient to achieve the objectives and purposes of the Authority with fees
charged to applicants to be included in the Plan and any eligible tax increment
revenues collected pursuant to the Plan, in accordance with the provisions of Act
381, including, but not limited to:
i) the cost of financial tracking and auditing the funds of the Authority,
ii) costs for amending and/or updating the Plan, including legal fees, and
iii) costs for Plan implementation
Tax increment revenues that may be generated and captured by this Plan are
identified in the site-specific sections of this Plan.
B. Method for Financing Costs of Plan and Bonded Indebtedness (Section
13(2)(d) and (e))
The City or Authority may incur some debt on a site-specific basis. Please refer to
the site-specific section of the Plan for details on any debt to be incurred by the
City or Authority. When a property proposed for inclusion in the Plan is in an area
where tax increment financing is a viable option, the Authority intends to enter into
Development and Reimbursement Agreement with the property
owners/developers of properties included in the Plan to reimburse them for the
costs of eligible activities undertaken pursuant to the Plan. Financing arrangements
will be specified in the Development and Reimbursement Agreement, and also
identified in the site-specific section of the Plan.
C. Duration of the Brownfield Plan (Section 13(2)(f))
The Plan, as it applies to a specific eligible property, shall be effective up to five
(5) years after the year in which the total amount of any tax increment revenue
captured is equal to the total costs of eligible activities attributable to the specific
eligible property, or thirty (30) years from the date of first tax capture under the
Plan as it relates to an individual site, whichever is less. The total costs of eligible
activities include the cost of principal and interest on any note or obligation issued
by the Authority to pay for the costs of eligible activities, the reasonable costs of
a Work Plan, the actual costs of the Michigan Department of Environmental
Quality’s or Michigan Strategic Fund’s review of the work plan, and
implementation of the eligible activities.
D. Displacement/Relocation of Individuals on Eligible
Properties (Section 13(2)(i),(j)(k)(l))
At this time, eligible properties identified in the Plan do not contain residences, nor
are there any current plans or intentions by the City for identifying eligible
properties that will require the relocation of the residences. Therefore the
provisions of Section 13(2)(i-l) are not applicable at this time.
E. Local Brownfield Revolving Fund (Section 8; Section 13(5)(b))
Whenever the Plan includes a property for which taxes will be captured through
Tax Increment Financing (“TIF”) provided by Act 381, it is the Authority's intent to
establish a Local Brownfield Revolving Fund ("Fund"). The Fund will consist of tax
increment revenues that exceed the costs of eligible activities incurred on an
eligible property, as specified in Section 13(5) of Act 381. Section 13(5) authorizes
the capture of TIF from an eligible property for up to 5 years after the time that
capture is required for the purposes of reimbursing the costs of eligible activities
identified in the Plan. It is the intention of the Authority to continue to capture tax
increment revenues for up to 5 years after eligible activities are funded from those
properties identified for tax capture in the Plan, provided that the time frame
allowed by Act 381 for tax capture is sufficient to accommodate capture to
capitalize a Fund. The amount of school operating taxes captured for the Fund will
be limited to the amount of school operating taxes captured for eligible department
specific activities under the Plan. It may also include funds appropriated or
otherwise made available from public or private sources.
The Fund may be used to reimburse the Authority, the City, and private parties
for the costs of eligible activities at eligible properties and other costs as
permitted by Act 381. It may also be used for eligible activities on eligible
property for which there is no ability to capture tax increment revenues. The
establishment of the Fund will provide additional flexibility to the Authority in
facilitating redevelopment of brownfield properties by providing another source
of financing for necessary eligible activities.
III. SITE SPECIFIC PROVISIONS
L. FORMER MUSKEGON MALL – FIRST AMENDMENT
Eligibility and Project Description (Sec. 13(2)(h))
Mall Development
The Plan that added the original Mall Property (defined below) was originally
adopted in October 2004 to accommodate Downtown Muskegon Development
Corporation’s (“DMDC”) acquisition and development of the former Muskegon
Mall property in downtown Muskegon. A majority of the buildings on the 23-
acre site had been demolished (See Map included as Attachment L-1.). The
intent of the DMDC was to prepare the site for development and market the site
to developers to create a mixed use residential, commercial, and retail
development in the downtown.
Originally, the entire former Mall property was established as one parcel (the
"Mall Property") when the Plan was adopted. The legal description of the
Mall Property is included as Attachment L-2 and the eligible property included
all new taxable personal property.
The Mall Property is considered a "facility" pursuant to Part 201 of the Natural
Resources and Environmental Protection Act, and is therefore an eligible
property pursuant to Act 381. Soils samples collected by Environmental
Resources Management in June 2004 found concentrations of lead and
mercury that exceed the Part 201 generic residential cleanup criteria.
The Mall Property was marketed by DMDC as a multi-developer site. Lots
have been sold according to the needs of each developer under a
condominium structure. To assure continued beautification, appropriate
quality, and architectural integrity, restrictive covenants have been
implemented by the DMDC to assure that the project develops according to the
"Imagine Muskegon" plan. Overall guidelines for the development (i.e.: building
height, style, etc.) have been developed as part of each sales agreement.
The Mall Property is serviced by city water and sewer, and has appropriate
electric and natural gas service. Where appropriate, utilities have been
upgraded and improved. Where possible, electrical service and cable was
installed underground. As part of the original site development, a significant
amount of infrastructure work was completed in preparation for future
redevelopment. A majority of the work was completed using grant and loan
funds and the intent was to utilize TIF under the Plan to repay the loans.
The Mall Property was subject to a tax-free Renaissance Zone through
approximately 2012 and the intent was to begin capturing and reimbursing the
costs of eligible activities, including infrastructure improvements, demolition, site
preparation, and environmental response activities undertaken after the Plan was
approved.
The DMDC had originally estimated redevelopment would generate private
investment of $60 million and create approximately 225 jobs.
Sweetwater Development Project
The Plan is being amended for the purpose of supporting specific eligible
activities associated with a new project located within the boundaries of
the Mall Property in the heart of downtown. Sweetwater Development,
LLC (“Sweetwater”) is proposing to redevelop a portion of the vacant lot at
292 W. Western Avenue known as Unit 24 of the Downtown Muskegon
Development Center No.1 condominium plan consisting of approximately
0.32 acres located at the corner of W. Western Avenue and 2nd Street in
downtown Muskegon (the “Sweetwater Property”). Sweetwater is
proposing to construct a new six-story mixed use building that will contain
approximately 48,000 sf and include a mix of first floor retail, office and
residential space above approximately 8,000 sf of underground parking
that would provide an estimated twenty-eight (28) parking spaces (the
“Sweetwater Project”). The Sweetwater Project’s first floor retail space
would include an estimated two (2) units with approximately 7,200 sf and
two (2) stories of commercial office space above with approximately 7,300
sf on each floor. The Sweetwater Project’s remaining three (3) floors
would include six (6) units on each floor (18 total units) with a mix of one
and two bedroom units.
The Sweetwater Project will provide mixed use infill development along W.
Western Avenue in the heart of downtown Muskegon. Total capital
investment is estimated at approximately $8.7 million and it is currently
anticipated construction would begin in spring 2019 with eligible activities
completed within 12 months.
Eligible Activities, Financing, Cost of Plan (Sec. 13(2)(a), (b), (c) (g)
Mall Development
Eligible activities that have been conducted on the Property include department
specific activities, demolition, lead and asbestos abatement, infrastructure
improvements, site preparation, and brownfield plan and work plan preparation
and development. TIF has been and will be used to reimburse the City, DMDC,
and developers for the cost of eligible activities undertaken by those parties and
authorized pursuant to Act 381. No costs shall be reimbursed with school
operating tax increment revenues unless they are conducted pursuant to a work
plan approved by the Michigan Department of Environmental Quality or the
Michigan Strategic Fund, unless otherwise authorized by Act 381.
The following are eligible activities that have been and may be reimbursed
through Brownfield tax increment revenues:
1. Department Specific Activities: Activities necessary for developers to
undertake their environmental due diligence, and any necessary costs
related to Due Care obligations, including preparation of Due Care Plans
and implementation of Due Care Response Activities, are estimated at
$100,000. This amount is intended to accommodate the needs of the
several developers anticipated to be involved in the Mall Property
redevelopment and include Phase I, II and BEAs.
2. Demolition Activities, including Lead and Asbestos Abatement:
Demolition of most of the buildings on the Mall Property was completed
prior to original adoption of the Plan. However, subsequent developers
may require selective interior and exterior demolition of remaining
improvements on the Mall Property. Demolition costs were estimated
at $700,000.
3. Infrastructure Improvements: First, Second, Jefferson and Market
Streets were rededicated in a grid similar to the original street layout for
downtown Muskegon. DMDC sold the road and sidewalk right-of-ways
to the City to accommodate rededication of these streets. The City
then constructed the roads, sidewalks, streetscape, lighting and design.
The cost for the improvements were estimated at $1,000,000 and initial
costs were covered through a combination of grants and loans,
including a ULA Loan for $700,000 that TIF is being used to repay.
4. Site Preparation Activities: Surveys, borings, testing, staking, etc. costs
were estimated at $100,000.
In addition to the eligible activities listed above, the Authority intends to capture
tax increment revenues for the following costs, as applicable and available by
law:
Brownfield Redevelopment Authority Administrative Costs: Reasonable
and actual administrative and operating costs of the Authority from non-
school taxes would be captured. Up to $50,000/year will be captured
from the Mall Property for Administrative Costs of the Authority.
Financing Costs: The Authority intends to capture tax increment revenue to
pay for interest on the eligible expenses incurred. Interest is calculated at
5%, compounded annually, with payback beginning in 2013.
Local Brownfield Revolving Fund: The Authority intends to capture local
tax increment revenue for up to five years after all eligible activities plus
interest are reimbursed, for deposit into the Fund. The amount of school
operating taxes captured for the Fund will be limited to the amount of
school operating taxes captured for MDEQ eligible activities under the
Plan. There will be no use of the Fund to finance the redevelopment.
Subject to the priority of capture outlined below for the Sweetwater Project, an
estimate of the yearly captured taxable value and tax increment revenues for
from the Mall Property and Sweetwater Property are shown in the tax capture
table included as Attachment L-4. This table also shows the estimate of the
impact of tax increment financing on the revenues of all taxing jurisdictions
affected by this tax capture. The Mall Property and Sweetwater Property are
located within the City’s Downtown Development Authority (“DDA”) tax increment
financing boundary and it is expected that the Authority will formalize a pass-
through agreement with the DDA to ensure full brownfield capture by the
Authority for the purpose of reimbursing eligible activities under the Plan.
Sweetwater Development Project
It is intended that the amended Plan shall provide priority for reimbursement of
eligible activities conducted on the Sweetwater Property for the Sweetwater
Project, including department specific activities (i.e. Phase I and II Environmental
Site Assessment), site preparation, and infrastructure improvements. TIF
revenues generated from the Sweetwater Project will first be used to reimburse
the Sweetwater Project developer for the cost of eligible activities undertaken by
the developer on the Sweetwater Property. Following full reimbursement of the
Sweetwater Project eligible activities, TIF generated by the Sweetwater Property
may be used for any other purpose allowable under Act 381 and the Plan.
The following are eligible activities that may be reimbursed through TIF
revenues:
1. Department Specific Activities: Phase I and II Environmental Site
Assessments have been completed prior to acquisition of the Sweetwater
Property at a cost of up to $20,000.
2. Site Preparation: Site preparation activities including temporary fencing,
temporary security, temporary erosion control, grading and land balancing,
sheet piling and excavation for underground parking are estimated at
$80,000.
3. Infrastructure Improvements: Infrastructure improvements made in
connection with the Sweetwater Project include the construction of an
underground parking structure that will provide approximately eighteen (18)
spaces with another ten (10) above and road repairs/improvements in the
public ROW and are estimated at $833,000.
4. Contingency: A 15% contingency is included to cover unexpected cost
overruns encountered during rehabilitation is estimated at $136,950.
5. Brownfield Plan and/or Work Plan Preparation and Implementation: The
costs incurred to prepare, develop and implement this amended Plan
amendment and an Act 381 Work Plan are estimated at $30,000.
Financing (Section 13(2)(d)
Financing to pay for infrastructure costs for the original Mall Property
redevelopment came from a variety of grants and loans. It was intended TIF
would be used to cover the cost of eligible activities not covered by the grant
funds and to repay any outstanding loans used to pay for the infrastructure.
Remaining eligible activities funded by private developers would be reimbursed
under the amended Plan as-needed in order to foster redevelopment of the
downtown. A Development and Reimbursement Agreement will be negotiated
with any developer incurring eligible activities to provide for reimbursement
through TIF.
Effective Date of Inclusion in Brownfield Plan
The Mall Property was originally added to the Plan on October
12, 2004 with available capture commencing in 2013. It is
intended the duration of the Plan capture is the lesser of full
reimbursement of eligible activities or 30 years with capture
beginning no later than the availability of capture or 2009,
whichever comes first.
ATTACHMENT L-1
SITE MAP
Mall Property
DOWNTOWN REDEVELOPMENT
HOOKER DE JONG
O DOWNTOWN MUSKEGON PEVELPPMENr CORP
n. ,
10. MIC-ON Isfa.3,4
alchiletIS C=engineers
Sweetwater Property
ATTACHMENT L-2
LEGAL DESCRIPTION
CITY OF MUSKEGON
REVISED PLAT OF 1903
MUSKEGON MALL PROPERTY
THAT PART OF
BLK 309, BLK 310, ELK 311,
BLK 312, BLK 559, ELK 560,
BLK 561, BLK 564,
AND BLK 565 DESC AS
ENTIRE BLK 309
LYING WLY OF WLY LINE TERRACE ST AS RELOCATED
(WIN LINE OF TERRACE ST RELOCATED DESC AT END OF DESC)
INCLUDING E/W AND N/S ALLEYS VACATED IN SD BLK
ALSO ELK 310 LOTS 1 TO 11 INCLUSIVE
AND NLY 1/2 OF VAC E/W ALLEY ADJ THERE TO
AND LOT 18 AND SLY 1/2 OF E/W ALLEY ADJ THERE TO SD BLK 310
ALSO ENTIRE ELK 311 EXC E/W ALLEY IN SD BLK
ALSO ENTIRE BLK 312 INCLUDING ALL VAC ALLEYS TN SD BLK
ALSO LOTS 7 TO 16 INCLUSIVE BLK 559
LYING SLY OF MORRIS ST AND WLY OF TERRACE ST AS RELOCATED
(SEE DESCRIPTION OF MORRIS/TERRACE BELOW)
ALSO ENTIRE ELK 560 INCLUDING VAC ALLEY IN SD BLK
ALSO LOTS 3 TO 15 BLK 561 LYING SELY OF SELY LINE MORRIS ST
AND SELY 1/2 OF VAC 18 FT ALLEY THAT RUNS SW TO NE IN SD BLK 561
ALSO LOTS I AND 2 AND LOT 7 AND LOTS 8 TO 13 INCLUSIVE BLK 564
ALSO LOTS 1 TO 18 INCLUSIVE ELK 565
AND ENTIRE VAC ALLEY ADJ TO LOTS 3 TO 15 INCLUSIVE SD BLK 565
ALSO INCL ENTIRE VAC WESTERN AVE
ELY OF 3RD ST AND WLY OF TERRACE ST AS RELOCATED
ALSO INCL VAC JEFFERSON ST N OF CLAY AVE
ALSO INCL VAC JEFFERSON ST N OF WESTERN AVE
AND S OF MORRIS AVE
ALSO INCL VAC MARKET ST WLY OF TERRACT ST (RELOCATED) AND ELY
OF A LINE DESC AS BEG AT SE COR LOT 2 ELK 561
TH SELY ALD E LINE SD LOT 2 IF EXTENDED 33 FT
TH SWLY ALG C/L OF MARKET ST
TO INTERSECTION WITH WESTERN AVE FOR POE OF SD LINE
ALSO INCL SWLY 1/2 OF VAC 1ST ST
ADJ TO LOTS 13 14 AND ALLEY IN BLK 311
ALSO INCL ENTIRE VAC FIRST STREET
LYING N OF NLY ALLEY SD BLK 311
AND S OF A LINE DESC AS
COM AT NE COR LOT 13 BLK 564
TH NE ALONG EXTENTION OF N LINE SD LOT 13 10 FT M/L
TH S 86D OOM 005 E 5.66 FT
TH S 41D 33M 00S E 43.1 FT
TH S 86D OOM 005 E 17.9 FT
' .Ju1.14. 2004 12:31V11 MUSP‘blIN Lynn
THN 49D 00M 00S E 199.83 FT TO POE OF SD LINE
ALSO TNCL THAT PART OF 2ND ST
LYING SLY OF SLY LINE OF ALLEY IN ELK 565
IF EXTENDED ELY TO NW COR LOT 8 BLK 564
ALSO INCL THAT PART OF SWLY 1/2 OF 2ND ST
AD1 TO LOT 18 BLK 565 AND LOTS BLK 564
(RELOCATED LINES OF MORRIS AVENUE AND TERRACE ST IS AS FOLLOWS:
COM AT SW COR LOT 19 ELK 309
THNELY ALG N LINE CLAY AVE 338.40 FT FOR POB
OF WLY LINE TERRACE ST
'MN 34D OIM 00S W 190.25 FT
TH NWLY ALO SWLY LINE TERRACE ST
ON ARC OF 482.50 ET RAD CURVE TO LEFT 221.25 FT
(LONG CHORD BEARS N 50D 40M W 219.27 FT)
THN 63D 48M W ALO SWLY LINE TERRACE ST 284.90 FT
TH N 63D 48M W ALO SWLY LINE TERRACE ST 211.80 FT
TI! WLY ALG ARC OF 82 FT RAD CURVE TO LEFT128.47 FT
(LONG CHORD BEARING S 71D 19M W 115.73 FT
TO My LINE MORRIS AVE)
AND POE OF WLY LINE TERRACE ST RELOCATED
ATTACHMENT L-3
SUMMARY OF ELIGIBLE ACTIVITIES
FORMER MUSKEGON MALL
1
Eligible Activities Costs
Mall Cost Sweetwater Cost
BEA and Due Care Activities $100,000 $20,000
MDEQ Eligible Activities Total Cost $100,000 $20,000
Demolition $700,000 $0
Site Preparation $100,000
Temporary Construction Fencing $5,000
Temporary Erosion Control $5,000
Temporary Security/Shoring of Utilities $15,000
Excavation for underground parking,
Land Balancing and Grading $55,000
Site Preparation Sub-Total $100,000 $80,000
Infrastructure Improvements $1,000,000
Parking Structure (Private)
A/E $48,616
Sheet piling $35,000
Concrete $460,134
Plumbing $25,000
Metals $25,000
Waterproofing $75,000
Doors/Openings $12,000
Parking Equipment $17,500
Fire Protection $35,000
HVAC $60,000
Electrical $24,750
Improvements in Right of Way (Public)
Sidewalks 833 @ $6 $5,000
Curb and Gutter 250LF @ $20 $5,000
Concrete Paving Repair $5,000
Infrastructure Improvements Sub- $1,000,000 $833,000
Total
Total Eligible Activities $1,900,000 $933,000
Contingency (15%) $139,950
Brownfield/Work Plan Preparation
and Development $30,000
Total Eligible Activities $1,900,000 $1,102,950
*Interest on Mall costs will be reimbursed with Interest up to
$5%.
ATTACHMENT L-4
TAX CAPTURE ESTIMATES
FORMER MUSKEGON MALL
Tax Increment Revenue Capture Estimates
Former Muskegon Mall
Muskegon, Michigan
December 6, 2018
Estimated Taxable Value (TV) Increase Rate:
1.50%
Plan Year 1 2 3 4 5 6 7 8 9 10 11 12 13 14
Calendar Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Base Taxable Value $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Estimated New TV $ - $ - $ - $ - $ 3,200,391 $ 3,442,850 $ 3,117,735 $ 3,187,686 $ 3,106,755 $ 3,153,356 $ 3,200,657 $ 3,248,667 $ 3,297,397 $ 3,346,857
Incremental Difference (New TV - Base TV) $ - $ - $ - $ - $ 3,200,391 $ 3,442,850 $ 3,117,735 $ 3,187,686 $ 3,106,755 $ 3,153,356 $ 3,200,657 $ 3,248,667 $ 3,297,397 $ 3,346,857
School Capture Millage Rate
State Education Tax (SET) 6.0000 $ - $ - $ - $ - $ 9,601 $ 15,493 $ 18,706 $ 19,126 $ 18,640 $ 18,920 $ 19,204 $ 19,492 $ 19,784 $ 20,081
School Operating Tax 18.0000 $ - $ - $ - $ - $ 26,408 $ 43,014 $ 51,338 $ 52,825 $ 52,865 $ 56,760 $ 57,612 $ 58,476 $ 59,353 $ 60,243
School Total 24.0000 $ - $ - $ - $ - $ 36,009 $ 58,507 $ 70,044 $ 71,951 $ 71,505 $ 75,681 $ 76,816 $ 77,968 $ 79,138 $ 80,325
Local Capture Millage Rate
City Operating 10.0869 $ - $ - $ - $ 15,340 $ 26,048 $ 31,449 $ 32,165 $ 31,350 $ 31,808 $ 32,285 $ 32,769 $ 33,261 $ 33,759
County Operating 5.6984 $ - $ - $ - $ - $ 9,119 $ 14,714 $ 17,766 $ 18,165 $ 17,703 $ 17,969 $ 18,239 $ 18,512 $ 18,790 $ 19,072
City Sanitation 3.0000 $ - $ - $ - $ - $ 4,000 $ 7,746 $ 9,353 $ 9,563 $ 9,320 $ 9,460 $ 9,602 $ 9,746 $ 9,892 $ 10,041
County Museum 0.3221 $ - $ - $ - $ - $ 515 $ 832 $ 1,004 $ 1,027 $ 1,001 $ 1,016 $ 1,031 $ 1,046 $ 1,062 $ 1,078
Senior Services 0.4998 $ - $ - $ - $ - $ - $ - $ - $ 1,594 $ 1,553 $ 1,576 $ 1,600 $ 1,624 $ 1,648 $ 1,673
County Veterans 0.0752 $ - $ - $ - $ - $ 120 $ 194 $ 234 $ 240 $ 233 $ 237 $ 241 $ 244 $ 248 $ 252
County Qual Life 0.2400 $ - $ - $ - $ - $ 960 $ 895 $ 749 $ - $ - $ - $ - $ - $ - $ -
Central Dispatch 0.3000 $ - $ - $ - $ - $ 480 $ 775 $ 936 $ 956 $ 932 $ 946 $ 960 $ 975 $ 989 $ 1,004
Comm College 2.2037 $ - $ - $ - $ - $ 3,526 $ 5,690 $ 6,871 $ 7,025 $ 6,846 $ 6,949 $ 7,053 $ 7,159 $ 7,266 $ 7,375
MAISD 4.7580 $ - $ - $ - $ - $ 6,013 $ 9,704 $ 11,716 $ 11,980 $ 11,675 $ 15,004 $ 15,229 $ 15,457 $ 15,689 $ 15,924
Hackley Library 2.4000 $ - $ - $ - $ - $ 3,840 $ 6,197 $ 7,482 $ 7,651 $ 7,456 $ 7,568 $ 7,682 $ 7,797 $ 7,914 $ 8,032
Local Total 29.5841 $ - $ - $ - $ - $ 43,913 $ 72,795 $ 87,560 $ 90,366 $ 88,069 $ 92,532 $ 93,920 $ 95,329 $ 96,759 $ 98,211
Non-Capturable Millages Millage Rate
Comm College Debt 0.3400 $ - $ - $ - $ - $ - $ 878 $ 1,060 $ 1,084 $ 1,057 $ 1,072 $ 1,088 $ 1,105 $ 1,121 $ 1,138
Hackley Debt 0.5611 $ - $ - $ - $ - $ - $ - $ 1,750 $ 1,581 $ 1,553 $ 1,769 $ 1,796 $ 1,823 $ 1,850 $ 1,878
MPS Debt - 1995 4.7000 $ - $ - $ - $ - $ - $ - $ 14,653 $ 14,982 $ 14,602 $ 14,821 $ 15,043 $ 15,269 $ 15,498 $ 15,730
MPS Debt - 2009 2.1000 $ - $ - $ - $ - $ - $ - $ 6,547 $ 6,694 $ 6,524 $ 6,622 $ 6,721 $ 6,822 $ 6,925 $ 7,028
Total Non-Capturable Taxes 7.7011 $ - $ - $ - $ - $ - $ 878 $ 24,011 $ 24,341 $ 23,736 $ 24,284 $ 24,649 $ 25,018 $ 25,394 $ 25,774
Total Tax Increment Revenue (TIR) Available for Capture $ - $ - $ - $ - $ 79,922 $ 131,302 $ 157,604 $ 162,317 $ 159,574 $ 168,213 $ 170,736 $ 173,297 $ 175,897 $ 178,535
Footnotes:
Ren Zone expired and first year of available capture was 2013.
Past capture shown through 2017 with inflation at 1.5% thereafter
April 2017
Tax Increment Revenue Capture Estimates
Former Muskegon Mall
Muskegon, Michigan
December 6, 2018
Estimated Taxable Value (TV) Increase Rate:
Plan Year 15 16 17 18 19 20 21 22 23 24 25 26 27 28
Calendar Year 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036
Base Taxable Value $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Estimated New TV $ 3,397,060 $ 3,448,016 $ 3,499,736 $ 3,552,233 $ 3,605,516 $ 3,659,599 $ 3,714,493 $ 3,770,210 $ 3,826,763 $ 3,884,165 $ 3,942,427 $ 4,001,564 $ 4,061,587 $ 4,122,511
Incremental Difference (New TV - Base TV) $ 3,397,060 $ 3,448,016 $ 3,499,736 $ 3,552,233 $ 3,605,516 $ 3,659,599 $ 3,714,493 $ 3,770,210 $ 3,826,763 $ 3,884,165 $ 3,942,427 $ 4,001,564 $ 4,061,587 $ 4,122,511
School Capture Millage Rate
State Education Tax (SET) 6.0000 $ 20,382 $ 20,688 $ 20,998 $ 21,313 $ 21,633 $ 21,958 $ 22,287 $ 22,621 $ 22,961 $ 23,305 $ 23,655 $ 24,009 $ 24,370 $ 24,735
School Operating Tax 18.0000 $ 61,147 $ 62,064 $ 62,995 $ 63,940 $ 64,899 $ 65,873 $ 66,861 $ 67,864 $ 68,882 $ 69,915 $ 70,964 $ 72,028 $ 73,109 $ 74,205
School Total 24.0000 $ 81,529 $ 82,752 $ 83,994 $ 85,254 $ 86,532 $ 87,830 $ 89,148 $ 90,485 $ 91,842 $ 93,220 $ 94,618 $ 96,038 $ 97,478 $ 98,940
Local Capture Millage Rate
City Operating 10.0869 $ 34,266 $ 34,780 $ 35,301 $ 35,831 $ 36,368 $ 36,914 $ 37,468 $ 38,030 $ 38,600 $ 39,179 $ 39,767 $ 40,363 $ 40,969 $ 41,583
County Operating 5.6984 $ 19,358 $ 19,648 $ 19,943 $ 20,242 $ 20,546 $ 20,854 $ 21,167 $ 21,484 $ 21,806 $ 22,134 $ 22,466 $ 22,803 $ 23,145 $ 23,492
City Sanitation 3.0000 $ 10,191 $ 10,344 $ 10,499 $ 10,657 $ 10,817 $ 10,979 $ 11,143 $ 11,311 $ 11,480 $ 11,652 $ 11,827 $ 12,005 $ 12,185 $ 12,368
County Museum 0.3221 $ 1,094 $ 1,111 $ 1,127 $ 1,144 $ 1,161 $ 1,179 $ 1,196 $ 1,214 $ 1,233 $ 1,251 $ 1,270 $ 1,289 $ 1,308 $ 1,328
Senior Services 0.4998 $ 1,698 $ 1,723 $ 1,749 $ 1,775 $ 1,802 $ 1,829 $ 1,857 $ 1,884 $ 1,913 $ 1,941 $ 1,970 $ 2,000 $ 2,030 $ 2,060
County Veterans 0.0752 $ 255 $ 259 $ 263 $ 267 $ 271 $ 275 $ 279 $ 284 $ 288 $ 292 $ 296 $ 301 $ 305 $ 310
County Qual Life 0.2400 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Central Dispatch 0.3000 $ 1,019 $ 1,034 $ 1,050 $ 1,066 $ 1,082 $ 1,098 $ 1,114 $ 1,131 $ 1,148 $ 1,165 $ 1,183 $ 1,200 $ 1,218 $ 1,237
Comm College 2.2037 $ 7,486 $ 7,598 $ 7,712 $ 7,828 $ 7,945 $ 8,065 $ 8,186 $ 8,308 $ 8,433 $ 8,560 $ 8,688 $ 8,818 $ 8,951 $ 9,085
MAISD 4.7580 $ 16,163 $ 16,406 $ 16,652 $ 16,902 $ 17,155 $ 17,412 $ 17,674 $ 17,939 $ 18,208 $ 18,481 $ 18,758 $ 19,039 $ 19,325 $ 19,615
Hackley Library 2.4000 $ 8,153 $ 8,275 $ 8,399 $ 8,525 $ 8,653 $ 8,783 $ 8,915 $ 9,049 $ 9,184 $ 9,322 $ 9,462 $ 9,604 $ 9,748 $ 9,894
Local Total 29.5841 $ 99,684 $ 101,179 $ 102,697 $ 104,237 $ 105,801 $ 107,388 $ 108,998 $ 110,633 $ 112,293 $ 113,977 $ 115,687 $ 117,422 $ 119,184 $ 120,971
Non-Capturable Millages Millage Rate
Comm College Debt 0.3400 $ 1,155 $ 1,172 $ 1,190 $ 1,208 $ 1,226 $ 1,244 $ 1,263 $ 1,282 $ 1,301 $ 1,321 $ 1,340 $ 1,361 $ 1,381 $ 1,402
Hackley Debt 0.5611 $ 1,906 $ 1,935 $ 1,964 $ 1,993 $ 2,023 $ 2,053 $ 2,084 $ 2,115 $ 2,147 $ 2,179 $ 2,212 $ 2,245 $ 2,279 $ 2,313
MPS Debt - 1995 4.7000 $ 15,966 $ 16,206 $ 16,449 $ 16,695 $ 16,946 $ 17,200 $ 17,458 $ 17,720 $ 17,986 $ 18,256 $ 18,529 $ 18,807 $ 19,089 $ 19,376
MPS Debt - 2009 2.1000 $ 7,134 $ 7,241 $ 7,349 $ 7,460 $ 7,572 $ 7,685 $ 7,800 $ 7,917 $ 8,036 $ 8,157 $ 8,279 $ 8,403 $ 8,529 $ 8,657
Total Non-Capturable Taxes 7.7011 $ 26,161 $ 26,554 $ 26,952 $ 27,356 $ 27,766 $ 28,183 $ 28,606 $ 29,035 $ 29,470 $ 29,912 $ 30,361 $ 30,816 $ 31,279 $ 31,748
Total Tax Increment Revenue (TIR) Available for Capture $ 181,213 $ 183,931 $ 186,690 $ 189,491 $ 192,333 $ 195,218 $ 198,146 $ 201,118 $ 204,135 $ 207,197 $ 210,305 $ 213,460 $ 216,662 $ 219,912
Footnotes:
Ren Zone expired and first year of available capture was 2013.
Past capture shown through 2017 with inflation at 1.5% thereafter
April 2017
Tax Increment Revenue Capture Estimates
Former Muskegon Mall
Muskegon, Michigan
December 6, 2018
Estimated Taxable Value (TV) Increase Rate:
Plan Year 29 30 TOTAL
Calendar Year 2037 2038
Base Taxable Value $ - $ - $ -
Estimated New TV $ 4,184,349 $ 4,247,114 $ 4,247,114
Incremental Difference (New TV - Base TV) $ 4,184,349 $ 4,247,114 $ 4,247,114
School Capture Millage Rate
State Education Tax (SET) 6.0000 $ 25,106 $ 25,483 $ 544,552
School Operating Tax 18.0000 $ 75,318 $ 76,448 $ 1,615,407
School Total 24.0000 $ 100,424 $ 101,931 $ 2,159,959
Local Capture Millage Rate
City Operating 10.0869 $ 42,207 $ 42,840 $ 914,700
County Operating 5.6984 $ 23,844 $ 24,202 $ 517,180
City Sanitation 3.0000 $ 12,553 $ 12,741 $ 271,475
County Museum 0.3221 $ 1,348 $ 1,368 $ 29,234
Senior Services 0.4998 $ 2,091 $ 2,123 $ 41,714
County Veterans 0.0752 $ 315 $ 319 $ 6,824
County Qual Life 0.2400 $ - $ - $ 2,604
Central Dispatch 0.3000 $ 1,255 $ 1,274 $ 27,228
Comm College 2.2037 $ 9,221 $ 9,359 $ 200,005
MAISD 4.7580 $ 19,909 $ 20,208 $ 418,236
Hackley Library 2.4000 $ 10,042 $ 10,193 $ 217,820
Local Total 29.5841 $ 122,786 $ 124,628 $ 2,647,019
Non-Capturable Millages Millage Rate
Comm College Debt 0.3400 $ 1,423 $ 1,444 $ 30,315
Hackley Debt 0.5611 $ 2,348 $ 2,383 $ 48,181
MPS Debt - 1995 4.7000 $ 19,666 $ 19,961 $ 406,909
MPS Debt - 2009 2.1000 $ 8,787 $ 8,919 $ 181,811
Total Non-Capturable Taxes 7.7011 $ 32,224 $ 32,707 $ 667,216
Total Tax Increment Revenue (TIR) Available for Capture $ 223,210 $ 226,558 $ 4,806,978
Footnotes:
Ren Zone expired and first year of available capture was 2013.
Past capture shown through 2017 with inflation at 1.5% thereafter
April 2017
Tax Increment Revenue Capture Estimates
Sweetwater Development
Muskegon, Michigan
December 6, 2018
Estimated Taxable Value (TV) Increase Rate:
1.50% Commercial Rehab Abatement
Plan Year 1 2 3 4 5 6 7 8 9 10 11 12 13 14
Calendar Year 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031
Base Taxable Value $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Estimated New TV $ - $ 50,000 $ 1,724,098 $ 1,749,959 $ 1,776,209 $ 1,802,852 $ 1,829,895 $ 1,857,343 $ 1,885,203 $ 1,913,481 $ 1,942,184 $ 1,971,316 $ 2,000,886 $ 2,030,899
Incremental Difference (New TV - Base TV) $ - $ 50,000 $ 1,724,098 $ 1,749,959 $ 1,776,209 $ 1,802,852 $ 1,829,895 $ 1,857,343 $ 1,885,203 $ 1,913,481 $ 1,942,184 $ 1,971,316 $ 2,000,886 $ 2,030,899
School Capture Millage Rate
State Education Tax (SET) 6.0000 $ - $ - $ 10,345 $ 10,500 $ 10,657 $ 10,817 $ 10,979 $ 11,144 $ 11,311 $ 11,481 $ 11,653 $ 11,828 $ 12,005 $ 12,185
School Operating Tax 18.0000 $ - $ - $ 31,034 $ 31,499 $ 31,972 $ 32,451 $ 32,938 $ 33,432 $ 33,934 $ 34,443 $ 34,959 $ 35,484 $ 36,016 $ 36,556
School Total 24.0000 $ - $ - $ 41,378 $ 41,999 $ 42,629 $ 43,268 $ 43,917 $ 44,576 $ 45,245 $ 45,924 $ 46,612 $ 47,312 $ 48,021 $ 48,742
Local Capture Millage Rate
City Operating 10.0869 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 20,183 $ 20,485
County Operating 5.6984 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 11,402 $ 11,573
City Sanitation 3.0000 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 6,003 $ 6,093
County Museum 0.3221 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 644 $ 654
Senior Services 0.4998 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 1,000 $ 1,015
County Veterans 0.0752 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 150 $ 153
County Qual Life 0.2400 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 480 $ 487
Central Dispatch 0.3000 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 600 $ 609
Comm College 2.2037 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 4,409 $ 4,475
MAISD 4.7580 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 9,520 $ 9,663
Hackley Library 2.4000 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 4,802 $ 4,874
Local Total 29.5841 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 59,194 $ 60,082
Non-Capturable Millages Millage Rate
Comm College Debt 0.3400 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 680 $ 691
Hackley Debt 0.5611 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 1,123 $ 1,140
MPS Debt - 1995 4.7000 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 9,404 $ 9,545
MPS Debt - 2009 2.1000 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 4,202 $ 4,265
Total Non-Capturable Taxes 7.7011 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 15,409 $ 15,640
Total Tax Increment Revenue (TIR) Available for Capture $ - $ - $ 41,378 $ 41,999 $ 42,629 $ 43,268 $ 43,917 $ 44,576 $ 45,245 $ 45,924 $ 46,612 $ 47,312 $ 107,216 $ 108,824
Footnotes:
Sweetwater Property only with projected TV and 1.5% inflation thereafter
Assumes millage rates remain the same
Assumes 10yr Commercial Rehab Act abatement on the new building.
April 2017
Tax Increment Revenue Capture Estimates
Sweetwater Development
Muskegon, Michigan
December 6, 2018
Estimated Taxable Value (TV) Increase Rate:
Plan Year 15 16 17 18 19 20 21 TOTAL
Calendar Year 2032 2033 2034 2035 2036 2037 2038
Base Taxable Value $ - $ - $ - $ - $ - $ - $ - $ -
Estimated New TV $ 2,061,363 $ 2,092,283 $ 2,123,668 $ 2,155,523 $ 2,187,855 $ 2,220,673 $ 2,253,983 $ 2,253,983
Incremental Difference (New TV - Base TV) $ 2,061,363 $ 2,092,283 $ 2,123,668 $ 2,155,523 $ 2,187,855 $ 2,220,673 $ 2,253,983 $ 2,253,983
School Capture Millage Rate
State Education Tax (SET) 6.0000 $ 12,368 $ 12,554 $ 12,742 $ 12,933 $ 13,127 $ 13,324 $ 13,524 $ 225,478
School Operating Tax 18.0000 $ 37,105 $ 37,661 $ 38,226 $ 38,799 $ 39,381 $ 39,972 $ 40,572 $ 676,434
School Total 24.0000 $ 49,473 $ 50,215 $ 50,968 $ 51,733 $ 52,509 $ 53,296 $ 54,096 $ 901,912
Local Capture Millage Rate
City Operating 10.0869 $ 20,793 $ 21,105 $ 21,421 $ 21,743 $ 22,069 $ 22,400 $ 22,736 $ 192,933
County Operating 5.6984 $ 11,746 $ 11,923 $ 12,102 $ 12,283 $ 12,467 $ 12,654 $ 12,844 $ 108,994
City Sanitation 3.0000 $ 6,184 $ 6,277 $ 6,371 $ 6,467 $ 6,564 $ 6,662 $ 6,762 $ 57,381
County Museum 0.3221 $ 664 $ 674 $ 684 $ 694 $ 705 $ 715 $ 726 $ 6,161
Senior Services 0.4998 $ 1,030 $ 1,046 $ 1,061 $ 1,077 $ 1,093 $ 1,110 $ 1,127 $ 9,560
County Veterans 0.0752 $ 155 $ 157 $ 160 $ 162 $ 165 $ 167 $ 169 $ 1,438
County Qual Life 0.2400 $ 495 $ 502 $ 510 $ 517 $ 525 $ 533 $ 541 $ 4,591
Central Dispatch 0.3000 $ 618 $ 628 $ 637 $ 647 $ 656 $ 666 $ 676 $ 5,738
Comm College 2.2037 $ 4,543 $ 4,611 $ 4,680 $ 4,750 $ 4,821 $ 4,894 $ 4,967 $ 42,150
MAISD 4.7580 $ 9,808 $ 9,955 $ 10,104 $ 10,256 $ 10,410 $ 10,566 $ 10,724 $ 91,007
Hackley Library 2.4000 $ 4,947 $ 5,021 $ 5,097 $ 5,173 $ 5,251 $ 5,330 $ 5,410 $ 45,905
Local Total 29.5841 $ 60,984 $ 61,898 $ 62,827 $ 63,769 $ 64,726 $ 65,697 $ 66,682 $ 565,859
Non-Capturable Millages Millage Rate
Comm College Debt 0.3400 $ 701 $ 711 $ 722 $ 733 $ 744 $ 755 $ 766 $ 6,503
Hackley Debt 0.5611 $ 1,157 $ 1,174 $ 1,192 $ 1,209 $ 1,228 $ 1,246 $ 1,265 $ 10,732
MPS Debt - 1995 4.7000 $ 9,688 $ 9,834 $ 9,981 $ 10,131 $ 10,283 $ 10,437 $ 10,594 $ 89,898
MPS Debt - 2009 2.1000 $ 4,329 $ 4,394 $ 4,460 $ 4,527 $ 4,594 $ 4,663 $ 4,733 $ 40,167
Total Non-Capturable Taxes 7.7011 $ 15,875 $ 16,113 $ 16,355 $ 16,600 $ 16,849 $ 17,102 $ 17,358 $ 147,300
Total Tax Increment Revenue (TIR) Available for Capture $ 110,456 $ 112,113 $ 113,795 $ 115,502 $ 117,234 $ 118,993 $ 120,778 $ 1,467,771
Footnotes:
Sweetwater Property only with projected TV and 1.5% inflation thereafter
Assumes millage rates remain the same
Assumes 10yr Commercial Rehab Act abatement on the new building.
April 2017
Tax Increment Financing Reimbursement Table
Muskegon Mall Project
Muskegon, Michigan
December 6, 2018
Developer
Maximum School & Local Local-Only
Reimbursement Proportionality Taxes Taxes Total Estimated Capture
State 52.2% $ 2,434,600 $ 2,434,600 Estimated Total Administrative Fees
Local 47.8% $ 2,231,028 $ 2,231,028 Years of Plan: 35 State Revolving Fund
TOTAL $ 4,665,628 LSRRF
MDEQ $ 123,000 0 $ 123,000
MSF $ 2,879,950 $ - $ 2,879,950
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Total State Incremental Revenue $ - $ - $ - $ - $ 36,009 $ 58,507 $ 70,044 $ 71,951 $ 71,505 $ 75,681 $ 76,816 $ 119,346
State Brownfield Revolving Fund (50% of SET) $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
State TIR Available for Reimbursement $ - $ - $ - $ - $ 36,009 $ 58,507 $ 70,044 $ 71,951 $ 71,505 $ 75,681 $ 76,816 $ 119,346
Total Local Incremental Revenue $ - $ - $ - $ - $ 43,913 $ 72,795 $ 87,560 $ 90,366 $ 88,069 $ 92,532 $ 93,920 $ 95,329
BRA Administrative Fee $ - $ - $ - $ - $ (10,000) $ (10,000) $ (10,000) $ (10,000) $ (10,000) $ (10,000) $ (10,000) $ (10,000)
Local TIR Available for Reimbursement $ - $ - $ - $ - $ 33,913 $ 62,795 $ 77,560 $ 80,366 $ 78,069 $ 82,532 $ 83,920 $ 85,329
Total State & Local TIR Available $ - $ - $ - $ - $ 69,922 $ 121,302 $ 147,604 $ 152,317 $ 149,574 $ 158,213 $ 160,736 $ 204,676
Beginning
DEVELOPER Balance
DEVELOPER Reimbursement Balance $ 3,002,950 $ 3,002,950 $ 3,002,950 $ 3,092,950 $ 3,187,450 $ 3,286,675 $ 3,317,695 $ 3,296,753 $ 3,247,679 $ 3,191,751 $ 3,136,445 $ 3,069,872 $ 2,997,900
MSF Non-Environmental Costs - City $ 1,800,000 $ 1,800,000 $ 1,800,000 $ 1,890,000 $ 1,984,500 $ 2,083,725 $ 2,119,779 $ 2,107,572 $ 2,069,125 $ 2,024,163 $ 1,979,627 $ 1,924,445 $ 1,864,046
State Tax Reimbursement $ - $ - $ - $ - $ 33,416 $ 54,294 $ 65,001 $ 66,771 $ 66,357 $ 70,232 $ 71,285 $ 72,354
Local Tax Reimbursement $ - $ - $ - $ - $ 31,471 $ 58,274 $ 71,976 $ 74,580 $ 72,448 $ 76,590 $ 77,878 $ 79,185
Total MSF Reimbursement Balance $ 1,800,000 $ 1,800,000 $ 1,890,000 $ 1,984,500 $ 2,018,837 $ 2,007,211 $ 1,970,595 $ 1,927,775 $ 1,885,359 $ 1,832,805 $ 1,775,282 $ 1,712,506
Interest (5%) $ 90,000 $ 94,500 $ 99,225 $ 100,942 $ 100,361 $ 98,530 $ 96,389 $ 94,268 $ 91,640 $ 88,764 $ 85,625
MSF Non-Environmental Costs - Sweetwater $ 1,079,950 $ 1,079,950 $ 1,079,950 $ 1,079,950 $ 1,079,950 $ 1,079,950 $ 1,079,950 $ 1,079,950 $ 1,079,950 $ 1,079,950 $ 1,079,950 $ 1,079,950 $ 1,079,950
State Tax Reimbursement $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 40,509
Local Tax Reimbursement $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Total MSF Reimbursement Balance $ 1,079,950 $ 1,079,950 $ 1,079,950 $ 1,079,950 $ 1,079,950 $ 1,079,950 $ 1,079,950 $ 1,079,950 $ 1,079,950 $ 1,079,950 $ 1,079,950 $ 1,039,441
MDEQ Environmental Costs - City $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 94,966 $ 86,232 $ 75,604 $ 64,638 $ 53,868 $ 42,477 $ 30,904
State Tax Reimbursement $ 0.02 $ - $ - $ - $ - $ 2,593 $ 4,213 $ 5,043 $ 5,180 $ 5,148 $ 5,449 $ 5,531 $ 5,614
Local Tax Reimbursement $ - $ - $ - $ - $ 2,442 $ 4,521 $ 5,584 $ 5,786 $ 5,621 $ 5,942 $ 6,042 $ 6,144
Total MDEQ Reimbursement Balance $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 94,966 $ 86,232 $ 75,604 $ 64,638 $ 53,868 $ 42,477 $ 30,904 $ 19,146
MDEQ Environmental Costs - Sweetwater $ 23,000 $ 23,000 $ 23,000 $ 23,000 $ 23,000 $ 23,000 $ 23,000 $ 23,000 $ 23,000 $ 23,000 $ 23,000 $ 23,000 $ 23,000
State Tax Reimbursement $ 0.02 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 869
Local Tax Reimbursement $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Total MDEQ Reimbursement Balance $ 23,000 $ 23,000 $ 23,000 $ 23,000 $ 23,000 $ 23,000 $ 23,000 $ 23,000 $ 23,000 $ 23,000 $ 23,000 $ 22,131
Local Only Costs $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Local Tax Reimbursement $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Total Local Only Reimbursement Balance $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Total Annual Developer Reimbursement $ - $ - $ - $ - $ 69,922 $ 121,302 $ 147,604 $ 152,317 $ 149,574 $ 158,213 $ 160,736 $ 204,676
LOCAL SITE REMEDIATION FUND
LSRRF Deposits * $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
State Tax Capture $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Local Tax Capture $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Total LSRRF Capture
* Up to five years of capture for LSRRF Deposits after eligible activities are reimbursed. May be taken from DEQ & Local TIR only.
Footnotes:
(1) Assumes taxable value increases based on proposed build out, plus 1.5% annual increases for
inflation thereafter.
(2) Assumes Millage Rates remain constant.
(3) 10yr Commercial Rehab Act Abatement
Assumes Reimbursement on Mall and Sweetwater are separate from one another
April 2017
Tax Increment Financing Reimbursement Table
Muskegon Mall Project
Muskegon, Michigan
December 6, 2018
$ 6,274,749
$ 260,000
$ -
$ 704,080
Commercial Rehab Abatement - Sweetwater Development
2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038
Total State Incremental Revenue $ 121,137 $ 122,954 $ 124,798 $ 126,670 $ 128,570 $ 130,498 $ 132,456 $ 134,443 $ 136,459 $ 138,506 $ 140,584 $ 142,693 $ 144,833 $ 147,006 $ 149,211 $ 151,449 $ 153,721 $ 156,026
State Brownfield Revolving Fund (50% of SET) $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
State TIR Available for Reimbursement $ 121,137 $ 122,954 $ 124,798 $ 126,670 $ 128,570 $ 130,498 $ 132,456 $ 134,443 $ 136,459 $ 138,506 $ 140,584 $ 142,693 $ 144,833 $ 147,006 $ 149,211 $ 151,449 $ 153,721 $ 156,026
Total Local Incremental Revenue $ 96,759 $ 98,211 $ 99,684 $ 101,179 $ 102,697 $ 104,237 $ 105,801 $ 107,388 $ 108,998 $ 169,828 $ 172,375 $ 174,961 $ 177,585 $ 180,249 $ 182,953 $ 185,697 $ 188,483 $ 191,310
BRA Administrative Fee $ (10,000) $ (10,000) $ (10,000) $ (10,000) $ (10,000) $ (10,000) $ (10,000) $ (10,000) $ (10,000) $ (10,000) $ (10,000) $ (10,000) $ (10,000) $ (10,000) $ (10,000) $ (10,000) $ (10,000) $ (10,000)
Local TIR Available for Reimbursement $ 86,759 $ 88,211 $ 89,684 $ 91,179 $ 92,697 $ 94,237 $ 95,801 $ 97,388 $ 98,998 $ 159,828 $ 162,375 $ 164,961 $ 167,585 $ 170,249 $ 172,953 $ 175,697 $ 178,483 $ 181,310
Total State & Local TIR Available $ 207,896 $ 211,164 $ 214,482 $ 217,849 $ 221,267 $ 224,736 $ 228,257 $ 231,830 $ 235,458 $ 298,334 $ 302,959 $ 307,654 $ 312,418 $ 317,255 $ 322,163 $ 327,146 $ 332,203 $ 337,336
DEVELOPER
DEVELOPER Reimbursement Balance $ 2,878,850 $ 2,753,163 $ 2,620,252 $ 2,479,375 $ 2,330,115 $ 2,172,031 $ 2,004,664 $ 1,827,527 $ 1,640,111 $ 1,441,882 $ 1,173,081 $ 891,426 $ 596,281 $ 286,982 $ 107,685 $ - $ - $ -
MSF Non-Environmental Costs - City $ 1,798,132 $ 1,726,389 $ 1,643,308 $ 1,545,700 $ 1,440,357 $ 1,326,850 $ 1,204,727 $ 1,073,514 $ 932,711 $ 781,793 $ 620,208 $ 447,376 $ 262,688 $ 65,502 $ - $ - $ - $ -
State Tax Reimbursement $ 73,440 $ 76,889 $ 81,529 $ 82,752 $ 83,994 $ 85,254 $ 86,532 $ 87,830 $ 89,148 $ 90,485 $ 91,842 $ 93,220 $ 94,618 $ 30,941 $ - $ - $ - $ -
Local Tax Reimbursement $ 80,512 $ 84,444 $ 89,684 $ 91,179 $ 92,697 $ 94,237 $ 95,801 $ 97,388 $ 98,998 $ 100,633 $ 102,293 $ 103,977 $ 105,687 $ 34,561 $ - $ - $ -
Total MSF Reimbursement Balance $ 1,644,180 $ 1,565,055 $ 1,472,095 $ 1,371,769 $ 1,263,667 $ 1,147,359 $ 1,022,394 $ 888,296 $ 744,565 $ 590,674 $ 426,073 $ 250,179 $ 62,383 $ - $ - $ - $ - $ -
Interest (5%) $ 82,209 $ 78,253 $ 73,605 $ 68,588 $ 63,183 $ 57,368 $ 51,120 $ 44,415 $ 37,228 $ 29,534 $ 21,304 $ 12,509 $ 3,119 $ - $ - $ - $ - $ -
MSF Non-Environmental Costs - Sweetwater $ 1,039,441 $ 998,324 $ 956,590 $ 914,230 $ 871,235 $ 827,595 $ 783,300 $ 738,341 $ 692,707 $ 646,389 $ 541,425 $ 434,886 $ 326,750 $ 216,991 $ 105,586 $ - $ - $ -
State Tax Reimbursement $ 41,117 $ 41,734 $ 42,360 $ 42,995 $ 43,640 $ 44,295 $ 44,959 $ 45,634 $ 46,318 $ 47,013 $ 47,718 $ 48,434 $ 49,160 $ 49,898 $ 47,291 $ - $ - $ -
Local Tax Reimbursement $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 57,951 $ 58,821 $ 59,703 $ 60,598 $ 61,507 $ 58,295 $ - $ -
Total MSF Reimbursement Balance $ 998,324 $ 956,590 $ 914,230 $ 871,235 $ 827,595 $ 783,300 $ 738,341 $ 692,707 $ 646,389 $ 541,425 $ 434,886 $ 326,750 $ 216,991 $ 105,586 $ - $ - $ - $ -
MDEQ Environmental Costs - City $ 19,146 $ 7,202 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
State Tax Reimbursement $ 5,698 $ 3,436 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Local Tax Reimbursement $ 6,247 $ 3,766 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Total MDEQ Reimbursement Balance $ 7,202 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
MDEQ Environmental Costs - Sweetwater $ 22,131 $ 21,249 $ 20,354 $ 19,445 $ 18,523 $ 17,587 $ 16,637 $ 15,672 $ 14,693 $ 13,700 $ 11,448 $ 9,163 $ 6,844 $ 4,489 $ 2,099 $ - $ - $ -
State Tax Reimbursement $ 882 $ 895 $ 909 $ 922 $ 936 $ 950 $ 964 $ 979 $ 994 $ 1,008 $ 1,024 $ 1,039 $ 1,055 $ 1,070 $ 940 $ - $ - $ -
Local Tax Reimbursement $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 1,243 $ 1,262 $ 1,281 $ 1,300 $ 1,319 $ 1,159 $ - $ - $ -
Total MDEQ Reimbursement Balance $ 21,249 $ 20,354 $ 19,445 $ 18,523 $ 17,587 $ 16,637 $ 15,672 $ 14,693 $ 13,700 $ 11,448 $ 9,163 $ 6,844 $ 4,489 $ 2,099 $ - $ - $ - $ -
Local Only Costs $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Local Tax Reimbursement $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Total Local Only Reimbursement Balance $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Total Annual Developer Reimbursement $ 207,896 $ 211,164 $ 214,482 $ 217,849 $ 221,267 $ 224,736 $ 228,257 $ 231,830 $ 235,458 $ 298,334 $ 302,959 $ 307,654 $ 312,418 $ 179,297 $ 107,685 $ - $ - $ -
LOCAL SITE REMEDIATION FUND
LSRRF Deposits * $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 168,590 $ 175,697 $ 178,483 $ 181,310
State Tax Capture $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 55,091 $ - $ - $ -
Local Tax Capture $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 113,499 $ 175,697 $ 178,483 $ 181,310
Total LSRRF Capture
* Up to five years of capture for LSRRF Deposi
Footnotes:
(1) Assumes taxable value increases based
inflation thereafter.
(2) Assumes Millage Rates remain constan
(3) 10yr Commercial Rehab Act Abatemen
Assumes Reimbursement on Mall and Sweetwa
April 2017
Tax Increment Financing Reimbursement Table
Muskegon Mall Project
Muskegon, Michigan
December 6, 2018
TOTAL
Total State Incremental Revenue $ 3,061,871
State Brownfield Revolving Fund (50% of SET) $ -
State TIR Available for Reimbursement $ 3,061,871
Total Local Incremental Revenue $ 3,212,878
BRA Administrative Fee $ (260,000)
Local TIR Available for Reimbursement $ 2,952,878
Total State & Local TIR Available $ -
DEVELOPER
DEVELOPER Reimbursement Balance
MSF Non-Environmental Costs - City $ -
State Tax Reimbursement $ 1,648,185
Local Tax Reimbursement $ 1,814,493
Total MSF Reimbursement Balance $ -
Interest (5%)
MSF Non-Environmental Costs - Sweetwater $ -
State Tax Reimbursement $ 723,075
Local Tax Reimbursement $ 356,875
Total MSF Reimbursement Balance $ -
MDEQ Environmental Costs - City $ -
State Tax Reimbursement $ 47,904
Local Tax Reimbursement $ 52,096
Total MDEQ Reimbursement Balance $ -
MDEQ Environmental Costs - Sweetwater $ -
State Tax Reimbursement $ 15,436
Local Tax Reimbursement $ 7,564
Total MDEQ Reimbursement Balance $ -
Local Only Costs $ -
Local Tax Reimbursement $ -
Total Local Only Reimbursement Balance $ -
Total Annual Developer Reimbursement $ -
LOCAL SITE REMEDIATION FUND
LSRRF Deposits * $ 704,080
State Tax Capture $ 55,091
Local Tax Capture $ 648,989
Total LSRRF Capture
* Up to five years of capture for LSRRF Deposi
Footnotes:
(1) Assumes taxable value increases based
inflation thereafter.
(2) Assumes Millage Rates remain constan
(3) 10yr Commercial Rehab Act Abatemen
Assumes Reimbursement on Mall and Sweetwa
April 2017
Date: April 23, 2019
To: Honorable Mayor and City Commissioners
From: DPW
RE: Permanent Traffic Control Orders-#37 thru #52
SUMMARY OF REQUEST:
Authorize the attached various Traffic Control Orders #37 thru #52.
FINANCIAL IMPACT:
None
BUDGET ACTION REQUIRED:
None
STAFF RECOMMENDATION:
Authorize the various Traffic Control Orders in the attachment.
COMMITTEE RECOMMENDATION:
City of Muskegon
Traffic Control Order
No. 37-(2018)
The following regulatory sign(s) shall be Installed/Removed at/from the location(s) specified
below under location in accordance with the Michigan Manual of Uniform Traffic Control.
Device/Regulatory Sign(s) to be Installed/Removed: Install “2-Hour Parking” signs on
Lakeshore Drive (south side of road) between Blodgett Street and Estes Street.
Location: Lakeshore Drive (south side of road) between Blodgett Street and Estes Street.
Recommendation:
________________________________ Date: ______/______/______
Director of Public Works
________________________________ Date: ______/______/______
Police Chief
________________________________ Date: ______/______/______
City Manager
Commission Approval (required for Permanent TCO only):
______ __________ Date: _____/_____/___ __
Commission Action #
Installation/removal
Date assigned: _____/_____/_____ By: ___________________________
Traffic Supervisor
Date completed: _____/_____/_____ By: ___________________________
Traffic Department Employee
Temporary; does not require Commission Action, good for 90-days from
Installation/Removal Date.
Permanent; requires Commission Action
City of Muskegon
Traffic Control Order
No. 38-(2019)
The following regulatory sign(s) shall be Installed/Removed at/from the location(s) specified
below under location in accordance with the Michigan Manual of Uniform Traffic Control.
Device/Regulatory Sign(s) to be Installed/Removed: Install “Electric Vehicle Charging Only”
parking sign at 889 1st Street between Western Avenue and Clay Avenue.
Location: 889 1st Street, between Western Avenue and Clay Avenue.
Recommendation:
________________________________ Date: ______/______/______
Director of Public Works
________________________________ Date: ______/______/______
Police Chief
________________________________ Date: ______/______/______
City Manager
Commission Approval (required for Permanent TCO only):
______ __________ Date: _____/_____/___ __
Commission Action #
Installation/removal
Date assigned: _____/_____/_____ By: ___________________________
Traffic Supervisor
Date completed: _____/_____/_____ By: ___________________________
Traffic Department Employee
Temporary; does not require Commission Action, good for 90-days from
Installation/Removal Date.
Permanent; requires Commission Action
City of Muskegon
Traffic Control Order
No. 39-(2019)
The following regulatory sign(s) shall be Installed/Removed at/from the location(s) specified
below under location in accordance with the Michigan Manual of Uniform Traffic Control.
Device/Regulatory Sign(s) to be Installed/Removed: Install “No Parking” parking symbol
signs on Remembrance Drive between Keating Avenue, south to dead end of roadway.
Location: Remembrance Drive, between Keating Avenue, south to dead end of roadway.
Recommendation:
________________________________ Date: ______/______/______
Director of Public Works
________________________________ Date: ______/______/______
Police Chief
________________________________ Date: ______/______/______
City Manager
Commission Approval (required for Permanent TCO only):
______ __________ Date: _____/_____/___ __
Commission Action #
Installation/removal
Date assigned: _____/_____/_____ By: ___________________________
Traffic Supervisor
Date completed: _____/_____/_____ By: ___________________________
Traffic Department Employee
Temporary; does not require Commission Action, good for 90-days from
Installation/Removal Date.
Permanent; requires Commission Action
City of Muskegon
Traffic Control Order
No. 40-(2019)
The following regulatory sign(s) shall be Installed/Removed at/from the location(s) specified
below under location in accordance with the Michigan Manual of Uniform Traffic Control.
Device/Regulatory Sign(s) to be Installed/Removed: Install “Yield” signs on Harding Avenue
at Leboeuf Street
Location: Harding Avenue at Leboeuf Street
Recommendation:
________________________________ Date: ______/______/______
Director of Public Works
________________________________ Date: ______/______/______
Police Chief
________________________________ Date: ______/______/______
City Manager
Commission Approval (required for Permanent TCO only):
______ __________ Date: _____/_____/___ __
Commission Action #
Installation/removal
Date assigned: _____/_____/_____ By: ___________________________
Traffic Supervisor
Date completed: _____/_____/_____ By: ___________________________
Traffic Department Employee
Temporary; does not require Commission Action, good for 90-days from
Installation/Removal Date.
Permanent; requires Commission Action
City of Muskegon
Traffic Control Order
No. 41-(2019)
The following regulatory sign(s) shall be Installed/Removed at/from the location(s) specified
below under location in accordance with the Michigan Manual of Uniform Traffic Control.
Device/Regulatory Sign(s) to be Installed/Removed: Install a “25-MPH Hour” sign on the
West side of Southbound Webster Avenue between 8th Street and 9th Street.
Location: Southbound Webster Avenue, between 8th Street and 9th Street.
Recommendation:
________________________________ Date: ______/______/______
Director of Public Works
________________________________ Date: ______/______/______
Police Chief
________________________________ Date: ______/______/______
City Manager
Commission Approval (required for Permanent TCO only):
______ __________ Date: _____/_____/___ __
Commission Action #
Installation/removal
Date assigned: _____/_____/_____ By: ___________________________
Traffic Supervisor
Date completed: _____/_____/_____ By: ___________________________
Traffic Department Employee
Temporary; does not require Commission Action, good for 90-days from
Installation/Removal Date.
Permanent; requires Commission Action
City of Muskegon
Traffic Control Order
No. 42-(2019)
The following regulatory sign(s) shall be Installed/Removed at/from the location(s) specified
below under location in accordance with the Michigan Manual of Uniform Traffic Control.
Device/Regulatory Sign(s) to be Installed/Removed: Install “Yield” signs on Merrill Avenue
at 6th Street.
Location: Merrill Avenue at 6th Street.
Recommendation:
________________________________ Date: ______/______/______
Director of Public Works
________________________________ Date: ______/______/______
Police Chief
________________________________ Date: ______/______/______
City Manager
Commission Approval (required for Permanent TCO only):
______ __________ Date: _____/_____/___ __
Commission Action #
Installation/removal
Date assigned: _____/_____/_____ By: ___________________________
Traffic Supervisor
Date completed: _____/_____/_____ By: ___________________________
Traffic Department Employee
Temporary; does not require Commission Action, good for 90-days from
Installation/Removal Date.
Permanent; requires Commission Action
City of Muskegon
Traffic Control Order
No. 43-(2019)
The following regulatory sign(s) shall be Installed/Removed at/from the location(s) specified
below under location in accordance with the Michigan Manual of Uniform Traffic Control.
Device/Regulatory Sign(s) to be Installed/Removed: Install “Yield” signs on Washington
Avenue at 6th Street.
Location: Washington Avenue at 6th Street.
Recommendation:
________________________________ Date: ______/______/______
Director of Public Works
________________________________ Date: ______/______/______
Police Chief
________________________________ Date: ______/______/______
City Manager
Commission Approval (required for Permanent TCO only):
______ __________ Date: _____/_____/___ __
Commission Action #
Installation/removal
Date assigned: _____/_____/_____ By: ___________________________
Traffic Supervisor
Date completed: _____/_____/_____ By: ___________________________
Traffic Department Employee
Temporary; does not require Commission Action, good for 90-days from
Installation/Removal Date.
Permanent; requires Commission Action
City of Muskegon
Traffic Control Order
No. 44-(2019)
The following regulatory sign(s) shall be Installed/Removed at/from the location(s) specified
below under location in accordance with the Michigan Manual of Uniform Traffic Control.
Device/Regulatory Sign(s) to be Installed/Removed: Install a “Stop” sign on Strong Avenue at
6th Street and a “Stop Ahead” sign on Strong prior to 6th Street.
Location: Strong Avenue at and before 6th Street.
Recommendation:
________________________________ Date: ______/______/______
Director of Public Works
________________________________ Date: ______/______/______
Police Chief
________________________________ Date: ______/______/______
City Manager
Commission Approval (required for Permanent TCO only):
______ __________ Date: _____/_____/___ __
Commission Action #
Installation/removal
Date assigned: _____/_____/_____ By: ___________________________
Traffic Supervisor
Date completed: _____/_____/_____ By: ___________________________
Traffic Department Employee
Temporary; does not require Commission Action, good for 90-days from
Installation/Removal Date.
Permanent; requires Commission Action
City of Muskegon
Traffic Control Order
No. 45-(2019)
The following regulatory sign(s) shall be Installed/Removed at/from the location(s) specified
below under location in accordance with the Michigan Manual of Uniform Traffic Control.
Device/Regulatory Sign(s) to be Installed/Removed: Install “Yield” sign on Washington
Avenue at 7th Street.
Location: Washington Avenue at 7th Street.
Recommendation:
________________________________ Date: ______/______/______
Director of Public Works
________________________________ Date: ______/______/______
Police Chief
________________________________ Date: ______/______/______
City Manager
Commission Approval (required for Permanent TCO only):
______ __________ Date: _____/_____/___ __
Commission Action #
Installation/removal
Date assigned: _____/_____/_____ By: ___________________________
Traffic Supervisor
Date completed: _____/_____/_____ By: ___________________________
Traffic Department Employee
Temporary; does not require Commission Action, good for 90-days from
Installation/Removal Date.
Permanent; requires Commission Action
City of Muskegon
Traffic Control Order
No. 46-(2019)
The following regulatory sign(s) shall be Installed/Removed at/from the location(s) specified
below under location in accordance with the Michigan Manual of Uniform Traffic Control.
Device/Regulatory Sign(s) to be Installed/Removed: Install a “Yield” sign on Mason Avenue
at 7th Street.
Location: Mason Avenue at 7th Street.
Recommendation:
________________________________ Date: ______/______/______
Director of Public Works
________________________________ Date: ______/______/______
Police Chief
________________________________ Date: ______/______/______
City Manager
Commission Approval (required for Permanent TCO only):
______ __________ Date: _____/_____/___ __
Commission Action #
Installation/removal
Date assigned: _____/_____/_____ By: ___________________________
Traffic Supervisor
Date completed: _____/_____/_____ By: ___________________________
Traffic Department Employee
Temporary; does not require Commission Action, good for 90-days from
Installation/Removal Date.
Permanent; requires Commission Action
City of Muskegon
Traffic Control Order
No. 47-(2019)
The following regulatory sign(s) shall be Installed/Removed at/from the location(s) specified
below under location in accordance with the Michigan Manual of Uniform Traffic Control.
Device/Regulatory Sign(s) to be Installed/Removed: Remove a “Yield” sign on 5th Street and
Campus Avenue and install a “Stop” sign on 5th Street at Campus Avenues and a “Stop Ahead”
sign on Campus Avenue between 4th Street and 5th Street.
Location: Mason Avenue at 5th Street and Campus Avenue.
Recommendation:
________________________________ Date: ______/______/______
Director of Public Works
________________________________ Date: ______/______/______
Police Chief
________________________________ Date: ______/______/______
City Manager
Commission Approval (required for Permanent TCO only):
______ __________ Date: _____/_____/___ __
Commission Action #
Installation/removal
Date assigned: _____/_____/_____ By: ___________________________
Traffic Supervisor
Date completed: _____/_____/_____ By: ___________________________
Traffic Department Employee
Temporary; does not require Commission Action, good for 90-days from
Installation/Removal Date.
Permanent; requires Commission Action
City of Muskegon
Traffic Control Order
No. 48-(2019)
The following regulatory sign(s) shall be Installed/Removed at/from the location(s) specified
below under location in accordance with the Michigan Manual of Uniform Traffic Control.
Device/Regulatory Sign(s) to be Installed/Removed: Install a “No Loitering/No Littering“sign
per City Ordinance at 2250 Valley Street.
Location: 2250 Valley Street.
Recommendation:
________________________________ Date: ______/______/______
Director of Public Works
________________________________ Date: ______/______/______
Police Chief
________________________________ Date: ______/______/______
City Manager
Commission Approval (required for Permanent TCO only):
______ __________ Date: _____/_____/___ __
Commission Action #
Installation/removal
Date assigned: _____/_____/_____ By: ___________________________
Traffic Supervisor
Date completed: _____/_____/_____ By: ___________________________
Traffic Department Employee
Temporary; does not require Commission Action, good for 90-days from
Installation/Removal Date.
Permanent; requires Commission Action
City of Muskegon
Traffic Control Order
No. 49-(2019)
The following regulatory sign(s) shall be Installed/Removed at/from the location(s) specified
below under location in accordance with the Michigan Manual of Uniform Traffic Control.
Device/Regulatory Sign(s) to be Installed/Removed: Install a “Stop Here on Red” sign at the
Southeast corner of Sherman Avenue and Lincoln Street.
Location: Sherman Avenue and Lincoln Street.
Recommendation:
________________________________ Date: ______/______/______
Director of Public Works
________________________________ Date: ______/______/______
Police Chief
________________________________ Date: ______/______/______
City Manager
Commission Approval (required for Permanent TCO only):
______ __________ Date: _____/_____/___ __
Commission Action #
Installation/removal
Date assigned: _____/_____/_____ By: ___________________________
Traffic Supervisor
Date completed: _____/_____/_____ By: ___________________________
Traffic Department Employee
Temporary; does not require Commission Action, good for 90-days from
Installation/Removal Date.
Permanent; requires Commission Action
City of Muskegon
Traffic Control Order
No. 50-(2019)
The following regulatory sign(s) shall be Installed/Removed at/from the location(s) specified
below under location in accordance with the Michigan Manual of Uniform Traffic Control.
Device/Regulatory Sign(s) to be Installed/Removed: Install “No Parking-Student Drop Off,
On School Days” signs on the southern side of Catherine Avenue and Install “No Parking M-F
8am-4pm-On School Days” on the northern side of Catherine Avenue between Arthur Street and
Ransom Street..
Location: Catherine Avenue between Arthur Street and Ransom Street.
Recommendation:
________________________________ Date: ______/______/______
Director of Public Works
________________________________ Date: ______/______/______
Police Chief
________________________________ Date: ______/______/______
City Manager
Commission Approval (required for Permanent TCO only):
______ __________ Date: _____/_____/___ __
Commission Action #
Installation/removal
Date assigned: _____/_____/_____ By: ___________________________
Traffic Supervisor
Date completed: _____/_____/_____ By: ___________________________
Traffic Department Employee
Temporary; does not require Commission Action, good for 90-days from
Installation/Removal Date.
Permanent; requires Commission Action
City of Muskegon
Traffic Control Order
No. 51-(2019)
The following regulatory sign(s) shall be Installed/Removed at/from the location(s) specified
below under location in accordance with the Michigan Manual of Uniform Traffic Control.
Device/Regulatory Sign(s) to be Installed/Removed: Install “3-Way Stop Signs” on Sun
Dolphin Road @ Harris Drive.
Location: Sun Dolphin Rd. and Harris Dr.
Recommendation:
________________________________ Date: ______/______/______
Director of Public Works
________________________________ Date: ______/______/______
Police Chief
________________________________ Date: ______/______/______
City Manager
Commission Approval (required for Permanent TCO only):
______ __________ Date: _____/_____/___ __
Commission Action #
Installation/removal
Date assigned: _____/_____/_____ By: ___________________________
Traffic Supervisor
Date completed: _____/_____/_____ By: ___________________________
Traffic Department Employee
Temporary; does not require Commission Action, good for 90-days from
Installation/Removal Date.
Permanent; requires Commission Action
City of Muskegon
Traffic Control Order
No. 52-(2019)
The following regulatory sign(s) shall be Installed/Removed at/from the location(s) specified
below under location in accordance with the Michigan Manual of Uniform Traffic Control.
Device/Regulatory Sign(s) to be Installed/Removed: Install “Handicapped Parking” signs at
various locations per attached spreadsheet.
Location: Various locations per spreadsheet
Recommendation:
________________________________ Date: ______/______/______
Director of Public Works
________________________________ Date: ______/______/______
Police Chief
________________________________ Date: ______/______/______
City Manager
Commission Approval (required for Permanent TCO only):
______ __________ Date: _____/_____/___ __
Commission Action #
Installation/removal
Date assigned: _____/_____/_____ By: ___________________________
Traffic Supervisor
Date completed: _____/_____/_____ By: ___________________________
Traffic Department Employee
Temporary; does not require Commission Action, good for 90-days from
Installation/Removal Date.
Permanent; requires Commission Action
Date: April 23rd, 2019
To: Honorable Mayor and City Commissioners
From: Department of Public Works
RE: Water Interconnect Contract
SUMMARY OF REQUEST:
Approve of the Water Interconnect Contract and authorize the Mayor and Clerk to sign
the Contract.
The Water Interconnect Contract outlines the details for the current and any future
locations where the City of Norton Shores / Fruitport Township water mains are
interconnected with the Spring Lake Township water mains along their shared border.
These connections serve to provide continuation of service in event of an emergency.
FINANCIAL IMPACT:
None
BUDGET ACTION REQUIRED:
None
STAFF RECOMMENDATION:
Approve the Water Interconnect Contract and authorize the Mayor and Clerk to sign.
Date: April 23rd, 2019
To: Honorable Mayor and City Commissioners
From: Department of Public Works
RE: City Hall Elevator Repairs
SUMMARY OF REQUEST:
Award a contract for elevator repairs at City Hall to the low bidder Otis Elevator
Company. The elevator is currently not functioning properly and is often times only
accessible from the basement.
Two contractors submitted bids for this project as follows:
Otis Elevator Company $69,861 (Base) + $9,850 (Alternate) = $79,711 Total
KONE, Inc. $89,850 (Base) + $24,470 (Alternate) = $114,320 Total
The base bids include functionality repairs to the elevator including new power units,
sensors, control panels, buttons, and chimes. The alternate bid provided by Otis
includes rehabilitation of the cab interior with new walls, handrails, ceiling and lighting.
FINANCIAL IMPACT:
$79,711.00
BUDGET ACTION REQUIRED:
None. To be addressed in a future reforecast.
STAFF RECOMMENDATION:
Award the project including the alternate to the low bidder Otis Elevator Company.
Date: April 23rd, 2019
To: Honorable Mayor and City Commissioners
From: Department of Public Works
RE: Pere Marquette Park Chalet Request
SUMMARY OF REQUEST:
3rd Coast Rentals provided staff with a proposal to construct and operate a chalet at
Pere Marquette Park for a three year period to begin in 2019. Details of the proposal
are attached as well as a summary of staff comments.
FINANCIAL IMPACT:
Loss of revenue estimated at $1,500/Year for three years.
BUDGET ACTION REQUIRED:
None
STAFF RECOMMENDATION:
Authorize staff to finalize an agreement with 3rd Coast Rentals to construct and operate a
chalet at Pere Marquette Park.
Date: April 23rd, 2019
To: Honorable Mayor and City Commissioners
From: Department of Public Works
RE: Pere Marquette Park Chalet Staff Summary
Staff Summary:
The proposal was reviewed by staff members from multiple departments and the following topics
were discussed:
Building Construction
The owners proposes to construct the chalet themselves. The styling and construction will be similar
to the downtown chalets and staff will have input on the design details prior to approval. Any
necessary building permits will be the responsibility of the applicant to obtain and satisfy. The
approximate size of the chalet will be 14 FT x 16 FT.
Chalet Location
The owner and staff agreed that the site best suited for this was near the current location where 3rd
Coast Rentals operated last year. The chalet would be sited on a section of beach that is maintained
under our annual grading permit. The chalet would be sited on the beach side of the sidewalk and
would have an ADA compliant gangway connecting the chalet to the sidewalk. The site does not
cause any significant disruption to other operations at the beach. There is potential for additional
structures in the vicinity.
Permitting
Staff from the planning department has engaged with Prism to determine if there are any permit issues
associated with construction and operation of this building. It is intended that the building only be on
site seasonally and would be relocated by parks staff to one of the adjacent parking lots during the off
season. A preliminary opinion from Prism is that a critical dune permit would not be required for a
temporary seasonally placed structure.
Cost
This cost to construct the chalet will be borne entirely by 3rd Coast Rentals and is estimated to be
approximately $5,000.00. They substantiated this price with a quote from Mast Barns for $7,351.19
for a similarly sized structure. The chalet will be owned by the City of Muskegon from the time it is
constructed. In exchange for constructing the chalet 3rd Coast has requested to have their annual fees
waived for 3 years (2019, 2020, and 2021). The estimated annual fees for the current operation are as
follows:
• Park Rent - $1,050.00/Year
• Commercial Launch Permit #1 - $300.00
• Commercial Launch Permits #2-4 - $150.00
• Estimated Annual Cost to 3rd Coast = $1,500.00
There would be no upfront cost to the city other than minimal staff time to review plans and concepts
and to prepare the site during the annual beach grading work. The loss of revenue is proposed to be
offset in ownership of the chalet.
For comparison the Western Market chalets currently rent from $1,325 - $2,125 depending on size.
Utilities
DPW Staff will explore options for providing power at the site. Based on preliminary discussions
with Consumers Energy it will be difficult to achieve. In preliminary discussion with 3rd Coast they
would prefer to have power available but it was not a necessity for their operation.
Leo Evans
From: 3rd Coast Rentals
Sent: Sunday, March 31, 2019 5:52 PM
To: Leo Evans
Subject: PROPOSAL from 3RD COAST
Attachments: Ron Rands.pdf
3rd Coast Rentals Beach Proposal
March 29, 2019
3rd Coast Rentals
4261 Whitehall Rd, Muskegon MI 49445
231-412-7665
Ron & Brenda Rands
4377 Winterwood Shores, Whitehall MI 49461
231-557-5867 / 231-557-2261
3RD COAST RENTALS PROPOSAL at PERE MARQUETTE BEACH
• Build a chalet for renting personal watercraft activity along with keep our temporary 3 rd Coast tent up
when renting.
• Our cost to build this chalet will be $5,000.00 compared to an estimate from M ast Barns of $7351.00
(estimate attached). To recoup costs, we would like to receive free beach rent for the next 3 years
and also receive 4 boat launch permits. This chalet will be owned by the City of Muskegon from the
minute it is constructed and placed on the beach.
• Location: we would like the area at the (old boat launch) breakwaters on the beach for the next 3
years (2019, 2020, 2021). This area has been marked out by the parks department.
• We would like have the park department to see if we can get power to the chalet.
• We would like to consider adding the sale of food to the chalet.
• We plan to bring in and out the water equipment on a pontoon boat every Saturday and Sunday we
are renting and during the week on major holidays. (This would mean the pontoon boat would be
anchored during the day.)
Ron and Brenda Rands
1
--
3RD COAST RENTALS
3rdcoastrental.com
231.412-7665
WARNING: This email originated outside of the City of Muskegon email system!
DO NOT CLICK links if the sender is unknown.
NEVER provide your User ID or Password.
2
Potential other areas, leaving a
walkway between to access
the wedding area of the beach
Area proposed by
Third Coast for a Catamaran
chalet Storage
Date: April 23rd, 2019
To: Honorable Mayor and City Commissioners
From: Department of Public Works
RE: SP-240 Smith-Ryerson Parking Lot Improvements
SUMMARY OF REQUEST:
To award contract (SP-240) for construction of improvements at the parking lot for
Smith-Ryerson Park.
Five contractors submitted bids for this project as follows:
Accurate Excavators .................................................... $88,668.50
Terra Contractors. ........................................................ $89,416.00 (Local Contractor)
Stein Construction ........................................................ $105,937.15
Bultsema Construction ................................................. $108,057.00
Wet Michigan Dirtworks................................................ $123,396.49
The second low bidder is a local contractor with offices located within the City of
Muskegon. The low bidder is not located with the City of Muskegon. The bids are
within 1% of each other.
FINANCIAL IMPACT:
$89,416.00
BUDGET ACTION REQUIRED:
None. Project is budgeted for $96,726 of CDBG funds in the 18-19 budget.
STAFF RECOMMENDATION:
Award the project to the second low bidder, Terra Contractors in accordance with the City of
Muskegon Policy Regarding Local Preference Purchasing/Contracting.
BID TABULATION
City of Muskegon Project Engineer: JDB Date: 4/16/2019
Egineering Department Project Number: SP 240
Project description: SMITH RYERSON PARKING LOT
Accurate Excavators Terra Contractors Stein Construction Co. Bultsma Construction Co West Michigan Dirtworks
Engineers Estimate Muskegon Muskggon Ravenna Byron Center Muskggon
Line Item Pay Code Description Units Quantity Unit Price Total Unit Price Total Unit Price Total Unit Price Total Unit Price Total Unit Price Total
1 1500001 Mobilization, Max $8,000 LSUM 1 $ 3,000.00 $ 3,000.00 $ 1,980.00 $ 1,980.00 $ 8,000.00 $ 8,000.00 $ 7,000.00 $ 7,000.00 $ 1,800.00 $ 1,800.00 $ 8,000.00 $ 8,000.00
2 2050016 Excavation, Earth Cyd 950 $ 10.00 $ 9,500.00 $ 12.00 $ 11,400.00 $ 3.50 $ 3,325.00 $ 18.00 $ 17,100.00 $ 18.87 $ 17,926.50 $ 20.35 $ 19,332.50
3 2080036 Erosion Control, Silt Fence Ft 400 $ 2.25 $ 900.00 $ 1.45 $ 580.00 $ 2.00 $ 800.00 $ 2.00 $ 800.00 $ 3.10 $ 1,240.00 $ 1.67 $ 668.00
4 2090001 Project Cleanup LSUM 1 $ 1,000.00 $ 1,000.00 $ 500.00 $ 500.00 $ 1,000.00 $ 1,000.00 $ 1,000.00 $ 1,000.00 $ 1.00 $ 1.00 $ 3,734.42 $ 3,734.42
5 3020001 Aggregate Base Ton 100 $ 13.00 $ 1,300.00 $ 12.00 $ 1,200.00 $ 25.00 $ 2,500.00 $ 30.00 $ 3,000.00 $ 31.00 $ 3,100.00 $ 31.78 $ 3,178.00
6 3027011 _Aggregate Base, 6 inch, Modified Syd 2,700 $ 3.00 $ 8,100.00 $ 3.15 $ 8,505.00 $ 3.50 $ 9,450.00 $ 2.97 $ 8,019.00 $ 2.92 $ 7,884.00 $ 4.12 $ 11,124.00
7 3057011 _Salv Crushed Material, Modified Syd 2,400 $ 3.00 $ 7,200.00 $ 3.40 $ 8,160.00 $ 2.75 $ 6,600.00 $ 4.00 $ 9,600.00 $ 4.85 $ 11,640.00 $ 7.24 $ 17,376.00
8 5010025 Hand Patching Ton 5 $ 200.00 $ 1,000.00 $ 103.00 $ 515.00 $ 105.00 $ 525.00 $ 105.00 $ 525.00 $ 123.12 $ 615.60 $ 108.43 $ 542.15
9 5010033 HMA, 13A Ton 235 $ 80.00 $ 18,800.00 $ 95.80 $ 22,513.00 $ 99.00 $ 23,265.00 $ 96.50 $ 22,677.50 $ 98.80 $ 23,218.00 $ 100.92 $ 23,716.20
10 5010034 HMA, 36A Ton 235 $ 85.00 $ 19,975.00 $ 103.00 $ 24,205.00 $ 105.00 $ 24,675.00 $ 103.25 $ 24,263.75 $ 105.84 $ 24,872.40 $ 108.43 $ 25,481.05
11 8110078 Pavt Mrkg, Ovly Cold Plastic, Thru Arrow Sym Ea 4 $ 100.00 $ 400.00 $ 42.00 $ 168.00 $ 50.00 $ 200.00 $ 70.00 $ 280.00 $ 43.20 $ 172.80 $ 44.26 $ 177.04
12 8110294 Pavt Mrkg, Waterborne, for Rest Areas, Parks, & Lots, 4 inch, White Ft 988 $ 1.00 $ 988.00 $ 0.50 $ 494.00 $ 0.60 $ 592.80 $ 0.60 $ 592.80 $ 0.54 $ 533.52 $ 0.55 $ 543.40
13 8117001 _Pavt Mrkg, Waterborne, 4 inch, Blue Ft 387 $ 1.00 $ 387.00 $ 0.50 $ 193.50 $ 0.60 $ 232.20 $ 0.60 $ 232.20 $ 0.54 $ 208.98 $ 0.55 $ 212.85
14 8117050 _Pavt Mrkg, Waterborne, Handicap, Sym, Blue Ea 5 $ 150.00 $ 750.00 $ 42.00 $ 210.00 $ 50.00 $ 250.00 $ 80.00 $ 400.00 $ 43.20 $ 216.00 $ 44.26 $ 221.30
15 8120170 Minor Traf Devices LSUM 1 $ 500.00 $ 500.00 $ 160.00 $ 160.00 $ 500.00 $ 500.00 $ 750.00 $ 750.00 $ 756.00 $ 756.00 $ 553.18 $ 553.18
16 8120250 Plastic Drum, High Intensity, Furn Ea 20 $ 25.00 $ 500.00 $ 11.00 $ 220.00 $ 15.00 $ 300.00 $ 30.00 $ 600.00 $ 25.92 $ 518.40 $ 26.55 $ 531.00
17 8120251 Plastic Drum, High Intensity, Oper Ea 20 $ 5.00 $ 100.00 $ 1.00 $ 20.00 $ 2.00 $ 40.00 $ 10.00 $ 200.00 $ 27.00 $ 540.00 $ 5.53 $ 110.60
18 8160028 Mulch Blanket, High Velocity Syd 250 $ 1.50 $ 375.00 $ 1.50 $ 375.00 $ 2.50 $ 625.00 $ 2.25 $ 562.50 $ 3.80 $ 950.00 $ 1.78 $ 445.00
19 8160062 Topsoil Surface, Furn, 4 inch Syd 1,260 $ 3.00 $ 3,780.00 $ 3.25 $ 4,095.00 $ 2.25 $ 2,835.00 $ 2.44 $ 3,074.40 $ 5.34 $ 6,728.40 $ 3.39 $ 4,271.40
20 8167011 _Hydroseeding Syd 1,260 $ 0.50 $ 630.00 $ 1.25 $ 1,575.00 $ 1.35 $ 1,701.00 $ 1.00 $ 1,260.00 $ 3.15 $ 3,969.00 $ 0.28 $ 352.80
21 8257001 _Force Main, HDPE, 2 inch Ft 80 $ 40.00 $ 3,200.00 $ 20.00 $ 1,600.00 $ 25.00 $ 2,000.00 $ 50.00 $ 4,000.00 $ 14.58 $ 1,166.40 $ 35.32 $ 2,825.60
22 $ - $ - $ - $ - $ -
Totals: $ 82,385.00 $ 88,668.50 $ 89,416.00 $ 105,937.15 $ 108,057.00 $ 123,396.49
= apparent low bidder
Page 1 of 1
AGENDA ITEM NO. _______________
CITY COMMISSION MEETING __________________________
TO: Honorable Mayor and City Commissioners
FROM: Frank Peterson, City Manager
DATE: April 8, 2019
RE: Purchase Agreement – 1067 Grand Avenue
SUMMARY OF REQUEST:
City staff is seeking permission to enter into a purchase agreement with Jonathan and Melissa Wilson
for city-owned home located at 1067 Grand. The purchase price is $143,000.
FINANCIAL IMPACT:
$143,000 minus closing costs deposited into the City’s Public Improvement Fund.
BUDGET ACTION REQUIRED:
None at this time.
STAFF RECOMMENDATION:
To authorize the city manager to enter into a sales agreement to sell the property at 1067 Grand Avenue
for $143,000 with Jonathan and Melissa Wilson.
COMMITTEE RECOMMENDATION:
REAL ESTATE PURCHASE AGREEMENT
This Real Estate Purchase Agreement (“Agreement”) is made April 23, 2019, by and between
the City of Muskegon, a municipal corporation, with offices at 933 Terrace Street, Muskegon, Michigan
49440 (“Seller”), and Melissa Wilson and Jonathan Wilson, of 930 Washington Avenue, Unit 5C,
Muskegon, MI 49441 ("Buyer") (collectively the “Parties”).
1. General Agreement and Description of Property. Seller agrees to sell, and Buyer
agrees to buy the real estate and all improvements thereon, with all beneficial easements, and with all of
Seller’s right, title, and interest in all adjoining public ways, commonly known as 1067 Grand Avenue,
Muskegon, Michigan 49440, situated in the City of Muskegon, Muskegon County, Michigan
(“Property”), and legally described in Exhibit A, subject to the reservations, restrictions, and easements
of record, provided said reservations, restrictions, and easements of record are reasonably acceptable to
Buyer upon disclosure and review of the same.
2. Purchase Price and Manner of Payment. The purchase price for the Property shall be One
Hundred Forty Three Thousand Dollars and 00/100 ($143,000.00). If the appraised value of
the Property is determined to be at least Five Thousand Dollars ($5,000.00) less than the
purchase price, the Parties agree to reduce the purchase price to an amount no more than Five
Thousand Dollars ($5,000.00) above the appraised value of the Property; provided, however,
if the appraised value is below $125,000.00, the Parties agree to negotiate a new purchase
price. The purchase price shall be payable as follows:
a. Upon execution of this Agreement, Buyer will deliver to Seller a cashier’s check
payable to Seller in the amount of $1,000 (the “Earnest Money”), to be held by the Title
Company. If the transaction contemplated by this Agreement closes, the Earnest Money will be
applied against the purchase price. If the transaction fails to close as a result of a breach by Buyer
or Buyer otherwise failing to comply with the terms of this Agreement, Seller shall have the right
to retain the Earnest Money.
b. At Closing, Buyer will pay the remaining balance of the purchase price in full to
Seller, by wire transfer, certified or cashier’s check.
3. Title Insurance. Seller, at Seller’s expense, will obtain a commitment for title insurance
issued by Transnation Title Agency (“Title Company”), for an amount not less than the purchase price,
guaranteeing title on the conditions required in this Agreement. In the event the reservations, restrictions,
or easements of record disclosed by said title commitment are, in the reasonable discretion of Buyer,
deemed unreasonable, Seller shall have 20 days from the date Seller is notified in writing of such
unreasonableness of restriction and such unmarketability of title, to remedy such objections. If Seller
resolves such restrictions and remedies the title (by obtaining satisfactory title insurance or otherwise)
within the time specified, Buyer agrees to complete this sale as provided in this Agreement, within 10
days of written notification from Seller. If Seller fails to resolve such restrictions or remedy the title
within the time above specified or fails to obtain satisfactory title insurance, this Agreement shall
terminate. The premium for the owner’s title policy, if any, shall be paid by Buyer.
4. Property Taxes and Assessments. Real estate taxes and assessments due and payable
prior to Closing shall be the responsibility of Seller. Real estate taxes that become due and payable after
the date of Closing will be the responsibility of Buyer.
5. Personal Property and Fixtures. All fixtures and appliances are included in this sale at
no additional cost to Buyer, except as specifically listed below. These items include, without limitation,
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the following: plumbing, heating and lighting fixtures; all drapery and curtain hardware; all window
shades and blinds; all kitchen appliances; wall-to-wall carpeting, if attached; all attached mirrors and
bathroom mirrors; stationary laundry tubs; washer and electric dryer, water softener, water heater; heating
and air conditioning equipment (window units excluded); ceiling fans; built-in gas grills; water pump and
pressure tank; TV antenna; screens and storm windows and doors; awnings; mailbox; all plantings;
garage door openers and controls; fireplace screens and grates; locks and keys; and all personal property
located on the Property as of Closing. All such fixtures and other personal property included in the sale
are being sold “AS-IS”. The following items of personal property shall be excluded from the sale:
____________________________________________________
6. Survey. Seller will provide Buyer with any existing surveys of the Property. Buyer, at
Buyer’s own expense, may obtain a survey of the Property, and Buyer or Buyer’s surveyor or other agents
may enter the Property for that purpose prior to Closing; provided, however, Buyer must order such
survey within 7 days following the full execution of this Agreement. If no survey is obtained, Buyer
agrees that Buyer is relying solely upon Buyer’s own judgment as to the location, boundaries and area of
the Property and improvements thereon without regard to any representations that may have been made
by Seller or any other person. In the event that a survey by a registered land surveyor made prior to
Closing discloses a material encroachment or substantial variation from the presumed land boundaries or
area, Buyer will notify Seller of such encroachment or variation within 5 days following receipt of the
survey, and Seller shall have the option of effecting a remedy within 10 days after disclosure and paying
the cost of such survey, or this Agreement shall terminate at the election of either party. Buyer may elect
to purchase the Property subject to said encroachment or variation.
7. Inspections by Buyer and Condition of Property. Upon completion of Seller’s
renovations to the Property, including construction of an attached garage, Seller shall provide Buyer
with a Certificate of Final Completion. For a period of fourteen (14) calendar days following Buyer’s
receipt of Seller’s Certificate of Final Completion (“Inspection Period”), Buyer has the right to inspect
all or any portion of the Property at Buyer’s sole cost and expense. These inspections may include,
without limitation, the soil and groundwater; all structures; pest inspections; municipal inspections as
described below; well and septic, if necessary; and the plumbing, heating, ventilating, air conditioning,
and electrical systems. All such inspections shall be on prior notice to Seller and be done at reasonable
times. Buyer shall indemnify, defend and hold Seller harmless from and against any damage to or injury
to persons or property caused by Buyer or Buyer’s agents in conducting such inspections. Buyer shall
have the right to terminate this Agreement prior to the end of the Inspection Period if the inspections are
not acceptable to Buyer, in Buyer’s reasonable discretion, by giving Seller written notice prior to the end
of the Inspection Period, in which case Buyer would be entitled to return of the Earnest Money. If Buyer
does not exercise Buyer’s right to terminate prior to the end of the Inspection Period, the right to
terminate shall be deemed to have been waived and Buyer will be deemed to have accepted the Property,
improvements thereon, and all fixtures in their present, AS-IS condition.
8. Condition of Property. No implied warranties of habitability, quality, condition, fitness
for a particular purpose, or any other implied warranties shall operate between Seller and Buyer, and
Buyer expressly waives any and all such implied warranties. Buyer understands and agrees that the
Property and the personal property are taken “AS IS”. Buyer further represents and warrants that Buyer is
not purchasing the Property based on any representations made by or on behalf of Seller.
9. Lead-Based Paint. Buyer acknowledges receiving a Lead Paint Disclosure from Seller, a
copy of which is attached as Exhibit B.
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10. Seller’s Disclosure Statement. Upon issuing a Certificate of Final Inspection to Buyer,
Seller shall simultaneously provide Buyer with a completed Seller’s Disclosure Statement.
11. Real Estate Commission. Buyer and Seller both acknowledge and agree that no agent,
broker, salesperson, or other party is entitled to a real estate commission upon the Closing of this sale.
Buyer and Seller both agree to indemnify and hold the other harmless from any liability, including
reasonable attorney fees, occasioned by reason of any person or entity asserting a claim for a real estate
commission arising from actions taken by the other party.
12. Closing. The closing date of this sale shall be as mutually agreed by the parties, but in no
event later than July 30, 2019 (“Closing”). The Closing shall be conducted at the Title Company or at
such other location as the parties mutually agree.
13. Costs. The costs associated with this Agreement and the Closing shall be paid as follows:
(i) Seller shall pay the state and county transfer taxes in the amount required by law; (ii) Buyer 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; (iii) Buyer shall pay for the cost of recording the quit-claim deed; and (iv)
Seller shall pay any Closing fees charged by the Title Company.
14. Deliveries. At Closing, Seller shall execute and deliver a quit-claim deed for the
Property to Buyer. The parties shall execute and deliver such other documents reasonably required to
close the transaction.
15. Possession. Possession of the Property will be delivered to Buyer at Closing; provided,
however, after full execution of this Agreement, Seller will reasonably permit Buyer to enter certain areas
of the Property to store certain items in the Property while construction on the Property is being
completed. If Buyer chooses to keep personal items at the Property prior to Closing, Seller shall not be
responsible for the loss, damage, or theft of Buyer’s items kept on the Property. Seller agrees that the
Property shall be vacant prior to Closing.
16. Default.
a. By Seller. If Seller for any reason does not perform the material terms and
conditions of this Agreement, Buyer may, at Buyer’s option, elect to enforce the performance of
this Agreement or be entitled to terminate this Agreement.
b. By Buyer. If Buyer for any reason does not perform the terms and conditions of
this Agreement, Seller, at Seller’s option and in addition to any and all legal and equitable
remedies available under Michigan law, may elect to enforce the performance of this Agreement,
or be entitled to terminate this Agreement and retain the Earnest Money as liquidated damages.
17. Risk of Loss. Until the time of Closing, risk of loss because of the damage to or
destruction of any improvements located on the Property shall be solely that of Seller; provided, however,
that if such loss or damage to any improvements on the Property was caused by Buyer prior to the time of
Closing, Buyer shall be solely responsible for such risk of loss. In the event the improvements located on
the Property are damaged at the fault of Seller prior to the date of Closing, and are not repaired by Seller
prior to Closing, Buyer may elect to terminate this Agreement; or Buyer may elect to continue this
Agreement in which event Seller shall assign to Buyer any insurance proceeds to be received by Seller
because of said damage or other destruction to the Property.
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18. Notice. All notices and other deliveries required under this Agreement shall be made and
given to the appropriate party, or the office of the party, at the address set forth above or at such other
address as may hereafter be specified by such parties by written notice from time to time. Notices shall be
effective on the date of receipt, if given by hand, express delivery or recognized courier service. Notices
given by certified mail shall be deemed effective five business days after the date of deposit in an
authorized postal facility, as shown by its receipt for certified mail.
19. 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 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. 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.
4
I. Survival of Representations and Warranties. The representations,
warranties, covenants and agreements contained in this Agreement and in any instrument
provided for in this Agreement shall survive the Closing date and continue in full force and
effect after the consummation of this purchase and sale.
Seller: City of Muskegon Buyer: Jonathan Wilson
By: By:
Name: Stephen Gawron Name: Jonathan Wilson
Title: Mayor Title: Purchaser
Date: Date:
By: By:
Name: Ann Meisch Name: Melissa Wilson
Title: City Clerk Title: Purchaser
Date: Date:
5
Exhibit A
The following described Property situated in the City of Muskegon, County of Muskegon, State of
Michigan:
CITY OF MUSKEGON REVISED PLAT OF 1903 BLK 484 LOT 4 & S 16 1/2 FT OF
GRAND AVE ABUTTING SAME
Parcel No.: 61-24-205-484-0004-00
Commonly known as: 1067 Grand Avenue, Muskegon, Michigan 49441
Exhibit B
Lead Disclosure Form
DISCLOSURE OF INFORMATION ON LEAD-BASED PAINT
AND/OR LEAD-BASED PAINT HAZARDS
Lead Warning Statement
Every purchaser of any interest in residential real property on which a residential dwelling was built prior to
1978 is notified that such property may present exposure to lead from lead-based paint that may place young
children at risk of developing lead poisoning. Lead poisoning in young children may produce permanent
neurological damage, including learning disabilities, reduced intelligence quotient, behavioral problems, and
impaired memory. Lead poisoning also poses a particular risk to pregnant women. The seller of any interest
in residential real property is required to provide the buyer with any information on lead-based paint hazards
from risk assessments or inspections in the seller's possession and notify the buyer of any known lead-based
paint hazards. A risk assessment or inspection for possible lead-based paint hazards is recommended prior to
purchase.
Seller's Disclosure
(a) Presence of lead-based paint and/or lead-based paint hazards (check (i) or (ii) below):
(i) Known lead-based paint and/or lead-based paint hazards are present in the housing (explain).
(ii) Seller has no knowledge of lead-based paint and/or lead-based paint hazards in the housing.
(b) Records and reports available to the seller (check (i) or (ii) below):
(i) Seller has provided the Buyer with all available records and reports pertaining to lead-based
paint and/or lead-based paint hazards in the housing (list documents below).
(ii) Seller has no reports or records pertaining to lead-based paint and/or lead-based paint
hazards in the housing.
Buyer's Acknowledgment (initial)
(c) Buyer has received copies of all information listed above.
(d) Buyer has received the pamphlet Protect Your Family from Lead in Your Home.
(e) Buyer has (check (i) or (ii) below):
(i) received a 10-day opportunity (or mutually agreed upon period) to conduct a risk assessment
or inspection for the presence of lead-based paint and/or lead-based paint hazards; or
(ii) waived the opportunity to conduct a risk assessment or inspection for the presence of lead-
based paint and/or lead-based paint hazards.
Agent's Acknowledgment (initial)
(f) Agent has informed the seller of the seller's obligations under 42 USC 4852d and is aware of his/her
responsibility to ensure compliance.
Certification of Accuracy
The following parties have reviewed the information above and certify, to the best of their knowledge, that
the information they have provided is true and accurate.
Seller – City of Muskegon Buyer –
Stephen Gawron, Mayor Date Jonathan Wilson * Melissa Wilson Date
Commission Meeting Date: April 23, 2019
Date: April 18, 2019
To: Honorable Mayor and City Commissioners
From: Planning & Economic Development
RE: Approval of a Neighborhood Enterprise Zone Certificate
SUMMARY OF REQUEST:
An application for a Neighborhood Enterprise Zone (NEZ) certificate has been received
from Christopher & Elizabeth Beck for the new construction of a home at 324 Terrace
Point. The applicant has met local and state requirements for the issuance of the NEZ
certificate.
FINANCIAL IMPACT:
Taxation will be 50% of the State average for the next 12 years.
BUDGET ACTION REQUIRED:
None
STAFF RECOMMENDATION:
Approval of the NEZ certificate.
COMMITTEE RECOMMENDATION:
None
4/18/2019
Resolution No. ________
MUSKEGON CITY COMMISSION
RESOLUTION TO APPROVE THE ISSUANCE
OF A NEIGHBORHOOD ENTERPISE ZONE CERTIFICATE
WHEREAS, an application for a Neighborhood Enterprise Zone Certificate has been filed with
the City Clerk by Christopher & Elizabeth Beck to construct a new home at 324 Terrace Point in
the Terrace Point Condominium neighborhood, and;
WHEREAS, the applicant has satisfied both the local and state eligibility criteria for a
Neighborhood Enterprise Zone Certificate;
WHEREAS, the local unit of government is allowing the six (6) month grace period after
construction commencement to apply, which is allowed under the law;
WHEREAS, the Neighborhood Enterprise Zone Certificate has been approved for twelve (12)
years;
NOW, THEREFORE, BE IT RESOLVED that the application for a Neighborhood Enterprise
Zone Certificate for the new construction of a home by Christopher & Elizabeth Beck be
approved.
Adopted this 23rd day of April, 2019.
Ayes:
Nays:
Absent:
By: __________________________
Stephen J. Gawron, Mayor
Attest: _________________________
Ann Meisch
City Clerk
4/18/19
CERTIFICATION
I hereby certify that the foregoing constitutes a true and complete copy of a resolution adopted
by the City Commission of the City of Muskegon, County of Muskegon, Michigan at a regular
meeting held on April 23, 2019.
By: ________________________
Ann Meisch
City Clerk
4/18/19
Commission Meeting Date: April 23, 2019
Date: April 18, 2019
To: Honorable Mayor and City Commissioners
From: Planning & Economic Development
RE: Approval of a Neighborhood Enterprise Zone Certificate
SUMMARY OF REQUEST:
An application for a Neighborhood Enterprise Zone (NEZ) certificate has been received
from Dennis Atkinson for the new construction of a home at 343 Terrace Point. The
applicant has met local and state requirements for the issuance of the NEZ certificate.
FINANCIAL IMPACT:
Taxation will be 50% of the State average for the next 12 years.
BUDGET ACTION REQUIRED:
None
STAFF RECOMMENDATION:
Approval of the NEZ certificate.
COMMITTEE RECOMMENDATION:
None
4/18/2019
Resolution No. ________
MUSKEGON CITY COMMISSION
RESOLUTION TO APPROVE THE ISSUANCE
OF A NEIGHBORHOOD ENTERPISE ZONE CERTIFICATE
WHEREAS, an application for a Neighborhood Enterprise Zone Certificate has been filed with
the City Clerk by Dennis Atkinson to construct a new home at 343 Terrace Point in the Terrace
Point Condominium neighborhood, and;
WHEREAS, the applicant has satisfied both the local and state eligibility criteria for a
Neighborhood Enterprise Zone Certificate;
WHEREAS, the local unit of government is allowing the six (6) month grace period after
construction commencement to apply, which is allowed under the law;
WHEREAS, the Neighborhood Enterprise Zone Certificate has been approved for twelve (12)
years;
NOW, THEREFORE, BE IT RESOLVED that the application for a Neighborhood Enterprise
Zone Certificate for the new construction of a home by Dennis Atkinson be approved.
Adopted this 23rd day of April, 2019.
Ayes:
Nays:
Absent:
By: __________________________
Stephen J. Gawron, Mayor
Attest: _________________________
Ann Meisch
City Clerk
4/18/19
CERTIFICATION
I hereby certify that the foregoing constitutes a true and complete copy of a resolution adopted
by the City Commission of the City of Muskegon, County of Muskegon, Michigan at a regular
meeting held on April 23, 2019.
By: ________________________
Ann Meisch
City Clerk
4/18/19
Commission Meeting Date: April 23, 2019
Date: April 16, 2019
To: Honorable Mayor and City Commission
From: Community and Neighborhood Services Department
RE: Public Hearing for the 2019 Action Plan
__________________________________________________________________
SUMMARY OF REQUEST: To conduct a public hearing on April 23, 2019 to
receive comments from the public concerning the 2019 Action Plan developed
and proposed by the Community and Neighborhood Services department.
After the public hearing, all comments received during the 30 day comment
period (April 15- May 14) will be documented and included in the plan as
required.
FINANCIAL IMPACT: The City is required to submit the Annual Action Plan to
receive 2019 allocations of CDBG and HOME Investment Partnership
Programs.
BUDGET ACTION REQUIRED: Approve a 2019 Budget at the May 14th
Commission meeting at the conclusion of the comment period.
STAFF RECOMMENDATION: To direct staff to gather comments from the
public for the 2019 Action Plan until May 13, 2019 – end of comment period.
2018
CDBG Organization/Agency Activity Budget Proposed 2019
COM - Finance Youth Opportunities/Summer Internships $ 55,000.00
COM - CNS CDBG Admin ** $ 187,531.34 $ 197,690.20
COM - CNS Priority Home Repair $ 125,000.00
COM - CNS Services Delivery $ 75,000.00 $ 75,000.00
COM - CNS Residential Façade Program $ 50,000.00
COM - Finance Fire Station Bond Repayment $ 133,400.66 $ 254,166.66
COM - Inspections Dangerous Bldgs - Demolition $ 50,000.00
COM - Inspections Dangerous Bldgs - Board-Ups $ 10,000.00
COM - Leisure Services Youth Recreation* $ 90,000.00
COM - Planning Code Enforcement Staff $ 25,000.00
COM - Engineering Smith Ryerson Park $ 96,726.00
COM - Engineering Neighborhood Beautification - 3rd St Sidewalks $ 40,000.00
COM - CNS Economic Development Staff
COM - CNS Youth Center Staff
COM - CNS Sidewalks - ADA CDC
COM - CNS Skate Park CDC
TOTAL $ 937,658.00 $ 526,856.86
Allocated Amount:
$ 973,451.00
2018
HOME Organization/Agency Activity Budget 2019 Proposed
CHDO Allocation Housing Affordable Units**** $ 50,000.00 $ 50,222.70
CHDO Administration Administration $ 5,000.00
COM - CNS HOME Administration*** $ 32,768.00 $ 33,481.80
COM - CNS Rental Rehab $ 20,000.00
COM - CNS HOME Rehab Construction * $ 239,913.00 $ 231,113.50
TOTAL $ 327,681.00 $ 334,818.00
Allocated Amount:
$ 334,818.00
Date: 04/23/2019
To: Honorable Mayor and City Commissioners
From: Department of Public Works
RE: Public Hearing for DWRF Project Plan
SUMMARY OF REQUEST:
Conduct a public hearing related to the DWRF Project Plan that was posted for public
comment on March 23rd, 2019 and approve the Resolution to adopt the plan.
FINANCIAL IMPACT:
None
BUDGET ACTION REQUIRED:
None
STAFF RECOMMENDATION:
Conduct public hearing and approve the resolution.
A RESOLUTION ADOPTING A FINAL PROJECT PLAN
FOR WATER SYSTEM IMPROVEMENTS AND
DESIGNATING AN AUTHORIZED PROJECT REPRESENTATIVE
WHEREAS, the City of Muskegon recognizes the need to make improvements to its existing water
distribution system; and
WHEREAS, the City of Muskegon authorized Prein&Newhof to prepare a Project Plan, which
recommends improvements to provide a more reliable and resilient water distribution system, upgrades to
the water filtration plant, replace aging water mains and lead service lines, which can cause elevated lead
concentrations in homes; and
WHEREAS, said Project Plan was presented at a Public Hearing held on April 23, 2019 and all public
comments at the hearing or written comments submitted during the public comment period have been
considered and addressed.
NOW THEREFORE BE IT RESOLVED, that the City of Muskegon formally adopts said Project Plan
and agrees to implement the selected FY 2020 projects based on the selected alternatives for those
projects.
BE IT FURTHER RESOLVED, that the Director of Public Works, a position currently held by Leo
Evans, is designated as the authorized representative for all activities associated with the project
referenced above, including the submittal of said Project Plan as the first step in applying to the State of
Michigan for a Drinking Water Revolving Fund Loan to assist in the implementation of the selected
alternative.
Yeas:
Nays:
I certify that the above Resolution was adopted by the City Commission of the City of Muskegon on
April 23, 2019.
BY: Ann Meisch, City Clerk
______________________________________________________________________________
Signature Date
(EQP 3530 REV 01/2015)
AGENDA ITEM NO. _______________
CITY COMMISSION MEETING __________________________
TO: Honorable Mayor and City Commissioners
FROM: Frank Peterson, City Manager
DATE: April 23, 2019
RE: Revised Notice of Intent to Issue Capital Improvement Bonds
SUMMARY OF REQUEST:
The City Commission previously issued a notice of intent to issue capital improvement bonds for the
purpose of constructing a convention center. The original intent provided for the borrowing of up to
$20 Million for a period of up to 25 years. Upon further review, staff is recommending that the notice
be re-issued to allow for the term to be extended up to 30 years.
FINANCIAL IMPACT:
None.
BUDGET ACTION REQUIRED:
None at this time.
STAFF RECOMMENDATION:
To approve the attached Notice of Intent to Issue Capital Improvement Bonds up to $20 Million for a
repayment term not to exceed 30 years for the purposes of constructing a convention center.
COMMITTEE RECOMMENDATION:
NOTICE OF INTENT RESOLUTION
CAPITAL IMPROVEMENT BONDS
CITY OF MUSKEGON
County of Muskegon, State of Michigan
_______________________________________
Minutes of a regular meeting of the City Commission of the City of Muskegon, County
of Muskegon, State of Michigan, held on the 23rd day of April, 2019, at 5:30 o’clock p.m.
prevailing Eastern Time.
PRESENT: Members _________________________________________________________
_________________________________________________________________
ABSENT: Members _________________________________________________________
The following preamble and resolution were offered by Member ___________________
and supported by Member _____________________:
WHEREAS, the City of Muskegon, County of Muskegon, State of Michigan (the “City”),
intends to authorize the issuance and sale of its general obligation limited tax bonds (the
“Bonds”) pursuant to Act 34, Public Acts of Michigan, 2001, as amended (“Act 34”), to pay all
or part of the cost to acquire, construct, furnish and equip a new convention center, including site
acquisition, demolition and related site improvements (the “Project”); and
WHEREAS, the total amount of Bonds to be issued to finance the acquisition and
construction of the Project shall not exceed Twenty Million Dollars ($20,000,000); and
WHEREAS, on July 10, 2018, the City Commission previously approved a Notice of
Intent Resolution for the Project that indicated the Bonds would have principal payable in not to
exceed 25 annual installments; and
WHEREAS, the City now desires to have the Bonds issued with principal payable in not
to exceed 30 annual installments; and
WHEREAS, a new notice of intent to issue bonds must be published before the issuance
of the Bonds in order to comply with the requirements of Section 517 of Act 34; and
WHEREAS, the City intends at this time to state its intention to be reimbursed from
proceeds of the Bonds for any expenditures undertaken by the City for the Project prior to
issuance of the Bonds.
NOW, THEREFORE, BE IT RESOLVED THAT:
MILLER, CANFIELD, PADDOCK AND STONE, P.L.C.
1. The City Clerk is hereby authorized and directed to publish a notice of intent to
issue the Bonds in the Muskegon Chronicle, a newspaper of general circulation in the City.
2. The notice of intent shall be published as a display advertisement not less than
one-quarter (1/4) page in size in substantially the form attached to this Resolution as Exhibit
A.
3. The City Commission does hereby determine that the foregoing form of Notice of
Intent to Issue Bonds, and the manner of publication directed, is adequate notice to the
taxpayers and electors of the City, and is the method best calculated to give them notice of the
City’s intent to issue the Bonds, the purpose of the Bonds, the security for the Bonds, and the
right of referendum of the electors with respect thereto, and that the provision of forty-five (45)
days within which to file a referendum petition is adequate to insure that the City’s electors may
exercise their legal rights of referendum, and the newspaper named for publication is hereby
determined to reach the largest number of persons to whom the notice is directed.
4. The City makes the following declarations for the purpose of complying with the
reimbursement rules of Treas. Reg. § 1.150-2 pursuant to the Internal Revenue Code of 1986, as
amended:
(a) The City reasonably expects to reimburse itself with proceeds of the
Bonds for certain costs of the Project which were paid or will be paid from funds
of the City subsequent to sixty (60) days prior to today.
(b) The maximum principal amount of debt expected to be issued for the
Project, including issuance costs, is $20,000,000.
(c) A reimbursement allocation of the capital expenditures described above
with the proceeds of the Bonds will occur not later than 18 months after the later
of (i) the date on which the expenditure is paid, or (ii) the date the Project is
placed in service or abandoned, but in no event more than three (3) years after the
original expenditure is paid. A reimbursement allocation is an allocation in
writing that evidences the City’s use of the proceeds of the Bonds to reimburse
the City for a capital expenditure made pursuant to this resolution.
MILLER, CANFIELD, PADDOCK AND STONE, P.L.C.
2
5. All resolutions and parts of resolutions insofar as they conflict with the provisions
of this resolution are hereby rescinded.
AYES: Members _________________________________________________________
_________________________________________________________________
NAYS: Members _________________________________________________________
RESOLUTION DECLARED ADOPTED.
_______________________________________________
Ann Marie Meisch
City Clerk
I hereby certify that the foregoing is a true and complete copy of a resolution adopted by
the City Commission of the City of Muskegon, County of Muskegon, State of Michigan, at a
regular meeting held on April 24, 2019, and that the meeting was conducted and public notice of
the meeting was given pursuant to and in full compliance with the Open Meetings Act, being
Act 267, Public Acts of Michigan, 1976, and that the minutes of the meeting were kept and will
be or have been made available as required by the Open Meetings Act.
_______________________________________________
Ann Marie Meisch
City Clerk
MILLER, CANFIELD, PADDOCK AND STONE, P.L.C.
3
EXHIBIT A
NOTICE TO ELECTORS OF THE CITY OF MUSKEGON
OF INTENT TO ISSUE BONDS SECURED BY THE TAXING POWER OF
THE CITY AND OF RIGHT OF REFERENDUM THEREON
PLEASE TAKE NOTICE that the City Commission of the City of Muskegon, County of
Muskegon, intends to authorize the issuance and sale of general obligation capital improvement
bonds pursuant to Act 34, Public Acts of Michigan, 2001, as amended, in one or more series in a
total principal amount of not to exceed Twenty Million Dollars ($20,000,000), for the purpose of
paying all or part of the cost to acquire, construct, furnish and equip a new convention center,
including site acquisition, demolition and related site improvements.
BOND DETAILS
The bonds will mature in annual installments not to exceed thirty (30) in number, with
interest rates to be determined at a public or negotiated sale but in no event to exceed the
maximum permitted by law on the unpaid balance from time to time remaining outstanding on
said bonds.
SOURCE OF PAYMENT OF BONDS
THE PRINCIPAL OF AND INTEREST ON SAID BONDS shall be payable from the
general funds of the City lawfully available for such purposes including property taxes levied
within applicable constitutional, statutory and charter tax rate limitations.
RIGHT OF REFERENDUM
THE BONDS WILL BE ISSUED WITHOUT A VOTE OF THE ELECTORS UNLESS
A PETITION REQUESTING SUCH A VOTE SIGNED BY NOT LESS THAN 10% OF THE
REGISTERED ELECTORS OF THE CITY IS FILED WITH THE CITY CLERK WITHIN
FORTY-FIVE (45) DAYS AFTER PUBLICATION OF THIS NOTICE. IF SUCH PETITION
IS FILED, THE BONDS MAY NOT BE ISSUED WITHOUT AN APPROVING VOTE OF A
MAJORITY OF THE QUALIFIED ELECTORS OF THE CITY VOTING THEREON.
THIS NOTICE is given pursuant to the requirements of Section 517, Act 34, Public Acts
of Michigan, 2001, as amended.
Ann Marie Meisch
Clerk, City of Muskegon
33470418.1\063684-00045
MILLER, CANFIELD, PADDOCK AND STONE, P.L.C.
A-1
AGENDA ITEM NO. _______________
CITY COMMISSION MEETING __________________________
TO: Honorable Mayor and City Commissioners
FROM: Frank Peterson, City Manager
DATE: April 17, 2019
RE: LC Walker Arena Restaurant Proposals
SUMMARY OF REQUEST:
Economic Development Staff has reviewed the proposals and made a written recommendation. Staff
is requesting permission to implement the action steps of that recommendation. Staff would return
to a subsequent City Commission meeting to present lease terms for the accepted proposal(s).
FINANCIAL IMPACT:
None.
BUDGET ACTION REQUIRED:
None at this time.
STAFF RECOMMENDATION:
To accept the staff recommendation and authorize staff to implement the action steps.
COMMITTEE RECOMMENDATION:
LC WALKER ARENA RESTAURANT
RFP Follow Clarification Points
Responses Due: April 15, 2019
CONDITION OF TENANT SPACE
The City proposes that the tenant will take the space in an “as-is” condition. The City intends to
make no improvements to the interior or exterior of the proposed tenant area. The tenant will be
responsible for all costs associated with converting the space from its current condition to the form
necessary to operate tenant’s business, including bringing all utilities into the space.
If you are proposing a deviation from the proposed owner investment, please provide your
proposed alternative.
Note: all tenant construction must meet the requirements of a Type I-B structure, as per the
Michigan Building Code.
BASE RENT
The City proposes a base rent centered on a per-square-foot basis. Both interior and exterior space
will be subject to the proposed rental rate. The City’s rent proposal is as follows:
LEASE SPACE (SF) INDOOR OUTDOOR
1,000 OR LESS $12/sf $.75/sf
1,001 TO 1,750 $10/sf $.75/sf
1,751+ $8/sf $1.25/sf
If you are requesting a deviation from the above base rent, please provide your proposed
alternative.
LIQUOR LICENSE
The City prefers to attract a tenant that uses a liquor license that does not create a conflict with the
current Class C license in place at the arena. Please describe the type of liquor license under which
your organization will operate. Please describe how your alcohol sales will function in relation to
the arena’s existing Class C License.
PROPOSED MENU
Please provide a tentative menu with anticipated pricing for both food and beverage items. Provide
a minimum of five food and five drink samples. If your group is proposing any specialty drink or food
items, please include those.
EQUAL OPPORTUNITY
Please provide the completed EEO questionnaire previously emailed to your attention by the City’s
Affirmative Action Coordinator. Please also provide EEO information related to your ownership and
investment group.
COMPANY: DOCKERS DATE: 4/9/2019 Affirmative Action Director
(EEO-1)IFT - REPORT
ADDRESS 3505 Marina View Pt.
CONTACT: Andrew Harris Phone: 231-578-2641 Email: andrew@dockersmuskegon.com
Phone:
Total Employees: 78
WHITE BLACK/ AFRICAN HISPANIC/ AMERICAN INDIAN/ NATIVE HAWAIIAN/ TWO OR MORE
CAUCASIAN AMERICAN LATINO ALASKAN NATIVE PACIFIC ISLANDER ASIAN RACES
JOB CLASSIFICATION TOTALS MALE FEMALE MALE FEMALE MALE FEMALE MALE FEMALE MALE FEMALE MALE FEMALE MALE FEMALE
CHEF 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0
SOUS CHEF 1 0 0 1 0 0 0 0 0 0 0 0 0 0 0
LINE COOK 12 3 0 5 1 1 1 0 0 0 0 0 0 1 0
PREP COOK 4 0 0 3 0 1 0 0 0 0 0 0 0 0 0
EXPO 11 8 2 1 0 0 0 0 0 0 0 0 0 0 0
DISHWASHER 6 1 0 4 1 0 0 0 0 0 0 0 0 0 0
BARTENDER 6 1 3 0 0 1 0 1 0 0 0 0 0 0 0
MANAGER 3 1 0 0 1 0 0 0 0 0 0 0 0 0 1
HOSTESS/HOST 7 0 7 0 0 0 0 0 0 0 0 0 0 0 0
SERVER 27 9 17 0 1 0 0 0 0 0 0 0 0 0 0
TOTALS 78 24 29 14 4 3 1 1 1 1
Total Caucasian # 53 68%
Total Minorities # 25 32%
Male # 43 55%
Female #35 45%
LC WALKER ARENA RESTAURANT
RFP FOLLOWUP CLARIFICATION POINTS
DATE: APRIL 15TH, 2019
SUBMITTED BY:
ANDREW HARRIS
231.578.2641
CONDITION OF TENANT SPACE
We agree as tenants to take the space as an “as is” condition after the city
completes the demo, and relocation of the existing bathrooms. We have secured
funding to build out the space for the purposes of a full service restaurant and
bar. We will comply with the requirements of the Type I-B structure per the
Michigan Building Code.
BASE RENT
We agree to the rent structure / square foot set by the City to start upon opening
of the new restaurant space.
LIQUOR LICENSE
We will operate under the same Class C License as the LC currently has. Our
intention is operate hand in hand with the same license as the LC. Pricing on
alcoholic beverages will be relative to what the LC concessions prices offer on all
event hours.
PROPOSED MENU
Bar and Grill menu to include:
Cheeseburgers $10 – 12
Fish and Chips $12-14
Soft Pretzles $8 - $9
Chicken Wings $10 - $12
Green Goddess Salad $10 - $12
Bloody Mary $10
Bud Light $4
Coors Light $4
Captain and Coke $5
Tito’s and Soda $5
EQUAL OPPORTUNITY
We have previously submitted the EEO form given by the city last week. If you
require more information on this please let me know.
EEO information relative to our ownership and investment group is as follows.
Andrew Harris majority owner – Caucasian / Male
James Curtis majority owner – Caucasian / Male
Jennifer Harris majority owner – Caucasian / Female
Andrew Price owner – Caucasian / male
Anthony Lambers investor – Black / Male
AGENDA ITEM NO. _______________
CITY COMMISSION MEETING __________________________
TO: Honorable Mayor and City Commissioners
FROM: Frank Peterson, City Manager
DATE: April 18, 2019
RE: Purchase Agreement Extension – 1490 Lakeshore Drive
SUMMARY OF REQUEST:
The City Commission initially entered into a purchase agreement to sell the city-owned property at
1490 Lakeshore Drive. The potential developer has been working with City staff, the DEQ, and
Amoco/BP to resolve the existing environmental issues on the site. The prognosis for an amicable
resolution is good, but it may take a number of years. As such, staff is seeking a five year extension
to the original agreement.
FINANCIAL IMPACT:
None
BUDGET ACTION REQUIRED:
None at this time.
STAFF RECOMMENDATION:
To authorize the city manager to enter into the extended sales agreement to sell the property at 1490
Lakeshore Drive for $420,000 to Muskegon Harbor Services, LLC.
COMMITTEE RECOMMENDATION:
AGENDA ITEM NO. _______________
CITY COMMISSION MEETING __________________________
TO: Honorable Mayor and City Commissioners
FROM: Frank Peterson, City Manager
DATE: April 18, 2019
RE: Arena Management – Arc Arena Management
SUMMARY OF REQUEST:
Staff is seeking approval with Arc Arena Management to undertake the daily management of the LC
Walker Arena. Matt Gongalski and Arc Arena Management have been managing aspects of the arena
for the past year. With the departure of the previous arena manager, staff is recommending that Arc
be appointed to fill that role.
FINANCIAL IMPACT:
First Year: $57,000
BUDGET ACTION REQUIRED:
None at this time.
STAFF RECOMMENDATION:
To authorize the city manager to enter into the attached agreement with Arc Arena Management to
manage the LC walker Arena.
COMMITTEE RECOMMENDATION:
CITY OF MUSKEGON
OPERATIONS MANAGEMENT CONTRACT
L.C. WALKER ARENA AND CONFERENCE CENTER
This is a Contract, effective April 1, 2019, for the operation, management and promotion
of the L.C. Walker Arena and Conference Center (“Arena”), made between the City of
Muskegon, 933 Terrace Street, Muskegon, Michigan 49440 (“City”) and Arc Arena
Management, 470 West Western Ave, Muskegon, Michigan 49440 (“Manager”).
PURPOSE
This Contract is drawn to afford the management, promotion and maintenance of the
Arena, in accordance and compliance with the requirements of the City, who is the owner of the
Arena.
Therefore, the parties agree as follows:
1. Facilities Covered. City and Manager agree that the “Facilities” covered by this
Contract are as follows:
1.1 The L.C. Walker Arena and Conference Center; and
1.2 The Annex Building; and
1.2 The City owned parking facilities adjacent to Shoreline Drive.
2. Management; Operation; Maintenance; Improvements. Manager agrees to
perform all acts for the management, operation, maintenance and improvements of the Arena,
excluding those assumed by WC Hockey LLC pursuant to its sub-lease with City. Manager
responsibilities include but are not limited to all operation of the building and its systems,
complete maintenance thereof, repairs, cleaning and improvements to the building and the
premises necessary for the efficient, timely and full operation thereof. Manager is responsible
for the use of the facilities for all events and functions, including but not limited to, public
skating, shows, trade shows, exhibitions, conventions, athletic events, public performances for
which the Arena is reasonably suited, banquets, food service, meetings and public gatherings.
The essential functions are more fully described in attached Exhibit D.
City shall reimburse Manager on a timely basis any and all reasonable and necessary costs which
are necessary or related to the complete performance of its responsibilities as the Arena.
3. Annex Conference Center. In the event the Annex Conference Center is sublet
to another entity, the facility shall not be included in the above management, operation,
maintenance, and improvement responsibilities of the Manager.
Page 1 of 9
4. Manager’s Level of Performance.
4.1 Manager performance and assumption of the responsibilities undertaken
by this Contract shall be carried out and performed to the mutual
satisfaction of the City and Manager. Manager shall ensure that all
tenants charge reasonable prices and fees for all paid events and from all
paid users, concessionaries and others, which shall be reviewed and
subject to comment by the City. The City and Manager shall not perform
or omit any act so as to jeopardize the Federal or State tax-exempt status
of the facility.
4.2 Manager commits to use its best efforts to maintain a USHL junior hockey
franchise, or equivalent or better hockey team at the Arena.
4.3 Manager commits to use its best efforts to maintain a professional indoor
football franchise at the arena
4.4 Manager commits to use its best efforts to maintain a professional indoor
soccer franchise at the arena
4.5 Manager commits to use its best efforts to maintain a three year-round
food/drink service establishments at the arena
4.6 Manager commits to use its best efforts to maximize ice rental income at
the arena, with a focus on youth hockey, adult hockey, and figure skating.
4.7 Manager commits to use its best efforts to host financially successful
concerts and other similar spectator events at the arena.
4.8 Manager commits to use its best efforts to host high school and college
graduations at the arena
5. Management Fee.
5.1 For its services, Manager shall be paid a fixed fee of $4,500 per month.
The fee shall be paid by the City on the last Friday of every month.
Effective October 1, 2019, that fee shall increase to $5,000 per month.
Effective October 1, 2020, the fee shall increase to $5,800 per month, and
that rate shall stay in effect for the term of this Contract.
5.2 Upon mutual agreement between the City and Manager, the Manager may
from time-to-time oversee construction projects within the facility. In
doing so, manager shall be entitled to a construction management fee
equal to 10% of the construction costs, minus architectural and
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engineering costs. All construction projects shall follow the City’s
purchasing policies, as approved by the City Commission.
5.3 Manager shall be entitled to an annual bonus from the City. The annual
bonus shall be determined as follows:
5.3.1 If the Arena’s net profits exceeds $50,000, the City shall pay 15%
of the net profits;
5.3.2 If the Arena’s net profits exceed $175,000, the City shall pay
17.5% of the net profits;
5.3.3 If the Arena’s net profits exceed $275,000, the City shall pay 20%
of the net profits; and
5.3.4 If the Arena’s net profits exceed $500,000, the City shall pay 25%
of the net profits.
5.3.5 If the Arena’s net profits exceed $750,000, the City shall pay 35%
of the net profits.
Revenues and expenses for determining “net profit” shall be based upon
the period July 1 through June 30. “Net profit” shall include all monies
paid to the City for the L.C. Walker Arena and Conference Center,
including any monies for subleases, sponsorships, and naming rights, less
all expenses incurred by the City for the L.C. Walker Arena and
Conference Center, including any amounts paid to support the professional
sports teams housed at the facility. Expenses shall not include capital
maintenance and capital outlays.
6. Sources of Funds; Gross Revenues. All funds collected by the Manager from
every source, including but not limited to, subleases, ticket sales (after box office account
settlement with unrelated third parties), concession or event rentals or fees, parking fees, refunds,
ticket surcharge, and any other kind of receipt or revenue of any type shall be remitted to the
City.
8 Possession; Termination. The parties agree that possession during the term of
this management Contract remains with the City. Manager shall act as an agent of the City, and
its presence and possession in the Arena is carried entirely on behalf of the City. This Contract
shall not be construed as a lease nor to give Manager any property right whatsoever in the Arena
for any purpose. In the event of lawful termination either before the term of this Contract or at
the end thereof, Manager shall vacate the premises without any notice or necessity of judicial
proceedings.
9. Condition of the Premises and Property. On termination, Manager shall
deliver all the property and the premises to the City in good and useable condition, except for the
effects of ordinary wear and tear. Manager shall be immediately responsible for any repairs
necessary to restore any property, whether real or personal, fixtures or otherwise, to the said
condition.
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11. Term. The term of this Contract shall commence on the effective date and shall
terminate on June 30, 2022. Notwithstanding the foregoing, this Contract may be terminated, at
the City’s option, if the USHL junior hockey franchise is moved from the Arena, unless an
equivalent or better hockey franchise is moved into the Arena.
12. Liquor License. City and Manager intend to be co-licensee on the City’s liquor
license, and any renewals thereof. Manager agrees that the license is to remain in the City of
Muskegon as primary licensee and that no interest in the license shall accrue to Manager except
the right under Michigan Liquor Control Laws and Regulations to operate as a co-licensee.
The parties shall cooperate and take such further action as is necessary and desirable to
comply with any requirements of the Liquor Control Commission. Manager shall be responsible
for all actions and responsibilities under the liquor license.
13. Concessionaires and Independent Contractors; Professional Hockey Team.
Manager shall have the right to enter into contracts with concessionaires and independent
contractors providing subsidiary services to the Arena. The gross proceeds of all such contracts
shall be the City’s.
14. Insurance. Manager shall obtain insurances required by the City in at least the
coverage amounts set forth below. In all the following coverages except workers compensation
insurance, the City shall be named as additional insureds or loss payees, and each policy shall
carry the commitment by the company that no cancellation shall be effective against the City
without thirty (30) days written notice to the City:
14.1 Comprehensive general liability insurance. Manager shall obtain a
comprehensive liability insurance policy through a company licensed to
do business in Michigan and acceptable to the City, carrying limits of at
least $500,000, single limit.
14.2 Vehicle liability insurance. Manager shall carry vehicle liability insurance
for each vehicle owned or leased by it, having liability limits of at least
$500,000.
14.3 Workers compensation insurance. Manager shall carry workers
compensation insurance in the amounts required by state law.
15. Insurance Notices. Cancellation Notice: Workers Compensation Insurance,
Commercial General Liability Insurance and Motor Vehicle Insurance, as described above, shall
include an endorsement stating the following: “It is understood and agreed that, in order to be
effective, thirty (30) days’ Advance Written Notice of Cancellation, Non-Renewal, Reduction
and/or Material Change shall be sent to:
City of Muskegon
Attn: City Manager
933 Terrace Street
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Muskegon, MI 49440
16. Assignment. Manager may not assign this Contract. Any attempted assignment
shall constitute a violation of this Contract and cause immediate termination in the City’s
discretion.
17. General Provisions.
17.1 Corporate Status. Manager warrants that it is a limited liability company
in good standing and is authorized to perform this Contract.
17.2 Equal Employment Opportunity; Discrimination. Manager shall not
discriminate unlawfully against any person in violation of any law or rule
of the City, the County, the State of Michigan or the federal government,
in employment, services or any other respect. Manager shall comply,
including reporting requirements, in each and every way with the City’s
and County’s affirmative action plans or policies, and shall never
discriminate against any person based on race or any other protected status
under the laws of the State or the United States.
17.3 Access. The City shall have reasonable access to the facility at all times to
monitor compliance with this agreement.
18. Defaults. The following events shall constitute defaults by Manager and
constitute cause for immediate termination of this Contract:
18.1 Violation of any of the provisions of this Contract by Manager and failure
to remedy or cure such within thirty (30) days after written notice of such
violation from the City;
18.2 The commission of any act or omission that endangers the Federal or State
tax-exempt status of the Muskegon County Building Authority Bonds;
18.3 The making of an assignment for the benefit of creditors or the filing of a
petition under any section or chapter of the Federal Bankruptcy Code or
under any similar law or statute of the United States or any state thereof;
18.4 Adjudication of Manager as a bankrupt or insolvent in proceedings filed
against Manager under any section or chapter of the Federal Bankruptcy
Code or under any similar law or statute of the United States or any state
thereof without further possibility of appeal or review;
18.5 The appointment of a receiver for all or substantially all of the assets of
Manager and the failure to have such receiver discharged within thirty
(30) days after appointment; and
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18.6 The bringing of any legal action against Manager by any creditor resulting
in litigation which, in the opinion of the City, creates a real and substantial
risk of involvement of the Arena that will probably: (1) act to their
financial detriment; or, (2) result in such creditor, or his assigns,
succeeding in or to all or part of the interest of the City.
19. Non-Waiver. Failure to enforce any remedy for a breach or a violation of this
Contract shall not constitute waiver of subsequent breaches or violations.
20. Remedies. In the event the City breaches this Contract in any way, or the
Manager determines that a breach or failure to observe any covenant or condition by the City has
occurred, the sole remedy shall be termination of this Contract. Manager shall not be entitled to
any damages for breach of contract, or to any injunctive relief to enforce this Contract. In the
event there are sums legally due to Manager at the time of such termination it shall be paid
forthwith, but no consequential damage or damages for breach shall be awarded or available to
Manager.
22. Counterparts. This Contract may be executed in counterparts, and each set of
duly delivered identical counterparts that includes all signatories shall be deemed to be one
original document.
23. Governing Law. This Contract shall be construed and enforced in accordance
with the laws of the State of Michigan applicable to contracts made and to be performed within
the State of Michigan.
24. No Third Party Beneficiary. This Contract shall benefit only the parties to this
Contract, and not any third party.
25. Notices. All notices, approvals, consents and other communications required
under this Contract shall be in writing and, except when receipt is required to start the running of
a period of time, shall be deemed given: (i) when delivered in person; (ii) when sent by telephone
facsimile or e-mail, (the sender shall also mail or send a “hard copy” following the facsimile or
e-mail, however the notice shall be effective upon the transmission of the facsimile or e-mail);
(iii) one (1) day after depositing in the custody of a nationally-recognized receipted overnight
delivery service with delivery fees prepaid; or, (iv) two (2) days after posting in the United States
Mail, first class. Notices shall be sent to the parties as follows:
MANAGER LLC
Attn: Matt Gongalski
470 West Western
Muskegon, MI 49440
CITY OF MUSKEGON
Attn: City Manager
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933 Terrace Street
Muskegon, MI 49440
26. Binding and Benefit. Although this Operations Management Contract is not
assignable, in the event assignment occurs, and at the option of the City, it shall be binding upon
the parties, their successors, and assigns.
ARC ARENA MANAGEMENT
By:
Name: Matt Gongalski
Title: Member
Dated: , 2019
CITY –
City of Muskegon
By:
Name: Stephen J. Gawron
Title: Mayor
Dated: , 2019
And
By:
Name: Ann Marie Meisch
Title: Clerk
Dated: , 2019
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EXHIBIT A
SUBLEASE AGREEMENT BETWEEN THE CITY OF MUSKEGON
AND WC HOCKEY, LLC
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EXHIBIT B
ESSENTIAL FUNCTIONS OF THE ARENA MANAGER
• Oversee all operational aspects of LC Walker Arena
• Responsible for operation and maintenance of all mechanical and technical systems in the Arena
• Implementation of policies and procedures as they relate to Arena operations and on-going
review and addition/revisions as necessary.
• Coordination of events at the Arena
• Technical expertise to assist Arena guests with event related needs (AV, computer programs, etc.)
• Maintenance of records as they relate to events and maintenance at the Center
• Active participation in marketing efforts for Center
• In house sales
• Presentations and tours of facility
• Sales calls to potential groups/events managers
• Management of Box Office, Team Store, and Concessions Operations
• Assist with preparation of proposals for the Arena
• Assist in preparation of budget for operations of the Arena
• Event accounting and monthly reporting on the Arena
• Supervision of Arena personnel
• Coordination with facility tenants.
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