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CITY OF MUSKEGON
CITY COMMISSION MEETING
JUNE 25, 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. Pollinator Habitat Update Department of Public Works
□ CITY MANAGER’S REPORT:
□ CONSENT AGENDA:
A. Approval of Minutes City Clerk
B. Zoning Ordinance Amendment – Residential Design Criteria Planning &
Economic Development
C. Peck & Sanford 2-Way Conversion Department of Public Works
D. Sanitation Service Fee Resolution Finance
E. Sewer Rate Adjustment Finance
F. Park Storage Environmental Review Planning & Economic Development
G. Approval of Sale of City Home at 1015 E. Forest Avenue Community &
Neighborhood Services
□ PUBLIC HEARINGS:
A. Establishment of a Commercial Rehabilitation District – 292 W. Western
Avenue Planning & Economic Development
B. Issuance of a Commercial Facilities Exemption Certificate – Sweetwater
Development, LLC Planning & Economic Development
Page 1 of 2
C. Request to Create a new Neighborhood Enterprise Zone District at 292 W
Western Ave Planning & Economic Development
D. Transmittal of 2019-20 Proposed Budget City Manager
https://www.muskegon-mi.gov/2019-20-budget-and-quarterly-reforecast/
□ COMMUNICATIONS:
□ UNFINISHED BUSINESS:
□ NEW BUSINESS:
A. Concurrence with the Housing Board of Appeals Notice and Order to
Demolish Public Safety
1619 Superior
1285 Eighth Street
769 Catawba Avenue
B. Approval of Midtown Square 2 Construction Contacts Planning &
Economic Development
C. BoomTown Market Economic Development Revolving Loan Fund
Application Planning & Economic Development
D. Ordinance – Operation of Electric Scooters & Electric Bikes Public
Safety
E. Convention Center Resolution and Agreements City Manager
F. Request for Final Planned Unit Development (PUD) Approval Including
Street Vacations – The Docks Planning & Economic Development
□ 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:
□ 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 2 of 2
Memorandum
To: Mayor and Commissioners
From: Frank Peterson
Re: City Commission Meeting
Date: June 25, 2019
Here is a quick outline of the items on our agendas:
Regular Session:
1. Under Presentations, we will hear from DPW staff on the pollinator program.
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. An ordinance amending the single-family and duplex home design criteria to allow
for the construction of smaller houses throughout the city. The change will
specifically allow for reductions in the minimum living space requirements. The
minimum be 850 square feet (11% smaller than before) for one-bedroom units.
The minimum for a two-bedroom unit will be 950 square feet, and the minimum
for a three-bedroom unit will be 1,050 square feet. The change also allows homes
to be narrower – fitting our 33-foot lots better.
c. Approval of the lowest responsible bid to convert Peck Street and Sanford Street
to two-way traffic.
d. Approval of a resolution setting the monthly sanitation fee at $2.00 per month.
The fee will generate an estimated $318,000 to offset the cost of refuse and
recycling collections.
e. Approval of a sewer rate adjustment. This is necessary to properly capitalize all of
the necessary capital improvement projects currently underway.
f. Approval to expend $16,865 to complete the environmental review at the park
Street Storage site. The purpose of the review is to better-understand the
environmental issues (if any) that exist on the site as we prepare to put the site
back into productive use. The city owns the property, and we have completed the
demolition.
3. Public Hearings:
a. Establishment of a commercial facilities exemption certificate at 292 West
Western Avenue.
b. Issuance of a commercial facilities exemption certificate to Sweetwater
Development, LLC (The Leonard Building).
c. Creation of an NEZ district for 292 West Western Ave (We will take no action after
the hearing).
d. Transmittal of 2019-20 Proposed Budget.
4. New Business
a. Concurrence with the housing board of appeals decision to demolish three
structures.
b. Approval of the construction contracts with West Urban, LLC to complete the
second phase of the Midtown Square development. After many months of work,
we are prepared to move forward with Mid-Town Square Phase Two. The project
includes 10 attached single-family townhomes and six detached single-family
homes – for 16 total units. The project will cost a total of $2,999,230, which is
$187,451 per unit. The custom home contracts include ALL COSTS – including fees
paid to the general contractor and sub-contractors, all necessary permits, and all
sales commissions. Of the $2,999,230 in total costs, we have dedicated
approximately $170,000 to real estate commissions. Absent real estate
commissions, the actual construction costs are $176,826 per unit. Staff is seeking
approval of the seven attached contracts. One contract will be cover the entire
townhome portion of the project, while each of the six detached homes will have
an individual contract. This will allow all of the townhouses to be finished to the
same level/décor, but allow for some design variation among the detached
homes. Below is a list of addresses where staff is recommending construction the
units:
i. 235, 239, 240, 250 Monroe (10 units of townhouses)
ii. 219 Merrill (one detached unit)
iii. 1261 5th Street (one detached unit)
iv. 395 Houston (two detached units)
v. 271 Merrill (two detached units)
c. Approval of a Revolving Loan Agreement with Boomtown Market. The loan is for
$55,000 and the interest rate is set at prime plus 2% over a five-year term. We
are seeking approval of the application and authorization to finalize a loan
agreement with the City Attorney’s office.
d. Approval of an ordinance regulating the operation of electric scooters and electric
bikes. This issue came to our attention after a Western Market vendor had
problems operating his Segway tour business last summer. Our local rules did not
allow for the operation of his equipment on the city streets, sidewalks, or the bike
path. The Public Safety Department has worked with the City Attorney’s office to
develop the attached ordinance to allow the devices on city streets, pike paths,
and in parks. The devices cannot be operate don sidewalks or on the state
trunklines.
e. Convention Center. We are seeking approval of the three attached items:
1. Resolution authorizing the issuance of 2019 Capital Improvement Bonds.
This will allow us to issue (up to) $20,000,000 in bonds with a repayment
of (up to) 30 years. We expect to have the final agreements related to the
development of convention center and reimbursements from the county
at the next scheduled City Commission meeting.
2. Amendment to the Development Agreement between the City, County,
and Parkland
3. Accommodations Tax Allocation Agreement between the City and County
obligating the County to commit accommodation taxes to fund the
convention center’s debt.
f. Approval of The Docks Planned Unit Development and corresponding vacation of
several un-improved streets within the Edgewater Platt, as well as a cul-de-sac and
a portion of Edgewater Street. The PUD was approved at the Planning Commission
8-1, and the vacations were approved 9-0.
Let me know if you have any questions/comments/concerns
Frank
Date: June 25th, 2019
To: Honorable Mayor and City Commissioners
From: Department of Public Works
RE: Pollinator Habitat Update
Summary of Topic
Update on progress to date and planned next steps relative to the Urban Pollinator Habitat
Conservation and Preservation Plan.
Completed Work To Date
In 2018 and 2019 a number of plantings were completed that will help support future pollinator
habitat within the city. Several of those plantings fulfilled specific goals outlined within the plan
while others were undertaken with the same frame of mind but at previously unidentified areas of
opportunity.
2018 Completed Projects:
McGraft Park – 14 Redbuds were planted along the main entryway to McGraft Park.
Redbuds as a species and McGraft Park as an area were not specifically identified in the plan
however the area presented itself as an opportunity in partnership with the parking lot project
undertaken the same year.
Marquette Avenue – A mix of 10 Crabapple and Red Horse-Chestnut were planted along
Marquette Avenue in the area where many of the terrace trees were lost during the work
completed by Consumers Energy. The smaller crabapple trees can be planted under power
lines as their maximum heights don’t conflict with the overhead lines.
Hackley Avenue – A mix of 16 Crabapple, Japanese Tree Lilac, Cherry Plum, and Green
Hawthorn were planted along Hackley Avenue from Barclay heading to the west. The area of
the planting was hard hit by emerald ash borer. Though not specifically identified in the plan
the species are all good supporters of pollinators and the area was in need of reforesting due to
the loss of the ash trees.
2019 Completed Projects:
Richards Park – 50 trees were planted in partnership with Muskegon Rotary on Arbor Day
2019. The City of Muskegon provided the trees and supported the volunteers in the planting.
The area targeted for planting was in a little used portion of the park away traffic that has
already been part of the plan for reduced mowing and pesticide use. The trees planted
(Northern Catalpa, Cockspur Hawthorn, Tupelo, and American Basswood) are all supportive
of pollinator habitat will provide a good compliment to the wildflowers and grasslands.
East Glade Street – 30 trees were planted along Glade Street near Southern Avenue in
partnership with WMSRDC as a part of a larger project that saw well over 100 trees planted in
2019. The area was not specifically identified in the pollinator plan but does fall between a
couple of identified areas along Seaway/Shoreline Drive. The species planted in this
particular area (Crabapple, Nannyberry, Apple Serviceberry, Redbuds, and Flowering
Dogwood) are all supportive of the urban pollinator habitat.
Parks and highway staff have worked together on a plan to reduce mowing in a few identified
areas which will help support native wildflower and grassland growth, while reducing
maintenance costs. The areas targeting for reduced mowing in 2019 are at the Grand Trunk
Boat Launch and at Hartshorn Point. Both of these areas were identified in the plan. In these
areas crews will continue to mow a maintenance strip next to paved and gravel surfaces. In
areas beyond the maintenance strip mowing will be reduced to once a year. The yearly
mowing will help prevent woody species from taking over and allow for improved wildflower
and grassland habitat.
Upcoming Projects:
Lakeshore Drive – The project work along Lakeshore Drive from Laketon to McCracken
required the removal of one (1) tree, a dead ash tree near the fire station. Once completed the
project will plant well over 100 new trees along along a section of roadway right-of-way that
was largely devoid of trees. In addition several of the intersections in the stretch from Moon
to Torrent will have planter beds installed with a variety of flowers and grasses.
3rd Street – Another section of roadway that is largely devoid of trees and landscaping will
receive six (6) new trees along with five (5) large planter beds that will provide new habitat
and color to an area that previously had none.
In partnership with MDOT parks and highway staff are in the process of working with MDOT
to reduce mowing along several sections of Seaway Drive and Moses Jones Parkway. Similar
to the work we are undertaking at Grand Trunk and Hartshorn Point the intention would be to
reduce mowing to only maintain a small maintenance strip in many areas and mow the
remainder of the areas once a year. The unmowed areas could be considered for future
wildflower plantings or left to volunteer growth.
Commissioner Warren will had a booth set up at the Farmers Market on Saturday, June 22nd.
She provided free packages of wildflower seed packets as well as information on the
pollinator program here in Muskegon. Approximately 150 seed packets were given away at
the event.
Pollinator Habitat signage will be deployed to help provide input on why we are undertaking
less mowing in areas that have traditionally been mowed.
Date: June 17, 2019
To: Honorable Mayor and City Commissioners
From: Ann Marie Meisch, City Clerk
RE: Approval of Minutes
SUMMARY OF REQUEST: To approve the minutes of the June 6, 2019
Budget Meeting, June 10, 2019 Worksession, June 11, 2019 Regular Meeting.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval of the minutes.
CITY OF MUSKEGON
CITY COMMISSION WORKSESSION
Thursday, June 6, 2019
5:30 p.m.
Special Budget Worksession Meeting
City Commission Chambers
MINUTES
2019-45
Present: Mayor Gawron, Commissioners Turnquist, Warren, Hood, Johnson, German, and
Rinsema-Sybenga.
Absent: None.
Public Participation
Received.
Budget
The City Manager gave a general overview of the proposed 2019/20 budget. After a general
overview was given, the City Manager did review each fund line-item by line-item and accepted
questions of the City Commission.
Adjourn at 8:30
Respectfully Submitted,
Ann Marie Meisch, MMC – City Clerk
CITY OF MUSKEGON
CITY COMMISSION WORKSESSION
Thursday, June 10, 2019
5:30 p.m.
Worksession Meeting
City Commission Chambers
MINUTES
2019-46
Present: Mayor Gawron, Commissioners Turnquist, Warren, Hood, Johnson, German, and
Rinsema-Sybenga.
Absent: None.
Mid-Town Square Phase Two
Staff is proposing to use our $3,000,000 loan to develop Midtown Square II along with up to
eight other new homes in close proximity. Dave Dussendang’s proposal for Midtown Square II
anticipated construction cost to be around $155,000 per unit, however, with construction costs
rising, we can probably assume they could be closer to $165,000 per unit. This would allow for
the construction of 10 rowhouses at the Midtown Square II location and up to eight other homes
located within the boundaries of our Nelson Neighborhood Infill Development Brownfield. A
detailed map depicting staff’s recommended lots to start with along with the number of units that
could go on each lot.
Froebel School
A timeline for the possible sale of Froebel School was presented to City Commission. The
timeline was submitted by Melching. Mike Franzak, Planning Director, indicated Melching is
interested in preserving the building for possible housing.
Mike Oliver gave an overview of his vision for the building indicating he has a passion for
historic buildings.
Update Parks and Streets Plan
A plan was submitted for a requested millage for local street improvements and parks. The
overall expense summary is $26,226.986 with a breakdown of a proposed millage rate of 10
years at 5.21%, 15 years at 3.73, and 20 years with a 2.99% millage rate.
Recreational Marihuana
Mike Franzak, Planning Director, gave an overview of the options that Commission has.
Municipalities will not be receiving a sales tax percentage for medical marihuana. Percentages
will only be given to municipalities offering recreational marihuana.
Options are:
Take no action and the municipality is automatically in. The State will issue a license to anyone
as long as they are not within 1000 feet of schools or in a residential district.
The City may choose to opt-out.
The City may choose to opt in and regulate what areas it is allowed in.
Commissioners do need to make a decision before the end of the year.
Greg Maki, 420 Causeway, owner of dispensary at 1922 Park Street, is hoping the City will opt
into recreational marihuana.
Aaron Smith, 410 Causeway, need to look at parking and traffic patterns when looking at
approved locations.
Diversity, Equity and Inclusion - Michigan Department of Civil Rights
A proposal was received from the Michigan Department of Civil Rights for Diversity, Equity and
Inclusion training solutions for Commissioners and employees. The cost of the program is
$8,790.
Civil Service
Civil Service is proposing putting a question on the ballot to eliminate the rule of three. Currently
the rule of three allows only the top three candidates to be interviewed for a position. By
eliminating the rule of three, all qualified candidates may be interviewed and considered for a
position.
880 First Street- Ameribank Building Update
Staff is seeking approval to publicize a request for proposals for redevelopment of 880 First
Street because the previous developer has withdrawn his purchase option agreement.
Commission Rules
The Mayor is exploring different options and has reached out to other municipalities to gather
more information. He indicated he wants to place this on a Legislative Policy meeting in July.
Adjourn at 9:13 pm.
Respectfully Submitted,
Ann Marie Meisch, MMC – City Clerk
CITY OF MUSKEGON
CITY COMMISSION MEETING
JUNE 11, 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, June 11, 2019, Pastor Tim
Cross, Living Word 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, Dan Rinsema-Sybenga, and Willie
German, Jr., City Manager Frank Peterson, City Attorney John Schrier, and City
Clerk Ann Meisch.
HONORS AND AWARDS:
A. Recognition of Spring 2019 Citizen’s Academy Graduates Public Safety
Mayor, Stephen J. Gawron, read the resolution and thanked the 2018 Citizen’s
Police Academy for their faithful attendance, completion, and graduation from
the ten week academy.
2019-47 CONSENT AGENDA:
A. Approval of Minutes City Clerk
SUMMARY OF REQUEST: To approve the May 28, 2019 Regular Meeting minutes.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Approval of the minutes.
C. Consideration of Bids for H91843 Third Street, Merrill to Muskegon
DPW-Engineering
SUMMARY OF REQUEST: To award the project to Jackson-Merkey Contracting,
Inc. since they were the lowest responsible bidder with a total bid price of
$825,867.05.
Three (3) bids were submitted for this project as follows:
Page 1 of 5
Jackson-Merkey $825,867.05
K&R, Inc. $857,061.35
McCorMick Sand $882,088.75
FINANCIAL IMPACT: $825,867.05
BUDGET ACTION REQUIRED: Project is included in the 19/20 Capital Budget.
Reforecast may be needed to address final project cost.
STAFF RECOMMENDATION: Award the contract to Jackson-Merkey
Contractors, Inc.
D. Electrical System Upgrades Design and Construction Services
DPW-Filtration
SUMMARY OF REQUEST: Authorize staff to enter into a professional services
agreement for Electrical System Upgrades Design and Construction Services at
Water Filtration Plan with Tetra Tech per their proposal for $13,000.
Tetra Tech is being recommended since they were the engineer for the control
systems upgrades project and their familiarity with the filtration plant.
FINANCIAL IMPACT: $13,000
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Authorize staff to enter into an agreement with
Tetra Tech for a cost of $13,000.
E. Fence at Elevated Tanks DPW – Filtration
SUMMARY OF REQUEST: Authorize staff to enter into a fence installation
agreement with Fence Consultants since they submitted the responsible bid of
$43,050 that meets the RFP requirements.
Two bids were submitted and only one bid meets the RFP requirements.
FINANCIAL IMPACT: $43,050
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Authorize staff to enter into an agreement with
Fence Consultants for a cost of $43,050.
F. City Hall Air Conditioners Department of Public Works
SUMMARY OF REQUEST: Authorize staff to contract with Jewitt Heating and
Cooling for the replacement of four (4) air conditioners at City hall in the
amount of $13,832.50.
Three firms were contacted for bids as follows:
Jewitt Heating and Cooling $13,832.50
Boardwell Mechanical Services $19,500.00
Page 2 of 5
American Mechanical Services Declined to Bid
FINANCIAL IMPACT: $13,832.50
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Authorize staff to contract with Jewitt Heating
and Cooling for the air conditioner replacements.
G. Repayment of Reimbursement Agreement on Parcel O at Harbour 31
Finance
SUMMARY OF REQUEST: In 2008 Dan Henderickson & Viridian Properties signed a
reimbursement agreement with the City to use $250,000 of a $500,000 MDEQ
loan the City had secured. Currently there is an outstanding invoice of
$18,554.93 and a principal balance of $33,942.83 owing on this reimbursement
agreement. A development group is in the process of purchasing two lakefront
parcels from the current owners, Muskegon Lakefront, LLC. To ensure this
purchase goes through the developers have agreed to pay the $33,942.82
principal balance owed if the city is willing to write off the invoice of $18,554.93.
This new developer is currently in negotiations to purchase one other parcel at
the Harbour 31 site, once that is completed they are ready to announce their
plans for the site. The City should be able to recoup our costs from Brownfield
capture.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To approve the write off of invoice 17-00004744 in
the amount of $18,554.93.
H. CDBG Program Administration Agreement – City of Muskegon/City of
Norton Shores Planning & Economic Development
SUMMARY OF REQUEST: The City of Muskegon has contracted with the City of
Norton Shores to administer their Community Development Block Grant (CDBG)
program since 2006. The current Agreement concludes on June 30, 2019. The
new Agreement extends for two years (through June 30, 2021).
FINANCIAL IMPACT: The City of Norton Shores will pay the maximum
allowable CDBG costs per program year to the City of Muskegon, minus $1,000
to administer their CDBG program.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To approve the Agreement and authorize the
Mayor and Clerk to sign.
I. 880 First Street RFP Economic Development
SUMMARY OF REQUEST: Staff is seeking approval to publicize the Request for
Page 3 of 5
Proposals for redevelopment of 880 First Street as presented.
FINANCIAL IMPACT: None at this time.
BUDGET ACTION REQUIRED: None at this time.
STAFF RECOMMENDATION: To authorize the release and publication of the
Request for Proposals as presented.
J. Administrative Vehicle Leases City Manager
SUMMARY OF REQUEST: Staff is seeking approval to lease two GMC Acadia
sport utility vehicles from Betten Baker Muskegon.
FINANCIAL IMPACT: $18,922 per vehicle
BUDGET ACTION REQUIRED: None at this time.
STAFF RECOMMENDATION: To authorize staff to execute the leases consistent
with the provided term sheet.
K. Youth Hockey Director City Manager
SUMMARY OF REQUEST: Staff is seeking approval of an Agreement with Bill
Zalba to serve as the Youth Hockey Director at the LC Walker Arena.
FINANCIAL IMPACT: None at this time.
BUDGET ACTION REQUIRED: None at this time.
STAFF RECOMMENDATION: To authorize staff to execute the agreement.
L. Community Relations Committee Recommendations City Clerk
SUMMARY OF REQUEST: To accept resignations and appointment as follows:
Accept the resignations of Teresa Emory from the Citizens Police Review Board
and William Krick from the Housing Code Board of Appeals.
Accept the appointment of Kim Burr to the Citizen position on the Housing Code
Board of Appeals.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To concur with the recommendations of the
Community Relations Committee and approve the resignations and
appointment.
Motion by Commissioner Warren, second by Commissioner German, to approve
the consent agenda as presented, except item B.
ROLL VOTE: Ayes: Rinsema-Sybenga, Turnquist, Johnson, Gawron, Hood,
Warren, and German
Nays: None
Page 4 of 5
MOTION PASSES
2019-48 REMOVED FROM CONSENT AGENDA:
B. Establish Business Development Manager Position
Planning Department
SUMMARY OF REQUEST: Approve the establishment of a position for a Business
Development Manager and hire Dave Alexander for the position. The purpose
of the position is to develop the city’s commercial districts through attraction of
investment, supporting of existing businesses, assistance with events, and
promotion of the City. The manager will serve as staff liaison to the Downtown
Development Authority, the Downtown Muskegon Business Improvement District,
the Downtown Muskegon Development Corporation, and the Lakeside Business
District.
Now that our Downtown Development Authority has steady income, there is a
duplication of efforts between the DDA and Downtown Muskegon Now. Both
boards have agreed to combine, and the DMN board will be dissolved on June
30, 2019. Dave’s work to promote downtown will continue as a city employee.
FINANCIAL IMPACT:
BUDGET ACTION REQUIRED:
STAFF RECOMMENDATION: Approve the new position and appoint Dave
Alexander to fill it.
Motion by Commissioner Johnson, second by Commissioner Rinsema-Sybenga,
to approve the new position and appoint Dave Alexander to fill it.
ROLL VOTE: Ayes: Turnquist, Johnson, Gawron, Hood, Warren, German, and
Rinsema-Sybenga
Nays: None
MOTION PASSES
PUBLIC PARTICIPATION: Public Comments were received.
ADJOURNMENT: The City Commission meeting adjourned at 6:00 p.m.
Respectfully Submitted,
Ann Marie Meisch, MMC – City Clerk
Page 5 of 5
Commission Meeting Date: June 25, 2019
Date: June 20, 2019
To: Honorable Mayor and City Commissioners
From: Planning & Economic Development
RE: Zoning Ordinance Amendment – Residential Design Criteria
SUMMARY OF REQUEST:
Staff initiated request to amend section 2319 of the zoning ordinance to reduce the
minimum living space requirement for single-family and duplex homes.
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 at their
June 13 meeting.
PLANNING COMMISSION EXCERPT
SUMMARY
1. Staff is recommending to amend the residential design section of the zoning ordinance to allow for
smaller single-family and duplex homes. Homes are now trending smaller across the country and
many of the recently proposed homes in Muskegon have had difficulty meeting the current standards.
Reduced minimum size and storage standards will also help the City meet our visitibility and
livability goals as well as reduce the overall home prices, which will create a more diverse housing
stock. Other parts of the ordinance were removed because they no longer apply (Historic zoning,
front and rear setbacks).
2. Please see the enclosed “Proposed Revisions to Residential Requirements” document.
CITY OF MUSKEGON
MUSKEGON COUNTY, MICHIGAN
ORDINANCE NO._____
An ordinance to amend Section 2319 of the zoning ordinance to amend the standards.
THE CITY COMMISSION OF THE CITY OF MUSKEGON HEREBY ORDAINS:
(Deletions are crossed out, additions are in bold)
Setbacks (Single-Family):
Street Frontage = 50 feet minimum
Front = (Expressway & Arterial Streets) = 30 feet
(Major & Collector Streets) = 25 feet
(Minor Streets) = 15 feet
Minimum front setbacks for new principal structures in the R-1, R-2, R-3 and RT, B-3, and H zones,
fronting on minor streets, may align with existing principal structures in the immediate area, even if
the front setback is below the minimum required.
Rear = 30 feet
Side: 1 to 1.5 story = 16 feet total with 6-foot minimum on each side
2 to 2.5 story = 20 feet total with 8-foot minimum on each side
Height Limit = 35 feet measured from average grade to the midpoint of eave & peak of the roof.
Zoning Ordinance Excerpt:
SECTION 2319: [RESIDENTIAL DESIGN CRITERIA] [amended 7/98, amended 4/00, amended 8/01,
amended 4/02, amended 3/05, amended 8/06, amended 3/07]
It is the intent and purpose of this section to establish design review standards and controls over housing
development in the City of Muskegon. It is recognized that there are unique design aspects inherent in the
community appearance that need to be preserved and enhanced. The adoption of these criteria will guide and
ensure that all future growth enhances community character and image and fits with the unique vernacular of
the City of Muskegon's urban setting. A positive community image: enhances economic development
opportunity; safeguards property values; curbs blight and deterioration; and enhances public safety and
welfare. The following standards shall apply to all single-family or duplex structures erected in the City of
Muskegon.
In the case of a one (1) family or two (2) family dwelling unit which is of standard construction, a mobile
home, a pre-manufactured, or a precut dwelling structure, and any additions or alterations thereto, erected or
placed in the City of Muskegon, other than a mobile home located in a licensed mobile home park approved
under the provisions of Article V, MHP Mobile Home Park Districts, shall conform to the following
regulations in addition to all other regulations of this Ordinance:
1. The dwelling unit shall have a minimum living area (excluding all basement area) of nine hundred
and sixty (960) eight hundred and fifty (850) square feet for a one (1) bedroom dwelling. For each
bedroom thereafter, an additional 100 square feet of living space shall be provided.
2. Where the home design involves a roof pitch, it shall be a minimum pitch of 5/12, that is, for every
twelve inches (12”) of lateral run, the roof shall rise five inches (5”). In the case of additions or
alterations to principal structures when a 5/12 pitch is not practical, the roof pitch may be allowed to
correspond with that of the principal structure.
3. The roof shall have a snow load rating of forty (40) pounds per square foot.
4. Roof drainage in the form of a roof overhang of at least twelve inches (12") shall be provided to
direct storm or meltwater way from the foundation, unless a gambrel roof or other design elements
necessitate an alternative roof drainage system.
5. Siding shall be the same gauge for modulars and mobiles as for on-site-built homes.
6. The dwelling unit shall have a minimum width across any front, side, and rear elevation view which
is the lesser of:
a. Twenty-four (24) feet on lots that are at least thirty-five (35) feet wide and Twenty (20)
feet on lots under thirty-five (35) feet wide ; or
b. The average width of the homes on the same street within six hundred (600) feet in either
direction.
7. A structure with a front elevation view of over 40 linear feet shall have a design offset including but
not limited to; bay windows, covered porches, or structural offsets from the principal plane of the
building.
8. Any single-story, residential structure shall not be more than two (2) times longer than its width
(exclusive of an attached garage).
8. Garage doors may not comprise more than fifty percent (50%) of the front face of the structure.
9. Newly constructed homes must be at the average setback of existing homes within 600 feet.
10. The dwelling unit shall be firmly attached to a permanent foundation constructed on the site in
accordance with the building code, manufacturers specifications, and other applicable requirements.
11. Any crawlspace that may exist between the foundation and ground floor of the dwelling unit shall be
fully enclosed by an extension of the foundation wall along the perimeter of the building.
12. If the dwelling is a mobile home, as defined herein, such dwelling shall be installed pursuant to the
manufacturer's setup instructions and shall be secured to the premises by an anchoring system or
device complying with the rules and regulations of the Michigan Mobile Home Commission.
13. In the event that a dwelling unit is a mobile home as defined herein, it shall be installed with the wheels
removed. No dwelling unit shall have any exposed towing mechanism, undercarriage or chassis.
14. The dwelling unit shall be connected to a public sewer and water supply when available, as defined by
the Plumbing Code or if not available, to private facilities as approved by the county health
department, the city, and other applicable agencies.
15. Storage space of at least fifteen percent (15%) of the interior living space of the dwelling unit, exclusive
of auto storage or attic storage, shall be provided within the structure onsite.
16. The subject dwelling unit shall be aesthetically compatible in design and appearance with other dwellings
within 600 feet. The review shall include but not necessarily be limited to: roof pitch, scale, size,
mass, minimum transparency, orientation to the street, and overhangs. The foregoing shall not be
construed to prohibit innovative design concepts involving such matters as (but not limited to) solar
energy, view, or unique land contour.
17. The compatibility of design and appearance shall be determined in the first instance by the Zoning
Administrator upon review of the plans submitted for a particular dwelling unit. The Zoning
Administrator's decision may be appealed, to the Zoning Board of Appeals within a period of fifteen
(15) days from the receipt of notice to the official's decision.
18. The dwelling unit shall contain no additions of rooms or other areas which are not constructed with
similar quality workmanship as the original structure, including permanent attachment to the principal
structure and construction of a foundation as required herein.
19. The dwelling unit shall comply with all pertinent building and fire codes. In the case of a mobile home,
all construction and all plumbing, electrical apparatus and insulation within and connected to said
mobile home shall be of a type and quality conforming to the "Mobile Home Construction and Safety
Standards" as promulgated by the United States Department of Housing and Urban Development,
being 24 CFR 3280, and as from time to time such standards may be amended.
20. All construction required herein shall be commenced only after a building permit has been obtained in
accordance with the Building Code.
21. Each dwelling unit shall have an approved established vegetative ground cover, native to the immediate
area within 600 feet, no less than 12 months after occupancy. Approval shall be given by zoning staff
of the Planning Department as part of the initial residential site plan review. A minimum of one
shade tree, two and one-half inches (2.5") in diameter, four feet (4') from the ground or one six foot
(6') evergreen tree shall be provided. Existing landscaping may be accepted in lieu of this
requirement.
22. Each dwelling unit shall have a garage or a shed providing a minimum of sixty-four square feet (64 sq.
ft.) of yard storage for each dwelling unit. Said area shall be calculated separately from the required
interior storage space.
In the case of a multi-family (more than 2 units) dwelling structure which is of standard construction, a
mobile home, a premanufactured, or a precut dwelling structure, and any additions or alterations thereto,
erected or placed in the City of Muskegon, other than a mobile home located in a licensed mobile home park
approved under the provisions of Article V, MHP Mobile Home Park Districts, shall conform to the
following regulations in addition to all other regulations of this Ordinance:
1. Each dwelling unit shall have a minimum living area (excluding all basement area) of six hundred
and fifty (650) square feet for a one (1) bedroom unit, of eight hundred and seventy-five (875) square
feet for a two (2) bedroom unit, and of twelve hundred (1200) square feet for a three (3) bedroom
unit. For each bedroom thereafter, an additional 100 square feet of living space shall be provided.
2. Roof drainage in the form of a roof overhang of at least twelve inches (12") shall be provided to
direct storm or meltwater way from the foundation, unless a gambel roof or other design elements
necessitate an alternative roof drainage system.
3. The roof shall have a snow load rating of forty (40) pounds per square foot.
4. Siding shall be the same gauge for modulars and mobiles as for on-site-built homes.
5. Garage doors may not comprise more than fifty percent (50%) of the front face of the structure.
6. The structure shall be firmly attached to a permanent foundation constructed on the site in accordance
with the building code, manufacturers specifications, and other applicable requirements.
7. Any crawlspace that may exist between the foundation and ground floor of the structure shall be fully
enclosed by an extension of the foundation wall along the perimeter of the building.
8. The structure shall be connected to a public sewer and water supply when available, as defined by the
Plumbing Code or if not available, to private facilities as approved by the county health department,
the city, and other applicable agencies.
9. Storage space of at least 10 percent (10%) of the interior living space of each dwelling unit, exclusive
of auto storage or attic storage, shall be provided within the structure.
10. The subject structure shall be aesthetically compatible in design and appearance with other dwellings
within 600 feet. The review shall include but not necessarily be limited to: roof pitch, scale, size,
mass, minimum transparency, orientation to the street, and overhangs. The foregoing shall not be
construed to prohibit innovative design concepts involving such matters as (but not limited to) solar
energy, view, or unique land contour.
11. The structure shall contain no additions of rooms or other areas which are not constructed with
similar quality workmanship as the original structure, including permanent attachment to the principal
structure and construction of a foundation as required herein.
12. Each dwelling unit shall have an established vegetative ground cover no less than 12 months after
occupancy. A minimum of one shade tree, two and one-half inches (2.5") in diameter, four feet (4')
from the ground or one six foot (6') evergreen tree shall be provided. Existing landscaping may be
accepted in lieu of this requirement.
13. Each dwelling unit shall have a garage or a shed providing a minimum of sixty-four square feet (64
sq. ft.) of yard storage for each dwelling unit. Said area shall be calculated separately from the
required interior storage space.
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
25th day of June 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 June 25, 2019, the City Commission of the City of Muskegon adopted an
ordinance to amend Section 2319 of the zoning ordinance amend the residential design criteria.
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
9
AGENDA ITEM NO. __________
CITY COMMISSION MEETING __
TO: Honorable Mayor and City Commission
FROM: Department of Public Works
DATE: June 25th, 2019
SUBJECT: Peck & Sanford 2-Way Conversion
SUMMARY OF REQUEST:
To Award above referenced project to J. Ranck Electric, Inc. since they were the lowest responsible bidder
with a total bid price of $205,247.10
One (1) bid was received for this project as follows:
J. Ranck Electric, Inc. ....................................$205,247.10
FINANCIAL IMPACT:
$205,247.10
BUDGET ACTION REQUIRED:
None. Project was budgeted in 18-19 reforecast and will be carried forward into 19-20 budget.
STAFF RECOMMENDATION:
Award the contract to J. Ranck Electric, Inc.
BID TABULATION
City of Muskegon Project Engineer: CW Date: 6/18/2019
Engineering Department Project Number: H91859 Peck & Sanford
Project description: TWO WAY CONVERSION
Engineers Estimate J Ranck
Line Item Pay Code Description Units Quantity Unit Price Total Unit Price Total
1 1500001 Mobilization, Max $16,000.00 LSUM 1 $ 7,000.00 $ 7,000.00 $ 16,000.00 $ 16,000.00
2 2040055 Sidewalk, Rem Syd 10 $ 20.00 $ 200.00 $ 20.00 $ 200.00
3 2090001 Project Cleanup LSUM 1 $ 1,000.00 $ 1,000.00 $ 500.00 $ 500.00
4 8030044 Sidewalk, Conc, 4 inch Sft 90 $ 5.00 $ 450.00
$ 20.00 $ 1,800.00
5 8100280 Fdn, Wood Support, Rem Ea 1 $ 100.00 $ 100.00 $ 200.00 $ 200.00
6 8100340 Post Hole Through Conc for Steel Post Ea 7 $ 100.00 $ 700.00 $ 50.00 $ 350.00
7 8100371 Post, Steel, 3 lb Ft 1042 $ 5.50 $ 5,731.00 $ 6.00 $ 6,252.00
8 8100404 Sign, Type IIIA Sft 76 $ 15.00 $ 1,140.00 $ 16.00 $ 1,216.00
9 8100405 Sign, Type IIIB Sft 328 $ 15.00 $ 4,920.00 $ 17.00 $ 5,576.00
10 8100616 Reflective Panel for Permanent Sign Support, 6 foot Ea 65 $ 30.00 $ 1,950.00 $ 35.00 $ 2,275.00
11 8107050 _Sign, Type III, Erect, Salv, Modified Ea 35 $ 100.00 $ 3,500.00 $ 35.00 $ 1,225.00
12 8107050 _Sign, Type III, Rem, Modified Ea 126 $ 50.00 $ 6,300.00 $ 25.00 $ 3,150.00
13 8110024 Pavt Mrkg, Ovly Cold Plastic, 6 inch, Crosswalk Ft 960 $ 2.50 $ 2,400.00 $ 2.50 $ 2,400.00
14 8110040 Pavt Mrkg, Ovly Cold Plastic, 12 inch, Cross Hatching, Yellow Ft 130 $ 5.00 $ 650.00
$ 4.75 $ 617.50
15 8110044 Pavt Mrkg, Ovly Cold Plastic, 18 inch, Stop Bar Ft 403 $ 8.00 $ 3,224.00 $ 6.00 $ 2,418.00
16 8110063 Pavt Mrkg, Ovly Cold Plastic, Lt Turn Arrow Sym Ea 20 $ 125.00 $ 2,500.00 $ 150.00 $ 3,000.00
17 8110068 Pavt Mrkg, Ovly Cold Plastic, Only Ea 4 $ 150.00 $ 600.00 $ 150.00 $ 600.00
18 8110071 Pavt Mrkg, Ovly Cold Plastic, Rt Turn Arrow Sym Ea 1 $ 150.00 $ 150.00 $ 150.00 $ 150.00
19 8110077 Pavt Mrkg, Ovly Cold Plastic, Thru and Rt Turn Arrow Sym Ea 1 $ 150.00 $ 150.00 $ 250.00 $ 250.00
20 8110231 Pavt Mrkg, Waterborne, 4 inch, White Ft 1010 $ 0.50 $ 505.00
$ 0.15 $ 151.50
21 8110232 Pavt Mrkg, Waterborne, 4 inch, Yellow Ft 29439 $ 0.50 $ 14,719.50
$ 0.15 $ 4,415.85
22 8110233 Pavt Mrkg, Waterborne, 6 inch, White Ft 22365 $ 0.60 $ 13,419.00
$ 0.15 $ 3,354.75
23 8110343 Rem Spec Mrkg Sft 525 $ 2.00 $ 1,050.00 $ 2.50 $ 1,312.50
24 8120012 Barricade, Type III, High Intensity, Double Sided, Lighted, Furn Ea 2 $ 100.00 $ 200.00 $ 70.00 $ 140.00
25 8120013 Barricade, Type III, High Intensity, Double Sided, Lighted, Oper Ea 2 $ 50.00 $ 100.00 $ 5.00 $ 10.00
26 8120022 Barricade, Type III, High Intensity, Lighted, Furn Ea 32 $ 60.00 $ 1,920.00 $ 70.00 $ 2,240.00
27 8120023 Barricade, Type III, High Intensity, Lighted, Oper Ea 32 $ 5.00 $ 160.00
$ 5.00 $ 160.00
28 8120140 Lighted Arrow, Type C, Furn Ea 2 $ 1,200.00 $ 2,400.00 $ 400.00 $ 800.00
29 8120141 Lighted Arrow, Type C, Oper Ea 2 $ 50.00 $ 100.00 $ 100.00 $ 200.00
30 8120170 Minor Traf Devices LSUM 1 $ 5,000.00 $ 5,000.00 $ 19,000.00 $ 19,000.00
31 8120210 Pavt Mrkg, Longit, 6 inch or Less Width, Rem Ft 2400 $ 0.60 $ 1,440.00 $ 0.50 $ 1,200.00
32 8120250 Plastic Drum, High Intensity, Furn Ea 182 $ 20.00 $ 3,640.00 $ 17.00 $ 3,094.00
33 8120251 Plastic Drum, High Intensity, Oper Ea 182 $ 1.00 $ 182.00
$ 1.00 $ 182.00
34 8120350 Sign, Type B, Temp, Prismatic, Furn Sft 1624 $ 4.00 $ 6,496.00 $ 3.00 $ 4,872.00
35 8120351 Sign, Type B, Temp, Prismatic, Oper Sft 1624 $ 1.00 $ 1,624.00 $ 1.00 $ 1,624.00
36 8120352 Sign, Type B, Temp, Prismatic, Special, Furn Sft 79 $ 8.00 $ 632.00
$ 8.00 $ 632.00
37 8120353 Sign, Type B, Temp, Prismatic, Special, Oper Sft 79 $ 1.00 $ 79.00
$ 1.00 $ 79.00
38 8190010 Cable Pole, TS, Disman Ea 3 $ 150.00 $ 450.00
$ 200.00 $ 600.00
39 8190505 Wood Pole, Rem Ea 1 $ 300.00 $ 300.00 $ 450.00 $ 450.00
40 8197001 _Recable, TS Ft 450 $ 2.50 $ 1,125.00 $ 8.00 $ 3,600.00
41 8200020 Case Sign, Rem Ea 13 $ 100.00 $ 1,300.00 $ 250.00 $ 3,250.00
42 8200022 Case Sign (LED), Two Way, 24 inch by 30 inch Ea 3 $ 1,800.00 $ 5,400.00 $ 2,750.00 $ 8,250.00
43 8200023 Case Sign (LED), Four Way, 24 inch by 30 inch Ea 1 $ 2,500.00 $ 2,500.00 $ 2,800.00 $ 2,800.00
44 8200029 Case Sign (LED), One Way, 24 inch by 30 inch Ea 7 $ 1,800.00 $ 12,600.00
$ 2,500.00 $ 17,500.00
45 8200030 Controller and Cabinet, Rem Ea 1 $ 200.00 $ 200.00 $ 400.00 $ 400.00
Page 1 of 2
46 8200106 Pedestal Fdn, Rem Ea 2 $ 250.00 $ 500.00 $ 300.00 $ 600.00
47 8200110 Pedestal, Rem Ea 2 $ 100.00 $ 200.00 $ 150.00 $ 300.00
48 8200122 Pushbutton, Rem Ea 4 $ 100.00 $ 400.00 $ 125.00 $ 500.00
49 8200140 Span Wire Ea 3 $ 800.00 $ 2,400.00 $ 2,500.00 $ 7,500.00
50 8200141 Span Wire, Rem Ea 3 $ 250.00 $ 750.00 $ 400.00 $ 1,200.00
51 8200168 Strut Guy Ea 1 $ 500.00 $ 500.00 $ 500.00 $ 500.00
52 8200170 Traf Loop Ea 2 $ 1,600.00 $ 3,200.00 $ 3,000.00 $ 6,000.00
53 8200175 TS, Bracket Arm Mtd, Rem Ea 1 $ 100.00 $ 100.00 $ 250.00 $ 250.00
54 8200179 TS, Pedestal Mtd, Rem Ea 1 $ 100.00 $ 100.00 $ 250.00 $ 250.00
55 8200180 TS, Pedestrian, Bracket Arm Mtd, Rem Ea 6 $ 100.00 $ 600.00 $ 250.00 $ 1,500.00
56 8200181 TS, Pedestrian, Pedestal Mtd, Rem Ea 2 $ 100.00 $ 200.00 $ 250.00 $ 500.00
57 8200182 TS, Span Wire Mtd, Rem Ea 13 $ 100.00 $ 1,300.00 $ 250.00 $ 3,250.00
58 8200191 TS, One Way Span Wire Mtd, Salv Ea 4 $ 600.00 $ 2,400.00 $ 800.00 $ 3,200.00
59 8200313 TS, One Way Span Wire Mtd (LED) Ea 6 $ 1,200.00 $ 7,200.00 $ 1,400.00 $ 8,400.00
60 8200325 TS, Three Way Span Wire Mtd (LED) Ea 4 $ 2,000.00 $ 8,000.00 $ 2,400.00 $ 9,600.00
61 8200333 TS, One Way Bracket Arm Mtd (LED) Ea 2 $ 1,200.00 $ 2,400.00 $ 1,500.00 $ 3,000.00
62 8200334 TS, One Way Bracket Arm Mtd, FYA (LED) Ea 3 $ 1,400.00 $ 4,200.00 $ 2,000.00 $ 6,000.00
63 8200338 TS, Pedestrian, Two Way Bracket Arm Mtd (LED) Ea 4 $ 1,400.00 $ 5,600.00 $ 2,000.00 $ 8,000.00
64 8200381 Video Traf Detection Camera Ea 1 $ 3,500.00 $ 3,500.00 $ 8,500.00 $ 8,500.00
65 8200458 TS Face, Bag Ea 2 $ 100.00 $ 200.00 $ 300.00 $ 600.00
66 8207050 _TS, One Way Pedestal Mtd, FYA (LED) Ea 1 $ 1,400.00 $ 1,400.00 $ 1,900.00 $ 1,900.00
67 8207050 _TS, Two Way Span Wire Mtd, FYA (LED) Ea 2 $ 1,600.00 $ 3,200.00 $ 2,600.00 $ 5,200.00
$ ‐
= apparent low bidder BID TOTAL: $ 168,556.50 $ 205,247.10
Page 2 of 2
Commission Meeting Date: June 25, 2019
Date: June 13, 2019
To: Honorable Mayor and City Commissioners
From: Finance Director
RE: Sanitation Service Fee Resolution
SUMMARY OF REQUEST: To adopt the resolution to continue charging a
sanitation service fee of $1.20 per month per residential utility bill plus an additional
.80 to provide recycling. The total charge per month per residential utility will be
$2.00. This charge will cover the difference between what is currently being collected
through property taxes and what the City currently pays for residential sanitation.
FINANCIAL IMPACT: This fee will generate an estimated $318,000.
BUDGET ACTION REQUIRED: None at this time. The rate was incorporated
into the FY 2019-20 budget that was recently approved by the City Commission.
STAFF RECOMMENDATION: Adoption of the attached resolution.
CITY OF MUSKEGON
RESOLUTION NO.________
At a regular meeting of the City Commission of Muskegon, Michigan, held at the City Commission Chambers on
June 25, 2019.
RECITALS
After reviewing the cost to provide sanitation services for the residents of the City of Muskegon, the City
Commission has determined that the funds generated from the 3 mills dedicated to sanitation currently does not
cover the costs to provide the service at its current level.
THEREFORE, THE CITY COMMISSION OF THE CITY OF MUSKEGON HEREBY RESOLVES:
1. Effective July 1, 2019, a monthly service fee of $1.20 will continue to be charged to all residential utility billings
along with an additional .80 cents for recycling. The total monthly fee charged to all residential utility bills will be
$2.00 for sanitation services.
2. This rate increase will be in effect until June 30, 2020 at which time it will be re-evaluated with the proposed
budget.
The above changes to be effective as noted above.
This resolution adopted.
YEAS:
NAYS:
CITY OF MUSKEGON
By: ______________________________
Ann Marie Meisch, MMC, City Clerk
STATE OF MICHIGAN COUNTY OF MUSKEGON
I hereby certify that the foregoing is a true and complete copy of a resolution adopted at a meeting of the Board of
Commissioners of the City of Muskegon, Michigan, held on the 26th day of June, 2018 and that the minutes of the
meeting are on file in the office of the City Clerk and are available to the public. Public notice of the meeting was
given pursuant to and in compliance with Act 267, Public Acts of Michigan, 1976.
Commission Meeting Date: June 25, 2019
Date: June 17, 2019
To: Honorable Mayor and City Commissioners
From: Finance Director
RE: Sewer Rate Adjustment
SUMMARY OF REQUEST: In 2018 a resolution with a treatment rate for our
customers that is based on a multiplier of 1.73 times the rate the county bills the city
for wastewater was adopted. The 2019/20 budget calls for the multiplier to be raised
to 1.81 to cover the costs of capital improvement needs of our aging infrastructure
over the next ten years.
FINANCIAL IMPACT: None at this time.
BUDGET ACTION REQUIRED: None at this time. The proposed rate change
was incorporated into the FY 2019-20 budget that was recently approved by the City
Commission.
STAFF RECOMMENDATION: Adoption of the attached fee adjustment
resolution.
CITY OF MUSKEGON
RESOLUTION NO.________
At a regular meeting of the City Commission of Muskegon, Michigan, held at the City Commission Chambers on
June 25, 2019.
RECITALS
A review of the rates for sewer service has been accomplished by the city's staff, recommendations received, and
the City Commission has determined that the following rate changes are justified. Accordingly, this resolution is
made for the purpose of maintaining the financial viability of the city's sewer system.
THEREFORE, THE CITY COMMISSION OF THE CITY OF MUSKEGON HEREBY RESOLVES:
1. Effective June 25, 2019, to rescind City of Muskegon Resolution No. 2018-46(M), which was adopted June 26,
2018.
2. Charges for residential sewer service shall be changed from a multiplier of 1.73 to 1.81 of the rate the county
bills the city for wastewater treatment effective July 1, 2019, with future rates to be adjusted as the county
charges are adjusted. The monthly sewer administration charge shall remain unchanged at $3.00.
3. Charges for commercial/industrial sewer service shall continue to be billed at a rate of 1.25 times (1.25x) the
city rate for residential sewer service. The monthly sewer administration charge shall remain unchanged to $3.00.
4. Charges for all non-metered residential sewer customers will be calculated based on an assumed usage rate
of 12 hundred cu. ft. per month.
5. Unless there is a separate agreement specifying a different billing method, non-resident users of the city sewer
system will be billed at a rate that is double (2x) the city rate for that class of user.
The above changes to be effective as noted above.
This resolution adopted.
YEAS:
NAYS:
CITY OF MUSKEGON
By: ______________________________
Ann Marie Meisch, MMC, City Clerk
STATE OF MICHIGAN COUNTY OF MUSKEGON
I hereby certify that the foregoing is a true and complete copy of a resolution adopted at a meeting of the Board of
Commissioners of the City of Muskegon, Michigan, held on the 26th day of June, 2018 and that the minutes of the
meeting are on file in the office of the City Clerk and are available to the public. Public notice of the meeting was
given pursuant to and in compliance with Act 267, Public Acts of Michigan, 1976.
Date: 6/25/2019
To: Honorable Mayor and City Commissioners
From: Department of Planning and Economic Development
RE: Park Storage Environmental Review
SUMMARY OF REQUEST:
Authorize staff to enter into an agreement with Envirologic to complete environmental
investigation of city owned property at 1713 Seventh Street. Phase I and II
environmental site assessments and a baseline environmental assessment are needed
before the city can sell the property for development.
The requested consultant provided oversight during the removal of an underground
storage tank during demolition activities on the site and has familiarity with the history
and future needs at this location. They have submitted a reasonable cost estimate for
the work.
FINANCIAL IMPACT:
$16,865 for environmental services as follow up to demolition costs, covered by the Public
Improvement Fund
BUDGET ACTION REQUIRED:
None.
STAFF RECOMMENDATION:
Authorize staff to enter into an agreement with Envirologic for environmental services related
to the property located at 1713 Seventh Street.
O:\CLERK\Common\Word\Agenda Items for Next Meeting\2019\062519\07a_Commission Request Park Storage
Environmental Consultant.doc
June 6, 2019
Ms. LeighAnn Mikesell
City of Muskegon Director of Municipal Services
City of Muskegon
933 Terrance Street
Muskegon, MI 49440
Re: Proposal for Environmental Services, 1713 7th Street, Muskegon, Michigan.
Dear Ms. Mikesell:
Thank you for providing Envirologic Technologies, Inc. (Envirologic) this opportunity to be of
service. We are pleased to provide the following proposal to conduct environmental services
at the above referenced subject property. Envirologic understands that the Catholic Charities
of West Michigan plans to acquire a currently undeveloped parcel of property located at 1713
7th Street to construct a proposed new two-story office building located at the southeast
corner of Park Street and W. Dale Street in Muskegon, Michigan.
BACKGROUND
The vacant parcel located at 1713 7th Street is one of two undeveloped parcels totaling
approximately 3.9 acres situated within the City of Muskegon. The parcel identification
number for this property is 61-24-205-450-0001-00. The property was developed with
residences until the mid-1920s, when the initial industrial development of the subject
property occurred. Muskegon Motor Works, a camshaft manufacturer, was the first company
to operate at the subject property. In the mid-1900s, Misco (then later Howmet/Misco) took
over the expanded industrial building and manufactured turbine blades for aircraft along with
golf club heads with titanium casting methods. Towards the end of Howmet/Misco’s
operation in the 1980s, the facility was primarily used to store hazardous waste from other
Howmet/Misco plants. The property was vacant until approximately 2010, when a new owner
utilized the industrial building for a storage facility until approximately 2015.
The industrial complex was demolished in June 2018, at which time three underground
storage tanks (USTs) were discovered at the subject property, with one of the three USTs
formerly located on the 1713 7th Street parcel. Envirologic provided oversight during removal
activities, which resulted in three independent releases being reported to the Michigan
Department of Licensing and Regulatory Affairs (LARA), one from each tank. There have been
no additional environmental investigations of these reported releases.
Ms. LeighAnn Mikesell
June 6, 2019
Page 2 of 6
An 8,500-gallon-capacity UST containing waste oil was formerly located on the 1713 7th Street
parcel. The analytical results from the soil site assessment samples collected following the
removal of the UST on October 8, 2018, indicated the detection of trichloroethene (TCE), a
chlorinated volatile organic compound (VOC), and lead. VOCs (primarily tetrachloroethene
[PCE]), petroleum VOC constituents, and lead were also detected in soil site assessment
samples collected from the other two UST locations located on the southern parcel.
The concentrations of chlorinated solvents (specifically TCE and PCE) detected in soil samples
collected in the UST areas exceeded the soil residential and nonresidential Michigan
Department of Environment, Great Lakes, and Energy (EGLE) media-specific volatilization to
indoor air interim action screening levels for soil dated August 2017. Recent EGLE guidance
regarding vapor intrusion has indicated the lateral inclusion zone for chlorinated vapor
intrusion (VI) is 100 feet. The definition of lateral inclusion zone is the “horizontal distance
beyond a vapor source that may make a property or structure vulnerable to the migration of
vapors.” However, investigation efforts to date have not included either groundwater or vapor
intrusion sampling. Envirologic recommends a site assessment that includes the evaluation of
(1) groundwater which provides a transport mechanism and source for VI and (2) soil vapor
from the source area, the former location of the UST, and the former buildings located on this
parcel to evaluate possible contaminated vapor impact to the proposed building. Although the
proposed location of the new building is in an area that was formerly a paved parking area for
the Howmet/Misco company, an additional sampling location will be placed in the proposed
building footprint. The proposed boring locations are shown on the Figure.
SCOPE OF SERVICES
The environmental services have been separated into the following components to address
site-specific objectives:
Phase I Environmental Site Assessment
▪ Envirologic will complete a Phase I Environmental Site Assessment (ESA) in accordance
with the American Society for Testing & Materials (ASTM) Standard Practice
methodology (Standard E 1527-13).
▪ In an effort to evaluate the historical use and ownership of the site, Envirologic will
attempt to interview past land owners and users of the site; analyze historical aerial
photographs; review historical city directories, land development maps, and Sanborn
fire insurance maps (if available); and request and analyze file information.
Ms. LeighAnn Mikesell
June 6, 2019
Page 3 of 6
▪ In accordance with the ASTM Standard Practice for Phase I ESAs, Envirologic will
review appropriate state and federal agency databases within recommended search
radii to identify known and potential environmental concerns at or near the project
site.
▪ Envirologic will perform a visual site inspection of the property. The purpose of the site
inspection is to further identify potential environmental concerns associated with the
site. The visual inspection will include both interior and exterior observations.
▪ Upon completion of the aforementioned services, the data collected from the Phase I
ESA will be compiled into a project report. At that time, recommendations for further
action, if appropriate, will be presented.
Phase II Environmental Site Assessment
▪ Prepare a Health and Safety Plan (HASP) to be utilized by Envirologic’s on-site
personnel.
▪ Complete a Miss Dig utility request.
▪ Utilize ground-penetrating radar (GPR) to map subgrade utilities and demarcate the
proposed boring locations.
▪ Advance six (6) soil boring locations on the parcel to a depth of approximately 20 feet
below ground surface (bgs).
▪ Install four (4) temporary monitoring wells at each boring location for the collection of
groundwater samples.
▪ Collect four (4) groundwater samples from each well location for the analysis of VOCs
using USEPA Method 8260.
▪ Install six (6) vapor monitoring ports at each boring location for the collection of soil
gas samples.
▪ Analyze six (6) soil gas samples for VOCs using USEPA Method TO-15.
▪ Collect one (1) soil sample from the former UST excavation area for analysis of VOCs
and lead.
Baseline Environmental Assessment
▪ Following the review of the analytical results from the newly conducted site
assessment activities conducted at the site, if chlorinated solvent contaminants exceed
Michigan residential cleanup criteria, the site meets the definition of a “facility” as
defined in Part 201 of the Natural Resources and Environmental Protection Act
Ms. LeighAnn Mikesell
June 6, 2019
Page 4 of 6
(NREPA). Envirologic will complete a Baseline Environmental Assessment and Due Care
Plan to ensure protection from environmental cleanup liabilities. The Baseline
Environmental Assessment must be conducted within 45 days of ownership or
occupancy.
▪ An owner/operator of a facility has due care obligations to comply with Part 201 and
operate in a manner to prevent unacceptable exposures to property occupants. Due
care obligations broadly include the following: prevent exacerbation, mitigate
unacceptable exposure and operate in a manner that protects the public health and
safety, take reasonable precautions against third-party omissions, reasonably
cooperate with parties authorized to conduct response activities, comply with land or
resource use restrictions, and do not impede any land or resource use restrictions. If
the completion of a VI assessment demonstrates that there is an immediate exposure
risk via volatilization to the indoor air pathway, further action would be needed to
meet due care obligations, thereby protecting the general public from unacceptable
exposure via the volatilization to indoor air pathway. The installation of a sub-slab
depressurization (SSD) system to mitigate soil vapor from the area where elevated
concentrations of PCE and TCE are identified underneath the proposed building may
be necessary. Costs associated with the installation of a mitigation system would be
prepared under separate cover as a separate scope of services, if necessary.
ESTIMATED COSTS
Envirologic proposes to perform the services described in the Scope of Services on a time and
materials basis.
Phase I Environmental Site Assessment
Professional Services (Site Visit, Report Preparation) ............................................. $ 2,200
Phase II Environmental Site Assessment
Project Management (Health & Safety Plan, Communications).............................. $ 1,200
Field Activities (Two Days) ....................................................................................... $ 1,700
Ground-penetrating Radar Survey (Subcontracted) ................................................ $ 1,165
Drilling Services (Subcontracted) ............................................................................. $ 3,700
Laboratory Services (Subcontracted) ....................................................................... $ 2,400
Field Expenses (PID, Disposable Equipment, Travel, etc.)........................................ $ 500
Professional Services (Report Preparation) ............................................................. $ 2,000
Ms. LeighAnn Mikesell
June 6, 2019
Page 5 of 6
Baseline Environmental Assessment
Professional Services (Project Management, Report Preparation) ......................... $ 2,000
TOTAL ESTIMATED PROJECT COSTS ............................. $ 16,865
COMPLETION SCHEDULE
Envirologic proposes to initiate the project immediately upon receiving authorization to
proceed.
If you desire to have Envirologic conduct the aforementioned services, please sign and date
one copy of the authorization page and return it to our office. A signed copy of the
authorization page will serve as our authorization to proceed. This proposal is subject to the
attached terms and conditions.
If you have any questions, comments, or require additional information, please contact our
office at (269) 342-1100.
Sincerely,
ENVIROLOGIC TECHNOLOGIES, INC.
Gary T. Blinkiewicz, CPG, LPG David A. Stegink
Project Manager – Hydrogeologist Vice President
Manager of Redevelopment Services
GTB:sns
Attachment
H:\Projects\Projects_C\City of Muskegon\190065 Park Storage\Catholic Charities\Catholic Charities of West Michigan p1p2BEA$.docx
Ms. LeighAnn Mikesell
June 6, 2019
Page 6 of 6
AUTHORIZATION
To authorize this project, please email, fax, or mail a signed copy of this signature page to
our office.
Re: Proposal for Environmental Services, 1713 7th Street, Muskegon, Michigan.
Authorized Representative:
______________________________ ______________________________
Signature Date
______________________________ ______________________________
Title Purchase Order No. (if applicable)
H:\Projects\Projects_C\City of Muskegon\190065 Park Storage\Catholic Charities\Catholic Charities of West Michigan p1p2BEA$.docx
W DALEAVE Proposed Soil Boring/Temporary Monitoring
Well/Vapor Monitoring Location
PARCEL #61-24-205-450-0001-00
1713 7th STREET
PARK ST
WLARCHAVE
NOTE:
THIS IS NOT A PROPERTY BOUNDARY SURVEY, PROPERTY BOUNDARIES SHOWN ON THIS MAP
ARE BASED ON AVAILABLE FURNISHED INFORMATION AND ARE APPROXIMATE ONLY AND
SHOULD NOT BE USED TO ESTABLISH PROPERTY BOUNDARY LOCATION IN THE FIELD.
PARCEL #61-24-205-450-0001-50
1747 7th STREET
Proposed Sampling Locations
PARK STREET STORAGE
1713 7th Street
Muskegon, MI 49441
1713 & 1747 7th STREET
MUSKEGON, MI 49441
SITE PLAN
PROJECT NO.
190065
000000 AAAAAA File: Model:
FIGURE No.
environmental consulting
2960 INTERSTATE PARKWAY
KALAMAZOO, MICHIGAN 49048
services
2
PH: (269) 342-1100 FAX: (269) 342-4945
PROFESSIONAL SERVICES
Terms and Conditions
The services to be rendered by Envirologic Technologies, Inc. (Envirologic) or its divisions in the attached
proposal are expressly contingent upon the Client's acceptance of these Terms and Conditions. Any additional or conflicting
Terms and Conditions of the Client are hereby expressly objected to and rejected by Envirologic.
1. Payment. Envirologic shall invoice Client on a monthly basis for services incurred the previous month.
Invoices are due and payable within 30 days of receipt. A service charge of 1.5 percent will be added to all outstanding
balances each month they are past due. Envirologic reserves the right, upon 30 days written notice to client, to modify the
attached Schedule of Fees. If payment of Envirologic invoices is not maintained on a 30-day current basis, Envirologic may,
upon seven (7) days written notice to Client, suspend further performance and withhold any and all data from Client until such
invoice payments are restored to a current basis without incurring any liability whatsoever to client.
Client shall be responsible for and pay Envirologic at 1 1/2 times their prevailing rates for any time spent by its
personnel in connection with any legal proceedings arising from or relating to services provided under this Agreement,
regardless of whether Envirologic is subpoenaed to appear by Client or a third party.
Nothing in this Agreement shall preclude Envirologic from filing a construction lien against Client's property in order to
secure the payment provided for in this Agreement.
2. Additional Work. Envirologic agrees to modify the work proposal as authorized in writing by the Client. Client
agrees to pay Envirologic for any increases in the cost of performing the additional work. Unless otherwise agreed to in
writing, the cost of the modifications shall be determined on a time and material basis in accordance with the attached rate
schedule.
Costs and schedule commitments shall be subject to renegotiation for delays in performance caused by
circumstances beyond the reasonable control of Envirologic including, but not limited to: Acts of God; fire; flood; explosion;
war, action, inaction or request of governmental authority; injunction; adverse weather conditions; accident; labor trouble or
shortage; inability to obtain material, equipment, fuel or transportation. No liability shall result to either party from the delay in
performance caused by the circumstances described above except for the obligation of the Client to pay Envirologic for (i)
work performed, and (ii) additional labor, equipment and other costs associated with Envirologic's maintenance of its work
force and equipment available during the interruptions. Should any of the circumstance described above occur causing delay,
both parties shall use their best efforts to overcome the difficulties arising and to resume as soon as reasonably possible the
work under this Agreement.
Whenever Envirologic is of the opinion that the timely completion of its responsibilities pursuant to this Agreement has
been or will be adversely affected by events which are beyond its control, it shall, as soon as practicable orally notify the Client
and within ten (10) calendar days thereafter notify the Client in writing, stating the anticipated length of the delay, the cause of
the delay, measures proposed or taken to prevent or minimize the delay, and the timetable for implementation of these
measures.
3. Site Security and Safety. Envirologic attempts to conduct its field activities in such a manner as to protect
themselves and others from injury. If the Client is aware of special precautions to insure safety, the Client should immediately
advise Envirologic. The Client grants to Envirologic, its agents and employees, during the term of this Agreement, reasonable
access to the subject premises for the purposes of fulfilling Envirologic's obligations under this Agreement. Envirologic shall
comply with any reasonable safety procedures delivered by the Client to Envirologic in writing.
It is hereby further agreed and understood that while Envirologic is on the premises of the Client, Envirologic, its
employees and representatives will not unreasonably interfere with the business activities being performed by the Client on or
about the premises without the Client's permission. It is further agreed and understood that the employees and representative
of the Client will act to reasonably facilitate Envirologic's performance of its obligations under this Agreement.
4. Utilities. Client shall be responsible for disconnecting electrical lines, and staking utilities, both private and
public, if necessary and assume all responsibility for damage during and after execution of Envirologic's services. In no event
shall Envirologic be responsible for additional costs resulting from unknown property conditions.
(Revised 5/02) 1
It shall be the responsibility of Client or its duly authorized representative to disclose the presence and accurate
location of all hidden or obscure manmade objects relative to field tests or installations. If Envirologic is cautioned, advised or
given data in writing that reveal the presence or potential presence of underground or overground obstructions, Envirologic will
give special instructions to its field personnel and subcontractors, however, all additional costs caused by the existence of the
obstruction(s) shall be paid by Client on a time and material basis. As evidenced by acceptance of this proposal, the Client
agrees to indemnify and save harmless Envirologic and subcontractors from all claims, suits, losses, personal injuries, death
and property liability, resulting from unusual subsurface conditions or damages to subsurface structures, owned by the Client
or third parties, occurring in the performance of the proposed work, whose presence and exact locations were not revealed to
Envirologic in writing, and to reimburse Envirologic for expenses in connection with any such claims or suits, including
reasonable attorneys' fees.
5. Property Access. Client shall arrange and provide such access to the site as is necessary for Envirologic to
perform their services. Client shall be solely responsible for all aspects of site security and for obtaining any necessary
permission from any third party property owners for use of their lands.
Client hereby agrees to indemnify, defend and hold Envirologic harmless from any damages to Client's or third party's
property, except that caused by the gross negligence of Envirologic or its agents. Client acknowledges that certain damage
may be caused by Envirologic vehicles and equipment being on site and will hold Envirologic harmless for said damages.
6. Performance of Services. Envirologic shall exercise due care in performing its services hereunder and shall
render them in accordance with prevailing professional standards and ethics as measured on the date hereof and in the locale
of this project in performing services for Client. If Envirologic believes that compliance with Client's requests could violate
professional standards, ethics, laws or regulations, Envirologic shall advise Client and a mutually satisfactory solution shall be
discussed. If the parties are unable to reach a satisfactory solution, either party may terminate this agreement as stated
herein.
7. Limitation on Warranty. ENVIROLOGIC DOES NOT GUARANTEE ANY SPECIFIC RESULTS FROM
SAMPLING OR ANALYTICAL ACTIVITIES. CLIENT IS LIABLE FOR LOSS AND/OR DAMAGES TO THE SURFACE OR
SUBSURFACE CAUSED BY SAMPLING OR DRILLING ACTIVITIES OR FOR DAMAGE TO WELLS AS A RESULT OF
TRESPASS OR FROM OPERATION SERVICES, INCLUDING BUT NOT LIMITED TO CONTAMINATION OR LOSS OF
EQUIPMENT IN WELL, UNLESS SUCH LOSS RESULTS FROM ENVIROLOGIC'S NEGLIGENCE OR WILLFUL
MISCONDUCT.
CLIENT ACKNOWLEDGES THAT STATEMENTS IN REPORTS ARE DEEMED TO BE OPINIONS BASED ON
PROFESSIONAL JUDGMENT AND THAT ENGINEERING, ENVIRONMENTAL, GEOLOGIC, HYDROGEOLOGIC AND
GEOTECHNICAL CONDITIONS FREQUENTLY VARY FROM THOSE ENCOUNTERED AT THE TIMES AND
LOCATIONS WHERE DATA ARE OBTAINED BY ENVIROLOGIC. THEREFORE, LIMITED DATA MAY RESULT IN
UNCERTAINTY WITH RESPECT TO INTERPRETATION OF THESE CONDITIONS, DESPITE THE USE OF
PROFESSIONAL CARE, AND THAT GOVERNMENTAL REGULATIONS RELATING TO HAZARDOUS SUBSTANCE(S)
MAY CHANGE OR THEY MAY REQUIRE RESULTS WHICH CANNOT BE ACCOMPLISHED OR ADDITIONAL
ACTIVITIES BE CONDUCTED.
8. UST Site Closure. Pursuant to Part 213 of NREPA, 1994 PA 451, as amended, if Envirologic shall submit a
Release Closure Report to the Michigan Department of Environmental Quality upon confirmation that cleanup standards have
been met, said report shall relate to only contaminants identified in the area(s) associated with the reported release set forth in
the scope of services and shall only be released when, in Envirologic's best scientific judgment, all applicable cleanup criteria
have been met.
9. Disposal of Contaminated/Hazardous Wastes. Any hazardous or toxic wastes, pollutants, contaminants or
other waste materials encountered by or associated with services provided by Envirologic on this project shall at no time be or
become the property of Envirologic. Arrangements for the treatment, storage, transport or disposal of any waste materials,
which may be made by Envirologic, shall be construed as being made solely and exclusively on Client's behalf and Client shall
indemnify, defend and hold Envirologic harmless from and against any and all liability which arises out of the treatment,
storage, transport or disposal of any waste materials. It is agreed and understood that any manifests or other forms required
for the disposal of hazardous waste will be properly completed and signed by the Client or a duly authorized representative.
10. Subcontractors. Envirologic may, in its own discretion, hire subcontractors on behalf of Client to perform
any such portion of the services hereunder. If Client selects its own subcontractor(s), Envirologic shall not be responsible for,
(Revised 5/02)
-2-
or in any manner guarantee, the performance of such subcontractor(s) or their agents or employees, nor shall Envirologic be
liable for any negligent acts, errors or omissions of said subcontractor.
Estimated subcontractor costs will depend upon their actual current prices. Any increased prices will be passed on to
Client.
11. Term of Agreement. Envirologic agrees to proceed with implementation of the proposal on a timely basis.
However, due to its unknown site conditions and delays in state processing, no definite time period can be established for
completion of services.
12. Confidentiality and Use of Documents. Envirologic shall retain, as confidential, all information and data
furnished to it by Client and/or others which is designated as confidential. Said information shall not be disclosed to any third
party except as directed by Client or as required by law or regulation.
Provided that Envirologic has been fully paid for its services, Client shall have the right to copies of all documents,
maps, photographs, drawings and reports resulting from services hereunder for purposes reasonably contemplated by the
parties. Any work product generated by Envirologic shall remain in its possession.
Reuse of any material described above by Client on extensions of a project or on any other project or by a third party
without Envirologic's written consent shall be at Client's or third party's risk and Client agrees to indemnify, defend and hold
Envirologic, its employees, agents and subcontractors, harmless from all claims, damages and expenses, including attorney
fees, arising out of such use.
13. Information Provided by Client or Others. Envirologic shall indicate to Client the information needed for
rendering the Services described in each Work Order. Envirologic shall review existing information provided by others and
shall give Client its opinion as to the risks associated with reliance on such information. To the extent that Envirologic is
required to rely solely upon existing information, without the opportunity for Envirologic to appropriately validate the accuracy
and reliability of such information, Client agrees to waive any claim against Envirologic and to indemnify and hold harmless
Envirologic from and against any and all claims, damages, losses, liability, and expenses, including attorney's fees, which may
arise from errors, omissions or inaccuracies in existing information provided to Envirologic by Client or others.
14. Rights of Third Parties. This Agreement shall not create any rights or benefits to parties other than Client
and Envirologic.
15. Indemnification of Client by Envirologic. Except as otherwise provided herein, Envirologic agrees to
indemnify, defend and hold harmless client from all claims, losses, liabilities, damages and expenses, including attorney's fees
which may occur as the result of any claims or damages sustained by person or property, arising out of the sole negligence or
willful misconduct of Envirologic in the performance of its work.
16. Indemnification of Envirologic by Client. Client shall indemnify, defend and hold Envirologic, its agents
and employees, harmless against all liability, claims, demands, losses, damages, expenses and costs, including attorney fees
that Envirologic may incur by reason of any injury or damage to person or property arising out of the performance of the work,
alleged or actual contaminant migration as a result of the work or any prior work performed at the site and for all matters
relating to this Agreement except for acts caused by the sole negligent performance of Envirologic under this Agreement.
(Revised 5/02)
-3-
17. Insurance. Upon request, Envirologic shall furnish copies of insurance certificates evidencing that it
maintains, at a minimum, the following coverage:
Type Limits
Worker's Compensation Statutory
Employers’ Liability $1,000,000/$1,000,000/$1,000,000
General Liability $5,000,000 occurrence
$5,000,000 aggregate
Personal & Adv. Injury $5,000,000
Products – COMP/OP AGG $5,000,000
Umbrella $2,000,000 each claim
$2,000,000 aggregate
Contractor Pollution $5,000,000 total all claims
Automotive Liability $1,000,000 combined single limit (ea. accident)
With respect to only such loss, damage, injury, or liability as is covered under the policies of insurance and policy
limits identified above, Envirologic agrees to save Client harmless from and against loss, damage, injury, or liability arising
directly from the negligent acts or omissions of Envirologic employees, agents, and subcontractors, and their employees and
agents. If Client requires higher insurance limits, additional coverage, or performance or payment bonding, Envirologic will
endeavor to obtain such coverage, at Client's expense. It is the understanding and agreement of the parties, however, that
Envirologic is unable to save Client harmless from and against any loss, damage, injury, or liability arising from any cause,
beyond the amount and coverage listed in this section. In addition, Envirologic shall be included as an additional and intended
beneficiary under any hold harmless agreements against third-party suits between Client and owner or any other third party,
including without limitation any other contractor, subcontractor, or supplier who may perform "Services" or provide material in
connection with any study or report or design prepared by Envirologic.
In no event shall Envirologic be responsible for any incidental, indirect, special, punitive, impact, consequential
damages (including but not limited to loss of profits) or cost of defense incurred by Client or any third party, except as
otherwise provided herein.
All claims, including claims for indemnification, whether based upon contract, tort, breach of warranty, professional
negligence, or otherwise, shall be deemed waived unless the claim is made within the time required under insurance
coverage provided, by Envirologic. Non-insured claims must be made within one (1) year after completion of that work or
event giving rise to the claim.
18. Compliance With Laws. The Client shall be responsible for notifying all appropriate Federal, State,
municipal or other governmental agencies of the existence of any hazardous, toxic or dangerous materials located on or in the
site, or discovered during the performance of this Agreement.
19. Equal Employment. Envirologic is an Equal Opportunity Employer and shall not discriminate against any
employee or applicant for employment based on race, color, religion, sex or national origin.
20. Waiver. No waiver, discharge or renunciation of any claim or right of Envirologic arising out of breach of this
Agreement by Client shall be effective unless in writing, signed by Envirologic.
21. Termination. Either party may terminate this Agreement without cause upon seven (7) days written notice to
the other party. In the event of termination, Client shall pay Envirologic for all costs incurred to date plus reasonable costs
associated with termination of the work.
22. Complete Agreement. These terms and conditions together with the proposal to perform work and rate
schedule constitute the complete and entire agreement between the parties. Any modification thereto must be in writing
signed by both parties.
23. Governing Law. This proposal and its terms and conditions shall be interpreted under and governed by the
laws of the State of Michigan.
(Revised 4/11) H:\PWdata Archive\ETI\Terms-Conditions_Rates\TERMCON_ETI.doc
-4-
Commission Meeting Date: June 25, 2019
Date: June 24, 2019
To: Honorable Mayor and City Commission
From: Community and Neighborhood Services Department
RE: Approval of Sale: City Home at 1015 E. Forest Avenue
SUMMARY OF REQUEST: To approve the attached resolution and instruct
the Community and Neighborhood Services department to complete the sales
transaction with Kathryn Schmidt for the rehabilitated home at 1015 East
Forest Avenue: purchase price $115,000.
FINANCIAL IMPACT: The proceeds from the sale will be used to continue the
rehabilitation of affordable homes through the HOME program and provide
funding for our Homebuyer’s Assistance Program.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To approve the resolution and direct the CNS
staff to complete the sale.
COMMITTEE RECOMMENDATION: None.
MUSKEGON CITY COMMISSION
RESOLUTION TO APPROVE THE SALE OF
HUD PROPERTY AT 1015 E FOREST AVENUE
WHEREAS, the City of Muskegon is dedicated to the redevelopment of its
neighborhoods and;
WHEREAS, the City of Muskegon is dedicated to promoting high quality
affordable single-family housing in the community and;
WHEREAS, the City of Muskegon is dedicated to promoting
homeownership throughout its neighborhoods;
NOW THEREFORE, BE IT RESOLVED that the City Commission hereby
approves the sale of the property at 1015 E Forest Avenue to Kathryn
Schmidt. This home has been rehabilitated by Community and
Neighborhood Services Department through the Home-Buyer Program.
Adopted this 25th of June, 2019.
Ayes:
Nays:
By ______________________________
Stephen J. Gawron, Mayor
By ______________________________
Ann Marie Meisch, MMC City Clerk
AM_Resolution
Commission Meeting Date: June 25, 2019
Date: June 20, 2019
To: Honorable Mayor and City Commissioners
From: Planning & Economic Development
RE: Public Hearing – Establishment of a Commercial Rehabilitation
District –292 W Western Ave
SUMMARY OF REQUEST:
Pursuant to Public Act 255 of 1978, as amended, Sweetwater Development, LLC has
requested the establishment of a Commercial Redevelopment District. The creation of the
district will allow the building owner to apply for a Commercial Facilities Exemption
Certificate, which will freeze the taxable value of the building and exempt the new real
property investment from local taxes.
FINANCIAL IMPACT:
None
BUDGET ACTION REQUIRED:
None
STAFF RECOMMENDATION:
Establishment of the Commercial Redevelopment District.
COMMITTEE RECOMMENDATION:
None
6/20/2019
Resolution No. _______
MUSKEGON CITY COMMISSION
RESOLUTION APPROVING THE CREATION OF A COMMERCIAL REDEVELOPMENT DISTRICT
292 W Western Ave
WHEREAS, pursuant to PA 255 of 1978, the City of Muskegon has the authority to establish “Commercial
Redevelopment Districts” within the City of Muskegon at request of a commercial business enterprise or
on its own initiative; and
WHEREAS, Sweetwater Development, LLC has filed a written request with the clerk of the City of
Muskegon requesting the establishment of the Commercial Redevelopment District for an area in the
vicinity of 292 W Western Ave located in the City of Muskegon hereinafter described; and
WHEREAS, the City Commission of the City of Muskegon determined that the district meets the
requirements set forth in section 5 of PA 255 of 1978; and
WHEREAS, written notice has been given by certified mail to all owners of real property located within the
proposed district as required by section 5(3) of PA 255 of 1978; and
WHEREAS, on June 25, 2019 a public hearing was held and all residents and taxpayers of the City of
Muskegon were afforded an opportunity to be heard thereon; and
WHEREAS, the City of Muskegon deems it to be in the public interest of the City of Muskegon to
establish the Commercial Redevelopment District as proposed;
NOW, THEREFORE, BE IT RESOLVED by the City Commission of the City of Muskegon that the
following described parcel(s) of land situated in the City of Muskegon, County of Muskegon, and State of
Michigan, to wit:
Adopted this 25th Day of June 2019
Ayes:
Nays:
Absent:
6/20/19
BY: __________________________________
Stephen J. Gawron
Mayor
ATTEST: __________________________________
Ann Meisch
Clerk
CERTIFICATION
I hereby certify that the foregoing constitutes a true and complete copy of a resolution adopted by the Muskegon
City Commission, County of Muskegon, Michigan, at a regular meeting held on June 25, 2019.
______________________________
Ann Meisch
Clerk
6/20/19
Commission Meeting Date: June 25, 2019
Date: June 20, 2019
To: Honorable Mayor and City Commissioners
From: Planning & Economic Development
RE: Public Hearing – Issuance of a Commercial Facilities Exemption
Certificate – Sweetwater Development, LLC
SUMMARY OF REQUEST:
Pursuant to Public Act 255 of 1978, as amended, Sweetwater Development, LLC has
requested the issuance of a Commercial Facilities Exemption Certificate for their project at
292 W Western Ave. The certificate provides a 50% reduction in the number of mills levied
as ad valorem taxes, excluding the State Education Tax, for the commercial portion of the
development. The company will be investing $4,154,539 in the commercial space and
will create up to 30 jobs, which qualifies them for an abatement of 12 years.
FINANCIAL IMPACT:
The certificate provides a 50% reduction in the number of mills levied as ad valorem taxes,
excluding the State Education Tax.
BUDGET ACTION REQUIRED:
None
STAFF RECOMMENDATION:
Issuance of the Commercial Facilities Exemption Certificate
COMMITTEE RECOMMENDATION:
None
6/20/2019
Resolution No. _______
MUSKEGON CITY COMMISSION
RESOLUTION APPROVING APPLICATION FOR ISSUANCE
OF A COMMERCIAL FACILITIES EXEMPTION CERTIFICATE
Sweetwater Development, LLC
WHEREAS, the City of Muskegon legally established the Commercial Redevelopment District, 292 W
Western Ave District, after a public hearing held on June 25, 2019; and
WHEREAS, the state equalized value of the property proposed to be exempt plus the aggregate state
equalized value of property previously exempt and currently in force under Public Act 255 of 1978 and
under Public Act 198 of 1974 (IFT's) does not exceed 5% of the total state equalized value of the City of
Muskegon; and
WHEREAS, the application was approved at a public hearing as provided by section 6(2) of Public Act
255 of 1978 on March 26, 2019; and
WHEREAS, Sweetwater Development, LLC is not delinquent in any taxes related to the facility; and
WHEREAS, the application is for commercial property as defined in section 3(3) of Public Act 255 of
1978; and
WHEREAS, Sweetwater Development, LLC had provided answers to all required questions under
Section 6(1) of PA 255 of 1978 to the City of Muskegon; and
WHEREAS, the City of Muskegon requires that the construction, restoration or replacement of the facility
shall be completed by June 25, 2019; and
WHEREAS, the Commercial Facilities Exemption Certificate is granted for a period of twelve (12) years
and no extensions will be allowed; and
WHEREAS, the commencement of the construction, restoration or replacement of the facility did not
occur more than 45 days prior to the filing of the application for exemption; and
WHEREAS, the commencement of the construction, restoration or replacement of the facility did not
occur prior to the establishment of the Commercial Redevelopment District; and
WHEREAS, the application relates to a construction, restoration or replacement program which when
completed constitutes a new, replacement or restored facility within the meaning of Public Act 255 of
1978 and that is situated within a Commercial Redevelopment District established under Public Act 255 of
1978; and
WHEREAS, completion of the facility is calculated to, and will at the time of issuance of the certificate,
have the reasonable likelihood to increase commercial activity, create employment, retain employment
and prevent a loss of employment in the community in which the facility is situated; and
WHEREAS, the restoration includes improvements aggregating 10% or more of the true cash value of the
property at commencement of the restoration as provided by section 4(6) of Public Act 255 of 1978.
NOW, THEREFORE, BE IT RESOLVED by the City Commission of the City Commission
6/20/19
Be and hereby is granted a Commercial Facilities Exemption for the real property, excluding land, located
in Commercial Redevelopment District, 292 W Western Ave District at 292 W Western Ave for a period of
twelve (12) years, beginning December 31, 2019, and ending December 30, 2030, pursuant to the
provisions of PA 255 of 1978, as amended.
Adopted this 25th Day of June, 2019.
Ayes:
Nays:
Absent:
BY: __________________________________
Stephen J. Gawron
Mayor
ATTEST: __________________________________
Ann Meisch
Clerk
CERTIFICATION
I hereby certify that the foregoing constitutes a true and complete copy of a resolution adopted by the Muskegon
City Commission, County of Muskegon, Michigan, at a regular meeting held on June 25, 2019.
______________________________
Ann Meisch
Clerk
6/20/19
Commission Meeting Date: June 25, 2019
Date: June 19, 2019
To: Honorable Mayor and City Commissioners
From: Planning & Economic Development
RE: Public Hearing - Request to Create a new Neighborhood
Enterprise Zone district at 292 W Western Ave
SUMMARY OF REQUEST:
Pursuant to Public Act 147 of the Michigan Public Acts of 1992, Sweetwater Development,
LLC has requested to create a new Neighborhood Enterprise Zone (NEZ) district for the
parcel at 292 W Western Ave for a new mixed-use building.
FINANCIAL IMPACT:
For those properties that are approved for a NEZ Certificate, taxation will be levied using
half of the State average of millages of local entities.
BUDGET ACTION REQUIRED:
None
STAFF RECOMMENDATION:
To hold the public hearing
COMMITTEE RECOMMENDATION:
None
Background
Properties located in NEZ districts are eligible to apply for NEZ certificates, which will lower
the residential property taxes on new or rehab construction. The State requires that
notices are to be sent to the local taxing jurisdictions regarding the request and that the
resolution may not be passed until after 60 days of the notice letters being sent. Also, a
public hearing must be held no more than 45 days after the notice is sent. Notices were
mailed on June 11, 2019. The resolution approving the district is planned to come back in
front of the City Commission on August 13, 2019. The NEZ will only affect the residential
component of the project.
Commission Meeting Date: June 25, 2019
Date: June 13, 2019
To: Honorable Mayor and City Commissioners
From: City Manager
RE: Transmittal of 2019-20 Proposed Budget
SUMMARY OF REQUEST: At this time staff is transmitting to the City
Commission the proposed budget for fiscal year 2019-20 which starts July 1, 2019.
Both hardcopy and electronic versions of the budget have been distributed to
Commissioners. Additionally, the budget is available for public inspection on the
City’s website and at the City Clerk’s office.
The proposed budget was reviewed in detail with staff at the June 6th work session.
A public hearing on the budget will be held at the regular Commission meeting on
June 25th. City ordinance requires that the budget be adopted by the Commission on
or before the second Commission meeting in June.
FINANCIAL IMPACT: The budget is the City’s financial plan for the coming fiscal
year.
BUDGET ACTION REQUIRED: None at this time.
STAFF RECOMMENDATION: Approval of the proposed budget for fiscal year
2019-20.
CITY OF MUSKEGON
RESOLUTION OF APPROPRIATION
2019-20 BUDGET
WHEREAS, the City Manager has submitted a proposed Budget for 2019-20 in accordance
with City Ordinance and Michigan Public Act 621 of 1978 known as the "Uniform Budgeting and
Accounting Act"; and,
WHEREAS, the 2019-20 proposed Budget has been reviewed by the City Commission
following a public hearing for which due notice was given; NOW, THEREFORE, BE IT RESOLVED
that the Budget for the City of Muskegon for the fiscal year beginning July 1, 2019 is hereby
determined and adopted as follows:
GENERAL FUND
FUND
ACTIVITY
NUMBER FUND/ACTIVITY NAME AMOUNT
101-10101 City Commission 85,936
101-10102 City Promotions & Public Relations 88,000
101-10145 City Attorney 360,000
101-10172 City Manager 419,762
101-10875 Support to Outside Agencies 424,513
101-10891 Contingency and Bad Debt Expense 100,000
101-20215 City Clerk & Elections 547,208
101-20220 Employee Relations 210,412
101-30202 Finance Administration 611,136
101-30205 Income Tax Administration 378,431
101-30209 Assessing Services 332,000
101-30248 Information Systems Administration 492,581
101-30253 City Treasurer 609,617
101-30851 Insurance Premiums 287,041
101-30906 Debt Retirement 449,750
101-30999 Transfers to Other Funds 845,000
101-40301 Police 10,190,969
101-50336 Fire 3,752,106
101-50338 Central Fire Station 75,000
101-50387 Building Code Inspections and Enforcement 2,296,579
101-60265 City Hall Maintenance 276,491
101-60446 Community Event Support/Downtown BID 103,159
101-60448 Streetlighting 490,000
101-60523 Sanitation 1,969,345
101-60550 Stormwater Management 14,000
101-70276 Cemeteries Maintenance 507,902
101-70751 Parks Maintenance 1,624,617
101-70757 McGraft Park Maintenance 120,076
101-80400 Planning, Zoning and Economic Development 417,911
101-90000 Major Capital Improvements 895,201
Grand Total General Fund Appropriations $28,974,743
OTHER BUDGETED FUNDS
FUND
ACTIVITY
NUMBER FUND/ACTIVITY NAME AMOUNT
202,204 Major Streets and State Trunklines 5,328,443
203 Local Streets 1,819,723
264 Criminal Forfeitures 28,314
BE IT FURTHER RESOLVED that the revenues and other financing sources (including use of
prior year balances) for Fiscal Year 2019-20 are estimated as follows:
GENERAL FUND
FUND/ACTIVITY NAME AMOUNT
Taxes $ 16,062,055
Licenses and Permits 2,500,000
Federal Grants 40,000
State Grants 776,000
State Shared Revenue 4,376,711
Charges for Sales & Services 3,677,210
Interest & Operating Transfers 428,500
Fines & Fees 628,667
Other Revenue 504,000
Total General Fund Revenue
Appropriations $28,993,143
OTHER BUDGETED FUNDS
FUND
ACTIVITY
NUMBER FUND/ACTIVITY NAME AMOUNT
202,204 Major Streets and State Trunklines 6,310,774
203 Local Streets 1,645,452
264 Criminal Forfeitures 5,400
BE IT FURTHER RESOLVED that the operating expense projections for the following non-budget
funds are hereby approved:
FUND
ACTIVITY
NUMBER FUND/ACTIVITY NAME AMOUNT
305 TIFA Debt Service $42,000
394 Downtown Development Authority Debt 1,134,944
290 Local Finance Development Authority Debt 456,100
295 Brownfield Redevelopment Authority (Betten) 30,813
296 Brownfield Redevelopment Authority (Former Mall) 162,000
298 Brownfield Redevelopment Authority (Terrace Point) 225,000
252 Farmers Market & Kitchen 242 200,306
254 L C Walker Arena 1,561,843
404 Public Improvement Fund 1,481,035
482 State Grants Fund 3,850,000
590 Sewer 17,102,424
591 Water 11,008,060
594 Marina/Launch Ramp 638,800
661 Equipment 3,256,214
642 Public Service Building 1,240,852
643 Engineering Services Fund 484,682
677 General Insurance Fund 4,685,656
BE IT FURTHER RESOLVED, that there is hereby appropriated for said fiscal year the several
amounts set forth above which, pursuant to the "Uniform Budget and Accounting Act", define the
City of Muskegon's appropriation centers, and
BE IT FURTHER RESOLVED, that the City Manager is hereby empowered to transfer
appropriations within appropriation centers, and
BE IT FURTHER RESOLVED, that there is hereby levied a general tax as herein fixed on each
dollar of taxable valuation for the purposes herein outlined, said levy to be applied on all taxable
real and personal property in the City of Muskegon as set forth in the assessment roll dated May
2018:
PURPOSE MILLAGE (MILLS)
General Operating 10.0000
Sanitation Service 3.0000
Promotion .0865
Total 13.0865
At a meeting of the City Commission of the City of Muskegon, on the _____________________ Day
of June 2019, the foregoing resolution was moved for adoption by Commissioner
__________________________. Commissioner________________________ supported the motion.
Resolution declared adopted.
_________________________________ __________________________________
Mayor City Clerk
Date: June 20, 2019
To: Honorable Mayor and City Commissioners
From: Planning & Economic Development
RE: Approval of Midtown Square 2 Construction Contracts
SUMMARY OF REQUEST:
Staff is seeking approval of the seven attached contracts totaling $2,999,230 for the
construction of ten attached townhomes and six detached single family homes.
FINANCIAL IMPACT:
$2,999,230 – funded via a loan from the Michigan State Land Bank
BUDGET ACTION REQUIRED:
None
STAFF RECOMMENDATION:
Approval of and authorization to sign the attached construction contracts.
COMMITTEE RECOMMENDATION:
None
6/20/2019
AGENDA ITEM NO. _______________
CITY COMMISSION MEETING __________________________
TO: Honorable Mayor and City Commissioners
FROM: Jake Eckholm, Director of Economic Development
DATE: June 25th, 2019
RE: BoomTown Market Economic Development Revolving Loan Fund Application
SUMMARY OF REQUEST:
BoomTown Market is seeking a loan from the City’s Economic Revolving Loan Fund for $55,000 in
order to complete their necessary capital accrual to open a downtown grocery store in the first floor
of Lakeview Lofts on Western Avenue.
FINANCIAL IMPACT:
$55,000 to be repaid at prime interest rate at time of closing +2% over a 5 year term
BUDGET ACTION REQUIRED:
None at this time.
STAFF RECOMMENDATION:
To authorize the loan application and release necessary funds to BoomTown Market as presented
COMMITTEE RECOMMENDATION:
BOOMTOWN MARKET
BUSINESS PLAN
Prepared by:
Dana Precious
702 4th St
North Muskegon, Michigan 49445
310-717-0399
danaprecious27@gmail.com
dana@boomtownmarket.com
I. EXECUTIVE SUMMARY
BOOMTOWN MARKET (referred to from hereon in as the "Company") is established as
a Limited Liability Company at 848 First St. Muskegon, MI. 49440. with the expectation of
rapid growth in the grocery industry.
Business Description
The Company shall be formed as Limited Liability Company under Michigan state laws and
headed by Dana Precious.
The Company will employ 2 full-time employees and up to 8 part-time employees.
Product
The Company's primary product will be Basic Grocery, Produce, ‘Food To Go’, Organics, Fresh
Meat, Fish, Chicken, Soft Drinks, Beer, Wine, Toiletries, Sundries.
CITY OVERVIEW
Muskegon, MI. has been, in the recent past, a city that was considered irrelevant.
Despite its proximity to the shorelines of Muskegon Lake and Lake Michigan it’s reputation was
one of industry rather than tourism or a living center.
Changes began approximately five years ago with the opening of two craft breweries downtown
and a locally made vodka sold at a local bar. These three businesses renovated existing industrial
buildings downtown and made efforts to retain the original flavor of the historical buildings.
Downtown Muskegon now boasted a lively night scene.
Abandoned buildings suddenly were being renovated into apartments, offices and retail spaces.
New office / residential buildings are springing up by the handful. Several hundred million
dollars flooded into downtown Muskegon for new buildings during 2016 – 2017 alone.
What has not kept pace are groceries and conveniences for the residents and tourists.
There is no grocery store. No convenience market. No beer and wine store. The nearest place to
buy a can of pop or a candy bar is Walgreens or which is nearly a mile away from city center.
The nearest location to purchase beer and wine is half a mile away. However the image this
particular store portrays is not appealing to the demographic that is moving into downtown.
http://www.mlive.com/news/muskegon/index.ssf/2017/11/fast-paced_growth_in_downtown.html
http://www.rapidgrowthmedia.com/features/121417-On-The-Ground-Muskegon-
Lakeshore10.aspx
https://mibiz.com/news/real-estate/item/25774-watch-them-go-once-nearly-vacant-and-
abandoned,-downtown-muskegon-finds-new-life
http://www.mlive.com/news/muskegon/index.ssf/2017/11/fast-paced_growth_in_downtown.html
CONVENIENCE STORE OVERVIEW
Research shows that consumers of the grocery industry primarily focus on the following factors
when making purchasing decisions:
1. Convenience BoomTown Market is within three blocks of at least seven work / live
buildings. 2500 residents and 4000 workers are within a one mile radius of the location.
2. Price The majority of goods for sale will be competitively priced with other local grocery
stores.
3. Product Availability Basic Groceries, ‘cook at home’ items such as boxed pasta, rice.
Toiletries such as disposable razors, shampoo, combs, toothpaste, etc. Sundries such as
suntan lotion, bug spray, toilet paper, diapers, etc. Dog and cat food. The top sellers, as
well as providing the highest profit margins, are: Hot Beverages, Fountain Soda Pop,
Water, Cigarettes, ‘Grab and Go’ food which is prepared meals. ‘Grab and Go’ can range
from a hotdog to a full dinner entrée with sides. This market is not intended to have a full
range of items such as a Kroger. It is intended to fulfill immediate needs in between a
customer’s ‘big grocery shopping day’.
4. Upscale Choices Craft Beer, Wine, Cheese, High End Deli foods.
Legal Issues
The Company affirms that its promoters will acquire all legally required trademarks and patents.
The Company affirms it will obtain all necessary permits for operation.
III. MARKETING SUMMARY
Target Markets
The Company's major target markets are as follows:
Residents
Workers
Students
Boaters
Festival Go-ers
Hotel guests
Pricing Strategy
The Company has completed a thorough analysis of its competitors' pricing. Keeping in mind
our competition's pricing and the costs of customer acquisition, we have determined the
following pricing strategy:
A vast differential exists for price markup and margin of particular items. Items such as those
sold by a convenience store generally have the highest profit margin. ‘Grab and go’ food, candy,
pop, salted snacks, etc,, reflect a 100%+ markup with a 50%+ margin. Hot beverages, bottled
water and fountain drinks reflect a 2,000 – 4,000% markup. Beer and wine reflect a 35%
markup. General groceries reflect a wide range of markup and margin between 35% to 100%+.
Services
First-rate service is intended to be the focus of the Company and a cornerstone of the brand's
success. BoomTown Market employees are expected to be ‘Ambassadors’ for Muskegon. If a
tourist asks for directions or such, they will cheerfully be helped. All customers will receive
conscientious, one-on-one, timely service in all capacities, be they transactions, conflicts or
complaints. This is expected to create a loyal brand following and return business.
S.WO.T REPORT
Strengths, Weaknesses, Opportunities, Threats
STRENGTHS
1. Currently there is no competition. The closest markets are three miles away. There is
nowhere to buy basics such as milk or bread. The only place to buy a can of pop is a
pharmacy ¾ of a mile away from city center. One beer, wine / liquor store is located
approximately ¾ of a mile from city center however it caters to a different demographic.
2. Convenience Store has an ideal location within one block of seven existing or new
apartment and / or condominium buildings. 175 new apartment units within one block of
the location have been added or are in the process of being built within the past year
alone.
3. Muskegon Community College just opened a new building two blocks away with several
hundred students attending daily.
4. Muskegon Culinary Arts school is located one block away with approximately 100
students.
5. The Holiday Inn and Shoreline Hotels have actively been asking for a market for their
hotel guests for the past several years. The Holiday Inn is 2 blocks away from the
location. The Shoreline Hotel is less than ½ mile away.
6. A convention center is scheduled for construction three blocks away. This should attract
several thousand people per year.
7. The resident and / or worker tends to be middle to upper class. Condos sell for upwards
of $350,000 in the immediate area. Rent ranges from $600 - $1,300 per month.
8. The new walking street of small businesses, Western Market, is across the street from this
location.
9. The new Farmer’s Market which draws hundreds of people per week is one block from
the location.
10. Unruly Brewery, 18th Amendment, Pidgeon Hill and Boer’s Head restaurant / bars are
located one to three blocks from the location.
11. Festivals held at Heritage Landing, 3/4 mile away, draw thousands of people 8 - 11 times
during the summer. Yet there is nowhere to buy a bottle of water, etc. unless it is at
Festival Rates inside the gates.
WEAKNESSES
1. The owner is new to the grocery industry.
OPPORTUNITIES
1. Establish a foothold early as the one and only place to buy ‘food on the go’, organic items
and ‘immediate need’ grocery and sundries.
THREATS
1. The city has actively been searching for a large grocery such as Trader Joes. However
after several years no such grocery has committed. I believe this is because the
population may not be large enough to sustain a large grocery – however it is large
enough to sustain a market. The possibility exists a large grocery will come in at a later
date. However this market is not intended, in any case, to try and compete with a Meijer
or a Great Lakes Fresh Market.
IV. FINANCIAL PLAN
Please refer to the BoomTown Market Cash Flow Statements
THANK YOU
351 W. Western Ave Muskegon, MI. 49440
Operating Team Business Overview. BoomTown Market fills a specific and
Dana Precious, Owner urgent need for downtown Muskegon. This area has been
listed for years as a Food Desert by the State of Michigan.
Advisory Board No grocery exists within several miles to purchase basic
Sylvia Precious food items. Hundreds of millions of dollars are pouring into
Eric Seifert the area to create housing and office space. Yet a key
David Susko reason people hesitate to live or work in downtown
Muskegon is the fact that there is no grocery store.
Prospective Customers BoomTown Market fills this need. The existence of
Within One Mile BoomTown Market will help propel economic growth and
2,500 Residents prosperity throughout downtown Muskegon.
4,000 Workers
Marinas Company. The proprietor, Dana Precious, has
Hotels successfully started-up three business, each in a different
Festival Go-ers industry, Henry Ranch Beef, Go Gangnam and Datomana.
Convention Center Dana Precious has 25 years of experience leading global
Students marketing and advertising teams and has been responsible
for over one Billion dollars in budgets.
Particulars
BoomTown Market, LLC Market Opportunity. Little to no competition in the grocery
Law Firm: TBD space exists for a three-mile radius. Research conducted
Accounting Firm: Gunter by BoomTown Market indicates a strong need for basic
grocery, healthy and organic foods, ‘grab and go’ food
Investment Stage: Market
options and more in the downtown Muskegon area.
Opening Imminent
Research also indicates a strong preference for Locally
Current Revenue: $0
Sourced products.
Current Investors:
Market Solution.
$50,000. G.R.O.W.
BoomTown Market will solve this urgent need in downtown
$16,000. Martin Gueulette
Muskegon. The store will sell grocery staples, fresh
$152,000. Northern Initiatives produce (organic as well), fresh meat, chicken and fish,
$10,000. Sylvia Precious ‘grab and go’ foods, sundries, craft beer and wine.
$6,000. David Susko BoomTown intends to purchase Locally Sourced foods for
the majority of the grocery; thereby helping the local
Investment Sought: economy grow even further.
$55,000.
Target Market / Competition. There is no competition as
Use Of Funds: there is no grocery store for miles around. The target
Inventory demographic is the general year round work / live
Working Capital population, tourists, festival go-ers, students, boaters and
hotel guests. Extensive research has provided a strong
Target Launch overview of what types of products will sell to each
July / August, 2019 demographic.
Marketing Sales Strategy. When money is a consideration, as it is with BoomTown Market,
most traditional types of advertising are not recommended. Traditional advertising (Mixture
of TV / Radio / Outdoor) works best when the message reaches the consumer a minimum of
three to five times. This is not possible on the BoomTown Market marketing budget.
Therefore a focus on Publicity, Social Media and some Traditional Advertising is
recommended.
Publicity To Date: Muskegon Chronicle (full page article), MLive.com (Several articles),
Muskegon Times.com (Article), Fox News.com and Fox News (Article / Story), Grand
Rapids Press (Article).
Publicity Upcoming: WZZM BoomTown feature story planned late May. More TBD
through outreach to local news outlets.
Social Media: FaceBook and Twitter have been live and active for three months.
Downtown Muskegon Now (Teaser with BoomTown logo), Blogs upcoming. More TBD
through outreach to campgrounds, marinas, etc.
Traditional Advertising. Radio spots. Grass roots efforts through door hangers and flyers
in the area adjacent to BoomTown Market. Street decals. Sandwich boards announcing
BoomTown set in key downtown locations.
Marketing Messaging Strategy. The brand message strategy is fairly straightforward given
the market conditions surrounding BoomTown. First, and most importantly, make people
aware that a grocery now actually exists in Muskegon. Second, speak to what people are
searching for in terms of products; locally sourced, fresh and organic foods, grab and go
foods, pantry staples, beer, wine, sundries, toiletries, etc.
Pricing Strategy. Some products will, by necessity, be priced approximately 8% more than a
bulk, chain grocery store or because the product is organic. Products that fall into a
‘convenience store’ category will be a similar or same price as any local convenience store.
Management Team. The proprietor, Dana Precious, will be the hands-on, on-site leader of
BoomTown Market. Ms. Precious has experience as the driving force in starting up three
successful companies; each in different industries. She has identified eight local employees
several of whom have experience in the grocery industry. She plans to four employees as of
July, 2019 and add an additional four employees on a part-time basis by November, 2019.
Ms. Precious has managed teams of up to one hundred people.
Financial Projection. BoomTown Market is a start-up company.
Cash Flow Projections: see separate Excel spreadsheet
Investment Opportunity. BoomTown is seeking $55,000. to complete the total project cost
of $289,000. BoomTown Market is approved for $50,000 from Grand Rapids Opportunities
for Women; approved for $152,000 from Northern Initiatives; $32,000 is committed from
Investors.
Asset Type Amount Interest Rate Length
Northern Initiatives $ 152,000 $ 9 7 years BoomTown Loan Structure
Muskegon Revolving Loan Fund $ 55,000 $ 5 5 Years
G.R.O.W. $ 50,000 $ 8 5 Years
Investors / Owner $ 32,000 $ 6 5 Years
Northern Initiatives
53% Muskegon Revolving
Loan Fund
19%
G.R.O.W.
17%
Investors / Owner
11%
COMMISSION MEETING DATE June 25, 2019
Date: June 18, 2019
To: Honorable Mayor and City Commissioners
From: Jeffrey Lewis, Director of Public Safety
RE: Ordinance: Operation of Electric Scooters &
Electric Bikes
_______________________________________________________
SUMMARY OF REQUEST:
The Director of Public Safety requests the City Commission approve the
proposed Ordinance as it pertains to the use of Electric Scooters and Electric Bikes
within the City. This ordinance defines operator age requirements, allowed locations for
operation and operation restrictions in reference to State and City motor vehicle
requirements.
FINANCIAL IMPACT:
None
BUDGET ACTION REQUIRED:
None
STATE EQUALIZED VALUE:
None
STAFF RECOMMENDATION:
To approve the proposed ordinance for use of Electric Scooters & Electric Bikes in the City.
1|P a g e
CITY OF MUSKEGON
MUSKEGON COUNTY, MICHIGAN
ORDINANCE NO. ______
THE CITY OF MUSKEGON ORDAINS:
Chapter ____, Article ______ of the Code of Ordinances of the City of Muskegon, Michigan,
Sections __-___ through __-_____ are enacted as follows:
1. Section ____ “Purpose” is enacted to read as follows:
The purpose of this ordinance shall be to establish an Ordinance within the City to promote
the health, safety and welfare of persons operating Electric Scooters and Electric Bikes
within the City, and to protect the safety of other users of roads and bike trials.
2. Section _________ “Definitions” is enacted to read as follows:
For the purpose of this section, the following words and phrases shall have the following
meanings:
1. Electric Scooter: A light two-wheeled electric vehicle on which the driver
stands on the floorboard or deck. Electric Scooter does not include a Vespa or
Moped-like vehicles, motorcycles, dirt bikes, ORVs, gas Scooters, or any
similar vehicle.
2. Electric Bike: A bicycle with an integrated electric motor which can be used
for propulsion. Electric Bike does not include a Vespa or Moped-like vehicles,
motorcycles, dirt bikes, ORVs, gas Scooters, or any similar vehicle.
3. Operator: Only persons over 14 years of age or those under 14 years of age
but over 12 years of age and under Direct Visual Supervision of an adult who
is in control of the operator.
4. Bike Path: The sections of the Muskegon Lakeshore Trial, which follows the
shore of Muskegon Lake and parallels Lakeshore Drive and Shoreline Drive,
that lie within the City.
5. Direct Visual Supervision: Direct visual observation, by an adult who is in
control of the operator, with the unaided or normally corrected eye, where the
observer is able to come to the immediate aid of the operator.
3. Section ______ “Rules and Regulations” is enacted to read as follows:
This ordinance is to establish guidance in the interest of public safety.
1. Electric Scooters and Electric Bikes may be operated on local roads, public
parks, and the Bike Path.
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2. Electric Shooters and Electric Bikes shall not be operated on or alongside any
sidewalk. Electric Scooters are prohibited on all State trunk roads.
3. Only persons over 14 years of age or those under 14 years of age but over 12
years of age and under Direct Visual Supervision may operate an Electric
Scooter or Electric Bike.
4. Any person who operates an Electric Scooter or Electric Bike on a public road
must adhere to all applicable State and local laws, regulations and ordinances,
including but not limited to those banning the possession and use of alcoholic
beverages, and all other illegal drugs. In addition, no Electric Scooter or
Electric Bike containing any open container of alcohol shall be operated on
public roads.
5. The Operator of an Electric Scooter or Electric Bike shall comply with all
traffic rules and regulations adopted by the State of Michigan and the City
which governs the operation of motor vehicles.
6. An Operator may not allow the number of people in or on an Electric Scooter
or Electric Bike at any one time to exceed the maximum capacity specified by
the manufacturer. The Operator shall not allow passengers to ride on any part
of an Electric Scooter or Electric Bike not designed to carry passengers.
7. In no instances shall an Electric Scooter be operated at a speed greater than 10
miles per hour on the Bike Path.
8. No Electric Scooter or Electric Bike may be operated at a speed greater than
reasonable and prudent for the existing conditions.
9. Electric Scooters and Electric Bikes must be operated at the right edge of the
roadway and must yield to all vehicular and pedestrian traffic.
10. Electric Scooters and Electric Bikes are prohibited from parking on any
sidewalk or any other location that impedes vehicular or foot traffic. All other
parking rules and limits apply.
11. Electric Scooters and Electric Bikes must have basic equipment supplied by
the manufacturer.
4. Section 62.248 “Registration” is enacted to read as follows:
1. All Electric Scooters and Electric Bikes are subject to City registration
requirements imposed upon bicycles.
5. Section 62.249 “Enforcement” is enacted to read as follows:
Violation of the provisions of this Ordinance shall constitute a civil infraction and carry a
penalty of not less than a $100 fine for a first violation, not less than a $250 fine for a first
repeated violation, and not less than a $500 fine for a second repeated offense or any
subsequent repeat offense.
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This ordinance adopted:
Ayes: ___________________________________________________
Nays: ___________________________________________________
Adoption Date: ______________________
Effective Date: ______________________
Publish: _______________________
CITY OF MUSKEGON
By ______________________________
Ann Marie Meisch, MMC
City Clerk
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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 day of , 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 Act No. 267, Public Acts of Michigan
of 1976, as amended, and that minutes were kept and will be or have been made available as
required thereby.
DATED: , 2019
_____________________________________
Ann Marie Meisch, MMC
Clerk, City of Muskegon
Publish: Notice of Adoption to be published once within ten (10) days of final adoption.
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CITY OF MUSKEGON
NOTICE OF ADOPTION
TO: ALL PERSONS INTERESTED
Please take notice that on ___________________, 2019, the City Commission of the City
of Muskegon adopted an amendment to Chapter __________ “______________,” Article
_______ “_________________,” Sections ____-____ “__________” of the Code of Ordinances
of the City of Muskegon, whereby the following change was made:
1. DRAFT AFTER CONSIDERATION.
Copies of the ordinance may be viewed and purchased at reasonable cost at the Office of
the City Clerk in the City Hall, 933 Terrace Street, Muskegon, Michigan, during regular business
hours.
This ordinance amendment is effective ten (10) days from the date of this publication.
CITY OF MUSKEGON
Published: _________________, 2019 By: ______________________________
Ann Marie Meisch, MMC, Its Clerk
------------------------------------------------------------------------------------------------------------
PUBLISH ONCE WITHIN TEN (10) DAYS OF FINAL PASSAGE
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AGENDA ITEM NO. _______________
CITY COMMISSION MEETING __________________________
TO: Honorable Mayor and City Commissioners
FROM: Frank Peterson, City Manager
DATE: June 18, 2019
RE: Convention Center Resolution and Agreements
SUMMARY OF REQUEST:
Staff is seeking approval of the attached Bonding Resolution and two agreements with Muskegon
County. Approval of these three items simultaneously is important, as all three require approval to
move the project forward. The amendment to the development agreement will better clarify the
responsibilities and commitments of all three parties following our decision to adjust the size of the
facility and remove prevailing wage requirements. The Accommodation Tax Allocation Agreement
outlines the County’s commitment to use Accommodation Tax receipts to reimburse the city its costs
associated with the convention center debt. The Bonding Resolution is required 45 days prior to the
issuance of capital improvement bonds.
FINANCIAL IMPACT:
BUDGET ACTION REQUIRED:
None at this time.
STAFF RECOMMENDATION:
To approve the Amendment to the Development Agreement, the Accommodation Tax Allocation
Agreement, and the Bonding Resolution authorizing Issuance of 2019 Capital Improvement Bonds.
COMMITTEE RECOMMENDATION:
SECOND AMENDMENT TO DEVELOPMENT AGREEMENT
This SECOND AMENDMENT TO DEVELOPMENT AGREEMENT relating to the development of a
Convention Center is made this ______ day of June, 2019 (the “Second Amendment”), by and between
the County of Muskegon (“County”), City of Muskegon, (“City”), and Parkland Acquisition Two, LLC
(“Parkland”) and jointly referred to as “Parties”.
RECITALS
WHEREAS, County, City and Parkland are Parties to a Development relating to the construction,
management, financing, and operation of a Convention Center to be located in the City dated June 12,
2018 (“Development Agreement”); and
WHEREAS, the Parties entered into a First Amendment to the Development Agreement by way of
separate documents specifically being a letter from Mark Eisenbarth (Muskegon County Administrator) to
Frank Peterson (Muskegon City Manager) dated May 10, 2019, with attached copy of Minutes from the
Muskegon County Board of Commissioners, undated letter from Jon Rooks (Parkland Acquisition Two, LLC
Manager) to Frank Peterson, and Minutes of Muskegon City Commission Meeting on May 28, 2019; and
WHEREAS, County, City and Parkland wish to further amend the Development Agreement on the
terms and conditions set forth in this Second Amendment (“Second Amendment”).
NOW, THEREFORE, THE PARTIES AGREE AS FOLLOWS:
1. 1. INCORPORATION OF RECITALS AND DEFINED TERMS. The above recitals are
hereby incorporated into this Second Amendment as if fully set forth herein. Except as modified by the
First and Second Amendment, the Development Agreement shall remain in full force and effect.
2. The parties acknowledge that as of June 4, 2019 the Holiday Inn Muskegon-Harbor,
located at 939 Third Street, Muskegon Michigan has been rebranded to a Delta by Marriot.
3. Since June 12, 2018, the Parties have been working on the design and size of the
Convention Center, which impacts the financial commitments associated with the Convention Center. As
such, certain paragraphs of the First Amended Development Agreement need to be changed.
4. Paragraph 1.1 shall be revised to read as follows:
1.1 Property. Parkland agrees to undertake and fund a PIP (product improvement plan) and
renovate the Property currently known as the Delta by Marriott to meet current brand standards
associated with a Qualifying Brand hotel, and re-open as such at or before the scheduled opening of the
Convention Center. Parkland’s PIP shall include remodeling of the Hotel’s banquet rooms and hallway
adjacent to the Convention Center, in accordance with the standards for a Quality Brand Franchise.
Parkland will attempt to match the design of these areas with the know design of the Convention Center,
in order to achieve consistency and uniformity between these areas and the Convention Center. In the
event Parkland commences renovations of these areas prior to the receipt of a final design from the City,
Parkland and City shall work together to incorporate Parkland’s renovations into the final design of the
Convention Center. City and Parkland shall grant to each other an irrevocable access agreement through
The Delta by Marriott to the Convention Center and through the Convention Center to the Delta by
Marriott, which shall be more fully described in a separate agreement. To the extent that it controls
majority ownership of the Property, Parkland, or any successor owner of Delta by Marriott shall maintain
a Qualifying Brand franchise at the Property until December 31, 2050. Should Parkland or any successor
owner of Delta by Marriott dispose of majority ownership control of the Property or should it cease
operations as a productive hotel asset without having the new owner(s) of a majority ownership control
of the Property reaffirm, or in the case of transfer of the Property assume, Parkland’s obligation
hereunder, at the time of such event, the County would have the option to collect from Parkland or its
successor owner of Delta by Marriott, if required, any calculated remaining shortfall in downtown PA 59
funding required to ameliorate the remaining debt service obligations associated with the construction of
the Project. Commencing October 1, 2019 and within 90 days of the end of the City’s fiscal year thereafter,
the City shall report to the Parties the amount owed the City for the immediately preceding calendar year
as well as all increases and reductions in the debt from the prior reporting period.
5. Paragraph 1.2 shall be revised to read as follows:
1.2 Special Assessment. Until December 31, 2050, which may be extended by the City for up
to four additional years if City has not been fully compensated for expenses relating to the
Convention Center, the specifically-enacted additional 4.0% PA 59 lodging tax assessment from
the PA 59 Authority in downtown Muskegon will not be reduced or removed without the consent
of the County. Parkland shall place a restrictive covenant that runs with the land on both
properties (the Delta by Marriott and the Shoreline Inn) requiring both to support and vote in
favor of the 4% PA 59 assessment so long as the matching PA 263 funds are paid by the County,
until the Convention Center debt is paid in full but no longer than four years from the original
deadline.
6. Paragraph 3.1 shall be amended to read as follows:
3.1 Construction. Attached to the Delta by Marriott hotel structure on the Property, and
possibly the Walker Arena (but not any other structure) the City shall construct, at its own cost, a
Convention Center integrating a carpeted, sub-dividable Multipurpose Hall of a minimum of 17,500
contiguous square feet and additional pre-function space. Including circulation, support and back-of-
house space, the total square footage of the Convention Center will not be lower than 35,000 square
feet. County may provide input to City as to the final design for the Convention Center, but recognizing
that the Convention Center needs to be required size and limited expense it is City’s sole obligation to
approve the final design of the Convention Center. Final Convention Center construction cost figures
will be determined upon the subsequent design stage, but will not represent less than $12.0 million in
land acquisition and construction expenditures by the City and no more than $20 million in land
acquisition, construction costs, furniture, fixtures and equipment. To the extent that the total cost
exceeds $20 million, City is solely obligated to make such payment unless the County, in its sole
discretion, agrees to the expense and then the payment shall be made from PA 263 funds. The County
and City will pursue additional funding sources to complement the commitment, which could include
State grant funding, excess PA 59 and PA 263 funds, and other sources.
City shall insure the employment of local businesses and local workers in the construction of the
Convention Center “Local” shall mean located in or residence in Muskegon County.
7. Paragraph 3.2 shall be amended to read as follows:
3.2 Ownership. The Convention Center will be publicly-owned by the City. The City
reserves the right to effectuate a transfer of full or partial ownership of the Convention Center to
another governmental or quasi-governmental entity or authority, which includes the City and/or County,
at a future time if deemed to be in the best interests of the City and residents.
In the event the City decides to transfer full or partial ownership of the Convention Center to a
private for profit entity prior to December 31, 2050, Parkland would receive the first purchase bid
opportunity and would be afforded the right to match any competitive purchase bid from those parties,
as consolidated operations of the Convention Center and Property is ultimately desired and considered
to be in the best interests of the Project and the investment of the City. The net proceeds, including the
payment of all closing costs and payment of all loans related to the Convention Center, including from
the City or County, of such a sale, shall be split equally between the City and County.
Parkland’s option under this paragraph shall terminate with respect to such purchaser;
provided, however, that if the City does not close under the same or more favorable terms to the City,
as presented to Parkland, then the Parkland’s option shall continue as to any subsequent proposed sales
or transfers of ownership of the Convention Center and Parkland shall have the right to specifically
enforce the terms of this option against the purchaser and anyone claiming through the purchaser. The
options herein granted shall also survive any transfer of ownership and bind any future owner of the
Convention Center in favor of such new owner so long as Parkland is the owner of the attached hotel
and no later than December 31, 2050.
In the event the City receives a bona-fide offer from a purchaser who wants to buy City owned
land as of the effective date of this Development Agreement within one mile of the Convention Center
prior to December 31, 2028 to build a hotel, then Parkland shall have a right of first refusal to buy the
property on the same terms, for a period of two months.
8. Paragraph 7.7 shall be amended to read as follows:
7.7 Cancellation Fee. In the event the City does not complete a convention center per Section 3.1
by March 31, 2021, or if the City or County terminate this Agreement, Parkland shall be entitled to
recover a cancellation fee equal to the room tax collected at the increased nine (9) percent rates for the
Shoreline Inn and during the four (4) years following the termination from the County and the PA 59
Authority, respectively with respect to the taxes they each collect, for the purpose of compensating
Parkland for the cost of improving the hotel and other improvements situated upon the Property and for
making a long term commitment to a Qualifying Brand Franchise, all of which it would never have done
in the absence of this Agreement. The parties acknowledge that Parkland’s loss from a termination of
this Agreement is difficult to estimate and the cancellation fee is a reasonable calculation. Payment of
the cancellation fee shall bar Parkland from recovering any other monetary remedy associated with the
Agreement’s termination. The PA 59 Authority shall remain in existence for as long as it is necessary to
fulfil the obligations of this paragraph. All payments by the PA 59 Authority to the City or County shall
be paid to Parkland until Parkland is fully paid the cancellation fee. The City’s and County’s obligations
under Section 3.3 to make other new lodging enterprises subject to the tax levied by the PA 59 Authority
shall survive the termination of this Agreement until the obligations of this paragraph are fully
performed. The parties agree that Paragraph 7.7 shall survive any termination of this Agreement.
10. Paragraph 8.4 shall be amended to read as follows:
8.4 Amendment. No amendment or modification to or of this Agreement shall be binding
upon any party hereto until such amendment or modification is reduced to writing and executed by the
County Administrator for the County of Muskegon, the City Manager for the City of Muskegon, and a
Manager for Parkland Acquisition Two, LLC.
THIS SECOND AMENDMENT IS HEREBY EFFECTIVE ON THE DATE IDENTIFIED ABOVE.
MUSKEGON COUNTY
BOARD OF COMMISSIONERS
Dated: _________________, 2019 By:_________________________________
Susie Hughes, its Chair
Dated: _________________, 2019 By:_________________________________
Nancy Waters, Muskegon County Clerk
CITY OF MUSKEGON
Dated: _________________, 2019 By:_________________________________
Stephen Gawron, its Mayor
Dated: _________________, 2019 By:_________________________________
Ann Marie Meisch, its Clerk
PARKLAND ACQUISITION TWO, LLC
a Michigan Limited Liability Company
Dated: _________________, 2019 By:_________________________________
Jon Rooks, Its Manager
ALLOCATION OF ACCOMMODATION TAX COLLECTION AGREEMENT
This Allocation of Accommodation Tax Collections Agreement (“Agreement”) is made
this _______ day of __________, 2019 (“Effective Date”) by and between the County of
Muskegon (“County”) and the City of Muskegon (“City”), pursuant to the following terms.
RECITALS
1) County levies an Accommodation tax upon all businesses in Muskegon County providing
accommodations pursuant to Public Act 263 of 1974 being MCL 141.861, et. seq. (“PA
263).
2) Parkland Acquisitions Two, LLC or related entities (“Parkland”) owns and operates the
only hotels located in the City, those being the Holiday Inn Muskegon Harbor (to be
branded as Delta by Marriott) located at 933 Third Street and the Shoreline Inn Hotel
located at 750 Terrace Point Boulevard. Parkland in November of 2017 began collecting
a 4% per room assessment pursuant to Act 59 of 1984, being MCL 141.871 (“PA 59”).
Parkland is the PA 59 Board. The PA 59 Board has and will continue to transfer the PA
59 Funds to the County for tourism marketing of a proposed convention center.
3) The City, County and Parkland have entered into a “Development Agreement” for the
design, construction, operation and ownership of a proposed convention center. City has
agreed to develop, construct, and own a convention center located between the Holiday
Inn Muskegon Harbor on the east, the L.C. Walker Arena on the west, Shoreline Drive on
the north and Western Avenue on the south. Conceptually, the convention center shall be
a carpeted, sub-dividable Multipurpose Hall of a minimum of 20,000 contiguous square
feet and additional carpeted breakout meeting rooms totaling a minimum of 5,000 square
feet, with circulation, support and back-of-house space, the total square footage of the
Convention Center is anticipated to be not less than 35,000 square feet.
4) The City and County have previously entered into a “Letter of Understanding Between
the County of Muskegon, the City of Muskegon and Parkland Acquisitions Two, LLC”
(“Letter of Understanding”) relating to the payment by City to Progressive AE for
architecture and engineering (“Progressive”). Pursuant to the Letter of Understanding,
Progressive performs services relating to the design and input during construction of a
convention center and bills the City and the County reimburses the City from the
County’s Accommodation tax.
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5) County has agreed to transfer PA 263 Funds to City for the design, construction, major
repairs of the Convention Center and for City incurred expenses relating to the
Convention Center as more fully described below.
NOW THEREFORE, THE PARTIES AGREE AS FOLLOWS:
1.0 COUNTY OBLIGATIONS
1.1 County shall levy not less than 5% of the amount charged transient guests
for lodging in any motel/hotel as provided for and defined in PA 263.
County shall receive the transferred PA 59 Funds from Parkland.
1.2 From the PA 263 Funds held by the County, the County shall remit to the
City such amounts as are necessary to pay for the design and construction,
including the acquisition of furniture, fixtures and equipment and the
hiring of outside advisors, related to the Convention Center, which will be
more specifically described in other documents. The County consents to
using no less than one hundred sixty percent (160%) of the County Room
Tax from PA 263 in the City of Muskegon tax collection to pay bond
payments on the City’s debt.
1.3 County’s obligations to transfer to the City the County Accommodation
Tax collected shall cease on rooms rented after December 31, 2050,
except that City may extend the term for up to four additional years if City
has not been fully compensated for expenses relating to the Convention
Center.
1.4 Within sixty days after the execution of this Agreement by both City and
County, County shall transfer to City any monies owed pursuant to
paragraph 1.2 since Parkland commenced collecting PA assessments on its
hotels, less any monies transferred pursuant to the “Letter of
Understanding Between the County of Muskegon, the City of Muskegon
and Parkland Acquisitions Two, LLC”. All other monies owed pursuant
to Paragraph 1.2 shall be made to City no later than 30 days after the
County collects such monies.
2.0 CITY OBLIGATIONS
2.1 City shall design and construct, at its own cost, a Convention Center
integrating a carpeted, sub-dividable Multipurpose Hall of a minimum of
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17,500 contiguous square feet and additional pre-function space, with the
total square footage of the Convention Center will not be lower than
35,000 square feet.
2.2 To the extent that the City is obligated or agrees to pay any expense
related to the Convention Center, City may use the monies transferred to
the City pursuant to Paragraph 1.2. However, to the extent that the total
cost to open the proposed convention center exceeds $20 million, City is
solely obligated to make such payment, unless the County, in its sole
discretion, agrees to the expense in excess of $20 million and then the
payment shall be made from PA 263 funds. City may not use the monies
paid pursuant to paragraph 1.2 for any purpose other than the convention
center.
2.3 To the extent that the City makes payments relating to the Convention
Center in excess of the monies collected pursuant to paragraph 1.2, City
may make such expense and reimburse itself as PA 263 funds are
provided.
2.4 Commencing October 1, 2019 and within 90 days of the end of the City’s
fiscal year thereafter, the City shall report to County the amount owed to
the City for bonded indebtedness and Paragraph 2.3 for the immediately
preceding calendar year as well as all increases and reductions in the debt
from the prior reporting period.
2.5 After notice to County and subject to input from the County, City may
undertake capital improvements, meaning any and all building additions,
alterations, renovations, repairs and improvements to the Convention
Center, excluding “routine maintenance” and “minor repairs”. “Routine
Maintenance” means any preventative or cyclical maintenance that is an
essential part of the ongoing care and upkeep of the land, building, and
equipment contained within the building. Routine Maintenance shall also
include any on-going maintenance necessary to prevent the failure of
critical and non-critical building systems and equipment. Examples of
Routine Maintenance include filter changes, painting, caulking, sealing,
pest control, faulty hardware, replacement, carpet cleaning, tile and grout
cleaning, plumbing repairs replacement of faulty lights/fixtures/wiring,
and upkeep of alarms, detectors, surveillance systems, and energy
management systems. Minor repairs shall be defined as land, building and
equipment repairs of non-routine nature costing less than $5,000, which is
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to be increased by the consumer price index on the first of each year, per
repair. The County shall only be responsible for providing funding from
the future growth in the PA 263 and PA 59 to support the cost of capital
improvements.
3.0 GENERAL PROVISIONS
3.1 This is the entire agreement, including attachments, between the parties as
to its subject. It shall not be amended or modified except in writing signed
by County Administrator for the County and City Manager for the City. It
shall not be affected by any course of dealing and the waiver of any breach
shall not constitute a waiver of any subsequent breach of the same or any
other provision. This Agreement shall be interpreted and construed in
accordance with Michigan law, and the parties agree to jurisdiction and
venue within the courts for the County of Muskegon.
3.2 Effective upon execution of this Agreement and the payment of any monies
owed pursuant to paragraph 1.2 of this Agreement the “Letter of
Understanding Between the County of Muskegon, the City of Muskegon
and Parkland Acquisitions Two, LLC” shall be terminated.
3.3 Any and all notices and other communications required or permitted to be
given hereunder shall be in writing, addressed to the parties at the
addresses specified below or such other addresses as either party may
direct by notice given in accordance with this section, and shall be
delivered in one of the following manners: (i) by personal delivery, in
which case notice shall be deemed to have been duly given when
delivered; (ii) by certified mail, return receipt requested, with postage
prepaid, in which case notice shall be deemed to have been duly given on
the date indicated on the return receipt; (iii) by reputable delivery service
(including by way of example and not limitation, Federal Express, UPS
and DHL) which makes a record of the date and time of delivery, in which
case notice shall be deemed to have been duly given on the date indicated
on the delivery service’s record of delivery; or by email, with receipt of
the communication being acknowledged by the recipient.
If to the County: County of Muskegon
Administration, 4th Floor
990 Terrace St.
Muskegon, Michigan 49442
Attention: Mark Eisenbarth
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With a Copy To: Williams Hughes, PLLC
County of Muskegon Corporate Counsel
120 W. Apple Avenue, PO Box 599
Muskegon, Michigan 49443-0599
Attention: Douglas M. Hughes
If to the City: City of Muskegon
933 Terrace Street
Muskegon, Michigan 49440
Attention: Frank Peterson, City Manager
With a Copy To: Parmenter Law
City of Muskegon Corporate Counsel
601 Terrace Street
Muskegon, Michigan 49440
Attention: John C. Schrier
3.4 If any clause, provision or section of this Agreement shall be ruled invalid
or unenforceable by any court of competent jurisdiction, the invalidity or
unenforceability of such clause, provision or section shall not affect the
validity of any of the remaining clauses, provisions or sections of this
Agreement.
3.5 This Agreement may be executed in counterparts, each of which shall be
an original and all of which shall constitute the same instrument. An
executed copy of this Agreement may be delivered by either party by
electronic transmission and such execution and delivery shall be
considered valid, binding and effective for all purposes.
3.6 The captions and headings in this Agreement are for convenience only and
in no way limit, define or describe the scope or intent of any provision of
this Agreement.
3.7 The parties agree to execute such further agreements or instruments as
may be reasonably necessary to implement the terms of this Agreement, so
long as such agreements or instruments do not amend or modify the terms
of this Agreement or either party’s obligations hereunder. The parties
further covenant to work in good faith to implement the terms of this
Agreement, to permit the development of the Project in accordance with
the terms hereof, and to meet as and when reasonably required in order to
address issues of concern to either party in connection with the
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development of the Project and the matters contemplated under this
Agreement.
3.8 Both parties to this Agreement have participated fully and equally in the
negotiation and preparation hereof. Therefore, this Agreement shall not be
more strictly construed or any ambiguities within this Agreement resolved
against either party hereto.
WHEREFORE, this Agreement has been executed as of the Effective Date.
MUSKEGON COUNTY
BOARD OF COMMISSIONERS
Dated: _________________, 2019 By:_________________________________
Susie Hughes, its Chair
Dated: _________________, 2019 By:_________________________________
Nancy Waters, Muskegon County Clerk
CITY OF MUSKEGON
Dated: _________________, 2019 By:_________________________________
Stephen Gawron, its Mayor
Dated: _________________, 2019 By:_________________________________
Ann Marie Meisch, its Clerk
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RESOLUTION AUTHORIZING ISSUANCE OF
2019 CAPITAL IMPROVEMENT BONDS
(LIMITED TAX GENERAL OBLIGATION) (TAXABLE)
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 June 11, 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, State of Michigan (the “City”),
has previously determined that it is necessary to pay 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 City, the County of Muskegon (the “County”) and Parkland Acquisition
Two, LLC (the “Developer”), have entered into a Development Agreement (as amended, the
“Development Agreement”), pursuant to which the Project will be constructed and financed; and
WHEREAS, pursuant to the Development Agreement, the County has agreed to pay to the
City certain excise taxes on hotel rooms levied by the County pursuant to Act 263, Public Acts of
Michigan, 1974, as amended (“Act 263”) to be used for the Project (the “Act 263 Revenues”); and
WHEREAS, the City deems it necessary to borrow the principal amount of not to exceed
Twenty Million Dollars ($20,000,000) and issue capital improvement bonds (the “Bonds” as
further defined below) pursuant to Act 34, Public Acts of Michigan, 2001, as amended (“Act 34”),
to pay part of the cost of the Project; and
WHEREAS, the City has previously published a notice of intent to issue the Bonds in
accordance with Act 34, which provides that the Bonds may be issued without a vote of the electors
of the City unless a proper petition for an election on the question of the issuance of the Bonds is
filed with the City Clerk within a period of forty-five (45) days from the date of publication and
no petition has been filed as of this date; and
WHEREAS, the City desires to negotiate the sale of the Bonds to Robert W. Baird & Co.
(the "Underwriter") within the parameters established by this Resolution.
NOW, THEREFORE, BE IT RESOLVED THAT:
MILLER, CANFIELD, PADDOCK AND STONE, P.L.C.
1. Authorization of Bonds; Bond Terms. Bonds of the City designated 2019 Capital
Improvement Bonds (Limited Tax General Obligation) (Taxable) (the “Bonds”) are authorized to
be issued in the aggregate principal sum of not to exceed Twenty Million Dollars ($20,000,000)
for the purpose of paying all or part of the costs of the Project and the costs incidental to the
issuance, sale and delivery of the Bonds. The issue shall consist of bonds in fully-registered form
of the denomination of $5,000, or multiples thereof not exceeding for each maturity the maximum
principal amount of that maturity, numbered consecutively in order of registration. The Bonds
will be dated as of the date of delivery (or such other date as determined at the time of sale thereof),
be payable on April 1 in the years 2020 to 2049, inclusive (or such other date and in such years as
determined at the time of sale thereof), in the annual amounts determined at the time of sale and
be subject to redemption in the manner and at the times and prices to be determined at the time of
sale by the City Manager, Finance Director or City Clerk (each, an “Authorized Officer” and
collectively, the “Authorized Officers”).
The Bonds shall bear interest at a rate or rates to be determined at the time of sale thereof,
but in any event not to exceed six percent (6.00%) per annum, first payable on October 1, 2019
and semiannually thereafter each April 1 and October 1, by check or draft mailed by the Transfer
Agent (as hereinafter defined) to the registered owner of record as of the 15th day of the month
prior to the payment date for each interest payment. The record date of determination of registered
owner for purposes of payment of interest as provided in this paragraph may be changed by the
City to conform to market practice in the future. The principal of the Bonds shall be payable at
The Huntington National Bank, Grand Rapids, Michigan, which is hereby selected to act as the
transfer agent for the Bonds (the “Transfer Agent”).
2. Execution of Bonds; Book-Entry-Only Form. The Bonds of this issue shall be
executed in the name of the City with the manual or facsimile signatures of the Mayor and City
Clerk and shall have the seal of the City, or a facsimile thereof, printed or impressed on the Bonds.
No Bond executed by facsimile signatures shall be valid until authenticated by an authorized
officer or representative of the Transfer Agent.
The Bonds may be issued in book-entry-only form through the Depository Trust Company
in New York, New York (“DTC”) and any Authorized Officer is authorized to execute such
custodial or other agreement with DTC as may be necessary to accomplish the issuance of the
Bonds in book-entry-only form and to make such changes in the Bond form within the parameters
of this resolution as may be required to accomplish the foregoing.
3. Transfer of Bonds. The Transfer Agent shall keep the books of registration for this
issue on behalf of the City. Any Bond may be transferred upon such registration books by the
registered owner of record, in person or by the registered owner’s duly authorized attorney, upon
surrender of the Bond for cancellation, accompanied by delivery of a duly executed written
instrument of transfer in a form approved by the Transfer Agent. Whenever any Bond or Bonds
shall be surrendered for transfer, the City shall execute and the Transfer Agent shall authenticate
and deliver a new Bond or Bonds, for like aggregate principal amount. The Transfer Agent shall
require the payment by the bondholder requesting the transfer of any tax or other governmental
charge required to be paid with respect to the transfer.
4. Security for the Bonds; Limited Tax Pledge; Defeasance of Bonds. The City hereby
MILLER, CANFIELD, PADDOCK AND STONE, P.L.C.
-2-
pledges its limited tax full faith and credit for the prompt payment of the principal and interest on
the Bonds. The City shall, each year budget the amount of the debt service coming due in the next
fiscal year on the principal of and interest on the Bonds and shall advance as a first budget
obligation from its general funds available therefor, or, if necessary levy taxes upon all taxable
property in the City subject to applicable constitutional, statutory and charter tax rate limitations,
such sums as may be necessary to pay such debt service in said fiscal year.
The City Treasurer is authorized and directed to open a separate fund to be known as the
2019 CAPITAL IMPROVEMENT BONDS DEBT RETIREMENT FUND (the "Debt Retirement
Fund"), the moneys to be deposited into the Debt Retirement Fund to be specifically earmarked
and used solely for the purpose of paying principal of and interest on the Bonds as they mature.
There shall be paid into the Debt Retirement Fund any Act 263 Revenues or other moneys intended
for the payment of the Bonds.
In the event cash or direct obligations of the United States or obligations the principal of
and interest on which are guaranteed by the United States, or a combination thereof, the principal
of and interest on which, without reinvestment, come due at times and in amounts sufficient to pay
at maturity or irrevocable call for earlier optional redemption, the principal of, premium, if any,
and interest on the Bonds, shall be deposited in trust, this resolution shall be defeased and the
owners of the Bonds shall have no further rights under this resolution except to receive payment
of the principal of, premium, if any, and interest on the Bonds from the cash or securities deposited
in trust and the interest and gains thereon and to transfer and exchange Bonds as provided herein.
5. Construction Fund; Proceeds of Bond Sale. The City Treasurer is authorized and
directed to open a separate account to be known as the 2019 CAPITAL IMPROVEMENT BONDS
CONSTRUCTION FUND (the “Construction Fund”). The Treasurer shall deposit the proceeds of
the Bonds less accrued interest and capitalized interest, if any, which shall be deposited into the
Debt Retirement Fund. The moneys in the Construction Fund shall be used solely to pay the costs
of the Project and the costs of issuance of the Bonds.
6. Bond Form. The Bonds shall be in substantially the following form with such
changes as may be required to conform the Bond to the final terms of the Bonds established by the
Sale Order:
MILLER, CANFIELD, PADDOCK AND STONE, P.L.C.
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UNITED STATES OF AMERICA
STATE OF MICHIGAN
COUNTY OF MUSKEGON
CITY OF MUSKEGON
2019 CAPITAL IMPROVEMENT BOND
(LIMITED TAX GENERAL OBLIGATION)(TAXABLE)
Date of
Interest Rate Maturity Date Original Issue CUSIP
Registered Owner: April 1, 20___ ________, 2019
Principal Amount: Dollars
The City of Muskegon, County of Muskegon, State of Michigan (the “City”), acknowledges itself to owe
and for value received hereby promises to pay to the Registered Owner specified above, or registered assigns, the
Principal Amount specified above, in lawful money of the United States of America, on the Maturity Date specified
above, unless prepaid prior thereto as hereinafter provided, with interest thereon (computed on the basis of a 360-day
year consisting of twelve 30-day months) from the Date of Original Issue specified above or such later date to which
interest has been paid, until paid, at the Interest Rate per annum specified above, first payable on October 1, 2019 and
semiannually thereafter. Principal of this bond is payable at the corporate trust office of The Huntington National
Bank, Grand Rapids, Michigan, or such other transfer agent as the City may hereafter designate by notice mailed to
the registered owner not less than sixty (60) days prior to any interest payment date (the “Transfer Agent”). Interest
on this bond is payable to the registered owner of record as of the 15th day of the month preceding the interest payment
date as shown on the registration books of the City kept by the Transfer Agent by check or draft mailed by the Transfer
Agent to the registered owner of record at the registered address.
This bond is one of a series of bonds of even Date of Original Issue aggregating the principal sum of
$_______________, issued pursuant to the provisions of Act 34, Public Acts of Michigan, 2001, as amended and
pursuant to a resolution of the City Commission of the City adopted on __________, 2019 for the purpose of paying
the cost of various capital improvements for the City.
This bond, including the interest thereon, is payable as a first budget obligation from the general funds of the
City, and the City is required, if necessary, to levy ad valorem taxes on all taxable property in the City for the payment
thereof, subject to applicable constitutional, statutory and charter tax rate limitations.
Bonds of this issue maturing in the years 20__ to 20__, inclusive, shall not be subject to redemption prior to
maturity. Bonds or portions of bonds of this issue in multiples of $5,000 maturing in the year 20__ and thereafter
shall be subject to redemption prior to maturity, at the option of the City, in any order of maturity and by lot within
any maturity, on any date on or after ____ 1, 20__, at par and accrued interest to the date fixed for redemption.
[Insert Term Bond Provisions, if applicable.]
In case less than the full amount of an outstanding bond is called for redemption, the Transfer Agent, upon
presentation of the bond called in part for redemption, shall register, authenticate and deliver to the registered owner
of record a new bond in the principal amount of the portion of the original bond not called for redemption.
Notice of redemption shall be given to the registered owner of any bond or portion thereof called for
redemption by mailing of such notice not less than thirty (30) days prior to the date fixed for redemption to the
registered address of the registered owner of record. A bond or portion thereof so called for redemption shall not bear
interest after the date fixed for redemption, whether presented for redemption or not, provided funds are on hand with
the Transfer Agent to redeem said bond or portion thereof.
MILLER, CANFIELD, PADDOCK AND STONE, P.L.C.
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This bond is transferable only upon the registration books of the City kept by the Transfer Agent by the
registered owner of record in person, or by the registered owner’s attorney duly authorized in writing, upon the
surrender of this bond together with a written instrument of transfer satisfactory to the Transfer Agent duly executed
by the registered owner or the registered owner’s attorney duly authorized in writing, and thereupon a new registered
bond or bonds in the same aggregate principal amount and of the same maturity shall be issued to the transferee in
exchange therefor as provided in the resolution authorizing this bond and upon the payment of the charges, if any,
therein prescribed.
It is hereby certified and recited that all acts, conditions and things required by law to be done, precedent to
and in the issuance of this bond and the series of bonds of which this is one, exist and have been done and performed
in regular and due form and time as required by law, and that the total indebtedness of the City, including this bond
and the series of bonds of which this is one, does not exceed any constitutional, statutory or charter debt limitation.
This bond is not valid or obligatory for any purpose until the Transfer Agent’s Certificate of Authentication
on this bond has been executed by the Transfer Agent.
IN WITNESS WHEREOF, the City, by its City Commission, has caused this bond to be signed in the name
of the City by the facsimile signatures of its Mayor and City Clerk and a facsimile of its corporate seal to be printed
hereon, all as of the Date of Original Issue.
CITY OF MUSKEGON
County of Muskegon
State of Michigan
By:
Its: Mayor
(SEAL)
By:
Its: City Clerk
(Form of Transfer Agent’s Certificate of Authentication)
CERTIFICATE OF AUTHENTICATION
This bond is one of the bonds described in the within-mentioned resolution.
THE HUNTINGTON NATIONAL BANK
Grand Rapids, Michigan
Transfer Agent
_______________________
Transfer Agent
By:
Authorized:
DATE OF REGISTRATION:
[Bond printer to insert form of assignment]
MILLER, CANFIELD, PADDOCK AND STONE, P.L.C.
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7. Useful Life of Project. The estimated period of usefulness of the Project is hereby
declared to be not less than thirty (30) years.
8. Negotiated Sale. The City Commission has considered the option of selling the
Bonds through a competitive sale and a negotiated sale and, pursuant to the requirements of Act
34, based on the advice of its financial advisor, determines that a negotiated sale of the Bonds will
allow more flexibility in accessing the municipal bond market, and to price and sell the Bonds at
the time that is expected to best achieve the most advantageous interest rates and costs to the City,
and will provide the City with greater flexibility in structuring bond maturities and adjusting terms
for the Bonds.
9. Bond Purchase Agreement; Delegation to Authorized Officer; Sale Order. The
Authorized Officers are each individually authorized to negotiate the sale of the Bonds to the
Underwriter, negotiate and execute a bond purchase agreement with the Underwriter, execute a
Sale Order specifying the final terms of the Bonds and take all other necessary actions required to
effectuate the sale, issuance and delivery of the Bonds within the parameters authorized in this
resolution.
10. Adjustment of Bond Terms. The Authorized Officers are each individually
authorized to adjust the final bond details as set forth herein to the extent necessary or convenient
to complete the sale of the Bonds and in pursuance of the foregoing are each authorized to exercise
the authority and make the determinations pursuant to Sections 315(1)(d) of Act 34, including but
not limited to determinations regarding interest rates, prices, discounts, maturities, principal
amounts, denominations, date of issuance, interest payment dates, redemption rights, and other
matters within the parameters established by this resolution; provided that the principal amount of
Bonds issued shall not exceed the principal amount authorized in this resolution, the interest rate
per annum on the Bonds shall not exceed 6.00% per annum and the underwriter’s discount shall
not exceed 0.75% of the par amount of the Bonds.
11. Continuing Disclosure Undertaking. The City covenants to enter into a continuing
disclosure undertaking for the benefit of the holders and beneficial owners of the Bonds in
accordance with the requirements of Rule 15c2-12 promulgated by the Securities and Exchange
Commission, and each of the Authorized Officers are authorized to execute such undertaking prior
to delivery of the Bonds.
12. Bond Counsel. Miller, Canfield, Paddock and Stone, P.L.C. is hereby approved
as bond counsel for the Bonds, notwithstanding periodic representation in unrelated matters of
the Underwriter and other parties or potential parties to the transaction contemplated by this
resolution.
13. Authorization of other Actions. The Authorized Officers are each authorized and
directed to (a) approve the circulation of a preliminary official statement describing the Bonds
and to deem the preliminary official statement "final" for purposes of Rule 15c2-12 of the SEC;
(b) approve the circulation of a final official statement describing the Bonds and to execute the
same on behalf of the City; (c) solicit bids for and approve the purchase of a municipal bond
insurance policy for the Bonds, if deemed economically advantageous to the City; and (d) do all
other acts and take all other necessary procedures required to effectuate the sale, issuance and
MILLER, CANFIELD, PADDOCK AND STONE, P.L.C.
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delivery of the Bonds.
14. Rescission. 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 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 June 11, 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, and that the minutes of said meeting were kept and will be or
have been made available as required by said Act.
____________________________________
Ann Marie Meisch
City Clerk
33687634.2\063684-00045
MILLER, CANFIELD, PADDOCK AND STONE, P.L.C.
-7-
Commission Meeting Date: June 25, 2019
Date: June 20, 2019
To: Honorable Mayor and City Commissioners
From: Planning & Economic Development
RE: Request for Final Planned Unit Development (PUD) Approval
including Street Vacations – The Docks
SUMMARY OF REQUEST:
Request for final PUD approval for The Docks development at 3400, 3460, 3474 Wilcox
Ave, 1875 Waterworks Rd and 1490 Edgewater St. This request also includes the
request to vacate Edgewater St, north of Lot 80 and the following unimproved
streets within the Edgewater Plat, those being Arlington Ave, west of lot 24;
Windward Dr, west of Lot 46; Brighton Ave, west of Lot 66; Manhattan Ave, west of
the existing cul-de-sac portion of Edgewater St; and Edgewater St north of the
existing cul-de-sac.
FINANCIAL IMPACT:
None
BUDGET ACTION REQUIRED:
None
STAFF RECOMMENDATION:
Staff recommends approval of the PUD with the condition to add more street trees and
to work with the staff arborist on marking trees to remain.
COMMITTEE RECOMMENDATION:
The Planning Commission approved a motion to recommend approval of the PUD with
conditions by an 8-1 vote.
PLANNING COMMISSION EXCERPT
Hearing, Case 2019-17: Request for Final Planned Unit Development approval at 3400,
3460, 3474 Wilcox Ave, 1875 Waterworks Rd and 1490 Edgewater St by MiCOAST
Properties, LLC.
SUMMARY
1. Staff has worked with the developer closely on the plan, so all of the pertinent
information regarding the proposed development can be found in “The Docks”
binder.
2. The preliminary plan was approved with conditions at the October 11, 2018 Planning
Commission meeting. Those conditions are as follows:
a. All access points shall be eliminated with the exception of the proposed road over
the dunes at Waterworks Rd.
b. Additional road connections as noted in the staff recommendation are eliminated.
c. The parking lot north of the condo building should be more separated from the
existing homes; The setback should be increased and it should be fully screened with
trees to create a buffer.
d. The alleys or rear lanes are eliminated along properties on Edgewater St., Wilcox
Ave. and Harbour Towne.
3. The ordinary high water mark of the lake is 580.4 feet and all buildings must be
constructed above this mark. This plan meets that requirement.
4. Although there is only one road leading into the development, a second “emergency
access” route will be located near Sand Dock Ct in Harbour Towne. This road will be
constructed with “grasscrete,” which is a type of pavement that is rated for heavy fire
equipment, but will have grass growing on top of it. Please see the example picture
below.
5. This plan relies on the vacation of several non-improved street Right-of-Ways and the
relocation of the existing cul-de-sac on Edgewater St 90 feet to the south. These are
discussed in the following cases.
6. Please see enclosed “Condo Parking Layout” that was not included in the binder.
There will be 34 parking spaces located on the first floor of the condo building.
7. Staff would like to see more trees in the Right-of-Way along the main street that runs
north-south. The developer has also suggested that they would like to work with City
staff on marking certain existing trees to remain.
8. Notice was sent to property owners within 300 feet of the project boundaries. Please
see the enclosed email comments from the public.
MASTER PLAN
Both the 1997 Master Land Use Plan and the recently approved Imagine Muskegon Lake
Plan advocate for this type of development. The 1997 Master Land Use Plan calls for
residential units with different types of housing options and even recommends a Planned
Unit Development. The Imagine Muskegon Lake plan calls for residential and mixed uses.
Imagine Muskegon Lake Plan
Master Land Use Plan
Example of “grasscrete”
CITY OF MUSKEGON
RESOLUTION #2019-
RESOLUTION TO APPROVE THE FINAL PLANNED UNIT DEVELOPMENT FOR
3400, 3460, 3474 WILCOX AVE, 1875 WATERWORKS RD, 1490 EDGEWATER ST
WHEREAS, a petition for a Planned Unit Development was received for a mixed-use
development at 3400, 3460, 3474 Wilcox Ave, 1875 Waterworks Rd and 1490 Edgewater St;
and,
WHEREAS, proper notice was given by mail and publication and public hearings were held by
the City Planning Commission and by the City Commission to consider said petition, during
which all interested persons were given an opportunity to be heard in accordance with provisions
of the Zoning Ordinance and State Law; and
WHEREAS, the Planning Commission and staff have recommended approval of the Final
Planned Unit Development and associated site plan, with the following conditions:
o The developer work with the staff arborist on landscaping modifications,
including marking trees to remain.
NOW, THEREFORE, BE IT RESOLVED that the recommendation by staff and the Planning
Commission be accepted and the final Planned Unit Development is hereby approved, contingent
upon the conditions listed above being incorporated into a revised site plan, to be approved by
staff.
Adopted this 25th day of June, 2019
Ayes:
Nays:
Absent:
By:
Stephen J. Gawron
Mayor
Attest:
Ann Meisch
Clerk, City of Muskegon
CERTIFICATE
(Final PUD 3400, 3460, 3474 Wilcox Ave, 1875 Waterworks Rd and 1490 Edgewater St)
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 a
resolution adopted by the City Commission of the City of Muskegon, at a regular meeting of the
City Commission on the 25th day of June, 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 Act No. 267, Public Acts of Michigan of 1976, as amended, and
that minutes were kept and will be or have been made available as required thereby.
DATED: ___________________, 2019. _______________________________________
Ann Meisch
Clerk, City of Muskegon
Hearing, Case 2019-18: Request to vacate the existing cul-de-sac portion of Edgewater St
(north of Lot 80).
PLANNING COMMISSION EXCERPT
SUMMARY
1. This request is to allow for the development of lots 115 and 116 of the Docks
development. The street would be vacated north of Lot 80. A new cul-de-sac would
be installed just to the south of the one that currently exists.
2. Notice was sent to all affected property owners and staff did not receive any
comments from the public.
Existing Cul-de-sac
Depiction of relocated cul-de-sac
CI
TY OF MUSKEGON
RESOLUTION No.______________
RESOLUTION TO VACATE A PORTION OF A PUBLIC STREET
WHEREAS, a petition has been received to vacate Edgewater St, north of Lot 80; and
WHEREAS, the Planning Commission held a public hearing on June 13, 2019 to consider the
petition and subsequently recommended the vacation; and
WHEREAS, due notice had been given of said hearing as well as the June 25, 2019 City
Commission meeting to consider the recommendation of the Planning Commission;
NOW, THEREFORE, BE IT RESOLVED that the City Commission deems it advisable for the
public interest to vacate and discontinue Edgewater St, north of Lot 80; and
BE IT FURTHER RESOLVED that the City Commission does hereby declare the said portion of
street vacated and discontinued provided, however, that this action on the part of the City
Commission shall not operate so as to conflict with any fire access or the utility rights heretofore
acquired by the City or by any public service utility in the City of Muskegon, operating in, over
and upon said portion of street hereby vacated, and it is hereby expressly declared that any such
rights shall remain in full force and effect;
BE IT FURTHER RESOLVED that after any maintenance and repair by the City, the city shall
restore the disturbed area to the grade and paving in existence at the time of vacation. The City
shall not be responsible to replace special planting, landscaping, fences or any structure. No
structure shall be placed in the vacated street which, in the sole judgment of the City, will interfere
with the repair or maintenance of utilities in the easement, public or private.
Adopted this 25th day of June 2019.
Ayes:
Nays:
Absent:
By:
Stephen J. Gawron, Mayor
Attest:
Ann Meisch, MMC, City Clerk
CERTIFICATE (Vacation of Edgewater St, north of Lot 80)
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 June 25, 2019.
______________________________
Ann Meisch, MMC
Clerk, City of Muskegon
Hearing, Case 2019-19: Request to vacate the unimproved streets within the Edgewater Plat,
those being (a) Arlington Ave, west of lot 24; (b) Windward Dr, west of Lot 46; (c) Brighton
Ave, west of Lot 66; (d) Manhattan Ave, west of the existing cul-de-sac portion of
Edgewater St; and (e) Edgewater St north of the existing cul-de-sac.
SUMMARY
1. This request to vacate these unimproved streets is necessary in order to replat the map
to allow for the Docks development.
2. Notice was sent to all affected property owners and staff did not receive any
comments from the public.
3. Please see the map on the last page of the binder under Tab 8 that depicts the lots by
number.
Unimproved Streets Map
CITY OF MUSKEGON
RESOLUTION No.______________
RESOLUTION TO VACATE PUBLIC STREETS
WHEREAS, a petition has been received to several unimproved streets in the Edgewater Plat; and
WHEREAS, those streets being Arlington Ave, west of lot 24; Windward Dr, west of Lot 46;
Brighton Ave, west of Lot 66; Manhattan Ave, west of the existing cul-de-sac portion of
Edgewater St; and Edgewater St north of the existing cul-de-sac.
WHEREAS, the Planning Commission held a public hearing on June 13, 2019 to consider the
petition and subsequently recommended the vacations; and
WHEREAS, due notice had been given of said hearing as well as the June 25, 2019 City
Commission meeting to consider the recommendation of the Planning Commission;
NOW, THEREFORE, BE IT RESOLVED that the City Commission deems it advisable for the
public interest to vacate and discontinue Edgewater St, north of Lot 80; and
BE IT FURTHER RESOLVED that the City Commission does hereby declare the said portion of
street vacated and discontinued provided, however, that this action on the part of the City
Commission shall not operate so as to conflict with any fire access or the utility rights heretofore
acquired by the City or by any public service utility in the City of Muskegon, operating in, over
and upon said portion of street hereby vacated, and it is hereby expressly declared that any such
rights shall remain in full force and effect;
BE IT FURTHER RESOLVED that after any maintenance and repair by the City, the city shall
restore the disturbed area to the grade and paving in existence at the time of vacation. The City
shall not be responsible to replace special planting, landscaping, fences or any structure. No
structure shall be placed in the vacated street which, in the sole judgment of the City, will interfere
with the repair or maintenance of utilities in the easement, public or private.
Adopted this 25th day of June 2019.
Ayes:
Nays:
Absent:
By:
Stephen J. Gawron, Mayor
Attest:
Ann Meisch, MMC, City Clerk
CERTIFICATE (Vacation of Edgewater St, north of Lot 80)
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 June 25, 2019.
______________________________
Ann Meisch, MMC
Clerk, City of Muskegon
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