City Commission Packet 08-13-2019

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      CITY OF MUSKEGON
        CITY COMMISSION MEETING
           AUGUST 13, 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:
    A. Presentation of 2019 Beautification Awards
□      INTRODUCTIONS/PRESENTATION:
□      CITY MANAGERS REPORT:
□      CONSENT AGENDA:
    A. Approval of Minutes       City Clerk
    B. Designation of Voting Delegates for the Michigan Municipal League
       Annual Business Meeting       City Clerk
    C. Adopt a Resolution Approving the Reclassification of a Tavern License to a
       Class C License for Port City Cruise Lines, LLC  City Clerk
    D. Adopt a Resolution Approving the Off-Premises Tasting Room License for
       Wonderland Distilling Co. City Clerk
    E. Memorandum of Understanding – Justice Assistance Grant         Public
       Safety
    F. 2019 Verizon/Central Dispatch License Agreement          Public Safety
    G. LC Walker Arena – Ironmen Lease         City Manager
    H. Water Main Easement       Department of Public Works
    I. DPW Roofing         Department of Public Works
    J. Industrial Park Lift Station Pump       Department of Public Works

                                           Page 1 of 2
    K. Public Meeting Training Development Services
    L. Opportunity Zone Incentive Program Economic Development
    M. Lakeside Business Improvement District (BID) Initial Resolution Planning &
       Economic Development
    N. Sale of Lots 3 & 4 of Seaway Industrial Park Planning & Economic
       Development
    O. Acceptance of Property from Muskegon County Planning & Economic
       Development
    P. Lease of Yuba Street Property to the Community Foundation from
       Muskegon County          Planning & Economic Development
    Q. Sale of the Buildable Lot at 1245 5th Street                  Planning & Economic
       Development
    R. Community Relations Committee Establishment of Farmers Market
       Advisory Board   City Clerk
    S. Community Relations Committee Appointment Recommendations                                       City
       Clerk
□   PUBLIC HEARINGS:
□ COMMUNICATIONS:
□ UNFINISHED BUSINESS:
□ NEW BUSINESS:
    A. Convention Center – Site and Utilities Bid Pack                       City Manager
□ ANY OTHER BUSINESS:
□ PUBLIC PARTICIPATION:
►      Reminder: Individuals who would like to address the City Commission shall do the following:
►      Fill out a request to speak form attached to the agenda or located in the back of the room.
►      Submit the form to the City Clerk.
►      Be recognized by the Chair.
►      Step forward to the microphone.
►      State name and address.
►      Limit of 3 minutes to address the Commission.
►      (Speaker representing a group may be allowed 10 minutes if previously registered with City Clerk.)

□ CLOSED SESSION:
□ 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: August 8, 2019

Here is a quick outline of the items on our agendas:

Work Session:

      1. Disability Network of West Michigan will be in attendance to talk about the services they
         provide our community. We have also asked them to provide us with a proposal to more
         formally cooperate/assist the city with accessibility issues.
      2. We will be discussing a proposed land lease with the Community Foundation to allow for
         the construction and operation of the FARM incubator at the former farmers market site.
         Important to note is that the CFFMC and John Essex have agreed to this course of action.
      3. Staff is planning to undertake a number of public meetings/facilitations as we work to
         update the master plan, parks plan, etc. Planning staff has spent considerable time
         meeting with resident groups to take comments on a variety of issues. Over that time, it
         has become apparent that our staff (and our various boards) could probably use some
         training in properly dealing with the public. There are many different sides to each
         conversation, and some residents handle that differently than others. A properly trained
         staff should be able to help keep discussions moving forward in a respectful and engaging
         manner. We plan to offer this training to staff, Commissioners, neighborhood boards,
         and other city-appointed committees.
      4. Dave Alexander will be in attendance to discuss the potential of creating a Business
         Improvement District in the Lakeside Business District.
      5. Jake Eckholm will be in attendance to talk about a proposed incentive program to help
         guide additional opportunity zone investments into the City of Muskegon’s opportunity
         zones. At this time, the state has done very little to set Michigan apart from other States;
         this leave the individual communities responsible for making their zones attractive to out-
         of-state investors. We believe package proposed will provide those investors with an
         incentive that stands out as equal to or better than other communities and other states.
      6. Mike Franzak will be in attendance to discuss recreation marihuana and staff’s
         recommendation as to how to zone and license for the uses. There were a number of
         questions raised by the Commission at the last work session, and I believe Mike is in a
      position to answer most of them. We also learned recently that Muskegon will be treated
      as a community that disproportionately suffered from illegal marihuana laws. This will
      bring certain benefits to our community if we opt to allow recreational marihuana. LARA
      is planning an event in Muskegon on August 28 to help us learn more.
   7. Suburban Nation – Chapter 3.

Regular Session:

   1. 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. Designation of the voting delegates for the upcoming MML conference in Detroit.
         c. Approval of a resolution reclassifying the Aqua Star’s liquor license to a Class C
             license. This is the same license used by most bars and restaurants in the city.
         d. Approval of a resolution approving the tasting room for Wonderland Distilling in
             the Lakeside Business District.
         e. Approval of the memorandum of understanding between the County, Muskegon,
             and Muskegon Heights for the distribution of the annual JAG Grant.
         f. Approval of an agreement with Verizon related to the space Central Dispatch rents
             from the City at Central Station.
         g. Approval of a 5-year lease with the Ironmen at the LC Walker Arena.
         h. Approval of an easement for a water main to service the fire hydrants that the
             New Hemisphere Design distribution center.
         i. Approval of the bids to replace a portion of the roof at the Public Services building.
         j. Approval of the purchase of a lift station pump.
         k. Approval of an agreement to provide public meeting training to staff,
             commissioners, and other city-related groups.
         l. Approval of the opportunity zone incentive package.
         m. Approval of the initial resolution establishing the Lakeside Business Improvement
             District.
         n. Approval of the sale of two lots in the Seaway Industrial Park.
         o. Acceptance of a parcel of property from Muskegon County (former Carpenter
             Brothers site) to service as a greenspace and water retention area.
         p. Approval of the Yuba street property lease with the Community Foundation.
         q. Approval of the sale of a buildable lot at 1245 5th Street to Community EnCompass.
             We are actually selling them a lot for $1 in exchange for them selling us a nearby
             lot for $1.

Let me know if you have any questions/comments/concerns

Frank
Date:     August 7, 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 July 23, 2019
Regular Meeting.


FINANCIAL IMPACT: None.


BUDGET ACTION REQUIRED: None.


STAFF RECOMMENDATION: Approval of the minutes.
     CITY OF MUSKEGON
       CITY COMMISSION MEETING
             JULY 23, 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, July 23, 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
Byron Turnquist, Debra Warren, and Willie German, Jr., Acting City Manager
LeighAnn Mikesell, City Attorney John Schrier, and City Clerk Ann Meisch.
Absent:     Commissioners Ken Johnson and Dan Rinsema-Sybenga
2019-58     CONSENT AGENDA:
   A. Approval of Minutes       City Clerk
SUMMARY OF REQUEST: To approve the minutes of the July 8, 2019 Worksession
and July 9, 2019 Regular Meeting.
FINANCIAL IMPACT:       None.
BUDGET ACTION REQUIRED:         None.
STAFF RECOMMENDATION:           Approval of the minutes.
   B. Approval of the Fair Housing Agreement in Partnership with Muskegon
      Heights and Norton Shores      Community & Neighborhood Services
SUMMARY OF REQUEST: The Cities of Muskegon, Muskegon Heights, and Norton
Shores are entering into an agreement with the Fair Housing Center of West
Michigan, to provide fair housing service activities in the County of Muskegon.
This agreement will provide concentrated tests, surveys, education and support
of investigations within each CDBG grantee city for a period of 3 years,
beginning July 2019 – June 2022, with bi-annual reports.
FINANCIAL IMPACT:       Base on population, the City of Muskegon will pay the

                                         Page 1 of 5
annual cost determined in partnership with Muskegon Heights and Norton
Shores.
STAFF RECOMMENDATION:            To approve the Agreement and authorize the
Mayor to sign.
   C. Approval of a Neighborhood Enterprise Zone Certificate Planning &
      Economic Development
SUMMARY OF REQUEST: An application for a Neighborhood Enterprise Zone
(NEZ) Certificate has been received from John Spruit for the new construction of
a home at 301 Terrace Point. The applicant has met local and state
requirements for the issuance of the NEZ certificate.
FINANCIAL IMPACT:        Taxation will be 50% of the State average for the next
12 years.
BUDGET ACTION REQUIRED:          None.
STAFF RECOMMENDATION:            Approval of the NEZ certificate.
   D. Transfer of 235, 239, 240, and 250 Monroe; 395 Houston; 219 and 271
      Merrill; and 1261 5th Street from the City of Muskegon to the Brownfield
      Redevelopment Authority           Planning & Economic Development
SUMMARY OF REQUEST: Staff is requesting that 235 Monroe, 239 Monroe, 240
Monroe, 250 Monroe, 395 Houston, 219 Merrill, 271 Merrill and 1261 5th Street be
transferred from the City of Muskegon to the Brownfield Redevelopment
Authority, a Municipal Authority of the City of Muskegon.
FINANCIAL IMPACT:        None.
BUDGET ACTION REQUIRED:          None.
STAFF RECOMMENDATION:            Approval of the transfer and for the Mayor and
Clerk to sign the deed.
   E. Prein & Newhof – SRF & DWRF Engineering Services Agreement
      Amendment #1      Department of Public Works
SUMMARY OF REQUEST: Authorize the DPW Director to sign an amendment to
the engineering services agreement with Prein & Newhof. The amendment
covers an increase in engineering services primarily related to adding water
main work into several of the State Revolving Fund (SRF) sewer projects.
Costs for this work will be covered under the sale of bonds through the Drinking
Water Revolving Fund and State Revolving Fund program, and included within
the principal forgiveness offered by the MDEQ on these projects.
FINANCIAL IMPACT:        $199,400.00
BUDGET ACTION REQUIRED:          None. This project was included in the 19-20
budget.

                                          Page 2 of 5
STAFF RECOMMENDATION:      Authorize the DPW Director to sign an
amendment to the engineering services agreement with Prien & Newhof.
   F. Musketawa Trail Connector – Contract Amendment          Department of
      Public Works
SUMMARY OF REQUEST: Authorize the DPW Director to sign an amendment to
the engineering services agreement with Hubbell, Roth & Clark, Inc. (HRC) to
allow them to complete design engineering services on the project to MDOT
standards in preparation for construction in 2021.
HRC began work on this project in 2015, however work was suspended due to a
lack of funding to complete construction. MDOT has recently provided
conditional commitment for $400,000 to support the project and MDNR is also
anticipated to contribute funding for the project. HRC is the best situated team
to complete the design of the project based on their prior work.
FINANCIAL IMPACT:        $42,360.00
BUDGET ACTION REQUIRED:         None. This project was included in the 19-20
budget. It is expected that the financial impact will be spread over 19-20 and
20-21 fiscal years.
STAFF RECOMMENDATION:      Authorize the DPW Director to sign an
amendment to the engineering services agreement with Hubbell, Roth, & Clark,
Inc.
   H. Gaming License Request from Women’s Division Chamber of Commerce
      City Clerk
SUMMARY OF REQUEST: The Women’s Division Chamber of Commerce is
requesting a resolution recognizing them as a non-profit organization operating
in the City for the purpose of obtaining a Gaming License.
FINANCIAL IMPACT:        None.
BUDGET ACTION REQUIRED:          None.
STAFF RECOMMENDATION:            Approval
Motion by Commissioner Warren, second by Commissioner German, to approve
the consent agenda as presented, except item G.
ROLL VOTE: Ayes: Turnquist, Gawron, Hood, Warren, and German
            Nays: None
MOTION PASSES
2019-59   REMOVED FROM CONSENT AGENDA:
   A. Beach Street       Department of Public Works
SUMMARY OF REQUEST: Authorize the Mayor and Clerk to sign the Cost Sharing

                                            Page 3 of 5
Agreement with Muskegon County for the water main and road reconstruction
project on Beach Street.
Authorize the DPW Director to sign the Professional Services Agreement with
Johnson and Anderson for the Engineering work on the Beach Street Project.
FINANCIAL IMPACT:        $800,000 ($685,000 Construction + $115,000
Engineering) Split approximately 50/50 between the Major Street and Water
Funds.
BUDGET ACTION REQUIRED:        Non. This project was included in the 19-20
budget. The dollar amounts will be adjusted in a future reforecast to reflect the
construct cost estimates.
STAFF RECOMMENDATION:           Authorize the Mayor and Clerk to sign the cost
sharing agreement with Muskegon County and authorize the DPW Director to
sign the Professional Services Agreement with Johnson and Anderson.
Motion by Commissioner Turnquist, second by Vice Mayor Hood, to authorize the
Mayor and Clerk to sign the cost sharing agreement with Muskegon County and
authorize the DPW Director to sign the Professional Services Agreement with
Johnson and Anderson.
ROLL VOTE: Ayes: Gawron, Hood, Warren, German, and Turnquist
            Nays: None
MOTION PASSES
2019-60     NEW BUSINESS:
   A. Sale of the Property at 159 Amity, 158 Allen, 923 Jay, 201 Jay, and 974
      Spring       Planning & Economic Development
SUMMARY OF REQUEST: Staff is seeking approval to sell the five vacant parcels
at 159 Amity, 158 Allen, 923 Jay, 201 Jay, and 974 Spring to Grace Community,
LLC, a Michigan Limited Liability Company. Grace Community, LLC, will be
combining these with the adjacent properties that they are purchasing for the
development of retail and office space.
FINANCIAL IMPACT:        Staff recommends a sale price of $11,288.
BUDGET ACTION REQUIRED:        None.
STAFF RECOMMENDATION:        Approval of the sale and for the Mayor and Clerk
to sign the purchase agreement, resolution, and deed.
Motion by Commissioner German, second by Vice Mayor Hood, to approve the
sale and for the Mayor and Clerk to sign the purchase agreement, resolution,
and deed.
ROLL VOTE: Ayes: Gawron, Hood, Warren, German, and Turnquist
            Nays: None

                                         Page 4 of 5
MOTION PASSES
   B. Resolution Authorizing Ballot Language for Charter Amendment Regarding
      Civil Service      City Clerk
SUMMARY OF REQUEST: To adopt the resolution to place a question on the
November 5, 2019 ballot to amend the Civil Service procedure for filling positions
of employment to eliminate the “Rule of 3” for adoption by the voters of the City
of Muskegon.
FINANCIAL IMPACT:        None.
BUDGET ACTION REQUIRED:          None.
STAFF RECOMMENDATION:            Approval of the resolution.
Motion by Commissioner Warren, second by Vice Mayor Hood, to approve the
resolution authorizing ballot language for a charter amendment regarding civil
service.
ROLL VOTE: Ayes: Hood, Warren, German, Turnquist, and Gawron
            Nays: None
MOTION PASSES
PUBLIC PARTICIPATION: Public comments were received.
ADJOURNMENT: The City Commission meeting adjourned at 6:12 p.m.


                                              Respectfully Submitted,




                                              Ann Marie Meisch – MMC, City Clerk




                                          Page 5 of 5
Date:       August 7, 2019
To:         Honorable Mayor and City Commissioners
From:       Ann Marie Meisch, City Clerk
RE:         Designation of Voting Delegates for the Michigan
            Municipal League Annual Business Meeting


SUMMARY OF REQUEST: To designate by action of the Commission,
one of our officials who will be in attendance at the Convention as an
official representative to cast the vote of the municipality at the Annual
Meeting; and, if possible, to designate one other official to serve as an
alternate.


FINANCIAL IMPACT: None.


BUDGET ACTION REQUIRED: None.


STAFF RECOMMENDATION: Approval.
Date:       August 7, 2019
To:         Honorable Mayor and City Commissioners
From:       Ann Marie Meisch, City Clerk
RE:         Adopt a Resolution Approving the Reclassification of a
            Tavern License to a Class C License


SUMMARY OF REQUEST: To adopt a resolution approving the
reclassification of a Tavern License to a Class C License for Port City Cruise
Lines, LLC at 560 Mart Street.


FINANCIAL IMPACT: None.


BUDGET ACTION REQUIRED: None.


STAFF RECOMMENDATION: Adopt the resolution approving the license
reclassification.
Date:      August 7, 2019
To:        Honorable Mayor and City Commissioners
From:      Ann Marie Meisch, City Clerk
RE:        Adopt a Resolution Approving the Off-Premises Tasting
           Room License


SUMMARY OF REQUEST: To adopt a resolution approving an Off-Premises
Tasting Room License & Permit Application for Wonderland Distilling Co.,
1989 Lakeshore Drive.


FINANCIAL IMPACT: None.


BUDGET ACTION REQUIRED: None.


STAFF RECOMMENDATION: Adopt the resolution approving the license.
Commission Meeting Date:       August 13, 2019

Date:          July 29, 2019
To:            Honorable Mayor and City Commissioners
From:          Jeffrey A. Lewis
               Director of Public Safety

RE:            Memorandum of Understanding – Justice Assistance Grant


SUMMARY OF REQUEST:

The Director of Public Safety requests that the Commission authorize the Director and the
City Manager to enter into an agreement with the City of Muskegon Heights and Muskegon
County in regards to the disbursement of the FY 2019 Justice Assistance Grant. It if further
requested that the Mayor be authorized to sign the Memorandum of Understanding. Note that
time is of the essence as this grant requires a governing body review period and the grant
submission and the grant deadline is August 23rd .

Although the Bureau of Justice Assistance has designated us as being in a disparate funding
situation due to the County providing more than 50% of the jail facilities, our proposal is to
keep the allocations exactly as they initially came down from the BJA which is as follows:
County of Muskegon $0; City of Muskegon $20,463 and City of Muskegon Heights
$14,732 Note that BJA uses crime data versus population in making these allocation
decisions.

The City of Muskegon portion is planned to be used in continuation of the manner in which
the previous year’s JAG funding was used which is for the prosecution of city ordinance cases
dealing primarily with neighborhood issues.

FINANCIAL IMPACT:

None.



BUDGET ACTION REQUIRED:

None.



STAFF RECOMMENDATION:

Staff recommends approval of this request.
                      MEMORANDUM OF UNDERSTANDING
                           THE CITY OF MUSKEGON
                         THE COUNTY OF MUSKEGON
                       THE CITY OF MUSKEGON HEIGHTS


       FY 2019 JUSTICE ASSISTANCE GRANT (JAG) PROGRAM AWARD
                    Regular Funding/Local Solicitation


    This Agreement is made and entered into on the ____ day of August , 2019, by and

between the County of Muskegon, acting by and through its governing body, the Board of

County Commissioners, located at 990 Terrace Street, Muskegon, Michigan 49442 and the

City of Muskegon, acting by and through its governing body, the City Commission, located

at 933 Terrace Street, Muskegon, Michigan 49443-0536, and the City of Muskegon Heights,

acting by and through its governing body, the City Council, located at 2724 Peck Street,

Muskegon Hts., MI 49444, all of Muskegon County, State of Michigan, witnesseth:




   WHEREAS, the CITY OF MUSKEGON has agreed to serve as the applicant/fiscal agent

for the joint funds under the: Justice Assistance Grant(Local Solicitation) as the Bureau of

Justice Assistance has designated the allocation to the law enforcement communities in

Muskegon County as a disparate allocation; and

   WHEREAS, each governing body, in performing governmental functions or in paying for

the performance of governmental functions, hereunder, shall make that performance or

those payments from current revenues legally available to that party; and

   WHEREAS, each governing body find that the performance of this Agreement is in the

best interest of all parties, that the undertaking will benefit the public, and that the division

of costs fairly compensates the performing party for the services or functions under this

Agreement; and




                                                                             Page 1 of 3
     WHEREAS, the breakdown of allocated funding agreed upon by those entities involved

in the disparate funding is $ 20,463 to the CITY OF MUSKEGON and $ 14,732 to the CITY

OF MUSKEGON HEIGHTS; and

     WHEREAS, the CITY OF MUSKEGON, CITY OF MUSKEGON HEIGHTS and COUNTY OF

MUSKEGON believe it to be in their best interests to allocate the JAG funds as specified in

this Agreement.



NOW THEREFORE, THE COUNTY OF MUSKEGON, CITY OF MUSKEGON AND CITY OF

MUSKEGON HEIGHTS agree as follows:

                                          AGREEMENT

1.      THE CITY OF MUSKEGON will act as the fiscal agent/applicant agency.

2.      The total eligible joint allocation for the disparate jurisdictions of $ 35,195 will be

        allocated as follows:    COUNTY OF MUSKEGON - $ 0; CITY OF MUSKEGON - $20,463

        CITY OF MUSKEGON HEIGHTS - $ 14,732.

3.      Each municipality will be responsible for its actions in the use of any equipment

        purchased under this Agreement and the fiscal agent shall not be liable for any civil

        liability that may arise from the purchase of the use of the equipment.

4.      The CITY OF MUSKEGON HEIGHTS will be responsible for submitting quarterly

        reports to the CITY OF MUSKEGON by the third day of the month following the

        quarter in the reporting fashion required by the CITY OF MUSKEGON and for any

        month in which an expenditure under the grant has occurred the CITY OF

        MUSKEGON HEIGHTS will submit a reimbursement request to the CITY OF

        MUSKEGON      by   the    third   day   of   the   following   month   along   with    backup

        documentation such as invoices.

5.      The CITY OF MUSKEGON HEIGHTS will be responsible for the accuracy of all data

        submitted to the CITY OF MUSKEGON for submission to the Bureau of Justice




                                                                                 Page 2 of 3
      Programs and will be liable for penalties as a result of submitting the data late and

      for any inaccurate data.

6.    Nothing in the performance of this Agreement shall impose any liability for claims

      against the CITY OF MUSKEGON passing from this program or from the CITY OF

      MUSKEGON HEIGHT’s expenditure of the JAG funds.

7.    By entering into this Agreement, the parties do not intent to create any obligations,

      express or implied, other than those set out herein. Further, this Agreement shall

      not create any rights in any party not a signatory hereto.



                                                 COUNTY OF MUSKEGON


Dated:_______________, 2019                      By:____________________________
                                                       Susie Hughes, Chairman
                                                       County Board of Commissioners


                                                 CITY OF MUSKEGON

Dated:_______________, 2019                      By:____________________________
                                                       Stephen Gawron, Mayor



                                                 CITY OF MUSKEGON HEIGHTS

Dated:_______________, 2019                      By:_____________________________
                                                       Kimberley Sims, Mayor




                                                                        Page 3 of 3
                                 AGENDA ITEM NO. _______________
                         CITY COMMISSION MEETING __________________________




TO:         Honorable Mayor and City Commissioners

FROM:       Frank Peterson, City Manager

DATE:       August 6, 2019

RE:         LC Walker Arena – Ironmen Lease


SUMMARY OF REQUEST:
City staff is requesting approval of the attached lease to allow the West Michigan Ironmen to play
indoor football at the LC Walker Arena for five seasons, beginning in 2020.


FINANCIAL IMPACT:



BUDGET ACTION REQUIRED:
None at this time.


STAFF RECOMMENDATION:
To authorize the Clerk and Mayor to sign the lease with Muskegon Football.


COMMITTEE RECOMMENDATION:
None.
            L.C. WALKER ARENA MUSKEGON INDOOR FOOTBALL CONTRACT

      THIS AGREEMENT made and entered into on the ___ day of August, 2019 by and
between the L.C. Walker Arena and Event Center (hereinafter referred to as “Arena”) of 470
West Western Avenue, Muskegon, MI. 49440 and MANA, LLC, (hereinafter referred to as
“Ironmen Football”).

                                          WITNESSETH:

      WHEREAS, Arena is located at 470 West Western Avenue, Muskegon, County of
Muskegon, Michigan; and

       WHEREAS, Ironmen Football is organized for the purposes of promoting and sponsoring
league play of a professional indoor football team; and

       WHEREAS, the parties desire to enter into an agreement for the use of the facilities
operated by Arena;

       IT IS, THEREFORE, AGREED THAT:

1.      USE OF PREMISE: Arena agrees that for the term of this agreement that Ironmen
Football may utilize the Arena for professional indoor football and related indoor football game
activities as follows:

       a.      Fully equipped sports arena for playing indoor football. Ironmen Football to set
               up/tear down artificial turf, uprights, wall pads, and/or other equipment as may be
               required. Ironmen Football will be allowed access to Arena at 7:00AM on
               scheduled game days and will be allowed three (3) hours time for tear down,
               immediately following the game. Ironmen Football to provide and/or compensate
               for staffing at any pre-game event including amateur games, camps, cheerleading
               camps or any other event as may be approved by the Arena;

       b.      Operating public address system and lighting;

       c.      Seating facilities for spectators in arena area;

       d.      Four (4) dressing rooms for teams use on game days during indoor football season
               from 9:00AM to one (1) hour after game conclusion.

       e.      Sufficient officials’ room, trainer’s working area and press box area which meet
               the requirements for professional indoor football games. Ironmen Football to be
               responsible for any required equipment.

       f.      Heat at comfortable temperature;

       g.      Facility clean-up after games.
               Ironmen Football agrees to hold its entire league scheduled home games, both
               regular season and playoffs, at the L.C. Walker Arena.

2.     TERM OF AGREEMENT: This agreement shall be effective for the period commencing
on January 31st, 2020 and ending on June 30th, 2024.

3.      COMPENSATION, FEES: Ironmen Football shall pay to the Arena compensation for its
right to use the Arena upon the following schedule for all games played (including playoff and
exhibition games):

       a.      Arena Fees Per Game: $275.00 rent per game inclusive of all box office, ticket
               printing fees and arena staffing.

               i)     LC Walker Arena keep 100% of the food/beverage and 100% of the
                      parking revenues per home game played.
               ii)    Ironmen Football shall pay a facility fee of $1.50 per ticket printed for all
                      2020 and 2021 regular season and playoff games played.
               iii)   Ironmen Football shall pay a facility fee of $2.00 per ticket printed for all
                      2022 and 2023 regular season and playoff games played.
               iv)    Ironmen Football shall pay a facility fee of $2.50 per ticket printed for all
                      2024 regular season and playoff games played.

       b.     The Arena shall receive ten (10) sets of season tickets for admission to all home
games during the term of this agreement.

4.     OTHER FACILITIES AND/OR SERVICES PROVIDED:

       a.      Staffing: Arena shall in connection with the operation of the building provide to
               Ironmen Football: ticket takers, door guards, ushers, and security. Ironmen
               Football shall provide the following personnel for the operation of the indoor
               football game: medical services personnel, equipment repair personnel, game
               officials, spot light operator, music operator and/or any other personnel required.
               Ironmen Football shall have access to all technologies in the Arena, but will be
               responsible for any replacements/repairs deemed the responsibility of Ironmen
               Football.

               Arena and Ironmen Football will work together and each will use their best efforts
               to create a user-friendly atmosphere, which recognizes the importance of each and
               every customer using the facility. The Arena and Ironmen Football shall
               cooperate to assure adequate training for all staff and personnel to enhance the
               image of the County and City of Muskegon Community, L.C. Walker Arena and
               West Michigan Ironmen.
       b.      Merchandise. Arena will purchase and sell Ironmen Football merchandise in the
               Team Store. Ironmen Football will receive 20% of the net proceeds from said
               merchandise sales.

       c.      Parking. Staff, players and owners will be allowed parking access to the arena
               lot immediately adjacent to the arena building along Shoreline Drive, per
               availability.

       d.      Music Services. Arena shall be responsible for ASCAP, BMI, SEASAC and any
               other licensor of music, in connection with the operation of Ironmen Football
               games.

5.      ARENA ADVERTISING SALES: Ironmen Football to sell and receive 100% of the
proceeds from the sale of program ads, temporary banners, padding, promotions, kiosks and any
other activities related to an arena football game. All such advertising items and activities shall
require Arena approval. Temporary signage and kiosks must be removed and stored prior to
5:00AM the next day.

6.      SCHEDULING AVAILABILITY: At the request of Ironmen Football, Arena will
submit a list of twelve (12) available play dates for the upcoming season by November 1st prior
to the season. Said dates will be held until the conclusion of the league schedule. Unused dates
to be released by Ironmen Football upon creation of the indoor football league schedule. Arena
will utilize its best efforts to maintain good date availability for all playoff dates which cannot be
scheduled in advance of the season.

7.     INSURANCE AND INDEMNITY:

       a.       Ironmen Football shall obtain and retain throughout the term of this day to day
       rental, insurance coverage of and for all claims arising out of or resulting from Ironmen
       Football’s use of the L.C. Walker Arena, which coverage shall include the following.
       Each policy shall contain the provision that no cancellation shall be effective unless thirty
       (30) days advance written notice is given by the carrier to the Arena. All insurance
       policies shall name the City of Muskegon as additional insureds and loss payees:

               i)      Broad form comprehensive general liability insurance including:
                       (a) Premises/operations
                       (b) Products/Completed operations hazard,
                       (c) Broad form contractual and
                       (d) Personal injury.

                       This general liability insurance shall provide the following limits of
                       liability: $2,000,000.00 ($1,000,000.00 primary and $1,000,000.00
                       umbrella).

              ii)    Comprehensive automobile liability insurance for all owned and non-
owned vehicles used on behalf of the Ironmen Football in the amounts not less than
$1,000,000.00 for bodily injury and property damage, and including loading and unloading
hazards.

               iii)    Worker’s compensation insurance providing statutory coverage for the
State of Michigan.
               iv)     Such additional insurance which Arena and/or City may reasonably
require from time to time.

                v)      Certificate of insurance in a form satisfactory to the City of Muskegon
shall be filed with the Arena at least thirty (30) days prior to the commencement of Ironmen
Football’s use under this agreement.

       b.      Ironmen Football agrees that it will indemnify and hold and save, the City of
       Muskegon whole and harmless of, from and against all claims, demands, actions,
       damages, loss, costs, liabilities, expenses and judgments incurred by, recovered from or
       imposed on or against them or any of them on account of any injury or damage to person
       or property to the extent that any such damage may be incident to, arise out of, or be
       caused, either proximately or remotely, wholly or in part, by an act, omission, negligence
       or misconduct on the part of the Ironmen Football or any of its agents, servants,
       employees, contractors, patrons, guests, licensees or by or of any other person entering
       upon the L.C. Walker Arena with either the express or implied invitation or permission
       of Ironmen Football or when any such injury or damage is the result, proximate or
       remote, of the violation by Ironmen Football or any of its agents, servants, employees,
       contractors, patrons, guests, licensees or invitees of any law, ordinance or governmental
       order of any kind, or when any such injury or damage may in any other way arise from or
       out of the occupancy or use by Ironmen Football, its agents, servants, employees,
       contractors, patrons, guests, licensees or of any portion of the L.C. Walker Arena. Such
       indemnification of the above entities by the Ironmen Football shall be effective unless
       such damage or injury results from the sole negligence of the City of Muskegon. Ironmen
       Football covenants and agrees that in case the City of Muskegon shall be made a party to
       any litigation commenced by or against Ironmen Football or relating to this agreement or
       to the portion of the L.C. Walker Arena subject to this agreement, then Ironmen Football
       shall and will pay all costs and expenses, including reasonable attorneys’ fees and court
       costs, incurred by or imposed upon them, their officers, officials, agents, employees,
       volunteers, or attorneys by virtue of any such litigation.

8.      RELEASE OF HAZARDOUS MATERIALS: Ironmen Football shall not cause or allow
the release of hazardous materials or pollution as defined by any local, state or federal law or
regulation to occur upon the premises. In the event of such release, Ironmen Football shall be
responsible for any and all costs, including clean up, penalties, fines, or damages to third parties.
Ironmen Football agrees to indemnify and hold harmless the City of Muskegon from any such
exposures or costs.

9.     PRACTICE/TRAINING CAMP: Ironmen Football shall have daytime use of the arena
on game days beginning at 9:00AM. Additional opportunities to access Arena for practices will
be determined by Arena Manager and per availability.
10.    LIABILITY/RESPONSIBILITY: Arena assumes no responsibility whatever for any
property of Ironmen Football placed in said building and arena is expressly relieved and
discharged from any and all liability for any loss, injury, or damage to persons or property that
may be sustained during the effective date of this contract by reason of the occupancy and
operation of said building or any part thereof under this agreement.

11.     DEFAULT: Ironmen Football covenants that if any default is made in the payment of
fees or any part thereof at the time specified in this contract, or if any default is made in any of
the covenants or agreements herein contained, or if Ironmen Football cancels this agreement for
any cause, the provisions of this contract shall cease and terminate at the Arena’s option, and
Ironmen Football may be put out of the premises by appropriate legal proceedings. Further, and
in addition, should Ironmen Football be in default with regard to payments or fees due hereunder
or other default occur, the Arena shall be allowed, without initiating legal proceedings against
Ironmen Football and without verbal or written notice to take such money from box office
receipts due Ironmen Football and to withdraw from and/or to be relieved of the Arena’s
responsibilities under this agreement. Upon default, Arena may cease providing any or all
services called from this agreement. Ironmen Football shall save the Arena harmless from any
and all claims or actions for damages or injunctions.

12.     FEES AND EXTRA SERVICES: Any sum due the Arena from Ironmen Football or any
accommodations, extra services, material or cost of repair, shall be a first lien on the box office
receipts and on any property of the Ironmen Football which may be in the L.C. Walker Arena
and Event Center. Settlements shall take place within 4 working days from game day. Any
balance due the Arena shall be paid at this time.

13.     COMPLIANCE WITH LIQUOR LAWS: Ironmen Football acknowledges that all of the
L.C. Walker Arena and Event Center is a “licensed premises” under the Michigan Liquor
Control Act. Ironmen Football covenants that it will not do or permit to be done anything which
will violate the terms and conditions of said Liquor License or the regulations of the Michigan
Liquor Control Commission.

14.     ENTRANCE: All articles, exhibits, fixtures, materials, displays, etc., shall be brought
into or out of the building at such entrances and exits as designated by the Arena Manager.

15.     TERMINATION: Ironmen Football agrees upon the termination of this agreement, it
shall vacate the Arena leaving it in the same condition as it existed on the date of this agreement
except for the consequences of ordinary use and wear thereof and damage by the elements or fire
or other casualty.

16.    RELATIONSHIP OF PARTIES: No provision of this Agreement herein contained shall
be construed by the parties or by any other person as one creating a partnership or joint venture
between the parties as to the use of the Arena by Ironmen Football or as to the operation of
Ironmen Football business in the Arena, it being the intent of the parties that this Agreement is
solely that of a contract for the use of a portion of the premises owned by the City and known as
the L.C. Walker Arena and Event Center.

17.      REMOVAL OF PROPERTY: Personal equipment in connection with Ironmen Football
activities belonging to Ironmen Football shall be removed from the Arena at or before the
termination of this Agreement. Said property shall not include advertising facilities, fixtures,
locker room or arena equipment, non-removable signage, advertising or messages, scoreboards,
tables, platforms, benches, seating or any property except the personal belongings of Ironmen
Football and its personnel. All such excepted property shall be and is the property of the Arena
and shall be removed from the building.

18.    NUMBER OF PATRONS: Ironmen Football shall fully cooperate with Arena and shall
not cause to be admitted to the premises a larger number of persons than the rated capacity of the
individual areas hereby rented. Maximum capacities shall be established as mandated by the City
of Muskegon Fire Departments. Capacities may be reduced due to setups or obstructions.

19.      PUBLIC AREA OBSTRUCTIONS PROHIBITIED: No portion of the sidewalks, ramps,
entries, corridors, passageways, vestibules, halls, lobbies, stairways, aisles, or access to public
utilities of the L.C. Walker Arena and Event Center shall be obstructed by Ironmen Football or
used for any purposes other than for ingress or egress from the day to day rental of d premises.

20.      PUBLIC SAFETY: Ironmen Football agrees that at all times they will conduct their
activities with full regard to public safety, and will observe and abide by all applicable
regulations and requests by the Arena and duly authorized governmental agencies responsible for
public safety.

21.     FLAMMABLE MATERIALS: Materials used for decorative purposes must be treated
with flame proofing and approved the Muskegon Fire Department. Nor shall Ironmen Football
without written consent of the Building Manager and approval of the appropriate City official,
such as the fire marshal, building inspector, or other appropriate official, place or operate any
engine or motor or machine on the premises, or use oils, burning fluids, kerosene, propane, or
gasoline, or any other flammable chemical for mechanical or other purposes.

22.     CONDITION OF PREMISES: Ironmen Football shall have examined the premises prior
to the execution of this Agreement and are presumed to be satisfied with the physical condition
of the premises. Ironmen Football by entering into this Agreement and the usage of the Arena,
agrees that the premises are in safe, sanitary condition, and in good repair.

23.      PERMITS, LICENSES AND COPYRIGHTS: Ironmen Football agrees to obtain and pay
for all necessary permits and licenses required by Federal, State or local laws. Ironmen Football
warrants that all copyrighted material to be performed has been duly authorized or licensed by
the copyright owners or/their representatives and agrees to indemnify and hold harmless the City
of Muskegon from any and all claims, losses, expenses, including legal fees, which might arise
from any such permits, licenses and copyrights.
24.    RIGHT TO INSPECT: Arena reserves the right to inspect and control all events being
held on premises.

25.     COMPLIANCE WITH LAW: Ironmen Football shall not conduct, or permit to be
conducted on the premises, any performance or activity which either by speech, song, music, or
other conduct, is in violation of the laws of the United States, the State of Michigan, or the rules
and regulations of the L.C. Walker Arena and Event Center.

26.     ASSIGNMENT: Ironmen Football may not assign this day to day rental without the prior
written consent of the Arena.

27.    UNAVAILABILITY OF FACILITIES: In the event that the facilities herein rented or
any portion thereof are not available for occupancy upon commencement or during the term of
this Agreement due to fire, casualty, acts of God, strikes or national emergency or other cause
beyond the control of the Arena, this permit and the obligations of the Arena and Ironmen
Football herein shall terminate. Ironmen Football hereby waives any claim against the Arena for
damages by reason of such termination.

28.     BREACH OF AGREEMENT: In the case of the breach of any one or more of the terms
of this Agreement by Ironmen Football, the right to the use of the premises shall terminate
without notice or demand. Upon the termination of this Agreement, Ironmen Football agrees to
vacate the premises immediately. The parties agree that Arena is in full control of the premises
and may refuse admission to or put out any person including Ironmen Football for good cause.
No action by Arena under this paragraph shall cause forfeiture of any fees or payments due the
Arena.

29.     CANCELLATION: Should Ironmen Football cancel an already scheduled game, without
giving a minimum of seven (7) days advance notice to the Arena Manager, the Arena may
charge Ironmen Football the full amount of Arena Fees Per Game as specified in Section 3(a) of
this agreement.

30.     BINDING EFFECT: Each and every term of this contract shall be binding upon the
parties and their successors and assigns, and cannot be varied or waived by any oral
representations or promise of any agent or other person of the parties hereto, unless the same be
in writing and mutually signed by the duly authorized agent or agents who executed this.

31.    LEGAL CONSTRUCTION: The Agreement shall be governed by the laws of the State
of Michigan.

32.     ENTIRE AGREEMENT: The parties hereto agree that all of their agreements are fully
set forth herein and that no oral statement or representations of any kind have been made upon
which either party shall have the right to reply. This shall not limit the Arena from imposing any
reasonable additional rules or regulations which may be necessary in the best interest of the
operations of the facilities.
IN WITNESS WHEREOF, the Arena and Ironmen Football have caused this indenture to be
executed the day and year first above written.


WITNESSES:                                    L.C. Walker Arena


________________________________              By________________________________


________________________________                 ________________________________


                                              Ironmen Football


________________________________              By________________________________


________________________________                 ________________________________
                                    AGENDA ITEM NO. __________

                                   CITY COMMISSION MEETING __


TO:            Honorable Mayor and City Commission
FROM:          Department of Public Works
DATE:          August 13th, 2019
SUBJECT:       Water Main Easement

SUMMARY OF REQUEST:

Authorize the DPW Director and City Clerk to sign the private water main easement with 2420
Remembrance Drive LC.

The easement allows for installation of a privately owned water main across a section of city owned
property that fronts on Black Creek Road. The water main is being installed to provide fire protection via
a hydrant on the site that is being developed by KL Industries for warehouse and storage and serves no
other public purpose.

FINANCIAL IMPACT:

None

BUDGET ACTION REQUIRED:

None.

STAFF RECOMMENDATION:

Authorize the DPW Director and City Clerk to sign the easement.
         PRIVATE WATERMAIN EASEMENT AND RIGHT OF WAY GRANT

KNOW ALL MEN by these presents, that the City of Muskegon, a Michigan Municipal
Corporation, whose address is 933 Terrace Street, Muskegon, Michigan (Grantor),

FOR AND IN CONSIDERATION of the sum of One and no/100 Dollars ($1.00) and other
valuable considerations, paid to it by 2420 Remembrance Drive L.C., a Michigan Limited
Liability Company, whose address is 4460 44th Street SE, Suite C200, Grand Rapids,
Michigan 49512 (Grantee),

DOES HEREBY CONVEY to the Grantee, over a portion of property owned by Grantor
described on Exhibit A (“Burdened Property”) and for the benefit of the property owned
by Grantee described on Exhibit A (“Benefitted Property”) an easement and right of way
in which to construct, use, repair, and replace watermain and appurtenant parts thereof
and to enter upon sufficient land adjacent to said easement and right of way for the
purpose of the construction, operation, maintenance, repair and/or replacement thereof,

      The easement aforementioned is specifically described as follows
(“Easement Property”):

An easement for watermain 20.00 feet in width located in part of the Southeast one-
quarter of Section 34, Town 10 North, Range 16 West, City of Muskegon, Muskegon
County, Michigan, the centerline of said 20.00 foot wide watermain easement being
described as: COMMENCING at the East one-quarter corner said Section 34; thence
South 88°52'47" West 1399.72 feet along the East-West one-quarter line of said section;
thence South 00°39'52" East 488.26 feet along the West right-of-way line of Black Creek
Road (a 66.00 foot wide public right-of-way) to the PLACE OF BEGINNING; thence South
89°12'21" West 175.26 feet; thence North 00°47'43" West 173.57 feet; thence South
89°15'24" West 190.32 feet to the place of ending of said 20.00 foot wide watermain
easement.

IT IS UNDERSTOOD that buildings, fences, walls, trees, or any type of structure(s) which
would inhibit the intended use of this easement will not be placed upon the Easement
Property without the prior written consent of the Grantee, its heirs, successors or assigns.

Condition and Maintenance. Grantee shall be solely responsible for all repairs,
replacements, and maintenance of the watermain and appurtenant parts and the
Easement Property and shall not allow it to become unsightly or a nuisance. If Grantee
fails to meet any of its obligations under this easement, Grantor shall have the right, but
not the obligation, to perform in the place of Grantee and if Grantee incurs or expends
any sums, then those sums shall become immediately due and payable by Grantee.

Insurance. Grantee shall obtain liability insurance as part of its owner’s policy for the
Benefited Property to cover any liabilities that arise as a result of the use by Grantee or
its agents, employees, representatives, and contractors of the easement and shall
name Grantor as an additional insured under such policy.

Indemnification. Grantee agrees to indemnify and hold Grantor harmless from any and
all claims, debts, causes of actions, or judgments for any damage to any property or
injury to any person that may arise out of Grantee’s actions within, use of, or around the
easement, by itself, its agents, employees, representatives, and contractors. This
provision shall survive the termination of this Agreement.
General. All rights granted under this easement shall not be further assignable by
Grantee except as an appurtenance to and in conjunction with the sale of the Benefitted
Property. The easement, rights and responsibilities set forth in this easement shall be
perpetual and shall run with the Benefitted and Burdened Property and shall bind the
successors and assigns of the Burdened and Benefitted Property.

Exempt pursuant to: MCL 207.505(a) and MCL 207.526(a).

IN WITNESS WHEREOF, the undersigned have hereunto affixed their signatures this
_______ day of ________________________, 2019.

                                               GRANTOR: City of Muskegon


                                               By: _________________________
                                               Name: ___________________
                                               Title:
STATE OF MICHIGAN )
                  ) ss
COUNTY OF MUSKEGON)

On this _______ day of ___________________, 2019, before me, a Notary Public, in and
for said County, personally appeared
       , who executed the within instrument and severally acknowledged the same to be
his or her free act and deed.

                                               ____________________________
                                                                 , Notary Public
                                               Muskegon County, Michigan
                                               My commission expires:
                                             GRANTEE:

                                             2420 Remembrance Drive L.C., a
                                             Michigan Limited Liability Company


                                             By: _________________________
                                             Name: ___________________
                                             Title:
STATE OF MICHIGAN         )
                          ) ss
COUNTY OF KENT            )

On this _______ day of ___________________, 2019, before me, a Notary Public, in and
for said County, personally appeared
       , who executed the within instrument and severally acknowledged the same to be
his or her free act and deed.

                                             ____________________________
                                                                , Notary Public
                                             Kent County, Michigan
                                             My commission expires:

This instrument drafted by:
Moore & Bruggink
2020 Monroe Avenue NW
Grand Rapids, Michigan 49505
     Exhibit A

Burdened Property




Benefitted Property
                                    AGENDA ITEM NO. __________

                                   CITY COMMISSION MEETING __


TO:            Honorable Mayor and City Commission
FROM:          Department of Public Works
DATE:          August 13th, 2019
SUBJECT:       DPW Roofing

SUMMARY OF REQUEST:

Award the contract for roofing of Section #1 at the DPW Building to the low bidder Ostrander Roofing in
the amount of $141,494.00.

This will repair the front section of roofing at DPW primarily over the office areas of the building, which
has suffered from several leaks over the last year.


FINANCIAL IMPACT:

$141,494.00

BUDGET ACTION REQUIRED:

None. This project was included in the 19-20 budget.

STAFF RECOMMENDATION:

Award the contract for to Ostrander Roofing.
                                                         CITY OF MUSKEGON
                                                   BID TABULATION: DPW - SECTION #1
                                                   PROJECT: 2019 ROOF REPLACEMENT
                                                             DATE: 7/9/19


                                                   NAME OF BIDDER                        NAME OF BIDDER                    NAME OF BIDDER
                        VENDOR              CERTIFIED BUILDING SOLUTIONS                HOEKSTRA ROOFING                 OSTRANDER ROOFING
                       TELEPHONE                    231-578-3254                          269-720-3004                      616-240-0553
                       QUOTED BY                    JULIE FAUCHER                          PHIL WOOD                     RICHARD OSTRANDER
                       CREW SIZE                           8                                    7                                 6
                  PROJECTED START DATE                 10/1/19                              10/14/19                          8/15/19
            BID BOND AND PERFORMANCE BOND                 Yes                                  No                                Yes
                DESCRIPTION                     UNIT PRICE       TOTAL PRICE        UNIT PRICE       TOTAL PRICE    UNIT PRICE        TOTAL PRICE
PROJECT PRICING
LABOR BID                                                    $        110,500                    $         96,875                 $         88,500
US COMMUNITIES BID                                           $         59,976                    $         50,494                 $         50,494
LINE ITEM PRICING:
REPLACEMENT OF METAL DECK                         SQ. FT.    $             12        SQ. FT.     $           9.50       SQ. FT.   $           7.00
REPLACEMENT OF DRAIN                            PER DRAIN    $          1,000        SQ. FT.     $       2,800.00       SQ. FT.   $         450.00

                SUB-TOTAL                   $                        170,476    $                       147,369     $                    138,994
           ESTIMATED FREIGHT FEES           $                           2,500   $                           2,500   $                        2,500

                  TOTAL                     $                        172,976    $                       149,869     $                    141,494
                                    AGENDA ITEM NO. __________

                                   CITY COMMISSION MEETING __


TO:            Honorable Mayor and City Commission
FROM:          Department of Public Works
DATE:          August 13th, 2019
SUBJECT:       Industrial Park Lift Station Pump

SUMMARY OF REQUEST:

Authorize staff to purchase a replacement pump for the Industrial Park sewer lift station at a cost of
$16,333 from Kennedy Industries (sole supplier).

Due to wear and tear the pump motor died and needs to be replaced. The pump is 20 years old and was
nearing the end of its life expectancy.


FINANCIAL IMPACT:

$16,333

BUDGET ACTION REQUIRED:

None. This project was included in the 19-20 budget (Lift Station Repairs)

STAFF RECOMMENDATION:

Approve the purchase of a replacement pump from Kennedy Industries.
Date:     8/13/2019

To:       Honorable Mayor and City Commissioners

From:     Development Services

RE:       Public Meeting Training


SUMMARY OF REQUEST:

Approve funding for training on managing civil, productive public meetings. Beth Buelow
and a co-facilitator will lead a four session training targeting department and division
heads as well as the mayor and commissioners with the objective of preparing us to
present information and manage interactions in a proactive, positive, and productive
manner. Additional workshops will be offered to neighborhood associations with the
objective to provide them tools to communicate and collaborate with city leaders.
Training is expected to be scheduled fall of 2019.

FINANCIAL IMPACT:

$10,000

BUDGET ACTION REQUIRED:

Will be included in the next quarterly forecast

STAFF RECOMMENDATION:

Approve funding for public meeting training.
                 Managing Civil, Productive Public Meetings:
                 4-Part Seminar Series for City of Muskegon Staff and Elected Officials

                         Preliminary Proposal Prepared for LeighAnn Mikesell, Director of Municipal Services
                                        From Beth L. Buelow, PCC, 231.260.1949, beth@howcanisaythis.com
                                                                                   Submitted June 17, 2019

Rationale: The City of Muskegon is in midst of a new wave of development, which is being met with feelings of
excitement about growth and revitalization on the one hand, and fears about gentrification and a widening socio-
economic divide on the other. This tension can cause even well-meaning people to lose their capacity to act in a civil
manner. The good news is that the city has proven resilient and willing to do the hard work of addressing its
challenges and seizing its opportunities. We have passionate, invested residents, and deeply committed, highly skilled
public servants. It’s in the city’s best interest to model how to navigate change so that it’s done with its citizens, not to
its citizens. And with a growing number of major downtown and neighborhood projects underway, now is the ideal
time to provide city officials, staff, and residents the communication tools they need to move through this critical
point in Muskegon’s evolution as partners and co-creators of our collective future.

Overall Objectives: (1) For city staff and officials to feel confident about presenting information and managing public-
facing interactions in a proactive, positive, and productive manner. (2) For citizens to have the tools they need to
make their voices heard and be in a collaborative relationship with their leaders.

Key Assumptions: When stakes and emotions are high, reactivity increases. This reactivity —and its resulting
tension—can be de-escalated by creating an environment where all stakeholders can be seen, heard, and feel safe. By
approaching situations with a “mediation mindset” that includes intention, curiosity, strategy, empathy, and humility,
productive conversations— even ones involving conflict—are possible.

NAM Component: The responsibility for civil conversations isn’t only held by city officials; residents also can benefit
from being mindful and purposeful about how they communicate in public settings. In conjunction with the staff
seminars, each of the 15 neighborhood associations will receive a condensed workshop (45-60 minutes) focused on
how to prepare for public meetings, be more influential, and engage in productive dialogue with city leaders.
Discussions might use current issues as examples, but the intention is to keep the information at a high, general level,
without getting into debate or problem solving. The specific agenda for the workshop can be co-created with NAM.

Facilitators: All sessions (NAM and City) will be led by Beth Buelow, City of Muskegon resident (Nelson Neighborhood
Assoc). Beth is a Professional Certified Coach specializing in communication and leadership. She’s a trained mediator,
experienced speaker/facilitator, and former non-profit professional. She’s led dozens of workshops on conflict and
communication for groups as diverse as health care leaders to accountants to entrepreneurs. For this project, Beth is
actively seeking a co-facilitator (preferably a Person of Color or someone who is representative of the diversity of
Muskegon’s neighborhoods) to partner on some or all of this proposal’s components.

Seminar Overview: This four-part seminar series focuses on providing information and opportunities for practice for
all appropriate city staff and elected officials. Each session will be a combination of content delivery and small/large
group discussions, along with in-session practice, observation, and feedback. Ideally, each session would be 3-4 hours
long and would take place once per week over four consecutive weeks.

Outcomes: At the conclusion of the trainings, staff will have:

    1.   Tools to help them prepare for public meetings and interactions with the public.
    2.   An understanding of why they need to consider the perspectives of others and how that
         would be beneficial to them.
    3.   Improved confidence in public speaking and diffusing conflict.

Financial Investment: To be discussed once scope is determined. Every effort will be made to design a program that
both satisfies the desired objectives and works within the available budget.

                                                                                                                           1
                          CITY STAFF/OFFICIALS SEMINAR SESSION SUMMARIES



SESSION ONE:
Laying the Inner Groundwork for a Successful Interaction

         Content and practice will be focused on deconstructing the “us vs them” dynamic by examining what leads to
         divisiveness, how to navigate power differentials, and the importance of identifying common ground and
         shared values. In addition, we’ll explore strategies for how to self-manage through personal triggers, biases,
         assumptions, and attitudes, using frameworks such as the Ladder of Inference (as popularized by Peter
         Senge, The Fifth Discipline).

SESSION TWO:
Building Your Case

         Learn strategies for preparing for the interaction and building empathy. Among the questions explored: What
         are the anticipated responses you’ll get to your presentation? In what ways are your constituents right?
         What about their fears/concerns is justified? If you shared their beliefs, how would you want to be
         responded to? Participants will learn how to present their case in a clear, compelling manner that focuses on
         what their audience wants and needs to hear, rather than being solely focused on what the presenter wants
         to tell them.


SESSION THREE:
Setting Everyone Up for Success

         Here we move to the meeting itself and learn how to create a generative, healthy space for productive
         dialogue. Information covered includes how to create a clear framework and agenda for the meeting; setting
         intentions, expectations, and group agreements that facilitate fairness, respect, structure, and security
         (emotional and physical); and increasing awareness of nonverbal cues and dynamics of the space that
         contribute to both tension and safety.


SESSION FOUR:
Facilitating Healthy, Productive Conflict

         Despite our best intentions, conflict is likely to arise during any public gathering where people care deeply
         about the outcome. This calls on professionals to be skilled in active listening and ways of eliciting additional
         information that help people feel seen and heard without escalating to debate. Participants will learn how to
         identify, acknowledge, and address fears that are underneath the concerns, anger, and confusion of their
         constituents. This includes learning the basics of negotiation and, in particular, how to differentiate between
         values, interests, and positions. Finally, we will practice techniques for responding to people who argue, vent,
         or dominate.


TO BE DETERMINED:
Who amongst staff will participate? Offer elected officials similar/same content? If yes to elected officials, do they all
attend together? What about any version of this training for citizen boards/commissions/committees (ideally, yes!)? Is
there any type of follow-up or supplement to these trainings for staff? For instance, facilitators supporting leaders in
prepping for specific meetings, attending with the intention of offering feedback, and having a post-meeting debrief
focused on communication and presentation skills?




                                                                                                                        2
                                 AGENDA ITEM NO. _______________
                         CITY COMMISSION MEETING __________________________




TO:         Honorable Mayor and City Commissioners

FROM:       Jake Eckholm, Director of Economic Development

DATE:       August 13th, 2019

RE:         Opportunity Zone Incentive Program


SUMMARY OF REQUEST:
The City of Muskegon is fortunate to have its entire downtown corridor within an Opportunity Zone.
The Economic Development Department is recommending additional localized, Commission reviewed
incentives in order to encourage large scale investment in this competitive market.


FINANCIAL IMPACT:
None at this time, all incentives would be paid out 15 years after the eligible Opportunity Zone Investment.

Funds would be allocated and reserved based on new income tax created and property tax collection
increases as a result of opportunity fund investments, such as new apartment/housing buildings or
businesses.


BUDGET ACTION REQUIRED:
None at this time.


STAFF RECOMMENDATION:
To authorize the incentive package as presented.
CITY OF MUSKEGON opportunity zone




 Claiming the distinction of “West             As Muskegon’s industrial past makes way
 Michigan’s Shoreline City”, Muskegon is       for a mixed-use future, large waterfront
 the largest city on the eastern shore of      sites have become available for               OPPORTUNITIES IN The
 Lake Michigan with a population just          redevelopment. Moving from east to            CITY OF MUSKEGON
 under 40,000. In addition to having the       west: the centrally located Harbor 31 site,
 largest beach on Michigan’s west coast,       the expansive acreage of the Western
 Muskegon also contains miles of               Waterfront district, and the vacant,            WESTERN WATERFRONT
 lakefront along the south shore of            former Tank Farm property are all
 Muskegon Lake. The city is located 180        well-positioned to benefit from the area’s
 miles northeast of Chicago, 190 miles         unmatched natural amenities as well as          FOUNDRY SQUARE
 west of Detroit, and 80 miles due east of     its reviving downtown.
 Milwaukee.
 Today, Muskegon is
                                                                     D o w n t o w n           VACANT SCHOOL BUILDING
                                                                     Muskegon is in the
 a progressive city
                                                                     midst of major
 and       has      an                                                                         HARBOR 31
                                                                     reinvestment. The
 appreciation for its
                                                                     removal     of     a
 significant history
                                                                     renewal-era, urban
 while      continuing                                                                         AMERIBANK BUILDING
                                                                     shopping mall has
 forward growth and
                                                                     made       available
 movement            in
                                                                     much vacant land
 creating     a    new
                                                                     in the heart of the       TANK FARM PROPERTY
 identity for itself.
                                                                     city. The Morris
 The casual and                                                                               Grants, loans, and tax abatements
                                                                     Street     property
 friendly atmosphere                                                                          are also available. The owner or
                                                                     offers significant
 allows the local                                                                             developer should coordinate with
                                                                     acreage in the           the City of Muskegon to
 resident, vacationer,
                                                                     downtown       core,     determine which incentives are
 or fisherman to truly
                                                                     two blocks from          most appropriate for their
 kick back, relax and enjoy.
                                               the available AmeriBank Building; both         development      project.   Please
 The city’s core neighborhoods contain a       are sited just minutes from the lakeshore      contact:
 series of sites primed for redevelopment.     and other recreational opportunities.          LeighAnn Mikesell
 A former school, once embedded in its         With a clear vision for the future,            Director of Municipal Services
 neighborhood, offers the opportunity to       Downtown Muskegon is on course to              933 Terrace Street
 again serve as a community anchor.            become the hub of the city, county, and        Muskegon, MI 49443
 Redevelopment of old school buildings is      beyond.                                        (231) 724-6702
                                                                                              leighann.mikesell@shorelinecity.com
 not unfamiliar to the area, as a variety of
                                               For more information please visit our
 repurposed facilities have brought new
                                               website: www.shorelinecity.com
 life to their respective communities.
muskegon opportunity zone INCENTIVES
                                       Mixed-Use Development Investment Match: The first $75 Million in qualified
                                       opportunity fund investment deployed on a new mixed-use development within
 SETTING MUSKEGON APART                a City of Muskegon Opportunity Zone shall be eligible to receive a match equal
1.An environment of investor           to 2% of the initial eligible investment.
  confidence. Proposed projects will
                                             Opportunity Fund Investment                                       Incentive Amount
  not be delayed or derailed by
  zoning, regulation, or politics:                  $1,000,000                                                     $20,000
                                                       $5,000,000                                                   $100,000
  A one-stop shop for all
  opportunity zone issues –                            $15,000,000                                                  $300,000
                                               Note: Matching dollars are paid upon successful completion of the investment and satisfaction
  connection person/team for                   of the initial 10-year holding period
  opportunity zone questions, ideas,
  incentives, etc.
  Form Based Code – limited
                                       Missing Middle Housing Development Investment Match: The first $25 Million
  applicability of planning            in qualified opportunity fund investment deployed in new “missing-middle”
  commission and city commission       housing within a City of Muskegon Opportunity Zone shall be eligible to receive
  Redevelopment Ready Community        a match equal to 3.5% of the initial eligible investment.
  Certified                                  Opportunity Fund Investment                                       Incentive Amount
  One-stop meetings and
                                                    $1,000,000                                                     $35,000
  pre-development meetings
                                                       $5,000,000                                                   $175,000
2.Updated zoning/codes to expedite                     $10,000,000                                                  $350,000
  projects:                                    Note: Matching dollars are paid upon successful completion of the investment and satisfaction
                                               of the initial 10-year holding period
  Form Based Code
  Imagine Muskegon Lake Plan           Neighborhood Housing Development Investment Match: The first $10 Million in
                                       qualified opportunity fund investment deployed in new single-family housing
3.Clear local investment strategy:     (attached and detached) within a City of Muskegon Opportunity Zone shall be
  Updated City Waterfront Plan         eligible to receive a match equal to 3% of the initial eligible investment.
  Updated Zoning Codes
                                             Opportunity Fund Investment                                       Incentive Amount
  2014 Muskegon Farmers Market
  2020 Muskegon Convention Center                   $1,000,000                                                     $30,000
                                                       $5,000,000                                                   $150,000
                                                       $10,000,000                                                  $300,000
 CITY-FOCUSED SPENDING IN                      Note: Matching dollars are paid upon successful completion of the investment and satisfaction
                                               of the initial 10-year holding period
 OPPORTUNITY ZONES
1.Brownfield Incentives                Port-Related Industrial Redevelopment Incentives: The first $25 Million in
                                       qualified opportunity fund investment deployed in new port facilities (buildings)
2.Utility Investment                   located on current city-owned property within a City of Muskegon Opportunity
                                       Zone shall be eligible to receive a match equal to 5% of the initial eligible
3.Downtown Development Authority       investment.
                                             Opportunity Fund Investment                                       Incentive Amount
                                                    $1,000,000                                                     $50,000
                                                       $5,000,000                                                   $250,000
                                                       $25,000,000                                                  $1,250,000
                                               Note: Matching dollars are paid upon successful completion of the investment and satisfaction
                                               of the initial 15-year holding period
             Commission Meeting Date: Aug. 13, 2019

Date:         Aug. 13, 2019
To:           Honorable Mayor & City Commission
From:         Planning & Economic Development Department
RE:           Lakeside Business Improvement District (BID)
              initial resolution


SUMMARY OF REQUEST: We are requesting the attached resolution be adopted
establishing a Business Improvement District for the Lakeside commercial district
along Lakeshore Drive from 1595 Lakeshore (Wasserman’s Flowers) to 2801
Lakeshore (Muskegon County Club). The boundaries are outlined in the attached
map as the district are those commercial properties with frontage on Lakeshore
Drive. It is also requested that the commission establish an initial Lakeside BID board
with the following recommended individuals as offered by the Lakeside District
Association:

       Troy Wasserman – Wasserman’s Flowers, 1595 Lakeshore
       Richard Ghezzi – Ghezzi’s Market, 2017 Lakeshore
       Mark Flermoen – VF Ventures, 1845 Lakeshore
       Michael Kordecki – Marine Tap Room, 1983 Lakeshore
       Ann Funk – Auto Body Clinic, 2054 Lakeshore
       Blake Evans – Water’s Edge Fitness, 2465 Lakeshore
       City Manager (by statute) – City of Muskegon



FINANCIAL IMPACT: The city can anticipate receiving approximately 15 percent of
the proceeds that would be an administrative fee for staff support if the BID is
established and the BID board concurs.



BUDGET ACTION REQUIRED: None



STAFF RECOMMENDATION: To adopt the resolution as presented.
                                   CITY OF MUSKEGON

                                   Resolution No. ______

                       Resolution initiating the
      MUSKEGON LAKESIDE BUSINESS IMPROVEMENT DISTRICT (BID)


A resolution establishing the Lakeside Business Improvement District, designating
the boundaries of the BID, and establishing the Lakeside Business Improvement
District Board.

Resolved by the Commission of the City of Muskegon:

By way of this resolution, and subject to the requirements of Act 49 of the Public Acts
of 1999, the City Commission establishes the Lakeside Business Improvement
District, with the boundaries of this Business Improvement District being outlined on
the attached map.

This district includes the follow classes of property:

       90 Total Assembled Properties fronting Lakeshore Drive in the district

       2 Exempt Properties are non-profit and 8 Exempt Properties are government

       38 Residential Properties are not assessed

Further, by way of this resolution, the City Commission establishes the Lakeside
Business Improvement District Board, consisting of seven members, the persons
nominated for this board by the Lakeside District Association shall be the following:

       Troy Wasserman – Wasserman’s Flowers, 1595 Lakeshore
       Richard Ghezzi – Ghezzi’s Market, 2017 Lakeshore
       Mark Flermoen – VF Ventures, 1845 Lakeshore
       Michael Kordecki – Marine Tap Room, 1983 Lakeshore
       Ann Funk – Auto Body Clinic, 2054 Lakeshore
       Blake Evans – Water’s Edge Fitness, 2465 Lakeshore
       City Manager (by statute) – City of Muskegon



Adopted this 13th day of August 2019.


Ayes:
___________________________________________________________________

___________________________________________________________________
Nays:
___________________________________________________________________

___________________________________________________________________




                                                  CITY OF MUSKEGON

                                                  By:



                                           ________________________________

                                                  Stephen J. Gawron
                                                        Mayor



                                           ________________________________

                                                        Ann Marie Meisch
                                                            City Clerk



                                  CERTIFICATION

        This resolution was adopted at a meeting of the City Commission, held on August
13, 2019. The meeting was properly held and noticed pursuant to the Open Meetings Act
of the State of Michigan, Act 267 of the Public acts of 1976.



                                                  CITY OF MUSKEGON

                                           By:

                                            _________________________________
                                                     Ann Marie Meisch, Clerk
               Commission Meeting Date: August 13, 2019

Date:                August 6, 2019
To:                  Honorable Mayor & City Commission
From:                Planning & Economic Development Department
RE:                  Sale of Lots 3 & 4 of Seaway Industrial Park


SUMMARY OF REQUEST:
To approve the sale of lots 3 & 4 of Seaway Industrial Park to Adam McCausland for
$292,000. The lots total 3.4 acres and are zoned I-1, Light Industrial and are also located in
the Medical Marihuana Overlay District.

FINANCIAL IMPACT:
The sale of this lot will generate additional tax revenue for the City and will place the
property back on the City’s tax rolls thus relieving the City of continued maintenance costs.

BUDGET ACTION REQUIRED:
None

STAFF RECOMMENDATION:
To approve the attached resolution and purchase agreement and to authorize both the
Mayor and the Clerk to sign the deed.
Lot 3
Parcel #24-895-002-0001-00
Size: 1.6 Acres
Location: On Young St south of St Mary’s Cemetery (no address available).
Notes: Heavily wooded lot.




Lot 4
Parcel #24-895-0001-0001-00
Size: 1.8 Acres
Location: Corner of Young St / Park St, south of St Mary’s Cemetery (no address available)
Notes: Heavily wooded lot.




                                                                                      2
                                      Resolution No. _______
                               MUSKEGON CITY COMMISSION
RESOLUTION APPROVING THE SALE OF LOTS 3 & 4 OF SEAWAY INDUSTRIAL PARK FOR
$292,000.
WHEREAS, Adam McCausland, be allowed to purchase parcel numbers: 24-895-002-0001-00 and 24-
895-001-0001-00 for a total of $292,000; and
WHEREAS, the sale would generate additional tax revenue for the City and relieve the City of further
maintenance costs; and
NOW THEREFORE BE IT RESOLVED, that parcel numbers 24-895-002-0001-00 and 24-895-001-
0001-00 be sold to Adam McCausland, for $292,000.
    CITY OF MUSKEGON SEC 31 T10N R16W PT BLK 1 AND PT VAC ALLEY IN SD BLK 1 YOUNG &
WILLIAMS ADDN COM AT SE COR OF THE NW FRL 1/4 SD SEC TH N 00D 00M 00S E 1295.50 FT ALG E
LN SD NW FRL 1/4 TH S 89D 46M 54S W 33.00 FT ALG S ROW LN YOUNG AVE & ITS EXTENSION IN SD
  YOUNG & WILLIAMS ADDN FOR POB TH S 00D 00M 00S W 249.79 FT ALG THE W R/W LN PARK AVE
TH S 89D 43M 30S W 274.43 FT TH N 00D 00M 00S E 250.08 FT ALG E ROW LN WAALKES ST TH N 89D
 46M 54S E 274.43 FT ALG SD S ROW LN YOUNG AVE TO POB ALSO INCL E 1/2 OF VAC WAALKES ST
       ADJ THERETO PURSUANT TO CITY OF MUSKEGON VACATE RESOLUTION #2012-39(E)

CITY OF MUSKEGON PT OF BLK 2 AND PT OF THE VAC ALLEY IN SD BLK 2 YOUNG & WILLIAMS ADDN
  COM AT THE SE COR OF THE NW FRL 1/4 SEC 31 T10N R16W TH N 00D 00M 00S E 1295.50 FT ALG
  THE E LN OF S NW FRL 1/4 TH S 89D 46M 54S W 373.43 FT ALG THE S R/W LN OF YOUNG AVE AND
 ITS EXTENSION IN SD YOUNG & WILLIAMS ADDN FOR POB TH S 00D 00M 00S W 250.13 FT ALG THE
W R/W LN OF WAALKES ST TH S 89D 43M 30S W 266.00 FT TH N 00D 00M 00S E 250.39 FT ALG THE E
   R/W LN OF TEMPLE ST TH N 89D 46M 54S E 266.00 FT ALG SD S R/W LN OF YOUNG AVE TO POB
PROPOSED ESMT OVER RUDDIMAN CREEK DRAIN: THAT PT OF THE FOLLOWING DESCRIBED ESMT
  LYING OVER AND ACROSS THE ABOVE PARCEL A 50 FT WDE STRIP OF LAND C/L DESCRIBED AS
COM AT THE W 1/4 COR OF SEC 31 T10N R16W TH S 89D 49M 59S E 1031.12 FT ALG THE S LN OF THE
   NW FRL 1/4 OF SD SEC FOR POB OF SD C/L TH N 45D 25M 16M E 354.00 FT TH N 02D 08M 16S E
  495.50 FT TH N 43D 12M 46S E 749.75 FT FOR POE OF SD C/L ON THE S R/W LN OF YOUNG AVE IN
YOUNG & WILLIAMS ADDN THE SIDELINES OF SD 50 FT WIDE STRIP OF LAND EXTEND OR SHORTEN
      TO ALLOW NO GAPS OR OVERLAPS ALSO INC W 1/2 OF VAC WAALKES ST ADJ THERETO
                      PURSUANT TO CITY OF MUSKEGON VACATE RESOLUTI

Adopted this 13th day of August 2019
Ayes:
Nays:
Absent:
                                                             By: _________________________
                                                                 Stephen Gawron
                                                                 Mayor

                                                       Attest: _________________________
                                                                Ann Marie Meisch, MMC
                                                                City Clerk




                                                                                              3
                                       CERTIFICATION

I hereby certify that the foregoing constitutes a true and complete copy of a resolution adopted
by the City Commission of the City of Muskegon, County of Muskegon, Michigan at a regular
meeting held on August 13, 2019.

                                                          By: ________________________
                                                              Ann Marie Meisch, MMC
                                                              City Clerk




                                                                                          4
Date:      8/13/2019

To:        Honorable Mayor and City Commissioners

From:      Department of Planning and Economic Development

RE:        Acceptance of Property from Muskegon County


SUMMARY OF REQUEST:

Accept the quit claim deed from Muskegon County for property at 1390 Henry Street
commonly referred to as the Carpenter Brothers site.

DPW and Planning staff have been working with the West Michigan Shoreline Regional
Development Commission and the county to design a green infrastructure project on the
parcel. The project will treat a portion of the city’s stormwater prior to the outlet at
Rotary Park, and city staff will be responsible for maintenance since it serves our
stormwater system.

The parcel also includes the downtown Bark Park, and the DDA has taken responsibility
for maintenance of that facility.

FINANCIAL IMPACT:
None.

BUDGET ACTION REQUIRED:
None.

STAFF RECOMMENDATION:
Accept the quit claim deed.




O:\CLERK\Common\Word\Agenda Items for Next Meeting\2019\081319\P1_Commission Request Carpenter
Brothers Quit Claim Deed.doc
Date:      8/13/2019

To:        Honorable Mayor and City Commissioners

From:      Department of Planning and Economic Development

RE:        Lease of Yuba Street Property to the Community Foundation for
           Muskegon County


SUMMARY OF REQUEST:

Lease a portion of the old farmer’s market property to the Community Foundation for
Muskegon County for up to 5 years with an option to purchase. The lease includes
approximately 7 of the total 15.3 acre site and the majority of the buildable land. The
property will be used to develop a food processing incubator and business development
center targeted at stage one or two entrepreneurial companies or existing mature
companies looking for an offsite location for test manufacturing of new products.

FINANCIAL IMPACT:
Revenue from the lease.

BUDGET ACTION REQUIRED:
None.

STAFF RECOMMENDATION:
Approve the lease and direct the mayor and clerk to sign.




O:\CLERK\Common\Word\Agenda Items for Next Meeting\2019\081319\Q1_Commission Request Yuba Ground
Lease.doc
                                     GROUND LEASE
             THIS GROUND LEASE is made and entered into on this _____ day of
________________, 2019 (the “Effective Date”), by and between CITY OF MUSKEGON, a
Michigan municipal corporation ("Lessor"), and COMMUNITY FOUNDATION FOR
MUSKEGON COUNTY, a Michigan nonprofit corporation of 425 W. Western Avenue, Suite
200, Muskegon, Michigan 49440 ("Lessee") based upon the following facts:

        A.      Lessor is the owner of certain real estate containing approximately 15.25 acres,
located at 731 Yuba Street, Muskegon, Michigan 49442,. Lessor is leasing to Lessee the
westerly 7 +/- acres (bounded by Yuba, Eastern, Rathborne, Walton, and Murphy), as more
particularly described on Exhibit A attached hereto ("Property").

       B.      Lessor and Lessee desire to allow Lessee to construct a food processing
accelerator on the Property.

       C.      Lessor and Lessee have agreed that the Property shall be leased to Lessee
pursuant to the terms and conditions of this Lease.

               In consideration of the mutual covenants herein contained, Lessor and Lessee
agree as follows:

                                          ARTICLE I

                                DEMISE AND DESCRIPTION

        1.01 Property. Lessor leases to Lessee, and Lessee leases from Lessor, the Property.
Except as otherwise provided under this Lease, Lessee has inspected the Property, and agrees to
accept the same in its present "as is" condition, with no warranty whatsoever concerning its
condition or permitted use, and subject to and benefited by all easements, restrictions, mortgages,
liens and encumbrances, all zoning laws and ordinances affecting the same, and any matter that
would be discoverable upon an inspection of the Property.

        1.02 Environmental Condition. Lessee represents and warrants that it has had the
opportunity to investigate all matters of interest pertinent to the Property including its
environmental condition, as it has determined to be necessary. Notwithstanding any other
provision of this Lease, Lessee waives any objection to the environmental condition of the
Property. Lessee hereby releases Lessor from all responsibility, claims, obligations, and liability
arising from or associated with (i) the presence or release of any Hazardous Substance at or
relating to the Property; and (ii) any environmental condition associated with or arising from the
use of the Property prior to, on or after the Effective Date. “Hazardous Substance” means any
material, substance, toxic chemical, contaminant, pollutant, or waste as defined by any
Environmental Law and includes but is not limited to petroleum, petroleum products, hazardous
chemicals, hazardous waste, toxic substances, toxic chemicals, pesticides, radioactive materials,
polychlorinated biphenyls, asbestos, radon gas, metals, and any other element, compound,
mixture, solution, substance, material, waste or the like that may pose a present or potential
danger to human health, safety, and the environment. “Environmental Law” means any federal,
state, or local law, including the common law, relating to the protection of the environment
(including air, surface water, groundwater, drinking water supply, surface or subsurface land),
human health, or occupational health and safety.

                                          ARTICLE II

                                          OWNERSHIP

        2.01 Ownership. Lessee shall at all times during the term of this Lease have title to all
buildings, improvements, fixtures and other types of fixed personalty appurtenant to the
Property, constructed on or adjacent to the Property by Lessee (the “Facility”). Except as
provided under Section 19.20, upon expiration or early termination of this Lease, title to the
Facility shall automatically, without action on the part of either of the parties hereto, vest in
Lessor, its successors and assigns. Notwithstanding the foregoing, upon Lessor's request, Lessee
covenants and agrees that upon expiration of this Lease, or upon such termination, it will execute
and deliver to Lessor a bill of sale to the Facility on the Property, as Lessor may reasonably
request. Lessee shall not permit any willful or deliberate damage to the Facility. If, for any
reason, Lessor takes title to the Facility by reasons of the termination or expiration of the Lease,
such act shall constitute an automatic assignment by Lessee to Lessor of Lessee's right to receive
any rents or payments from any Lessees, subtenants, sublessees or other occupants of the
Facility, and Lessee shall cooperate with Lessor in notifying such Lessees, subtenants, sublessees
and occupants of Lessor's right to receive the same.

                                          ARTICLE III

                                              TERM

        3.01 Term. The term of this Lease shall commence on the Effective Date and shall
continue for a period of five (5) years from the Effective Date (the "Term"). Expiration of the
Term (unless extended or sooner terminated as hereinafter provided) shall be at midnight five (5)
years after the Effective Date.

       3.02 Effect of Lessee's Holding Over. Any holding over after the expiration of the
Term of this Lease, with or without the consent of Lessor, shall be construed to be a tenancy
from month to month, at monthly rental equal to ten times the annual Rent, divided by twelve,
and shall otherwise be on the terms and conditions herein specified, so far as applicable.

                                          ARTICLE IV

                                              RENT

        4.01 Rent. During the Term, the annual rent for the Property for each year of the Lease
payable by Lessee to Lessor shall be One Hundred ($100) Dollars ("Base Rent"). Base Rent
shall be payable, in advance, without demand, notice, setoff or counterclaim at Lessor's address



                                                -2-
set forth above or at such other place as Lessor may direct by written notice, from time to time,
from Lessor to Lessee.

        4.02 Additional Rent. All sums in addition to Base Rent due to be paid to Lessee
under the terms of this Lease shall constitute "Additional Rent." All Additional Rent shall be
due and payable immediately upon demand to Lessee at such place as the Lessee shall from time
to time designate. Base Rent and Additional Rent shall be collectively referred to as "Rent."

        4.03 Interest. Rent, or any portion thereof, and other charges due to Lessor hereunder
not paid when due, shall bear interest at an annual rate equal to three percent (3%) or the highest
rate permitted by applicable statute, whichever is lower ("Default Rate").

        4.04 Triple Net Lease. The Rent provided for in this Lease shall be an absolutely net
return to Lessor for the Term, free from any losses, expenses or charges with respect to the
Property, including, without limitation, maintenance, repairs, cost of replacement of buildings, or
improvements, insurance, taxes, assessments or other charges imposed upon or related to the
Property, or with respect to any easements or rights appurtenant thereto (except as otherwise
expressly provided herein). All such amounts shall be paid by Lessee.


                                          ARTICLE V

                  CONSTRUCTION, ALTERATIONS AND ADDITIONS

       5.01    Development of Property, Construction, Alterations and Additions

               (a)     Lessee shall have sole authority and discretion for the
       specifications, design, and planning for the development of the Property (the
       “Project”), including schedule for commencement and completion of each phase
       of the Project, projected costs, revenues, and sources of funds.

               (b)     Lessee shall use its best efforts to use contractors whose primary
       offices are located in Muskegon County, Michigan, and the construction contracts
       shall be assignable to Lessor following an event of default on the Lease.

               (c)    All construction, alterations and additions or other work necessary
       or desirable to place the Property in a condition suitable to construct the Facility
       and associated improvements for the Intended Use shall be performed in a good
       and workmanlike manner by or for Lessee, and at Lessee's sole cost and expense.

               (d)    Lessee shall, at Lessee's sole cost and expense, procure all permits
       and licenses and make all contracts necessary for the performance of construction,
       alterations, additions and other work on the Property. Such work shall fully
       conform to all applicable statutes, ordinances, regulations, and codes, including
       all Environmental Laws, as well as any restrictions recorded in the deed records
       for the Property. Lessee acknowledges that Lessor has advised Lessee pursuant to



                                               -3-
       MCL 324.20116(1) that Lessor has knowledge or information or is on notice
       through a recorded instrument that the Property is a "facility" within the meaning
       of MCL 324.20101(o). Lessee acknowledges that the environmental condition of
       the Property may impact development and construction on the Property,
       particularly as it relates to any prior releases that may have impacted the surface
       or the subsurface of the Property, and agrees to take all appropriate precautions so
       as to not exacerbate any such environmental condition. Lessee acknowledges
       receipt of:

                       i. a written description of the general nature and extent of the
               release(s) that qualifies the Property as a "facility" attached to this
               Agreement as Exhibit B; and

                      ii. environmental restrictions, if any, that have been previously
               recorded in the deed records for the Property attached as Exhibit C.

              (e)    Lessee's contractors shall perform their work on the Property only.
       Lessee shall be responsible for periodic removal from the Property of all trash,
       rubbish and surplus materials resulting from any work being performed on the
       Property.

       5.02 Development Schedule. Lessee shall have commenced construction of the
Project within nine (9) months following the Effective Date. Lessee shall complete
development of and construction of the Facility by December 31, 2020. If Lessee shall fail to
comply with any obligation under Section 5.01 or this Section 5.02, Lessor may terminate the
Lease, effective ninety (90) days following written notice thereof to Lessee, if such failure is not
cured within such ninety day period.

                                         ARTICLE VI

                                     USE OF PROPERTY

        6.01 Intended Use. The Property shall be used solely for the erection, maintenance and
operation of facilities used as a food processing accelerator as may be constructed and operated
on the Property by Lessee or the present and future affiliates or successors of Lessee, or other
subtenants and occupants ("Intended Use"). The Property shall be used for a food accelerator or
for other agri-business, and no other purpose without Lessor's prior written consent, which shall
not be unreasonably withheld, delayed or conditioned.

        6.02 Protection of Lessor's Title in Property. Lessee shall not suffer or permit the
Property, or any portion thereof, to be used by the public, as such, without restriction or in such
manner as might impair Lessor's title to the Property or any portion thereof, or in such manner as
may reasonably make possible a claim or claims of adverse usage or adverse possession by the
public, as such, or of implied dedication of the Property or any portion thereof.




                                               -4-
         6.03 Uses Prohibited. Lessee shall comply with all applicable laws, rules, codes,
regulations and restrictions on the Property ("Legal Requirements"), and Lessee shall not use,
nor permit the Property or any part thereof to be used, for any purpose or purposes other than the
purpose or purposes for which the Property are hereby leased; and no use shall be made or
permitted to be made of the Property, or acts done, which will cause a cancellation of any
insurance policy covering the Facility or Property, or any part thereof, nor shall Lessee sell or
permit to be kept, used, or sold in or about the Property, any article which may be prohibited by
the standard form of fire insurance policy carried by Lessee. Lessee shall, at its sole cost,
comply with all requirements pertaining to the Property and with all requirements of any
insurance organization or company necessary for the maintenance of insurance, as herein
provided, covering any building, improvements or appurtenances at any time located on the
Property. Also prohibited is any use that would violate any Legal Requirement or cause any
restriction to be placed on the use of the Property.

         6.04 Waste and Nuisance Prohibited. During the Term of this Lease, Lessee shall
comply with all Legal Requirements affecting the Property, the breach of which might result in
any penalty to Lessor, or forfeiture of Lessor's title to the Property, or restriction against Lessor's
title to the Property. Lessee shall not commit, or suffer to be committed, any waste on the
Property, or any nuisance or illegal act.

       6.05    Environmental Matters.

              (a)     Lessee has advised Lessor that Lessee does not presently engage in
       a business which requires the use of any Hazardous Substance other than
       incidental use of nonmaterial amounts thereof. Except as consistent with the
       foregoing, Lessee shall not cause or permit any Hazardous Substance to be
       brought upon, kept, or used in or about the Property by Lessee, its agents, em-
       ployees, contractors, or invitees. Lessor shall be entitled to inspect the Property
       from time to time to determine if any Hazardous Substance is present.

              (b)    Lessee shall, at all times, comply with any and all Environmental
       Laws, including, but not limited to, the obligations set forth in MCL 324.20107a.

              (c)     Lessee shall not discharge, leak, spill, or emit, or permit to be dis-
       charged, leaked, or emitted, any Hazardous Substance into the atmosphere,
       ground, or any body of water, if that material (as is reasonably determined by
       Lessor, or any governmental authority) does or may pollute or contaminate the
       same, or may adversely affect (i) the health, welfare, or safety of persons, whether
       located on the Property or elsewhere, or (ii) the condition, use, or enjoyment of
       the Property or any other real or personal property.

              (d)    Lessee hereby agrees that it shall be fully liable for all costs and
       expenses related to the use, storage, and disposal of any Hazardous Substance
       kept on the Property by Lessee, or any subtenants, and the Lessee shall give
       immediate notice to the Lessor of any violation or potential violation of the
       provisions of subsection (c) above. Lessee shall defend, indemnify, and hold



                                                 -5-
       harmless Lessor and its agents from and against any claims, demands, penalties,
       fines, liabilities, settlements, damages, costs, or expenses (including, without
       limitation, attorneys and consultants' fees, court costs, and litigation expenses) of
       whatever kind or nature, known or unknown, contingent or otherwise, arising out
       of or in any way related to (i) the presence, disposal, release, or threatened release
       of any such Hazardous Substance that is on, from, or affecting the soil, water,
       vegetation, buildings, personal property, persons, animals, or otherwise; (ii) any
       personal injury (including wrongful death) or property damage (real or personal)
       arising out of or related to that Hazardous Substance; (iii) any lawsuit brought or
       threatened, settlement reached, or government order relating to that Hazardous
       Substance; or (iv) any violation of any laws applicable thereto. The provisions of
       this subsection (d) shall be in addition to any other obligations and liabilities
       Lessee may have to Lessor at law or equity and shall survive the transactions
       contemplated herein and shall survive the termination of this Lease.

        6.06 Redelivery of Property. Lessee shall pay the Rent and all other sums required to
be paid by Lessee hereunder in the amounts, at the times, and in the manner herein provided, and
shall keep and perform all the terms and conditions hereof on its part to be kept and performed
and, at the expiration or sooner termination of this Lease (subject to Section 19.20), peaceably
and quietly quit and surrender to Lessor the Property free and clear of all liens and encumbrances
and in good order and condition, subject to reasonable wear and tear, casualty (to the extent
insurance proceeds are delivered to Lessor), ordinary depreciation, and obsolescence and subject
to the other provisions of this Lease. In the event of the nonperformance by Lessee of any of the
covenants of Lessee undertaken herein, this Lease may be terminated as herein provided. Upon
termination of this Lease, Lessee shall promptly execute and deliver to Lessor such deeds or
other instruments as may be required to convey any interest which it might have in the Property.

       6.07 Abandonment of Property. Lessee shall not vacate or abandon the Property, or
any part thereof, at any time during the Term but Lessee shall not be deemed to have vacated or
abandoned the Property during times when alterations, casualty or other activity under this Lease
dispossesses Lessee of day to day use of the Property. If Lessee does abandon, vacate or
surrender the Property, or any part thereof, or is dispossessed by process of law, or otherwise,
any personal property belonging to the Lessee or its subtenants and left on the Property shall be
deemed abandoned at the option of Lessor.

        6.08 Signs. Lessee may erect, maintain, and remove such signs as it deems necessary,
appropriate, or desirable to its business operations in, on, or about the Property, provided that the
signs are in compliance with all Legal Requirements.

                                          ARTICLE VII

                                 TAXES AND ASSESSMENTS

       7.01 Taxes as Additional Rent. As Additional Rent hereunder, Lessee shall pay and
discharge as they become due, promptly and before delinquency, without proration, all taxes,
assessments, rates, charges, license fees, municipal liens, levies, excises or imposts, whether



                                                -6-
general or special or ordinary or extraordinary, of every name, nature and kind whatsoever,
including, without limitation, all governmental charges of whatsoever name, nature or kind,
which may be levied, assessed, charged or imposed, or which may become a lien or charge on or
against the Property, or any part thereof, the leasehold of Lessee herein, the Facility, or any
building or buildings or other improvements now or hereafter on the Property, or on or against
Lessee's estate hereby created which may be a subject of taxation, or on or against Lessor's
interest in the Property during the Term hereof. If the right is given to pay either in one sum or
in installments, Lessee may elect either mode of payment, and its election shall be binding upon
Lessor. If, by making any such election to pay in installments, any of such installments shall be
payable without penalty after the termination of this Lease, or any extended term hereof, such
unpaid installments shall also be paid by Lessee. Failure to pay taxes, assessments, levies and
the like herein shall carry with it the same consequence as failure to pay any installment of Rent.

        7.02 Receipts. Lessee shall obtain and deliver to Lessor receipts or duplicate receipts
for all taxes, assessments and other items required hereunder to be paid by Lessee, promptly
upon the request of Lessor.

                                         ARTICLE VIII

                                          INSURANCE

       8.01 Insurance Coverage of Facility and Improvements. Lessee shall, at all times
during the Term, and at Lessee's sole expense, keep all improvements which are now or which
may hereafter become a part of the Property or the Facility, or both, insured with broad form fire
and extended coverage insurance with an all-risk endorsement against loss or damage by fire,
earthquake, flood, war and other extended coverage hazards for not less than the full replacement
value of such improvements (excluding foundations and excavation), with loss payable to Lessor
and Lessee as their interests may appear. Any loss adjustment shall require the written consent
of Lessor and Lessee.

        8.02 Liability Insurance. Lessee shall maintain in effect, at its sole expense,
throughout the Term, commercial general liability insurance coverage with respect to the
Property with a single limit coverage amount of not less than Two Million Dollars ($2,000,000)
each occurrence for personal injury, death, or property damage. Such insurance shall specifically
insure against all liability assumed hereunder, as well as liability imposed by Legal
Requirements, and shall insure both Lessor and Lessee. Said insurance shall be so endorsed as to
create the same liability on the part of the insurer as though separate policies had been written for
Lessor and Lessee.

        8.03 Lessor's Right to Pay Premiums on Behalf of Lessee. All of the policies of
insurance referred to in this Article shall be written in form and by insurance companies
reasonably satisfactory to Lessor. Lessee shall pay all of the premiums therefor, and shall
deliver such policies or certificates thereof to Lessor and all others designated by Lessor, and in
the event of the failure of Lessee to obtain such insurance in the names herein called for, to pay
the premiums therefor, or to deliver such policies or certificates thereof to Lessor, Lessor shall be
entitled, but shall have no obligation, to obtain such insurance and pay the premiums therefor,



                                                -7-
which premiums shall be repayable to Lessor upon written demand therefor, and failure to repay
the same shall carry with it the same consequence as failure to pay any installment of Rent. Each
insurer mentioned in this Article shall agree, by endorsement on the policy or policies issued by
it, or by independent instrument furnished to Lessor, that it will give to Lessor and any
mortgagee of the Property thirty (30) days' written notice before the policy or policies in question
shall expire, or be altered or cancelled. Lessor shall not unreasonably withhold its approval as to
the form or the insurance companies selected by Lessee.

        8.04 Definition of Full Replacement Value. The term "full replacement value" of
improvements, as used herein, shall mean the actual replacement cost thereof from time to time,
less exclusions provided in the normal fire insurance policy. If either party believes that the full
replacement value, that is to say, the then replacement cost less exclusions, has increased or
decreased, it shall have the right, but, except as provided below, only at intervals of not less than
five (5) years, to have such full replacement value redetermined by the fire insurance company
which is then carrying the largest amount of fire insurance on the Facility and other
improvements on the Property, hereinafter referred to as the "impartial appraiser." The party
desiring to have the full replacement value so redetermined by such impartial appraiser shall
forthwith on submission of its request for redetermination to such impartial appraiser give
written notice to the other party hereto. The determination of such impartial appraiser shall be
final and binding on the parties hereto, and Lessee shall forthwith increase, or may decrease, the
amount of the insurance carried pursuant to this Article, as the case may be, to the amount so
determined by the impartial appraiser. Such determination shall be binding for a period of five
(5) years, and until superseded by agreement between the parties hereto or by a subsequent
redetermination by an impartial appraiser. Each party shall pay one-half of the fee, if any, of the
impartial appraiser. If during any such five (5) year period Lessee shall have made
improvements to the Property or the Facility, Lessor may have such full replacement value
redetermined at any time after such improvements are made, regardless of when the full
replacement value was last determined.

        8.05 Blanket Insurance Policies. Notwithstanding anything to the contrary contained
in this Article, Lessee's obligations to carry the insurance provided for herein may be brought
within the coverage of a so-called blanket policy or policies of insurance carried and maintained
by Lessee; as long as the coverage afforded Lessor shall not be reduced or diminished or
otherwise be different from that which would exist under a separate policy meeting all other
requirements of this Lease by reason of the use of such blanket policy of insurance, and all other
requirements of this Article shall be satisfied.

        8.06 Cost of Insurance Deemed Additional Rent. The cost of insurance required to be
carried by Lessee in this Article shall be deemed to be Additional Rent hereunder.

       8.07 Waiver of Subrogation. Lessee, for itself and its respective successors and
assigns (including, without limitation, any person, legal entity, firm or corporation which may
become subrogated to any of its rights) waives any and all rights and claims for recovery against
Lessor, and its officers, directors, shareholders, employees, agents and assigns, or any of them,
on account of any loss or damage to any of its property located on the Property insured under any
valid and collectible insurance policies, to the extent of any recovery collectible under such



                                                -8-
insurance policies. Each insurance policy carried by Lessee and insuring all or any part of such
property shall provide that the insurance company waive all right of recovery by way of
subrogation against Lessor.

                                          ARTICLE IX

            ENCUMBRANCE OF FACILITY AND LEASEHOLD INTEREST

        9.01 Loans to Lessee. Lessee shall have the right to finance the construction of the
Facility and pledge this Lease and the leasehold interest herein as security for the financing,
provided that the amortization period of the new loan shall not exceed the remaining term of this
Lease.

        9.02 Protection of Lessee's Mortgage. During the existence of any mortgage of this
Lease or an interest herein by Lessee of which the Lessor has been given notice by the Lessee or
the mortgagee, the Lessor will not terminate this Lease because of any default by the Lessee
hereunder if, within a period of thirty (30) days after the Lessor has mailed written notice of its
intention to terminate this Lease for such cause to the mortgagee at its last known address, the
mortgagee shall commence cure of such default and is actively pursuing in good faith cure of the
default.

                                           ARTICLE X

                  REPAIRS AND DESTRUCTION OF IMPROVEMENTS

        10.01 Maintenance of Improvements. Lessee shall, throughout the Term, at its own cost
and without any expense to the Lessor, keep and maintain the Property and the Facility,
including, without limitation, all structural, nonstructural, interior and exterior portions thereof,
in good, sanitary and neat order, condition and repair, subject to ordinary wear and tear, casualty,
ordinary depreciation, and obsolescence. Lessee shall, except as specifically provided herein,
restore, repair, replace or rehabilitate any improvements of any kind which may be destroyed or
damaged by fire, casualty or any other cause whatsoever except to the extent such insurance
proceeds are delivered to Lessor in lieu thereof. Lessor shall not be obligated to make any
repairs, replacements or renewals of any kind, nature or description whatsoever to the Property
or the Facility or any buildings or improvements thereon. Lessee shall also comply with and
abide by all Legal Requirements affecting the Property, the improvements thereon, or any
activity or condition on or in such Property.

        10.02 Damage to and Destruction of Improvements. The damage, destruction, or partial
destruction of the Facility or any other building or improvements which are on the Property shall
not release or diminish Lessee's obligations hereunder. In case of damage to or destruction of the
Facility or any other improvement on the Property, Lessee shall, in accordance with Section 5.01
hereof and at its own expense, promptly repair and restore the same to a condition as good as or
better than that which existed prior to such damage or destruction. Without limiting such
obligations of Lessee, it is agreed that, so long as Lessee is not then in default hereunder, and
subject to the rights of any mortgagee of the Property, the proceeds of any insurance covering



                                                -9-
such damage or destruction shall be made available to Lessee for such repair or replacement.
Insurance proceeds shall be held in trust by Lessor for construction disbursement to Lessee.

                                         ARTICLE XI

                                             LIENS

        11.01 Lessee's Duty to Keep Property Free of Liens. Lessee shall keep all of the
Property, and every part thereof, the Facility, and all other buildings and improvements at any
time located thereon, and the leasehold estate of Lessee, free and clear of any and all
construction liens for or arising out of or in connection with work or construction by, for or
permitted by Lessee on or about the Property or the Property, and any obligations of any kind
incurred by Lessee, and at all times shall promptly and fully pay and discharge any and all claims
on which any such lien may or could be based, and shall indemnify Lessor and all of the
Property, the Property, the Facility and the leasehold estate against all such liens and claims of
liens and suits or other proceedings pertaining thereto.

       11.02 Lessee's Leasehold Interest. Except as permitted under Section 9.01, Lessee
agrees that it will not mortgage or encumber its leasehold interest in the Property without
Lessor's prior written consent, which shall not be unreasonably withheld, delayed or conditioned.

                                         ARTICLE XII

                 EASEMENTS AND OTHER NONEXCLUSIVE RIGHTS

        12.01 Utility Easement. This Lease is subject to all utility easements pertaining to the
Property, whether or not of record. Lessor may, without consent of the Lessee, grant any other
easements for public or private utilities or other uses as required by Lessor, provided that such
easements do not unreasonably restrict the use of the Property for the purposes contemplated by
this Lease.

                                        ARTICLE XIII

                   PROHIBITION OF INVOLUNTARY ASSIGNMENT;
                     EFFECT OF BANKRUPTCY OR INSOLVENCY

        13.01 Prohibition of Involuntary Assignment. Neither this Lease nor the leasehold
estate of Lessee, nor any interest of Lessee hereunder in the Property, the Facility, the Property,
or any improvements thereon, shall be subject to involuntary assignment, transfer or sale by
operation of law in any manner whatsoever, and any such attempt at involuntary assignment,
transfer or sale shall be void and of no effect.

       13.02 Effect of Bankruptcy, Insolvency, Etc. Without limiting the generality of the
provisions of the preceding section, Lessee agrees that:




                                               - 10 -
              (a)    in the event any proceedings under federal bankruptcy law shall be
       commenced by or against Lessee, and if commenced against Lessee, shall not be
       dismissed within thirty (30) days; or

              (b)       in the event Lessee becomes insolvent or makes an assignment for
       the benefit of its creditors; or

              (c)     if a receiver is appointed in any proceeding or action to which
       Lessee is a party, with authority to take possession or control of all or any part of
       the Property or the business conducted thereon by Lessee, and such receiver is not
       discharged within a period of thirty (30) days after his appointment; or

              (d)     any involuntary assignment prohibited by the provisions of the
       preceding section shall occur;

then such event or occurrence shall be deemed to constitute a breach of this Lease by Lessee and
shall, at the election of Lessor, but not otherwise, without notice of entry or other action of
Lessor, terminate this Lease and also all rights of Lessee under this Lease and in and to the
Property and also all rights of any and all persons claiming under Lessee.

        13.03 Bankruptcy without Termination. If following the filing of a petition by or
against Lessee in a bankruptcy court Lessor shall not be permitted to terminate this Lease as
hereinabove provided because of the provisions of Title 11 of the United States Code relating to
Bankruptcy, as amended (the "Bankruptcy Code"), the Lessee (including Lessee as Debtor-in-
Possession) or any trustee for Lessee agrees to promptly, but no later than fifteen (15) days after
petition by Lessor to the bankruptcy court, assume or reject this Lease, and Lessee agrees not to
seek or request any extension or adjournment of any petition to assume or reject this Lease by
Lessor with such court. Lessee's, or the trustee's, failure to assume this Lease within said fifteen
(15) day period shall be deemed a rejection. Lessor shall thereupon immediately be entitled to
possession of the Property without further obligation to Lessee or the trustee, and this Lease shall
be terminated, except that Lessor's right to damages for Lessee's default shall survive such
termination. Lessee or any trustee for Lessee may only assume this Lease if (a) it cures or
provides adequate assurance that the trustee will promptly cure any default hereunder, (b) it
compensates or provides adequate assurance that the Lessee will promptly compensate Lessor
for any actual pecuniary loss to Lessor resulting from Lessee's default and (c) it provides
adequate assurance of future performance under this Lease by Lessee. In no event after the
assumption of this Lease by Lessee or any trustee for Lessee shall any then existing default
remain uncured for a period in excess of ten (10) days. Adequate assurance of future
performance of this Lease shall include, without limitation, adequate assurance (d) of the source
of rent required to be paid by Lessee hereunder, and (e) that assumption or permitted assignment
of this Lease will not breach any provision hereunder.




                                               - 11 -
                                          ARTICLE XIV

             SUBLETTING; ASSIGNMENT; TRANSFER TO MORTGAGEE

          14.01       Assignment and Subletting. Lessee shall not assign or transfer this Lease
  or any part of the Property (the foregoing herein collectively called "Transfers") without
  Lessor’s prior written consent, which shall not be unreasonably withheld, delayed or
  conditioned. The foregoing notwithstanding and notwithstanding any other provision of this
  Lease, Lessor's consent shall not be required for any Transfer: (a) which is a subtenancy,
  concession or license given in the ordinary course of operating the Property for the Intended
  Use, any subsequent use by Lessee, or any use by a transferee to whom Lessor has previously
  consented; or (b) to a lender as collateral for a loan or line of credit made or given to Lessee
  for the financing of the Facility as provided in Section 9.01, or given to Lessee or a transferee
  to whom Lessor has consented, or the parent, subsidiary, or entity related or affiliated with
  Lessee or such transferee to the extent such is permitted hereunder.

          14.02       Occupants/Subtenants. Lessee, in its sole discretion, may sublease the
  Property to lessees for the Intended Use, and Lessee may further license, lease or sublease any
  space in the Facility (which includes the parking) under any lease, sublease or other
  agreement, contract, or other instrument or arrangement, subject to Legal Requirements. All
  sublessees, concessionaire, and licensees shall take such part or the entire Property or Facility
  subject and be subordinate to the terms and conditions of this Lease.

           14.03       Transfer to Mortgagee. Notwithstanding anything to the contrary in this
  Lease, Lessee shall have the unrestricted right to assign or transfer its interest in this Lease to a
  mortgagee or to another party designated by the mortgagee in lieu of default of the mortgage on
  the leasehold interest of the Property. The transfer of Lessee's interest in the Property shall not
  affect the terms of this Lease, and such new lessee shall comply with all terms and conditions of
  this Lease.

         14.04        Limitation. Any assignment, transfer, lease, sublease, or license permitted
  above shall be subject to this Ground Lease.

                                          ARTICLE XV

                              INDEMNIFICATION OF LESSOR

        15.01 Indemnification of Lessor. Lessor shall not be liable for any loss, injury, death or
damage to persons or property, including, but not limited to, claims made for medical
malpractice, which at any time may be suffered or sustained by Lessee, or by any persons who
may at any time be using or occupying or visiting the Property or the Facility, or may be in, on or
about the same, whether such loss, injury, death or damage shall be caused by or in any way
result from or arise out of any act, omission, or negligence of Lessee or of an occupant,
subtenant, visitor or user of any portion of the Property or the Facility, or shall result from or be
caused by any other matter or thing, whether of the same kind as or of a different kind than the
matters or things above set forth, and Lessee shall indemnify and defend Lessor from and against
all claims, liabilities, losses or damages whatsoever, including, without limitation, attorneys'


                                                - 12 -
fees, on account of any such loss, injury, death or damage. Lessee hereby waives all claims
against Lessor for damages to the Facility and improvements that are now on or are hereafter
placed or built on the Property and to the property of Lessee in, on, or about the Property to the
Facility, from any cause arising at any time. The foregoing provisions of this Section shall not
apply to loss, injury, death or damage arising by reasons of the negligence or misconduct of
Lessor, or its invitees, licensees, agents or employees.

                                        ARTICLE XVI

                  WARRANTIES OF TITLE AND QUIET POSSESSION

       16.01 Warranties. Lessor covenants that Lessor is seized of the Property, in fee simple,
and has full right to make this Lease, and that so long as Lessee is not in default hereunder,
Lessee shall have quiet and peaceable possession of the Property during the Term, in accordance
with the terms and conditions hereof. Said warranties are limited to Lessee and all persons
claiming under Lessee.

                                        ARTICLE XVII

                                          DEFAULT

       17.01 Event of Default. If:

               (a)     Lessee fails to make any payment of Rent on the due date thereof
       and fails to cure such delinquency within ten (10) days after written notice thereof
       has been given by Lessor to Lessee; or

               (b)     Lessee breaches any covenant of this Lease other than the covenant
       for the payment of Rent and fails to cure such breach within thirty (30) days after
       written notice thereof has been given by Lessor to Lessee; or

              (c)      Lessee becomes involved in a legal proceeding which results in the
       levy of execution on or the acquisition of his leasehold interest by a trustee in
       bankruptcy, receiver, assignee or other legal officer appointed in any insolvency
       or creditors' proceedings, and such default is not corrected or cured within thirty
       (30) days after receipt of written notice to do so; or

then, and in any of the foregoing events, Lessee shall be deemed to have committed an Event of
Default under this Lease.

               If Lessee commits an Event of Default, it shall be lawful for Lessor, at its option
after giving any written notice as required in subsections (a) through (c), inclusive, without
formal demand or further notice of any kind, and in addition to all other rights and remedies
provided at law or in equity, to:




                                              - 13 -
               (a)     Terminate this Lease, repossess the Property and be entitled to
       recover immediately, as liquidated agreed final damages, in lieu of any further
       deficiencies, the total amount due to be paid by Lessee during the balance of the
       Term, less the fair rental value of the Property for said period, together with any
       other sum of money owed by Lessee to Lessor. Lessor's right to terminate this
       Lease shall be subject to the terms and conditions set forth in Section 9.02 of this
       Lease. Upon termination under any provision of this Lease, including without
       limitation Section 5.02 or this Section 17.01, Lessee shall immediately deliver to
       Lessor all designs, and engineering and architectural plans and specifications
       related to the Project.

               (b)     Terminate Lessee's right of possession and repossess the Property
       without demand or notice of any kind to Lessee and without terminating this
       Lease, in which case Lessor may, but need not, relet all or any part of the Property
       for such rent and upon such terms as shall be satisfactory to Lessor. For the
       purposes of such reletting, Lessor may make such repairs, alterations, additions,
       or physical changes in or to the Property as may be necessary or convenient. If
       Lessor shall fail or refuse to relet the Property, then Lessee shall pay to Lessor as
       damages the total amount due to be paid by Lessee during the balance of the
       Term. If the Property is relet and a sufficient sum shall not be realized from the
       reletting, after payment of all costs and expenses of such repairs, alterations,
       additions, or physical changes and the expense of such reletting and the collection
       of rent occurring therefrom, to satisfy the rent herein provided to be paid during
       the remainder of the Term, Lessee shall satisfy and pay any such deficiency upon
       demand. Lessee agrees that Lessor may file suit to recover any sums falling due
       under the terms of this section from time to time, and that any suit, or recovery of
       any portion due Lessor hereunder shall be no defense to any subsequent action
       brought for any amount not theretofore reduced to judgment in favor of Lessor.

               (c)     Have specific performance of Lessee's obligations.

        17.02 Lessor's Right to Perform. In the event that Lessee, by failing or neglecting to do
or perform any act or thing herein provided by it to be done or performed, shall be in default
hereunder and such failure shall continue after written notice from Lessor specifying the nature
of the act or thing to be done or performed, then Lessor may, but shall not be required to, do or
perform or cause to be done or performed such act or thing, entering upon the Property for such
purposes, if Lessor shall elect, and Lessor shall not be or be held liable or in any way responsible
for any loss, inconvenience, annoyance or damage resulting to Lessor on account thereof, and
Lessee shall repay to Lessor, on demand, the entire expense thereof, including compensation to
the agents and employees of Lessor. Any act or thing done by Lessor pursuant to the provisions
of this Section shall not be or be construed as a waiver of any such default by Lessee, or as a
waiver of any covenant, term or condition herein contained, or of the requirement of
performance thereof, or of any other right or remedy of Lessor, hereunder or otherwise. All
amounts payable by Lessee to Lessor under any of the provisions of this Lease, if not paid when
the same become due as in this Lease provided, shall bear interest from the date they become due
until paid, at the Default Rate.



                                               - 14 -
        17.03 Waiver. The waiver by Lessor of, or the failure of Lessor to take action with
respect to, any breach of any term, covenant or condition herein contained shall not be deemed to
be a waiver of such term, covenant or condition, or of subsequent breach of the same, or of any
other term, covenant or condition herein contained. The subsequent acceptance of Rent
hereunder by Lessor shall not be deemed to be a waiver of any preceding breach by Lessee of
any term, covenant or condition of this Lease, other than the failure of Lessee to pay the
particular Rent so accepted, regardless of Lessor's knowledge of such preceding breach at the
time of acceptance of such Rent.

                                        ARTICLE XVIII

                              EFFECT OF EMINENT DOMAIN

        18.01 Effect of Total Condemnation. In the event the entire Property shall be
appropriated or taken under the power of eminent domain by any public or quasi-public
authority, or shall be conveyed by Lessor to any public or quasi-public authority under a threat of
such appropriation or taking, this Lease shall terminate and expire as of the date of such taking or
conveyance, Rent shall be prorated to such date, and Lessee and Lessor shall thereupon be
released from any liability thereafter accruing hereunder. All proceeds shall first be used to pay
off indebtedness, and any excess funds shall belong to Lessor and the Lessee as their interests
may appear.

        18.02 Effect of Partial Condemnation. If the taking consists of less than fifty percent
(50%) of the Property, there will be no termination of the Lease. If there is a taking of more than
fifty percent (50%) of the Property, then either Lessor or Lessee may terminate the Lease, and if
the Lease is terminated, the proceeds will be applied in the same way as under the preceding
section. If the Lease is not terminated, then Lessee shall rebuild to the extent possible and
consistent with the previous structures, and subject to the rights of any mortgagee of the
Property, the proceeds shall be used first to pay for such rebuilding, and any excess will go to
Lessor and Lessee as their interests may appear.


                                         ARTICLE XIX

                                      MISCELLANEOUS

        19.01 Utilities. Lessee shall fully and promptly pay for all water, sewer, gas, heat, light,
power, janitorial services, garbage disposal, communication service, telephone service and other
public utilities of every kind furnished to the Property or to the Facility throughout the Term, and
all other costs and expenses of every kind whatsoever, of or in connection with the use, operation
and maintenance of the Property or the Facility, and all activities conducted thereon or therein,
and Lessor shall not have responsibility of any kind for any payment thereof. Utility payments
shall be deemed Additional Rent under this Lease.




                                               - 15 -
       19.02 Lessor's Right of Entry. Lessee shall permit Lessor, and agents and employees of
Lessor, to enter into and upon the Property at all reasonable times for the purpose of inspecting
the same or for the purpose of posting notices.

       19.03 Surrender of Lease. The voluntary or other surrender of this Lease by Lessee, or
by a mutual cancellation thereof, shall not work a merger, and may, at the option of Lessor,
terminate all existing subleases or subtenancies, or may, at the option of Lessor, operate as an
assignment to it of any or all such subleases or subtenancies.

        19.04 Remedies Cumulative. All remedies hereinbefore and hereinafter conferred on
Lessor shall be deemed cumulative, and no one remedy shall be exclusive of another or of any
other remedy conferred by law.

       19.05 Notices.

               (a)    All notices, demands or other writings in this Lease provided to be
       given or made or sent shall be deemed to have been fully given or made or sent
       when made in writing and delivered to the principal office of, and acknowledged
       by, the party to whom notice is given, or deposited in the United States mail,
       registered and postage prepaid, and addressed as follows:

       TO LESSOR: City of Muskegon
                  P.O. Box 356
                  Muskegon, MI 49443-0356
                  Attention: City Manager

                      Parmenter Law
                      P.O. Box 786
                      Muskegon, MI 49443-0786
                      Attention: John Schrier

       TO LESSEE: Community Foundation for Muskegon County
                  425 W. Western Avenue, Suite 200
                  Muskegon, Michigan 49440
                  Attention: President

              (b)    The address to which any notice, demand or other writing shall be
       given or made or sent to any party, as provided in the preceding subsection, may
       be changed by written notice given by such party in accordance with this Section.

       19.06 Captions. The captions appearing under the Article and Section number
designations of this Lease are for convenience only and are not a part of this Lease and do not in
any way limit or amplify the terms and provisions of this Lease.

        19.07 Construction. This Lease shall be construed and interpreted according to the laws
of the State of Michigan that are applied to leases made and to be performed in that state.



                                              - 16 -
        19.08 Memorandum of Lease. Lessor and Lessee agree that neither shall be permitted
to record this lease or a memorandum of this lease with the applicable register of deeds without
the prior written consent of the other, which may be withheld in such party's sole discretion.

        19.09 Subordination; Attornment; Estoppel Certificate. This Lease shall be subject and
subordinate to the interests of the holders of any notes secured by mortgages on the Property,
now or in the future, and to all ground or underlying leases and to all renewals, modifications,
consolidations, replacements, and extensions thereof, and while the provisions of this Section are
self-executing, Lessee shall execute such customary documents as may be reasonably necessary
to affirm or give notice of such subordination. Such subordination shall be contingent upon
Lessor or any mortgagee providing Lessee with a customary non-disturbance agreement.

                Upon request of the holder of any note secured by a mortgage on the Property,
Lessee shall agree in writing that no action taken by such holder to enforce said mortgage shall
terminate this Lease or invalidate or constitute a breach of any of its provisions, and Lessee shall
attorn to such mortgagee, or to any purchaser of the Property at any foreclosure sale, or sale in
lieu of foreclosure, for the balance of the Term on all the terms and conditions herein contained.
While the provisions of this Section are self-executing, all persons affected thereby shall execute
such documents necessary to affirm or give notice of such attornment.

               At the request of Lessor, Lessee shall within ten (10) days deliver to Lessor, or
anyone designated by Lessor, a certificate stating and certifying as of its date (a) the date to
which Rent and other charges under this Lease have been paid, (b) whether or not there are then
existing any setoffs or defenses against the enforcement of any of the agreements, terms,
covenants, or conditions hereof on the part of Lessee to be performed or complied with (and, if
so, specifying the same), and (c) if such be true, that this Lease is unmodified and in full force
and effect and Lessor is not in default under any provision of this Lease. Upon the same terms
and conditions as provided in this Section, Lessor shall provide an estoppel certificate to Lessee
within ten (10) days of Lessee's request.

        19.10 Parties Bound. The covenants and conditions herein contained shall, subject to
the provisions of this Lease as to assignment, transfer and subletting, apply to and bind the heirs,
successors, executors, administrators and assigns of all the parties hereto, and all of the parties
hereto shall be jointly and severally liable hereunder.

       19.11 Expenses of Enforcement. Lessee shall pay all reasonable attorneys' fees and
expenses incurred by Lessor in enforcing any provision of this Lease, as Additional Rent,
together with interest thereon from the date paid at the Default Rate.

        19.12 Litigation. Lessor and Lessee do hereby waive trial by jury in any action,
proceeding or counterclaim brought by either against the other upon any matters whatsoever
arising out of or in any way connected with this Lease, Lessee's use or occupancy of the
Property, or any claim of injury or damage or both. It is further mutually agreed that if Lessor
commences any summary proceeding for nonpayment of any rent, Lessee will not interpose any




                                               - 17 -
counterclaim whatsoever in any such proceeding; provided, however, that the foregoing shall not
constitute a waiver of Lessee's right to bring a separate action for any claim Lessee may have.

       19.13 Covenants and Conditions. All covenants and conditions contained in this Lease
are independent of one another. All of the covenants of Lessee contained herein shall, at the
option of Lessor, be construed as both covenants and conditions.

        19.14 Limitation on Liability. If Lessor is in default of this Lease, and as a consequence
Lessee recovers a money judgment against Lessor, the judgment shall be satisfied only out of the
proceeds of sale received on execution of the judgment and levy against the right, title and
interest of Lessor in the Property, out of rent or other income from the Property receivable by
Lessor, or out of the consideration received by Lessor from the sale or other disposition of all or
any part of Lessor's right, title and interest in the Property.

        19.15 Accord and Satisfaction. No payment by Lessee or receipt by Lessor of a lesser
amount than the Rent herein stipulated shall be deemed to be other than on account of the earliest
stipulated rent, nor shall any endorsement or statement on any check or any letter accompanying
any check or payment as rent be deemed an accord and satisfaction, and Lessor shall accept such
check or payment without prejudice to Lessor's right to recover the balance of such rent or to
pursue any other remedy in this Lease as provided.

       19.16 Counterparts. This Lease may be executed in counterparts each of which shall be
deemed an original and all of which together shall constitute one agreement. Faxed signatures,
or scanned and electronically transmitted signatures on this Lease, shall be deemed to have the
same legal effect as original signatures on this Lease.

       19.17 Brokers. Each party under this Lease represents and warrants that it has dealt
with no broker in connection with this Lease.

        19.18 Survival. All obligations arising prior to the termination of this Lease and all
provisions of this Lease allocating responsibility or liability between the parties, including without
limitation the indemnity provisions contained herein, shall survive the termination of this Lease.
No obligation which survives the term of this Lease shall give Lessee any possessory interest in the
Property nor have the effect of extending the Term of this Lease.

        19.19 Entire Agreement; Amendment. This Lease represents the entire agreement
between the parties. Except as expressly referenced herein, no oral or written, prior or
contemporaneous agreements shall have any force or effect, and the Lease may not be amended,
altered or modified unless done so by means of a written instrument signed by both parties.

       19.20 Option to Purchase. So long as Lessee is not in default, during the Term of this
Lease, Lessee shall have the right to purchase the Property upon the terms and conditions
contained in this Paragraph (the "Option"). The Option shall survive any sale of the Property.
Lessee may not assign the Option without the consent of Lessor, which shall not be unreasonably
withheld, delayed or conditioned.




                                                - 18 -
               (a)     Election. If Lessee elects to exercise the Option, it shall give
       Lessor written notice of such election on or before the expiration of the Term.
       Such notice shall be deemed given when received by Lessor. The purchase price
       for the Property shall be Fifty Thousand Dollars ($50,000) (the "Purchase Price").
       The Purchase Price shall be payable in full at closing with funds immediately
       available. The closing ("Closing") shall take place at the offices of Lessee or such
       other location mutually agreed to by the parties, and at a time and date to be
       selected by Lessee, but in no case later than forty-five (45) days after Lessee
       exercises its option to purchase (the "Closing Date").

               (b)     As Is. Lessee has already undertaken a due diligence investigation
       of the Property, and therefore will the Property in its "AS IS" condition. Lessee
       shall be responsible, at its sole cost and expense, for obtaining such title
       commitments/policies and conducting such other investigations as it determines
       necessary. Lessee acknowledges that Lessor has advised Lessee pursuant to
       MCL 324.20116(1) that Lessor has knowledge or information or is on notice
       through a recorded instrument that the Property is a "facility" within the meaning
       of MCL 324.20101(r). Lessee acknowledges receipt of written description of the
       general nature and extent of the release(s) that qualifies the Property as a "facility"
       attached to this Lease as Exhibit B.

              (c)     Conveyance. At the time of Closing, Lessor shall execute and
       deliver to Lessee a quit claim deed conveying good marketable title to the
       Property subject to such restrictions, easements, interests, and reservations of
       record; taxes and assessments; and any matters that would be disclosed by an
       accurate ALTA/ACSM Land Title Survey and other exceptions caused by or
       through Lessee or its subtenants, concessionaires and licensees.

               (d)     Costs. All costs to close the transaction including without
       limitation, fees of the title company, transfer taxes, and like (except the fees and
       expenses of Lessor's attorneys and accountants), shall be paid for by Lessee.


Lessor and Lessee have executed this Lease as of the date first indicated above.

LESSOR:                                             LESSEE:


CITY OF MUSKEGON                                    COMMUNITY FOUNDATION FOR
                                                    MUSKEGON COUNTY

By _________________________________                 By

   Its ______________________________                     Its




                                                - 19 -
                                          EXHIBIT A

                               Legal Description of the Property




The property address and tax parcel number listed below are provided solely for informational
purposes, without warranty as to accuracy or completeness. If the information listed below is
inconsistent in any way with the legal description listed above, the legal description listed above
shall control.


Tax Parcel Numbers:

61-11-20-312-001

61-11-20-312-002

61-11-20-333-001




                                               - 20 -
       EXHIBIT B

DESCRIPTION OF RELEASES




          - 21 -
   EXHIBIT C

USE RESTRICTIONS




      - 22 -
                   Commission Meeting Date: August 13, 2019




Date:         August 13, 2019
To:           Honorable Mayor and City Commissioners
From:         Planning & Economic Development
RE:           Sale of the Buildable Lot at 1245 5th St


SUMMARY OF REQUEST:

Staff is seeking approval to sell the vacant, buildable lot at 1245 5th St to Bethany Housing
Ministries, Inc. d/b/a Community EnCompass for $1 with the understanding that they will sell
us their vacant buildable lot at 174 Mason Ave for $1. The deal would be contingent upon
the City receiving verification of a clean title commitment and any backup documents.

FINANCIAL IMPACT:

None

BUDGET ACTION REQUIRED:

None

STAFF RECOMMENDATION:

Approval of the sale and for the Mayor and Clerk to sign the resolution and deed.

COMMITTEE RECOMMENDATION:

None




8/13/2019
          1245 5th St (Now Vacant)
                 0.12 acres
          True Cash Value - $4,000




               174 Mason Ave
                 0.19 acres
          True Cash Value - $4,800




8/13/19
                                          Resolution No. _______

                                  MUSKEGON CITY COMMISSION



RESOLUTION APPROVING THE SALE OF A BUILDABLE LOT AT 1245 5th St FOR $1.

WHEREAS, Bethany Housing Ministries, Inc. d/b/a Community EnCompass will be allowed to purchase the
parcel designated as number 24-205-377-0001-00, located at 1245 5th St. for $1; and

WHEREAS, Bethany Housing Ministries, Inc. d/b/a Community EnCompass will sell their parcel designated as
number 24-205-386-0007-00, located at 174 Mason Ave to the City of Muskegon for $1; and

WHEREAS, Bethany Housing Ministries, Inc. d/b/a Community EnCompass shall provide evidence of a clean
title commitment and any backup documents to the City in order to finalize the deal; and

NOW THEREFORE BE IT RESOLVED, that parcel number 24-205-377-0001-00, located at 1245 5th St to be
sold to Bethany Housing Ministries, Inc. d/b/a Community EnCompass for $1 with the conditions listed above.

CITY OF MUSKEGON REVISED PLAT OF 1903 LOT 1 EX SELY 79.5 FT TH'OF & E 1/2 OF LOT 2 EX
SELY 79.5 FT TH'OF BLK 377

Adopted this 13th day of August 2019.

Ayes:

Nays:

Absent
                                                                         By: _________________________
                                                                          Stephen J. Gawron
                                                                           Mayor

                                                                       Attest: ________________________
                                                                          Ann Meisch, MMC
                                                                          City Clerk


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 August 13,
2019.



                                                                          By: ________________________
                                                                          Ann Meisch, MMC
                                                                          City Clerk




8/13/19
                                         QUIT CLAIM DEED
KNOW ALL MEN BY THESE PRESENTS: That the CITY OF MUSKEGON, a Municipal
Corporation, of 933 Terrace Street, Muskegon, Michigan 49440,
QUIT CLAIMS TO: BETHANY HOUSING MINISTRIES, INC., DBA COMMUNITY
ENCOMPASS, a Michigan Non-Profit Corporation, of 1105 Terrace Street, Muskegon, MI
49442,
the following described premises situated in the City of Muskegon, County of Muskegon, State
of Michigan, to wit:
CITY OF MUSKEGON REVISED PLAT OF 1903 LOT 1 EXCEPT SOUTHEASTERLY 79.5
FEET THEREOF & EAST 1/2 OF LOT 2 EXCEPT SOUTHEASTERLY 79.5 FEET
THEREOF BLOCK 377, otherwise known as 1245 5th St. (#24-205-377-0001-00).
for the sum of less than One Dollar ($1)
Subject to any easements or use restrictions of record.

This deed is exempt from real estate transfer tax pursuant to the provisions of MCLA
207.505(h)(i) and MCLA 207.526 Sec. 6(h)(i).
Dated this 13th day of August 2019
Signed in the presence of:                                CITY OF MUSKEGON

______________________________                            By_________________________________
                                                          Stephen Gawron, Its Mayor

______________________________                            and________________________________
                                                          Ann Marie Meisch, MMC, Its Clerk
STATE OF MICHIGAN
COUNTY OF MUSKEGON
        The foregoing instrument was acknowledged before me this 13th day of August 2019, by
STEPHEN GAWRON and ANN MARIE MEISCH, MMC, the Mayor and Clerk, respectively,
of the CITY OF MUSKEGON, a municipal corporation, on behalf of the City.

                                                          ____________________________________
PREPARED BY: Hope Mitchell                                _______________________, Notary Public
City of Muskegon                                          Acting in the County of Muskegon, MI
933 Terrace St Room 202                                   Muskegon County, MI
Muskegon, MI 49440                                        My Comm. Expires: ___________________
Telephone: (231) 724-6702
WHEN RECORDED RETURN TO:                          SEND SUBSEQUENT TAX BILLS TO:
GRANTEE                                           GRANTEE
Date:      August 13, 2019
To:        Honorable Mayor and City Commissioners
From:      Ann Marie Meisch, City Clerk
RE:        Community Relations Committee Establishment of
           Farmers Market Advisory Board




SUMMARY OF REQUEST: To establish the Farmers Market Advisory Board.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To concur with the recommendation of the
Community Relations Committee and establish the Farmers Market Advisory
Board.
Date:        August 13, 2019
To:          Honorable Mayor and City Commissioners
From:        Ann Marie Meisch, City Clerk
RE:          Community Relations Committee Appointment
             Recommendations


SUMMARY OF REQUEST: To accept appointments as follows:

Accept the appointments of:
       Ron Hayward to the Neighborhood Association Representative position on the
      Citizen Police Review Board.

      Karen Evans to the Mayor/City Commission Appointment position on the District
      Library Board.

      Kimberly Williams to the Citizen Representative from Ward 4 position on the Equal
      Opportunity Committee.

      Larry Boersma, Dianne Snow, Jon Visser, and John Zandstra to the Seasonal
      Farmers positions on the Farmers Market Advisory Board.

      Kristin Johnson and Kathi Upman to the Seasonal Crafters/Artisans positions on the
      Farmers Market Advisory Board.

      Woody Van Blargan to the Seasonal Food Vendor position on the Farmers Market
      Advisory Board.

      Melanie Lyonnais and Cindy Larsen to the Citizens At Large positions on the
      Farmers Market Advisory Board.


FINANCIAL IMPACT: None.

BUDGET ACTION REQUIRED: None.

STAFF RECOMMENDATION: To concur with the recommendations of the Community
Relations Committee and approve the appointments.
                                 AGENDA ITEM NO. _______________
                         CITY COMMISSION MEETING __________________________




TO:         Honorable Mayor and City Commissioners

FROM:       Frank Peterson, City Manager

DATE:       August 6, 2019

RE:         Convention Center – Site and Utilities Bid Pack


SUMMARY OF REQUEST:
City staff is requesting acceptance of the letter of recommendation from Clark Construction awarding
Concrete, Electrical Hotel Power, and Earthwork to Cascade Cement Contracting, Newkirk Electric, and
Accurate Excavators, respectively at a total cost of $2,386,258. Approving these three bids will allow
Clark to move toward the anticipated August 22 commencement of work, while finalizing the
remaining bid packages in anticipation of awarding the remainder of the contract at the August 27
City Commission meeting.


FINANCIAL IMPACT:
$2,386,285 to be funded with bond proceeds


BUDGET ACTION REQUIRED:
None at this time.


STAFF RECOMMENDATION:
To authorize the City Manager to accept the recommendation and award the contracts as described.


COMMITTEE RECOMMENDATION:
None.

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