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CITY OF MUSKEGON
CITY COMMISSION MEETING
OCTOBER 8, 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:
□ PUBLIC COMMENT ON AGENDA ITEMS:
□ CONSENT AGENDA:
A. Approval of Minutes City Clerk
B. Resolution Authorizing Issuance of 2019 Capital Improvement Note
Finance
C. MDOT Maintenance Agreement Public Works
D. Traffic Control Orders Public Works
E. McCormick Sand – Change Order #001 Public Works
F. Park Storage Land Exchange Development Services
G. Community Relations Committee Recommendations City Clerk
□ PUBLIC HEARINGS:
□ UNFINISHED BUSINESS:
A. Recreational Marihuana Regulatory Ordinance – 2nd Reading Planning
B. Amendment to the Medical Marihuana Facilities Overlay District to also
allow Recreational Marihuana Facilities – 2nd Reading Planning
□ NEW BUSINESS:
□ ANY OTHER BUSINESS:
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□ PUBLIC COMMENT ON NON-AGENDA ITEMS:
► 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.
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Memorandum
To: Mayor and Commissioners
From: Frank Peterson
Re: City Commission Meeting
Date: October 3, 2019
Here is a quick outline of the items on our agendas:
Work Session:
1. After much discussion internally, with state officials, and with residents (via forums and a
survey), staff is recommending that the Commission consider moving forward with a plan
to reduce the deer population on the City’s west side. DPW staff will be in attendance to
discuss our recommendations moving forward.
2. Economic development staff will be present to present their plan for tax incentives going
forward.
3. We will present our initial idea for social equity related to adult-use marihuana.
4. LeighAnn Mikesell will present the 4th chapter in Suburban Nation.
5. Resolution presented by Commissioner German related to concerns with gun violence.
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. Finance Department is seeking approval of the Resolution to issue 2019 Capital
Improvement Bonds for Midtown Square 2.
c. Public Works is seeking approval of an updated contract with MDOT for
maintenance of State Trunklines.
d. We are seeking approval to move four intersections to 4-way stops, including two
on Houston, as requested by residents.
e. We are seeking a change order to the contract with McCormick Sand.
f. We are seeking approval to complete the land exchange with Catholic Charities as
discussed at last month’s general session.
2. Under Unfinished Business, we are asking the Commission to consider the following:
a. Second reading of the Recreational Marihuana Regulatory Ordinance
b. Second Reading of the Marihuana Overlay District
Let me know if you have any questions/comments/concerns
Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: 10/08/2019 Title: Approval of Minutes
Submitted By: Ann Marie Meisch, MMC Department: City Clerk
Brief Summary: To approve the minutes of the September 24, 2019 Regular Meeting.
Detailed Summary: N/A
Amount Requested: N/A Amount Budgeted: N/A
Fund(s) or Account(s): N/A Fund(s) or Account(s): N/A
Recommended Motion: To approve the minutes.
For City Clerk Use Only:
Commission Action:
CITY OF MUSKEGON
CITY COMMISSION MEETING
SEPTEMBER 24, 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, September 24, 2019,
Pastor Leroy Lockhart, New Birth Ministries, 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, Ken Johnson, Debra Warren, Dan Rinsema-Sybenga, and Willie
German, Jr., City Manager Frank Peterson, City Attorney John Schrier, and City
Clerk Ann Meisch.
PUBLIC COMMENT ON AGENDA ITEMS: Public comments were received.
2019-75 CONSENT AGENDA:
A. Approval of Minutes City Clerk
SUMMARY OF REQUEST: To approve the minutes of the September 9, 2019
Worksession meeting and the September 10, 2019 Regular meeting.
STAFF RECOMMENDATION: Approval of the minutes.
B. Financial Policy Update City Treasurer
SUMMARY OF REQUEST: To update the Poverty Exemption Income Guidelines
used to determine poverty tax exemptions.
In recent years, the State of Michigan has undertaken significant Property
Assessing Reform in an effort to ensure high quality assessments for taxpayers
and local units. One of the many reforms is a mandatory AMAR (Audit of
Minimum Assessing Requirements) to be conducted every five years in each
local unit. The local units in the County of Muskegon are scheduled to receive
their AMAR in 2020.
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As part of our efforts to ensure we are complying with all State reqirements for
the AMAR, we reviewed our Poverty Exemption Policy with our assessor of
record, Donna VanderVries, and determined changes to the policy were
necessary. On page 25 of the attached Financial Policies, in the Poverty
Exemption Income Guidelines, the requirements of items 7) and 8) do not
comply with state regulation and must be removed from the policy. Also, for
item 2), we cannot require the taxpayer to provide the property tax credit
regurns. The State Tax Tribunal has ruled that we cannot go above what the
state statute dictates, and each of these requirements are considered to be
beyond the limits of the statute.
On the advice of Muskegon County Equalization Director Donna VanderVries,
we are requesting that you update item 2) and eliminate items 7) and 8) from
the current Poverty Exemption Income Guidelines in the City’s Financial Policies.
STAFF RECOMMENDATION: To approve the updated Poverty Exemption
Income Guidelines in the City of Muskegon’s Financial Policies as presented.
C. Equipment Replacement DPW/Equipment
SUMMARY OF REQUEST: The Equipment Division is requesting permission to
purchase one Caterpillar Backhoe coming from Michigan CAT, the Mi Deal
State Contract holder. This machine will replace one we are trading in.
Amount requested is $109,290.05 less trade in of $20,00.00 for our machine. Final
price of $89,290.05.
STAFF RECOMMENDATION: Authorize staff to purchase on Caterpillar
backhoe for a final price of $89,290.05.
E. Thermal Imaging Cameras (TIC) Public Safety/Fire Department
SUMMARY OF REQUEST: Seeking approval to purchase two (2) Avon Thermal
Imaging Cameras (TIC) at a cost of $10,060.00 and six (6) Seek units at a cost of
$3,957.50. The total cost of $13,748.80 is below the approved 2019/2020
budgeted amount of $14,096.00. Thermal Imaging Cameras are used to locate
victims and hidden fires during fire-fighting efforts. The two (2) Avon TIC units will
be placed on Engines 23 & 25. The six (6) personal size TIC units are to be worn
by the firefighters.
STAFF RECOMMENDATION: To approve the purchase of eight (8) Thermal
Imaging Cameras for Fire Department use in detection and rescue efforts for a
total cost of $13,748.80.
F. Melching – Change Order #005 Public Work
SUMMARY OF REQUEST: Melching Demolition has provided a proposal to crush
all of the existing concrete and asphalt and leave it on site at the West Shoreline
Correctional Facility. The crushed concrete and asphalt would be used by city
crews performing maintenance work and for city funded public projects with
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excess material to be sold.
Change Order #005 represents an approximately $100,000 increase in the
contract value with Melching. For this price Melcing will crush all of the existing
concrete and asphalt on site. Concrete will be crused into popular gradations
that can be used for city project, or sold to private developments. Asphalt will
be crushed into millings for use on city projects, and/or to be sold for private
developments. Payment for the contract increase will be made from the grant
funds allocated towards this sie. Any proceeds from sale of excess material are
proposed to be deposited into the Local Street Fund to potentially be used to
fund a future project.
STAFF RECOMMENDATION: Authorize staff to sign Change Order #005 to the
demolition contract with Melching Demolition in the amount of $101,250.
G. Water Filtration Plant – CE Contract Public Works
SUMMARY OF REQUEST: Consumers Energy has provided a contract relative to
the water filtration plant that allows them to suspend electrical service to the
water filtration plant under certain peak conditions at which time the water
filtration plant will operate under generator power.
Consumers Energy retains the right to suspend electrical service to the water
filtration plant under certain peak conditions and provided proper notice to the
plant. These occurrences are limited to five (5) occurrences annually each not
to exceed 4 hours. Consumers Energy will compensate the City for enrollment in
this program. Staff has reviewed the contract and performed the necessary
load testing of the plant to ensure compliance with the agreement. The
contract has been reviewed by legal counsel. Staff is recommending the 4-year
option, which includes an annual payment in the amount of $28,000 per year to
the city.
STAFF RECOMMENDATION: Authorize staff to sign the 2020 Emergency with
Generator Commercial and Industrial Demand Response Customer Agreement
with Consumers Energy for a period of 4 years.
J. Community Relations Committee Recommendations Clerk
SUMMARY OF REQUEST: Staff is seeking approval of the recommendations by
the Community Relations Committee to accept the resignations of Scott
Banninga from the CDBG/Citizen’s District Council-Citizen representing Ward 2
and Clyde Whitehouse – Business Improvement District – Assessed property
owner and to accept the appointment of Kathy Dennison to the Business
Improvement District.
STAFF RECOMMENDATION: To concur with the recommendations of the
Community Relations Committee and approve the resignations and
appointment.
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Motion by Commissioner Warren, second by Commissioner German, to accept
the consent agenda, as presented, minus items D, H, and I.
ROLL VOTE: Ayes: Rinsema-Sybenga, Turnquist, Johnson, Gawron, Hood,
Warren, and German
Nays: None
MOTION PASSES
2019-76 ITEMS REMOVED FROM CONSENT AGENDA:
D. Development and Reimbursement Agreement, Midtown/Nelson
Brownfield Economic Development
SUMMARY OF REQUEST: Approval of the Development and Reimbursement
Agreement for the Midtown Square II and Nelson Neighborhood Infill Housing
Brownfield between the city and its Brownfield Redevelopment Authority.
The Brownfield Plan Amendment for Midtown Square II and the Nelson
Neighborhood Infill Housing was approved by the Authority on April 9, 2019. This
agreement outlines how the Authority will reimburse the city for eligible costs in
the construction of 20 housing units in the Nelson Neighborhood through future
tax capture. The city will seek an approximately $3 million commercial loan and
have the residential units built by Dusendang Contractors. The city will receive
reimbursement of 5 percent per annum for the cost of borrowing for an
estimated total amount of $302,406. The Muskegon Brownfield Redevelopment
Authority approved the agreement at its September 10, 2019 meeting.
STAFF RECOMMENDATION: To approve the Midtown Square II and Nelson
Neighborhood Infill Housing Development and Reimbursement Agreement and
authorize the Mayor and City Clerk to sign the same.
Motion by Commissioner German, second by Commissioner Rinsema-Sybenga,
to approve the Midtown Square II and Nelson Neighborhood Infill Housing
Development and Reimbursement Agreement and authorize the mayor and city
clerk to sign the same.
ROLL VOTE: Ayes: Turnquist, Johnson, Gawron, Hood, Warren, German, and
Rinsema-Sybenga
Nays: None
MOTION PASSES
H. Establish Policy and Application for Block Parties Planning
SUMMARY OF REQUEST: Staff is seeking to establish a policy, application, and
fees to allow for block parties which close city streets. The goal is to encourage
neighborhood cohesion while placing reasonable restrictions to ensure safety
and minimize risk for complaints.
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• Application Fee - $50
o Application fee may be refunded if the application is denied by the
city.
o Application fee will not be refunded if event is cancelled by the
applicant.
• Cleaning Fee - $60/hour (if required)
o Will be charged to the applicant after the event if city property is
not returned to its original condition and/or trash is left on city
property.
STAFF RECOMMENDATION: Approve the block party policy, application, and
fees as proposed.
Motion by Commissioner Turnquist, second by Commissioner Rinsema-Sybenga,
to approve the block party policy, application,and fees as proposed.
ROLL VOTE: Ayes: Johnson, Gawron, Hood, Warren, German, Rinsema-Sybenga,
and Turnquist
Nays: None
MOTION PASSES
I. Rezoning of 1713 7th Street Planning
SUMMARY OF REQUEST: Staff initiated request to rezone the property at 1713 7th
Street from I-2, Heavy Industrial to B-4 General Business and MC, Medical Care.
This area is categorized by many different uses. In addition to residential homes,
the Rescue Mission, Norchuck Supply, Keene Lumber, a carpentry shop and
other small businesses are located in the direct vicinity. Staff feels that
downzoning from heavy industrial to general business is appropriate for this
neighborhood.
The Planning Commission unanimously recommended approval at their
September meeting.
STAFF RECOMMENDATION: To approve the rezoning from I-2, Heavy Industrial
to B-4 General Business and MC, Medical Care.
Motion by Commissioner German, second by Commissioner Rinsema-Sybenga,
to approve the rezoning from I-2, Heavy Industrial to B-4 General Business and
MC, Medical Care.
ROLL VOTE: Ayes: Gawron, Hood, Warren, German, Rinsema-Sybenga,
Turnquist, and Johnson
Nays: None
MOTION PASSES
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2019-77 PUBLIC HEARINGS:
A. CAPER 2018 Community & Neighborhood Services
SUMMARY OF REQUEST: Request to conduct a Public Hearing of the 2018
Consolidated Annual Performance Evaluation Report (CAPER) for projects
funded with CDBG and HOME HUD Entitlements to the City of Muskegon,
Community & Neighborhood Services Department.
STAFF RECOMMENDATION: To submit the 2018 CAPER including any public
comments received during the 20 day comment period ending September 27,
2019.
PUBLIC HEARING COMMENCED: No public comments were received.
Motion by Commissioner Rinsema-Sybenga, second by Vice Mayor Hood, to
close the public hearing and submit the 2018 CAPER including any public
comments received during the 20-day comment period ending September 27,
2019.
ROLL VOTE: Ayes: Hood, Warren, German, Rinsema-Sybenga, Turnquist,
Johnson,and Gawron
Nays: None
MOTION PASSES
2019-78 NEW BUSINESS:
A. Royal Glen Partnership City Manager
SUMMARY OF REQUEST: The owners of Royale Glen are requesting a five-year
term extension and a 3 percentage point reduction in the annual PILOT
Payments at Royale Glen Apartments. In exchange, the ownership group is
committing to invest $600,000 in apartment upgrades/improvements and
$156,000 for improvements at Campbell Field.
Campbell Field previously housed the West Little League Program. Over the past
20+ years, local participation in little league baseball has waned significantly. As
a result, Campbell Field has only one field that is properly maintained by
Muskegon Catholic Central, and three fields that are poorly maintained for the
majority of the year. Staff is proposing that the three unmaintained fields be
removed, and the space be reforested with appropriate trees. Additionally, the
currenty playground would be removed and replaced, and a walking trail
would be added, connecting Royale Glen Apartments to the new playground.
Royale Glen is home to many families with children that would benefit from
additional access to the park as well as the upgrades to the rental units. We
envision Campbell Field eventually functioning similarly to Seyferth Park. The park
project would be at least partially financed by a $156,000 contribution from
Royale Glen Apartments. Any cost above that amount would be financed by
the City’s General Fund. The PILOT reduction is expected to cost the city
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approximately $5,500 annually. If this is agreeable to Commissioners, staff will
begin engaging the neighborhood relative to their desires for the park.
STAFF RECOMMENDATION: To authorize staff to negotiate an amendment to
the Royale Glen PILOT Agreement to include an extension to April 1, 2030, a 1%
City Service Fee, 1% PILOT Fee, and a requirement to invest at least $600,000 in
capital maintenance at Royale Glen and at least $156,000 in capital
improvements at Campbell Field Park.
Motion by Commissioner Rinsema-Sybenga, second by Commissioner Johnson,
to authorize staff to negotiate an amendment to the Royale Glen PILOT
Agreement to include an extension to April 1, 2030, a 1% City Service Fee, 1%
PILOT Fee, and a requirement to invest at least $600,000 in capital maintenance
at Royale Glen and at least $156,000 in capital improvements at Campbell Field
Park.
ROLL VOTE: Ayes: Warren, German, Rinsema-Sybenga, Johnson, Gawron, and
Hood
Nays: Turnquist
MOTION PASSES
B. Construction Agreement – Clark City Manager
SUMMARY OF REQUEST: Staff is seeking authorization to enter into the
construction management agreement with Clark Construction for the
construction of the Downtown Convention Center. The Construction costs are
$17,203,211 which is on target with the latest engineer estimate and will keep
the entire project within the current $19.4 Million budget.
The convention center will be funded via a 30-year general obligation bond,
which is expected to be issued in October. The annual payments, currently
estimated at $1,050,000 annually will be paid via the terms of a development
agreement that sets aside hotel room revenues to meet the debt obligations.
Staff is recommending that Clark not be obligated to obtain a performance
bond as part of this project, as all subcontractors have completed background
evaluations and staff is confident in their respective ability to perform.
STAFF RECOMMENDATION: To waive the performance bond requirements for
the Convention Center Project, authorize the Construction Management
Contract with Clark Construction in the amount of $17,203,211, and authorize
the Mayor to sign the contract.
Motion by Commissioner Rinsema-Sybenga, second by Commissioner Warren,
to waive the performance bond requirements for the Convention Center Project,
authorize the Construction Management Contract with Clark Construction in the
amount of $17,203,211, and authorize the Mayor to sign the contract.
ROLL VOTE: Ayes: German, Rinsema-Sybenga, Turnquist, Johnson, Gawron,
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Hood, and Warren
Nays: None
MOTION PASSES
C. DDA On-Premise Liquor License for the LC Walker Arena Planning
SUMMARY OF REQUEST: To approve the Resolution for a Downtown
Development Authority On-Premise Liquor License for the LC Walker Arena. The
Liquor Control Commission allows for additional liquor licenses within Downtown
Development Authority Districts under certain conditions.
This license would cover all alcohol sales within the arena; including Rad Dad’s,
Carlisle’s and concessions.
STAFF RECOMMENDATION: To approve the DDA On-Premise Liquor License
for the L.C. Walker Arena and authorize the Mayor and Clerk to sign the
resolution.
Motion by Commissioner Warren, second by Commissioner Johnson, to approve
the DDA On-Premise Liquor License for the L.C. Walker Arena and authorize the
Mayor and Clerk to sign the resolution.
ROLL VOTE: Ayes: Rinsema-Sybenga, Turnquist, Johnson, Gawron, Hood,
Warren, and German
Nays: None
MOTION PASSES
D. Recreational Marihuana Regulatory Ordinance Planning
SUMMARY OF REQUEST: Staff initiated request to amend the City Code of
Ordinances and adopt a Recreational Marihuana Regulatory Ordinance under
the Michigan Regulation of Taxation of Marihuana Act.
STAFF RECOMMENDATION: To approve the Recreational Marihuana
Regulatory Ordinance as part of the City Code of Ordinances.
Motion by Commissioner Johnson, second by Vice Mayor Hood, to approve the
Recreational Marihuana Regulatory Ordinance as part of the City Code of
Ordinances.
ROLL VOTE: Ayes: Turnquist, Johnson, Gawron, Hood,and Rinsema-Sybenga
Nays: Warren and German
MOTION PASSES
SECOND READING REQUIRED
E. Amendment to the Medical Marihuana Facilities Overlay District to also
allow Recreational Marihuana facilities Planning
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SUMMARY OF REQUEST: Staff initiated request to amend Section 2330 of the
zoning ordinance, the Medical Marihuana Facilities Overlay District, to also allow
for Recreational Marihuana facilities under the Michigan Regulation and
Taxation of Marihuana Act.
Staff is proposing to amend the current Medical Marihuana Facilities Overlay
District to also allow for Recreational Marihuana Facilities. The building and site
requirements are essentially the same for recreational and medicinal facilities
and they would be allowed within the same overlay district, as depicted on the
map. The Planning Commission voted 7-1 in favor of recommending approval of
the ordinance.
STAFF RECOMMENDATION: To approve the amendments to Section 2330 of
the Zoning Ordinance to also allow for Recreational Marihuana Facilities.
Motion by Vice Mayor Hood, second by Commissioner Johnson, to approve the
amendments to Section 2330 of the Zoning Ordinance to also allow for
Recreational Marihuana Facilities.
ROLL VOTE: Ayes: Johnson, Gawron, Hood, and Warren
Nays: German, Rinsema-Sybenga, and Turnquist
MOTION PASSES
SECOND READING REQUIRED
ANY OTHER BUSINESS: Comments received by Commissioners.
PUBLIC COMMENT ON NON-AGENDA ITEMS: Public comments were
received.
ADJOURNMENT: The City Commission meeting adjourned at 9:23 p.m.
Respectfully Submitted,
Ann Marie Meisch, MMC – City Clerk
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Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: October 8, 2019 Title: Resolution Authorizing Issuance of
2019 Capital Improvement Note
Submitted By: Finance Director Department: Finance
Brief Summary: Resolution authorizing a Capital Improvement Note to be issued in the aggregate
principal sum of not to exceed $3 million dollars for the purpose of paying the cost of the Scattered
Housing Project, including the costs incidental to the issuance, sale and delivery of the note
Detailed Summary: The note will be a single instrument note for $3 million dollars with interest from
the date such installment of principal is delivered to the City until paid at a variable rate of interest
equal to the lesser of (i) the maximum annual rate permitted by law and (ii) a rate per annum equal
to the 30 day LIBOR rate plus 1.25% adjusted on the first business of each month, first payable on
December 1, 2019 and the first day of each month thereafter. The registered owner of the note will
be Fifth Third Bank.
Amount Requested: Amount Budgeted:
Fund(s) or Account(s): Fund(s) or Account(s):
Recommended Motion:To approve the resolution authorizing a Capital Improvement Note to be
issued not to exceed $3 million dollars for the purpose of paying the cost of the Scattered Housing
Project.
Check if the following Departments need to approve the item first:
Police Dept.
Fire Dept.
IT Dept.
For City Clerk Use Only:
Commission Action:
RESOLUTION AUTHORIZING ISSUANCE OF
2019 CAPITAL IMPROVEMENT NOTE
(LIMITED TAX GENERAL OBLIGATION)
City of Muskegon
County of Muskegon, State of Michigan
_______________________________________
Minutes of a regular meeting of the City Commission of the City of Muskegon, County of
Muskegon, State of Michigan, held on October 8, 2019, at 5:30 p.m., prevailing Eastern Time.
PRESENT: Members
ABSENT: Members
The following preamble and resolution were offered by Member _____________ and
supported by Member ______________:
WHEREAS, the City of Muskegon, County of Muskegon, State of Michigan (the “City”),
intends to authorize the issuance and sale of its general obligation limited tax note pursuant to Act
34, Public Acts of Michigan, 2001, as amended (“Act 34”), to pay all or part of the cost of acquiring
and constructing residential housing units located within the City for economic development
purposes (the “Project”); and
WHEREAS, the City, published a notice of intent to issue a note in an amount not to exceed
Three Million Dollars ($3,000,000) for the Project (the “Notice”); and
WHEREAS, the Notice was published in accordance with Act 34, which provides that the
capital improvement note may be issued without a vote of the electors of the City unless a proper
petition for an election on the question of the issuance of the note is filed with the City Clerk within
a period of forty-five (45) days from the date of publication and no petition was filed within said
time; and
WHEREAS, the City determines that it is necessary and appropriate at this time to issue
the capital improvement note (the “Note”) pursuant to Act 34 in an amount not to exceed Three
Million Dollars ($3,000,000); and
WHEREAS, the City has received a proposal from Fifth Third Bank (the "Purchaser") to
purchase the Note pursuant to a negotiated sale, which is attached as Exhibit A.
NOW, THEREFORE, BE IT RESOLVED THAT:
1. Authorization of Note; Note Terms, The Note of the City designated 2019
CAPITAL IMPROVEMENT NOTE (LIMITED TAX GENERAL OBLIGATION) (the “Note”)
is authorized to be issued in the aggregate principal sum of not to exceed Three Million Dollars
($3,000,000) for the purpose of paying the costs of the Project, including the costs incidental to
MILLER, CANFIELD, PADDOCK AND STONE, P.L.C.
the issuance, sale and delivery of the Note.
The issue shall consist of a single, fully-registered note in the principal amount of
$3,000,000, and shall be dated as of the date of delivery and payable at maturity, which shall be
no more than 3 years from the closing date on the Notes. The principal of the Note may be prepaid
on such dates and in such amounts as periodically determined by the City Manager or Finance
Director (each, an “Authorized Officer”); provided that, the principal payments shall not exceed
the total of the principal which has been advanced to the City up to a total of $3,000,000; provided
further that, the entire principal balance shall be paid in full at or prior to maturity of the Note.
The Note shall be subject to redemption in whole or in part in the manner and at any time
prior to maturity to be determined by an Authorized Officer, at a price equal to 100% of the
principal amount being redeemed plus accrued interest to the date fixed for redemption.
The Note shall bear interest at a variable rate equal to the lesser of (i) the maximum annual
rate permitted by law and (ii) a rate per annum equal to the 30 day LIBOR rate plus 1.25%, adjusted
on the first business day of each month, first payable on December 1, 2019 and the first day of
each month thereafter, by check or draft mailed by the Transfer Agent (as hereinafter defined) to
the registered owner of record as of the 15th day of the month prior to the payment date for each
interest payment. The principal amount of the Note is expected to be drawn down by the City
periodically, and interest on the principal amount shall accrue from the date such principal amount
is drawn down by the City.
The record date of determination of registered owner for purposes of payment of interest
as provided in this paragraph may be changed by the City to conform to market practice in the
future. The principal of the Note shall be payable at the office of the Treasurer of the City, or a
bank or trust company as a registrar and transfer agent for the Note to be selected by an Authorized
Officer (the “Transfer Agent”).
2. Execution of Note; Book-Entry-Only Form. The Note of this issue shall be
executed in the name of the City with the manual or facsimile signatures of the Mayor and City
Clerk and shall have the seal of the City, or a facsimile thereof, printed or impressed on the Note.
No Note executed with facsimile signatures shall be valid until authenticated by an authorized
officer or representative of the Transfer Agent.
3. Transfer of Note. The Transfer Agent shall keep the books of registration for this
issue on behalf of the City. The Note may be transferred upon such registration books by the
registered owner of record, in person or by the registered owner’s duly authorized attorney, upon
surrender of the Note for cancellation, accompanied by delivery of a duly executed written
instrument of transfer in a form approved by the Transfer Agent. Whenever the Note shall be
surrendered for transfer, the City shall execute and the Transfer Agent shall authenticate and
deliver a new Note, for like aggregate principal amount. The Transfer Agent shall require the
payment by the noteholder requesting the transfer of any tax or other governmental charge required
to be paid with respect to the transfer.
4. Security for the Note; Limited Tax Pledge; Defeasance of Note. The City hereby
pledges its limited tax full faith and credit for the prompt payment of the principal and interest on
MILLER, CANFIELD, PADDOCK AND STONE, P.L.C.
2
the Note. The City shall, each year budget the amount of the debt service coming due in the next
fiscal year on the principal of and interest on the Note and shall advance as a first budget obligation
from its general funds available therefor, or, if necessary levy taxes upon all taxable property in
the City subject to applicable constitutional, statutory and charter tax rate limitations, such sums
as may be necessary to pay such debt service in said fiscal year.
The City Treasurer is authorized and directed to open a separate fund to be known as the
2019 CAPITAL IMPROVEMENT NOTE DEBT RETIREMENT FUND (the "Debt Retirement
Fund"), the moneys to be deposited into the Debt Retirement Fund to be specifically earmarked
and used solely for the purpose of paying principal of and interest on the Note as they mature. Into
said fund there shall be placed the accrued interest, if any, received at the time of delivery of the
Note.
In the event cash or direct obligations of the United States or obligations the principal of
and interest on which are guaranteed by the United States, or a combination thereof, the principal
of and interest on which, without reinvestment, come due at times and in amounts sufficient to pay
at maturity or irrevocable call for earlier optional redemption, the principal of, premium, if any,
and interest on the Note, shall be deposited in trust, this resolution shall be defeased and the owners
of the Note shall have no further rights under this resolution except to receive payment of the
principal of, premium, if any, and interest on the Note from the cash or securities deposited in trust
and the interest and gains thereon and to transfer and exchange Note as provided herein.
5. Construction Fund; Proceeds of Note Sale. The City Treasurer is authorized and
directed to open a separate account to be known as the 2019 CAPITAL IMPROVEMENT NOTE
CONSTRUCTION FUND (the “Construction Fund”). The Treasurer shall deposit the proceeds of
each draw from the Note less accrued interest, if any, which shall be deposited into the Debt
Retirement Fund. The moneys in the Construction Fund shall be used solely to pay the costs of
the Project and the costs of issuance of the Note.
6. Note Form. The Note shall be in substantially the following form with such
changes as may be required to meet the requirements of the Purchaser with the approval of the
City’s Bond Counsel:
MILLER, CANFIELD, PADDOCK AND STONE, P.L.C.
3
UNITED STATES OF AMERICA
STATE OF MICHIGAN
COUNTY OF MUSKEGON
CITY OF MUSKEGON
2019 CAPITAL IMPROVEMENT NOTE
(LIMITED TAX GENERAL OBLIGATION)
Maturity Date Date of Original Issue
________ 1, 2022 __________1, 2019
Registered Owner: Fifth Third Bank
The City of Muskegon, County of Muskegon, State of Michigan (the “City”), for value received, hereby
promises to pay to the Registered Owner specified above, or registered assigns,
Three Million Dollars ($3,000,000)
or such portion thereof as shall have been advanced to the City, on the Maturity Date shown above, unless prepaid
prior thereto as hereinafter provided, with interest thereon (computed on the basis of a 30 day month) from the date
such installment of principal is delivered to the City, until paid, at a variable rate of interest equal to the lesser of (i)
the maximum annual rate permitted by law and (ii) a rate per annum equal to the 30 day LIBOR rate plus 1.25%,
adjusted on the first business day of each month, first payable on December 1, 2019 and the first day of each month
thereafter.
Principal of this note is payable at the office of Treasurer of the City, or at the corporate trust office of such
other transfer agent as the City may hereafter designate by notice mailed to the registered owner not less than sixty
(60) days prior to any interest payment date (the “Transfer Agent”). Interest on this note is payable to the registered
owner of record as of the 15th day of the month preceding the interest payment date as shown on the registration books
of the City kept by the Transfer Agent by check or draft mailed by the Transfer Agent to the registered owner of record
at the registered address.
This note is issued as a fully-registered, single instrument note in the principal sum designated above, issued
pursuant to the provisions of Act 34, Public Acts of Michigan, 2001, as amended, and pursuant to a resolution of the
City Commission of the City adopted on October 8, 2019 for the purpose of paying the cost of various capital
improvements in the City.
This note, including the interest thereon, is payable as a first budget obligation from the general funds of the
City, and the City is required, if necessary, to levy ad valorem taxes on all taxable property in the City for the payment
thereof, subject to applicable constitutional, statutory and charter tax rate limitations.
The note shall be subject to redemption in whole or in part at any time prior to maturity to be determined by
the City, at a price equal to 100% of the principal amount being redeemed plus accrued interest to the date fixed for
redemption.
In case less than the full amount of the note is called for redemption, the Transfer Agent, upon presentation
of the note called in part for redemption, shall register, authenticate and deliver to the registered owner of record a
new note in the principal amount of the portion of the original note not called for redemption.
This note is transferable only upon the registration books of the City kept by the Transfer Agent by the
MILLER, CANFIELD, PADDOCK AND STONE, P.L.C.
4
registered owner of record in person, or by the registered owner’s attorney duly authorized in writing, upon the
surrender of this note together with a written instrument of transfer satisfactory to the Transfer Agent duly executed
by the registered owner or the registered owner’s attorney duly authorized in writing, and thereupon a new registered
note or note in the same aggregate principal amount and of the same maturity shall be issued to the transferee in
exchange therefor as provided in the resolution authorizing this note and upon the payment of the charges, if any,
therein prescribed.
It is hereby certified and recited that all acts, conditions and things required by law to be done, precedent to
and in the issuance of this note and the series of note of which this is one, exist and have been done and performed in
regular and due form and time as required by law, and that the total indebtedness of the City, including this note, does
not exceed any constitutional, statutory or charter debt limitation.
IN WITNESS WHEREOF, the City, by its City Commission, has caused this note to be signed in the name
of the City by the manual signatures of its Mayor and City Clerk and a facsimile of its corporate seal to be printed
hereon, all as of the Date of Original Issue.
CITY OF MUSKEGON
County of Muskegon
State of Michigan
By:
Its: Mayor
(SEAL)
By:
Its: City Clerk
MILLER, CANFIELD, PADDOCK AND STONE, P.L.C.
5
7. Useful Life of Project. The estimated period of usefulness of the Project is hereby
declared to be not less than ten (10) years.
8. Negotiated Sale. The City Commission has considered the option of selling the
Note through a competitive sale and a negotiated sale and, pursuant to the requirements of Act 34,
determines that a negotiated sale of the Note will allow more flexibility in obtaining financing and
flexibility in repayment of the Note and will provide the City with greater flexibility in structuring
note maturities and adjusting terms for the Note.
9. Sale to Purchaser; Delegation to Authorized Officer; Sale Order. The sale of the
Note to the Purchaser is hereby approved, and the Authorized Officers are each individually
authorized to take all other necessary actions required to effectuate the sale, issuance and delivery
of the Note to the Purchaser based on the Term Sheet attached as Exhibit A and within the
parameters authorized in this resolution.
10. Adjustment of Note Terms. The Authorized Officers are each individually
authorized to adjust the final note details as set forth herein to the extent necessary or convenient
to complete the sale of the Note and in pursuance of the foregoing are each authorized to exercise
the authority and make the determinations pursuant to Sections 315(1)(d) of Act 34, including but
not limited to determinations regarding interest rates, prices, discounts, maturities, principal
amounts, denominations, date of issuance, interest payment dates, redemption rights, and other
matters within the parameters established by this resolution; provided that the principal amount of
Note issued shall not exceed the principal amount authorized in this resolution, the interest rate
per annum on the Note shall not exceed the maximum rate permitted by law and the final maturity
shall be no later than three years from the date of closing on the Note.
11. Note Counsel. Miller, Canfield, Paddock and Stone, P.L.C. is hereby approved
as note counsel for the Note, notwithstanding periodic representation in unrelated matters of the
Underwriter and other parties or potential parties to the transaction contemplated by this
resolution.
12. Authorization of other Actions. The Authorized Officers are each authorized and
directed to (i) agree to submit such annual audit and other reports to the Purchaser as reasonably
required by the Purchaser at the time of issuance of the Note, (ii) pay the Purchaser for its costs
related to its due diligence activities and the review and negotiation of the legal documentation
associated with the issuance of the Note and (iii) do all other acts and take all other necessary
procedures required to effectuate the sale, issuance and delivery of the Note.
(Balance of this page intentionally left blank)
MILLER, CANFIELD, PADDOCK AND STONE, P.L.C.
6
13. Rescission. All resolutions and parts of resolutions insofar as they conflict with the
provisions of this resolution be and the same hereby are rescinded.
AYES: Members
NAYS: Members
RESOLUTION DECLARED ADOPTED.
____________________________________
City Clerk
I hereby certify that the foregoing is a true and complete copy of a resolution adopted by
the City Commission of the City of Muskegon, County of Muskegon, State of Michigan, at a
regular meeting held on October 8, 2019, and that said meeting was conducted and public notice
of said meeting was given pursuant to and in full compliance with the Open Meetings Act, being
Act 267, Public Acts of Michigan, 1976, and that the minutes of said meeting were kept and will
be or have been made available as required by said Act.
____________________________________
City Clerk
MILLER, CANFIELD, PADDOCK AND STONE, P.L.C.
7
EXHIBIT A
MILLER, CANFIELD, PADDOCK AND STONE, P.L.C.
A-1
34482199.3\063684-00048
MILLER, CANFIELD, PADDOCK AND STONE, P.L.C.
A-2
Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: 10/08/2019 Title: MDOT Maintenance Agreement
Submitted By: Leo Evans Department: Public Works
Brief Summary: MDOT has requested renewal of the maintenance contract by which the City
provides maintenance for MDOT operated streets (M-46 / US-31 BR) within the City of Muskegon.
The contract is largely unchanged from previous iterations and carries a 5-year term.
Detailed Summary: The City will be reimbursed by MDOT for work performed on M-46 and US-31
BR within the City of Muskegon. Previous contracts have been in place for several years without
major concern. The contract has been reviewed by staff and counsel and no objections noted.
Amount Requested: $0 Amount Budgeted: $0
Fund(s) or Account(s): Fund(s) or Account(s):
Recommended Motion:
Authorize staff to sign the State Trunkline Maintenance Contract.
Check if the following Departments need to approve the item first:
Police Dept.
Fire Dept.
IT Dept.
For City Clerk Use Only:
Commission Action:
Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: 10/08/2019 Title: Traffic Control Orders
Submitted By: Doug Sayles Department: Public Works
Brief Summary: Approval of Traffic Control Orders #54, #55, #56 and #57.
Detailed Summary: To approve submitted Traffic Control Orders, #54, #55, #56 and #57 and
authorize staff to remove/install various traffic control devices.
Amount Requested: $0 Amount Budgeted:
Fund(s) or Account(s): Fund(s) or Account(s):
Recommended Motion: To approve removal/installation of various Traffic Control Devices as
outlined in the submitted Traffic Control Orders.
Check if the following Departments need to approve the item first:
Police Dept.
Fire Dept.
IT Dept.
For City Clerk Use Only:
Commission Action:
City of Muskegon
Traffic Control Order
No. 54-(2019)
The following regulatory sign(s) shall be Installed/Removed at/from the location(s) specified
below under location in accordance with the Michigan Manual of Uniform Traffic Control.
Device/Regulatory Sign(s) to be Installed/Removed: Install “Stop” signs on Houston Avenue
at 5th Street. (Intersection becomes a 4-way stop).
Location: Houston Avenue @ 5th Street
Recommendation:
________________________________ Date: ______/______/______
Director of Public Works
________________________________ Date: ______/______/______
Police Chief
________________________________ Date: ______/______/______
City Manager
Commission Approval (required for Permanent TCO only):
______ __________ Date: _____/_____/___ __
Commission Action #
Installation/removal
Date assigned: _____/_____/_____ By: ___________________________
Traffic Supervisor
Date completed: _____/_____/_____ By: ___________________________
Traffic Department Employee
Temporary; does not require Commission Action, good for 90-days from
Installation/Removal Date.
Permanent; requires Commission Action
City of Muskegon
Traffic Control Order
No. 55-(2019)
The following regulatory sign(s) shall be Installed/Removed at/from the location(s) specified
below under location in accordance with the Michigan Manual of Uniform Traffic Control.
Device/Regulatory Sign(s) to be Installed/Removed: Install “Stop” signs on Houston Avenue
at 7th Street. (Intersection becomes a 4-way stop).
Location: Houston Avenue @ 7th Street
Recommendation:
________________________________ Date: ______/______/______
Director of Public Works
________________________________ Date: ______/______/______
Police Chief
________________________________ Date: ______/______/______
City Manager
Commission Approval (required for Permanent TCO only):
______ __________ Date: _____/_____/___ __
Commission Action #
Installation/removal
Date assigned: _____/_____/_____ By: ___________________________
Traffic Supervisor
Date completed: _____/_____/_____ By: ___________________________
Traffic Department Employee
Temporary; does not require Commission Action, good for 90-days from
Installation/Removal Date.
Permanent; requires Commission Action
City of Muskegon
Traffic Control Order
No. 56-(2019)
The following regulatory sign(s) shall be Installed/Removed at/from the location(s) specified
below under location in accordance with the Michigan Manual of Uniform Traffic Control.
Device/Regulatory Sign(s) to be Installed/Removed: Install “Stop” signs on Webster Avenue
at 1st Street. (Intersection becomes a 4-way stop).
Location: Webster Avenue @ 1st Street
Recommendation:
________________________________ Date: ______/______/______
Director of Public Works
________________________________ Date: ______/______/______
Police Chief
________________________________ Date: ______/______/______
City Manager
Commission Approval (required for Permanent TCO only):
______ __________ Date: _____/_____/___ __
Commission Action #
Installation/removal
Date assigned: _____/_____/_____ By: ___________________________
Traffic Supervisor
Date completed: _____/_____/_____ By: ___________________________
Traffic Department Employee
Temporary; does not require Commission Action, good for 90-days from
Installation/Removal Date.
Permanent; requires Commission Action
City of Muskegon
Traffic Control Order
No. 57-(2019)
The following regulatory sign(s) shall be Installed/Removed at/from the location(s) specified
below under location in accordance with the Michigan Manual of Uniform Traffic Control.
Device/Regulatory Sign(s) to be Installed/Removed: Install “Stop” signs on 4th Street at Clay
Avenue. (Intersection becomes a 4-way stop).
Location: 4th Street @ Clay Avenue
Recommendation:
________________________________ Date: ______/______/______
Director of Public Works
________________________________ Date: ______/______/______
Police Chief
________________________________ Date: ______/______/______
City Manager
Commission Approval (required for Permanent TCO only):
______ __________ Date: _____/_____/___ __
Commission Action #
Installation/removal
Date assigned: _____/_____/_____ By: ___________________________
Traffic Supervisor
Date completed: _____/_____/_____ By: ___________________________
Traffic Department Employee
Temporary; does not require Commission Action, good for 90-days from
Installation/Removal Date.
Permanent; requires Commission Action
Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: 10/8/19 Title: McCormick Sand - Change Order #001
Submitted By: Dave Baker Department: Public Works
Brief Summary:
Add ten (10) water service line replacements to contract (W-91838.2). McCormick Sand will
replace 10 lead service lines at various locations within the City of Muskegon.
Detailed Summary:
Our previously approved Pilot Drinking Water Community Water Supply Grant has remaining funds
that staff would like to use in order to maximize the number of lead service line replacements in the
City. Change Order #001 represents $48,387.10 worth of refundable grant money to replace 10
extra lead service lines at various locations throughout the City of Muskegon. McCormick Sand
was the low bidder on the previously approved contract (February 26, 2019) and has agreed to
hold their pricing for the additional locations.
Amount Requested: $48,387.10 Amount Budgeted: $0 (Funded through grant
revenue from EGLE)
Fund(s) or Account(s): 591-91838-5345 Fund(s) or Account(s):
Recommended Motion:
Authorize staff to sign Change Order #001 to contract (W-91838.2) with McCormick Sand in the
amount of $48,387.10
Check if the following Departments need to approve the item first:
Police Dept.
Fire Dept.
IT Dept.
For City Clerk Use Only:
Commission Action:
CITY OF MUSKEGON
DETAILED CONTRACT CHANGE REQUEST
CONTRACTOR CONTRACT DATE 10/3/2019
McCormick Sand Inc. W-91838.2 (MDEQ Lead Service Line Pilot Grant - Contract #2) CHANGE ORDER
No. 1
ITEM OF WORK UNIT QUANTITY QUANTITY QUANTITY QUANTITY UNIT AMOUNT AMOUNT
DESCRIPTION, REASON, LOCATION OF CHANGE OF MEASURE PROPOSAL AS BUILT INCREASE + DECREASE - COST INCREASE DECREASE
1 Complete an additional ten (10) locations at the original contract price EA 31 10 $4,838.71 $48,387.10 $0.00
2 $0.00 $0.00
3 $0.00 $0.00
4 $0.00 $0.00
CHANGE REQUEST EFFECIVE DATE: TOTALS $48,387.10 $0.00
ORIGINAL CONTRACT PRICE: $150,000.00
NET OF PREVIOUS CHANGE ORDERS: $0.00
NET OF CURRENT CHANGE ORDER: $48,387.10
REVISED CONTRACT PRICE: $198,387.10 32.26%
ENGINEERING DEPARTMENT CONTRACTOR APPROVAL CITY OF MUSKEGON APPROVAL
AUTHORIZED REPRESENTATIVE AND DATE AUTHORIZED REPRESENTATIVE AND DATE
PREPARED BY DATE PRINTED NAME AND TITLE PRINTED NAME AND TITLE
O:\CLERK\Common\Word\Agenda Items for Next Meeting\2019\100819\06b_91838.2 - Change Order #001 (2019-10-01).xlsx 10/3/2019 1:00 PM
Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: October 8, 2019 Title: Park Storage Land Exchange
Submitted By: LeighAnn Mikesell Department: Development Services
Brief Summary: Staff is requesting authorization to enter into an agreement with Catholic Charities
West Michigan to exchange a portion of city owned property at 1713 Seventh Street for property
owned by the diocese at 1095 Third Street.
Detailed Summary: Catholic Charities West Michigan plans to construct a new building at the
southeast corner of Park and W. Dale, near the Muskegon Rescue Mission and the population this
organization serves. In exchange, the city will receive the property and structure located at the
northwest corner of Third and Houston, in our developing Midtown area.
Amount Requested: None Amount Budgeted: N/A
Fund(s) or Account(s): N/A Fund(s) or Account(s): N/A
Recommended Motion:
Approve the land exchange agreement with Catholic Charities West Michigan and authorize the
mayor and clerk to sign.
Check if the following Departments need to approve the item first:
Police Dept.
Fire Dept.
IT Dept.
For City Clerk Use Only:
Commission Action:
REAL ESTATE EXCHANGE AGREEMENT
This Real Estate Exchange Agreement ("Agreement"), is entered into effective as of
________________ ("Effective Date"), by and between DAVID J. WALKOWIAK, BISHOP OF
THE ROMAN CATHOLIC DIOCESE OF GRAND RAPIDS, MICHIGAN, IN TRUST FOR
CATHOLIC CHARITIES WEST MICHIGAN, a Michigan nonprofit corporation (a/k/a Catholic
Social Services of Muskegon), of 360 Division Avenue South, Grand Rapids, Michigan 49503
("CCWM"), and the CITY OF MUSKEGON, a Michigan municipal corporation, of 933 Terrace
Street, Muskegon, Michigan 49442 ("City").
RECITALS
A. City owns certain real property located in the City of Muskegon more particularly
described on Exhibit A attached to this Agreement, together with all the improvements, fixtures,
easements, division rights, bonus division rights, re-division rights, hereditaments, and
appurtenances associated with that real estate (“Property A”).
B. CCWM owns certain real property located in the City of Muskegon more
particularly described on Exhibit B attached to this Agreement, together with all the
improvements, fixtures, easements, division rights, bonus division rights, re-division rights,
hereditaments, and appurtenances associated with that real estate (“Property B”).
C. The parties desire to exchange Property A and Property B subject to the following
conditions, representations, and warranties below.
AGREEMENT
For good and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, CCWM and City agree as follows:
1. Property Exchange. Subject to the terms and conditions of this Agreement, City
agrees to convey, and CCWM agrees to accept from City, Property A. In exchange, subject to the
terms and conditions of this Agreement, CCWM agrees to convey to City, and City agrees to
accept from CCWM, Property B.
2. Title.
a. Property A Title. Within fifteen (15) days of the Effective Date, CCWM
will cause a title commitment covering the Property A (the “Property A Title Commitment”) to
be prepared and delivered to CCWM by Transnation Title Company- Lakeshore Division, of 570
Seminole Road, Suite 102, Muskegon, Michigan (“Title Insurer”). CCWM will have ten (10)
business days after receipt of the Property A Title Commitment to notify City in writing of
CCWM’s disapproval of any Schedule B exceptions shown on the Property A Title Commitment
(“Property A Disapproved Exceptions”). If, on or before Closing, the Title Insurer notifies
CCWM or City of any Schedule B exception in addition to the Schedule B exceptions shown in
the Property A Title Commitment (“Property A Additional Exceptions”), the ten (10) business
day period with respect to Additional Exceptions will run from the date CCWM is given written
notice of such Property A Additional Exceptions. City will have thirty (30) days from the date of
receipt of any notice of disapproval to cause the Property A Disapproved Exceptions to be removed
from the Property A Title Commitment or cause the Title Insurer to commit to insure against loss
or damage that may be occasioned by the Property A Disapproved Exceptions, during which time
the Closing will be delayed as necessary. If City is unwilling or unable to modify, remove or
obtain a commitment for title insurance over Property A Disapproved Exceptions within such
period, CCWM will notify City within five (5) days from the expiration of such 30-day period
whether CCWM will either: (i) proceed to Closing and take title to Property A subject to the
Property A Disapproved Exceptions, in which case the Property A Disapproved Exceptions will
be deemed to have been waived by CCWM, or (ii) terminate this Agreement. The Closing Date
will be delayed as necessary to permit the completion of all time periods provided for under this
paragraph. Upon conveyance of title to CCWM on the Closing Date, CCWM may purchase a
policy of title insurance (without standard printed exceptions) to be issued pursuant to the Property
A Title Commitment, insuring CCWM’s fee simple absolute title in Property A in the amount of
twice of the most recent assessed value of Property A (or, if requested by CCWM, such other
amount reasonable identified by CCWM), which policy of title insurance shall not contain any
exceptions other than those shown on the Property A Title Commitment and not objected to by
CCWM as Property A Disapproved Exceptions.
b. Property B Title. Within fifteen (15) days of the effective date, CCWM will
cause a title commitment covering the Property B (the “Property B Title Commitment”) to be
prepared and delivered to City by Title Insurer. City will have ten (10) business days after receipt
of the Property B Title Commitment to notify CCWM in writing of City’s disapproval of any
Schedule B exceptions shown on the Property B Title Commitment (“Property B Disapproved
Exceptions”). If, on or before Closing, the Title Insurer notifies CCWM or City of any Schedule
B exception in addition to the Schedule B exceptions shown in the Property B Title Commitment
(“Property B Additional Exceptions”), the ten (10) business day period with respect to Property
B Additional Exceptions will run from the date City is given written notice of such Property B
Additional Exceptions. CCWM will have thirty (30) days from the date of receipt of any notice
of disapproval to cause the Property B Disapproved Exceptions to be removed from the Property
B Title Commitment or cause the Title Insurer to commit to insure against loss or damage that
may be occasioned by the Property B Disapproved Exceptions, during which time the Closing will
be delayed as necessary. If CCWM is unwilling or unable to modify, remove or obtain a
commitment for title insurance over Property B Disapproved Exceptions within such period, City
will notify CCWM within five (5) days from the expiration of such 30-day period whether City
will either: (i) proceed to Closing and take title to Property B subject to the Property B Disapproved
Exceptions, in which case the Property B Disapproved Exceptions will be deemed to have been
waived by City, or (ii) terminate this Agreement. The Closing Date will be delayed as necessary
to permit the completion of all time periods provided for under this paragraph. Upon conveyance
of title to City on the Closing Date, City may purchase a policy of title insurance (without standard
printed exceptions) to be issued pursuant to the Property B Title Commitment, insuring City’s fee
simple title in Property B in the amount of twice of the most recent assessed value of Property B
(or such other amount reasonable identified by City), which policy of title insurance shall not
contain any exceptions other than those shown on the Property B Title Commitment and any
Property B Additional Exceptions.
2
3. Due Diligence.
a. Property A Diligence. Promptly after the Effective Date, City shall provide
to CCWM, or make available for review by CCWM, copies of the following documents to the
extent that they are in City's possession or control (“City’s Documents”): (i) all permits, wetlands,
and fill permits, zoning variances and approvals, and environmental reports with respect to
Property A; (ii) all surveys of Property A; (iii) all leases, licenses, or occupancy agreements with
respect to Property A ("Leases"); (iv) any notices with respect to Property A received from a
governmental agency within the 3-year period preceding the Effective Date; and (v) all
maintenance and other contracts affecting Property A ("Contracts"). At any time prior to Closing,
CCWM may inspect Property A. Without limiting the generality of the foregoing, CCWM and
CCWM's agents and contractors shall have the right, at CCWM’s cost, to conduct an
environmental assessment of Property A in one or more phases, including the procurement and
analysis of samples of soil, groundwater, surface water, indoor air, or any other environmental
medium, and any building component or other material located at Property A; provided, however,
that prior to any Phase II investigation, CCWM shall first provide the scope of work to be conducted
on Property B by its environmental consultants which scope shall be subject to the approval of the
City. If the City fails or refuses to approve such scope, CCWM may terminate this Agreement by
written notice to City. A copy of all environmental assessments and BEA reports will be provided to
the City. CCWM shall have the right to interview employees and representatives of City who have
or may have knowledge of conditions and events relevant to the operating history or environmental
condition of Property A. Notwithstanding the foregoing, on and after the date of this Agreement,
CCWM and its agents, employees and contractors shall have the right to enter Property A to
perform any and all inspections, including, without limitation, site surveys, utility identification,
geotechnical testing and soil borings. CCWM acknowledges that Property A may require repairs
or maintenance and CCWM agrees to accept Property B in its present "AS IS" condition, with no
warranties concerning its habitability, quality, condition, fitness for a particular purpose, or
permitted use, except as specifically provided in this Agreement. CCWM shall conduct its
inspections of Property A within ninety (90) days after the date of this Agreement.
b. Property B Diligence. At reasonable times upon reasonable advance notice
to CCWM and prior to closing, City may inspect Property B. Without limiting the generality of the
foregoing, City and City’s agents and contractors shall have the right, at City’s cost, to conduct an
environmental assessment of Property B in one or more phases, including the procurement and
analysis of samples of soil, groundwater, surface water, indoor air, or any other environmental
medium, and any building component or other material located at Property B. City shall have the
right to interview employees and representatives of CCWM who have or may have knowledge of
conditions and events relevant to the operating history or environmental condition of Property B.
City acknowledges that Property B may require repairs or maintenance and City agrees to accept
Property B in its present "AS IS" condition, with no warranties concerning its habitability, quality,
condition, fitness for a particular purpose, or permitted use, except as specifically provided in this
Agreement. City shall conduct its inspections of Property B within ninety (90) days after the date
of this Agreement.
4. City’s Representations and Warranties. City represents and warrants to CCWM,
which representations and warranties shall be true to the Closing Date, as follows:
3
a. There are no claims, litigation, proceedings, inquiries, investigations, or
disputes pending or, to the best of City’s knowledge, threatened against or relating to Property A;
b. City, through the person(s) executing this Agreement, has full power and
authority to enter into this Agreement, and to assume and perform all of City’s obligations under
this Agreement;
c. There are no agreements, contracts, or leases, written or oral, which affect
Property A in any manner other than this Agreement and any agreements disclosed by the Property
A Title Commitment;
d. There is no pending or, to the best of City’s knowledge, proposed special
assessment affecting or which may affect the whole or any part of Property A;
e. All necessary action to approve, execute, deliver, and perform this
Agreement has been taken by City, and this Agreement is the valid and binding obligation of City,
enforceable against City in accordance with its terms.
5. CCWM’s Representations and Warranties. CCWM represents and warrants to
City, which representations and warranties shall be true to the Closing Date, as follows:
a. There are no claims, litigation, proceedings, inquiries, investigations, or
disputes pending or, to the best of CCWM’s knowledge, threatened against or relating to Property
B;
b. CCWM, through the person(s) executing this Agreement, has full power
and authority to enter into this Agreement, and to assume and perform all of CCWM’s obligations
under this Agreement;
c. There are no agreements, contracts, or leases, written or oral, which affect
Property B in any manner other than this Agreement and any agreements disclosed by the Property
B Title Commitment;
d. There is no pending or, to the best of CCWM’s knowledge, proposed special
assessment affecting or which may affect the whole or any part of Property B;
e. All necessary action to approve, execute, deliver, and perform this
Agreement has been taken by CCWM, and this Agreement is the valid and binding obligation of
CCWM, enforceable against CCWM in accordance with its terms.
6. CCWM Contingencies. The obligation of CCWM to close the acquisition of
Property A and the transfer of Property B shall be contingent upon:
a. CCWM’s satisfaction with the results of all inspections of Property A;
4
b. All representations and warranties of City set forth in this Agreement being
true as of the Closing Date; and
c. City having timely performed and complied in all respects with all
covenants, obligations, and agreements to be performed or complied with by City under this
Agreement.
d. City obtaining all required approvals and establishing Property A as a
separate legal parcel (separate from any adjacent property owned by City) with a unique tax parcel
number and rezoning Property A as required under Paragraph 9 (Property A Parcel Split/Zoning)
below.
e. CCWM obtaining all required governmental approvals for CCWM’s
anticipated development and use of Property A.
If one or more of the contingencies is not satisfied, and CCWM is not willing to waive the
contingency(ies), then CCWM may terminate this Agreement by a written notice to City, in which
case neither City nor CCWM shall have any further liability to the other under this Agreement.
7. Condemnation. If before Closing, anybody having the power of condemnation
initiates proceedings to acquire by condemnation any portion of or interest in Property A or
Property B, either CCWM or City may either (i) terminate this Agreement, or (ii) proceed to
Closing and the transferring party will assign to acquiring party at the Closing any and all rights
the transferring party may have in such proceeding and any condemnation award relating thereto.
8. Closing.
a. Closing Date. The Closing shall take place at the offices of the Title Insurer
on a date designated by CCWM which date shall be on or before the date that is one hundred and
eighty (180) days after the date of this Agreement (the “Closing Date”).
b. Property A. At the time of Closing, City shall execute and deliver to CCWM
a covenant deed conveying good, clear and marketable title to Property A subject only to those items
shown on the Property A Title Commitment and not objected to by CCWM as Property A
Disapproved Exceptions. The parties shall prorate, apportion and adjust as of the Closing Date, the
property taxes and installments of assessments on a calendar year basis using the dates such taxes
and/or installments of assessments are first billed. Any taxes and/or installments of assessments
not yet billed for the calendar year in which the Closing occurs shall be estimated by using the
prior calendar’s year’s billed taxes and/or installment of assessments. Transaction costs associated
with the sale/purchase of Property A pursuant to this Agreement will be paid on or prior to Closing
on the following basis: CCWM will be solely responsible for the cost of the title insurance policy.
City will be solely responsible for the cost of any special title insurance endorsements City may
obtain over any Property A Disapproved Exceptions, the cost of recording any title clearance
documents or collateral discharges, all transfer taxes on the covenant deed, one half (1/2) of all
closing fees or escrow fees charged by the Title Insurer, and the fees and expenses of City’s
attorneys and its designated representatives. CCWM will be solely responsible all recording fees
5
for the covenant deed, one half (1/2) of the costs of all closing fees or escrow fees charged by the
Title Insurer, the cost of CCWM’s inspections, investigations and tests by CCWM (excluding the
cost of CCWM’s environmental assessments and BEA for Property A which are paid by City)),
and the fees and expenses of CCWM’s attorneys. At Closing, CCWM and City shall deliver to the
other such other documents or instruments as shall reasonably be required by such party's counsel or
by the Title Insurer to consummate the transaction contemplated herein or to issue the policy of title
insurance which, in the other party's counsel's opinion, does not increase such parties' liability or
decrease such parties' rights or which are customarily provided in the sale and purchase of real estate
similar to the Premises.
c. Property B. At the time of Closing, CCWM shall execute and deliver to
CCWM a covenant deed conveying good, clear and marketable title to Property B subject only to
those items shown on the Property B Title Commitment. The parties shall prorate, apportion and
adjust as of the Closing Date, the property taxes and installments of assessments on a calendar year
basis using the dates such taxes and/or installments of assessments are first billed. Any taxes
and/or installments of assessments not yet billed for the calendar year in which the Closing occurs
shall be estimated by using the prior calendar’s year’s billed taxes and/or installment of
assessments. Transaction costs associated with the sale/purchase of Property B pursuant to this
Agreement will be paid on or prior to Closing on the following basis. City will be solely
responsible for the cost of the title insurance policy, any special title insurance endorsements City
may obtain over any Property B Disapproved Exceptions, the cost of recording any title clearance
documents or collateral discharges, all transfer taxes on the covenant deed, all recording fees for
the covenant deed, all closing fees or escrow fees charged by the Title Insurer, the cost of the City’s
environmental assessments, inspections, investigations and tests by City, and the fees and expenses
of City’s attorneys, accountants, engineers, and consultants. At Closing, CCWM and City shall
deliver to the other such other documents or instruments as shall reasonably be required by such
party's counsel or by the Title Insurer to consummate the transaction contemplated herein or to issue
a policy of title insurance which, in the other party's counsel's opinion, does not increase such parties'
liability or decrease such parties' rights or which are customarily provided in the sale and purchase of
real estate similar to the Premises.
9. Property A Parcel Split/Zoning. Within thirty (30) days after the date of this
Agreement, the City shall, at City’s sole expense: (i) obtain all required governmental approvals
to establish Property A as a separate legal parcel (separate from any adjacent property owned by
City) with a unique tax parcel number (City shall promptly provide to CCWM all applications,
surveys and related information and documentation obtained by City to obtain such separation);
and (ii) rezone Property A in a manner acceptable to CCWM and in such a manner so that
CCWM’s anticipated development and use of Property A is permitted by right without any
required variance or special land use permit under local zoning.
10. Leaseback of Property B. At the Closing, CCWM and City shall enter into a lease
agreement pursuant to which City shall lease Property B exclusively to CCWM for an initial term
that shall commence on the date of the Closing and shall continue until the earlier of: two years
after the date of the Closing; or (ii) sixty (60) days after the date that CCWM obtains a certificate
of occupancy for its new facility to be constructed on Property A. In the event that CCWM has
not obtained a certificate of occupancy for its new facility to be constructed on Property A more
6
than sixty (60) days’ prior to the date that is two years after the date of the Closing, CCWA shall
have the right to extend the Lease for three (3) additional periods of ninety (90) days. The lease
shall be a gross lease with rent equal to One Dollar ($1.00) (during the initial term) and shall
otherwise be upon terms agreeable to CCWM. In the event that the lease is extended beyond the
initial term, the rent for the first ninety (90) day extension period shall be adjusted to fair market
(triple net) rent for Property B as reasonably determined by City and CCWM. The rent for each
additional ninety (90) day extension period shall increase by 10% of the previous extension period.
The lease shall be prepared by counsel for CCWM and shall be subject to review and comment by
City.
11. Miscellaneous.
a. Notices. Any and all notices or other communications or deliveries required or
permitted to be given or made pursuant to any of the provisions of this Agreement shall be deemed
to have been duly given or made for all purposes if (i) sent by first class mail, postage prepaid, (ii)
sent by recognized overnight courier, postage prepaid, or (iii) hand delivered, as follows:
If to the City:
City of Muskegon
933 Terrace Street
Muskegon, Michigan 49442
Attention: Frank Peterson, City Manager
With a copy to:
Benjamin P. Reider
Parmenter Law
601 Terrace Street, Muskegon, Michigan 49443
If to CCWM:
David J. Walkowiak, Bishop of the Roman Catholic Diocese of Grand Rapids,
Michigan, in trust for Catholic Charities West Michigan
360 Division Avenue South
Grand Rapids, Michigan 49503
Attention: Mike Lown, Chancellor
With a copy to:
James Rabaut
Warner Norcross + Judd LLP
150 Ottawa N.W., Grand Rapids, Michigan 49503
Or at such other address as any party may specify by written notice given to the other party in
accordance with this paragraph. The date of giving of any such notice shall be the date three (3)
days following the posting of the mail, the date following deposit with the overnight courier
service, or the date of hand delivery.
b. Default. Time is of the essence of this Agreement, except that CCWM may
waive this provision for the purpose of meeting conditions and contingencies under this
Agreement. If CCWM defaults in CCWM’s obligations under this Agreement so that the Closing
7
does not occur as scheduled, then City may terminate this Agreement by notice to CCWM, in
which case neither City nor CCWM shall have any further liability to the other under this
Agreement. Alternatively, City may pursue any other right or remedy available at law or in equity,
including, without limitation, injunctive relief and specific performance of this Agreement. If City
defaults in City’s obligations under this Agreement so that the Closing does not occur as scheduled,
then CCWM may terminate this Agreement by notice to City, in which case neither City nor
CCWM shall have any further liability to the other under this Agreement. Alternatively, CCWM
may pursue any other right or remedy available at law or in equity, including, without limitation,
injunctive relief and specific performance of this Agreement.
c. CCWM/City. Nothing contained herein or in any other instrument or
agreement between CCWM and City shall be deemed or construed by the parties hereto or by any
third party as creating the relationship of principal and agent or of partnership or of joint venture
between CCWM and City or of any relationship other than as specifically provide herein.
d. Costs, Expenses and Attorneys' Fees. The prevailing party shall be entitled
to recover from the other party all reasonable costs, expenses and reasonable attorney fees that
may be incurred or paid by the prevailing party in enforcing the covenants and agreements in this
Agreement.
e. Successors: Assigns. This Agreement and each and all of the terms,
covenants and conditions hereof shall be binding upon and inure to the benefit of CCWM and City,
and their respective successors and assigns. No third party, other than such permitted successors
and assigns, shall be entitled to enforce any term, covenant or condition of this Agreement or have
any rights hereunder.
f. Provisions Severable. If any term, covenant or condition of this Agreement
or the application thereof to any person or circumstance shall, to any extent, be invalid or
unenforceable under applicable law, then the remainder hereof and the application of such term,
covenant or condition to persons or circumstances other than those as to which it is invalid or
unenforceable shall not be affected thereby.
g. Amendment. Neither this Agreement nor any of the terms, covenants or
conditions hereof may be modified or amended, except by an agreement in writing, duly executed
and delivered by the party against whom enforcement of such modification or amendment is
sought.
h. Headings. The headings of the paragraphs and subparagraphs of this
Agreement are for convenience only and shall in no way affect the construction or effect of any of
the terms, covenants or conditions hereof.
i. Brokers. City and CCWM each agrees and represents to the other that no
broker is involved in the transactions contemplated by this Agreement who is entitled to a
commission. If a broker makes a claim for remuneration in connection with the transactions
contemplated by this Agreement, City and CCWM each shall indemnify and hold harmless the
other from any amount that the other may be required to pay to a broker that the other did not
8
retain, including, without limitation, reasonable attorney fees expended to defend against such
claim.
j. Applicable Law. This Agreement and each and all of the terms, covenants
and conditions hereof shall be interpreted in accordance with and governed in all respects by the
internal laws of the state of Michigan.
k. Counterparts. This Agreement may be signed in one or more counterparts,
and by different parties to this Agreement on separate counterparts, each of which shall be deemed
an original, but all of which together shall constitute one and the same document. Faxed
signatures, or scanned and electronically transmitted signatures, on this Agreement or any notice
delivered pursuant to this Agreement, shall be deemed to have the same legal effect as original
signatures on this Agreement.
l. Short Form. At the request of CCWM, City and CCWM will execute and
record a Short Form of this Agreement evidencing the Real Estate Exchange on a form reasonably
determined by CCWM.
m. Entire Agreement. This Agreement and the exhibits to this Agreement
contain all of the representations and statements by City and CCWM to one another and express
the entire understanding between City and CCWM with respect to the matters described herein.
All prior and contemporaneous communications concerning such matters are merged in and
replaced by this Agreement.
[The remainder of this page is intentionally left blank]
9
IN WITNESS WHEREOF, CCWM and City have caused this Agreement to be
duly executed and delivered as of the Effective Date.
CCWM:
___________________________________________
DAVID J. WALKOWIAK, BISHOP OF THE ROMAN
CATHOLIC DIOCESE OF GRAND RAPIDS, MICHIGAN, IN
TRUST FOR CATHOLIC CHARITIES WEST MICHIGAN
10
CITY:
CITY OF MUSKEGON, a Michigan municipal corporation
By: __________________________________________
Stephen Gawron
Its: Mayor
And By: ______________________________________
Ann Meisch
Its: City Clerk
18413905
11
EXHIBIT A
Property A
CITY OF MUSKEGON REVISED PLAT OF 1903 COM E LN BLK 450 AT POINT 10
FT S OF NE COR LOT 9 FOR POB TH W ALONG CL OF 20 FT VAC ALLEY 174.35
FT TO POINT IN CL 9 FT E OF E LN LOT 6 SD BLK 450 & 10 FT S OF NE COR
LOT 6 SD BLK 450 (SD VAC ALLEY REFERRED TO: RNG E/W FROM SEVENTH
ST TO E LN LOT 6 BLK 450) TH N ALNG CL OF VAC ALLEY RNG N/S FROM
DALE AVE THRU BLK 450 259.21 FT TO S LN DALE AVE TH E 174.45 FT TO E
LN BLK 450 TH S ALNG E LN SD BLK 258.95 FT TO POB -BEING ALL LOTS 10-
14 BLK 450 INCL E 1/2 VAC ALLEY ABUTTING SD LOTS & N 1/2 OF VAC
ALLEY RNG E/W ABUTTING LOT 10 BLK 450 ALSO COM E LN BLK 450 AT
POINT 10 FT S OF NE COR LOT 9 SD BLK FOR POB TH S ALONG E LN SD LOT 9
& LOT 8 SD BLK & ALONG E LN IF EXTENDED S 110.08 FT TH W PAR WITH S
LN SD BLK 450 186.7 FT TH N PAR WITH E LN SD BLK 450 64.3 FT TH W 13.25
FT TH N PAR WITH E LN SD BLK 2.15 FT TH W 148.72 FT TO W LN SD BLK AT
A POINT 303.27 FT TO NW COR SD BLK TH N ALNG W LN SD BLK 450 303.27 FT
TO NW COR SD BLK 450 TH E ALNG N LN 174345 FT TO CL OF VAC ALLEY
RNG N/S FROM DALE AVE THRU SD BLK 450 TH S ALNG CL SD ALLEY 259.21
FT TO POINT ON CL VAC ALLEY SD CL BEING 9 FT E OF E LN LOT 6 SD BLK
450 (SD VAC ALLEY REFERRED TO RNG E/W FROM SEVENTH ST TO E LN LOT
6 SD BLK 450) TH W 9 FT ALNG CL OF VAC ALLEY TO POINT 10 FT S OF NE
COR LOT 6 TH E ALNG CL VAC ALLEY 183.35 FT TO POB- BEING ALL LOTS 1-
6, 8 & PART LOTS 7 & 9 SD BLK 450 & THAT PART VAC ALLEY LYING S OF LN
SITUATED 20 FT S OF N LN LOTS 6 & 9 ALSO BEING PART OF VAC LARCH
AVE & W 1/2 VAC ALLEY E OF LOTS 1-5, PART LOT 6 & S 1/2 OF E/W VAC
ALLEY AS HEREIN ABOVE REFERRED TO SUBJECT TO EASEMENTS
RECORDED 151/472-482
AND
CITY OF MUSKEGON REVISED PLAT OF 1903 PART OF BLKS 450 460 & LARCH
AVE VAC COM AT NE COR BLK 460 TH N 45.95 FT TH W 186.7 FT TH N 64.3 FT
TH W 13.25 FT TH N 2.15 FT TH W 148.72 FT TO W LINE BLK 450 AT A PT 303.27
FT S OF NW COR SAID BLK TH S TO N LINE GT R/W TH SELY ALONG SAID
R/W TO E LINE BLK 460 TH N TO BEG
EXHIBIT B
Property B
PARCEL 1:
LOT 9, EXCEPT THE WESTERLY 15 FEET THEREOF, AND ENTIRE OF LOTS 10,
11, 12 AND 13, BLOCK 350 OF THE REVISED PLAT (OF 1903) OF THE CITY OF
MUSKEGON, MUSKEGON COUNTY, MICHIGAN, EXCEPT A TRIANGULAR
PARCEL OF LAND LOCATED IN THE SOUTHEAST CORNER OF LOT 13,
DESCRIBED AS FOLLOWS: COMMENCE AT THE SOUTHEAST CORNER OF
SAID LOT 13, BLOCK 350 AT THE INTERSECTION OF THIRD STREET AND
HOUSTON AVENUE FOR BEGINNING; THENCE NORTHWESTERLY ALONG
THIRD STREET 3.85 FEET; THENCE SOUTHERLY TO HOUSTON AVENUE TO A
POINT 3.85 FEET SOUTHWESTERLY OF POINT OF BEGINNING; THENCE
NORTHEASTERLY TO POINT OF BEGINNING. TOGETHER WITH THE RIGHT
OF REVERSION AS TO THAT PART OF LOT 13 DEEDED FOR HIGHWAY
PURPOSES TO THE CITY OF MUSKEGON IN THE INSTRUMENT RECORDED
FEBRUARY 21, 1945 IN LIBER 482, PAGE 51. SUBJECT TO A PERPETUAL,
NONEXCLUSIVE, EASEMENT FOR MEANS OF INGRESS AND EGRESS ACROSS
THE WESTERLY 1/2 OF LOT 10 AND LOT 9, EXCEPT THE WESTERLY 15 FEET
THEREOF.
PARCEL 2:
ENTIRE OF LOT 1, BLOCK 350 OF THE REVISED PLAT (OF 1903) OF THE CITY
OF MUSKEGON, AS RECORDED IN LIBER 3 OF PLATS, PAGE 71, MUSKEGON
COUNTY RECORDS.
Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: October 8, 2019 Title: Community Relations Committee
Recommendations
Submitted By: Ann Marie Meisch Department: Clerk
Brief Summary: To accept the resignations and appointments as follows: resignations of Ann
Funk from the Lakeside Business Improvement District and Larry Boersma from the Farmers
Market Advisory Board. Appointments of Samantha Ferguson to the CDBG/Citizen’s District
Council and Kathy Fearnley to the Lakeside Business Improvement District.
Amount Requested: N/A Amount Budgeted: N/A
Fund(s) or Account(s): N/A Fund(s) or Account(s): N/A
Recommended Motion: To concur with the recommendations of the Community Relations
Committee and approve the resignations and appointments.
For City Clerk Use Only:
Commission Action:
Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: 10/08/2019 Title: Recreational Marihuana Regulatory
Ordinance – 2nd Reading
Submitted By: Mike Franzak Department: Planning
Brief Summary: Staff initiated request to amend the City Code of Ordinances and adopt a
Recreational Marihuana Regulatory Ordinance under the Michigan Regulation and Taxation of
Marihuana Act.
Detailed Summary:
Amount Requested: Amount Budgeted:
Fund(s) or Account(s): Fund(s) or Account(s):
Recommended Motion: To approve the Recreational Marihuana Regulatory Ordinance as part of
the City Code of Ordinances.
Check if the following Departments need to approve the item first:
Police Dept.
Fire Dept.
IT Dept.
For City Clerk Use Only:
Commission Action:
Michigan Regulation and Taxation of Marihuana Act (MRTMA)
General Notes
The State will begin processing applications November 1. Municipalities must pass an opt out resolution
if they do not want to permit MRTMA businesses. Those that do want to permit them should pass a
regulatory and zoning ordinance.
MMFLA (Medical) and MRTMA (Recreational) license holders under common ownership may locate at the
same location.
Growing outside is permissible under certain circumstances. Staff does not encourage these at this time
due to the location of the proposed district and possible environmental concerns.
Please see the attached Emergency Rules white paper established July 3, 2019 by the Michigan
Department of Licensing and Regulatory Affairs. The paper established the following license types.
Staff has prepared a proposed zoning ordinance. It is an amendment to the existing Medical Marihuana
Facilities Overlay District and would include regulations for both Medical and Recreational Marihuana
Facilities.
Please see the Social Equity Program attachment.
MRTMA License Types
1. Grower
• Class A – 100 plant limit
• Class B – 500 plant limit
• Class C – 2,000 plant limit
2. Processor
• May purchase marihuana only from a marihuana grower or a marihuana processor and
sale of marihuana-infused products or marihuana only to a marihuana retailer or another
marihuana processor.
3. Secure transporter
• May store and transport marihuana and money associated with the purchase or sale of
marihuana between marihuana establishments for a fee upon request of a person with
legal custody of that marihuana or money.
4. Retailer
• May purchase or transfer of marihuana only from a marihuana grower or marihuana
processor and sale or transfer to only an individual 21 years of age or older. Referred to
as provisioning center under MMFLA.
5. Safety compliance facility
• May take marihuana from, test marihuana for, and return marihuana to only a licensed
marihuana grower, marihuana processor, marihuana retailer, or marihuana
microbusiness.
6. Microbusiness
• May cultivate up to 150 plants
• May process and package marihuana
• May conduct retail sales to customers but not other marihuana establishments
Special License Types – The Emergency Rules established these additional license types.
7. Marihuana Event Organizer – Licensee may apply for Temporary Marihuana Event licenses from
the Michigan Regulatory Agency (MRA).
8. Temporary Marihuana Event – This license allows a Marijuana Event Organizer to run an event,
which has been approved by the local municipality, where the onsite sale or consumption of
marijuana products, or both, are authorized at a specific location for a limited time. Licensed
Retailers and Microbusinesses may participate. The Marijuana Event Organizer is required to hire
security and ensure that all rules and requirements for onsite consumption of marijuana products
are followed. Events may last 1-7 days. May only be held at a venue expressly approved by a
municipality for the purpose of holding a temporary marihuana event
9. Designated Consumption Establishment – Allows the license holder, with local approval, to
operate a commercial space that is licensed by the MRA and authorized to permit adults 21 years
of age and older to consume marijuana and marijuana products on premises. A Designated
Consumption Establishment license does not allow for sales or distribution of marijuana or
marijuana product, unless the license holder also possesses a Retailer or Microbusiness license.
A person that allows consumption of marihuana products on the premises of a nonresidential
location and charges a fee for entry, sells goods or services while individuals are consuming on
the premises, or requires membership for entry shall acquire a designated consumption
establishment or temporary marihuana event license.
10. Excess Marihuana Grower – Allows a licensee
who already holds five adult-use Class C
Grower licenses to expand their allowable
marijuana plant count.
Marihuana Excise Tax Fund
The tax fund for the MMFLA (Medical) has sunset since
recreational marihuana has passed. Municipalities
were set to receive a distribution of the fund created
by the 3% sales tax. Now, only municipalities that have
operating “retailers” and “microbusinesses” will get a
share of the excise tax fund, which is created from a
10% tax.
State License Fee’s – In addition to a one-time $6,000 enrollment fee, the following permit fees exist.
DRAFT
09/17/19
CITY OF MUSKEGON
MUSKEGON COUNTY, MICHIGAN
ORDINANCE NO. ____
THE CITY COMMISSION OF THE CITY OF MUSKEGON HEREBY ORDAINS:
PERMITTING RECREATIONAL MARIHUANA ESTABLISHMENTS
1. Chapter 34, Article IV of the Code of Ordinances of the City of Muskegon,
Michigan, Sections 34-______ through 34-______ are adopted as follows:
Sec. 34-____ Purpose and Intent.
It is the intent of this ordinance to opt-in to the Michigan Regulation and Taxation
of Marihuana Act, being Initiated Law 1 or 2018, (MCS Sections 333.27951 through
333.27967).
Section 34- ____ Definitions.
Words used in this Ordinance shall have the meaning as defined in the Michigan
Regulation and Taxation of Marihuana Act, being Initiated Law 1 or 2018, (MCS
Sections 333.27951 through 333.27967), as may be amended.
Sec. 34-___ Recreational Marihuana Opt-In Provision
Pursuant to Section 6 of the Michigan Regulation and Taxation of Marihuana Act,
being Initiated Law 1 or 2018, (MCS Sections 333.27951 through 333.27967), the
City will authorize Permits for marihuana establishments.
Sec. 34-____ Permit Required for Recreational Marihuana Activity.
(1) Any person or entity that wishes to operate as a marihuana establishment
pursuant to the Michigan Regulation and Taxation of Marihuana Act, being Initiated
Law 1 or 2018, (MCS Sections 333.27951 through 333.27967) in the City shall obtain
a Permit from the City and must obtain a State Operating License prior to opening or
operating.
O:\CLERK\Common\Word\Agenda Items for Next Meeting\2019\100819\08c_12J0795-Rec. Marihuana; Opt- In.DOC 1
(2) The application and inspection fee for the Permit required by this section
shall be set from time to time by the City by resolution.
(3) In addition to an annual reapplication and inspection fee, the City may
assess an annual fee of no more than $5,000.00 to help defray the administrative and
enforcement costs associated with the operation of the marihuana establishments
operating in the City.
(4) No Permit issued under this section shall be transferable.
(5) All Permits issued under this section shall be renewed annually and
subject to annual inspection and renewal fees as set from time to time by the City by
resolution.
(6) The City may limit the number of Permits issued under this section, and
may revise this limit from time to time.
(7) A person or entity that receives a Permit under this section shall display its
Permit and, when issued, its State License in plain view clearly visible to City
officials and State authorized agents.
(8) No person or entity that opened or operated a facility doing business or
purporting to do business as a marihuana establishment prior to the adoption of this
ordinance shall be considered a lawful use.
Sec. 34-___ Recreational Marihuana Location Requirements.
(1) Marihuana establishments are permitted in those zones and subject to
requirements provided for in the City’s Zoning Ordinance.
(2) The marihuana establishments shall meet all applicable written and duly
promulgated standards of the City and, prior to opening, Applicants shall demonstrate
to the City that the location meets the rules and regulations promulgated by the State,
if any.
Sec. 34-___ Application Procedure.
(1) All Applicants for Permits required by this section shall file an application
with the Clerk. This application shall be signed by the Applicant if an individual, or
by all partners if a partnership, by a managing member if a limited liability company,
or by the president of a corporation.
(2) The Applicant may be requested to provide any information required by the
Michigan Regulation and Taxation of Marihuana Act, being Initiated Law 1 or 2018,
(MCS Sections 333.27951 through 333.27967).
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(3) The Permit shall be approved if the Applicant meets all City requirements
unless a due diligence investigation discloses tangible evidence that the conduct of
the Applicant’s business would pose a substantial threat to the public health, safety,
or general welfare.
Sec. 34-___ Permit Revocation and Review.
(1) A Permit granted under this section may be revoked or not renewed for
any of the following reasons:
(a) Any fraud or misrepresentations contained in the Permit
application;
(b) Any knowing violation of this ordinance;
(c) Loss of the Applicant’s State Medical Marihuana Facility License;
(d) Failure of the Applicant to obtain a State Medical Marihuana
Facility License within a reasonable time after obtaining a Permit under
this section;
(e) Conducting business in an unlawful manner or in such a way as to
constitute a menace to the health, safety, or general welfare of the public;
(f) The violation of any of the conditions of issuance or continuation
of a certificate of registration;
(g) Fraud, misrepresentation or any false statement made in the
operation of the business;
(h) Failure to pay personal property taxes, or timely file
documentation or returns required for such taxes;
(i) Failure to pay city income taxes, failure to withhold city income
tax from employees, failure to remit to the City withheld city income
taxes, or timely file documentation or returns required for such taxes;
(j) Failure to pay any outstanding amounts owed the city (such as fees
for inspections or property services, water or sewer bills, municipal civil
infraction fines applicable to the business or its premises, current special
assessment, installments, etc.);
(k) Failure to pay registration fees imposed pursuant to this chapter
and resolution of the city commission;
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(l) Failure or inability of an applicant to meet and satisfy any of the
requirements and provisions of this chapter;
(m) Failure to allow inspection of the business premises at a reasonable
time; or
(n) Failure to allow inspection of hazardous material storage records at
a reasonable time.
2. This Ordinance is to become effective ten (10) days after adoption.
Ayes:
Nays:
First Reading:
Second Reading:
CERTIFICATE
The undersigned, being the duly qualified Clerk of the City of Muskegon,
Muskegon County, Michigan, does hereby certify that the foregoing is a true and
complete copy of an ordinance adopted by the City Commission of the City of
Muskegon, at a regular meeting of the City Commission on the ____ day of
_______________, 2019, at which meeting a quorum was present and remained
throughout, and that the meeting was conducted and public notice was given pursuant to
and in full compliance with Act No. 267, Public Acts of Michigan of 1976, as amended,
and that minutes were kept and will be or have been made available as required thereby.
Date:_______________________, 2019
________________________________
Ann Marie Meisch, MMC
City Clerk
Publish: Notice of Adoption to be published once within ten (10) days of final
adoption.
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CITY OF MUSKEGON
NOTICE OF ADOPTION
TO: ALL PERSONS INTERESTED
Please take notice that on ___________________, 2019, the City Commission of
the City of Muskegon amended Chapter____________, Article ___________ of the
Muskegon City Code, summarized as follows:
1. Section __________ is amended to provide_____________.
2. Section ____________ is amended to add ______________.
Copies of the ordinance may be viewed and purchased at reasonable cost at the
Office of the City Clerk in the City Hall, 933 Terrace Street, Muskegon, Michigan,
during regular business hours.
This ordinance amendment is effective ten (10) days from the date of this
publication.
Published: _________________, 2019 CITY OF MUSKEGON
By________________________
Ann Marie Meisch, MMC
City Clerk
------------------------------------------------------------------------------------------------------------
PUBLISH ONCE WITHIN TEN (10) DAYS OF FINAL PASSAGE
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DRAFT
09/17/19
CITY OF MUSKEGON
MUSKEGON COUNTY, MICHIGAN
ORDINANCE NO. ____
THE CITY COMMISSION OF THE CITY OF MUSKEGON HEREBY ORDAINS:
PROHIBITION OF RECREATIONAL MARIHUANA ESTABLISHMENTS
1. Chapter 34, Article IV of the Code of Ordinances of the City of Muskegon,
Michigan, Sections 34-______ through 34-______ are adopted as follows:
Sec. 34-_____ Purpose and Intent.
It is the intent of this ordinance to opt-out of the Michigan Regulation and
Taxation of Marihuana Act, being Initiated Law 1 of 2018 (MCL Sections 333.27951
through 333.27967).
Section 34-____ Definitions.
Words used herein shall have the definitions as provided for in Initiated Law 1 of
2018, MCL 333.27951 et seq., as may be amended.
Section 34- ______ No Marihuana Establishments.
The City of Muskegon hereby prohibits all marihuana establishments within the
boundaries of the City pursuant to Initiated Law 1 of 2018, MCL 333.27951 et seq.,
as may be amended.
Section 34- ______ Violations and Penalties
1. Any person who disobeys, neglects or refuses to comply with any provision of
this ordinance or who allows or consents to any of the same shall be deemed to be
responsible for the violation of this ordinance. A violation of this ordinance is
deemed to be a nuisance per se.
2. A violation of this ordinance is a municipal civil infraction, for which the fines
shall not be less than $100 nor more than $500, in the discretion of the Court. The
foregoing sanctions shall be in addition to the rights of the City to proceed at law
or equity with other appropriate and proper remedies. Additionally, the violator
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shall pay costs which may include all expenses, direct or indirect, which the City
incurs in connection with the municipal civil infraction.
3. Each day during which any violation continues shall be deemed a separate
offense.
4. In addition, the City may seek injunctive relief against persons alleged to be in
violation of this ordinance, and such other relief as may be provided by law.
5. This ordinance shall be administered and enforced by the Muskegon Police
Department, Zoning Administrator or by such other person(s) as designated by the
City Commission from time to time.
Section 34- ________ Severability
The provisions of this ordinance are hereby declared to be severable. If any
clause, sentence, word, section or provision is hereafter declared void or
unenforceable for any reason by a court of competent jurisdiction, it shall not affect
the remainder of such ordinance which shall continue in full force and effect.
2. This Ordinance is to become effective ten (10) days after adoption.
Ayes:
Nays:
First Reading:
Second Reading:
CERTIFICATE
The undersigned, being the duly qualified Clerk of the City of Muskegon,
Muskegon County, Michigan, does hereby certify that the foregoing is a true and
complete copy of an ordinance adopted by the City Commission of the City of
Muskegon, at a regular meeting of the City Commission on the ____ day of
_______________, 2019, at which meeting a quorum was present and remained
throughout, and that the meeting was conducted and public notice was given pursuant to
and in full compliance with Act No. 267, Public Acts of Michigan of 1976, as amended,
and that minutes were kept and will be or have been made available as required thereby.
Date:_______________________, 2019
________________________________
Ann Marie Meisch, MMC
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City Clerk
Publish: Notice of Adoption to be published once within ten (10) days of final
adoption.
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CITY OF MUSKEGON
NOTICE OF ADOPTION
TO: ALL PERSONS INTERESTED
Please take notice that on ___________________, 2019, the City Commission of
the City of Muskegon amended Chapter____________, Article ___________ of the
Muskegon City Code, summarized as follows:
1. Section __________ is amended to provide_____________.
2. Section ____________ is amended to add ______________.
Copies of the ordinance may be viewed and purchased at reasonable cost at the
Office of the City Clerk in the City Hall, 933 Terrace Street, Muskegon, Michigan,
during regular business hours.
This ordinance amendment is effective ten (10) days from the date of this
publication.
Published: _________________, 2019 CITY OF MUSKEGON
By________________________
Ann Marie Meisch, MMC
City Clerk
------------------------------------------------------------------------------------------------------------
PUBLISH ONCE WITHIN TEN (10) DAYS OF FINAL PASSAGE
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Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: 10/08/19 Title: Amendment to the Medical Marihuana
Facilities Overlay District to also allow
Recreational Marihuana facilities – 2nd
Reading
Submitted By: Mike Franzak Department: Planning
Brief Summary: Staff initiated request to amend Section 2330 of the zoning ordinance, the Medical
Marihuana Facilities Overlay District, to also allow for Recreational Marihuana facilities under the
Michigan Regulation and Taxation of Marihuana Act.
Detailed Summary: Staff is proposing to amend the current Medical Marihuana Facilities Overlay
District to also allow for Recreational Marihuana Facilities. The building and site requirements are
essentially the same for recreational and medicinal facilities and they would be allowed within the
same overlay district, as depicted on the map. The Planning Commission voted 7-1 in favor of
recommending approval of the ordinance.
Amount Requested: Amount Budgeted:
Fund(s) or Account(s): Fund(s) or Account(s):
Recommended Motion: To approve the amendments to Section 2330 of the Zoning Ordinance to
also allow for Recreational Marihuana Facilities.
Check if the following Departments need to approve the item first:
Police Dept.
Fire Dept.
IT Dept.
For City Clerk Use Only:
Commission Action:
Deletions are in red, additions are highlighted.
SECTION 2330: MEDICAL MARIHUANA FACILITIES OVERLAY DISTRICT
A Medical Marihuana Facilities Overlay District is hereby created as outlined in Figures 23-2. Within said overlay district
only, Medical Marihuana Facilities and Recreational Marihuana Facilities to the extent licensed pursuant to City Code
Sections 34-201 through 34-208 and (to be determined) are permitted.
A. Overlay District:
1. Location: Please see Figure 23-2 for the location of the overlay district. Within the entire overlay district,
licenses for Provisioning Centers, Growers, Processors, Secure Transporters and Safety Compliance
Facilities are permitted for Medical Marihuana Facilities. A smaller area within the overlay district allows
for Recreational Marihuana licenses for Retailers, Microbusiness, Designated Consumption Establishments,
Temporary Marihuana Events, Growers, Processors, Secure Transporters and Safety Compliance Facilities.
B. Grower, Excess Grower, and Processor Requirements:
1. Signage. Signage shall be limited to one sign, no larger than 25 square feet and shall not use the word
marihuana/marijuana, cannabis or any other word or phrase which would depict marihuana/marijuana;
nor may pictures of a leaf or leaves, green cross or any other rendering which would depict
marihuana/marijuana be displayed on a sign or any part of the building.
2. Building and Site Amenities. All Grower and Processor facilities must meet the following amenity
requirements:
a. Bay doors. Buildings must have bay doors in which a secure transport vehicle can enter for
delivery.
b. Canopy. Buildings must have a canopy or decorative awning over the main entrance to the
building.
c. Lighting. There shall be ornamental lighting on the exterior of the building at all ingress and egress
doors. There shall also be at least one decorative street lamp with banner brackets every 30 feet
of linear road frontage. The Zoning Administrator may require these lamps to be located off-site
within the overlay district to create a cohesive look for the district.
d. Landscaping plan. Decorative landscaping shall be provided with irrigation. All new construction
projects shall require underground sprinkling. Please see Part G, Landscaping Requirements.
e. Street furniture/amenities. There shall be at least one bench, bike rack, trash can or bus shelter
located on site. The Zoning Administrator may require any of these over another to keep a
diversified look throughout the district. Properties that cannot meet these requirements because
of site conditions may allow the Zoning Administrator to locate these amenities anywhere within
the district or within 500 feet of its boundaries.
f. Carbon filtration system. The building shall be equipped with an activated carbon filtration
system for odor control and be maintained in working order.
3. Waste Disposal Plan. A plan must be approved for the disposal of waste, chemicals and unused plant
material.
4. Security. There must be a security presence in place on the property at all times, either by licensed security
guard(s) and/or security cameras. A floor plan with security details is required.
C. Provisioning Center, Retailer, Microbusiness and Designated Consumption Establishment Requirements:
1. Hours. Provisioning Centers may operate between the hours 8 am and 8 pm.
Provisioning Centers, Retailers and Microbusinesses and Designated Consumption Establishments may
operate between the hours 8 am and 12 am.
2. Signage. Signage shall be limited to one sign, no larger than 25 square feet and shall not use the word
marihuana/marijuana, cannabis or any other word or phrase which would depict marihuana/marijuana;
nor may pictures of a leaf or leaves, green cross or any other rendering which would depict
marihuana/marijuana be displayed on a sign or any part of the building. Windows shall remain free and
clear of all advertising.
3. Building and Site Amenities. All Provisioning Centers, Retailers, Microbusinesses and Designated
Consumption Establishments must meet the following amenity requirements:
a. Bay doors. Buildings must have bay doors in which a secure transport vehicle can enter for
delivery.
b. Canopy. Buildings must have a canopy or decorative awning over the main entrance to the
building.
c. Security shutters. The interior of all windows shall require security shutters that give the
appearance of shutters or window shades. Metal bars and gates are prohibited.
d. Lighting. There shall be ornamental lighting on the exterior of the building at all ingress and egress
doors. There shall also be at least one decorative street lamp with banner brackets every 30 feet
of lineal road frontage. The Zoning Administrator may require these lamps to be located off-site
within the overlay district to create a cohesive look for the district.
e. Landscaping plan. Decorative landscaping shall be provided with irrigation. All new construction
projects shall require underground sprinkling. Please see Part G, Landscaping Requirements.
f. Street furniture/amenities. There shall be at least one bench, bike rack, trash can or bus shelter
located on site. The Zoning Administrator may require any of these over another to keep a
diversified look throughout the district. Properties that cannot meet these requirements because
of site conditions may allow the Zoning Administrator to locate these amenities anywhere within
the district or within 500 feet of its boundaries.
g. Carbon filtration system. The building shall be equipped with an activated carbon filtration
system for odor control and be maintained in working order.
4. Indoor Activities. All activities of a provisioning center shall be conducted within the structure and out of
public view. Walk-up and drive thru windows are not permitted.
5. Security. There must be a security presence in place on the property at all times, either by licensed security
guard(s) and/or security cameras. A floor plan with security details is required.
D. Safety Compliance Facility Requirements:
1. Indoor Activities. All activities of a marihuana safety compliance facility shall be conducted within the
structure and out of public view.
2. Building and Site Amenities. All Safety Compliance Facilities must meet the following amenity
requirements:
a. Canopy. Buildings must have a canopy or decorative awning over the main entrance to the
building.
b. Lighting. Ornamental lighting is required on the exterior of the building at all ingress and egress
doors. There shall also be at least one decorative street lamp with banner brackets every 30 feet
of lineal road frontage. The Zoning Administrator may require these lamps to be located off-site
within the overlay district to create a cohesive look for the district.
c. Landscaping Plan. Decorative landscaping shall be provided and all landscaping shall be irrigated.
All new construction projects shall require underground sprinkling. Please see Part G, Landscaping
Requirements.
d. Street furniture/amenities. There shall be at least one bench, bike rack, trash can or bus shelter
located on site. The Zoning Administrator may require any of these over another to keep a
diversified look throughout the district. Properties that cannot meet these requirements because
of site conditions may allow the Zoning Administrator to locate these amenities anywhere within
the district or within 500 feet of its boundaries.
3. Security. There must be a security presence in place on the property at all times, either by licensed security
guard(s) and/or security cameras. A floor plan with security details is required.
4. Chemical waste and plant disposal plan. A list of all chemicals used in testing and how they will be disposed
of must be provided. The plan must also show how marihuana plants and products will be disposed.
E. Secure Transporter Requirements:
1. Storage. Marihuana and supplies, materials or money shall not be kept in any secure transport vehicle
overnight. Outdoor storage, excluding transport vehicles is prohibited.
2. Building and Site Amenities. All Secure Transporter buildings must meet the following amenity
requirements:
a. Canopy. Buildings must have a canopy or decorative awning over the main entrance to the
building.
b. Lighting. Ornamental lighting is required on the exterior of the building at all ingress and egress
doors. There shall also be at least one decorative street lamp with banner brackets every 30 feet
of lineal road frontage. The Zoning Administrator may require these lamps to be located off-site
within the overlay district to create a cohesive look for the district.
c. Landscaping Plan. Decorative landscaping shall be provided and all landscaping shall be irrigated.
All new construction projects shall require underground sprinkling. Please see Part G, Landscaping
Requirements.
d. Street furniture/amenities. There shall be at least one bench, bike rack, trash can or bus shelter
located on site. The Zoning Administrator may require any of these over another to keep a
diversified look throughout the district. Properties that cannot meet these requirements because
of site conditions may allow the Zoning Administrator to locate these amenities anywhere within
the district or within 500 feet of its boundaries.
3. Security. There must be a security presence in place on the property at all times, either by licensed security
guard(s) and/or security cameras. A floor plan with security details is required.
F. Temporary Marihuana Event Requirements:
1. Temporary Marihuana Events may be held within the allowed area for Recreational Marihuana Facilities,
including parking lots and the public right-of-way, with the issuance of all necessary local and state permits.
G. Landscaping Requirements:
1. All required front setbacks shall be landscaped with a minimum of two canopy or shade trees, four understory
or evergreen trees and four shrubs, for each 30 lineal feet of road frontage. Access ways from public rights-
of-way through required landscape strips shall be permitted, but such access ways shall not be subtracted from
the lineal dimension used to determine the minimum number of trees and shrubs required.
2. All terraces (area between street and sidewalk) shall be landscaped with a minimum of one canopy tree for
each 20 lineal feet of road frontage.
Properties that cannot meet these landscaping requirements because of site conditions may allow the Zoning
Administrator to locate the required landscaping anywhere within the overlay district or within 500 feet of its
boundaries. Required understory trees, evergreen trees and shrubs may be replaced with canopy trees within the
terrace at a 1:1 ratio.
CITY OF MUSKEGON
MUSKEGON COUNTY, MICHIGAN
ORDINANCE NO._____
An ordinance to amend Section 2330 of the zoning ordinance to amend the Medical Marihuana Facilities Overlay District
to include Recreational Marihuana facilities, pursuant to the City’s Regulatory Marihuana Facilities Ordinance.
THE CITY COMMISSION OF THE CITY OF MUSKEGON HEREBY ORDAINS:
That Section 2330, the Medical Marihuana Facilities Overlay District is hereby amended and renamed the Marihuana
Facilities Licensing Overlay District and now allows provisions for Recreational Marihuana Facilities.
This ordinance adopted:
Ayes:______________________________________________________________
Nayes:_____________________________________________________________
Adoption Date:
Effective Date:
First Reading:
Second Reading:
CITY OF MUSKEGON
By: _________________________________
Ann Meisch, MMC, City Clerk
CERTIFICATE
The undersigned, being the duly qualified clerk of the City of Muskegon, Muskegon County, Michigan,
does hereby certify that the foregoing is a true and complete copy of an ordinance adopted by the City
Commission of the City of Muskegon, at a regular meeting of the City Commission on the 24th day of
September, 2019, at which meeting a quorum was present and remained throughout, and that the original of
said ordinance is on file in the records of the City of Muskegon. I further certify that the meeting was
conducted and public notice was given pursuant to and in full compliance with the Michigan Zoning Enabling
Act, Public Acts of Michigan No. 33 of 2006, and that minutes were kept and will be or have been made
available as required thereby.
DATED: ___________________, 2019. __________________________________________
Ann Meisch, MMC
Clerk, City of Muskegon
Publish: Notice of Adoption to be published once within ten (10) days of final adoption.
CITY OF MUSKEGON
NOTICE OF ADOPTION
Please take notice that on September 24, 2019, the City Commission of the City of Muskegon adopted an ordinance to
amend Section 2330 of the zoning ordinance to include recreational marihuana facilties within the current overlay
district.
Copies of the ordinance may be viewed and purchased at reasonable cost at the Office of the City Clerk in
the City Hall, 933 Terrace Street, Muskegon, Michigan, during regular business hours.
This ordinance amendment is effective ten days from the date of this publication.
Published ____________________, 2019. CITY OF MUSKEGON
By _________________________________
Ann Meisch, MMC
City Clerk
---------------------------------------------------------------------------------------------------------------------
PUBLISH ONCE WITHIN TEN (10) DAYS OF FINAL PASSAGE.
Account No. 101-80400-5354
MC
SIXTH
SEVENTH
PARK
SEAWAY
LAKETON B-4 LAKETON
LAKETON
I-2 OSR
I-2 R-1 ALPHA
COMMERCE
R-1
JEFFERSON
SIXTH
FIFTH
HOLBROOK
B-2 HOLBROOK
B-4
TEMPLE
R-1
SANFORD
I-1
PARK
PECK
YOUNG
MUSKEGON HEIGHTS
MUSKEGON HEIGHTS
PROPOSED MMFLA & RECREATIONAL DISTRICT
B-4 GENERAL BUSINESS
I-1 B-2
I-1
CONVENIENCE COMPARISON BUSINESS
LIGHT INDUSTRIAL
SEAWAY
I-2 GENERAL INDUSTRIAL
MC MEDICAL CARE
OSR OPEN SPACE RECREATION
R-1 SINGLE-FAMILY RESIDENTIAL
MUSKEGON HEIGHTS
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