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CITY OF MUSKEGON
CITY COMMISSION MEETING
MARCH 12, 2019 @ 5:30 P.M.
MUSKEGON CITY COMMISSION CHAMBERS
933 TERRACE STREET, MUSKEGON, MI 49440
AGENDA
□ CALL TO ORDER:
□ PRAYER:
□ PLEDGE OF ALLEGIANCE:
□ ROLL CALL:
□ HONORS AND AWARDS:
□ INTRODUCTIONS/PRESENTATION:
A. West Michigan Lake Hawks – Team Introduction and Presentation
B. Delta Days at City Hall Dwana Thompson
□ CITY MANAGER’S REPORT:
□ CONSENT AGENDA:
A. Approval of Minutes City Clerk
B. Fireworks Display Permit for Heritage Landing City Clerk
C. Adopt a Resolution Approving On-Premises Tasting Room Permit at 794
Pine Street City Clerk
D. Notice of Intent Resolution for Sanitary Sewer and Water Supply Revenue
Bonds Finance
E. Amity Bridge – Resolution of Support for Bridge Funding Application and
Commitment to Matching Funds Department of Public Works
F. Resolution of Authority to Sign Street Lighting Contracts with Consumers
Energy Department of Public Works
G. Authorized Representative for County Wastewater Committee Department
of Public Works
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H. Heritage Association Streetlight Easements Department of Public Works
I. Heritage Village Streetlights Department of Public Works
J. Request for Authorization to Sign Community & Neighborhood
Services
K. Short Term Vacation Rentals – Second Reading Public Safety
□ PUBLIC HEARINGS:
A. Public Hearing for DWRF Project Plan Department of Public Works
B. Public Hearing – Request to Establish an Obsolete Property District – 1937
Lakeshore Drive Planning & Economic Development
C. Public Hearing – Request to Issue an Obsolete Property Certificate – Ghezzi
Investments, LLC Planning & Economic Development
D. Recommendation for Annual Renewal of Liquor Licenses City Clerk
E. Marsh Field Passport Grant Application City Manager
□ COMMUNICATIONS:
□ UNFINISHED BUSINESS:
□ NEW BUSINESS:
A. LC Walker Arena – Lumberjacks Lease City Manager
B. Purchase Agreement – 880 First Street, 731 Yuba Street, 205 East Muskegon
Avenue, 287 East Muskegon Avenue, and 225 Eastern Avenue City
Manager
C. Purchase Agreement and Grant Agreement – West Shoreline Correctional
Facility City Manager
□ ANY OTHER BUSINESS:
□ PUBLIC PARTICIPATION:
► Reminder: Individuals who would like to address the City Commission shall do the following:
► Fill out a request to speak form attached to the agenda or located in the back of the room.
► Submit the form to the City Clerk.
► Be recognized by the Chair.
► Step forward to the microphone.
► State name and address.
► Limit of 3 minutes to address the Commission.
► (Speaker representing a group may be allowed 10 minutes if previously registered with City Clerk.)
□ CLOSED SESSION:
□ ADJOURNMENT:
ADA POLICY: THE CITY OF MUSKEGON WILL PROVIDE NECESSARY AUXILIARY AIDS AND SERVICES TO INDIVIDUALS
WHO WANT TO ATTEND THE MEETING UPON TWENTY-FOUR HOUR NOTICE TO THE CITY OF MUSKEGON. PLEASE
CONTACT ANN MARIE MEISCH, CITY CLERK, 933 TERRACE STREET, MUSKEGON, MI 49440 OR BY CALLING (231) 724-
6705 OR TTY/TDD DIAL 7-1-1-22 TO REQUEST A REPRESENTATIVE TO DIAL (231) 724-6705.
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Memorandum
To: Mayor and Commissioners
From: Frank Peterson
Re: City Commission Meeting
Date: March 11, 2019
Here is a quick outline of the items on our agendas:
Work Session:
We will hold the CRC meeting first to accommodate the citizen appreciation event. The work
session will follow. Staff strategically did not include any items on the work session. As usual,
questions about items on the Tuesday agenda are always welcomed/encouraged Monday
evening to provide staff time to prepare responses and/or make changes.
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. Approve a fireworks display permit for Heritage Landing for the evening of July 4,
2019.
c. Approve a resolution for an on-premises tasting room at 794 Pine Street. The new
tenant of that building is Rake Beer Project – they will be the downtown’s third
brewery.
d. Approval of the notice of intent to issue sanitary sewer and water supply bonds.
This notice is in support of our recently-approved water and sewer improvements.
A large portion of the bonds will be forgiven by the state upon completion of the
project and remittance of the first bond scheduled bond payment.
e. Permission to apply for grant funds to replace the Amity Street Bridge. The goal
would be to remove the bridge and replace it with a new roadway on fill. We also
applied for these funds last year, but were not awarded. The local match would
be $200,000.
f. Approval of a resolution authorizing Leo Evans to approve street light contract
modifications of less than 10 lights. LeighAnn Mikesell previously had this
authority.
g. Approval of a resolution designating Leo Evans as the City’s representative on the
Municipal Wastewater Management Committee. LeighAnn currently serves in
this capacity.
h. Approval of an easement agreement with various property owners to allow the
city access to Heritage Village lights that are on private property but are about to
become the responsibility of the city to maintain.
i. Approval of an agreement to assume city ownership of the 26 Heritage Village
streetlights. All of the lights are LED.
j. Approval of a resolution officially authorizing Oneata Bailey to sign agreements
related to our affordable housing programs on behalf of the City.
k. Second Reading of the Short Term Rental Ordinance.
2. Under Public Hearings, we are taking comments on the following:
a. Drinking Water Revolving Loan Fund Project Plan. This plan was posted for public
comment on February 10th.
b. Establishment of an Obsolete Property District at 1937 Lakeshore Drive.
c. Issuance of an Obsolete Property Certificate to Ghezzi Investments, LLC for 1937
Lakeshore Drive. The development will include nine apartments and four
commercial spaces, with a total capital investment of $1.1 Million.
d. We will hold a public hearing on various liquor licenses that staff is recommending
not be approved for renewal.
e. We will hold a public input session regarding a proposed passport grant for
improvements at Marsh Field.
3. Under the New Business, we are asking the Commission to consider the following:
a. Approval of a lease agreement with the Muskegon Lumberjacks
b. Authorization to enter into a purchase agreement with Core Development for the
sale for the former Ameribank Building and the former Farmer’s Market. We are
asking for changes in the combined purchase price to help the purchaser address
development obstacles while still meeting market demand. The Farmers Market
site is being reduced to $50,000 following a soils and structures assessment that
determined that significant sheet pilings would be needed to build on the site.
The pilings would likely cost in excess of $100,000 in order to accommodate
construction on the site. The 880 First site is being reduced to $150,000 to help
the purchaser address rising construction costs and provide a product that can be
effective sold at the prevailing market rate without creating a funding gap. It is
important that the project proforma does not show an operating gap because it is
unlikely that the MEDC will recommend approval of CRP incentives without the
belief that the project is sustainable. Staff is recommending that both properties
be sold on one agreement. The Ameribank really should not be exposed to
another winter like this if we want it to continue to be a viable redevelopment
structure.
c. Approval of the purchase agreement with the State Land Bank to acquire the
vacant West Shoreline Correctional Facility as well as the grant agreement with
the state of Michigan. The purchase price is $1,398,323.50. We are also obligated
to contribute $396,676.50 to install a new fence separating the site from the
remaining correctional facilities. Additionally, we are required to expend$350,000
demolishing structures on the site and $15,000 completing environmental
assessments. We also must spend $3,000 on closing costs. Our total costs are
expected to be $2,160,000. However, the $4 Million grant from the State of
Michigan will offset these and other development costs.
Let me know if you have any questions/comments/concerns
Frank
Date: March 6, 2019
To: Honorable Mayor and City Commissioners
From: Ann Marie Meisch, City Clerk
RE: Approval of Minutes
SUMMARY OF REQUEST: To approve minutes of the February 19, 2019
Joint Meeting with the Muskegon Public School Board, minutes of the
February 26, 2019 Regular Meeting, and minutes of the March 1, 2019 Goal
Setting Meeting.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval of the minutes.
City of Muskegon City Commission
Joint Meeting with
Muskegon Public School Board
Tuesday, February 19, 2019
8:00 p.m.
Hackley Administration Building
349 W. Webster Avenue
Muskegon, MI 49440
MINUTES
Present: Board of Education Members - Cindy Larson, Bill O’Brien, Lynette Marks, Zachary
Anderson, Louis Churchwell, Tasha Bibbs-Oakes; City Commission Members – Debra Warren,
Ken Johnson, Willie German, Jr., Byron Turnquist, Dan Rinsema-Sybenga, and Vice Mayor Hood
Absent: BOE Member Billie Bruce and Mayor Stephen J. Gawron
Motion by Mr. O’Brien, second by Vice Mayor Hood, to approve the agenda – all in favor,
Motion Carried.
Discussion took place amongst all of the members regarding the possibility of having some
Youth Programs with city staff as mentors. There was conversation about how to raise school
counts and losing students that are going to the middles school. Customer service,
stereotyping, self-promotion, and high-dollar scholarships were also part of the conversation.
Discussion also took place regarding the City sponsoring STEM programs. STEM stands for
Science, Technology, Engineering, and Mathematics. Some ideas discussed included use of
college-readiness curriculum and getting students to finish college.
The group discussed planning efforts related to the Hackley Hospital site, the conversion of
Peck and Sanford to two-way traffic, and Neighborhood planning for future school closings or
relocations.
Superintendent Justin Jennings will be meeting with the Boys & Girls Club to discuss the use of
Angell School for their program.
Discussion took place regarding the city’s goal to increase population and add missing middle
housing and consistent coordination among school and city staff.
The use of the Hackley Administration Building was discussed and the building is in need of
some upgrades. There was some discussion of the possibility of selling the building if there are
no plans to put money into it.
The joint meeting adjourned at 9:43 p.m.
Respectfully Submitted,
Ann Marie Meisch, MMC – City Clerk
CITY OF MUSKEGON
CITY COMMISSION MEETING
FEBRUARY 26, 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, February 26, 2019,
Reverend Darrin Longmire, Forest Park Covenant Church, opened the meeting
with prayer, after which the Commission and public recited the Pledge of
Allegiance to the Flag.
ROLL CALL FOR THE REGULAR COMMISSION MEETING:
Present: Mayor Stephen J. Gawron, Vice Mayor Eric Hood, Commissioners
Ken Johnson (arrived at 5:35 p.m.), Byron Turnquist, Debra Warren, and Dan
Rinsema-Sybenga, City Manager Frank Peterson, City Attorney John Schrier, and
City Clerk Ann Meisch.
Absent: Commissioner Willie German, Jr.
2019-14 CONSENT AGENDA:
A. Approval of Minutes City Clerk
SUMMARY OF REQUEST: To approve the minutes of the February 11, 2019
Worksession meeting and February 12, 2019 Regular meeting.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval of the minutes.
B. Special Event Liquor License – Farmers Market for Blues & BBQ Fundraiser
City Clerk
SUMMARY OF REQUEST: The City Clerk’s Office is organizing a Taste of
Muskegon Fundraiser to be held on Saturday, March 23, 2019 and is seeking City
Commission approval to apply for a license for beer, wine, and spirit sales for this
event. The Farmer’s Market does have a liquor license but the licensed area
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does not extend beyond the barn.
FINANCIAL IMPACT: $50 permit from the State for every date requested.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To approve a special liquor license application
for the March 23, 2019 Blues & BBQ, Taste of Muskegon Fundraiser event.
D. Authorized Representative for Drinking Water Grant Department of
Public Works
SUMMARY OF REQUEST: Approve the resolution to designate the Public Works
Director as authorized representative for the Pilot Drinking Water Community
Water Supply Grant Program in all transactions with the MDEQ related to this
grant.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Approve the resolution.
E. Street Administrator Resolution Department of Public Works
SUMMARY OF REQUEST: Approve the resolution to designate the Public Works
Director as the street administrator in all transactions with the Michigan
Department of Transportation.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Approve the resolution.
F. Authorized Representative for State Revolving Fund Department of
Public Works
SUMMARY OF REQUEST: Approve the resolution to designate the Public Works
Director as the authorized representative for the State Revolving Fund Loan
Program in all transactions with the MDEQ related to this grant.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Approve the resolution.
G. City of Muskegon/MDOT Project Agreement – Lakeshore Drive
Department of Public Works
SUMMARY OF REQUEST: Approve the contract with MDOT for Lakeshore Drive
construction between McCracken and Laketon and approve the resolution
authorizing the Mayor and City Clerk to sign the contract.
FINANCIAL IMPACT: MDOT’s participation is limited to the approved federal
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funds of $800,000. The estimated total construction cost is $5,700,000 plus
engineering cost.
BUDGET ACTION REQUIRED: None at this time, this project is included in the
18-19 budget.
STAFF RECOMMENDATION: Approve the contract and resolution authorizing
the Mayor and Clerk to sign both.
H. Drinking Water Revolving Fund (DWRF) Project Plan – Amendment
Department of Public Works
SUMMARY OF REQUEST: Authorize staff to sign an amendment to the
engineering services agreement with Prein & Newhof Engineering to develop a
Drinking Water Revolving Fund Project Plan. The value of the amendment is
estimated at $10,000. The original contract was for a not to exceed amount of
$15,500.
The original engineering services agreement with Prein & Newhof to develop a
DWRF Project Plan was approved in December to target fiscal year 2020 dollars,
in January we were made aware of left over fiscal year 2019 DWRF funds that
could be partnered with already planned and underway SRF projects.
The amendment to the original contract would cover the increased costs
necessary to pursue the additional fiscal year 2019 funding and still allow for the
development of the full plan for fiscal year 2020.
FINANCIAL IMPACT: $10,000
BUDGET ACTION REQUIRED: None, this will be addressed during a future
reforecasting.
STAFF RECOMMENDATION: Authorize staff to enter into the amended
engineering services agreement with Prein & Newhof.
I. W-91838.2 Water Service Line Replacements Department of Public
Works
SUMMARY OF REQUEST: To award contract (W-91838.2) for replacement of
water service lines at various locations within the City of Muskegon.
Two Contractors submitted bids for this project as follows:
McCormick Sand…………31 Each
Goyette Mechanical…….23 Each
Bids were selected based on a fixed budget and variable scope. Bidders were
instructed to bid based on how much work they could complete within a fixed
budget with the winning bid going to the company that could complete the
most work.
FINANCIAL IMPACT: $150,000
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BUDGET ACTION REQUIRED: None. Funded through grant revenue from
MDEQ.
STAFF RECOMMENDATION: Award the project to the low bidder, McCormick
Sand.
J. W-91838.3 Water Service Line Replacements Department of Public
Works
SUMMARY OF REQUEST: To award contract (W-91838.3) for replacement of
water service lines at various locations within the City of Muskegon.
Two Contractors submitted bids for this project as follows:
McCormick Sand…………30 Each
Goyette Mechanical…….27 Each
Bids were selected based on a fixed budget and variable scope. Bidders were
instructed to bid based on how much work they could complete within a fixed
budget with the winning bid going to the company that could complete the
most work.
FINANCIAL IMPACT: $150,000
BUDGET ACTION REQUIRED: None. Funded through grant revenue from
MDEQ.
STAFF RECOMMENDATION: Award the project to the low bidder, McCormick
Sand.
K. Legislative Consulting City Manager
SUMMARY OF REQUEST: The City has had the same legislative consultant on
retainer for many years. Earlier this year, our consultant retired. Staff is requesting
that Main Street Legislative Consulting be engaged to provide this service to the
city at a cost of $2,000 per month.
FINANCIAL IMPACT: $24,000
BUDGET ACTION REQUIRED: None at this time.
STAFF RECOMMENDATION: To authorize the City Manager to accept a
proposal from Main Street Legislative Consulting.
M. LC Walker Arena – Ironmen Lease City Manager
SUMMARY OF REQUEST: City staff is requesting approval of the lease to allow
the West Michigan Ironmen to play indoor football at the LC Walker Arena in
2019. This is a one year lease.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
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STAFF RECOMMENDATION: To authorize the Clerk and Mayor to sign the
lease with Muskegon Football.
N. LC Walker Arena Performance Agreement City Manager
SUMMARY OF REQUEST: The City is working to host a concert at the LC Walker
Arena. We are seeking approval of the performance agreement.
FINANCIAL IMPACT: $14,000
BUDGET ACTION REQUIRED: None at this time.
STAFF RECOMMENDATION: To authorize the City Manager to enter into the
performance agreement with Pegboard Nerds to perform at the LC Walker
Arena on Friday, April 5, 2019.
Motion by Commissioner Johnson, second by Commissioner Rinsema-Sybenga,
to approve the consent agenda as presented, except items C and L.
ROLL VOTE: Ayes: Gawron, Hood, Warren, Rinsema-Sybenga, Turnquist, and
Johnson
Nays: None
MOTION PASSES
2019-15 ITEMS REMOVED FROM CONSENT:
C. Amendment to the Medical Marihuana Facilities Licensing Overlay District
– 2nd Reading Planning & Economic Development
SUMMARY OF REQUEST: The property owner at 185 W. Laketon Avenue is
requesting to amend the Medical Marihuana Licensing Facilities Act (MMFLA)
Overly District to include their property within the district.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Staff does not recommend approval of the
amendment.
COMMITTEE RECOMMENDATION: At the January 10, Planning Commission
meeting, a motion was made to approve the amendment as presented. The
Planning Commission voted 6-2 against the motion.
The item was reprised at the February 12, 2019 City Commission meeting with a
motion to include the property at 185 W. Laketon into the Medical Marijuana
Overlay District. The motion passed with four commissioners voting YES and three
commissioners voting NO.
The motion is to amend the zoning ordinance to include 185 W. Laketon Avenue
in the Medical Marihuana Facilities Licensing Act Overlay District.
Motion by Commissioner Turnquist, second by Commissioner Johnson, to amend
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the zoning ordinance to include 185 W. Laketon Avenue in the Medical
Marihuana Facilities Licensing Act Overlay District.
ROLL VOTE: Ayes: Hood, Warren, Rinsema-Sybenga, and Johnson
Nays: Turnquist and Gawron
MOTION PASSES
L. Fertilizer DPW/Parks & Cemetery
SUMMARY OF REQUEST: The Park Supervisor requests that the Commission
authorize the amount of $18,612.00 for two applications of fertilizer for the parks
and cemeteries from Harrell’s, the only available supplier. Bids were submitted to
two other companies: Siteone and Advance Turf Solutions. Neither of them was
able to supply the product.
FINANCIAL IMPACT: $18,612.00
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Approval of the request.
Motion by Commissioner Warren, second by Commissioner Rinsema-Sybenga,
to approve the request.
ROLL VOTE: Ayes: Warren, Rinsema-Sybenga, Turnquist, Johnson, Gawron, and
Hood
Nays: None
MOTION PASSES
2019-16 NEW BUSINESS:
A. Approval of a Neighborhood Enterprise Zone Certificate – 351 W Western
Planning & Economic Development
SUMMARY OF REQUEST: An application for a Neighborhood Enterprise Zone
Certificate has been received from 351 Phase II, LLC for the construction of 15
market-rate apartments as part of Phase II of their mixed-use development
project. The estimated project cost is $210,000 per unit. The property was
approved as a Neighborhood Enterprise Zone District on May 9, 2017. The
applicant has met local and state requirements for the issuance of the NEZ
certificate. They have requested the maximum 15 years for the exemption.
FINANCIAL IMPACT: One-half of the previous year’s state average principal
millage rate will be applied to the value of the facility for a duration of 15 years,
with a three-year phase out (they will receive 75% of the abatement in year 13,
50% in year 14 and 25% in year 15).
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval of the NEZ certificate for 15 years.
Page 6 of 9
Motion by Commissioner Rinsema-Sybenga, second by Vice Mayor Hood, to
approve NEZ Certificate for 15 years.
ROLL VOTE: Ayes: Rinsema-Sybenga, Turnquist, Johnson, Gawron, Hood, and
Warren
Nays: None
MOTION PASSES
B. Request for Final Planned Unit Development (PUD) Approval – Hartshorn
Village Planning & Economic Development
SUMMARY OF REQUEST: Request for final PUD approval for a mixed-use
development at 920,1000, 1010, 1050 and 1060 W. Western Avenue. The
development will include 55 single family homes, a clubhouse, and
improvements to the Hartshorn Marina and Fricano’s Place.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Staff recommends approval of the PUD with
some minor conditions listed in the staff report.
COMMITTEE RECOMMENDATION: The Planning Commission approved a
motion to recommend approval of the PUD, with the staff recommended
conditions by a 7-0 vote, with two members absent.
Motion by Commissioner Johnson, second by Commissioner Warren, to approve
the PUD with minor conditions listed in the staff report.
ROLL VOTE: Ayes: Rinsema-Sybenga, Turnquist, Johnson, Gawron, Hood, and
Warren
Nays: None
MOTION PASSES
C. Land Swap – Damfino Development City Manager
SUMMARY OF REQUEST: Staff previously proposed selling approximately .63
acres of property to Damfino Development after receiving a purchase offer
from the group. Commissioners recommended that staff pursue a land swap for
a similarly-sized parcel as an alternative. Staff is recommending that the revised
offer be considered for approval. The revised offer provides the City of
Muskegon with .63 acres of dune land along Lakeshore Drive – this property is
adjacent to the city owned parcel located at 2275 Beach Street. In addition to
the .63 acres of land, Damfino Development is proposing to contribute $25,000
to the City’s upcoming 150th Anniversary Celebration.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
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STAFF RECOMMENDATION: To accept the proposal from Damfino
Development and authorize staff to complete the transaction.
Motion by Vice Mayor Hood, second by Commissioner Turnquist, to accept the
proposal from Damfino Development and authorize staff to complete the
transaction contingent upon adding additional access through an easement,
giving access to charter park, and the PUD has to be approved.
ROLL VOTE: Ayes: Rinsema-Sybenga, Turnquist, Johnson, Gawron, Hood, and
Warren
Nays: None
MOTION PASSES
D. Short Term Vacation Rentals Public Safety
SUMMARY OF REQUEST: The Director of Public Safety requests that the
Commission consider approving a stand-alone ordinance “Short Term Vacation
Rentals” regulation. The city has experienced an increase in short term vacation
rentals over the past couple of years. These specialty rental offerings are not
regulated in our current “Housing Rental” ordinance. The ordinance will address
applying and receiving a short term rental certificate and a safety inspection of
the unit(s). Certificate holders will be responsible for insuring tenants are aware
and complies with relevant city ordinances, with a focus on number of
occupants, recreational fires, parking, fireworks, noise, and trash to name a few
noted problem areas that staff has experienced in an attempt to regulate short
term rentals. The requested ordinance will improve neighborhood relations
where short term rentals are now located, create a safer and peaceful
environment for short term tenants and residents. The staff recommends the
annual fee of the Short Term Vacation Rentals to be $250.00 annually.
FINANCIAL IMPACT: Revenue generated will be put into a separate
account to be used for expenses and purchase amenities for parks.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Staff recommends approval of the short term
vacation rentals ordinance.
Motion by Commissioner Warren, second by Commissioner Turnquist, to approve
the short term vacation rentals ordinance.
ROLL VOTE: Ayes: Johnson, Gawron, Hood, Warren, Rinsema-Sybenga, and
Turnquist
Nays: None
MOTION PASSES
SECOND READING REQUIRED
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E. Concurrence with the Housing Board of Appeals Notice and Order to
Demolish Public Safety
1874 Jarman
REMOVED PER STAFF REQUEST
ANY OTHER BUSINESS: Commissioner Warren reminded everyone of the
Resident Appreciation Event coming up on March, 11, 2019 and asked for an
update on the parking ordinance amendments for winter which the Chief
provided. Commissioner Johnson has requested the City NOT move forward with
his previous request of moving forward with special assessment proceedings for
burying utility lines on Lakeshore Drive and asked that letters be sent to all
interested parties.
PUBLIC PARTICIPATION: Comments were received from the public.
ADJOURNMENT: The City Commission meeting adjourned at 7:57 p.m.
Respectfully Submitted,
Ann Marie Meisch, MMC - City Clerk
Page 9 of 9
CITY OF MUSKEGON
GOAL SETTING MEETING
Friday, March 1, 2019
9:00 a.m.
City Commission Chambers
933 Terrace Street
Muskegon, MI 49440
MINUTES
2019-17
Present: Mayor Steve Gawron, Commissioners Turnquist, Warren, Hood, Johnson, and
Rinsema-Sybenga
Absent: Commissioner German.
Employees present include: Frank Peterson, Mike Franzak, Jim Maurer, Oneata Bailey, Leo
Evans, Leighann Mikesell, Jeff Lewis, Kirk Briggs, Dave Smith, Doug Sayles, Dwana
Thompson, Sarah Peterson, Ken Grant, and Ann Meisch.
Welcome
Frank Peterson welcomed the group and introduced Alfredo Hernandez from the Michigan
Department of Civil Rights.
Presentation by Alfredo Hernandez, Diversity in the Workplace
Discussion took place about implicit bias and race including many definitions, examples, and
how it impacts each of us. Several examples of diversity, bias, and inclusion were given.
Review of Previous Goals
Frank Peterson, City Manager, reviewed the previous goals of the City Commission and gave
an update.
Goal Setting
1. Community Safety Plan. Jeff Lewis gave an explanation for the need to have a
Community Safety Plan. We need to engage citizens to learn about their safety concerns. What
do we do for victims when an offender has not been identified? What should we add or
improve? What are we doing now that is working? What is not working? We need a diverse
police department. We need quality officers. We need continued training. Residents deserve to
feel safe and they need to feel comfortable contacting the police department and know that they
will be treated professionally and with empathy. Should we stop the coffee with a cop program if
we are not getting the attendance? The suggestion was made to use more door hangers to ask
neighbors for assistance when needing assistance with a crime. A follow-up meeting is needed
on this topic.
2. Are neighborhood associations in touch with the needs of the majority of the neighbors?
How do we get more engagement with the neighborhoods? Oneata is engaging students this
summer to knock on doors to inform neighbors about what is happening and assist
neighborhood organizations.
3. Equity Discussion Action Items. Training for all staff is needed. We need to train all
employees including front line people on implicit bias. We need an organizational review of all
policies. An Equal Opportunity policy should be handed to anyone doing work within the City.
We should make it known that any abatement we give, we want their workforce that is reflective
of our community. We need to seek RFP’s for our own buildings to seek more diversity. We
have a new business at the LC Walker Arena and we should create a RFP and seek minorities
for that location. Discussion of an anti-discrimination ordinance was discussed. We will review
the Racial Equity Tool Kit.
Adjourn.
Respectfully Submitted,
Ann Marie Meisch, MMC – City Clerk
Date: March 6, 2019
To: Honorable Mayor and City Commissioners
From: Ann Marie Meisch, City Clerk
RE: Fireworks Display Permit for Heritage Landing
SUMMARY OF REQUEST: Night Magic is requesting approval of a
fireworks display permit for July 4, 2019, at the Heritage Landing. The
fire Marshall will inspect the fireworks on the day of the event.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval contingent on inspection of the
fireworks and approval of insurance.
Date: March 6, 2019
To: Honorable Mayor and City Commissioners
From: Ann Marie Meisch, City Clerk
RE: Adopt a Resolution Approving On-Premises Tasting
Room Permit at 794 Pine Street
SUMMARY OF REQUEST: To adopt a resolution approving a new On-
Premises Tasting Room Permit application for the Rake Beer Project, LLC at
794 Pine Street.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Adopt the resolution.
Commission Meeting Date: March 12, 2019
Date: March 5, 2019
To: Honorable Mayor and City Commissioners
From: Finance
RE: Notice of Intent Resolution Sanitary Sewer and Water
Supply Revenue Bonds
SUMMARY OF REQUEST: The Notice of Intent Resolution is the first step in
the bonding process. This resolution authorizes the publication of a Notice of Intent
relating to the City’s bonds issued for the purpose of paying all or part of the cost to
acquire, construct, furnish and equip improvements to the Sanitary Sewer and Water
Supply System, including sewer system and water supply system rehabilitation and
replacement of existing sewer and water lines, together with pump station
improvements and treatment plant improvements. The notices indicate the City’s
intent to issue Sanitary Sewer System Revenue bonds not to exceed $8,500,000 and
Water Supply System Revenue bonds not to exceed $2,000,000.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approve the Notices of Intent Resolutions for
Sanitary Sewer System Revenue Bonds not to exceed $8,500,000 and Water Supply
System Revenue Bonds not to exceed $2,000,000.
NOTICE OF INTENT RESOLUTION
SANITARY SEWER SYSTEM REVENUE BONDS, SERIES 2019
(STATE REVOLVING FUND PROJECT)
___________________________________
CITY OF MUSKEGON
County of Muskegon, State of Michigan
___________________________________
Minutes of a regular meeting of the City Commission of the City of Muskegon, County of
Muskegon, State of Michigan, held on the 12th day of March, 2019, at 5:30 p.m., prevailing
Eastern Time.
PRESENT: Members _________________________________________________________
__________________________________________________________________
ABSENT: Members__________________________________________________________
The following preamble and resolution were offered by Member: __________________
and supported by Member: ____________________:
WHEREAS, the City of Muskegon, County of Muskegon, State of Michigan (the “City”),
has determined that it is necessary for the public health, safety and welfare of the City to acquire,
construct, furnish and equip improvements to the Sanitary Sewer System of the City (the
“System”), including sewer system rehabilitation and replacement of existing sewer lines, together
with pump station improvements and all related appurtenances and attachments (the “Project”);
and
WHEREAS, the City has been advised by the Michigan Department of Environmental
Quality (“MDEQ”) that financial assistance to accomplish the acquisition and construction of all
or a portion of the Project is available through the State Revolving Fund (“SRF”) loan program
administered by the MDEQ and the Michigan Finance Authority; and
WHEREAS, the City has made application for participation in the SRF loan program; and
WHEREAS, the Revenue Bond Act, Act 94, Public Acts of Michigan, 1933, as amended
(“Act 94”), provides a means for financing the purchase, acquisition, construction, improvement,
enlargement, extension and repair of public improvements such as the Project through the issuance
of revenue bonds; and
WHEREAS, the issuance of bonds payable from revenues of the System under Act 94 in a
total amount not to exceed Eight Million Five Hundred Thousand Dollars ($8,500,000) (the
“Bonds”) for the purpose of financing all or part of the Project represents the most practical means
to that end; and
WHEREAS, a notice of intent to issue revenue bonds must be published before the issuance
of the Bonds in order to comply with the requirements of Section 33 of Act 94; and
WHEREAS, the City intends at this time to state its intentions to be reimbursed from
proceeds of the Bonds for any expenditures undertaken by the City for the Project prior to issuance
of the Bonds.
NOW, THEREFORE, BE IT RESOLVED THAT:
1. The City Clerk is authorized and directed to publish a notice of intent to issue bonds
in the Muskegon Chronicle, a newspaper of general circulation in the City.
2. The notice of intent shall be published as a display advertisement not less than one
quarter (1/4) page in size in substantially the form attached to this resolution as Exhibit A.
3. The City Commission does hereby determine that the foregoing form of Notice of
Intent to Issue Bonds, and the manner of publication directed, is adequate notice to the electors of
the City and users of the System, and is the method best calculated to give them notice of the City’s
intent to issue the Bonds, the purpose of the Bonds, the security for the Bonds, and the right of
referendum of the electors with respect thereto, and that the provision of forty-five (45) days within
which to file a referendum petition is adequate to insure that the City’s electors may exercise their
legal rights of referendum, and the newspaper named for publication is hereby determined to reach
the largest number of persons to whom the notice is directed.
4. The City makes the following declarations for the purpose of complying with the
reimbursement rules of Treas. Reg. § 1.150-2 pursuant to the Internal Revenue Code of 1986, as
amended:
(a) As of the date hereof, the City reasonably expects to reimburse itself
for the expenditures described in (b) below with proceeds of debt to
be incurred by the City.
(b) The expenditures described in this paragraph (b) are for the costs of
acquiring the Project which were paid or will be paid subsequent to
sixty (60) days prior to the date hereof from the Sanitary Sewer
System funds of the City.
(c) The maximum principal amount of debt expected to be issued for
the Project, including issuance costs, is $8,500,000.
(d) A reimbursement allocation of the expenditures described in (b)
above with the proceeds of the borrowing described herein will
occur not later than 18 months after the later of (i) the date on which
the expenditure is paid, or (ii) the date the related Project are placed
in service or abandoned, but in no event more than three (3) years
after the original expenditure is paid. A reimbursement allocation
is an allocation in writing that evidences the City’s use of the
proceeds of the debt to be issued for the Project to reimburse the
City for a capital expenditure made pursuant to this resolution.
2
5. Miller, Canfield, Paddock and Stone, P.L.C. is hereby confirmed as Bond Counsel
to the City in connection with the issuance of the Bonds.
6. Robert W. Baird & Co., Inc. is hereby confirmed as the registered municipal advisor
to the City in connection with the issuance of the Bonds.
7. All resolutions and parts of resolutions insofar as they conflict with the provisions
of this resolution be and the same hereby are rescinded.
AYES: Members:_________________________________________________________
_________________________________________________________________
NAYS: Members:_________________________________________________________
RESOLUTION DECLARED ADOPTED.
__________________________________________
Ann Marie Meisch, MMC
City Clerk
I hereby certify that the attached 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 the 12th day of March, 2019, and that public notice of said meeting was given
pursuant to and in full compliance with Act No. 267, Public Acts of Michigan, 1976 and that
minutes of the meeting were kept and will be or have been made available as required by said Act.
__________________________________________
Ann Marie Meisch, MMC
City Clerk City Clerk
3
EXHIBIT A
NOTICE TO TAXPAYERS AND ELECTORS OF THE
CITY OF MUSKEGON AND TO USERS OF THE
CITY’S SANITARY SEWER SYSTEM
OF INTENT TO ISSUE REVENUE BONDS AND THE
RIGHT OF REFERENDUM RELATING THERETO
PLEASE TAKE NOTICE that the City Commission of the City of Muskegon, Muskegon
County, Michigan, intends to issue and sell revenue bonds pursuant to Act 94, Public Acts of
Michigan, 1933, as amended, in one or more series in a total amount not to exceed Eight Million
Five Hundred Thousand Dollars ($8,500,000), for the purpose of paying all or part of the cost to
acquire, construct, furnish and equip improvements to the Sanitary Sewer System of the City (the
“System”), including sewer system rehabilitation and replacement of existing sewer lines, together
with pump station improvements and all related appurtenances and attachments.
SOURCE OF PAYMENT OF REVENUE BONDS
THE PRINCIPAL OF AND INTEREST ON THE REVENUE BONDS SHALL BE
PAYABLE from the revenues received by the City from the operations of the Sanitary Sewer
System except as provided below in the case of bonds sold to the Michigan Finance Authority in
connection with the State of Michigan’s State Revolving Fund program. The revenues will consist
of rates and charges billed to the users of the system, a schedule of which is presently on file in
the office of the City Clerk. The rates and charges may from time to time be revised to provide
sufficient revenues to provide for the expenses of operating and maintaining the system, to pay the
principal of and interest on the bonds and to pay other obligations of the system.
BOND DETAILS
THE REVENUE BONDS will be payable in annual installments not to exceed twenty (20)
in number and will bear interest at the rate or rates to be determined at public or private sale but in
no event to exceed such rates as may be permitted by law on the unpaid balance from time to time
remaining outstanding on said bonds.
ADDITIONAL SOURCES OF PAYMENTS FOR BONDS
SOLD TO MICHIGAN FINANCE AUTHORITY
IN THE EVENT THAT THE REVENUE BONDS ARE SOLD TO THE MICHIGAN
FINANCE AUTHORITY, THE CITY MAY PLEDGE FOR THE PAYMENT OF THE BONDS
MONEY RECEIVED OR TO BE RECEIVED BY THE CITY DERIVED FROM IMPOSITION
OF TAXES BY THE STATE AND RETURNED OR TO BE RETURNED TO THE CITY AS
PROVIDED BY LAW, except for money the use of which is prohibited for such purposes by the
State Constitution. The City may enter into an agreement providing for the payment of taxes,
which taxes are collected by the State and returned to the City as provided by law, to the Michigan
Finance Authority or a trustee, and such funds may be pledged for the payment of the revenue
bonds.
IN THE EVENT THAT THE REVENUE BONDS ARE SOLD TO THE MICHIGAN
A-1
FINANCE AUTHORITY, THE CITY MAY PLEDGE ITS LIMITED TAX FULL FAITH AND
CREDIT AS SECURITY FOR THE REVENUE BONDS, IN WHICH EVENT DEBT SERVICE
ON THE BONDS SHALL BE PAYABLE EITHER FROM REVENUES OF THE SYSTEM OR
FROM AD VALOREM TAXES THAT MAY BE LEVIED ON ALL TAXABLE PROPERTY
IN THE CITY, SUBJECT HOWEVER, TO CONSTITUTIONAL, STATUTORY AND
CHARTER TAX RATE LIMITATIONS.
RIGHT OF REFERENDUM
THE REVENUE BONDS WILL BE ISSUED WITHOUT A VOTE OF THE ELECTORS
UNLESS A PETITION REQUESTING SUCH A VOTE SIGNED BY NOT LESS THAN 10%
OF THE REGISTERED ELECTORS OF THE CITY IS FILED WITH THE CITY CLERK
WITHIN FORTY-FIVE (45) DAYS AFTER PUBLICATION OF THIS NOTICE. IF SUCH
PETITION IS FILED, THE BONDS MAY NOT BE ISSUED WITHOUT AN APPROVING
VOTE OF A MAJORITY OF THE QUALIFIED ELECTORS OF THE CITY VOTING
THEREON.
THIS NOTICE is given pursuant to the requirements of Section 33, Act 94, Public Acts of
Michigan, 1933, as amended.
ADDITIONAL INFORMATION will be furnished at the office of the City Clerk upon
request.
Ann Marie Meisch, MMC
City Clerk, City of Muskegon
33086198.1\063684-00046
A-2
NOTICE OF INTENT RESOLUTION
WATER SUPPLY SYSTEM REVENUE BONDS, SERIES 2019
(DRINKING WATER REVOLVING FUND PROJECT)
___________________________________
CITY OF MUSKEGON
County of Muskegon, State of Michigan
___________________________________
Minutes of a regular meeting of the City Commission of the City of Muskegon, County of
Muskegon, State of Michigan, held on the 12th day of March, 2019, at 5:30 p.m., prevailing
Eastern Time.
PRESENT: Members _________________________________________________________
__________________________________________________________________
ABSENT: Members__________________________________________________________
The following preamble and resolution were offered by Member: __________________
and supported by Member: ____________________:
WHEREAS, the City of Muskegon, County of Muskegon, State of Michigan (the “City”),
has determined that it is necessary for the public health, safety and welfare of the City to acquire,
construct, furnish and equip improvements to the Water Supply System of the City (the “System”),
including distribution system improvements, replacement of water mains and service lines and
treatment plant improvements, together with all related appurtenances and attachments (the
“Project”); and
WHEREAS, the City has been advised by the Michigan Department of Environmental
Quality (“MDEQ”) that financial assistance to accomplish the acquisition and construction of all
or a portion of the Project is available through the Drinking Water Revolving Fund (“SRF”) loan
program administered by the MDEQ and the Michigan Finance Authority; and
WHEREAS, the City has made application for participation in the SRF loan program; and
WHEREAS, the Revenue Bond Act, Act 94, Public Acts of Michigan, 1933, as amended
(“Act 94”), provides a means for financing the purchase, acquisition, construction, improvement,
enlargement, extension and repair of public improvements such as the Project through the issuance
of revenue bonds; and
WHEREAS, the issuance of bonds payable from revenues of the System under Act 94 in a
total amount not to exceed Two Million Dollars ($2,000,000) (the “Bonds”) for the purpose of
financing all or part of the Project represents the most practical means to that end; and
WHEREAS, a notice of intent to issue revenue bonds must be published before the issuance
of the Bonds in order to comply with the requirements of Section 33 of Act 94; and
WHEREAS, the City intends at this time to state its intentions to be reimbursed from
proceeds of the Bonds for any expenditures undertaken by the City for the Project prior to issuance
of the Bonds.
NOW, THEREFORE, BE IT RESOLVED THAT:
1. The City Clerk is authorized and directed to publish a notice of intent to issue bonds
in the Muskegon Chronicle, a newspaper of general circulation in the City.
2. The notice of intent shall be published as a display advertisement not less than one
quarter (1/4) page in size in substantially the form attached to this resolution as Exhibit A.
3. The City Commission does hereby determine that the foregoing form of Notice of
Intent to Issue Bonds, and the manner of publication directed, is adequate notice to the electors of
the City and users of the System, and is the method best calculated to give them notice of the City’s
intent to issue the Bonds, the purpose of the Bonds, the security for the Bonds, and the right of
referendum of the electors with respect thereto, and that the provision of forty-five (45) days within
which to file a referendum petition is adequate to insure that the City’s electors may exercise their
legal rights of referendum, and the newspaper named for publication is hereby determined to reach
the largest number of persons to whom the notice is directed.
4. The City makes the following declarations for the purpose of complying with the
reimbursement rules of Treas. Reg. § 1.150-2 pursuant to the Internal Revenue Code of 1986, as
amended:
(a) As of the date hereof, the City reasonably expects to reimburse itself
for the expenditures described in (b) below with proceeds of debt to
be incurred by the City.
(b) The expenditures described in this paragraph (b) are for the costs of
acquiring the Project which were paid or will be paid subsequent to
sixty (60) days prior to the date hereof from the Water Supply
System funds of the City.
(c) The maximum principal amount of debt expected to be issued for
the Project, including issuance costs, is $2,000,000.
(d) A reimbursement allocation of the expenditures described in (b)
above with the proceeds of the borrowing described herein will
occur not later than 18 months after the later of (i) the date on which
the expenditure is paid, or (ii) the date the related Project are placed
in service or abandoned, but in no event more than three (3) years
after the original expenditure is paid. A reimbursement allocation
is an allocation in writing that evidences the City’s use of the
proceeds of the debt to be issued for the Project to reimburse the
City for a capital expenditure made pursuant to this resolution.
5. Miller, Canfield, Paddock and Stone, P.L.C. is hereby confirmed as Bond Counsel
2
to the City in connection with the issuance of the Bonds.
6. Robert W. Baird & Co., Inc. is hereby confirmed as the registered municipal advisor
to the City in connection with the issuance of the Bonds.
7. All resolutions and parts of resolutions insofar as they conflict with the provisions
of this resolution be and the same hereby are rescinded.
AYES: Members:_________________________________________________________
_________________________________________________________________
NAYS: Members:_________________________________________________________
RESOLUTION DECLARED ADOPTED.
__________________________________________
Ann Marie Meisch, MMC
City Clerk
I hereby certify that the attached 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 the 12th day of March, 2019, and that public notice of said meeting was given
pursuant to and in full compliance with Act No. 267, Public Acts of Michigan, 1976 and that
minutes of the meeting were kept and will be or have been made available as required by said Act.
__________________________________________
Ann Marie Meisch, MMC
City Clerk City Clerk
3
EXHIBIT A
NOTICE TO TAXPAYERS AND ELECTORS OF THE
CITY OF MUSKEGON AND TO USERS OF THE
CITY’S WATER SUPPLY SYSTEM
OF INTENT TO ISSUE REVENUE BONDS AND THE
RIGHT OF REFERENDUM RELATING THERETO
PLEASE TAKE NOTICE that the City Commission of the City of Muskegon, Muskegon
County, Michigan, intends to issue and sell revenue bonds pursuant to Act 94, Public Acts of
Michigan, 1933, as amended, in one or more series in a total amount not to exceed Two Million
Dollars ($2,000,000), for the purpose of paying all or part of the cost to acquire, construct, furnish
and equip improvements to the Water Supply System of the City (the “System”), including
distribution system improvements, replacement of water mains and service lines and treatment
plant improvements, together with all related appurtenances and attachments.
SOURCE OF PAYMENT OF REVENUE BONDS
THE PRINCIPAL OF AND INTEREST ON THE REVENUE BONDS SHALL BE
PAYABLE from the revenues received by the City from the operations of the Water Supply
System except as provided below in the case of bonds sold to the Michigan Finance Authority in
connection with the State of Michigan’s Drinking Water Revolving Fund program. The revenues
will consist of rates and charges billed to the users of the system, a schedule of which is presently
on file in the office of the City Clerk. The rates and charges may from time to time be revised to
provide sufficient revenues to provide for the expenses of operating and maintaining the system,
to pay the principal of and interest on the bonds and to pay other obligations of the system.
BOND DETAILS
THE REVENUE BONDS will be payable in annual installments not to exceed twenty (20)
in number and will bear interest at the rate or rates to be determined at public or private sale but in
no event to exceed such rates as may be permitted by law on the unpaid balance from time to time
remaining outstanding on said bonds.
ADDITIONAL SOURCES OF PAYMENTS FOR BONDS
SOLD TO MICHIGAN FINANCE AUTHORITY
IN THE EVENT THAT THE REVENUE BONDS ARE SOLD TO THE MICHIGAN
FINANCE AUTHORITY, THE CITY MAY PLEDGE FOR THE PAYMENT OF THE BONDS
MONEY RECEIVED OR TO BE RECEIVED BY THE CITY DERIVED FROM IMPOSITION
OF TAXES BY THE STATE AND RETURNED OR TO BE RETURNED TO THE CITY AS
PROVIDED BY LAW, except for money the use of which is prohibited for such purposes by the
State Constitution. The City may enter into an agreement providing for the payment of taxes,
which taxes are collected by the State and returned to the City as provided by law, to the Michigan
Finance Authority or a trustee, and such funds may be pledged for the payment of the revenue
bonds.
IN THE EVENT THAT THE REVENUE BONDS ARE SOLD TO THE MICHIGAN
A-1
FINANCE AUTHORITY, THE CITY MAY PLEDGE ITS LIMITED TAX FULL FAITH AND
CREDIT AS SECURITY FOR THE REVENUE BONDS, IN WHICH EVENT DEBT SERVICE
ON THE BONDS SHALL BE PAYABLE EITHER FROM REVENUES OF THE SYSTEM OR
FROM AD VALOREM TAXES THAT MAY BE LEVIED ON ALL TAXABLE PROPERTY
IN THE CITY, SUBJECT HOWEVER, TO CONSTITUTIONAL, STATUTORY AND
CHARTER TAX RATE LIMITATIONS.
RIGHT OF REFERENDUM
THE REVENUE BONDS WILL BE ISSUED WITHOUT A VOTE OF THE ELECTORS
UNLESS A PETITION REQUESTING SUCH A VOTE SIGNED BY NOT LESS THAN 10%
OF THE REGISTERED ELECTORS OF THE CITY IS FILED WITH THE CITY CLERK
WITHIN FORTY-FIVE (45) DAYS AFTER PUBLICATION OF THIS NOTICE. IF SUCH
PETITION IS FILED, THE BONDS MAY NOT BE ISSUED WITHOUT AN APPROVING
VOTE OF A MAJORITY OF THE QUALIFIED ELECTORS OF THE CITY VOTING
THEREON.
THIS NOTICE is given pursuant to the requirements of Section 33, Act 94, Public Acts of
Michigan, 1933, as amended.
ADDITIONAL INFORMATION will be furnished at the office of the City Clerk upon
request.
Ann Marie Meisch, MMC
City Clerk, City of Muskegon
33087596.1\063684-00047
A-2
Date: 3/12/2019
To: Honorable Mayor and City Commissioners
From: Department of Public Works
RE: Amity Bridge – Resolution of Support for Bridge Funding
Application and Commitment for Matching Funds
SUMMARY OF REQUEST:
The Engineering Department would like to apply for bridge preservation funding through
the Michigan Department of Transportation. These funds would be used to remove the
Amity bridge and build a new roadway on fill. The bridge was originally constructed to
cross a railroad line that no longer exists.
Construction is estimated at $415,000, and the city would be required to provide
matching funds of approximately $90,000 plus engineering costs. Funding is available
starting in 2022.
The MDOT application requires a resolution of support and commitment for the
matching funds.
FINANCIAL IMPACT:
$200,000 split over fiscal year 21/22 and 22/23
BUDGET ACTION REQUIRED:
None at this time.
STAFF RECOMMENDATION:
Approve the resolution of support for the bridge preservation fund application and commit to
funding the required match and engineering costs.
Amity Bridge and surrounding area
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City of Muskegon
RESOLUTION
SUPPORT OF
APPLICATION FOR BRIDGE PRESERVATION FUNDS
WHEREAS, Muskegon City Commissioners desire to promote safety and fiscal responsibility for
the residents and visitors of our great city; and
WHEREAS, Muskegon City Commissioners acknowledge there is no longer a need for the bridge
carrying Amity Street over the abandoned railroad; and
WHEREAS, Muskegon City Commissioners agree that removing the Amity bridge and rebuilding
the roadway on fill reduces the future costs of maintenance; and
NOW, THEREFORE LET IT BE RESOLVED, that Muskegon City Commissioners support the
application for federal and state bridge preservation funds and commit to funding required
match dollars for removal of the bridge.
Dated this ______ of _______ 20__.
________________________________
Stephen J. Gawron
Mayor
_________________________________
Ann Marie Meisch
City Clerk
Date: 3/12/2019
To: Honorable Mayor and City Commissioners
From: Department of Public Works
RE: Resolution of Authority to Sign Street Lighting Contracts with
Consumers Energy
SUMMARY OF REQUEST:
Approve the resolution of authority to sign contracts with Consumers Energy to facilitate
modifications to no more than 10 street lights per contract.
FINANCIAL IMPACT:
None
BUDGET ACTION REQUIRED:
None
STAFF RECOMMENDATION:
Approve the resolution.
City of Muskegon
RESOLUTION
AUTHORITY TO SIGN
CONTRACTS WITH CONSUMERS ENERGY FOR STREETLIGHT MODIFICATIONS
WHEREAS, Muskegon City Commissioners desire efficient government; and
WHEREAS, Muskegon City Commissioners understand that modifications to the street lighting
system are needed on a fairly regular basis; and
NOW, THEREFORE LET IT BE RESOLVED, that Muskegon City Commissioners give the Public
Works Director authority to sign street lighting contracts with Consumers Energy for no more
than 10 individual street light modifications.
Dated this ______ of _______ 20__.
________________________________
Stephen J. Gawron
Mayor
_________________________________
Ann Marie Meisch
City Clerk
Date: 3/12/2019
To: Honorable Mayor and City Commissioners
From: Department of Public Works
RE: Authorized Representative for County Wastewater Committee
SUMMARY OF REQUEST:
Approve the resolution to designate the Public Works Director as the authorized
representative to the Muskegon Municipal Wastewater Management Committee.
Retain the City Manager as the alternate representative to this committee. Authorize
both to vote on behalf of the city in all business related to this committee.
FINANCIAL IMPACT:
None
BUDGET ACTION REQUIRED:
None
STAFF RECOMMENDATION:
Approve the resolution.
City of Muskegon
RESOLUTION
DESIGNATE AUTHORIZED REPRESENTATIVE FOR
MUSKEGON MUNICIPAL WASTEWATER MANAGEMENT COMMITTEE
WHEREAS, Muskegon County operates a wastewater system; and
WHEREAS, the City of Muskegon contracts with Muskegon County for wastewater treatment;
and
WHEREAS, the parties served by the Muskegon County Wastewater Management System
entered into a master contract in 2010 which established the Muskegon Municipal Wastewater
Management Committee; and
WHEREAS, the city has appointed a new Public Works Director;
NOW, THEREFORE LET IT BE RESOLVED, that Muskegon City Commissioners designate Leo
Evans, the Public Works Director, as the City’s Authorized Representative to the Muskegon
Municipal Wastewater Management Committee; and
That Muskegon City Commissioners continue the designation of the City Manager, Franklin
Peterson, as the City’s Alternate Representative to the same committee; and
That the Authorized Representative and Alternate Representative are hereby authorized to
vote on the City’s behalf at committee meetings.
Dated this ______ of _______ 20__.
________________________________
Stephen J. Gawron
Mayor
_________________________________
Ann Marie Meisch
City Clerk
Date: 3/12/2019
To: Honorable Mayor and City Commissioners
From: Department of Public Works
RE: Heritage Association Streetlight Easements
SUMMARY OF REQUEST:
Authorize the mayor and clerk to sign easements with various property owners for city
access to the lamp style streetlights in Heritage Village that are located on private
property. Since the city will be responsible for future operation and maintenance,
access to these lights is necessary.
FINANCIAL IMPACT:
None.
BUDGET ACTION REQUIRED:
None.
STAFF RECOMMENDATION:
Authorize the mayor and clerk to sign the easements.
Date: 3/12/2019
To: Honorable Mayor and City Commissioners
From: Department of Public Works
RE: Heritage Village Streetlights
SUMMARY OF REQUEST:
Accept ownership of the 26 lamp style streetlights in Heritage Village. The city will be
responsible for future operation and maintenance. All streetlights have been upgraded,
are in working condition, and have been retrofitted with LED lamps.
FINANCIAL IMPACT:
Cost of future operation and maintenance
BUDGET ACTION REQUIRED:
Account for operation and maintenance in future budgets
STAFF RECOMMENDATION:
Accept ownership of the streetlights.
Commission Meeting Date: February 28, 2019
Date: March 12th, 2019
To: Honorable Mayor & City Commission
From: Community and Neighborhood Services
Department
RE: Request for Authorization to Sign
SUMMARY OF REQUEST: Request to authorize Oneata Bailey, CNS
Director, to sign as an authorized person on behalf of the City.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To approve the authorizing resolution
and direct the Mayor and Clerk to sign the resolution. Oneata Bailey has
been signing agreements on behalf of the City since 2010.
COMMITTEE RECOMMENDATION: None
MUSKEGON CITY COMMISSION
RESOLUTION TO AUTHORIZE ONEATA BAILEY, CNS DIRECTOR, AS
AN AUTHORIZED PERSON TO SIGN AGREEMENTS ON BEHALF OF
THE CITY OF MUSKEGON.
WHEREAS, the City of Muskegon is dedicated to the redevelopment of its
neighborhoods and;
WHEREAS, the City of Muskegon is dedicated to assisting low-moderate
income families;
WHEREAS, the City of Muskegon is dedicated to promoting high quality
affordable single-family housing in the community and;
WHEREAS, the City of Muskegon is dedicated to promoting
homeownership throughout its neighborhoods;
NOW THEREFORE, BE IT RESOLVED that the City Commission hereby
approves Director of Community and Neighborhood Services, Oneata
Bailey, as an authorized person to sign agreements on behalf of the City
of Muskegon.
Adopted this 12th of March, 2019.
Ayes:
Nays:
By ______________________________
Stephen J. Gawron, Mayor
By ______________________________
Ann Marie Meisch, MMC City Clerk
AM_Resolution
COMMISSION MEETING DATE February 26, 2019
Date: March 6, 2019
To: Honorable Mayor and City Commissioners
From: Jeffrey Lewis, Director of Public Safety
RE: Short Term Vacation Rentals – 2nd Reading
_______________________________________________________
SUMMARY OF REQUEST:
The Director of Public Safety requests that the Commission consider approving a stand-alone
ordinance “Short Term Vacation Rentals” regulation. The city has experienced an increase
in short term vacation rentals over the past couple of years. These specialty rental offerings
are not regulated in our current “Housing Rental” ordinance. The ordinance will address
applying and receiving a short term rental certificate and a safety inspection of the unit(s).
Certificate holders will be responsible for insuring tenants are aware and complies with
relevant city ordinances, with a focus on number of occupants, recreational fires, parking,
fireworks, noise, and trash to name a few noted problem areas that staff has experienced in
an attempt to regulate short term rentals. The requested ordinance will improve neighborhood
relations where short term rentals are now located, create a safer and peaceful environment
for short term tenants and residents. The staff recommends the annual fee of the Short Term
Vacation Rentals to be $250.00 annually.
FINANCIAL IMPACT:
Revenue generated will be put into a separate account to be used for expenses and
purchasing amenities for parks.
BUDGET ACTION REQUIRED:
None
STAFF RECOMMENDATION:
Staff recommends approval of the short term vacation rentals ordinance.
1|P a g e
CITY OF MUSKEGON
MUSKEGON COUNTY, MICHIGAN
ORDINANCE NO. ____
THE CITY COMMISSION OF THE CITY OF MUSKEGON HEREBY ORDAINS:
1. Chapter 10, Article VI of the Code of Ordinances of the City of Muskegon,
Michigan, Section 353 is adopted to read as follows:
Sec. 10-353. Short Term Vacation Rentals.
(a) Purpose. This section, concerning the registration of short term vacation rentals in
the city, is enacted to protect the health, safety and welfare of persons in the city by
providing the city with the information necessary to ensure compliance with safety,
structure and fire laws, identify business activities and establishments which affect or
involve matters related to traffic, congestion, occupancy and density of occupancy,
the physical condition of places where persons are renting as short term vacation
rentals, and the enforcement of the law, including local, state and federal laws, rules
and regulations, applying to short term vacation rentals located in the city.
(b) Definitions. In addition to the definitions provided for in Section 10-281, the
following terms shall mean:
Business Activity shall mean the advertising for lease or rental of any structure for
a short term vacation rental.
Family shall mean
(1) An individual or group of two (2) or more persons related by blood, marriage,
or adoption, together with foster children and attendants of the principal
occupants who are domiciled together as a single housekeeping unit in a dwelling
unit; or
(2) A collective number of individuals domiciled together in one (1) dwelling
unit whose relationship is of a continuing, non-transient domestic character and
who are cooking and living as a single nonprofit housekeeping unit. This
definition shall not include any society, club, fraternity, sorority, association, half-
way house, lodge, coterie, organization, group of students, or other individuals
whose domestic relationship is of a transitory or seasonal nature, or is otherwise
1|Page
not intended to be of a permanent nature. Said definition shall not apply in
instances of group care centers or state licensed residential facilities as established
under P.A. 395 of 1976.
(3) Living arrangements which would otherwise comply with the description of a
family shall not constitute a family if the said arrangements have occurred as a
result of commercial or other advertising, or the offering of rooms for rent. Any
financial arrangement, except a true sharing of the expenses of all the facilities in
the single household unit shall be presumed to constitute renting a room or rooms
and to have resulted from the offering of rooms for rent or commercial or other
advertising. Where rooms have been rented, or persons live in the house in
response to commercial advertising or the offering of rooms for rent, the living
arrangement shall be presumed to constitute a rooming house and not a family. A
person claiming the status of family shall have the burden of proof of each of the
elements set forth in the relevant definitions of this ordinance.
Remuneration shall mean the act of paying or compensating a person for use of a
short term vacation rental.
Short term vacation rental means a commercial use which is subordinate to the
residential use of a dwelling unit, in which a tenant is allowed to lease the
dwelling unit or a portion of the dwelling unit for periods of less than one
calendar month but more than 24 hours in return for remuneration. The rental of
transitional houses operated by a charitable organization, group homes such as
nursing homes, and adult foster care homes, substance abuse rehabilitation clinics,
mental health facilities and other similar health care related facilities shall not be
considered short term vacation rentals.
Short term vacation rental unit means a dwelling unit used for at least one short
term rental within a calendar year.
(c) Requirements. No person shall operate or conduct, maintain or manage or advertise
for lease a short term vacation rental establishment without first obtaining a certificate
of short term vacation rental registration in the manner provided in this chapter and if
the owner has more than three short term vacation rental establishments a business
registration.
(d) Application procedure. An applicant for a certificate of short term vacation rental
registration shall make application to the Director of Public Safety or his designee on
a form prescribed by the Director of Public Safety or his designee, which shall
contain at least the following information:
(1) The full names, business addresses and residence addresses of the owners,
proprietors, officers and local addresses of all owners, proprietors and officers and
managers of the applicant's business; the names and addresses of each officer, if
2|Page
the applicant is a corporation; the names and addresses of all partners, if a
partnership; and the names and addresses of all members, if a limited liability
corporation.
(2) A list of all assumed, trade or firm names under which the registered applicant
intends to do business.
(3) The location of the short term vacation rental.
(4) The name, telephone number, address, e-mail address and cell phone number
for text messages of the person to notify in the event of an emergency.
(e) Terms. Each certificate of short term vacation rental registration issued pursuant to
this chapter shall be for a duration not to exceed one year and shall terminate on April 30,
following issuance thereof.
(f) Renewal. Any certificate of short term vacation rental registration issued under this
section must be renewed in the manner set forth in this article on or before April 30 of
each year of existence of the short term vacation rental. Applications for renewal of a
certificate of short term vacation rental registration shall be filed, considered and issued
in the same manner as an original application.
(g) Fees. The fee for a certificate of short term vacation rental registration and the fees
for annual renewals thereof shall be set from time to time by resolution of the city
commission. Registration fees not paid within 30 days of the due date will be subject to a
late fee of $15.00 per month for each month up to a maximum of six months, at which
time all fees and late fees are due. Municipal civil infraction violation may be issued
each day after May 31 until the registration is submitted and fees are paid.
The City may use the fee only for expenses relating to issuance of the certificate short
term vacation rental registration and the purchasing of amenities located in the City’s
parks likely to be used by tenants of short term vacation rentals. Any fees not expended
within the fiscal year from collection shall be held in a separate City account which may
only be used for amenities or located in the City’s parks likely to be used by tenants of
short term vacation rentals.
(h) Display. Any certificate of short term vacation rental registration issued pursuant to
this Section shall be prominently displayed in the business establishment on the back of
the front door or the back of the door at the main entrance.
(i) General conditions for issuance and continuing in effect.
(1) Compliance with other governmental requirements; preemption. No certificate
of short term vacation rental registration shall be issued or continued in effect for
any person who has failed to pay the Excise Tax on Business of Providing
Accommodations pursuant to MCL Section 141.861. The fact that a person has
3|Page
received a license or permit from the United States, the state, the county, or other
governmental entity for the short term vacation rental shall not exempt such
person from the requirements of this chapter.
(2) Compliance with all other laws. A holder of a certificate of short term
vacation rental registration must be in continuing compliance with all local,
county, state and federal laws relating to rental properties as a condition of
issuance or continued effect of a certificate of registration under this chapter.
(3) Conditions and activities on the premises. The holder of a certificate of short
term vacation rental registration shall maintain a clean, neat and orderly
establishment, take reasonable steps to provide security on the premises, and
prevent unlawful conduct thereon. The holder of the certificate of short term
vacation rental registration shall be responsible for insuring that everyone staying
at the short term rental unit is aware of and complies with all relevant city
ordinance, especially relating to recreational fires, parking, fireworks, noise and
trash.
(4) Payment of amounts owed city. All personal property taxes and outstanding
debts to the city, including, without limitation, 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, but not including
real property or income taxes, due at the time of issuance or renewal of a
certificate related to the business activity or establishment must be paid in full.
(5) Standards in chapter. Each holder of a certificate of short term vacation rental
registration shall comply with the requirements found in additional applicable
Sections of this Chapter.
(j) Additional conditions for issuance.
(1) Compliance with applicable codes and regulations. Any person applying for or
holding a certificate of short term vacation rental registration under this Section
shall demonstrate to authorized city personnel that the business establishment
registered under this chapter complies with all construction and fire and safety
codes of the city, all applicable health and safety laws, zoning laws and
environmental laws and regulations of the city, the county, the state, or the United
States, and including all provisions of this chapter. Further, affiant shall comply
with special conditions promulgated pursuant to Section 10-353(j)(2).
(2) Special conditions. In connection with the registrations pursuant to this
Section, regulations which are particularly adapted and appropriate to the business
activity or establishment so registered shall be promulgated by the city, approved
by the city commission, and attached to or printed upon the registration issued.
Such attachments and adoptions shall not be required for codes, ordinances and
other regulations of general applicability which are in effect from time to time in
4|Page
the city and which affect the registered business. These regulations shall be
uniform for all short term vacation rentals.
Campers, recreational vehicles, tents or any other temporary housing shall be
prohibited at a short term vacation rental, except the structure inspected and
permitted by the City. Non-compliance with this sub-section may result in a civil
infraction for the renter, owner and/or revocation of the certificate of short term
vacation rental registration.
(k) Inspections. Every business establishment registered shall afford authorized
personnel from the city full access to the premises for the purpose of inspection to
determine compliance with the registration which has been issued, for determination in
connection with the application for the issuance of the registration, and to determine
continuing compliance with all ordinances, codes and statutes applicable to the premises,
the business establishment or the business activity. In the case of a proposed revocation
or suspension, the holder of the registration shall afford reasonable opportunity for
inspection by the city.
(l) Denial, revocation, suspension and procedure for revocation or suspension. Holders
of a certificate of short term vacation rental registration may be denied, suspended, or
revoked by the Director of Public Safety and the business registration by the city clerk,
both of whom shall follow the procedures provided for in City Code Section 50-43.
2. This Ordinance is to become effective ten (10) days after adoption.
This ordinance adopted: February 12, 2019
Ayes:
Nays:
First Reading:
Second Reading:
CITY OF MUSKEGON
By: ___________________
Ann Marie Meisch, MMC
City Clerk
5|Page
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 12th day of February,
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.
6|Page
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 10, Article VI, by adopting Section 10-353 of the
Muskegon City Code, summarized as follows:
INSERT SUMMARY
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
7|Page
Date: 3/12/2019
To: Honorable Mayor and City Commissioners
From: Department of Public Works
RE: Public Hearing for DWRF Project Plan
SUMMARY OF REQUEST:
Conduct a public hearing related to the DWRF Project Plan that was posted for public
comment on February 10th, 2019 and approve the Resolution to adopt the plan.
FINANCIAL IMPACT:
None
BUDGET ACTION REQUIRED:
None
STAFF RECOMMENDATION:
Conduct public hearing and approve the resolution.
A RESOLUTION ADOPTING A FINAL PROJECT PLAN
FOR WATER SYSTEM IMPROVEMENTS AND
DESIGNATING AN AUTHORIZED PROJECT REPRESENTATIVE
WHEREAS, the City of Muskegon recognizes the need to make improvements to its existing water
distribution system; and
WHEREAS, the City of Muskegon authorized Prein&Newhof to prepare a Project Plan, which
recommends improvements is to provide a more reliable and resilient water distribution system, replace
aging water mains and lead service lines, which can cause elevated lead concentrations in homes. The
improvements will be in areas that are already being disturbed by construction as part of wastewater system
improvements being conducted in 2019 and 2020; and
WHEREAS, said Project Plan was presented at a Public Hearing held on March 12, 2019 and all public
comments at the hearing or written comments submitted during the public comment period have been
considered and addressed.
NOW THEREFORE BE IT RESOLVED, that the City of Muskegon formally adopts said Project Plan
and agrees to implement the selected FY 2019 projects based on the selected alternatives for those
projects.
BE IT FURTHER RESOLVED, that the Director of Public Works, a position currently held by Leo
Evans, is designated as the authorized representative for all activities associated with the project
referenced above, including the submittal of said Project Plan as the first step in applying to the State of
Michigan for a Drinking Water Revolving Fund Loan to assist in the implementation of the selected
alternative.
Yeas:
Nays:
I certify that the above Resolution was adopted by the City Commission of the City of Muskegon on
March 12, 2019.
BY: Ann Meisch, City Clerk
______________________________________________________________________________
Signature Date
(EQP 3530 REV 01/2015)
Commission Meeting Date: March 12, 2019
Date: March 7, 2019
To: Honorable Mayor and City Commissioners
From: Planning & Economic Development
RE: Public Hearing - Request to Establish an Obsolete Property District
– 1937 Lakeshore Dr
SUMMARY OF REQUEST:
Pursuant to Public Act 146 of the Michigan Public Acts of 2000, Ghezzi Investments, LLC has
requested the establishment of an Obsolete Property District for their property at 1937
Lakeshore Dr. The establishment of the Obsolete Property District would allow them to apply
for an Obsolete Property Rehabilitation Exemption Certificate.
FINANCIAL IMPACT:
None
BUDGET ACTION REQUIRED:
None
STAFF RECOMMENDATION:
Staff recommends approval of the creation of the district.
COMMITTEE RECOMMENDATION:
None
1
CITY OF MUSKEGON
MUSKEGON COUNTY, MICHIGAN
RESOLUTION NO. _____
A resolution establishing an Obsolete Property Rehabilitation District.
The City Commission of the City of Muskegon hereby RESOLVES:
Recitals
A. The City of Muskegon has been designated as a qualified local government unit for the purpose
of establishing Obsolete Property Rehabilitation Districts and approving Applications for Obsolete
Property Rehabilitation Exemption Certificates.
B. The area located in the land described in this resolution is known to the City Commission and is
clearly characterized by the presence of obsolete commercial property, and the land and
improvements are obsolete commercial property.
C. Notice has been given by certified mail to the owners of all real property within the proposed
Obsolete Property Rehabilitation District and a hearing has been held offering an opportunity to all
owners and any other resident or taxpayer of the City to appear and be heard. Said notice was
given at least ten (10) days before the hearing.
NOW, THEREFORE, THE CITY COMMISSION RESOLVES:
1. That the property described in this resolution and proposed as an Obsolete Property
Rehabilitation District is characterized by obsolete commercial property.
2. That the obsolete commercial property, the subject of this resolution, as is described in
Attachment A.
3. That the City Commission hereby establishes an Obsolete Property Rehabilitation District on the
lands and parcels set forth in the attached description.
This resolution passed.
Ayes __________________________________________________________________
Nays __________________________________________________________________
CITY OF MUSKEGON
BY: __________________________________
Stephen J. Gawron
Mayor
ATTEST: __________________________________
Ann Meisch
Clerk
2
CERTIFICATION
This resolution was adopted at a meeting of the City Commission, held on March 12, 2019. The meeting
was properly held and noticed pursuant to the Open Meetings Act of the State of Michigan, Act 267 of the
Public Acts of 1976.
CITY OF MUSKEGON
By ___________________________
Ann Meisch, City Clerk
3
ATTACHMENT A: PROPERTY DESCRIPTION
CITY OF MUSKEGON REVISED PLAT OF 1903 SWLY 55 FT LOT 2 & NELY 22 FT LOT 3
BLK 627
4
Commission Meeting Date: March 12, 2019
Date: March 6, 2019
To: Honorable Mayor and City Commissioners
From: Planning & Economic Development
RE: Public Hearing - Request to issue an Obsolete Property
Certificate – Ghezzi Investments, LLC
SUMMARY OF REQUEST:
Pursuant to Public Act 146 of the Michigan Public Acts of 2000, Ghezzi Investments, LLC
has requested the issuance of an Obsolete Property Certificate for their property located at
1937 Lakeshore Dr. Total capital investment for this project is estimated to be $1,100,000
and will include the addition of nine apartments and four commercial spaces. The
applicant is eligible for a 12-year abatement because of the amount of investment.
FINANCIAL IMPACT:
If an Obsolete Property Certificate is issued, the property taxes would be frozen at the pre-
rehabilitated rate for the duration of the certificate.
BUDGET ACTION REQUIRED:
None
STAFF RECOMMENDATION:
Staff recommends approval of the Obsolete Property Rehabilitation Exemption Certificate
COMMITTEE RECOMMENDATION:
None
CITY OF MUSKEGON
MUSKEGON COUNTY, MICHIGAN
RESOLUTION NO.
A resolution approving the application for an Obsolete Property Rehabilitation Exemption Certificate by
Ghezzi Investments, LLC.
The City Commission of the City of Muskegon hereby RESOLVES:
Recitals
A. The City Commission has received an Application for an Obsolete Property Rehabilitation Exemption
Certificate from Ghezzi Investments, LLC, to apply to the improvements located in an Obsolete
Property Rehabilitation District established by previous resolution. All items described under
“Instructions” (a) through (f) of the application for Obsolete Property Rehabilitation Exemption
Certificate have been provided to the City of Muskegon, the Qualified Local Government Unit,
by the applicant.
B. The City of Muskegon is a qualified local governmental unit as determined by STC Bulletin No. 9 of
2000, dated July 12, 2000.
C. An Obsolete Property Rehabilitation District in which the application property is located was
established after a hearing on March 12, 2019.
D. The taxable value of the property proposed to be exempt, plus the aggregate taxable value of
properties already exempted under PA 146 of 2000 and under PA 198 of 1974, does not exceed five
percent (5%) of the total taxable value of the City of Muskegon.
E. In the event it is determined that the said taxable values do exceed five percent (5%), the City
Commission determines further that the said exceedance will not have the effect of substantially
impeding the operation of the City of Muskegon or impairing the financial soundness of any affected
taxing units.
F. This resolution of approval is considered by the City Commission on March 12, 2019, after a public
hearing as provided in Section 4(2) of PA 146 of 2000. The hearing was held on this date.
G. The applicant, Ghezzi Investments, LLC is not delinquent any taxes related to the facility.
H. The exemption to be granted by this resolution is for twelve (12) years and no extensions will be
granted.
I. The City Commission finds that the property for which the Obsolete Property Rehabilitation
Exemption Certificate is sought is obsolete property within the meaning of Section 2(h) of Public Act
146 of 2000 in that the property, which is commercial, is functionally obsolete. The City has received
from the applicant all the items required by Section 9 of the application form, being the general
description of the obsolete facility, a general description of the proposed use, a description of the
general nature and extent of the rehabilitation to be undertaken, a descriptive list of fixed building
equipment that will be part of the rehabilitated facility, a time schedule for undertaking and complete
the rehabilitation, and statement of the economic advantages expected from the exemption.
J. Commencement of the rehabilitation has not occurred before the establishment of the district.
K. The application relates to a rehabilitation program that when completed will constitute a rehabilitated
within the meaning of PA 146 of 2000 and will be situated within the Obsolete Property Rehabilitation
District established by the City under PA 146 of 2000.
L. Completion of the rehabilitated facility is calculated to and will, at the time of the issuance of the
Certificate, have the reasonable likelihood to increase commercial activity and create employment; it
will revitalize an urban area. The rehabilitation will include improvements aggregating more than ten
percent (10%) of the true cash value of the property at the commencement of the rehabilitation.
M. The City Commission determines that the applicant shall have twenty-four (24) months to complete
the rehabilitation. It shall be completed by March 12, 2021, or two years after the Certificate is
issued, whichever occurs later.
N. That notice pursuant to statute has been timely given to the applicant, the assessor for the City of
Muskegon, representatives of the affected taxing units and the general public.
NOW, THEREFORE, THE CITY COMMISSION RESOLVES:
1. Based upon the statements set forth in, and incorporating the recitals to this resolution, the City
Commission hereby approves the application filed by Ghezzi Investments, LLC for an Obsolete
Property Rehabilitation Exemption Certificate, to be effective for a period of twelve (12) years and no
extensions will be granted;
2. BE IT FURTHER RESOLVED, that this resolution of approval relates to the property set forth in
Attachment A, the legal description containing the facilities to be improved;
3. BE IT FURTHER RESOLVED, that, as further condition of this approval, the applicant shall comply
with the representations and conditions set forth in the recitals above and in the application material
submitted to the City.
This resolution passed.
Ayes: __________________________________________________________________
Nays: __________________________________________________________________
CITY OF MUSKEGON
BY: __________________________________
Stephen J. Gawron
Mayor
ATTEST: __________________________________
Ann Meisch
Clerk
CERTIFICATE
This resolution was adopted at a meeting of the City Commission held on March 12, 2019. The meeting was
properly held and noticed pursuant to the Open Meetings Act of the State of Michigan, Act 267 of the Public
Acts of 1976.
CITY OF MUSKEGON
By ___________________________
Ann Meisch, City Clerk
ATTACHMENT A: PROPERTY DESCRIPTION
CITY OF MUSKEGON REVISED PLAT OF 1903 SWLY 55 FT LOT 2 & NELY 22 FT LOT 3 BLK 627
Date: March 6, 2019
To: Honorable Mayor and City Commissioners
From: Ann Marie Meisch, City Clerk
RE: Recommendation for Annual Renewal of Liquor
Licenses
SUMMARY OF REQUEST: To adopt a resolution recommending non-
renewal of those liquor license establishments who are in violation of
Section 50-146 and 50-147 of the Code of Ordinances for the City of
Muskegon. These establishments have been found to be in non-
compliance with the City Code of Ordinances and renewal of their liquor
licenses should not be recommended by the City Commission. If any of
these establishments come into compliance by March 12, 2019, they will
be removed from this resolution, and recommendation for their renewal
will be forwarded to the Liquor Control Commission.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Adoption of the resolution.
RESOLUTION RECOMMENDING STATE WITHHOLD
RENEWAL OF LIQUOR LICENSES FOR CODE
VIOLATIONS
Resolution #
THE CITY COMMISSION OF THE CITY OF MUSKEGON DO RESOLVE, that whereas, the
attached business establishments in the City of Muskegon have liquor licenses and are found to be
in violation of Article V, Section 50-146 and 50-147 of the Code of Ordinances of the City of
Muskegon.
AND WHEREAS, a hearing was held on March 12, 2019, before the City Commission to allow
such licensees an opportunity to refute the determination of the City Commission that such
establishments are in non-compliance with the City Code of Ordinances and renewal of their liquor
licenses should not be recommended by the City Commission; and
WHEREAS, an affidavit of mailing of Notices of Hearing and Notification of Non-Compliance to
City Standards to the licensees has been filed;
NOW, THEREFORE, BE IT RESOLVED, that the City Commission of the City of Muskegon
hereby recommends that these liquor licenses not be approved for renewal, and a copy of this
Resolution be sent to the State Liquor Control Commission. If any of these establishments come
into compliance by March 14, 2017, they will be removed from this Resolution.
Approved and adopted this 12th day of March, 2019.
AYES:
NAYS:
By:_________________________________
Ann Marie Meisch, MMC
City Clerk
AGENDA ITEM NO. _______________
CITY COMMISSION MEETING __________________________
TO: Honorable Mayor and City Commissioners
FROM: Frank Peterson, City Manager
DATE: March 6, 2019
RE: Marsh Field Passport Grant Application
SUMMARY OF REQUEST:
Marsh Field is in need of a number of improvements. Muskegon Baseball has asked that the City
submit a passport grant application to address some of those needs, including: universally-accessible
dugouts, play equipment, walkway improvements, accessible picnic seating, and drinking fountains.
The total cost of the improvements are estimated at $300,000. The City’s match would be $150,000.
This request is being filed under public hearing to allow for public comment/input, although there is
not a formal public hearing requirement in the grant process.
FINANCIAL IMPACT:
None.
BUDGET ACTION REQUIRED:
None at this time.
STAFF RECOMMENDATION:
To approve the resolution authorizing the submission of the grant application and the financial
commitment of $150,000 to match the funds received; local funds to be expenses from the Public
Improvement Fund in FY 2019-20.
COMMITTEE RECOMMENDATION:
RECREATION PASSPORT GRANT PROGRAM
RESOLUTION OF AUTHORIZATION – LOCAL UNIT OF GOVERNMENT WITHOUT DONATED FUNDS
2019-21(E)
WHEREAS, The City of Muskegon supports the submission of an application titled, “Marsh Field Park
Improvements” to the Recreation Passport Grant Program for improvements including Universally
Accessible Dugouts, Swings, Merry-Go-Round, Walkways, Picnic tables and Drinking Fountains at Marsh
Field Park in the City of Muskegon; and,
WHEREAS, the proposed application is supported by the Community’s 5-Year Approved Parks and
Recreation Plan on November 24, 2015.
WHEREAS, the City of Muskegon is hereby making a financial commitment to the project in the amount of
$150,0000.00 matching funds, in cash and/or force account; and,
NOW THEREFORE, BE IT RESOLVED that the City of Muskegon hereby authorizes submission of a
Recreation Passport Grant Program Application for $150,000, and further resolves to make available its
financial obligation amount of $ 150,000 of a total $300,000.00 project cost, during the 2020-2021 fiscal
year.
AYES: Rinsema-Sybenga, Turnquist, Johnson, Gawron, Hood, and Warren
NAYES: None
ABSENT: German
MOTION APPROVED.
I HEREBY CERTIFY, that the foregoing is a Resolution duly made and passed by City of Muskegon City
Commission at their regular meeting held on March 12, 2019, at 5:30 p.m., with a quorum present.
Dated:
Clerk
34 IC1956 (Rev. 11/19/2018)
AGENDA ITEM NO. _______________
CITY COMMISSION MEETING __________________________
TO: Honorable Mayor and City Commissioners
FROM: Frank Peterson, City Manager
DATE: March 6, 2019
RE: LC Walker Arena – Lumberjacks Lease
SUMMARY OF REQUEST:
City staff is requesting approval of the attached lease with the Muskegon Lumberjacks. This is a long-
term lease with multiple extension opportunities. A financial analysis sheet is attached to the lease
to assist commissioners in quickly identifying the key financial changes in the new agreement.
FINANCIAL IMPACT:
BUDGET ACTION REQUIRED:
None at this time.
STAFF RECOMMENDATION:
To authorize the Clerk and Mayor to sign the lease.
COMMITTEE RECOMMENDATION:
None.
SHARED USE AGREEMENT
This shared use agreement (the “Agreement”) is entered into effective July 1, 2019, between the
City of Muskegon, a municipal corporation, of 933 Terrace Street, Muskegon, Michigan 49440 ("City")
and WC Hockey, LLC, a Michigan limited liability company, of 13854 Simone Drive, Shelby Township,
Michigan 48315 (“Lumberjacks”) (collectively, the “Parties”) with reference to the following facts:
A. The City of Muskegon is the owner of the L.C. Walker Arena and Conference Center
located at 470 West Western Avenue, Muskegon, Michigan 49440 (“Arena”).
B. The City desires to permit the Lumberjacks shared use of a portion of the Arena for use
in connection with the operation of a USHL junior hockey franchise commonly known as the “Muskegon
Lumberjacks”, or any other hockey organization that the Lumberjacks become affiliated with, in
accordance with the terms and conditions of this Agreement.
B. The City acknowledges that the Lumberjacks are the primary user of the Arena and that
the Lumberjacks have the first rights to the Arena for all hockey games and hockey related events, and as
otherwise set forth herein, such that wherever reasonably possible any discrepancies or conflicts with the
Lumberjack games, including playoff games, will be resolved in favor of the Lumberjacks.
In consideration of the mutual covenants and obligations set forth herein, the Parties agree
as follows:
1. Shared Space. City agrees to permit the Lumberjacks to use, and Lumberjacks agree to
jointly occupy with the City, those portions of the Arena described and identified on attached Exhibit A
(collectively, the “Shared Space”), subject to the terms and conditions of this Agreement. Attached as
Exhibit B is a diagram that sets forth those portions of the Shared Space that shall be used exclusively by
Lumberjacks and the City and those that will be shared with the City and other occupants of the Arena,
and the terms according to which such shared use shall be permitted to occur, it being the understanding
of the parties that the Lumberjack’s use of the Shared Space shall take precedence over the City and other
occupants of the Arena.
Notwithstanding the identification of the current Leased Space on Exhibit A, it is understood and
agreed that the City may in the future relocate certain portions of the Shared Space (e.g. training room,
Lumberjacks offices). The Lumberjacks are amenable to such relocations provided the relocated portions
of the Shared Space are comparable to the current spaces being occupied by the Lumberjacks. In any
event, the parties agree to work together in good faith to determine the location and physical layout of
such relocated portions of the Shared Space.
In consideration of payment of Rent and the Facility Fee (as defined herein below), in addition to
the Shared Space, the City agrees to provide Lumberjacks the following:
• All ice time for all Lumberjack hockey preseason games, home games, playoff games
and all practices for home and visiting USHL teams (collectively referred to as
“Lumberjacks Hockey Dates”)
• Lumberjacks shall have first priority regarding the scheduling of exhibition games,
playoff games and two camps held during the year.
• Lumberjacks shall host, at no additional cost, a Tryout Camp for the period of five
consecutive days during May or June of each year this Agreement is in effect. If the
Lumberjacks agree to host any other events (such as hockey tournaments, additional
camps) requiring ice time, the cost will be $185 per hour, subject to increasing the
amount by the Price Escalator in Paragraph 4 A.
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• Lumberjacks shall provide to City the dates of all preseason games and home games no
later than July 10 for the following 12 months.
• Lumberjacks will have access to the ice time for scheduled practice times each day from
10:00 a.m. to 11:30 a.m. and again from 2:00 p.m. to 3:45 p.m. with the understanding
that the Lumberjacks will end practice on non-game days by 3:45 p.m., which will allow
the City to generate additional revenue.
• On game days, use of the ice shall be in accordance with the standards established for all
USHL teams by the League Office: (a) no on-ice events may be scheduled or permitted
during the two hours before any scheduled Lumberjack home hockey game; (b) with
permission of Arena Manager, use of ice for a “morning skate” for the Lumberjacks and
its visiting opponent.
• For every home hockey game, beginning four hours before the game, Lumberjacks shall
have exclusive use of the parking lot adjacent to the rear of the Arena (“Lot A”) for any
purpose within their sole discretion. The Lumberjacks agree to reserve six (6) spaces in
Lot A for use by the sports rehabilitation clinic that will occupy the Annex, during the
clinic’s normal business hours.
• Lumberjacks will be granted ten (10) days per year at no charge under this Agreement to
produce hockey or non-hockey related special events (“Additional Events”).
Notwithstanding the waiver of any rental fee for Additional Events, the Lumberjacks
shall be responsible to pay for all agreed upon costs and expenses related to “set up” the
Arena to conduct each Additional Event (e.g. take down glass, cover ice, etc).
• During the first year of this Agreement, the Lumberjacks have agreed to provide certain
game night management operations for all Lumberjack Hockey Dates. Such management
shall be limited: ushers, ticket takers, security, game operations, video and PA services,
off-ice officials and the Box office personnel and staffing (“The Game Night
Operations”). In return for providing The Game Night Operations, the City will reduce
the team’s annual rent by $40,000 per year, which will be prorated among the regular
season hockey games and the Minimum Gross Rent in Paragraph 4(c) will be adjusted
accordingly. The $40,000 annual amount will be subject to increase starting in year 3 of
this Agreement pursuant to the Price Escalator referenced in Paragraph 4(a) below. In the
event the Lumberjacks elect to no longer provide The Game Night Operations, it shall
provide written notice to the City. Notwithstanding such notice, the Lumberjacks agree to
continue to provide The Game Night Operations through the end of the then-current
USHL hockey season.
• The City will provide all operations management for the Additional Events, except for
those management services that will be provided by the Lumberjacks, which are limited
to the following: ushers, ticket takers, security, game operations, video and PA services,
off-ice officials and the Box office personnel and staffing.
• City agrees that the Lumberjacks shall continue to be permitted to access and use the
Peak Performance Center in the same manner as is currently exercised. In the event the
City elects to change the current use of the Peak Performance space into a non-
fitness/rehab/training facility, the City agrees to provide the Lumberjacks, with no
interruption of access to and use of a training facility, a suitable space within the Arena to
perform off-ice training commensurate with that currently used by the Lumberjacks. The
time/space requirements of the Lumberjacks include:
1) Monday – Wednesday’s 10-11am & 11am -12 pm and shooting throughout the day
2) Thursdays and Fridays extra work and shooting throughout the day
3) Friday, Saturday & Sundays Pre-Game Stretch and post-game cool down
4) Stretching area for future camps
5) Usage as needed when approved by Peak Staff member
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2. RP Hockey Shared Use Agreement. The City has entered into a shared use agreement
with the Reeths Puffer High School Hockey team (“RP Hockey”), which will soon be coming up for
renewal. The City and the Lumberjacks will mutually work together to allow the RP Hockey team to
renew its agreement as long as none of the provisions of that document conflict with the Lumberjacks
requirements as set forth in this Agreement.
3. Term. The term of this Agreement shall be two years beginning July 1, 2019 – June 30,
2021 with the Lumberjacks, at their sole discretion, having three (3), five-year options (each an “Option
Term”). Each option must be exercised on or before six month’s before the expiration of the then-current
term.
4. Rent/Facility Fee. During the Term and any Option Term, Lumberjacks shall pay the
City an annual sum of the following amounts, which amount shall be paid on a quarterly basis:
a. Base Rent. $125,000 per year, which covers the use of all space as specified in
Paragraph 1. This Base Rent will increase two (2) percent during the First Option period – years
3-7 to $127,500; four-percent during the Second Option Period (years 8-12) for a total of
$132,600 and an additional four-percent during the Third Option Period (years 13-17) for a total
of $137,800. Many of the terms in this Agreement are subject to the Base Rent increase above
of two percent, four percent and four percent and will be referred to in this Agreement as the
“Price Escalator.”
b. Ticket Surcharge. In addition to Base Rent, the Lumberjacks agree to allow the
City to implement a ticket surcharge of $1.00 per each ticket sold. It is the understanding of the
Parties that during the First option period this ticket surcharge will be increased to $1.25 per
each ticket sold and during the Second and Third option period, the ticket surcharge will be
limited to $1.50 per ticket sold. It is the mutual understanding of the parties that the ticket
surcharge will increase to $2.00 per ticket sold after the completion of the last year of the Third
option period.
c. Minimum Gross Revenues. The City and the Lumberjacks agree that the
Lumberjacks will guarantee a minimum of $225,000 in Gross Revenue for each year of the
Shared Use Agreement. Gross Revenue includes all monies received by the City with respect to
the Shared Use Agreement, including but not limited to Base Rent, Ticket Surcharge,
Concessions, Merchandise, Signage and any and all other sponsorship or promotional
opportunities related to the Arena that may arise in the future. Any Minimum Gross Revenue
deficiency will be calculated as of June 30th of each year and will be paid within forty-five (45)
days of being determined.
5. Co-Licensee under MLCC License. The City is the owner of a certain Class C License
(No.1962-2015) issued by the Michigan Liquor Control Commission (“MLCC”) for the sale of alcohol
within the Arena (“License”). The MLCC has previously approved the Lumberjacks being added as a co-
licensee of the License. It is the mutual desire of the Parties that the Lumberjacks be dropped as a co-
licensee, Lumberjacks agree to immediately prepare and file with the MLCC all necessary forms and
documents in order to effectuate the “drop” of Lumberjacks as a co-licensee with the City. At all times
during the pendency of the “drop” of Lumberjacks as co-Licensee, Lumberjacks and City shall keep the
License in good standing with the MLCC.
6. City’s Obligations as to Shared Space. To the extent that the City rents the Arena or
hosts an event on the ice surface, it shall not interfere with the Lumberjacks access to or use of the ice for
any Lumberjack hockey games, practices, scheduled hockey related events or any other approved non-
hockey events conducted by Lumberjacks pursuant to separate agreements with the City.
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7. Repairs and Maintenance.
a. City’s Requirement for Repair and Maintenance. At all times during the Term or
Additional Year, the City, at its sole expense, shall be responsible to keep and maintain
and repair the Arena and Shared Space, and every part thereof, including, but not limited
to, the ice floor, home team and visiting team locker rooms, seating, common areas, the
parking lots serving the Arena, all Zambonis and the Zamboni area, structural,
nonstructural, roof, interior and exterior portions of the buildings, the boiler, the
dehumidification system, lighting and electrical, sound, plumbing and other
improvements located upon the Arena, in good and sanitary order, condition and repair,
and at all times suitable for the uses of the Arena and Shared Space contemplated by
Lumberjacks and the City in entering into this Agreement, except for reasonable use and
wear thereof. As such, the City shall guarantee the facility is in good working order.
b. Cure Period if Repair and/or Maintenance Obligations are Not Met. If the City does
not perform any of its Repair and/or Maintenance Obligations, upon a seven (7) day
written cure period, the team shall be permitted to remedy any deficient repair or
maintenance issue and may, at its option, deduct any reasonable expenses from the rent
and adjust the Minimum Gross Revenue set forth in paragraph 4c accordingly. In the
event any particular repair or maintenance is deemed by the Lumberjacks, in its
reasonable discretion, to be an emergency that cannot wait for the expiration of the seven
(7) day cure period, it may undertake to make such repair or perform such maintenance
and shall be permitted to deduct such expenses incurred from rent as set forth above.
c. Cure Period for Other Defaults by the City. In addition to Repair and Maintenance
Obligations, the City has other requirements that it must meet with respect to the Shared
Agreement, for example, quality of concessions and merchandise. With respect to any
Default by the City relating to any provisions of the Shared Agreement, The Lumberjacks
may use the Cure provision set forth in Paragraph 7b.
8. Utilities. During the Term or Additional Year, the City shall maintain in its own name
all gas, heat, light, power, water and sewer supplied to Lumberjacks at the Arena.
9. Concessions and Merchandise.
a. The City will sell all concessions during the Lumberjack Hockey Dates and the
Additional Events and will provide the Lumberjacks with twenty-percent (20%)
of the gross revenue. The City will also market and manage the team store,
which includes but is not limited to Lumberjacks merchandise. The City will
provide Lumberjacks with twenty-percent (20%) of the gross revenue from all
Jack’s merchandise sold. For both the Concession and Merchandise, it is
important to the parties that the Lumberjacks are able to maintain their quality
and team reputation by insuring the quality of concessions and merchandise, the
amount of merchandise inventory levels and the pricing and quality of any Jack’s
merchandise and concessions. As such, the parties shall mutually agree in
advance to the saleable concessions, merchandise levels, product quality and
pricing of any Jack’s merchandise sold by the City.
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b. For all Lumberjack Hockey Dates and Additional Events, the City, through its
concession and/or Merchandise manager, will provide a detailed report of the
revenue generated for the Lumberjacks and make such report available within
twenty-four (24) hours of the event and payments to the Lumberjacks will be
made within seven (7) days of the event.
10. Box Office. The Lumberjacks will manage all box office operations.
11. Parking. As part of the Base Rent, the City will guarantee 1,000 parking spaces within
1,500 feet of the Arena on Lumberjacks Hockey Dates (“Lumberjacks Parking Area”). Additionally, Lot
A is included in the Base Rent on game days starting no later than 3:00 p.m. Of the 1,000 parking
spaces, any Lumberjack season ticket holder issued a parking pass shall not be charged for parking within
the Lumberjacks Parking Area. Of the remaining 1,000 parking spaces not allocated to Lumberjack
season ticket holders, the City and the Lumberjacks must mutually agree in advance upon any price to be
charged to such customers, as well as the split of any revenues generated therefrom.
12. Sponsorship and Advertising.
a. Shared Sponsorships. The Lumberjacks and the City agree to split 50/50 any and
all net revenue from the 9 sponsorship packages included in Exhibit C. This split also includes
any additional sponsorship or promotional opportunities related to the Arena that may arise in the
future.
b. Jack’s Advertising Revenue. All Advertising revenue for the Lumberjacks
Hockey Dates and Additional Events, including game night signage, on-ice advertising, including
but not limited to dasher boards, center-ice scoreboard and Zamboni, SHALL BE solely the
revenue of the Lumberjacks.
13. Building Access. The City shall provide Lumberjacks keys to access the Arena using the
rear doors along Shoreline Drive, and keys to access to the Shared Space. The Arena manager for the
City will retain a key to the Shared Space should authorized personnel need access.
14. Capital Construction and Arena Modifications.
a. Capital Construction. Subject to the mutual agreement of the City and the
Lumberjacks as to certain improvements to the Stage, Club Loge and moving the Videoboard, the
Lumberjacks agree to pay the upfront costs of such improvements. However, if the Lumberjacks
extend this Agreement to the First Option Period (years 3-7), the City agrees to reimburse the
Lumberjacks its payment of the upfront costs at a rate of twenty (20) percent in each of the years
3-7.
b. Arena Modifications. The City agrees that it will not make any modifications to
the Arena without the express written consent of the Lumberjacks, such consent to not be
unreasonably withheld. However, the condition for agreeing to any arena modifications must
include that the modifications will not adversely impact the Lumberjacks’ use and enjoyment of
the Shared Space for its intended purpose. Prior to any arena modifications the City and
Lumberjacks shall work together in good faith to confirm that such modifications will not have
any adverse impact on the Lumberjacks.
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c. Additional Lease Space, Future Restaurants, Pubs or Retail Space. The City agrees
that it will not engage in any additional leases, Shared Use Agreements or rental arrangements
that impact the Shared Space without the mutual agreement of the City and the Lumberjacks to
the extent there is any impact whatsoever on the Lumberjacks use of the Shared Space for the
purposes set forth in this Agreement (e.g. the issue of patrons of tenants having access to the
Arena in order to view Lumberjack’s hockey games and any Additional Events or conversely the
issue of patrons of the Lumberjacks having access to the tenant’s venue.) The City anticipates
leasing space for two additional restaurants along the Western Ave. side of the Arena. To the
extent this occurs, the City and the Lumberjacks shall work together prior to the execution of the
restaurant leases to ensure that they contain provisions that protect Lumberjacks from being
adversely impacted by such tenancy; to the extent this occurs, the City will use reasonable efforts
to ensure that the Lumberjacks are not materially and adversely impacted by such tenancy,
provided, however, that a commercially reasonable decrease in concession sales due to a
restaurant opening in the Arena shall not be deemed to be such an impact.
d. Rad Dad’s Lease. The City acknowledges that the Rad Dad rental agreement will need
to be amended, or a new agreement will need to be executed in connection with Rad Dad’s being
added as a co-licensee to the MLCC License. The City agrees that it shall work with Rad Dad’s
and the Lumberjacks to ensure that any such amended or new lease shall contain provisions that
address the issues set forth in Paragraph 14(c) above.
15. Rules & Regulations. It is acknowledged and agreed by the Parties hereto that the rules
and regulations that are posted in and about the Arena, as amended from time to time by the City, shall be
incorporated into this Agreement and Lumberjacks agree to abide by them in its use of the Arena.
16. Insurance. Lumberjacks shall, at its sole cost and expense, obtain and maintain liability
insurance necessary to protect Lumberjacks and the City from all claims for damages to property and
persons related to the use of the Arena and the Shared Space, including but not limited to commercial
general liability insurance. Such liability insurance shall provide limits of not less the One Million Dollars
($1,000,000.00) per occurrence and Two Million Dollars ($2,000,000.00) in the aggregate for each bodily
injury, property damage and personal injury. The City shall be named as an additional insured in any such
policy, and Lumberjacks shall furnish to The City certificates of insurance or other appropriate
documentation (including evidence of renewal of insurance) evidencing all coverage required hereunder.
Such certificates or other documentation shall include a provision whereby the City must receive not less
than thirty (30) days notice prior to any coverage cancellation or any material change in coverage. Any
such cancellation or material change in coverage shall not relieve Lumberjacks of the continuing
obligation to maintain insurance coverage in accordance with this Agreement.
17. Default.
a. By Lumberjacks. The violation of any term, provision or condition of this
Agreement by Lumberjacks, including the failure to pay any amounts owed to the City shall be an
event of default. Notwithstanding the foregoing, prior to declaring a default, the City agrees to
provide Lumberjacks with a written notice of default, specifying the nature of the default, and
what actions are required to be taken by Lumberjacks to cure the default. Lumberjacks shall have
three (3) business days thereafter to cure the default, provided Lumberjacks shall have such
extended period as may be required beyond the three (3) business days if the nature of the cure is
such that it reasonably requires more than three (3) business days and Lumberjacks commence
the cure within the three (3) business day period and thereafter continuously and diligently
pursues the cure to completion. In such event, the City may suspend Lumberjacks’ continued use
of the Arena and Shared Space until such time as Lumberjacks cures the default. Upon the
expiration or early termination of this Agreement, Lumberjacks shall be permitted to remove all
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personal property and removable equipment owned by Lumberjacks from the Arena, which
removal shall occur within a reasonable time (not to exceed 14 days) following expiration or
termination. In the event of a non-monetary default and a failure of Lumberjacks to cure as
provided above, the City may elect to terminate this Agreement as its sole remedy. In the event
of a monetary default, in addition to terminating this Agreement, the City shall be permitted to
initiate legal proceeding to recover any monies owed under this Agreement. In such event, the
prevailing party in any litigation or other legal proceedings arising under this Agreement shall be
entitled to reimbursement from the non-prevailing party for reasonable attorneys’ fees and
expenses.
b. By the City. The violation of any term, provision or condition of this Agreement
by the City, including the failure to perform any of its obligations under this Agreement, shall be
an event of default. Notwithstanding the foregoing, prior to declaring a default, Lumberjacks
agrees to provide the City with a written notice of default, specifying the nature of the default,
and what actions are required to be taken by the City to cure the default. The City shall have
three (3) business days thereafter to cure the default, provided the City shall have such extended
period as may be required beyond the three (3) business days if the nature of the cure is such that
it reasonably requires more than three (3) business days and the City commences the cure within
the three (3) business day period and thereafter continuously and diligently pursues the cure to
completion. In the event that the City fails to cure the default, and such default substantively and
materially interferes with the use of the Shared Space for the purpose agreed to by the City and
Lumberjacks, Lumberjacks are permitted to undertake any actions necessary to cure the default,
and if such cure requires the expenditure of money, Lumberjacks shall be entitled to deduct said
amount from Rent or Facility Fee next coming due to the City under this Agreement.
Notwithstanding for foregoing, in the event that the City receives a notice of default from
Lumberjacks and in good faith disputes that both the existence of the default and its obligation to
effectuate the requested cure, the failure to immediately undertake the requested cure shall not
provide the grounds to permit Lumberjacks from curing the default and deducting monies
expended from Rent or Facility Fee next coming due to the City under this Agreement. The
prevailing party in any litigation or other legal proceedings arising under this Agreement shall be
entitled to reimbursement from the non-prevailing party for reasonable attorneys’ fees and
expenses.
18. City Participation. For each year of the Shared Use Agreement, including any Option
periods, the City agrees to purchase a $20,000 advertising package which includes 15 season tickets in the
Jacks Club, a Party Deck on Opening Night for 75 people, 150 tickets for the Boys and Girls Club and a
Party Deck with 100 tickets on Saturday night in January, which event shall include the Jack’s Meal Deal
and the team wearing mutually agreed upon City Specialty Jerseys. The above prices are subject to the
Price Escalator in Paragraph 4A.
19. Scoreboard and Personal Property. In consideration of the long-term partnership
between the Lumberjacks and the City, the Lumberjacks agree to relinquish all rights to the video board
and scoreboard, which will become the sold property of the City. The City must maintain the video board
and scoreboard and keep them in good working condition, otherwise the Lumberjacks may maintain the
system and charge the City for any such deficient conditions. Additionally, the City acknowledges that
nothing contained in this Agreement is “personal property” to the Lumberjacks and that the City will be
responsible for all personal property taxes incurred as part of the Shared Space set forth in paragraph 1.
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20. Assignment. Lumberjacks may assign this Agreement, or any right or obligation under
this Agreement to any third party approved by the USHL Board of Commissioners to operate a USHL
junior hockey franchise or any other hockey organization that the Lumberjacks become affiliated with. In
the event that the City no longer owns, leases or manages the Arena, the City agrees to assign this
Agreement to any successor owner, lessee or manager of the Arena, each of whom shall agree to assign
this Agreement to any future successor owner, lessee or manager. The City shall provide written notice of
any such assignment to Lumberjacks, identifying the new party.
21. Amendment and Waiver. This Agreement may be amended only in writing signed by
both parties. The provisions of this Agreement may be waived only in writing signed by the party waiving
compliance. The failure of any party at one time to require performance of any provision of this
Agreement shall not affect the right of that party at a later time to enforce the provision. No waiver by any
party of a breach of any provision in any one or more instances shall be deemed to be an amendment or a
continuing waiver of the provision.
22. Applicable Law. This Agreement shall be governed by and construed in accordance
with the laws of the State of Michigan.
23. Jurisdiction and Venue. Any dispute under this Agreement shall be resolved in
accordance with the laws of the State of Michigan, including with respect to jurisdiction and venue.
24. Severability. If any provision of this Agreement is held to be contrary to law or
otherwise unenforceable, in whole or in part, then such provision shall be modified and amended to the
extent necessary to be enforceable to the maximum extent permitted by applicable law and if such
modification or amendment is not possible, then the offending provision shall be severed from and shall
not affect the remaining terms of this Agreement, which shall be interpreted as if the unenforceable
provisions were absent from this Agreement.
25. Title and Headings. Titles and headings are inserted in this agreement for referenced
purposes only and must not be used to interpret the Agreement.
26. Entire Agreement. This Agreement contains the entire understanding among the Parties
hereto with respect to the subject matter hereof, and supersedes all prior and contemporaneous
agreements and understandings, inducements, or conditions, express or implied, oral or written, except as
herein contained. The express terms hereof control and supersede any course of performance or usage of
the trade inconsistent with any of the terms hereof.
The Parties hereto have executed this Agreement on the dates set forth below.
Lumberjacks – WC Hockey, LLC City – City of Muskegon
By: ________________________________ By: ________________________________
Name: Daniel L. Israel Name: Franklin Peterson
Title: Manager Title: City Manager
Date: March ___, 2019 Date: March ___, 2019
By: ________________________________
Name: Ann Meisch
Title: City Clerk
Date: March ___, 2019
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Exhibit A
Shared Space
Lumberjacks Shared Space Areas:
• Lumberjacks locker room
• offices (need to identify offices including Sales Office, GM Office, Existing Coaches Offices, and
Finance and Accounting Office (collectively, “Office Space”)
• changing Room next to Assistant Coaches Office. This room is used by the coaching staff to
change clothes
• Merchandise Store (should be the name) gift shop area during Lumberjack home games. The
City shall permit the placement of temporary kiosk stations
• laundry facilities
Other Occupants Shared Space Areas:
• non-exclusive use of the shower room
• training room, subject to the Lumberjacks priority of usage for educational purposes, viewing
game film, team meetings, etc. consistent with its historical use
• weight/workout room and puck shooting training area (RP Hockey to use for a fee that shall be
paid to and retained by Lumberjacks at rates set forth in the RP Lease). It is understood that the
current location of the shooting area may need to change. The City agrees to cooperate in finding
a suitable alternative location should this occur
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Exhibit B
Diagram of Shared Space
10
Exhibit C
Annual Sponsorships
11
Financial Summary of City’s Revenue under Shared Use Agreement
1. Rent/Facility Fee. During the Term and any Option Term, Lumberjacks shall pay
the City the following amounts:
a. Annual Base Rent.
i. Years 1 and 2: $125,000
ii. Years 3 thru 7 (2% increase): $127,500
iii. Years 8 thru 12 (4% increase): $132,600
iv. Years 13 thru 17(4% increase): $137,800
b. Ticket Surcharge.
i. Years 1 and 2: $1.00 per each ticket sold
i. Years 3 thru 7: $1.25 per each ticket sold
ii. Years 8 thru 12: $1.50 per each ticket sold
iii. Years 13 thru 17: $1.50 per each ticket sold
iv. After Year 17: $2.00 per each ticket sold
c. Shared Sponsorships. The City will receive 50% of all net revenue from the 9
sponsorship packages set forth on Exhibit C to the Agreement, PLUS 50% of
any and all other sponsorship or promotional opportunities related to the
Arena that may arise in the future.
d. Minimum Gross Revenues. The Lumberjacks guaranty that it will pay the
City each year a minimum of $225,000 in Gross Revenue (includes Base Rent,
Ticket Surcharge, Concessions, Merchandise, Signage any and all other
sponsorship or promotional opportunities related to the Arena that may
arise in the future.)
2. Additional Ice Rentals. If the Lumberjacks host other events other than those
already agreed upon to be included within Base Rent requiring ice time (e.g. hockey tournaments,
additional camps), the City will be paid $150 per hour, subject to the 2% increase in the first option
term, a 4% increase in the second option term and a 4% increase in the third option term.
3. WC Hockey Gift of Equipment. As partial consideration for entering into the
Agreement, the Lumberjacks have agreed to assign to the City any and all of its interest in the
following assets, the total value at cost of which is approximately $77,000.
• One (1) EPISTAR Indoor Single-Face Full-Colors video 10mm SMD LED
Display, including controller software, Display Cabinets, and 300 Series
Sender Box (Big Screen Video Board)
• Electronic devices and cords for Big Screen
• CO2 Cannons
• Additional fitting hoses for tanks, tank manifold
• Portable Broadcast Mixer
• Lighting Project - 10 Vari lite bulbs/installation/repairs
• Conduit, Fittings, wires, breaker and materials to repair lighting fixtures
• Video Board and Ref Review Equipment
• Video Board computer w/3 year warranty
• 4 - Samsung 55" TV for Suites/Club Area
• 5 TV's 32 inch for area (mike is getting information for me)
3. Projections.
Actual 2017-2018 2019-2020 2021-2022 2023-2024
Rent $125,000 $125,000 $125,000 $125,000
Concessions $296,000 $325,000 $325,000 $325,000
Merchandise $0 $ 50,000* $ 50,000 $ 50,000
City Surcharge $0 $ 70,000** $ 70,000 $ 70,000
Sponsorship $0 $ 62,000*** $ 93,000 $ 124,000
______________ ______________ ______________ ______________
$421,000 $632,000 $663,000 $694,000
* This is based on the City receiving 20% of the sale of Lumberjacks merchandise and
the City retaining 100% of all other merchandise sales.
** This number does NOT include the surcharges received by the City for Additional
Events that the Lumberjacks conduct (10 per year) and the surcharge received by the City
for all other ticketed events conducted at the Arena by the City (soccer, football, concerts,
etc.)
*** Projected annual revenue for the 9 sponsorship opportunities set forth on Exhibit C
of the Agreement will not all be realized in the first year (2019-2020) (e.g. Naming Rights).
Therefore, these figures conservatively reflect 50% of potential in the first year, 75% in the
second year and100% in the third year. The goal will be to reach full sponsorship potential
as soon as possible.
AGENDA ITEM NO. _______________
CITY COMMISSION MEETING __________________________
TO: Honorable Mayor and City Commissioners
FROM: Frank Peterson, City Manager
DATE: March 6, 2019
RE: Purchase Agreement - 880 First Street, 731 Yuba Street, 205 East Muskegon Ave, 287 East
Muskegon Ave, and 225 Eastern Ave
SUMMARY OF REQUEST:
City staff is seeking permission to enter into a new purchase agreement with Core Development, as
follows:
1. Acquisition of the structure at 880 First Street for $150,000
2. Acquisition of the former farmers market site for $50,000
3. Closing on both parcels must take place on or before June 15, 2019
4. Closing is contingent on buyer’s receipt of the following incentives:
a. City-approved Commercial Rehabilitation Certificate for 10 years
b. State-issued Community Revitalization Program incentive equal to 20% of eligible
expenses.
c. City-approved Brownfield Reimbursement Plan to reimburse 100% of eligible
expenses after City’s eligible expenses are fully reimbursed.
d. Deployment of at least $1,850,000 for the development of a food and manufacturing
incubation center on the ground floor of the building.
FINANCIAL IMPACT:
None.
BUDGET ACTION REQUIRED:
None at this time.
STAFF RECOMMENDATION:
To authorize the clerk and mayor to sign a purchase agreement with the approved terms for city-owned
properties located at 880 First Street and 731 Yuba Street.
COMMITTEE RECOMMENDATION:
AGENDA ITEM NO. _______________
CITY COMMISSION MEETING __________________________
TO: Honorable Mayor and City Commissioners
FROM: Frank Peterson, City Manager
DATE: March 7, 2019
RE: Purchase Agreement and Grant Agreement – West Shoreline Correctional Facility
SUMMARY OF REQUEST:
As part of the City’s effort to expand job-creation opportunities, staff is recommending purchase of
approximately 60 acres from the State Land Bank. The site formerly housed the West Shoreline
Correctional Facility. The funds necessary to satisfy the purchase agreement will be drawn from the
Public Improvement Fund. Staff is also seeking approval of a $4 Million enhancement grant from the
State of Michigan prior to closing to offset the purchase costs; these funds will be deposited ito the
Public Improvement Fund.
FINANCIAL IMPACT:
$2,160,000.00.
BUDGET ACTION REQUIRED:
None.
STAFF RECOMMENDATION:
To approve the purchase agreement and grant agreement, and authorize the City Clerk and Mayor to
sign.
COMMITTEE RECOMMENDATION:
PURCHASE AGREEMENT FOR REAL PROPERTY
(West Shoreline Correctional Facility)
This Purchase Agreement for Real Property (this “Agreement”), is by and between the
State of Michigan (“State”), by its Land Bank Fast Track Authority (the “Seller”), a public body
corporate and politic, whose address is 105 W. Allegan Street, Lansing, Michigan 48933, and the
City of Muskegon (the “Purchaser”), a Michigan municipal corporation, whose address is 933
Terrace, Muskegon, MI 49440-1397.
Recitals
A. Seller is the owner of certain property commonly known as the West Shoreline
Correctional Facility, generally south of the Muskegon and Brooks Correctional Facilities, east of
DeBaker Street and north of E. Broadway Avenue, consisting of approximately 61.96 acres as
shown and more particularly described in the attached Exhibit A (the "Property").
B. The Seller and Purchaser desire to establish the terms, covenants and conditions upon
which the Seller will sell and the Purchaser will purchase the Property.
NOW, THEREFORE, in consideration of the mutual covenants and agreements contained
in this Agreement, receipt of which is severally acknowledged, Seller and Purchaser hereby agree
as follows:
1. Transaction. Seller agrees to sell and Purchaser agrees to purchase the Property
upon the terms and conditions set forth in this Agreement (the “Purchase Transaction”).
2. Purchase Price; Earnest Money, Closing.
a. The price for the Property is ONE MILLION THREE HUNDRED NINETY-
EIGHT THOUSAND THREE HUNDRED TWENTY-THREE AND 50/100 DOLLARS
($1,398,323.50). At Closing, Purchaser shall pay to Seller the sum of One Million Three Hundred
Ninety-Eight Thousand Three Hundred Twenty-Three and 50/100 Dollars ($1,398,323.50) (the
“Purchase Price”). Purchaser shall not be entitled to any reimbursement from Seller or the
Michigan Department of Corrections for demolition costs, environmental assessments, or other
costs or expenses related to the Property incurred by Purchaser pre- or post-closing. The Purchase
Transaction shall be consummated within the earlier of 120 days after the Effective Date (defined
below) or 30 days after the end of the Inspection Period set forth in Section 5 of this Agreement
(the “Closing”).
b. Upon execution of this Agreement, the Purchaser will deliver immediately an earnest
money deposit to the Title Company (defined below) in the amount of FIFTY THOUSAND
($50,000) DOLLARS (the “Earnest Money”). The Earnest Money will be credited to the
Purchase Price at Closing. Purchaser will not be entitled to any interest earned on the Earnest
Money.
c. Upon the waiver or expiration of the Inspection Period described in Section 5, all
Earnest Money shall become non-refundable as liquidated damages in the event of default that is
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not cured in accordance with Section 15(b) or failure by Purchaser to perform any of its obligations
under the terms of this Agreement.
d. The Purchase Price was determined by obtaining an appraisal of the Property for
Two Million One Hundred Sixty Thousand and 00/100 Dollars ($2,160,000.00). The parties then
subtracted from the appraised value the Purchaser’s share of new fencing of Three Hundred
Ninety-Three Thousand Six Hundred Seventy-Six and 50/100 Dollars ($393,676.50); the cost of
demolition estimated at Three Hundred Fifty Thousand and 00/100 Dollars ($350,000.00); the
estimated cost of the environmental assessment of the Property for Fifteen Thousand and 00/100
Dollars ($15,000.00); and title insurance and closing costs of Three Thousand and 00/100 Dollars
($3,000.00) (collectively “Credits”). At Closing, as a condition precedent to Seller’s obligation to
Close on the Purchase Transaction, Purchaser shall pay to the Michigan Department of Corrections
in immediately available funds Three Hundred Ninety-Three Thousand Six Hundred Seventy-Six
and 50/100 Dollars ($393,676.50) for Purchaser’s share of the fencing cost. Additionally, post-
closing Purchaser shall provide Seller with documentation showing the cost and proof of payment
for demolition and environmental assessments on the Property. If Purchaser pays less than the
Credits above in the aggregate, then Purchaser shall immediately pay to Seller the difference
between its expenditures for these items and the Credits. Such repayment obligation shall survive
the Closing.
3. Effective Date. This Agreement shall be effective from and after the date of the last
signature to this Agreement by Seller or Purchaser (the “Effective Date”).
4. Title and Survey.
a. Title Insurance; Permitted Exceptions. The Purchaser may obtain a commitment (the
“Commitment”) to be issued by Transnation Title Agency in the amount of the Purchase Price (the
“Title Company”), which agrees to furnish to the Purchaser at or within a reasonable period
following the Closing, an ALTA Owner’s Policy of Title Insurance (the “Policy”) for the Property.
Seller agrees to provide copies of its organizational documents and such reasonable affidavits,
including but not limited to an owner's affidavit (without warranty or indemnification) and a non-
foreign affidavit, and other documentation as may be reasonably required by the Title Company
to enable it to issue the Policy to the Purchaser without standard exceptions. Purchaser shall pay
for the owner’s Policy at Closing.
b. Title Objections. The Title Company may update the Commitment anytime or from
time to time before the date of Closing. Copies of all Commitments shall be provided to Seller
along with copies of all supporting documents. If the Commitment identifies exceptions or
matters of record affecting the condition of title, the Purchaser shall have the right to specifically
object to any or all of them (the "Objections") by written notice to Seller within sixty (60) days
after the Effective Date. Seller shall respond to the Purchaser’s Objections within ten (10)
business days, specifying those Objections that it will cure and those that it is unwilling to cure.
Seller shall have up to thirty (30) days from the date first notified of the Purchaser’s Objections
in which to cure the Objections, either by discharging or otherwise correcting them of record and
causing the Title Company to delete them from the Commitment or to cause the Title Company
to expressly insure over them, as the case may be. Seller has no obligation or duty to correct or
cure any Objections or defects in title. If the Objections cannot be corrected by that date or Seller
refuses to do so, the Purchaser may (i) terminate this Agreement and immediately receive a refund
of any deposit or advance paid by Purchaser in which event the parties shall have no further
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obligation or liabilities hereunder other than those that specifically survive the termination of this
Agreement, or (ii) close on the Purchase Transaction in which event the Objections and all other
exceptions from the Commitment shall be included as Permitted Exceptions (the "Permitted
Exceptions") on the Quit Claim Deed at Closing.
c. Survey. The Purchaser may obtain an ALTA/ACSM survey of the Property prepared
by a registered land surveyor licensed in the State of Michigan which shall be certified to the
Seller (the "Survey") and may object to any condition of the Property shown on the Survey
("Survey Objections") by written notice to Seller within sixty (60) days of the Effective Date.
Seller shall respond to the Purchaser’s Survey Objections within ten (10) business days,
specifying those Survey Objections that it will cure and those that it is unwilling to cure. Seller
has no obligation or duty to correct or cure any Survey Objections. If the Survey Objections
cannot be corrected by the expiration of the Inspection Period, as defined below, or Seller refuses
to do so, the Purchaser may (i) terminate this Agreement and immediately receive a refund of any
deposit or advance paid by Purchaser in which event the parties shall have no further obligation
or liabilities hereunder other than those that specifically survive the termination of this
Agreement, or (ii) close on the Purchase Transaction. The legal description set forth in Exhibit
A shall be the legal description conveyed on the Quit Claim Deed at Closing.
5. Inspections and Due Diligence. From and after the Effective Date Purchaser and/or
its agents, at Purchaser’s sole cost and expense, with twenty-four (24) hour prior notice to and
consent of Seller, which shall not be unreasonably delayed or withheld, upon providing Seller with
such proof of insurance as Seller shall reasonably require, including pollution liability coverage
provided by Purchaser’s environmental consultants, and subject to suitable arrangements being
made with the tenants for access to their portions of the Property, shall have 90 days (the
"Inspection Period”), to enter the Property to take soil borings, perform bearing tests, perform
surveying activities, and environmental evaluations, and conduct such other investigations and
pursue such other due diligence as the Purchaser deems appropriate. Seller consents and agrees
that the Purchaser, and its employees, designees, agents, and contractors, may enter upon the
Property for such purposes and subject to the conditions set forth above during the Inspection
Period. Seller agrees to furnish to the Purchaser, without cost to the Purchaser, within five (5)
business days after the Effective Date, copies of all investigative reports, tests results, surveys,
environmental reports, and all other reports, assessments, or findings, in Seller’s possession or
under Seller’s control, pertaining to the Property, including but not limited to the physical
condition of the land, as well as any and all matters affecting or which could affect the Purchaser’s
ownership or use of the Property.
Purchaser hereby releases Seller of any and all liability associated with entry and
inspection, and warrants that it will comply with applicable regulations regarding environmental
and other matters. Purchaser shall provide Seller with such proof of insurance as Seller shall
reasonably require, including pollution liability coverage provided by its environmental
consultant. Purchaser shall restore the Property and/or any damage to the Property occasioned by
Purchaser’s inspection activities.
At any time prior to the expiration of the Inspection Period, Purchaser may provide written
notice to the Seller that Purchaser is not satisfied with the condition of the Property and that
Purchaser is terminating this Agreement, in which case the parties shall have no further obligation
or liabilities hereunder other than those that specifically survive the termination of this
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Agreement. If the Agreement is not terminated prior to the expiration of the Inspection Period,
then Purchaser shall be deemed to have accepted the condition of the Property and Closing shall
occur within thirty (30) days. Additionally, all Earnest Money shall be immediately non-
refundable other than due to a default by Seller.
6. Possession. Possession of the Property shall be delivered to Purchaser at the Closing
free and clear of all tenancies, occupancies and rights of possession.
7. Proration of Expenses.
The expenses for the Property will be prorated to the date of Closing, with the date of
Closing attributed to Purchaser. All invoices that have been received by Seller will be paid before
the date of Closing. Invoices for all services and contracts for the Property covering the time
period before Closing and the date of Closing that have not been received by Seller before Closing
will be prorated based on good-faith estimates using the invoices for those services and contracts
for the immediately prior invoicing period and the prior year’s invoicing period for the period of
time including the date of Closing. For invoices paid before Closing that cover a period of time
after Closing, Seller will receive a credit at Closing for the amount paid for the period of time
after Closing. For invoices that will be received after Closing to cover a period of time before
Closing, Purchaser will receive a credit at Closing for the amount that will be paid after Closing
for the period of time before Closing.
8. Obligations of Seller Prior to Closing. During the period commencing on the
Effective Date and ending on the date of Closing, Seller shall, in addition to such other duties and
obligations set forth in this Agreement:
a. Not enter into any agreement, lease, use or occupancy arrangement, easement, or
other agreement with respect to possession or use of the Property without the Purchaser's prior
written consent.
b. Not offer or market the Property for sale or lease, or create, grant or accept any
agreement for the sale or lease of all or any portion of the Property without the Purchaser's prior
written consent.
c. Not create or suffer any right, claim, lien, or encumbrance of any kind whatsoever
on all or any portion of the Property.
d. Pay all typical utility bills, insurance premiums and other charges applicable to all or
any part of the Property before any penalty for nonpayment shall accrue.
e. Furnish to the Purchaser within ten (10) business days after the Effective Date and
thereafter within ten (10) business days after receipt by Seller any and all notices of proposed
assessments, and notices of any proposed action under or violation of any law, statute, ordinance,
rule or regulation affecting all or any portion of the Property.
f. Pay in full on or before the Closing Date all typical utility charges with respect to the
Property and all typical charges for public water and sewer service for the Property with respect
to the Property which became due and payable during the twelve (12) months preceding the
Closing Date.
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g. Maintain and on the Closing Date deliver the Property in substantially the same
condition as on the Effective Date.
9. Casualty Loss or Condemnation. Seller shall give the Purchaser prompt notice of
any material damage to or destruction of all or any part of the Property or of the institution of any
proceedings for condemnation thereof.
a. If the Property suffers material damage prior to Closing, then the Purchaser may (i)
terminate this Agreement, or (ii) accept the Property in its then condition and proceed with the
Closing.
b. If the Property is subject to a material taking by any public authority other than the
Purchaser prior to the Closing, then the Purchaser may (i) terminate this Agreement and receive
an immediate refund of any deposit or advance paid by Purchaser, or (ii) accept the Property in its
then condition, without a reduction in the Purchase Price, and receive an assignment of all of
Seller's rights to any condemnation award payable by reason of such taking, including without
limitation any payments in respect thereof, theretofore, or thereafter received by Seller. If the
Purchaser elects to accept the Property, Seller shall not compromise, settle, or adjust any claims to
such award without the Purchaser's prior written consent.
10. Representations of Seller. Seller represents to the Purchaser, as of the Effective
Date and as of the Closing Date, that:
a. Corporate Authority. Seller (i) a public body corporate and politic created by Section
15 of the Land Bank Fast Track Act, MCL 124.765, (ii) has complete and full authority to execute
this Agreement and will have at Closing complete and full authority to convey to the Purchaser
good and marketable fee simple title to the Property subject to the Permitted Exceptions, (iii) will
execute and deliver any reasonable documents, instruments, and agreements including, but not
limited to, affidavits and certificates necessary to consummate the transaction contemplated herein,
and (iv) will take all additional action that is reasonably necessary or appropriate to effect and
facilitate the consummation of the sale and purchase transaction contemplated herein, as may be
reasonably required by the Title Company.
b. No Lien Rights. To the best of Seller’s knowledge, Seller has not contracted for any
services or entered into any other agreements which could bind the Purchaser, as a successor in
interest with respect to the Property. No work has been performed or is in process or contemplated
and no materials have been or are to be furnished which might provide the basis for construction
or other liens against all or any portion of the Property, except for routine maintenance and repair
for which Seller will pay in full before Closing. To the best of Seller’s knowledge, Seller has not
been notified of and has no knowledge pertaining to any possible existing or future improvements
that might create an assessment against any part of the Property.
As used herein, “to the best of Seller’s knowledge” means the conscious awareness of
facts or other information, without any investigation or inquiry of any kind, of any director or staff
member of Seller who has actively participated in the process of preparing and negotiating this
Agreement. It specifically does not include any information or facts known by the Department of
Technology, Management and Budget (“DTMB”) not explicitly disclosed to Seller.
c. Other Property Rights or Interests. No party is in possession of all or any portion of
the Property, whether as a lessee or a tenant at sufferance, nor has any person or entity been granted
a license or other right to use all or any part of the Property for any purpose. Seller will not further
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sell, encumber, convey, or assign, offer or contract to sell, encumber, convey, assign, pledge, or
lease all or any part of the Property or restrict the use of all or any part of the Property or take or
cause to be taken any action in conflict with this Agreement at any time after Seller’s acceptance
hereof. Seller additionally hereby represents that no rights-of-first refusal or similar agreements
exist in connection with the Property which would in any way interfere with the Purchaser's ability
to purchase the Property as provided herein or which are in any way in contravention of the spirit
and intent of this Agreement.
d. No Legal Actions or Impediments. Seller is not a party to or bound by any contract
or agreement of any kind or whatsoever, written or verbal, which might affect the Property.
Neither the entering into of this Agreement nor the consummation of the transaction contemplated
hereby will constitute or result in a violation or breach by Seller of any judgment, order, writ,
injunction, or decree issued against or imposed upon it or contract to which it is a party or will
result in a violation by Seller of any applicable law, order, rule, or regulation of any governmental
authority. To the best of Seller’s knowledge, there is no action, suit, proceeding or investigation
pending which would become a cloud on the title to the Property or any portion thereof or which
questions the validity or enforceability of the transaction contemplated by this Agreement or any
action taken pursuant hereto in any court or before or by any federal, district, county, or municipal
department, commission, board, bureau, agency or other governmental instrumentality, nor does
Seller have any knowledge that any such action, suit, proceeding or investigation is threatened or
contemplated.
e. No Violation of Laws; Condemnation. To the best of Seller’s knowledge, Seller has
not received notice of any violations of law or of any municipal or county ordinances, agency rules
or regulations, court orders or decrees, or other legal requirements with respect to the Property or
with respect to the use of the property, occupancy or construction thereon. To the best of Seller’s
knowledge, Seller has not received any notice and has no knowledge of any pending or threatened
taking or condemnation of the Property or any portion thereof. To the best of Seller’s knowledge,
Seller has not received any notice of, any actual or threatened action, litigation, or proceeding by
any organization, person, individual or governmental agency (including governmental actions
under condemnation authority or proceedings similar thereto) against the Property or Seller, in
Seller's capacity as the owner of the Property, nor has any such organization, person, individual or
governmental agency communicated to Seller anything which Seller believes to be a threat of any
such action, litigation or proceeding.
f. No Violation of Environmental Laws. To the best of Seller’s knowledge, at all times
while owned by the Michigan Land Bank Fast Track Authority to the date of Closing (i) none of
the Property has been or will be excavated or used as a landfill, (ii) no fill has been or will be
deposited on or taken from the Property, (iii) no construction debris or other debris (including,
without limitation, rocks, stumps, or concrete) has been or will be stored upon or buried upon any
of the Property, and (iv) no Hazardous Substances have been or will be generated, manufactured,
refined, treated, stored, handled, disposed of, produced, processed, deposited and/or released in,
on or about the Property.
For purposes hereof, "Hazardous Substances" means any, hazardous or toxic
substances, materials or wastes, pollutants or contaminants defined, listed or regulated by the
Environmental Laws or by any other federal, state or local law, regulation or order or by common
law decision, and shall include, without limitation, asbestos, polychlorinated biphenyls, radon,
urea formaldehyde, petroleum (including gasoline, crude oil and natural or synthetic gas), and
related substances.
Page 6 of 15
For purposes hereof, "Environmental Laws" means and includes any federal, state or
local law, rule, ordinance, regulation or other legal requirement now or hereinafter in effect relating
to land use, air, soil, surface water, groundwater (including the protection, cleanup, removal,
remediation or damage thereof, human health and safety or any other environmental matter,
including, without limitation, the following laws as the same may be amended from time to time:
The National Resources and Environmental Protection Act, MCL §24.101, et seq.; Comprehensive
Environmental Response. Compensation and Liability Act of 1980, 42 U.S.C. §9602, et seq;
Federal Resource Conservation and Recovery Act, 42 U.S.C. §6901, et seq; Clean Water Act, 33
U.S.C. §1251, et seq; Toxic Substances Control Act, 15 U. S. C. §2601, et seq; Refuse Act, 33
U.S.C. §407 and Occupational Safety and Health Act, 29 U.S.C. §651, et seq., Clean Air Act, 42
U.S.C §740 1, et seq.
11. Representations of Purchaser. Purchaser represents to the Seller, as of the
Effective Date and as of the Closing Date, that:
a. Purchaser (i) is a Michigan municipal corporation, (ii) has complete and full
authority to execute this Agreement and will have at Closing complete and full authority to
consummate the Purchase Transaction, (iii) will execute and deliver any reasonable documents,
instruments, and agreements including, but not limited to, affidavits and certificates necessary to
consummate the transaction contemplated herein, and (iv) will take all additional action that is
reasonably necessary or appropriate to effect and facilitate the consummation of the sale and
purchase transaction contemplated herein, as may be reasonably required by the Title Company.
b. This Agreement constitutes the legal, valid and binding obligation of Purchaser,
enforceable against Purchaser in accordance with its terms. Purchaser’s execution and delivery of
this Agreement and performance of its obligations hereunder will not violate any agreement to
which it is a party or by which it is bound.
c. There is no litigation pending, or to Purchaser’s knowledge threatened, to prevent
Purchaser from entering into this Agreement and purchasing the Property.
The foregoing representation shall be continuing and shall be true and correct as of the date
of Closing.
12. Conditions Precedent to the Purchaser's Obligation to Close. The Purchaser’s
obligation to Close on the Purchase Transaction shall be subject to each of the following conditions
precedent:
a. Purchaser Commission Approvals. The Muskegon City Commission shall have
adopted resolutions authorizing the acquisition of the Property and the performance of the
Purchaser’s obligations hereunder.
b. Condition of the Property. The Property shall be in substantially the same condition
on the Closing Date as it is on the Effective Date.
c. Title. Title to the Property shall be in the form required by this Agreement such that
Title Company shall undertake at the Closing to issue the Policy without standard exceptions, but
subject only to the Permitted Exceptions.
d. Documents and Legal Matters. All documents required to be delivered to the
Purchaser or reasonably requested by the Purchaser shall have been provided to the Purchaser.
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e. No Default. Seller shall have performed all of its obligations under this Agreement
that were required to be performed prior to the Closing. All of Seller's representations contained
herein shall be true and correct as of the Effective Date and as of the Closing Date.
In the event of the failure of any condition precedent described above, Seller shall
promptly undertake with diligence a course of conduct reasonably calculated to satisfy the relevant
condition within a reasonable period of time. In such event, the Purchaser may, until the condition
may be satisfied, (i) defer the Closing Date, and during any such period of delay, the Purchase
Price shall not increase; (ii) terminate this Agreement; or (iii) waive noncompliance, proceed to
Closing, and Seller shall remove any encumbrances placed on the Property by the act or omission
of Seller after the date of this Agreement.
13. Closing.
a. Closing Date and Location. Unless this Agreement shall have been terminated in
accordance herewith, the Purchaser and Seller shall close on the Purchase Transaction on such
date on or before the time required in Section 2, and at such time and at the offices of the Title
Company or such office of the Purchaser, as shall be determined by the Purchaser and set forth in
a written notice to Seller at least five (5) business days prior to such date (the “Closing Date”). If
the Purchaser shall not have provided such notice at least five (5) business days prior to the
Closing, Seller may terminate this Agreement by written notice to the Purchaser.
b. Closing Documents. At the Closing, Seller shall deliver to the Purchaser the
following documents:
1. Quit Claim Deed to the Property, subject only to the Permitted Exceptions, if
any, and specifying that it is exempt from transfer tax pursuant to MCL 207.505(h) and MCL
207.526(h) and otherwise compliant with the following requirements of Public Act No. 578 of
Public Acts of 2018 (the “Deed”). The Deed shall further:
i. Provide that the State shall be paid fifty percent (50%) of the gross
revenues generated from the development, if any, of oil, gas, or mineral
interest in or under the Property; and
ii. Reserve to the State all aboriginal antiquities, including mounds,
earthworks, forts, burial and village sites, mines, or other relics lying
on, within, or under the Property, with power to the State and all others
acting under its authority to enter the Property for any purpose related
to exploring, excavating and taking away the aboriginal antiquities.
iii. Provide that if the Property was used by the State as a historical
monument, memorial, burial ground, park, or protected wildlife habitat
area, it must be maintained and protected for that purpose in perpetuity
in accordance with applicable law.
iv. Provide that if the Property is used for any purpose inconsistent with
any restrictions provided in Public Act No. 578 of Public Acts of 2018,
the State may reenter and repossess the Property, terminating Purchaser
or any successor grantee’s estate in the Property. If Purchaser or any
successor grantee disputed the State’s exercise of its right of reentry and
fails to promptly deliver possession of the Property to the State, the
attorney general, on behalf of the State, may bring an action to quiet title
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to, and regain possession of the Property. If the State reenters and
repossesses Property under this provision, the State is not liable to
reimburse any person for any improvements made on the Property or to
compensate any person for any part of an unfulfilled contract or license
issued to provide goods or services on or for the Property.
2. Affidavit in the form required by the Title Company (and reasonably acceptable
to Seller, but without warranty or indemnification) to remove standard exceptions from the Policy,
it being understood that the deletion of standard survey exceptions from the Policy will be based
on the Survey.
3. Affidavit certifying that Seller is not a Foreign Person within the meaning of
the Internal Revenue Code.
4. Resolutions of the governing body of Seller authorizing the sale of the Property
in accordance herewith, including delivery of the Closing Documents, in form and substance
acceptable to the Title Company.
5. The execution and delivery of the Quit Claim Deed by the Seller will be
deemed to be in full performance and discharge of all the terms and conditions of this Agreement
to be observed or performed by Seller, except those that are stated expressly to survive the Closing.
c. Closing Costs. The Quit Claim Deed will be prepared by Seller conveying title as
required by this Agreement. All other closing documents will be prepared by the Purchaser or the
Title Company. Purchaser and Seller shall share equally the costs of any escrow or closing fees
required by the Title Company pertaining to this transaction. Seller shall pay any and all Michigan
real estate transfer taxes (both state and county) due in connection with the transfer of the Property
to the Purchaser, if any. All recording fees and special assessments, if any, will be paid by
Purchaser. Each of the parties shall be responsible for its own legal fees.
d. Closing Statement. At the Closing, the Purchaser and Seller shall each deliver to the
other a Closing Statement reflecting the Purchase Price and the applicable credits and allocations
of closing costs, in form reasonably satisfactory to the Purchaser and Seller (the "Closing
Statement"). On the Closing Statement, the net amount of all adjustments shall be added to or
deducted from, as the case may be, the Purchase Price to determine the actual amount of the
payment to be disbursed to Seller at the Closing. The portion of the Purchase Price payable at
Closing as provided in Section 2, as so adjusted, shall be paid to Seller in immediately available
funds.
e. Possession. Seller shall deliver exclusive possession of the Property to the Purchaser
on the Closing Date, subject only to the Permitted Exceptions, if any.
14. Liability and “As Is” Sale. During the period between the date of this Agreement
and the date of Closing, Seller hereby expressly agrees to pay all costs and expenses and discharge
all liabilities, obligations and claims arising out of its ownership of the Property.
To the fullest extent possible under law, the Purchaser shall not be liable to Seller for
any violation or alleged violation of any Environmental Law occurring or arising out of an
occurrence prior to the Closing. However, other than as expressly set forth herein, Seller has made
no representation or warranty with respect to the Property. Purchaser shall accept the Property at
Closing in its “as is, where is” condition. Seller assumes no liability or responsibility for the
presence of any Hazardous Substances on or in the Property, whether for remediation, for cost
Page 9 of 15
recovery, contribution or otherwise. Purchaser acknowledges that Purchaser, having been given
the opportunity to inspect the Property, will rely solely on its own investigation of the Property
and not on any information provided or to be provided by or on behalf of Seller in order to
determine its condition and suitability for Purchaser’s intended use. Purchaser further
acknowledges that no independent investigation or verification has been or will be made by Seller
with respect to any information supplied by or on behalf of Seller concerning the Property; it being
intended by the parties that Purchaser shall verify the accuracy and completion of such information
itself. Purchaser acknowledges that the disclaimers, agreements and other statements set forth in
this paragraph are an integral portion of this Agreement and that Seller would not agree to sell the
Property to Purchaser for the Purchase Price without the disclaimers, agreements and other
statements in this paragraph
Upon Closing, Purchaser will be deemed to have accepted the Property in “as is
condition, with all faults,” including the location and extent of boundaries, the condition of all
improvements, and the environmental condition of the Property.
15. Remedies Upon Default.
a. Purchaser's Remedies. In the event the Purchaser discovers prior to the Closing that
any representation of Seller made herein is materially false or misleading, or in the event Seller
fails to substantially keep or perform any covenant, agreement or obligation to be kept or
performed by Seller under this Agreement and Seller fails to cure such failure within thirty (30)
days after receiving written notice thereof, the Purchaser may terminate this Agreement by written
notice to Seller, in which event the Purchaser shall be entitled to an immediate refund of any
deposit or advance paid by Purchaser. In the event of such termination, all obligations of the
parties hereunder shall be released and held for naught other than those that specifically survive
the termination of this Agreement. If the Purchaser shall elect not to terminate, all claims for
damages in respect of false or misleading representations discovered or otherwise known by the
Purchaser prior to the Closing shall be waived, but the Purchaser shall be entitled to seek specific
enforcement of other aspects of this Agreement. In no event shall Seller be liable for incidental,
consequential, exemplary or punitive damages. In no event shall Seller’s liability for damages
exceed the Purchase Price paid and Seller shall be entitled to set off such liability, pro tanto, against
the unpaid balance thereof.
b. Seller's Remedy. In the event the Seller discovers prior to the Closing that any
representation of Purchaser made herein is materially false or misleading, or if the Purchaser
materially breaches any duty or obligation of the Purchaser hereunder, and fails to cure such failure
within thirty (30) days after written notice from Seller, then Seller may elect, but shall not be
obligated, to terminate this Agreement by written notice to the Purchaser, whereupon neither party
hereto shall have any further rights or obligations under this Agreement other than those that
specifically survive the termination of this Agreement and any monies paid hereunder may be
retained by the Seller as liquidated damages.
16. Notices. Notices shall be in writing and shall be deemed as given and received to
or by the Purchaser or Seller, as the case may be, at the addresses set forth below (or to such other
notice address as shall be established by written notice provided in accordance with this Section
16): (a) one (1) business day after personal delivery, or (b) three business (3) days after posting if
sent by certified mail, postage prepaid, or (c) two (2) business days after receipt by a nationally
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recognized overnight delivery service for such overnight delivery to such address. Notices shall
be addressed as follows:
If to Seller: State of Michigan
Land Bank Fast Track Authority
105 W. Allegan Street
Lansing, MI 48933
Attn: Josh Burgett, Director
With a copy to: State of Michigan
Land Bank Fast Track Authority
105 W. Allegan Street
Lansing, MI 48933
Attn: General Counsel
If to the Purchaser: City of Muskegon
933 Terrace
Muskegon, MI 49440-1397
Attn: Frank Peterson
With a copy to: Corporation Counsel
City of Muskegon Law Department
601 Terrace Street
Muskegon, MI 49440
17. Headings. The headings of this Agreement are for purposes of reference only and
shall not limit or define the meaning of any provisions of this Agreement.
18. Saturdays, Sundays and Holidays. Whenever in this Agreement it is provided that
notice must be given or an act performed or payment made on or by a certain day, if such day falls
on a Saturday or a Sunday, or on a federal, state, or local holiday, or on any other day that Purchaser
offices are closed to the public (i.e. “holiday closedown”), then the day for the notice of
performance or payment shall be the next following business day.
19. Severability. If any provision of this Agreement is held by a court of competent
jurisdiction to be invalid, void or unenforceable, then the remainder of the provisions of this
Agreement shall remain in full force and effect and shall in no way be affected, impaired or
invalidated.
20. Entire Agreement; Integration. This instrument, including any exhibits which are
attached hereto and which are made a part of this Agreement, contains the entire agreement
between the parties relating to the sale and purchase of the Property, and all prior negotiations and
agreements are merged herein. Seller acknowledges that neither the Purchaser nor the Purchaser's
agents have made any representations except those expressly set forth herein, and no rights or
remedies are or shall be acquired by Seller by implication or otherwise unless expressly set forth
herein. Purchaser acknowledges that neither the Seller nor the Seller's agents have made any
representations except those expressly set forth herein, and no rights or remedies are or shall be
acquired by Purchaser by implication or otherwise unless expressly set forth herein. Any change
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in, addition to, or amendment or modification of the terms hereof shall be of no effect unless in a
writing executed by both parties and approved as required by this Agreement or applicable law.
21. Survival. This Agreement shall not be merged into any instruments or documents
executed and delivered at the Closing but shall survive the Closing. All covenants and agreements
contained herein shall survive the Closing and remain in full force and effect, including but not
limited to the obligations of Purchaser to pay the Purchase Price and to indemnify Seller against
loss or liability arising from Purchaser’s inspections and activities pursuant to Section 5.
22. Time is of the Essence. Time is of the essence of this Agreement and for the
performance of all covenants, duties, agreements, and obligations hereunder.
23. Brokers. Purchaser and Seller each represent to the other that there has been no
involvement of any real estate broker in this Agreement or in the Purchase Transaction.
24. Binding Effect. From and after the Effective Date, this Agreement shall bind the
parties and their respective successors and permitted assigns. Neither party to this Agreement may
assign all or any of its rights or obligations hereunder without the prior written consent of the other
party. Nothing in this Agreement, express or implied, is intended to confer upon any person, other
than the parties hereto and their respective successors and permitted assigns, any rights or remedies
whatsoever. No amendment or modification to this Agreement shall be effective and binding upon
the parties unless it is in writing, expressly makes reference to this Agreement, and is signed and
acknowledged by duly authorized representatives of both parties.
25. Counterpart Originals. This Agreement may be executed in one or more
counterparts, each of which shall be deemed to be an original, and all counterparts, when taken
together, will constitute one and the same instrument.
26. Governing Law; Jurisdiction; Venue. All actions arising under this Agreement
shall be governed by, subject to, and construed according to the laws of the State of Michigan.
27. Assignment. Neither party to this Agreement may assign all or any of its rights or
obligations hereunder without the prior written consent of the other party. Any purported
assignment in violation of this section shall be void.
28. Publicity. Prior to the Closing, any news or other media releases to the public by
either party of information regarding the Purchase Transaction will be provided in advance to the
other party with sufficient lead time for comment or coordination, as the case may be.
29. State Mandated Contract Provisions.
a. Zoning, Safety and Regulatory Compliance. When title passes to the Purchaser
at Closing, the Property will immediately become subject to certain State of Michigan safety and
regulatory laws and to certain local ordinances and regulations (including zoning and use
requirements) to which the Property was not previously subject to because it was owned by the
State. Purchaser acknowledges that in certain substantial respects the Property may not comply
with such statutes, rules, ordinances and regulations and may have to be substantially altered or
repaired to become compliant. Purchaser acknowledges that it will comply with all zoning and
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use requirements. The Purchaser acknowledges that the Seller is under no obligation to take any
action to bring the Property into compliance with such statutes, and that the Purchaser has had the
opportunity to make a personal inspection of the Property. The Purchaser further acknowledges
that it is the Purchaser’s responsibility to consult with all State and local regulatory agencies,
which have and will continue to have, or will obtain jurisdiction.
b. Nondiscrimination. Pursuant to MCL 37.2209 and MCL 37.1209, Purchaser will
comply with the Elliott-Larsen Civil Rights Act, 1976 PA 453, MCL 37.2101 et seq.; the Persons
with Disabilities Civil Rights Act, 1976 PA 220, MCL 37.1101 et seq.; and all other federal, state
and local fair employment practices and equal opportunity laws and covenants that it will not
discriminate against any employee or applicant for employment, to be employed in the
performance of this Agreement, with respect to his or her hire, tenure, terms, conditions, or
privileges of employment, or any matter directly or indirectly related to employment, because of
his or her race, religion, color, national origin, age, sex, height, weight, marital status, or physical
or mental disability that is unrelated to the individual’s ability to perform the duties of a particular
job or position. In addition, as provided in Executive Directive 2019-09, Purchaser shall not
discriminate against any employee or applicant for employment with respect to his or her hire,
terms, tenure, conditions or privileges of employment, or any matter directly or indirectly related
to employment because of religion, race, color, national origin, age, sex, height, weight, marital
status, partisan considerations, or a disability or genetic information that is unrelated to the
individual’s ability to perform the duties of a particular job or position. Purchaser agrees to include
in every subcontract entered into for the performance of this Agreement this covenant not to
discriminate in employment. A breach of this covenant will constitute a material breach of a
contract arising out of this Agreement.
c. Unfair Labor Practices. Pursuant to MCL 423.324, the State may void a contract
if Purchaser or any of its contractors, subcontractors, manufacturers, or suppliers appear in the
register compiled pursuant to 1980 PA 278, MCL 423.321 et seq. A breach of this covenant will
constitute a material breach of a contract arising out of this Agreement.
30. Authority of Purchaser. In accordance with the City Charter and the Muskegon
City Code, and notwithstanding anything in this Agreement or otherwise to the contrary, the
Purchaser shall not be authorized or obligated to purchase the Property unless and until this
Agreement has been fully executed by the duly authorized representative of the Purchaser,
pursuant to a resolution of the Muskegon City Commission as approved by the Mayor of the City
of Muskegon, and approved by the City of Muskegon Law Department. Any amendments or
modifications to this Agreement must likewise be duly authorized by resolution of the City
Commission as approved by the Mayor, and be approved by the Law Department.
[Signatures contained on following page]
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IN WITNESS WHEREOF, the parties execute this Agreement on the dates written below
and this Agreement shall be effective as of Effective Date.
SELLER:
STATE OF MICHIGAN LAND BANK FAST
TRACK AUTHORITY
_______________________________________
By: Josh Burgett
Its: Director
Dated: ________________
PURCHASER:
CITY OF MUSKEGON, a Michigan municipal
corporation
________________________________________
By: Stephen J. Gowron
Its: Mayor
Dated: ______________
________________________________________
By: Ann Marie Meisch
Its: Clerk
Dated: ______________
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Exhibit A
LEGAL DESCRIPTION
Parcels of land situated in the City of Muskegon, Muskegon County, State of
Michigan, and described as follows to-wit:
PARCEL 2: Part of the South 1/2 of Section 35, T10N-R16W, City of Muskegon,
Muskegon County, Michigan and more fully described as: Beginning at the South
1/4 corner of Section 35, Town 10 North, Range 16 West, said point also being the
Southeast corner of Lot 69 of the recorded plat of “Port City Industrial Center No.
6” as recorded in Liber 22, pages 5-8, Muskegon County records; thence South
89°56'51" West, along the South line of said Lot 69, 633.77 feet to the Southwest
Corner of said Lot 69; thence North 00°40'22" East 890.06 feet to the Northwest
Corner of said Lot; thence South 89°56'00" East 632.90 feet to the Northwest
Corner of Lot 68 of said plat; thence South 00°37'04" West 100.00 feet; thence
South 89°56'00" East 1289.87 feet to the East line of Lot 67 of said plat; thence,
along the East line of said Lot 67 the following three (3) courses; along a 303.18
foot curve to the right with a radius of 642.00 feet and a chord bearing and distance
of South 22°50'42" West 300.37 feet; thence on a 371.00 foot curve to the left with
a radius of 303.00 feet and a chord bearing and distance of South 01°33'47" West
348.26 feet; thence South 33°11'07" East 192.07 feet to the Southeast Corner of Lot
67 of said plat; thence South 89°55'56" West, along the South line of Lots 67 and
68 of said plat, 1277.39 feet to the Point of Beginning.
Parcel contains 34.49 acres of land, more or less.
PARCEL 3A: Part of the Northwest ¼ of the Northeast ¼ of Section 2, Town 9
North, Range 16 West, City of Muskegon, Muskegon County, Michigan, described
as: beginning at the Northeast corner of the Northwest ¼ of the Northeast ¼ of
Section 2; thence South 2 degrees 39 minutes West, 1133.35 feet along the East
1/8th line of said Section 2; thence North 70 degrees 46 minutes West, 1378.4 feet
along the Northerly line of land that was conveyed to Consolidated Rail
Corporation; thence North 2 degrees 01 minute East, 674.89 feet along the North
and South quarter line of said Section 2; thence North 89 degrees 53 minutes East
along the North line of said Northwest ¼ of Northeast ¼ to the place of beginning.
Parcel contains 27.47 acres of land, more or less.
SUBJECT TO all agreements, covenants, easements, right-of-ways, reservations
and restrictions of record, if any.
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Execution Copy
CASE - 263252
MICHIGAN ECONOMIC DEVELOPMENT CORPORATION
GRANT WITH
CITY OF MUSKEGON
The Michigan Economic Development Corporation (the “MEDC”) enters into a binding
agreement (the “Agreement”) with City of Muskegon (the “Grantee”). As used in this
Agreement, the MEDC and Grantee are sometimes individually referred to as a “Party” and
collectively as “Parties.”
Grantee: City of Muskegon
Contact: Frank Peterson
933 Terrace Street, Muskegon, Michigan 49440
I. NATURE OF SERVICES. The purpose of this Agreement is to provide funding to
the Grantee for the expansion of an industrial pack in the city of Muskegon.
(“Project”) (the Project, together with the Grantee’s Duties described in Section V,
are collectively referred to as the “Grant Activities”). The Grantee agrees to
undertake and perform the Grant Activities.
II. PERFORMANCE SCHEDULE.
Starting Date: January 1, 2019 Ending Date: January 31, 2021
The term of this Agreement shall commence on the Starting Date and shall continue
until earlier terminated as permitted by this Agreement (“Term”).
III. PAYMENT SCHEDULE INFORMATION.
A. The MEDC agrees to pay the Grantee a sum not to exceed $4,000,000.00
(the “Grant”) as soon as practical after full execution of this Agreement by the
Parties. This Agreement does not commit the MEDC to approve requests for
additional funds during or beyond the Term. Provided however, if the Grantee
is also a recipient of grant funds under one or more of a prior grant agreement
authorized by any of PA 268 of 2016, PA 107 of 2017 and/or PA 207 of 2018,
Grantee must first certify in writing to the Grant Administer that all such grant
funds disbursed thereunder have been expended as required under the
applicable prior grant agreement, before any of this Grant may be disbursed
to Grantee.
B. MEDC requires that payments under this Agreement be processed by
electronic funds transfer (EFT). Grantee is required to register to receive
payments by EFT at the State Integrated Governmental Management
Applications (SIGMA) Vendor Self Service (VSS) website
(www.michigan.gov/VSSLogin).
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IV. MEDC GRANT ADMINISTRATOR. The Grantee must communicate with the
MEDC representative named below or his or her designee regarding this
Agreement. The Grant Administrator may be changed, at any time, at the discretion
of the MEDC.
Kristyn Blackmer (the “Grant Administrator”)
Michigan Economic Development Corporation
300 North Washington Square
Lansing, Michigan 48913
blackmerk1@michigan.org
V. GRANTEE DUTIES. The Grantee agrees to undertake, perform, and complete the
following duties:
A. All Grant funds paid to the Grantee shall be spent by the Grantee for Grant
Activities;
B. As to any portion of the Project in which in excess of fifty percent (50%) of
the Grant funds will be used by Grantee to pay any contractor or other
independent third party, Grantee shall engage in a competitive bidding
process, including, at a minimum, soliciting quotes from at least two (2)
independent sources capable of performing the applicable portion of the
Project;
C. All Grant funds paid to Grantee shall be spent by the Grantee in accordance
with the budget, attached as Exhibit A (“Budget”). Other than general
administrative expenses necessary to implement the Project, the Budget
shall not reflect additional general administrative expenses in excess of ten
percent (10%) of the Grant, without the prior written consent of the Grant
Administrator. Changes in the Budget will be allowed only upon prior review
and written approval by the Grant Administrator; provided however, the
Grantee may re-allocate expenditures up to ten percent (10%) within the
categories of the Budget upon prior written notice to the Grant Administrator.
D. Unless this Agreement is terminated prior to the Ending Date as permitted by
this Agreement, the Grant Activities shall be completed no later than the
Ending Date;
E. Within fifteen (15) calendar days following the end of each calendar quarter,
beginning with the calendar quarter ending 6/30/2019 and continuing through
the first to occur of: (i) submission of the Final Progress Report (as defined
below) or (ii) the calendar quarter 12/31/2020, the Grantee shall submit a
written quarterly progress report to the Grant Administrator reporting (the
below, collectively, “Quarterly Progress Report”):
i. a summary of the Grant Activities performed over the immediately
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prior calendar quarter;
ii. An accounting of Grantee’s actual expenditure of all funds on the
Project over the immediately prior quarter, including the breakdown of
Grantee’s actual use of Grant funds on the Project within each
applicable category of the Budget, and corresponding copies of
supporting documentation of such expenditures, such as receipts,
general ledgers, or other evidence of expenditure activity statements;
iii. the Grantee’s then estimated percentage of completion of the Project;
and
iv. Any other information deemed relevant by Grantee to support the
Grant Activities actually performed.
F. Upon the first to occur of: (i) Grantee’s completion of the Project or (ii)
01/31/2021, the Grantee shall submit a written final progress report to the
Grant Administrator reporting (the below, collectively, “Final Progress
Report”):
i. An accounting of Grantee’s actual expenditure of all funds on the
Project from the date of the immediately prior Quarterly Progress
Report, including the breakdown of Grantee’s actual use of Grant
funds on the Project within each applicable category of the Budget,
and corresponding copies of supporting documentation of such
expenditures, such as receipts, general ledgers, or other evidence of
expenditure activity statements;
ii. A comprehensive narrative of all of the Grant Activities, including a
summary about the completed Project and its impact on the
community in which the Project is located;
iii. the Grantee’s then estimated percentage of completion of the Project;
iv. One or more photos evidencing the completed Project; and
v. Any other information deemed relevant by Grantee to support the
Grant Activities actually performed.
G. Beginning with Grantee’s fiscal year in which the Grant is disbursed and
within ninety (90) calendar days of the end of Grantee’s fiscal year
thereafter through the earlier to occur of the Grantee’s fiscal year: (i) in
which a Final Progress Report has been submitted as required hereunder
or (ii) the last year of the Term, the Grantee shall submit a copy of its
annual financial statements which financial statements must be audited by
an independent certified public accountant.
H. The Grantee shall submit such other and further information about the
Project and documentation of the expenditures of Grant funds as reasonably
requested by the MEDC; and
I. Upon expiration of the Term, or earlier termination as provided by this
Agreement, in addition to all other remedies available to the MEDC, any
portion of Grant funds paid to Grantee and not expended by the Grantee in
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accordance with this Agreement shall be returned by the Grantee to the
MEDC.
VI. RELATIONSHIP OF THE PARTIES.
A. Neither Grantee nor any of its employees or agents is or shall become an
employee of the MEDC due to this Agreement.
B. Grantee will perform the Grant Activities free from the direction or control of
the MEDC as to means and methods of performance.
C. The MEDC is not responsible for any insurance or other fringe benefits,
including, but not limited to, Social Security, Worker's Compensation, income
tax withholdings, retirement or leave benefits, for Grantee or its employees.
Grantee assumes full responsibility for the provision of all such insurance
coverage and fringe benefits for its employees.
D. All tools, supplies, materials, equipment, and office space necessary to carry
out the services described in this Agreement are the sole responsibility of
Grantee unless otherwise specified herein.
E. Grantee shall retain all control of its employees and staffing decisions
independent of the direction and control of the MEDC.
VII. TERMINATION. This Agreement shall terminate upon the earlier of the following:
A. The Ending Date;
B. Termination by the MEDC, by giving thirty (30) calendar days prior written
notice to the Grantee. In the event that the Legislature of the State of
Michigan, the State Government, or any State official, commission, authority,
body, or employee or the federal government (a) takes any legislative or
administrative action which fails to provide, terminates, or reduces the funding
necessary for this Agreement; or (b) takes any legislative or administrative
action, which is unrelated to the source of funding for the Grant, but which
affects the MEDC’s ability to fund and administer this Agreement and other
MEDC programs, provided, however, that in the event such action results in
an immediate absence or termination of funding, cancellation may be made
effective immediately upon delivery of notice to the Grantee;
C. Termination by the MEDC pursuant to Section XIV of this Agreement; or
D. Written agreement of the Parties.
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Execution Copy
VIII. MEDC EMPLOYEES. The Grantee will not hire any employee of the MEDC to
perform any obligations of Grantee covered by this Agreement without prior written
approval from the Chief Executive Officer of the MEDC.
IX. CONFLICT OF INTEREST. Except as has been disclosed to the MEDC, Grantee
affirms that neither the Grantee, nor any of its officers, directors, employees, or
affiliates have, shall have, or shall acquire any contractual, financial, business or
other interest, direct or indirect, that would conflict in any manner with Grantee’s
performance of its obligations under this Agreement or otherwise create the
appearance of impropriety with respect to this Agreement.
Grantee further affirms that neither Grantee nor any of its officer, directors,
employees, or affiliates have accepted, shall accept, have offered, or shall offer,
anything of value to influence the MEDC, its Corporate Board, Executive Committee
and their respective directors, participants, officers, agents and employees.
Grantee shall not attempt to influence any MEDC employee by the direct or indirect
offer of anything of value. Grantee also affirms that neither Grantee, nor its
Affiliates or their employees has paid or agreed to pay any person, other than bona
fide employees and consultants working solely for Grantee or its affiliate, any fee,
commission, percentage, brokerage fee, gift or any other consideration contingent
upon or resulting from the execution of this Agreement.
In the event of change in either the interests or services under this Agreement,
Grantee will inform the MEDC regarding possible conflicts of interest which may
arise as a result of such change. Grantee agrees that conflicts of interest shall be
resolved to the MEDC’s satisfaction or the MEDC may terminate this Agreement.
As used in this Paragraph, “conflict of interest” shall include, but not be limited to,
conflicts of interest that are defined under the laws of the State of Michigan.
X. INDEMNIFICATION AND GRANTEE LIABILITY INSURANCE. The Grantee shall
indemnify, defend and hold harmless the MEDC, its Corporate Board, Executive
Committee, and their respective directors, participants, officers, agents and
employees from any damages that it may sustain by any acts or omissions
pertaining to the Grant Activities. The Grantee shall maintain such insurance to
protect the Indemnified Persons from claims that might arise out of, or as a result of,
the Grant Activities and Grantee's operations; however, Grantee’s indemnification
obligations under this Agreement shall not be limited to the limits of liability imposed
under the Grantee’s insurance policies. The Grantee will provide and maintain its
own general liability, property damage, and workers compensation insurance.
XI. ASSIGNMENT/TRANSFER/SUBCONTRACTING. The Grantee shall not assign,
transfer, convey, subcontract, or otherwise dispose any interest of the Grantee
under this Agreement without the prior written consent of the MEDC.
XII. COMPLIANCE WITH LAWS. The Grantee is not, and will not during the Term, be in
violation of any laws, ordinances, regulations, rules, orders, judgments, decrees or
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Execution Copy
other requirements imposed by any governmental authority to which it is subject,
and will not fail to obtain any licenses, permits or other governmental authorizations
necessary to carry out its duties under this Agreement.
XIII. DEFAULT. The occurrence of any one or more of the following events or conditions
shall constitute an “Event of Default” under this Agreement, unless a written waiver
of the Event of Default is signed by the MEDC: (a) any representation, covenant,
certification or warranty made by the Grantee shall prove incorrect at the time that
such representation, covenant, certification or warranty was made in any material
respect; or (b) the Grantee’s failure to comply with any of its obligations or duties
under this Agreement, including the Grantee’s Duties.
XIV. AVAILABLE REMEDIES. Upon the occurrence of any one or more of the Events of
Default: (a) the MEDC may suspend any MEDC obligation to make any payments
under this Agreement, and (b) in the sole discretion and at the option of the MEDC,
the MEDC may terminate this Agreement immediately upon notice to the Grantee.
The termination of this Agreement is not intended to be the sole and exclusive remedy
in case any Event of Default shall occur and each remedy, including seeking
damages for breach of this Agreement, shall be cumulative and in addition to every
other provision or remedy given herein or now or hereafter existing at law or equity.
XV. ACCESS TO RECORDS AND INSPECTION RIGHTS. During the Term and for a
period of three (3) years following the end of the Term, the Grantee shall retain
reasonable records related to the Grant Activities, including records evidencing that
the Grant Activities were actually performed and the identity of all persons and
entities that are paid any portion of the Grant funds. There will be frequent contact
between the Grant Administrator and the Grantee. To monitor and ensure
compliance with the terms of this Agreement, the Grantee shall permit the MEDC
and/or the Auditor General of the State of Michigan (“Auditor General”) to visit the
Grantee, the Project location, and any other location where books and records of
the Grantee are normally kept, to inspect the Project, the books and records,
including financial records and all other information and data relevant to the terms of
this Agreement, including the expenditure of the Grant disbursements; provided,
however, that such inspection and audit rights shall survive the end of the Term by
three (3) years. At such visits, the Grantee shall permit any employee or agent of
the MEDC and/or the Auditor General to make copies or extracts from information
and to discuss the Project, the affairs, finances, and accounts of the Grantee
related to this Agreement with its officers, employees, or agents. The MEDC and/or
the Auditor General shall have the right to remove, photocopy, photograph, or
otherwise record in any way any part of such books and records with the prior
written consent of the Grantee, which consent shall not be unreasonably withheld.
XVI. GOVERNING LAW. This Agreement is made and entered into in the State of
Michigan and shall in all respects be interpreted, enforced, and governed under the
laws of the State of Michigan without regard to the doctrines of conflict of laws.
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XVII. NOTICES. Any notice, approval, request, authorization, direction or other
communication under this Agreement shall be given in writing and shall be deemed
to have been delivered and e-mailed, or faxed, or mailed by first class, postage
prepaid, or sent by express, overnight courier to the respective Party at the e-mail,
fax or physical addresses as last known or otherwise reasonably identified by the
notifying Party. The MEDC and Grantee may, by notice given hereunder, designate
any further or different addresses to which subsequent notices shall be sent.
XVIII. TOTAL AGREEMENT. This Agreement, including Exhibit A, is the entire
agreement between the Parties as to the subject matter of this Agreement.
XIX. SURVIVAL. The terms and conditions of sections VI, X, XV, XVI, XVII, XVIII and
XIX shall survive the expiration, or earlier termination, of the Term.
XX. COUNTERPARTS AND COPIES. This Agreement may be signed in one or more
counterparts, and such signatures may be electronically delivered, and in such
circumstances, shall be considered one document and an original for all purposes.
(SIGNATURE PAGE FOLLOWS)
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The signatories below warrant that they are empowered to enter into this Agreement.
GRANTEE ACCEPTANCE: City of Muskegon
Dated: _____________ __________________________________
By: Frank Peterson
Its: City Manager
MEDC ACCEPTANCE: Michigan Economic Development Corporation
Dated: _____________ __________________________________
By: Linda Asciutto
Its: General Counsel
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EXHIBIT A
GRANTEE’S BUDGET
A-1
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