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CITY OF MUSKEGON
SPECIAL CITY COMMISSION MEETING
A Special City Commission Meeting is scheduled for
Tuesday, October 29, 2019
5:30 p.m. @
Muskegon City Hall
933 Terrace Street
Muskegon, MI 49440
In the Commission Chambers, Room 107
AGENDA
1. Establishment of Plant Rehabilitation District
2. Issuance of an Industrial Facilities Tax Exemption
Certificate – American Chemical Solutions, LLC
Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: 10/29/19 Title: Establishment of a Plant Rehabilitation
District
Submitted By: Mike Franzak Department: Planning
Brief Summary:
Pursuant to Public Act 198 of 1974, as amended, American Chemical Solutions, LLC has requested
the establishment of a Plant Rehabilitation District at 2406 Roberts St. This new company will be
moving into the former chemical plant on Roberts St and will need to make significant upgrades to
the facility. In order to apply for a Plant Rehabilitation IFT, they must be located in a Plant
Rehabilitation District.
Detailed Summary:
Amount Requested: Amount Budgeted:
Fund(s) or Account(s): Fund(s) or Account(s):
Recommended Motion: To approve the Plant Rehabilitation District at 2406 Roberts St.
Check if the following Departments need to approve the item first:
Police Dept.
Fire Dept.
IT Dept.
For City Clerk Use Only:
Commission Action:
MUSKEGON CITY COMMISSION
RESOLUTION APPROVING A PLANT REHABILITATION DISTRICT AT 2406 ROBERTS ST, MUSKEGON, MI 49444
WHEREAS, pursuant to PA 198 of 1974, as amended, the City Commission of the City of Muskegon has the
authority to establish a Plant Rehabilitation District within the City of Muskegon; and
WHEREAS, American Chemical Solutions, LLC has petitioned the City Commission of the City of Muskegon to
establish a Plant Rehabilitation District on its property located in the City of Muskegon hereinafter described; and
WHEREAS, construction, acquisition, alteration, or installation of a proposed facility has not commenced at the
time of filing the request to establish this district; and
WHEREAS, written notice has been given by mail to all owners of real property located within the district, and to
the public by newspaper advertisement in the Muskegon Chronicle and public posting of the hearing on the
establishment of the proposed district; and
WHEREAS, on October 29, 2019 a public hearing was held at which all owners of real property within the proposed
Plant Rehabilitation District and all residents and taxpayers of the City of Muskegon were afforded an opportunity
to be heard thereon; and
WHEREAS, the City Commission of the City of Muskegon deems it to be in the public interest of the City of
Muskegon to establish the Plant Rehabilitation District as proposed; and
IT IS HEREBY DETERMINED that the property comprising not less than 50 percent of the state equalized
valuation of the property within the proposed Plant Rehabilitation District is obsolete; and
NOW, THEREFORE, BE IT RESOLVED by the City Commission of the City of Muskegon that the following described
parcel of land situated in the City of Muskegon, Muskegon County, and State of Michigan, to wit:
CITY OF MUSKEGON PT OF NW 1/4 OF SE 1/4 & PT OF SW 1/4 OF NE 1/4 SEC 33 T10N R16W DESC
AS: COM @ S 1/4 COR SAID SEC 33 TH N 1D 02M 52S E ALONG N/S 1/4 LINE 2011.75 FT TH N 89D 27M
40S EALONG S LINE OF NW 1/4 OF NW 1/4 OF SE 1/4 OF SAID SEC 233.0 FT TH N 1D 02M 52S E PAR
WITH N/S 1/4 LINE 33.01 FT TO POB TH CONT N 1D 02M 52S E PAR WITH N/S 1/4 LINE 637.66 FT TO
POINT OF INT WITH E/W 1/4 LINE TH N 1D 00M 40S E PAR WITH N/S 1/4 LINE 79.74 FT TH S 71D 06M
53S E ALONG SLY RT OF WAY LINE CONSUMERS POWER COMPANY 288.83 FT TH S 1D 02M 52S W
PAR WITH N/S 1/4 LINE 621.31 FT TH S 89D 27M 40S W 275.00 FT TO POB ALSO COM @ A POINT 33
FT N & 508 FT E OF SW 1/4 SEC 33 TH N 621.59 FT TO SLY LINE CONSUMERS POWER COMPANY RT
OF WAY TH SELY ALONG SAID RT OF WAY 866.09 FT TH S 458.50 FT TH NWLY 586.01 FT TO N LINE
BARNEY EXTENDED TH W 252.00 FT TO POB ALSO W 727.74 FT OF S 1/2 OF NW 1/4 OF SE 1/4 SEC
33 T10N R16W INCLUDING VAC E BARNEY AVE BEG 200 FT E OF E LN OF ROBERTS ST EXC N 33 FT
AND W 33 FT TH'OF FOR STS
is established as a Plant Rehabilitation District pursuant to the provisions of PA 198 of 1974, as amended, to be
known as ACS Plant Rehabilitation District.
Adopted this 29th Day of October 2019.
Ayes:
Nays:
Absent:
BY: __________________________________
Stephen J. Gawron
Mayor
ATTEST: __________________________________
Ann Meisch
Clerk
CERTIFICATION
I hereby certify that the foregoing constitutes a true and complete copy of a resolution adopted by the
Muskegon City Commission, County of Muskegon, Michigan, at a regular meeting held on October 29, 2019.
______________________________
Ann Meisch
Clerk
Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: 10/29/19 Title: Issuance of an Industrial Facilities Tax
Exemption Certificate – American Chemical
Solutions, LLC
Submitted By: Mike Franzak Department: Planning
Brief Summary:
Pursuant to Public Act 198 of 1974, as amended, American Chemical Solutions, LLC has requested
the issuance of an Industrial Facilities Tax (IFT) Exemption Certificate in order to rehabilitate the
vacant chemical plant at 2406 Roberts St. The company is eligible for a 6-year abatement on the
real property improvements.
Detailed Summary:
Amount Requested: Amount Budgeted:
Fund(s) or Account(s): Fund(s) or Account(s):
Recommended Motion: To approve the IFT Certificate for 6-years, with no extensions.
Check if the following Departments need to approve the item first:
Police Dept.
Fire Dept.
IT Dept.
For City Clerk Use Only:
Commission Action:
Resolution No. 2019-86
MUSKEGON CITY COMMISSION
RESOLUTION APPROVING APPLICATION FOR ISSUANCE
OF INDUSTRIAL FACILITIES EXEMPTION CERTIFICATE FOR A REHABILITATION FACILITY
American Chemical Solutions, LLC
WHEREAS, pursuant to P.A. 198 of 1974 as amended, after duly noticed public hearing held on October 29,
2019, this Commission by resolution established the ACS Plant Rehabilitation District as requested by
American Chemical Solutions, LLC for their property at 2406 Roberts St, Muskegon, Michigan 49444; and
WHEREAS, American Chemical Solutions, LLC has filed an application for the issuance of an Industrial Facilities Tax
Exemption Certificate with respect to a rehabilitation facility within the ACS Plant Rehabilitation District; and
WHEREAS, before acting on said application, the Muskegon City Commission held a public hearing on October 29,
2019, at the Muskegon City Hall in Muskegon, Michigan at 5:30 p.m. at which hearing the applicant, the
assessor and representatives of the affected taxing units were given written notice and were afforded an
opportunity to be heard on said application; and
WHEREAS, the installation of machinery and equipment and the rehabilitation of the facility is calculated to and will
have the reasonable likelihood to retain, create, or prevent the loss of employment in Muskegon, Michigan; and
WHEREAS, the installation of machinery and equipment and the rehabilitation of the facility has not yet begun, and
WHEREAS, the aggregate SEV of real property exempt from ad valorem taxes within the City of Muskegon, will not
exceed 5% of an amount equal to the sum of the SEV of the unit, plus the SEV of personal and real property
thus exempted.
NOW, THEREFORE, BE IT RESOLVED by the Muskegon City Commission of the City of Muskegon, Michigan
that:
1) The Muskegon City Commission finds and determines that the Certificate considered together with the
aggregate amount of certificates previously granted and currently in force under Act No. 198 of the Public
Act of 1974 as amended and Act No. 255 of the Public Acts of 1978 as amended shall not have the effect
of substantially impeding the operation of the City of Muskegon or impairing the financial soundness of a
taxing unit which levies ad valorem property taxes in the City of Muskegon.
2) The application of American Chemical Solutions, LLC, for the issuance of an Industrial Facilities Tax
Exemption Certificate with respect to a rehabilitation facility within the ACS Plant Rehabilitation District on
the following described parcel of real property situated within the City of Muskegon to wit:
CITY OF MUSKEGON PT OF NW 1/4 OF SE 1/4 & PT OF SW 1/4 OF NE 1/4 SEC 33 T10N
R16W DESC AS: COM @ S 1/4 COR SAID SEC 33 TH N 1D 02M 52S E ALONG N/S 1/4
LINE 2011.75 FT TH N 89D 27M 40S EALONG S LINE OF NW 1/4 OF NW 1/4 OF SE 1/4
OF SAID SEC 233.0 FT TH N 1D 02M 52S E PAR WITH N/S 1/4 LINE 33.01 FT TO POB
TH CONT N 1D 02M 52S E PAR WITH N/S 1/4 LINE 637.66 FT TO POINT OF INT WITH
E/W 1/4 LINE TH N 1D 00M 40S E PAR WITH N/S 1/4 LINE 79.74 FT TH S 71D 06M 53S E
ALONG SLY RT OF WAY LINE CONSUMERS POWER COMPANY 288.83 FT TH S 1D
02M 52S W PAR WITH N/S 1/4 LINE 621.31 FT TH S 89D 27M 40S W 275.00 FT TO POB
ALSO COM @ A POINT 33 FT N & 508 FT E OF SW 1/4 SEC 33 TH N 621.59 FT TO SLY
LINE CONSUMERS POWER COMPANY RT OF WAY TH SELY ALONG SAID RT OF WAY
866.09 FT TH S 458.50 FT TH NWLY 586.01 FT TO N LINE BARNEY EXTENDED TH W
252.00 FT TO POB ALSO W 727.74 FT OF S 1/2 OF NW 1/4 OF SE 1/4 SEC 33 T10N
R16W INCLUDING VAC E BARNEY AVE BEG 200 FT E OF E LN OF ROBERTS ST EXC N
33 FT AND W 33 FT TH'OF FOR STS
3) The Industrial Facilities Tax Exemption Certificate is issued for a rehabilitation facility and shall be and
remain in force and effect for a period of 6 years, no extensions will be granted.
Adopted this 29th Day of October 2019.
Ayes: Warren, German, Rinsema-Sybenga, Turnquist, Johnson, and Gawron
Nays: None
Absent: Hood
BY: __________________________________
Stephen J. Gawron
Mayor
ATTEST: __________________________________
Ann Meisch
Clerk
CERTIFICATION
I hereby certify that the foregoing constitutes a true and complete a resolution adopted by the Muskegon City
Commission, County of Muskegon, Michigan, at a regular meeting held on October 29, 2019.
______________________________
Ann Meisch
Clerk
CITY OF MUSKEGON
CONTRACT FOR TAX ABATEMENT
Act 198 Public Acts of 1974
AGREEMENT between CITY OF MUSKEGON, a municipal corporation of 933
Terrace Street, Muskegon, Michigan 49441, (“City”) and American Chemical Solutions,
LLC (“Company”).
Recitals:
A. The Company has applied to City for the establishment of an industrial
rehabilitation district pursuant to the provisions of Act 198 of the Public Acts of 1974, as
amended, which act requires a contract between the City and the Company to be agreed
and submitted with the Company’s subsequent anticipated application for an industrial
facilities exemption certificate.
B. That in addition to the statutory requirement, the City has determined that it is in
the best interests of the taxpayers, property owners and residents of the City that this
Agreement be approved and executed prior to the establishment of the requested district,
and the City deems this Contract, together with the conditions set forth in the said Act to
constitute a necessary element in the City’s determination whether or not to create the
district.
C. The Company intends to rehabilitate the facility set forth in its application
(“facility”) which it believes qualifies for the process of establishing the district and the
application for industrial facilities exemption certificate.
D. The City, provided this Agreement is executed, will determine whether to create
the district based upon the potential for the production of permanent jobs, the
continuation or increase of economic activity, planning and zoning considerations and the
City’s general plan and intentions regarding economic development. In addition to the
City policy considerations and predictions that the Company’s proposed district and
certificate benefit the community in those ways, the City has further determined that the
contractual commitments made by the Company to thereby assist the community shall be
binding on the Company and necessary to continue the tax exemption made possible by
the certificate.
NOW THEREFORE THE PARTIES AGREE:
1. COMPANY AGREEMENT. The Company irrevocably commits to the
investment, job retention and job creation promises made in its application, a copy of
which is attached hereto and incorporated herein. In particular the Company agrees:
32577165.1 Page 1
1.1 That 100% of the jobs shall be filled and in existence with full-time
employees by a date no later than two (2) years from the date of the granting of
the certificate by the State Tax Commission.
1.2 The Company shall meet the affirmative action goal included in the
application or in any documents supplied by the City and utilized by the
Company, including any additional representations made to the City Commission
on or before the date two (2) years after the granting of the certificate by the State
Tax Commission. It shall maintain the said levels of employment diversity during
the period of the certificate.
1.3 The Company, by the end of two (2) years from the date of the grant of the
certificate by the State Tax Commission shall have completed the investment of
$420,144 in real property rehabilitation as shown in the application.
1.4 That the rehabilitated facility to receive the tax abatement treatment shall be
completed on or before the date two (2) years from the date of granting of the
certificate by the State Tax Commission.
1.5 The Company shall pay its specific taxes required by the act in a timely
manner, and shall not delay payments so as to incur any penalties or interest.
1.6 The Company shall not appeal the valuation of any real property at the
facility to the Michigan Tax Tribunal or the State Tax Commission if that
property is subject to the industrial facilities exemption certificate.
1.7 The Company shall fully cooperate with the City representatives in
supplying all requested and required documentation regarding jobs, investment,
the meeting of all goals and the timely rehabilitation and utilization of the facility.
The City shall be entitled to inspect at reasonable hours the Company’s premises
where the said rehabilitation has incurred and where the said jobs are performed.
1.8 The Company shall maintain, during the entire period for which the tax
abatement is granted, the level of jobs, affirmative action goals, production and
utilization of the facility at the site where the district has been created and for
which the tax exemption has been granted.
1.9 The Company shall not cause or fail to cure the release of any hazardous
substance, or the violation of any environmental law on its premises in the City.
It shall report any releases to the appropriate governmental authority in a timely
and complete manner, and provide copies of said report documentation to the
City. It shall comply with all orders and actions of any governmental agency
having authority.
1.10 The Company shall maintain the facility so as to minimize physical or
functional obsolescence.
32577165.1 Page 2
1.11 The Company shall continue to operate its business location in the City,
containing the same number of and type of jobs, for the term of the certificate.
2. AGREEMENT BY THE CITY. Provided this contract has been executed and
further provided all applications to create the district and achieve the industrial facility
exemption certificate have been properly filed, the City shall, in a timely manner,
determine in a public meeting to create the district and receive, process, and approve
thereafter the Company’s application for an industrial facilities exemption certificate.
The City may consider this contract in a meeting separate from and prior to the meeting
in which the City considers the creation of the district and approval of the application for
certificate. Further, the City shall require the submission of this contract signed by the
Company together with its applications, before creating the district.
3. EVENTS OF DEFAULT. The following actions or failures to comply shall be
considered events of default by the Company:
3.1 Failure to meet any of the commitments set forth above.
3.2 The closing of the Company’s facilities in the City. Closing shall mean for
purpose of this Agreement, the removal, without transfer to another site within the
City of substantially all of the production facilities, and the elimination of
substantially all the jobs created or retained thereby, which are set forth in the
Company’s application.
3.3 Failure to afford to the City the documentation and reporting required.
3.4 The failure to create or retain jobs, meet affirmative action goals or expend
the funds on the facility as represented in the application within the times required
hereby.
3.5 The bankruptcy or insolvency of the Company.
3.6 The failure to pay any and all taxes and assessments levied on the
Company’s property or any other taxes, local, state or federal, including but not
limited to City income taxes and the withholding of said City income taxes from
employees as required by the City Income Tax Ordinance.
3.7 The performance or omission of any act which would lead to revocation
under MCLA 207.565, being §15 of the Act.
3.8 The violation of any provisions, promises, commitments, considerations or
covenants of this Agreement.
32577165.1 Page 3
4. REMEDIES ON DEFAULT. In the event of any of the above defaults the City
shall have the following remedies which it may invoke without notice, except as may be
reasonably required by the Company’s rights to due process:
4.1 In the event of closing as determined after investigation of the facts and a
public hearing, the Company shall be immediately liable for penalties to be paid
forthwith to the city as determined as follows:
4.1.1 The Company shall pay to the City for prorata distribution to the
taxing units experiencing the abatement, an amount equal to the difference
between the industrial facilities tax which it has paid, and the total
property taxes to the relevant taxing units which it would have paid, given
its rehabilitation, during the years for which the certificate was in effect.
4.1.2 Immediate Revocation. The Company hereby consents to
revocation to the IFT certificate before the State Tax Commission, without
hearing, and the City shall submit a copy of this Agreement to the State
Tax Commission in connection with its revocation procedure, giving
notice that the default has occurred and immediate revocation should
occur.
4.2 In the event the rehabilitated facility has not been installed before the two (2)
year period, in addition to the revocation procedures before the State Tax
Commission, the abatement should immediately be reduced by the City
proportionately, and any rehabilitation which has not been finished at the end of
said two (2) year period shall not be eligible for the abatement thereafter and shall
be placed on the regular tax roll.
4.3 Failure to Expend the Funds Represented. In the event, (whether or not the
rehabilitation has been completed), the Company has not expended the funds it
has represented on its application that it would invest for the rehabilitation of the
facility, the abatement shall be reduced prorata, and any remaining value of the
facility shall be placed on the regular tax roll.
4.4 Job Creation and Retention. In the event the promised number of jobs have
not been created or retained at the end of the two (2) years after the grant of the
certificate by the State Tax Commission, the abatement shall be proportionately
reduced.
4.5 Affirmative Action Goals. In the event, after one (1) year from the grant of
the certificate by the State Tax Commission, the affirmative action goals of the
City for additional jobs have not been met on a prorata basis, the abatement shall
be revoked.
32577165.1 Page 4
4.6 For other violations of this Agreement or for actions or omissions by the
Company amounting to grounds for revocation by statue, the City shall
recommend to the State Tax Commission immediate revocation of the certificate.
4.7 Special Assessment. For any amount due to be paid to the City, under this
Section 4, the Company consents that the City shall have a personal action against
the Company for the said amount, and in addition, cumulatively, and not by
election, the City shall have a special assessment lien on all the property of the
Company personal and real, located in the City, for the collection of the amounts
due as and in the manner of property taxes and in such case the collection of the
said special assessment shall be accomplished by addition by the City to the
Company’s property tax statement regularly rendered.
5. Governing Law. This Agreement shall be construed and enforced in accordance
with the laws of the State of Michigan applicable to contracts made and to be
performed within the State of Michigan.
6. Counterparts. This Agreement may be executed in one or more counterparts.
Notwithstanding such execution all such counterparts shall constitute one and the same
Agreement.
7. Benefit. This Agreement shall be binding upon and inure to the benefit of the
respective parties, their successors and personal representatives.
8. Effective Date. This Agreement shall be effective on the date the State of
Michigan Tax Commission grants the company at Industrial Facilities Exemption
Certificate.
CITY OF MUSKEGON
By _________________________
Stephen J. Gawron, Mayor
Date _________________________
and___________________________
Ann Meisch, Clerk
Date _________________________
By___________________________
Chief Financial Officer
Its______________________
10/25/2019
Date _________________________
32577165.1 Page 5
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