View the PDF version Google Docs PDF Viewer
CITY OF MUSKEGON CITY COMMISSION MEETING JULY 28, 2020 @ 5:30 P.M. MUSKEGON CITY COMMISSION CHAMBERS 933 TERRACE STREET, MUSKEGON, MI 49440 REMOTE MEETING AGENDA □ CALL TO ORDER: □ ROLL CALL: □ HONORS AND AWARDS: □ CONSENT AGENDA: A. Approval of Minutes City Clerk B. FY2020-21 Sewer Rate Resolution Update Finance C. 9th Street Sewer & Getty Force Main Project – Change Order #001 Public Works D. Tetratech Professional Services Agreement Public Works E. Concession Agreement – Pizza Cone Trolley Public Works F. Concession Agreement – Carlson Almonds Public Works G. Vehicle Replacement DPW/Equipment H. 2020 Byrne JAG Grant Public Safety I. Cooperative Mutual Aid Fire Control Agreement Public Safety J. Lakeview Lofts Phase II Bridge Loan Economic Development K. Purchase Agreement 1188 4th Street City Manager □ PUBLIC HEARINGS: A. Infill Housing Project Brownfield Public Hearing Economic Development □ UNFINISHED BUSINESS: □ NEW BUSINESS: A. West Urban Properties Agreement City Manager B. Amendment to the Temporary Uses Ordinance Planning C. Mobile Food Vending Ordinance Updates City Clerk Page 1 of 2 □ ANY OTHER BUSINESS: □ PUBLIC COMMENT: ► Reminder: Individuals who would like to address the City Commission shall do the following: ► Fill out a request to speak form attached to the agenda or located in the back of the room. ► Submit the form to the City Clerk. ► Be recognized by the Chair. ► Step forward to the microphone. ► State name and address. ► Limit of 3 minutes to address the Commission. ► (Speaker representing a group may be allowed 10 minutes if previously registered with City Clerk.) □ CLOSED SESSION: □ ADJOURNMENT: ADA POLICY: THE CITY OF MUSKEGON WILL PROVIDE NECESSARY AUXILIARY AIDS AND SERVICES TO INDIVIDUALS WHO WANT TO ATTEND THE MEETING UPON TWENTY-FOUR HOUR NOTICE TO THE CITY OF MUSKEGON. PLEASE CONTACT ANN MARIE MEISCH, CITY CLERK, 933 TERRACE STREET, MUSKEGON, MI 49440 OR BY CALLING (231) 724- 6705 OR TTY/TDD DIAL 7-1-1-22 TO REQUEST A REPRESENTATIVE TO DIAL (231) 724-6705. Page 2 of 2 Agenda Item Review Form Muskegon City Commission Commission Meeting Date: July 22, 2020 Title: Approval of Minutes Submitted By: Ann Marie Meisch, MMC Department: City Clerk Brief Summary: To approve the minutes of the July 13, 2020 Worksession and July 14, 2020 Regular City Commission meetings. Detailed Summary: N/A Amount Requested: N/A Amount Budgeted: N/A Fund(s) or Account(s): N/A Fund(s) or Account(s): N/A Recommended Motion: To approve the minutes. For City Clerk Use Only: Commission Action: CITY OF MUSKEGON CITY COMMISSION WORKSESSION Monday, July 13, 2020 5:30 p.m. REMOTE MEETING MINUTES 2020-40 Present: Mayor Gawron, Vice Mayor Hood, Commissioners German, Rinsema- Sybenga, Emory, and Johnson Absent: Commissioner Ramsey Sewer Rate & Budget Implications – Public Works The City Commission approved a 3% rate increase to the sewer at the June 23rd Commission Meeting. This resulted in an approximately $350,000 shortfall in the sewer fund for the 20-21 Budget Year. A memo was provided summarizing options to making up the shortfall. City Commissioners discussed options presented in the memo provided by the Public Works Director, Leo Evans, who explained where the increase in cost is coming from as well as some options to possibly reduce expenses, options to potentially increase revenue, and some other alternatives. Commissioners discussed the possibility of a 2% increase and removal of projects to help cover the shortfall. Mercy Health Arena Solar Installation – Public Works Public Works Director, Leo Evans, presented information regarding preliminary proposals from Charthouse Energy to install and operate solar arrays on the roofs of Mercy Health Arena and the Annex. The Preliminary proposal from Charthouse Energy that summarizes the project and the parameters. Charthouse Energy has already successfully partnered with several other local municipalities namely Muskegon Heights and Norton Shores on projects as well as several private installations including Torresen’s Marina. The Commission is supportive of the project. West Urban Properties Agreement – City Manager In June, the City Commission accepted a Letter of Intent from West Urban Properties and authorized the city manager and city attorney to finalize a development agreement. The proposed development agreement is provided and recommended for approval. We are proposing the framework of a Pilot program that we would use to initially partner with West Urban Properties to construct 100 units on vacant city lots. As part of the program, either the City of West urban Properties may choose to stop home construction prior to the completion of the 100 homes. The program is expected to be applicable to many different builders/developers and many different housing types and densities. As the City tries to reverse 40+ years of neighborhood disinvestment, it is important that we acknowledge the areas that make us less attractive for development than urban areas. Some of those items are more in our control than others. This program focuses strictly on developer return on investment – with the goal of the city acting as a partner to help ensure that a major investment in rental housing neither fails to cashflow nor causes unreasonable increases in local rents. Many times, affordability and profitability contradict one another – this Pilot program is designed to help attain both. The City Commission will have the opportunity to review the proposed program and the item will be placed on the agenda for consideration on July 28, 2020. There was some discussion regarding the Brownfield Amendment Plan as it relates to the West Urban Properties Pilot Program and other infill housing opportunities, including future opportunities. The Worksession Meeting adjourned at 7:45 p.m. Respectfully Submitted, Ann Marie Meisch, MMC – City Clerk CITY OF MUSKEGON CITY COMMISSION MEETING JULY 14, 2020 @ 5:30 P.M. MUSKEGON CITY COMMISSION CHAMBERS 933 TERRACE STREET, MUSKEGON, MI 49440 REMOTE MEETING MINUTES The Regular Commission Meeting of the City of Muskegon was held electronically with the Mayor, Vice Mayor and Commissioners participating via Zoom – a remote conferencing service, Clerk staff present at 933 Terrace Street, Muskegon, MI at 5:30 p.m., Tuesday, July 14, 2020. ROLL CALL FOR THE REGULAR COMMISSION MEETING: Present: Mayor Stephen J. Gawron, Vice Mayor Eric Hood, Commissioners Ken Johnson, Dan Rinsema-Sybenga, Willie German, Jr., Teresa Emory, and Michael Ramsey, City Manager Frank Peterson, City Attorney John Schrier, and City Clerk Ann Meisch. 2020-41 CONSENT AGENDA: A. Approval of Minutes City Clerk SUMMARY OF REQUEST: To approve the minutes of the June 23, 2020 Regular City Commission Meeting. STAFF RECOMMENDATION: To approve the minutes. C. Human Resources Services Agreement EEO & Employee Relations SUMMARY OF REQUEST: The current contractual agreement with Muskegon County for Human Resources Services ended as of the June 30, 2020. The City of Muskegon is proposing to continue services with this new agreement that proposes a 2% raise annually for the duration of the three-year contract that will end June 30, 2023. AMOUNT REQUESTED: 2% increase annually FUND OR ACCOUNT: Civil Service Budget STAFF RECOMMENDATION: To approve the agreement and authorize the Mayor and Clerk to sign. D. Setting Infill Housing Project Brownfield Public Hearing Economic Development Page 1 of 4 SUMMARY OF REQUEST: The Brownfield Redevelopment Authority will be meeting on July 14 to consider approval of the Brownfield Plan Amendment for the City of Muskegon’s Infill Housing Project (1st Amendment) and the City Commission will be requested to schedule a public hearing on that plan for July 28, 2020. City staff has prepared and submitted a brownfield plan to include additional parcels, primarily located within the Nelson and Jackson Hill Neighborhoods, that will facilitate the development of infill housing at eligible properties. Activities include the redevelopment and rehabilitation of subject parcels; construction of new residential units; demolition of the former Froebel school in order to redevelop that property with residential units; and public infrastructure at the former farmers market to add additional residential units. The resolution of approval by the Brownfield Redevelopment Authority and a resolution setting the July 28, 2020 hearing are attached. STAFF RECOMMENDATION: To approve the resolution setting a public hearing for July 28, 2020 on the city’s Infill Housing Project Brownfield Plan Amendment (1st Amendment) and notify the appropriate taxing units. E. Sale of House at 254 W. Southern Avenue Planning SUMMARY OF REQUEST: Request to approve the sale of the City-owned home at 254 W. Southern to Filppin Awesome, LLC for $2,300. This is a vacant home that the city acquired through the tax sale. STAFF RECOMMENDATION: To approve the sale of the City-owned home at 254 W Southern Avenue to Flippin Awesome, LLC for $2,300. F. LMC Loan Agreement Loan # 41 Public Safety SUMMARY OF REQUEST: Review the Loan Agreement between the Lakeshore Museum Center and the City of Muskegon for displaying the 1923 LaFrance Fire Engine and attached equipment. STAFF RECOMMENDATION: Accept the terms of Loan #41 between LMC and the City of Muskegon. H. Marina & Launch Ramp Parking Ordinance Amendments Public Safety SUMMARY OF REQUEST: Review and approve the amended ordinances including Sec 58-5 naming the Department of Public Works as the successor to the Department of Leisure Services. Sec 92-73 parking violations bureau; minimum parking fines, and 92-74 marina parking restrictions; violation as a municipal civil infraction and public boat launch permit violation fines. STAFF RECOMMENDATION: Approval of the amended ordinances for Marina and Launch Ramp Parking. I. Approval of Sale: City Home at 567 Leonard Avenue Community and Page 2 of 4 Neighborhood Services SUMMARY OF REQUEST: To approve the resolution and instruct the Community and Neighborhood Services Department to complete the sales transaction with Cassandra Wallace for the rehabilitated home at 567 Leonard Avenue for a purchase Price of $85,000. STAFF RECOMMENDATION: To approve the resolution and direct the CNS staff to complete the sale. J. West Urban Properties Agreement City Manager – REMOVED FOR FUTURE CONSIDERATION K. Purchase Agreement 1188 4th Street City Manager – REMOVED PER STAFF REQUEST Motion by Commissioner Rinsema-Sybenga second by Commissioner German, to approve the consent agenda as presented, except items B and G. ROLL VOTE: Ayes: Rinsema-Sybenga, Emory, Johnson, Gawron, Hood, Ramsey, and German Nays: None MOTION PASSES 2020-42 REMOVED FROM CONSENT AGENDA: B. Notice of Intent Resolution – Capital Items including Central Dispatch Finance SUMMARY OF REQUEST: This resolution authorizes the publication of a Notice of Intent relating to issuing capital bonds for the purpose of paying all or part of the costs to acquire, construct, furnish and equip additions and improvements to the Muskegon Central Dispatch 9-1-1 facility and fire station, Hartshorn Marina including new docks, clubhouse and pool improvements, acquire police department body camera equipment, and refinance existing obligations to finance a new roof and heating and cooling ventilation to Mercy Health Arena. The Notice of Intent Resolution indicates the City’s intent to issue its limited tax full faith and credit Capital Improvement Bonds in an amount not to exceed $11,000,000 to pay all or part of the cost of the above listed projects. It is anticipated that Central Dispatch will pay the cost of the improvements to their facility and it is anticipated that the Hartshorn Marina improvements will be paid from the Brownfield Plan associated with that project. This resolution authorizes the City Clerk to publish a notice which gives the voters a referendum right on the issuance of the Bonds. The referendum period is 45 days. The commission will be asked at a later date to approve the issuance of bonds once the exact costs and bond details are known. STAFF RECOMMENDATION: To approve the Notice of Intent Resolution to Page 3 of 4 issue Capital Improvement Bonds in an amount not to exceed $11,000,000. Motion by Commissioner Johnson second by Commissioner Rinsema-Sybenga, to approve the Notice of Intent Resolution to issue Capital Improvement Bonds in an amount not to exceed $11,000,000. ROLL VOTE: Ayes: Emory, Johnson, Gawron, Hood, Ramsey, German, and Rinsema-Sybenga Nays: None MOTION PASSES G. Muskegon Central Dispatch Tower Site Lease Agreement Public Safety SUMMARY OF REQUEST: Review and approve the MCD tower site lease agreement. As detailed in the lease agreement, the tower site lease includes all communication equipment and buildings necessary for use and maintenance of the newly constructed communications tower. STAFF RECOMMENDATION: Approval of the tower site lease agreement between the City of Muskegon and Muskegon Central Dispatch. Motion by Commissioner Johnson second by Commissioner Rinsema-Sybenga, to approve the tower site lease agreement between the City of Muskegon and Muskegon Central Dispatch. Motion by Commissioner Johnson, second by Commissioner Ramsey, to table the motion for approval of the tower site lease agreement between the City of Muskegon and Muskegon Central Dispatch until August 11, 2020. ROLL VOTE: Ayes: Gawron, Hood, Ramsey, German, Rinsema-Sybenga, Emory, and Johnson Nays: None MOTION PASSES PUBLIC COMMENT: No public comments were received. ADJOURNMENT: The City Commission meeting adjourned at 6:10 p.m. Respectfully Submitted, Ann Marie Meisch – MMC, City Clerk Page 4 of 4 Agenda Item Review Form Muskegon City Commission Commission Meeting Date: July 28, 2020 Title: FY2020-21 Sewer Rate Resolution Update Submitted By: Beth Lewis Department: Finance Brief Summary: The FY2020-21 sewer rate increase as agreed to at the July 13, 2020 Commission Worksession is 5%, this resolution establishes the new rate. Detailed Summary: At the June 23, 2020 meeting the Commission approved a 3% sewer rate increase, after further discussion at the July 13, 2020 Worksession a 5% sewer rate increase was agreed upon. This resolution establishes the new sewer rate. Amount Requested: Amount Budgeted: Fund(s) or Account(s): Fund(s) or Account(s): Recommended Motion: To adopt the FY2020-21 Sewer Rate Resolution. Check if the following Departments need to approve the item first: Police Dept. Fire Dept. IT Dept. For City Clerk Use Only: Commission Action: CITY OF MUSKEGON RESOLUTION NO.________ At a regular meeting of the City Commission of Muskegon, Michigan, held at the City Commission Chambers on July 28, 2020. RECITALS A review of the rates for sewer service has been accomplished by the city's staff, recommendations received, and the City Commission has determined that the following rate changes are justified. Accordingly, this resolution is made for the purpose of maintaining the financial viability of the city's sewer system. THEREFORE, THE CITY COMMISSION OF THE CITY OF MUSKEGON HEREBY RESOLVES: 1. Effective June 23, 2020, to rescind City of Muskegon Resolution No. 2019-53(F), which was adopted June 25, 2019. 2. Charges for residential sewer service shall be changed from a multiplier of 1.81 to 1.90 of the rate the county bills the city for wastewater treatment effective July 1, 2020, with future rates to be adjusted as the county charges are adjusted. The monthly sewer administration charge shall remain unchanged at $3.00. 3. Charges for commercial/industrial sewer service shall continue to be billed at a rate of 1.25 times (1.25x) the city rate for residential sewer service. The monthly sewer administration charge shall remain unchanged to $3.00. 4. Charges for all non-metered residential sewer customers will be calculated based on an assumed usage rate of 12 hundred cu. ft. per month. 5. Unless there is a separate agreement specifying a different billing method, non-resident users of the city sewer system will be billed at a rate that is double (2x) the city rate for that class of user. The above changes to be effective as noted above. This resolution adopted. YEAS: NAYS: CITY OF MUSKEGON By: ______________________________ Ann Marie Meisch, MMC, City Clerk STATE OF MICHIGAN COUNTY OF MUSKEGON I hereby certify that the foregoing is a true and complete copy of a resolution adopted at a meeting of the Board of Commissioners of the City of Muskegon, Michigan, held on the 23rd day of June, 2020 and that the minutes of the meeting are on file in the office of the City Clerk and are available to the public. Public notice of the meeting was given pursuant to and in compliance with Act 267, Public Acts of Michigan, 1976. Agenda Item Review Form Muskegon City Commission Commission Meeting Date: 07/28/2020 Title: Project 91852 & 91853 / Change Order #001 Submitted By: Leo Evans Department: Public Works Brief Summary: Change Order #001 for projects 91852 & 91853 exceeds the staff authorization levels and requires Commission Approval. Detailed Summary: Change Order #001 for the 9th Street Sewer & Getty Force Main Project (91852 & 91853) exceeds the staff approval level of $30,000. The change order includes additional payment for removal of timber obstructions on the bore and jack placement under Shoreline Drive and other minor revisions. The total Change Order value represents an increase of $35,202.25 which has been reviewed by staff and is recommended. The original contract value is $1,899,971.50. The recommended change order represents an increase of 1.8% to the project cost. The total project budget includes up to a 6% contingency which is not exceeded by this change order. Staff will pursue reductions in project cost on future items to offset the increase. Amount Requested: $0 Amount Budgeted: $2,217,530.00 (Covered by budgeted contingency) Fund(s) or Account(s): 590-91852/91853 Fund(s) or Account(s): 590-91852/91853 Recommended Motion: Authorize staff to approve Change Order #001 for Project 91852 & 91853. Check if the following Departments need to approve the item first: Police Dept. Fire Dept. IT Dept. For City Clerk Use Only: Commission Action: CHANGE ORDER Date: June 1, 2020 No.: 1 OWNER City of Muskegon CONTRACTOR Hallack Contracting Project: 9th Street & Getty Forcemain Improvements ENGINEER’S Project No. 837930 ENGINEER Fleis & VandenBrink Engineering, Inc. You are directed to make the following changes in the Contract Documents: Description: 9th Street Sewer Project 1. Bore & Jack: Additional time and materials for unforeseen wood debris. Add: $33,679.80 2. Arrow Board Required by MDOT for Bore & Jack Work (21 days x $400/day). Add: $8,400.00 3. Miss Dig Marking of Private Utilities in Heritage Landing by Belasco Electric. Add: $472.45 4. Reinstall Fence at Depot Motel on 8th Street. Add: $750.00 5. Add 8” x 6” Wye (23 Ea. x $350) Add: $8,050.00 6. Reduce quantity of Item #47: 18” x 6” Wye from 29 to 10 Ea. (-19 Ea x $850) Deduct: ($16,150.00) Total: $35,202.25 • A 17 day time extension is requested due to the above items. CHANGE IN CONTRACT PRICE: CHANGE IN CONTRACT TIMES: Original Contract Price Original Contract Times: Substantial Completion: 130 days $ 1,899,971.50 Ready for final payment: 140 days Net Increase (Decrease) from previous Change Net change from previous Change Orders No. N/A Orders No. N/A to N/A: to No. N/A: Substantial Completion: -0- $ 0.00 Ready for final payment: -0- Contract Price prior to this Change Order: Contract Times prior to this Change Order: Substantial Completion: 130 days $ 1,899,971.50 Ready for final payment: 140 days Net increase (decrease) of this Change Order: Net increase (decrease) this Change Order: Substantial Completion: 17 days $ 35,202.25 Ready for final payment: 17 days Contract Price with approved Change Orders: Contract Times with all approved Change Orders: Substantial Completion: 147 days $ 1,935,173.75 Ready for final payment: 157 days RECOMMENDED: APPROVED: ACCEPTED: By: By: By: ENGINEER (Authorized Signature) OWNER (Authorized Signature) CONTRACTOR (Authorized Signature) Date: 6/1/2020 Date: Date: 837930 Change Order #1.docx Agenda Item Review Form Muskegon City Commission Commission Meeting Date: 07/28/2020 Title: Tetratech Professional Services Agreement Submitted By: Sanjeev Mungarwadi Department: Public Works - Filtration Brief Summary: Filtration plant is requesting approval to enter into professional services agreement with Tetratech for MCC upgrades at Harvey Booster Station. Detailed Summary: The 1960’s Motor Control Center (MCC) #1 at Harvey Station requires upgrading because of reliability issues. Upgrading soft starters for constant speed Pumps #1 and #2 to variable frequency drives (VFDs) will add reliability, efficiency and level of service. The scope of work also includes bidding, construction assistance, and programming. Tetra Tech is being recommended since they were the engineer for the control systems upgrades project and their familiarity with our system.The funding will come from budgeted item for Harvey Pump Station for $405,000. Shown as Water Filtration – WRMWA Ineligible in the 20/21 Budget. Amount Requested: $31,000 Amount Budgeted: $405,000 Fund(s) or Account(s): 591-60558-5400 Fund(s) or Account(s): 591-60558-5400 Recommended Motion: Authorize staff to enter into professional services agreement with Tetratech for MCC upgrades at Harvey Booster Station for $31,000. Check if the following Departments need to approve the item first: Police Dept. Fire Dept. IT Dept. For City Clerk Use Only: Commission Action: April 24, 2020 Transmitted Electronically Mr. Sanjeev Mungarwadi Muskegon Water Filtration Plant Superintendent 1900 Beach Street Muskegon, MI 49441 Re: Muskegon Harvey Booster Station MCC No. 1 Upgrades Proposal Dear Mr. Mungarwadi: Thank you for the opportunity to submit our professional services proposal to assist the City of Muskegon with upgrading the Harvey Booster Station Motor Control Center (MCC) No. 1 and pump variable speed drives (VFD’s). Tetra Tech has been involved with the City of Muskegon WFP control system since the early 1990’s and continues to serve the City of Muskegon with control system design, implementation and programming tasks from a verity of our most experienced engineering staff, some who have been involved with engineering related tasks for the City for nearly 30 years. Our service to the City of Muskegon includes design and implementation of the entire existing control system, including the remote pump stations & tanks as well as many upgrades at the WFP. Tetra Tech staff are always a phone call away and have assisted the WFP staff on many occasions, including outside of normal business hours. Based on our discussions it is our understanding that you would like to upgrade Harvey Booster Station MCC No. 1 and also replace two existing soft starters for City pump No. 1 and No. 2 with new VFD’s. Currently City pumps No. 1 and No. 2 are constant speed (soft starters) operation, this upgrade will add variable frequency drives (variable speed operation) to both of the City pumps. Tetra Tech proposes to provide design, assistance with direct contractor price procurement, construction and programming integration services under this proposal. SCOPE OF WORK The detailed scope of engineering services is as follows: Design • Tetra Tech will collect important onsite design information from the City to proceed with full design (see assumptions below). • Tetra Tech will develop design drawings and project specifications for the Harvey MCC No. 1 and existing City pump No. 1 and No. 2 soft starter to VFD upgrades to include the following elements: Tetra Tech 710 Avis Drive, Ann Arbor, MI 48108 Tel 734.665.6000 Fax 734.213.3002 www.tetratech.com Design Elements: o Electrical background plans o Detailed wiring diagrams for the VFD’s and related pump discharge valves o Floor Plans o Power one-line and surge protection o PLC input/output (I/O) o Prepare project specifications Bidding (None) • Tetra Tech will assist the City with procuring a competitive construction price from up to 4 contractors similar in nature to the recently completed SCADA upgrades project. We have budgeted a total of 2-hours for this task. Construction Assistance • Tetra Tech will conduct one onsite pre-construction meeting. • Tetra Tech will provide 2-days of on-site construction verification to verify the contractor has installed and configured the components correctly. • In addition, Tetra Tech will provide onsite start-up services to assist the City during installation and startup of the system. We have budgeted a total of 16-hours for an electrical engineer and 16-hours for a programmer to fully commission the software and verify the hardware. Programming • Tetra Tech will modify the existing programmable logic controller (PLC) programs to integrate the new Allen-Bradley PLC Input/outputs (I/O) to control the two new VFD’s. • Tetra Tech will modify the existing PLC logic at the WFP that communicates to the booster station PLC to integrate the new VFD’s into the WFP SCADA system. • Tetra Tech will update the Harvey Booster Station Wonderware screen to incorporate the two new VFD’s. • Tetra Tech will modify the existing Wonderware Historian to incorporate the new analog signals associated with the Harvey VFD’s. ASSUMPTIONS • City will provide the following information as part of the project field investigation; o Gather data on existing MCC buckets. o Field verify conduit & wire length. o Provide site pictures of existing MCC buckets, floor space, conduit and general electrical conditions. o Provide necessary field measurements and assist with field verifying background plans. 2 PRELIMINARY COST ESTIMATE The following estimated budgetary costs is derived from recent similar projects. A more formal construction cost estimate will be developed as part of the design. Harvey MCC No. 1 - $50,000 City pump VFD No. 1 - $25,000 City pump VFD No. 2 - $25,000 Harvey Panel Rework - $7,000 Project Total - $107,000 COMPENSATION Compensation for the professional services for this project will be based on time and materials at a not to exceed fee of $31,000. If you concur with our proposal, please sign in the space provided below and return one original signed copy of this proposal to indicate your authorization to proceed. A return envelope is enclosed for your convenience. Our Standard Terms and Conditions are attached and considered a part of this proposal. SCHEDULE We are prepared to begin work immediately upon receipt of your written authorization to proceed. A preliminary schedule is presented below: • Design 3-months from notice to proceed • In-house System Programming Following design completion • Project Completion 5-7 months following contractors notice to start CONCLUSION We look forward to working with you on this important project. If you need additional information, please call me at (734) 213-5075. Sincerely, Mick S. Jones, P.E. Senior Project Manager Encl.: Standard Terms and Conditions PROPOSAL ACCEPTED BY TITLE DATE Muskegon Harvey Booster Station MCC No. 1 Upgrades Proposal 3 Tetra Tech of Michigan, PC Engineering Services Standard Terms & Conditions Services Consultant will perform services for the Project as set forth in Attachment A and Ownership of Documents Drawings, specifications, reports, programs, manuals, or in accordance with these Terms & Conditions. Consultant has developed the Project other documents, including all documents on electronic media, prepared under this scope of service, schedule, and compensation based on available information and Agreement are instruments of service and are, and shall remain, the property of various assumptions. The Client acknowledges that adjustments to the schedule and Consultant. Record documents of service shall be based on the printed copy. Consultant compensation may be necessary based on the actual circumstances encountered by will retain all common law, statutory, and other reserved rights, including the copyright Consultant in performing their services. Consultant is authorized to proceed with services thereto. Consultant will furnish documents electronically; however, the Client releases upon receipt of an executed Agreement. Consultant from any liability that may result from documents used in this form. Consultant Compensation In consideration of the services performed by Consultant, the Client shall shall not be held liable for reuse of documents or modifications thereof by the Client or its pay Consultant in the manner set forth above. The parties acknowledge that terms of representatives for any purpose other than the original intent of this Agreement, without compensation are based on an orderly and continuous progress of the Project. written authorization of and appropriate compensation to Consultant. Compensation shall be equitably adjusted for delays or extensions of time beyond the Standard of Care Services provided by Consultant under this Agreement will be control of Consultant. Where total project compensation has been separately identified performed in a manner consistent with that degree of care and skill ordinarily exercised for various tasks, Consultant may adjust the amounts allocated between tasks as the by members of the same profession currently practicing under similar circumstances. work progresses so long as the total compensation amount for the project is not Consultant makes no warranty or guaranty, either express or implied. Consultant will not exceeded. be liable for the cost of any omission that adds value to the Project. Fee Definitions The following fee types shall apply to methods of payment: Period of Service This Agreement shall remain in force until completion and acceptance Salary Cost is defined as the individual’s base salary plus customary and statutory of the services or until terminated by mutual agreement. Consultant shall perform the benefits. Statutory benefits shall be as prescribed by law and customary benefits services for the Project in a timely manner consistent with sound professional practice. shall be as established by Consultant employment policy. Consultant will strive to perform its services according to the Project schedule set forth in Cost Plus is defined as the individual’s base salary plus actual overhead plus the provisions for Scope of Work/Fee/Schedule in Attachment A. The services of each professional fee. Overhead shall include customary and statutory benefits, task shall be considered complete when deliverables for the task have been presented administrative expense, and non-project operating costs. to the Client. Consultant shall be entitled to an extension of time and compensation adjustment for any delay beyond Consultant control. Lump Sum is defined as a fixed price amount for the scope of services described. Standard Rates is defined as individual time multiplied by standard billing rates for Insurance and Liability Consultant shall maintain the following insurance and coverage that individual. limits during the period of service. The Client will be named as an additional insured on Subcontracted Services are defined as Project-related services provided by other the Commercial General Liability and Automobile Liability insurance policies. parties to Consultant. Worker’s Compensation – as required by applicable state statute Reimbursable Expenses are defined as actual expenses incurred in connection Commercial General Liability - $1,000,000 per occurrence for bodily injury, including with the Project. death and property damage, and $2,000,000 in the aggregate Payment Terms Consultant shall submit invoices at least once per month for services Automobile Liability –$1,000,000 combined single limit for bodily injury and property performed and Client shall pay the full invoice amount within 30 days of the invoice date. damage Invoices will be considered correct if not questioned in writing within 10 days of the invoice Professional Liability (E&O) - $1,000,000 each claim and in the aggregate date. Client payment to Consultant is not contingent on arrangement of project financing The Client shall make arrangements for Builder’s Risk, Protective Liability, Pollution or receipt of funds from a third party. In the event the Client disputes the invoice or any Prevention, and other specific insurance coverage warranted for the Project in amounts portion thereof, the undisputed portion shall be paid to Consultant based on terms of this appropriate to the Project value and risks. Consultant shall be a named insured on those Agreement. Invoices not in dispute and unpaid after 30 days shall accrue interest at the policies where Consultant may be at risk. The Client shall obtain the counsel of others in rate of one and one-half percent per month (or the maximum percentage allowed by law, setting insurance limits for construction contracts. whichever is the lesser). Invoice payment delayed beyond 60 days shall give Consultant Indemnification Consultant shall indemnify and hold harmless the Client and its the right to stop work until payments are current. Non-payment beyond 70 days shall be employees from any liability, settlements, loss, or costs (including reasonable attorneys’ just cause for termination by Consultant. fees and costs of defense) to the extent caused solely by the negligent act, error, or Additional Services The Client and Consultant acknowledge that additional services omission of Consultant in the performance of services under this Agreement. If such may be necessary for the Project to address issues that may not be known at Project damage results in part by the negligence of another party, Consultant shall be liable only initiation or that may be required to address circumstances that were not foreseen. In that to the extent of Consultant’s proportional negligence. event, Consultant shall notify the Client of the need for additional services and the Client Dispute Resolution The Client and Consultant agree that they shall diligently pursue shall pay for such additional services in an amount and manner as the parties may resolution of all disagreements within 45 days of either party’s written notice using a subsequently agree. mutually acceptable form of mediated dispute resolution prior to exercising their rights Site Access The Client shall obtain all necessary approvals for Consultant to access the under law. Consultant shall continue to perform services for the Project and the Client Project site(s). shall pay for such services during the dispute resolution process unless the Client issues Underground Facilities Consultant and/or its authorized subcontractor will conduct a written notice to suspend work. Causes of action between the parties to this Agreement research and perform site reconnaissance in an effort to discover the location of existing shall be deemed to have accrued and the applicable statutes of repose and/or limitation underground facilities prior to developing boring plans, conducting borings, or undertaking shall commence not later than the date of substantial completion. invasive subsurface investigations. Client recognizes that accurate drawings or Suspension of Work The Client may suspend services performed by Consultant with knowledge of the location of such facilities may not exist, or that research may reveal as- cause upon fourteen (14) days written notice. Consultant shall submit an invoice for built drawings or other documents that may inaccurately show, or not show, the location services performed up to the effective date of the work suspension and the Client shall of existing underground facilities. In such events, except for the sole negligence, willful pay Consultant all outstanding invoices within fourteen (14) days. If the work suspension misconduct, or practice not conforming to the Standard of Care cited in this Agreement, exceeds thirty (30) days from the effective work suspension date, Consultant shall be Client agrees to indemnify and hold Consultant and/or its Subcontractor harmless from entitled to renegotiate the Project schedule and the compensation terms for the Project. any and all property damage, injury, or economic loss arising or allegedly arising from Termination The Client or Consultant may terminate services on the Project upon seven borings or other subsurface penetrations. (7) days written notice without cause or in the event of substantial failure by the other Regulated Wastes Client is responsible for the disposal of all regulated wastes party to fulfill its obligations of the terms hereunder. Consultant shall submit an invoice for generated as a result of services provided under this Agreement. Consultant and Client services performed up to the effective date of termination and the Client shall pay mutually agree that Consultant assumes no responsibility for the waste or disposal Consultant all outstanding invoices, together with all costs arising out of such termination, thereof. within fourteen (14) days. The Client may withhold an amount for services that may be in Contractor Selection Consultant may make recommendations concerning award of dispute provided that the Client furnishes a written notice of the basis for their dispute and construction contracts and products. The Client acknowledges that the final selection of that the amount withheld represents a reasonable value. construction contractors and products is the Client’s sole responsibility. Page 1 of 2 Tt Terms & Conditions, Rev 04/01/17 Authorized Representative The Project Manager assigned to the Project by Consultant Safety Consultant shall be responsible solely for the safety precautions or programs of is authorized to make decisions or commitments related to the project on behalf of its employees and no other party. Consultant. Only authorized representatives of Consultant are authorized to execute Information from Other Parties The Client and Consultant acknowledge that Consultant contracts and/or work orders on behalf of Consultant. The Client shall designate a will rely on information furnished by other parties in performing its services under the representative with similar authority. Email messages between Client and members of Project. Consultant shall not be liable for any damages that may be incurred by the Client the project team shall not be construed as an actual or proposed contractual amendment in the use of third party information. of the services, compensation or payment terms of the Agreement. Force Majeure Consultant shall not be liable for any damages caused by any delay that Project Requirements The Client shall confirm the objectives, requirements, constraints, is beyond Consultant’s reasonable control, including but not limited to unavoidable delays and criteria for the Project at its inception. If the Client has established design standards, that may result from any acts of God, strikes, lockouts, wars, acts of terrorism, riots, acts they shall be furnished to Consultant at Project inception. Consultant will review the Client of governmental authorities, extraordinary weather conditions or other natural design standards and may recommend alternate standards considering the standard of catastrophes, or any other cause beyond the reasonable control or contemplation of care provision. either party. Independent Consultant Consultant is and shall be at all times during the term of this Waiver of Rights The failure of either party to enforce any provision of these terms and Agreement an independent consultant and not an employee or agent of the Client. conditions shall not constitute a waiver of such provision nor diminish the right of either Consultant shall retain control over the means and methods used in performing party to the remedies of such provision. Consultant’s services and may retain subconsultants to perform certain services as determined by Consultant. Warranty Consultant warrants that it will deliver services under the Agreement within the standard of care. No other expressed or implied warranty is provided by Consultant. Compliance with Laws Consultant shall perform its services consistent with sound professional practice and endeavor to incorporate laws, regulations, codes, and Severability Any provision of these terms later held to be unenforceable shall be deemed standards applicable at the time the work is performed. In the event that standards of void and all remaining provisions shall continue in full force and effect. In such event, the practice change during the Project, Consultant shall be entitled to additional Client and Consultant will work in good faith to replace an invalid provision with one that compensation where additional services are needed to conform to the standard of is valid with as close to the original meaning as possible. practice. Survival All obligations arising prior to the termination of this Agreement and all Permits and Approvals Consultant will assist the Client in preparing applications and provisions of these terms that allocate responsibility or liability between the Client and supporting documents for the Client to secure permits and approvals from agencies Consultant shall survive the completion or termination of services for the Project. having jurisdiction over the Project. The Client agrees to pay all application and review Assignments Neither party shall assign its rights, interests, or obligations under the fees. Agreement without the express written consent of the other party. Limitation of Liability In recognition of the relative risks and benefits of the project to Governing Law The terms of Agreement shall be governed by the laws of the state both the Client and Consultant, the risks have been allocated such that the Client agrees, where the services are performed provided that nothing contained herein shall be to the fullest extent permitted by law, to limit the liability of Consultant and its interpreted in such a manner as to render it unenforceable under the laws of the state in subconsultants to the Client and to all construction contractors and subcontractors on the which the Project resides. project for any and all claims, losses, costs, damages of any nature whatsoever or claims Collection Costs In the event that legal action is necessary to enforce the payment expenses from any cause or causes, so that the total aggregate liability of Consultant and provisions of this Agreement if Client fails to make payment within sixty (60) days of the its subconsultants to all those named shall not exceed $50,000 or the amount of invoice date, Consultant shall be entitled to collect from the Client any judgment or Consultant’s total fee paid by the Client for services under this Agreement, whichever is settlement sums due, reasonable attorneys’ fees, court costs, and expenses incurred by the greater. Such claims and causes include, but are not limited to negligence, Consultant in connection therewith and, in addition, the reasonable value of Consultant’s professional errors or omissions, strict liability, breach of contract or warranty. time and expenses spent in connection with such collection action, computed at Consequential Damages Notwithstanding any other provision of this Agreement, and to Consultant’s prevailing fee schedule and expense policies. the fullest extent permitted by law, neither the Client nor Consultant, their respective Equal Employment Opportunity Consultant will comply with federal regulations officers, directors, partners, employees, contractors or subconsultants shall be liable to pertaining to Equal Employment Opportunity. Consultant is in compliance with applicable the other or shall make any claim for any incidental, indirect or consequential damages local, state, and federal regulations concerning minority hiring. It is Consultant’s policy to arising out of or connected in any way to the project or to this Agreement. This mutual ensure that applicants and employees are treated equally without regard to race, creed, waiver of consequential damages shall include, but is not limited to, loss of use, loss of sex, color, religion, veteran status, ancestry, citizenship status, national origin, marital profit, loss of business, loss of income, loss of reputation or any other consequential status, sexual orientation, or disability. Consultant expressly assures all employees, damages that either party may have incurred from any cause of action including applicants for employment, and the community of its continuous commitment to equal negligence, strict liability, breach of contract and breach of strict or implied warranty. Both opportunity and fair employment practices. the Client and Consultant shall require similar waivers of consequential damages Attorney Fees Should there be any suit or action instituted to enforce any right granted protecting all the entities or persons named herein in all contracts and subcontracts with in this contract, the substantially prevailing party shall be entitled to recover its costs, others involved in this project or with this Agreement. disbursements, and reasonable attorney fees from the other party. The party that is Waiver of Subrogation Consultant shall endeavor to obtain a waiver of subrogation awarded a net recovery against the other party shall be deemed the substantially against the Client, if requested in writing by the Client, provided that Consultant will not prevailing party unless such other party has previously made a bona fide offer of payment increase its exposure to risk and Client will pay the cost associated with any premium in settlement and the amount of recovery is the same or less than the amount offered in increase or special fees. settlement. Reasonable attorney fees may be recovered regardless of the forum in which Environmental Matters The Client warrants that they have disclosed all potential the dispute is heard, including an appeal. hazardous materials that may be encountered on the Project. In the event unknown Third Party Beneficiaries Nothing in this Agreement shall create a contractual hazardous materials are encountered, Consultant shall be entitled to additional relationship with or a cause of action in favor of a third party against either the Client or compensation for appropriate actions to protect the health and safety of its personnel, the Consultant. The Consultant’s services under this Agreement are being performed and for additional services required to comply with applicable laws. The Client shall solely for the Client’s benefit, and no other entity shall have any claim against the indemnify Consultant from any claim related to hazardous materials encountered on the Consultant because of this Agreement or the performance or nonperformance of services Project except for those events caused by negligent acts of Consultant. hereunder. The Client agrees to include a provision in all contracts with contractors and Cost Opinions Consultant shall prepare cost opinions for the Project based on historical other entities involved in this project to carry out the intent of this paragraph. information that represents the judgment of a qualified professional. The Client and Lien Rights Consultant may file a lien against the Client’s property in the event that the Consultant acknowledge that actual costs may vary from the cost opinions prepared and Client does not make payment within the time prescribed in this Agreement. The Client that Consultant offers no guarantee related to the Project cost. agrees that services by Consultant are considered property improvements and the Client Contingency Fund The Client acknowledges the potential for changes in the work during waives the right to any legal defense to the contrary. construction and the Client agrees to include a contingency fund in the Project budget Captions The captions herein are for convenience only and are not to be construed as appropriate to the potential risks and uncertainties associated with the Project. Consultant part of this Agreement, nor shall the same be construed as defining or limiting in any way may offer advice concerning the value of the contingency fund; however, Consultant shall the scope or intent of the provisions hereof. not be liable for additional costs that the Client may incur beyond the contingency fund they select unless such additional cost results from a negligent act, error, or omission related to services performed by Consultant. Page 2 of 2 Tt Terms & Conditions, Rev 04/01/17 Agenda Item Review Form Muskegon City Commission Commission Meeting Date: July 28, 2020 Title: Concession Agreement – Pizza Cone Trolley Submitted By: Doug Sayles Department: Public Works Brief Summary: Staff is asking permission to enter into a contractual agreement with Greg Bush of “The Pizza Cone Trolley” at Pere Marquette Park. Detailed Summary: Staff is asking permission to enter into a Concession Agreement for 2020 with Greg Bush of “The Pizza Cone Trolley” at Pere Marquette Park. Commission from said Concession would be $300.00 (prorated for partial season in 2020) plus 5% of Gross Receipts Amount Requested: $0 Amount Budgeted: $0 Fund(s) or Account(s): Fund(s) or Account(s): Recommended Motion: Authorize staff to enter into a Concession Agreement with Greg Bush of “The Pizza Cone Trolley” at Pere Marquette Park. Check if the following Departments need to approve the item first: Police Dept. Fire Dept. IT Dept. For City Clerk Use Only: Commission Action: Hi Doug, My name is Greg Bush. I am a local resident, owner, and creator of The Pizza Cone Trolley. The idea for the trolley came from years of working in the food industry in a variety of positions and catering to large scale events. All staff is trained regarding ServSafe regulations and the art of customer service. The Pizza Cone Trolley puts a whole new spin on eating pizza. Fresh ingredients such as parsley, homemade sauce, mozzarella cheese, and Italian sausage are enveloped by a pizza dough cone. This makes eating pizza easy to eat so customers can continue on their journey of enjoying the event they are at. Only one hand is needed to enjoy a pizza cone! Visit the Pizza Cone Trolley for breakfast, lunch, and dinner. In the morning for a tasty breakfast treat consisting of ingredients such as eggs, sausage, cheese, and breakfast gravy. Or maybe veggies are more your thing and choose mozzarella cheese, green and red peppers, mushrooms, spinach, and onions. Come back for lunch and dinner to enjoy a pizza filled cone. May I recommend my favorite, the Naples...a cone filled with grilled chicken, mozzarella and parmesan cheese, onions, green peppers, and my original trolley pizza sauce...I know, your mouth is watering right now. Each of the cones on the menu is full and has tasty options for every palate. Orders are fresh, every cone has homemade fresh ingredients made to order any time. The Pizza Cone Trolley food is fun. The Pizza Cone Trolley is looking to be considered as a food vendor down at the Pier Marquette Beach Area for the remainder of the summer. Proposed days and hours of operation would be...Mondays, Wednesdays, Fridays, Saturdays, and Sundays...weather permitting. 10:00 a.m. till 10:00 p.m. Attached are pictures of my trolley, menu, what a pizza cone looks like, license, and insurance. Please feel free to reach out to me with any questions. Thank you, Greg Bush The Pizza Cone Trolley - Owner 7462 A.J. Ct. Whitehall, Mich. 49461 (231) 557-1495 - Cell The Pizza Cone Trolley Breakfast Menu Milan Eggs, breakfast sausage, cheddar cheese, and breakfast gravy Venice Eggs, bacon, cheddar cheese, and breakfast gravy Palermo Eggs, ham, cheddar cheese, and breakfast gravy San Marino Eggs, cheddar cheese, green & red peppers, mushrooms, spinach, onions, and breakfast gravy Sicily Mozzarella cheese, green and red peppers, mushrooms, spinach, onions, and original trolley pizza sauce Lunch & Dinner Menu Rome Lots of pepperoni, mozzarella cheese, and original trolley pizza sauce Bari Italian sausage, mozzarella cheese, and original trolley pizza sauce Naples Grilled chicken, mozzarella & parmesan cheese, onions, green peppers, and original trolley pizza sauce Marsala Ham, mozzarella cheese, pineapple, and original trolley pizza sauce Verona Grilled Chicken, bacon, mozzarella cheese, onions, and RAQ sauce (a zesty and tangy sauce) Sicily Mozzarella cheese, green and red peppers, mushrooms, spinach, onions, and original trolley pizza sauce Agenda Item Review Form Muskegon City Commission Commission Meeting Date: July 28, 2020 Title: Concession Agreement – Carlson Almonds Submitted By: Doug Sayles Department: Public Works Brief Summary: Staff is asking permission to enter into a contractual agreement with Ron Carlson of “Carlson Almonds” at Pere Marquette Park. Detailed Summary: Staff is asking permission to enter into a Concession Agreement for 2020 with Ron Carlson of “Carlson Almonds” at Pere Marquette Park. Commission from said Concession would be $300.00 (prorated for partial season in 2020) plus 5% of Gross Receipts Amount Requested: $0 Amount Budgeted: $0 Fund(s) or Account(s): Fund(s) or Account(s): Recommended Motion: Authorize staff to enter into a Concession Agreement with Ron Carlson of “Carlson Almonds” at Pere Marquette Park. Check if the following Departments need to approve the item first: Police Dept. Fire Dept. IT Dept. For City Clerk Use Only: Commission Action: Agenda Item Review Form Muskegon City Commission Commission Meeting Date: July 28, 2020 Title: Vehicle Replacement Submitted By: Joe Buckingham Department: DPW/Equipment Brief Summary: The Equipment Division is requesting permission to purchase two (2) Chevy Impalas from Betten Chevrolet for police administration vehicle replacement. The cost for the two vehicles will be $51,053.36. Detailed Summary: One vehicle was scheduled to be replaced in the current budget year and the second, to be reforecast, after insurance payout for the first quarter. This vehicle was involved in a “not at fault” accident and was totaled out by the insurance company, it is being replaced immediately because of GM stopping production of the Impala line, making them very hard to find. We were very fortunate to find two at our local dealer as they are no longer available through MIDeal. With the rent already collected on the wrecked vehicle and the insurance payout we will have money in the Equipment budget for this purchase. Amount Requested: $51,053.36 Amount Budgeted: $25,000 + TBD Insurance Fund(s) or Account(s): 661-60932 Fund(s) or Account(s): 661-60932 Recommended Motion: Authorize staff to move forward with purchase. Check if the following Departments need to approve the item first: Police Dept. Fire Dept. IT Dept. For City Clerk Use Only: Commission Action: Agenda Item Review Form Muskegon City Commission Commission Meeting Date: 7/28/20 Title: 2020 Byrne JAG Grant Submitted By: Jeffrey Lewis Department: Public Safety Brief Summary: Approval requested to pursue the 2020 Byrne JAG Grant Detailed Summary: Approval to enter into an MOU with the County of Muskegon and the City of Muskegon Heights for the 2020 JAG Grant like previous years. The City of Muskegon will continue to act as the fiduciary and receive $17,866, the City of Muskegon Heights would be our sub- awardee and receive $15,130 and the County of Muskegon would not receive funding. There is no match requirement for this grant. The City of Muskegon’s portion of this grant will be used in continuation of the manner in previous years where it is used for prosecution of city ordinance cases dealing primarily with neighborhood issues. Amount Requested: zero dollars Amount Budgeted: zero dollars Fund(s) or Account(s): N/A Fund(s) or Account(s): N/A Recommended Motion: Approve the MOU for the 2020 Byrne JAG Grant. Check if the following Departments need to approve the item first: Police Dept. ☒ Fire Dept. ☐ IT Dept. ☐ For City Clerk Use Only: Commission Action: MEMORANDUM OF UNDERSTANDING THE CITY OF MUSKEGON THE COUNTY OF MUSKEGON THE CITY OF MUSKEGON HEIGHTS FY 2020 JUSTICE ASSISTANCE GRANT (JAG) PROGRAM AWARD Regular Funding/Local Solicitation This Agreement is made and entered into on the ____ day of August , 2020, by and between the County of Muskegon, acting by and through its governing body, the Board of County Commissioners, located at 990 Terrace Street, Muskegon, Michigan 49442 and the City of Muskegon, acting by and through its governing body, the City Commission, located at 933 Terrace Street, Muskegon, Michigan 49443-0536, and the City of Muskegon Heights, acting by and through its governing body, the City Council, located at 2724 Peck Street, Muskegon Hts., MI 49444, all of Muskegon County, State of Michigan, witnesseth: WHEREAS, the CITY OF MUSKEGON has agreed to serve as the applicant/fiscal agent for the joint funds under the: Justice Assistance Grant(Local Solicitation) as the Bureau of Justice Assistance has designated the allocation to the law enforcement communities in Muskegon County as a disparate allocation; and WHEREAS, each governing body, in performing governmental functions or in paying for the performance of governmental functions, hereunder, shall make that performance or those payments from current revenues legally available to that party; and WHEREAS, each governing body find that the performance of this Agreement is in the best interest of all parties, that the undertaking will benefit the public, and that the division of costs fairly compensates the performing party for the services or functions under this Agreement; and Page 1 of 3 WHEREAS, the breakdown of allocated funding agreed upon by those entities involved in the disparate funding is $ 17,866 to the CITY OF MUSKEGON and $ 15,130 to the CITY OF MUSKEGON HEIGHTS; and WHEREAS, the CITY OF MUSKEGON, CITY OF MUSKEGON HEIGHTS and COUNTY OF MUSKEGON believe it to be in their best interests to allocate the JAG funds as specified in this Agreement. NOW THEREFORE, THE COUNTY OF MUSKEGON, CITY OF MUSKEGON AND CITY OF MUSKEGON HEIGHTS agree as follows: AGREEMENT 1. THE CITY OF MUSKEGON will act as the fiscal agent/applicant agency. 2. The total eligible joint allocation for the disparate jurisdictions of $ 32,996 will be allocated as follows: COUNTY OF MUSKEGON - $ 0; CITY OF MUSKEGON - $17,866; CITY OF MUSKEGON HEIGHTS - $ 15,130. 3. Each municipality will be responsible for its actions in the use of any equipment purchased under this Agreement and the fiscal agent shall not be liable for any civil liability that may arise from the purchase of the use of the equipment. 4. The CITY OF MUSKEGON HEIGHTS will be responsible for submitting quarterly reports to the CITY OF MUSKEGON by the third day of the month following the quarter in the reporting fashion required by the CITY OF MUSKEGON and for any month in which an expenditure under the grant has occurred the CITY OF MUSKEGON HEIGHTS will submit a reimbursement request to the CITY OF MUSKEGON by the third day of the following month along with backup documentation such as invoices. 5. The CITY OF MUSKEGON HEIGHTS will be responsible for the accuracy of all data submitted to the CITY OF MUSKEGON for submission to the Bureau of Justice Page 2 of 3 Programs and will be liable for penalties as a result of submitting the data late and for any inaccurate data. 6. Nothing in the performance of this Agreement shall impose any liability for claims against the CITY OF MUSKEGON passing from this program or from the CITY OF MUSKEGON HEIGHT’s expenditure of the JAG funds. 7. By entering into this Agreement, the parties do not intent to create any obligations, express or implied, other than those set out herein. Further, this Agreement shall not create any rights in any party not a signatory hereto. COUNTY OF MUSKEGON Dated:_______________, 2020 By:____________________________ Susie Hughes, Chairman County Board of Commissioners CITY OF MUSKEGON Dated:_______________, 2020 By:____________________________ Stephen Gawron, Mayor CITY OF MUSKEGON HEIGHTS Dated:_______________, 2020 By:_____________________________ Walter Watt, Mayor Page 3 of 3 Agenda Item Review Form Muskegon City Commission Commission Meeting Date: July 28, 2020 Title: Cooperative Mutual Aid Fire Control Agreement Submitted By: Jeffrey Lewis Department: Public Safety Brief Summary: This is to request the City of Muskegon enter into agreement with the Michigan Department of Natural Resources (DNR), the Cooperative Mutual Aid Fire Control Agreement as described under Public Act 7 of 1967 and Part 515 of Act 451 of 1994, as amended. Detailed Summary: This agreement will give the City access to the Department of Defense (DoD) "Firefighter Program Property" for local fire department's use. In short, the agreement gives the City access to wildland firefighting equipment at no cost. The City currently protects 1,784 acres of public land and 1,824 acres of vacant land with few resources to fight wildland fires. The fire department would like the ability to apply for wildland firefighting equipment to enhance the protection of vacant and wildland properties Amount Requested: 0.00 Amount Budgeted: 0.00 Fund(s) or Account(s): n/a Fund(s) or Account(s): n/a Recommended Motion: Enter into agreement with the DNR’s Cooperative Mutual Aid Fire Control Agreement Check if the following Departments need to approve the item first: Police Dept. ☐ Fire Dept. ☒ IT Dept. ☐ For City Clerk Use Only: Commission Action: Agenda Item Review Form Muskegon City Commission Commission Meeting Date: 7/28/2020 Title: Lakeview Lofts Phase II Bridge Loan Submitted By: Jake Eckholm Department: Economic Development Brief Summary: The developers at Lakeview Lofts have run into Covid-19 related delays and impacts from MEDC related to their contribution to the capital stack for the second building on Western Avenue. The project has a reservation for some crucial components and are requesting a bridge loan from the Economic Development Fund to keep the project on schedule. Detailed Summary: Lakeview Lofts Phase II has a capital stack that includes financing from both PNC Bank and the Michigan Economic Development Corporation. The MEDC has previously issued a letter of intent (LOI) that expired during the pandemic due to PNC Bank holding up their end of the financing. Since then, MEDC has been very slow to reissue the LOI and has held up the process to a point that the developers are at risk of losing their reservation for commercial concrete and foundation construction. If this occurs, the project will be pushed to next year, and the PNC portion of the financing will be lost as a portion is Opportunity Fund investments which must be committed by the end of the calendar year. This would endanger the project in total, which consists of 35 apartments and a new restaurant space. Staff recommends granting the loan as applied for, with a maximum interest free term of 6 months. If 6 months is exceeded, retroactive interest payments of prime plus 2% should be added to the principal, and default may be pursued by the City of Muskegon. Amount Requested: $450,000 Amount Budgeted: N/A, Capital Fund Fund(s) or Account(s): Economic Fund(s) or Account(s): N/A Development Revolving Fund Recommended Motion: Motion to approve Economic Development Loan to 351 II LLC in the amount of $450,000 for a term not to exceed 180 days, and with immediate lump sum repayment upon execution of other project financing. Check if the following Departments need to approve the item first: Police Dept. Fire Dept. IT Dept. For City Clerk Use Only: Commission Action: Agenda Item Review Form Muskegon City Commission Commission Meeting Date: July 28, 2020 Title: Purchase Agreement 1188 4th St Submitted By: Frank Peterson Department: City Manager Brief Summary: City staff is seeking authorization to enter into the purchase agreement with LeighAnn Mikesell, a City of Muskegon employee. Detailed Summary: 1188 4th Street was a regular area of concern among neighbors. In an attempt to help mitigate the concerns, the City purchased the property and completed a renovation. The property was listed on the MLS for $229,900; an offer was accepted for $225,000. Staff is seeking permission to approve the purchase agreement and complete the sale. Note that this property is part of the scattered site brownfield project. Any difference in sales price and renovation cost will be recovered via tax capture. In order to comply with state and local conflict of interest concerns, Ms. Mikesell has submitted a letter to the mayor disclosing her interest in the property and outlining the benefits of this sale to her and to the City. The letter has been noticed to the public along with the agenda for the commission meeting. The sale can only be approved by a unanimous vote of all commissioners. If approved, the minutes of the commission meeting must disclose the name of each party involved in the contract, the terms of the contract, the nature of the financial interest of the public servant with the conflict, and that the sale is in the best interests of the City. Amount Requested: None at this time Amount Budgeted: $0 Fund(s) or Account(s): Public Improvement Fund(s) or Account(s): Public Improvement Recommended Motion: Declare that the sale is in the best interests of the City to sell the property to Ms. Mikesell and authorize the City Manager to sign the purchase agreement and complete the sale. Check if the following Departments need to approve the item first: Police Dept. Fire Dept. IT Dept. For City Clerk Use Only: Commission Action: dotloop signature verification: dtlp.us/Awxy-oJnS-WsJ8 WEST MICHIGAN REGIONAL PURCHASE AGREEMENT # DATE: 07/10/2020 , 10:00 PM (time) MLS # 20017194 SELLING OFFICE: Five Star Real Estate BROKER LIC.#: 6503385486 REALTOR® PHONE: 231-557-1137 LISTING OFFICE: Coldwell Banker Woodland Schmidt Muskegon REALTOR® PHONE: 231-733-4455 1. Effective Date: This Agreement is effective on the date of Seller's acceptance of Buyer's offer or Buyer's acceptance of any counteroffer, as the case may be, and this date shall hereafter be referred to as the "Effective Date". Further, any reference to "days" in this Agreement refers to calendar days. The first calendar day begins at 12:01 a.m. on the day after the Effective Date. Any reference to "time" refers to local time. 2. Agency Disclosure: The Undersigned Buyer and Seller each acknowledge that they have read and signed the Disclosure Regarding Real Estate Agency Relationships. The selling licensee is acting as (check one): Agent/Subagent of Seller Buyer’s Agent Dual Agent (with written, informed consent of both Buyer and Seller) Transaction Coordinator Primary Selling Agent Name: Barbara Holt Email: barbholthomes@gmail.com Lic.#: 6501272913 Alternate Selling Agent Name: Email: Lic.#: 3. Seller’s Disclosure Statement: (This paragraph applies to sales of one-to-four family residential units.) Buyer has received the Seller’s Disclosure Statement, dated 05/12/2020 . Seller certifies to Buyer that the Property is currently in the same condition as Seller previously disclosed in that statement. Seller agrees to inform Buyer in writing of any changes in the content of the disclosure statement. Buyer has not received the Seller’s Disclosure Statement. Buyer may terminate this Agreement, in writing, any time prior to receipt of the Seller’s Disclosure Statement. Once Buyer has received the Seller’s Disclosure Statement, Buyer may terminate this Agreement, in writing, within 72 hours of receipt if the disclosure was received in person, or within 120 hours if received by registered mail. Exceptions: Seller is exempt from the requirements of the Seller Disclosure Act. 4. Lead-Based Paint Addendum: Transactions involving homes built prior to 1978 require a written disclosure which is hereby attached and will be an integral part of this Agreement. 5. Property Description: Buyer offers to buy the property located in the City Village Township of Muskegon , County of Muskegon , Michigan, commonly known as (insert mailing address: street/city/state/zip code) 1188 4th Street Muskegon 49441 with the following legal description and tax parcel ID numbers: Legal: CITY OF MUSKEGON REVISED PLAT OF 1903 W 92 FT LOT 8 BLK 367 PP# Tax ID #: 24205367000800 . The following paragraph applies only if the Premises include unplatted land: Seller agrees to grant Buyer at closing the right to make (insert number) ALL division(s) under Section 108(2), (3), and (4) of the Michigan Land Division Act. (If no number is inserted, the right to make divisions under the sections referenced above stays with any remainder of the parent parcel retained by Seller. If a number is inserted, Seller retains all available divisions in excess of the number stated; however, Seller and/or REALTOR® do not warrant that the number of divisions stated is actually available.) If this sale will create a new division, Seller’s obligations under this Agreement are contingent on Seller’s receipt of municipal approval on or before Day of Close , of the proposed division to create the Premises. 6. Purchase Price: Buyer offers to buy the Property for the sum of $ 225,000 two hundred twenty-five thousand U.S. Dollars 7. Seller Concessions, if any: NONE 8. Terms: The Terms of Purchase will be as indicated by “X” below: (Other unmarked terms of purchase do not apply.) SOURCE OF FUNDS TO CLOSE: Buyer represents that the funds necessary to close this transaction on the terms specified below are currently available to Buyer in cash or an equally liquid equivalent. If the Property’s value stated in an appraisal obtained by Buyer or Buyer’s lender is less than the Purchase Price, Buyer shall within three (3) days after receipt of the appraisal: 1) renegotiate with the Seller, 2) terminate the transaction, in which case Buyer shall receive a refund of Buyer’s Earnest Money Deposit, or 3) proceed to close the transaction at the agreed Purchase Price. CASH. The full Purchase Price upon execution and delivery of Warranty Deed. Buyer Agrees to provide Buyer Agent/Dual Agent verification of funds within five (5) days after the Effective Date, and consents to the disclosure of such information to Seller and/or Seller’s Agent. If verification of funds is not received within 5 days after the Effective Date, Seller may terminate this Agreement at any time before verification of funds is received by giving written notice to Buyer. Any appraisal required by Buyer shall be arranged and paid for by Buyer within ten (10) days after the Effective Date of this Agreement. NEW MORTGAGE. The full Purchase Price upon execution and delivery of Warranty Deed, contingent upon Buyer’s ability to obtain a Conventional type 15 (year) mortgage in the amount of 80 % of the Purchase Price bearing interest at a rate not to exceed Current % per annum (rate at time of loan application), on or before the date the sale is to be closed. Buyer agrees to apply for a mortgage loan, and pay all fees and costs customarily charged by Buyer’s lender to process the application, within 3 days after the Effective Date, not to impair Buyers’ credit after the date such loan if offered. Seller Buyer will agree to pay an amount not to exceed $ representing repairs required as a condition of financing. Buyer agrees does not agree to authorize Buyer’s Agent/Dual Agent to obtain information from ©Copyright, West Michigan REALTOR® Associations LM FP Page 1 of 6 Rev. Date 2/2020 07/10/20 Buyer’s Initials 07/15/20 Seller’s Initials 10:03 PM EDT 9:31 AM EDT dotloop verified dotloop verified dotloop signature verification: dtlp.us/Awxy-oJnS-WsJ8 West Michigan Regional Purchase Agreement Page 2 of 6 Buyer’s lender regarding Buyer’s financing, and consents to the disclosure of this information to Seller and/or Seller’s Agent. Exceptions: SELLER FINANCING (check one of the following): CONTRACT or PURCHASE MONEY MORTGAGE In the case of Seller financing, Buyer agrees to provide Seller with a credit report within 72 hours after the Effective Date. If the credit report is unacceptable to Seller, Seller shall have the right to terminate this offer within 48 hours of Seller’s receipt, or if Buyer fails to provide said credit report to Seller within the time frame allotted, Seller shall have the right to terminate this offer within 48 hours. Seller is advised to seek professional advice regarding the credit report. $ upon execution and delivery of a form (name or type of form and revision date), a copy of which is attached, wherein the balance of $ will be payable in monthly installments of $ or more including interest at % per annum, interest to start on date of closing, and first payment to become due thirty (30) days after date of closing. The entire unpaid balance will become due and payable months after closing. Any appraisal required by Buyer shall be arranged and paid for by Buyer within ten (10) days after the Effective Date of this Agreement. Exceptions: EQUITY (check one of the following): Formal Assumption or Informal Assumption Upon execution and delivery of: Warranty Deed subject to existing mortgage OR Assignment of Vendee Interest in Land Contract, Buyer to pay the difference (approximately $ ) between the Purchase Price above provided and the unpaid balance (approximately $ ) upon said mortgage or land contract, which Buyer agrees to assume and pay. Buyer agrees to reimburse Seller for accumulated funds held in escrow, if any, for payment of future taxes and insurance premiums, etc. Any appraisal required by Buyer shall be arranged and paid for by Buyer within ten (10) days after the Effective Date of this Agreement. Exceptions: OTHER: 9. Contingencies: Buyer’s obligation to consummate this transaction (check one): IS NOT CONTINGENT - is not contingent upon the sale or exchange of any other property by Buyer. IS CONTINGENT UPON CLOSING - is contingent upon closing of an existing sale or exchange of Buyer’s property located at: A copy of Buyer’s agreement to sell or exchange that property is being delivered to Seller along with this offer. If the existing sale or exchange terminates for any reason, Buyer will immediately notify Seller, and either party may terminate this Agreement in writing, within 3 days of Buyer’s notice to Seller. If either party terminates, Buyer shall receive a refund of any applicable Earnest Money Deposit. IS CONTINGENT UPON THE SALE AND CLOSING - is contingent upon the execution of a binding agreement and the closing of a sale or exchange of Buyer’s property located at on or before . Seller will have the right to continue to market Seller’s Property until Buyer enters into a binding agreement to sell or exchange Buyer’s property and delivers a copy thereof to Seller. During such marketing period, Seller may enter into a binding contract for sale to another purchaser on such price and terms as the Seller deems appropriate. In such event, this Agreement will automatically terminate, Buyer will be notified promptly, and Buyer’s Earnest Money Deposit will be refunded. Exceptions: 10. Fixtures & Improvements: The following is not intended to be an all-inclusive list of items included with the Property. All improvements and appurtenances are included in the Purchase Price, if now in or on the Property, unless rented, including the following: all buildings; landscaping; attached smart home devices; attached security systems; lighting fixtures and their shades and bulbs; ceiling fans; hardware for draperies and curtains; window shades and blinds; built-in kitchen appliances, including garbage disposal and drop-in ranges; wall to wall carpeting, if attached; all attached mirrors; all attached TV mounting brackets; all attached shelving; attached work benches; stationary laundry tubs; water softener; water heater; incinerator; sump pump; water pump and pressure tank; heating and air conditioning equipment (window units excluded); attached humidifiers; heating units, including add-on heating stoves and heating stoves connected by flue pipe; fireplace screens, inserts, and grates; fireplace doors, if attached; liquid heating and cooking fuel tanks; TV antenna and complete rotor equipment; satellite dish and necessary accessories and complete rotor equipment; all support equipment for inground pools; screens and storm windows and doors; awnings; installed basketball backboard, pole and goal; mailbox; flagpole(s); fencing, invisible inground fencing and all related equipment, including collars; detached storage buildings; underground sprinkling, including the pump; installed outdoor grills; all plantings and bulbs; garage door opener and control(s); and any and all items and fixtures permanently affixed to the Property; and also includes: Dishwasher; Garbage Disposal; Microwave; Range; Refrigerator: Washer; Dryer; All Window Treatments; Ceiling Fans; Garage Remotes but does not include: Any personal property currently in home or on premises 1188 4th St, Muskegon, MI 49441 07/10/2020 10:00 PM Subject Property Address/Description Date Time ©Copyright, West Michigan REALTOR® Associations LM FP Revision Date 2/2020 07/10/20 Buyer’s Initials 07/15/20 Seller’s Initials 10:03 PM EDT 9:31 AM EDT dotloop verified dotloop verified dotloop signature verification: dtlp.us/Awxy-oJnS-WsJ8 West Michigan Regional Purchase Agreement Page 3 of 6 11. Heating and Cooking Fuels: Liquid heating and cooking fuels in tanks are included in the sale and will transfer to Buyer at time of possession unless usage is metered (in which case it is not included in the sale). Sellers are responsible for maintaining heating and cooking liquid fuels at an operational level and shall not permit fuels to fall below 10% in the tank(s) at the time of possession, except that the tank(s) may be empty only if now empty. Further, Seller is precluded from removing fuel from tank(s) other than what is expended through normal use. Exceptions: N/A 12. Assessments (choose one): If the Property is subject to any assessments, Seller shall pay the entire balance of any such assessments that are due and payable on or before the day of closing (regardless of any installment arrangements), except for any fees that are required to connect to public utilities. Seller shall pay all installments of such assessments that become due and payable on or before day of closing. Buyer shall assume and pay all other installments of such assessments. 13. Property Taxes: Seller will be responsible for any taxes billed prior to those addressed below. Buyer will be responsible for all taxes billed after those addressed below. Buyer is also advised that the state equalized value of the Property, principal residence exemption information and other real property tax information is available from the appropriate local assessor’s office. Buyer should not assume that Buyer’s future tax bills on the Property will be the same as Seller’s present tax bills. Under Michigan law, real property tax obligations can change significantly when property is transferred. No proration. (Choose one): Buyer Seller will pay taxes billed summer (year); Buyer Seller will pay taxes billed winter (year); Calendar Year Proration (all taxes billed or to be billed in the year of the closing). Calendar year tax levies will be estimated, if necessary, using the taxable value and the millage rate(s) in effect on the day of closing, broken down to a per diem tax payment and prorated to the date of closing with Seller paying for January 1 through the day before closing. Fiscal Year Proration - Taxes will be prorated as though they are paid in (choose one): advance. arrears. Fiscal Year will be assumed to cover a 12-month period from date billed, and taxes will be prorated to the date of closing. Fiscal year tax levies will be estimated, if necessary, using the taxable value and millage rate(s) in effect on the day of closing, broken down to a per diem tax payment and prorated to the date of closing with Seller paying through the day before closing. Exceptions: 14. Well/Septic: Within ten (10) days after the Effective Date, Seller will arrange for, at Seller’s expense, an inspection of the primary well used for human consumption (including a water quality test for coliform bacteria and nitrates) and septic systems in use on the Property. The inspection will be performed by a qualified inspector in a manner that meets county (or other local governmental authority, if applicable) protocol. Seller will also follow any governmental rules regarding pumping of tanks. Where no county or government protocol is in place, Seller will arrange for, at Seller’s expense, well and septic inspections (as referenced above) by a qualified inspector and Seller will have the septic tank(s) pumped at Seller’s expense. If any report discloses a condition unsatisfactory to Buyer, or doesn’t meet county standards that are a condition of sale, Buyer may, within three (3) days after Buyer has received the report, by written notice to Seller, either terminate this Agreement and receive a refund of Buyer’s Earnest Money Deposit, or make a written proposal to Seller to correct those unsatisfactory conditions. If Buyer fails to make a written proposal within the above referenced time period, then Buyer will be deemed to have accepted the well/septic as- is. Seller will respond in writing within three (3) days to Buyer’s request. If Seller fails to respond or to arrive at a mutually agreeable resolution within three (3) days after Seller’s receipt of Buyer’s proposal, Buyer will have three (3) days to provide written notice of termination of this Agreement and receive a refund of any applicable Earnest Money Deposit. If Buyer fails to terminate the contract, Buyer will proceed to closing according to the terms and conditions of this Agreement. Exceptions: N/A City Systems 15. Inspections & Investigations: Inspections: Buyer, or someone selected by Buyer, has the right to inspect the buildings, premises, components and systems, at Buyer’s expense. Any damage, misuse, abuse, or neglect of any portion of the Property or premises as a result of inspections will be Buyer’s responsibility and expense. In the event of VA financing, Seller will pay for the inspection for termites and other wood destroying insects. Investigations: It is Buyer’s responsibility to investigate (i) whether the Property complies with applicable codes and local ordinances and whether the Property is zoned for Buyer’s intended use; (ii) whether Buyer can obtain a homeowner’s insurance policy for the Property at price and terms acceptable to Buyer; (iii) and whether or not the Property is in a flood zone. All inspections and investigations will be completed within ten (10) days after the Effective Date. If the results of Buyer’s inspections and investigations are not acceptable to Buyer, Buyer may, within the above referenced period, by written notice to Seller, either terminate this Agreement and receive a refund of Buyer’s Earnest Money Deposit, or make a written proposal to Seller to correct those unsatisfactory conditions. If Buyer fails to make a written proposal within the above referenced time period, then Buyer will be 1188 4th St, Muskegon, MI 49441 07/10/2020 10:00 PM Subject Property Address/Description Date Time ©Copyright, West Michigan REALTOR® Associations LM FP Revision Date 2/2020 07/10/20 Buyer’s Initials 07/15/20 Seller’s Initials 10:03 PM EDT 9:31 AM EDT dotloop verified dotloop verified dotloop signature verification: dtlp.us/Awxy-oJnS-WsJ8 West Michigan Regional Purchase Agreement Page 4 of 6 deemed to have accepted the Property as-is. Seller may negotiate with Buyer, or by written notice to Buyer, accept Buyer’s proposal or terminate this Agreement. If Seller fails to respond, or to arrive at a mutually agreeable resolution within three (3) days after Seller’s receipt of Buyer’s proposal, Buyer shall have three (3) days to provide written notice of termination of this Agreement and receive a refund of any applicable Earnest Money Deposit. If Buyer fails to terminate this Agreement within said three (3) day period, Buyer will be deemed to accept the Inspections & Investigations and will proceed to closing according to the terms and conditions of this Agreement. Buyer has waived all rights under this Inspections & Investigations paragraph. 16. Municipal Compliances: Seller will arrange and pay for current certificates of occupancy, sidewalk compliance, and smoke detector ordinances, if applicable. 17. Title Insurance: Seller agrees to convey marketable title to the Property subject to conditions, limitations, reservation of oil, gas and other mineral rights, existing zoning ordinances, and building and use restrictions and easements of record. An expanded coverage ALTA Homeowner’s Policy of Title Insurance in the amount of the Purchase Price shall be ordered by Seller and furnished to Buyer at Seller’s expense, and a commitment to issue a policy insuring marketable title vested in Buyer, including a real estate tax status report, will be made available to Buyer within ten (10) days after the Effective Date. If Buyer so chooses, or if an expanded policy is not applicable, then a standard ALTA Owners’ Policy of Title Insurance shall be provided. If Buyer objects to any conditions, Buyer may, within three (3) days of receipt of the Title Commitment, by written notice to Seller, either terminate this Agreement and receive a refund of Buyer’s Earnest Money Deposit, or make a written proposal to Seller to correct those unsatisfactory conditions. If Buyer fails to make a written proposal within the above referenced time period, then Buyer will be deemed to have accepted the Title Commitment as-is. Seller may negotiate with Buyer, or by written notice to Buyer, accept Buyer’s proposal or terminate this Agreement. If Seller fails to respond, or to arrive at a mutually agreeable resolution within three (3) days after Seller’s receipt of Buyer’s proposal, Buyer shall have three (3) days to provide written notice of termination of this Agreement and shall receive a refund of any applicable Earnest Money Deposit. If Buyer fails to terminate this Agreement within said three (3) day period, Buyer will be deemed to accept the Title Commitment as-is and will proceed to closing according to the terms and conditions of this Agreement. Exceptions: 18. Property Survey: Broker advises that Buyer should have a survey performed to satisfy Buyer as to the boundaries of the Property and the location of improvements thereon. Buyer or Seller (check one) shall within ten (10) days of the Effective Date, order, at their expense, a boundary survey certified to Buyer with iron corner stakes showing the location of the boundaries, improvements and easements in connection with the Property. Upon receipt of the survey, Buyer will have three (3) days to review the survey. If the survey shows any condition, in Buyer’s sole discretion, which would interfere with Buyer’s intended use of the Property, the marketability of the title, or zoning non-compliance, then Buyer may, within said three (3) day period, terminate this Agreement, in writing, and Buyer will receive a full refund of Buyer’s Earnest Money Deposit. No survey. Buyer has waived all rights under this paragraph. When closing occurs, Buyer shall be deemed to have accepted the boundaries of the Property and the location of such improvements thereon. Exceptions: Seller to provide if available 19. Home Protection Plan: Buyer and Seller have been informed that home protection plans may be available. Such plans may provide additional protection and benefit to the parties. Exceptions: NONE 20. Prorations: Rent; association dues/fees, if any; insurance, if assigned; interest on any existing land contract, mortgage or lien assumed by Buyer; will all be adjusted to the date of closing. 21. Closing: If agreeable to Buyer and Seller, the sale will be closed as soon as closing documents are ready, but not later than 08/10/2020 . An additional period of fifteen (15) days will be allowed for closing to accommodate the correction of title defects or survey problems which can be readily corrected, or for delays in obtaining any lender required inspections/repairs. During this additional period, the closing will be held within 5 days after all parties have been notified that all necessary documents have been prepared. Buyer and Seller will each pay their title company closing fee, if applicable, except in the case of VA financing where Seller will pay the entire closing fee. Exceptions: 22. Possession: Seller will maintain the Property in its present condition until the completion of the closing of the sale. Possession to be delivered to Buyer, subject to rights of present tenants, if any. At the completion of the closing of the sale. At a.m. p.m. on the day after completion of the closing of the sale, during which time Seller will have the privilege to occupy the Property and hereby agrees to pay Buyer $ as an occupancy fee for this period payable at closing, WITHOUT PRORATION. Payment shall be made in the form of cash or certified funds. If Seller fails to deliver possession to Buyer on the agreed date, Seller shall become a tenant at sufferance and shall pay to Buyer as liquidated damages $ per day plus all of the Buyer’s actual reasonable attorney's fees incurred in removing the Seller from the Property. 1188 4th St, Muskegon, MI 49441 07/10/2020 10:00 PM Subject Property Address/Description Date Time ©Copyright, West Michigan REALTOR® Associations LM FP Revision Date 2/2020 07/10/20 Buyer’s Initials 07/15/20 Seller’s Initials 10:03 PM EDT 9:31 AM EDT dotloop verified dotloop verified dotloop signature verification: dtlp.us/Awxy-oJnS-WsJ8 West Michigan Regional Purchase Agreement Page 5 of 6 If Seller occupies the Property after closing, Seller will pay all utilities during such occupancy. Buyer will maintain the structure and mechanical systems at the Property. However, any repairs or replacements necessitated by Seller’s misuse, abuse, or neglect of any portion of the Property will be Seller’s responsibility and expense. On the agreed delivery date, Seller shall deliver the Property free of trash and debris and in broom-clean condition, shall remove all personal property (unless otherwise stated in this or an additional written agreement), shall make arrangements for final payment on all utilities, and shall deliver all keys to Buyer. Exceptions: 23. Earnest Money Deposit: For valuable consideration, Buyer gives Seller until 5:00 PM (time) on 07/11/2020 (date), to deliver the written acceptance of this offer and agrees that this offer, when accepted by Seller, will constitute a binding Agreement between Buyer and Seller. An Earnest Money Deposit in the amount of $ 2500.00 shall be submitted to Five Star Real Estate Norton Shores (insert name of broker, title company, other) within 72 hours of the Effective Date of this Agreement, and shall be applied against the Purchase Price. If the Earnest Money Deposit is not received within 72 hours of the Effective Date or is returned for insufficient funds, Seller may terminate this Agreement until such time as the Earnest Money Deposit is received. If Seller terminates this Agreement under this provision, Seller waives any claim to the Earnest Money Deposit. If the sale is not closed due to a failure to satisfy a contingency for a reason other than the fault of Buyer, the Earnest Money Deposit shall be refunded to Buyer. If the sale is not closed as provided in this Agreement and Buyer and Seller do not agree to the disposition of the Earnest Money Deposit, then Buyer and Seller agree that the Broker holding the Earnest Money Deposit may notify Buyer and Seller, in writing, of Broker’s intended disposition of the Earnest Money Deposit. If Buyer and Seller do not object to such disposition in writing within fifteen (15) days after the date of Broker’s notice, they will be deemed to have agreed to Broker’s proposed disposition; if either Buyer or Seller object and no mutually agreeable disposition can be negotiated, Broker may deposit the funds by interpleader with a court of proper jurisdiction or await further actions by Buyer and Seller. In the event of litigation involving the deposit, in whole or in part, either the Seller or the Buyer that is not the prevailing party, as determined by the court, will reimburse the other for reasonable attorneys’ fees and expenses incurred in connection with the litigation, and will reimburse the Broker for any reasonable attorneys’ fees and expenses incurred in connection with any interpleader action instituted. If the entity holding the Earnest Money Deposit is not the Broker, then to the extent that the terms of any escrow agreement conflict with this paragraph, then the terms and conditions of the escrow agreement shall control. 24. Professional Advice: Broker hereby advises Buyer and Seller to seek legal, tax, environmental and other appropriate professional advice relating to this transaction. Broker does not make any representations or warranties with respect to the advisability of, or the legal effect of this transaction. Buyer further acknowledges that REALTOR® above named in the Agreement hereby recommends to Buyer that an attorney be retained by Buyer to pass upon the marketability of the title and to ascertain that the required details of the sale are adhered to before the transaction is consummated. Buyer agrees that Buyer is not relying on any representation or statement made by Seller or any real estate salesperson (whether intentionally or negligently) regarding any aspect of the Property or this sale transaction, except as may be expressly set forth in this Agreement, a written amendment to this Agreement, or a disclosure statement separately signed by Seller. 25. Disclosure of Information: Buyer and Seller acknowledge and agree that the Purchase Price, terms, and other details with respect to this transaction (when closed) are not confidential, will be disclosed to REALTORS® who participate in the applicable Multiple Listing Service, and may otherwise be used and/or published by that Multiple Listing Service in the ordinary course of its business. 26. Other Provisions: Home must appraise at or above purchase price. 27. Mergers and Integrations: This Agreement is the final expression of the complete agreement of Buyer and Seller, and there are no oral agreements existing between Buyer and Seller relating to this transaction. This Agreement may be amended only in writing signed by Buyer and Seller and attached to this Agreement. 28. Fax/Electronic Distribution and Electronic Signatures: Buyer and Seller agree that any signed copy of this Agreement, and any amendments or addendums related to this transaction, transmitted by facsimile or other electronic means shall be competent evidence of its contents to the same effect as an original signed copy. Buyer and Seller further agree that an electronic signature is the legal equivalent of a manual or handwritten signature, and consent to use of electronic signatures. Buyer and Seller agree that any notice(s) required or permitted under this Agreement may also be transmitted by facsimile or other electronic means. 29. Wire Fraud: Seller and Buyer are advised that wire fraud is an increasingly common problem. If you receive any electronic communication directing you to transfer funds or provide nonpublic personal information (such as social security numbers, drivers’ license numbers, wire instructions, bank account numbers, etc.), even if that electronic communication appears to be from the Broker, Title Company, or Lender, DO NOT reply until you have verified the authenticity of the email by direct communication with Broker, Title Company, or Lender. DO NOT use telephone numbers provided in the email. Such requests may be part of a scheme to steal funds or use your identity. 1188 4th St, Muskegon, MI 49441 07/10/2020 10:00 PM Subject Property Address/Description Date Time ©Copyright, West Michigan REALTOR® Associations LM FP Revision Date 2/2020 07/10/20 Buyer’s Initials 07/15/20 Seller’s Initials 10:03 PM EDT 9:31 AM EDT dotloop verified dotloop verified dotloop signature verification: dtlp.us/Awxy-oJnS-WsJ8 West Michigan Regional Purchase Agreement Page 6 of 6 30. Buyer’s Approval and Acknowledgment: Buyer approves the terms of this offer and acknowledges receipt of a copy of this offer. dotloop verified LeighAnn Mikesell 07/10/20 10:03 PM Buyer 1 Address 1558 E. Harbour Towne Circle Muskegon, MI 49441 X EDT Buyer Buyer 1 Phone: (Res.) (Bus.) 231-343-3830 LeighAnn Mikesell Print name as you want it to appear on documents. Buyer 2 Address X Buyer Buyer 2 Phone: (Res.) (Bus.) Print name as you want it to appear on documents. 31. Seller’s Response: The above offer is approved: As written. As written except: Quit Claim Deed Counteroffer, if any, expires 07/15/2020 , at 6pm (time). Seller has the right to withdraw this counter offer and to accept other offers until Seller or Seller’s Agent has received notice of Buyer’s acceptance. 32. Certification of Previous Disclosure Statement: Seller certifies to Buyer that the Property is currently in the same condition as disclosed in the Seller’s Disclosure Statement dated (check one): Yes No. Seller agrees to inform Buyer in writing of any changes in the content of the disclosure statement prior to closing. 33. Notice to Seller: Seller understands that consummation of the sale or transfer of the Property described in this Agreement will not relieve Seller of any liability that Seller may have under the mortgages to which the Property is subject, unless otherwise agreed to by the lender or required by law or regulation. Buyer and Seller are advised that a Notice to Seller & Buyer of Underlying Mortgage form is available from the respective agents via the West Michigan REALTOR® Boards. 34. Listing Office Address: 131 Seaway Drive, Muskegon, MI 49444 Listing Broker License # 6505346469 Listing Agent Name: mary jamieson& Charlotte barnes evans Listing Agent License # 6501432199&6501294351 35. Seller’s Approval and Acknowledgment: Seller approves the terms of this Agreement and acknowledges receipt of a copy. If Seller’s response occurs after Buyer’s offer expires, then Seller’s response is considered a counteroffer and Buyer’s acceptance is required below. dotloop verified X (Seller’s Signature, Date, Time): Frank Peterson 07/15/20 9:31 AM EDT 6TIE-XSEC-ZD7U-UP6M Frank Peterson, City Mgr., City of Muskegon Is Seller a U.S. Citizen? Yes No* Print name as you want it to appear on documents. X (Seller’s Signature, Date, Time): Is Seller a U.S. Citizen? Yes No* Print name as you want it to appear on documents. Seller’s Address: 1188 4th St, Muskegon, MI 49441 Seller’s Phone (Res.) (Bus) * If Seller(s) is not a U.S. Citizen, there may be tax implications and Buyer and Seller are advised to seek professional advice. 36. Buyer’s Receipt/Acceptance: Buyer acknowledges receipt of Seller’s response to Buyer’s offer. In the event Seller’s response constitutes a counteroffer, Buyer accepts said counteroffer. All other terms and conditions in the offer remain unchanged. dotloop verified X (Buyer’s Signature, Date, Time): LeighAnn Mikesell 07/15/20 4:55 PM EDT X (Buyer’s Signature, Date, Time): 37. Seller’s Receipt: Seller acknowledges receipt of Buyer’s acceptance of counter offer. X (Seller’s Signature, Date, Time): X (Seller’s Signature, Date, Time): 1188 4th St, Muskegon, MI 49441 07/10/2020 Subject Property Address/Description Date Time ©Copyright, West Michigan REALTOR® Associations LM FP Revision Date 2/2020 07/10/20 Buyer’s Initials 07/15/20 Seller’s Initials 10:03 PM EDT 9:31 AM EDT dotloop verified dotloop verified Agenda Item Review Form Muskegon City Commission Commission Meeting Date: 7-28-2020 Title: Infill Housing Project brownfield public hearing Submitted By: Pete Wills Department: Economic Development Brief Summary: To hold a public hearing and approve the attached resolution which seeks to adopt an amendment to the Brownfield Plan (city’s Infill Housing Project, 1st Amendment). On July 14th, the BRA approved the Plan amendment and further recommends that the Muskegon City Commission approve the Plan amendment. Detailed Summary: City staff has prepared a brownfield plan to include 108 eligible parcels, primarily located within the Nelson and Jackson Hill Neighborhoods, that will facilitate the development of new affordable housing opportunities at eligible properties. Activities include the redevelopment and rehabilitation of subject parcels; construction of new residential units; possible demolition of the former Froebel school in order to redevelop that property with residential units; and public infrastructure at the former farmers market to add additional residential units. Brownfield TIF to reimburse developer for “eligible expenses” in the redevelopment and rehabilitation on 108 eligible parcels; after lot splits, total of 249 parcels for redevelopment. Plan Amendment eligible activities: $3,880,000 for cost of sale; $1,200,000 for demolition and abatement; $777,000 for public infrastructure; $20,000 for Brownfield Plan Preparation and Development; $881,550 in contingency fees (15%); $6,758,550 - total eligible activities to be paid under this Plan. End of 2023 for estimated completion date of the homes associated with Project. After all eligible costs incurred by the various parties are reimbursed, BRA is authorized to continue to capture local taxes for five more years for deposit into a Local Site Remediation Revolving Fund. Amount Requested: N/A Amount Budgeted: N/A Fund(s) or Account(s): Fund(s) or Account(s): Recommended Motion: To close the public hearing and approve the resolution of the Brownfield Plan Amendment for the city’s Infill Housing Project (1st Amendment). 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 APPROVING THE BROWNFIELD PLAN AMENDMENT City of Muskegon Infill Housing Project City of Muskegon County of Muskegon, Michigan 2020-July 28 Minutes of a Regular Meeting of the City Commission of the City of Muskegon, County of Muskegon, Michigan (the “City”), held in the City Commission Chambers on the 28th day of July, 2020 at 5:30 p.m., prevailing Eastern Time. PRESENT: ABSENT: The following preamble and resolution were offered by Commissioner ___________________ and supported by Commissioner __________________. WHEREAS, in accordance with the provisions of Act 381, Public Acts of Michigan, 1996, as amended (“Act 381”), the City of Muskegon Brownfield Redevelopment Authority (the “Authority”) has prepared and approved a Brownfield Plan Amendment to include the Infill Housing Project (1st Amendment) in the Plan; and WHEREAS, the Authority has forwarded the Brownfield Plan Amendment to the City Commission requesting its approval of the Brownfield Plan Amendment; and WHEREAS, the City Commission has provided notice and a reasonable opportunity to the taxing jurisdictions levying taxes subject to capture to express their views and recommendations regarding the Brownfield Plan Amendment, as required by Act 381; and WHEREAS, not less than 10 days has passed since the City Commission provided notice of the proposed Brownfield Plan to the taxing units; and WHEREAS, the City Commission held a public hearing on the proposed Brownfield Plan on July 28, 2020. NOW, THEREFORE, BE IT RESOLVED THAT: 1. That the Brownfield Plan constitutes a public purpose under Act 381. 2. That the Brownfield Plan meets all the requirements of Section 13(1) of Act 381. 3. That the proposed method of financing the costs of the eligible activities, as identified in the Brownfield Plan and defined in Act 381, is feasible and the Authority has the authority to arrange the financing. 4. That the costs of the eligible activities proposed in the Brownfield Plan are reasonable and necessary to carry out the purposes of Act 381. 5. That the amount of captured taxable value estimated to result from the adoption of the Brownfield Plan is reasonable. 6. That the Brownfield Plan in the form presented is approved and is effective immediately. 7. That all resolutions or parts of resolutions in conflict herewith shall be and the same are hereby rescinded. Be it Further Resolved that the Mayor and City Clerk are hereby authorized to execute all documents necessary or appropriate to implement the provisions of the Brownfield Plan. AYES: NAYS: RESOLUTION DECLARED APPROVED. Ann Marie Meisch, City Clerk Stephen J Gawron, Mayor I hereby certify that the foregoing is a true and complete copy of a resolution adopted by the City Commission of the City of Muskegon, County of Muskegon, State of Michigan, at a regular meeting held on July 28, 2020 and that said meeting was conducted and public notice of said meeting was given pursuant to and in full compliance with the Open Meetings Act, being Act 267, Public Acts of Michigan, 1976, as amended, and that the minutes of said meeting were kept and will be or have been made available as required by said Act. Ann Marie Meisch, City Clerk CITY OF MUSKEGON BROWNFIELD REDEVELOPMENT AUTHORITY BROWNFIELD PLAN AMENDMENT INFILL HOUSING PROJECT (1st Amendment) July 14, 2020 Prepared For The City of Muskegon Brownfield Redevelopment Authority Prepared By City of Muskegon Staff PROJECT NAME Infill Housing Project (formerly Nelson Neighborhood Infill Housing Project) DEVELOPER City of Muskegon, a qualified unit of local government, as defined by Public Act 381 of 1996, as amended ELIGIBLE PROPERTY LOCATION There are 108 Eligible Properties for this project, most of which are not adjacent to one another. Please refer to the “Eligible Property Information Chart” and the “Eligible Property Map (Attachment A)” on the following pages. TYPE OF ELIGIBLE PROPERTY Blighted SUBJECT PROJECT DESCRIPTION The project will focus on the redevelopment of 108 parcels, most of them located in the Nelson and Jackson Hill Neighborhoods. Some of these lots will be split, creating a total of 249 subject parcels. Ten of the parcels contain homes that will be rehabbed, the rest are vacant lots that will be used to construct new residential units. The new residential units will consist mostly of detached homes and rowhomes, with the possibility of a few duplexes and small multi-plexes as the market dictates. The project also includes the demolition of the former Froebel school in order to redevelop the property with a variety residential units. In addition, the plan also includes the addition of public infrastructure at the former farmers market to add additional residential units. ELIGIBLE ACTIVITIES Cost of Sale, Demo & Abatement, Public Infrastructure, Preparation of Brownfield Plan DEVELOPER’S REIMBURSABLE COSTS $5,877,000 MAXIMUM DURATION OF CAPTURE 30 years ESTIMATED TOTAL CAPITAL INVESTMENT $49,500,000 INITIAL TAXABLE VALUE $0 (City & County Owned) 1. Introduction The City of Muskegon, Michigan (the “City”), established the Muskegon Brownfield Redevelopment Authority (the “Authority”) on July 4, 1997, pursuant to Michigan Public Act 381 of 1996, as amended (“Act 381”). The primary purpose of Act 381 is to encourage the redevelopment of eligible property by providing economic incentives through tax increment financing for certain eligible activities. The main purpose of this Brownfield Plan is to promote the redevelopment of and investment in certain “Brownfield” properties within the City. Inclusion of the subject properties within this Plan will facilitate the development of infill housing at eligible properties. By facilitating redevelopment of underutilized properties, the Plan is intended to promote economic growth for the benefit of the residents of the City and all taxing units located within and benefited by the Authority. This Plan is intended to be a living document, which can be amended as necessary to achieve the purposes of Act 381. It is specifically anticipated that properties will be continually added to the Plan as new projects are identified. The Plan contains general provisions applicable to the Plan, as well as property-specific information for each project. The applicable Sections of Act 381 are noted throughout the Plan for reference purposes. This Brownfield Plan contains the information required by Section 13(1) of Act 381, as amended. Additional information is available from the Muskegon City Manager or the Planning Director. The Infill Housing Project was originally added to this Plan on April 14, 2019. This amendment seeks to modify certain aspects of the plan; most notably by adding more parcels and increasing the “cost of sale” margin. 2. General Provisions A. Costs of the Brownfield Plan (Section 13(1)(a)) Any site-specific costs of implementing this Plan are described in the site-specific section of the Plan. Site-specific sources of funding may include tax increment financing revenue generated from new development on eligible brownfield properties, state and federal grant or loan funds, and/or private parties. Where private parties finance the costs of eligible activities under the Plan, tax increment revenues may be used to reimburse the private parties. The initial costs related to preparation of the Brownfield Plan were funded by the City’s general fund. Subsequent amendments to the Plan may be funded by the person requesting inclusion of a project in the Plan, and if eligible, may be reimbursed through tax increment financing. The Authority intends to pay for administrative costs and all of the things necessary or convenient to achieve the objectives and purposes of the Authority with fees charged to applicants to be included in the Plan, and any eligible tax increment revenues collected pursuant to the Plan, in accordance with the provisions of Act 381, including, but not limited to: i) the cost of financial tracking and auditing the funds of the Authority, ii) costs for amending and/or updating this Plan, and iii) costs for Plan implementation Tax increment revenues that may be generated and captured by this Plan are identified in the site- specific sections of this Plan. B. Method for Financing Costs of Plan (Section 13(1)(d) and (e)) The City or Brownfield Authority may incur some debt on a site-specific basis. Please refer to the site- specific section of this Plan for details on any debt to be incurred by the City or Authority. When a property proposed for inclusion in the Plan is in an area where tax increment financing is a viable option, the Authority intends to enter into Development Agreements with the property owners/developers of properties included in the Plan to reimburse them for the costs of eligible activities undertaken pursuant to this Plan. Financing arrangements will be specified in a Development and Reimbursement Agreement, and also identified in the Site Specific section of the Plan. C. Duration of the Brownfield Plan (Section 13(1)(f)) The duration of this Plan is not to exceed 30 years. It is estimated that all of the homes associated with the Project will be completed by 2023. Since the “cost of sale” will vary for each home, as will construction costs, it is impossible to know exactly how long it will take to completely recapture eligible costs through tax increment revenues, although it is anticipated that it will be well within the 30 year time frame. In addition, once all activity costs are reimbursed, funds may be captured for the local site remediation revolving fund, if available. The duration of capture for the Project already began in 2020 and will continue until such time that all the eligible activities undertaken in this Plan are reimbursed, but in no event will the Plan exceed the maximum duration provided for in (MCLA 125.2663(1)(22)). The total costs of eligible activities include the cost of principal and interest on any note or obligation issued by the Authority to pay for the costs of eligible activities, the cost of principal and interest otherwise incurred to pay for eligible activities, the reasonable costs of a work plan or remedial action plan and the costs of preparation of Brownfield Plans and amendments. D. Displacement/Relocation of Individuals on Eligible Properties (Section 13(1)(i),(j)(k)(l) Eligible properties identified in this Plan will not require the displacement/relocation of existing residences, therefore the provisions of Section 13(1)(i-l) are not applicable at this time. E. Local Site Remediation Revolving Fund (Section 8; Section 13(1)(m)) Whenever this Plan includes a property for which taxes will be captured through the tax increment financing authority provided by Act 381, it is the Authority's intent to establish and fund a Local Site Remediation Revolving Fund ("Fund"). The Fund will consist of tax increment revenues that exceed the costs of eligible activities incurred on an eligible property, as specified in Section 13(5) of Act 381. Section 13(5) authorizes the capture of tax increment revenue from an eligible property for up to 5 years after the time that capture is required for the purposes of paying the costs of eligible activities identified in the Plan. It is the intention of the Authority to continue to capture tax increment revenues for 5 years after eligible activities are funded from those properties identified for tax capture in the Plan, provided that the time frame allowed by Act 381 for tax capture is sufficient to accommodate capture to capitalize a Fund. The amount of school operating taxes captured for the Revolving Fund will be limited to the amount of school operating taxes captured for eligible environmental response activities under this Plan. It may also include funds appropriated or otherwise made available from public or private sources. The Revolving Fund may be used to reimburse the Authority, the City, and private parties for the costs of eligible activities at eligible properties and other costs as permitted by Act 381. It may also be used for eligible activities on an eligible property for which there is no ability to capture tax increment revenues. The establishment of this Revolving Fund will provide additional flexibility to the Authority in facilitating redevelopment of brownfield properties by providing another source of financing for necessary eligible activities. 3. Site Specific Provisions A. Eligibility and Project Description (Sec. 13(1)(h)) The eligible properties comprising the Infill Housing Project included in this Plan is approximately 38 acres of vacant land spread across 108 parcels in Muskegon, Michigan (See Attachment A). The parcel numbers/legal description of the eligible properties are: 1246 5th St Parcel #24-205-378-0006-00 CITY OF MUSKEGON REVISED PLAT OF 1903 N 46 FT LOT 6 BLK 378 1252 5th St Parcel #24-205-378-0006-10 CITY OF MUSKEGON REVISED PLAT OF 1903 NLY 44 FT OF SLY 86 FT LOT 6 BLK 378 1245 5th St Parcel #24-205-377-0001-00 CITY OF MUSKEGON REVISED PLAT OF 1903 LOT 1 EX SELY 79.5 FT TH'OF & E 1/2 OF LOT 2 EX SELY 79.5 FT TH'OF BLK 377 1261 5th St Parcel #24-205-377-0011-00 CITY OF MUSKEGON REVISED PLAT OF 1903 N 1/4 LOT 11 & N 1/2 OF N 1/2 LOT 12 BLK 377 1342 6th St Parcel #24-205-388-0006-20 CITY OF MUSKEGON REVISED PLAT OF 1903 SELY 44 FT OF SWLY 26 FT LOT 5 & SELY 44 FT OF LOT 6 BLK 388 1349 6th St Parcel #24-205-389-0012-00 CITY OF MUSKEGON REVISED PLAT OF 1903 N 1/2 LOT 12 BLK 389 1352 6th St Parcel #24-205-388-0007-00 CITY OF MUSKEGON REVISED PLAT OF 1903 LOT 7 BLK 388 1411 6th St Parcel #24-205-390-0011-20 CITYOF MUSKEGON REVISED PLAT OF 1903 LOT 11 BLK 390 EXC W 92 FT TH'OF 1387 7th St Parcel #24-205-375-0005-00 CITY OF MUSKEGON REVISED PLAT OF 1903 SELY 74 FT LOT 5 & N 30 FT LOT 8 BLK 375 395 Houston Ave Parcel #205-369-0004-00 CITY OF MUSKEGON REVISED PLAT OF 1903 LOT 4 BLK 369 248 Mason Ave Parcel #24-205-387-0007-00 CITY OF MUSKEGON REVISED PLAT OF 1903 N 1/2 LOT 7 & W 26.7 FT OF S 1/2 LOT 7 BLK 387 275 Mason Ave Parcel #24-205-391-0003-00 CITY OF MUSKEGON REVISED PLAT OF 1903 LOT 3 BLK 391 346 Mason Ave Parcel #24-205-389-0009-00 CITY OF MUSKEGON REVISED PLAT OF 1903 W 30 FT LOT 9 BLK 389 352 Mason Ave Parcel #24-205-389-0008-00 CITY OF MUSKEGON REVISED PLAT OF 1903 LOT 8 BLK 389 219 Merrill Ave Parcel # 24-205-386-0012-00 CITY OF MUSKEGON REVISED PLAT OF 1903 LOT 12 BLK 386 271 Merrill Ave Parcel #24-205-387-0005-00 CITY OF MUSKEGON REVISED PLAT OF 1903 LOT 5 BLK 387 388 Merrill Ave Parcel #24-205-376-0007-20 CITY OF MUSKEGON REVISED PLAT OF 1903 ELY 66 FT OF WLY 132 FT LOT 7 EXC NLY 20 FT BLK 376 235 Monroe Ave Parcel #24-205-379-0003-10 CITY OF MUSKEGON REVISED PLAT OF 1903 E 28 FT LOT 3 BLK 379 239 Monroe Ave Parcel #24-205-379-0003-00 CITY OF MUSKEGON REVISED PLAT OF 1903 BLK 379 W 38 FT LOT 3 240 Monroe Ave Parcel #24-205-367-0010-00 CITY OF MUSKEGON REVISED PLAT OF 1903 W 1/2 LOT 10 BLK 367 250 Monroe Ave Parcel #24-205-367-0009-00 CITY OF MUSKEGON REVISED PLAT OF 1903 W 1/2 LOT 9 BLK 367 254 Monroe Ave Parcel #24-205-367-0008-10 CITY OF MUSKEGON REVISED PLAT OF 1903 E 40 FT LOT 8 BLK 367 398 Monroe Ave Parcel #24-205-370-0011-10 CITY OF MUSKEGON REVISED PLAT OF 1903 E 27 FT OF LOT 11 BLK 370 1392 Park St Parcel #24-205-375-0003-20 CITY OF MUSKEGON REVISED PLAT OF 1903 PART LOTS 3-4 & 11 BLK 375 COM ON S LN LOT 11 40 FT E OF SW COR TH E 84 FT TH NLY 26 FT TH NWLY TO A PT 48.5 FT N OF S LN LOT 11 TH W 62.4 FT TH S 48.5 FT TO BEG 382 W Muskegon Ave Parcel #24-205-336-0008-00 CITY OF MUSKEGON REVISED PLAT OF 1903 SLY 24.75 FT LOT 9 & NLY 55 FT LOT 8 BLK 336 487 W Muskegon Ave Parcel #24-205-370-0011-10 CITY OF MUSKEGON REVISED PLAT OF 1903 E 27 FT OF LOT 11 BLK 370 420 Washington Ave Parcel #24-205-375-0010-00 CITY OF MUSKEGON REVISED PLAT OF 1903 LOT 10 BLK 375 459 Washington Ave Parcel #24-205-408-0002-00 CITY OF MUSKEGON REVISED PLAT OF 1903 LOT 2 &3 BLK 408 1782 5th St Parcel #24-205-463-0004-00 CITY OF MUSKEGON REVISED PLAT 1903 LOT 4 AND N 22 FT LOT 5 BLK 463 318 W Larch Ave Parcel #24-205-449-0010-00 CITY OF MUSKEGON REVISED PLAT OF 1903 E 18 FT LOT 9 & W 20 FT LOT 10 BLK 449 324 W Larch Ave Parcel #24-205-449-0009-00 CITY OF MUSKEGON REVISED PLAT OF 1903 E 9 FT LOT 8 & W 29 FT LOT 9 BLK 449 1686 7th St Parcel # 24-205-449-0001-00 CITY OF MUSKEGON REVISED PLAT OF 1903 LOT 1 & 2 BLK 449 1660 7th St Parcel #24-205-440-0004-00 CITY OF MUSKEGON REVISED PLAT OF 1903 LOTS 5-6 BLK 440 408 W Dale Ave Parcel # 24-205-439-0006-10 CITY OF MUSKEGON REVISED PLAT OF 1903 W 45 FT OF E 85 FT OF LOTS 6 & 7 BLK 439 340 W Forest Ave Parcel # 24-205-428-0007-00 CITY OF MUSKEGON REVISED PLAT OF 1903 LOT 7 BLK 428 1639 5th St Parcel #24-205-441-0003-00 CITY OF MUSKEGON REVISED PLAT OF 1903 LOT 3 EXC S 5.5 FT TH'OF INCLUDING S 8 FT LOT 2 EXC W 44 FT TH'OF BLK 441 1605 Sanford St Parcel #24-205-425-0007-00 CITY OF MUSKEGON REVISED PLAT OF 1903 S 58 FT OF E 94 FT LOT 7 & S 10.4 FT OF E 94 FT LOT 8 BLK 425 (DESC CLARIFICATION 11/30/99) 487 W Southern Ave Parcel #24-205-430-0004-00 CITY OF MUSKEGON REVISED PLAT 1903 W 1 1/2 FT LOT 3 & N 115 FT LOTS 4-5 BLK 430 305 W Grand Ave Parcel #24-205-419-0019-00 CITY OF MUSKEGON REVISED PLAT OF 1903 LOT 19 BLK 419 1535 6th St Parcel # 24-205-419-0013-00 CITY OF MUSKEGON REVISED PLAT OF 1903 LOT 13 BLK 419 355 W Grand Ave Parcel #24-205-419-0001-00 CITY OF MUSKEGON REVISED PLAT OF 1903 W 46 FT LOTS 1 & 2 BLK 419 337 W Grand Ave Parcel #24-205-419-0001-20 CITY OF MUSKEGON REVISED PLAT OF 1903 E 44 FT OF LOTS 1-2 BLK 419 1458 6th St Parcel #24-205-405-0014-00 CITY OF MUSKEGON REVISED PLAT OF 1903 LOT 14 BLK 405 1464 6th St Parcel #24-205-405-0013-00 CITY OF MUSKEGON REVISED PLAT OF 1903 LOT 13 BLK 405 0 Washington Ave Parcel #24-205-375-0009-10 CITY OF MUSKEGON REVISED PLAT OF 1903 E 1/2 OF LOT 9 BLK 375 242 Strong Ave Parcel #24-205-391-0011-00 CITY OF MUSKEGON REVISED PLAT OF 1903 W 1/2 LOT 11 BLK 391 1360 7th St Parcel #24-205-376-0007-00 CITY OF MUSKEGON REVISED PLAT OF 1903 SLY 47 FT OF NLY 98 FT OF SW 66 FT OF LOT 7 BLK 376 1366 7th St Parcel # 24-205-376-0007-15 CITY OF MUSKEGON REVISED PLAT OF 1903 SLY 40 FT OF WLY 66 FT LOT 7 BLK 376 1262 6th St Parcel #24-205-369-0006-30 CITY OF MUSKEGON REVISED PLAT OF 1903 S 40 FT LOT 6 BLK 369 579 W Muskegon Ave Parcel #24-205-345-0001-00 CITY OF MUSKEGON REVISED PLAT OF 1903 NLY 1/2 LOT 1 BLK 345 0 W Muskegon Ave Parcel #24-205-345-0002-10 CITY OF MUSKEGON REVISED PLAT OF 1903 E 1/2 OF LOT 2 BLK 345 617 W Muskegon Ave Parcel # 24-205-345-0006-00 CITY OF MUSKEGON REVISED PLAT OF 1903 N 71 FT LOT 6 BLK 345 1047 Ambrosia St Parcel #24-205-232-0007-00 CITY OF MUSKEGON REVISED PLAT OF 1903 E 33 FT LOT 7 BLK 224 ALSO E 33 FT OF N 1/2 VAC DIANA ST LOTS 7 AND 8 BLK 232 ALSO S 1/2 VAC DIANA ST ADJ TO LOT 8 SD BLK 1075 Ambrosia St Parcel #24-205-236-0008-00 CITY OF MUSKEGON REVISED PLAT OF 1903 LOTS 8-9 BLK 236 1155 Ambrosia St Parcel #24-205-250-0008-00 CITY OF MUSKEGON REVISED PLAT OF 1903 LOTS 8-10 BLK 250 1205 Ambrosia St Parcel #24-205-261-0008-00 CITY OF MUSKEGON REVISED PLAT OF 1903 LOTS 8 & 9 BLK 261 1386 Ransom St Parcel #24-205-266-0001-00 CITY OF MUSKEGON REVISED PLAT OF 1903 LOT 1 BLK 266 1530 Hoyt St Parcel #24-205-281-0002-10 CITY OF MUSKEGON REVISED PLAT OF 1903 S 35.7 FT LOT 2 BLK 281 292 Mason Ave Parcel #24-205-388-0008-10 CITY OF MUSKEGON REVISED PLAT OF 1903 E 1/2 LOT 8 BLK 388 254 W Southern Ave Parcel #24-205-420-0012-20 CITY OF MUSKEGON REVISED PLAT OF 1903 W 32 FT OF E 82 FT LOTS 12-13 BLK 420 1670 Park St Parcel #24-205-439-0007-00 CITY OF MUSKEGON REVISED PLAT OF 1903 W 80 FT LOT 7 BLK 439 1227 Fleming Ave Parcel #24-745-000-0033-00 CITY OF MUSKEGON ROSELINDE ADDITION LOT 33 1251 8th St 24-205-340-0001-00 CITY OF MUSKEGON REVISED PLAT OF 1903 PART OF LOTS 1 TO 7 LYING SELY OF WEBSTER AVE BLK 340 527 Herrick St Parcel #24-205-023-0008-00 CITY OF MUSKEGON REVISED PLAT OF 1903 LOTS 8-14 BLK 23 530 Herrick St Parcel #24-205-022 CITY OF MUSKEGON REVISED PLAT OF 1903 S 178 FT LOT 3 & THAT PART OF LOT 4 LYING N OF SUMNER AVE BLK 22-0003-20 553 Jackson Ave Parcel #24-205-022-0002-00 CITY OF MUSKEGON REVISED PLAT OF 1903 LOT 2 & N 150 FT LOT 3 BLK 22 601 Jackson Ave Parcel #24-205-021-0001-00 CITY OF MUSKEGON REVISED PLAT OF 1903 W 66 FT OF N 132 FT LOT 1 BLK 21 621 Jackson Ave Parcel #24-205-020-0001-00 CITY OF MUSKEGON REVISED PLAT OF 1903 LOT 1& 2 BLK 20 677 Jackson Ave Parcel #24-205-019-0002-00 CITY OF MUSKEGON REVISED PLAT OF 1903 LOT 2 BLK 19 558 Jackson Ave Parcel #24-205-014-0020-00 CITY OF MUSKEGON REVISED PLAT OF 1903 E 1/2 LOT 19 & ALL LOTS 20 & 21 BLK 14 608 Jackson Ave Parcel #24-205-015-0006-10 CITY OF MUSKEGON REVISED PLAT OF 1903 LOT 6 EX NLY 50 FT BEING 50 FT ON LANGLEY ST & 62.32 FT ON E LINE SAID LOT 6 BLK 15 704 Leonard Ave Parcel #24-405-003-0001-00 CITY OF MUSKEGON GUNNS SUB DIV OF PART OF BLK 2 LOTS 1-2 & 3 BLK 3 740 Leonard Ave Parcel #24-405-003-0007-00 CITY OF MUSKEGON GUNNS SUB DIV OF PART OF BLK 2 LOTS 4-5-6 & W 4 FT LOT 7 BLK 3 754 Leonard Ave Parcel #24-405-003-0008-00 CITY OF MUSKEGON GUNNS SUB DIV OF PART OF BLK 2 E 36 FT LOT 7 ALL LOTS 8 & 9 & W 8 FT LOT 10 BLK 3 766 Leonard Ave Parcel #24-405-003-0011-00 CITY OF MUSKEGON GUNNS SUB DIV OF PART OF BLK 2 E 42 FT LOT 10 ALL LOTS 11 & 12 BLK 3 1259 Sanford St Parcel #24-205-384-0007-20 CITY OF MUSKEGON REVISED PLAT OF 1903 S 42 2/3 FT OF E 94 FT LOT 7 BLK 384 1280 Sanford St Parcel #24-205-394-0001-00 CITY OF MUSKEGON REVISED PLAT OF 1903 W 98 FT LOT 1 BLK 394 1141 Jefferson St Parcel #24-205-364-0008-10 CITY OF MUSKEGON REVISED PLAT OF 1903 S 68 FT LOT 8 BLK 364 1095 1st St Parcel #24-205-352-0008-00 CITY OF MUSKEGON REVISED PLAT OF 1903 LOT 8 BLK 352 1338 Arthur Parcel # 24-205-254-0001-00 CITY OF MUSKEGON REVISED PLAT OF 1903 NLY 84 FT LOT 1 BLK 254 204 W Dale Parcel # 24-205-441-0007-00 CITY OF MUSKEGON REVISED PLAT OF 1903 W 47.6 FT LOT 7 & W 47.6 FT OF S 27 1/7 FT LOT 6 BLK 441 1514 Park St Parcel # 24-205-418-0003-00 CITY OF MUSKEGON REVISED PLAT OF 1903 LOT 3 BLK 418 314 W Grand Ave Parcel # 24-205-406-0018-00 CITY OF MUSKEGON REVISED PLAT OF 1903 LOT 18 BLK 406 237 Washington Ave Parcel # 24-205-405-0019-00 CITY OF MUSKEGON REVISED PLAT OF 1903 LOT 19 BLK 405 & SUBJ TO N 1/2 VAC ALLEY ADJ TH'TO RECOR'D 3711/266 329 Washington Ave Parcel # 24-205-406-0007-00 CITY OF MUSKEGON REVISED PLAT OF 1903 LOT 7 BLK 406 1456 Park St Parcel # 24-205-407-0004-00 CITY OF MUSKEGON REVISED PLAT OF 1903 LOT 4 BLK 407 1468 8th St Parcel # 24-205-408-0007-00 CITY OF MUSKEGON REVISED PLAT OF 1903 LOT 7 BLK 408 EXC E 46 FT TH'OF 462 Washington Ave Parcel # 24-205-374-0007-00 CITY OF MUSKEGON REVISED PLAT OF 1903 W 39 1/2 FT LOT 7 BLK 374 507 Houston Ave Parcel # 24-205-371-0004-10 CITY OF MUSKEGON REVISED PLAT OF 1903 E 1/2 LOT 4 BLK 371 1370 Sanford St Parcel # 24-205-401-0001-10 CITY OF MUSKEGON REVISED PLAT OF 1903 S 32 1/4 FT OF N 63 1/2 FT OF W 106 FT 2 1/2 IN LOT 1 BLK 401 731 Yuba St Parcel # 24-205-183-0001-00 CITY OF MUSKEGON REVISED PLAT 1903 ENTIRE BLK 183 LYING ELY OF C & O R/W EX COM ON NLY LINE SAID BLK 44 FT M/L SWLY OF NE COR LOT 5 TH S 24 DEG 39 MIN 59 SEC W 63 FT M/L TH NLY 39 FT M/L TO NLY LINE SAID BLK TH NELY ON NLY LINE SAID BLK 39 FT M/L TO BEG 205 E Muskegon Ave Parcel # 24-205-192-0001-00 CITY OF MUSKEGON REVISED PLAT OF 1903 LOTS 1 THRU 12 INCL BLK 192 287 E Muskegon Ave Parcel # 24-205-193-0004-00 CITY OF MUSKEGON REVISED PLAT 1903 LOTS 4 THRU 10 INC BLK 193 225 Eastern Ave Parcel # 24-205-182-0001-00 CITY OF MUSKEGON REVISED PLAT 1903 ENTIRE BLK 182 650 Yuba St Parcel # 24-205-167-0001-00 CITY OF MUSKEGON REVISED PLAT OF 1903 ENTIRE BLK 167 417 Jackson Ave Parcel # 24-205-024-0001-00 CITY OF MUSKEGON REVISED PLAT OF 1903 ENTIRE BLKS 24 25 26 ALSO BLK 27 EX LOTS 6 & 7 1078 2nd St Parcel # 24-205-352-0004-10 CITY OF MUSKEGON REVISED PLAT OF 1903 S 1/2 LOT 4 BLK 352 1067 W Grand Ave Parcel # 24-205-484-0004-00 CITY OF MUSKEGON REVISED PLAT OF 1903 BLK 484 LOT 4 & S 16 1/2 FT OF GRAND AVE ABUTTING SAME 1188 4th St Parcel # 24-205-367-0008-00 CITY OF MUSKEGON REVISED PLAT OF 1903 W 92 FT LOT 8 BLK 367 1457 7th St Parcel # 24-205-407-0011-10 CITY OF MUSKEGON REVISED PLAT OF 1903 S 2/3 LOT 11 BLK 407 580 Catherine Ave Parcel # 24-205-076-0009-00 CITY OF MUSKEGON REVISED PLAT 1903 LOT 9 BLK 76 1192 Pine St Parcel # 24-205-245-0002-00 CITY OF MUSKEGON REVISED PLAT OF 1903 N 1/2 LOT 2 BLK 245 1194 Pine St Parcel # 24-205-245-0002-10 CITY OF MUSKEGON REVISED PLAT OF 1903 S 1/2 LOT 2 BLK 245 254 W Southern Ave Parcel # 24-205-420-0012-20 CITY OF MUSKEGON REVISED PLAT OF 1903 W 32 FT OF E 82 FT LOTS 12-13 BLK 420 435 E Isabella Ave Parcel # 24-205-078-0004-00 CITY OF MUSKEGON REVISED PLAT 1903 LOT 4 BLK 78 248 Mason Ave Parcel # 24-205-387-0007-00 CITY OF MUSKEGON REVISED PLAT OF 1903 N 1/2 LOT 7 & W 26.7 FT OF S 1/2 LOT 7 BLK 387 Project Breakdown: There are 108 parcels included in this plan. Some of these lots will be split, which will result in a total of 249 parcels. Parcels = 108 Parcels after splits = 249 New homes = 239 Rehabbed homes = 10 New homes with “cost of sale” concession = 195 New homes without “cost of sale” concessions = 54 “Cost of sale” concessions = $3,880,000 Public Infrastructure = $777,000 Demo & abatement = $1,200,000 Reimbursable Costs of Construction (before 15% contingency) = $5,857,000 The chart below depicts a listing of eligible properties and the basis for their eligibility. Eligible Property Information Chart Address Tax Identification Basis of Investment Reimbursable Approxi Zoning Number Brownfield Cost Cost mate Eligibility Acreage Dusendang Project (110 Homes) 1246 5th St 24-205-378-0006-00 Cost of Sale $200,000 $20,000 0.07 FBC, UR 1252 5th St 24-205-378-0006-10 Cost of Sale $200,000 $20,000 0.07 FBC, UR 1245 5th St 24-205-377-0001-00 Cost of Sale $200,000 $20,000 0.12 FBC, UR 1261 5th St 24-205-377-0011-00 Cost of Sale $200,000 $20,000 0.1 FBC, UR 1342 6th St 24-205-388-0006-20 Cost of Sale $200,000 $20,000 0.09 FBC, UR 1349 6th St Cost of Sale $200,000 $40,000 0.19 FBC, UR 24-205-389-0012-00 (2 lots) 1352 6th St Cost of Sale $400,000 $40,000 0.2 FBC, UR 24-205-388-0007-00 (2 lots) 1411 6th St 24-205-390-0011-20 Cost of Sale $200,000 $20,000 0.1 FBC, UR 1387 7th St Cost of Sale $400,000 $40,000 0.22 FBC, UR 24-205-375-0005-00 (2 lots) 395 Houston Ave Cost of Sale $400,000 $40,000 0.21 FBC, UR 24-205-369-0004-00 (2 lots) 275 Mason Ave Cost of Sale $400,000 $40,000 0.18 FBC, UR 24-205-391-0003-00 (2 lots) 346 Mason Ave Cost of Sale $400,000 $40,000 0.09 FBC, UR 24-205-389-0009-00 (2 lots) 352 Mason Ave 24-205-389-0008-00 Cost of Sale $200,000 $20,000 0.2 FBC, UR 219 Merrill Ave 24-205-386-0012-00 Cost of Sale $200,000 $20,000 0.12 FBC, UR 271 Merrill Ave Cost of Sale $400,000 $40,000 0.19 FBC, UR 24-205-387-0005-00 (2 lots) 388 Merrill Ave Cost of Sale $400,000 $40,000 0.2 FBC, UR 24-205-376-0007-20 (2 lots) 235 Monroe Ave 24-205-379-0003-10 Cost of Sale $200,000 $20,000 0.09 FBC, UR 239 Monroe Ave 24-205-379-0003-00 Cost of Sale $200,000 $20,000 0.11 FBC, UR 240 Monroe Ave 24-205-367-0010-00 Cost of Sale $200,000 $20,000 0.11 FBC, UR 250 Monroe Ave 24-205-367-0009-00 Cost of Sale $200,000 $20,000 0.2 FBC, UR 254 Monroe Ave 24-205-367-0008-10 Cost of Sale $200,000 $20,000 0.06 FBC, UR 398 Monroe Ave 24-205-370-0011-10 Cost of Sale $200,000 $20,000 0.08 FBC, UR 1392 Park St 24-205-375-0003-20 Cost of Sale $200,000 $20,000 0.07 FBC, UR 382 W Muskegon Ave 24-205-336-0008-00 Cost of Sale $200,000 $20,000 0.24 FBC, UR 487 W Muskegon Ave 24-205-347-0004-00 Cost of Sale $200,000 $20,000 0.19 FBC, UR 420 Washington Ave Cost of Sale $400,000 $40,000 0.19 FBC, UR 24-205-375-0010-00 (2 lots) 459 Washington Ave Cost of Sale $600,000 $60,000 0.46 FBC, UR 24-205-408-0002-00 (3 lots) 1782 5th St (2 lots) 24-205-463-0004-00 Cost of Sale $400,000 $40,000 0.31 FBC, UR 318 W Larch Ave (2 Cost of Sale $400,000 $40,000 0.27 FBC, UR 24-205-449-0010-00 lots) 324 W Larch Ave 24-205-449-0009-00 Cost of Sale $200,000 $20,000 0.14 FBC, UR 1686 7th St (2 lots) 24-205-449-0001-00 Cost of Sale $400,000 $40,000 0.31 FBC, UR 1660 7th (2 lots) 24-205-440-0004-00 Cost of Sale $400,000 $40,000 0.31 FBC, UR 408 W Dale Ave 24-205-439-0006-10 Cost of Sale $200,000 $20,000 0.1 FBC, UR 340 W Forest Ave 24-205-428-0007-00 Cost of Sale $200,000 $20,000 0.15 FBC, UR 1639 5th St 24-205-441-0003-00 Cost of Sale $200,000 $20,000 0.17 FBC, UR 1605 Sanford St (2 Cost of Sale $400,000 $40,000 0.15 FBC, UR 24-205-425-0007-00 lots) 487 W Southern Ave Cost of Sale $400,000 $40,000 0.26 FBC, UR 24-205-430-0004-00 (2 lots) 305 W Grand Ave 24-205-419-0019-00 Cost of Sale $200,000 $20,000 0.17 FBC, UR 1535 6th St 24-205-419-0013-00 Cost of Sale $200,000 $20,000 0.16 FBC, UR 355 W Grand Ave 24-205-419-0001-00 Cost of Sale $200,000 $20,000 0.1 FBC, UR 337 W Grand Ave 24-205-419-0001-20 Cost of Sale $200,000 $20,000 0.1 FBC, UR 1458 6th St 24-205-405-0014-00 Cost of Sale $200,000 $20,000 0.16 FBC, UR 1464 6th St 24-205-405-0013-00 Cost of Sale $200,000 $20,000 0.17 FBC, UR 0 Washington Ave 24-205-375-0009-10 Cost of Sale $200,000 $20,000 0.15 FBC, UR 242 Strong Ave 24-205-391-0011-00 Cost of Sale $200,000 $20,000 0.08 FBC, UR 1360 7th St 24-205-376-0007-00 Cost of Sale $200,000 $20,000 0.09 FBC, UR 1366 7th St 24-205-376-0007-00 Cost of Sale $200,000 $20,000 0.07 FBC, UR 1262 6th St 24-205-369-0006-30 Cost of Sale $200,000 $20,000 0.07 FBC, UR 579 W Muskegon Ave 24-205-345-0001-00 Cost of Sale $200,000 $20,000 0.09 FBC, UR 0 W Muskegon Ave 24-205-345-0002-10 Cost of Sale $200,000 $20,000 0.1 FBC, UR 617 W Muskegon Ave 24-205-345-0006-00 Cost of Sale $200,000 $20,000 0.24 FBC, UR 1047 Ambrosia St Cost of Sale $1,400,000 $140,000 0.57 OSR 24-205-232-0007-00 (7 lots) 1075 Ambrosia St Cost of Sale $1,200,000 $120,000 0.35 OSR 24-205-236-0008-00 (6 lots) 1155 Ambrosia St Cost of Sale $1,200,000 $120,000 0.61 OSR 24-205-250-0008-00 (6 lots) 1205 Ambrosia St Cost of Sale $1,200,000 $120,000 0.41 OSR 24-205-261-0008-00 (6 lots) 1386 Ransom St 24-205-266-0001-00 Cost of Sale $200,000 $20,000 0.2 R-3 1530 Hoyt St 24-205-282-0002-10 Cost of Sale $200,000 $20,000 0.1 R-3 292 Mason Ave 24-205-388-0008-10 Cost of Sale $200,000 $20,000 0.09 FBC, UR 254 W Southern Ave 24-205-420-0012-20 Cost of Sale $200,000 $20,000 0.07 FBC, UR 1670 Park St 24-205-439-0007-00 Cost of Sale $200,000 $20,000 0.09 FBC, UR 1772 5th St 24-205-463-0003-00 Cost of Sale $200,000 $20,000 0.23 FBC, UR 1227 Fleming Ave 24-745-000-0033-00 Cost of Sale $200,000 $20,000 0.11 R-2 1251 8th St (10 lots) 24-205-340-0001-00 Cost of Sale $2,000,000 $200,000 1.14 FBC-UR Rudy Briggs Project (32 Homes) 527 Herrick St Cost of Sale $1,800,000 $180,000 1.41 R-1 24-205-023-0008-00 (9 lots) 530 Herrick St Cost of Sale $600,000 $60,000 0.41 R-1 24-205-022-0003-20 (3 lots) 553 Jackson Ave Cost of Sale $600,000 $60,000 0.55 R-1 24-205-022-0002-00 (3 lots) 579 Jackson Ave 24-205-022-0001-00 Cost of Sale $200,000 $20,000 0.19 R-1 601 Jackson Ave 24-205-021-0001-00 Cost of Sale $200,000 $20,000 0.2 R-1 621 Jackson Ave 24-205-020-0001-00 Cost of Sale $200,000 $20,000 0.34 R-1 677 Jackson Ave 24-205-019-0002-00 Cost of Sale $200,000 $20,000 0.24 R-1 558 Jackson Ave Cost of Sale $400,000 $40,000 0.61 R-1 24-205-014-0020-00 (2 lots) 608 Jackson Ave 24-205-015-0006-10 Cost of Sale $200,000 $20,000 0.24 R-1 704 Leonard Ave Cost of Sale $400,000 $40,000 0.38 R-1 24-405-003-0001-00 (2 lots) 740 Leonard Ave Cost of Sale $400,000 $40,000 0.37 R-1 24-205-003-0007-00 (2 lots) 754 Leonard Ave Cost of Sale $600,000 $60,000 0.37 R-1 24-205-003-0008-00 (3 lots) 766 Leonard Ave Cost of Sale $600,000 $60,000 0.38 R-1 24-405-003-0011-00 (3 lots) Community Encompass Project (5 Homes) 1259 Sanford St (LB) 24-205-384-0007-20 Cost of Sale $200,000 $20,000 0.09 FBC, UR 1280 Sanford St (LB) 24-205-394-0001-00 Cost of Sale $200,000 $20,000 0.15 FBC, UR 1141 Jefferson St 24-205-364-0008-10 Cost of Sale $200,000 $20,000 0.1 FBC, UR 1095 1st 24-205-352-0008-00 Cost of Sale $200,000 $20,000 0.07 FBC, UR 1338 Arthur St (LB) 24-205-254-0001-00 Cost of Sale $200,000 $20,000 0.13 R-3 Land Bank Properties (12 Homes) 204 W Dale (LB) Blight $200,000 $0 0.08 FBC, UR 24-205-441-0007-00 Elimination 1514 Park St (LB) Blight $200,000 $0 0.19 FBC, UR 24-205-418-0003-00 Elimination 314 W Grand Ave (LB) Blight $200,000 $0 0.17 FBC, UR 24-205-406-0018-00 Elimination 237 Washington Ave Blight $200,000 $0 0.17 FBC, UR 24-205-405-0019-00 (LB) Elimination 329 Washington Ave Blight $200,000 $0 0.19 FBC, UR 24-205-406-0007-00 (LB) Elimination 1456 Park St (LB) Blight $200,000 $0 0.18 FBC, UR 24-205-407-0004-00 Elimination 1468 8th St (LB) (2 lots) Blight $400,000 $0 0.19 FBC, UR 24-205-408-0007-00 Elimination 462 Washington Ave Blight $200,000 $0 0.08 FBC, UR 24-205-374-0007-00 (LB) Elimination 507 Houston Ave (LB) Blight $200,000 $0 0.1 FBC, UR 24-205-371-0004-10 Elimination 1370 Sanford St (LB) Blight $200,000 $0 0.08 FBC, UR 24-205-401-0001-10 Elimination 1542 7th St (LB) Blight $200,000 $0 0.08 FBC, UR 24-205-419-0007-00 Elimination Former Farmers Market Properties (40 Homes) 731 Yuba St Blight $1,600,000 155,400 (Public 2.71 I-1 (8 lots) Elimination (homes) Infrastructure) 24-205-183-0001-00 155,400 (Public Infrastructure) 205 E Muskegon Ave Blight $1,600,000 155,400 (Public 2.55 I-1 (8 lots) Elimination (homes) Infrastructure) 24-205-192-0001-00 155,400 (Public/ Infrastructure) 287 E Muskegon Ave Blight $1,600,000 155,400 (Public 1.48 I-1 (8 lots) Elimination (homes) Infrastructure) 24-205-193-0004-00 155,400 (Public Infrastructure) 225 Eastern Ave Blight $1,600,000 155,400 (Public 1.59 I-1 (8 lots) Elimination (homes) Infrastructure) 24-205-182-0001-00 155,400 (Public Infrastructure) 650 Yuba St Blight $1,600,000 155,400 (Public 1.61 B-4 (8 lots) Elimination (homes) Infrastructure) 24-205-167-0001-00 155,400 (Public Infrastructure) Froebel School Property (40 Homes) 417 Jackson Ave Demo & $9,200,000 $2,000,000 7.01 R-1 Abatement ($1,200,000 24-205-024-0001-00 + Cost of demo + Sale $800,000 Cost of Sale) City Rehab Projects (10 Homes) nd 1078 2 St Blight $50,000 $0 0.1 FBC-UR 24-205-352-0004-10 Elimination 1067 W Grand Blight $50,000 $0 0.2 R-1 24-205-484-0004-00 Elimination 1188 4th St Blight $50,000 $0 0.13 FBC-UR 24-205-367-0008-00 Elimination 1457 7th St 24-205-407-0011-10 Cost of Sale $50,000 $20,000 0.12 FBC-UR 580 Catherine Ave 24-205-076-0009-00 Cost of Sale $50,000 $20,000 0.2 R-3 1192 Pine St 24-205-245-0002-00 Cost of Sale $50,000 $20,000 0.1 R-3 1194 Pine St 24-205-245-0002-10 Cost of Sale $50,000 $20,000 0.09 R-3 254 W Southern Ave 24-205-420-0012-20 Cost of Sale $50,000 $20,000 0.07 FBC-UR 435 E Isabella 24-205-078-0004-00 Cost of Sale $50,000 $20,000 0.2 R-3 248 Mason Ave 24-205-387-0007-00 Cost of Sale $50,000 $20,000 0.14 FBC-UR Eligible Activities, Financing, Cost of Plan (Sec. 13(1) (a) (b) (c) (d) (g)) Eligible activities include cost of sale, demo & abatement, public infrastructure and brownfield plan preparation and development (see chart below). Eligible Activities Chart Eligible Activity Cost Cost of Sale $3,880,000 Demo & Abatement $1,200,000 Public Infrastructure $777,000 Brownfield Plan Preparation and Development $20,000 Sub-total $5,877,000 Contingency (15%) $881,550 Total Eligible Activities to be paid under this $6,758,550 Plan The eligible activities described above will occur on the Property and are further described as follows: 1. Cost of Sale: If the sale of a home results in a loss to the developer, the difference between the cost of construction and the sale price is considered the cost of sale or a seller concession. Some of these concessions could come from title work, acquisition costs and selling costs. For this Plan, it is anticipated that each home may result in the loss of $20,000 per unit. 2. Demo & Abatement: The cost to demolish the property and return it to a developable state, which may include lead and asbestos abatement. 3. Public Infrastructure: The cost to construct public infrastructure like alleys and water/sewer lines. 4. Brownfield Plan Preparation and Development: Costs incurred to prepare and develop this brownfield plan, as required per Act 381 of 1996, as amended. It is intended that the above eligible activities will be reimbursed with interest at 5%. Effective Date if Inclusion in the Brownfield Plan The amended Infill Housing Project was added to this Plan on ____________, 2020 and will be amended accordingly upon adoption of this Plan Amendment. Agenda Item Review Form Muskegon City Commission Commission Meeting Date: July 28, 2020 Title: West Urban Properties Agreement Submitted By: Frank Peterson Department: City Manager Brief Summary: In June, the City Commission accepted a Letter of Intent from West Urban Properties and authorized the city manager and city attorney to finalize a development agreement. The proposed development agreement is attached and recommended for approval. Detailed Summary: We are proposing the framework of a Pilot program that we would use to initially partner with West Urban Properties to construct 100 units on vacant city lots. As part of the program, either the City or West Urban Properties may choose to stop home construction prior to the completion of the 100 homes. The program is expected to be applicable to many different builders/developers and many different housing types and densities. As the City tries to revers 40+ years of neighborhood disinvestment, it is important that we acknowledge the areas that make us less-attractive for development than urban areas. Some of those items are more in our control than others. This program focuses strictly on developer return on investment – with the goal of the city acting as a partner to help ensure that a major investment in rental housing neither fails to cashflow nor causes unreasonable increases in local rents. Many times, affordability and profitability contradict one another – this Pilot Program is designed to help attain both. Amount Requested: $ Amount Budgeted: $ Fund(s) or Account(s): N/A Fund(s) or Account(s): N/A Recommended Motion: To authorize the City Manager to sign the Development Agreement. Check if the following Departments need to approve the item first: Police Dept. Fire Dept. IT Dept. For City Clerk Use Only: Commission Action: FINAL FROM FRANK PILOT DEVELOPMENT AGREEMENT THIS PILOT DEVELOPMENT AGREEMENT (the “Agreement”) is made on the ____ day of ________, 2020, by and between the CITY OF MUSKEGON, a Michigan municipal corporation, whose address is 933 Terrace Street, Muskegon, Michigan 49440 (the “City”) and West Urban Properties, LLC, a Michigan limited liability company, whose address is 3265 Walker Avenue, Suite D, Grand Rapids, Michigan, 49544 (the “Developer”). RECITALS A. Pursuant to P.A. 381 of 1996, as amended, (“Act 381”), the Muskegon Brownfield Authority adopted a brownfield plan on ____________ (the “Brownfield Plan”) to add numerous vacant properties, as specified on attached Exhibit A (the “Property”). B. The Property is included in the City’s Scattered Site Brownfield Project, as amended by the Muskegon Brownfield Redevelopment Authority on ________. C. The Developer intends to redevelop the Property into a 100-unit scattered site residential rental neighborhood where no less than 40% of the units are allocated to tenants with income levels between 70% and 120% of the Area Median Income, as defined by the Michigan State Housing Development Authority (the “Project”). NOW, THEREFORE, the parties agree as follows: 1. Project Completion. a. Developer agrees to purchase the Property described in attached Exhibit A. i. The Developer will be responsible for all survey work associated with lot line adjustments, except that City shall be responsible for all costs, including costs associated with any necessary survey to create tax parcels. ii. City will waive or pay for all water and sewer connection fees. Developer shall be responsible for all other fees, specifically including mechanical, plumbing electrical and any other construction and building permit fees. i. b. Operating Incentive. In exchange for the Developer’s commitment to allocate 40% of the units to be rented by individuals with income levels between 70% and 120% of Area Median Income, as defined by the Michigan State Housing Development Authority, the City agrees to provide an operating incentive to ensure such affordability as provided in Paragraph 3. 2. Rental Rates. The Developer shall be responsible for verifying tenant income to ensure his/her qualifications for any income-restricted units. An income-qualified tenant’s rent shall be set to follow the the RENT LIMITS established annually by the Michigan State Housing Development Authority (MSHDA) for a Muskegon County family earning between 70% and120% AMI and renting 1-3-bedroom home. The Developer is not obligated to rent any units below the 70% RENT LIMIT, regardless of the tenant’s verified income level. Exhibit C of This Agreement demonstrates that initial rent limits as established by MSHDA in April 2020. 2 3. Shared Rental Benefit. a. As an incentive to assist moderate income renters, the Developer may from time to time rent units at a rental rate below $1,300 per month. In the event the developer rents a unit to an income-qualified resident for less than $1,300 per month, the city will reimburse the Developer as follows: (1) if the rental rate is between $1,050 and $1,300, City will reimburse the Developer the difference between the rental rate and $1,300; and (2) If the rental rate is below $1,050, the City will pay $250 to Developer plus 50% of the difference between the rental rate and $1,050. As an incentive to attract market rate renters, the Developer may from time to time rent units at a rental rate above $1,300 per month. In the event the developer rents a unit to a tenant for more than $1,550 per month, the Developer will remit to the city 50% of the difference between the actual rental rate and $1,550 per month. b. City shall establish the “West Urban Properties Rental Subsidy Fund’. The City shall deposit $250,000 from the City of Muskegon Economic Development Revolving Loan Fund, which was created in part by a gift from Sappi Paper Company when the company ceased operations for economic development. All monies owed to the Developer by City pursuant to Paragraph 3(a) shall be paid from the West Urban Properties Rental Subsidy Fund and all monies owed by the Developer to the City pursuant to Paragraph 3(a) shall be credited to the West Urban Properties Rental Subsidy Fund. On a quarterly basis, Developer shall provide documentation, to City’s satisfaction, as to the amount City owes Developer and/or Developer owes City pursuant to Paragraph 3(a). Upon termination of this Pilot Development Agreement, all monies left in the 3 West Urban Properties Rental Subsidy Fund shall revert to the City of Muskegon Economic Development Revolving Loan Fund for economic development and any amounts owed to the Developer shall be waived. City shall have no obligation to reimburse Developer for any reason from any other City fund. 4. Vacancy Assistance. During the first 30 days after completion of a home with a certificate of occupancy, the Developer shall be responsible for any vacancy losses. After the 30-day holding period and during the first 12 months of the completion of a home with a certificate of occupancy, the City will reimburse the Developer $1,300 per month while the unit is owned by Developer and vacant. Any monies owed by City shall be taken from the Fund established in Paragraph 3(b) and from no other source of City monies. Any unit that remains vacant for more than three months must be listed on the MLS at a price not more than 110% of cost to construct, which will be accepted by Developer. Failure to list the property for sale at not more than 110% of the cost to construct shall render the City’s obligation to provide vacancy assistance invalid. If the provisions of this Paragraph are exercised by Developer, then City shall have the right to terminate this Agreement as to any building not under construction at the time the City provided notice of its intent to terminate this Agreement pursuant to this Paragraph. Both parties agree that a building will be considered under construction only after the foundation and/or building slab is in place. 5. Renter Opportunity to Purchase. With a 60-day written notice from any Tenant to the Landlord. Tenant shall have the option to purchase their occupied Leased Premises at the current appraised value plus any 4 subsidy paid from the West Urban Properties Rental Subsidy Fund for that unit, unless that value is less than the original cost to build the residential dwelling. 6. Property Taxes. In the event that the State Equalized Values (SEV) assigned to properties by the City Assessor at the completion of a phase results in an initial an annual property tax bill in excess of $2,325 per unit, parties agree to amend that Section 3(a) of this Pilot Agreement to offset the increased property tax burden. Annually, beginning January 1, 2022, the $2,325 maximum per unit average shall increase or decrease with the Consumers Price Index regularly used by the Muskegon City Assessor. 7. Term of Agreement. The Developer’s and City’s obligations under this Agreement for any individual parcel shall terminate 20 years from the issuance of the original certificate of occupancy or upon a sale of the parcel that results in an uncapping of the Property’s Taxable Value, but never after January 1, 2045 (the “Term”). This 100-unit Pilot shall be completed in 4 phases of 25 home increments. The Developer and City agree to meet upon the completion of each phase to discuss the performance of the prior phase before proceeding onto the next phase. At that time, if either party is dissatisfied with the performance of the phase, the upcoming phase may be postponed for up to 12 months by providing written notice. If Developer is not constructing units on the Property for a 12-month period, as evidenced by the failure to pull permits and complete construction in a timely manner, the Pilot 5 Development Agreement shall terminate, after Notice as required by Paragraph 8, as to Parcels where Developer is not pursuing construction. Should any court of competent jurisdiction find any portion of the Pilot Development Agreement void and/or prohibits City from funding any obligation provided in this Pilot Development Agreement, either City or Developer may terminate this Pilot Development Agreement with no consequences from the other party. 8. Notices. All notices, payments, demands or requests required or permitted to be given pursuant to this Agreement shall be in writing and shall be deemed to have been properly given or served effective on the second (2nd) business day after being deposited in the United States mail, postpaid and registered or certified with return receipt requested; or when sent by private courier service for same-day delivery or one day after being sent by private courier service for next-day delivery. Notices shall be sent via e-mail and also to the respective addresses set forth below: To Seller: THE CITY OF MUSKEGON Attn: City Manager 933 Terrace St. Muskegon, MI 49440 With copy to: Parmenter Law P.O. Box 786 Muskegon, MI 49443-0786 6 To Purchaser: WEST URBAN PROPERTIES,LLC Attn: Dave Dusendang 3265 Walker Avenue, Suite D, Grand Rapids, Michigan, 49544 9. Assignment. Developer and City shall have the right to assign all of its rights and delegate all of its obligations under this Agreement to either an existing or a newly created entity, provided, however, that no assignment shall operate as a release of that party without the written consent of the other, which consent may be withheld in such other party’s sole discretion. 10. Arbitration. Any and all disputes, controversies, or claims arising out of or in connection with or relating to this Agreement, or any breach or alleged breach thereof, shall, on the request of either party, be submitted to and settled by arbitration in the State of Michigan pursuant to the rules, then in effect, of the American Arbitration Association (or at any other place or under any other form of arbitration mutually acceptable to the parties involved). This Agreement to arbitrate shall be specifically enforceable under the prevailing arbitration law. Notice of the demand for arbitration shall be filed, in writing, within a reasonable time after the claim, dispute, or other matter in question arose where the party asserting the claim should reasonably have been aware of it, but in no event later than the applicable Michigan statute of limitations. Cost of arbitration shall be shared equally by the parties, provided that each party shall pay for and bear the cost of 7 his or her own experts, evidence, and attorney fees. Judgment on the award rendered by the arbitrator may be entered in any court having jurisdiction to do so. 11. Entire Agreement. This Agreement supersedes all agreements previously made between the parties relating to the subject matter. There are no other understandings or agreements between them. 12. Non-Waiver. No delay or failure by any party to exercise any right under this Agreement, and no partial or single exercise of that right, constitutes a waiver of that or any other right, unless otherwise expressly provided herein. 13. Headings. Headings in this Agreement are for convenience only and shall not be used to interpret or construe its provisions. 14. Governing Law. This Agreement shall be construed in accordance with and governed by the laws of the State of Michigan. 15. Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same instrument. 16. Binding Effect. The provisions of this Agreement shall be binding upon and inure to the benefit of all the parties and their respective heirs, legal representatives, successors and assigns. The parties have executed this Agreement on the date set forth above. 8 CITY OF MUSKEGON By:_____________________________ Its:_____________________________ WEST URBAN PROPERTIES, LLC By:_____________________________ Its:_____________________________ 9 EXHIBIT A TO DEVELOPMENT AGREEMENT DESCRIPTION OF ALL PARCELS SUBJECT TO THIS AGREEMENT 10 EXHIBIT B TO DEVELOPMENT AGREEMENT PARCEL PURCHASE AGREEMENT This PARCEL PURCHASE AGREEMENT (this “Agreement”) is made on the ____ day of __________, 2020, by and between WEST URBAN PROPERTIES, LLC, a Michigan limited liability company of 3265 Walker Avenue, Suite D, Grand Rapids, Michigan, 49544 (“Purchaser”) and THE CITY OF MUSKEGON, a Michigan municipal corporation, of 933 Terrace Street, Muskegon, Michigan 49440 (“Seller”) as follows: BACKGROUND Purchaser and Seller entered into a Development Agreement which contemplates that Purchaser will purchase up to 100 separate parcels of land. The parcels are both located in the City of Muskegon, Muskegon County, Michigan, and are depicted on the attached Exhibit A. AGREEMENT NOW, THEREFORE, IN CONSIDERATION OF THE MUTUAL COVENANTS AND CONDITIONS SET FORTH HEREIN THE PARTIES AGREE AS FOLLOWS: 1. Phase Parcels. Seller agrees to sell and Purchaser agrees to Purchase the parcels, as depicted on the attached Exhibit A. The precise description of each project and any individual building sites within each property will be agreed to by the parties prior to closing, as contemplated by the Development Agreement. 2. Purchase Price. The Purchase Price shall be one dollar ($1.00) for each parcel. The Purchase Price shall be delivered at Closing in immediately available funds subject to the terms and conditions stated in this Agreement. The Purchaser’s obligations under this Agreement are not contingent upon financing. 3. Investigation Period; Right to Terminate. The “Investigation Period” shall expire ninety (90) days following the date this Parcel Purchase Agreement has been executed by both parties (the “Effective date”). During the Investigation Period, Purchaser shall have the right to have the Parcel inspected, surveyed, evaluated, analyzed, tested, appraised and/or assessed for any matter whatsoever, including but not limited to, market value; soil conditions; location of flood plains; presence of wetland and necessary mitigation, if any; storm water drainage systems; presence of environmental contamination; health and safety conditions; access to utilities; access to public roads; zoning; entitlement; compliance with laws, codes and ordinances and any other matter desired by Purchaser. Seller hereby grants Purchaser and Purchaser’s agents, employees, representatives, consultants, and contractors a nonexclusive license during the term of this Agreement, to enter and have access to the Parcel for purposes of having such investigations performed and the right to discuss the Parcel and the conditions related thereto with governmental authorities. During the Investigation Period, and any extensions thereof, Purchaser has sole discretion to terminate this Agreement. All investigations, testing, and inspections by Purchaser shall be at Purchaser’s sole cost and expense. Any permits or permitting requested or required by Purchaser shall be at Purchaser’s sole cost and expense, and at Purchaser’s sole risk. Purchaser may extend the Investigation Period for up to an additional ninety (90) days if Purchaser in good faith decides to do so based on information learned during the Investigation Period. The Parcels shall be returned to the condition of the Parcels as of the date of the Pilot Development Agreement. 4. Payment of Property Taxes. Purchaser shall have no obligation to pay any amount for Property taxes that may have been assessed through the date of closing. 5. Closing Deadline; Schedule. The parties agree to schedule closings at the earliest possible time following the latter end of the Investigation Period, or any extension thereof. 6. Seller’s Closing Deliveries. At the Closing, Seller shall deliver to the Purchaser, the following items, which shall be in a form and substance satisfactory to Purchaser: A. A Quit Claim Deed conveying to Purchaser Seller’s interest to the Parcel, executed and acknowledged by Seller in recordable form. The Quit Claim Deed shall include a covenant as to the use of the Parcels and the income and rental limitations provided in the Pilot Development Agreement; B. Such other documents, including a signed Closing Statement, as are necessary and appropriate for the consummation of this transaction by Seller. 7. Purchaser’s Closing Deliveries. At Closing, Purchaser shall deliver to Seller: a) approved building plans and permits for the Parcel; b) the Purchase Price; and c) such other documents, including a signed Closing Statement, as are necessary and appropriate for the consummation of this transaction by Purchaser. 8. Special Assessments. Seller and Buyer acknowledge that the Parcels are subject to Special Assessments as listed on Exhibit B. 9. Title. It is Purchaser’s obligation, at its expense, to order a commitment for an owner’s policy of title insurance for each Parcel from Transnation Title, 570 Seminole Road, Muskegon, Michigan (the “Title Policy”) within ten (10) days of the date of this Agreement. If Purchaser has any objections to matters disclosed in the title commitment, Purchaser has the right to terminate this Agreement without further obligation. 10. Representations and Warranties of Seller. Seller, which is limited to the personal knowledge of Frank Peterson, the City Manager, hereby represents and warrants to Purchaser that to the best of Seller’s knowledge, as of the date hereof and on the date of Closing, which representations and warranties shall survive Closing, but without additional investigation by Seller: 12 A. Seller has the right, power and authority to enter into this Agreement and to sell the Parcel in accordance with the terms hereof, and Seller has granted no option or right of first refusal to any other person or entity to purchase the Parcel and has not entered into any contract to sell the Parcel as of the date of the Agreement. The individuals signing this Agreement and all other documents executed or to be executed pursuant hereto on behalf of Seller are and shall be duly authorized to sign the same on Seller's behalf and to bind Seller thereto. B. Except as disclosed in the writing to Purchaser by Seller, Seller has not received any notice of, and has no knowledge within the past ten (10) years, of existing violations on the Parcel or any portion thereof of any zoning, building, fire, health, pollution, environmental protection, hazardous or toxic substance or waste disposal law or ordinance. C. At the Closing, there will be no parties in possession of the Parcels or entitled to possession thereof other than Seller. There will be no leases, agreements, options or other instruments or agreements in effect with respect to the Parcel. D. There are no existing or pending condemnations or sales in lieu thereof with respect to the Parcel, or any part thereof, nor have any such actions, suits, proceedings or claims been threatened or asserted. E. There are no delinquent assessments. Current assessments with obligations to make future assessment payments are disclosed on Exhibit B. F. There is no litigation, proceeding or investigation pending or, to Seller’s knowledge, threatened against or involving Seller or the Parcel, and Seller does not know or have reason to know of any grounds as to the sale of the Parcels for any such litigation, proceeding or investigation, which could have an adverse impact on Purchaser or Purchaser’s title to or use of the Parcel, either before or after Closing. No such warranty is made as to the proposed Rental Subsidy. G. Seller has not received any notice of assessment or proposed assessment in connection with the Parcel, except as disclosed in Exhibit B. H. Seller is not a “foreign person” as that term is defined in section 1445 of the Internal Revenue Code of 1986, as amended. I. Except as set forth in documents provided by Seller to Purchaser, the Parcels and Seller are in full compliance with all requirements of federal, state and local environmental, health or safety laws, regulations and administrative or judicial decrees, as amended (the “Environmental Laws”). J. With the exception of the documents available in the public domain and the documents provided by Seller to the Purchaser, there are no reports, studies, appraisals, engineering reports, agreements with governmental authorities, wetland studies or reports, flood plain studies or reports related to the Parcel of which Seller is aware within the last ten (10) years, or that are in Seller’s possession or control. 13 11. Representations and Warranties of Purchaser. Purchaser hereby represents and warrants to Seller, which representations and warranties shall survive Closing, that as of the date hereof, and on the date of Closing: A. Purchaser has the full power and authority to execute, deliver and perform this Agreement and all of Purchaser’s obligations under this Agreement; and B. The individuals signing this Agreement and all other documents executed or to be executed pursuant hereto on behalf of Purchaser are and shall be duly authorized to sign the same on Purchaser’s behalf and to bind Purchaser thereto. 12. Indemnification. Purchaser agrees to indemnify and hold Seller and its managers, members, and successors and assigns and their members, managers and representatives (the "Seller Group") harmless from and against any and all liabilities, claims, demands, and expenses, of any kind or nature, including but not limited to, all expenses related thereto, including, without limitation, court costs and attorney’s fees for matters (i) arising or accruing after the Closing and which are in any way related to Purchaser’s ownership, maintenance, or operation of the Parcel; and/or (ii) arising from or related to the inaccuracy or breach of any of Purchaser’s representations and warranties. It is expressly stipulated and agreed that the provisions of this Section shall survive the Closing. 13. Default and Remedies. A. Purchaser’s Default; Seller’s Remedy. If the Purchaser fails to close on the purchase of the Parcel, Seller may, as its sole and exclusive remedy, terminate this Agreement by giving an appropriate Notice of Default as provided below. If Purchaser agrees to close on some but not all of the Parcels, the obligations in the Pilot Development Agreement shall be reduced on a prorate basis. B. Seller’s Default; Purchaser’s Remedies. If the Seller fails to close on the purchase of the Parcel, Purchaser may, as its sole and exclusive remedy, terminate this Agreement by giving an appropriate Notice of Default as provided below. C. Notice of Default. In the event either party declares the other to be in default, such declaration shall be in writing, with an outline of the actions required to cure such default. The recipient of such notice of default shall have 15 days to cure the alleged default. 14. This Paragraph is intentionally left blank.15. Sale and Assignment of Agreement. Purchaser and City shall have the right to assign all of its rights and delegate all of its obligations under this Agreement to either an existing or a newly created entity, provided however, that no assignment shall operate as a release of that party without the written consent of the other, which consent may be withheld in such other party's sole discretion. 16. This Paragraph is intentionally left blank. 17. Miscellaneous. 14 A. TIME IS OF THE ESSENCE OF THIS AGREEMENT. B. This Agreement shall be governed by and construed under the laws of the State of Michigan. C. This Agreement supersedes all prior discussions and agreements between Seller and Purchaser with respect to the conveyance of the Parcel and all other matters contained herein and constitutes the sole and entire agreement between Seller and Purchaser with respect thereto. This Agreement may not be modified or amended unless such amendment is set forth in writing and signed by both Seller and Purchaser. D. All notices, payments, demands or requests required or permitted to be given pursuant to this Agreement shall be in writing and shall be deemed to have been properly given or served effective on the second (2nd) business day after being deposited in the United States mail, postpaid and registered or certified with return receipt requested; or when sent by private courier service for same-day delivery or one day after being sent by private courier service for next-day delivery. Notices shall be sent via e-mail and also to the respective addresses set forth below: To Seller: THE CITY OF MUSKEGON Attn: City Manager 933 Terrace St. Muskegon, MI 49440 With copy to: Parmenter Law P.O. Box 786 Muskegon, MI 49443-0786 To Purchaser: WEST URBAN PROPERTIES, LLC Attn: Dave Dusendang 3265 Walker Avenue, Suite D, Grand Rapids, Michigan, 49544 E. This Agreement shall inure to the benefit of and bind the parties hereto and their respective heirs, legal representatives, successors and permitted assigns. IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written. SELLER: THE CITY OF MUSKEGON 15 By: Its: PURCHASER: WEST URBAN PROPERTIES By: Dave Dusendang Its: 16 EXHIBIT A TO PURCHASE AGREEMENT DESCRIPTION OF ALL PARCELS SUBJECT TO THIS AGREEMENT 17 EXHIBIT B EXISTING SPECIAL ASSESSMENTS 18 EXHIBIT C MSHDA 4/1/2020 INCOME AND RENT LIMITS 19 04/01/2020 INCOME AND RENT LIMITS County: 61 Muskegon Effective Date: 4/1/2020 Income 1 Person 2 Person 3 Person 4 Person 5 Person 6 Person 7 Person 8 Person 20% 8,960 10,240 11,520 12,780 13,820 14,840 15,860 16,880 25% 11,200 12,800 14,400 15,975 17,275 18,550 19,825 21,100 30% 13,440 15,360 17,280 19,170 20,730 22,260 23,790 25,320 35% 15,680 17,920 20,160 22,365 24,185 25,970 27,755 29,540 40% 17,920 20,480 23,040 25,560 27,640 29,680 31,720 33,760 45% 20,160 23,040 25,920 28,755 31,095 33,390 35,685 37,980 50% 22,400 25,600 28,800 31,950 34,550 37,100 39,650 42,200 55% 24,640 28,160 31,680 35,145 38,005 40,810 43,615 46,420 60% 26,880 30,720 34,560 38,340 41,460 44,520 47,580 50,640 70% 31,360 35,840 40,320 44,730 48,370 51,940 55,510 59,080 80% 35,840 40,960 46,080 51,120 55,280 59,360 63,440 67,520 100% 44,800 51,200 57,600 63,900 69,100 74,200 79,300 84,400 120% 53,760 61,440 69,120 76,680 82,920 89,040 95,160 101,280 125% 56,000 64,000 72,000 79,875 86,375 92,750 99,125 105,500 140% 62,720 71,680 80,640 89,460 96,740 103,880 111,020 118,160 150% 67,200 76,800 86,400 95,850 103,650 111,300 118,950 126,600 Rent By Person 1 Person 2 Person 3 Person 4 Person 5 Person 6 Person 7 Person 8 Person 20% 224 256 288 319 345 371 396 422 25% 280 320 360 399 431 463 495 527 30% 336 384 432 479 518 556 594 633 35% 392 448 504 559 604 649 693 738 40% 448 512 576 639 691 742 793 844 45% 504 576 648 718 777 834 892 949 50% 560 640 720 798 863 927 991 1,055 55% 616 704 792 878 950 1,020 1,090 1,160 60% 672 768 864 958 1,036 1,113 1,189 1,266 80% 896 1,024 1,152 1,278 1,382 1,484 1,586 1,688 100% 1,120 1,280 1,440 1,597 1,727 1,855 1,982 2,110 120% 1,344 1,536 1,728 1,917 2,073 2,226 2,379 2,532 125% 1,400 1,600 1,800 1,996 2,159 2,318 2,478 2,637 140% 1,568 1,792 2,016 2,236 2,418 2,597 2,775 2,954 150% 1,680 1,920 2,160 2,396 2,591 2,782 2,973 3,165 Rent By Bedroom 0 Bedroom 1 Bedroom 2 Bedroom 3 Bedroom 4 Bedroom 5 Bedroom 20% 224 240 288 332 371 409 25% 280 300 360 415 463 511 30% 336 360 432 498 556 613 35% 392 420 504 581 649 716 40% 448 480 576 665 742 818 45% 504 540 648 748 834 920 50% 560 600 720 831 927 1,023 55% 616 660 792 914 1,020 1,125 60% 672 720 864 997 1,113 1,227 70% 784 840 1,008 1,163 1,298 1,432 80% 896 960 1,152 1,330 1,484 1,637 100% 1,120 1,200 1,440 1,662 1,855 2,046 120% 1,344 1,440 1,728 1,995 2,226 2,455 125% 1,400 1,500 1,800 2,078 2,318 2,557 140% 1,568 1,680 2,016 2,327 2,597 2,864 150% 1,680 1,800 2,160 2,493 2,782 3,069 Eligible Property Information Chart Address 1246 5 St th 1252 5th St 1245 5th St 1261 5th St 1342 6th St 1349 6th St (2 lots) 1352 6th St (2 lots) 1411 6th St 1387 7th St (2 lots) 395 Houston Ave (2 lots) 275 Mason Ave (2 lots) 346 Mason Ave (2 lots) 352 Mason Ave 219 Merrill Ave 271 Merrill Ave (2 lots) 388 Merrill Ave (2 lots) 235 Monroe Ave 239 Monroe Ave 240 Monroe Ave 250 Monroe Ave 254 Monroe Ave 398 Monroe Ave 1392 Park St 382 W Muskegon Ave 487 W Muskegon Ave 420 Washington Ave (2 lots) 459 Washington Ave (3 lots) 1782 5th St (2 lots) 318 W Larch Ave (2 lots) 324 W Larch Ave 1686 7th St (2 lots) 1660 7th (2 lots) 408 W Dale Ave 340 W Forest Ave 1639 5th St 1605 Sanford St (2 lots) 487 W Southern Ave (2 lots) 305 W Grand Ave 1535 6th St 1542 7th St 355 W Grand Ave 337 W Grand Ave 1458 6th St 1464 6th St 0 Washington Ave 242 Strong Ave 1360 7th St 1366 7th St 1262 6th St 579 W Muskegon Ave 0 W Muskegon Ave 617 W Muskegon Ave 1047 Ambrosia St (7 lots) 1075 Ambrosia St(6 lots) 1155 Ambrosia St(6 lots) 1205 Ambrosia St(6 lots) 1386 Ransom St 1530 Hoyt St 292 Mason Ave 254 W Southern Ave 1670 Park St 1772 5th St 1227 Fleming Ave 553 Jackson Ave (3 lots) 579 Jackson Ave 601 Jackson Ave 621 Jackson Ave 558 Jackson Ave (2 lots) 608 Jackson Ave 445 Marquette Ave 527 Herrick St 530 Herrick St 270 Meeking St 329 Leonard Ave 366 Bennett St. Agenda Item Review Form Muskegon City Commission Commission Meeting Date: July 28, 2020 Title: Amendment to the Temporary Uses Ordinance Submitted By: Mike Franzak Department: Planning Brief Summary: Staff initiated request to amend section 2324 of the zoning ordinance to allow mobile food vending as a temporary use. Detailed Summary: The Planning Commission unanimously voted in favor of the ordinance amendment. Amount Requested: Amount Budgeted: Fund(s) or Account(s): Fund(s) or Account(s): Recommended Motion: Check if the following Departments need to approve the item first: Police Dept. Fire Dept. IT Dept. For City Clerk Use Only: Commission Action CITY OF MUSKEGON MUSKEGON COUNTY, MICHIGAN ORDINANCE NO._____ An ordinance to amend Section 2324 of the Zoning Ordinance to allow mobile food vending as a temporary use permitted. THE CITY COMMISSION OF THE CITY OF MUSKEGON HEREBY ORDAINS: NEW LANGUAGE (additions in bold) SECTION 2324: TEMPORARY BUILDINGS, STRUCTURES AND USES I. Mobile Food Vending: Mobile food vending options permitted by City Ordinance Sec. 50-301 thru 50- 304 may be temporarily located in B-2, B-4, LR, WM, I-1, I-2 districts and all Form Based Code context areas except Urban Residential and Lakeside Residential; under the following conditions: (1) Food trucks and trailers must be placed at least ten feet away from any principal structure and at least five feet from any lot line. They may be placed on grass, pavement or in the parking lot, but may not impede proper vehicular flow on the site. (2) Trash receptacles must be located on site. (3) Permits for mobile food vending between 1 and 89 days will be reviewed administratively. (4) Permits for mobile food vending between 90 days and one year will require the notification of all properties within 300 feet. If no concerns are received within 15 days, the permit application will be reviewed administratively. If there are concerns, a public hearing at the Planning Commission will be required. Administrative and Planning Commission reviews must use the following review standards: i. Will the use contribute to the vitality and experience of the business district? ii. Will the use support or detract from existing brick and mortar establishments? iii. Is there an appropriate separation distance between temporary and permanent uses so as to not impair the long-term viability of nearby businesses? iv. Will the use add variety to the types of food or beverage offerings in the district or compete with area businesses in close proximity? v. Will the proposed mobile food vendor contribute to the general aesthetic of the business district and include high quality materials and finishes? This ordinance adopted: Ayes:______________________________________________________________ Nayes:_____________________________________________________________ Adoption Date: Effective Date: First Reading: Second Reading: CITY OF MUSKEGON By: _________________________________ Ann Meisch, MMC, City Clerk CERTIFICATE The undersigned, being the duly qualified clerk of the City of Muskegon, Muskegon County, Michigan, does hereby certify that the foregoing is a true and complete copy of an ordinance adopted by the City Commission of the City of Muskegon, at a regular meeting of the City Commission on the 28th day of July 2020, at which meeting a quorum was present and remained throughout, and that the original of said ordinance is on file in the records of the City of Muskegon. I further certify that the meeting was conducted and public notice was given pursuant to and in full compliance with the Michigan Zoning Enabling Act, Public Acts of Michigan No. 33 of 2006, and that minutes were kept and will be or have been made available as required thereby. DATED: ___________________, 2020. __________________________________________ Ann Meisch, MMC Clerk, City of Muskegon Publish: Notice of Adoption to be published once within ten (10) days of final adoption. CITY OF MUSKEGON NOTICE OF ADOPTION Please take notice that on July 28, 2020, the City Commission of the City of Muskegon adopted an ordinance to amend Section 2321 of the Zoning Ordinance to the Form Based Code Section of the Zoning Ordinance to allow mobile food vending as a temporary use permitted. Copies of the ordinance may be viewed and purchased at reasonable cost at the Office of the City Clerk in the City Hall, 933 Terrace Street, Muskegon, Michigan, during regular business hours. This ordinance amendment is effective ten days from the date of this publication. Published ____________________, 2020. CITY OF MUSKEGON By _________________________________ Ann Meisch, MMC City Clerk --------------------------------------------------------------------------------------------------------------------- PUBLISH ONCE WITHIN TEN (10) DAYS OF FINAL PASSAGE. Account No. 101-80400-5354 Planning Commission Excerpt: Hearing, Case 2020-12: Staff initiated request to amend section 2324 of the zoning ordinance to allow mobile food vending as a temporary use. SUMMARY 1. Please see Section 2324 of the zoning ordinance (enclosed). This section allows for temporary buildings, structures and uses. 2. Mobile food vending is allowed by Sec. 50-301 thru 50-304 of the City Ordinances (enclosed). However, it was initially developed to allow food vendors in the City right- of-way. Since its inception, it has mainly been utilized by vendors on private property. They City Commission has asked the Planning Commission to develop an ordinance that dictates where they may locate, their placement on site and how long they may be permitted. Proposed Addition to Section 2324. I. Mobile Food Vending: Mobile food vending options permitted by City Ordinance Sec. 50-301 thru 50-304 may be temporarily located in B-2, B-4, LR, WM, I-1, I-2 districts and all Form Based Code context areas except Urban Residential and Lakeside Residential; under the following conditions: (1) Food trucks and trailers must be placed at least ten feet away from any principal structure and at least five feet from any lot line. They may be placed on grass, pavement or in the parking lot, but may not impede proper vehicular flow on the site. (2) Trash receptacles must be located on site. (3) Permits for mobile food vending between 1 and 89 days will be reviewed administratively. (4) Permits for mobile food vending between 90 days and one year will require the notification of all properties within 300 feet. If no concerns are received within 15 days, the permit application will be reviewed administratively. If there are concerns, a public hearing at the Planning Commission will be required. Administrative and Planning Commission reviews must use the following review standards: i. Will the use contribute to the vitality and experience of the business district? ii. Will the use support or detract from existing brick and mortar establishments? iii. Is there an appropriate separation distance between temporary and permanent uses so as to not impair the long-term viability of nearby businesses? iv. Will the use add variety to the types of food or beverage offerings in the district or compete with area businesses in close proximity? v. Will the proposed mobile food vendor contribute to the general aesthetic of the business district and include high quality materials and finishes? Agenda Item Review Form Muskegon City Commission Commission Meeting Date: 7/28/2020 Title: Mobile Food Vending Ordinance Updates Submitted By: Ann Meisch Department: City Clerk Brief Summary: Interest in operating food trucks in the City has increased since the initial passage of the Mobile Food Vending Ordinance in 2014. Based on community and Commission feedback, staff has identified some language updates to more effectively regulate mobile food vendors and areas they operate. Detailed Summary: The City Commission held work sessions to update the mobile food vending ordinance on February 10 and March 9. Based on the feedback received from the community and Commission, the following changes are before you for recommended approval: Regulatory Ordinance Changes to Chapter 50 include requiring proof of permission to be on private property, compliance with fire safety, code, and all other legal requirements (including health department inspections and licenses), and display of city license. The updates also include a change to allow temporary approval by the City Clerk to allow overnight parking on public property or streets and a clarification that a mobile food vendor cannot operate on public or private property within 1,000 of an event or the Farmers Market during market hours. As requested, a map showing this distance is attached. The required distance from brick and mortars is increased to 100 ft as measured from the service window to the lot line. A formal complaint, revocation, and appeals process was also added. A red lined copy of all these changes is attached. Public Areas and Streets Allowing mobile food vending on private property in B-2, B-4, LR, WM, I-1, I-2, MC and all Form Based Code context areas except Urban Residential and Lakeside Residential was added and addressed through the amendment to the temporary uses in the Zoning Ordinance. A resolution allowing mobile food vendors on public property and streets in the same areas is attached along with rescinding the previously identified areas. Amount Requested: None Amount Budgeted: Fund(s) or Account(s): Fund(s) or Account(s): Recommended Motion: Motion to amend and adopt Chapter 50, Article VIII Sections 50-303 through 50-305 and approve the resolution for mobile food vending in public areas. Check if the following Departments need to approve the item first: Police Dept. Fire Dept. IT Dept. For City Clerk Use Only: Commission Action: City of Muskegon Resolution Mobile Food Vending in Public Areas 2020- WHEREAS; Chapter 50-304(a) of the Mobile Food Vending Ordinance states the City Commission shall by resolution identify streets and public areas where parking by mobile food vehicles/trailers/stands is permitted; WHEREAS; the City Commission previously resolved that applications for mobile food vending will be considered in the following areas: Sherman Blvd, Henry St, Apple Avenue, Laketon Avenue, Getty Street, Lakeside Business District, commercial properties in the 1600 block of Glade as well as areas in the downtown area as defined by the DDA map, business district, and industrial parks. NOW THEREFORE BE IT RESOLVED, the previously approved areas for mobile food vending is hereby rescinded. BE IT FURTHER RESOLVED, mobile food vending is now permitted on the streets and public areas of the following districts: B-2, B-4, LR, WM, I-1, I-2, MC and all Form Based Code context areas except Urban Residential and Lakeside Residential. Adopted this 28th day of July 2020. _____________________________________ Ann Meisch City Clerk
Sign up for City of Muskegon Emails