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CITY OF MUSKEGON
CITY COMMISSION MEETING
SEPTEMBER 22, 2020 @ 5:30 P.M.
MUSKEGON CITY COMMISSION CHAMBERS
933 TERRACE STREET, MUSKEGON, MI 49440
AGENDA
□ CALL TO ORDER:
□ ROLL CALL:
□ HONORS, AWARDS, AND PRESENTATIONS:
□ PUBLIC COMMENT ON AGENDA ITEMS:
□ CONSENT AGENDA:
A. Approval of Minutes City Clerk
B. MERS Representatives Finance
C. Alum Rapid Mixer Public Works – Filtration
D. Muskegon Fire Department Boat Motor Replacement Public Safety
E. Muskegon Fire Department Engine Purchase Public Safety
F. Amendment to the Zoning Ordinance Planning
G. Amendment to the Zoning Ordinance – Marihuana Overlay District
Planning – SECOND READING
H. 1601 Beach Lease Amendment Development Services
I. Lakeside BID Special Assessment Recommendation Economic
Development
J. Lakeside Corridor Improvement Authority Economic Development
K. Jackson Fill Infill Housing Development Economic Development
L. 2189 Larue Lot Sale City Manager
M. Lakeview Lofts Phase II Bridge Loan Economic Development
N. Social District Permit Recommendation Economic Development
□ PUBLIC HEARINGS:
Page 1 of 2
□ UNFINISHED BUSINESS:
A. Sale of Vacant Lot – 1867 Hoyt Planning
□ NEW BUSINESS:
A. Jackson Hill, McLaughlin & Angell Rezonings Planning
□ ANY OTHER BUSINESS:
□ PUBLIC COMMENT ON NON-AGENDA ITEMS:
► Reminder: Individuals who would like to address the City Commission shall do the following:
► Fill out a request to speak form attached to the agenda or located in the back of the room.
► Submit the form to the City Clerk.
► Be recognized by the Chair.
► Step forward to the microphone.
► State name and address.
► Limit of 3 minutes to address the Commission.
► (Speaker representing a group may be allowed 10 minutes if previously registered with City Clerk.)
□ CLOSED SESSION:
□ ADJOURNMENT:
ADA POLICY: THE CITY OF MUSKEGON WILL PROVIDE NECESSARY AUXILIARY AIDS AND SERVICES TO INDIVIDUALS
WHO WANT TO ATTEND THE MEETING UPON TWENTY-FOUR HOUR NOTICE TO THE CITY OF MUSKEGON. PLEASE
CONTACT ANN MARIE MEISCH, CITY CLERK, 933 TERRACE STREET, MUSKEGON, MI 49440 OR BY CALLING (231) 724-
6705 OR TTY/TDD DIAL 7-1-1-22 TO REQUEST A REPRESENTATIVE TO DIAL (231) 724-6705.
Page 2 of 2
Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: September 22, 2020 Title: Approval of Minutes
Submitted By: Ann Marie Meisch, MMC Department: City Clerk
Brief Summary: To approve the minutes of the August 31, 2020 Special Worksession meeting and
the September 8, 2020 Regular City Commission meeting.
Detailed Summary: N/A
Amount Requested: N/A Amount Budgeted: N/A
Fund(s) or Account(s): N/A Fund(s) or Account(s): N/A
Recommended Motion: To approve the minutes.
For City Clerk Use Only:
Commission Action:
CITY OF MUSKEGON
CITY COMMISSION WORKSESSION
Monday, August 31, 2020
5:30 pm
City Commission Chambers
MINUTES
2020-59
Present: Mayor Gawron, Vice Mayor Hood, Commissioners Rinsema-Sybenga, Emory,
Johnson, Ramsey, and German.
Absent: None.
E25 Emergency Repairs
Emergency repairs needed for Fire Engine 25, located at Station 5 on Marquette. Engine 25 is
the second newest engine for the City of Muskegon Fire Department. Our reserve apparatus is
also in for repairs and we are currently using an engine from Egleston Township Fire Dept. to
cover station 5.
Motion by Commission Johnson, seconded by Vice Mayor Hood, to approve the
spending up to $31,229.10 to repair Fire Engine 25.
Ayes: Commissioners Emory, Johnson, Gawron, Hood, Ramsey, German, & Rinsema-
Sybenga.
Nays: None.
MOTION PASSES
CARES Act - CDBG COVID19 Funding
The Community & Neighborhood Services Department is submitting for review the described
allocations of $585,235 for CARES Act – CDBG COVID 19 funding to receive comments from
the City Commission.
Commissioner Ramsey - What about offering grants to small businesses? Can we give more
assistance to people to pay water bills that are unable to?
LeighAnn Mikesell, indicated the parks department was trying to put a splash pad down on the
east side of the city in Reese Park.
She indicated Sheldon Park has had a large uptick in usage and could use upgrades from
COVID Funds.
Also, Buikema Field - we are hoping to have non-COVID funds to provide handicap accessibility
to the playground equipment.
As well as AAMODT Park - Would like to use non-COVID funds to provide necessary upgrades.
Commissioner Johnson - Would like to see more funding to water bills and small business
grants.
Vice Mayor Hood - Improvements to the parks on the east side of town are overdue.
Commissioner Rinsema-Sybenga - We should take everyone’s input. One way to look at it is to
review what we have been talking about spending money on for the past year. Agrees with Vice
Mayor Hood, these parks are in need of repair. CDC will have the opportunity to speak to it.
Let’s take all the input and determine it after.
Commissioner Ramsey - would like to see the park upgrade allocation lowered and spread over
other funds.
Commissioner Rinsema-Sybenga - What is the process? Oneata - with COVID we are
experiencing expenses.
Oneata Bailey, CARES Act money is to be spent. We are getting input from CDC,
Commissioners, and the Public. It’s emergent, it’s to get the funds out as quickly as possible.
Commissioner Emory - What is the grant? Is it just for parks?
Leo - it is with the company that we purchased equipment at Pere Marquette. They are offering
½ off the equipment at the next park.
Commissioner Johnson - Would like to hear more about the splash pad.
Commissioner German - Getting feedback is very crucial. We would be remiss not to include
feedback from the public.
Jackson Hill Infill Housing Development - Economic Equity Presentation
The zoning in McLaughlin, Angell, and Jackson Hill doesn’t match reality.
While the zoning ordinance indicates only single-family homes are allowed, that is not the
reality. This makes all non-single-family homes as non-conforming. Non-conforming homes are
susceptible to finance, insurance, and rebuilding issues along with unusable spaces.
Staff is proposing to rezone the neighborhood to allow the types of homes that already exist.
More housing options equal more affordable housing.
Many examples were given of current non-conforming multi-family homes. Examples were given
of homes that were done and several examples were given of multi-family homes that were not
done well and provide no parking, placed on too small of a lot, do not have an alley for access,
etc.
Jackson Hill Infill Housing Development/Economic Equity Presentation
Now that the necessary lots have been added to the Brownfield Redevelopment Plan, local
developer/contractors Rudy and Greg Briggs are interested in utilizing a Brownfield TIF to
construct single family homes for the city in order to increase value and stabilize the primarily
residential Jackson Hill neighborhood.
Since mid-2019, Economic Development Department staff have been working with Rudy and
Greg Briggs on potentially utilizing our Brownfield TIF Program to develop and market single
family homes in the Jackson Hill Neighborhood. Most importantly, the focus of this program has
been to identify, empower, and retain developers of color to benefit from some of the same
incentive programs we have been utilizing to great effect. Rudy and Greg Briggs are in
attendance (via Zoom) to update the Commission on the program, talk about the type of
housing being proposed and where for the upcoming phase as well as our ambition for what this
development can look like moving forward.
Public comments were received.
The worksession meeting adjourned at 7:11 p.m.
Respectfully Submitted,
Ann Marie Meisch, MMC – City Clerk
CITY OF MUSKEGON
CITY COMMISSION MEETING
SEPTEMBER 8, 2020 @ 5:30 P.M.
MUSKEGON CITY COMMISSION CHAMBERS
REMOTE MEETING
933 TERRACE STREET, MUSKEGON, MI 49440
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, September, 2020.
ROLL CALL FOR THE REGULAR COMMISSION MEETING:
Present: Mayor Stephen J. Gawron, Vice Mayor Eric Hood, Commissioners
Ken Johnson (arrived at 5:34 p.m.), Dan Rinsema-Sybenga, Willie German, Jr.,
Michael Ramsey, and Teresa Emory, City Manager Frank Peterson, City Attorney
John Schrier, and City Clerk Ann Meisch.
2020-61 HONORS, AWARDS, AND PRESENTATIONS:
A. Big Red Development Proposal - Presentation Development Services
Staff is present a development proposal to construct single and multi-family
housing for rent and purchase in three urban core neighborhoods. A subsequent
proposal will include a mixed-use development at Angell School.
The initial proposal includes the sale of 55 lots scattered throughout the Angell,
Jackson Hill, and McLaughlin neighborhoods with the goal of increasing to at
least 100 lots. Homes will be offered for rent or for sale, depending on what the
market will bear and will be priced for working class singles and families in the
80-120% area medial income level. Some properties will include new
construction while others will include renovation of existing structures. The
developers are interested in partnering with the local business community to
manage and service the properties.
The developers are requesting that each property be sold for $1 and that water
and sewer connection fees be covered by the city. To protect their investment,
the developers are also requesting first right of refusal on additional lots and
homes that the city acquires within ½ mile of their current investments.
Page 1 of 14
PUBLIC COMMENT ON AGENDA ITEMS: Public comments were received.
2020-62 CONSENT AGENDA:
A. Approval of Minutes City Clerk
SUMMARY OF REQUEST: To approve the minutes of the August 25, 2020 regular
City Commission meeting.
STAFF RECOMMENDATION: To approve the minutes.
B. Community Relations Committee Recommendations City Clerk
SUMMARY OF REQUEST: To accept the appointment of Sherri Black to the
Downtown Development Authority as a Citizen.
STAFF RECOMMENDATION: To concur with the recommendation of the
Community Relations Committee and approve the appointment.
C. Purchase Agreement 580 Catherine Ave City Manager
SUMMARY OF REQUEST: City staff is seeking authorization to enter into the
attached purchase agreement.
580 Catherine was donated to the city from the family of a deceased resident.
Our team rehabbed the home as part of our commitment to create affordable
quality home ownership opportunities in the city’s neighborhoods. All cost
associated with closing the estate and rehabbing the home totaled $95,000. The
sale price is $100,000, with the city contributing $4,000 toward closing costs. The
gam that exists will be recouped as part of the scattered site brownfield housing
program. The gap for this home is our smallest yet – less that 7% - while the sale
price is also the lowest yet.
STAFF RECOMMENDATION: Authorize the City Manager to sign the purchase
agreement and complete the sale.
D. Purchase Agreement 271 Merrill Ave City Manager
SUMMARY OF REQUEST: City staff is seeking authorization to sell the city-owned
home at 271 Merrill to Paul Reichle.
The city constructed this house as part of the phase two of our infill housing
program. Our contract to construct the home was $197,464. We also
anticipated $11,844 in sales commissions. The accepted purchase price is
$188,000. The City will also construct a wooden stockade fence in the rear of the
home at a cost of approximately $5,000. The total amount requiring brownfield
gap financing will be approximately $14,500. The 7.3% gap is larger than the
3.5% gap from the sale of 395 Houston, but still significantly smaller than the gap
anticipated in the Brownfield Plan, and also significantly smaller than the gap in
the initial phase of the in-fill project (Midtown Square).
STAFF RECOMMENDATION: Authorize the City Manager to complete the sale
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of 271 Merrill Avenue, as described in the purchase agreement.
E. Reeths Puffer Hockey Lease City Manager
SUMMARY OF REQUEST: Staff is seeking approval to amend the shared use
agreement with Reeths Puffer’s varsity hockey team as presented.
The agreement extends the relationship with RP Hockey through the 2024-25
season and cleans up some items from the original lease. The lease rate will be
paid in two payments, totaling $26,000 in year 1, and rising slightly in subsequent
years.
STAFF RECOMMENDATION: Approve the change order.
G. Arena Rent Reduction City Manager
SUMMARY OF REQUEST: Staff is seeking approval to eliminate 5 months of rent
for all arena lease holders, with the exception of Rad Dad’s.
Indoor sporting events have yet to officially resume in the State of Michigan. We
are in a position to make concessions for teams’ upcoming seasons, but we still
do need commission action to properly deal with accrued but unpaid rent. Staff
is looking for blanket approval to eliminate any rental obligations for its major
sports teams (Risers, Ironmen, and Lumberjacks) for 5 months retroactively. This
should put all three teams in a position to compete under modified agreements
during the 2020-21 season. Note that there is no amount requested below, as
much of this has been accounted for in the original budget projections.
STAFF RECOMMENDATION: Approve the change order.
H. Arena Social Distancing Investments City Manager
SUMMARY OF REQUEST: Staff is seeking approval to complete the social
distancing improvements at the Mercy Health Arena at a cost not to exceed
$25,000.
As part of the COVID-19 response at the arena, there is significant to provide
space for players – specifically youth players – to social distance while off the
ice. Typically, we have four general locker rooms available for players. Each
team would use one. This allow two teams to be on the ice together, and two
more to prepare for their game(s). The cycle continues throughout the
day/season. New distancing standards at the arena will require teams to spread
out into two locker rooms. The result would be that all 4 locker rooms would be
use by the two teams on the ice, and no locker rooms would be available for
the two teams playing afterward until the on-ice teams return to their locker
room, undress, vacate the room, and the arena staff cleans. We believe this will
cost the arena approximately 60 minutes of down time for every change over.
We collect on average $285 per hour of ice rental. The down time would cost
the arena 16-20 hours of ice rental each week. Over the course of a 30-week
season, this could cost us as much at $170,000. Staff is recommending that we
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spend some money expanding the rubber matting down the vacant tunnel into
the former storage area. The large storage area can accommodate two full
teams at one time. We have put together a simple budget for rubber mats at
$4,500 for supplies and $500 for installation. Also paint at $1,500 and erection of
a dividing wall at $2,500. There will also be a small amount of asbestos removal
estimated at $3,000, and we anticipate need for some benches or chairs at
$3,500 total. We will also have expenses for a storage container at $7,000. We
will undertake the project mostly internally, and only use outside contractors as
needing. We are asking for $22,500 plus $2,500 for contingencies.
AMOUNT REQUESTED: $25,000
AMOUNT BUDGETED: $0
FUND OR ACCOUNT: Arena Fund
STAFF RECOMMENDATION: Authorize the city manager to expend up to
$25,000 to meet social distancing needs at the arena, with the funds to be
drawn from GL Number 254-93015-5300.
I. Second Floor Window Coverings City Manager
SUMMARY OF REQUEST: As part of the renovation efforts, a number of window
seals will b replaced. Additionally, it was determined that a number of window
treatments need replacement. Staff is asking to replace window treatments on
52 windows in the remodeled area.
The windows are original to the 1960s construction. The window coverings are
original to the 1990s remodel. In an effort to improve functionality and energy
efficiency, staff is recommending that the 30+year old mini-blind system be
replaced with insulated light-filtering cellular blinds. The coverings for 52 windows
will cost approximately $4,100. We also received pricing from two other
competitors for similar products; $6,000 and $8,500.
AMOUNT REQUESTED: $4,100
AMOUNT BUDGETED: $0
STAFF RECOMMENDATION: Approve the purchase.
J. City Hall Lighting City Manger
SUMMARY OF REQUEST: Staff is seeking approval to complete the lighting
upgrade at city hall.
As part of the recent second floor renovation efforts, all of the light fixtures in the
renovated area were upgraded to LED. The workspace is visibly different, with
the new lighted areas far-better-lit than the older areas. Staff has spoken to the
electrician from the remodel, and they have quoted the same cost per fixture to
expand the project to the remaining areas of city hall. The cost is approximately
$150 per fixture. This includes the removal/disposal of old fixtures and the
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purchase/installation of the new fixtures, as well as miscellaneous costs
(permitting, egress lighting, etc.). The new lights will utilize 40 watts per fixture vs
the current 96 watts per fixture. Staff has estimated the ROI at 66 months. We are
requesting enough funding to complete the remaining fixtures on the second
floor, plus 5% contingency. 66 fixtures x $150 + $9,900 plus 5% contingency +
$10,395. We are seeking to move forward with this contractor as they were
already the low bidder on the remodel project and expect that they would
continue to be the low bidder on the change order
AMOUNT REQUESTED: $10,395
AMOUNT BUDGETED: $0
FUND OR ACCOUNT: General Fund
STAFF RECOMMENDATION: Authorize the city manager to expend up to
$10,395 with Newton Electric to replace existing light fixtures on the second floor
of city hall, with the funds to be drawn from General Fund GL Number 101-
60265-5300.
K. Muskegon Historic District Commission Certified Local Government
Application Planning
SUMMARY OF REQUEST: Staff is requesting to apply for participation in the
Michigan State Historic Preservations Office’s (SHPO) Certified Local
Government (CLG) program.
The CLG program is a preservation partnership between the City of Muskegon,
SHPO, and the National Park Service focused on promoting historic preservation
at the local level. Once certified as a CLG, the City will gain special access to
technical assistance and historic rehabilitation grant opportunities. There is no
application fee or membership dues for the program and the City is already
meeting most of the program’s requirements. The Historic District Commission
recommended approval of the request at their September 1, 2020 meeting.
STAFF RECOMMENDATION: To apply for the Michigan State Historic
Preservation Office’s Certified Local Government program and for the Mayor to
sign the application cover letter.
M. Jefferson & Strong Change Order #001 Public Works
SUMMARY OF REQUEST: Staff is seeking authorization to approve Change Order
#001 to the sewer project work on Jefferson and Strong Streets.
Staff requested pricing from the Contractor to complete additional work on the
project. The additional work included milling and resurfacing an additional
block of 3rd Street between Merrill and Mason. The resurfacing of this additional
block allowed for a continuous new pavement surface on 3rd/Strong from
Muskegon Avenue to Peck. Without the addition one block of 3rd Street would
have remained with old pavement upon completion of the project. The original
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project budgets carried a 6% contingency. This addition will utilize $49,192.20 of
the original contingency ($71,908.31). The project is nearing completion with
only minor changes anticipated that are not anticipated to exceed the
remaining budgeted contingency. As such, there will be no adjustment required
in the reforecasting related to this change order. Staff and the Project Engineer
(Prein & Newhof) have reviewed the change order and are supportive.
AMOUNT REQUESTED: $0 AMOUNT BUDGETED: $0
FUND OR ACCOUNT: 590/591-91856
STAFF RECOMMENDATION: Authorize staff to approve Change Order #001 to
the Jefferson-Strong Sewer Project with Jackson-Merkey Contractors in the
amount of $49,192.20.
N. DPW Laborer Position Public Works
SUMMARY OF REQUEST: Staff is seeking authorization to create three new full-
time positions within the Department of Public Works under the Laborer
classification and to begin the process to fill those position.
DPW has consistently experienced difficulty in filling the current full-time skilled
positions as they contain barriers to employment that do not offer a path for an
entry level applicant to hire in and learn the field. Most all of our positions require
a CDL, or state license upon hiring that can limit our pool of available applicants
and disqualify an otherwise good candidate from being eligible.
To try and address that issue staff has recently updated the Laborer position
description which eliminates many of the more difficult prerequisites to be
considered eligible for employment. Applicants will have the opportunity to
learn the DPW field, receive training, and become credentialed while employed
and eventually become eligible candidates for our harder to fill vacancies as
they become available. Laborers would be full time limited term employees
working within our current SEIU Unit 2 Contract. The position and pay scale
already exists within the union contract though it has not been utilized for some
time.
Staff is proposing to hire three (3) Laborers for DPW. Two (2) would have their
home account within the water fund (590) and one would have their home
account within the Major Streets Fund (202).
The new positions would be largely funded through the recently added Lead
Service Line fee that was approved for water bills. The fee anticipates revenue
of approximately $750K per year to be used towards replacement of lead
service lines within the city, with the goal to replace 200-300 per year. By adding
the additional staff, we anticipate being able to complete a larger number of
lead service replacements with in-house staff as opposed to contracting for the
work, while also creating a succession plan for our skilled positions at DPW.
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AMOUNT REQUESTED: Approximately $110,000 (20-21)
$17.67/hour x 2,080 hours x 1.35 (Markup) x 3 EA x 0.75
(Partial Year) = $111,639.06
(Will be ~ $150,000 in a full FY)
AMOUNT BUDGETED: $0 – To be added at future reforecast and will be offset
by reduction in 591 Capital line item for “Water Service
Replacement Unassigned”
FUND OR ACCOUNT: 591-60559 & 202-60440
STAFF RECOMMENDATION: Authorize staff to create three (3) full time limited
term Laborer positions within the Department of Public
Works and begin the process of filling the positions.
O. Lakeshore Trail Repairs Public Works
SUMMARY OF REQUEST: Authorize the award of SP 92012 Lakeshore Trail Repairs
including Alternate #001 to the low bidder, Jackson Merkey Contracting.
Staff solicited bids for repairs to the Lakeshore Trail bike path and shoreline
restoration and protections. The bike path was damaged due to high water
events and storms in the fall of 2019, between Lakeshore Court and Ruddiman
Creek.
Bids received are as follows:
• $233,853.000 – Jackson Merkey alternate #1 $10,860.00
• $261,844.00 – Accurate Excavators alternate #1 $12,000.00
• $289,783.00 – Wadel Stabilization alternate #1 $38,000.00
• $296,006.00 – Anlaan Corporation alternate #1 $30,400.00
• $325,280.00 – Hallack Contracting alternate #1 – no bid
The project would be construed in the Fall of 2020 and Spring of 2021 as
needed.
The project is still pending receipt of the necessary MDEGLE and USACE permits
which are still outstanding. Permits have been applied for and are in process. A
notice to proceed will not be issued and work cannot begin until the necessary
permits are obtained.
Also recommend the acceptance of Alternate #1 in the amount of $10,860.00
AMOUNT REQUESTED: $244,443.00
AMOUNT BUDGETED: $250,000
FUND OR ACCOUNT: 202-92012
STAFF RECOMMENDATION: Approve the award of the SP 92012 Lakeshore
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Trail Repairs including Alternate #001 to the low bidder, Jackson Merkey
Contracting.
P. Mausoleum Repairs Public Works
SUMMARY OF REQUEST: Authorize the award for the Mausoleum Wall
Restoration including Option #001 to the low bidder, Midwest Building
Maintenance.
Staff solicited bids for repairs to the mausoleum at Evergreen Cemetery. Work
includes repairs to spalled limestone, tuck pointing, window caulking, and
moisture barrier sealant on entire building. Option #001 includes repairs to the
limestone front steps.
Bids received are as follows:
• $29,508.00 – Midwest Building Maintenance Option #001 - $750.00
• $36,750.00 – Kent Companies Option #001 - $575.00
• $97,600.00 – Bornor Restoration Option #001 - $4,200.00
• $120,869.00 – RAM Services Option #001 - $4,300.00
The project would be constructed in the Fall of 2020.
Project will require adjustment in a future reforecast with funding being drawn
from the Cemetery Perpetual care Fund to cover the capital project costs.
AMOUNT REQUESTED: $30,258.00
AMOUNT BUDGETED: $0
FUND OR ACCOUNT: 101
STAFF RECOMMENDATION: Approve the award of the Mausoleum Wall
Restoration contract including Option #001 to the low bidder, Midwest Building
Maintenance in the amount of $30,258.00.
R. MERS Supplemental Contribution Finance
SUMMARY OF REQUEST: The MERS Defined Benefit amount that was expensed
each pay period based on the wages of current Defined Benefit employees
was over expensed for the fiscal year FY2019-20 by $89,670.86. Staff is requesting
authorization to make a supplemental payment to MERS for $89,670.86.
Each fiscal year based on our required annual contribution to MERS for our
Defined Benefit Group Finance calculates a percent of wages to be expensed
to MERS contribution for each employee division each pay. This year, as in
several years in the past, the amount expensed exceeded our required
contribution by $89,670.86.
The city can always contribute more than the minimum required contribution
and by doing so will earn additional investment income and may lower future
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contribution requirements. Staff is recommend making a supplemental payment
to MERS for $89,670.86.
AMOUNT BUDGETED: N/A expensed in FY 19-20
STAFF RECOMMENDATION: To authorize staff to make a supplemental
payment to MERS for $89,670.86.
T. Social District Permit Recommendations Economic Development
SUMMARY OF REQUEST: The City Commission must recommend approval of the
Michigan Liquor Control Commission permits of participating licensed
establishments in the Downtown Muskegon Social District.
With the establishment of the Downtown Muskegon Social District, participating
licensed establishments must receive a Social District permit from the Michigan
Liquor Control Commission. The MLCC must first receive a recommendation for
approval from the City Commission before granting the permits. You handled
the initial five such requests at your August 25, 2020 meeting. The attached
resolution includes Burl & Sprig, Nipote’s, and Rake Beer Project which are also
seeking a Social District permit from the state and seeking City Commission
recommended approval. The Social District plan identifies 22 potential
participating licensees within the district. Other licensed establishments may file
a Social District permit application in the future.
STAFF RECOMMENDATION: To approve the resolution recommending
Michigan Liquor Control Commission approval of Social District permits in the
Downtown Muskegon Social District and to direct the City Clerk to certify the
City Commission action with the MLCC.
Motion by Commissioner Johnson second by Commissioner Rinsema-Sybenga
to approve the consent agenda as presented, except item F, L, Q, and S.
ROLL VOTE: Ayes: Hood, Ramsey, German, Rinsema-Sybenga, Emory, Johnson,
and Gawron
Nays: None
MOTION PASSES
2020-63 REMOVED FROM CONSENT AGENDA:
F. Arena Marquee Change Order 1 City Manager
SUMMARY OF REQUEST: City Commission originally approve the marquee
replacement in conjunction with the failure of the LED Marquee. Staff is seeking
approval of change order #1 to add an additional $19,875.98 to the project
cost.
City Commission originally approve the marquee replacement in response to
the failure of the 20+ year old LED marquee. We received four bids and
accepted the lowest bid from Vizidef for $65,888. The next lowest bidder was
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Advanced Signs at $86,616. As we worked through the process, we decided to
adjust the marquee to also advertise the new convention center – this was done
to limit the number of signs on Shoreline Drive. Additionally, we learned that
there would be some structural changes of the site to accommodate the
new/heavier sign. The additional $19,875.98 will be shared with the convention
center project. The new total project cost of $85,763.98 is still lower than the
second lowest bidder’s original bid from the January 14, 2020 City Commission
meeting. Construction is taking place the week of Labor Day, and likely will be
underway by the time the Commission formally approves this request.
STAFF RECOMMENDATION: Approve the change order.
Motion by Commissioner Emory second by Commissioner Rinsema-Sybenga to
approve the change order.
ROLL VOTE: Ayes: Ramsey, Rinsema-Sybenga, Emory, Johnson, Gawron, and
Hood
Nays: German
MOTION PASSES
L. Edgewater Street Engineering Study Public Works
SUMMARY OF REQUEST: Staff is seeking authorization to hire Ramboll to
complete an engineering study related to Edgewater Street. The study would be
used to determine the best options moving forward as it relates to addressing
the persistent flooding that has plagued that area as a result of the high water
levels within the Great Lakes.
Staff solicited proposals from three firms to complete the work. Two responded
with proposals and after review of the proposals staff is recommending the
Ramboll proposal based on their previous work on shoreline restoration projects
in the area and the familiarity with the specific needs of this site. The Engineering
study was not included in the proposed 20-21 budget and will need to be
added via a future reforecast to the Local Streets Fund (203). Michigan
Transportation Fund (MTF) revenue projections have increased since the original
drafting of the 20-21 budget and this expense is expected to be offset by
increased revenue.
AMOUNT REQUESTED: $15,300
AMOUNT BUDGETED: $0
FUND OR ACCOUNT: 203
STAFF RECOMMENDATION: Authorize staff to hire Ramboll to complete an
engineering study related to the persistent flooding on Edgewater Street.
Motion by Commissioner Emory second by Commissioner Johnson to authorize
staff to hire Ramboll to complete and engineering study related to the persistent
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flooding on Edgewater Street.
ROLL VOTE: Ayes: German, Rinsema-Sybenga, Emory, Johnson, Gawron, Hood,
and Ramsey
Nays: None
MOTION PASSES
Q. Citizens Participation Plan (CPP) Amendment Community &
Neighborhood Services
SUMMARY OF REQUEST: The CARES Act (Coronavirus Aid, Relief, and Economic
Security Act) promotes the amendments to our CPP’s comment period. These
changes expedite procedures to provide reasonable notification and access for
citizen of no less than 5 days.
Changes are highlighted on the attachment.
STAFF RECOMMENDATION: To approve the amendments made to the CPP.
Motion by Commissioner Johnson second by Commissioner Rinsema-Sybenga
to authorize staff to hire Ramboll to complete and engineering study related to
the persistent flooding on Edgewater Street.
ROLL VOTE: Ayes: Johnson, Gawron, Hood, Ramsey, German, Rinsema-
Sybenga, Emory
Nays: None
MOTION PASSES
S. Resolution Authorizing Issuance of 2020 Capital Improvement Bonds
Finance
SUMMMARY OF REQUEST: To approve the Resolution Authorizing Issuance of
2020 Capital Improvement Bonds not to exceed $8,000,000.
The 2020 Capital Improvement Bonds are being issued for additions and
improvements to the Muskegon Central Dispatch 9-1-1 facility and fire station,
Hartshorn Marina including new docks, clubhouse and pool, Hartshorn Village
including water, sewer and road improvements, to acquire police department
body camera equipment and the refinancing of existing financing for a new
roof and heating, ventilation and cooling improvements to Mercy Health Arena
not to exceed $8,000,000.
Motion by Commissioner Johnson second by Commissioner Ramsey, to approve
the Resolution Authorizing Issuance of 2020 Capital Improvement Bonds not to
exceed $8,000,000.
ROLL VOTE: Ayes: Gawron, Hood, Ramsey, German, Rinsema-Sybenga, Emory,
and Johnson
Nays: None
Page 11 of 14
MOTION PASSES
2020-64 PUBLIC HEARINGS:
A. Business Improvement District (BID) Public Hearing Economic
Development
SUMMARY OF REQUEST: A public hearing has been scheduled to receive
comment on a proposed three-year renewal of the Downtown Muskegon
Business Improvement District special assessments through a resolution
establishing the district, rates and budget for 2021-2023.
The Muskegon City Commission has approved the Downtown Muskegon
Business Improvement District three times since 2016 to enhance the public
services in the central business district. The current three-year BID special
assessment expires December 31, 2020. The BID Board recommends a three-
year renewal of the BID with a reduced district footprint, the same special
assessment rates providing a reduced budget that would focus work on summer
landscaping and winter sidewalk snow removal. The proposed BID would
generate approximately $113,000 in special assessment revenues each year to
be collected on the winter tax bills. Class A properties, the commercial
properties involved in downtown activities and business, would be assessed
$0.08 per square foot of land with a cap of $4,000. Class B properties, those
zoned for industry and manufacturing, would be assessed $0.04 per square foot
of land with a cap of $2,000. Staff will track the number of objections and the
percentage of the assessment for the objecting properties. After hearing public
comment, the attached resolution would establish the district, rate, budget and
appoint two commissioners to the Board of Assessors. The special assessment roll
also is attached and would be subject to a second public hearing before the
Muskegon City Commission in October if the district is created.
STAFF RECOMMENDATION: To close the public hearing and approve the
resolution to create a Downtown Muskegon Business Improvement District,
special assessment rate and budget for 2021, 2022, and 2023, additionally
naming two commissioners to the Board of Assessors.
PUBLIC HEARING COMMENCED:
The following comments were received at the meeting via Zoom:
Diane Foster, 135 Ottawa – asked where BID (boundaries) is.
Motion by Vice Mayor Hood second by Commissioner Rinsema-Sybenga, to
close the public hearing and approve the resolution to create a Downtown
Muskegon Business Improvement District, special assessment rate and budget
for 2021, 2022, and 2023, additionally naming two commissioners to the Board of
Assessors.
ROLL VOTE: Ayes: Hood, Ramsey, German, Rinsema-Sybenga, Emory, Johnson,
Page 12 of 14
and Gawron
Nays: None
MOTION PASSES
2020-65 UNFINISHED BUSINESS:
A. Amendment to Zoning Ordinance – Marihuana Overlay District
Planning
SUMMARY OF REQUEST: Staff-initiated request to amend Section 2331 of the
zoning ordinance to include Districts 4 and 5, excluding 863 and 885 E. Apple.,
into the marihuana facilities overlay district.
Second reading that includes the approval of Districts 4 and 5, excluding 963
and 885 E. Apple, because of a typo on the first reading.
Staff will also be recommending a first hearing on expanding the district to
include the proper addresses of 863 and 885 E. Apple.
STAFF RECOMMENDATION: To approve the request to amend Section 2331
of the zoning ordinance to expand the marihuana facilities overlay district to
include districts 4 and 5 as presented, excluding 863 and 885 E. Apple.
Motion by Commissioner Johnson second by Commissioner Emory to amend
Section 2331 of the zoning ordinance to expand the marihuana facilities overlay
district to include 796 E. Apple for provisioning and retail uses, 981 S. Getty Street
for growing and processing uses, and 935 S. Getty Street for provisioning and
retail uses.
ROLL VOTE: Ayes: German, Rinsema-Sybenga, Johnson, Gawron, and Hood
Nays: Ramsey and Emory
MOTION PASSES
Motion by Commissioner Rinsema-Sybenga second by Vice Mayor Hood to
amend Section 2331 of the zoning ordinance to expand the marihuana facilities
overlay district to include 623 W. Clay for Microbusiness uses, 639 W. Clay for
Microbusiness uses, and 920 Washington for provisioning and retail uses – third
floor or higher.
ROLL VOTE: Ayes: German, Rinsema-Sybenga, Gawron, and Hood
Nays: Emory, Johnson, and Ramsey
MOTION PASSES
B. Amendment to Zoning Ordinance – Marihuana Overlay District
Planning
SUMMARY OF REQUEST: Staff initiated request to amend Section 2331 of the
zoning ordinance to include 863 and 885 E. Apple Avenue into the marihuana
Page 13 of 14
facilities overlay district.
First reading that includes adding 863 and 885 E. Apple into the marihuana
facilities overlay district. These addresses were left out of the second reading of
the first request because of a typo that listed them as being on Laketon Avenue
instead of Apple Avenue.
STAFF RECOMMENDATION: To approve the request to amend Section 2331
of the zoning ordinance to include 863 and 885 E. Apple Avenue into the
marihuana facilities overly district.
Motion by Commissioner Rinsema-Sybenga second by Commissioner German
to amend Section 2331 of the zoning ordinance to expand the marihuana
facilities overlay district to include 863 and 885 E Apple for provisioning, retail,
and microbusiness use.
ROLL VOTE: Ayes: Rinsema-Sybenga, Gawron, Hood, and German
Nays: Emory, Johnson, and Ramsey
MOTION PASSES
2020-66 ANY OTHER BUSINESS:
Mayor, Stephen J. Gawron, suggested a Legislative Meeting to further discuss
the Gift Card Program communication from the City Attorney. The Legislative
Policy meeting to be held September 23, 2020 at 5:30 p.m.
PUBLIC COMMENT ON NON-AGENDA ITEMS: Public comments were received.
Commissioner German left at 9:40 p.m.
ADJOURNMENT: The City Commission meeting adjourned 9:50 p.m.
Respectfully Submitted,
Ann Marie Meisch, MMC – City Clerk
Page 14 of 14
Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: 09/22/2020 Title: Alum Rapid Mixer
Submitted By: Sanjeev Mungarwadi Department: Public Works - Filtration
Brief Summary: Filtration plant is requesting approval to procure custom designed new rapid mixer
from Fusion Fluid Equipment to replace the current mixer.
Detailed Summary:
Filtration Plant had two rapid mixers from Texas based firm Mastrrr to feed alum and were prone to
frequent failure of bearings. Two years ago, we contacted Fusion Fluid, a local firm to provide a
custom designed solution with replaceable parts. The new mixer was procured and installed in
January 2019 and had been running well. Plant is requesting to procure one more custom
designed unit to replace the remaining Mastrrr mixer at a cost of $23,793. The funding will come
from budgeted item for Water Filtration Plant – WMRWA Eligible in the 20/21 Budget for $500,000.
Amount Requested: $23,793 Amount Budgeted: $500,000
Fund(s) or Account(s): 591 Fund(s) or Account(s): 591
Recommended Motion:
Authorize staff to procure mixer from Fusion Fluid Equipment at a cost of $23,793.
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: September 22, 2020 Title: MUFD Fire Engine Purchase
Submitted By: Jeffrey Lewis Department: Public Safety
Brief Summary: The Fire Department is currently in need of a second reserve engine. We are
requesting the approval of the purchase of a pre-owned 2001 Spartan/KME fire apparatus to
replace Reserve Engine 22. An inspection was completed and staff recommended the purchase
of this apparatus to enhance our capabilities at Fire to provide a dependable Reserve Engine when
a frontline engine is in need to repair. Inspecting Fire Staff advised this asking price was fair.
Please review attached picture and description from Deputy Director Paulson.
Detailed Summary:
Amount Requested: $35,000.00 Amount Budgeted:
Fund(s) or Account(s): 101-50336-5720 Fund(s) or Account(s):
Recommended Motion: Purchase approval for a used Fire Engine from Saginaw Township Fire
Department.
Check if the following Departments need to approve the item first:
Police Dept. ☐
Fire Dept. ☒
IT Dept. ☐
For City Clerk Use Only:
Commission Action:
Brief Summary: The fire department is requesting the purchase of a 2001 Spartan / KME fire apparatus for the Saginaw
Township Fire Department. This unit will replace our Engine 21, a 1994 Freightliner fire apparatus with 155, 135 miles
and 12,822 engine hours.
Detailed Summary: A comprehensive inspection of the Saginaw Township was conducted on September 15th. We found
the Saginaw Township fire apparatus to be in very good shape. The unit has low mileage at 25,288 miles and with 3,784
of engine hours. The unit is equipped with a 330 HP Detroit Diesel, Allison automatic transmission, 500 gallon water tank
with a 30 gallon foam tank and 1,250 gpm Waterous fire pump. The purchase would include a 35’ extension ladder, roof
ladder, attic ladder, “pike poles”, Setcom intercom with headset. The fire pump and ladders just received their annual
inspections and testing. The unit is set up very close to the current MFD fire units. Our inspection did reveal the unit
would need several issues resolved but these issues would not prohibit the unit from being placed into immediate
service. Noted issues: Miner power steering pump leak, coolant change, saddle bolt to be replaced on front spring, right
rear air spring has moderate corrosion, a seat belt has fraying and the tires have good tread but exceeded the DOT
(Department of Transportation) service life of 7 years.
Amount Requested: $35,000
Submitted by Deputy Director Jay Paulson on 9-16-2020 via email.
Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: September 22, Title: Amendment to the Zoning Ordinance
2020
Submitted By: Mike Franzak Department: Planning
Brief Summary: Staff-initiated request to amend the FBC, UR section of the zoning ordinance to restrict
three and four unit homes to parcels that have an alley or other recorded rear access easement for
vehicles.
Detailed Summary: To approve the request to amend the FBC, UR section of the zoning ordinance to
restrict three and four unit homes to parcels that have an alley or other recorded rear access easement
for vehicles.
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
Zoning Ordinance Excerpt:
Proposed Amendment in bold:
4 unit max by right, only when useable alley or rear access easement is present.
CITY OF MUSKEGON
MUSKEGON COUNTY, MICHIGAN
ORDINANCE NO._____
An ordinance to amend the Form Based Code Section of the Zoning Ordinance to restrict three and four unit
homes to parcels that have an alley or other recorded rear access easement for vehicles.
THE CITY COMMISSION OF THE CITY OF MUSKEGON HEREBY ORDAINS:
In the Form Based Code, Urban Residential context area; three and four unit homes are redistricted to parcels that have
an alley or other recorded rear access easement for vehicles.
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 22nd day of September 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 September 22, 2020, the City Commission of the City of Muskegon adopted an
ordinance to amend the Form Based Code Section of the Zoning Ordinance to restrict three and four unit
homes to parcels that have an alley or other recorded rear access easement for vehicles.
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
Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: 9/22/20 Title: Amendment to the Zoning Ordinance
Second Reading
Submitted By: Mike Franzak Department: Planning
Brief Summary:
Staff-initiated request to amend Section 2331 of the zoning ordinance to include 863 and 885 E Apple
Ave into the marihuana facilities overlay district.
Detailed Summary: Second reading to include 863 and 885 E Apple into the marihuana facilities
overlay district.
Amount Requested: Amount Budgeted:
Fund(s) or Account(s): Fund(s) or Account(s):
Recommended Motion: to amend Section 2331 of the zoning ordinance to expand the marihuana
facilities to include 863 E. Apple and 885 E. Apple Avenue for provisioning, retail and
microbusiness use.
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 the Marihuana Facilities Overlay District to include 863 and 885 E Apple Ave.
THE CITY COMMISSION OF THE CITY OF MUSKEGON HEREBY ORDAINS:
The following properties will be added to the Marihuana Facilities Overlay District – 863 E Apple Ave and 885 E Apple
Ave.
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 8th day of September 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 September 22, 2020, the City Commission of the City of Muskegon adopted
an ordinance to amend the zoning ordinance to include 863 and 885 E Apple Ave into the Marihuana
Facilities Overlay District.
Copies of the ordinance may be viewed and purchased at reasonable cost at the Office of the City
Clerk in the City Hall, 933 Terrace Street, Muskegon, Michigan, during regular business hours.
This ordinance amendment is effective ten days from the date of this publication.
Published ____________________, 2020. CITY OF MUSKEGON
By _________________________________
Ann Meisch, MMC
City Clerk
---------------------------------------------------------------------------------------------------------------------
PUBLISH ONCE WITHIN TEN (10) DAYS OF FINAL PASSAGE.
Account No. 101-80400-5354
Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: Sept 22, 2020 Title: 1601 Beach Lease Amendment
Submitted By: LeighAnn Mikesell Department: Development Services
Brief Summary: Staff is seeking direction on an amendment to the current lease with 1601 Beach
LLC to further extend the boundary of the land being leased for The Deck at Pere Marquette Park.
Detailed Summary: The owners of 1601 Beach LLC are planning an additional expansion to their
restaurant, The Deck. The expansion is south of the recent expansion toward the walkway to the
pier and will include relocating the stage to reduce noise impacts on the neighborhood, two
additional bars, a new snack bar, a gear shop, and revised concrete entrance at the south end of
the existing building. In order to proceed with the expansion, the lease agreement needs to be
modified to account for the additional land associated with the expansion.
Amount Requested: None Amount Budgeted: N/A
Fund(s) or Account(s): N/A Fund(s) or Account(s): N/A
Recommended Motion: to approve/deny the lease amendment with 1601 Beach LLC and
authorize the mayor and clerk to sign
Check if the following Departments need to approve the item first:
Police Dept.
Fire Dept.
IT Dept.
For City Clerk Use Only:
Commission Action:
SECOND AMENDMENT TO LEASE
This Second Amendment to Lease (“Amendment”) is entered into by and between City of
Muskegon ("City"), a Michigan municipal corporation, and 1601 Beach, LLC, a Michigan limited liability
company ("LLC").
RECITALS
A. The City, as ground lessor, and LLC, as ground lessee (referred to in the Lease as
“Harris”), are party to that certain Ground Lease dated December 10, 2013, as amended by that certain
First Amendment to Lease dated February 19, 2020 (together, the “Lease”), pursuant to which LLC
currently leases certain real property located in the City of Muskegon, County of Muskegon, Michigan, that
being all of the real property commonly referred to as 1601 Beach Street, Muskegon, Michigan (Parcel
No. 61-24-205-739-0001-20) and a portion of the real property commonly known as 1651 Beach Street,
Muskegon, Michigan (Parcel No. 61-24-205-734-0001-00) (together, the “Premises”). LLC owns the
buildings, physical improvements, equipment, fixtures, and trade fixtures located at the Premises, and
operates a restaurant business at the Premises commonly known as “The Deck”.
B. The City and LLC entered into the First Amendment to Lease pursuant to which LLC
made certain expansions to its restaurant operations and made additional physical improvements,
alterations, and additions to the Premises, the buildings and improvements thereon, and surrounding
property.
C. LLC now desires to further expand its restaurant operations and make changes and
additional physical improvements, alterations, and additions to the Premises, the buildings and
improvements thereon, and surrounding property, substantially in accordance with the plans attached to
this Amendment as Exhibit A (the “Second Expansion”).
D. In order to complete the proposed Second Expansion, LLC needs to lease from the City
additional land adjacent to and to the south of the Premises, that being an additional portion of the parcel
of real property commonly known as 1651 Beach Street, Muskegon, Michigan (Parcel No. 61-24-205-734-
0001-00). As a result of leasing such additional land, the total area leased from the City shall be that area
depicted on the attached Exhibit B and legally described on the attached Exhibit B-1 (the “Expanded
Premises”).
E. The City and LLC now wish to amend the Lease to expand the land leased to LLC to
include all of the Expanded Premises. Capitalized terms not defined herein shall have the meanings of
capitalized terms in the Lease.
AGREEMENT
NOW, THEREFORE, in consideration of mutual covenants and conditions contained herein and
for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged,
the City and LLC agree the Lease is amended as follows:
1. Expansion of Leased Premises. The Lease is hereby amended to provide that as of the
Effective Date of this Amendment, the Premises leased by the City to LLC pursuant to the Lease shall
instead be the Expanded Premises as depicted on Exhibit B hereto and described on Exhibit B-1 hereto.
All references to the “Premises” and the “leased premises” in the Lease and First Amendment to Lease
shall hereafter refer to the “Expanded Premises”, and Exhibit B and Exhibit B-1 to this Amendment shall
replace Exhibit A to the Lease (which was previously replaced by Exhibit B and Exhibit B-1 to the First
Amendment to Lease). There shall be no increase or other change to the rent charged to LLC under the
Lease.
1
2. Use of Expanded Premises. The Second Expansion proposed by LLC, including all
proposed alterations, structural changes, and additional structures and improvements to the Expanded
Premises and buildings thereon, is approved by the City, provided that LLC will comply with all laws, local
ordinances, and lawful police and health regulations applicable to the use of the Expanded Premises. All
additional and/or altered buildings, structures, and all fixtures, partitions, equipment, trade fixtures,
alterations, improvements, or changes installed or made or affixed to the underlying real estate by LLC or
at the direction of LLC shall be and remain owned by LLC, subject to the terms set forth in the last
paragraph of Section 7 of the Lease. The City will put LLC into possession of the Expanded Premises for
the full term of the Lease, together with any renewal options.
In addition to the use of the Expanded Premises, LLC will also continue to have the non-exclusive use of
the land between the above-described Expanded Premises and Beach Street, throughout which LLC shall
be permitted to make such landscaping alterations, improvements, and additions from time to time as it
reasonably desires, subject to any necessary City approval and/or any required permits.
3. Real Estate Taxes. Pursuant to Section 12 of the Lease, LLC is responsible for paying
all real estate taxes and assessments, both general and special, imposed by federal, state or local
governmental authority, or any other taxing authority having jurisdiction over the Premises, against the
land, buildings and all other improvements. LLC shall continue to be responsible for payment of all real
estate taxes and assessments imposed against the Expanded Premises; provided, however, LLC shall
only be responsible for payment of a pro rata portion of any real estate taxes and assessments imposed
against 1651 Beach Street (Parcel No. 61-24-205-734-0001-00) and the buildings and improvements
thereon, with such pro rata portion equal to the portion (in square feet) of 1651 Beach Street included in
the Expanded Premises and actually leased by LLC, divided by the total area (in square feet) of 1651
Beach Street, as reasonably determined by the parties.
4. Removal of Connecting Sidewalk; USACE Compliance. The parties acknowledge that
the proposed Second Expansion extends over and beyond a certain portion of sidewalk connecting the
sidewalk running between Beach Street and the Premises and the main sidewalk, walkway, and
revetment leading out to the south pier, as designated on Exhibit A as the “Connecting Sidewalk”. For
purposes of this Agreement, the main sidewalk, walkway, and revetment leading out to the south pier
shall be referred to as the “Remaining Walkway”. The Remaining Walkway is owned by the United States
Army Corps of Engineers (“USACE”) and therefore the areas immediately adjacent to the Remaining
Walkway are subject to certain restrictions to allow the USACE to reasonably maintain the Remaining
Walkway. The parties acknowledge and agree that in order to make the proposed alterations and
improvements pursuant to the Second Expansion, the Connecting Sidewalk will need to be removed.
LLC is hereby permitted to destroy and remove all of such Connecting Sidewalk located within the
Expanded Premises at LLC’s sole cost and expense, provided that LLC first obtain any necessary
approvals from the USACE prior to destroying and removing the Connecting Sidewalk. LLC also agrees
to obtain all necessary approvals from the USACE prior to making any of the proposed alterations and
improvements proposed in this Amendment. LLC will comply with all applicable laws, local ordinances,
and lawful police and health regulations in connection with its removal of the Connecting Sidewalk and
completing the proposed Second Expansion. LLC shall not be required to replace or reconstruct the
Connecting Sidewalk upon the expiration or termination of the Lease. The City will reasonably cooperate
with LLC in destroying and removing the Connecting Sidewalk from the Expanded Premises and
obtaining the necessary approvals to do so. In the event LLC is unable to obtain the approvals and
permissions to complete the proposed Second Expansion to LLC’s satisfaction, LLC may, by delivery of
notice to the City, revoke and terminate this Amendment, in which case the Lease, as modified by the
First Amendment to Lease, shall continue in full force and effect as if this Amendment was never
executed.
5. Full Force and Effect. This Amendment shall become effective as of the date on which
both parties have executed this Amendment as set forth below (“Effective Date”). Except as specifically
2
modified by this Amendment, the Lease is unmodified and shall continue in full force and effect. In the
event any terms of this Amendment conflict with the terms of this Lease or the First Amendment to Lease,
the terms of this Amendment shall control. Furthermore, this Amendment does not in any way modify,
amend, supersede, or limit that certain Option Agreement between LLC and the City dated February 19,
2020, and such Option Agreement remains in full force and effect.
6. Counterparts. This Amendment may be signed in one or more counterparts, each of
which shall be deemed to be an original, with the same effect as if the signatures on this Amendment and
each of the counterparts were on the same instrument. Electronic copies and signatures sent in PDF
format shall be treated as originals.
The parties hereto have duly executed this Amendment to be effective as of the Effective Date.
LESSOR: City of Muskegon LESSEE: 1601 Beach, LLC
_______________________________ ____________________________
Name: ________________________ Name: Fred Scharmer
Title:__________________________ Title: Manager
Date:__________________________ Date:_______________________
_______________________________
Name: ________________________
Title:__________________________
Date:__________________________
[Signature Page to Second Amendment to Lease]
3
Exhibit A
Proposed Second Expansion Plans
[See attached]
Exhibit B
Depiction of Expanded Premises
[See attached]
Exhibit B-1
Legal Description of Expanded Premises
Exhibit A
The following premises situated in the City of Muskegon, County of Muskegon, State of Michigan:
Land in the City of Muskegon, County of Muskegon, and the State of Michigan being part of Blocks 738 and
739, Revised City of Muskegon Plat of 1903, as recorded in Liber 3 of Plats Page 71, Muskegon County Records,
more particularly described as: Commencing at the Southwest corner of Lot 1, Block 758, plat of Central Land
Co’s Sub-Division, as recorded in Book 3 of Plats, Page 84, Muskegon County Records;
thence South 61 degrees 33 minutes 31 seconds West 474.79 feet;
thence North 41 degrees 08 minutes 36 seconds West 6.03 feet to the Place of Beginning;
thence continuing North 41 degrees 08 minutes 36 seconds West 354.00 feet;
thence South 46 degrees 42 minutes 37 seconds West 138.00 feet;
thence South 48 degrees 19 minutes 49 seconds East 307.59 feet;
thence 111.00 feet more or less at 4 feet North of the existing concrete pier sidewalk to the Place of Beginning.
Parcel No.: 61-24-205-739-0001-20
Part of Parcel No.: 61-24-205-734-0001-00
Commonly known as: 1601 Beach Street
Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: 9/22/2020 Title: Lakeside BID Special Assessment
Recommendation
Submitted By: Jake Eckholm Department: Economic Development
Brief Summary: The Lakeside BID Board has voted to petition the City Commission to establish a
Special Assessment District inclusive of all commercial parcels in the BID in order to raise funds
for public maintenance and improvements.
Detailed Summary:
The Lakeside Business Improvement District Board has recommended a special assessment
amount to fund BID improvements in the Lakeside Corridor for a period of 3 years, with potential to
renew the assessment at the end of the term depending on the amount of TIF capture by their
desired Corridor Improvement Authority. The attachments to this cover sheet reflect the costs per
square foot of every address in the bid, as well as a map outlining the BID district approved by the
Commission last year. The total anticipated capture of this assessment is $24,011.03, which will be
used by the BID Board to provide for winter maintenance of sidewalks, plowing, landscaping
maintenance, and marketing materials for the district. The attached Resolution of Intent to create
the special assessment district will start the process, and staff will complete all required
publications and postings prior to the proposed hearing date of October 27th during the regular
commission meeting.
Amount Requested: $0 Amount Budgeted: N/A
Fund(s) or Account(s): N/A Fund(s) or Account(s): N/A
Recommended Motion: To approve Resolution of Intent to Establish a Special Assessment District
in the Lakeside BID and schedule the required public hearing for October 27th during the Regular
Commission Meeting.
For City Clerk Use Only:
Commission Action:
LAKESIDE BUSINESS IMPROVEMENT DISTRICT
REGUALAR BOARD MEETING
SEPTEMBER 16TH, 2020
MINUTES
Board Members Present: R. Ghezzi, M. Floermon, K. Bearnsly, A. Serio, R, Jenkins, F. Peterson
Board Members Absent: M. Kordecki, T. Wasserman, B. Evans
Others Present: S. Carpenter, L. Hopson, M. Aney, J. Eckholm
Meeting called to order at 8:38am by Chair Peterson
Discussion on Agenda Item 1, “Updated BID Assessment Numbers”
Discussion on Agenda Item 2, “Final BID Assessment Recommendation”
Motion by Floermon, Second by Jenkins to petition the City Commission of the City of
Muskegon to establish a Special Assessment District for a period of three years as presented.
Ayes: Floermon, Peterson, Bearnsly, Serio, Jenkins
Nays: Ghezzi
Absent: Kordecki, Wasserman, Evans
MOTION PASSES
Discussion on Agenda Item 3 “Repairs and Improvements to Lakeshore Drive”
Motion by Floermon, Second by Bearnsly to adjourn.
Meeting adjourned by Chair Peterson at 9:42am.
Resolution _________
Intent to Establish a Special Assessment District as Petitioned by
The Lakeside Business Improvement District Board
Whereas; The Business Improvement District Board has met on September 16th, 2020 and voted
to petition the City Commission of the City of Muskegon to establish a Special Assessment
District to fund improvements in the BID, and;
Whereas; Michigan Public Act 120 of 1961 provides the ability of Business Improvement
Districts to manage funds from square footage based special assessments for eligible
improvements and programming in the district boundaries, and;
Whereas; The Lakeside BID has proposed an assessment within the statutory limits of Public
Act 120, totaling estimated revenues of $24,011.03 in the first year as enumerated in Exhibit A
of this document, and;
Whereas; The City has made substantial improvements to the streetscape, lighting, and
landscaping in the corridor that improves the aesthetic and accessibility of the business district
that will require significant ongoing maintenance, and;
Whereas; The Lakeside Business Improvement District Board intends to provide for sidewalk
snow removal, plowing, landscape and streetscape maintenance, and other programming in the
area;
Now, Therefore be it Resolved; that the City Commission of the City of Muskegon intends to
establish a Special Assessment District in the Lakeside Business District, and a public hearing
will be held on October 27th, 2020 at Regular Meeting of the City Commission.
Proposed …. DRAFT
Business/Owner Address Parcel # Acerage (sq. ft) Assessment
Wasserman's Flowers and Gifts 1595 61-24-205-529-0004-00 8402.724 $ 420.14
T4 Group 1700 61-24-205-609-0002-00 32500.116 $ 1,625.01
Garrett Law Offices 1732 61-24-205-609-0007-00 9239.076 $ 461.95
RCP Marketing 1756/1786 61-24-205-609-0010-00/61-24-205-609-0013-00 29233.116 $ 1,461.66
Richard A Ghezzi Estate 1812 61-24-205-596-0001-00 18251.64 $ 912.58
Frontier 1831 61-24-205-624-0001-00 12867.624 $ 321.69
Pastoor James R JR Trust 1836 61-24-205-596-0002-00 8089.092 $ 404.45
VF Ventures LLC 1845 61-24-205-624-0003-00 22111.056 $ 1,105.55
Patricia Roy, DO 1864 61-24-205-596-0002-10 12780.504 $ 639.03
Paul R Korndorfer 1883 61-24-205-625-0001-00 8311.248 $ 415.56
Paul R Korndorfer 1891 61-24-205-625-0002-00 7853.868 $ 392.69
SHM Great Lakes 1920 61-24-205-596-0008-00 1213002.252 $ 2,000.00
The Only Cannoli/ Lake Effect Sport/ 1927 61-24-205-627-0001-00 10227.888 $ 511.39
Lakeside Emporium 1930 61-24-205-596-0004-00 15555.276 $ 777.76
Richard P Ghezzi 1937 61-24-205-627-0002-00 9265.212 $ 463.26
Lauren Taylor Eyeware 1945 61-24-205-627-0003-00 5275.116 $ 263.76
1950 Lakeshore Drve LLC 1950 61-24-205-596-0004-20 12026.916 $ 601.35
Level 6 1953 61-24-205-627-0004-00 8280.756 $ 414.04
Lakeside Landing/ Lakeshore Tavern/The Table 1965 61-24-205-627-0005-00 8502.912 $ 425.15
Marine Tap Room 1983 61-24-205-635-0001-00 8154.432 $ 407.72
BTBG Investments LLC 1991 61-24-205-635-0002-00 46121.328 $ 2,000.00
Zaloma's Pizza/Anchor Property Management 2009 61-24-205-635-0006-00 6037.416 $ 301.87
Ghezzi's Market 2017 61-24-205-635-0007-00 8076.024 $ 403.80
Gawkowski Properties Lakeshore LLC 2020 61-24-205-596-0007-00 5654.088 $ 282.70
Apple Knits and Purls 2033 61-24-205-636-0001-00 7531.524 $ 376.58
Complete Automotive Servies 2034 61-24-205-597-0001-00 9487.368 $ 237.18
Auto Body Clinic 2054 61-24-205-597-0004-00 7614.288 $ 190.36
Cannon Service Center/ Shoreline Service Bait 2080 61-24-205-597-0005-00 15071.76 $ 376.79
Lakeshore Federal Credit Union 2182 61-24-205-597-0017-00 32569.812 $ 1,628.49
Daniel C. Swarwar D.D.S P.C 2187 61-24-205-641-0005-00 10807.236 $ 540.36
Lakeshore Environmental Inc. 2341 61-24-205-664-0011-00 7923.564 $ 396.18
Lotta Lakeshore 2445 61-24-205-677-0005-00 9474.3 $ 473.72
Waters Edge Fitness 2465 61-24-205-678-0001-02 16552.8 $ 827.64
Frosty Cove 2565 61-24-205-693-0001-01 39012.336 $ 1,950.62
TOTAL 1681864.668 $ 24,011.03
Lakeside BID assessment rates
Total # of Parcels 84
Commercial 32 5 cents a square foot/capped at $2,000
Automotive and Utility 4 2.5 cents a square foot/capped at $1,000
Nonprofit 2 no assessment
Governmental 8 no assessment
Residential 38 no assessment
Proposed Lakeside BID budget
Snow removal $12,000
Landscaping $4,500
Promotions/marketing $4,000
Administration $3,750
Contingency $683
Total $24,933.00
Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: 9/22/2020 Title: Lakeside Corridor Improvement
Authority
Submitted By: Jake Eckholm Department: Economic Development
Brief Summary: The Lakeside BID Board and the Lakeside District Association have requested
that the City allow the establishment of a Corridor Improvement Authority, pursuant to Public Act
57 of 2018.
Detailed Summary:
The Lakeside Business Improvement District Board has recommended a special assessment
amount to fund BID improvements in the Lakeside Corridor, but would like to establish a TIF
District to eventually replace the extra assessment on property owners in that corridor. This
compromise was originally discussed in 2019, prior to the approval and creation of the Lakeside
BID. The CIA would act similarly to the Downtown Development Authority, collecting TIF funds that
would be used to make improvements, maintain streetscaping and landscaping, and to promote
the business corridor. In your packet is a resolution of intent that begins the public hearing and
notice process to establish the CIA. Staff has also provided an information packet on Corridor
Improvement Authorities, their operations, and what they can statutorily use their funding to do.
The Resolution of Intent provided in the packet would begin the process and staff would complete
all required publications and postings prior to the hearing at the second regular meeting in
October.
Amount Requested: $0 Amount Budgeted: N/A
Fund(s) or Account(s): N/A Fund(s) or Account(s): N/A
Recommended Motion: To approve Resolution of Intent to Establish a Lakeside Corridor
Improvement Authority and schedule the required public hearing as presented.
For City Clerk Use Only:
Commission Action:
Resolution _________
Intent to Establish a Corridor Improvement Authority in the
Lakeside District and Schedule a Public Hearing to Receive
Comment
Whereas; The Lakeside District Association has been operating in support of business interests
in the Lakeside Neighborhood for many years, and;
Whereas; The State of Michigan allows for Corridor Improvement Authority formation,
pursuant to Public Act 57 of 2018, “Recodified Tax Increment Financing Act” in key business
corridors outside of traditional downtowns that:
- Are adjacent to or are within 500 feet of a road classified as an arterial or collector
according to the Federal Highway Administration manual "Highway Functional
Classification - Concepts, Criteria and Procedures"
- Contain at least 10 contiguous parcels or at least 5 contiguous acres
- More than 1/2 of the existing ground floor square footage in the development area is
classified as commercial real property under section 34c of the general property tax act,
1893 PA 206, MCL 211.34c
- Residential use, commercial use, or industrial use has been allowed and conducted under
the zoning ordinance or conducted in the entire development area, for the immediately
preceding 30 years
- Are presently served by municipal water or sewer
- Are zoned to allow for mixed use that includes high-density residential use, and;
Whereas; The proposed district boundaries as presented in Exhibit A comply with the required
provisions stated above, and;
Whereas; The City has made substantial improvements to the streetscape, lighting, and
landscaping in the corridor that improves the aesthetic and accessibility of the business district
that will require significant ongoing maintenance, and;
Whereas; The Lakeside Business Improvement District Board has requested the establishment
of a TIF district for the purposes of funding maintenance and marketing of their district;
Now, Therefore be it Resolved; that the City Commission of the City of Muskegon intends to
establish a Corridor Improvement Authority in the Lakeside Business District, and a public
hearing will be held on October 27th, 2020 at Regular Meeting of the City Commission.
Economic Development Tools—Corridor Improvement
Authority
Introduction
A Corridor Improvement Authority (CIA) allows the use of tax increment financing to make capital improvements within an
established commercial district. It allows communities that already have Downtown Development Authorities to extend
similar benefits to aging commercial corridors outside the DDA district or that extend through more than one municipality.
Authorizing Legislation
PA 57 of 2018, MCL 125.4602-4629, authorizes a city, village, or township to create one or more Corridor Improvement
Authorities.
What Is the Purpose of the Act?
The Act is a tax increment financing (TIF) tool to promote economic development. A CIA is designed to assist economic
development and redevelopment in established commercial districts. It allows communities to combine tax dollars from a
variety of sources to leverage economic development dollars.
How Can this Act Be Used?
Specifically, this Act allows TIF to be used for commercial and economic growth in commercial districts in cities, villages,
and townships. Local units can use taxes arising from increased property values through TIF to pay for improvements to
commercial areas along arterial or collector streets and roads. Corridor improvements may include improvements to the
land, as well as constructing, rehabilitating, preserving, equipping, or maintaining buildings within the development district
for public or private use. These improvements may be financed initially through bonding, which may be repaid from the
enhanced property tax revenue stream, special assessments, and fees.
This section of the Act provides for transit-oriented development and transit-oriented facilities in CIAs and other economic
development tools. “Transit-oriented development” means infrastructure improvements that are located within one-half
mile of a transit station or transit-oriented facility that promotes transit ridership or passenger rail use. “Transit-oriented
facility” means a facility that houses a transit station in a manner that promotes transit ridership or passenger rail use. In
addition, municipalities can now set up transit TIF districts using this Act. These new TIF districts do not allow for other
governmental units to opt-out of tax capture (counties, libraries, community colleges, etc.).
How Is this Act Different?
This Act is designed to rehabilitate, renovate, and prevent the deterioration of established commercial business districts not
eligible under the DDA Act. The district must be adjacent to a road classified as an arterial or collector road by the Federal
Highway Administration, contain at least 10 contiguous parcels or five contiguous acres with more than 1/2 of the existing
ground floor square footage classified as commercial property under the General Property Tax Act. In addition, residential
commercial or industrial use must have been allowed under the zoning ordinance for the immediately preceding 30 years,
the area must be presently served by municipal water and sewer, and the area must be zoned for mixed-use including high
density residential. In addition, a municipality may have more than one CIA, and a CIA may be intergovernmental.
What Are the Financing Options?
• Tax increment revenues
• Sale of bonds
• Special assessments
Michigan Municipal League І updated February 2019 1
Establishing a Corridor Improvement Authority
Note: The following steps are offered as general guidelines only. A municipality should consult with an attorney prior to
initiating the process of creating a CIA.
1. Adopt a resolution declaring intent.
2. Publish (20-40 days before the hearing), post (20 days before the hearing in 20 places) and mail (to the governing body
of each taxing jurisdiction 20 days before the hearing) notice of public hearing.
3. Hold public hearing on the establishment of the authority and on the boundaries of the district.
4. Adopt an ordinance not less than 60 days following the public hearing establishing the authority and designating the
boundaries of the proposed development area.
5. File and publish the ordinance.
6. Appoint the board.
Reporting Requirements
See p 4-6 (attached to this Fact Sheet) for 2019 reporting and public informational meeting requirements.
Provisions of the Corridor Improvement Authority Act
• Authorizes a city, village or township to create one or more Corridor Improvement Authorities by ordinance after
providing notice and holding a public hearing. The local unit shall also designate the development area boundaries by the
ordinance.
• Provides for the supervision and control of an authority by a board that includes the city, village or township chief
executive officer and five to nine additional members. At least one member of the board shall be a resident of the district
or of an area within 1/2 mile of the district and a majority of the board shall have a ownership or business interest in the
development area.
• Allows a board to hire a director to serve as chief executive officer of the authority, subject to the approval of the city,
village or township governing body and other personnel as it feels necessary.
• Allows an authority to prepare and submit to the city, village or township governing body a tax increment financing plan,
which must include a development plan for the authority's development area. TIF plans and development plans are subject
to public hearings and affected local taxing jurisdictions must be notified. Except for certain qualified development areas,
the governing body of another taxing jurisdiction may, by resolution, exempt its taxes from capture during the plan
adoption process. Further, taxes levied for public library purposes, which are approved by voters after December 31, 2016
are exempt from capture unless a library board or commission allows all or a portion of its taxes to be included as tax
increment revenues under the terms of a written agreement with an authority.
• Provides for the financing of authority activities, including borrowing money and issuing bonds. With local unit approval,
the authority could issue negotiable revenue bonds under the Revenue Bond Act, which are not a debt of the local unit
unless the governing body pledges the full faith and credit to support the authority’s revenue bonds.
• Allows an authority to authorize, issue, and sell tax increment bonds, or the local unit to authorize, issue, and sell its
limited tax general obligation bonds, each to finance a TIF plan's development program.
• Requires a city, village, or township to dissolve an authority after it has completed its purpose, and provides that the
authority's property and assets remaining after the satisfaction of its obligations would belong to the local unit.
• Allows the governing body, at the request of the CIA board, from time to time to amend either the development or TIF
plans. It may also amend the boundaries of the CIA district. However, caution should be taken amending either the plan or
the boundaries as the other taxing units (county, schools, etc.) may opt out.
Michigan Municipal League І updated February 2019 2
Corridor Improvement Authority Board Powers:
• Prepare an analysis of economic changes taking place in the development area.
• Study and analyze the impact of metropolitan growth upon the development area.
• Plan and propose the construction, renovation, repair, remodeling, rehabilitation, restoration, preservation, or
reconstruction of a public facility, an existing building, or a multiple-family dwelling unit which may be necessary or
appropriate to the execution of a plan which, in the opinion of the board, aids in the economic growth of the development
area.
• Plan, propose, and implement an improvement to a public facility within the development area to comply with the barrier
free design requirements of the state construction code (1972 PA 230, MCL 125.150).
• Develop long-range plans, in cooperation with the agency that is chiefly responsible for planning in the municipality,
designed to halt the deterioration of property values in the development area and to promote the economic growth of the
development area, and take steps as may be necessary to persuade property owners to implement the plans to the fullest
extent possible.
• Implement any plan of development in the development area necessary to achieve the purposes of this Act in accordance
with the powers of the authority granted by this Act.
• Make and enter into contracts necessary or incidental to the exercise of its powers and the performance of its duties.
• On terms and conditions and in a manner and for consideration the authority considers proper or for no consideration,
acquire by purchase or otherwise, or own, convey, or otherwise dispose of, or lease as lessor or lessee, land and other
property, real or personal, or rights or interests in the property, that the authority determines is reasonably necessary to
achieve the purposes of this act, and to grant or acquire licenses, easements, and options.
• Improve land and construct, reconstruct, rehabilitate, restore and preserve, equip, improve, maintain, repair, and operate
any building, including multiple-family dwellings, and any necessary or desirable appurtenances to those buildings, within the
development area for the use, in whole or in part, of any public or private person or corporation, or a combination thereof.
• Fix, charge, and collect fees, rents, and charges for the use of any facility, building, or property under its control or any part
of the facility, building, or property, and pledge the fees, rents, and charges for the payment of revenue bonds issued by the
authority.
• Lease, in whole or in part, any facility, building, or property under its control.
• Accept grants and donations of property, labor, or other things of value from a public or private source.
• Acquire and construct public facilities.
• Conduct market research and public relations campaigns, develop, coordinate, and conduct retail and institutional
promotions, and sponsor special events and related activities.
• Contract for broadband service and wireless technology service in a development area.
This publication was written by the law firm of Miller Canfield.
Michigan Municipal League І updated February 2019 3
New DDA/TIF Reporting and Public Informational Meeting Requirements
Pursuant to the Recodified Tax Increment Financing Act
2018 PA 57 (Effective January 1, 2019)
Introduction: The Recodified Tax Increment Financing Act, 2018 PA 57 (the “Act”), was
signed into law on March 15, 2018 and took effect on January 1, 2019. The Act
consolidates the legislative authority to create and operate tax increment
authorities (other than brownfield redevelopment authorities) into a single
statute.
The Act imposes new, uniform reporting requirements on most authorities1
and their related municipalities, new public informational meeting
requirements, authorizes the Department of Treasury to enforce the Act, and
prohibits authorities in breach of these reporting requirements from capturing
tax increment revenues in excess of the amounts necessary to pay bonded
indebtedness and other obligations of the authority for the period of
noncompliance.
The new reporting and public informational meeting requirements are set
forth below:
What: Send a Copy of Current TIF Plan to Treasury
When: No later than April 1, 2019
Why: MCL 125.4912
How: Authority must send a copy or an electronic mail link of its currently adopted
development plan or its currently adopted tax increment finance plan, if
separate from the development plan, to the Department of Treasury.
What: Hold Two Informational Meetings Annually
When: Biannually beginning January 1, 2019
Why: MCL 125.4910(4)
How: The board of an authority shall hold at least 2 informational meetings (which
may be held in conjunction with other public meetings of the authority or
municipality). Notice must be published on the municipality's or authority's
website not less than 14 days before the date of the informational meeting.
Notice must also be mailed not less than 14 days before the informational
meeting by the authority to the governing body of each taxing jurisdiction
levying taxes that are subject to capture. As an alternative to mailing notice,
the authority may notify the clerk of the governing body of each taxing
jurisdiction by electronic mail.
1
These requirements apply to Downtown Development Authorities, Tax Increment Finance Authorities, Local Development
Finance Authorities, Corridor Improvement Authorities, Water Resource Improvement Authorities, Neighborhood
Improvement Authorities, and municipalities incorporating any one of these authorities.
What: Post TIF Information on Municipal Website
When: 180 days after end of authority's current Fiscal year as of Jan. 1, 2019
Why: MCL 125.4910(1)
How: The municipality must create a website or utilize the municipality's existing
website with access to authority records and documents, including all of the
following:
(a) Minutes of all board meetings.
(b) Annual budget, including encumbered and unencumbered fund balances.
(c) Annual audits.
(d) Currently adopted development plan, if not included in a tax increment
financing plan.
(e) Currently adopted tax increment finance plan, if currently capturing tax
increment revenues.
(f) Current authority staff contact information.
(g) A listing of current contracts with a description of those contracts and
other documents related to management of the authority and services
provided to the authority.
(h) An updated annual synopsis of activities of the authority. An updated
synopsis of the activities of the authority includes all of the following, if any:
(i) For any tax increment revenues described in the annual audit that are
not expended within 5 years of their receipt, a description that provides
the following:
(A) The reasons for accumulating those funds and the uses for which
those funds will be expended.
(B) A time frame when the fund will be expended.
(C) If any funds have not been expended within 10 years of their
receipt, both of the following:
(I) The amount of those funds.
(II) A written explanation of why those funds have not been
expended.
(ii) List of authority accomplishments, including progress made on
development plan and tax increment finance plan goals and objectives for
the immediately preceding fiscal year.
(iii) List of authority projects and investments, including active and
completed projects for the immediately preceding fiscal year.
(iv) List of authority events and promotional campaigns for the
immediately preceding fiscal year.
What: Send Annual Report to Treasury, Municipality and Taxing Units
When: 180 days after the end of an authority's fiscal year
Why: MCL 125.4911(1)
How: An authority that is capturing tax increment revenues must submit a report,
on a form to be provided by Department of Treasury, to the municipality, the
governing body of each taxing unit levying taxes which are subject to capture
by the authority, and the Department of Treasury. The report shall include all
of the following:
Page | 2 courtesy of Steven Mann, principal, Miller Canfield
(a) The name of the authority.
(b) The date the authority was formed, the date the tax increment financing
plan is set to expire or terminate, and whether the tax increment financing
plan expired during the immediately preceding fiscal year.
(c) The date the authority began capturing tax increment revenues.
(d) The current base year taxable value of the tax increment financing district.
(e) The unencumbered fund balance for the immediately preceding fiscal year.
(f) The encumbered fund balance for the immediately preceding fiscal year.
(g) The amount and source of revenue in the account, including the amount of
revenue from each taxing jurisdiction.
(h) The amount in any bond reserve account.
(i) The amount and purpose of expenditures from the account.
(j) The amount of principal and interest on any outstanding bonded
indebtedness.
(k) The initial assessed value of the development area or authority district by
property tax classification.
(l) The captured assessed value retained by the authority by property tax
classification.
(m) The tax increment revenues received for the immediately preceding fiscal
year.
(n) Whether the authority amended its development plan or its tax increment
financing plan within the immediately preceding fiscal year and if the authority
amended either plan, a link to the current development plan or tax increment
financing plan that was amended.
(o) Any additional information the governing body of the municipality or the
Department of Treasury considers necessary.
Page | 3 courtesy of Steven Mann, principal, Miller Canfield
Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: 9/22/2020 Title: Jackson Hill Infill Housing
Development
Submitted By: Jake Eckholm Department: Economic Development
Brief Summary: Now that the necessary lots have been added to the Brownfield Redevelopment
Plan, local developer/contractors Rudy and Greg Briggs are interested in utilizing a Brownfield TIF
to construct single family homes for the city in order to increase value and stabilize the primarily
residential Jackson Hill neighborhood. They have submitted firm bids and propose acting as the
builder and developer on behalf of the City, which will remain the owner of the lots and partner with
Mr. Briggs to market the homes.
Detailed Summary:
Since mid-2019, Economic Development Department staff have been working with Rudy and Greg
Briggs on potentially utilizing our Brownfield TIF Program to develop and market single family
homes in the Jackson Hill Neighborhood. Most importantly, the focus of this program has been to
identify, empower, and retain developers of color to benefit from some of the same incentive
programs we have been utilizing to great effect. This evening I would request that the Commission
authorize staff to work with the Community Foundation for Muskegon County make a PROGRAM
RELATED INVESTMENR of $355,000 to undertake construction of the first two homes in this
multi-year development project. The City would also loan $75,000 from its Economic Development
Revolving Loan Fund. The CFFMC would be repaid upon sale of the homes. The City would be
repaid with tax increment financing. Attached are the proposed development agreement as
drafted by the City Attorney, the map featuring the locations of the first two homes (highlighted in
RED), the design criteria of the proposed homes, and the firm bids by the developers.
Amount Requested: $75,000 Amount Budgeted: N/A, CFFMC Funds
Fund(s) or Account(s): ED Revolving Fund Fund(s) or Account(s): N/A
Recommended Motion: To approve the Development Agreements for new home construction
between the City of Muskegon and Rudy Briggs, and to authorize the Community Foundation for
Muskegon County to release funds from the City’s Donor Advised Fund as presented.
For City Clerk Use Only:
Commission Action:
RESIDENTIAL CONSTRUCTION AGREEMENT
This Agreement is effective on __________________, 2020 (“Effective Date”) between LRS
Enterprises of 525 South Dangl Street, Muskegon, MI 49442_ (“Builder”) and
THE CITY OF MUSKEGON of 933 Terrace Street, Muskegon, MI 49440 (“Owner”) with reference to
the following facts:
Background
Builder and Owner (individually, a “Party” or collectively, “Parties”) agree that Builder shall
construct two (2) single family residences (the “Residences”) for Owner on the terms and conditions set
forth in this Agreement and in the general conditions attached as Exhibit A (“General Conditions”).
The parties agree as follows:
1. Building Site. Owner owns the building site located on the real estate located at
766 Leonard Street, and legally described on Exhibit B (the “Property”). Owner has agreed to hire
Builder to build the Residences on the Property.
2. The Residences. Builder shall build the Residence in accordance with the plans and
specifications attached as Exhibit C (the “Plans”).
3. Price. The price for constructing the Residences shall be Four Hundred Twenty-Five
Thousand Dollars ($425,000) (“Price”).
4. Estimated Completion Date. Builder shall commence construction of the Residence within
____ days from the Effective Date (“Commencement Date”). Builder shall complete the Residence
within ____ weeks of the Commencement Date (“Completion Date”).
5. General Conditions. Owner and Builder agree to all of the General Conditions attached to
this Agreement as Exhibit A.
Builder –______________
By: ________________________________
Name: ________________________________
Title: ________________________________
Date: ________________________________
Owner –THE CITY OF MUSKEGON
By: ________________________________
Name: ________________________________
Title: ________________________________
Date: ________________________________
EXHIBIT A
GENERAL CONDITIONS
1. Payment of the Price. The Price shall be paid in accordance with the following schedule
(“Payment Schedule”):
a. Foundation installed..............................….... 20% of the Price
b. Mechanicals installed..........................….... 40% of the Price
c. Certificate of Occupancy..................…....... 30% of the Price
d. Completion of Punch List Items………….. 10% of the Price
2. Costs Included in Price. Unless excluded by Section 3 or adjusted as set forth in
Sections 4 or 5, the Price is fixed and includes all cost of labor and materials purchased, including
all sales taxes incurred by Builder, for complete construction of the Residence. Price is not based
on allowances or estimates of costs for items to be added to the Residence. The Price includes:
a. A security system;
b. A driveway
c. Curb cut (Builder may use existing curb cut unless damaged);
d. Sod/seed over the entire front, back and side yards;
e. A street tree;
f. A small landscape package along each side of the Residence with street frontage;
g. Edging and mulch;
3. Costs Excluded From Price. Owner shall be responsible for each of the following items
and the cost of each item shall be excluded from the Price and the sole responsibility of Owner:
a. Lot Lines. Prior to the Commencement Date Owner shall own the Property with new
lot lines established as depicted on the Site Plan.
b. Site Preparation. Prior to the Commencement Date, Owner will prepare the Property
for construction of the Residence, including the removal of the following:
i. existing fences;
ii. community garden;
iii. existing sidewalks; and,
iv. debris.
c. Water and Sewer Leads. Owner will provide water and sewer leads to the Residence.
d. Permit and Connection Fees. Owner shall be responsible for any municipal permits,
connection fees, tap fees or assessments, including sewer and water connection fees.
e. Site Variance. Any abnormal site conditions discovered during excavation will be
communicated to Owner along with an estimated cost to proceed with construction.
Examples include such items as buried debris, bad soils, or rear yard drainage constraints.
Any additional site work required will be corrected by Owner unless Owner authorizes
Builder to correct any site variance issues in writing and the appropriate Change Order is
fully executed.
1
f. Damaged Curb Cuts. Any damaged curb cuts will either be approved for use or
removed by Owner.
g. Irrigation. Irrigation can be added for $3,000, provided the appropriate Change Order
is fully executed.
h. Future Security System Service Fees. Ongoing monitoring service fees will be the
responsibility of Owner or subsequent owner.
4. Modifications/Extras. No modifications to the Plans (“Modifications”) or requests for
additional construction (“Extras”), the cost of which exceed $200, shall be binding upon either party,
unless the Modifications or Extras are set forth on a written Change Order that is signed by Builder
and Owner in substantially the form as attached Exhibit E (“Change Order”). The Change Order must
provide a detailed description of the Modifications or Extras and the cost or credit to be charged. In
those instances where a Change Order increases or decreases the Price by more than $200 (“Adjusted
Price”), the Adjusted Price shall be paid according to the remaining portion of the Payment Schedule.
5. Minor Modifications. Builder and Owner may from time to time agree on minor
modifications, the cost for which is less than $200 (“Minor Modifications”). Minor Modifications
may only be made by agreement between Builder and Owner, provided such agreement need not be
in writing. The cost or credit for Minor Modifications shall be added to or credited against the Price
and paid according to the remaining portion of the Payment Schedule.
6. Payments, Sworn Statement and Lien Waivers. Payments required by the Payment
Schedule shall be made within 10 days of Builder’s invoice by Owner to Transnation Title Insurance
Company of 570 Seminole, Muskegon, Michigan 49441(the “Title Company”). Builder will deliver
to the Title Company a sworn statement showing all amounts due for labor and materials furnished in
connection with construction of the Residence or other improvements to the Property through the date
of Builder’s invoice together with waivers of lien showing all amounts from any previous draw have
been paid in full. The Title Company shall pay Builder per the Payment Schedule within 2 business
days of approval by the Title Company of the last sworn statement provided proper partial
unconditional waivers of lien from Builder and for each supplier and sub-contractor to whom
payment has been made are received and approved by the Title Company.
7. Possession. Owner shall be entitled to possession of the Residence upon payment of the Price
in full.
8. Extension of Dates. Any date may be extended by agreement of the Builder and Owner and
the Commencement Date and the Completion Date may be extended as a result of circumstances
beyond the control of Builder, including, but not limited to, delays caused by suppliers or
subcontractors, delays for utility hook-ups, Acts of God, labor disputes, governmental inspections,
regulations, or permit processes, material back orders, Owner’s requests for Change Orders, fire,
injury or disability to Builder, or weather.
9. Builder's Warranties. Builder shall complete the Residence and all improvements on the
Property timely and in a first class manner. All building materials used in the construction of the
Residence shall be new. Builder guarantees its workmanship for a period of 12 months from the date
of sale or lease of the Residence to a party other than Owner or 24 months from the date of the
Certificate of Occupancy, whichever first occurs (“Warranty Period”). This warranty is fully
transferable by Owner and may be assigned to a 3rd party. Within the Warranty Period, Builder may
replace, at its option, any materials incorporated into the Residence which are defective. To make a
claim under this warranty, Owner or its successor must give Builder written notice of any such defect
2
in the workmanship and/or materials promptly upon discovery and not later than expiration of the
Warranty Period. This warranty does not apply to workmanship or materials requiring repair or
replacement because of normal wear and tear, natural settling or mold. Builder shall turn over and
transfer to Owner all manufacturers’ warranties that are delivered directly to Builder by the
manufacturer at the time of final payment by Owner. In addition to this warranty between Builder and
Owner and successors of Owner, Builder shall also provide to Owner and successors of Owner at no
cost to Owner the Ten Year Warranty for New Homes provided by Residential Warranty Company,
LLC attached as Exhibit F (“Long Term Warranty”). Nothing in the Long Term Warranty shall limit
the scope of the warranties provided by Builder to Owner or its successors.
10. Owner's Warranties. Owner covenants and warrants that Owner owns the Property in fee
simple, free and clear of all liens, except for those encumbrances specifically set forth on Exhibit G.
Owner shall provide evidence satisfactory to Builder, such as a commitment for title insurance issued
by the Title Company, which indicates such ownership. Owner shall locate the exact location of the
Residence on the Property. All corners of the Property and the Residence shall be clearly marked
with surveyor stakes. Owner covenants and agrees that such location is in compliance with all
applicable federal, state, and local rules and regulations, including, but not limited to, building
restrictions, set-back requirements and zoning ordinances.
11. License. Builder is a residential builder and a residential maintenance and alteration
contractor and is required to be licensed under article 24 of Act 299 of the Public Acts of 1980, as
amended, being sections 339.2401 to 399.2412 of the Michigan Compiled Laws. An electrician is
required to be licensed under Act No. 217 of the Public Acts of 1956, as amended, being sections
338.881 to 338.892 of the Michigan Compiled Laws. A Plumber is required to be licensed under Act
No. 266 of the Public Acts of 1929, as amended, being sections 338.901 to 338.917 of the Michigan
Compiled Laws. Builder is licensed by the State of Michigan as a licensed Michigan Contractor and
maintains its license in good standing. Builder's License number is 2101131848 respectively.
12. Laws, Ordinances and Regulations. In connection with the construction of the Residence,
Builder shall meet and comply with all applicable laws, ordinances, and regulations.
13. Notice of Commencement. Owner shall deliver a Notice of Commencement in accordance
with the Michigan Construction Lien Act within ten days of the Effective Date.
14. Risk of Loss. Until a Certificate of Occupancy is issued for the Residence the risk of loss for
the Residence lies solely with Builder. Provided, Owner shall be solely responsible for building
materials on Property and Owner shall reimburse Builder for the cost of building materials vandalized
or stolen from the Property.
15. Insurance. Builder shall procure and maintain an “all risk” insurance policy and shall name
Owner as an additional named insured. Builder shall maintain a policy of builder's insurance fully
insuring the Residence from the date construction commences until the date of substantial
completion. Owner may also maintain a policy of insurance on their interest in the Residence. Builder
shall also carry public liability insurance with coverage limits not less than $1,000,000 single-limit
coverage and worker's compensation insurance in an amount not less than the statutory minimum.
Such policies shall name Owner as an additional named insured. Builder shall provide Owner with
evidence of such insurance upon request. Owner and Builder waive all rights against each other for
damages caused by fire or other perils to the extent covered by insurance provided under this
paragraph.
16. Diligent Pursuit. Builder shall diligently pursue its obligations under this Agreement.
3
17. Default. If either Party believes that the other Party has failed to comply with this
Agreement (“Default”), the non-defaulting Party shall provide the Defaulting Party not less than 10
days written notice of such non-compliance, a list of the non-defaulting Party’s specific complaints,
and a reasonable time within which the defaulting Party shall cure the Default (“Default Notice”). If
the defaulting Party fails to cure the Default within the period of time specified in the Default Notice,
the non-defaulting Party may pursue any and all remedies available, including specific performance
in that there may not be an adequate remedy at law. In addition, Owner may replace Builder with
another party to complete construction and may deduct from the Price any amount paid by Owner to
such third party to complete construction in accordance with the Plans. In the event either Party takes
any action to enforce this Agreement, the prevailing Party shall reimburse the other Party for all
expenses incurred by the prevailing Party, including attorney fees.
18. Cross Default. Contemporaneously with the execution of this Agreement, Owner and
Builder are entering into ____similar agreements for the construction of homes similar to the
Residence on each of the ______ lots depicted on the Site Plan (“Other Agreements”). Owner and
Builder agree that a default of this Agreement or any of the Other Agreements shall constitute a
default of all Other Agreements and this Agreement.
19. Dispute Resolution. Any claim or demand of either party arising out of this Agreement,
including without limitation, claims of fraud, misrepresentation, warranty or negligence and that
exceeds $5,500 in value shall be submitted to binding arbitration. The parties shall attempt to agree
on a mutually agreeable independent arbitrator. If the parties are unable to mutually agree on an
arbitrator, and arbitrator shall be selected in accordance with the rules of the American Arbitration
Association. The arbitration shall be conducted in accordance with the rules of the American
Arbitration Association, Home Construction Arbitration Rules and Mediation Procedures. A Circuit
Court judgment may render judgment upon the award made pursuant to this Agreement. This
Agreement is specifically made subject to and incorporates the provisions of the Michigan Arbitration
Act, MCL 600.5001 et seq. The cost of such arbitration shall be divided equally between both
parties. Neither Party shall be required to submit to arbitration any claim or demand of a value less
than $5,500.
20. Miscellaneous.
a. Authority to Bind Owner. No approval, agreement or consent and no document
signed in connection with this Agreement shall be binding on Owner unless made, given or
signed by Frank Peterson or Jake Eckholm.
b. Applicable Law. This Agreement is executed in, shall be governed by, and construed
and interpreted in accordance with the laws of the State of Michigan.
c. Entire Agreement. This writing shall constitute the entire Agreement, and shall
supersede any other Agreements, written or oral, that may have been made or entered into by the
parties with respect to the subject matter hereof, and shall not be modified or amended, except in
a subsequent writing signed by the party against whom enforcement thereof is sought.
d. Binding Effect. This Agreement shall be binding upon, inure to the benefit of, and be
enforceable by the parties and their respective legal representatives, successors, assigns, officers,
directors, employees, agents, heirs, executors, and administrators.
e. Full Execution. This Agreement requires the signature of both parties. Until fully
executed on a single copy or in counterparts, this Agreement is of no binding force or effect, and
if not fully executed, this Agreement is void.
4
f. Counterparts. This Agreement may be executed in two or more counterparts, each of
which shall be deemed an original as against any party whose signature appears thereon, and all
of which together shall constitute one and the same instrument. This Agreement shall become
binding upon the parties when one or more counterparts, individually or taken together, shall bear
the signatures of all parties.
g. Non-Waiver. No waiver by any party of any provision of this Agreement shall
constitute a waiver by such party of such provision on any other occasion or a waiver by such
party of any other provision of the Agreement.
h. Severability. Should any one or more of the provisions of this Agreement be
determined to be invalid, unlawful, or unenforceable in any respect, the validity, legality, and
enforceability of the remaining provisions shall not in any way be impaired or affected.
i. No Discrimination. Discrimination on the basis of religion, race, creed, color,
national origin, age, sex, marital status, or handicapped condition by either party in respect to the
construction of the Residence is prohibited.
j. Assignment or Delegation. Neither Builder nor Owner may assign all or any part of
this Agreement. Provided, that Builder may delegate all or any part of its obligations to perform
the services under this Agreement, to any persons or entities that Builder, in its sole discretion,
deems appropriate, including sub-contractors. Such delegation shall be at the sole expense of
Builder unless otherwise provided.
k. Notices. Any notices required or permitted to be given under this Agreement must be
in writing and sent to the address shown below (or such subsequent address as may be designated
by either party in writing) by certified mail, return receipt requested and postage prepaid, a
recognized courier service (Federal Express, UPS, or DHL), or by email with confirmation of
delivery received. The notice will be effective upon receipt.
To Builder:
LRS Enterprises
525 South Dangl Street
Muskegon, MI 49442
Attn: Rubin Briggs
Phone: 231-855-3775
E-mail: Briggsbuilders210@gmail.com
To Owner:
City of Muskegon
933 Terrace Street
P.O. Box 536
Muskegon, MI 49443-0536
Attn: Jake Eckholm
Phone: 231-724-6780
Fax: 231-722-1214
E-mail: jake.eckholm@shorelinecity.com
5
With a contemporaneous copy to:
Parmenter O'Toole
601 Terrace Street
P.O. Box 786
Muskegon, Michigan 49443-0786
Attn: John Schrier
Phone: 231-722-5401
Fax: 231-722-5501
Email: john@parmenterlaw.com
l. Time is of the Essence. Builder and Owner acknowledge and agree that the time
related provisions set forth herein are critical and essential terms of this Agreement and that time
is of the essence with regard to the transactions contemplated in this Agreement. Failure to
strictly comply with the time related provisions of this Agreement will be considered a breach of
the entire Agreement.
m. Pronouns. For convenience, Owner has been referred to this Agreement sometimes in
the singular and at other times in the plural.
n. Notice of Sale or Lease. Upon the sale or lease of the Residence by Owner to a third
party, Owner shall provide notice to Builder of such sale or lease and provide builder with all
contact information for the buyer/tenant, including a phone number and an email address.
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EXHIBIT B
LEGAL DESCRIPTION
CITY OF MUSKEGON GUNNS SUB DIV OF PART OF BLK 2 E 42 FT LOT 10 ALL LOTS
11 & 12 BLK 3
EXHIBIT C
PLANS AND SPECIFICATIONS
EXHIBIT C CON’D
PLANS AND SPECIFICATIONS
EXHIBIT D
SITE PLAN
EXHIBIT E
CHANGE ORDERS
Owner has requested, and Builder agrees to the following Modifications to the Plans with the
cost/credit set forth below:
MODIFICATION COST CREDIT ADJUSTED PRICE
Builder -
By: ________________________________
Name: ________________________________
Title: ________________________________
Date: ________________________________
Owner – THE CITYOF MUSKEGON
By: ________________________________
Name: ________________________________
Title: ________________________________
Date: ________________________________
EXHIBIT F
LONG TERM WARRANTY
EXHIBIT G
PERMITTED ENCUMBRANCES
__________________________________
RESIDENTIAL CONSTRUCTION AGREEMENT
OWNER
THE CITY OF MUSKEGON
BUILDER
LRS Enterprises
Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: September 22, 2020 Title: 2189 Larue
Submitted By: Frank Peterson Department: City Manager
Brief Summary: City staff is seeking authorization to include2183 Larue in the infill housing program and
authorize the sale of the vacant city lot for the construction of a custom single-family home.
Detailed Summary: The lot has been vacant for many years. Our records indicate that the city
purchased the lot for $0 following tax foreclosure in 2010. The neighbor at 2183 has recently
demonstrated interest in purchasing the lot to construct a garage. Staff believes the better use of
the lot would be the construction of a new single-family home. The interested neighbor seems
satisfied with the sale as long as it is for an owner-occupied home. The intention is that this sale will
result in an owner-occupied new home. The new owner was originally looking to build as part of
Midtown Square Phase 2, but could not find a vacant lot that met his needs/expectations. It is
usual/customary for us to provide access to our list of city-owned sites for home builders. Mr.
Dusendang used that list to find the lot at 2189 Larue; his client approved of the location, and they
are moving fast to construct the home. This house will be sold at actual cost, and no subsidy will be
necessary; its inclusion in the scattered site brownfield will help offset the costs of other housing
construction.
Amount Requested: Amount Budgeted: $0
Fund(s) or Account(s): N/A Fund(s) or Account(s): N/A
Recommended Motion: Add 2189 Larue to the West Urban Properties Infill Housing Development
Agreement, and authorize the lot sale under the same terms as the other building sites.
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: 9/22/2020 Title: Lakeview Lofts Phase II Bridge Loan
Submitted By: Jake Eckholm Department: Economic Development
Brief Summary: On July 28, 220, the City Commission authorized the issuance of a short-term
bridge loan to support Lakeview Loft’s Phase II. Staff is seeking permission to convert the bridge
loan into a traditional loan with an 84-month amortization schedule.
Detailed Summary:
As staff worked through the due diligence associated with the bridge loan for Phase 2, a number of
discussions took place with the original Phase 1 secured debtors. The Community Foundation is
one of those debtors that would need to agree to allow Phase 2 to proceed with the City’s bridge
loan being repaid ahead of their collateralized loan for Phase 1. The Community Foundation’s
leadership has an interest in reducing their investment in Phase 1 to open up new investment
opportunities for their funds related to social equity. To solve this issue, staff is asking that instead
of repaying the bridge loan upon closing of the senior debt on Phase 2, the $450,000 would go
toward the CFFMC Loans ($300,000 to the Westgate Fund and $150,000 to the City’s cemetery
perpetual care fund). The City would then hold a new $450,000 position on Phase 1. The
developers have agreed to $12,000 in interest accrual through March 2022; beginning April 1,
2022, the loan will be repaid on an 84-month amortization at 5% interest. Monthly payments would
be $6,529.87; total interest income would be $98,509.
Amount Requested: $450,000 Amount Budgeted: N/A, Capital Fund
Fund(s) or Account(s): ED Revolving Fund Fund(s) or Account(s): N/A
Recommended Motion: Motion to rescind the Economic Development Loan previously granted to
351 II LLC, and replace it with a loan in the $450,000 to be repaid in equal monthly payments
starting April 1, 2022, and ending March 1, 2029; interest rate to be 5%; monthly payment to be
$6,529.87.
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: 9-22-2020 Title: Social District Permit recommendation
Submitted By: Dave Alexander Department: Economic Development
Brief Summary: The City Commission must recommend approval of the Michigan Liquor Control
Commission permits of participating licensed establishments in the Downtown Muskegon Social
District.
Detailed Summary: With the establishment of the Downtown Muskegon Social District,
participating licensed establishments must receive a Social District permit from the Michigan Liquor
Control Commission. The MLCC must first receive a recommendation for approval from the City
Commission before granting the permits. You handled the initial eight such requests at your Aug.
25 and Sept. 8 meetings. The attached resolution is for Smash Wine Bar which is also seeking a
Social District permit from the state and seeking City Commission recommended approval. The
Social District plan identifies 22 potential participating licensees within the district. Other licensed
establishments may file a Social District permit application in the future.
Amount Requested: None Amount Budgeted:
Fund(s) or Account(s): Fund(s) or Account(s):
Recommended Motion: To approve the resolution recommending Michigan Liquor Control
Commission approval of Social District permits in the Downtown Muskegon Social District and to
direct the City Clerk to certify the City Commission action with the MLCC.
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 RECOMMENDING DOWNTOWN MUSKEGON SOCIAL DISTRICT
PERMIT APPLICATON APPROVAL
City of Muskegon
County of Muskegon, Michigan
Minutes of a Regular Meeting of the City Commission of the City of Muskegon, County of
Muskegon, Michigan (the “City”), held virtually, live on the city’s FaceBook page per the
governor’s COVID-19 executive order on open meetings, on the 22nd day of September, 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 Public Act 124 of 2020 on the establishment of Social
Districts within a Michigan city; and
WHEREAS, COVID-19 pandemic has caused unprecedented economic disruption
worldwide and within our local business community; and
WHEREAS, restaurants and bars, which have been key contributors to the historic
redevelopment of Downtown Muskegon, have been and will continue to be hard hit by the
economic impact of the pandemic; and
WHEREAS, increasing availability of outdoor spaces for dining and drinking will help
downtown and its businesses recover; and
WHEREAS, Public Act 124 of 2020 empowers local governments like the City of
Muskegon to enhance its downtowns with Social Districts and accompanying Common Areas
where purchasers may consume and possess alcoholic beverages sold by multiple qualified
Michigan Liquor Commission licensees who obtain Social District Permits; and
WHEREAS, the City Commission has designated a Downtown Muskegon Social District
and Common Area, and
WHEREAS, the city has received requests from multiple qualified licensees to
recommend approval of their Social District Permit applications by the Michigan Liquor Control
Commission, and
WHEREAS, the licensed establishments are contiguous to the Common Area within the
Social District, and
WHEREAS, the City Commission desires to recommend approval of the Social District
Permit applications,
NOW, THEREFORE, BE IT RESOLVED THAT:
1. The Social District Permit Applications from the following licensees are
recommended by the City Commission to consideration and approval by the
Michigan Liquor Control Commission:
a. PKT Twelve, Inc., DBA/Smash Wine Bar and Bistro, 415 W. Western Ave.
2. The City Clerk is authorized and directed to provide each applicant with a certification
of this action in the form specified by the Michigan Liquor Control Commission.
AYES:
NAYS:
RESOLUTION DECLARED APPROVED.
Stephen J Gawron, Mayor
Ann Marie Meisch, City Clerk
I hereby certify that the foregoing is a true and complete copy of a resolution adopted by
the City Commission of the City of Muskegon, County of Muskegon, State of Michigan, at a
regular meeting held on September 22, 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 modified by the governor’s
COVID-19 executive order 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
Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: September 22, Title: Sale of vacant lot-1867 Hoyt
2020
Submitted By: Mike Franzak Department: Planning Department
Brief Summary: City staff is seeking authorization to sell the city-owned vacant lot at 1867 Hoyt
Street to Kirsten A. Bremer Trust of 1875 Hoyt Street.
Detailed Summary:
The City Property Sale Policy requires that buildable lots should only be sold for new home
construction. The adjacent property owner would like to use it to only build a garage. Staff
recommends against the sale as it is an attractive redevelopment lot adjacent to Moon School and
the McLaughlin Grown garden. Also, there is enough room on the applicant’s current property to
construct a garage.
The City obtained this property from the State of Michigan through the tax reversion process in
2003. The adjacent property owner would like to buy this property to combine with their adjacent
property to construct a garage on it within 1 year of closing. The sale price is $3,450.00 plus costs
associated with the closing and registering of the deed.
Amount Requested: None. Amount Budgeted: $0
Fund(s) or Account(s): N/A Fund(s) or Account(s): N/A
Recommended Motion: Authorize the City Mayor and Clerk to sign the Purchase Agreement and
deed and to allow Staff to complete the property 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:
10/2013
City of Muskegon
Policy for Sale of City-Owned Residential Property
Objective
The City of Muskegon (the City) wishes to expand its residential tax base while simultaneously
alleviating itself of the significant cost burden associated with year-round maintenance of vacant lots.
The City reserves the right to join and split lots to assist with this process. All property will be sold as
is. All sales are subject to City Commission approval.
Pursuant to the above, the City will periodically implement neighborhood marketing strategies.
Elements of this policy may be superceded by a marketing strategy, if said strategy is approved by the
City Commission as an exception to this policy, and only while said strategy is being utilized to market
properties identified by the strategy.
Non-Buildable Lots/Marginal Lots
Non-Buildable lots are defined as lots that are insufficient in size or configuration for new
construction under the Zoning Ordinance. Marginal lots are defined as residential lots that are
between 50 and 60 feet of frontage, however it would not be in the best interest of the
neighborhood to create increased density, or would create buildable lots for adjoining property
owners. These lots may only be sold to adjacent property owners; neighborhood organizations; or
valid non-profit agencies, to expand/improve or beautify existing property. In the event that both
adjacent owners seek to purchase a property, the City shall divide the property in the most
equitable manner. Factors considered before approvals of property sales include but are not limited
to the following:
Amount of existing property owned by interested parties
Current upkeep of existing property owned by interested parties
Evidence of unresolved zoning issues.
Unpaid environmental invoices or delinquent property taxes.
These lots will be sold for $1.
Buildable Lots
Buildable lots are defined as lots of legal record which are suitable in size and configuration under the
Zoning Ordinance, for the construction of single-family homes, and may only be sold for such a
purpose. As a condition of sale, structures built on these properties must be owner occupied for a
minimum of 5 years. The buyer must 1commence construction within 18 months of the date of
purchase, or the property will revert back to the City's ownership, free and clear of any claim of the
buyer. Buyers requiring frontage of 130’ or more must build homes with a minimum of 2,500 square
1
"Commence Construction" means that a buyer has been issued a residential building permit by the
City of Muskegon and also (in the sole opinion of the City of Muskegon's Building Official) that at least
seventy-five percent (75%) of the dwelling has been completed.
O:\Planning\COMMON\Property\Policy and Procedures\Policy\2013 City Commission\Property Sale Policy 2013.doc
10/2013
feet of living space. All structures must conform to all City building and zoning requirements. These
lots shall be sold for market value.
Home Design
Any person wishing to purchase land from the City for the purposes of constructing a single
family or duplex structure (in areas zoned for duplexes) shall adhere to the following standards:
1. The structure shall have a minimum of 1,260 square feet of usable living space per unit
(excluding all basement area).
2. The roof of the structure shall have a minimum pitch of 5/12, that is, for every twelve
inches (12") of lateral run, the roof shall rise five inches (5").
3. A single-story home shall have a variable roof line on the front elevation (e.g. gable,
dormer or offset).
4. The building design shall be approved by the City and shall include at least two of the
following:
a. A covered front porch with design amenities (e.g., decorative railing). (potential
$300 lot credit)
b. A picture or bay window in the front elevation. (potential $500 lot credit)
c. A starburst or other siding design features in roof gables or over doorways or
windows. (potential $200 lot credit)
d. Shutters or other acceptable outdoor window treatments (potential $100 lot
credit)
e. Brick or stone accents in the front elevation (potential $1,000 lot credit)
f. Decorative windows (potential $200 lot credit)
5. A second story may be a potential $2,000 lot credit but may not be included as one of
the two required design elements.
6. A "stick-built" home may be a potential $2,000 lot credit but may not be included as
one of the two required design elements.
7. In no case shall the total number of credits amount to more than $3,500 nor shall it
exceed the purchase price of the land. This credit must be asked for within 1 (one) year
of building completion by the purchaser/owner. All landscaping must be competed in
order to qualify for the credit.
8. The house shall have a garage or at least an 8 foot x 8 foot painted or vinyl covered
wood storage shed constructed as per City requirements for sheds.
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9. All bedrooms shall have at least one hundred (100) square feet of livable floor area.
10. At the time the building permit application is submitted, the plot plan and building
design will be reviewed to determine compliance with all requirements of this policy.
11. Removal of existing trees shall be approved by zoning staff prior to lot clearing. Trees
shall only be taken to accommodate the structure and driveway. A performance
guarantee may be required of the owner or contractor for tree protection.
12. At least two (2) shade trees shall be provided on site of at least two and one-half (2.5")
inches in diameter four feet from the ground. Preservation of existing trees may be
considered in lieu of this requirement.
13. The lot shall be established with appropriate grass, ground cover or other plantings
within one year of occupancy or the city may arrange for such planting and bill the
owner.
The aforementioned conditions and credits shall be incorporated into a sales contract between
the city and the buyer.
Large Blocks of Land
This type of lot is defined as contiguous property that would allow for the construction of a minimum
of 3 single-family residential structures. It is the preference of the City that these lots be sold as a
single parcel to individuals with the means to develop the land for multiple single family units or
multi-family units such as townhouses, site condos; and the like. Development must conform to either
Single Family or Multiple Family building/zoning requirements. All interested parties must comply
with preliminary site review requirements as determined by the Zoning Administrator.
Process for Purchasing Land
The procedure for purchasing city-owned property can be found in a brochure produced by the
Planning Department, entitled “Purchase of City Owned Buildable Lots & Building Incentives”.
Recording of the Deed
All property sales must be recorded with the Muskegon County Register of Deeds. This is the sole
responsibility of the buyer. All sales will be handled as quit claim deeds.
Closing Costs
All closing costs will be split between the buyer and the seller.
Property Survey
All costs and activities associated with a survey are the sole responsibility of the buyer.
Environmental
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Properties will be sold as is. Any environmental analysis is the sole responsibility of the buyer.
Title Evidence/Insurance
Quitting title of tax reverted properties sold and properties split for minimal amounts such as non-
buildable lots, shall be the responsibility of the buyer.
Financing
Financing the acquisition of City-owned property and subsequent construction (if applicable) is the
sole responsibility of the buyer. Failure to provide proof of adequate financing may be used as a basis
for denial of a sale.
Appeal Procedure
All sales go before the City Commission for approval before a sale can be initiated.
4
1867 Hoyt
Back of 1875 Peck
Resolution No. _______
MUSKEGON CITY COMMISSION
RESOLUTION APPROVING THE SALE OF A BUILDABLE LOT AT 1867 HOYT ST FOR
$3,450.
WHEREAS, Kirsten A. Bremer Trust will be allowed to purchase the parcel designated as parcel
number 24-675-003-0009-00, located at 1867 Hoyt St for $3,450; and
WHEREAS, the price for parcel number 24-675-003-0009-00 is set by the City at $3,450, which
is 75% of the True Cash Value (TCV) listed in the City Assessor’s Office; and
WHEREAS, Kirsten A. Bremer Trust will combine this with her adjacent property to construct a
single stall garage; and
WHEREAS, the sale would generate additional tax revenue for the City and relieve the City of
further maintenance costs; and
WHEREAS, the sale is not consistent with City policy regarding the disposition of buildable lots,
in that, this property will be combined with the adjacent property located at 1875 Hoyt St. so a
single stall garage may be constructed; and
WHEREAS, the sale shall be completed by either Mike Franzak, Planning Director, or Hope
Mitchell, Code Coordinator; and
NOW THEREFORE BE IT RESOLVED, that parcel number 24-675-003-0009-00, located at
1867 Hoyt St be sold to Kirsten A Bremer Trust for $3,450.
CITY OF MUSKEGON PLAT A MUSKEGON HEIGHTS BLOCK 3 LOT 9
Adopted this 22nd day of September 2020
Ayes:
Nays:
Absent
By: _________________________
Stephen J. Gawron, Its Mayor
Attest: ________________________
Ann Marie Meisch, MMC
Its City Clerk
CERTIFICATION
I hereby certify that the foregoing constitutes a true and complete copy of a resolution adopted
by the City Commission of the City of Muskegon, County of Muskegon, Michigan at a regular
meeting held on March 27, 2012.
By: ________________________
Ann Cummings, MMC
City Clerk
REAL ESTATE PURCHASE AGREEMENT
THIS AGREEMENT is made September 22, 2020, by and between the CITY OF
MUSKEGON, a municipal corporation, with offices at 933 Terrace, Muskegon, Michigan
49440 ("Seller"), and KIRSTEN A. BREMER TRUST, of 1875 Hoyt St, Muskegon, Michigan
49442 ("Buyer").
1. General Agreement and Description of Premises. Seller agrees to sell, and
Buyer agrees to buy, marketable record title of real estate, and all improvements thereon, with all
beneficial easements, and with all of Seller's right, title and interest in all adjoining public ways,
the real property located in the City of Muskegon, Muskegon County, Michigan ("Premises"),
and specifically described as:
CITY OF MUSKEGON PLAT A MUSKEGON HEIGHTS BLOCK 3 LOT 9.
Subject to the reservations, restrictions and easements of record, provided said reservations,
restrictions and easements of record are acceptable to Buyer upon disclosure and review of the
same, and subject to any governmental inspections required by law.
2. Purchase Price and Manner of Payment. The purchase price for the Premises
shall be Three thousand four hundred fifty and no/100 Dollars ($3,450.00), payable in a cashiers
check, bank cashiers check or wire transfer.
3. Taxes and Assessments. All taxes and assessments that are due and payable at
the time of Closing shall be paid by Seller prior to or at Closing. All taxes and special
assessments that become due and payable after Closing shall be the responsibility of Buyer.
4. Title Insurance. Seller agrees to deliver to the Buyer, ten (10) days prior to
closing, a commitment for title insurance, issued by TransNation Title Agency, for an amount
not less than the purchase price stated in this Agreement, guaranteeing title on the conditions
required herein. In the event the reservations, restrictions or easements of record disclosed by
said title commitment is, in the sole discretion of Buyer, deemed unreasonable, Seller shall have
forty-five (45) days from the date Seller is notified in writing of such unreasonableness of
restriction and such unmarketability of title, to remedy such objections. If Seller resolves such
restrictions and remedies the title (by obtaining satisfactory title insurance or otherwise) within
the time specified, Buyer agrees to complete this sale as herein provided, within ten (10) days of
written notification thereof. If Seller fails to resolve such restrictions or remedy the title within
the time above specified or fails to obtain satisfactory title insurance, this Agreement will be
terminated at Buyer's option. The premium for the owner's title policy shall be paid by Seller.
5. Covenant to Construct Improvements and Use. Buyer acknowledges that, as
part of the consideration inuring to the City, Buyer covenants and agrees to construct on the
premises one single stall garage, up to all codes, within one (1) year of the closing of this
transaction. Buyer may only remove those trees necessary for construction of the garage,
driveway (with any necessary driveway permits being obtained in the Planning Department) and
any work in the City right-of-way (i.e. drive approach) a permit will be obtained in the
Engineering Department. The single stall garage shall be substantially completed within one (1)
year and, in the event said substantial completion has not occurred, or the restriction of this
paragraph relating to tree removal is violated, in the sole judgment of the City, the property and
all improvements then installed shall revert in title to the City, without any compensation or
credit to Buyer.
6. Survey. Buyer at its own expense may obtain a survey of the Premises, and
Buyer or its surveyor or other agents may enter the Premises for that purpose prior to Closing. If
no survey is obtained, Buyer agrees that Buyer is relying solely upon Buyer's own judgment as to
the location, boundaries and area of the Premises and improvements thereon without regard to
any representations that may have been made by Seller or any other person. In the event that a
survey by a registered land surveyor made prior to closing discloses an encroachment or
substantial variation from the presumed land boundaries or area, Seller shall have the option of
effecting a remedy within thirty (30) days after disclosure, or tendering Buyer's deposit in full
termination of this Purchase Agreement, and paying the cost of such survey. Buyer may elect to
purchase the Premises subject to said encroachment or variation.
7. Condition of Premises and Examination by Buyer. NO IMPLIED
WARRANTIES OF HABITABILITY, QUALITY, CONDITION, FITNESS FOR A
PARTICULAR PURPOSE, OR ANY OTHER IMPLIED WARRANTIES SHALL OPERATE
BETWEEN SELLER AND BUYER, AND BUYER EXPRESSLY WAIVES ANY AND ALL
SUCH IMPLIED WARRANTIES. BUYER UNDERSTANDS AND AGREES THAT THE
PREMISES ARE TAKEN "AS IS," SUBJECT TO THE EXPRESS COVENANTS,
CONDITIONS AND/OR EXPRESS WARRANTIES CONTAINED IN THIS PURCHASE
AGREEMENT. BUYER FURTHER SAYS THAT HE HAS PERSONALLY INSPECTED
THE PREMISES AND IS SATISFIED WITH THE CONDITION OF THE LAND, AND THE
BUILDINGS AND IMPROVEMENTS THEREON, AND THAT THE PROPERTY IS BEING
PURCHASED AS A RESULT OF SUCH INSPECTION AND INVESTIGATION AND NOT
DUE TO ANY REPRESENTATIONS MADE BY OR ON BEHALF OF SELLER. SELLER
KNOWS OF NO HAZARDOUS SUBSTANCES OR CONTAMINATION, AND BUYER
WAIVES ANY CLAIM AGAINST SELLER IN THE EVENT SUCH STUBSTANCES ARE
FOUND.
8. Closing. The closing date of this sale shall be held 90 days from City
Commission approval of the sale, more specifically on or before December 18, 2020 ("Closing").
The Closing shall be conducted at TransNation Title Agency, 570 Seminole Rd. Ste. 102,
Muskegon, Michigan 49444. If necessary, the parties shall execute an IRS closing report at the
Closing.
9. Delivery of Deed. Seller shall execute and deliver a quitclaim deed to Buyer at
Closing for the Premises.
10. Affidavit of Title. At the Closing, Seller shall deliver to Buyer an executed
Affidavit of Title.
11. Date of Possession. Possession of Premises is to be delivered to Buyer by Seller
on the date of Closing.
12. Costs. Seller shall be responsible to pay the Michigan transfer tax, if any, in the
amount required by law. In addition, Seller shall be responsible to pay for the recording of any
instrument that must be recorded to clear title to the Premises, to the extent required by this
Agreement.
Buyer shall pay for the cost of recording the deed to be delivered at Closing.
13. General Provisions.
a. Paragraph Headings. The paragraph headings are inserted in this
Agreement only for convenience.
b. Pronouns. When applicable, pronouns and relative words shall be read as
plural, feminine or neuter.
c. Merger. It is understood and agreed that all understandings and
agreements previously made between Buyer and Seller are merged into this Agreement,
which alone fully and completely expresses the agreement of the parties.
d. Governing Law. This Agreement shall be interpreted and enforced
pursuant to the laws of the State of Michigan.
e. Successors. All terms and conditions of this Agreement shall be binding
upon the parties, their successors and assigns.
f. Severability. In case any one or more of the provisions contained in this
Agreement shall for any reason be held to be invalid, illegal, or unenforceable in any
respect, such invalidity, illegality, or unenforceability shall not affect any other provision
of this Agreement, and this Agreement shall be construed as if such invalid, illegal, or
unenforceable provision(s) had never been contained herein.
g. Survival of Representations and Warranties. The representations,
warranties, covenants and agreements contained in this Agreement and in any instrument
provided for herein shall survive the Closing and continue in full force and effect after
the consummation of this purchase and sale.
h. Modification of the Agreement. This Agreement shall not be amended
except by a writing signed by Seller and Buyer.
The parties have executed this Real Estate Purchase Agreement the day and year first
above written.
WITNESSES: SELLER: CITY OF MUSKEGON
_______________________________ By_____________________________________
Stephen J. Gawron, Its Mayor
_______________________________ _______________________________________
Ann Marie Meisch, MMC, Its Clerk
BUYER:
________________________________ _____________________________________
Norma York-Bremer Kirsten A. Bremer, Trustee of the Kirsten A.
Bremer Trust u/a/d June 30, 2020
QUIT-CLAIM DEED
KNOW ALL MEN BY THESE PRESENTS: That the CITY OF MUSKEGON, a Michigan Municipal
Corporation, of 933 Terrace Street, Muskegon, Michigan 49440,
QUIT CLAIMS to KIRSTEN A. BREMER TRUST, a Trust u/a/d June 30, 2020, of 1875 Hoyt Street,
Muskegon, Michigan 49442,
the following described premises situated in the City of Muskegon, County of Muskegon, State of
Michigan, to wit:
CITY OF MUSKEGON PLAT A MUSKEGON HEIGHTS BLOCK 3 LOT 9.
PARCEL # 24-675-003-0009-00
for the sum of Three thousand four hundred fifth dollars ($3,450.00)
PROVIDED, HOWEVER, Grantee, or its assigns, shall obtain issued building permits for construction of
a single stall garage on the premises herein conveyed within one (1) year after the date of closing. In
default of such issued building permits, title to the premises shall revert to the City of Muskegon free and
clear of any claim of Grantee or its assigns. In addition, the City of Muskegon may retain the
consideration for this conveyance free and clear of any claim of Grantee or its assigns. In the event of
reversion of title of the above-described premises, improvements made thereon shall become the property
of Grantor. These covenants and conditions shall run with the land. This property is to be combined with
the owner’s original parcel # 24-675-003-0010-00, otherwise known as 1875 Hoyt Street.
Subject to any easements, use, conditions and provisions of record, if any.
This deed is exempt from real estate transfer tax pursuant to the provisions of MCLA 207.505(h)(i) and
MCLA 207.526 Sec. 6(h)(i).
Dated this 22nd day of September 2020.
Signed in the presence of: CITY OF MUSKEGON
By___________________________
Stephen J. Gawron, Its Mayor
and___________________________
Ann Marie Meisch, MMC, Clerk
STATE OF MICHIGAN
COUNTY OF MUSKEGON
Signed and sworn to before me in Muskegon County, Michigan, on this 22nd day of September,
2020, by STEPHEN J. GAWRON and ANN MARIE MEISCH, MMC, the Mayor and Clerk,
respectively, of the CITY OF MUSKEGON, a municipal corporation, on behalf of the City.
_______________________________________
PREPARED BY: Hope Griffith _______________________, Notary Public
City of Muskegon Acting in the County of _________________,
933 Terrace St Rm 202 __________________________County, MI
Muskegon, MI 49440 My Comm. Expires: ___________________
Telephone: (231) 724-6760
WHEN RECORDED RETURN TO: GRANTEE SEND SUBSEQUENT TAX BILLS TO: GRANTEE
Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: 9/22/20 Title: Jackson Hill, McLaughlin & Angell
Rezoning’s
Submitted By: Mike Franzak Department: Planning
Brief Summary: Staff-initiated request to rezone all single-family (R-1, R-2, R-3) and duplex (RT)
parcels in the McLaughlin, Angell and Jackson Hill neighborhoods to Form Based Code, Urban
Residential (FBC-UR).
Detailed Summary: The Planning Commission voted 8-1 to recommend approval to the City
Commission.
Amount Requested: Amount Budgeted:
Fund(s) or Account(s): Fund(s) or Account(s):
Recommended Motion: To approve the request to rezone all single-family (R-1, R-2, R-3) and
duplex (RT) parcels in the McLaughlin, Angell and Jackson Hill neighborhoods to Form Based
Code, Urban Residential (FBC-UR).
Check if the following Departments need to approve the item first:
Police Dept.
Fire Dept.
IT Dept.
For City Clerk Use Only:
Commission Action:
PLANNING COMMISSION STAFF REPORT EXCERPT - SEPTEMBER 10, 2020
Hearing, Case 2020-15: Staff-initiated request to rezone all single-family (R-1, R-2, R-3) and duplex (RT) parcels in
the McLaughlin, Angell and Jackson Hill neighborhoods to Form Based Code, Urban Residential (FBC-UR).
The zoning in McLaughlin, Angell and Jackson Hill doesn’t match reality.
• Neighborhoods consist of single-family, duplex and small multiplex (3-4
units) homes.
• The zoning says only single-family homes are allowed.
• This makes all homes other than single-family homes “non-
conforming.”
• “Non- conforming” properties are susceptible to disinvestment.
o Financing Issues
o Insurance Issues
o Rebuilding Issues
o Unusable Space
• The proper zoning designation will promote reinvestment within the
neighborhood.
• City staff is proposing to rezone the neighborhood to allow the types of
homes that already exist here, but are considered non-conforming.
• New duplexes/small multiplexes will be built on the appropriate lots and
reduce many of the problems associated with existing multi-family
homes.
• Alleys reduce privacy/noise issues associated with multi-family homes.
We should only allow small-multiplexes where alleys are present.
• More housing options = more affordable housing
We know from the rental maps that these neighborhoods are already made up of missing middle housing types.
So why is the zoning map mostly yellow (single-family) in these neighborhoods?
Form Based Code only allows duplexes/small multiplexes on appropriate lot sizes. Note required lot widths.
So you end up with this
Not this
Proper Zoning
4 unit home (left) on an appropriately sized lot with alley access next to vacant lot and a single-family home (right)
Improper Zoning
3-unit home (below left) on a lot that is too small and without alley access, parking in the yard. And multi-family
homes (below right) with no alley access, using a vacant lot for parking/storage.
Proper Zoning
4-unit homes in McLaughlin on appropriately sized lots with alleys. ADU in the back of parcel on the left.
Improper Zoning
3 unit on small parcel without alley, make-shift parking lot on vacant lot adjacent
Improper Zoning
Former duplex on Isabella. Non-conforming. Sitting vacant. A potential buyer wants to invest, but only if it makes
sense. Not economically feasible to turn back to single-family. Potential ADU in back.
FBC, UR zoning would allow the following home types:
• Detached
• Rowhouse
• Duplex
• Small Multi-plex
• Live/Work
• Carriage House (Accessory Dwelling Unit)
Staff Proposes to Amend the Form Based Code Slightly
• In February, the Commission amended the FBC to state that small multi-plexes could only be “4 unit max,
by right.”
• Staff recommends also adding “only when a useable alley is present.”
This will require all small-multiplexes to be placed on appropriately sized lots with alley access, which will cut
down on privacy/noise/blight issues that are perceived to be associated with multi-family homes. It will also
greatly limit the amount of small multi-plexes allowed on existing lots, ensuring a nice mixture of housing
types.
McLaughlin Lots Eligible for Small-Multiplex Homes Under Proposal
Jackson Hill Lots Eligible for Small-Multiplex Homes Under Proposal
Angell Lots Eligible for Small-Multiplex Homes Under Proposal
CITY OF MUSKEGON
MUSKEGON COUNTY, MICHIGAN
ORDINANCE NO.
An ordinance to amend the zoning map of the City to provide for a zone change for several properties in the Jackson
Hill, McLaughlin and Angell Neighborhoods to Form Based Code, Urban Residential.
THE CITY COMMISSION OF THE CITY OF MUSKEGON HEREBY ORDAINS:
The zoning map of the City of Muskegon is hereby amended to change the zoning for several properties in the Jackson
Hill, McLaughlin and Angell Neighborhoods to Form Based Code, Urban Residential.
This ordinance adopted:
Ayes:
Nayes:
Adoption Date:
Effective Date:
First Reading:
Second Reading:
CITY OF MUSKEGON
By: __________________________
Ann Meisch, MMC
City Clerk
CERTIFICATE
(Rezoning for several properties in the Jackson Hill, McLaughlin and Angell Neighborhoods to FBC, UR)
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 22nd day of September 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 September 22, 2020, the City Commission of the City of Muskegon adopted an
ordinance amending the zoning map to provide for the change of zoning for several properties in the Jackson
Hill, McLaughlin and Angell Neighborhoods to FBC, UR.
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
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