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CITY OF MUSKEGON
CITY COMMISSION MEETING
April 23, 2024 @ 5:30 PM
MUSKEGON CITY COMMISSION CHAMBERS
933 TERRACE STREET, MUSKEGON, MI 49440
AGENDA
☐ CALL TO ORDER:
☐ PRAYER:
☐ PLEDGE OF ALLEGIANCE:
☐ ROLL CALL:
☐ HONORS, AWARDS, AND PRESENTATIONS:
A. SHPO Muskegon County Civil Rights Historic Survey Project Planning
B. Women Veterans Day Resolution Manager's Office
☐ PUBLIC COMMENT ON AGENDA ITEMS:
☐ CONSENT AGENDA:
A. Approval of Minutes City Clerk
B. Relocation of the Muskegon Sports Hall of Fame Arena
C. Burning Foot Camping DPW- Parks and Recreation
D. Health and Dental Care Renewal Finance
E. Powdered Activated Carbon Purchase Public Works
F. Rezoning of properties at Oak Ave / Riley St Planning
G. Amendment to the zoning ordinance - outdoor seating Planning
H. Sale of 1408 Leahy Planning
I. Fireworks for Boys and Girls Club City Clerk
J. American Tower Company Cellular Antenna Renewal Public Works
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☐ PUBLIC HEARINGS:
A. 2024 Annual Action Plan Community & Neighborhood Services
☐ UNFINISHED BUSINESS:
☐ NEW BUSINESS:
A. STR Exemption Appeal - 1450 Nelson Manager's Office
B. Recreational Easement Agreement City of Muskegon & Holy Trinity
Church of God in Christ (Joe Clifford Park) DPW- Parks
C. ARPA Allocation - Parks & Recreation Capital Improvements Manager's
Office
D. Intent to establish PACE district and utilize Lean & Green Michigan as
administrator Planning
E. Amendment to the zoning ordinance - 24-hour marihuana sales
Planning
F. Resolution to Support the Great Lakes St. Lawrence Cities Initiative's
creation of a Mayors' Commission on Economic Transformation
Manager's Office
G. Public Utility (water/sewer) Easement - Adelaide Pointe Manager's
Office
☐ 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.
☐ CLOSED SESSION:
A. Attorney/Client privileged communication Manager's Office
☐ ADJOURNMENT:
AMERICAN DISABILITY ACT POLICY FOR ACCESS TO OPEN MEETINGS OF THE CITY OF
MUSKEGON AND ANY OF ITS COMMITTEES OR SUBCOMMITTEES
To give comment on a live-streamed meeting the city will provide a call-in telephone
number to the public to be able to call and give comment. For a public meeting that is
not live-streamed, and which a citizen would like to watch and give comment, they
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must contact the City Clerk’s Office with at least a two-business day notice. The
participant will then receive a zoom link which will allow them to watch live and give
comment. Contact information is below. For more details, please visit:
www.shorelinecity.com
The City of Muskegon will provide necessary reasonable auxiliary aids and services, such
as signers for the hearing impaired and audio tapes of printed materials being
considered at the meeting, to individuals with disabilities who want to attend the
meeting with twenty-four (24) hours’ notice to the City of Muskegon. Individuals with
disabilities requiring auxiliary aids or services should contact the City of Muskegon by
writing or by calling the following:
Ann Marie Meisch, MMC. City Clerk. 933 Terrace St. Muskegon, MI 49440. (231)724-6705.
clerk@shorelinecity.com
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Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: April 23, 2024 Title: SHPO Muskegon County Civil Rights Historic
Survey Project
Submitted by: Jamie Pesch, Planner Department: Planning
Brief Summary:
The State Historic Preservation Office (SHPO) was awarded a grant from the National Park Service to
identify and study sites of historic significance to the Civil Rights Movement in Muskegon County. Staff
from the City and the SHPO will present some of the findings in the final report as well as the role the
report can play in Muskegon's historic preservation efforts.
Detailed Summary & Background:
In 2020, the Michigan SHPO was awarded a grant to survey Muskegon County Civil Rights sites. The
goal of the project was to document the Black experience in and around Muskegon during the 20th
Century Civil Rights Movement through field survey, research, and interviews. Historically Black
churches and schools, Green Book-listed sites, homes and businesses of prominent local Civil Rights
leaders, and places where Civil Rights demonstrations took place were surveyed. Additional
information and the final report can be reviewed on the project
website: https://www.miplace.org/historic-preservation/programs-and-services/mi-civil-rights-
project/muskegon-civil-rights-sites-survey/
Katie Kolokithas, SHPO Survey Coordinator, will be presenting with Jamie Pesch on a selection of sites
identified and studied in the report.
Goal/Focus Area/Action Item Addressed:
Key Focus Areas:
Goal/Action Item:
2027 GOAL 3: COMMUNITY CONNECTION - More connected and cohesive community
Amount Requested: Budgeted Item:
Yes No N/A X
Fund(s) or Account(s): Budget Amendment Needed:
Yes No N/A X
Recommended Motion:
Approvals: Guest(s) Invited / Presenting:
Immediate Division X
Head Yes
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Information
Technology
Other Division Heads
Communication
Legal Review
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Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: April 23, 2024 Title: Approval of Minutes
Submitted by: Ann Meisch, City Clerk Department: City Clerk
Brief Summary:
To approve the minutes of the April 8, 2024 Worksession Meeting and the April 9, 2024 Regular
Commission Meeting.
Detailed Summary & Background:
Goal/Focus Area/Action Item Addressed:
Key Focus Areas:
Goal/Action Item:
Amount Requested: Budgeted Item:
Yes No N/A
Fund(s) or Account(s): Budget Amendment Needed:
Yes No N/A
Recommended Motion:
Approve the minutes.
Approvals: Guest(s) Invited / Presenting:
Immediate Division
Head No
Information
Technology
Other Division Heads
Communication
Legal Review
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CITY OF MUSKEGON
CITY COMMISSION MEETING
April 9, 2024 @ 5:30 PM
MUSKEGON CITY COMMISSION CHAMBERS
933 TERRACE STREET, MUSKEGON, MI 49440
MINUTES
CALL TO ORDER
The Regular Commission Meeting of the City of Muskegon was held at City Hall, 933
Terrace Street, Muskegon, Michigan at 5:30 PM, Tuesday, April 9, 2024. Mayor Johnson
opened the meeting with prayer delivered by Pastor Bill Uetricht from First Lutheran
Church, after which the Commission and public recited the Pledge of Allegiance to
the Flag.
ROLL CALL
Present: Mayor Ken Johnson, Vice Mayor Rebecca St. Clair, Commissioners Destinee
Keener, Jay Kilgo, and Rachel Gorman . City Manager Jonathan Seyferth, Assistant City
Attorney Will Meier, and Deputy City Clerk Kimberly Young
Absent: Commissioner Willie German, Jr., and Katrina Kochin
2024-31 HONORS, AWARDS, AND PRESENTATIONS
A. Introduction of New Staff to Community and Neighborhood Services- Alicia
Petty Community & Neighborhood Services
Community Neighborhood Services Director Sharonda Carson introduced new staff
member Alicia Petty.
PUBLIC COMMENT ON AGENDA ITEMS
Public comment was received.
2024-32 CONSENT AGENDA
Motion by Commissioner Gorman, second by Vice Mayor St.Clair, to approve the
consent agenda minus items B and K.
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ROLL VOTE: Ayes: Gorman, St.Clair, Johnson, Kilgo, and Keener
Nays: None
MOTION PASSES
A. Approval of Minutes City Clerk
To approve the minutes of the March 26, 2024, Regular Commission Meeting.
STAFF RECOMMENDATION: Approve the minutes.
C. Sale of 1962 & 1992 Brunswick to Newkirk Electric. Planning
Staff is seeking authorization to sell the City-owned vacant lots at 1962 & 1992 Brunswick
to Newkirk Electric. Newkirk Electric would like to purchase the City-owned buildable
lots, 1962 & 1992 Brunswick, for $25,875.00 (75% of the True Cash Value of $4,500 and
$30,000 respectively) plus half of the closing costs and the fee to register the deed.
Newkirk Electric will be constructing additional fencing for outdoor storage on the
property.
STAFF RECOMMENDATION: Authorize the Code Coordinator to complete the sale of
1962 & 1992 Brunswick, as described in the purchase agreement, with a condition being
added that closing be delayed until approved landscaping is complete, and to have
the Mayor and Clerk sign the purchase agreement.
D. Aggregates, Maintenance Materials & Concrete Public Works
Staff requests award of supply of aggregates, highway maintenance materials and
ready-mixed concrete for 2024 to selected bidders. Bids were solicited for aggregates,
highway maintenance materials and ready-mixed concrete for purchase in 2024.
Purchases will be made from the recommended bidders. Purchases are contingent
upon product availability, timely deliveries, and prices as quoted.
AMOUNT REQUESTED: Variable
FUND OR ACCOUNT: 101, 202, 203, 590, 591
STAFF RECOMMENDATION: Award bids for aggregates, highway maintenance materials
and ready-mixed concrete purchases for 2024 as presented.
E. Trinity Health Arena Facility Upgrades (Locker-rooms A & E) Arena
Staff will be seeking approval to construct new public locker-room space and storage
improvements at the Trinity Health Arena.
At the February 13, 2024, commission meeting, the Lumberjacks received approval to
renovate their business offices, locker-room and medical space. The project will provide
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the team with the best amenities and continued success in player recruitment while also
assisting in ADA upgrades and forfeiting storage and office space back to arena staff.
The Lumberjacks will incur the expense of those project costs.
As a result of the Lumberjacks project, the Arena will need to reallocate space taken by
the team. Locker room A will be repurposed for Arena storage and Locker room E will
be converted to a larger and suitable space to accommodate the loss of Locker room
A.
The modifications to the two arena locker rooms would ideally be made when the
Lumberjacks start their $2.5M renovation project. Transitioning Locker room A into
storage provides approximately 450 square feet of much-needed on-site storage and
addresses the liability of the current practice of transporting flooring, turf and stages
across Shoreline Dr. The team has offered to pay for the demolition of Locker-room A as
part of their scope of work.
The arena has three other suitable locker rooms, in B, C, and D. Locker-room E is much
smaller and currently cannot accommodate a full team. Staff are developing plans to
renovate locker-room E at a cost of approximately $145,000. This would add additional
square footage, restrooms, and seating, including bringing this lower level to ADA
standards. Locker room E can be completed by August. The fund source for the locker-
room E project will come from the $1M which was reallocated as part of the MEDC
Revitalization and Placemaking (RAP) 1.0 grant program.
Staff has been working to develop a long-term solution to three downtown issues: large-
capacity public restrooms for special events and daily visitors, ADA egress from the west
side of the arena, and capacity to replace the arena’s storage that was lost in a
windstorm in 2015.
Renovation of these locker-rooms is part of a continuous Capital Improvement Plan. In
2023, the city improved ADA access from Western Ave using the small alleyway
between the arena and the CIO Hall. The walkway now consists of a ramp connecting
Western Ave to the egress doors on the Arena’s western façade. As part of the ramp
construction, barrier-free entry now exists to the arena’s new restrooms directly from the
exterior of the facility. Additionally, as part of the new ramped egress, a storage area
approximately 20 feet x 25 feet was created to help store important arena assets like
football/soccer turf, floor coverings, etc. The project also included replacing the
stormwater, sanitary sewers, and water mains in the alley. The City's ARPA funds were
used for the non-utility improvements, and the utility funds for the corresponding utility
improvements.
AMOUNT REQUESTED: $145,000
FUND OR ACCOUNT: RAP 1.0 Reimbursement
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STAFF RECOMMENDATION: Approve construction of the new public locker-room space
and storage improvements at the Trinity Health Arena.
F. Muskegon County Intergovernmental Joint Bidding Agreement for Traffic Signal
Maintenance Public Works
Staff is requesting approval to sign an Intergovernmental Agreement for Traffic Signal
Maintenance. This is a three-year contract with a one-year extension, with the
Muskegon County Road Commission, along with other municipalities from April 18, 2024
through April 30, 2027 with Windemuller Electric, Inc as the traffic signal maintenance
contractor. The agreement calls for MCRC to administer the project and charge the
participating agencies 15% overhead. The local agencies included in the Muskegon
County Signal Maintenance Group are Muskegon, North Muskegon, Norton Shores,
Roosevelt Park, and MDOT.
FUND OR ACCOUNT: Fund 202 Major Streets
STAFF RECOMMENDATION: Authorize staff to sign a three year contract with a potential
one year extension with the Muskegon County Road Commission for traffic signal
maintenance.
G. Sale of 435 Monroe Avenue, Muskegon, MI 49441 Community & Neighborhood
Services
To approve CNS Director, Sharonda Carson, to sell 435 Monroe Ave. Muskegon MI
49441. CNS would like to sell 435 Monroe Ave. Muskegon MI 49441 for $210,000.00. This
home was formally purchased around 20 years ago and rehabbed to be utilized for low
income housing rental property for low-income families. The home was under a period
of affordability for 10 years while being a rental and the family was given the
opportunity to purchase and own home but declined the offer. CNS has chosen to sell
the home to reinvest proceeds from the sale into other programs.
FUND OR ACCOUNT: HOME 2022/2023
STAFF RECOMMENDATION: Approve CNS staff to sell 435 Monroe Avenue, Muskegon MI
49441.
H. Entity Name Update for Allen Edwin PILOT Agreement Economic Development
Our existing approved Payment In Lieu of Taxes agreement with Allen Edwin Homes
must be amended to reflect the new corporate entity they will be utilizing for their infill
housing here in Muskegon. Allen Edwin's Director of Infill Housing Brian Farkas, has
requested that we update our existing approved documents that establish the 36 home
PILOT development they are completing in our community. The reason for the request is
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clerical, as they have started a project-specific LLC for the homes in Muskegon. The
restrictive covenant is identical, save for the entity name change and the effective
date.
STAFF RECOMMENDATION: Approve the Workforce Housing Restrictive Covenant
between the City of Muskegon and SDI WFH MUSKEGON, LLC as presented and to
authorize the Mayor and Clerk to sign.
I. Resolution for Allen Edwin Infill Housing Project (Updated Entity Name)
Economic Development
A new resolution by the City Commission is required due to the changing business entity
that Allen Edwin Homes is using for the infill housing project in our community. The only
changes to this resolution from the approved version is the entity name reflecting the
project-specific LLC that Allen Edwin Homes is using for the Muskegon infill housing
project.
STAFF RECOMMENDATION: Approve the Resolution Setting Annual Service Fee for the
Workforce Housing Development by SDI WFH MUSKEGON, LLC as presented and to
authorize the Mayor and Clerk to sign.
J. Liquid Sodium Hypochlorite Contract DPW- Water Filtration Plan
Staff is requesting authorization to purchase liquid sodium hypochlorite from Webb
Chemical. The Water Filtration Plant uses sodium hypochlorite in the production of
drinking water. The application of sodium hypochlorite is one of several crucial
processes used to inactivate or remove pathogens from the water. Since 1996, the
Water Filtration Plant has solicited competitive bids for water treatment chemicals jointly
with the cities of Grand Haven, Grand Rapids, Holland, Muskegon Heights, and
Wyoming. The City of Grand Rapids manages this bidding process and holds the master
agreement.
Bids were solicited for a one-year contract with the option to renew for two additional
one-year terms. Webb Chemical’s bid has no price increases for the one-year duration
of the contract and is overall the cheapest bidder. Webb Chemical is a local supplier to
Muskegon County and has supplied the cooperative with liquid sodium hypochlorite in
the past. Staff recommends we continue with cooperative and approve Webb
Chemical as our supplier.
1-Year ($/ton)
Alexander Chemical Corp 387.23
JCI Jones Chemicals Inc 374.14
Rowell Chemical 447.00
Webb Chemical Service Corp 366.00
The Water Filtration Plant has used an average of 450 tons of liquid sodium hypochlorite
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the previous three fiscal years. Under the new contract this amount would cost
$164,700.00 for the one-year contract, this is approximately a 30% reduction from our
current contract. Liquid sodium hypochlorite is included in the budget, but the actual
amount spent will depend on water demand and source water quality.
AMOUNT REQUESTED: $164,700.00 (estimate)
FUND OR ACCOUNT: 591-558-739
STAFF RECOMMENDATION: Authorize staff to participate in the treatment plant purchase
cooperative and purchase liquid sodium hypochlorite from Webb Chemical.
L. Equipment Purchase – Fleet Vehicles DPW- Equipment & Sanitation
Staff requests approval to purchase five Chevrolet Equinox vehicles. The Equipment
Division is seeking approval to purchase five administration vehicles from Berger
Chevrolet through the MiDEAL contract. Four of these vehicles will be replacements for
current fleet vehicles. These four vehicles will be paid for with the Equipment Fund, using
funds budgeted for vehicle purchases. One of these vehicles will be a new purchase for
the new Parks Ranger position that will be paid for by the Parks Department using ARPA
funds.
AMOUNT REQUESTED: $146,705.00
FUND OR ACCOUNT: 661-563-978 ($116,807 - Equipment Fund)
482-901-735-092339 ($29,898 - Parks Dept. ARPA Fund)
STAFF RECOMMENDATION: Authorize staff to proceed with the purchase of five
Chevrolet Equinox vehicles from Berger Chevrolet.
M. Equipment Purchase - Trailers DPW- Equipment & Sanitation
Staff is requesting approval to purchase three trailers for the Equipment Division.
The first trailer purchase will be a new Low Boy trailer used for hauling heavy equipment
to and from job sites. It will replace our current Low Boy trailer that has been retired. Four
bids were received, and staff recommends the low bid of $49,080 from Kaufman Trailer.
Low Boy Trailer Bids
Kaufman Trailer $49,080
WM International $58,900
Pace Transportation$65,492
Michigan CAT $76,527
The other two equipment trailers will be used for transporting smaller equipment to and
from job sites. Three bids were received: two for Sure-Trac trailers and one for a
Diamond trailer. The Equipment Division already owns one Sure-Trac equipment trailer
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and has found it to suit our needs perfectly. Staff is recommending the low bid of
$27,400 from Grandville Trailer for the purchase of two Sure-Trac trailers.
Equipment Trailer
Dealer Trailer Price
Grandville TrailerSure-Trac $27,400
Holland Trailer Sure-Trac $27,790
Holland Trailer Diamond $30,482
The purchase of all three trailers for $77,080 is budgeted for this fiscal year as part of the
equipment purchase fund.
AMOUNT REQUESTED: $77,080
FUND OR ACCOUNT: 661-563-977
STAFF RECOMMENDATION: Authorize staff to proceed with the purchase of a Low Boy
trailer from Kaufman Trailer and two Sure-Trac trailers from Grandville Trailer.
N. Asset Management Software DPW- Water Filtration Plan
Staff requests authorization to enter into a contract with OpenGov for a three-year
subscription, along with setup services, to implement an asset management software
system for the Water Filtration Plant.
For years, the Water Filtration Plant has relied on a mix of staff experience, paper
documents, and a variety of electronic documents to track water plant assets and
maintenance activities. Due to the large number of assets and complex maintenance
tasks performed by staff at the Water Filtration Plant, this method has proven to be
inadequate.
Two departments within DPW have already begun the process of using Cartegraph, an
asset management program designed for public works. The staff of the Water Filtration
Plant is excited to be the third department to bring Cartegraph on board. Water
Filtration Plant staff believe that Cartegraph will modernize the maintenance of the
Water Filtration Plant assets, improve reliability, and permit staff to become more
efficient, proactive, and proficient.
This is a 3-year contract for software services with the first year prorated for a 7-month
period. This will permit the Water Filtration contract to renew on 11-27-2024, which is the
same time other DPW departments are due for renewal.
Year 1 (04-27-2024 to 11-26-2024)$7,230.42
Year 2 (11-27-2024 to 11-26-2025)$12,395.00
Year 3 (11-27-2025 to 11-26-2026)$13,014.75
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There will be additional one-time costs this fiscal year of $23,370 for professional services
and $2,400 for travel and expenses related to training. This cost will be for Cartegraph
staff to help the Water Filtration Plant implement the software and develop
customizations that will assist our operations.
AMOUNT REQUESTED: FY 23: 33,000.42
FY 24: 12,395.00
FY 25: 13,014.75
FUND OR ACCOUNT: 591-558
STAFF RECOMMENDATION: Approve staff to enter into a contract with OpenGov for a
three-year subscription and setup services to implement an asset management
software system for Water Filtration Plant assets.
O. Easement Modification for former Giddings Right of Way Economic
Development
Platinum Construction has an approved site plan to build for-sale commercial storage
condos on vacant property on Ottawa Street, but a former Giddings St. Right of Way
Easement is in the way of one of the units. For over a year, Platinum Construction has
been working on a project to construct new storage facilities on Ottawa Street,
including city-owned lots that they have purchased. They have an approved site plan
and are ready to receive construction permits, but before they finalize the project there
is an easement area that must be adjusted. Their architect/engineer Feelstra has
worked with Parmenter Law to create the necessary language to be recorded pending
Commission approval.
STAFF RECOMMENDATION: Approve the resolution amending street vacation as
presented, and authorize the mayor and clerk to sign.
P. City Manager Evaluation Process City Clerk
A committee of three Commissioners met on March 19, 2024 to review the current City
manager evaluation process adopted in 2008. The committee created a more
simplified review process with eight questions to be scored. The committee, comprised
of three Commissioners, is recommending that Department Heads be asked to answer
questions 1, 2, 4, 5, 6, and 8 anonymously and the public be asked to answer questions
1, 2, 3, and 4 anonymously. After discussion at the Worksession meeting on April 8, 2024 it
is not recommended to solicit public responses for this year, but to plan to do so in the
future. These evaluations are to be provided to commissioners before they conduct
their own evaluation of the City Manager.
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STAFF RECOMMENDATION: Adopt the new format for the City Manager evaluation and
direct the City Clerk to send out an anonymous questionnaire to Department Heads as
outlined above.
2024-33 ITEMS REMOVED FROM CONSENT
B. Sale of 704 Leonard - Vacant Unbuildable Lot Planning
The vacant lot at 704 Leonard is not economically feasible to build on. 704 Leonard is
adjacent to 716 Leonard, recently purchased by Robin Atkin. The builder (Rudy Briggs)
for 716 Leonard has provided a statement certifying that the property at 704 Leonard is
not suitable for construction purposes. Following the current lot sale policy for non-
buildable lots, we would like to sell 704 Leonard to the homeowner of 716 Leonard for
$1, plus the fee to record the deed with the Muskegon County Register of Deeds.
STAFF RECOMMENDATION: Authorize the Code Coordinator to complete the sale of 704
Leonard and to have the Mayor and Clerk sign the deed.
Motion by Commissioner Kilgo, second by Vice Mayor St.Clair, to authorize the Code
Coordinator to complete the sale of 704 Leonard and to have the Mayor and Clerk sign
the deed.
ROLL VOTE: Ayes: Gorman, St.Clair, and Keener
Nays: Johnson and Kilgo
MOTION DID NOT PASS
K. Parks Capital Improvement Plan Draft & Master Plan Survey Results DPW- Parks
The City of Muskegon Parks & Recreation Department is submitting updated survey
results and a capital improvement plan to be used to update our 2022 Parks &
Recreation Master Plan. The department has a budget of $6.1 million for these
improvements.
The Parks & Recreation Department is proposing an amendment to the 2022 Parks &
Recreation Master Plan with an update to the survey/community engagement &
capital improvement plan. During the summer and fall of 2023, the Parks & Recreation
team launched a broad engagement plan that focused on a survey through our
Community Engagement Hub. We used this information, along with national park
standards and our equity-centered capital improvement plan, to prioritize how the
ARPA funds that were devoted to park improvements would be spent. This list is not the
only improvements that will be seen in our parks, but this is how we plan to use the $6.1
million that the City of Muskegon Commission approved to be devoted to the park
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improvement plan in a 2022 commission meeting.
This information was vetted through the Parks & Recreation advisory committee and
after months of discussions this document is ready to seek commission approval.
All individual purchases & contracts will follow City of Muskegon procurement policies.
FUND OR ACCOUNT: 482 ARPA Funds
STAFF RECOMMENDATION: Authorize staff to update the parks & recreation master plan
with the addition of the engagement results and the adoption of the capital
improvement plan.
Motion by Vice Mayor St.Clair, second by Commissioner Gorman to authorize staff to
update the parks & recreation master plan with the addition of the engagement results
and the adoption of the capital improvement plan.
ROLL VOTE: Ayes: Gorman, St.Clair, Johnson, Kilgo, and Keener
Nays: None
MOTION PASSES
2024-34 NEW BUSINESS
A. Water & Sewer Rate Changes Public Works
Staff requests adoption of the two included resolutions setting water and sewer rates for
the fiscal year from July 1, 2024 to June 20, 2025. On April 8, 2024, staff presented a
synopsis of the water system finances, including that the water system is in debt to other
City funds by over $2,000,000 at the close of the 22-23 fiscal year. This is due to
increasing labor and material costs and capital-intensive repairs to the system.
Staff is recommending no changes to the sewer rates, except for the updated debt
service fee as described below. Staff recommends a 10% increase in the water
commodity rate from $2.06 per unit to $2.27 per unit, and recommends the updated
debt service fee described below.
This is the second year of the debt service fee, and the first time it will be updated on an
annual basis. This fee, when combined from all accounts, represents the total amount
of debt paid in the prior fiscal year (for example, the fee proposed at this time will
reimburse the system for the debt paid in the fiscal year ending June 30, 2023). Each
year, staff will make an accounting of the amount of debt paid by each of the systems
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and will present adjustments to the fee for consideration by the Commission. This will
more directly tie the projects the City performs to the amount of the water bill, and will
allow the fee to be reduced as certain bonds or other debts fall off of the system books.
The fee is distributed on a meter equivalency basis, meaning a typical residential
account will pay the fee at a rate of “one,” while commercial and industrial accounts
will pay the fee at a potentially higher rate depending on the size of their water meter.
Irrigation accounts will not pay the fee, assuming they are tied to a domestic water
account at the same address. Attached is a breakdown of the meter equivalency
calculations using factors from the American Water Works Association (AWWA). The
water system paid $1,177,421 in debt payments for the fiscal year ending June 30, 2023,
and the sewer system paid $399,455 for the same period. Using the attached chart, the
fee will be $5.94 per month for a residential account on the water system, and $2.02 per
month for a residential account on the sewer system. This represents a $0.52 decrease
in the combined debt service fees compared to the current fees.
City Code states that the City Commission sets the water and sewer rates by resolution.
The resolutions will establish the rates and fees, effective July 1, 2024.
FUND OR ACCOUNT: 590 (Sewer) and 591 (Water)
STAFF RECOMMENDATION: Adoption of the two resolutions setting water and sewer
rates for the fiscal year from July 1, 2024 to June 30, 2025.
Motion by Commissioner Kilgo, second by Vice Mayor St.Clair, to adopt the two
resolutions setting water and sewer rates for the fiscal year from July 1, 2024 to June 30,
2025.
ROLL VOTE: Ayes: Gorman, St.Clair, Johnson, Kilgo, and Keener
Nays: None
MOTION PASSES
B. Froebel School Access and Construction Agreement with Muskegon County
Land Bank Economic Development
City Staff, Land Bank staff, and Samaritas have partnered to achieve a $1.4 million grant
to improve Froebel School, and we need a legal agreement as the owner allowing
other entities to conduct work there before the grant funds can be assigned. The City
has worked with the County Land Bank and Samaritas to apply for and received an
award of $1.4 million dollars to conduct hard cost improvements to the Froebel School
facility in anticipation of it being a LIHTC affordable housing candidate to MSHDA in
October of this year. While the City Commission has already approved a sale of the site
to Samaritas contingent on the award of tax credits, we remain the owner until that
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process is complete. As the fiduciary of the grant funds, the County Land Bank will retain
Samaritas/Pinnacle Construction to conduct the improvements to the building, and we
need to have a formal access agreement allowing them to do so. Improvements are to
be determined after a formal assessment, but are likely to include a new roof as well as
some environmental abatement and potentially new window systems.
STAFF RECOMMENDATION: Approve the Access Agreement between the City of
Muskegon and the Muskegon County Land Bank as presented, and to authorize the
Mayor and Clerk to sign.
Motion by Commissioner Kilgo, second by Commissioner Keener, to approve the
Access Agreement between the City of Muskegon and the Muskegon County Land
Bank as presented, and to authorize the Mayor and Clerk to sign.
ROLL VOTE: Ayes: Gorman, St.Clair, Johnson, Kilgo, and Keener
Nays: None
MOTION PASSES
C. Equipment Purchase - Plow Truck DPW- Equipment & Sanitation
Staff is requesting approval to purchase a replacement plow truck. This plow truck will
be purchased to replace one of the existing plow trucks in the equipment fleet. The cab
and chassis for this truck will be purchased through the Sourcewell contract for $115,000
from West Michigan International. The build of the box and underbody scraper blade
will be done by Truck and Trailer Specialties for a price of $92,681 under the MiDEAL
contract.
The total cost of $207,681 will be paid for with funds budgeted in the upcoming fiscal
year (2024-25). By ordering the plow truck now, we avoid an upcoming 5% increase on
the cab/chassis price and ensure the availability of the truck for next winter.
AMOUNT REQUESTED: $207,681.00
FUND OR ACCOUNT: 661-563-978
STAFF RECOMMENDATION: Authorize staff to purchase a new plow truck through West
Michigan International and Truck and Trailer Specialties.
Motion by Vice Mayor St.Clair, second by Commissioner Keener, to authorize staff to
purchase a new plow truck through West Michigan International and Truck and Trailer
Specialties.
ROLL VOTE: Ayes: Gorman, St.Clair, Johnson, Kilgo, Keener
Nays: None
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MOTION PASSES
D. Playground surfacing and installation for Margaret Drake Elliot, Sheldon &
McCrae Park. DPW- Parks
In October 2023 we applied and were awarded a grant for new playground equipment
at four parks, Margaret Drake Elliot, St. Joseph, McCrae and Sheldon Park. The
equipment was 50% off but surfacing and installation was not purchased at that time.
Now we have quotes for all of these installations and seek commission approval.
In October 2023 we applied and were awarded a matching grant through GameTime
for new playground equipment at four parks: Margaret Drake Elliot, St. Joseph, McCrae
and Sheldon Park. The equipment was 50% off but surfacing and installation was not
purchased at that time, with the exception of St. Joseph's. Now we have quotes for all
of these installations and seek commission approval. We would like to select Sinclair
Recreation due to their cost and quality. Their installation team can begin mid-May and
would start with Margaret Drake Elliot Park.
Sinclair Recreation: $245,758.00
MRC: $271,200.00
DWA: $273,005.00
AMOUNT REQUESTED: $245,758.00
FUND OR ACCOUNT: 482
STAFF RECOMMENDATION: Authorize staff to contract with Sinclair Recreation for
installation and surfacing for 3 new playground structures.
Motion by Vice Mayor St.Clair, second by Commissioner Kilgo, to authorize staff to
contract with Sinclair Recreation for installation and surfacing for 3 new playground
structures.
ROLL VOTE: Ayes: Gorman, St.Clair, Johnson, Kilgo, and Keener
Nays: None
MOTION PASSES
ANY OTHER BUSINESS
City Manager Jonathan Seyferth commented that the brand survey is available in
Spanish on the website and closes on April 19.
He also mentioned the DDA discussion on participation in social district; presentation
coming in the future.
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Commissioner Kilgo recognized sexual assault and awareness prevention month and
Fair Housing month as well.
Commissioner Keener commented that the park near her house is now the City’s.
Looking into cogic and there is a newly signed agreement. Will park be cleaned up?
Kyle Karczewski responded they are applying for an easement.
Commissioner Gorman stated his thanks for great communication efforts.
Vice Mayor St.Clair made a reminder to apply for vacancies to City boards and
commissions.
PUBLIC COMMENT ON NON-AGENDA ITEMS
Public comment was received.
ADJOURNMENT
Motion by Commissioner Kilgo, second by Vice Mayor St.Clair, to adjourn at 6:58 p.m.
MOTION PASSED
Respectfully Submitted,
Ann Marie Meisch, MMC City Clerk
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CITY OF MUSKEGON
CITY COMMISSION WORKSESSION
April 8, 2024 @ 5:30 PM
MUSKEGON CITY COMMISSION CHAMBERS
933 TERRACE STREET, MUSKEGON, MI 49440
MINUTES
2024-30 CALL TO ORDER
The work session meeting of the City of Muskegon was held at City Hall, 933
Terrace Street, Muskegon, Michigan at 5:30 PM, Monday, April 8, 2024.
Present: Mayor Ken Johnson, Vice Mayor Rebecca St. Clair, Commissioners Willie
German, Jr., Jay Kilgo, and Rachel Gorman
Absent: Commissioners Katrina Kochin and Destinee Keener
NEW BUSINESS
A. Water Fund Revenue Public Works
Department Director VanderHeide presented information about the water fund
and the need to raise revenue. The water fund is in a deficit position due to
several factors, including increased investment in the water system and
increased expenses associated with post-COVID supply chain and labor
challenges. Staff presented the state of the water fund, some of the factors
that are impacting water system expenses, and provided a recommendation
for increased revenue. The proposed changes to the rates will be on the
regular meeting agenda at the April 9, 2024 Commission Meeting.
STAFF RECOMMENDATION: Proposed changes to the rates will be added to the
regular City Commission meeting agenda of April 9, 2024.
B. Trinity Health Arena Facility Upgrades (Locker-rooms A & E) Arena
Trinity Health Arena Manager Jake Laime shared that, as a result of the
Lumberjacks' renovation project, the arena needs to reallocate space taken by
the team. Locker Room A will be repurposed for arena storage and Locker
Room E will be converted to a larger and suitable space to accommodate the
loss of Locker Room A.
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The modifications to the two arena locker rooms would ideally be made when
the Lumberjacks start their $2.5M renovation project. Transitioning Locker Room
A into storage provides approximately 450 square feet of much-needed on-site
storage and addresses the liability of the current practice of transporting
flooring, turf and stages across Shoreline Drive. The team has offered to pay for
the demolition of Locker Room A as part of their scope of work.
The arena has three other suitable locker rooms, in B, C, and D. Locker Room E is
much smaller and currently cannot accommodate a full team. Staff is
developing plans to renovate Locker Room E at a cost of approximately
$135,000. This would add additional square footage, restrooms, and seating,
including bringing this lower level to ADA standards. Locker Room E can be
completed by August. The fund source for the Locker Room E project will come
from the $1 million which was reallocated as part of the MEDC Revitalization
and Placemaking (RAP) 1.0 grant program.
Staff has been working to develop a long-term solution to three downtown
issues: large-capacity public restrooms for special events and daily visitors, ADA
egress from the west side of the arena, and capacity to replace the arena’s
storage that was lost in a windstorm in 2015.
Renovation of these locker rooms is part of a continuous Capital Improvement
Plan. In 2023, the city improved ADA access from Western Ave using the small
alleyway between the arena and the CIO Hall. The walkway now consists of a
ramp connecting Western Ave to the egress doors on the Arena’s western
façade. As part of the ramp construction, barrier-free entry now exists to the
arena’s new restrooms directly from the exterior of the facility. Additionally, as
part of the new ramped egress, a storage area approximately 20 feet x 25 feet
was created to help store important arena assets like football/soccer turf, floor
coverings, etc. The project also included replacing the stormwater, sanitary
sewers, and water mains in the alley. The City's ARPA funds were used for the
non-utility improvements, and the utility funds for the corresponding utility
improvements.
AMOUNT REQUESTED: $135,000
FUND OR ACCOUNT: RAP
STAFF RECOMMENDATION: Proceed with renovations at the Trinity Health Arena
in conjunction with the Lumberjacks' business office, locker room and medical
space renovations. The project will result in improved amenities and continued
success in player recruitment while also assisting in ADA upgrades. The updates
will bring storage and office space back into City/Arena use due to the projects
paid at the Lumberjacks expense.
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C. Parks Capital Improvement Plan Draft & Master Plan Survey Results
DPW- Parks
Parks and Recreation Department Director Kyle Karczewski proposed an
amendment to the 2022 Parks & Recreation Master Plan to include updated
survey/community engagement information and Capital Improvement Plan.
During the summer and fall of 2023, the Parks & Recreation team launched a
broad engagement plan that focused on a survey through the Community
Engagement Hub. This information, along with national park standards and our
equity-centered capital improvement plan, was used to prioritize how the ARPA
funds dedicated to park improvements would be used. A list was of
improvements that will be seen in our parks and a description of how the $6.1
million that the Commission set aside for park improvements at a 2022
commission meeting was presented.
This information was vetted through the Parks & Recreation Advisory Committee
and, after months of discussion, the document is ready for Commission
approval.
All individual purchases & contracts will follow City of Muskegon procurement
policies.
STAFF RECOMMENDATION: Authorization to update the Parks & Recreation
Master Plan with the addition of the community engagement information and
adoption of the Capital Improvement Plan.
D. City Manager Evaluation Process City Clerk
A committee of three Commissioners was created to review the evaluation
format for the position of City Manager. The Committee edited previous
evaluation questions and determined that anonymous input by Department
Heads and citizens be collected and submitted to the Commission before
conducting their evaluation of the City Manager. Commission members agreed
that there is not time this year to collect citizen input and asked for a list of
Department Head staff that would be asked to submit input.
STAFF RECOMMENDATION: Update some of the proposed verbiage for grammar
and clarification and adopt a new City Manager evaluation format that
includes the City Clerk sending an anonymous questionnaire to Department
Heads in 2024 which will be delivered to the Commission for review and
consideration prior to evaluation of the City Manager.
E. Downtown Muskegon Social District Expansion Community Engagement
Debra Sweet, Community Engagement Director, shared with Commissioners
information related to the opening of the Downtown Muskegon Social District in
2020 which has been serving patrons throughout downtown since that time.
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Establishments outside the current district are interested joining the social district
and Ms. Sweet presented a proposed expansion to the current social district.
Commission members discussed the areas of proposed expansion into the
existing district and, also, suggested designating additional districts by area over
expanding the current district to include interested establishments.
STAFF RECOMMENDATION: The Community Engagement Director will amend the
proposed social district expansion based on the Commission's input and
resubmit the request at a later time.
PUBLIC COMMENT
Public comment was received.
ADJOURNMENT
Meeting adjourned at 8:50 p.m.
Respectfully Submitted,
Kimberly Young, Deputy City Clerk
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Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: April 23, 2024 Title: Relocation of the Muskegon Sports Hall of
Fame
Submitted by: Jake Laime, Arena Manager Department: Arena
Brief Summary:
Relocate the Muskegon Sports Hall of Fames leased space to the interior wall of the arena
concourse.
Detailed Summary & Background:
In October 2021, the Commission passed a 5-year lease for the Muskegon Sports Hall of Fame to
occupy space inside Trinity Health Arena. This space was to be re-allocated to the HOF when
everything was removed during the original arena renovation projects. For several years, the arena
and the HOF have worked together to accomplish the goal of re-creating what was lost. There have
been several attempts, but the timing and space just never seemed right with continued upgrades to
the arena's interior spaces. Staff and the Muskegon Sports Hall of Fame would like to relocate the
space to occupy the interior wall on the arena concourse. The relocation will better serve the HOF,
add value to the interior concourse, and help repair and finish the current wall. The HOF will incur
costs associated with the design, paneling, and installation. Arena staff coordinated with Deborah
Santiago-Sweet to install a 4ft protective sheeting on the floor level to protect the wall from any
damage during events. This 4ft sheeting will be branded with the new City of Muskegon branding
standards.
Goal/Focus Area/Action Item Addressed:
Key Focus Areas:
To approve the relocation of the Muskegon Sports Hall of Fame from the arenas exterior concourse,
to the arenas interior concourse.
Goal/Action Item:
2027 GOAL 3: COMMUNITY CONNECTION - More connected and cohesive community
Amount Requested: Budgeted Item:
$2,250.000 Yes X No N/A
Fund(s) or Account(s): Budget Amendment Needed:
254 and 101-103-902 Yes No X N/A
Recommended Motion:
To approve the relocation of the Muskegon Sports Hall of fame to occupy the interior wall of the
arena concourse.
Approvals: Guest(s) Invited / Presenting:
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Immediate Division X
Head Yes
Information
Technology
Other Division Heads X
Communication X
Legal Review X
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Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: April 23, 2024 Title: Burning Foot Camping
Submitted by: Jacqui Erny, Admin Department: DPW- Parks and Recreation
Brief Summary:
The Burning Foot event organizers are requesting approval to allow camping on Pere Marquette
beach on August 24, 2024 and amend the camping fee to 10% of the camping revenue instead of
$20 per tent.
Detailed Summary & Background:
Burning Foot is returning to Pere Marquette on August 24, 2024. In the past, camping has been
allowed south of the bathhouse and some RVs at Margaret Drake Elliott Park. There could be up to
300 tent sites and 30 RV campsites. Current policy states approval must be given by City Commission
to have camping at an event. Policy also states the City Commission may opt to collect a
percentage of camping revenue for larger event in lieu of $20 per night per camper or tent. 10% of
camping revenue is proposed this year instead of the $20 per night per camper.
Goal/Focus Area/Action Item Addressed:
Key Focus Areas:
Goal/Action Item:
2027 Goal 1: Destination Community & Quality of Life
Amount Requested: Budgeted Item:
NA Yes No N/A X
Fund(s) or Account(s): Budget Amendment Needed:
NA Yes No N/A X
Recommended Motion:
To authorize Burning Foot to provide camping at Pere Marquette on August 24, 2024 and accept 10%
of their camping revenue as a fee to the City.
Approvals: Guest(s) Invited / Presenting:
Immediate Division X
Head No
Information
Technology
Other Division Heads
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Communication
Legal Review
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Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: April 23, 2024 Title: Health and Dental Care Renewal
Submitted by: Kenneth Grant, Finance Director Department: Finance
Brief Summary:
To approve the renewal of Priority Health as the City’s fully insured health care provider and the
Third-party Administrator for City’s self-funded health care plan. And to renew Delta Dental as
the City’s dental insurance provider.
Detailed Summary & Background:
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Goal/Focus Area/Action Item Addressed:
Key Focus Areas:
Goal/Action Item:
2027 GOAL 4: FINANCIAL INFRASTRUCTURE - Reliable and efficient short and long term financial
practices
Amount Requested: Budgeted Item:
$3,050,000.00 Yes No N/A
Fund(s) or Account(s): Budget Amendment Needed:
677 Yes No N/A X
Recommended Motion:
To approve the Health and Dental Care renewal as presented.
Approvals: Guest(s) Invited / Presenting:
Immediate Division
Yes
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Head
Information
Technology
Other Division Heads
Communication
Legal Review
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Employee Employer
Total Employee Employer HRA Employee HRA Employer Total Med + HRA Total Med + HRA
Monthly 10% 90% 10% 90%
Single 64 $ 616.12 $ 39,431.68 $ 61.61 $ 554.51 $ 18.33 $ 164.95 $ 79.94 $ 719.46
Double 46 $ 1,386.27 $ 63,768.42 $ 138.63 $ 1,247.64 $ 18.33 $ 164.95 $ 156.96 $ 1,412.59
Family 86 $ 1,663.52 $ 143,062.72 $ 166.35 $ 1,497.17 $ 18.33 $ 164.95 $ 184.68 $ 1,662.12
196 $ 246,262.82
EMPLOYEE Per Single $ 36.90 $ 332.06
$ 431,064.04 Pay Double $ 72.44 $ 651.97
10% $ 43,106.40 Monthly Period Family $ 85.24 $ 767.13
HRA Div 196 $ 219.93 $ 18.33
Div 26 pays$ 8.46
EMPLOYER Single 64 $ 5,116.29 $ 46,045.31
$ 431,064.04 Monthly Double 46 $ 7,220.02 $ 64,979.28
90% $ 387,957.64 Monthly Family 86 $ 15,882.65 $ 142,942.15
Div 196 $ 1,979.38 $ 164.95
Div 26 Pays$ 76.13
Single 64 $ 61,395.46 $ 552,543.74
Annual Double 46 $ 86,640.3 $ 779,751.3
Family 86 $ 190,591.8 $ 1,715,305.8
MEDICAL Annual Premium $2,955,153.84
Total $ 338,627.54 $ 3,047,600.86
Combined Total $ 3,386,228.40
Medical Total $ 2,955,153.84
HRA Total $ 431,064.04
Combined Total $ 3,386,217.88
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Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: April 23, 2024 Title: Powdered Activated Carbon Purchase
Submitted by: Dan VanderHeide, Public Works Department: Public Works
Director
Brief Summary:
Staff seeks authorization to purchase 8 tons of powered activated carbon (PAC) from Water Solutions
Unlimited for $28,170.
Detailed Summary & Background:
Powered activated carbon (PAC) is one of the few chemicals not purchased under a consortium
that includes neighboring communities, since the amounts needed are small. The type of PAC that
works best for each community varies. In 2023, the City purchased PAC from Water Solutions
Unlimited, known as AquaSorb CB3-MW, based on recommendations that it would help with taste
and odor concerns. Specifically, it can help with the compounds known as geosmin, 2-
methylisoborneol (MIB), and microcystin. Although this is a slightly more expensive option, it is a more
environmentally friendly blend of coconut/wood/coal products compared to the solely bituminous
coal products used in the past.
Prices were asked for and are shown below; staff would like approval to continue using the AquaSorb
product, given that last year's trial was successful and that the associated price increase is small.
Supplier Product Amount ($)
General Carbon GC WaterCarb $19,320
Water Solutions Unlimited AquaSorb CB3-MW $28,170
Calgon WPH1000 $33,280
Haviland Products Company Havatreat 247 $40,192
Goal/Focus Area/Action Item Addressed:
Key Focus Areas:
Sustainability in financial practices and infrastructure
Goal/Action Item:
2027 GOAL 4: FINANCIAL INFRASTRUCTURE - Reliable and efficient short and long term financial
practices
Amount Requested: Budgeted Item:
$28,170 Yes X No N/A
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Fund(s) or Account(s): Budget Amendment Needed:
591-558 Yes No X N/A
Recommended Motion:
Authorize staff to purchase 8 tons of powered activated carbon (PAC) from Water Solutions Unlimited
for $28,170.
Approvals: Guest(s) Invited / Presenting:
Immediate Division X
Head No
Information
Technology
Other Division Heads
Communication
Legal Review
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April 12, 2024
City of Muskegon
1900 Beach St.
Muskegon, MI 49441
Water Solutions Unlimited Chemical Pricing for 2024
Product Price Package Size
Jacobi Aquasorb CB3 Carbon $1.75 per lb. 44 lb. bag
Please allow 1 week for delivery. Delivery is $85.00 with no other fees. If you have any
questions or concerns, please do not hesitate to contact me.
16,000 lbs. would be $1.75 x 16000 lbs. = $28,000.00 + $170.00 shipping
Total for 2 shipments = $28,170.00
Russ Teders
Water Solutions Unlimited
8824 Union Mills Drive
Camby, IN 46113
Office 1-800-359-3570
Cell 1-419-615-3441
getwsu.com
1-800-359-3570
P.O. Box 157
8824 Union Mills Drive
Camby, IN 46113
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Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: April 23, 2024 Title: Rezoning of properties at Oak Ave / Riley St
Submitted by: Mike Franzak, Planning Director Department: Planning
Brief Summary:
Request to rezone the following properties from MC, Medical Care to Form Based Code,
Neighborhood Edge: 1760, 1761, 1771, 1775, 1789, 1803, 1811, 1819, 1827, 1835 Wells Ave; 1762, 1770,
1776, 1784, 1790, 1803, 1812, 1820, 1828, 1836 Oak Ave; 0 Wagner Ave (property numbers 24-661-000-
0032-00 and 24-661-000-0033-00).
Detailed Summary & Background:
The Planning Commission unanimously voted to recommend approval of the rezoning request.
Goal/Focus Area/Action Item Addressed:
Key Focus Areas:
Goal/Action Item:
2027 Goal 2: Economic Development Housing and Business - Progress toward new and ongoing
economic development projects
Amount Requested: Budgeted Item:
N/A Yes No N/A X
Fund(s) or Account(s): Budget Amendment Needed:
N/A Yes No N/A X
Recommended Motion:
To approve the request to rezone the following properties from MC, Medical Care to Form Based
Code, Neighborhood Edge: 1760, 1761, 1771, 1775, 1789, 1803, 1811, 1819, 1827, 1835 Wells Ave; 1762,
1770, 1776, 1784, 1790, 1803, 1812, 1820, 1828, 1836 Oak Ave; 0 Wagner Ave (property numbers 24-
661-000-0032-00 and 24-661-000-0033-00).
Approvals: Guest(s) Invited / Presenting:
Immediate Division X
Head No
Information
Technology
Other Division Heads X
Communication
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Legal Review
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PLANNING COMMISSION EXCERPT
April 11, 2024
Hearing, Case 2024-05: Request to rezone the following properties from MC, Medical Care to
Form Based Code, Neighborhood Edge: 1760, 1761, 1771, 1775, 1789, 1803, 1811, 1819, 1827,
1835 Wells Ave; 1762, 1770, 1776, 1784, 1790, 1803, 1812, 1820, 1828, 1836 Oak Ave; 0 Wagner
Ave (property numbers 24-661-000-0032-00 and 24-661-000-0033-00).
SUMMARY
1. This cluster of buildings is located to the east of the former Muskegon General Hospital
Campus. The buildings are zoned MC, Medical Care Designation – which is the same
designation as the former hospital parcel.
2. Since the hospitals full closing in 2019, these buildings have had a hard time attracting
new medical related tenants. Staff has received several requests from potential businesses
to allow different types of uses such as retail, daycare and residential units. Without the
hospital, the Medical Care zoning designation is becoming a hinderance to the success of
these properties. There are only four active businesses remaining in the development.
3. Staff held a focus group meeting and invited all property owners within the development.
There were over 12 people in attendance and all of them agreed on staff’s
recommendation to rezone the properties to Form Based Code, Neighborhood Edge.
4. Form Based Code, Neighborhood Edge (see enclosed ordinance excerpt) allows for a
variety of retail, office and residential uses. In fact, it would even allow for all of the
current medical related business currently located within the development. FBC, NE
allows for all FBC building types except Large Multiplex. The maximum height of a
building can be up to three stories.
5. This rezoning request was recommended in the new Master Plan (see Master Plan excerpt
enclosure).
6. Notice was sent to everyone within 300 feet of the property. At the time of this writing,
staff did not receive and comments.
Buildings within the Development
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Zoning Map
Aerial Map
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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 1760, 1761,
1771, 1775, 1789, 1803, 1811, 1819, 1827, 1835 Wells Ave; 1762, 1770, 1776, 1784, 1790, 1803, 1812,
1820, 1828, 1836 Oak Ave; 0 Wagner Ave (property numbers 24-661-000-0032-00 and 24-661-000-
0033-00) from MC to FBC, NE
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 1760, 1761, 1771,
1775, 1789, 1803, 1811, 1819, 1827, 1835 Wells Ave; 1762, 1770, 1776, 1784, 1790, 1803, 1812, 1820,
1828, 1836 Oak Ave; 0 Wagner Ave (property numbers 24-661-000-0032-00 and 24-661-000-0033-00)
from MC to FBC, NE.
This ordinance adopted:
Ayes:
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Nayes:
Adoption Date:
Effective Date:
First Reading:
Second Reading:
CITY OF MUSKEGON
By: __________________________
Ann Meisch, MMC
City Clerk
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CERTIFICATE
(Rezoning 1760, 1761, 1771, 1775, 1789, 1803, 1811, 1819, 1827, 1835 Wells Ave; 1762, 1770, 1776,
1784, 1790, 1803, 1812, 1820, 1828, 1836 Oak Ave; 0 Wagner Ave (property numbers 24-661-000-
0032-00 and 24-661-000-0033-00) from MC to FBC, NE )
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 23rd day of
April, 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: ___________________, 2024 ________________________________
Ann Meisch, MMC
Clerk, City of Muskegon
Publish Notice of Adoption to be published once within ten (10) days of final adoption.
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CITY OF MUSKEGON
NOTICE OF ADOPTION
Please take notice that on April 23, 2024, the City Commission of the City of Muskegon adopted an
ordinance amending the zoning map to provide for the change of zoning for 1760, 1761, 1771, 1775,
1789, 1803, 1811, 1819, 1827, 1835 Wells Ave; 1762, 1770, 1776, 1784, 1790, 1803, 1812, 1820, 1828,
1836 Oak Ave; 0 Wagner Ave (property numbers 24-661-000-0032-00 and 24-661-000-0033-00) from
MC to FBC, NE.
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 ____________________, 2024
By ___________________________
Ann Meisch, MMC
City Clerk
---------------------------------------------------------------------------------------------------------------------
PUBLISH ONCE WITHIN TEN (10) DAYS OF FINAL PASSAGE.
Account No. 101-80400-5354
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Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: April 23, 2024 Title: Amendment to the zoning ordinance -
outdoor seating
Submitted by: Mike Franzak, Planning Director Department: Planning
Brief Summary:
Staff initiated request to amend Sections 2003.04 and 2308 of the zoning ordinance to modify the
regulations on outdoor seating.
Detailed Summary & Background:
The Planning Commission unanimously recommended approval of the ordinance amendment.
Goal/Focus Area/Action Item Addressed:
Key Focus Areas:
Goal/Action Item:
2027 Goal 2: Economic Development Housing and Business - Progress toward new and ongoing
economic development projects
Amount Requested: Budgeted Item:
N/A Yes No N/A X
Fund(s) or Account(s): Budget Amendment Needed:
N/A Yes No N/A X
Recommended Motion:
To approve the request to amend Sections 2003.04 and 2308 of the zoning ordinance to modify the
regulations on outdoor seating as proposed.
Approvals: Guest(s) Invited / Presenting:
Immediate Division X
Head No
Information
Technology
Other Division Heads X
Communication
Legal Review
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PLANNING COMMISSION EXCERPT
April 11, 2024
Hearing, Case 2024-08: Staff initiated request to amend Sections 2003.04 and 2308 of the zoning ordinance to
modify the regulations on outdoor seating.
SUMMARY
1. Outdoor seating is regulated in Section 2308 of the zoning ordinance and Section 2003.04 of the form
based code.
2. These two sections are similar, but this amendment will make the requirements the same throughout
the entire city.
3. The amendments also clarify how much space must be left for pedestrian movement. The code currently
addresses how much space must be left next to the curb, but does not explain how much space must be
left clear when the seating is located near the curb and the pedestrian zone is near the building.
4. This amendment also regulates how outdoor seating may operate near the newly installed bollards on
Western Ave.
5. Language has been added to prohibit fencing and other materials to be connected to street amenities.
Zoning Ordinance Excerpt
SECTION 2308: OUTDOOR SEATING
Outdoor seating for restaurants, cocktail lounges, and similar uses is permitted, provided:
1. The area devoted to outdoor seating must be ancillary to the main use of an indoor restaurant, cocktail
lounge, bakery, coffee shop, delicatessen, specialty food store, or similar establishment.
2. Where City bollards are located, they shall be treated as the curb as it pertains to this ordinance. These
bollards may be moved by the City. When the City bollards are to be moved, the outdoor seating area may be
moved, and it is the responsibility of the property owner to make sure the outdoor seating area is still in
compliance with this ordinance.
32. Pedestrian circulation and access to the building entrance shall not be impaired. A minimum of six (6) feet
of sidewalk along the curb and leading to the entrance to the establishment must be maintained free of tables,
chairs, and other encumbrances. Pedestrians must have at least six (6) feet of clearance between the outdoor
seating area and the building or at least six (6) feet of clearance between the outdoor seating area and the curb
or City bollards. Pedestrians must always have at least four (4) feet of clearance around any fixed object. This
distance is increased to six (6) feet if the pedestrian is directed towards the curb/City bollard or any other with
area with a drop off such as a planting bed.
43. The seating area shall be limited to the same property directly adjacent to the permitted use to which the
seating area is accessory and shall not extend into adjoining sites. If adjoining sites both have a seating area,
there shall be a divider between them.
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54. Tables, chairs, umbrellas, canopies, planters, waste receptacles, temporary fences and other elements of
street furniture shall be compatible with the architectural character of the principal building. No permanent
fences may be affixed to the pavement. Temporary fences may be used but may not be placed around any sign
or public street amenity other than trees. No street furniture or fencing may be affixed to any public street
amenity.
56. Outdoor amplification shall be prohibited except only to play music in compliance with Code of
Ordinances, City of Muskegon, Part II, Chapter 26, Article II, Noise, Division I, Generally, Sec. 2634, (a & b)
“Playing of radios, musical instruments, etc.”
76. The area devoted to outdoor service shall not encroach upon or extend over any public alley or right-of-
way without an encroachment agreement with the City of Muskegon.
87. A site plan shall be submitted which clearly depicts the seating area and location and style of tables and
chairs, reflecting ample aisles for pedestrian traffic, and dividers, if needed.
89. The outdoor seating area shall not obstruct visibility of on-coming pedestrians or vehicular traffic, and
must adhere to clear visions standards of the Zoning Ordinance.
109. The sale of alcoholic beverages is subject to the rules and regulations of the State of Michigan Liquor
Control Commission. An outdoor service permit may be required as part of the site plan approval.
1110. All outdoor furnishings shall be completely removed from sidewalk areas December 1 through March 1
of each year.
1211. The area devoted to such outdoor dining area shall be maintained in a safe, clean, and sanitary manner.
1312. Roof seating shall comply with the building code, and not contain signage.
Form Based Code Excerpt
2003.04 OUTDOOR SEATING
A. Outdoor seating shall be permitted with the following building envelope types:
1. Mixed Use Building
2. Retail Building
3. Flex Building
4. Cottage Retail Building
5. Live/Work Building
6. Civic Building
B. Outdoor seating shall require sketch plot review and approval by the Zoning Administrator.
C. A minimum pedestrian clear space of six (6) feet shall be provided at all times.
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D. Outdoor dining areas shall be designed so as to be architecturally compatible with existing structures on the
site.
E. If located on public property or within the public right-of-way, an encroachment permit shall be required.
Such permit shall be obtained through the applicable City department(s).
FB. All other standards of Section 2308, Outdoor Dining, found in City’s Zoning Ordinance shall apply.
Visual Depiction of Proposed Standards
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CITY OF MUSKEGON
MUSKEGON COUNTY, MICHIGAN
ORDINANCE NO._____
An ordinance to amend the zoning ordinance to amend Sections 2003.04 and 2308 of the zoning ordinance to
modify the regulations on outdoor seating.
THE CITY COMMISSION OF THE CITY OF MUSKEGON HEREBY ORDAINS:
Sections 2003.04 and 2308 of the zoning ordinance are amended as proposed to modify the regulations on
outdoor seating.
This ordinance adopted:
Ayes:______________________________________________________________
Nayes:_____________________________________________________________
Adoption Date:
Effective Date:
First Reading:
Second Reading:
CITY OF MUSKEGON
By: _________________________________
Ann Meisch, MMC, City Clerk
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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 23rd day of April 2024, 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: ___________________, 2024. __________________________________________
Ann Meisch, MMC
Clerk, City of Muskegon
Publish: Notice of Adoption to be published once within ten (10) days of final adoption.
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CITY OF MUSKEGON
NOTICE OF ADOPTION
Please take notice that on April 23, 2024, the City Commission of the City of Muskegon adopted an
ordinance to modify the regulations on outdoor seating.
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 ____________________, 2024. 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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Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: April 23, 2024 Title: Sale of 1408 Leahy
Submitted by: Samantha Pulos, Code Department: Planning
Coordinator
Brief Summary:
Staff is requesting approval of a Purchase Agreement for 1408 Leahy.
Detailed Summary & Background:
1408 Leahy was constructed through the agreement with Dave Dusendang to construct infill
housing with ARPA funding. The offer is over the full listing price with the seller to contribute $4950 of
purchase price towards buyers closing costs, pre paids and discount points.
Goal/Focus Area/Action Item Addressed:
Key Focus Areas:
Create an environment that effectively attracts new residents and retains existing residents by filling
existing employment gaps, attracting new and diverse businesses to the city, and expanding access
to a variety of high-quality housing options in Muskegon. Diverse housing types.
Goal/Action Item:
2027 Goal 2: Economic Development Housing and Business
Amount Requested: Budgeted Item:
n/a Yes No N/A x
Fund(s) or Account(s): Budget Amendment Needed:
n/a Yes No N/A x
Recommended Motion:
To approve the Purchase Agreement for 1408 Leahy.
Approvals: Guest(s) Invited / Presenting:
Immediate Division x
Head No
Information
Technology
Other Division Heads x
Communication
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Legal Review
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WEST MICHIGAN REGIONAL PURCHASE AGREEMENT
#
DATE: 03/26/2024 , (time) MLS #
SELLING OFFICE: West Urban Realty LLC BROKER LIC.#: 6505429509 REALTOR® PHONE: 616-366-2459
LISTING OFFICE: West Urban Realty LLC REALTOR® PHONE: 616-366-2459
1. Effective Date: This Agreement is effective on the date of Seller's acceptance of Buyer's offer or Buyer's acceptance of any
counteroffer, as the case may be, and this date shall hereafter be referred to as the "Effective Date". Further, any reference to "days"
in this Agreement refers to calendar days. The first calendar day begins at 12:01 a.m. on the day after the Effective Date. Any
reference to "time" refers to local time.
2. Agency Disclosure: The Undersigned Buyer and Seller each acknowledge that they have read and signed the Disclosure Regarding
Real Estate Agency Relationships. The selling licensee is acting as (choose one):
Agent/Subagent of Seller Buyer’s Agent Dual Agent (with written, informed consent of both Buyer and Seller)
Transaction Coordinator
Primary Selling Agent Name: Mariana Murillo VanDam Email: mariana@westurbanrealtymi.co Lic.#: 6506015435
Alternate Selling Agent Name: Email: Lic.#:
3. Seller’s Disclosure Statement: (This paragraph applies to sales of one-to-four family residential units.)
Buyer has received the Seller’s Disclosure Statement, dated .
Buyer has not received the Seller’s Disclosure Statement. Buyer may terminate this Agreement, in writing, any time prior to receipt
of the Seller’s Disclosure Statement. Once Buyer has received the Seller’s Disclosure Statement, Buyer may terminate this
Agreement, in writing, within 72 hours of receipt if the disclosure was received in person, or within 120 hours if received by
registered mail. Exceptions: new construction. builder warranty
Seller is exempt from the requirements of the Seller Disclosure Act.
4. Lead-Based Paint Addendum: Transactions involving homes built prior to 1978 require a written disclosure which is hereby attached
and will be an integral part of this Agreement.
5. Property Description: Buyer offers to buy the property located in the City Village Township of Muskegon ,
County of Muskegon County , Michigan, commonly known as (insert mailing address: street/city/state/zip code)
1408 Leahy Street, Muskegon, MI 49442
with the following legal description and tax parcel ID numbers:
CITY OF MUSKEGON REVISED PLAT OF 1903 N 84 1/2 FT LOT 4 BLK 273
PP# 24-205-273-0004-00 .
The following paragraph applies only if the Premises include unplatted land:
Seller agrees to grant Buyer at closing the right to make (insert number) na division(s) under Section 108(2), (3), and
(4) of the Michigan Land Division Act. (If no number is inserted, the right to make divisions under the sections referenced above stays
with any remainder of the parent parcel retained by Seller. If a number is inserted, Seller retains all available divisions in excess of the
number stated; however, Seller and/or REALTOR® do not warrant that the number of divisions stated is actually available.) If this sale
will create a new division, Seller’s obligations under this Agreement are contingent on Seller’s receipt of municipal approval on or
before , of the proposed division to create the Premises.
6. Purchase Price: Buyer offers to buy the Property for the sum of $ 164,850
one hundred sixty-four thousand eight hundred fifty U.S. Dollars
7. Seller Concessions, if any: $4950 seller concession
8. Terms: The Terms of Purchase will be as indicated by “X” below: (Other unmarked terms of purchase do not apply.)
SOURCE OF FUNDS TO CLOSE: Buyer represents that the funds necessary to close this transaction on the terms specified below
are currently available to Buyer in cash or an equally liquid equivalent.
If the Property’s value stated in an appraisal obtained by Buyer or Buyer’s lender is less than the Purchase Price, Buyer shall within
three (3) days after receipt of the appraisal: 1) renegotiate with the Seller, 2) terminate the transaction, in which case Buyer shall
receive a refund of Buyer’s Earnest Money Deposit, or 3) proceed to close the transaction at the agreed Purchase Price.
CASH. The full Purchase Price upon execution and delivery of Warranty Deed. Buyer Agrees to provide Buyer Agent/Dual Agent
verification of funds within five (5) days after the Effective Date, and consents to the disclosure of such information to Seller and/or
Seller’s Agent. If verification of funds is not received within 5 days after the Effective Date, Seller may terminate this Agreement
at any time before verification of funds is received by giving written notice to Buyer. Any appraisal required by Buyer shall be
arranged and paid for by Buyer within ten (10) days after the Effective Date of this Agreement.
NEW MORTGAGE. The full Purchase Price upon execution and delivery of Warranty Deed, contingent upon Buyer’s ability to
obtain a conventional type 30 (year) mortgage in the amount of 97 % of the Purchase Price
bearing interest at a rate not to exceed 7 % per annum (rate at time of loan application), on or before the date the sale is
to be closed. Buyer agrees to apply for a mortgage loan, and pay all fees and costs customarily charged by Buyer’s lender to
process the application, within 3 days after the Effective Date, not to impair Buyers’ credit after the date such loan if
offered. Seller Buyer will agree to pay an amount not to exceed $ na representing repairs required as a
condition of financing. Buyer agrees does not agree to authorize Buyer’s Agent/Dual Agent to obtain information from
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Buyer’s lender regarding Buyer’s financing, and consents to the disclosure of this information to Seller and/or Seller’s Agent.
Exceptions:
SELLER FINANCING (choose one of the following): CONTRACT or PURCHASE MONEY MORTGAGE
In the case of Seller financing, Buyer agrees to provide Seller with a credit report within 72 hours after the Effective Date. If the
credit report is unacceptable to Seller, Seller shall have the right to terminate this offer within 48 hours of Seller’s receipt, or if
Buyer fails to provide said credit report to Seller within the time frame allotted, Seller shall have the right to terminate this offer
within 48 hours. Seller is advised to seek professional advice regarding the credit report.
$ upon execution and delivery of a
form (name or type of form and revision date), a copy of which is attached, wherein the balance of $
will be payable in monthly installments of $ or more including interest at % per annum,
interest to start on date of closing, and first payment to become due thirty (30) days after date of closing. The entire unpaid balance
will become due and payable months after closing. Any appraisal required by Buyer shall be arranged and
paid for by Buyer within ten (10) days after the Effective Date of this Agreement. Exceptions:
EQUITY (choose one of the following): Formal Assumption or Informal Assumption
Upon execution and delivery of: Warranty Deed subject to existing mortgage OR Assignment of Vendee Interest
in Land Contract, Buyer to pay the difference (approximately $ ) between the Purchase Price above
provided and the unpaid balance (approximately $ ) upon said mortgage or land contract, which Buyer
agrees to assume and pay. Buyer agrees to reimburse Seller for accumulated funds held in escrow, if any, for payment of future
taxes and insurance premiums, etc. Any appraisal required by Buyer shall be arranged and paid for by Buyer within ten
(10) days after the Effective Date of this Agreement. Exceptions:
OTHER:
9. Contingencies: Buyer’s obligation to consummate this transaction (choose one):
IS NOT CONTINGENT - is not contingent upon the sale or exchange of any other property by Buyer.
IS CONTINGENT UPON CLOSING - is contingent upon closing of an existing sale or exchange of Buyer’s property located at:
A copy of Buyer’s agreement to sell or exchange that property is being delivered to Seller along with this offer. If the existing sale
or exchange terminates for any reason, Buyer will immediately notify Seller, and either party may terminate this Agreement in
writing, within 3 days of Buyer’s notice to Seller. If either party terminates, Buyer shall receive a refund of any applicable Earnest
Money Deposit.
IS CONTINGENT UPON THE SALE AND CLOSING - is contingent upon the execution of a binding agreement and the closing
of a sale or exchange of Buyer’s property located at
on or before . Seller will have the right to continue to
market Seller’s Property until Buyer enters into a binding agreement to sell or exchange Buyer’s property and delivers a copy
thereof to Seller. During such marketing period, Seller may enter into a binding contract for sale to another purchaser on such
price and terms as the Seller deems appropriate. In such event, this Agreement will automatically terminate, Buyer will be notified
promptly, and Buyer’s Earnest Money Deposit will be refunded. Exceptions:
10. Fixtures & Improvements: The following is not intended to be an all-inclusive list of items included with the Property. All
improvements and appurtenances are included in the Purchase Price, if now in or on the Property, unless rented, including the
following: all buildings; landscaping; attached smart home devices; attached security systems; lighting fixtures and their shades and
bulbs; ceiling fans; hardware for draperies and curtains; window shades and blinds; built-in kitchen appliances, including garbage
disposal and drop-in ranges; wall to wall carpeting, if attached; all attached mirrors; all attached TV mounting brackets; all attached
shelving; attached work benches; stationary laundry tubs; water softener; water heater; incinerator; sump pump; water pump and
pressure tank; heating and air conditioning equipment (window units excluded); attached humidifiers; heating units, including add-on
heating stoves and heating stoves connected by flue pipe; fireplace screens, inserts, and grates; fireplace doors, if attached; liquid
heating and cooking fuel tanks; TV antenna and complete rotor equipment; satellite dish and necessary accessories and complete
rotor equipment; all support equipment for inground pools; screens and storm windows and doors; awnings; installed basketball
backboard, pole and goal; mailbox; flagpole(s); fencing, invisible inground fencing and all related equipment, including collars;
detached storage buildings; underground sprinkling, including the pump; installed outdoor grills; all plantings and bulbs; garage door
opener and control(s); and any and all items and fixtures permanently affixed to the Property; and also includes:
but does not include:
1408 Leahy Street, Muskegon, MI 49442 03/26/2024
Subject Property Address/Description Date Time
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SP Seller’s Initials
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11. Heating and Cooking Fuels: Liquid heating and cooking fuels in tanks are included in the sale and will transfer to Buyer at time of
possession unless usage is metered (in which case it is not included in the sale). Sellers are responsible for maintaining heating and
cooking liquid fuels at an operational level and shall not permit fuels to fall below 10% in the tank(s) at the time of possession, except
that the tank(s) may be empty only if now empty. Further, Seller is precluded from removing fuel from tank(s) other than what is
expended through normal use. Exceptions:
12. Assessments (choose one):
If the Property is subject to any assessments,
Seller shall pay the entire balance of any such assessments that are due and payable on or before the day of closing (regardless
of any installment arrangements), except for any fees that are required for future connection to public utilities.
Seller shall pay all installments of such assessments that become due and payable on or before day of closing. Buyer shall assume
and pay all other installments of such assessments.
Seller has an ongoing obligation through the Closing to disclose to the Buyer any known pending assessments, including, but not limited
to, any mandatory utility connection requirements, and/or benefit charges, and condominium special assessments, that have not been
previously disclosed in writing to Buyer.
13. Property Taxes: Seller will be responsible for any taxes billed prior to those addressed below. Buyer will be responsible for all taxes
billed after those addressed below.
Buyer is also advised that the state equalized value of the Property, principal residence exemption information and other real property
tax information is available from the appropriate local assessor’s office. Buyer should not assume that Buyer’s future tax bills on the
Property will be the same as Seller’s present tax bills. Under Michigan law, real property tax obligations can change significantly when
property is transferred.
No proration. (Choose one):
Buyer Seller will pay taxes billed summer (year);
Buyer Seller will pay taxes billed winter (year);
Calendar Year Proration (all taxes billed or to be billed in the year of the closing). Calendar year tax levies will be estimated, if
necessary, using the taxable value and the millage rate(s) in effect on the day of closing, broken down to a per diem tax payment
and prorated to the date of closing with Seller paying for January 1 through the day before closing.
Fiscal Year Proration - Taxes will be prorated as though they are paid in (choose one): advance. arrears.
Fiscal Year will be assumed to cover a 12-month period from date billed, and taxes will be prorated to the date of closing. Fiscal
year tax levies will be estimated, if necessary, using the taxable value and millage rate(s) in effect on the day of closing, broken
down to a per diem tax payment and prorated to the date of closing with Seller paying through the day before closing. Exceptions:
14. Well/Septic: Within ten (10) days after the Effective Date, (choose one) Seller or Buyer will arrange for, at their own expense,
an inspection of the primary well used for human consumption (including a water quality test for coliform bacteria and nitrates) and
septic systems in use on the Property. The inspection will be performed by a qualified inspector in a manner that meets county (or
other local governmental authority, if applicable) protocol.
If any report discloses a condition unsatisfactory to Buyer, or doesn’t meet county standards that are a condition of sale, Buyer may,
within three (3) days after Buyer has received the report, by written notice to Seller, either terminate this Agreement and receive a
refund of Buyer’s Earnest Money Deposit, or make a written proposal to Seller to correct those unsatisfactory conditions. If Buyer fails
to make a written proposal within the above referenced time period, then Buyer will be deemed to have accepted the well/septic as-is.
Seller will respond in writing within three (3) days to Buyer’s request. If Seller fails to respond or to arrive at a mutually agreeable
resolution within three (3) days after Seller’s receipt of Buyer’s proposal, Buyer will have three (3) days to provide written notice of
termination of this Agreement and receive a refund of any applicable Earnest Money Deposit. If Buyer fails to terminate the contract,
Buyer will proceed to closing according to the terms and conditions of this Agreement.
Other:
15. Inspections & Investigations:
Inspections: Buyer, or someone selected by Buyer, has the right to inspect the buildings, premises, components and systems, at
Buyer’s expense. Any damage, misuse, abuse, or neglect of any portion of the Property or premises as a result of inspections will be
Buyer’s responsibility and expense.
Investigations: It is Buyer’s responsibility to investigate (i) whether the Property complies with applicable codes and local ordinances
and whether the Property is zoned for Buyer’s intended use; (ii) whether Buyer can obtain a homeowner’s insurance policy for the
Property at price and terms acceptable to Buyer; (iii) and whether or not the Property is in a flood zone.
All inspections and investigations will be completed within ____ days after the Effective Date. If the results of Buyer’s inspections
and investigations are not acceptable to Buyer, Buyer may, within the above referenced period, either (a) terminate this Agreement by
written notice to Seller and receive a refund of Buyer’s Earnest Money Deposit, or (b) make a written proposal to Seller to correct those
unsatisfactory conditions, which proposal must be in the form of a proposed addendum and must be signed by Buyer in order for it to
be effective. If Buyer fails to make a written proposal within the above referenced time period, then Buyer will be deemed to have
1408 Leahy Street, Muskegon, MI 49441 03/26/2024
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accepted the Property as-is. Seller may negotiate with Buyer, or by written notice to Buyer, accept Buyer’s proposal or terminate this
Agreement. If Seller fails to respond, or to arrive at a mutually agreeable resolution within three (3) days after Seller’s receipt of
Buyer’s proposal, Buyer shall have three (3) days to provide written notice of termination of this Agreement and receive a refund of
any applicable Earnest Money Deposit. If Buyer fails to terminate this Agreement within said three (3) day period, Buyer will be deemed
to accept the Inspections & Investigations and will proceed to closing according to the terms and conditions of this Agreement.
Buyer has waived all rights under this Inspections & Investigations paragraph.
Exceptions:
16. Municipal Compliances: Seller will arrange and pay for current certificates of occupancy, sidewalk compliance, and smoke detector
ordinances, if applicable.
17. Title Insurance: Seller agrees to convey marketable title to the Property subject to conditions, limitations, reservation of oil, gas and
other mineral rights, existing zoning ordinances, and building and use restrictions and easements of record. An expanded coverage
ALTA Homeowner’s Policy of Title Insurance in the amount of the Purchase Price shall be ordered by Seller and furnished to Buyer at
Seller’s expense, and a commitment to issue a policy insuring marketable title vested in Buyer, including a real estate tax status
report, will be made available to Buyer within ten (10) days after the Effective Date. If Buyer so chooses, or if an expanded policy is
not applicable, then a standard ALTA Owners’ Policy of Title Insurance shall be provided.
If Buyer objects to any conditions, Buyer may, within three (3) days of receipt of the Title Commitment, by written notice to Seller,
either terminate this Agreement and receive a refund of Buyer’s Earnest Money Deposit, or make a written proposal to Seller to correct
those unsatisfactory conditions. If Buyer fails to make a written proposal within the above referenced time period, then Buyer will be
deemed to have accepted the Title Commitment as-is. Seller may negotiate with Buyer, or by written notice to Buyer, accept Buyer’s
proposal or terminate this Agreement. If Seller fails to respond, or to arrive at a mutually agreeable resolution within three (3) days
after Seller’s receipt of Buyer’s proposal, Buyer shall have three (3) days to provide written notice of termination of this Agreement and
shall receive a refund of any applicable Earnest Money Deposit. If Buyer fails to terminate this Agreement within said three (3) day
period, Buyer will be deemed to accept the Title Commitment as-is and will proceed to closing according to the terms and conditions
of this Agreement. Exceptions:
18. Property Survey: Broker advises that Buyer should have a survey performed to satisfy Buyer as to the boundaries of the Property
and the location of improvements thereon.
Buyer or Seller (choose one) shall within ten (10) days of the Effective Date, order, at their expense, a boundary survey with iron
corner stakes showing the location of the boundaries, improvements and easements in connection with the Property. Upon receipt of
the survey, Buyer will have three (3) days to review the survey. If the survey shows any condition, in Buyer’s sole discretion, which
would interfere with Buyer’s intended use of the Property, the marketability of the title, or zoning non-compliance, then Buyer may,
within said three (3) day period, terminate this Agreement, in writing, and Buyer will receive a full refund of Buyer’s Earnest Money
Deposit.
No survey. Buyer has waived all rights under this paragraph.
When closing occurs, Buyer shall be deemed to have accepted the boundaries of the Property and the location of such improvements
thereon. Exceptions:
existing survey accepted
19. Home Protection Plan: Buyer and Seller have been informed that home protection plans may be available. Such plans may provide
additional protection and benefit to the parties. Exceptions:
20. Prorations: Rent; association dues/fees, if any; insurance, if assigned; interest on any existing land contract, mortgage or lien
assumed by Buyer; will all be adjusted to the date of closing. For the purposes of calculating prorations, it is presumed that Seller
owns the Property through the day before closing.
21. Closing: If agreeable to Buyer and Seller, the sale will be closed as soon as closing documents are ready, but not later than
04/19/2024 . An additional period of fifteen (15) days will be allowed for closing to accommodate the correction of
title defects or survey problems which can be readily corrected, or for delays in obtaining any lender required inspections/repairs. During
this additional period, the closing will be held within 5 days after all parties have been notified that all necessary documents have been
prepared. Buyer and Seller will each pay their title company closing fee, if applicable, except in the case of VA financing where Seller
will pay the entire closing fee. Exceptions:
22. Pre-Closing Walk-Through: Buyer (choose one) reserves waives the right to conduct a final walk-through of the
Property within three (3) days of the scheduled closing date. The purpose of the walk-through is to determine that the Property is in
a substantially similar condition as of the Effective Date, any contractually agreed upon items have been fulfilled, and that any included
personal property is still located at the Property. Buyer shall immediately report to Seller any objections to these conditions and Buyer’s
requested corrective action.
23. Possession: Seller will maintain the Property in its present condition until the completion of the closing of the sale. Possession to be
delivered to Buyer, subject to rights of present tenants, if any.
At the completion of the closing of the sale.
At a.m. p.m. on the day after completion of the closing of the sale, during which time Seller
will have the privilege to occupy the Property and hereby agrees to pay Buyer $ as an occupancy
fee for this period payable at closing, WITHOUT PRORATION. Payment shall be made in the form of cash or certified funds.
1408 Leahy Street, Muskegon, MI 49442 03/26/2024
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SP Seller’s Initials
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1:44 PM EDT 2:01 PM EDT
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West Michigan Regional Purchase Agreement Page 5 of 6
For purposes of determining possession, the transaction will be considered closed once all necessary documents have been signed
and received by escrow agent and funds have been received by the escrow agent.
If Seller fails to deliver possession to Buyer on the agreed date, Seller shall become a tenant at sufferance and shall pay to Buyer as
liquidated damages $ na per day plus all of the Buyer’s actual reasonable attorney's fees incurred in removing the Seller
from the Property.
If Seller occupies the Property after closing, Seller will pay all utilities during such occupancy. Seller shall also be responsible for snow
removal and/or landscape maintenance. Buyer will maintain the structure and mechanical systems at the Property. However, any
repairs or replacements necessitated by Seller’s misuse, abuse, or neglect of any portion of the Property will be Seller’s responsibility
and expense.
On the agreed delivery date, Seller shall deliver the Property free of trash and debris and in broom-clean condition, shall remove all
personal property (unless otherwise stated in this or an additional written agreement), shall make arrangements for final payment on
all utilities, and shall deliver all keys to Buyer.
In the event of possession by Seller after close, Buyer and Seller agree do not agree to sign the West Michigan Regional
Temporary Occupancy Addendum to the Purchase Agreement. If signed, that Addendum shall become an integral part of this
Agreement.
Exceptions:
na
24. Earnest Money Deposit: For valuable consideration, Buyer gives Seller until 6pm (time) on
03/26/2024 (date), to deliver the written acceptance of this offer and agrees that this offer, when accepted by
Seller, will constitute a binding Agreement between Buyer and Seller. An Earnest Money Deposit in the amount of $ $1000
shall be submitted to Transnation Title (insert name of broker, title
company, other) within 72 hours of the Effective Date of this Agreement, and shall be applied against the Purchase Price. If the Earnest
Money Deposit is not received within 72 hours of the Effective Date or is returned for insufficient funds, Seller may terminate this
Agreement until such time as the Earnest Money Deposit is received. If Seller terminates this Agreement under this provision, Seller
waives any claim to the Earnest Money Deposit. If the sale is not closed due to a failure to satisfy a contingency for a reason other
than the fault of Buyer, the Buyer is entitled to a refund of the Earnest Money Deposit. If the sale is not closed as provided in this
Agreement and Buyer and Seller do not agree to the disposition of the Earnest Money Deposit, then Buyer and Seller agree that the
Broker holding the Earnest Money Deposit may notify Buyer and Seller, in writing, of Broker’s intended disposition of the Earnest
Money Deposit. If Buyer and Seller do not object to such disposition in writing within fifteen (15) days after the date of Broker’s notice,
they will be deemed to have agreed to Broker’s proposed disposition; if either Buyer or Seller object and no mutually agreeable
disposition can be negotiated, Broker may deposit the funds by interpleader with a court of proper jurisdiction or await further actions
by Buyer and Seller. In the event of litigation involving the deposit, in whole or in part, either the Seller or the Buyer that is not the
prevailing party, as determined by the court, will reimburse the other for reasonable attorneys’ fees and expenses incurred in
connection with the litigation, and will reimburse the Broker for any reasonable attorneys’ fees and expenses incurred in connection
with any interpleader action instituted. If the entity holding the Earnest Money Deposit is not the Broker, then to the extent that the
terms of any escrow agreement conflict with this paragraph, then the terms and conditions of the escrow agreement shall control.
25. Professional Advice: Broker hereby advises Buyer and Seller to seek legal, tax, environmental and other appropriate professional
advice relating to this transaction. Broker does not make any representations or warranties with respect to the advisability of, or the
legal effect of this transaction. Buyer further acknowledges that REALTOR® above named in the Agreement hereby recommends to
Buyer that an attorney be retained by Buyer to pass upon the marketability of the title and to ascertain that the required details of the
sale are adhered to before the transaction is consummated. Buyer agrees that Buyer is not relying on any representation or statement
made by Seller or any real estate salesperson (whether intentionally or negligently) regarding any aspect of the Property or this sale
transaction, except as may be expressly set forth in this Agreement, a written amendment to this Agreement, or a disclosure statement
separately signed by Seller.
26. Disclosure of Information: Buyer and Seller acknowledge and agree that the Purchase Price, terms, and other details with respect
to this transaction (when closed) are not confidential, will be disclosed to REALTORS® who participate in the applicable Multiple Listing
Service, and may otherwise be used and/or published by that Multiple Listing Service in the ordinary course of its business.
27. Other Provisions:
28. Mergers and Integrations: This Agreement is the final expression of the complete agreement of Buyer and Seller, and there are no
oral agreements existing between Buyer and Seller relating to this transaction. This Agreement may be amended only in writing signed
by Buyer and Seller and attached to this Agreement.
29. Fax/Electronic Distribution and Electronic Signatures: Buyer and Seller agree that any signed copy of this Agreement, and any
amendments or addendums related to this transaction, transmitted by facsimile or other electronic means shall be competent evidence
of its contents to the same effect as an original signed copy. Buyer and Seller further agree that an electronic signature is the legal
equivalent of a manual or handwritten signature, and consent to use of electronic signatures. Buyer and Seller agree that any notice(s)
required or permitted under this Agreement may also be transmitted by facsimile or other electronic means.
1408 Leahy Street, Muskegon, MI 49442 03/26/2024
Subject Property Address/Description Date Time
©Copyright, West Michigan REALTOR® Associations
Revision Date 1/2024 KLV Buyer’s Initials
SP Seller’s Initials
03/26/24
1:44 PM EDT
03/26/24
2:01 PM EDT
Page 72 of 209
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West Michigan Regional Purchase Agreement Page 6 of 6
30. Wire Fraud: Seller and Buyer are advised that wire fraud is an increasingly common problem. If you receive any electronic
communication directing you to transfer funds or provide nonpublic personal information (such as social security numbers, drivers’
license numbers, wire instructions, bank account numbers, etc.), even if that electronic communication appears to be from the
Broker, Title Company, or Lender, DO NOT reply until you have verified the authenticity of the email by direct communication with
Broker, Title Company, or Lender. DO NOT use telephone numbers provided in the email. Such requests may be part of a scheme
to steal funds or use your identity.
31. Buyer’s Approval and Acknowledgment: Buyer approves the terms of this offer and acknowledges receipt of a copy of this offer.
Karyn L. Verge
dotloop verified
Buyer 1 Address X 03/26/24 1:44 PM EDT
4O2F-GHWJ-VRRD-J6DI Buyer
Buyer 1 Phone: (Res.) (Bus.) Karen Lynn Verge
Print name as you want it to appear on documents.
Buyer 2 Address X Buyer
Buyer 2 Phone: (Res.) (Bus.)
Print name as you want it to appear on documents.
32. Seller’s Response: The above offer is approved: As written. As written except:
Counteroffer, if any, expires , at (time). Seller has the right to withdraw this
counteroffer and to accept other offers until Seller or Seller’s Agent has received notice of Buyer’s acceptance.
33. Certification of Previous Disclosure Statement: Seller certifies to Buyer that the Property is currently in the same condition as
disclosed in the Seller’s Disclosure Statement dated (choose one): Yes No.
Seller agrees to inform Buyer in writing of any changes in the content of the disclosure statement prior to closing.
34. Notice to Seller: Seller understands that consummation of the sale or transfer of the Property described in this Agreement will not
relieve Seller of any liability that Seller may have under the mortgages to which the Property is subject, unless otherwise agreed to by
the lender or required by law or regulation. Buyer and Seller are advised that a Notice to Seller & Buyer of Underlying Mortgage form
is available from the respective agents via the West Michigan REALTOR® Boards.
35. Listing Office Address: 3265 Walker Ave NW, SuiteD, Grand Rapids, MI 49544 Listing Broker License # 6505429509
Listing Agent Name: Mariana Murillo VanDam Listing Agent License # 6506015435
36. Seller’s Approval and Acknowledgment: Seller approves the terms of this Agreement and acknowledges receipt of a copy. If Seller’s
response occurs after Buyer’s offer expires, then Seller’s response is considered a counteroffer and Buyer’s acceptance is required
below.
X (Seller’s Signature, Date, Time): Sam Pulos
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03/26/24 2:01 PM EDT
RNED-WKM2-GWYO-GJZI
Samantha Pulos Is Seller a U.S. Citizen or Resident Alien? Yes No*
Print name as you want it to appear on documents.
X (Seller’s Signature, Date, Time):
Is Seller a U.S. Citizen or Resident Alien? Yes No*
Print name as you want it to appear on documents.
Seller’s Address: Seller’s Phone (Res.) (Bus)
* If Seller(s) is not a U.S. Citizen or Resident Alien, there may be tax implications and Buyer and Seller are advised to seek professional advice.
37. Buyer’s Receipt/Acceptance: Buyer acknowledges receipt of Seller’s response to Buyer’s offer. In the event Seller’s response
constitutes a counteroffer, Buyer accepts said counteroffer. All other terms and conditions in the offer remain unchanged.
Karyn L. Verge
dotloop verified
X (Buyer’s Signature, Date, Time): 03/26/24 1:44 PM EDT
1SCG-TNWC-EIQE-YUBV
X (Buyer’s Signature, Date, Time):
38. Seller’s Receipt: Seller acknowledges receipt of Buyer’s acceptance of counteroffer.
X (Seller’s Signature, Date, Time):
X (Seller’s Signature, Date, Time):
1408 Leahy Street, Muskegon, MI 49442 03/26/2024
Subject Property Address/Description Date Time
©Copyright, West Michigan REALTOR® Associations
Revision Date 1/2024 KLV Buyer’s Initials
SP Seller’s Initials
03/26/24
1:44 PM EDT
03/26/24
2:01 PM EDT
Page 73 of 209
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Please read and have buyer/s sign. Attach with offer
Paragraph 8- Seller will provide a quit claim deed vs a warranty deed.
The builder's one-year warranty starts from the day of Certificate of Occupancy.
Buyer shall bring dwelling unit into compliance with the following per the city’s Zoning Ordinance: Each
dwelling unit shall have an approved established vegetative ground cover, native to the immediate area
within 600 feet, no less than 12 months after occupancy. Approval shall be given by the zoning staff of
the Planning Department as part of the initial residential site plan review. A minimum of one shade tree,
two and one-half inches (2.5") in diameter, four feet (4') from the ground or one six-foot (6') evergreen
tree shall be provided. Existing landscaping may be accepted in lieu of this requirement. The buyer shall
be responsible for watering and maintaining vegetation.
Karyn L. Verge
dotloop verified
03/14/24 9:47 AM EDT
235R-VFFR-ZMW7-OD5S
__________________________________________
Buyer
__________________________________________
Buyer
Mariana Murillo VanDam
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03/25/24 10:03 AM EDT
__________________________________________
OAS0-KW0D-RD6X-FNTX
Buyer’s Agent
Sam Pulos
dotloop verified
03/26/24 2:00 PM EDT
_______________________________________
JWOM-F01A-FLWU-82JX
Samantha Pulos
City of Muskegon Representative
Page 74 of 209
Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: April 23, 2024 Title: Fireworks for Boys and Girls Club
Submitted by: Ann Meisch, City Clerk Department: City Clerk
Brief Summary:
The Boys and Girls Club want to have a fireworks display for their annual gala on May 18, 2024.
Detailed Summary & Background:
The City Commission previously approved a fireworks permit. Since that time, the fireworks company
backed out. Pyrotechnico Fireworks, Inc. has been hired for the display. They are the company the
City also uses for their annual fireworks display.
Goal/Focus Area/Action Item Addressed:
Key Focus Areas:
Goal/Action Item:
2027 Goal 1: Destination Community & Quality of Life
Amount Requested: Budgeted Item:
Yes No N/A X
Fund(s) or Account(s): Budget Amendment Needed:
Yes No N/A X
Recommended Motion:
To approve the fireworks display on May 18, 2024 for the Boys and Girls Club by Pyrotecnico,
Fireworks, Inc. based on approval of the insurance and Fire Marshal and authorize staff to sign any
necessary paperwork.
Approvals: Guest(s) Invited / Presenting:
Immediate Division X
Head No
Information
Technology
Other Division Heads X
Communication
Legal Review
Page 75 of 209
DATE (MM/DD/YYYY)
CERTIFICATE OF LIABILITY INSURANCE 4/15/2024
THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS
CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES
BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED
REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER.
IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must be endorsed. If SUBROGATION IS WAIVED, subject to
the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the
certificate holder in lieu of such endorsement(s).
PRODUCER CONTACT
NAME:
Acrisure, LLC dba Britton Gallagher & Associates PHONE FAX
3737 Park East Dr. STE 204 (A/C, No, Ext): 216-658-7100 (A/C, No): 216-658-7101
E-MAIL
Beachwood OH 44122 ADDRESS: info@brittongallagher.com
INSURER(S) AFFORDING COVERAGE NAIC #
INSURER A : Everest Indemnity Insurance Co. 10851
2299
INSURED INSURER B : Everest Denali Insurance Company 16044
Pyrotecnico Fireworks Inc.
P.O. Box 149 INSURER C : Arch Speciality Ins Co 21199
299 Wilson Road INSURER D : Pennsylvania Insurance Company
New Castle PA 16103 INSURER E :
INSURER F :
COVERAGES CERTIFICATE NUMBER: 415841323 REVISION NUMBER:
THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD
INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS
CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS,
EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS.
INSR ADDL SUBR POLICY EFF POLICY EXP
LTR TYPE OF INSURANCE INSR WVD POLICY NUMBER (MM/DD/YYYY) (MM/DD/YYYY) LIMITS
A GENERAL LIABILITY Y Y SI8ML00891-232 10/14/2023 10/14/2024 EACH OCCURRENCE $ 1,000,000
DAMAGE TO RENTED
X COMMERCIAL GENERAL LIABILITY PREMISES (Ea occurrence) $ 500,000
CLAIMS-MADE X OCCUR MED EXP (Any one person) $
PERSONAL & ADV INJURY $ 1,000,000
GENERAL AGGREGATE $ 2,000,000
GEN'L AGGREGATE LIMIT APPLIES PER: PRODUCTS - COMP/OP AGG $ 2,000,000
POLICY X JECT
PRO- $
LOC
B AUTOMOBILE LIABILITY Y Y SI8CA00141-232 10/14/2023 10/14/2024 COMBINED SINGLE LIMIT
(Ea accident) $ 1,000,000
X ANY AUTO BODILY INJURY (Per person) $
ALL OWNED SCHEDULED BODILY INJURY (Per accident) $
AUTOS AUTOS
X X NON-OWNED PROPERTY DAMAGE $
HIRED AUTOS AUTOS (Per accident)
$
C UMBRELLA LIAB X OCCUR Y Y UXP1035252-04 10/14/2023 10/14/2024 EACH OCCURRENCE $ 4,000,000
X EXCESS LIAB CLAIMS-MADE AGGREGATE $ 4,000,000
DED RETENTION $ $
D WORKERS COMPENSATION Y 82-872096-04-35 10/14/2023 10/14/2024 X WC STATU-
TORY LIMITS
OTH-
ER
AND EMPLOYERS' LIABILITY Y/N
ANY PROPRIETOR/PARTNER/EXECUTIVE E.L. EACH ACCIDENT $ 1,000,000
OFFICER/MEMBER EXCLUDED? N N/A
(Mandatory in NH) E.L. DISEASE - EA EMPLOYEE $ 1,000,000
If yes, describe under
DESCRIPTION OF OPERATIONS below E.L. DISEASE - POLICY LIMIT $ 1,000,000
A Excess Liability #2 Y Y SI8EX01314-232 10/14/2023 10/14/2024 Each Occ/ Aggregate $5,000,000
Total Limits $10,000,000
DESCRIPTION OF OPERATIONS / LOCATIONS / VEHICLES (Attach ACORD 101, Additional Remarks Schedule, if more space is required)
Additional Insured extension of coverage is provided by above referenced policies where required by written agreement.
Display Date: May 18, 2024
Display Site: Heritage Landing, 1050 7th St, Muskegon MI 49441
Additional Insured: City of Muskegon, MI, all elected and appointed officials, all employees and volunteers, all boards, commissions, and/or authorities and
board members, including employees and volunteers thereof, Boys & Girls Club of the Muskegon Lakeshore, Neal Fitness Center, i'move Physical Therapy,
and the County of Muskegon
CERTIFICATE HOLDER CANCELLATION
SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE
THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN
ACCORDANCE WITH THE POLICY PROVISIONS.
Boys & Girls of the Muskegon Lakeshore
P.O. Box 1018 AUTHORIZED REPRESENTATIVE
Muskegon MI 49443
© 1988-2010 ACORD CORPORATION. All rights reserved.
ACORD 25 (2010/05) The ACORD name and logo are registered marks of ACORD
Page 76 of 209
Boys & Girls Club of the Muskegon Lakeshore Pyrotecnico Fireworks Inc.
Heritage Landing, 1050 7th St, Muskegon MI 49441 4/5/2024 Michael Falk
No spectators inside
the RED Safety Circle
during the display.
210’
Launch Location Setup area: 50’ X 50’ Radius from setup area: 210’
Page 77 of 209
The LEGISLATIVE BODY OF CITY, VILLAGE OR TOWNSHIP BOARD will not discriminate against any individual
or group because of race, sex, religion, age, national origin, color, marital status, disability, or political beliefs. If you
Authority: 2011 PA 256 need assistance with reading, writing, hearing, etc., under the Americans with Disabilities Act, you may make your
needs known to this Legislative Body of City, Village or Township Board.
TYPE OF PERMIT(S) (Select all applicable boxes)
Agricultural or Wildlife Fireworks Articles Pyrotechnic Display Fireworks
Public Display Private Display
Special Effects Manufactured for Outdoor Pest Control or Agricultural Purposes
NAME OF APPLICANT ADDRESS OF APPLICANT AGE OF APPLICANT 18 YEARS OR OLDER
Pyrotecnico Fireworks, Inc. 299 Wilson Rd, New Castle, PA 16101 X YES NO
NAME OF PERSON OR RESIDENT AGENT REPRESENTING ADDRESS PERSON OR RESIDENT AGENT REPRESENTING CORPORATION, LLC, DBA OR OTHER
CORPORATION, LLC, DBA OR OTHER
Stephen Vitale 299 Wilson Rd, New Castle, PA 16101
IF A NON-RESIDENT APPLICANT (LIST NAME OF MICHIGAN ATTORNEY ADDRESS (MICHIGAN ATTORNEY OR MICHIGAN RESIDENT TELEPHONE NUMBER
OR MICHIGAN RESIDENT AGENT) AGENT)
Michael Falk 4369 E Summit Woods Dr NE, Rockford, MI 49341 616.427.0377
NAME OF PYROTECHNIC OPERATOR ADDRESS OF PYROTECHNIC OPERATOR AGE OF PYROTECHNIC OPERATOR 18 YEARS OR
OLDER
Michael Falk 4369 E Summit Woods Dr NE, Rockford, MI 49341 X YES NO
NO. YEARS EXPERIENCE NO. DISPLAYS WHERE
34 years 450+ displays Michigan, Indiana, Illinois, Missouri, Texas, Florida, California, Nevada
NAME OF ASSISTANT ADDRESS OF ASSISTANT AGE OF ASSISTANT 18 YEARS OR OLDER
Matthew Falk 4369 E Summit Woods Dr NE, Rockford, MI 49341 X YES NO
NAME OF OTHER ASSISTANT ADDRESS OF OTHER ASSISTANT AGE OF OTHER ASSISTANT 18 YEARS OR OLDER
Jacob Boers 4369 E Summit Woods Dr NE, Rockford, MI 49341 X YES NO
EXACT LOCATION OF PROPOSED DISPLAY
Heritage Landing, 1050 – 7th St., Muskegon MI 49441
DATE OF PROPOSED DISPLAY TIME OF PROPOSED DISPLAY
May 18, 2024 Approx, 10:00 pm
MANNER AND PLACE OF STORAGE, SUBJECT TO APPROVAL OF LOCAL FIRE AUTHORITIES, IN ACCORDANCE WITH NFPA 1123, 1124 & 1126 AND OTHER STATE OR FEDERAL REGULATIONS.
PROVIDE PROOF OF PROPER LICENSING OR PERMITTING BY STATE OR FEDERAL GOVERNMENT
No storage necessary, delivered on date of display
AMOUNT OF BOND OR INSURANCE (TO BE SET BY LOCAL GOVERNMENT) NAME OF BONDING CORPORATION OR INSURANCE COMPANY
$10,000,000.00 Britton-Gallagher & Associates
ADDRESS OF BONDING CORPORATION OR INSURANCE COMPANY
One Cleveland Center, Floor 30; 1375 East 9th Street, Cleveland, OH 44114
NUMBER OF FIREWORKS KIND OF FIREWORKS TO BE DISPLAYED (Please provide additional pages as needed)
Approximately 800 Aerial display shells ranging in size from 1 ¼ inches to 3 inches in diameter
SIGNATURE OF APPLICANT DATE
April 15, 2024
BFS-417 (Rev 01/21)
Page 78 of 209
Bureau of Fire Services
P.O. Box 30700
Lansing, MI 48909
(517) 241-8847
Authority: 1988 PA 358 The Department of Energy, Labor & Economic Growth will not discriminate against any individual or group because or
Compliance: Voluntary race, sex, religion, age, national origin, color, material status, disability, or political beliefs. If you need assistance with
Penalty: Permit will not be issued reading, writing, hearing, etc., under the American with Disabilities Ace, you may make your needs known to this agency.
This permit is not transferable. It authorizes the resident wholesale dealer or jobber named below to have
in his or her possession fireworks of any type, for sale only to holders of permits for public display or
agriculture control.
PUBLIC DISPLAY AGRICULTURAL PEST CONTROL
Issued To Age (18 or over)
Pyrotecnico Fireworks, Inc. Yes
Address
4369 E Summit Woods Dr NE, Rockford, MI 49341
Name of Organization, Group, Firm, or Corporation
Boys & Girls Club of the Muskegon Lakeshore
Address
PO Box 1018, Muskegon MI 49443
Number and Types of Fireworks
Approximately 800 aerial display shells ranging in size from 1 ¼ inches to 3 inches in diameter.
Exact Location of Display
Heritage Landing, 1050 – 7th St., Muskegon MI 49441
City, Village, Township Date Time
City of Muskegon, MI May 18, 2024 Approx, 10:00 pm
Bond or Insurance Filed? Amount
Yes No $10,000,000.00
Issued by action of: Council Commission Board of the
City Village Township of _________________________________________
(Name of City, Village, Township)
on the __________________ day of ________________________________, ____________
____________________________________________________________________________
(Signature and Title of Council/Commission/Board Representative)
Page 2 of 4
BFS-417 (Rev 01/21)
Page 79 of 209
Instructions for Application for Fireworks Other Than Consumer or Low Impact
Applications shall be submitted to the legislative body of a city, village or township board. A permit may be issued as a result of
official action by the legislative body. A permit shall be valid only for use within the limits of the jurisdiction of the legislative body of a
city, village or township board.
1. Type of Permit – check all boxes that may apply to the type of permit needed. You may select several permit types
depending on your fireworks display. You may check with your legislative body of a city, village or township board for
assistance when making your selection. Please review the following definitions to determine which type of permit to select:
Agricultural or Wildlife Fireworks – devices distributed to farmers, ranchers, and growers through a
wildlife management program administered by the US Department of Interior or Michigan DNR.
Articles Pyrotechnic – 1.4G fireworks for professional use only that is classified as UN0431 or UN0432.
Display Fireworks – 1.3G fireworks for professional use only
Special Effects Manufactured for Outdoor Pest Control or Agricultural Purposes – devices with a
combination of chemical elements or compounds capable of burning independently of the oxygen of
the atmosphere and designed and intended to produce an audible, visual, mechanical or thermal effect
for pest or animal control.
Public Display – a fireworks display that is open to all persons for viewing.
Private Display – a fireworks display that is not open to the general public for viewing.
2. Name of applicant – list the name of the applicant. The applicant may be a person representing an organization, group, firm
or corporation, or self. If the applicant is also the operator, enter the same name in the operator’s section.
3. Address of applicant – complete the address of the applicant; include the street address, city, state and zip code.
4. Name of person or resident agent representing corporation, LLC, DBA or other – list the name of the person or resident
agent that represents the corporation, LLC, DBA or other.
5. Address of person or resident agent that represents the corporation, LLC, DBA or other – list the address of the person or
resident agent representing the corporation, LLC, DBA or other.
6. Non-resident applicant – list the name of the non-resident applicant. A non-resident applicant shall appoint a Michigan
attorney or Michigan resident agent in writing to be the applicant’s legal representative upon whom all service of process in
any action or proceeding may be served.
7. Name of pyrotechnic operator – list the name of the pyrotechnic operator. The pyrotechnic operator is the person in charge
of the display. The legislative body of a city, village or township board shall rule on the competency and qualifications of the
operator before granting a permit and may require an affidavit from the applicant as to the operator’s experience, former
pyrotechnic accidents, criminal record, sobriety, etc.
8. Address of pyrotechnic operator – list the address of the pyrotechnic operator; include the street address, city, state and zip
code.
9. Age of the pyrotechnic operator – list the age of the pyrotechnic operator; the operator must be 18 years of age or older.
10. Name of assistant – list the name of the assistant to the pyrotechnic operator;
11. Address of assistant – list the address of the assistant; include the street address, city, state and zip code. If there is more
than one assistant, please list additional assistants on a separate sheet and include the address and age of those additional
assistants.
12. Age of assistant – list the age of the assistant to the pyrotechnic operator; the assistant must be 18 years or older.
13. Name of other assistant – list the name of other assistant to the pyrotechnic operator.
14. Age of other assistant – list the age of the assistant to the pyrotechnic operator; the assistant must be 18 years or older.
15. Exact location of proposed display – list the address of the exact location of the proposed fireworks display.
16. Date of proposed display – indicate the date of the proposed fireworks display; only one display date can be used per
application.
17. Time of proposed display – indicate the time of the proposed fireworks display.
18. Manner and place of storage - indicate the manner and place of storage within the legislative body of a city, village or
township board of fireworks that are ready for display, just prior to the display in the area of exhibition. The legislative body
of a city, village or township board shall obtain approval from the local fire authorities of the manner and place of storage
before any permit is issued.
Page 3 of 4
BFS-417 (Rev 01/21)
Page 80 of 209
19. Amount of bond or insurance - the issuing legislative body of a city, village or township board shall set the amount of and
proof of bond or insurance for the protection of the public to satisfy claims for damages to property or personal injuries
arising out of any act or omission on the part of the person, firm or corporation, or any agent or employee of the applicant.
The applicant shall assure the bond or insurance required is provided.
20. Name of bonding corporation or insurance company – provide the name of the bonding corporation or insurance company
for which the bond was issued through.
21. Address of bonding corporation or insurance company – list the address of the bonding corporation or insurance company;
include the street address, city, state and zip code.
22. Number of fireworks and kind of fireworks to be displayed– indicate the total amount of fireworks proposed for the display or
use and a description of the type of fireworks for display; such as 10 aerial bombs, 30 aerial rocket bursts, etc.
23. The application is valid for the calendar year in which the application was received and permit was issued.
24. Permit fees shall be established by the legislative body of a city, village or township board and shall be submitted to and
retained by legislative body of a city, village or township board.
25. Permitting will be in compliance with the Michigan Fireworks Safety Act, PA 256 of 2011, MCL 28.466, Section 16.
26. Mail the application to the legislative body of a city, village or township board within the location jurisdiction of the
display. DO NOT mail the application to the Bureau of Fire Services (BFS). If mailed to the BFS, it will be returned to the
sender.
Page 4 of 4
BFS-417 (Rev 01/21)
Page 81 of 209
Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: April 23, 2024 Title: American Tower Company Cellular Antenna
Renewal
Submitted by: Dan VanderHeide, Public Works Department: Public Works
Director
Brief Summary:
Staff requests approval of a lease renewal with Muskegon Cellular Partnership d/b/a Verizon Wireless
for their antenna on the tower at the Harvey Booster Pump Station.
Detailed Summary & Background:
In November of last year, the Commission approved hiring Maralat Communications, LLC (Tim
Romanowski) to negotiate several cellular antenna leases that are expiring. The first of those
renewals has reached an agreeable lease document and is attached for consideration. Although
the business name appears the same as the antenna at the filtration plant that was recently
approved, this is for the renewal of a different antenna lease at the Harvey Booster Pump Station
located near Trinity Health Hospital. The lease includes the following provisions:
• A one-time payment of $40,000 upon execution.
• Extension of the lease until November 30, 2061 if all renewals are used.
• Rent payments of $2,750 per month with a 3% annual escalator clause.
• A payment of $350 per month if any of the leased space is subleased to other cellular
providers (not currently in effect).
The total revenue to the water fund if the entire lease term is used (excluding any future sublease
payments) is approximately $2,223,750 over the next 38 years. We receive revenue from the existing
lease, but this renewal represents a revenue increase of $250 per month (plus future escalations) in
addition to the lump sum payment. The water budget will be updated in FY24-25 accordingly. The
City attorney worked with the consultant on preparation of the lease document, and staff
recommends approval.
Goal/Focus Area/Action Item Addressed:
Key Focus Areas:
Increase revenue
Goal/Action Item:
2027 GOAL 4: FINANCIAL INFRASTRUCTURE - Increase revenue
Amount Requested: Budgeted Item:
N/A Yes X No N/A
Fund(s) or Account(s): Budget Amendment Needed:
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591-000 (Water Revenue) Yes No X N/A
Recommended Motion:
Authorize the Mayor and Clerk to enter into a lease agreement with Muskegon Cellular Partnership
d/b/a Verizon Wireless for space on and near the City's communications tower at the Harvey Booster
Pump Station property with the described terms.
Approvals: Guest(s) Invited / Presenting:
Immediate Division X
Head No
Information
Technology
Other Division Heads X
Communication
Legal Review X
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THE FIRST AMENDMENT TO LAND LEASE AGREEMENT
This First Amendment to Land Lease Agreement (this “Amendment”) is made effective as of the latter
signature date hereof (the “Effective Date”) by and between City of Muskegon, a Michigan municipal
corporation (“Landlord”) and Muskegon Cellular Partnership d/b/a Verizon Wireless (“Tenant”) (Landlord
and Tenant being collectively referred to herein as the “Parties”).
RECITALS
WHEREAS, Landlord owns the real property described on Exhibit A attached hereto and by this reference
made a part hereof (the “Parent Parcel”); and
WHEREAS, Landlord (or its predecessor-in-interest) and Tenant (or its predecessor-in-interest) entered into
that certain Land Lease Agreement dated November 9, 2006 (as the same may have been amended,
collectively, the “Lease”), pursuant to which the Tenant leases a portion of the Parent Parcel and is the
beneficiary of certain easements for access and public utilities, all as more particularly described in the Lease
(such portion of the Parent Parcel so leased along with such portion of the Parent Parcel so affected,
collectively, the “Leased Premises”), which Leased Premises are also described on Exhibit A; and
WHEREAS, Tenant, Verizon Communications Inc., a Delaware corporation, and other parties identified
therein, entered into a Management Agreement and a Master Prepaid Lease, both with an effective date of
March 27, 2015 and both with ATC Sequoia LLC, a Delaware limited liability company (“American Tower”),
pursuant to which American Tower subleases, manages, operates and maintains, as applicable, the Leased
Premises, all as more particularly described therein; and
WHEREAS, Tenant has granted American Tower a limited power of attorney (the “POA”) to, among other
things, prepare, negotiate, execute, deliver, record and/or file certain documents on behalf of Tenant, all as
more particularly set forth in the POA; and
WHEREAS, Landlord and Tenant desire to amend the terms of the Lease to extend the term thereof and to
otherwise modify the Lease as expressly provided herein.
NOW THEREFORE, in consideration of the foregoing recitals and the mutual covenants set forth herein and
other good and valuable consideration, the receipt, adequacy, and sufficiency of which are hereby
acknowledged, the Parties hereby agree as follows:
1. One-Time Payment. Tenant shall pay to Landlord a one-time payment in the amount of Forty thousand
and 00/100 Dollars ($40,000.00), payable within thirty (30) days of the Effective Date and subject to the
following conditions precedent: (a) Tenant’s receipt of this Amendment executed by Landlord, on or
before April ___, 2024; (b) Tenant’s confirmation that Landlord’s statements as further set forth in this
Amendment are true, accurate, and complete, including verification of Landlord’s ownership; (c) Tenant’s
receipt of any documents and other items reasonably requested by Tenant in order to effectuate the
transaction and payment contemplated herein; and (d) receipt by Tenant of an original Memorandum (as
defined herein) executed by Landlord.
2. Lease Term Extended. Notwithstanding anything to the contrary contained in the Lease or this
Amendment, the Parties agree the Lease originally commenced on December 1, 2006 and, without giving
effect to the terms of this Amendment but assuming the exercise by Tenant of all remaining renewal
options contained in the Lease (each an “Existing Renewal Term” and, collectively, the “Existing Renewal
Terms”), the Lease is otherwise scheduled to expire on November 30, 2031. In addition to any Existing
Renewal Term(s), the Lease is hereby amended to provide Tenant with the option to extend the Lease for
an initial term of ten (10) years and each of four (4) additional five (5) year renewal terms (each a “New
Renewal Term” and, collectively, the “New Renewal Terms”). As modified by this Amendment, all Existing
Renewal Terms and New Renewal Terms shall automatically renew unless Tenant notifies Landlord that
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Tenant elects not to renew the Lease at least sixty (60) days prior to the commencement of the next
Renewal Term (as defined below). References in this Amendment to “Renewal Term” shall refer,
collectively, to the Existing Renewal Term(s) and the New Renewal Term(s). The Landlord hereby agrees to
execute and return to Tenant an original Memorandum of Lease in the form and of the substance attached
hereto as Exhibit B and by this reference made a part hereof (the “Memorandum”) executed by Landlord,
together with any applicable forms needed to record the Memorandum, which forms shall be supplied by
Tenant to Landlord. Notwithstanding anything to the contrary in the Lease, as amended, in the event the
Lease terminates prior to ten (10) years after the Effective Date hereof (the “Rent Guarantee Date”),
Tenant shall pay to Landlord in one lump-sum the total remaining Rent payments that would have
otherwise been due to the Landlord through the Rent Guarantee Date (the “Rent Guarantee Amount”)
within thirty (30) days after termination of the Lease, provided however, the Rent Guarantee Amount shall
not be paid to Landlord in the event that: (i) the Lease is terminated by Tenant due to an uncured breach
of the Lease by Landlord; or (ii) the Lease is terminated by either party or any applicable third party having
a legal or statutory right to terminate the Lease due to a condemnation or taking of the Leased Premises
and/or Parent Parcel by the applicable local, state or federal jurisdiction or agency.
3. Rent and Escalation. The Parties agree and acknowledge that the current rent payable from Tenant to
Landlord under the Lease is Two Thousand Seven Hundred Fifty and 00/100 Dollars ($2,750.00) per
month (the “Rent”). The Parties hereby acknowledge and agree that all applicable increases and
escalations to the Rent under the Lease shall continue in full force and effect through the New Renewal
Term(s). In the event of any overpayment of Rent prior to or after the Effective Date, Tenant shall have
the right to deduct from any future Rent payments an amount equal to the overpayment amount.
Notwithstanding anything to the contrary contained in the Lease, all Rent and any other payments
expressly required to be paid to Landlord under the Lease shall be paid to City of Muskegon by Tenant.
4. Revenue Share.
a. Subject to the other applicable terms, provisions, and conditions of this Section, Tenant shall pay
Landlord an amount equal to Three hundred fifty and No/100 Dollars ($350.00) per month for each
sublease, license or other collocation agreement for the use of any portion of the Leased Premises
entered into by and between Tenant or American Tower and a third party (any such party, the
“Additional Collocator”) subsequent to the Effective Date (such amount, the “Collocation Fee”). The
Collocation Fee shall not be subject to the escalations to Rent as delineated in this Amendment and/or
the Lease.
b. The initial payment of the Collocation Fee shall be due within thirty (30) days of actual receipt by
Tenant or American Tower of the first collocation payment paid by an Additional Collocator. In the
event a sublease or license with an Additional Collocator expires or terminates, Tenant’s obligation to
pay the Collocation Fee for such sublease or license shall automatically terminate upon the date of such
expiration or termination. Notwithstanding anything contained herein to the contrary, Tenant shall
have no obligation to pay to Landlord and Landlord hereby agrees not to demand or request that
Tenant pay to Landlord any Collocation Fee in connection with the sublease to or transfer of Tenant’s
obligations and/or rights under the Lease, as modified by this Amendment, to any subsidiary, parent or
affiliate of Tenant or American Tower.
c. Landlord hereby acknowledges and agrees that Tenant and American Tower have the sole and absolute
right to enter into, renew, extend, terminate, amend, restate, or otherwise modify (including, without
limitation, reducing rent or allowing the early termination of) any future or existing subleases, licenses
or collocation agreements for occupancy on the tower installed on the Leased Premises (such tower,
the “Tower”), all on such terms as Tenant and/or American Tower deem advisable, in Tenant’s and/or
American Tower’s sole and absolute discretion, notwithstanding that the same may affect the amounts
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payable to the Landlord pursuant to this Section.
d. Notwithstanding anything to the contrary contained herein, Landlord hereby acknowledges and agrees
that Tenant shall have no obligation to pay and shall not pay to Landlord any Collocation Fee in
connection with: (i) any subleases, licenses, or other collocation agreements between Tenant (or
American Tower), or Tenant’s (or American Tower’s) predecessors-in-interest, as applicable, and
American Tower or any third parties, or such third parties’ predecessors or successors-in-interest, as
applicable, entered into prior to the Effective Date (any such agreements, the “Existing Agreements”);
(ii) any amendments, modifications, extensions, renewals, and/or restatements to and/or of the
Existing Agreements entered into prior to the Effective Date or which may be entered into on or after
the Effective Date; (iii) any subleases, licenses, or other collocation agreements entered into by and
between Tenant (or American Tower) and any Additional Collocators for public emergency and/or
safety system purposes that are required or ordered by any governmental authority having jurisdiction
at or over the Leased Premises; or (iv) any subleases, licenses or other collocation agreements entered
into by and between Tenant (or American Tower) and any Additional Collocators if the Landlord has
entered into any agreements with such Additional Collocators to accommodate such Additional
Collocators’ facilities outside of the Leased Premises and such Additional Collocators pay any amounts
(whether characterized as rent, additional rent, use, occupancy or other types of fees, or any other
types of monetary consideration) to Landlord for such use.
5. Landlord and Tenant Acknowledgments. Except as modified herein, the Lease and all provisions
contained therein remain in full force and effect and are hereby ratified and affirmed. In the event there is
a conflict between the Lease and this Amendment, this Amendment shall control. The Parties hereby agree
that no defaults exist under the Lease. To the extent Tenant needed consent and/or approval from
Landlord to sublease to American Tower, Landlord’s execution of this Amendment is and shall be
considered consent to and approval of such sublease. Landlord hereby acknowledges and agrees that
Tenant shall not need consent or approval from, or to provide notice to, Landlord for installing, modifying,
repairing, or replacing improvements within the Leased Premises. Tenant shall provide prior written notice
to Landlord for any subleasing or licensing to additional customers Tenant and Tenant’s sublessees and
customers shall have vehicular (specifically including truck) and pedestrian access to the Leased Premises
from a public right of way on a 24 hours per day, 7 days per week basis, together with utilities services to
the Leased Premises from a public right of way. Upon request by Tenant and at Tenant’s sole cost and
expense and for no additional consideration to Landlord, Landlord hereby agrees to promptly execute and
return to Tenant building permits, zoning applications and other forms and documents, including a
memorandum of lease, as required for the use of the Leased Premises by Tenant and/or Tenant’s
customers, licensees, and sublessees. The terms, provisions, and conditions of this Section shall survive the
execution and delivery of this Amendment.
6. Termination. The Parties agree that Section 11 of the Lease is hereby amended to include the following
paragraph: “Landlord has the right to terminate the Lease upon any of the following events: (i) if Tenant is
in default of the terms of the Lease and the default has not been cured under Section 25 of the Lease; or
(ii) upon two (2) years prior written notice to Tenant at any time following the end of the first New
Renewal Term if Landlord determines that the Leased Premises are required to be used for another
municipal purpose in Landlord’s reasonable discretion and there are no reasonable alternative locations
for such use in Landlord’s sole discretion.
7. Landlord Statements. Landlord hereby represents and warrants to Tenant that: (i) to the extent
applicable, Landlord is duly organized, validly existing, and in good standing in the jurisdiction in which
Landlord was organized, formed, or incorporated, as applicable, and is otherwise in good standing and
authorized to transact business in each other jurisdiction in which such qualifications are required; (ii)
Landlord has the full power and authority to enter into and perform its obligations under this Amdnement,
and, to the extent applicable, the person(s) executing this Amendment on behalf of Landlord, have the
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authority to enter into and deliver this Amendment on behalf of Landlord; and (iii) no consent,
authorization, order, or approval of, or filing or registration with, any governmental authority or other
person or entity is required for the execution and delivery by Landlord of this Amendment.
8. Notices. The Parties acknowledge and agree that Section 21 of the Lease is hereby deleted in its entirety
and is of no further force and effect. From and after the Effective Date the notice address and
requirements of the Lease, as modified by this Amendment, shall be controlled by this Section of this
Amendment. All notices must be in writing and shall be valid upon receipt when delivered by hand, by
nationally recognized courier service, or by First Class United States Mail, certified, return receipt
requested to the addresses set forth herein: to Landlord at: 1350 E KEATING, MUSKEGON, MI 49442; to
Tenant at: Verizon Wireless, Attn.: Network Real Estate, 180 Washington Valley Road, Bedminster, NJ
07921; with copy to: American Tower, Attn.: Land Management, 10 Presidential Way, Woburn, MA 01801;
and also with copy to: Attn.: Legal Dept. 116 Huntington Avenue, Boston, MA 02116. Any of the Parties,
by thirty (30) days prior written notice to the others in the manner provided herein, may designate one or
more different notice addresses from those set forth above. Refusal to accept delivery of any notice or the
inability to deliver any notice because of a changed address for which no notice was given as required
herein, shall be deemed to be receipt of any such notice.
9. Counterparts. This Amendment may be executed in several counterparts, each of which when so
executed and delivered, shall be deemed an original and all of which, when taken together, shall constitute
one and the same instrument, even though all Parties are not signatories to the original or the same
counterpart. Furthermore, the Parties may execute and deliver this Amendment by electronic means such
as .pdf or similar format. Each of the Parties agrees that the delivery of the Amendment by electronic
means will have the same force and effect as delivery of original signatures and that each of the Parties
may use such electronic signatures as evidence of the execution and delivery of the Amendment by all
Parties to the same extent as an original signature.
10. Governing Law. Parties acknowledge and agree that Section 19 of the Lease is hereby deleted in its
entirety and is of no further force and effect. From and after the Effective Date and notwithstanding
anything to the contrary contained in the Lease and in this Amendment, the Lease and this Amendment
shall be governed by and construed in all respects in accordance with the laws of the State of Michigan..
11. Waiver. Notwithstanding anything to the contrary contained herein, in no event shall Landlord or Tenant
be liable to the other for, and Landlord and Tenant hereby waive, to the fullest extent permitted under
applicable law, the right to recover incidental, consequential (including, without limitation, lost profits, loss
of use or loss of business opportunity), punitive, exemplary and similar damages.
12. Tenant’s Securitization Rights; Estoppel. Landlord hereby consents to the granting by Tenant and/or
American Tower of one or more leasehold mortgages, collateral assignments, liens, and/or other security
interests (collectively, a “Security Interest”) in Tenant's (or American Tower’s) interest in the Lease, as
amended, and all of Tenant’s (or American Tower’s) property and fixtures attached to and lying within the
Leased Premises and further consents to the exercise by Tenant's (or American Tower’s) mortgagee
(“Tenant’s Mortgagee”) of its rights to exercise its remedies, including without limitation foreclosure, with
respect to any such Security Interest. Landlord shall recognize the holder of any such Security Interest of
which Landlord is given prior written notice (any such holder, a “Holder”) as “Tenant” hereunder in the
event a Holder succeeds to the interest of Tenant and/or American Tower hereunder by the exercise of
such remedies. Landlord further agrees to execute a written estoppel certificate within thirty (30) days of
written request of the same by Tenant, American Tower or Holder.
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13. Conflict/Capitalized Terms. The Parties hereby acknowledge and agree that in the event of a conflict
between the terms and provisions of this Amendment and those contained in the Lease, the terms and
provisions of this Amendment shall control. Except as otherwise defined or expressly provided in this
Amendment, all capitalized terms used in this Amendment shall have the meanings or definitions ascribed
to them in the Lease. To the extent of any inconsistency in or conflict between the meaning, definition, or
usage of any capitalized terms in this Amendment and the meaning, definition, or usage of any such
capitalized terms or similar or analogous terms in the Lease, the meaning, definition, or usage of any such
capitalized terms in this Amendment shall control.
[SIGNATURES COMMENCE ON FOLLOWING PAGE]
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LANDLORD:
City of Muskegon,
a Michigan municipal corporation,
Signature: _____________________________
Print Name: ____________________________
Title: _________________________________
Date: _________________________________
Signature: _____________________________
Print Name: ____________________________
Title: _________________________________
Date: _________________________________
[SIGNATURES CONTINUE ON FOLLOWING PAGE]
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TENANT:
Muskegon Cellular Partnership d/b/a Verizon Wireless
By: ATC Sequoia LLC, a Delaware limited liability company
Title: Attorney-in-Fact
Signature: _____________________________
Print Name: ____________________________
Title: _________________________________
Date: _________________________________
ATC Site No: 412769
VZW Site No: 139757
Site Name: Mona Lake MI-702 MI
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EXHIBIT A
This Exhibit A may be replaced at Tenant’s option as described below.
PARENT PARCEL
Tenant shall have the right to replace this description with a description obtained from Landlord’s deed (or
deeds) that include the land area encompassed by the Lease and Tenant’s improvements thereon.
The Parent Parcel consists of the entire legal taxable lot owned by Landlord as described in a deed (or deeds)
to Landlord of which the Leased Premises is a part thereof with such Parent Parcel being described below:
Being situated in the County of Muskegon, State of MI, and being known as
Muskegon County APN: 24-133-400-0013-00.
LEASED PREMISES
Tenant shall have the right to replace this description with a description obtained from the Lease or from a
description obtained from an as-built survey conducted by Tenant.
The Leased Premises consists of that portion of the Parent Parcel as defined in the Lease which shall include
access and utilities easements. The square footage of the Leased Premises shall be the greater of: (i) the land
area conveyed to Tenant in the Lease; (ii) Tenant’s (and Tenant’s customers) existing improvements on the
Parent Parcel; or (iii) the legal description or depiction below (if any).
ACCESS AND UTILITIES
The access and utility easements include all easements of record as well that portion of the Parent Parcel
currently utilized by Tenant (and Tenant’s customers) for ingress, egress and utility purposes from the Leased
Premises to and from a public right of way including but not limited to:
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EXHIBIT B
FORM OF MEMORANDUM OF LEASE
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Prepared by and Return to:
American Tower
10 Presidential Way
Woburn, MA 01801
Attn: Land Management/Nghia Trinh, Esq. Prior Recorded Lease Reference:
ATC Site No: 412769
ATC Site Name: Mona Lake MI-702 MI State of Michigan
Assessor’s Parcel No(s): 24-133-400-0013-00 County of Muskegon
MEMORANDUM OF LEASE
This Memorandum of Lease (the “Memorandum”) is entered into as of the latter signature date hereof, by
and between City of Muskegon, a Michigan municipal corporation(“Landlord”) and Muskegon Cellular
Partnership d/b/a Verizon Wireless (“Tenant”).
NOTICE is hereby given of the Lease (as defined and described below) for the purpose of recording and giving
notice of the existence of said Lease. To the extent that notice of such Lease has previously been recorded,
then this Memorandum shall constitute an amendment of any such prior recorded notice(s).
1. Parent Parcel and Lease. Landlord is the owner of certain real property being described in Exhibit A
attached hereto and by this reference made a part hereof (the “Parent Parcel”). Landlord (or its
predecessor-in-interest) and Tenant (or its predecessor-in-interest) entered into that certain Land Lease
Agreement dated November 9, 2006 (as the same may have been amended from time to time, collectively,
the “Lease”), pursuant to which the Tenant leases a portion of the Parent Parcel and is the beneficiary of
certain easements for access and public utilities, all as more particularly described in the Lease (such
portion of the Parent Parcel so leased along with such portion of the Parent Parcel so affected, collectively,
the “Leased Premises”), which Leased Premises is also described on Exhibit A.
2. American Tower. Tenant, Verizon Communications Inc., a Delaware corporation, and other parties
identified therein, entered into a Management Agreement and a Master Prepaid Lease, both with an
effective date of March 27, 2015 and both with ATC Sequoia LLC, a Delaware limited liability company
(“American Tower”), pursuant to which American Tower subleases, manages, operates and maintains, as
applicable, the Leased Premises, all as more particularly described therein. In connection with these
responsibilities, Tenant has also granted American Tower a limited power of attorney (the “POA”) to,
among other things, prepare, negotiate, execute, deliver, record and/or file certain documents on behalf
of Tenant, all as more particularly set forth in the POA.
3. Expiration Date. Subject to the terms, provisions, and conditions of the Lease, and assuming the exercise
by Tenant of all renewal options contained in the Lease, the final expiration date of the Lease would be
November 30, 2061. Notwithstanding the foregoing, in no event shall Tenant be required to exercise any
option to renew the term of the Lease.
4. Leased Premises Description. Tenant shall have the right, exercisable by Tenant at any time during the
original or renewal terms of the Lease, to cause an as-built survey of the Leased Premises to be prepared
and, thereafter, to replace, in whole or in part, the description(s) of the Leased Premises set forth on
Exhibit A with a legal description or legal descriptions based upon such as-built survey. Upon Tenant’s
request, Landlord shall execute and deliver any documents reasonably necessary to effectuate such
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replacement, including, without limitation, amendments to this Memorandum and to the Lease.
5. Right of First Refusal. There is a right of first refusal in the Lease.
6. Effect/Miscellaneous. This Memorandum is not a complete summary of the terms, provisions and
conditions contained in the Lease. In the event of a conflict between this Memorandum and the Lease,
the Lease shall control. Landlord hereby grants the right to Tenant to complete and execute on behalf of
Landlord any government or transfer tax forms necessary for the recording of this Memorandum. This
right shall terminate upon recording of this Memorandum.
7. Notices. All notices must be in writing and shall be valid upon receipt when delivered by hand, by
nationally recognized courier service, or by First Class United States Mail, certified, return receipt
requested to the addresses set forth herein: to Landlord at: 1350 E KEATING, MUSKEGON, MI 49442; to
Tenant at: Verizon Wireless, Attn.: Network Real Estate, 180 Washington Valley Road, Bedminster, NJ
07921; with copy to: American Tower, Attn.: Land Management, 10 Presidential Way, Woburn, MA 01801,
and also with copy to: Attn.: Legal Dept. 116 Huntington Avenue, Boston, MA 02116. Any of the parties
hereto, by thirty (30) days prior written notice to the other in the manner provided herein, may designate
one or more different notice addresses from those set forth above. Refusal to accept delivery of any
notice or the inability to deliver any notice because of a changed address for which no notice was given as
required herein, shall be deemed to be receipt of any such notice.
8. Counterparts. This Memorandum may be executed in multiple counterparts, each of which when so
executed and delivered, shall be deemed an original and all of which, when taken together, shall constitute
one and the same instrument.
9. Governing Law. This Memorandum shall be governed by and construed in all respects in accordance with
the laws of the State or Commonwealth in which the Leased Premises is situated, without regard to the
conflicts of laws provisions of such State or Commonwealth.
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IN WITNESS WHEREOF, Landlord and Tenant have each executed this Memorandum as of the day and year
set forth below.
LANDLORD 2 WITNESSES
City of Muskegon,
a Michigan municipal corporation,
Signature: _____________________________
Signature: _____________________________ Print Name: ____________________________
Print Name: ____________________________
Title: _________________________________ Signature: _____________________________
Date: _________________________________ Print Name: ____________________________
WITNESS AND ACKNOWLEDGEMENT
State/Commonwealth of _____________________
County of ________________________
On this ____ day of _____________________, 202___, before me, the undersigned Notary Public,
personally appeared _____________________________________________, who proved to me on the basis
of satisfactory evidence, to be the person(s) whose name(s) is/are subscribed to the within instrument and
acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that
by his/her/their signature(s) on the instrument, the person(s) or the entity upon which the person(s) acted,
executed the instrument.
WITNESS my hand and official seal.
___________________________________
Notary Public
Print Name: _________________________
My commission expires: _______________ [SEAL]
[SIGNATURES CONTINUE ON FOLLOWING PAGE]
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TENANT WITNESS
Muskegon Cellular Partnership d/b/a Verizon
Wireless
By: ATC Sequoia LLC, Signature: _____________________________
a Delaware limited liability company Print Name: ____________________________
Title: Attorney-in-Fact
Signature: _____________________________
Signature: _____________________________ Print Name: ____________________________
Print Name: ____________________________
Title: _________________________________
Date: _________________________________
WITNESS AND ACKNOWLEDGEMENT
Commonwealth of Massachusetts
County of Middlesex
On this ____ day of _____________________, 202___, before me, the undersigned Notary Public,
personally appeared _____________________________________________, who proved to me on the basis
of satisfactory evidence, to be the person(s) whose name(s) is/are subscribed to the within instrument and
acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that
by his/her/their signature(s) on the instrument, the person(s) or the entity upon which the person(s) acted,
executed the instrument.
WITNESS my hand and official seal.
___________________________________
Notary Public
Print Name: _________________________
My commission expires: _______________ [SEAL]
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EXHIBIT A
This Exhibit A may be replaced at Tenant’s option as described below.
PARENT PARCEL
Tenant shall have the right to replace this description with a description obtained from Landlord’s deed (or
deeds) that include the land area encompassed by the Lease and Tenant’s improvements thereon.
The Parent Parcel consists of the entire legal taxable lot owned by Landlord as described in a deed (or deeds)
to Landlord of which the Leased Premises is a part thereof with such Parent Parcel being described below:
Being situated in the County of Muskegon, State of MI, and being known as
Muskegon County APN: 24-133-400-0013-00.
LEASED PREMISES
Tenant shall have the right to replace this description with a description obtained from the Lease or from a
description obtained from an as-built survey conducted by Tenant.
The Leased Premises consists of that portion of the Parent Parcel as defined in the Lease which shall include
access and utilities easements. The square footage of the Leased Premises shall be the greater of: (i) the land
area conveyed to Tenant in the Lease; (ii) Tenant’s (and Tenant’s customers) existing improvements on the
Parent Parcel; or (iii) the legal description or depiction below (if any).
ACCESS AND UTILITIES
The access and utility easements include all easements of record as well that portion of the Parent Parcel
currently utilized by Tenant (and Tenant’s customers) for ingress, egress and utility purposes from the Leased
Premises to and from a public right of way including but not limited to:
ATC Site No: 412769
VZW Site No: 139757
Site Name: Mona Lake MI-702 MI
Page 97 of 209
Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: April 23, 2024 Title: 2024 Annual Action Plan
Submitted by: Sharonda Carson, CNS Director Department: Community & Neighborhood
Services
Brief Summary:
Citizen input is a necessary process of program activities for the CDBG/HOME
annual allocations. The 2024Annual Action Plan comment period is another opportunity to comment
on the programs and activities proposed during the Hearing.
Detailed Summary & Background:
The Annual Action Plan is available on our website for citizen review and comment period of 30 days
from April 16 -May 16, 2023. A public hearing is another opportunity to comment about the Federal
CDBG and HOME program activities performed during the fiscal year 2024 (July 1,2024 - June 30,
2025).
Goal/Focus Area/Action Item Addressed:
Key Focus Areas:
Goal/Action Item:
Amount Requested: Budgeted Item:
Yes No x N/A
Fund(s) or Account(s): Budget Amendment Needed:
Yes No x N/A
Recommended Motion:
To conduct a Public Hearing for the 2024 Annual Action Plan review.
Approvals: Guest(s) Invited / Presenting:
Immediate Division x
Head No
Information
Technology
Other Division Heads
Communication
Legal Review
Page 98 of 209
Page 99 of 209
City of Muskegon
Notice to the Public
Availability of Action Plan
The City of Muskegon has a proposed 2024 Annual Action Plan for review from April 15- May
15, 2024 for plan year July 2024- June 2025 funding the following programs: Community
Development Block Grant (CDBG) and HOME (Home Investment Partnership) funds. The
City of Muskegon has priorities stated in its 2021 -2025 Consolidated Plan. These priorities
are translated into the City’s Annual Action Plan Budgets.
Public Hearing - Comment Period
There will be a public hearing for citizen comments. Two meetings will be in the Commission
Chambers at Muskegon City Hall, 933 Terrace Street, Muskegon 49440. The first meeting
will be Tuesday, April 23, 2024 at 5:30 p.m. during the City Commission Meeting and the
second will be held Thursday, April 25, 2024, at 10:00 a.m.
Comments will be accepted through May 15, 2024. All comments received during the 30 day
period will be summarized and included in the Action Plan. Citizens may obtain information
and submit comments by letter, telephone or e-mail to:
Community and Neighborhood Services
Sharonda Carson, Director
City Hall / 933 Terrace St
Muskegon, MI 49440
(231) 724-6968
sharonda.carson@shorelinecity.com
The proposed 2024-2025 Action Plan list of activities is available on the City of Muskegon’s
website at:
https://muskegon-mi.gov/2024-annual-action-plan/
As well as the following locations:
City of Muskegon City of Muskegon
Clerk’s Office Comm & Neighborhood Svc
933 Terrace St. 933 Terrace St, 2nd Floor
Muskegon, MI 49440 Muskegon, MI 49440
Hackley Library Muskegon Housing Commission
Circulation Desk 1080 Terrace St
316 W. Webster Ave Muskegon, MI 49442
Muskegon, MI 49440
Publish: April 14, 2024
Page 100 of 209
Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: April 23, 2024 Title: STR Exemption Appeal - 1450 Nelson
Submitted by: Jonathan Seyferth, City Manager Department: Manager's Office
Brief Summary:
Appeal of an administrative denial to receive an exemption to the STR registration pause for 1450
Nelson.
Detailed Summary & Background:
The owners of 1450 Nelson Street applied for a special exemption to the current Short-Term Rental
Pause, which was implemented on March 12, 2024. Their appeal was received in the City Manager's
office on Monday, March 25.
Their request was reviewed based on the STR Appeal Guidelines (attached), which can also be
found on the STR Connect Muskegon Page. The three primary factors considered in an STR review are
(only 1 of the 3 standards need to be met for an exemption to be issued):
• Property was in the process of being purchased at the time the pause went into place (an
offer must have been accepted before the pause was put into place).
• Permits have been issued for work to build/update a property
• Work completed to date on the property related to a transition to being a Short Term Rental
After reviewing the information provided by the applicants, it showed the following:
- The property is a vacant lot and was purchased in 2021 (I incorrectly noted 2022 in the denial
letter).
- There are no active permits on the property (there have been permits in the past, but those have
expired, including Critical Dune Permit (Nov. 2021), Building Permit (Nov. 2021), Soil Erosion Permit
(Nov. 2021).
- No work has been completed on the property to date.
The owners have been planning to contract with a home builder sometime in 2024 with a goal of
completing construction in 2025. They were applying for an exemption to have some assurances they
could use the home as an STR in 2025 once construction was complete.
The denial of the Exemption from the City Manager's office was based on the fact that none of the
three criteria were met at this time and, as noted in the denial letter (attached), that the construction
timeline would largely be after the City's goal of having new STR policies in place.
Also attached is an appeal letter from the property owners as well as other communication
(including the original application letter) between the City Manager's office and the property owner.
Please note this is at the discretion of the City Commission. The staff has no recommendation
regarding an action.
Page 101 of 209
Regarding procedure - staff recommends that the Commission have the City Manager present the
findings and materials and then, ask the property owners, Dr. Leigh Pava Wendtland & Mr. Carlos
Pava if they would like to present any additional information. Staff and the applicant can then
answer any questions from the Commission. Based on the discussion, the Commission would either
grant an exemption or uphold the current denial.
Goal/Focus Area/Action Item Addressed:
Key Focus Areas:
Goal/Action Item:
Administrative Action
Amount Requested: Budgeted Item:
n/a Yes No N/A X
Fund(s) or Account(s): Budget Amendment Needed:
n/a Yes No N/A X
Recommended Motion:
n/a
Approvals: Guest(s) Invited / Presenting:
Immediate Division
Head Yes
Information
Technology
Other Division Heads
Communication
Legal Review
Page 102 of 209
ADMINISTRATIVE REVIEW STR
REGISTRATION PAUSE
Date: March 11, 2024
PURPOSE:
One goal of the registration pause adopted by the City Commission on March 12, 2024 is to
allow for reasonable and fair exceptions while preserving the pause’s purpose and intent, which
is to limit the issuance of short-term rental (STR) approvals (outside of the DDA and business
districts) as much as possible. To that end, the Commission finds that establishing a special
exception petition process for certain discrete situations is in the best interest of the entire
community, including property owners who will benefit from having a clear understanding of
whether and when they might be eligible to apply for a STR license. This petition process will be
housed in the City Manager’s office.
OVERVIEW:
Any developer, person, or entity that:
(1). has a vested interest in a property (including an accepted offer to purchase);
(2). has received a permit to make improvements to the property, and/or;
(3) achieved substantial progress on construction/updates to the property prior to the date on
which the registration pause resolution was adopted (March 12, 2024);
may apply for a special exception to the registration pause.
Special exception applications must be submitted within 60 days (Saturday, May 11, 2024) of
the pause going into effect. If the letter is mailed, the City will use the postmark on the letter to
determine if the appeal was sent within the 60-day appeal window. If the application is sent by
email, only those received by Saturday, May 11 will be considered.
APPLICATION:
Applicants must file a letter (e-mail is acceptable) with the City Manager’s office requesting a
special exception to the registration pause with the following information:
a. Business Name, address, phone number and email of the applicant
b. Name of applicant/responsible party
c. Address of the property
d. Zoning of the property
e. Date the property was acquired (or offer was accepted if an offer is pending)
f. List of all current permits, including dates issued
g. Budget for project update, percent of project completed to date of application
Page 103 of 209
h. Expected date of completion
i. Short explanation of the request of a special exception
If the review request is related to a property sale that is pending at the time the pause is put
into place, special consideration will be given to an expedited decision. This situation must be
noted in the letter requesting a special exception.
The City Manager or their designee may request additional information when it is determined
to be reasonably necessary to arrive at a conclusion regarding the petition.
REVIEW:
The City Manager or their designee shall review a completed application within 10 business
days after the submission of the application. If additional information is requested, five (5)
additional business days will be added to the review once the additional information is
received.
STANDARDS:
The special exception is a right to proceed with the submission and consideration of a short-
term rental license application under the existing land use regulations or pursuant to an
approved permit or site-specific development plan. The finding of qualification as a special
exception shall allow the applicant the right to submission and processing of a short-term rental
license only; any such license application shall be subject to all applicable laws, rules,
regulations and ordinances and may be denied, approved, or conditionally approved.
BURDEN OF PROOF, DECISION:
The applicant shall have the burden of proving by a preponderance of evidence their eligibility
for a special exception as provided herein.
CRITERIA FOR DECISION:
The City Manager or their designee shall, on the basis of the evidence and information
available, and in light of all relevant circumstances, make the determination as to whether the
applicant has met the criteria set forth herein.
CIRCUMSTANCES TO BE CONSIDERED:
- Property was in the process of being purchased at the time the pause went into place
(an offer must have been accepted before the pause was put into place).
- Permits have been issued for work to build/update a property.
- Work completed to date on the property related to a transition to being a Short Term
Rental.
*note, ownership of a property at the time the pause is put into place does not necessarily
meet the criteria to be granted a special exception to the pause. Steps, such as those listed
Page 104 of 209
here, must also have been taken prior to the beginning of the pause. Property acquisition must
be in process at the time the pause was started
APPEALS:
An applicant shall be provided notice of the decision regarding the petition within three (3)
business days of such decision. The applicant may appeal any such decision to the City
Commission within 10 days of the receipt of such decision. The City Commission will take up
their appeal within 30-days.
If an applicant is issued a special exception (either by the City Manager’s office or Commission)
a letter will be issued to the applicant which must be submitted to the building department
when applying for a STR license/inspection.
Appeal Letters/Emails must be sent to:
City of Muskegon
City Manager’s Office
ATTN: Jonathan Seyferth
933 Terrace St.
Muskegon, MI 49440
Email:
Jonathan@shorelinecity.com
231.724.6724 Phone
Page 105 of 209
4/3/24, 1:20 PM Mail - Jonathan Seyferth - Outlook
1450 Nelson St. ATR Appeal Response
Jonathan Seyferth
Wed 4/3/2024 1:19 PM
To:LIA
Cc:Carlos Pava ;Kim Spittler(Safebuilt)
1 attachments (291 KB)
20240403 1450 Nelson St Appeal DENIED.pdf;
Dear Ms. Wendtland Pava & Mr. Pava -
Thank you for submitting information and requesting an exemption to the STR registration pause.
Unfortunately, with the information provided I could not grant an exemption to the pause at this time.
I've provided some context in the attached letter.
Please note, this is a temporary pause and the City will be putting new regulations into place to manager
STR growth in the future.
If you would like to appeal this decision to the City Commission, you may do so. An explanation of how
to do that is also in the letter.
I'm sorry my response cannot be more favorable.
Sincerely,
Jonathan Seyferth, ICMA-CM
(He/Him/His)
City Manager – City of Muskegon
933 Terrace Street, Muskegon, MI 49440
231-724-6724 Office
231-286-8458 Cell
www.shorelinecity.com
https://outlook.office365.com/mail/sentitems/id/AAQkAGJlMGNmOTQxLWRlZmYtNDBhMC1iM2YwLWQ4ZWU3MjM2YTdjNwAQAHCwQD4Py8dNgu…
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Affirmative Action
(231)724-6703
FAX (231)722-1214
Assessor/
Equalization Co.
(231)724-6386
FAX (231)724-1129
Cemetery/Forestry
(231)724-6783
FAX (231)724-4188
City Manager
(231)724-6724
FAX (231)722-1214 April 3, 2024
Clerk
(231)724-6705
FAX (231)724-4178 Leigh Pava Wendtland & Carlos Pava
635 Eastview CT NE
Comm. & Neigh.
Services Grand Rapids, MI 49525
(231)724-6717
FAX (231)726-2501
RE: 1450 Nelson St – STR Special Exception Denied
Computer Info.
Technology
(231)724-4126 Dear Ms. Peva Wendtland & Mr. Pava,
FAX (231)722-4301
Thank you for submitting your application for a Special Exception to the Short-Term Rental Registration
Engineering pause that was put into effect by the Muskegon City Commission on Tuesday, March 12, 2024.
(231)724-6707
FAX (231)727-6904
Your completed application for 1450 Nelson Street was received by my office on Monday, March 25,
Finance
(231)724-6713 2024 via email.
FAX (231)726-2325
Fire Department Given the information provided I find that your exception to the pause is denied given the facts that:
(231)724-6795
FAX (231)724-6985
1. The property was not in the process of being purchased at the time the pause went into place (the
Human Resources property was purchased in 2022),
Co. (Civil Service)
(231)724-6442 2. The property has no active permits (Rental or building), and
FAX (231)724-6840 3. No work is currenting active to update the property which would cause it not to be an active rental.
Income Tax
(231)724-6770 It’s noted from your application that you intend to start construction in August 2024 with completion in
FAX (231)724-6768
the Spring of 2025. It is the City’s intent to have new STR guidelines in place by the fall of 2024. Given
Mayor’s Office that timeline and there is not current a home to inspect as a rental, in addition to the criteria noted above,
(231)724-6701
FAX (231)722-1214 an exception to the pause cannot be issued.
Planning/Zoning
(231)724-6702 I’m sorry I could not provide a more favorable response. If you would like to appeal this decision, you
FAX (231)724-6790 may do so by appealing to the City Commission (commission appeals can be sent to me at
Police Department jonathan@shorelinecity.com) and I will notify the Commission of the appeal. The appeal must be received
(231)724-6750 with in 10 business days (by the end of the day, Thursday, April 18, 2024). Appeals are placed on a City
FAX (231)722-5140
Commission agenda within 30 days.
Public Works
(231)724-4100
FAX (231)722-4188 Sincerely,
SafeBuilt
(Inspections)
(231)724-6715
FAX (231)728-4371
Jonathan Seyferth, ICMA-CM
Treasurer
(231)724-6720 City Manager
FAX (231)724-6768
Water Billing cc: K. Spittler, Building Department (SafeBuilt)
(231)724-6718
FAX (231)724-6768
Water Filtration
(231)724-4106
FAX (231)755-5290
Page 107 of 209
4/16/24, 2:01 PM Mail - Jonathan Seyferth - Outlook
Re: 1450 Nelson St. ATR Appeal Response
Leigh Wendtland
Wed 4/3/2024 7:44 PM
To:Jonathan Seyferth
Cc:Carlos Pava ;Kim Spittler(Safebuilt)
Hello Mr Seyferth,
We are writing to appeal the decision to deny our application for a short term rental license. Given that
this moratorium was enacted for this particular issue of concerns related to STR's in the
Muskegon area, I imagine each case must be. considered for it's unique aspects. We are in a position
where we understand that pre-build would not be the time to apply for a STR license, and that the STR
license is provided when the property is inspected (I am making the assumption that the inspection
assures that the home is fit for renting, meets building standards and codes etc). Under normal
circumstances, we would not be concerned about obtaining a license at this time, as we have full
intention of building an attractive, appropriate and code-compliant building. Our concern is related to
the potential outcome of the moratorium and how that could impact our plans .We have spent two
years saving and planning for this property. We have what we believe is an appropriate and
beautiful home intended for short term rentals. So that you understand the things we have
considered, with STR's: there is no need for large walk-in closets or expansive kitchens, yet there are
considerations made for storage etc that might be different if it were a home for someone to live in
day-to-day. I mention these things because some might think it would be the same to build and sell a
"regular home" as it would a STR but there are considerations we have made to accomodate the
person who is coming to visit the area that are different from someone living in the home long term.
Our concern is that once the moratorium is lifted, what if some of the stipulations being considered
are enacted? What if there are only a certain number allowed on Nelson St and we are over that
number? In that outcome, we will then be in a situation where we have built a home, intended for
investment, and bought furniture intended to accommodate the space for renters that we may not
need thus having spent a lot of money on planning and furniture that may have been for nothing. In
addition, we will have built a home that may not sell to a permanent resident for the cost we built it
because of the changes implemented for the STR function.
I guess what we are hoping for is some sort of assurance that if we build, and we do so having had the
intention to construct a STR since purchasing the property ,that we will be able to obtain a STR license
and proceed with our investment. You can perhaps see why we are concerned about current
moratorium and the resulting outcome.
Thank you so much for your time and consideration. Please provide this explanation with all the other
documentation we have provided to the committee so we can present our appeal to the commission
on April 23rd
Sincerely,
Leigh Wendtland and Carlos Pava
On Wed, Apr 3, 2024 at 5:50 PM Jonathan Seyferth wrote:
Good Evening -
I wanted to let you know that I've added the appeal to the meeting agenda for April 23.
https://outlook.office365.com/mail/inbox/id/AAQkAGJlMGNmOTQxLWRlZmYtNDBhMC1iM2YwLWQ4ZWU3MjM2YTdjNwAQAHCwQD4Py8dNguCg8l…
Page 108 1/5
of 209
4/16/24, 2:01 PM Mail - Jonathan Seyferth - Outlook
Please have items to me ideally by Friday, April 12. If you need the weekend to finish things up, let me
know. I can add the attachments on Monday, April 15 (agenda packets go out on Tuesday, April 16 to
the City Commission).
I will attach the original emails/letters and documents you sent me as well as the denial letter I sent
you, so you only need to submit additional info/documents.
If you have questions, please don't hesitate to reach out. My cell is 231.286.8458 if you have logistical
questions.
thanks,
Jonathan Seyferth, icma-cm
(he/him/his)
City Manager
City of Muskegon
From: Leigh Pava Wendtland
Sent: Wednesday, April 3, 2024 3:39 PM
To: Jonathan Seyferth
Cc: Carlos Pava ; Kim Spittler(Safebuilt)
Subject: Re: 1450 Nelson St. ATR Appeal Response
Hello Mr Seyferth,
Please put us in the agenda and we will submit the appeal and attend the meeting .
Leigh
Sent from my iPhone
On Apr 3, 2024, at 3:29 PM, Jonathan Seyferth wrote:
Good Afternoon Mrs. Wendtland Pava and Mr. Pava -
I am sorry that I couldn't approve the appeal and I understand your frustration and
disappointment. I would encourage you to appeal to the City Commission. If you do so by
April 12 I can get you onto the April 23 City Commission meeting and they can make a
final determination.
If you like, I'll put a place holder on the agenda now and you can submit the documents
by April 12. Your appeal window goes until April 18 so if you'd like to take more time,
that's fine too. You'd then be looking at May 14 for a City Commission appeal review.
During the Commission Review you can come and attend the meeting and present your
case to the commissioners.
Again, I'm sorry I couldn't grant the appeal.
Sincerely,
https://outlook.office365.com/mail/inbox/id/AAQkAGJlMGNmOTQxLWRlZmYtNDBhMC1iM2YwLWQ4ZWU3MjM2YTdjNwAQAHCwQD4Py8dNguCg8l…
Page 109 2/5
of 209
4/16/24, 2:01 PM Mail - Jonathan Seyferth - Outlook
Jonathan Seyferth, icma-cm
(he/him/his)
City Manager
City of Muskegon
From: Leigh Wendtland
Sent: Wednesday, April 3, 2024 2:37 PM
To: Jonathan Seyferth
Cc: Carlos Pava ; Kim Spittler(Safebuilt)
Subject: Re: 1450 Nelson St. ATR Appeal Response
Hello Mr Seyferth,
This is extremely disappointing news as we had always intended to build this home as
an STR and one that we could also enjoy. We purchased the property when it came for
sale in 2022 and spent the last two years saving so we could build our investment
property to the standard we want for the area. The difficulty we have with this decision
is now we are in a position of having to continue to invest in our building with permits,
architecture fees (for which we have already made a significant investment) with the
hopes that the change in STR permits will be in our favor.
In addition, when Carlos spoke with Kim and was initially issued an STR, she assured us
that as long as our inspection cleared we would be issued the permit. Given that we did
not have a structure at that time it was our anticipation that we would receive an
exemption with the clause "once inspections have been made and passed the STR
license will be provided", thus providing us some assurance that we are not wasting our
time and money (and other people's time and money) on this venture. For example, we
will need to secure a builder for this home. If we do not have assurance that we will be
provided the exception, he is putting his work commitments on hold and investing
numerous hours providing estimates etc. for our project as well. Should a STR not be
granted or is at risk of not being granted, we are not sure this is fair to ask of the
builder, and obviously we will not be building on the property in the same (or perhaps
any) way.
I expect you will ask for me to put this in an appeal, which I will do with more detail
perhaps to help provide a clear understanding of why it is truly an unfair ask for us to
"roll the dice" on hoping we will be provided an exception for the STR license.
Leigh and Carlos
On Wed, Apr 3, 2024 at 1:20 PM Jonathan Seyferth
wrote:
Dear Ms. Wendtland Pava & Mr. Pava -
Thank you for submitting information and requesting an exemption to the STR
registration pause.
Unfortunately, with the information provided I could not grant an exemption to the
pause at this time. I've provided some context in the attached letter.
https://outlook.office365.com/mail/inbox/id/AAQkAGJlMGNmOTQxLWRlZmYtNDBhMC1iM2YwLWQ4ZWU3MjM2YTdjNwAQAHCwQD4Py8dNguCg8l…
Page 110 3/5
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4/16/24, 2:01 PM Mail - Jonathan Seyferth - Outlook
Please note, this is a temporary pause and the City will be putting new regulations into
place to manager STR growth in the future.
If you would like to appeal this decision to the City Commission, you may do so. An
explanation of how to do that is also in the letter.
I'm sorry my response cannot be more favorable.
Sincerely,
Jonathan Seyferth, ICMA-CM
(He/Him/His)
City Manager – City of Muskegon
933 Terrace Street, Muskegon, MI 49440
231-724-6724 Office
231-286-8458 Cell
www.shorelinecity.com
--
Leigh Pava Wendtland PhD
Clinical/Neuro Psychologist
Claystone Clinical Associates
WARNING: This email originated outside of the City of Muskegon email system!
DO NOT CLICK links if the sender is unknown.
NEVER provide your User ID or Password.
WARNING: This email originated outside of the City of Muskegon email system!
DO NOT CLICK links if the sender is unknown.
NEVER provide your User ID or Password.
--
Leigh Pava Wendtland PhD
Clinical/Neuro Psychologist
Claystone Clinical Associates
https://outlook.office365.com/mail/inbox/id/AAQkAGJlMGNmOTQxLWRlZmYtNDBhMC1iM2YwLWQ4ZWU3MjM2YTdjNwAQAHCwQD4Py8dNguCg8l…
Page 111 4/5
of 209
4/16/24, 2:01 PM Mail - Jonathan Seyferth - Outlook
WARNING: This email originated outside of the City of Muskegon email system!
DO NOT CLICK links if the sender is unknown.
NEVER provide your User ID or Password.
https://outlook.office365.com/mail/inbox/id/AAQkAGJlMGNmOTQxLWRlZmYtNDBhMC1iM2YwLWQ4ZWU3MjM2YTdjNwAQAHCwQD4Py8dNguCg8l…
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3/20/24, 7:48 AM Mail - Jonathan Seyferth - Outlook
Re: Request for STR license exception
Jonathan Seyferth
Wed 3/20/2024 7:47 AM
To:Carlos Pava
Cc:LIA
Good Morning,
Thank you for submitting your application for a review of the STR pause.
I'm acknowledging receipt of your application on Monday, March 18, 2024. I will review your application
by Thursday, March 28 and follow up with a response.
If I have any questions on the material submitted, I'll be sure to follow up.
Thank you again for reaching out.
Sincerely,
Jonathan Seyferth, icma-cm
(he/him/his)
City Manager
City of Muskegon
From: Carlos Pava
Sent: Sunday, March 17, 2024 8:43 PM
To: Jonathan Seyferth
Cc: LIA ; Carlos Pava
Subject: Request for STR license exception
Hello Mr. City Manager,
We are writing to request an exception to the short-term rental license moratorium. In November 2021,
we purchased property at 1405 Nelson St, Muskegon, MI 49441, with the intention of building a single
home for family visits and short-term (or long-term) rental opportunities. We have met with builders
and architects and are now in the process of obtaining plans and permits to build on this parcel. We
intend to start construction in the late summer of 2024.
We have provided the following responses in blue to the questions required for appealing for an
exception to the moratorium on STR licenses. It is worth noting that when we came to Muskegon
recently to ask about obtaining the license for an STR we were told we had to have a building/home to
inspect, which we will not have until construction is completed.
a. a. Business Name, address, phone number, and email of the applicant: Calia, 635 Eastview CT NE
Grand Rapids MI NE leighpwendtland@gmail.com and carlos@voicesforhealth.com
b. b. Name of applicant/responsible party: Leigh Pava Wendtland and Carlos Pava
c. c. Address of the property: 1450 Nelson St Muskegon, MI 49441
d. d. Zoning of the property: Recently changed to Zone 2 is our understanding
e. e. Date the property was acquired (or offer was accepted if an offer is pending): November 2021
f. f. List of all current permits, including dates issued: Critical Dune Permit (Issued November 19,
2021); Building permit (Issued November 19, 2021): Soil erosion permit (issued 9/29/2021)
https://outlook.office365.com/mail/AAMkAGJlMGNmOTQxLWRlZmYtNDBhMC1iM2YwLWQ4ZWU3MjM2YTdjNwAuAAAAAACK0xfjRgPgRa59MPkIqh… 1/2
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3/20/24, 7:48 AM Mail - Jonathan Seyferth - Outlook
g. g. Budget for project update, percent of project completed to date of application: $300,000
budget with our plans in process with our architect and building interviews having been
conducted. We have paid for the plans to be drawn and all of the necessary permits having been
done originally when we bought the property. We are aware that when we start to build, we will
need to resubmit for these permits. This property was bought with the intention of building this
upscale short-term rental.
a. h. Expected date of completion: Spring of 2025
b. i. Short explanation of the request for a special exception : (Please see attached letter)
Submitted respectfully,
Leigh Pava Wendtland and Carlos Pava
WARNING: This email originated outside of the City of Muskegon email system!
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CITY OF MUSKEGON
CRITICAL DUNE PERMIT
ISSUED TO: Permit No. 2021-04
Issued November 19, 2021
SMT Properties LLC Extended
3529 Algonquin Drive Revised
Norton Shores, MI 49441 Expires November 19, 2022
This permit is being issued by the City of Muskegon under the provisions of the Natural Resources
and Environmental Protection Act, 1994 PA 451, as amended (NREPA), and specifically:
[X] Part 353, Sand Dunes Protection and Management
Permission is hereby granted, based on permitee assurance of adherence to State of Michigan
requirements and permit conditions, to:
Permitted Activity: New Home Construction – 1450 Nelson Street, Muskegon, Michigan, Property
No. 61-24-205-775-0009-00
Water Course Affected:
Property Location: Muskegon County, City of Muskegon, Section 28
Town/Range 10N, 17W
Authority granted by this permit is subject to the following limitations:
A. Initiation of any work on the permitted project confirms the permitee’s acceptance and
agreement to comply with all terms and conditions of this permit.
B. The permitee, in exercising the authority granted by this permit shall not cause unlawful
pollution as defined by Part 31, Water Resources Protection, of the NREPA.
C. This permit shall be kept at the site of the work and available for inspection at all times during
the duration of the project or until its date of expiration.
D. All work shall be completed in accordance with the approved plans and specifications
submitted with the application and/or plans and specifications attached to this permit.
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City of Muskegon Permit No. 2021-04
E. No attempt shall be made by the permittee to forbid the full and free use by the public of
public waters at or adjacent to the structure or work approved.
F. It is made a requirement of this permit that the permittee give notice to public utilities in
accordance with Act 53 of the Public Act of 1974 and comply with each of the requirements of
that Act.
G. This permit does not convey property rights in either real estate or material, nor does it
authorize any injury to private property or invasion of public or private rights, nor does it waive
the necessity of seeking federal assent, all local permits, or complying with other state statutes.
H. This permit does not prejudice or limit the right of a riparian owner or other person to institute
proceedings in any circuit court of this state when necessary to protect his rights.
I. This permit shall not be assigned or transferred without the written approval of the City of
Muskegon.
J. Failure to comply with conditions of this permit may subject the permittee to revocation of
permit and criminal and/or civil action as cited by the specific state act, federal act, and/or rule
under which this permit is granted.
K. All dredged or excavated materials shall be disposed of in an upland site (outside of floodplains,
unless exempt under Part 31, and wetland).
L. In issuing this permit, the City of Muskegon has relied on the information and data that the
permittee has provided in connection with the submitted application for permit. If, subsequent
to the issuance of a permit, such information and data prove to be false, incomplete, or
inaccurate, the City of Muskegon may modify, revoke, or suspend the permit, in whole or in
part, in accordance with the new information.
M. The permittee shall indemnify and hold harmless the City of Muskegon and its departments,
agencies, officials, employees, agents, and representatives for any and all claims or causes of
action arising from acts or omissions of the permittee, or employees, agents, or representative
of the permittee, undertaken in connection with this permit. The permittee's obligation to
indemnify the City of Muskegon applies only if the City (1) provides the permittee or its
designated representative written notice of the claim or cause of action within 30 days after it
is received by the City and (2) consents to the permittee's participation in the proceeding on
the claim or cause of action. It does not apply to contested case proceedings under the
Administrative Procedures Act challenging the permit. This permit shall not be construed as an
indemnity by the City of Muskegon for the benefit of the permittee or any other person.
N. Noncompliance with these terms and conditions and/or the initiation of other regulated
activities not specifically authorized shall be cause for the modification, suspension, or
revocation of this permit, in whole or in part. Further, the City of Muskegon may initiate
criminal and/or civil proceedings as may be deemed necessary to correct project deficiencies,
protect natural resource values, and secure compliance with statutes.
O. If any change or deviation from the permitted activity becomes necessary, the permittee shall
request, in writing, a revision of the permitted activity from the City of Muskegon. Such revision
request shall include complete documentation supporting the modification and revised plans
detailing the proposed modification. Proposed modifications must be approved, in writing, by
the City of Muskegon prior to being implemented.
P. This permit may be transferred to another person upon written approval of the City of
Muskegon. The permittee must submit a written request to the City of Muskegon to transfer
the permit to the new owner. The new owner must also submit a written request to the City of
Muskegon to accept transfer. The new owner must agree, in writing, to accept all conditions of
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City of Muskegon Permit No. 2021-04
the permit. A single letter signed by both parties which includes all the above information may
be provided to the City of Muskegon. The City of Muskegon will review the request and if
approved, will provide written notification to the new owner.
Q. Prior to initiating permitted construction, the permittee is required to provide a copy of the
permit to the contractor(s) for review. The property owner, contractor(s), and any agent
involved in exercising the permit are held responsible to ensure that the project is constructed
in accordance with all drawings and specifications. The contractor is required to provide a copy
of the permit to all subcontractors doing work authorized by the permit.
R. Construction must be undertaken and completed during the dry period of the wetland. If the
area does not dry out, construction shall be done on equipment mats to prevent compaction of
the soil.
S. Authority granted by this permit does not waive permit requirements under Part 91, Soil
Erosion and Sedimentation Control, of the NREPA, or the need to acquire applicable permits
from the County Enforcing Agent.
T. Authority granted by this permit does not waive permit requirements under the authority of
Part 305, Natural Rivers, of the NREPA. A Natural Rivers Zoning Permit may be required for
construction, land alteration, streambank stabilization, or vegetation removal along or near a
natural river.
U. The permittee is cautioned that grade changes resulting in increased runoff onto adjacent
property is subject to civil damage litigation.
V. Unless specifically stated in this permit, construction pads, haul roads, temporary structures, or
other structural appurtenances to be placed in a wetland or on bottomland of the waterbody
are not authorized and shall not be constructed unless authorized by a separate permit or
permit revision granted in accordance with the applicable law.
W. For projects with potential impacts to fish spawning or migration, no work shall occur within
fish spawning or migration timelines (i.e., windows) unless otherwise approved in writing by the
Michigan Department of Natural Resources, Fisheries Division.
X. Work to be done under authority of this permit is further subject to the following special
instructions and specifications:
1. Notification shall be provided to the City of Muskegon by telephone 72 hours prior to
commencing construction, vegetation removal, or grading activity. Contact: Mike
Franzak, (231) 724-6982
2. Under Section 324.35311a, of Part 353, the driveway must not exceed 16 feet in width.
The landowner has authorized a change in the site plans to restrict the width of the
driveway to 16 feet.
3. All excess woody debris, concrete, building materials, or soils must be deposited off-site
outside of the critical dune area, and shall not be allowed to remain on site in excess of
33 percent.
4. Vegetation changes are not permitted more than 10 feet outside the proposed driveway
footprint. All disturbed areas shall be revegetated with native dune vegetation
immediately at project completion and stabilized with temporary measures during
commencement of the permitted activity as necessary. The removal and re-
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City of Muskegon Permit No. 2021-04
establishment of vegetation must be in accordance with the VA signed by the
landowner.
5. No work shall be performed outside of the proposed project limits.
6. Final permit issuance does not authorize or sanction work which has been performed in
violation of other applicable federal, state, or local statutes.
7. This permit is being issued under Part 353, Sand Dunes Protection and Management, of
the Natural Resources and Environmental Protection Act, PA 451 of 1994, as amended.
The permit, when signed by the City of Muskegon, will be for a one-year period
beginning at the date of issuance.
By: Mike Franzak
Mike Franzak
(231) 724-6982
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1116
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dotloop signature verification: dtlp.us/94X2-YZWM-ElYV
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dotloop signature verification: dtlp.us/94X2-YZWM-ElYV
Carlos E. Pava
dotloop verified
11/17/21 11:14 AM EST
TCV4-DSWK-SKVD-WVRI
11/17/2021
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Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: April 23, 2024 Title: Recreational Easement Agreement City of
Muskegon & Holy Trinity Church of God in Christ
(Joe Clifford Park)
Submitted by: Kyle Karczewski, Parks and Department: DPW- Parks
Recreation Director
Brief Summary:
Staff seeks authorization to enter into a recreational easement agreement with Holy Trinity Church of
God in Christ at 2140 Valley Street to continue offering and to improve Joe Clifford Park in the East
Muskegon Neighborhood.
Detailed Summary & Background:
This agreement is an extension and expansion of the current lease that is set to expire in 2026 at Holy
Trinity Church of God in Christ 2140 Valley St. This will grant the City of Muskegon an easement that
will include a higher level of maintenance within Joe Clifford Park. We also plan to invest in a new
playground structure and make splash pad improvements at this location through the newly
adopted parks capital improvement plan. This document provides a safety net for those investments
and improves the level of service at this location. It has been reviewed by the city's attorney.
Goal/Focus Area/Action Item Addressed:
Key Focus Areas:
Enhanced Parks and Recreation Department and Services
Goal/Action Item:
2027 Goal 1: Destination Community & Quality of Life
Amount Requested: Budgeted Item:
n/a Yes No N/A x
Fund(s) or Account(s): Budget Amendment Needed:
n/a Yes No N/A x
Recommended Motion:
Authorize staff to enter into the recreational easement agreement with Holy Trinity Church of God in
Christ at 2140 Valley Street.
Approvals: Guest(s) Invited / Presenting:
Immediate Division x
Head No
Information
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Technology
Other Division Heads
Communication
Legal Review x
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Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: April 23, 2024 Title: ARPA Allocation - Parks & Recreation
Capital Improvements
Submitted by: Jonathan Seyferth, City Manager Department: Manager's Office
Brief Summary:
Staff requests approval to allocate $4,500,000 from the city's remaining ARPA funds to be invested in
Parks and Recreation Capital Improvement projects.
Detailed Summary & Background:
The City of Muskegon's federal allocation of American Rescue Plan Act (ARPA) funds totaled
$22,881,894. These federal funds must be incurred (allocated) by December 31, 2024, and expended
by December 31, 2026.
At a work session held on January 6, 2023, the city commission committed $4.5M to develop a multi-
year Parks and Recreation Capital Improvement plan. Since then, a new Parks and Recreation
Director has been hired, a Parks and Recreation Advisory Committee has been created, a series of
public engagement events have been held throughout the city, and a community survey has been
conducted. These efforts were intended to develop a comprehensive plan based on community
feedback and input to improve the condition of our parks and recreation system assets.
Dedicating these resources reflects a substantial investment which helps fill the investment gap
experienced in this infrastructure for many years. Additional dedicated revenue from Pere Marquette
Park Beach Parking and Trinity Health Convention Center Naming Rights, along with other future
grant funding awards, will be used to make these improvements.
Background information on past investments made by the city used with ARPA funds can be
found here.
Background information on the city's current Parks & Recreation Master Planning process can be
found here.
Goal/Focus Area/Action Item Addressed:
Key Focus Areas:
Sustainable funding for Parks and Recreation
Goal/Action Item:
2027 GOAL 4: FINANCIAL INFRASTRUCTURE - Sustainable funding for Parks and Recreation
Amount Requested: Budgeted Item:
$4,500,000 Yes X No N/A
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Fund(s) or Account(s): Budget Amendment Needed:
101/404 Yes No X N/A
Recommended Motion:
Staff requests approval to formally allocate $4,500,000 from the city's remaining ARPA funds to be
invested in Parks and Recreation Capital Improvement projects.
Approvals: Guest(s) Invited / Presenting:
Immediate Division
Head No
Information
Technology
Other Division Heads X
Communication X
Legal Review
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City – Commitment of ARP Funds
4/10/2024
ITEM COMMISSION APPROVAL PROJECT COMMITTED
Infill Housing
West Urban Properties 8/10/21 Work with local contractors and deploy solutions to housing shortage. $4,275,000
LRS Enterprises 2/22/22 Work with local contractors and deploy solutions to housing shortage. $750,000
Infill Subtotal $5,025,000
Community enCompass 2/22/22 Work with local contractors and deploy solutions to housing shortage. $250,000
General Fund FY22 budget Enhancing the delivery of cost-effective, impactful public services $900,000
which support the needs of residents and businesses.
General Fund FY23 budget Enhancing the delivery of cost-effective, impactful public services $650,000
which support the needs of residents and businesses.
Water/Sewer FY23 budget Investing Houston Ave infrastructure project $800,000
Trinity Health 1/8/22 CC Construct ADA egress, public restrooms, storage and alley $546,760.64
Arena/Thayer Ave improvements at the Mercy Health Arena.
Trinity Health Arena FY22 Budget Enhancing the delivery of cost-effective, impactful public services $675,000
which support the needs of residents and businesses.
Convention Center 1/25/22 Support outstanding expenses incurred from the construction of the $2,500,000
new Convention Center.
CSXT Rail Line 12/14/21 ARPA funds for the purchase and removal of the CSXT railroad line $2,000,000
from the Jaycees Launch Ramp to the Boys and Girls Clubhouse.
BGC 11/23/21 ARPA funds to Boys and Girls Club for their building renovation $1,000,000
project.
MMA 11/23/21 ARPA funds to relocate utility lines as part of the Muskegon Museum $1,000,000
of Art capital campaign project.
Frauenthal Center 11/23/21 ARPA funds to support the Frauenthal Center’s capital campaign $1,000,000
renovation project.
Parks & Rec Capital Plan 1/09/23 work session soft-commitment ARPA funds to invest in improving existing city parks and recreation- $4,500,000
4/23/24 expected formal commitment related assets.
ARPA Comm Grant 2/14/23 created program; 8/7/23 ARPA funds to create a City ARPA Community Grant Program $1,600,000
approved grantees; 10/10/23 denied
Pioneer Resources app ($150K); 2/13/24
CC redirect $150K to 4 grantees
Fire Truck 2/13/24 CC Fire Truck ($972,276) $435,133.40
Total Award 22,881,894
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City – Commitment of ARP Funds
4/10/2024
ARP Standard Allowance – revenue loss of up to $10,000,000
• Infill Housing $5,275,000
• Convention Center $2,500,000
• General Fund FY22 $900,000
• General Fund FY23 $650,000
• Trinity Health Arena FY22 Budget # $675,000 ($679,203)
Std Allowance Balance ($0)
• 22% - funding committed to infill housing initiative
• 20% - funding committed to local non-profits, small business, neighborhood associations
• 20% - funding committed to parks & recreation improvements
Restrictions on use of Coronavirus State and Local Fiscal Recovery Funds (SLFRF)
• Cannot deposit SLFRF funds into a pension fund
• Cannot use SLFRF funds directly to service debt
• Cannot satisfy a judgment or settlement
• Cannot contribute to a “rainy day” fund
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Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: April 23, 2024 Title: Intent to establish PACE district and utilize
Lean & Green Michigan as administrator
Submitted by: Mike Franzak, Planning Director Department: Planning
Brief Summary:
Request to set a public hearing to establish a property assessed clean energy (PACE) program and
to select Lean & Mean Michigan as administrator.
Detailed Summary & Background:
The property assessed clean energy (PACE) model is a mechanism for financing energy efficiency
and renewable energy improvements on private property. PACE programs allow a property owner to
finance the up-front cost of energy or other eligible improvements on a property and then pay the
costs back over time through a voluntary assessment. PACE assessments are attached to the
property rather than an individual and are available for residential and commercial developments. In
order to participate in PACE funding, the City must create a PACE district and select an administrator
to facilitate projects. This resolution is to set the public hearing to adopt a PACE program as May 14
and to release the draft PACE Program Report to the public. Staff is recommending to work with Lean
& Mean Michigan as the program administrator. Very minimal staff involvement is necessary once
the PACE program is established by the Commission and there is no cost to the City to participate.
Goal/Focus Area/Action Item Addressed:
Key Focus Areas:
Goal/Action Item:
2027 Goal 2: Economic Development Housing and Business - Progress toward new and ongoing
economic development projects
Amount Requested: Budgeted Item:
N/A Yes No N/A X
Fund(s) or Account(s): Budget Amendment Needed:
N/A Yes No N/A X
Recommended Motion:
To approve the resolution of intent and release the draft PACE Program Report to the public.
Approvals: Guest(s) Invited / Presenting:
Immediate Division X
Head Yes
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Information
Technology
Other Division Heads X
Communication
Legal Review
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CITY OF MUSKEGON, MICHIGAN
RESOLUTION OF INTENT TO ESTABLISH A PROPERTY ASSESSED
CLEAN ENERGY PROGRAM AND CALLING PUBLIC HEARING
Minutes of a regular meeting of the City of Muskegon Commission, held at Muskegon City
Hall, 933 Terrace Street, Muskegon, MI 49440-1397 on April 23, 2024 at 5:30 p.m.
PRESENT: __________________________________________________________________
ABSENT: ____________________________________
The following resolution was offered by Member ___________________ and supported
by Member __________________:
WHEREAS, the City of Muskegon Commission intends to authorize the establishment of
a property assessed clean energy program (“PACE Program”) and create a PACE district pursuant
to Act No. 270, Public Acts of Michigan, 2010, as amended (“PACE Statute”), for the purpose of
promoting the use of renewable energy systems, energy efficiency improvements, water efficiency
improvements and environmental hazard projects by owners of certain real property; and
WHEREAS, the City of Muskegon Commission intends to find that financing PACE
projects is a valid public purpose because it reduces energy costs, reduces greenhouse gas
emissions, stimulates economic development, remediates or protects against environmental
hazards, improves property values and increases employment in the City of Muskegon; and
WHEREAS, the types of projects, either energy efficiency improvements, water efficiency
improvements, renewable energy systems, or environmental hazard projects that may be financed
under the PACE Program include, but are not limited to: insulation in walls, roofs, floors,
foundations, or heating and cooling distribution systems; storm windows and doors; multi-glazed
windows and doors; heat-absorbing or heat-reflective glazed and coated window and door systems;
and additional glazing, reductions in glass area, and other window and door system modifications
that reduce energy consumption; automated energy control systems; heating, ventilating, or air-
conditioning and distribution system modifications or replacements; caulking, weather-stripping,
and air sealing; replacement or modification of lighting fixtures to reduce the energy use of the
lighting system; energy recovery systems; day lighting systems; installation or upgrade of
electrical wiring or outlets to charge a motor vehicle that is fully or partially powered by electricity;
measures to reduce the usage of water or increase the efficiency of water usage; any other
installation or modification of equipment, devices, or materials approved as a utility cost-savings
measure by the Commission; a fixture, product, device, or interacting group of fixtures, products,
or devices on the customer's side of the meter that use one or more renewable energy resources to
generate electricity. Renewable energy resources include, but are not limited to: biomass (includes
a biomass stove but does not include an incinerator or digester); solar and solar thermal energy;
wind energy; geothermal energy and methane gas captured from a landfill; environmental hazard
projects including mitigation of lead, heavy metal, or PFAS contamination in potable water
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systems, mitigation of lead paint contamination; mitigation of the effects of floods or drought; and
increase the resistance of property against severe weather, and
WHEREAS, the City of Muskegon Commission intends to join Lean & Green Michigan™,
and intends to utilize Lean & Green Michigan, LLC as PACE administrator (the “PACE
Administrator”) to administer its PACE Program; and
WHEREAS, the report referenced in Section 9(1) of the PACE Statute (the “PACE
Report”) shall be available on the City of Muskegon’s website at www.muskegon-mi.gov, and
shall be available for viewing at the office of the City of Muskegon Clerk located at: Muskegon
City Hall, 933 Terrace Street, Muskegon, MI 49440-1397.
NOW, THEREFORE, BE IT RESOLVED THAT:
1. The City of Muskegon Commission, being fully apprised of the PACE Program, finds that
financing PACE projects is a valid public purpose because it reduces energy costs, reduces
greenhouse gas emissions, stimulates economic development, remediates or protects
against environmental hazards, improves property values and increases employment in the
City.
2. The City of Muskegon Commission, by adoption of this Resolution, formally states its
intention to establish a PACE district, whose boundaries will be coterminous with the City
of Muskegon’s jurisdictional boundaries, and a PACE Program as described in and for the
reasons set forth in this Resolution.
3. The City of Muskegon Commission formally states its intention to provide a property
owner based method of financing and funds for projects from owner-arranged financing
from a commercial lender, which funds and financing shall be secured and repaid by
assessments on the property benefited, with the agreement of the record owners, such that
no City moneys, general City taxes or City credit of any kind whatsoever shall be pledged,
committed, or used in connection with any project as required by and subject to the PACE
Statute.
4. The City of Muskegon Commission, by adoption of this Resolution, formally states its
intention to join Lean & Green Michigan™, and to utilize Lean & Green Michigan, LLC
as PACE Administrator.
5. The City of Muskegon Commission hereby sets a public hearing for May 14, 2024 at 5:30,
at Muskegon City Hall, 933 Terrace Street, Muskegon, MI 49440-1397 to receive
comments on the proposed PACE Program, including the PACE Report.
6. The City Clerk is authorized and directed to publish a notice of intent to establish a PACE
district and a PACE Program, and a notice of the public hearing set by this Resolution in a
newspaper of general circulation in the City of Muskegon as a display advertisement
prominent in size or follow the local method of announcing public hearings. The City Clerk
shall maintain on file for public review a copy of the PACE Report and shall cause the
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PACE Report to be available on the City of Muskegon’s website in accordance with the
requirements of the PACE Statute.
7. All resolutions and parts of resolutions inconsistent with this Resolution are repealed to the
extent of such inconsistency.
YEAS: Members
NAYS: Members
ABSENT: Members
RESOLUTION DECLARED ADOPTED.
Ann Meisch, Clerk
City of Muskegon_____________
The foregoing is a true and complete copy of a resolution adopted by the City of Muskegon
Commissioners at a regular meeting held on April 23, 2024, notice of which was given pursuant
to the Michigan Open Meetings Act, Public Act 267 of 1976.
Ann Meisch, Clerk
City of Muskegon
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CITY OF MUSKEGON,
MICHIGAN
PACE PROGRAM REPORT
This Lean & Green Michigan™ PACE Program Report contains the information required by
Section 9 of Michigan Public Act No. 270 of 2010, as amended (“PACE Statute”). Additional
information is available from City of Muskegon. The PACE Program and PACE Program
Report were approved by the City Commission on April 23, 2024, subsequent to a public hearing
held on May 14, 2024.
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TABLE OF CONTENTS
Page
Introduction..................................................................................................................................1
Lean & Green Michigan™ PACE Program Report .....................................................................2
APPENDIX A – PACE Special Assessment Agreement.............................................................9
SAA Appendix A – Program Eligibility Checklist ..............................................................29
SAA Appendix B – Special Assessment Parcel Description ...............................................30
SAA Appendix C – Special Assessment Roll ......................................................................31
SAA Appendix D – Payment Schedule................................................................................32
SAA Appendix E – Description of Improvements...............................................................33
SAA Appendix F – PACE Program Application .................................................................34
SAA Appendix G –Form of Certificate of Assignment .......................................................38
SAA Appendix H –Form of Lender Consent .......................................................................40
SAA Appendix I - Form of Waiver of SIR and Savings Guarantee .....................................42
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INTRODUCTION
Michigan Public Act No. 270 of 2010, as amended (the “PACE Statute”) authorizes
local units of government to adopt Property Assessed Clean Energy (“PACE”) programs to
promote the installation of renewable energy systems, energy efficiency improvements, water
usage improvements, and environmental hazard projects by owners of commercial or industrial
property within a district designated by the local unit of government.
In order to encourage economic development, improve property valuation, increase
employment, reduce energy costs, reduce greenhouse gas emissions and contribute to the public
health and welfare in City of Muskegon (“the ”), the City of Muskegon Commission established
the City of Muskegon Property Assessed Clean Energy Program and PACE district pursuant to
the PACE Statute by joining Lean & Green Michigan™ (the “PACE Program” or “Program”).
The PACE Program has identified specific sources of commercial funding to finance PACE
Projects within the Muskegon PACE district, which is coterminous with the City of Muskegon’s
jurisdictional boundaries.
The purpose of this PACE Program Report is to fulfill the requirements of the PACE
Statute. Section 9 of the PACE Statute requires a report that includes: a form of contract
between Muskegon and the record owner; identification of an official authorized to enter into
program contracts on behalf of Muskegon; a maximum aggregate amount for financing provided
by Muskegon under the program; an application process and eligibility requirements; methods
for determining repayment periods, the maximum amount of assessment, and interest rates on
assessment installments; an explanation of how assessments will be made and collected; a plan
for raising capital; procedures to determine information regarding reserve funds and fees of the
program; a requirement that the term of the assessment not exceed the useful life of the project; a
requirement of an appropriate ratio of the amount All assessment to the assessed value of the
property; requirement of consent from the mortgage holder; provisions for marketing and
participant education; provisions for adequate debt service reserve fund; quality assurance and
antifraud measures; and a requirement for baseline energy audit or energy modeling, ongoing
savings measurements and performance guarantees for retrofit projects over $250,000 in
assessments unless waived by the property owner; for new construction energy projects, a
requirement that the building or other structure exceed applicable requirements of the Michigan
uniform energy code.
As many of the details of a PACE transaction are determined on a project-specific
basis, adjustments to the model contract may be required to fit a particular transaction.
Additionally, there are several blanks left in the model contract that should be filled in when
the corresponding information is known.
Lean & Green Michigan, LLC (“LAGM”) developed a collaborative approach to
PACE programs for local units of government by standardizing the administrative and legal
process under which PACE programs are created and managed. Many local units of
government throughout the state have joined or are in the process of joining the Lean &
Green MichiganTM PACE program. This approach creates one efficient statewide market,
allowing property owners, lenders and contractors to utilize a standardized process as they
employ PACE financing in multiple jurisdictions throughout the state.
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CITY OF MUSKEGON PROGRAM REPORT
1. Form of PACE Contract
A form of model PACE Special Assessment Agreement is attached as Appendix A.
Individual property owners may negotiate project-specific terms to be included in an actual
agreement based upon the specific renewable energy systems, energy efficiency improvements,
water usage improvement, and environmental hazard projects to be financed through the
individual agreement, subject to the limitations set forth herein.
2. Authorized Official/PACE Administrator
The [authorized official title] or his/her designee, (the “Authorized Official”) is
authorized to enter into PACE Contracts or PACE Special Assessment Agreements on behalf of
Muskegon in consultation with LAGM. The Authorized Official is further authorized to sign
any agreement, documents or certificates necessary to facilitate the participation of property
owners and to facilitate the purposes hereunder.
In joining Lean & Green MichiganTM, Muskegon agrees to have LAGM act as PACE
administrator and manage Muskegon’s PACE Program. LAGM is authorized to negotiate with
credit providers and PACE project participants to facilitate the use of the PACE Program and to
assist PACE project applicants in obtaining financing.
3. Financing Parameters
In establishing its PACE district, Muskegon intends for Projects to be funded through
owner-arranged private financing. The maximum aggregate annual amount of financing
provided by Muskegon shall be zero dollars. The maximum aggregate dollar amount for
financing provided by Muskegon may be adjusted and/or amended on an annual basis or more
frequently by the City of Muskegon Commission and will remain at zero dollars unless and until
it is changed.
Muskegon shall not provide any financing for Projects under Muskegon's PACE
Program. Muskegon's PACE Program shall be solely funded through owner-arranged financing
from commercial lenders, as allowed under Act 270, Section 9(1)(g)(iii). Owner-arranged
financing from commercial lenders is not included under the maximum aggregate annual dollar
amount for financing provided by Muskegon under the Program. There is no limit on the
maximum aggregate annual amount of financing provided by private commercial lenders under
the program. The dollar amount for financing of a particular Project will be established by the
property owner seeking to implement and the commercial lender seeking to finance the
implementation of renewable energy systems, energy efficiency improvements, water usage
improvements, and environmental hazard projects; as approved by LAGM and the Authorized
Official.
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4. Application Process/Eligibility Requirements
Application Process:
The application process for financing projects under the Program shall be that of LAGM.
The current application form is attached as SAA Appendix F. This form may be changed or
amended as necessary by LAGM.
Eligibility Requirements:
The eligibility requirements for financing projects under the Program shall be those of
LAGM. Eligibility requirements may be changed or amended as necessary by LAGM. The
current list of eligibility requirements is attached as SAA Appendix A.
5. Financing Terms of Assessments
The interest rate for PACE special assessment installments supplied by commercial
lenders shall be negotiated by the parties based on current market conditions.
The maximum allowable repayment period of a PACE special assessment must be
included in the PACE Special Assessment Agreement and will be determined on a project-
specific basis and shall not exceed the lesser of the useful life of the Project financed by the
assessment or 25 years.
The maximum dollar amount of a PACE special assessment shall be negotiated on a
project-specific basis between the property owner and the entity providing the financing based
upon the specific renewable energy systems, energy efficiency improvements, and environmental
hazard projects included in the individual PACE Special Assessment Agreement.
6. Assessment Collection Process
Within the parameters set forth herein, the Authorized Official will authorize one or more
commercial lenders to provide financing to defray all or part of the cost of the Project, by special
assessment upon the Special Assessment Parcel, which the Authorized Official will find is
especially benefited in proportion to the costs of the renewable energy systems, energy efficiency
improvements, water usage improvement, or environmental hazard projects.
The Special Assessment Roll, attached as SAA Appendix C, will be spread by the
Authorized Official, or appropriate official, on behalf of Muskegon and without objection by the
property owner to allocate one hundred percent (100%) of the PACE special assessment levy
created hereby to the Special Assessment Parcel.
The PACE special assessment, as allocated by the Authorized Official, or appropriate
official, on behalf of Muskegon without objection by the property owner, will be finally
established against the property and the Project to be constructed on the Special Assessment
Parcel. The PACE special assessment will be effective immediately upon the execution and
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delivery of the PACE Special Assessment Agreement by the property owner. The PACE special
assessment may be paid in annual or semi-annual installments pursuant to Section 13(2) of the
PACE Statute. The Authorized Official, on behalf of Muskegon, will confirm the Special
Assessment Roll.
The Muskegon County Delinquent Tax Revolving Fund (“DTRF”) shall not be used to
advance, satisfy, or pay any delinquent installment of the PACE special assessment, and no City
or County funds will be used to repay any PACE special assessment placed under this program.
The commercial lender will waive any claim to be able to seek payment from City of Muskegon
or Muskegon County through the DTRF in the PACE Special Assessment Agreement.
7. Financing Program
LAGM has developed and will continue to develop an active roster of financial
institutions, institutional investors and other sources of private capital available to finance PACE
projects in Michigan. By participating in LAGM, Muskegon helps its constituent property
owners gain access to private capital made available through the statewide program. Muskegon
authorizes the use of owner-arranged financing from commercial lenders to finance qualified
Projects under the Program.
8. Reserve Fund
By participating in the Lean & Green MichiganTM program, Muskegon assists its
constituent property owners in taking advantage of any and all appropriate loan loss reserve and
gap financing programs of the Michigan Economic Development Corporation (“MEDC”) and
other federal and state entities. Such financing mechanisms can be used to finance a reserve
fund if deemed necessary and appropriate by Muskegon.
9. Fee Schedule
Application, administration and program fees for record owners shall be those of LAGM.
Administration and program fees will be determined on a project-specific basis and will depend
on the size, nature and complexity of the project(s) and financing mechanism(s) involved. A
copy of the current LAGM administration and program fees is published by LAGM in its PACE
Program Manual available upon request and at LAGM’s website, www.leanandgreenmi.com.
10. Useful Life
The maximum length of time allowable for repayment of a PACE assessment shall not
exceed the lesser of the useful life of the Project paid for by the assessment or 25 years and will
be determined on a project-specific basis by LAGM. Projects involving multiple energy
efficiency improvements, renewable energy systems, or environmental hazard improvements
may aggregate the useful life of each improvement to determine an overall useful life figure for
financing purposes. In aggregating the improvements, the property owner must appropriately
weigh each improvement’s dollar cost.
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11. Property Eligibility Parameters
The ratio of the amount of the assessment to the market value of the property must be
appropriate and shall be set forth in the PACE Special Assessment Agreement for each project.
Additionally, the overall indebtedness on the property must be appropriate. In calculating the
appropriate ratios, the property owner and the lender providing the financing may determine the
market value of the property using either: 1) the market value of the property before the Project
as agreed to by the property owner and the lender providing the financing using a proper measure
such as a recent appraisal or two times the State Equalized Value; or 2) the market value of the
property upon completion of the Project as agreed to by the property owner and the lender
providing the financing using a proper measure such as an appraisal of the “as completed” value
of the property.
In calculating the appropriate ratio of the amount of the assessment to the market value of
the property, the cost of the Project (excluding closing costs and interest) shall generally not
exceed 25% of the market value of the property.
In calculating the appropriate ratio of total indebtedness on the property to the market
value of the property, prior debt secured by the property plus the PACE loan shall generally not
exceed 90% of the market value of the property.
LAGM and the Authorized Official may permit projects that exceed these values for
reasonable cause on a case-by-case basis, and in such cases must include a letter of explanation
as an addendum to the Special Assessment Agreement.
12. Mortgage Consent Requirement
If a property is subject to a mortgage the record owner must obtain written consent from
the mortgagee to participate in the Program. Proof of lender consent must be submitted before a
Special Assessment Agreement may be executed. A form of lender consent to participate in a
PACE Program is attached as SAA Appendix H.
13. Marketing Program
LAGM has developed an ongoing marketing and participant education program. By
joining Lean & Green MichiganTM, Muskegon gains access to this program and agrees to partner
with LAGM in educating property owners in Muskegon about opportunities to save energy, save
money and improve their property value. Muskegon authorizes the use of the City of
Muskegon’s logo by LAGM to be incorporated into the LAGM website and other
communication vehicles. More information regarding the Program can be obtained at LAGM’s
website: www.leanandgreenmi.com; or at Muskegon’s website at www.muskegon-mi.gov..
14. Quality Assurance and Antifraud Measures
LAGM includes the following quality assurance and antifraud measures:
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• Business integrity review on clean energy contractors conducted by Michigan Saves;
• Background check process on clean energy contractors conducted by Michigan
Saves; and
• Other general due diligence as may be necessary or required.
15. Energy Audit or Energy Modeling Requirement
As set forth in the PACE Program Application, a baseline energy audit or energy
modeling must be completed before a Project is approved. Each contract should provide
adequate funding for monitoring and verification of energy savings throughout the life of the
special assessment.
16. Savings-to-Investment Ratio and Savings Guarantee Requirements
Unless waived by the record owner, Projects financed with more than $250,000 require
ongoing measurements to establish energy savings and a guarantee from the contractor that the
energy project will achieve a savings to investment ratio greater than one.
This requirement may be waived by the record owner, and is not applicable to a new
construction energy project.
17. Amendments to the Program
A public hearing shall not be required to amend this Program. LAGM may amend the
City of Muskegon PACE program as necessary from time to time, in consultation with the City
and upon approval of the City of Muskegon Commission of any such amendment.
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APPENDIX A
SPECIAL ASSESSMENT AGREEMENT
________________________________________SPACE ABOVE FOR RECORDING PURPOSES____________________________________
PACE SPECIAL ASSESSMENT AGREEMENT
(OWNER-ARRANGED FINANCING)
by and among
CITY OF MUSKEGON, MICHIGAN
and
PROPERTY OWNER
and
PACE LENDER
Dated: _____________________
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City of Muskegon PACE Special Assessment Agreement
TABLE OF CONTENTS
Page
ARTICLE I DEFINITIONS ....................................................................................................12
ARTICLE II DESCRIPTION OF IMPROVEMENTS ...........................................................14
ARTICLE III COVENANTS OF THE PROPERTY OWNER ..............................................14
ARTICLE IV PACE SPECIAL ASSESSMENT ....................................................................15
ARTICLE V CONDITIONS PRECEDENT ...........................................................................20
ARTICLE VI REPRESENTATIONS AND WARRANTIES ................................................21
ARTICLE VII DEFAULT.......................................................................................................23
ARTICLE VIII MISCELLANEOUS ......................................................................................24
APPENDIX:
APPENDIX A: PROGRAM ELIGIBILITY REQUIREMENTS
APPENDIX B: SPECIAL ASSESSMENT PARCEL DESCRIPTION
APPENDIX C: SPECIAL ASSESSMENT ROLL
APPENDIX D: PAYMENT SCHEDULE
APPENDIX E: DESCRIPTION OF IMPROVEMENTS
APPENDIX F: LEAN & GREEN MICHIGAN PACE PROGRAM APPLICATION
APPENDIX G: FORM OF CERTIFICATE OF ASSIGNMENT
APPENDIX H: FORM OF LENDER CONSENT
APPENDIX I: FORM OF WAIVER OF SIR AND SAVINGS GUARANTEE
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City of Muskegon PACE Special Assessment Agreement
PACE SPECIAL ASSESSMENT AGREEMENT
(OWNER-ARRANGED FINANCING)
THIS PACE SPECIAL ASSESSMENT AGREEMENT (this “Agreement”) is made
this [DATE] among City of Muskegon, a Michigan municipal corporation (the “City”), whose
address is [ADDRESS], [PROPERTY OWNER], a Michigan limited liability company (the
“Property Owner”), whose address is [ADDRESS], and [PACE LENDER], a Michigan limited
liability company (the “Lender”), whose address is [ADDRESS].
RECITALS:
A. Pursuant to the PACE Statute and a resolution adopted by the City of Muskegon
Commission on [DATE], the City has established the PACE Program as described in the PACE
Program Report and has created the Special Assessment District under the PACE Program for
the purpose, inter alia, of assisting a record owner of property within the Special Assessment
District in obtaining Owner-Arranged Financing from a commercial lender to defray the costs of
one or more Project on the property.
B. Under the PACE Statute, the City is authorized, pursuant to an agreement with the
record owner of property within the Special Assessment District, to impose a special assessment
on the property to be benefitted by the Project in order to secure and provide for the repayment
of the Owner-Arranged Financing.
C. The Property Owner desires to undertake a certain Project on commercial,
industrial, or agricultural property of the Property Owner located within the Special Assessment
District, as described herein, and has obtained a commitment from the Lender to make the Loan
to the Property Owner to defray its cost.
D. In order to induce the Lender to make the Loan to the Property Owner, the
Property Owner has requested that the City enter into this Agreement to impose a special
assessment on the property to be benefitted by the Projects, in accordance with the PACE
Statute, which special assessment will secure and provide for repayment of the Loan from the
Lender.
E. Pursuant to the PACE Statute and the PACE Program, the City is authorized to
enter into this Agreement.
In consideration of the foregoing and the mutual covenants contained in this Agreement,
the City, the Property Owner and the Lender agree that:
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ARTICLE I
DEFINITIONS
Section 1.01 Definitions. Capitalized terms used in this Agreement and Recitals shall
have the meanings stated in the PACE Statute and as stated immediately below, except to the
extent the context in which they are used requires otherwise:
(a) “Agreement” means this PACE Special Assessment Agreement as same may be
amended and/or restated.
(b) “Applicable Interest Rate” means the per annum rate of interest specified in the
Loan Documents at which the Special Assessment Roll bears interest as calculated by the Lender
in accordance with the provisions of Section 4.01 of this Agreement.
(c) “Authorized Official” means the [Authorized Official Title], or his/her designee,
who is authorized to exercise the authority of an Authorized Official under the terms of the
PACE Program Report.
(d) “Default Rate” means the rates dictated for cities by the Michigan General
Property Tax Act of 1893 as amended (MCL 211.78a and 211.78g).
(e) “Energy Efficiency Improvement” means the acquisition, installation,
replacement, or modification of equipment, devices, or materials intended to decrease energy
consumption, including, but not limited to, all of the following: insulation in walls, roofs, floors,
foundations, or heating and cooling distribution systems; storm windows and doors; multi-glazed
windows and doors; heat-absorbing or heat-reflective glazed and coated window and door
systems; and additional glazing, reductions in glass area, and other window and door system
modifications that reduce energy consumption; automated energy control systems; heating,
ventilating, or air-conditioning and distribution system modifications or replacements; caulking,
weather-stripping, and air sealing; replacement or modification of lighting fixtures to reduce the
energy use of the lighting system; energy recovery systems; day lighting systems; installation or
upgrade of electrical wiring or outlets to charge a motor vehicle that is fully or partially powered
by electricity; measures to reduce the usage of water or increase the efficiency of water usage;
and any other installation or modification of equipment, devices, or materials approved as a
utility cost-savings measure by the City of Muskegon Commission.
(f) “Energy Project” means any of the following: an Energy Efficiency
Improvement; or the acquisition, installation, replacement or modification of a Renewable
Energy System or anaerobic digester.
(g) “Event of Default” has the meaning set forth in Section 7.01 hereof.
(h) “Environmental Hazard Project” means the acquisition, installation,
replacement, or modification of equipment, devices, or materials intended to address
environmental hazards, including, but not limited to, measures to do any of the following:
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City of Muskegon PACE Special Assessment Agreement
mitigate lead, heavy metal, or PFAS contamination in potable water systems; mitigate the effects
of floods or drought; increase the resistance of property against severe weather; mitigate lead
paint contamination.
(i) “Force Majeure” means unforeseeable events beyond a party’s reasonable
control and without such party’s failure or negligence including, but not limited to, acts of God,
acts of public or national enemy, acts of the federal government, fire, flood, epidemic, quarantine
restrictions, strikes and embargoes, labor disturbances, the unavailability of raw materials, and
delays of contractors due to such causes, but only if the party seeking to claim Force Majeure
takes reasonable actions necessary to avoid delays caused thereby.
(j) “General Property Tax Act” means the General Property Tax Act, Act 206,
Public Acts of Michigan, 1893, as amended.
(k) “Improvements” means the renewable energy systems, energy efficiency
improvements, water usage improvements, and environmental hazard projects being undertaken
by the Property Owner on the Special Assessment Parcel as described in Appendix E attached
hereto.
(l) “LAGM” shall mean Lean & Green Michigan, LLC, a Michigan limited liability
company.
(m) “Lean & Green Michigan™” means a statewide property assessed clean energy
program open to all local units of government operated as a public-private partnership by LAGM
in order to facilitate property assessed clean energy program-financed transactions.
(n) “Lender” has the meaning set forth in the preamble.
(o) “Loan” means the loan obtained by the Property Owner from the Lender pursuant
to Owner-Arranged Financing to defray a portion of the cost of the Improvements under the
terms of the Loan Documents.
(p) “Loan Documents” means the Loan Agreement, dated as of [DATE], between
the Property Owner and the Lender and any and all exhibits or attachments thereto, including any
documents amending, restating, replacing, extending or otherwise modifying the Loan
Agreement and all documents provided to the Lender from time to time by the Property Owner
to evidence or secure the Loan as required pursuant to the terms of the Loan Agreement.
(q) “Owner-Arranged Financing” means the process by which a property owner
secures financing for improvements to its property that does not involve bonds or any other form
of funding provided by the City.
(r) “PACE Program” shall mean the property assessed clean energy program
implemented by the City pursuant to the PACE Statute and the PACE Program Report to
stimulate renewable energy systems, energy efficiency improvements, water usage improvement,
and environmental hazard projects in conformity with the PACE Statute.
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City of Muskegon PACE Special Assessment Agreement
(s) “PACE Program Report” means the Lean & Green Michigan™ PACE Program
Report approved by the City of Muskegon Commission on [DATE], including any amendments
or changes thereto made before the date of this Agreement.
(t) “PACE Statute” means Act 270 of the Michigan Public Acts of 2010, as
amended, commonly referred to as the Property Assessed Clean Energy Act, MCL 460.931 et
seq.
(u) “Payment Schedule” has the meaning set forth in Section 4.01 hereof.
(v) “Project” means an Environmental Hazard Project or Energy Project.
(w) “Property Owner” has the meaning set forth in the preamble.
(x) “Renewable Energy System” means a fixture, product, device, or interacting
group of fixtures, products, or devices on the customer’s side of the meter that use one (1) or more
renewable energy resources to generate electricity, gas, or other power. Renewable Energy
System includes a biomass stove but does not include an incinerator or digester.
(y) “Special Assessment” means the money obligation created pursuant to this
Agreement with respect to the Special Assessment Parcel used to defray the cost of the
Improvements and which shall, together with all interest, charges and penalties which may accrue
thereon, be a lien upon the Special Assessment Parcel of the same priority and status as other
property tax liens and other assessment liens as provided in the PACE Statute until such amounts
have been paid in full.
(z) “Special Assessment District” means the Special Assessment District established
as part of the PACE Program pursuant to the PACE Statute.
(aa) “Special Assessment Parcel” means the property located in the Special
Assessment District to which one hundred percent (100%) of the Special Assessment has been
spread by the City and which is more particularly described on the attached Appendix B.
(bb) “Special Assessment Roll” has the meaning set forth in Section 4.01 hereof.
ARTICLE II
DESCRIPTION OF IMPROVEMENTS
Section 2.01 Description of Improvements. The Improvements to be acquired,
constructed, installed and financed by the Property Owner under the PACE Program are
described in Appendix E attached hereto. If after project approval, the Property Owner seeks to
undertake additional Improvements, Appendix E may be amended or supplemented from time to
time. Such additional Improvements must meet all the eligibility criteria of the PACE Program
and the PACE Program Report and may be added to the original application as a modification, or
submitted as a new project, at the discretion of LAGM and the Authorized Official.
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ARTICLE III
COVENANTS OF THE PROPERTY OWNER
Section 3.01 Acquisition, Construction and Installation of Improvements.
(a) The Property Owner covenants and agrees to acquire, construct and install the
Improvements as described in Appendix E on the Special Assessment Parcel described on
Appendix B in full conformity with all applicable laws and regulations and in compliance with
the PACE Program eligibility requirements set forth in Appendix A. If the proceeds of the Loan
are not sufficient to pay the costs of the Improvements as aforesaid, the Property Owner agrees
to complete the Improvements and to pay that portion of the costs of the Improvements in excess
of the amount of the Loan. The Property Owner acknowledges and agrees that the City makes
no representation, either express or implied, that the proceeds of the Loan will be sufficient to
pay the total costs of the Improvements, and the Property Owner agrees that if, after exhaustion
of the proceeds of the Loan, the Property Owner shall be required to pay any portion of the costs
of the Improvements from its own funds, the Property Owner shall not be entitled to any
reimbursement therefore from the City or from the Lender, nor shall the Property Owner be
entitled to any abatement or diminution of the amount of the Special Assessment created by this
Agreement or of any interest, charges or penalties which may accrue thereon.
(b) To provide for monitoring and verification of the Project, the Property Owner has
created an Energy Star Portfolio Manager account and has linked this account to the LAGM
Energy Star Portfolio Manager account. The Property Owner has entered all electricity bills for
the Special Assessment Parcel for the year (12 consecutive months) immediately preceding the
installation of the Project. The Property Owner further agrees to enter its electricity bills for the
duration of the Agreement on an annual basis. Annual electricity bills for the Special Assessment
Parcel will be entered into the Property Owner’s Energy Star Portfolio Manager account
by January 31 of each year after the year for which the electricity bills are to be entered.
ARTICLE IV
PACE SPECIAL ASSESSMENT
Section 4.01 PACE Special Assessment Created.
(a) At the request of the Property Owner, the City hereby determines to assist the
Property Owner in obtaining the Loan to defray a portion of the cost of the Improvements on the
Special Assessment Parcel by the levy of the Special Assessment upon the Special Assessment
Parcel, which the Authorized Official on behalf of the City finds is especially benefited in
proportion to the cost of the Improvements. The Special Assessment created hereby has been
spread by the Authorized Official on behalf of the City on the Special Assessment Roll attached
hereto as Appendix C (the “Special Assessment Roll”), with the consent of the Property Owner,
to allocate one hundred percent (100%) of the Special Assessment to the Special Assessment
Parcel.
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(b) The Special Assessment, as allocated by the Authorized Official with the consent
of the Property Owner, is hereby finally established and levied against the Special Assessment
Parcel as described on the attached Appendix B in the principal amount of [LOAN AMOUNT]
as stated on the Special Assessment Roll. The Special Assessment is effective immediately upon
the execution and delivery of this Agreement by the Property Owner. The Special Assessment
shall be paid by the Property Owner in [NUMBER] semi-annual installments on the dates and in
the amounts set forth in the payment schedule attached hereto as Appendix D (the “Payment
Schedule”). The Special Assessment Roll and the Payment Schedule are hereby confirmed by
the Authorized Official on behalf of the City. The unpaid amount of the Special Assessment
Roll shall bear interest from the date of execution and delivery of this Agreement at the
Applicable Interest Rate, as calculated by the Lender in accordance with the terms of the Loan
Documents, payable by the Property Owner semi-annually on each date on which any
installment of the Special Assessment is due in accordance with the Payment Schedule.
Notwithstanding the foregoing, (i) if any installment of the Special Assessment or any interest
due and payable on the Special Assessment Roll is not paid by the Property Owner when and as
the same shall become due and payable in accordance with the provisions of this Section 4.01 or
(ii) any “event of default” under the Loan Documents has occurred and is continuing, the unpaid
amount of the Special Assessment Roll shall bear interest at the Default Rate as calculated by the
Lender in accordance with the terms of the Loan Documents, for as long as such amounts remain
unpaid or for so long as such “event of default” under the Loan Documents exists and is
continuing. The City, the Property Owner and the Lender agree that the Lender shall be solely
responsible for the determination from time to time of the Applicable Interest Rate and the
Default Rate and the amount of interest due and payable by the Property Owner on the Special
Assessment Roll on each day on which interest thereon is due and payable as provided in this
Agreement, and the Lender’s determination thereof shall be binding on the Property Owner
absent manifest error. The Property Owner and the Lender agree that the City shall under no
circumstance have any obligation to determine the Applicable Interest Rate or the Default Rate
or to calculate the amount of any interest payment due on the Special Assessment Roll as
provided in this Agreement, and the City may conclusively rely upon the Lender’s
determinations thereof for the purpose of exercising and discharging all of the City’s rights and
obligations under this Agreement. The Lender agrees to provide, or cause to be provided, notice
to the Property Owner and the City of the determinations of the Applicable Interest Rate and the
Default Rate, as applicable, pursuant to this Section 4.01(b) at such times, and from time to time,
as the Property Owner or the City may request.
Section 4.02 Assignment of Special Assessment Payments to Lender. At the request
of the Property Owner and the Lender, and pursuant to Section 9(g)(iii) of the PACE Statute, the
City hereby irrevocably assigns to the Lender its right to receive all installments of the Special
Assessment required to be paid by the Property Owner pursuant to this Agreement, whether in
accordance with the Payment Schedule or upon prepayment of the Special Assessment in whole
or in part in accordance with Section 4.06 of this Agreement, together with all payments of
interest due and payable on the Special Assessment Roll at the Applicable Interest Rate or the
Default Rate, as the case may be, as provided in Section 4.01(b) of this Agreement. In pursuance
of the foregoing, the City, the Property Owner and the Lender agree that, except as provided in
Section 4.05 of this Agreement, (i) all installments of the Special Assessment, whether payable
in accordance with the Payment Schedule or upon prepayment of the Special Assessment in
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whole or in part in accordance with Section 4.06 of this Agreement, together with all payments
of interest due and payable upon the Special Assessment Roll at the Applicable Interest Rate or
the Default Rate, as the case may be, shall be paid by the Property Owner directly to the Lender
when due at such address in the United States as may be designated by the Lender in writing to
the Property Owner and the City; (ii) the City shall have no obligation or duty to include any
installments of the Special Assessment on any tax bill issued by the City or to bill, collect or
remit to the Lender any installments of the Special Assessment or any interest due and payable
upon the Special Assessment Roll; and (iii) absent receipt by the City of written notice from the
Lender of a payment default in accordance with Section 4.05 hereof, the City shall be entitled to
conclusively presume that all installments of the Special Assessment and all payments of interest
due and payable on the Special Assessment Roll have been made by the Property Owner to the
Lender when due as required by the terms of this Agreement.
Section 4.03 Property Owner’s Consent to Special Assessment; Waiver.
(a) The Property Owner hereby irrevocably consents to and confirms the creation of
the Special Assessment Roll and the levy of the Special Assessment established pursuant to this
Agreement and EXPRESSLY WAIVES ANY AND ALL CLAIMS CHALLENGING AND
DEFENSES TO, THE LEGALITY, VALIDITY, ENFORCEABILITY OR COLLECTABILITY
OF THE SPECIAL ASSESSMENT, including, but not limited to, claims arising from, relating to
or otherwise based upon any theory of procedural defect concerning the approval of the
Improvements, the establishment of the Special Assessment District, confirmation of the Special
Assessment Roll and the Payment Schedule, the City’s right to place the Special Assessment lien
on the Special Assessment Parcel, the collectability and due dates of the Special Assessment
installments and interest due and payable on the Special Assessment Roll, or any other theory or
claim. The Property Owner further waives notice of hearing and the right to file objections if
and to the extent such rights exist under any special assessment ordinance of the City.
(b) Following the signing of this Agreement, no suit or action of any kind shall be
instituted or maintained for the purpose of contesting or enjoining the collection of the Special
Assessment, and the Property Owner, for itself and its successors in interest, lessees, purchasers,
and assigns with respect to all or any part of the Special Assessment Parcel, hereby irrevocably
waives its rights to contest the Special Assessment with any adjudicative body having
jurisdiction over the subject matter, including, but not limited to, the Michigan Tax Tribunal.
(c) In addition to any conditions, covenants, warranties and representations specified
in the Loan Documents, the Property Owner shall not sell, transfer, alienate or convey any of its
interest in the Special Assessment Parcel without first having given written notice of the Special
Assessment to any successors in interest, lessees, purchasers or assigns and having made a copy
of this Agreement part of any purchase contract, sale contract, lease agreement, deed or any other
conveyancing instrument by which the Property Owner purports to assign all or any part of its
interest in the Special Assessment Parcel to any successors in interest, lessees, purchasers,
transferees, licensees and assigns. This Agreement shall be recorded against the real property
constituting the Special Assessment Parcel by the PACE lender with the Register of Deeds of
City of Muskegon, State of Michigan.
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(d) The Property Owner agrees that it, its successors and assigns shall, during the
term of this Agreement and the Special Assessment, pay all ad valorem real property taxes and
assessments levied against the Special Assessment Parcel when due and the Property Owner
specifically waives, irrevocably for itself, its successors and assigns as to any and all portions of
the Special Assessment Parcel, the right to pay ad valorem real property taxes and assessments
on any other installment method which may be available to property owners in the City.
(e) The City agrees that following (i) payment by the Property Owner in full of the
Special Assessment, together with all accrued interest on the Special Assessment Roll, and all
other interest, charges and penalties which may accrue thereon, and (ii) receipt by the City of
written acknowledgment from the Lender that the Special Assessment, together with all accrued
interest on the Special Assessment Roll, has been paid to the Lender in full, it will promptly
execute and deliver documentation discharging the lien of the Special Assessment on the Special
Assessment Parcel. Until the Special Assessment liability has been fully satisfied and the lien
discharged, each purchaser of all or any part of the Special Assessment Parcel, as a condition of
closing on such purchase, shall execute and deliver to the City a written notice: (i)
acknowledging the principal amount unpaid and outstanding on the Special Assessment; (ii)
agreeing to the assumption of the liability to pay the Special Assessment, and any interest
thereon, on a timely basis, when due, until the remaining balance and interest on said Special
Assessment has been paid in full; (iii) acknowledging that the title insurance policy will state that
the Special Assessment has not been paid at time of closing thereon; and (iv) agreeing to pay to
the Lender at or prior to the close of the purchase all past due installments of the Special
Assessment and all past due payments of interest on the Special Assessment Roll. The
representations set forth in such written notice shall be enforceable at law and in equity,
including without limitation, by way of specific performance.
Section 4.04 Lien. The Special Assessment is an obligation with respect to the Special
Assessment Parcel, and shall, until paid, be a lien upon the Special Assessment Parcel for the
amount of the Special Assessment and all interest, charges and penalties that may accrue thereon.
Such lien shall be of the same character and effect as liens created pursuant to the ordinances of
the City for County taxes and shall be treated as such with respect to procedures for collection as
set forth in the General Property Tax Act and the ordinances of the City, including accrued
interest, charges and penalties. The Special Assessment confirmed hereby is a debt to the City
from the Property Owner and its successors in interest, lessees, purchasers and assigns. The right
of the City to receive all installments of the Special Assessment required to be paid by the
Property Owner pursuant to this Agreement, together with all payments of interest due and
payable on the Special Assessment Roll at the Applicable Interest Rate or the Default Rate, as
the case may be, as provided in Section 4.01, has been irrevocably assigned by the City to the
Lender in accordance with the provisions of Section 4.02 of this Agreement. No judgment or
decree shall destroy or impair any lien of the City upon the premises assessed for such amount of
the Special Assessment as may have been equitably or lawfully charged and assessed thereon.
Failure of the Property Owner or any subsequent property owner to receive any notice required
to be sent under the provisions of the ordinances of the City or this Agreement shall not
invalidate the Special Assessment or the Special Assessment Roll and shall not be a
jurisdictional requirement.
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Section 4.05 Payment Default.
(a) If any installment of the Special Assessment or interest due on the Special
Assessment Roll shall not have been paid by the Property Owner to the Lender, as assignee of
the City, at the time and in the amount required by Section 4.01 hereof (a “Payment Default”),
the Lender shall, within thirty (30) days following the date such sums were due and payable (the
“Payment Default Date”), deliver written notice to the City stating all of the following: (i) that a
Payment Default has occurred under this Agreement; (ii) the Payment Default Date; (iii) the
amount of the Special Assessment that was due and payable as of the Payment Default Date and
which remains unpaid and the amount of interest on the Special Assessment Roll that was due
and payable as of the Payment Default Date and which remains unpaid (collectively, the
“Payment Default Amount”); and (iv) an attestation by an authorized officer of the Lender that
the statements contained in the foregoing notice are true, correct and complete as of the date of
such notice. Upon receipt of such notice from the Lender, the City shall take such actions as
may be required to cause the Payment Default Amount to be certified for collection on the
summer or winter tax bill next succeeding the Payment Default Date, and such Payment Default
Amount shall be collected at the same time and in the same manner as is prescribed for the
collection of the City taxes under the General Property Tax Act and the ordinances of the City.
The City may assess a fee for delinquent taxes, interest, penalties, and fees as provided under
General Property Tax Act Section 211.78. Notwithstanding the foregoing provisions of this
Section 4.05(a), if the City shall determine that the notice of the Lender described in this Section
4.05(a) was not received by the City in sufficient time to permit the Payment Default Amount to
be placed for collection on the summer or winter tax bill next succeeding the Payment Default
Date, such Payment Default Amount shall be certified for collection on the next summer or
winter tax bill issued thereafter. The City shall be entitled to conclusively rely upon any notice
of the Lender delivered pursuant to this Section 4.05(a) as to the existence of a Payment Default
and as to the Payment Default Amount, and shall not be liable to the Property Owner or to any
other person for any action taken by the City pursuant to the terms of this Agreement or
otherwise in reliance upon the information contained in such notice. Absent receipt by the City
of written notice from the Lender of a Payment Default in accordance with this Section 4.05(a),
the City shall be entitled to presume conclusively that all installments of the Special Assessment
and all payments of interest due and payable on the Special Assessment Roll have been made by
the Property Owner to the Lender when due as required by the terms of this Agreement, and the
City shall have no obligation or duty to include any installments of the Special Assessment on
any tax bill issued by the City or to bill, collect or remit to the Lender any installments of the
Special Assessment or any interest due and payable upon the Special Assessment Roll.
(b) The City hereby agrees that, pursuant to the assignment set forth in Section 4.04,
it will cause to be paid over to the Lender all amounts received by the City from the City
Treasurer as collections of any Payment Default Amount within forty-five (45) days of the date
such sums are received by the City from the City Treasurer. The parties hereto expressly
acknowledge and agree that in no event shall the City advance to the Lender the amount of any
unpaid Payment Default Amount, and the City shall be obligated to pay over to the Lender only
such sums as are actually received by the City Treasurer as collections of any Payment Default
Amount.
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(c) In the event that any interest, penalties, fees or other charges shall be imposed
upon the Special Assessment Parcel or against the Special Assessment Roll or the amount of any
unpaid Special Assessment pursuant to the ordinances of the City or the General Property Tax
Act, by City of Muskegon, Michigan, for the administration, billing, collection or enforcement of
the Special Assessment created hereby, such amounts shall remain a debt of the Property Owner
to City of Muskegon, Michigan, as their interests may appear, and shall not be deemed to have
been assigned to the Lender pursuant to the terms of this Agreement or otherwise.
(d) The Lender hereby agrees and acknowledges that it shall have no right, and if
such right were to be found to exist, hereby waives such right, to seek payment of any delinquent
installment of the Special Assessment, and any interest, penalties, fees, or other charges, through
the City of Muskegon Delinquent Tax Revolving Fund (“DTRF”), or any subsequent City or
County fund which may replace the DTRF, or any other City or County funds.
Section 4.06 Prepayment of Special Assessment. Subject to the provisions of the
Loan Documents, including, without limitation, prepayment penalties, if any, the Property
Owner may, upon sixty (60) days’ written notice to the Lender and the City, prepay any
installment of the Special Assessment specified in the Payment Schedule by causing to be paid to
the Lender the amount of the installment to be prepaid, together with accrued interest thereon to
the date of prepayment. If such prepayment of any installment is not received by the Lender on
the date specified for prepayment, the Lender shall promptly deliver written notice to the City
that such prepayment was not received by the Lender.
Section 4.07 Invalidity; Cure. In the event of any invalidity of the Special
Assessment, the Authorized Official, at the request of the Lender, and if the City shall have
received indemnity satisfactory to the Authorized Official for its costs and expenses (including
reasonable attorneys’ fees), shall cause a new Special Assessment to be made for all or any part
of the Improvements in accordance with the PACE Statute and the PACE Program as reasonably
determined by the Authorized Official. The Property Owner, on behalf of itself and its successors
in interest, lessees, purchasers, and assigns, hereby waives any objections to and agrees to the
imposition of such new Special Assessment; provided, however, that the amount of the new
Special Assessment shall not exceed the unpaid principal amount of the Loan at the time the new
Special Assessment shall be established.
Section 4.08 City or City Treasurer Becoming Owner of the Special Assessment
Parcel. In the event that the City Treasurer takes ownership of the Special Assessment Parcel
by operation of law, the City Treasurer and the Lender agree that while the lien on the Special
Assessment Parcel will remain in full force and effect, and all principal, interest, penalties, fees,
and other charges, either based on Michigan Compiled Laws or the Loan Documents will
continue to accrue during the period of time that the City Treasurer owns the Special Assessment
Parcel. No loan or special assessment payments, including interest, penalties, fees or other
charges, are required to be paid or will be accrued by the City Treasurer to the Lender. Any and
all principal, interest, penalties, fees, and other charges which accrue during the period by which
the City Treasurer own the Special Assessment Parcel will, in the sole and unlimited discretion
of the Lender, either be: (1) considered immediately due and payable by any person or entity
who purchases the Special Assessment Parcel from the City Treasurer, and no sale or transfer of
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the Special Assessment Parcel is valid unless and until all principal, interest, penalties, fees, and
other charges have been paid by the subsequent owner of the Special Assessment Parcel; or (2)
capitalized into the outstanding principal balance of the Special Assessment, causing the Lender
to provide a revised Payment Schedule in an amount necessary to amortize the new outstanding
principal balance of the Special Assessment over the remaining number of payments. The lien
created by the Special Assessment shall not be extinguished or released until all necessary
principal and interest payments, as well as all penalties, fees, and other charges, as determined
solely by Lender, have been paid and received by Lender.
ARTICLE V
CONDITIONS PRECEDENT
Section 5.01 Conditions Precedent to the City’s Obligations.
The obligations of the City under this Agreement shall be subject to the satisfaction of the
following conditions precedent on or prior to the date of execution and delivery of this
Agreement by the City, unless waived in writing by the City:
(a) The City, the Property Owner and the Lender shall have authorized, executed and
delivered this Agreement and all approvals required hereby shall have been secured.
(b) No action, suit, proceeding or investigation shall be pending before any court,
public board or body to which the Property Owner or the City is a party, or shall be threatened in
writing against the Property Owner or the City, contesting the validity or binding effect of this
Agreement, the Special Assessment or the Owner-Arranged Financing contemplated hereby, or
which, if adversely decided, could have a material adverse effect upon the ability of the Property
Owner to pay or the City to levy the Special Assessment or to assign to the Lender the right to
receive payments of the Special Assessment, or which could have a material adverse effect on
the ability of the Property Owner or the City to comply with any of the obligations and terms of
this Agreement.
(c) There shall be no ongoing breach of any of the covenants and agreements of the
Property Owner required to have been observed or performed by the Property Owner under the
terms of this Agreement and no Event of Default by the Property Owner, and no event which,
with the passage of time or the giving of notice or both could become an Event of Default by the
Property Owner under this Agreement, shall have occurred.
(d) All documents, schedules, materials, maps, plans, descriptions and related matters
which are contemplated to be made Appendices to this Agreement shall have been fully
completed by the Property Owner to the City’s reasonable satisfaction and such Appendices shall
be true, accurate and complete.
(e) The Property Owner shall meet all eligibility requirements as set forth in
Appendix A.
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(f) The Property Owner and the Lender shall have authorized, executed and delivered
the Loan Documents, and the Lender shall have funded the Loan in accordance with the terms of
the Loan Documents.
(g) The Property Owner shall not have filed for bankruptcy or sought the protections
of any state or federal insolvency law providing protections to debtors.
(h) The Property Owner shall have obtained consent from each holder of a mortgage
interest or lien upon the Special Assessment Parcel prior to the execution and delivery of this
Agreement in substantially the form set forth in the PACE Program Report.
ARTICLE VI
REPRESENTATIONS AND WARRANTIES
Section 6.01 Representations and Warranties of the City.
The City represents and warrants to the Property Owner that, as of the date of this
Agreement:
(a) The execution and delivery of this Agreement has been duly authorized by the
City, and this Agreement complies with the PACE Statute and constitutes a valid and binding
agreement of the City, enforceable against the City in accordance with its terms, except as
enforceability may be limited by bankruptcy, insolvency, fraudulent conveyance or other laws
affecting creditors’ rights generally, now existing or hereafter enacted, and by the application of
general principals of equity, including those relating to equitable subordination.
(b) Neither the execution and delivery of this Agreement nor the consummation of
the transaction contemplated herein is in violation of any provision of any existing law,
ordinance, rule, resolution or regulation to which the City is subject, or any agreement to which
the City is a party or by which the City is bound, or any order or decree of any court or
governmental entity by which the City is subject.
(c) There are no delinquent taxes, special assessments, or water or sewer charges on
the Special Assessment Parcel that will be assessed under this Agreement; and there are no
delinquent assessments on the Special Assessment Parcel under a PACE program.
Section 6.02 Representations and Warranties of the Property Owner.
The Property Owner represents and warrants to the City and the Lender that:
(a) The Property Owner is duly organized and validly existing as a limited liability
company in good standing under the laws of the State of Michigan, with power under the laws of
the State of Michigan to carry on its business as now being conducted, and is duly qualified to do
business in the State of Michigan; and the Property Owner has the power and authority to own
the Special Assessment Parcel and to carry out its obligation to complete the Improvements.
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(b) The execution and delivery of this Agreement will not result in a violation or
default by the Property Owner of any provision of its Articles of Organization or Operating
Agreement, or under any indenture, contract, mortgage, lien, agreement, lease, loan agreement,
note, order, judgment, decree or other instrument of any kind or character to which it is a party
and by which it is bound, or to which it or any of its assets are subject.
(c) The Property Owner is the sole and exclusive legal and equitable title owner of
fee simple title to the Special Assessment Parcel and the Improvements located, or to be located,
thereon and has full legal power and authority to consent to the finalization and levying of the
Special Assessment as provided herein.
(d) The execution and delivery of this Agreement and the consummation of the
transactions contemplated hereby have been duly authorized by all requisite action, and this
Agreement has been duly executed and delivered by the Property Owner and constitutes a valid
and binding agreement enforceable against the Property Owner in accordance with its terms,
except as enforceability may be limited by bankruptcy, insolvency, fraudulent conveyance or
other laws affecting creditors’ rights generally, now existing or hereafter enacted, and by the
application of general principles of equity, including those relating to equitable subordination.
(e) Property Owner warrants and agrees that any contractual, legal or other disputes
between it and the Lender--other than matters specifically related to enforcement of property tax
obligations--or the contractor involved in the Improvements, do not involve the City, and
Property Owner agrees to hold the City and its agents, including but not limited to LAGM,
harmless from any such disputes or causes of action.
(f) The Property Owner, the Special Assessment Parcel and the Improvements satisfy
all of the PACE Program eligibility and program requirements set forth in Appendix A.
Section 6.03 Representations and Warranties of the Lender.
The Lender represents and warrants to the City that:
(a) The Lender has experience in the market for property assessed clean energy
programs and assessments and is capable of evaluating the merits and risks of its participation in
the Owner-Arranged Financing contemplated by this Agreement.
(b) The Lender has made its own independent investigation of the Property Owner,
the terms of this Agreement, the nature of the Special Assessment created hereby and the
procedures for the collection and enforcement of the Special Assessment under this Agreement
and the laws of the State of Michigan, and is not relying on the City, its agents, attorneys or
employees for any of such information or with respect to the sufficiency and scope of such
investigation. The Lender has not received, and is not relying on, any representations of the City
with respect to the Property Owner.
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(c) Lender warrants and agrees that any contractual, legal or other disputes between it
and Property Owner--other than matters specifically related to enforcement of property tax
obligations--do not involve the City, and Lender agrees to hold the City and its agents, including
but not limited to LAGM, harmless from any such disputes or causes of action.
ARTICLE VII
DEFAULT
Section 7.01 Property Owner Event of Default. If the Property Owner shall default
in the performance of any covenant or agreement on its part contained in this Agreement and
such default shall continue for a period of ten (10) days after written notice thereof has been
given to the Property Owner by the City, an “Event of Default” shall be deemed to have occurred
under this Agreement.
Section 7.02 Remedies for Property Owner Event of Default. Upon the occurrence
of an Event of Default as provided in Section 7.01 hereof, the City, after giving written notice as
required, without further notice of any kind, and in addition to all other rights and remedies
provided at law or in equity, shall be entitled to seek and obtain a decree of specific performance
of this Agreement from a court of competent jurisdiction; or the right to recover from the
Property Owner any damages incurred by the City and any costs incurred by the City in
enforcing or attempting to enforce this Agreement or the Special Assessment, including
attorneys’ fees and expenses; or to foreclose on the Special Assessment Parcel and to sell all or
any part of the Special Assessment Parcel to the extent necessary to recover any damages and
costs; or any combination of the foregoing. Notwithstanding the foregoing, the parties hereto
acknowledge and agree that the City shall not be obligated to institute any of the actions or
proceedings or to exercise any of the remedies authorized by this Section 7.02 upon the
occurrence of an Event of Default hereunder, and that its obligations with respect to the billing,
collection and enforcement of the Special Assessment or any installment thereon shall be limited
to those obligations set forth in Article IV of this Agreement. The Lender acknowledges that
neither the Special Assessment nor any installment thereon can be accelerated.
Section 7.03 The City Default. If the City shall default in the performance of any
covenant or agreement on its part contained in this Agreement and shall fail to proceed in good
faith to cure such default within sixty (60) days after written notice thereof has been received by
the City from the Property Owner or the Lender, a “City Default” shall be deemed to have
occurred under this Agreement.
Section 7.04 Remedy for City Default. Upon the occurrence of a City Default as
provided in Section 7.03 hereof, and if the Property Owner or the Lender, as the case may be,
shall have otherwise fully performed all of its obligations hereunder, the Property Owner or the
Lender, after giving written notice as required, without further notice or demand, shall be entitled
to seek and obtain a decree of specific performance from a court of competent jurisdiction; but
neither the Property Owner nor the Lender shall have the right to seek to recover money damages
against the City, including any costs or fees (including attorneys’ fees) incurred by the Property
Owner or the Lender in enforcing or attempting to enforce this Agreement. Neither the
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occurrence of a City Default nor the institution of any proceeding or the exercise of any remedy
upon the occurrence of a City Default shall negate or diminish the obligations of the Property
Owner hereunder to pay the installments of the Special Assessment and interest accrued on the
Special Assessment Roll and all other costs hereunder when the same shall become due and
payable.
Section 7.05 Waiver. Failure of any party hereunder to act upon discovery of a default
or to act upon the existence of an Event of Default shall not constitute a waiver of the right to
pursue the remedies provided herein.
ARTICLE VIII
MISCELLANEOUS
Section 8.01 Term. Except as otherwise provided in this Agreement, the terms of this
Agreement shall commence on the date first written above and shall terminate at such time as the
Special Assessment liability shall have been fully satisfied as provided in Section 4.03(e) hereof.
Section 8.02 Assignment.
(a) Except as otherwise provided herein and as provided in Section 8.02(b) hereof, no
party to this Agreement may transfer, assign or delegate to any other person or entity all or any
part of its rights or obligations arising under this Agreement without the prior written consent of
the other parties hereto excepting as otherwise expressly provided herein.
(b) The Lender and its successors and assigns may assign its rights and obligations
under this Agreement and its rights in the Special Assessment, in whole but not in part; provided,
however, that any such assignment shall be made only in accordance with applicable law; and
provided further, however, that no such assignment shall be effective unless the City shall have
first received (i) notice of the assignment disclosing the name and the address of the assignee,
which shall be an address in the United States and (ii) a Certificate of Assignment executed by
the assignee in the form attached to this Agreement as Appendix G. From and after the date of
satisfaction of the conditions for the assignment of this Agreement as provided in this Section
8.02(b), the assignee of the Lender shall be a party hereto and shall have the rights and
obligations of the Lender specified hereunder, and such assignee shall be deemed to be the
“Lender” for all purposes of this Agreement.
Section 8.03 Notices. All notices, certificates or communications required by this
Agreement to be given shall be in writing and shall be sufficiently given and shall be deemed
delivered when personally served, or when received if mailed by registered or certified mail,
postage prepaid, return receipt requested, addressed to the respective parties as follows, or to
such other address as such party may specify by written notice to the other parties hereto:
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If to the City: City of Muskegon
ADDRESS
Attn: [authorized official name and title]
With a copy to: City of Muskegon PACE Administrator
Lean & Green Michigan
500 Temple Street, Suite 6270
Detroit, MI 48201
If to the Property Owner: PROPERTY OWNER
ADDRESS
With a copy to: PACE LENDER
ADDRESS
With a copy to: City of Muskegon PACE Administrator
Lean & Green Michigan
500 Temple Street, Suite 6270
Detroit, MI 48201
If to the Lender: PACE LENDER
ADDRESS
With a copy to: City of Muskegon PACE Administrator
Lean & Green Michigan
500 Temple Street, Suite 6270
Detroit, MI 48201
Section 8.04 Amendment and Waiver No amendment or modification to or of this
Agreement shall be binding upon any party hereto until such amendment or modification is
reduced to writing and executed by each party hereto. No waiver of any term of this Agreement
shall be binding upon any party until such waiver is reduced to writing, executed by the party to
be charged with such waiver, and delivered to the other parties hereto.
Section 8.05 Entire Agreement. This Agreement constitutes the entire agreement
between the City, on the one hand, and the Lender and the Property Owner, on the other hand.
There are no other representations, warranties, promises, agreements or understandings, oral,
written or implied, between the City, on the one hand, and the Lender or the Property Owner, on
the other hand.
Section 8.06 Execution in Counterparts. This Agreement may be executed in
counterparts, each of which shall be an original and all of which shall constitute the same
instrument.
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Section 8.07 Captions. The captions and headings in this Agreement are for
convenience only and in no way limit, define or describe the scope or intent of any provision of
this Agreement.
Section 8.08 Applicable Law. This Agreement shall be governed in all respects,
whether as to validity, construction, performance and otherwise, by the laws of the State of
Michigan.
Section 8.09 Mutual Cooperation. Each party to this Agreement shall take all actions
required of it by the terms of this Agreement as expeditiously as possible and shall cooperate to
the fullest extent possible with the other parties to this Agreement. Each party to this Agreement
shall exercise reasonable diligence in reviewing, approving, executing and delivering all
documents necessary to accomplish the purposes and intent of this Agreement. Each party to
this Agreement also shall use its best efforts to assist the other parties to this Agreement in the
discharge of its obligations hereunder and to assure that all conditions precedent to the financing
arrangements are satisfied.
Section 8.10 Binding Effect; No Third-Party Beneficiary. This Agreement shall be
binding upon the parties hereto and upon their respective successors and assigns. In no event
shall the provisions of this Agreement be deemed to inure to the benefit of or be enforceable by
any third party, except for permitted assigns.
Section 8.11 Force Majeure. No party hereto shall be liable for the failure to perform
its obligations hereunder if said failure to perform is due to Force Majeure. Said failure to
perform shall be excused only for the period during which the event giving rise to said failure to
perform exists; provided, however, that the party seeking to take advantage of this Section shall
notify the other party in writing, setting forth the event giving rise to said failure to perform,
within ten (10) business days after the occurrence of said event.
Section 8.12 Severability. If any provision of this agreement or the application to any
person or circumstance is, determined to be invalid or unenforceable by means of law, the
remainder of the agreement will remain in full force and effect.
[SIGNATURES ON THE FOLLOWING PAGE]
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City of Muskegon PACE Special Assessment Agreement
IN WITNESS WHEREOF, the CITY, PROPERTY OWNER, and PACE LENDER
have caused this PACE Special Assessment Agreement to be duly executed and delivered as of
the date first written above.
Witnessed: PROPERTY OWNER
By: ________________________________
Signature of: Its:
Witnessed: CITY
By: _________________________________
Signature of: Its: AUTHORIZED OFFICIAL
By: _________________________________
_ Its: AUTHORIZED OFFICIAL
Signature of:
Witnessed: PACE LENDER
______________________________ By: Its:
Signature of:
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City of Muskegon PACE Special Assessment Agreement
State of Michigan )
) ss
City)
The foregoing instrument was acknowledged before me this ____ day of _______, 202_, by
_____________________ the Authorized Signatory of _________________________ on behalf
of _________________________.
Notary Public
__________________, Michigan
My Commission expires ________________
State of Michigan )
) ss
City)
The foregoing instrument was acknowledged before me this ______ day of _______, 202_, by
[CITY AUTHORIZED OFFICIAL] on behalf of City.
Notary Public
___________________, Michigan
My Commission expires ________________
State of ______)
City of _______ )
The foregoing instrument was acknowledged before me this number day of month, 202_, by
PACE LENDER OFFICIAL the Authorized Signatory of PACE LENDER, on behalf of PACE
LENDER.
Notary Public
___________________. MICHIGAN
My Commission expires ________________
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APPENDIX A
PROGRAM ELIGIBILITY CHECKLIST
Property is privately owned commercial, industrial, agricultural or multifamily residential,
with 4 or more dwelling units, real property within the City’s jurisdictional boundaries,
which may be owned by any individual or private entity, whether for-profit or non-profit.
MCL 460.933(g).
There are no delinquent ad valorem taxes, special assessments, or water or sewer charges on
the property. The Authorized Official at his discretion may disqualify properties that
although not currently delinquent, have been delinquent within six months of the
application’s submission. MCL 460.941(2)(a).
There are no delinquent assessments on the property under a PACE program. MCL
460.941(2)(b).
The term of assessment shall not exceed the lesser of the useful life of the Project paid for by
the assessment or 25 years. Projects that consist of multiple energy projects or
environmental hazard projects with varying lengths of useful life may blend the lengths to
determine an overall assessment term that does not exceed the useful life of the
improvements in aggregate. MCL 460.939(i).
An appropriate ratio must be determined for the amount of assessment in relation to the
assessed value of the property. MCL 460.939(j).
Written consent from the mortgage holder must be obtained if the property is subject to a
mortgage. MCL 460.939(k).
A baseline energy audit or energy modeling must be conducted for the Project on property
that is approved by LAGM. Such approval may be granted retroactively if the audit meets
the standards of LAGM. MCL 460.939(o).
For projects financed for more than $250,000, a performance guarantee must be provided by
the contractor(s) to guarantee a savings to investment ratio greater than one (1). The
performance guarantee must meet the standards set by LAGM, and include financial and
logistical arrangements for ongoing measurement and verification of energy savings. This
requirement may be waived by the property owner and is not applicable to new construction
energy project. MCL 460.939(p).
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APPENDIX B
SPECIAL ASSESSMENT PARCEL DESCRIPTION
Parcel Number:
Address:
LEGAL DESCR:
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APPENDIX C
SPECIAL ASSESSMENT ROLL
PACE Project Special Assessment
Parcel Number:
Address:
City of Muskegon:
Owner:
Assessment:
Percent:
I certify that the above is the special assessment roll created for the PACE project referenced in
this document in the applicable City in the State of Michigan, subject to payment of the special
assessment as outlined in Appendix C of this document.
_____________________________________________________
_____________________________________________________
Dated
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APPENDIX D
PAYMENT SCHEDULE
(TBD)
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APPENDIX E
DESCRIPTION OF IMPROVEMENTS
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APPENDIX F
PACE Program Application
Property and Property Owner Information
1. Property/Parcel Legal Name(s) (as they appear on property tax records)
Parcel #: _______________________
Address: _______________________
Owner: _______________________
2. Property Type (double-click to check all that apply)
Agricultural
Commercial (including multifamily with 4 or more units)
• Type of commercial property - ____________________
Industrial
Nonprofit
3. Property Record Owner(s) Contact Information
Property Owner/Company Name: _______________________
Signatory Name: _______________________
Address: _______________________
E-mail Address: _______________________
Telephone Number: _______________________
4. Property Owner(s) Type
Individual LLP LLC
Corporation 501(c)3 Other ______________
5. Property Valuation
State Equalized Value (SEV): $______________________
Date of SEV: _______________________
Valuation (per Appraisal): $______________________
Date of Appraisal: _______________________
6. Existing Liens Against Property (tax, special assessment, water or sewer charges, etc.)
Amount Type End Date
$ _____________________ _____________________ _____________________
$ _____________________ _____________________ _____________________
Total Dollar Amount of Liens Against Property: $__________________
7. Balance of Any Mortgage(s):
Amount of Mortgage Name of Mortgage Holder
Mortgage $ __________________ __________________
Additional Debt on Property $ __________________ __________________
35
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City of Muskegon PACE Special Assessment Agreement
a. Consent: If subject to a mortgage - Consent by mortgage holder(s) must be obtained.
Project Information
1. PACE Project Developer (Lean & Green Michigan can make referrals if necessary.)
Name: __________________
Address: __________________
E-mail Address: __________________
Telephone Number: __________________
Other Contractors: __________________
2. Overall Project Cost: __________________
3. Savings to Investment Ratio* (as provided in Savings Guarantee)
3a. Year 1: __________________
3b. Overall: __________________
3c. Waived ___________________
4. Useful Life of Project Measures: _____ years
5. User ID for Energy Star Portfolio Manager (for property): _______________________
PACE Loan Details
1. PACE Lender/Capital Provider (Lean & Green Michigan can make referrals if necessary.)
Name: __________________
Address: __________________
E-mail Address: __________________
Telephone Number: __________________
2. Requested Assessment Amount
Project Cost: $ __________________
Energy Audit or Model $ __________________
Engineering/Architect Plans $ __________________
Building Permit Fees $ __________________
Other (Please explain) $ __________________
Total Assessment Amount: $ __________________ (Total of all lines above)
3. Requested Assessment Repayment Period: _____ years
4. Interest Rate Offered by Lender: _____%
36
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City of Muskegon PACE Special Assessment Agreement
APPENDIX G
FORM OF CERTIFICATE OF ASSIGNMENT
This Certificate of Assignment of the Special Assessment Agreement (“Assignment”),
dated effective as of date, (the “Effective Date”), is made by [LENDER] (“Assignor”) to
_______________ (“Assignee”). Assignor and Assignee are referred to at times, each
individually as a “Party,” and collectively as the “Parties.”
Agreement
1. For good and valuable consideration and the payment of [PAYMENT
AMOUNT], the receipt and sufficiency of which is hereby acknowledged, confessed, stipulated
and agreed upon by Assignor, Assignor ASSIGNS, BARGAINS, GIVES, SETS OVER,
CONVEYS, TRANSFERS and DELIVERS to Assignee all of Assignor’s rights, title, interest,
obligations, and duties under the Special Assessment Agreement entered into by Assignor,
Property Owner, and ________________ (the “Transferred Interest”), together with all of
Assignor’s rights to receive payments from Property Owner attributable to the Transferred
Interest arising on and after the date of this Assignment.
2. Assignor warrants that: (i) it is authorized to execute this document; (ii) it is
conveying good, indefeasible title to the Transferred Interest; and (iii) the Transferred Interest is
free and clear of all liens and encumbrances, and no party has any rights in or to acquire, or hold
as security, or otherwise, the Transferred Interest.
3. Assignor hereby agrees to make, execute and deliver to Assignee any and all
further instruments of conveyance, assignment or transfer, and any and all other instruments, as
may be necessary or proper to carry out the purpose and intent of this Assignment and/or to fully
vest Assignee in all rights, titles, interests obligations, and duties of Assignor in and to the
Transferred Interest, which instruments shall be delivered to Assignee as soon as possible
without any condition or delay on the part of Assignor.
4. Assignee hereby accepts all of Assignor’s rights, title, interest, obligations, and
duties under the Special Assessment Agreement and agrees to be bound by its terms. From and
after the date of this Assignment and satisfaction of the conditions contained in Section 8.02(b)
of the Special Assessment Agreement, Assignee shall be a party to the Special Assessment
Agreement and shall have the rights and obligations of the Assignor specified thereunder, and
Assignee shall be deemed to be the “Lender” for all purposes of the Special Assessment
Agreement.
5. All notices, certificates or communications provided pursuant to the Special
Assessment Agreement to Assignee shall be delivered as provided in the Special Assessment
Agreement to:
37
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City of Muskegon PACE Special Assessment Agreement
_______________________________
(Name)
_______________________________
(Address)
_______________________________
(Attention)
IN WITNESS WHEREOF, Assignor and Assignee hereby agree to be bound by the terms
of this Assignment and each has executed this Assignment to be effective as of the Effective
Date.
ASSIGNOR:
____________________________________
[LENDER]
By: _________________________________
Its: _________________________________
ASSIGNEE:
____________________________________
Name: ______________________________
By: _________________________________
Its: _________________________________
38
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City of Muskegon PACE Special Assessment Agreement
APPENDIX H
FORM OF LENDER CONSENT
Lender Consent and Acknowledgement of Owner Participation in
City of Muskegon, Michigan, PACE Program
This acknowledgement is granted date, 20__, by Name of Mortgage Holder (the “Lender”), and
for the benefit of PROPERTY OWNER (the “Property Owner”), and City of Muskegon in the
State of Michigan.
Recitals
A. Pursuant to Public Act No. 270 of 2010, the City established the City Property Assessed
Clean Energy (“PACE”) Program on date, 20__, by resolution, to promote installation of energy
projects and/or environmental hazard projects.
B. The Property Owner has applied to the Program to finance the amount of $ AMOUNT OF
FINANCING, to be paid back as an assessment on Property Owner’s real property, described in
Appendix D attached hereto (the “Property”), over a period of twenty years.
C. Owner has previously executed a mortgage, deed of trust, dated ______ ___, 20__, to the
Lender, covering the Property, to secure a promissory note in the sum of $ AMOUNT OF LOAN, and
recorded on _____ ____, 20__ at ___, Page ____, Muskegon County Register of Deeds.
D. Repayment by the Property Owner under the PACE Special Assessment Agreement will
be a statutory assessment levied against the Property notice of which shall be recorded against
the Property in the Office of the County Clerk/Register of Deeds for Muskegon County, and
which assessment, together with interest and any penalties, shall constitute a lien (the “Lien”) on
the Property, and shall be collected subject to the terms agreed to between the parties and as
contained in the PACE Special Assessment Agreement.
Consent and Acknowledgement
Lender acknowledges that it has been informed of the Property Owner’s participation in the City
PACE Program and agrees that Property Owner’s execution of the PACE Special Assessment
Agreement will not constitute a default under Lender’s Deed of Trust.
Execution of this Consent and Acknowledgement by Lender’s representative shall constitute full
and complete consent to the Property Owner’s participation in the City PACE Program.
39
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City of Muskegon PACE Special Assessment Agreement
Name of Lender: ________________ Date: _________________
By: ___________________________
Title: _________________________
STATE OF MICHIGAN
CITY
The foregoing instrument was acknowledged before me this ___ day of ______, 20__, by
_________________, on behalf of _________________.
____________________________________
_________________, Notary Public
City, State of _________
Acting in ____________ County
My Commission Expires:
40
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City of Muskegon PACE Special Assessment Agreement
APPENDIX I
FORM OF WAIVER OF SIR AND SAVINGS GUARANTEE
This waiver of the savings-to-investment ratio requirement and guarantee of savings (“Waiver”)
is acknowledged on this ___ day of ____, 20__ by [Property OWNER]
Recitals
A. Pursuant to Public Act No. 270 of 2010, as amended, City of Muskegon established the
City of Muskegon PACE Program to promote installation of renewable energy systems,
energy efficiency improvements, water usage improvement, and environmental hazard
projects.
B. The Property Owner has elected to participate in this program and plans to enter into a
Special Assessment Agreement with City of Muskegon and [LENDER] for the purpose
of financing the installation of [IMPROVEMENTS] on its property.
C. Pursuant to MCL 460.939(1)(p)(ii), unless waived by the Property Owner, the contractor
must guarantee to the Property Owner that the project will achieve a savings-to-
investment ratio greater than one, and agree to pay the property owner for any shortfall in
savings, on an annual basis.
D. The Property Owner has elected to waive this requirement.
IN WITNESS WHEREOF, the Property Owner hereby waives the requirement that the project
achieve a savings-to-investment ratio greater than one, and that the contractor guarantee the
savings, and make up for any shortfall on an annual basis. Property Owner expressly waives any
and all claims challenging the legality or validity of this waiver or the legality, validity, or
collectability of the PACE special assessment.
[PROPERTY OWNER]
By:
Its:
State of Michigan )
) ss
City of Muskegon )
The foregoing instrument was acknowledged before me this ____ day of _______, 20__, by
________ the ____________ of _______________ on behalf of ______________________.
Notary Public
___________________ City, Michigan
My commission expires ________________
41
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Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: April 23, 2024 Title: Amendment to the zoning ordinance - 24-
hour marihuana sales
Submitted by: Mike Franzak, Planning Director Department: Planning
Brief Summary:
The Green Abyss, operators of the Grassy Knoll, have applied to amend the zoning ordinance to
allow all marihuana retailers in the Marihuana Facilities Overlay District to be able to operate 24-hours
per day. The ordinance currently allows marihuana retailers to be open from 8am to 12am.
Detailed Summary & Background:
The Planning Commission unanimously recommended denying the request.
Goal/Focus Area/Action Item Addressed:
Key Focus Areas:
Goal/Action Item:
2027 Goal 2: Economic Development Housing and Business - Progress toward new and ongoing
economic development projects
Amount Requested: Budgeted Item:
N/A Yes No N/A X
Fund(s) or Account(s): Budget Amendment Needed:
N/A Yes No N/A X
Recommended Motion:
To deny the request to amend the zoning ordinance to allow marihuana retailers within the
Marihuana Facilities Overlay District to operate 24-hours per day.
Approvals: Guest(s) Invited / Presenting:
Immediate Division X
Head Yes
Information
Technology
Other Division Heads X
Communication
Legal Review
Page 199 of 209
Page 200 of 209
PLANNING COMMISSION EXCERPT
April 11, 2024
Hearing, Case 2024-06: Request to amend Section 2331 subsection C.(1) of the zoning ordinance to allow for
24-hour operation in the Marihuana Facilities Overlay District, by The Green Abyss.
SUMMARY
1. The Marihuana Facilities Overlay District allows marihuana retailers to be open from 8 am to 12 am.
2. The Green Abyss, which controls The Grassy Knoll at 2125 Lemuel St, has applied to amend the
ordinance to allow Retailers/Provisioning Centers/Microbusinesses to be open 24 hours a day. This
amendment would apply to any Retailer/Provisioning Center/Microbusiness located in the Marihuana
Facilities Overlay District. This amendment would not include changing the hours of operation for
Designated Consumption Establishments.
3. The explanation of request on the application states “This would allow us to service the essential
medicine to our community for people working afternoon and midnight shifts. Also, it will contribute
to the safety and security of the community by ensuring the business is occupied at all times.”
4. Please see the attached Marihuana Facilities Overlay District map. Please note that not all locations on
the map allow for retail stores. Please also note that microbusinesses may also be located in most
commercial/industrial districts with the issuance of a special use permit.
Proposed Amendment
(redline version)
Provisioning Center, Retailer, Microbusiness and Designated Consumption Establishment Requirements:
1. Hours. Provisioning Centers, Retailers and Microbusinesses may be open 24 hours per day. and Designated
Consumption Establishments may operate between the hours 8 am and 12 am.
STAFF RECOMMENDATION
Staff does not see an issue to allowing 24-hour retail options. The cities of Kalamazoo and Portage began
allowing 24-hour retail services in 2023 and have mentioned that they have not seen any issues. The City of
Muskegon has had several break ins at retailer locations during closed hours.
Page 201 of 209
CITY OF MUSKEGON
MUSKEGON COUNTY, MICHIGAN
ORDINANCE NO._____
An ordinance to amend the zoning ordinance to allow marihuana retailers to operate 24 hours per day.
THE CITY COMMISSION OF THE CITY OF MUSKEGON HEREBY ORDAINS:
Article XX of the zoning ordinance is amended as proposed to allow marihuana retailers to operate 24 hours
per day.
This ordinance adopted:
Ayes:______________________________________________________________
Nayes:_____________________________________________________________
Adoption Date:
Effective Date:
First Reading:
Second Reading:
CITY OF MUSKEGON
By: _________________________________
Ann Meisch, MMC, City Clerk
Page 202 of 209
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 23rd day of April 2024, 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: ___________________, 2024. __________________________________________
Ann Meisch, MMC
Clerk, City of Muskegon
Publish: Notice of Adoption to be published once within ten (10) days of final adoption.
Page 203 of 209
CITY OF MUSKEGON
NOTICE OF ADOPTION
Please take notice that on April 23, 2024, the City Commission of the City of Muskegon adopted an
ordinance to allow marihuana retailers to operate 24 hours per day.
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 ____________________, 2024. CITY OF MUSKEGON
By _________________________________
Ann Meisch, MMC
City Clerk
---------------------------------------------------------------------------------------------------------------------
PUBLISH ONCE WITHIN TEN (10) DAYS OF FINAL PASSAGE.
Account No. 101-80400-5354
Page 204 of 209
Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: April 23, 2024 Title: Resolution to Support the Great Lakes St.
Lawrence Cities Initiative's creation of a Mayors'
Commission on Economic Transformation
Submitted by: Department: Manager's Office
Brief Summary:
Resolution on transforming the Great Lakes and St. Lawrence River Basin into a thriving bluegreen
economic corridor while safeguarding our fre
Detailed Summary & Background:
The Great Lakes and St. Lawrence Cities Initiative, of which the City of Muskegon has recently
become a member, is convening in Montreal, Quebec for its May 15-17, 2024 annual conference. At
which times, the Cities Initiative and its membership of mayors from across the Great Lakes and St.
Lawrence River Basin will be launching the Mayors Commission on Economic Transformation to
promote sustainable, resilient, and inclusive economic development basin-wide and appropriate
freshwater stewardship for the benefit of current and future generations. While I will not be in
attendance at this year’s annual conference, with the Commission’s support, I anticipate
participating with other Basin communities in developing an Action Plan for the Great Lakes and St.
Lawrence Economic Transformation, 2025-2035, which will be released at the Cities Initiative’s 2025
annual conference in Milwaukee, Wisconsin.
Goal/Focus Area/Action Item Addressed:
Key Focus Areas:
Goal/Action Item:
2027 Goal 1: Destination Community & Quality of Life
Amount Requested: Budgeted Item:
Yes No N/A x
Fund(s) or Account(s): Budget Amendment Needed:
Yes No N/A x
Recommended Motion:
Adopt the resolution as presented.
Approvals: Guest(s) Invited / Presenting:
Immediate Division
Head No
Page 205 of 209
Information
Technology
Other Division Heads
Communication
Legal Review
Page 206 of 209
Resolution Number 2024-X
Transforming the Great Lakes and St. Lawrence River Basin into a Thriving
Blue-Green Economic Corridor While Safeguarding Our Freshwater Resources
WHEREAS the Great Lakes and St. Lawrence River Basin forms the largest freshwater ecosystem in the
world, providing drinking water to more than 40 million people and serving as the foundation of our
communities’ economic prosperity.
AND WHEREAS basin communities collectively comprise the world’s third largest economy, generating
$6 trillion in economic output annually.
AND WHEREAS heavy industry and manufacturing has predominated in parts of the basin, often
degrading our water quality and perpetuating environmental challenges in disadvantaged communities.
AND WHEREAS basin-wide ecosystem restoration efforts yield significant economic dividends.
AND WHEREAS the U.S. federal government’s $4.17-billion investment in the Great Lakes Restoration
Initiative since 2010 and the Canadian federal government’s recent commitment of $420 million are two
important contributors to this virtuous circle between environmental protection and sustainable
economic development.
AND WHEREAS some experts anticipate growth in climate-related migration to basin communities as
conditions worsen in arid and coastal environments in Canada and the United States, with freshwater
access being a major advantage.
AND WHEREAS residents are increasingly keen to live, work, invest, and play in vibrant communities
with ample access to environmentally-friendly lifestyles, jobs, development and recreation.
AND WHEREAS the blue economy is growing exponentially, with the basin’s freshwater catalyzing
increased economic opportunities for innovative businesses, waterfront revitalization, and the cruise
and shipping industries.
AND WHEREAS the green economy is growing quickly, with sustainable industries on track to see
revenues exceed $5 trillion by 2025, with consumers across all ages and demographics increasingly
demanding green products and services.
AND WHEREAS federal, state and provincial governments in Canada and the United States are beginning
to take bold action to drive blue-green economic transformation.
AND WHEREAS the United States federal government is investing billions of dollars to enhance coastal
resilience, reduce greenhouse gas emissions, and nurture the creation of new green and blue industries.
AND WHEREAS Illinois and Michigan are two Great Lakes states that are establishing themselves as
leaders in the clean-energy revolution, having signed into state law ambitious plans to expand clean and
renewable energy, reduce greenhouse gas emissions, and create jobs in the climate sector.
AND WHEREAS building a thriving freshwater economy requires attracting green and blue industries to
foster job creation and climate and water innovation; harnessing clean, accessible waterfronts as drivers
of economic revitalization and equitable communities; implementing clean and renewable energy
Page 207 of 209
sources to reduce greenhouse gas emissions and build livable communities; and expanding sustainable,
integrated, water-borne commerce, mobility, and tourism.
AND WHEREAS the Great Lakes and St. Lawrence Cities Initiative was founded in 2003 as a coalition of
local elected leaders working collaboratively to promote the economic, environmental, and social health
of basin communities, making the Cities Initiative the ideal organization to facilitate sustainable,
resilient, and inclusive economic development while safeguarding our freshwater resources.
NOW, THEREFORE BE IT RESOLVED THAT the City of Muskegon supports the Cities Initiative in launching
the Mayors Commission on Economic Transformation at its May 15-17, 2024 Annual Conference in
Montréal, Quebec to promote sustainable, resilient and inclusive economic development basin-wide
and appropriate freshwater stewardship for the benefit of current and future generations.
BE IT RESOLVED FURTHER that the City of Muskegon wishes to participate in the Mayors Commission on
Economic Transformation to develop an Action Plan for the Great Lakes and St. Lawrence Economic
Transformation, 2025-2035, which will be released at the Cities Initiative’s next Annual Conference in
Milwaukee, Wisconsin in May 2025.
BE IT RESOLVED ADDITIONALLY that the City of Muskegon recognizes this Action Plan is anticipated to
map paths for municipalities to support the following:
• Industrial Transformation: attracting green and blue industries to foster job creation and climate
and water innovation, while protecting the basin’s unparalleled freshwater ecosystem.
• Energy Transformation: implementing clean and renewable energy sources to respond to the
expected growth in clean energy consumption for businesses, industries, and residents.
• Transportation Transformation: expanding sustainable, integrated and water-borne commerce,
mobility, and tourism.
• Waterfront Transformation: developing shorelines intentionally by weaving together multiple
uses, including residential and recreation, to create accessible and thriving economic centers.
BE IT RESOLVED FINALLY that the City of Muskegon pledges to work with the Cities Initiative and its
members to guide the Mayors Commission on Economic Transformation and advance its mission.
The foregoing Resolution was presented by Mayor Johnson, acted upon by Vice Mayor St. Clair for
adoption, which was supported by Commissioner ______, and the same was duly passed (X to X) at a
general session of the City of Muskegon City Commission.
CERTIFICATION
I hereby certify this 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 April 23, 2024.
By: _____________________
Kenneth D. Johnson
Mayor
By: _____________________
Ann Marie Meisch, MMC
Clerk
Page 208 of 209
Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: April 23, 2024 Title: Public Utility (water/sewer) Easement -
Adelaide Pointe
Submitted by: Department: Manager's Office
Brief Summary:
Detailed Summary & Background:
Goal/Focus Area/Action Item Addressed:
Key Focus Areas:
Goal/Action Item:
Amount Requested: Budgeted Item:
Yes No N/A
Fund(s) or Account(s): Budget Amendment Needed:
Yes No N/A
Recommended Motion:
Approvals: Guest(s) Invited / Presenting:
Immediate Division
Head No
Information
Technology
Other Division Heads
Communication
Legal Review
Page 209 of 209
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