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CITY OF MUSKEGON
CITY COMMISSION MEETING
July 9, 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. Brand Presentation Community Engagement
☐ PUBLIC COMMENT ON AGENDA ITEMS:
☐ CONSENT AGENDA:
A. Approval of Minutes City Clerk
B. Brand Kit Community Engagement
C. Sale of 1518 Jiroch Planning
D. Purchase of 1694 Pine Planning
E. Rezoning of 1903 Marquette Ave from RM-1 to FBC, NC (SECOND
READING) Planning
F. Water Supply System Bonds Series 2024 Finance
G. Phase 2 Contract with MGT Manager's Office
H. MML Workers' Compensation Fund Board Ballot Manager's Office
I. Lead Service Lines Replacements Public Works
J. NIMS Elevated Storage Tank Improvements Project Public Works
K. Concur with CRC Recommendation to make Appointment to Planning
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Commission City Clerk
L. Purchase of Tax Auction Properties Planning
☐ PUBLIC HEARINGS:
A. Establishment of a Commercial Redevelopment District - 280 W.
Muskegon Ave. Economic Development
B. Issuance of a Commercial Facilities Exemption Certificate - West Haven
280 LLC Economic Development
☐ UNFINISHED BUSINESS:
☐ NEW BUSINESS:
☐ 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. Discuss Pending litigation and attorney client privileged information
Finance
☐ 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
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:
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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: July 9, 2024 Title: Brand Presentation
Submitted by: Deborah Sweet, Community Department: Community Engagement
Engagement Manager
Brief Summary:
Detailed Summary & Background:
City staff, Kindred Marketing Agency, and Community Champions will review the process and
present the new brand recommendation for the City of Muskegon.
Goal/Focus Area/Action Item Addressed:
Key Focus Areas:
Goal/Action Item:
2027 GOAL 3: COMMUNITY CONNECTION - Digestible understandable and accessible internal and
community communications
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 x
Head Yes
Information x
Technology
Other Division Heads x
Communication x
Legal Review x
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Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: July 9, 2024 Title: Approval of Minutes
Submitted by: Ann Meisch, City Clerk Department: City Clerk
Brief Summary:
To approve minutes of the June 25, 2024, City 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 x
Fund(s) or Account(s): Budget Amendment Needed:
Yes No N/A x
Recommended Motion:
Approval of 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
June 25, 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 p.m., Tuesday, June 25, 2024.
Pastor Apollo McCullough from Port City Church opened the meeting with
prayer, 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 Jay
Kilgo, Willie German, Jr., Rachel Gorman, Katrina Kochin, and Destinee Keener
(arrived at 5:55 p.m., and left at 8:08 p.m.), City Manager Jonathan Seyferth,
Assistant City Attorney William Meier, and City Clerk Ann Marie Meisch.
2024-57 HONORS, AWARDS, AND PRESENTATIONS
A. HBCU Club of Muskegon Manager's Office
Tarra Carson, HBCU Club of Muskegon, introduced college club members who
were present and thanked the City for their support for the past five years.
B. Storm Clean-Up
Todd Myers, Deputy Director of DPW, gave an up-date on the storm clean-up.
PUBLIC COMMENT ON AGENDA ITEMS
No public comments were made.
2024-58 CONSENT AGENDA
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A. Approval of Minutes City Clerk
To approve minutes of the June 10, 2024, Planning/Worksession Meeting, and
the June 11, 2024, City Commission Meeting.
STAFF RECOMMENDATION: Approval of the minutes.
C. Fireworks Display Permit for Muskegon Country Club City Clerk
Pyrotecnico Fireworks, Inc. is requesting approval of a fireworks display permit
for Friday, July 5, 2024, at the Muskegon Country Club. The Fire Marshall will
inspect the fireworks on the day of the event.
STAFF RECOMMENDATION: Approve the fireworks display permit for Pyrotecnico
Fireworks, Inc., contingent upon inspection of the fireworks.
D. Rezoning of 1903 Marquette Ave from RM-1 to FBC, NC Planning
Request to rezone 1903 Marquette Avenue from RM-1, Low-Density Multiple
Family Residential, to FBC-NC, Form-Based Code, Neighborhood Core, by the
County of Muskegon. This rezoning would help us achieve a goal from the
master plan, which is to "Create a community node at the intersection of
Marquette/Quarterline." The Planning Commission unanimously recommended
approval at their June 13 meeting.
STAFF RECOMMENDATION: To approve the request to rezone the property at
1903 Marquette Ave from RM-1 to FBC, NC.
(REQUIRES SECOND READING)
Motion by Commissioner German, second by Commissioner Kilgo, to adopt the
Consent Agenda as presented minus items B and E.
ROLL VOTE: Ayes: St.Clair, Johnson, Kilgo, German, Gorman and Kochin
Nays: None
MOTION PASSES
2024-59 ITEMS REMOVED FROM THE CONSENT AGENDA
B. Splashpad Reconstruction Bid Award DPW- Parks
Staff requests approval to enter into a contract with Midwest Construction
Group for $298,000 for the reconstruction of the downtown Muskegon
splashpad. The current downtown Muskegon splashpad has exceeded its
lifespan and is due for replacement. Staff has worked hard to keep this amenity
running, but a new splashpad is long overdue. On May 2nd, the Parks &
Recreation department posted a RFP for splashpad reconstruction. We
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received 1 proposal for $298,000 from Midwest Construction Group for this
project. Staff believes this is a reasonable cost for the project. This will be funded
through a combination of the DNR SPARK grant ($250,000) and a donation from
Howmet Aerospace ($50,000). The goal is for construction to be completed this
fall.
Through the request of the DNR, we solicited bids in late 2023 for a design build,
which was awarded to Fleis & Vanderbrink. Since F&V was selected, we held a
public engagement and finalized design concepts which were approved by
the DNR. These plans were included in the reconstruction RFP and staff is
excited to rehab this popular community amenity.
Splashpad Timeline
November 2022 - Staff applies for SPARK grant
January 2023 - Muskegon is approved for $250,000 SPARK grant
Summer 2023 - City Staff & MDNR Staff reach agreement on contracting
methods
October 2023 - Fleis & Vanderbrink is selected as design build firm
Winter 2023 - Public engagements
January 2024 - Construction plans are submitted to DNR
April 2024 - DNR approves plans and bid package (Spark Grant Requirement)
May 2024 - Bid solicitation is released for reconstruction of Muskegon Splashpad
STAFF RECOMMENDATION: Authorize staff to enter into a contract with Midwest
Construction Group for $298,000 for the reconstruction of the downtown
Muskegon splashpad.
Motion by Commissioner Kochin, second by Vice Mayor St.Clair, to authorize
staff to enter into a contract with Midwest Construction Group for $298,000 for
the reconstruction of the downtown Muskegon splashpad.
ROLL VOTE: Ayes: Kochin, St.Clair, Johnson, Kilgo, Keener, German, and
Gorman
Nays: None
MOTION PASSES
E. Purchase and Development Agreement: 1095 Third Street (Former
Catholic Charities) Economic Development
We have finalized a purchase and development agreement with West Urban
Properties to complete an adaptive reuse project at the former Catholic
Charities. Last year, the City Commission awarded an option to purchase the
City-owned building at 1095 Third Street to West Urban Properties. Since then,
City staff have been working with the potential developer on an environmental
site assessment grant through GMED, developing a pro forma that cash flows
with mixed income units, and determining a rough project timeline. The goal will
be to commence this project before the end of the calendar year, with lease
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up on phase one in 2025 and commencement of phase two also in 2025.
STAFF RECOMMENDATION: Motion to approve the Purchase and Development
Agreement for 1095 Third Street as presented and to authorize the Mayor and
Clerk to sign.
Motion by Commissioner Kilgo, second by Vice Mayor St.Clair, to approve the
Purchase and Development Agreement for 1095 Third Street as presented and
to authorize the Mayor and Clerk to sign.
ROLL VOTE: Ayes: Gorman, Kochin, St.Clair, Johnson, Kilgo, Keener, and
German
Nays: None
MOTION PASSES
2024-60 NEW BUSINESS
A. 4th Quarter Budget Reforecast Finance
At this time, staff is asking for approval of the 4th Quarter Budget adjustment for
the end of fiscal year 2023-24.
STAFF RECOMMENDATION: To approve the 4th Quarter FY 2023-24 Budget
Reforecast as presented by staff.
Motion by Vice Mayor St.Clair, second by Commissioner Kochin, to approve the
4th Quarter FY 2023-24 Budget Reforecast as presented by staff.
ROLL VOTE: Ayes: German, Gorman, Kochin, St.Clair, Johnson, Kilgo, and
Keener
Nays: None
MOTION PASSES
ANY OTHER BUSINESS
Commissioners German and Kochin commented on the Juneteenth Parade
and the flying of the flag. City Mannager Jonathan Seyferth stated a tree fell on
the vacant new home on Sophia. Commissioners Kilgo and Gorman
commented on the home at 238 Houston to be demolished.
PUBLIC COMMENT ON NON-AGENDA ITEMS
Public comments received.
2024-61 CLOSED SESSION
A. City Manager's Evaluation City Clerk
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Motion by Vice Mayor St.Clair, second by Commissioner Kilgo, to go into
Closed Session for personnel matters.
ROLL VOTE: Ayes: St.Clair, Johnson, Kilgo, Keener, German, Gorman, and
Kochin
Nays: None
MOTION PASSES
Motion by Vice Mayor St.Clair, second by Commissioner Kochin, to go into
Open Session.
ROLL VOTE: Ayes: Kochin, St.Clair, Johnson, Kilgo, German, and Gorman
Nays: None
MOTION PASSES
ADJOURNMENT
The City Commission meeting adjourned at 8:25 p.m.
Respectfully Submitted,
Ann Marie Meisch, MMC City Clerk
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Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: July 9, 2024 Title: Brand Kit
Submitted by: Deborah Sweet, Community Department: Community Engagement
Engagement Manager
Brief Summary:
Staff is requesting approval of the City of Muskegon brand kit.
Detailed Summary & Background:
On October 24, 2023, the City Commission approved (6-0) a contract with Kindred Marketing Agency
to develop a new brand kit for the City of Muskegon and was presented with a community
engagement plan for the project (attached).
Kindred Marketing Agency has created a brand kit to address the following goals:
• Improve Muskegon’s image
• Stimulate economic development
• Unite the community through an inclusive process
• Develop a comprehensive citywide brand strategy and roll-out plan
• Create a dynamic new brand identity
• Demonstrate Muskegon’s connection and community
The current city logo was created decades ago and no brand guidelines, brand story, or brand kit
exist. In 2015, the city embarked on a rebranding journey, and ultimately no consensus logo was
selected. Currently, the City of Muskegon uses variations of the old logo, individual department logos,
random colors and fonts, and the Watch Muskegon brand kit for city material.
Tonight, city staff, Kindred Marketing Agency, and community members presented the brand kit to
the Commission. Please review the "Rebranding the City of Muskegon Connect Muskegon page" for
more details on the project.
Goal/Focus Area/Action Item Addressed:
Key Focus Areas:
Goal/Action Item:
2027 GOAL 3: COMMUNITY CONNECTION - Digestible understandable and accessible internal and
community communications
Amount Requested: Budgeted Item:
N/A Yes No N/A x
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Fund(s) or Account(s): Budget Amendment Needed:
N/A Yes No N/A x
Recommended Motion:
To approve the brand kit as presented.
Approvals: Guest(s) Invited / Presenting:
Immediate Division ✔
Head No
Information ✔
Technology
Other Division Heads ✔
Communication ✔
Legal Review ✔
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Updated 6/24/24
Inclusive Rebranding Engagement Outline:
City staff outlined and presented an inclusive engagement plan to the City Commission at the 10/24/23 Commission
Meeting. Outlined in that plan was having community engagement at the beginning of the project to gather both
qualitative and quantitative data which would guide the design work. The gathered community engagement data has
been compiled and shared on Connect Muskegon. See the outline of engagement below:
In addition, City staff will be seeking one resident from each ward with a passion for branding to join the “Branding
Community Champion” group.
Inclusive Rebranding Process:
1. City Commission approved Kindred Marketing Agency Contract
2. Project Planning
a. Launch Connect Muskegon page and stakeholder interest form
3. Community Engagement (see details below)
4. Brand Story Creation
5. Design Work Begins
6. Brand Review (see details below)
7. Recommendation by staff to commission
8. Roll out of new brand
Detail of Community Engagement Plan in Chronological Order
1. Individual In-Person or Phone Interviews with Elected Officials, Manager, and Deputy Manager- Meeting with
each City Commissioner, Commissioner Elect and the City Managers. Lead by Kindred Marketing Agency.
a. Ken Johnson
b. Willie German
c. Rachel Gorman
d. Michael Ramsey
e. Rebecca St. Clair
f. Teresa Emory
g. Jay Preston Kilgo
h. Katrina Kochin
i. Destinee Keener
j. Jonathan Seyferth
k. LeighAnn Mikesell
2. City Staff Focus Groups- Two focus groups held at City Hall Conference Room 204 with city staff. Lead by
Kindred Marketing Agency for 1.5 hours each.
a. Senior Leadership- Jonathan Seyferth, LeighAnn Mikesell, Pete Wills, Dan Vanderheide, Tim Kozal, Ken
Grant, and Jake Eckholm meeting date was 11/27/23.
b. C2EM Committee- Communications, Community Engagement and Marketing (C2EM) Internal Staff
Committee has a representative from each division and department meeting date was 12/13/23.
3. 2 Large Community Focus Groups- Held downtown Muskegon (one at Chamber of Commerce 2/12/24 and one
at Central Fire 2/29/24). Capped to 50 people each. Lead by Kindred Marketing Agency. The online interest form
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Updated 6/24/24
asks for preferred scheduling time so we can attempt to accommodate as many residents as possible.
4. 1 Large Business Community Focus Group- Held downtown Muskegon (Chamber). Capped to 50 people. Can
add more group times if demand requires. 2/12/24.
5. 20+ Organization Focus Groups- The plan was to hold focus groups throughout the city with pre-existing
community groups such as MPS students JCI, Muskegon Run Club, Muskegon Young Black Professionals, church
groups, fitness clubs, Neighborhood Associations etc. These groups would be limited to 12 members at a time. If
more than 20 groups register to participate, we planned to accommodate them.
Update: This step had little to no interest. We contacted MPS and held two focus groups one with middle
schoolers and another with high schoolers. Outside of that, we had one group, the North Muskegon Knitting
Club, complete the interest form, but we did not pursue that group because they were not within the city. In the
absence of this step, we launched a “mini-interview” process where city staff went out into the community and
interviewed residents directly. In total, staff collected 46 mini-interviews.
6. Online and Print Survey- The data and general themes from all of the above engagements were analyzed and
simplified into a short survey. The intention of this survey was to have the residents agree or disagree with the
sample size data. This survey was published through Connect Muskegon, shared online through media channels,
had paid advertising, was made available in English and Spanish, and was mailed to every address in the city
inside the spring newsletter. At the end of the survey on 4/19/24 we had 1050 surveys completed through
online and mail-in responses. You can see the results here.
Estimated Community Engagement Hour Breakdown
Hours Engagement # of People
11 Hours Interviews Elected + Manager 11
3 Hours Staff Input 30
6 Hours Large Focus Groups 45
50 Hours MPS and Mini Interviews 70
NA Survey Responses 1050
70 Hours Totals 1,206
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Updated 6/24/24
Brand Review Steps
Please note that we cannot move to a next step without first completing the prior step.
Steps Reviewers
Written 1- Rough Brand Story Staff
2- Polished Written Brand Content Champs
Visual 3- Logo Selection / Revisions Champs Staff
4- Brand Visual & Logo Variations Staff
Both 4- Commission Review Written and Visual at LPC Commission
5- Approval Commission
Community Champions “Champs”
1. Ward 1- Chris Carter
2. Ward 2- Sara Sherwood
3. Ward 3- Jonathan Wilson
4. Ward 4- Daisy Colcleasure
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Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: July 9, 2024 Title: Sale of 1518 Jiroch
Submitted by: Samantha Pulos, Code Department: Planning
Coordinator
Brief Summary:
Staff is requesting approval of a purchase agreement for 1518 Jiroch for $155,000.
Detailed Summary & Background:
1518 Jiroch was constructed through the agreement with Dave Dusendang to construct infill
housing with ARPA funding. The offer is over the full listing price with no seller concessions.
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. Key Focus Area: 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 1518 Jiroch for $155,000 and authorize the Code
Coordinator, Samantha Pulos, to sign.
Approvals: Guest(s) Invited / Presenting:
Immediate Division x
Head No
Information
Technology
Other Division Heads x
Communication
Legal Review
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WEST MICHIGAN REGIONAL PURCHASE AGREEMENT
#
DATE: 06/10/2024 , (time) MLS # 65024029379
SELLING OFFICE: Pinnacle Realty BROKER LIC.#: 6505392630 REALTOR® PHONE: 9892939324
LISTING OFFICE: West Urban Realty REALTOR® PHONE: 616-717-1220
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: Katie C Dickinson Email: michiganhomesbykatie@gmail.com Lic.#: 6501443780
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:
Seller is exempt from the requirements of the Seller Disclosure Act.
4. Lead-Based Paint Addendum: Transactions involving homes built prior to 1978 require a written disclosure which is hereby attached
and will be an integral part of this Agreement.
5. Property Description: Buyer offers to buy the property located in the City Village Township of Muskegon ,
County of Muskegon , Michigan, commonly known as (insert mailing address: street/city/state/zip code)
1518 Jiroch St, Muskegon, MI 49442
with the following legal description and tax parcel ID numbers:
Lot 3 except the north 18.5 feet and the north 8 feet of lot 4, Block 279,1903 revised plat of the city of muskegon,Muskegon MI
PP# 612420527900301 .
The following paragraph applies only if the Premises include unplatted land:
Seller agrees to grant Buyer at closing the right to make (insert number) ALL division(s) under Section 108(2), (3), and
(4) of the Michigan Land Division Act. (If no number is inserted, the right to make divisions under the sections referenced above stays
with any remainder of the parent parcel retained by Seller. If a number is inserted, Seller retains all available divisions in excess of the
number stated; however, Seller and/or REALTOR® do not warrant that the number of divisions stated is actually available.) If this sale
will create a new division, Seller’s obligations under this Agreement are contingent on Seller’s receipt of municipal approval on or
before 07/12/2024 , of the proposed division to create the Premises.
6. Purchase Price: Buyer offers to buy the Property for the sum of $ $155,000
one hundred fifty-five thousand U.S. Dollars
7. Seller Concessions, if any: N/A
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 8 % 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 4 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 $ 0 representing repairs required as a
condition of financing. Buyer agrees does not agree to authorize Buyer’s Agent/Dual Agent to obtain information from
©Copyright, West Michigan REALTOR® Associations
Page 1 of 6 Rev. Date 1/2024 NO Buyer’s Initials SP Seller’s Initials
06/10/24
10:40 PM EDT
06/14/24
7:30 AM EDT
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West Michigan Regional Purchase Agreement Page 2 of 6
Buyer’s lender regarding Buyer’s financing, and consents to the disclosure of this information to Seller and/or Seller’s Agent.
Exceptions:
SELLER FINANCING (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:
N/A
but does not include:
1518 Jiroch St, Muskegon, MI 49442 06/10/2024
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©Copyright, West Michigan REALTOR® Associations
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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:
N/A
12. Assessments (choose one):
If the Property is subject to any assessments,
Seller shall pay the entire balance of any such assessments that are due and payable on or before the day of closing (regardless
of any installment arrangements), except for any fees that are required 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: N/A
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 ____ 0 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
1518 Jiroch St, Muskegon, MI 49442 06/10/2024
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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:
N/A
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:
None
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:
OPTIONAL
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
07/12/2024 . 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:
N/A
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.
1518 Jiroch St, Muskegon, MI 49442 06/10/2024
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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 $ 50 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:
24. Earnest Money Deposit: For valuable consideration, Buyer gives Seller until 9:00 PM (time) on
06/12/2024 (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 $ 1500
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:
ESCALATION CLAUSE- Buyers to pay $1,000 higher than the next highest net offer up to $165,000.00. Listing agent to provide proof of bona fide
offer that triggers escalation
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.
1518 Jiroch St, Muskegon, MI 49442 06/10/2024
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©Copyright, West Michigan REALTOR® Associations
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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.
Nicholas Olshansky
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Buyer 1 Address X 06/10/24 10:40 PM EDT
VNNK-G3DG-YYMD-NF3B Buyer
Buyer 1 Phone: (Res.) (Bus.) Nicholas Olshansky
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:
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.
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: West Urban Realty LLC Listing Broker License #
Listing Agent Name: Brent Cox Listing Agent License #
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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XYBQ-JZAE-TP4M-FVDQ
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):
He 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.
X (Buyer’s Signature, Date, Time):
X (Buyer’s Signature, Date, Time):
38. Seller’s Receipt: Seller acknowledges receipt of Buyer’s acceptance of counteroffer.
Sam Pulos
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FTPO-AE17-VBYH-E3LP
X (Seller’s Signature, Date, Time):
1518 Jiroch St, Muskegon, MI 49442 06/10/2024
Subject Property Address/Description Date Time
©Copyright, West Michigan REALTOR® Associations
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Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: July 9, 2024 Title: Purchase of 1694 Pine
Submitted by: Samantha Pulos, Code Department: Planning
Coordinator
Brief Summary:
Staff is requesting approval of a purchase agreement to buy 1694 Pine Street.
Detailed Summary & Background:
This lot will be added to the City's Infill Housing Program and city-wide Brownfield. It is proximal to
several other recent builds and future phase lots.
Goal/Focus Area/Action Item Addressed:
Key Focus Areas:
Infill housing opportunity. Diverse housing types.
Goal/Action Item:
2027 Goal 2: Economic Development Housing and Business
Amount Requested: Budgeted Item:
$3,500.00 Yes x No N/A
Fund(s) or Account(s): Budget Amendment Needed:
Public Improvement Fund Yes No x N/A
Recommended Motion:
Approve the purchase agreement for 1694 Pine, for $3,500, and authorize the Code Coordinator to
sign.
Approvals: Guest(s) Invited / Presenting:
Immediate Division x
Head No
Information
Technology
Other Division Heads x
Communication
Legal Review x
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Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: July 9, 2024 Title: Rezoning of 1903 Marquette Ave from RM-1
to FBC, NC (SECOND READING)
Submitted by: Mike Franzak, Planning Director Department: Planning
Brief Summary:
Request to rezone 1903 Marquette Avenue from RM-1, Low-Density Multiple Family Residential, to
FBC-NC, Form-Based Code, Neighborhood Core, by the County of Muskegon.
Detailed Summary & Background:
This rezoning would help us achieve a goal from the master plan, which is to "Create a community
node at the intersection of Marquette/Quarterline." The Planning Commission unanimously
recommended approval at their June 13 meeting.
Goal/Focus Area/Action Item Addressed:
Key Focus Areas:
Goal/Action Item:
-1
Amount Requested: Budgeted Item:
Fund(s) or Account(s): Budget Amendment Needed:
Recommended Motion:
To approve the request to rezone the property at 1903 Marquette Ave. from RM-1 to FBC, NC
Approvals: Guest(s) Invited / Presenting:
No
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PLANNING COMMISSION PACKET EXCERPT
June 13, 2024
Hearing, Case 2024-11: Request to rezone 1903 Marquette Avenue from RM-1, Low-Density Multiple
Family Residential, to FBC-NC, Form-Based Code, Neighborhood Core, by the County of Muskegon.
SUMMARY
1. The County of Muskegon purchased Baker College in 2022 and now operates several municipal
departments on site, with more relocating there over the next three years. Baker College, Central
Dispatch, and West Michigan Medical Consortium currently lease space on site. Other vacant
building space is being offered for lease. The County is also considering the sale of additional land
on site that it does not need for its operations.
2. The current zoning of RM-1, Low Density Multiple-Family Residential is very restrictive for the
types of classroom/office uses that have historically operated on this parcel. A rezoning to Form
Based Code, Neighborhood Core would allow these types of uses by right and would also ensure
that any building additions would be developed in a walkable, pedestrian friendly pattern. This
zoning designation would also allow for varying types of residential development.
3. Please see the zoning ordinance excerpts for RM-1 and FBC, NC districts.
4. Notice was sent to all properties within 300 feet of the focus area. At the time of this writing, staff
had not received any comments.
1903 Marquette Ave from the Marquette/Quarterline intersection.
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Zoning Map
Aerial Map
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STAFF RECOMMENDATION
Staff recommends approval of the rezoning. The master plan identifies the Marquette/Quarterline
intersection as a potential neighborhood center. New mixed-use options in this area could assist in the
redevelopment of this commercial corridor.
Master Plan Excerpt
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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 1903 Marquette Avenue
from RM-1, Low-Density Multiple Family Residential, to FBC-NC, Form-Based Code
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 from RM-1 to FBC, NC.
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
(Rezoning 1903 Marquette Ave from RM-1 to FBC, NC)
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 9th day of July, 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 36 of 177
CITY OF MUSKEGON
NOTICE OF ADOPTION
Please take notice that on July 9, 2024, the City Commission of the City of Muskegon adopted an ordinance
amending the zoning map to provide for the change of zoning for 1903 Marquette Ave from RM-1 to FBC, NC:
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
Page 37 of 177
Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: July 9, 2024 Title: Water Supply System Bonds Series 2024
Submitted by: Kenneth Grant, Finance Director Department: Finance
Brief Summary:
Ordinance authorizing the issuance of a Water Supply Junior Lien Revenue Bond Series 2024
Detailed Summary & Background:
The bonds are expected to be sold to the Michigan Finance Authority and payable in 20 annual
principal installments at an interest rate of 2.0%. Bond closing is scheduled for August 28th.
Estimated Principal Forgiveness has yet to be determined
Goal/Focus Area/Action Item Addressed:
Key Focus Areas:
Goal/Action Item:
2027 Goal 4: Financial Infrastructure
Amount Requested: Budgeted Item:
Yes No N/A
Fund(s) or Account(s): Budget Amendment Needed:
Yes No N/A
Recommended Motion:
To authorize the issuance of Water Sewer Supply System Bonds, Series 2024 for an amount not to
exceed $9,500,000.00
Approvals: Guest(s) Invited / Presenting:
Immediate Division
Head No
Information
Technology
Other Division Heads
Communication
Legal Review
Page 38 of 177
ORDINANCE NO. _____
CITY OF MUSKEGON
AN ORDINANCE TO PROVIDE FOR THE ACQUISITION, CONSTRUCTION,
INSTALLATION, FURNISHING AND EQUIPPING OF ADDITIONS AND
IMPROVEMENTS TO THE WATER SUPPLY SYSTEM OF THE CITY; TO
PROVIDE FOR THE ISSUANCE AND SALE OF JUNIOR LIEN REVENUE
BONDS TO PAY THE COST THEREOF; TO PROVIDE FOR THE
COLLECTION OF REVENUES FROM THE SYSTEM SUFFICIENT FOR THE
PURPOSE OF PAYING THE COSTS OF OPERATION AND MAINTENANCE
OF THE SYSTEM AND TO PAY THE PRINCIPAL OF AND INTEREST ON
THE BONDS AND CERTAIN OUTSTANDING BONDS OF THE SYSTEM; TO
PROVIDE FOR THE SEGREGATION AND DISTRIBUTION OF SYSTEM
REVENUES; TO PROVIDE FOR THE RIGHTS OF THE HOLDERS OF THE
BONDS IN ENFORCEMENT THEREOF; TO PRESCRIBE THE FORM OF THE
BONDS; AND TO PROVIDE FOR OTHER MATTERS RELATING TO THE
BONDS AND THE SYSTEM.
THE CITY OF MUSKEGON ORDAINS:
Section 1. Definitions. Whenever used in this Ordinance, except when otherwise indicated
by the context, the following terms shall have the following meanings:
(a) “Act 94” means Act 94, Public Acts of Michigan, 1933, as amended.
(b) “Adjusted Net Revenues” means for any operating year the excess of
revenues over expenses for the System determined in accordance with generally accepted
accounting principles, to which shall be added depreciation, amortization, interest expense
on Bonds and payments to the City in lieu of taxes, to which may be made the following
adjustments.
(i) Revenues may be augmented by the amount of any rate increases
adopted prior to the issuance of additional Bonds or to be placed into effect before
the time principal or interest on the additional Bonds becomes payable from
Revenues as applied to quantities of service furnished during the operating year or
portion thereof that the increased rates were not in effect.
(ii) Revenues may be augmented by amounts which may be derived
from rates and charges to be paid by new customers of the System.
(c) “Authority” means the Michigan Finance Authority or its successor.
(d) “Authorized Officers” means the Mayor, the City Manager, the City Clerk
and the Finance Director of the City.
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(e) “Bonds” or “Senior Lien Bonds” means any bonds or series of bonds so
designated and payable from Net Revenues, which are secured by a statutory first lien on
the Net Revenues established by this Ordinance and which are senior and superior in all
respects with respect to the Net Revenues to any Junior Lien Bonds secured by the statutory
second lien on the Net Revenues, together with any additional Bonds of equal standing
thereafter issued.
(f) “City” or “Issuer” means the City of Muskegon, County of Muskegon, State
of Michigan.
(g) “EGLE” means the means the Michigan Department of Environment, Great
Lakes, and Energy, or its successor.
(h) “Engineers” means Prein & Newhof, registered engineers of Grand Rapids,
Michigan.
(i) “Junior Lien Bonds” means the Series 2024 Bonds, the Outstanding Junior
Lien Bonds any additional bonds of equal standing with the Series 2024 Bonds and the
Outstanding Junior Lien Bonds which are secured by a statutory second lien on the Net
Revenues and are junior and subordinate to the Senior Lien Bonds.
(j) “Outstanding Junior Lien Bonds” means the Series 2004 Bond, Series 2019
Bond, Series 2020 Bond, Series 2022 Bonds and Series 2023 Bonds.
(k) “Outstanding Ordinances” means Ordinance Nos. 2117, 2416, 2436, 2468
and 2483 of the City.
(l) “Project” means the acquisition, construction, furnishing and equipping of
improvements to the Water Supply System of the City, including distribution system
improvements, replacement of water mains and lead service lines, pump station and water
filtration plant improvements, together with all related appurtenances and attachments.
(m) “Purchase Contract” means the Purchase Contract to be entered into
between the Authority and the City relating to the purchase by the Authority of the Series
2024 Bonds.
(n) “Revenues” and “Net Revenues” shall mean the revenues and net revenues
of the City derived from the operation of the System and shall be construed as defined in
Section 3 of Act 94, including with respect to “Revenues,” the earnings derived from the
investment of moneys in the various funds and accounts established by the Outstanding
Ordinances and this Ordinance.
(o) “Series 2004 Bond” means the Water Supply System Junior Lien Revenue
Bond (Limited Tax General Obligation), Series 2004, dated March 25, 2004, in the
outstanding principal amount of One Million Six Hundred Sixty-Five Thousand Dollars
($1,665,000).
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(p) “Series 2019 Bond” means the Water Supply System Junior Lien Revenue
Bond, Series 2019, dated August 28, 2019, in the outstanding principal amount of One
Million Three Hundred Ninety-Five Thousand Dollars ($1,395,000).
(q) “Series 2020 Bond” means the Water Supply System Junior Lien Revenue
Bond, Series 2020, dated September 30, 2020, in the outstanding principal amount of Three
Million Three Hundred Sixty-Five Thousand Dollars ($3,365,000).
(r) “Series 2022 Bonds” means the Series 2022A Bonds and the Series 2022B
Bonds.
(s) “Series 2022A Bonds” means the Water Supply System Junior Lien
Revenue Bond, Series 2022A, dated September 20, 2022, in the outstanding principal
amount of One Million One Hundred Thirty-Eight Thousand Dollars ($1,138,000).
(t) “Series 2022B Bonds” means the Water Supply System Junior Lien
Revenue Bond, Series 2022B, dated September 20, 2022, in the outstanding principal
amount of Two Hundred Forty Thousand Dollars ($240,000).
(u) “Series 2023 Bonds” means the Water Supply System Junior Lien Revenue
Bond, Series 2023, dated September 8, 2023, in the outstanding principal amount of Two
Million Eight Hundred Seventy Thousand Dollars ($2,870,000).
(v) “Series 2024 Bond” means the Water Supply System Junior Lien Revenue
Bond, Series 2024, in the principal amount of not to exceed Nine Million Five Hundred
Thousand Dollars ($9,500,000) authorized by this Ordinance.
(w) “Sufficient Government Obligations” means direct obligations of the
United States of America or obligations the principal and interest on which is fully
guaranteed by the United States of America, not redeemable at the option of the issuer, the
principal and interest payments upon which without reinvestment of the interest, come due
at such times and in such amounts as to be fully sufficient to pay the interest as it comes
due on the Bonds or Junior Lien Bonds and the principal and redemption premium, if any,
on the Bonds or Junior Lien Bonds as it comes due whether on the stated maturity date or
upon earlier redemption. Securities representing such obligations shall be placed in trust
with a bank or trust company, and if any of the Bonds or Junior Lien Bonds are to be called
for redemption prior to maturity, irrevocable instructions to call the Bonds for redemption
shall be given to the paying agent.
(x) “Supplemental Agreement” means the supplemental agreement among the
City, the Authority and the EGLE relating to a series of the Series 2024 Bonds.
(y) “System” means the Water Supply System of the City, including the Project
and all additions, extensions and improvements hereafter acquired.
Section 2. Necessity; Approval of Plans and Specifications. It is hereby determined to be
a necessary public purpose of the City to acquire and construct the Project in accordance with the
plans and specifications prepared by the Engineers, which plans and specifications are hereby
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approved. The Project qualifies for the Drinking Water State Revolving Fund financing program
being administered by the EGLE and the Authority, whereby bonds of the City are sold to the
Authority and bear interest at a fixed rate of not to exceed two percent (2.00%) per annum.
Section 3. Costs; Useful Life. The cost of the Project is estimated to be an amount not to
exceed Ten Million Dollars ($10,000,000), including the payment of incidental expenses as
specified in Section 4 of this Ordinance, which estimate of cost is hereby approved and confirmed.
The period of usefulness of the Project is estimated to be not less than twenty-five (25) years.
Section 4. Payment of Cost; Bonds Authorized. To pay part of the cost of acquiring the
Project, legal, engineering, financial and other expenses incident thereto and incident to the
issuance and sale of the Series 2024 Bonds, the City shall borrow the sum of not to exceed Nine
Million Five Hundred Thousand Dollars ($9,500,000), and issue the Series 2024 Bonds therefor
pursuant to the provisions of Act 94. The remaining cost of the Project, if any, shall be defrayed
from grant funds and City funds on hand and legally available for such use.
Except as amended by or expressly provided to the contrary in this Ordinance, all of the
provisions of the Outstanding Ordinances shall apply to the Series 2024 Bonds issued pursuant to
this Ordinance, the same as though each of the provisions were repeated in this Ordinance in detail;
the purpose of this Ordinance being to authorize the issuance of additional revenue bonds of junior
and subordinate standing and priority of lien to any Outstanding Senior Lien Bonds and of equal
standing and priority of lien as to the Net Revenues with the Outstanding Junior Lien Bonds to
finance the cost of acquiring additions, extensions and improvements to the System, additional
bonds of junior and subordinate standing and priority of lien as to any Outstanding Senior Lien
Bonds and of equal standing and priority of lien as to the Outstanding Junior Lien Bonds for such
purpose being authorized by the provisions of the Outstanding Ordinances, upon the conditions
therein stated, which conditions have been fully met.
Section 5. Issuance of Series 2024 Bonds; Details. The Series 2024 Bonds of the City, to
be designated WATER SUPPLY SYSTEM JUNIOR LIEN REVENUE BOND, SERIES 2024 are
authorized to be issued in the aggregate principal sum of not to exceed Nine Million Five Hundred
Thousand Dollars ($9,500,000), or such lesser amount as finally determined by order of the EGLE
for the purpose of paying part of the cost of the Project, including the costs incidental to the
issuance, sale and delivery of the Series 2024 Bonds. The Series 2024 Bonds shall be Junior Lien
Bonds payable out of the Net Revenues, as set forth more fully in Section 8 hereof, provided that
the Series 2024 Bonds shall be subordinate to the prior lien with respect to the Net Revenues in
favor of any Senior Lien Bonds hereafter issued.
The Series 2024 Bond shall be in the form of a single fully-registered, nonconvertible bond
of the denomination of the full principal amount thereof, dated as of the date of delivery, payable
in principal installments as finally determined by the order of the EGLE at the time of sale of the
Series 2024 Bonds and approved by the Authority and an Authorized Officer. Principal
installments of the Series 2024 Bonds shall be payable on October 1 of the years 2028 through
2047, inclusive, or such other payment dates as hereinafter provided. Interest on the Series 2024
Bonds shall be payable on April 1 and October 1 of each year, commencing April 1, 2025 or on
such other interest payment dates as hereinafter provided. Final determination of the principal
amount of and interest on the Series 2024 Bonds and the payment dates and amounts of principal
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installments of the Series 2024 Bonds shall be evidenced by execution of the Purchase Contract
and each of the Authorized Officers is authorized and directed to execute and deliver the Purchase
Contract when in final form and to make the determinations set forth above; provided, however,
that the first principal installment shall be due no earlier than April 1, 2025 and the final principal
installment shall be due no later than October 1, 2050 and that the total principal amount shall not
exceed $9,500,000.
The Series 2024 Bonds shall bear interest at a rate of not to exceed two percent (2.00%)
per annum on the par value thereof or such other rate as evidenced by execution of the Purchase
Contract, but in any event not to exceed the rate permitted by law, and any Authorized Officers as
shall be appropriate shall deliver the Series 2024 Bonds in accordance with the delivery
instructions of the Authority.
The principal amount of the Series 2024 Bonds is expected to be drawn down by the City
periodically, and interest on principal amount shall accrue from the date such principal amount is
drawn down by the City.
The Series 2024 Bonds shall not be convertible or exchangeable into more than one fully-
registered bond. Principal of and interest on the Series 2024 Bonds shall be payable as provided
in the Series 2024 Bonds form in this Ordinance.
The Series 2024 Bonds shall be subject to optional redemption by the City with the prior
written approval of the Authority and on such terms as may be required by the Authority.
The Treasurer shall record on the registration books payment by the City of each
installment of principal or interest or both when made and the cancelled checks or other records
evidencing such payments shall be returned to and retained by the Treasurer.
Upon payment by the City of all outstanding principal of and interest on the Series 2024
Bonds, the Authority shall deliver the Series 2024 Bonds to the City for cancellation.
Section 6. Execution of Series 2024 Bonds. The Series 2024 Bonds shall be signed by the
manual or facsimile signature of the Mayor and countersigned by the manual or facsimile signature
of the City Clerk and shall have the corporate seal of the City or facsimile thereof impressed
thereon. The Series 2024 Bonds bearing the manual or facsimile signatures of the Mayor and the
City Clerk sold to the Authority shall require no further authentication.
Section 7. Registration and Transfer. Any Bond or Junior Lien Bond may be transferred
upon the books required to be kept pursuant to this section by the person in whose name it is
registered, in person or by the registered owner’s duly authorized attorney, upon surrender of the
Bond or Junior Lien Bond for cancellation, accompanied by delivery of a duly executed written
instrument of transfer in a form approved by the transfer agent. Whenever any Bond or Junior
Lien Bond shall be surrendered for transfer, the City shall execute and the transfer agent shall
authenticate and deliver a new Bond or Junior Lien Bond, for like aggregate principal amount.
The transfer agent shall require payment by the bondholder requesting the transfer of any tax or
other governmental charge required to be paid with respect to the transfer. The City shall not be
required (i) to issue, register the transfer of or exchange any Bond or Junior Lien Bond during a
period beginning at the opening of business 15 days before the day of the giving of a notice of
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redemption of Bonds selected for redemption as described in the form of Series 2024 Bonds
contained in Section 16 of this Ordinance and ending at the close of business on the day of that
giving of notice, or (ii) to register the transfer of or exchange any Bond or Junior Lien Bond so
selected for redemption in whole or in part, except the unredeemed portion of Bonds or Junior
Lien Bonds being redeemed in part. The City shall give the transfer agent notice of call for
redemption at least 20 days prior to the date notice of redemption is to be given.
The transfer agent shall keep or cause to be kept at its principal office sufficient books for
the registration and transfer of the Bonds or Junior Lien Bond, which shall at all times be open to
inspection by the City; and upon presentation for such purpose the transfer agent shall under such
reasonable regulations as it may prescribe transfer or cause to be transferred on the books of the
Bonds or Junior Lien Bond as hereinbefore provided.
If any Bond or Junior Lien Bond shall become mutilated, the City, at the expense of the
holder of the Bond, shall execute, and the transfer agent shall authenticate and deliver, a new Bond
or Junior Lien Bond of like tenor in exchange and substitution for the mutilated Bond or Junior
Lien Bond, upon surrender to the transfer agent of the mutilated Bond or Junior Lien Bond. If any
Bond or Junior Lien Bond issued under this Ordinance shall be lost, destroyed or stolen, evidence
of the loss, destruction or theft may be submitted to the transfer agent and, if this evidence is
satisfactory to both and indemnity satisfactory to the transfer agent shall be given, and if all
requirements of any applicable law including Act 354, Public Acts of Michigan, 1972, as amended
(“Act 354”), being sections 129.131 to 129.135, inclusive, of the Michigan Compiled Laws have
been met, the City, at the expense of the owner, shall execute, and the transfer agent shall thereupon
authenticate and deliver, a new Bond or Junior Lien Bond of like tenor and bearing the statement
required by Act 354, or any applicable law hereafter enacted, in lieu of and in substitution for the
Bond or Junior Lien Bond so lost, destroyed or stolen. If any such Bond or Junior Lien Bond shall
have matured or shall be about to mature, instead of issuing a substitute Bond or Junior Lien Bond
the transfer agent may pay the same without surrender thereof.
Section 8. Payment of Series 2024 Bonds; Security; Priority of Lien. Principal of and
interest on the Series 2024 Bonds shall be payable solely from the Net Revenues, and to secure
such payment, there is hereby recognized the statutory lien upon the whole of the Net Revenues
which shall be a second lien, subject only to the statutory first lien established with respect to the
Senior Lien Bonds, to continue until payment in full of the principal of and interest on all Junior
Lien Bonds payable from the Net Revenues, or, until sufficient cash or Sufficient Government
Obligations have been deposited in trust for payment in full of all Junior Lien Bonds of a series
then outstanding, principal and interest on such Junior Lien Bonds to maturity, or, if called for
redemption, to the date fixed for redemption together with the amount of the redemption premium,
if any. The statutory lien on the Net Revenues created with respect to the Junior Lien Bonds
(including the Series 2024 Bonds) shall at all times be and remain subordinate and inferior to the
pledge of Net Revenues and the statutory first lien thereon authorized to be granted to secure any
Senior Lien Bonds hereafter issued.
Upon deposit of cash or Sufficient Government Obligations, as provided in the previous
sentences, the statutory lien shall be terminated with respect to that series of Bonds or Junior Lien
Bonds, the holders of that series shall have no further rights under this Ordinance except for
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payment from the deposited funds, and the Bonds or Junior Lien Bonds of that series shall no
longer be considered to be outstanding under the Outstanding Ordinances or this Ordinance.
Section 9. Bondholders’ Rights; Receiver. The holder or holders of the Bonds or Junior
Lien Bonds representing in the aggregate not less than twenty percent (20%) of the entire principal
amount thereof then outstanding, may, by suit, action, mandamus or other proceedings, protect
and enforce the statutory lien upon the Net Revenues of the System, and may, by suit, action,
mandamus or other proceedings, enforce and compel performance of all duties of the officers of
the City, including the fixing of sufficient rates, the collection of Revenues, the proper segregation
of the Revenues of the System and the proper application thereof. The statutory lien upon the Net
Revenues, however, shall not be construed as to compel the sale of the System or any part thereof.
If there is a default in the payment of the principal of or interest on the Bonds or the Junior
Lien Bonds, any court having jurisdiction in any proper action may appoint a receiver to administer
and operate the System on behalf of the City and under the direction of the court, and by and with
the approval of the court to perform all of the duties of the officers of the City more particularly
set forth herein and in Act 94.
The holder or holders of the Bonds and the Junior Lien Bonds shall have all other rights
and remedies given by Act 94 and law, for the payment and enforcement of the Bonds and the
Junior Lien Bonds and the security therefor.
Section 10. Management; Fiscal Year. The operation, repair and management of the
System and the acquisition and construction of the Project shall be under the supervision and
control of the City Commission. The City Commission, in accordance with the relevant provisions
of the City Charter, may employ such person or persons in such capacity or capacities as it deems
advisable to carry on the efficient management and operation of the System. The City Commission
may make such rules and regulations as it deems advisable and necessary to assure the efficient
management and operation of the System. The fiscal year of the System shall be the fiscal year of
the City.
Section 11. Rates and Charges. The rates and charges for service furnished by and the use
of the System and the methods of collection and enforcement of the collection of the rates shall be
those in effect on the date of adoption of this Ordinance.
Section 12. No Free Service or Use. No free service or use of the System, or service or
use of the System at less than cost, shall be furnished by the System to any person, firm or
corporation, public or private, or to any public agency or instrumentality, including the City.
Section 13. Fixing and Revising Rates; Rate Covenant. The rates now in effect are
estimated to be sufficient to provide for the payment of the expenses of administration and
operation and such expenses for maintenance of the System as are necessary to preserve the System
in good repair and working order, to provide for the payment of the principal of and interest on the
Bonds and the Junior Lien Bonds as the same become due and payable, and the maintenance of
the reserve therefor and to provide for all other obligations, expenditures and funds for the System
required by law and this Ordinance. In addition, it is agreed that the rates shall be set from time
to time so that there shall be produced each fiscal year Net Revenues in an amount not less than
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110% of the principal of and interest on all Bonds coming due in each fiscal year and not less than
100% of the principal of and interest on all Junior Lien Bonds coming due in each fiscal year. The
rates shall be fixed and revised from time to time as may be necessary to produce these amounts,
and it is hereby covenanted and agreed to fix and maintain rates for services furnished by the
System at all times sufficient to provide for the foregoing.
Section 14. Funds and Accounts; Flow of Funds. The funds and accounts established by
the Outstanding Ordinances are hereby continued, the flow of funds established by the Outstanding
Ordinances, is hereby continued, and the applicable sections of the Outstanding Ordinances,
relating to funds and accounts and flow of funds are incorporated herein by reference as if fully
set forth.
Section 15. Bond Proceeds. The proceeds of the sale of the Series 2024 Bonds shall be
deposited in a bank or banks, designated by the City, qualified to act as depository of the proceeds
of sale under the provisions of Act 94, in an account designated 2024 WATER SUPPLY SYSTEM
PROJECT CONSTRUCTION FUND (the “Construction Fund”). Moneys in the Construction
Fund shall be applied solely in payment of the cost of the Project, including any engineering, legal
and other expenses incident thereto and to the financing thereof.
Section 16. Bond Form. The Series 2024 Bonds shall be in substantially the following
form with such changes or completion as necessary or appropriate to give effect to the intent of
this Ordinance and further subject to such modifications which may be required by the Michigan
Attorney General and the Authority and approved by bond counsel:
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UNITED STATES OF AMERICA
STATE OF MICHIGAN
COUNTY OF MUSKEGON
CITY OF MUSKEGON
WATER SUPPLY SYSTEM JUNIOR LIEN REVENUE BOND, SERIES 2024
REGISTERED OWNER: Michigan Finance Authority
PRINCIPAL AMOUNT: __________________ Dollars ($__________)
DATE OF ORIGINAL ISSUE: August 28, 2024
The CITY OF MUSKEGON, County of Muskegon, State of Michigan (the “City”), for
value received, hereby promises to pay, but only out of the hereinafter described Net Revenues of
the City’s Water Supply System (hereinafter defined), to the Michigan Finance Authority (the
“Authority”), or registered assigns, the Principal Amount shown above, or such portion thereof as
shall have been advanced to the City pursuant to a Purchase Contract between the City and the
Authority and a Supplemental Agreement by and among the City, the Authority and the State of
Michigan acting through the Department of Environment, Great Lakes, and Energy, in lawful
money of the United States of America, unless prepaid or reduced prior thereto as hereinafter
provided.
During the time funds are being drawn down by the City under this Bond, the Authority
will periodically provide the City a statement showing the amount of principal that has been
advanced and the date of each advance, which statement shall constitute prima facie evidence of
the reported information; provided that no failure on the part of the Authority to provide such a
statement or to reflect a disbursement or the correct amount of a disbursement shall relieve the
City of its obligation to repay the outstanding principal amount actually advanced, all accrued
interest thereon, and any other amount payable with respect thereto in accordance with the terms
of this Bond.
The Principal Amount shall be payable on the dates and in the annual principal installment
amounts set forth on Schedule A attached hereto and made a part hereof, as such Schedule may be
adjusted if less than $________ is disbursed to the City or if a portion of the Principal Amount is
prepaid as provided below, with interest on the principal installments from the date each
installment is delivered to the holder hereof until paid at the rate of two percent (2.00%) per annum.
Interest is first payable April 1, 2025 and semiannually thereafter and principal is payable on the
first day of October commencing October 1, 2028 (as identified in the Purchase Contract) and
annually thereafter.
Principal installments of this bond are subject to prepayment by the City prior to maturity
only with the prior written consent of the Authority and on such terms as may be required by the
Authority.
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Notwithstanding any other provision of this bond, so long as the Authority is the owner of
this bond, (a) this bond is payable as to principal, premium, if any, and interest at U.S. Bank Trust
Company, National Association or at such other place as shall be designated in writing to the City
by the Authority (the "Authority's Depository"); (b) the City agrees that it will deposit with the
Authority's Depository payments of the principal of, premium, if any, and interest on this bond in
immediately available funds by 12:00 noon at least five business days prior to the date on which
any such payment is due whether by maturity, redemption or otherwise; in the event that the
Authority's Depository has not received the City's deposit by 12:00 noon on the scheduled day, the
City shall immediately pay to the Authority as invoiced by the Authority an amount to recover the
Authority's administrative costs and lost investment earnings attributable to that late payment; and
(c) written notice of any redemption of this bond shall be given by the City and received by the
Authority's Depository at least 40 days prior to the date on which such redemption is to be made.
Additional Interest
In the event of a default in the payment of principal or interest hereon when due, whether
at maturity, by redemption or otherwise, the amount of such default shall bear interest (the
“additional interest”) at a rate equal to the rate of interest which is two percent above the
Authority’s cost of providing funds (as determined by the Authority) to make payment on the
bonds of the Authority issued to provide funds to purchase this bond but in no event in excess of
the maximum rate of interest permitted by law. The additional interest shall continue to accrue
until the Authority has been fully reimbursed for all costs incurred by the Authority (as determined
by the Authority) as a consequence of the City’s default. Such additional interest shall be payable
on the interest payment date following demand of the Authority. In the event that (for reasons
other than the default in the payment of any municipal obligation purchased by the Authority) the
investment of amounts in the reserve account established by the Authority for the bonds of the
Authority issued to provide funds to purchase this bond fails to provide sufficient available funds
(together with any other funds which may be made available for such purpose) to pay the interest
on outstanding bonds of the Authority issued to fund such account, the City shall and hereby agrees
to pay on demand only the City’s pro rata share (as determined by the Authority) of such deficiency
as additional interest on this bond.
For prompt payment of principal and interest on this bond, the City has irrevocably pledged
the revenues of the Water Supply System of the City, including all appurtenances, extensions and
improvements thereto (the “System”), after provision has been made for reasonable and necessary
expenses of operation, maintenance and administration (the “Net Revenues”), and a statutory
second lien thereon is hereby recognized and created, subject to the senior lien of any additional
Bonds of the City hereafter issued by the City, as set forth in the Ordinance (hereinafter defined).
The bonds of this issue are of equal standing and priority of lien as to the Net Revenues with the
City’s Water Supply System Revenue Bonds (Limited Tax General Obligation), Series 2004, the
City’s Water Supply System Junior Lien Revenue Bonds, Series 2019, the City’s Water Supply
System Junior Lien Revenue Bonds, Series 2020, the City’s Water Supply System Junior Lien
Revenue Bonds, Series 2022A, the City’s Water Supply System Junior Lien Revenue Bonds,
Series 2022B and the City’s Water Supply System Junior Lien Revenue Bonds, Series 2023
(together, the “Outstanding Junior Lien Bonds”) and any additional bonds hereafter issued by the
City of equal standing and priority with the Outstanding Junior Lien Bonds. The City has reserved
the right to issue such additional Bonds which shall be superior and senior in all respects to the
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bonds of this issue as to the Net Revenues, or of equal standing and priority of lien as to the Net
Revenues.
Purchasers of the bonds of this issue, by their acceptance of the bonds of this issue or a
beneficial ownership interest therein, shall be deemed to have consented to the subordination of
their interest in and lien upon the Net Revenues upon the issuance of senior lien bonds subsequent
to the delivery of the bonds of this issue.
This bond is a single, fully-registered, non-convertible bond in the principal sum indicated
above issued pursuant to Ordinance No. ___, duly adopted by the City Commission of the City
and the prior ordinances authorizing the issuance of the Outstanding Junior Lien Bonds (together,
the “Ordinances”), and under and in full compliance with the Constitution and statutes of the State
of Michigan, including specifically Act 94, Public Acts of Michigan, 1933, as amended, for the
purpose of paying part of the cost of acquiring and constructing additions, extensions and
improvements to the System.
For a complete statement of the revenues from which and the conditions under which this
bond is payable, a statement of the conditions under which additional bonds of superior and equal
standing may hereafter be issued and the general covenants and provisions pursuant to which this
bond is issued, reference is made to the above-described Ordinances.
This bond is a self-liquidating bond, payable, both as to principal and interest, solely and
only from the Net Revenues of the System. The principal of and interest on this bond are secured
by the statutory lien hereinbefore mentioned.
The City has covenanted and agreed, and does hereby covenant and agree, to fix and
maintain at all times while any bonds payable from the Net Revenues of the System shall be
outstanding, such rates for service furnished by the System as shall be sufficient to provide for
payment of the interest upon and the principal of the bonds of this issue, the Outstanding Junior
Lien Bonds, any additional Bonds, and any additional Junior Lien Bonds, as and when the same
shall become due and payable, and to maintain a bond redemption fund (including a bond reserve
account, if any) therefor, to provide for the payment of expenses of administration and operation
and such expenses for maintenance of the System as are necessary to preserve the same in good
repair and working order, and to provide for such other expenditures and funds for the System as
are required by the Ordinances.
This bond is transferable only upon the books of the City by the registered owner in person
or the registered owner’s attorney duly authorized in writing, upon the surrender of this bond
together with a written instrument of transfer satisfactory to the transfer agent, duly executed by
the registered owner or the registered owner’s attorney duly authorized in writing, and thereupon
a new bond or bonds in the same aggregate principal amount and of the same maturity shall be
issued to the transferee in exchange therefor as provided in the Ordinances, and upon payment of
the charges, if any, therein prescribed.
It is hereby certified and recited that all acts, conditions and things required by law to be
done precedent to and in the issuance of this bond have been done and performed in regular and
due time and form as required by law.
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IN WITNESS WHEREOF, the City of Muskegon, County of Muskegon, State of
Michigan, by its City Commission has caused this bond to be executed with the manual or
facsimile signatures of its Mayor and its City Clerk and the corporate seal of the City to be
impressed or imprinted hereon, all as of the Date of Original Issue.
CITY OF MUSKEGON
By_________________________________
Mayor
(Seal)
Countersigned:
By____________________________
City Clerk
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EGLE Project Number: 7832-01
EGLE Approved Amt: $__________
SCHEDULE A
Based on the schedule provided below unless revised as provided in this paragraph, repayment of the
principal of the bond shall be made until the full amount advanced to the City is repaid. In the event the Order of
Approval issued by the Department of Environment, Great Lakes and Energy (the “Order”), approves a principal amount
of assistance less than the amount of the bond delivered to the Authority, the Authority shall only disburse principal
up to the amount stated in the Order. In the event (1) that the payment schedule approved by the City and described
below provides for payment of a total principal amount greater than the amount of assistance approved by the Order
or (2) that less than the principal amount of assistance approved by the Order is disbursed to the City by the Authority,
or (3) that any portion of the principal amount of assistance approved by the Order and disbursed to the City is forgiven
pursuant to the Order, the Authority shall prepare a new payment schedule which shall be effective upon receipt by
the City.
Maturity Date Principal Amount
October 1, 2028
October 1, 2029
October 1, 2030
October 1, 2031
October 1, 2032
October 1, 2033
October 1, 2034
October 1, 2035
October 1, 2036
October 1, 2037
October 1, 2038
October 1, 2039
October 1, 2040
October 1, 2041
October 1, 2042
October 1, 2043
October 1, 2044
October 1, 2045
October 1, 2046
October 1, 2047
Interest on the bond shall accrue on that portion of principal disbursed by the Authority to the City which has
not been forgiven pursuant to the Order from the date such portion is disbursed, until paid, at the rate of 2.00% per
annum, payable April 1, 2025, and semi-annually thereafter.
The City agrees that it will deposit with the Authority’s Depository, or such other place as shall be designated
in writing to the City by the Authority payments of the principal of, premium, if any, and interest on this bond in
immediately available funds by 12:00 noon at least five business days prior to the date on which any such payment is
due whether by maturity, redemption or otherwise. In the event that the Authority’s Depository has not received the
City’s deposit by 12:00 noon on the scheduled day, the City shall immediately pay to the Authority as invoiced by the
Authority an amount to recover the Authority’s administrative costs and lost investment earnings attributable to that
late payment.
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Section 17. Negotiated Sale; Application to EGLE and Authority; Execution of
Documents. The City determines that it is in the best interest of the City to negotiate the sale of
the Series 2024 Bonds to the Authority because the Drinking Water State Revolving Fund
financing programs provide significant interest savings to the City compared to competitive sale
in the municipal bond market and principal forgiveness. The Authorized Officers are hereby
authorized to make application to the Authority and to the EGLE for placement of the Series 2024
Bonds with the Authority. The actions taken by the Authorized Officers with respect to the Series
2024 Bonds prior to the adoption of this Ordinance are ratified and confirmed. The Authorized
Officers are authorized to execute and deliver the Purchase Contract, the Supplemental Agreement
and the Issuer’s Certificate. Any Authorized Officer is further authorized to execute and deliver
such contracts, documents and certificates as are necessary or advisable to qualify the Series 2024
Bonds for the Drinking Water State Revolving Fund. Prior to the delivery of the Series 2024
Bonds to the Authority, any Authorized Officer is hereby authorized to make such changes to the
form of the Series 2024 Bonds contained in Section 16 of this Ordinance as may be necessary to
conform to the requirements of Act 227, Public Acts of Michigan 1985, as amended (“Act 227”),
including, but not limited to changes in the principal maturity and interest payment dates and
references to additional security required by Act 227.
Section 18. Covenant Regarding Tax Exempt Status of the Bonds. The City shall, to the
extent permitted by law, take all actions within its control necessary to maintain the exemption of
the interest on the Series 2024 Bonds from general federal income taxation (as opposed to any
alternative minimum or other indirect taxation) under the Internal Revenue Code of 1986, as
amended (the “Code”), including, but not limited to, actions relating to any required rebate of
arbitrage earnings and the expenditure and investment of Series 2024 Bonds proceeds and moneys
deemed to be Bond proceeds.
Section 19. Approval of Bond Counsel. The representation of the City by Miller, Canfield,
Paddock and Stone, P.L.C. (“Miller Canfield”), as bond counsel is hereby approved,
notwithstanding the representation by Miller Canfield of the Authority in connection with its
financing programs and borrowings.
Section 20. Approval of Bond Details. The Authorized Officers are each hereby
authorized to adjust the final bond details set forth herein to the extent necessary or convenient to
complete the transaction authorized herein, and in pursuance of the foregoing is authorized to
exercise the authority and make the determinations authorized pursuant to Section 7a(1)(c) of Act
94, including but not limited to determinations regarding interest rates, prices, discounts,
maturities, principal amounts, denominations, dates of issuance, interest payment dates,
redemption rights, the place of delivery and payment, and other matters, provided that the principal
amount of Series 2024 Bonds issued shall not exceed the principal amount authorized in this
Ordinance, the interest rate per annum on the Series 2024 Bonds shall not exceed two percent
(2.00%) per annum, and the Series 2024 Bonds shall mature in not more than twenty (20) annual
installments.
Section 21. Savings Clause. All ordinances, resolutions or orders, or part thereof, in
conflict with the provisions of this Ordinance are, to the extent of such conflict, repealed.
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Section 22. Severability; Paragraph Headings; and Conflict. If any section, paragraph,
clause or provision of this Ordinance shall be held invalid, the invalidity of such section, paragraph,
clause or provision shall not affect any of the other provisions of this Ordinance. The paragraph
headings in this Ordinance are furnished for convenience of reference only and shall not be
considered to be part of this Ordinance.
Section 23. Publication and Recordation. This Ordinance shall be published in full in the
Muskegon Chronicle, a newspaper of general circulation in the City qualified under State law to
publish legal notices, promptly after its adoption, and shall be recorded in the Ordinance Book of
the City and such recording authenticated by the signatures of the Mayor and the City Clerk.
Section 24. Effective Date. This Ordinance shall be effective upon its adoption and
publication.
ADOPTED AND SIGNED THIS 9th day of July, 2024.
Signed____________________________________
Mayor
Signed____________________________________
City Clerk
I HEREBY CERTIFY that the foregoing constitutes a true and complete copy of an Ordinance
duly adopted by the City Commission of the City of Muskegon, County of Muskegon, Michigan,
at a regular meeting held on July 9, 2024, and that the meeting was conducted and public notice
of the meeting was given pursuant to and in full compliance with the Open Meetings Act, being
Act 267, Public Acts of Michigan, 1976, and that the minutes of the meeting were kept and will
be or have been made available as required by the Act.
I further certify that the following Members were present at the meeting:
__________________________________________________________________________ and
that the following Members were absent:
________________________________________________________.
I further certify that Member _________________ moved for adoption of the Ordinance,
and that the motion was supported by Member _________________.
I further certify that the following Members voted for adoption of the Ordinance:
__________________________________________________________________________ and
that the following Members voted against adoption of the Ordinance:
________________________________.
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I further certify that the Ordinance has been recorded in the Ordinance Book and that such
recording has been authenticated by the signatures of the Mayor and the City Clerk.
____________________________________
City Clerk
42035739.1/063684.00060
16
Page 54 of 177
MICHIGAN
Founded in 1852
ILLINOIS
by Sidney Davy Miller
NEW YORK
OHIO
WASHINGTON, D.C.
CALIFORNIA
PATRICK F. MCGOW Miller, Canfield, Paddock and Stone, P.L.C. CANADA
TEL (313) 496-7684 150 West Jefferson, Suite 2500 CHINA
FAX (313) 496-8450
Detroit, Michigan 48226 MEXICO
E-MAIL mcgow@millercanfield.com POLAND
TEL (313) 963-6420
UKRAINE
FAX (313) 496-7500
QATAR
www.millercanfield.com
June 29, 2024
Mr. Ken Grant
Finance Director
City of Muskegon
933 Terrace Street
Muskegon MI 49443-0536
Re: City of Muskegon
$9,500,000 Water Supply System Junior Lien Revenue Bonds, Series 2024
(DWSRF Project 7832-01)
Dear Ken:
I have enclosed an Ordinance authorizing the issuance of the above-captioned Water
Supply System Revenue Bonds to be considered for approval by the City Commission at its
meeting on July 9th. The Bonds are to be sold through the Michigan Finance Authority’s (“MFA”)
Quarter 4A Drinking Water State Revolving Fund Program, scheduled to close on August 28th.
The Bond Ordinance authorizes the issuance of the Bonds in an amount not to exceed
$9,500,000, based on the current project cost estimates. These numbers are still being tweaked
and do not yet include the reductions for the ARPA Grant and principal forgiveness. Because we
don’t have the breakdown between the ARPA Grant and principal forgiveness yet, we are
including the full project amount even though the loan amount, and amount to be repaid, will be
substantially less. Again, the Ordinance provides flexibility for the actual size of the Bond issue
to be reduced prior to closing based on the actual construction bids and final approved costs. In
addition, the City will receive principal forgiveness for these projects which will reduce the amount
that needs to be paid back to the MFA.
The Bond Ordinance authorizes the issuance of the Series 2024 Bonds, which are payable
from the Net Revenues of the City’s Water Supply System. The Bonds are expected to be sold to
the MFA and payable in 20 annual principal installments at an interest rate of 2.00%. The Bonds
are being issued as junior lien bonds which are of equal standing with the Series 2004 Bonds,
Series 2019 Bonds, Series 2020 Bonds, Series 2022A Bonds, Series 2022B Bonds and Series 2023
Bonds
The Ordinance also authorizes various City officials to take the necessary actions to
execute and deliver the Bonds and all related documents, approve the final size of the Bonds and
contains the necessary items required by the Revenue Bond Act, Act 94 of 1933.
Page 55 of 177
MILLER, CANFIELD, PADDOCK AND STONE, P.L.C.
Mr. Ken Grant -2- June 29, 2024
Pursuant to the Revenue Bond Act, the Ordinance may be adopted in one reading,
regardless of any contrary provision in the City’s ordinance adoption procedures. The Ordinance
is required to be published once in full in your local newspaper (Muskegon Chronicle) after its
adoption. There are no restrictions or requirements on the size of the publication, so it can be as
small as possible. Upon adoption by the City Commission, we would appreciate receiving three
(3) certified copies of the Ordinance and three (3) Affidavits of Publication of the Ordinance for
bond transcripts.
The Part III application with the construction bids and tentative contract approval is being
finalized for submission to EGLE by July 8th, with the tentative contract approvals to be approved
at the July 9th City Commission meeting. There will be a conference call with MFA, EGLE and
City officials on July 29/30 which we will participate in, to make final arrangements relating to
the Bond terms. At that time, the final bond sizes will be determined, and we will prepare the
necessary documents to be signed by various City officials after that date regarding the sale and
delivery of the Bonds. The EGLE Order of Approval is expected to be issued on August 7th. The
closing for the Bonds will be August 28th and the City can begin requesting draws on the Bonds
after that date.
If you or anyone copied have any questions, please do not hesitate to contact me.
Very truly yours,
MILLER, CANFIELD, PADDOCK AND STONE, P.L.C.
By:
Patrick F. McGow
Attachment
cc: Jonathan Seyferth
LeighAnn Mikesell
Dan Vanderheide
Barbara Marczak
Warren Creamer
Stacey Mills
42342473.1/063684.00060
Page 56 of 177
Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: July 9, 2024 Title: Phase 2 Contract with MGT
Submitted by: LeighAnn Mikesell, Deputy City Department: Manager's Office
Manager
Brief Summary:
Staff is seeking approval for the second phase of the contract with MGT to review city policies for
their impact on equity.
Detailed Summary & Background:
Staff advertised a request for proposals (RFP) in October 2023 with proposals due November 14. The
GARE Core Team recommended, and the commission approved the award of the contract to MGT.
The first phase included the review of internal policies and an all employee survey. The second
phase will include the review of external policies and interviews with internal focus groups to
determine strengths, weaknesses, DEI understanding, and readiness to embrace and infuse DEI
through all levels of the organization.
Costs for phase 2 will be split over 2 fiscal years.
$40,312 in fiscal year 2024/25
$39,584 in fiscal year 2025/26
Goal/Focus Area/Action Item Addressed:
Key Focus Areas:
Goal/Action Item:
2027 GOAL 3: COMMUNITY CONNECTION - Digestible understandable and accessible internal and
community communications
Amount Requested: Budgeted Item:
$40,312 in fiscal year 2024/25 Yes X No N/A
$39,584 in fiscal year 2025/26
Fund(s) or Account(s): Budget Amendment Needed:
101-172-801 Yes No X N/A
Recommended Motion:
To approve the phase 2 contract with MGT and authorize the Deputy City Manager to sign.
Approvals: Guest(s) Invited / Presenting:
Immediate Division
Head No
Page 57 of 177
Information
Technology
Other Division Heads
Communication
Legal Review X
Page 58 of 177
MASTER SERVICES AGREEMENT
PHASE 2 OF PROJECT
THIS MASTER SERVICES AGREEMENT ("Agreement") is entered into as of February 7,
2024 ("Effective Date") between MGT of America Consulting, LLC ("MGT"), with offices
located at 4320 West
Kennedy Boulevard, Tampa, FL 33609, and City of Muskegon ("Client"), located at 933
Terrace Street, Muskegon, MI 4944(), collectively referred to herein as the "Parties."
WHEIREAS, MGT offers global technological, educational, organizational and staffing
consulting solutions services to the public and private sectors;
WHEREAS, Client anticipates a need within its organization for MGT's services; and
WHEREAS, the Parties intend for this Agreement to serve as the governing, contractual basis
of MGT's provision of future project-level services to Client.
NOW, THEREFORE, for and in consideration of the mutual covenants and agreements
contained herein, and for other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the Parties agree as follows:
1. THIS AGREEMENT AND STATEMENTS OF WORK. The Parties enter into this
Agreement
to set forth the general terms and conditions that will govern MGT's provision of services to
Client. Such services will be subsequently agreed upon by the Parties in individual Statements
of Work ("SOW").
Each SOW will state all details required for the proper provision of project-level services,
including scope, pricing, period of performance, and other required information ("Services")
and each SOW shall be attached hereto and incorporated herein as Exhibit A, Statement(s) of
Work. Unless otherwise stated in an SOW, all Services shall be performed remotely. Each SOW
will require signature by both parties to be effective.
2. CONTRACT DOCUMENTS AND ORDER OF PRECEDENCE. The contract documents
consist of this Agreement and all exhibits, attachments, amendments, and SOWS subsequently
executed by the Parties and all exhibits, attachments, amendments, and other documents made
a part of the SOW ("Contract Documents"). Upon signature by the Parties, all SOWS executed
during the Term shall be considered incorporated into and made a part of this Agreement.
In the event of a conflict among the terms and conditions in this Agreement and any SOW,
unless that SOW expressly states the intention for the SOW to control with regard to the
conflicting term or condition, then this Agreement shall control. Any terms or conditions
contained in documents issued by Client other than the Contract Documents, including
purchase orders, shall be voidable at MGT's discretion.
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3. TERM. The term of this Agreement shall commence on the Effective Date and will continue
for a period of two (2) years or until terminated in accordance with this Agreement.
4. TERMINATION. This Agreement or any individual SOW may be terminated with cause by
either party: (a) if the other party materially breaches the terms of this Agreement and fails to
cure the breach within thirty (30) calendar days following written notice specifying the breach,
or (b) immediately upon written notice if the other party fails to comply with applicable law or
regulation.
5. INSURANCE. During the Term of this Agreement and any SOW, MGT will maintain the
minimum insurance coverages below. MGT shall provide Certificates of Insurance to Client
upon request and as required under SOWS.
a. Commercial General Liability $1,000,000 per occurrence
$2,000,000 annual aggregate
b. Business Automobile liability $1,000,000 combined single-limit, non-owned
and hired. (MGT does not own autos.)
c. Umbrella/Excess Liability $10,000,000 per occurrence & aggregate,
follows form
d. Worker’s Compensation Per Statute
e. Employer’s Liability $1,000,000 each accident
f. Professional Liability $6,000,000 aggregate
6. LIMITATION OF LIABILITY. MGT shall not be held liable for factors outside of
its reasonable control, including losses or damages as a result of Client's provision of
inaccurate data, or changing laws, regulations, or political conditions.
TO THE EXTENT PERMITTED BY LAW AND EXCEPT AS EXPRESSLY PROVIDED IN
THIS AGREEMENT, NEITHER PARTY SHALL BE LIABLE TO THE OTHER FOR ANY
INDIRECT, INCIDENTAL OR CONSEQUENTIAL DAMAGES, INCLUDING LOSS OF
PROFITS, REVENUE, DATA OR DATA USE, OR LOSS OR INTERRUPTION OF
BUSINESS, ARISING OUT OF ANY OF THE TERMS OR CONDITIONS OF THIS
AGREEMENT OR WITH RESPECT TO ITS PERFORMANCE HEREUNDER, WHETHER
ARISING OUT OF BREACH OF CONTRACT, BREACH OF WARRANTY, TORT
(INCLUDING NEGLIGENCE), PRODUCT LIABILITY, STRICT LIABILITY OR ANY
OTHER THEORY. THE FOREGOING LIMITATION OF LIABILITY AND EXCLUSION
OF DAMAGES APPLIES EVEN IF A PARTY HAD OR SHOULD HAVE HAD
KNOWLEDGE OF THE POSSIBILITY OF SUCH DAMAGES.
To the extent permitted by law, except for actions or claims resulting from MGT's gross
negligence or intentional or willful misconduct, MGT's total aggregate liability to Client shall
be limited to the amount of compensation paid by Client to MGT under this Agreement in the
twelve (12) months prior to the action giving rise to liability.
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7. GOVERNING LAW, JURISDICTION AND CONSENT TO SUIT. This Agreement shall
be governed by and construed and interpreted in accordance with the laws of the state of
Florida, irrespective of the choice of laws principles of the state of Florida, as to all matters
including validity, construction, effect, enforceability, performance, and remedies. Client
submits itself and its property in any legal action or proceeding relating to this Agreement to
the exclusive jurisdiction of' any state or federal court within Hillsborough County, Florida and
Client hereby accepts venue in each such court.
8. DISPUTE RESOLUTION PROCEDURE. In the event of a dispute, controversy or claim by
and between the Parties arising out of matters related to this Agreement, the Parties will first
attempt in good faith to resolve through negotiation any such dispute, controversy, or claim.
Either party may initiate negotiations by providing written notice to the other party setting forth
the subject of the dispute and the relief requested. The recipient of such notice will respond in
writing within five (5) business days with a statement of its position on, and recommended
solution to, the dispute. If the dispute is not resolved by this exchange of correspondence, then
senior management representatives of each party with full settlement authority will meet at a
mutually agreeable time and place within fifteen (15) business days of the date of the initial
notice to exchange relevant information and perspectives and to attempt to resolve the dispute.
If the dispute is not resolved by negotiation, either party may commence mediation by written
request to the other party. The Parties will cooperate in selecting a mediator and in scheduling
the mediation proceedings. The mediation shall take place in Tampa, Florida. The Parties will
participate in the mediation in good faith and will share equally in its costs. All offers,
promises, conduct and statements, whether oral or written, made in the course of the mediation
by either of the parties, their agents, employees, experts or attorneys, or by the mediator, are
confidential, privileged and inadmissible for any purpose, including impeachment, in any
litigation or other proceeding involving the parties; provided, however, that evidence that is
otherwise admissible or discoverable shall not be rendered inadmissible or non-discoverable
as a result of its use in the mediation.
Either party may seek equitable relief prior to the mediation to preserve the status quo pending
the completion of that process. Except for such an action to obtain equitable relief, neither party
shall commence a civil action with respect to the matters submitted to mediation until after the
completion of the initial mediation session, at which time suit may be brought in any court of
competent jurisdiction. The prevailing party shall be entitled to an award of all reasonable
costs, expenses, and attorneys' fees. In addition, should the dispute under this Agreement
involve the failure to pay fees, and the matter is not resolved through negotiation or mediation,
Client shall pay all costs of collection, including, but not limited to, MGT's legal fees and costs
should MGT prevail.
9. CONFIDENTIALITY. Each party shall maintain in confidence and protect from unauthorized
disclosure all information exchanged between the Parties that is reasonably understood under
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the circumstances to be confidential, whether disclosed orally, in writing or marked as
confidential ("Confidential Information").
The receiving party shall make all reasonable efforts to protect Confidential Information from
disclosure to unauthorized third parties. Confidential Information may be disclosed to third
parties with a need-to-know under the circumstances and who are bound by confidentiality
obligations no less restrictive than those herein. Neither party shall use such Confidential
Information except in performance of the Services. MGT may, however, disclose Client's name
and the general nature of MGT's work for client sales proposals.
The above obligations of confidentiality shall not apply to the extent that the receiving party
can show that the relevant information (a) was at the time of receipt already in the receiving
party's possession; (b) is, or becomes in the future, public knowledge through no fault or
omission of the receiving party; (c) was received from a third-party having the right to disclose
it; or (d) is required to be disclosed by law.
10. FORCE MAJEURE. Neither party shall be liable or considered at fault for any delay (except
for payment) resulting from circumstances beyond the party's reasonable control, including but
not limited to fire, flood, earthquake, elements of nature, epidemics, global pandemics,
quarantines, acts of God, acts of war, labor disputes, and supply chain disruptions ("Excusable
Delays"). The delayed party shall notify the other party in writing upon the discovery of any
significant Excusable Delay. During an Excusable Delay, the delayed party shall use reasonable
efforts to mitigate costs and damages and to resume performance under this Agreement.
The Parties recognize that MGT's ability to timely perform under a SOW is contingent upon
Client's timely provision of any agreed-upon data, personnel access, or other requirements. If
Client's failure to provide to such data, access or other requirements causes significant delays
to MGT's progression of Services, and MGT incurs losses or damages as a result, then the
Parties shall negotiate and execute a SOW amendment for an equitable adjustment to the
schedule and for additional costs. MGT shall provide all substantiating documentation of costs
reasonably requested by Client in consideration for any equitable adjustment. Excusable
Delays shall not give rise to an equitable adjustment.
11. FEES AND PAYMENT. Unless otherwise set forth in a SOW, all correct invoices
submitted by MGT to Client shall be due and payable upon receipt. If Client disputes an invoice
or portion thereof in good faith, then Client shall pay any undisputed portion and provide MGT
with written notice of the dispute, in reasonable detail, and the Parties shall promptly meet to
resolve such dispute. MGT may stop work after sixty (60) days of Client's non-payment of
undisputed invoiced amounts.
12. MODIFICATION. This Agreement and any SOW shall only be modified by written
amendment signed by the Parties. All signed amendments shall be deemed incorporated into
this Agreement by reference.
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13. NON-SOLICITATION. During the term of this Agreement and for a period of two (2) years
following termination or expiration, neither party shall knowingly, directly or indirectly, solicit
nor encourage the solicitation of any person who is, or was within a 12-month period prior to
such solicitation, an employee of' the other party or its affiliates that became known to the other
party as a result of this Agreement, except with the prior written consent of the other party. This
provision shall not restrict the right of either party to solicit by public advertisement.
14. ASSIGNMENT. Neither party may assign any rights nor delegate any duties or obligations
under this Agreement without the express written consent of the other party. Notwithstanding
the foregoing, MGT, or its permitted successive assignees or transferees, may assign or transfer
this Agreement or delegate any rights or obligations hereunder without consent: (i) to any entity
controlled by, or under common control with, MGT, or its permitted successive assignees or
transferees; or (ii) in connection with a merger, reorganization, transfer, sale of assets or change
of control or ownership of MGT, or its permitted successive assignees or transferees.
15. INDEPENDENT CONTRACTOR. It is expressly understood that at all times, while
rendering the Services, MGT is acting as an independent contractor and not as an officer, agent,
or employee of the Client. MGT shall not be required to keep specific work hours (except in
the case of specific hours required under employee leasing contracts), equipment, or a specific
office, and shall use independent means and methods for performing the Services. For all
purposes, including Medicare, Social Security taxes, the Federal Unemployment Act
("FUTA"), income tax withholding, worker's compensation, and unemployment insurance,
MGT, its personnel and contractors will be treated and deemed independent contractors and
not employees of Client.
16. NON-DISCRIMINATION/EQUAL EMPLOYMENT PRACTICES. Neither party shall
unlawfully discriminate or permit discrimination against any person or group of persons in any
matter prohibited by federal, state, or local laws. During the performance of this Agreement,
neither party or their employees, agents, or subcontractors, if any, shall discriminate against
any employee or applicant for employment because of age, marital status, religion, gender,
sexual orientation, gender identity, race, creed, color, national or ethnic origin, medical
conditions, physical disability, or any other classifications protected by local, state, or federal
laws or regulations. The parties further agree to be bound by applicable state and federal rules
governing equal employment opportunity and nondiscrimination.
17. NOTICES. All legal notices required by this Agreement are deemed to have been given when
notices are both (l) delivered by email to the email address below, and (2) following such email
delivery, a mailed copy of the notice is delivered to the mailing address below.
To MGT: To Client:
Name: MGT of America Consulting, LLC Name: City of Muskegon
ATTN: Legal Notice/Contracts ATTN: Leigh Ann Mikesell
Address: 4320 West Kennedy Blvd. Address: 933 Terrace Street
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Tampa, FL 33609 Muskegon, MI 49440
Email: contracts@mgtconsulting.com Email: leighann.mikesell@shorelinecity.com
If the email address and mailing address is incomplete for a party, then notice shall be mailed
to the address on the first page of this Agreement.
19. SEVERABILITY. If any provision of this Agreement shall be declared illegal or
invalid for any reason, said illegality or invalidity shall not affect the remaining provisions
hereof, but such illegal or invalid provision shall be fully severable, and this Agreement shall
be interpreted and enforced as if such illegal or invalid provision had never been included
herein.
20. COUNTERPARTS AND EXECUTION. This Agreement and any SOW may be
executed in counterparts, each of which when so executed shall be deemed an original and all
of which together shall constitute one and the same instrument. The counterparts may be
executed by electronic signature and delivered by scanned signature or other electronic means
by any of the parties to any other party and the receiving party may rely on the receipt of this
Agreement so executed and delivered as if the original had been received.
21. SURVIVAL. The sections Term, Termination, Insurance, Indemnification, Limitation
of Liability, Governing Law, Jurisdiction, Consent to Suit, Dispute Resolution Procedure,
Confidentiality, and Non-Solicitation, of this Agreement and the payment obligations described
in any SOW shall survive the termination or expiration of the Agreement or SOW.
22. ENTIRE AGREEMENT. This Agreement and all exhibits constitute the entire and
only agreement between the Parties. Each party acknowledges that in entering into this
Agreement it has not relied on any representation or undertaking, whether oral or in writing,
except for those expressly stated herein. Any purchase order provided by the Client will be
limited by, and subject to, the terms and conditions of this Agreement.
23. NON-EXCLUSIVITY. This Agreement is non-exclusive, and both Parties remain free
to enter into similar agreements with third parties. During the term of this Agreement, MGT
may perform Services for any other entities, so long as the performance of such services does
not interfere with MGT's performance of obligations under this Agreement and does not create
a conflict of interest.
24. THIRD PARTY BENEFICIARIES. Except as specifically set forth herein, nothing
in this Agreement is intended or shall be construed to confer upon any person or entity, other
than the parties hereto and their successors or assigns, any rights or remedies under or by reason
of this Agreement.
6
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IN WITNESS WHEREOF, the Parties hereto have executed this Master Services Agreement.
MGT OF AMERICA CONSULTING, LLC CITY OF MUSKEGON
______________________________ _____________________________
Name: _______________________ Name: _______________________
Title: ________________________ Title: _______________________
Date: ________________________ Date: _______________________
7
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EXHIBIT A
PROFESSIONAL CONSULTING STATEMENT OF WORK
PHASE 2
As of February 7, 2024 ("Effective Date"), MGT of America Consulting, LLC ("MGT") and
City of Muskegon ("Client") execute these Statements of Work ("SOW") pursuant to the
Master Services Agreement between the Parties dated February 7, 2024 ("Agreement").
SCOPE: MGT will provide services in accordance with MGT's Phase 2 Proposed Workplans
A and B listed below. All terms of the Phase 2 Proposal are incorporated herein by reference.
Phase 2 Proposed Work Plan A and B
SCOPE: MGT will provide services in accordance with MGT's Phase 2 Proposed Workplans
listed below. All terms of the Phase 2 Proposal are incorporated herein by reference.
Task 1.0: Client Engagement
1.1 Project Kickoff'
Similar to Phase 1, MGT will facilitate an initial meeting for key members of the project team
to meet each other, identify desired communication strategies, ensure mutual understanding of
the project goals and outcomes, identify potential barriers, and establish consensus regarding
activities, timelines, deliverables, and mutual expectations.
DELIVERABLES
• Finalized work plan and project schedule
• Description of deliverables
• Identification of key stakeholders, engagement expectations, responsibilities, and
project roles
• Logistics for project management meeting schedule, agenda, and reporting
protocols
• List of potential stakeholders who might advise the project and provide valuable
insight
[ Attach Phase 2 A Proposed Work Plan – SOW]
[ Attach Phase 2 B Proposed Work Plan – SOW]
8
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Phase 2 A Proposed Workplan
Task 1.0: CLIENT ENGAGEMENT
1.1 Client Engagement
As with phase 1, MGT prioritizes effective communication with our clients to maximize trust, clarity of
project progress and action steps, and ensure timely and successful execution of all components of the
project. Regular collaborative engagement in a manner that meets our clients’ availability and interest
allows mutual certainty that all aspects of our work align with the organization’s mission and ultimate
goals.
DELIVERABLES
Facilitation of regular (weekly, bi-weekly, or monthly) meeting agendas and minutes
Meeting documents including PowerPoint presentations and related materials
Documentation of decisions made, action steps, responsibility matrix, and deadlines
Task 2.0: ORGANIZATIONAL DEI ASSESSMENT
MGT will continue to assess the organization to determine strengths, weaknesses, DEI understanding, and
readiness to embrace and infuse DEI through all levels of the organization’s structure and operations. In
phase two, this will involve an analysis of qualitative data and other information to ensure a
comprehensive understanding of the state of the organization related to DEI.
2.1 Analysis of External Operations
MGT will conduct an external audit of the organization’s external policies and practices. We will determine
strengths and weaknesses of the City’s work and identify opportunities for change to elevate its success
in ensuring equity for all residents without exception to one’s race, ethnicity, gender, disability, age, sexual
orientation, gender identity, or religion. This will involve a gap analysis of documented policies and
processes to ensure a comprehensive understanding of the impact of the City’s work related to ensuring
equity. A sample of the items for analysis are as follows:
External Operations
Community engagement
External communications
Interactions between the City of Muskegon and its residents
Breadth and access to community support programming
DELIVERABLES
Gap analysis and recommendations to address shortfalls in external-facing policies
1
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Task 3.0: SUMMARY REPORT AND PRESENTATION
3.1 DEI Assessment Report
The assessment concludes with the delivery of a report and presentation that provides a comprehensive
synopsis of what was learned in the assessment, as well as our observations and recommendations from
internal and external stakeholders.
DELIVERABLES
Written delivery of final report: The Current State of DEI at City of Muskegon
Comprehensive list of recommendations for prioritization of actions to take to elevate
equity, access, and opportunity for City employees and stakeholders
3.2 Presentation of Findings and Recommendations
Our team will deliver an oral presentation of the project methodology, findings, recommendations, and
suggested action steps to City leaders to ensure widespread understanding and internalization of
strengths, gaps and improvement actions needed to meet the goals and performance expectations of the
organization.
DELIVERABLES
Oral presentation of final report
Presentation materials including PowerPoint and related documents
2
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Project Schedule
2024
Work Plan Tasks
July Aug. Sep. Oct. Nov.
TASK 1: CLIENT ENGAGEMENT
1.2 Client Engagement
TASK 2: ORGANIZATIONAL DEI ASSESSMENT
2.2 Analysis of External Operations
TASK 3: SUMMARY REPORT AND PRESENTATION
3.1 DEI Assessment Report
3.2 Presentation of Findings and Recommendations
Project Budget
Milestones and Tasks Cost Per Task
1.0 Client Engagement $8,769
2.0 Organizational Assessment $16,057
3.0 Summary Report and Presentation $15,486
Total Fees $40,312
MGT OF AMERICA CONSULTING, LLC CITY OF MUSKEGON
______________________________ _____________________________
Name: _______________________ Name: _______________________
Title: ________________________ Title: _______________________
Date: ________________________ Date: _______________________
3
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Phase 2 B Proposed Workplan
Task 1.0: CLIENT ENG AGEM ENT
1.1 Project Kickoff
Similar to phase 1, MGT will facilitate an initial meeting for key members of the project team to meet each
other, identify desired communication strategies, ensure mutual understanding of the project goals and
outcomes, identify potential barriers, and establish consensus regarding activities, timelines, deliverables,
and mutual expectations.
DELIVERABLES
Finalized work plan and project schedule
Description of deliverables
Identification of key stakeholders, engagement expectations, responsibilities, and project
roles
Logistics for project management meeting schedule, agenda, and reporting protocols
List of potential stakeholders who might advise the project and provide valuable insight
1.2 Client Engagement
As with phase 1, MGT prioritizes effective communication with our clients to maximize trust, clarity of
project progress and action steps, and ensure timely and successful execution of all components of the
project. Regular collaborative engagement in a manner that meets our clients’ availability and interest
allows mutual certainty that all aspects of our work align with the organization’s mission and ultimate
goals.
DELIVERABLES
Facilitation of regular (weekly, bi-weekly, or monthly) meeting agendas and minutes
Meeting documents including PowerPoint presentations and related materials
Documentation of decisions made, action steps, responsibility matrix, and deadlines
Task 2.0: DEI QUALITAT IVE ASSESSMENT
MGT will continue to assess the organization to determine strengths, weaknesses, DEI understanding, and
readiness to embrace and infuse DEI through all levels of the organization’s structure and operations. In
phase two, this will involve an analysis of qualitative data, through staff focus groups, to ensure a
comprehensive understanding of the state of the organization related to DEI.
2.1 Staff Outreach Plan
MGT will build on the phase 1 communication and outreach plan to ensure widespread engagement in
this important work.
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DELIVERABLE
Phase 2 of Employee Outreach Plan to maximize awareness and motivation for internal
stakeholders to engage in the feedback portion of the DEI assessment
2.2 Staff Engagement – Focus Groups
MGT will design and administer a set of protocols to garner insight into staff and leadership perspectives
regarding organizational culture, equity in the workplace, and the employee experience – building on the
phase 1 work. We will design and facilitate interviews and conduct focus groups of the staff, middle
managers, and leadership team. Upon completion, we will evaluate all insight collected to ensure
representative participation from all stakeholder groups and re-administer with targeted outreach if
necessary. Given the organization's size, MGT anticipates facilitating up to six (6) focus groups, virtually or
in-person.
DELIVERABLES
Focus Group Interview Guide and Protocol
Qualitative analysis of interviews and focus groups
Task 3.0: SUMMARY REPORT AND PRES ENTAT ION
3.1 DEI Assessment Report
The assessment concludes with a report and presentation that provides a comprehensive synopsis of what
was learned, as well as our observations and recommendations to internal and external stakeholders.
DELIVERABLES
Written delivery of final report: The Current State of DEI at City of Muskegon
Comprehensive list of recommendations for prioritization of actions to take to elevate
equity, access, and opportunity for City employees and stakeholders
3.2 Presentation of Findings and Recommendations
Our team will deliver an oral presentation of the project methodology, findings, recommendations, and
suggested action steps to City leaders to ensure widespread understanding and internalization of
strengths, gaps and improvement actions needed to meet the goals and performance expectations of the
organization.
DELIVERABLES
Oral presentation of final report
Presentation materials including PowerPoint and related documents
2
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Project Schedule
2025
Work Plan Tasks
July Aug. Sep. Oct.
TASK 1: CLIENT ENGAGEMENT
1.1 Project Kickoff
1.2 Client Engagement
TASK 2: DEI QUALITATIVE ASSESSMENT
2.3 Staff Outreach Plan
2.4 Staff Engagement
TASK 3: SUMMARY REPORT AND PRESENTATION
3.1 DEI Assessment Report
3.2 Presentation of Findings and Recommendations
Project Budget
Milestones and Tasks Cost Per Task
1.0 Client Engagement $9,197
2.0 DEI Qualitative Assessment $14,647
3.0 Summary Report and Presentation $14,740
Total Fees $38,584
3
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Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: July 9, 2024 Title: MML Workers' Compensation Fund Board
Ballot
Submitted by: Jonathan Seyferth, City Manager Department: Manager's Office
Brief Summary:
As a member of the Michigan Municipal League's (MML) Worker's Compensation Fund, the City of
Muskegon votes for the fund's board members. The recommended slate of three candidates can be
found on the page following the memo.
Detailed Summary & Background:
As a member of the Michigan Municipal League's (MML) Worker's Compensation Fund, the City of
Muskegon votes for the fund's board members. The Commission must approve a slate of up to three
candidates. The recommended slate of candidates can be found on the page following the memo
and include the following individuals:
First Term Recommendations:
• Victor Cardenas, City manager, City of Novi
• Daniel Coss, City Administrator, City of DeWitt
• Bridget Dean, Mayor, City of Berkley
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:
Approve the MML Workers' Compensation Fund Board of Trustees slate as presented and authorize
the City Manager to sign.
Approvals: Guest(s) Invited / Presenting:
Immediate Division
Head No
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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: July 9, 2024 Title: Lead Service Lines Replacements
Submitted by: Todd Myers, Deputy Director of Department: Public Works
Public Works
Brief Summary:
Authorize the award of the Lead Service Line Replacement, DWRF Project #: 7832-01 Contract to
Gustafson HDD LLC of Whitehall, MI, and authorize the mayor and clerk to sign the attached
resolution.
Detailed Summary & Background:
Our engineering consultant Prein & Newhof solicited bids for lead service line replacements.
The low bidder Gustafson HDD LLC of Whitehall, MI has recently completed similar work for the City of
Muskegon, also overseen by Prein & Newhof. Their bid of $5,489,560.00 and subsequent agreed
upon pre-award change order in the amount of $2,340,820.29 is below the engineer's estimate. Staff
recommends awarding to Gustafson HDD LLC on the basis of our and Prein & Newhof's experience
with them on similar projects.
Gustafson's bid was well below the engineer's estimate. Prein & Newhof worked with the state to
identify additional lead service lines that could be added to the contract if the bids came in
favorably. Therefore, we utilize more of the principal forgiveness offered to the city. So staff is
simultaneously requesting approval of a change order of $2,340,820.29 to Gustafson's bid to increase
the contract cost to $7,830,380.29 and allow an additional 400 services to be replaced in Oakview
and Sheldon Park neighborhoods.
This project is financed through the sale of bonds in partnership with the State of Michigan Clean
Water State Revolving Fund. The State program offers grants and principal forgiveness for portions of
the project. We anticipate that when bonds are sold later this summer, we will be offered grants and
forgiveness worth 50% of the project cost. For this project, that is estimated at $3,915,190.00 of aid.
The remainder of the project will be financed over 20 years with a 2.0 interest rate.
The portion of the project that will be financed will be added to the water debt fee. Staff estimates
that when fully in effect in FY28 the sewer debt fee associated with this project will be $0.70 per
month on a standard residential bill.
Goal/Focus Area/Action Item Addressed:
Key Focus Areas:
Item 2022-4.2 "Take advantage of external revenue sources, " and Key Focus Areas ""Decrease
infrastructure burden nonresidents" and Sustainability in financial practices and infrastructure."
Goal/Action Item:
2027 GOAL 4: FINANCIAL INFRASTRUCTURE - Maximized efficient use of existing infrastructure
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Amount Requested: Budgeted Item:
Amount Requested: $7,830,380.29 (Total) Yes X No N/A
$3,915,190.00 (Bonded)
Fund(s) or Account(s): Budget Amendment Needed:
Water (591) No No X N/A
Recommended Motion:
I move to approve award of the Lead Service Lin Replacements, DWRF Project No. 7832-01 to
Gustafson HDD contingent upon successful financial arrangements with the CWSRF program, and
authorize the Clerk to sign the included resolution.
Approvals: Guest(s) Invited / Presenting:
Immediate Division X
Head No
Information
Technology
Other Division Heads X
Communication
Legal Review
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NOTICE OF AWARD
Date of Issuance: July 9, 2024
Owner: City of Muskegon Owner’s Project No.:
Engineer: Prein&Newhof Engineer’s Project No.: 2230966
Project: Lead Service Line Replacements, DWRF Project No. 7832-01
Contract Name:
Bidder: Gustafson HDD
Bidder’s Address: 2299 Holton Whitehall Rd., Whitehall, MI 49461
You are notified that Owner has accepted your Bid dated June 11, 2024 for the above Contract and the
post bid Change Order 1 dated July 9, 2024, and that you are the Successful Bidder and are awarded a
Contract for:
Lead Service Line Replacements, DWRF Project No. 7832-01.
The Contract Price of the awarded Contract is $7,830,380.29. Contract Price is subject to adjustment
based on the provisions of the Contract, including but not limited to those governing changes, Unit Price
Work, and Work performed on a cost-plus-fee basis, as applicable.
3 unexecuted counterparts of the Agreement accompany this Notice of Award, and one copy of the
Contract Documents accompanies this Notice of Award, or has been transmitted or made available to
Bidder electronically.
☐ Drawings will be delivered separately from the other Contract Documents.
You must comply with the following conditions precedent within 15 days of the date of receipt of this
Notice of Award:
1. Deliver to Owner [3] counterparts of the Agreement, signed by Bidder (as Contractor).
2. Deliver with the signed Agreement(s) the Contract security (such as required performance and
payment bonds) and insurance documentation, as specified in the Instructions to Bidders and in
the General Conditions, Supplementary Conditions, Article 6, and Insurance Specifications.
3. Other conditions precedent (if any): none
Failure to comply with these conditions within the time specified will entitle Owner to consider you in
default, annul this Notice of Award, and declare your Bid security forfeited.
Within 10 days after you comply with the above conditions, Owner will return to you one fully signed
counterpart of the Agreement, together with any additional copies of the Contract Documents as
indicated in Paragraph 2.02 of the General Conditions.
Owner: City of Muskegon
By (signature):
Name (printed):
Title:
Copy: Prein&Newhof
EJCDC® C-510, Notice of Award.
Copyright© 2018 National Society of Professional Engineers, American Council of Engineering Companies,
and American Society of Civil Engineers. All rights reserved.
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S:\2023\2230966 City of Muskegon\CDS\award 2024-06-14 Gustafson.docx
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Bid Tabulation Summary
Bid Date: Bid Time (Local):
11-Jun-24 2:00 PM
Owner:
City of Muskegon
Project Title:
Lead Service Line Replacement
Project #:
2230966
Number Contractor Name Bid Amount
Gustafson HDD LLC
1st $5,489,560.00
2299 Holton Whitehall Rd., Whitehall, MI 49461
Five Star Energy Services LLC
2nd $7,558,240.00
1581 E. Racine Ave., Waukesha, WI 53186
Walton Contracting
3rd $8,456,775.00
526 W. 14th St #209, Traverse City, MI 49684
3355 Evergreen Dr. NE Grand Rapids, MI 49525 t. 616-364-8491 f. 616-364-6955 www.preinnewhof.com
page 1 of 2 S:\2023\2230966 City of Muskegon\CDS\bid tab 2024-06-11
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CHANGE ORDER NO.: 1 - Pre-Award Change Order
Owner: City of Muskegon Owner’s Project No.:
Engineer: Prein&Newhof Engineer’s Project No.: 2230966
Contractor: Gustafson HDD DWRF Project No.: 7832-01
Project: Lead Service Line Replacements
Contract Name:
Date Issued: 7/9/2024 Effective Date of Change Order: Date of Award
The Contract is modified as follows upon execution of this Change Order:
Description:
Owner and Contractor agree to extend bid unit pricing pre-award to complete approximately 400
services to be located in the Oakview and Sheldon Park neighborhood. No extension of contract
times.
Attachments:
See Attached Detail Sheet
Change in Contract Times
[State Contract Times as either a specific date or a
Change in Contract Price number of days]
Original Contract Price: Original Contract Times:
Substantial Completion: 9/3/2027
$ 5,489,560.00 Ready for final payment: 9/30/2027
[Increase] [Decrease] from previously approved Change [Increase] [Decrease] from previously approved
Orders No. 1 to No. [Number of previous Change Order]: Change Orders No.1 to No. [Number of previous
Change Order]:
Substantial Completion:
$ 0.00 Ready for final payment:
Contract Price prior to this Change Order: Contract Times prior to this Change Order:
Substantial Completion: 9/3/2027
$ 5,489,560.00 Ready for final payment: 9/30/2027
Increase this Change Order: [Increase] [Decrease] this Change Order:
Substantial Completion:
$ 2,340,820.29 Ready for final payment:
Contract Price incorporating this Change Order: Contract Times with all approved Change Orders:
Substantial Completion: 9/3/2027
$ 7,830,380.29 Ready for final payment: 9/30/2027
Recommended by Engineer (if required) Accepted by Contractor
By: By:
Digitally signed by Matthew Hulst
Date: 2024.06.27 09:00:14-04'00'
Title: Project Engineer Title: Jeff E. Gustafson, Owner
Date: Date: 6/27/2024
Authorized by Owner Approved by Funding Agency (if applicable)
By: By:
Title: Title:
Date: Date:
This document is a Modified version of EJCDC® C 941, Change Order.
Copyright© 2018 NSPE, ACEC and ASCE. All rights reserved.
Page 1 of 3
S:\2023\2230966 City of Muskegon\CDS\Change Order PreAward
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Change Order
For (project): Change No.
Lead Service Line Replacements 1 - Pre-Award Change Order
From (Contractor): Date:
Gustafson HDD 7/9/2024
ITEM VALUE CHANGE
Item Total Decrease in Contract Increase in Contract
No. Description of Change Quantity Change Unit Unit Price Value Price Price
1 Mobilization, Max 1 Lsum $212,801.84 $212,801.84 212,801.84
2 Traffic Control, Additional 1 Lsum $16,393.44 $16,393.44 16,393.44
3 Driveway, Remove and Replace 1200 Syd $30.00 $36,000.00 36,000.00
4 Sidewalk, Conc, 6 inch, Remove and Replace 200 Sft $15.00 $3,000.00 3,000.00
5 Road Patch, Complete, Local 400 Ea $700.00 $280,000.00 280,000.00
6 Restoration 400 Ea $275.00 $110,000.00 110,000.00
7 Water Service, Corporation Stop, 1 inch 400 Ea $675.00 $270,000.00 270,000.00
8 Water Service, Curb Stop and Box, 1 inch 400 Ea $775.00 $310,000.00 310,000.00
9 Water Service, 1 inch, Public Side 13200 Ft $35.00 $462,000.00 462,000.00
10 Water Service, 1 inch, Private Side 12000 Ft $25.00 $300,000.00 300,000.00
11 Water Service, Meter Pit 25 Ea $725.00 $18,125.00 18,125.00
12 Connect to Existing (Includes Valve) 400 Ea $625.00 $250,000.00 250,000.00
13 Meter Setting (Includes Valve) 250 Ea $150.00 $37,500.00 37,500.00
14 Field Verify 20 Ea $650.00 $13,000.00 13,000.00
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S:\2023\2230966 City of Muskegon\CDS\Change Order PreAward
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Change Order
15 Plumbing Allowance 10000 Dlr $1.00 $10,000.00 10,000.00
16 Irrigation Repair Allowance 10000 Dlr $1.00 $10,000.00 10,000.00
17 Water Filter 200 Ea $10.00 $2,000.00 2,000.00
Change Totals $2,340,820.29
Net Change In Contract Price $2,340,820.29
Page 3 of 2
S:\2023\2230966 City of Muskegon\CDS\Change Order PreAward
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Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: July 9, 2024 Title: NIMS Elevated Storage Tank Improvements
Project
Submitted by: Todd Myers, Deputy Director of Department: Public Works
Public Works
Brief Summary:
Authorize the award of the Nims Elevated Storage Tank Improvements project in the amount of
$336,499.00 to Fedewa Inc. of Hastings, MI
Detailed Summary & Background:
Our engineering consultant Prein & Newhof solicited bids for the Nims Elevated Storage Tank
Improvements project that were received On June 11, 2024. This project was included in our CWRF
and CWSRF Project.
The low bidder, Fedewa Inc. submitted a bid price of $336,499.00 which is below the engineer's
estimate. Our engineering consultant, Prein & Newhof, has worked with Fedewa Inc. on other similar
projects and found their work to be acceptable.
This project is financed through the sale of bonds in partnership with the State of Michigan Clean
Water State Revolving Fund (DWSRF) program. The State program offers grants and principal
forgiveness for portions of the project cost. We anticipate that when bonds are sold later this
summer, we will be offered grants and forgiveness worth 50% of the project cost. For this project, it is
estimated at $168,249.50 of aid. The remainder of the project will be financed over 20 years at an
interest rate of 2.0%.
The portion of the project that will be financed will be added to the water debt fee. Staff estimates
that when fully in effect in FY26, the sewer debt fee associated with the project will be $0.03 per
month on a standard residential bill.
Goal/Focus Area/Action Item Addressed:
Key Focus Areas:
Take advantage of external revenue sources, and "Decrease infrastructure burden on residents" and
"Sustainability in financial practices and infrastructure"
Goal/Action Item:
2027 GOAL 4: FINANCIAL INFRASTRUCTURE - Maximized efficient use of existing infrastructure
Amount Requested: Budgeted Item:
$336,488.00 (Total) Yes X No N/A
$168, 244.00 (Bonded)
Fund(s) or Account(s): Budget Amendment Needed:
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Water (591) No X No N/A
Recommended Motion:
To approve the award of the Nims Elevated Storage Tank Improvements project to Fedewa, Inc. of
Hastings, MI, contingent upon successful financial arrangements with the CWSRF program, and
authorize the Mayor and Clerk to sign the included resolution.
Approvals: Guest(s) Invited / Presenting:
Immediate Division X
Head No
Information
Technology
Other Division Heads
Communication
Legal Review
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A RESOLUTION TO TENTATIVELY
AWARD A CONSTRUCTION CONTRACT
FOR WATER SYSTEM IMPROVEMENTS
2024-XX
WHEREAS, the City of Muskegon wishes to construct improvements to its existing water treatment and
distribution system; and
WHEREAS, the water system improvements project formally adopted on May 23, 2023 will be funded
through the state of Michigan's Drinking Water State Revolving Loan Fund (DWSRF) program; and
WHEREAS, the City of Muskegon has sought and received construction bids for the Nims Elevated
Storage Tank Improvements project and has received a low bid in the amount of $336,499.00 from
Fedewa Inc. of Hastings, MI; and
WHEREAS, the City of Muskegon's project engineer, Prein&Newhof, has recommended awarding the
contract to the low bidder.
NOW THEREFORE BE IT RESOLVED, that the City of Muskegon tentatively awards the contract
for construction of the proposed water system project to Fedewa Inc. of Hastings, MI, contingent upon
successful financial arrangements with the DWSRF Programs.
Yeas:
Nays:
Abstain:
Absent:
I certify that the above Resolution was adopted by the City Commission of the City of Muskegon on July
9, 2024.
BY: Ann Meisch, City Clerk
_________________________________________________
Signature Date
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NOTICE OF AWARD
Date of Issuance: July 9, 2024
Owner: City of Muskegon Owner’s Project No.:
Engineer: Prein&Newhof Engineer’s Project No.: 2240217
Project: Nims Elevated Storage Tank Improvements
Contract Name:
Bidder: Fedewa Inc.
Bidder’s Address: 4315 E M79, Hastings, MI 49058
You are notified that Owner has accepted your Bid dated June 11, 2024 for the above Contract, and that
you are the Successful Bidder and are awarded a Contract for:
Nims Elevated Storage Tank Improvements.
This award is for the base bid amount only.
The Contract Price of the awarded Contract is $336,499.00. Contract Price is subject to adjustment
based on the provisions of the Contract, including but not limited to those governing changes, Unit Price
Work, and Work performed on a cost-plus-fee basis, as applicable.
3 unexecuted counterparts of the Agreement accompany this Notice of Award, and one copy of the
Contract Documents accompanies this Notice of Award, or has been transmitted or made available to
Bidder electronically.
☐ Drawings will be delivered separately from the other Contract Documents.
You must comply with the following conditions precedent within 15 days of the date of receipt of this
Notice of Award:
1. Deliver to Owner [3] counterparts of the Agreement, signed by Bidder (as Contractor).
2. Deliver with the signed Agreement(s) the Contract security (such as required performance and
payment bonds) and insurance documentation, as specified in the Instructions to Bidders and in
the General Conditions, Supplementary Conditions, Article 6, and Insurance Specifications.
3. Other conditions precedent (if any): None
Failure to comply with these conditions within the time specified will entitle Owner to consider you in
default, annul this Notice of Award, and declare your Bid security forfeited.
Within 10 days after you comply with the above conditions, Owner will return to you one fully signed
counterpart of the Agreement, together with any additional copies of the Contract Documents as
indicated in Paragraph 2.02 of the General Conditions.
Owner:
By (signature):
Name (printed):
Title:
Copy: Prein&Newhof
EJCDC® C-510, Notice of Award.
Copyright© 2018 National Society of Professional Engineers, American Council of Engineering Companies,
and American Society of Civil Engineers. All rights reserved.
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S:\2024\2240217 City of Muskegon\CDS\Award 2024-06-17 Fedewa.docx
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Bid Tabulation Summary
Bid Date: Bid Time (Local):
11-Jun-24 2:00 PM
Owner:
City of Muskegon
Project Title:
Nims Elevated Storage Tank Improvements
Project #:
2240217
Number Contractor Name Bid Amount
Fedewa Inc.
1st $336,499.00
4315 E. M79, Hastings, MI 49058
Viking Painting, LLC
2nd $336,900.00
10905 Harrison Street, La Vista, NE 68128
L.C. United Painting Co, Inc
3rd $347,000.00
3525 Barbara Drive, Sterling Heights, MI 48310
Seven Brothers Painting, Inc.
4th $405,800.00
50805 Rizzo Drive, Shelby Township, MI 48315
Suburban Contractors, LLC
5th $660,500.00
10624 Dumfries Rd., Manassas, VA 20112
3355 Evergreen Dr. NE Grand Rapids, MI 49525 t. 616-364-8491 f. 616-364-6955 www.preinnewhof.com
page 1 of 2 S:\2024\2240217 City of Muskegon\CDS\bid tab
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Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: July 9, 2024 Title: Concur with CRC Recommendation to
make Appointment to Planning Commission
Submitted by: Ann Meisch, City Clerk Department: City Clerk
Brief Summary:
To concur with CRC recommendation to appoint Lashae Simmons to the Planning Commission as
Citizen At-Large with the term ending January 31, 2027.
Detailed Summary & Background:
Goal/Focus Area/Action Item Addressed:
Key Focus Areas:
Goal/Action Item:
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 appoint Lashae Simmons to the Planning Commission as Citizen At-Large with the term ending
January 31, 2027.
Approvals: Guest(s) Invited / Presenting:
Immediate Division
Head No
Information
Technology
Other Division Heads
Communication
Legal Review
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Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: July 9, 2024 Title: Purchase of Tax Auction Properties
Submitted by: Samantha Pulos, Code Department: Planning
Coordinator
Brief Summary:
Purchase of vacant lots and two houses from the County Lank Bank.
Detailed Summary & Background:
Prior to the August 15th , 2024 Tax Auction, the City has the opportunity to express interest in vacant
land and houses, to the County Land Bank. There are 2 addresses (1183 Pine and 1285 Langeland)
with homes on them that will be developed by the CNS Department with HOME funds and sold to
buyers at or below the 80% AMI. There are 10 vacant lots (1693 Elwood, 669 Jackson, 980 Williams, 428
McLaughlin, 561 Catherine, 645 Hill, 496 Octavius, 1643 Terrace, 999 Washington, 275 Myrtle) that will
be used to help further infill housing goals. All properties purchased will be for public purposes.
Goal/Focus Area/Action Item Addressed:
Key Focus Areas:
Diverse housing types
Goal/Action Item:
2027 Goal 2: Economic Development Housing and Business
Amount Requested: Budgeted Item:
$29,221.85 Yes x No N/A
Fund(s) or Account(s): Budget Amendment Needed:
Land Acquisition. Yes No x N/A
Recommended Motion:
Authorize the Code Coordinator to proceed with the purchase of the addresses in the attached
letter of intent from the Muskegon County Land Bank Tax Auction, 8/15/24.
Approvals: Guest(s) Invited / Presenting:
Immediate Division x
Head No
Information
Technology
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Other Division Heads x
Communication
Legal Review x
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Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: July 9, 2024 Title: Establishment of a Commercial
Redevelopment District - 280 W. Muskegon Ave.
Submitted by: Jocelyn Hines, Development Department: Economic Development
Analyst
Brief Summary:
Pursuant to Public Act 255 of 1978, as amended, West Haven 280 LLC has requested the
establishment of a Commercial Redevelopment District. The creation of the district will allow the
building owner to apply for a Commercial Facilities Exemption Certificate, which will freeze the
taxable value of the building and exempt the new real property investment from local taxes.
Detailed Summary & Background:
West Haven 280 LLC is requesting the establishment of a Commercial Redevelopment
District. This district must be approved in order to apply for a Commercial Facilities Exemption
Certificate.
West Haven 280 LLC are the owners and operators of 280 W. Muskegon Ave. This facility will
house many commercial businesses, such as Broadway Bootcamp and Little Miss Green
Thumb.
Goal/Focus Area/Action Item Addressed:
Key Focus Areas:
Progress toward completion of ongoing economic development projects
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:
I move to close the public hearing and approve the attached resolution establishing a Commercial
Redevelopment District for 280 W. Muskegon Ave.
Approvals: Guest(s) Invited / Presenting:
Immediate Division X
Yes
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Head
Information
Technology
Other Division Heads X
Communication
Legal Review
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Resolution No. ______________
RESOLUTION APPROVING THE ESTABLISHMENT OF A COMMERCIAL
REDEVELOPMENT DISTRICT
280 W Muskegon Ave
WHEREAS, pursuant to PA 255 of 1978, the City of Muskegon has the authority to
establish “Commercial Redevelopment Districts” within the City of Muskegon at request
of a commercial business enterprise or on its own initiative; and
WHEREAS, West Haven 280 LLC has filed a written request with the clerk of the City
of Muskegon requesting the establishment of the Commercial Redevelopment District for
an area in the vicinity of 280 W. Muskegon Ave located in the City of Muskegon
hereinafter described; and
WHEREAS, the City Commission of the City of Muskegon determined that the district
meets the requirements set forth in section 5 of PA 255 of 1978; and
WHEREAS, written notice has been given by certified mail to all owners of real property
located within the proposed district as required by section 5(3) of PA 255 of 1978; and
WHEREAS, on July 9, 2024 a public hearing was held and all residents and taxpayers of
the City of Muskegon were afforded an opportunity to be heard thereon; and
WHEREAS, the City of Muskegon deems it to be in the public interest of the City of
Muskegon to establish the Commercial Redevelopment District as proposed;
NOW, THEREFORE, BE IT RESOLVED by the City Commission of the City of
Muskegon that the following described parcel(s) of land situated in the City of
Muskegon, County of Muskegon, and State of Michigan, to wit:
REVISED PLAT OF 1903 LOT 7 & W 26 FT LOT 8 BLK 334
Adopted this 9th Day of July 2024
AYES:
NAYS:
ABSENT:
BY: _______________________
Ken Johnson, Mayor
ATTEST: _______________________
Ann Meisch, Clerk
6.17.2024
Page 145 of 177
CERTIFICATION
I hereby certify that the foregoing constitutes a true and complete copy of a resolution
adopted by the Muskegon City Commission of the City of Muskegon, County of
Muskegon, Michigan at a regular meeting held on July 9, 2024.
_______________________________
Ann Meisch, Clerk
6.17.2024
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Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: July 9, 2024 Title: Issuance of a Commercial Facilities
Exemption Certificate - West Haven 280 LLC
Submitted by: Jocelyn Hines, Development Department: Economic Development
Analyst
Brief Summary:
Pursuant to Public Act 255 of 1978, as amended, West Haven 280 LLC has requested the issuance of
a Commercial Facilities Exemption Certificate. The certificate will freeze the taxable value of the
building and exempt new real property investment from local taxes. The company will be investing
over $1,050,000 in the building and will create 22 new jobs, which qualifies them for an abatement of
4 years.
Detailed Summary & Background:
West Haven 280 LLC will rehab the 11,500 sq. ft. facility starting in July 2024. The total real property
investment will be $1,050,000 and will create 22 new jobs.
West Haven 280 LLC recently purchased 280 W. Muskegon Ave from Central United Methodist
Church. This will change this building to commercial use, which will create taxable value. This building
will house several family businesses, including Little Miss Green Thumb, Broadway Bootcamp, and
Heal from Within. It will also house a performance venue, coffee shop, immersive play area, and
additional lease space.
Staff Comments:
The Commercial Redevelopment District is scheduled for public hearing and approval for July 9th by
the City Commission. The resolution is included in the agenda packet.
The Internal Tax Committee reviewed the applicant's project on June 26, 2024, and based on their
findings and calculations, the committee suggests approval of the attached resolution for a term of 4
years for real property. The company has turned in all necessary documents.
Goal/Focus Area/Action Item Addressed:
Key Focus Areas:
Progress toward completion of ongoing economic development projects
Goal/Action Item:
2027 Goal 2: Economic Development Housing and Business
Amount Requested: Budgeted Item:
Yes No N/A X
Fund(s) or Account(s): Budget Amendment Needed:
Page 147 of 177
Yes No N/A X
Recommended Motion:
I move to close the public hearing and approve the attached resolution granting a Commercial
Facilities Exemption Certificate for a term of 4 years for real property to West Haven 280 LLC and to
authorize the Mayor and Clerk to sign.
Approvals: Guest(s) Invited / Presenting:
Immediate Division X
Head Yes
Information
Technology
Other Division Heads X
Communication
Legal Review
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6/13/24, 2:03 PM about:blank
Muskegon County Property Report - 280 W Muskegon Ave.
Area of Interest (AOI) Information
Area : 12,149.64 ft²
Jun 13 2024 14:01:42 Eastern Daylight Time
about:blank 1/2
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6/13/24, 2:03 PM about:blank
Summary
Name Count Area(ft²) Length(ft)
Parcels 1 12,149.64 N/A
Parcels
Property Property Property Property
Municipality Acreage per Acreage per
# PIN Address Address Address Address
Code GIS Assessor
Number Direction Combined City
280 W
61-24-205-
1 24 0.28 0.28 280 W MUSKEGON MUSKEGON
334-0007-00
AVE
Property Property Owner Owner
Owner Owner Owner Care Owner
# Address Address Zip Address Address
Name 1 Name 2 Of Address
State Code City State
CENTRAL
UNITED 1011 2ND
1 MI 49440 No Data No Data MUSKEGON MI
METHODIS ST
T CHURCH
Owner State PRE Property School
Assessed Taxable Property
# Address Zip Equalized Homestead Class District
Value Value Class Code
Code Value Pct Description Code
Commercial
1 49440 0.00 0.00 0.00 0 201 61010
- Improved
Zoning per Assessor
# School District Name Tax Description Area(ft²)
Primary
CITY OF MUSKEGON
MUSKEGON CITY REVISED PLAT OF 1903
1 FBC-MS 12,149.64
SCHOOL DIST LOT 7 & W 26 FT LOT 8
BLK 334
©2020 Muskegon County GIS Data reported herein is believed to be accurate and up to date, however Muskegon County and Muskegon County GIS make no warranty
to the accuracy of the data. It is advised that before any decisions are made from this data, that the local assessor or building officials are contacted.
about:blank 2/2
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Resolution No.__________
MUSKEGON CITY COMMISSION
RESOLUTION APPROVING APPLICATION FOR ISSUANCE OF A COMMERICAL
FACILITIES EXEMPTION CERTIFICATE
West Haven 280 LLC
WHEREAS, the City of Muskegon legally established the Commercial Redevelopment
District 280-2024 on July 9, 2024, after a public hearing held on July 9, 2024; and
WHEREAS, the state equalized value of the property proposed to be exempt plus the
aggregate state equalized value of property previously exempt and currently in force
under Public Act 255 of 1978 and under Public Act 198 of 1974 (IFT's) does not exceed
5% of the total state equalized value of the City of Muskegon; and
WHEREAS, the application was approved at a public hearing as provided by section 6(2)
of Public Act 255 of 1978 on July 9, 2024; and
WHEREAS, the West Haven 280 LLC is not delinquent in any taxes related to the
facility; and
WHEREAS, the application is for commercial property as defined in section 3(3) of
Public Act 255 of 1978; and
WHEREAS, the applicant West Haven 280 LLC has provided answers to all required
questions under Section 6(1) of PA 255 of 1978 to the City of Muskegon; and
WHEREAS, the City of Muskegon requires that the construction, restoration or
replacement of the facility shall be completed by January 31, 2025; and
WHEREAS, the Commercial Facilities Exemption Certificate is granted for a period of
four (4) years and no extension will be allowed; and
WHEREAS, the commencement of the construction, restoration or replacement of the
facility did not occur more than 45 days prior to the filing of the application for
exemption; and
WHEREAS, the commencement of the construction, restoration or replacement of the
facility did not occur prior to the establishment of the Commercial Redevelopment
District; and
WHEREAS, the application relates to a construction, restoration or replacement program
which when completed constitutes a new, replacement or restored facility within the
meaning of Public Act 255 of 1978 and that is situated within a Commercial
Redevelopment District established under Public Act 255 of 1978; and
6.17.2024
Page 162 of 177
WHEREAS, completion of the facility is calculated to, and will at the time of issuance of
the certificate, have the reasonable likelihood to, increase commercial activity, create
employment and retain employment in which the facility is situated; and
WHEREAS, the restoration includes improvements aggregating 10% or more of the true
cash value of the property at commencement of the restoration as provided by section
4(6) of Public Act 255 of 1978.
NOW, THEREFORE, BE IT RESOLVED by the City Commission of the City of
Muskegon
Be and hereby is granted a Commercial Facilities Exemption for the real property,
excluding land, located in Commercial Redevelopment District 280-2024 at 280 W.
Muskegon Ave for a period of four (4) years, beginning December 31, 2024, and ending
December 30, 2028 pursuant to the provisions of PA 255 of 1978, as amended.
Adopted this 9th Day of July 2024.
AYES:
NAYS:
Absent:
BY: __________________________________
Ken Johnson, Mayor
ATTEST: _________________________________
Ann Meisch, Clerk
CERTIFICATION
I hereby certify that the foregoing constitutes a true and complete copy of a resolution
adopted by the Muskegon City Commission of the City of Muskegon, County of
Muskegon, Michigan at a regular meeting held on July 9, 2024.
_______________________________
Ann Meisch, Clerk
6.17.2024
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Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: July 9, 2024 Title: Discuss Pending litigation and attorney
client privileged information
Submitted by: Department: Finance
Brief Summary:
Contingent Mediator Proposal
Detailed Summary & Background:
Goal/Focus Area/Action Item Addressed:
Key Focus Areas:
Goal/Action Item:
2027 Goal 4: Financial Infrastructure
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 go into closed session to discuss material exempt from disclosure under the attorney-client
privilege, MCL 15.243(1)(g), pursuant to MCL Section 8(h) of the Open Meetings Act and Section 8(e)
of the Open Meetings Act to discuss trial or settlement strategy with legal counsel in connection with
the Joe Hathorn v. City of Muskegon lawsuit pending in Muskegon County Circuit Court because
discussion on the open record will have a detrimental financial effect on the litigating or settlement
position of the City of Muskegon and its employees and officials.
Approvals: Guest(s) Invited / Presenting:
Immediate Division
Head Yes
Information
Technology
Other Division Heads
Communication
Legal Review
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ATTORNEYS AND COUNSELORS AT LAW
2851 CHARLEVOIX DRIVE, S.E., SUITE 203 ▪ GRAND RAPIDS, MICHIGAN 49546 ▪ PHONE: (616) 975-7470 ▪ FACSIMILE: (616) 975-7471
Kristen L. Rewa
krewa@cmda-law.com
July 1, 2024
Via Email
Ken.Grant@shorelinecity.com
Mr. Ken Grant
Director of Finance and
Administrative Services
933 Terrace Street
P.O. Box 356
Muskegon, MI 49443
RE: Request for Closed Session for July 9, 2024 Meeting
Dear Mr. Grant:
I am requesting the opportunity to go into closed session with the City Commission on
July 9, 2024 under Section 8(h) and Section 8(e) of the Open Meetings Act to review a legal
opinion and discuss trial or settlement strategy with legal counsel in connection with the Joe
Hathorn v. City of Muskegon lawsuit pending in Muskegon County Circuit Court because
discussion on the open record will have a detrimental financial effect on the litigating or
settlement position of the City of Muskegon. Proposed motion language is attached to this
letter.
Please let me know if you have any questions. I look forward to discussing this matter
with you in more detail.
Very truly yours,
CUMMINGS, McCLOREY, DAVIS & ACHO, P.L.C.
Kristen L. Rewa
KLR/car
Enclosure
{02083811-1 }
Page 176 of 177
July 1, 2024
Page 2
Proposed Motion Language to go into Closed Session:
Motion by _________, seconded by _________, to go into closed session to discuss material
exempt from disclosure under the attorney-client privilege, MCL 15.243(1)(g), pursuant to MCL
Section 8(h) of the Open Meetings Act and Section 8(e) of the Open Meetings Act to discuss
trial or settlement strategy with legal counsel in connection with the Joe Hathorn v. City of
Muskegon lawsuit pending in Muskegon County Circuit Court because discussion on the open
record will have a detrimental financial effect on the litigating or settlement position of the City
of Muskegon and its employees and officials.
[Note: vote must be approved by 2/3 roll call vote of members elected/appointed and serving
to go into closed session]
{02083811 -1 }CLINTON T OWNS HIP, M I ▪ GR AND R AP IDS, M I ▪ LIVONIA, M I ▪ T RAVERS E C ITY, M I
K A N S A S C I T Y , M O ▪ N E W Y O R K , NY ▪ R I V E R S I D E , C A
Page 177 of 177
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