City Commission Packet Archive 09-24-2024

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CITY OF MUSKEGON
CITY COMMISSION MEETING
September 24, 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:

☐ PUBLIC COMMENT ON AGENDA ITEMS:

☐ CONSENT AGENDA:
A. Approval of Minutes City Clerk
B. Addendum/Purchase Price: 1192-1194 Pine Planning
C. Equipment Replacement – Front-end Loader Public Works
D. MDOT Trunkline Maintenance Contract Renewal Public Works
E. Concur with CRC Recommendation to Accept Resignation and Make
Appointments City Clerk
F. Sale of 1431 Hoyt Planning
G. Sale of 1441 Hoyt Planning
H. Sale of 1441 Leahy Planning
I. Amendment to the zoning ordinance - Cat Cafés in commercial zones
Planning
J. Amendment to the zoning ordinance - Cat Cafe definition Planning
K. Contract for Tree Removal Services Planning

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L. Nelson School LIHTC Redevelopment Municipal Services Agreement
Economic Development
M. Nelson School LIHTC Redevelopment Contract for Housing Exemption
Economic Development
N. Clay Commons Municipal Services Agreement Economic Development
O. Clay Commons Contract for Housing Exemption Economic
Development
P. Spring Street Crossing Municipal Services Agreement Economic
Development
Q. Spring Street Crossing Contract for Housing Exemption Economic
Development
R. Sale of 32 W. Western Avenue to Spire Development Economic
Development
S. Berkshire Spring Street LIHTC Municipal Services Agreement Economic
Development
T. Berkshire Spring Street Contract for Housing Exemption (PILOT
Agreement) Economic Development
U. Froebel School Project Updated Municipal Services Agreement
Economic Development
V. Froebel School Updated Contract for Housing Exemption Economic
Development
W. Lighthouse Lofts Municipal Service Agreement Economic Development
X. Lighthouse Lofts Contract for Housing Exemption Economic
Development
☐ PUBLIC HEARINGS:

☐ 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.

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► Limit of 3 minutes to address the Commission.

☐ CLOSED SESSION:

☐ 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:

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: September 24, 2024 Title: Approval of Minutes

Submitted by: Ann Meisch, City Clerk Department: City Clerk

Brief Summary:
To approve minutes of the September 9, 2024, Worksession/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
WORKSESSION/CITY COMMISSION
MEETING
September 9, 2024 @ 5:30 PM
MUSKEGON CITY COMMISSION CHAMBERS
933 TERRACE STREET, MUSKEGON, MI 49440
MINUTES

CALL TO ORDER
The Worksession/Commission Meeting of the City of Muskegon was held at City
Hall, 933 Terrace Street, Muskegon, Michigan at 5:30 PM, Monday, September 9,
2024. Mayor Johnson opened the meeting with a moment of silence, 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 Willie
German, Jr., Rachel Gorman, Katrina Kochin, Jay Kilgo, and Destinee Keener,
City Manager Jonathan Seyferth, City Attorney John Schrier, and City Clerk Ann
Marie Meisch

2024-79 HONORS, AWARDS, AND PRESENTATIONS

A. Recognize Joshua Fors - Michigan Sexton of the Year Manager's Office
The City Commission recognized Joshua Fors who has been honored with the
prestigious title of Michigan Sexton of the Year.

B. Regional Transit Authority Articles of Incorporation Manager's Office
Staff and a guest from the Muskegon Area Transit System will be presenting the
proposed Articles of Incorporation for the new regional transit authority. In
November 2023, the City Commission approved a resolution of intent to join
other municipalities in forming a regional transit authority. The first formal step
for the group is to establish Articles of Incorporation. The legislative body of
each member agency will need to approve the articles for the authority to
proceed forward with developing bylaws and seeking funding. Deputy City

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Manager LeighAnn Mikesell and Transit Systems Manager Jim Koens explained
the process to create a public transit authority in our community and answered
questions.

C. Port Development Conversation Manager's Office
Representatives from Mart Dock will present outlines of a proposal for port
development in Muskegon, which includes increased public access along the
eastern edge of Muskegon Lake and downtown. Several years ago, the City of
Muskegon and Mart Dock began discussions on the possibility of a "land swap"
between the two entities, which would include the property at Fisherman's
Landing (city property) and what's referred to as the Third Street Pier (Mart Dock
property). For various reasons, those conversations did not result in a deal.

Recently, City staff and the Mart Dock have again started these conversations,
but with a broader focus that looks at opening additional Muskegon Lake
access on the east side of the lake (a concept of areas that could be used for
east-side public access is available - no details have been finalized and this is
for conversation example only) and a complete picture of what downtown
access could look like from Terrace Point west to GVSU's AWRI facility (Mart
Dock will present on this concept Monday).

This conversation relates to the more extensive waterfront development
conversations that started following the City's completion of its master planning
process last year. Multiple parties are involved in these conversations, including
Muskegon County, WMSRDC, Parkland Properties, and the Muskegon Lakeshore
Chamber of Commerce.

A key part of this conversation is relocating the current Mart Dock port
operations to the Fisherman's Landing site and completely redeveloping the
Mark Dock into mixed uses with extensive public access. Mark Dock envisions
containerized operations on the Fisherman's Landing site.

A factor that has changed since the City's initial conversation with the Mart
Dock is the possibility of acquiring the Verplank Property to the east of
Fisherman's Landing and greatly expanding public access along the south
branch of the Muskegon River and out onto Muskegon Lake (this is often
referred to as an expansion of Richards Park because of its proximity to and
likely connection to Richard Park if the development were to occur).

Although many broad strokes are noted here and have been discussed, we're
closer to the beginning of this conversation rather than the end. There will be a
plan and opportunity for public feedback, especially as it relates to new access
along the east end of Muskegon Lake.

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If the City Commission is comfortable with what is discussed at this meeting, City
staff will begin drafting a formal agreement with Mark Dock that will formalize
the logistics of the process to possibly set up a land transfer between the two
parties and key milestones that will be inflection points. The objective is to
produce an agreement establishing a road map for how public access would
be maintained and increased and outline the City's commitment to actively
partner with Mark Dock in applying for Federal Port Development Grants. These
grants would be critical in financing any redevelopment of Muskegon's port.

Mart Dock will attend the meeting on Monday to present some of their ideas
and make some commitments about how they are willing to move the project
forward.

Key Topics for Discussion on Monday:
- Mart Dock's vision for its property in the future
- City staff discussing how public access on the east side of the lake could be
expanded to the public as a result of this development
- Mart Dock's ideas related to a port collaborative on Muskegon Lake and how
that could positively impact the community (and who, potentially, would be
included in that collaborative)
- Guarantees of additional public access at Third Street even if federal grants
are not successfully obtained
City Manager Jonathan Seyferth and Chuck Canestraight, President at Port City
Marine Companies, explained the item and asked the Commission for questions
and feedback.

D. Nelson House Purchase and Development Agreement Planning
Discussion on the Nelson House purchase and development agreement. Jamie
Pesch, Planner III, explained the request for bids process for the sale of the
Nelson House.

E. Short-Term Rental - Final Ordinance Presentation Manager's Office
Following feedback from the City Commission and the public, the staff has
updated the proposed STR Ordinance. In August, the staff presented a
proposed ordinance change focused on short-term rentals (STRs) in the City of
Muskegon. The proposed ordinance has been updated following feedback
from the City Commission and the public.

The staff still proposes separating the City into zones based on Federal Census
Tracts and capping STRs within each zone to 4% of the total housing stock. Staff
also recommends that the DDA and Lakeside BID districts be pulled out of these

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tracts to encourage short-term rentals in these zones. This will adjust the Lakeside
and North Nelson/Jackson Hill tract caps. Updated caps for each zone/tract
are available. I should note that by removing the Lakeside BID from the cap, the
Lakeside Tract went from having more STRs than the cap would allow to fewer
and opening up seven (7) additional licenses within that census tract.

Taking into consideration additional feedback, the staff is also recommending
that current properties with active STR licenses be able to be sold and have
their STR licenses transferred to the new owner - if the new owner can meet STR
application requirements. Additionally, the new owner must apply for their STR
license within 60 days of the purchase of their property, or they forfeit their right
to an STR license.

The staff plans to hold a special Planning Commission meeting the week of
September 16 to hold a public hearing on the STR ordinance and then bring the
ordinance to the City Commission for final consideration on October 8, 2024.

PUBLIC COMMENT ON AGENDA ITEMS
No public comments were made.

2024-80 CONSENT AGENDA

A. Approval of Minutes City Clerk
Approve minutes of the August 27, 2024, City Commission Meeting.
STAFF RECOMMENDATION: Approval of the minutes.

B. Nims Water Tower Cellular Antenna Lease Renewal Public Works
Staff requests authorization to enter into a 10-year lease renewal agreement
with up to 25 years of extension options with New Cingular Wireless PCS, LLC for
space on and near the Nims water tower for a cellular antenna and related
equipment. Commission authorized Maralat, LLC, a cellular antenna industry
consultant, to enter into negotiations on the City's behalf with AT&T for renewal
of their lease on the Nims water tower. Staff, legal counsel and Maralat have
been working with AT&T to finalize the terms of a lease extension and have
reached an agreement as presented in the lease agreement. The table below
summarizes the terms in both the prior lease and this proposed extension.

Component Prior Lease Proposed Renewal
Rental Rate $4,938.77 $4,850
Annual Escalation 3% 3%
Commencement Date N/A February 1, 2024

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Termination Date September 30, January 31, 2059
2018
Termination Fee (Initial 10-Year None 100% of Rent for 5 Years, then
Term) 50%
Equipment Upgrade Fee None $325 per Month Per New
Antenna
Administrative Signing Bonus None $7,500

The proposed lease is the same as the Marshall water tower extension included
on tonight's agenda. Although the rental rate is slightly decreased at the start
of the lease, Maralat ensures staff that it reflects the best available rates and
terms available to the City and the lease includes other items such as a
termination fee, an upgrade fee and an administrative signing bonus that make
the slight rent reduction less impactful overall, and the extension continues the
3% annual escalator.
STAFF RECOMMENDATION: Authorize staff to enter into a 10-year lease renewal
agreement with up to 25 years of extension options with New Cingular Wireless
PCS, LLC for space on and near the Nims water tower for a cellular antenna
and related equipment.

C. Marshall Water Tower Cellular Antenna Lease Renewal Public Works
Staff requests authorization to enter into a 10-year lease renewal agreement
with up to 25 years of extension options with New Cingular Wireless PCS, LLC for
space on and near the Marshall water tower for a cellular antenna and related
equipment.
Commission authorized Maralat, LLC, a cellular antenna industry consultant, to
enter into negotiations on the City's behalf with AT&T for renewal of their lease
on the Marshall water tower. Staff, legal counsel and Maralat have been
working with AT&T to finalize the terms of a lease extension and have reached
an agreement as presented in the lease agreement. The table below
summarizes the terms in both the prior lease and this proposed extension.

Component Prior Lease Proposed Renewal
Rental Rate $4,938.77 $4,850
Annual Escalation 3% 3%
Commencement Date N/A February 1, 2024
Termination Date September 30, January 31, 2059
2018
Termination Fee (Initial 10-Year None 100% of Rent for 5 Years, then
Term) 50%
Equipment Upgrade Fee None $325 per Month Per New
Antenna

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Administrative Signing Bonus None $7,500

The proposed lease is the same as the Nims water tower extension included on
tonight's agenda. Although the rental rate is slightly decreased at the start of
the lease, Maralat ensures staff that it reflects the best available rates and terms
available to the City and the lease includes other items such as a termination
fee, an upgrade fee and an administrative signing bonus that make the slight
rent reduction less impactful overall, and the extension continues the 3% annual
escalator.
STAFF RECOMMENDATION: Authorize staff to enter into a 10-year lease renewal
agreement with up to 25 years of extension options with New Cingular Wireless
PCS, LLC for space on and near the Marshall water tower for a cellular antenna
and related equipment.

D. Contract Award - 2024 Mill and Resurfacing Project Public Works
Staff requests approval to enter into a contract with Asphalt Paving Inc. in the
amount of $189,324.70 and to approve Change Order No. 1 in the amount of
$29,556 for a total award of $218,880.70 for the repaving work on Irwin Ave.,
Wood St., Beach St., Glen/McGraft Ave., and Allen Ave. Staff reviewed several
areas of major streets in poor condition and solicited bids for repaving the
following streets:
- Wood St.: From Irwin Ave. north to Spring St. (approx. 225').
- Irwin Ave.: From Approx. 300' west of Wood St. to approx. 330' east of Wood St.
- Beach Street: From the "fork" in the road near Margaret Drake Elliot Park
northerly approx. 1,125'
- Glen/McGraft: From Hackley Ave. to Addison St. (approx. 2,800').
- Allen Ave.: From Creston St. to Home St. (approx. 525').
City/DPW staff are planning to pave Allen Avenue, but the contractor will do
the preparatory work.
Asphalt Paving, Inc. (API) was the low bidder in the amount of $189,324.70, with
details shown on the bid tab. In addition to the award of the contract as
originally bid, staff is requesting authorization for approval of the Change Order
for an additional amount of $29,556.00 to increase the area to be milled on the
Glen/McGraft from Hackley Ave. to Addison St. by 1,960 SYD's and the amount
of paving by 250 tons of asphalt. Due to the favorable prices received, staff
would like to widen the area to be milled and paved on Glen/McGraft.
STAFF RECOMMENDATION: Authorize staff to enter into a contract with Asphalt
Paving Inc. in the amount of $189,324.70 and to approve Change Order No. 1 in
the amount of $29,556 for a total award of $218,880.70 for the repaving work on
Irwin Ave., Wood St., Beach St., Glen/McGraft Ave., and Allen Ave.

E. Amendment for Engineering Services - Olthoff Drive Extension Project

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Public Works
Hubbell, Roth & Clark, Inc. (HRC) performed the design and construction
engineering for the Olthoff Drive Extension project. They have requested an
additional $30,600 to be added to their contract with the City as described
herein. HRC provided Design and Construction Engineering services for the
Olthoff Drive Extension project. There were various additional services provided,
including redesigning the sanitary sewer location, adjusting the road grades to
minimize coordination with the neighboring prison, and construction duration
lasting 15 weeks versus the originally proposed 8 weeks. Construction was
originally planned to be completed during the 2021 construction season but
ended up being completed primarily in 2023 with the final paving completed in
2024. These changes were at the request of the primary tenant of the industrial
park expansion/road extension. These costs will be paid for by a combination of
MEDC grant funds, MDOT grant funds, and water/sewer funds. This is not a
specifically budgeted expense, but staff is confident the non-grant portions will
fit within the existing budgets. Staff recommends approval of the request.
STAFF RECOMMENDATION: Authorize staff to approve the requested
amendment from HRC, Inc. in the amount of $30,600.

F. Washwater Pump Replacement Valves DPW- Water Filtration Plan
Staff is requesting authorization to contract with Northern Boiler Mechanical
Contractors for valve replacements on two Washwater Pump’s located at the
City Water Filtration Plant. The Filtration plant has 3 washwater pumps that are
critical to the filtration process. These pumps allow us to wash the filters as they
build up filtered sediment, extending the life of the filter media by back-flushing
treated water through the filter media. Pumps #2 and #3 are original to the
1936 construction of the filtration plant, including their foot and isolation valves.
The "foot" valve sits down in the finished water reservoir at the point where the
washwater pump pulls water from the reservoir for washing. The foot valve on
washwater pump #3 has failed and needs replacement; currently washwater
Pump #3 is out of service, reducing the plant’s redundancy to properly operate
filters. The plan included with this item shows the foot valve and other proposed
work as detailed below.

Staff solicited bids for the replacement of washwater pump #3's foot valve. As
part of the bid process, staff requested an alternate bid to replace both foot
valves, on washwater pump #2 as well as #3. It is reasonable to assume the
washwater pump #2 foot valve is not far behind #3 in terms of failure. With the
extent of work needed, it makes the most economic sense to replace both at
the same time to ensure long service life for both pieces of critical infrastructure.

Furthermore, the addition of a check valve after the pump discharge as well as

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a replaced isolation valve were included in the pricing requested. The check
valve will prevent backwash water from flowing into the drinking water reservoir
in the event of a foot valve failure. The aging isolation valve has proven to be
difficult to operate and is in need of replacement, and with this project it can
be replaced in a location that will allow easy access for future repairs.

A proposal for bids was posted and 2 mechanical contractors bids were
received, Northern Boiler and Franklin Holwerda Company. Staff recommends
this project be awarded to Northern Boiler Mechanical Contractors for the work
described above based on their low bid and their experience with similar work.
The bid tab and other documents are included. This work fits within the filter
plant capital improvement budget, but it will need to take the place of other
work shown in the plan due to its urgency.
STAFF RECOMMENDATION: Authorize staff to contract with Northern Boiler
Mechanical Contractors for $155,729 to perform foot, isolation, and check valve
replacements at the Water Filtration Plant.

G. Request to amend the planned unit development (PUD) at 3400, 3460,
3474 Wilcox Avenue, 1875 Waterworks Road, and 1490 Edgewater Street
(the Docks). SECOND READING Planning
The plans have been amended to develop around areas that have been
declared as established wetlands. There will be a total of 240 residential units
and a community building with retail/restaurant space. The Planning
Commission unanimously recommended approval of the amended PUD with
the following conditions:

1. The applicant receives a stormwater permit from the Engineering
Department.
2. All utility plans are reviewed and approved by the Engineering
Department
3. Lane widths of streets are reduced to 9 or 10 feet subject to the
Engineering Department.
4. Bulb outs are eliminated on road A.
5. Road C will be connected back to road B.
6. The parking lot to the southern marina parking lot will be revised as
discussed.
7. Landscaping areas inside of parking areas and streets will be privately
maintained.
8. A public/private street map will be provided and describe the ownership
as discussed with all privately-owned roadways being publicly accessible.
9. A landscaping plan is approved by the Planning Department.

Conditions 4, 5, and 6 have been addressed and reflected on the revised plans

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in the packet.
STAFF RECOMMENDATION: To approve the request to amend the PUD with the
following conditions:

1. The applicant receives a stormwater permit from the Engineering
Department.
2. All utility plans are reviewed and approved by the Engineering
Department.
3. Lane widths of streets are reduced to 9 or 10 feet subject to the
Engineering Department.
4. Landscaping areas inside of parking areas and streets will be privately
maintained.
5. A public/private street map will be provided and describe the ownership
as discussed with all privately-owned roadways being publicly accessible.
6. A landscaping plan is approved by the Planning Department.
7. That on-street parking, inclusive of handicap parking, be placed to the
north of the structural retaining wall at public road E's final northerly bend.

H. Rezoning of 349 W Webster Ave from Form Based Code, Urban
Residential (FBC, UR) to Form Based Code, Neighborhood Core (FBC,
NC). SECOND READING Planning
The Planning Commission unanimously recommended in favor of the request at
their August meeting. This property is the former location of the Muskegon Public
Schools Administration building. It has been privately owned since 2021. The
applicant is requesting a rezoning to allow the building to be converted into a
hotel, with retail and other mixed-uses. There were no public comments given at
the public hearing.
STAFF RECOMMENDATION: I move to approve the request to rezone the
property at 349 W. Webster Ave. from Form Based Code, Urban Residential to
Form Based Code, Neighborhood Core.

I. Rezoning of 1700 Oak Ave from Medical Care (MC) to Low-Density
Multiple Family Residential (RM-1). SECOND READING Planning
The Planning Commission unanimously recommended approval of the request
at their August meeting. The property is the site of the former Muskegon General
Hospital and is still zoned MC, Medical Care. The site measures just under 26
acres. The applicant is seeking a rezoning to RM-1, Low-Density Multi-Family
Residential to allow for a 144-unit “work force” apartment development. The
plans include the demolition of the existing hospital buildings. The applicant
would utilize about 14 acres of the 26 acre site. The Planning Commission
recommended in favor of the rezoning and also approved the site plan,
contingent upon the City Commission approving the rezoning.

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STAFF RECOMMENDATION: I move to approve the rezoning of 1700 Oak Ave
from Medical Care (MC) to Low-Density Multiple Family Residential (RM-1).

Motion by Vice Mayor St.Clair, second by Commissioner Gorman, to approve
the Consent Agenda as presented.
ROLL VOTE: Ayes: Keener, Gorman, Kochin, St.Clair, and Johnson
Nays: None
MOTION PASSES

ANY OTHER BUSINESS
DPW Director Dan VanderHeide stated that on Laketon Avenue east of Seaway
there is a broken sewer lateral. Laketon will be closing, both directions, starting
September 10th.

PUBLIC COMMENT ON NON-AGENDA ITEMS
Public comments received.

ADJOURNMENT
The City Commission meeting adjourned at 8:10 p.m.

Respectfully Submitted,

Ann Marie Meisch, MMC City Clerk

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Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: September 24, 2024 Title: Addendum/Purchase Price: 1192-1194 Pine

Submitted by: Samantha Pulos, Code Department: Planning
Coordinator

Brief Summary:
Staff is requesting approval of a purchase agreement addendum to reduce the price of 1192-1194
Pine from $350,000.00 to $310,000.00.

Detailed Summary & Background:
1192-1194 Pine had a foundation inspection performed by two local foundation
contractors/specialists. Due to the shifting and age of the homes, potential issues were identified. The
purchase price of the homes was reduced to reflect that.

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 Amendment for 1192-1194 Pine to reduce the price to $310,000
and authorize the Code Coordinator, Samantha Pulos, to sign.

Approvals: Guest(s) Invited / Presenting:
Immediate Division
Head No

Information
Technology
Other Division Heads
Communication

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Legal Review

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dotloop signature verification: dtlp.us/ESVZ-iXFM-ABH2
dtlp.us/Ss9u-4kK4-GpD3

WEST MICHIGAN REGIONAL
ADDENDUM TO PURCHASE AGREEMENT

MLS # 24029065 Date: 09/08/2024 (time)
kpittman@greenridge.com
Selling Office GREENRIDGE REALTY INC.-MUSKEGON , REALTOR® Phone 231-343-8621 Email
brenda.skujins@cbgreatlakes.com
Listing Office Coldwell Banker Woodland Schmidt Muskegon , REALTOR® Phone 231-343-9966 Email

1. Addendum # 5 to Purchase Agreement dated 07/22/2024 covering property at

1192 and 1194 Pine St, Muskegon, MI 49442

2. This Addendum shall be an integral part of the Purchase Agreement, which is amended as follows:
The buyer submits her best and final offer, with a purchase price of $310,000.00
(Three Hundred Ten Thousand dollars and zero cents).

3. The Seller Buyer (check one) gives the above-named REALTOR® 2 days to obtain the written acceptance of this
Addendum to the Purchase Agreement. If accepted, this Addendum will constitute a binding change to the Purchase Agreement.

4. RECEIPT IS ACKNOWLEDGED BY BUYER of a copy of this Agreement.

EBONY CRANE
dotloop verified

Date 09/08/2024 X
09/08/24 5:56 PM CDT
AZQ2-6UK7-8I5D-VSPF Buyer
(Note: Please sign as you wish your name to appear on final papers.)

X Buyer
(Note: Please sign as you wish your name to appear on final papers.)

5. RECEIPT IS ACKNOWLEDGED BY SELLER of a copy of this Agreement.

Sam Pulos
dotloop verified
Date X 09/09/24 11:30 AM EDT
Seller
YIAA-AUEO-VSCM-GH3E
(Note: Please sign as you wish your name to appear on final papers.)

X Seller
(Note: Please sign as you wish your name to appear on final papers.)

©West Michigan REALTOR® Boards
Rev 7/2020

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dotloop signature verification: dtlp.us/m0J7-YcNX-6MBx

WEST MICHIGAN REGIONAL PURCHASE AGREEMENT
#
DATE: 07/22/2024 , (time) MLS # 24029065

SELLING OFFICE: GREENRIDGE REALTY INC.-MUSKEGON BROKER LIC.#: 6505179283 REALTOR® PHONE: 231-830-3098

LISTING OFFICE: Coldwell Banker Woodland Schmidt Muskegon REALTOR® PHONE: 231-343-9966

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: THERESA (KAY) PITTMAN Email: kpittman@greenridge.com Lic.#: 6501307466

Alternate Selling Agent Name: Email: Lic.#:
3. Seller’s Disclosure Statement: (This paragraph applies to sales of one-to-four family residential units.)
Buyer has received the Seller’s Disclosure Statement, dated 05/21/2024 .
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)
1192-1194 Pine Street, Muskegon, MI 49442
with the following legal description and tax parcel ID numbers:
CITY OF MUSKEGON REVISED PLAT OF 1903 N 1/2 LOT 2 BLK 245 and CITY OF MUSKEGON REVISED
PLAT OF 1903 S 1/2 LOT 2 BLK 245
PP# 24205245000200 .
The following paragraph applies only if the Premises include unplatted land:
Seller agrees to grant Buyer at closing the right to make (insert number) 0 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 N/A , of the proposed division to create the Premises.
6. Purchase Price: Buyer offers to buy the Property for the sum of $ 350,000.00
three hundred fifty thousand U.S. Dollars
7. Seller Concessions, if any: NONE

8. Terms: The Terms of Purchase will be as indicated by “X” below: (Other unmarked terms of purchase do not apply.)
SOURCE OF FUNDS TO CLOSE: Buyer represents that the funds necessary to close this transaction on the terms specified below
are currently available to Buyer in cash or an equally liquid equivalent.
If the Property’s value stated in an appraisal obtained by Buyer or Buyer’s lender is less than the Purchase Price, Buyer shall within
three (3) days after receipt of the appraisal: 1) renegotiate with the Seller, 2) terminate the transaction, in which case Buyer shall
receive a refund of Buyer’s Earnest Money Deposit, or 3) proceed to close the transaction at the agreed Purchase Price.
CASH. The full Purchase Price upon execution and delivery of Warranty Deed. Buyer Agrees to provide Buyer Agent/Dual Agent
verification of funds within five (5) days after the Effective Date, and consents to the disclosure of such information to Seller and/or
Seller’s Agent. If verification of funds is not received within 5 days after the Effective Date, Seller may terminate this Agreement
at any time before verification of funds is received by giving written notice to Buyer. Any appraisal required by Buyer shall be
arranged and paid for by Buyer within ten (10) days after the Effective Date of this Agreement.
NEW MORTGAGE. The full Purchase Price upon execution and delivery of Warranty Deed, contingent upon Buyer’s ability to
obtain a CONVENTIONAL type 30 (year) mortgage in the amount of 85 % of the Purchase Price
bearing interest at a rate not to exceed 8.0 % 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 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 $ $0.0 representing repairs required as a
condition of financing. Buyer agrees does not agree to authorize Buyer’s Agent/Dual Agent to obtain information from

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Buyer’s lender regarding Buyer’s financing, and consents to the disclosure of this information to Seller and/or Seller’s Agent.
Exceptions:
N/A
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.
$ N/A upon execution and delivery of a N/A
form (name or type of form and revision date), a copy of which is attached, wherein the balance of $ N/A
will be payable in monthly installments of $ N/A 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 N/A 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:
N/A

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 $ N/A ) between the Purchase Price above
provided and the unpaid balance (approximately $ N/A ) 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: N/A

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:
ALL ITEMS LISTED ON THE MLS DATA DESCRIPTION IN EACH UNIT (A/C UNIT, DISHWASHER,
RANGE/OVEN, REFRIGERATOR, WASHER AND DRYER.)

but does not include:
PERSONAL ITEMS

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©Copyright, West Michigan REALTOR® Associations
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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:
N/A
14. Well/Septic: Within ten (10) days after the Effective Date, (choose one) Seller or Buyer will arrange for, at their own expense,
an inspection of the primary well used for human consumption (including a water quality test for coliform bacteria and nitrates) and
septic systems in use on the Property. The inspection will be performed by a qualified inspector in a manner that meets county (or
other local governmental authority, if applicable) protocol.
If any report discloses a condition unsatisfactory to Buyer, or doesn’t meet county standards that are a condition of sale, Buyer may,
within three (3) days after Buyer has received the report, by written notice to Seller, either terminate this Agreement and receive a
refund of Buyer’s Earnest Money Deposit, or make a written proposal to Seller to correct those unsatisfactory conditions. If Buyer fails
to make a written proposal within the above referenced time period, then Buyer will be deemed to have accepted the well/septic as-is.
Seller will respond in writing within three (3) days to Buyer’s request. If Seller fails to respond or to arrive at a mutually agreeable
resolution within three (3) days after Seller’s receipt of Buyer’s proposal, Buyer will have three (3) days to provide written notice of
termination of this Agreement and receive a refund of any applicable Earnest Money Deposit. If Buyer fails to terminate the contract,
Buyer will proceed to closing according to the terms and conditions of this Agreement.
Other:
15. Inspections & Investigations:
Inspections: Buyer, or someone selected by Buyer, has the right to inspect the buildings, premises, components and systems, at
Buyer’s expense. Any damage, misuse, abuse, or neglect of any portion of the Property or premises as a result of inspections will be
Buyer’s responsibility and expense.
Investigations: It is Buyer’s responsibility to investigate (i) whether the Property complies with applicable codes and local ordinances
and whether the Property is zoned for Buyer’s intended use; (ii) whether Buyer can obtain a homeowner’s insurance policy for the
Property at price and terms acceptable to Buyer; (iii) and whether or not the Property is in a flood zone.
All inspections and investigations will be completed within ____ 10 days after the Effective Date. If the results of Buyer’s inspections
and investigations are not acceptable to Buyer, Buyer may, within the above referenced period, 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

1192-1194 Pine Street, Muskegon, MI 49442 07/22/2024
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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:
Buyer will accept exciting survey from seller if there's one.
19. Home Protection Plan: Buyer and Seller have been informed that home protection plans may be available. Such plans may provide
additional protection and benefit to the parties. Exceptions:

20. Prorations: Rent; association dues/fees, if any; insurance, if assigned; interest on any existing land contract, mortgage or lien
assumed by Buyer; will all be adjusted to the date of closing. For the purposes of calculating prorations, it is presumed that Seller
owns the Property through the day before closing.
21. Closing: If agreeable to Buyer and Seller, the sale will be closed as soon as closing documents are ready, but not later than
08/30/2024 . An additional period of fifteen (15) days will be allowed for closing to accommodate the correction of
title defects or survey problems which can be readily corrected, or for delays in obtaining any lender required inspections/repairs. During
this additional period, the closing will be held within 5 days after all parties have been notified that all necessary documents have been
prepared. Buyer and Seller will each pay their title company closing fee, if applicable, except in the case of VA financing where Seller
will pay the entire closing fee. Exceptions:

22. Pre-Closing Walk-Through: Buyer (choose one) reserves waives the right to conduct a final walk-through of the
Property within three (3) days of the scheduled closing date. The purpose of the walk-through is to determine that the Property is in
a substantially similar condition as of the Effective Date, any contractually agreed upon items have been fulfilled, and that any included
personal property is still located at the Property. Buyer shall immediately report to Seller any objections to these conditions and Buyer’s
requested corrective action.
23. Possession: Seller will maintain the Property in its present condition until the completion of the closing of the sale. Possession to be
delivered to Buyer, subject to rights of present tenants, if any.
At the completion of the closing of the sale.
At a.m. p.m. on the day after completion of the closing of the sale, during which time Seller
will have the privilege to occupy the Property and hereby agrees to pay Buyer $ as an occupancy
fee for this period payable at closing, WITHOUT PRORATION. Payment shall be made in the form of cash or certified funds.

1192-1194 Pine Street, Muskegon, MI 49442 07/22/2024
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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 $ 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 4:00 P.M. (time) on
07/23/2024 (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 $ 3,500.00
shall be submitted to CHICAGO 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:
This offer is contingent on buyers' satisfaction with inspections.

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.

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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.
EBONY CRANE
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Buyer 1 Address 24444 MEYER AVE. SW, #1, WYOMING, MI 49419 X 07/22/24 3:20 PM EDT
XEW2-CZMX-MF9M-KLR3 Buyer
Buyer 1 Phone: (Res.) 616-930-6944 (Bus.) EBONY CRANE
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:
The conveyance will be via Quit Claim Deed from the City of Muskegon. All other conditions remain the same.

Counteroffer, if any, expires 07/25/2024 , at 10am (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 05/21/2024 (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: 380 W. WESTERN, SUITE 101, MUSKEGON, 49440 Listing Broker License # 6505157435

Listing Agent Name: Brenda Nyblade Skujins Listing Agent License # 6501403748

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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R0FZ-VVPG-HUHR-MGTP

Is Seller a U.S. Citizen or Resident Alien? Yes No*
Print name as you want it to appear on documents.

X (Seller’s Signature, Date, Time):
Is Seller a U.S. Citizen or Resident Alien? Yes No*
Print name as you want it to appear on documents.
Seller’s Address: Seller’s Phone (Res.) (Bus)
* If Seller(s) is not a U.S. Citizen or Resident Alien, there may be tax implications and Buyer and Seller are advised to seek professional advice.

37. Buyer’s Receipt/Acceptance: Buyer acknowledges receipt of Seller’s response to Buyer’s offer. In the event Seller’s response
constitutes a counteroffer, Buyer accepts said counteroffer. All other terms and conditions in the offer remain unchanged.

X (Buyer’s Signature, Date, Time):

38. Seller’s Receipt: Seller acknowledges receipt of Buyer’s acceptance of counteroffer.

X (Seller’s Signature, Date, Time):

X (Seller’s Signature, Date, Time):
1192-1194 Pine Street, Muskegon, MI 49442 07/22/2024
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Proposal
Number 2080

Date Aug 16, 2024
Project Manager: Bryan Foster
License: #2102212972 Customer #
1518 Steele Ave SW Grand Rapids, MI 49507
Cell: 616-335-0364 Office: 616-377-8111 Terms
Bill To foster@foundationspecialistmi.com
Ship Via
Ebony Crane
(616) 930-6944
Tentative Installation Date:
1194 Pine St
Muskegon, MI 49442
craneeb@gmail.com

Qty Description Ext Unit Photo

21 Basement/(includes base) HD Galvanized Support Post $25,095.00 $1,195.00
Install steel adjustable support post and Install a structural base for
support post. The support post will stabilize the structure or FS can
attempt to lift the foundation/beam and support the load above.
Adjustments of the support posts will have to be done if it appears there
is any sagging of the beams. Lift is not guaranteed. This is not included
in the price of the job. A service call of minimum of $199.00 (depending
on number of adjustments) will be charged to the homeowner if they
want Foundation Specialist LLC, to come out and adjust the posts.

14 CS/ Galvanized Support Post (existing pad) $14,700.00 $1,050.00
Install steel adjustable support post on existing base/pad. The support
post will stabilize the structure or FS can attempt to lift the foundation/
beam and support the load above. Adjustments of the support posts will
have to be done if it appears there is any sagging of the beams. Lift is
not guaranteed. This is not included in the price of the job. A service call
of minimum of $199.00 (depending on number of adjustments) will be
charged to the homeowner if they want Foundation Specialist LLC, to
come out and adjust the posts.

166 Steel i Support Beam $13,114.00 $79.00
Install new coated 4in steel support I beam.

7 Sister Floor Joist $1,680.00 $240.00
Sister floor joist to repair damaged boards under floor.

Customer is responsible to remove all electrical, plumbing, duct work,
etc to allow access to install new floor joist. Customer also responsible
to replace lines once work is complete.

Total (1227)

Page 1 of 6
Page 24 of 222
Proposal
Number 2080

Qty Description Ext Unit Photo

Floor Joist Dimensions:

9 Joist Hangers/Custom Angle Bracket $270.00 $30.00
Joist hanger/angle bracket installed as needed.

Bring double joists hangers too.

1 Notes $0.00 $0.00
Unable to access the crawl space areas. Plywood needs to be removed
to gain access. Not required but maybe needed is 3 additional support
post and 14 of beam along the stairs where previous work as been
done.

504 Dimpled Drainage Matting $831.60 $1.65
Dimpled membrane used with encapsulation liner to divert water from
wall into drainage system below.

504 20 Mil Crawl Space Liner $3,301.20 $6.55
Crawl Space Encapsulation
-20 Mil cross woven polyethylene
-Sealed seams and penetrations
-25 year warranty against rips and tears.

Customer to move items from work area
Site Access and Readiness:
Customer is responsible for moving all items 4ft to 5ft away from the
areas where work will be performed. Customer also must clear a 4ft
pathway from the stairs that allows access to areas where work will be
performed.

Total (1227)

Page 2 of 6
Page 25 of 222
Proposal
Number 2080

Qty Description Ext Unit Photo

If all necessary items are not moved from the necessary areas,
Foundation Specialist may elect to leave the jobsite and return once the
items have been moved. Customer will incur a $400 trip charge if this
occurs. Customer may, alternatively, elect to have FS employees move
the items necessary to complete the work. Neither Foundation
Specialist, nor FS employees, will be held liable for ANY DAMAGES TO
UNMOVED ITEMS and Customer will be assessed $100 per hour per
person for this additional service. A minimum of 1 hour per person will
be charged.
In cases of STRUCTURAL REPAIR, Customer must move all items 10ft
away from areas in which work will be performed and clear a 4ft path to
provide access to the work areas.

HD Stabilizer Galvanized Support Post Warranty
In areas where relevant work was performed by Foundation Specialist,
the Contractor hereby warrants that Galvanized Support Posts will stop
further appreciable settlement of the repaired structure for 25 years
from the date of installation. Also included is a second 25 year warranty
from the manufacturer. In the event of a problem, Foundation Specialist
will provide the labor and materials, at no cost to Customer, to correct
problem(s) with the Galvanized Support Posts. Areas that are not
supported entirely from corner to corner, covering the entire basement,
as performed by Contractor are not under warranty. Galvanized Support
Posts are under warranty only to stabilize the affected structure from
appreciable settlement. If Customer desires further movement of the
structure, the project manager will need to be contacted for a new
proposal. The cost of adjustments is not included in this proposal or
warranty, but adjustments are available from Foundation Specialist at
an additional charge. Please consult the project manager for costs of
additional adjustments.

Total (1227)

Page 3 of 6
Page 26 of 222
Proposal
Number 2080

Qty Description Ext Unit Photo

Crawl Space Warranty
The crawl space liner comes with a 25-year transferable warranty that
covers rips and tears only.

1 Deposit $0.00 $0.00
A deposit of 50% is required for scheduling the work to be performed.
After 3 business days the deposit will become non-refundable and will
be held as a credit towards any Foundation Specialist LLC, services.
Final payment is due upon completion of Job.

Total (1227) $58,991.80
Thank you for your time and valued business.

For more information feel free to check us out @
www.foundationspecialistmi.com

Page 4 of 6
Page 27 of 222
Your Right To Cancel / Terms & Conditions

Terms & Conditions: Bid valid for 30 days.

Your Right to Cancel: If Homeowner (“You”) entered into this Contract as a result of, or in connection with, a salesman's direct contact
with or call to You at Your residence without You soliciting the contract or call, then You have a legal right to void the Contract or sale
by notifying us within (3) business days from accepting the proposal with a full refund of Your deposit. After (3) business days
Foundation Specialist (“FS”) will charge a minimum fee of 15-25% of the total job cost. How To Cancel: If You decide to cancel this
transaction, You may do so by notifying us in writing at Foundation Specialist, 1518 Steele Ave SW, Grand Rapids, MI 49507. You
may use any written statement that is signed and dated by all contracting parties clearly stating Your intentions to cancel. Written
notice of Your intent to cancel must be received by Foundation Specialist, LLC no later than midnight of the third business day
following Your acceptance of the proposal.

Alteration From Specifications: Any alteration or deviation from Your Contract specifications involving extra costs will be executed
only upon written orders and will become an extra charge over and above the Contract Price.

Responsibility for Damage: Customer assumes all responsibility for damage due to breakage of any hidden fuel/utility service lines
AND IRRIGATION SPRINKLERS.

Reliance on Customer Representations: CONTRACT IS BASED ON YOUR DESCRIPTION OF THE PROBLEM. Foundation
Specialist has relied on Your representations in drafting the provisions of this contract and in performance of the work specified.

Warranty Limitations: I fully understand and accept any transferable warranty applicable to this contract which covers only the areas
of the basement addressed. If a service call is requested by customer NOT related to FS work, You will be charged a service fee
determined by Foundations Specialist’s sole discretion. Installation and/or service work DOES NOT include painting, finished
carpentry, electrical work, condensation, window well flooding, water once pumped from the house, or water coming over top of the
wall. EXCEPT AS EXPRESSLY STATED BELOW, THE CONTRACTOR DISCLAIMS ALL WARRANTIES IN CONNECTION WITH
THIS PROPOSAL, EXPRESS OR IMPLIED, -- WHETHER ORAL OR WRITTEN -- AS TO ANY MATTER WHATSOEVER,
INCLUDING WITHOUT LIMITATION DESCRIPTION, QUALITY, DESIGN, PERFORMANCE, SPECIFICATIONS, CONDITION,
MERCHANTABILITY AND FITNESS FOR ANY PARTICULAR PURPOSE. THE CONTRACTOR'S LIABILITY FOR ANY CLAIM OF
ANY KIND, INCLUDING WITHOUT LIMITATION NEGLIGENCE, BREACH OF CONTRACT OR BREACH OF WARRANTY, SHALL
IN NO CASE EXCEED THE SUM OF THIS PROPOSAL AND SHALL NOT INCLUDE ANY LIABILITY FOR ANY CONSEQUENTIAL,
INCIDENTAL OR SPECIAL DAMAGES, OR LOSS OF PRODUCTION OR PROFITS.

Site Preparation: You are responsible for moving objects from the walls which may also include – but are not limited to -- water
heater, well tank, furnace, washer/dryer, well pump, toilet, shower, sink, electrical, etc. the distance(s) specified in this Contract. You
are responsible to ensure electrical power and water is turned on and available for FS to use during the installation process.
Additional costs will be incurred by You if water and power are not available. THERE WILL ALSO BE ADDITIONAL COSTS
CHARGED FOR ITEMS NOT MOVED AS SPECIFIED IN THE CONTRACT.

Expectation of Dust: DUST SHOULD BE EXPECTED FROM WORK PERFORMED UNDER THIS CONTRACT. We recommend that
You seal vents as desired to limit dust from traveling throughout Your home. FS recommends having a professional cleaning
company ready for final clean-up post performance.

Perimeter Wall Preparation: You are responsible for removal and replacement of any finished perimeter walls in the work area as
specified prior to the job start date set by Foundation Specialist. Additional costs will occur if the assigned crew cannot perform the
job on the scheduled date because walls were not removed in advance.

Time for Completion: In the event of a delay, suspension, or interference with any part of the contract performance that is not due to
the fault of FS including but not limited to delays caused by weather, illness, contaminated or hazardous materials or soils, labor
problems, You, or material shortages, there will be an equitable adjustment of the Contract time. You acknowledge that any delay in
the contract performance caused by You will cause additional charges to You by FS.

Payment: Any payments 30 days past due shall be accessed a 5% late fee per month. Payments are to be made in full upon job
completion. Payment due at completion of job to the job foreman, not after any paperwork such as permit or engineering report. All
warranties are void if project is not paided in full. Nothing herein shall be construed to limit any other remedies for breach or
nonpayment Contractor may have at law or equity. No warranties are valid until invoice is paid in full.

Page 5 of 6
Page 28 of 222
Your Right To Cancel / Terms & Conditions

Insurance Considerations: If You have a sump pump in Your basement, we recommend that You contact Your insurance company for
any applicable insurance coverage modifications. We also strongly recommend a construction insurance policy if available by Your
insurance carrier for any work involving the structure of Your property.

Permits: Permits are not included unless otherwise stated. If any permits, engineered drawings, or land surveys are required, You are
responsible to cover the additional cost and administrative fees. If electrical outlet and permit are required by the city, Customer is
responsible to have that installed with 60 days of FS work being completed or it will void the pump warranties. All other warranties are
void until the outlet/permit is completed. In addition customer is subsequently responsible for fines from the city for non-compliance.

Drawings: drawings are an approximant guideline for the foreman, foreman has final overall discretion for final product placement
etc., and the foreman’s discretion may vary from the drawings as needed.

Performance Liability Disclaimer: FS shall not be liable for any delay or failure to perform all or any part of this Agreement or for any
damage, loss, cost, or expense that results from a delay, failure, damage, loss, cost, or expense that is the proximate result of any
fire, flood, act of God, revolution, riot, civil disorder, vandalism, act of enemies, terrorism, or labor dispute, including disputes among
or between unions or any sovereign nation or political subdivision, including all agencies, bureaus, departments, and representatives;
acts or omissions of You; or any other cause not within FS’s control, whether or not the cause is enumerated above.

Mold Disclaimer: Whether or not a home experiences mold growth may depend largely on how the Customer manages and maintains
the home. Customer understands and agrees that FS does not warrant against the presence of mold in the Property. FS will not be
responsible for any damages caused or allegedly caused by mold including -- but not limited to -- property damage, lost value, or any
adverse health effects or conditions. All implied warranties, including any implied warranty of workmanlike construction, any implied
warranty of habitability, or any implied warranty of fitness for a particular purpose, are waived and disclaimed by Customer to the
fullest extent permitted by law, and Customer agrees to indemnify, defend, and held FS harmless for any mold in the Property. This
duty to indemnify, defend, and hold harmless shall survive the completion of the Work and shall not be deemed merged with the
tender of final payment for the Work. REGARDLESS OF HOW MOLD MAY GROW IN THE RESIDENCE, YOUR WARRANTIES DO
NOT OFFER YOU ANY WARRANTY REGARDING MOLD AND POTENTIAL DAMAGE OR HARM FROM MOLD. IT IS THE SOLE
DUTY AND RESPONSIBILITY OF THE CUSTOMER OF THE RESIDENCE TO INSPECT FOR AND PREVENT MOLD IN THE
HOME FOR AS LONG AS CUSTOMER OWNS THE HOME

Successors and Assigns: You may not assign Your duties or obligations under this Contract without written consent of FS. The
provisions of this Contract are binding on Your successors or assigns.

Foundation Specialist Option to Cancel: Foundation Specialist may cancel this Contract at any time at our sole discretion.

Job Pictures: Unless otherwise expressed, Foundation Specialist can use all job pictures for marketing purposes and promotional
purposes.

Costs: Fees. In the event of any legal action by FS to collect any amount due under this Contract, You shall pay FS all reasonable
costs and expenses thereof, together with reasonable attorney's fees (including fees incurred in appeals and post judgment
proceedings).

No Other Agreement: This Contract and the Contract Documents incorporated in it is the entire agreement between the parties. No
oral or written communication or negotiations that occurred before the execution of this Contract will be considered to be part of this
agreement. This Contract may be modified only by written document signed by both the parties or by a written change order as
provided in this Contract. This Contract will be governed by the laws of the State of Michigan. No additional warranties or guarantees
rather express or implied are included in this Contract.

If accepting, please sign below: Date:______/____2024

Acceptance Of Proposal ( Sign In Box Below)

Page 6 of 6
Page 29 of 222
Proposal
Number 1777

Project Manager: Cody Markward Date Aug 14, 2024

License: #2102212972 P.O.
1518 Steele Ave SW Grand Rapids, MI 49507
Cell: 616-813-9761 Office: 616-377-8111 Terms
Bill To Cody@foundationspecialistmi.com
Ship Via
Ebony Crane
(616)930-6944
Tentative Installaton Date
1192 Pine St.
Muskegon, MI 49442
craneeb@gmail.com

Qty Description Unit Ext Photo

12 CS/ HD Galvanized Support Post (includes base) $1,195.00 $14,340.00
Install steel adjustable support post and Install a structural base for
support post. The support post will stabilize the structure or FS can
attempt to lift the foundation/beam and support the load above.
Adjustments of the support posts will have to be done if it appears there
is any sagging of the beams. Lift is not guaranteed. This is not included
in the price of the job. A service call of minimum of $199.00 (depending
on number of adjustments) will be charged to the homeowner if they
want Foundation Specialist LLC, to come out and adjust the posts.

70 Steel i Support Beam $79.00 $5,530.00
Install new coated 4in steel support I beam.

450 12 Mil Crawl Space Liner $6.25 $2,812.50
Crawl Space Encapsulation
-12 Mil cross woven polyethylene
-Sealed seams and penetrations
-25 year warranty against rips and tears only.

450 Dimpled Drainage Matting $1.65 $742.50
Dimpled membrane used with encapsulation liner to divert water from
wall into drainage system below.

Total

Page 1 of 4
Page 30 of 222
Proposal
Number 1777

Project Manager: Cody Markward Date Aug 14, 2024

Qty Description Unit Ext Photo

Total $23,425.00
Thank You!

Page 2 of 4
Page 31 of 222
Terms

Terms & Conditions: Bid valid for 30 days.

Responsibility for Damage: Customer assumes all responsibility for damage due to breakage of any hidden fuel/utility service lines
AND IRRIGATION SPRINKLERS.

Site Preparation: You are responsible for moving objects from the walls which may also include – but are not limited to -- water
heater, well tank, furnace, washer/dryer, well pump, toilet, shower, sink, etc. the distance(s) specified in this Contract. You are
responsible to ensure electrical power and water is turned on and available for FS to use during the installation process. Additional
costs will be incurred by You if water and power are not available. THERE WILL ALSO BE ADDITIONAL COSTS CHARGED FOR
ITEMS NOT MOVED AS SPECIFIED IN THE CONTRACT.

Page 3 of 4
Page 32 of 222
Terms

Permits: Permits are not included unless otherwise stated. If any permits, engineered drawings, or land surveys are required, You are
responsible to cover the additional cost and administrative fees.

Mold Disclaimer: Whether or not a home experiences model growth may depend largely on how the Customer manages and
maintains the home. Customer understands and agrees that FS does not warrant against the presence of mold in the Property. FS
will not be responsible for any damages caused or allegedly caused by mold including -- but not limited to -- property damage, lost
value, or any adverse health effects or conditions. All implied warranties, including any implied warranty of workmanlike construction,
any implied warranty of habitability, or any implied warranty of fitness for a particular purpose, are waived and disclaimed by
Customer to the fullest extent permitted by law, and Customer agrees to indemnify, defend, and held FS harmless for any mold in the
Property. This duty to indemnify, defend, and hold harmless shall survive the completion of the Work and shall not be deemed
merged with the tender of final payment for the Work. REGARDLESS OF HOW MOLD MAY GROW IN THE RESIDENCE, YOUR
WARRANTIES DO NOT OFFER YOU ANY WARRANTY REGARDING MOLD AND POTENTIAL DAMAGE OR HARM FROM MOLD.
IT IS THE SOLE DUTY AND RESPONSIBILITY OF THE CUSTOMER OF THE RESIDENCE TO INSPECT FOR AND PREVENT
MOLD IN THE HOME FOR AS LONG AS CUSTOMER OWNS THE HOME

Successors and Assigns: You may not assign Your duties or obligations under this Contract without written consent of FS. The
provisions of this Contract are binding on Your successors or assigns.

Foundation Specialist Option to Cancel: Foundation Specialist may cancel this Contract at any time at our sole discretion.

Job Pictures: Unless otherwise expressed, Foundation Specialist can use all job pictures for marketing purposes and promotional
purposes.

If accepting, please sign below: Date:______/____2024

Signature

Page 4 of 4
Page 33 of 222
Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: September 24, 2024 Title: Equipment Replacement – Front-end
Loader

Submitted by: Joe Buthker, DPW Superintendent Department: Public Works

Brief Summary:
Staff is requesting authorization to purchase a Caterpillar front-end loader from Michigan CAT for
$230,706.76.

Detailed Summary & Background:
DPW staff use front-end loaders daily to complete a variety of important tasks throughout the City.
These tasks include loading trucks with road salt and road repair materials, assisting construction
projects and cleanups throughout the City, removing sand from the streets at the beach, managing
the sludge at the Water Filtration Plant, and much more.

With approval from the City Commission, a new Caterpillar 938M front-end loader will be purchased
to replace a heavily-used front-end loader that was acquired in 2012. This purchase from Michigan
CAT is under the Sourcewell contract at a cost of $277,706.76. Sourcewell is a nationwide purchasing
collective that pubically bids items and offers the lowest bid price to member organizations. The
Caterpillar front-end loader being replaced will be traded-in for a credit of $47,000, resulting in a net
cost of $230,706.76. This purchase is part of the Equipment Fund capital purchase plan and is a
budgeted expenditure for FY 2024-25.

Goal/Focus Area/Action Item Addressed:

Key Focus Areas:
Sustainability in financial practices and infrastructure

Goal/Action Item:
2027 Goal 4: Financial Infrastructure

Amount Requested: Budgeted Item:
$230,706.76 Yes X No N/A

Fund(s) or Account(s): Budget Amendment Needed:
Equipment Fund (661-563-977) Yes No X N/A

Recommended Motion:
I move to authorize staff to purchase a new front-end loader from Michigan CAT for $230,706.76.

Approvals: Guest(s) Invited / Presenting:
Immediate Division X

Page 34 of 222
Head No

Information
Technology
Other Division Heads
Communication
Legal Review

Page 35 of 222
Quote 128892-03

August 27, 2024

CITY OF MUSKEGON PURCHASING DEPT
1350 E KEATING AVE
Muskegon, Michigan 49442

Thank you for this opportunity to quote Caterpillar products for your business needs. We are pleased to quote the following for your
purchase consideration.

One (1) New Caterpillar Model: 938M Wheel Loader with all standard equipment in addition to the additional specifications listed
below:

STOCK NUMBER: 86983 SERIAL NUMBER: P5K04585 YEAR: 2024 SMU: 3

MACHINE SPECIFICATIONS
938M WHEEL LOADER
ELECTRONICS AR
HYDRAULIC AR
INSTALLATION AR
POWER TRAIN AR
CHASSIS AR
ANTIFREEZE, -50C (-58F)
AUTOLUBE
CAB, DELUXE
COUNTERWEIGHT,4431LBS,AGG,8PCS
DIFFERENTIAL, OPEN REAR
ENGINE
ENVIRONMENT, MEDIUM DEBRIS
FENDERS, FULL COVER
HYDRAULIC OIL, STANDARD
HYDRAULICS, 3V, CPLR READY, HL
HYDRAULICS, STANDARD
JUMPER LINES, AUX 3RD, FUSION
LIGHTS, ROADING, HALOGEN, RH
LINES, AUX 3RD, HIGH LIFT
PREP PACK, UNITED STATES
PRODUCT LINK, CELLULAR PL641
QUICK COUPLER, FUSION
RIDE CONTROL
SEAT, DELUXE
STANDARD RADIO (12V)
STEERING, STANDARD
TIRES, 20.5R25 MX XTLA * L2
TOOLBOX AUX, NONE
WEATHER, COLD START 120V
LIGHTS, AUX, HALOGEN
BUCKET-GP, 3.8 YD3, FUS, BOCE

Page 1 of 2

Page 36 of 222
Quote 128892-03

WARRANTY & COVERAGE
Standard Warranty: Standard Warranty New CAT Machines - 12 Months Unlimited Hours Full Machine.

Sell Price $277,706.76

Sourcewell Contract 011723-CAT

TRADE-INS
Trade
Model Make Serial Number Year
Allowance
CATERPILLAR
930K RHN01729 2013 $47,000.00
(CATERPILLAR)

Thank you for your interest in Michigan CAT and Caterpillar products for your business needs. This quotation is valid for 30 days, after
which time we reserve the right to re-quote. If there are any questions, please do not hesitate to contact me.

Sincerely,

Jim Langbeen
Machine Sales Representative
Michigan CAT
Jim.Langbeen@MICHIGANCAT.com
616-292-3610

Page 2 of 2

Page 37 of 222
Caterpillar 938M
Front-end Loader

Page 38 of 222
Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: September 24, 2024 Title: MDOT Trunkline Maintenance Contract
Renewal

Submitted by: Dan VanderHeide, Public Works Department: Public Works
Director

Brief Summary:
Staff requests approval to enter into a five-year contract with the Michigan Department of
Transportation (MDOT) to authorize the City to maintain and to receive reimbursement for
maintaining, state trunklines such as M-46 (Apple Avenue) and US-31BR (Shoreline Drive) within the
City limits.

Detailed Summary & Background:
The City DPW has long maintained the state trunklines within our City limits. This helps the City have
more control over the level of maintenance provided on those trunklines while allowing the City to be
reimbursed for the costs by the state. The arrangement is covered by a contract with the state which
is included herein and is recommended for approval. This extension will cover the arrangement
through the state's fiscal year ending September 30, 2029. The format is of the standard form that has
been used for this contract in the past.

Goal/Focus Area/Action Item Addressed:

Key Focus Areas:
Foster strong ties among government and community agencies

Goal/Action Item:
2027 Goal 1: Destination Community & Quality of Life - Improved transportation connections
throughout the community

Amount Requested: Budgeted Item:
N/A Yes No N/A X

Fund(s) or Account(s): Budget Amendment Needed:
204 (State Trunklines) Yes No N/A X

Recommended Motion:
Approve staff to enter into a five-year contract with the Michigan Department of Transportation
(MDOT) to authorize the City to maintain and to receive reimbursement for maintaining, state
trunklines such as M-46 (Apple Avenue) and US-31BR (Shoreline Drive) within the City limits.

Approvals: Guest(s) Invited / Presenting:
Immediate Division X
Head No

Page 39 of 222
Information
Technology
Other Division Heads
Communication
Legal Review

Page 40 of 222
CONTRACT NO. 2024-0366
REGION: GRAND
AGENDA: DAB

MICHIGAN DEPARTMENT OF TRANSPORTATION

STATE TRUNKLINE MAINTENANCE CONTRACT

CITY OF MUSKEGON

This Contract made and entered into by and between the Michigan Department of Transportation
(MDOT), and the City of Muskegon, a Michigan municipal corporation (Municipality).

RECITALS:

MDOT is authorized by 1925 PA 17 Section 2, MCL 250.62 to contract with the Municipality for
the construction, improvement, or maintenance of state trunkline highways and appurtenant
facilities. MDOT, subject to the approval of the State Administrative Board; and

MDOT has affirmatively found that contracting with this Municipality for the maintenance of state
trunkline highways and bridges within its contract area, is in the best public interest: and

MDOT has so advised the State Transportation Commission and the Appropriations Committees
of the Senate and House of Representatives in accordance with 1951 PA 51 Section 11c, MCL
247.661c; and

The parties agree as follows:

SECTION 1. SCOPE OF WORK

A. Services Provided: For the term of this Contract, the Municipality agrees to maintain the
state trunk line highways and, if applicable, appurtenant facilities within the Contract Area
by performing maintenance work. Maintenance work will be performed under the direction
of the Region Engineer of MDOT or a designee of the Region Engineer, acting under the
general direction of the Engineer of Transportation Systems Management and Operations
(TSMO) of MDOT. Work performed under this Contract will be performed in accordance
with accepted maintenance practices and/or specifications provided by MDOT as identified
in a written Letter of Understanding. For maintenance work not covered by the Field
Activity Budget, a Transportation Work Authorization (TWA) will be issued by the Region
Engineer.

1. A written Letter of Understanding shall be drafted by MDOT and signed by both
MDOT and the designated representative of the Municipality. The letter shall
remain in effect until either replaced or modified by the Region Engineer and
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Page 41 of 222
approved by the Municipality. The letter will outline the number and type of
maintenance activities to be performed under this Contract (A sample Letter of
Understanding is attached as Appendix F). The Letter of Understanding shall
provide sufficient detail of the work activities to be performed, expectations or
outcomes from the performance of this work, and identification of budget line items
for budgeting and billing purposes. Attachment G (Municipality Firm Unit Prices)
and H (Municipality Snow Hauling Calculation Form) will be attached to the Letter
of Understanding.

2. The executed Letter of Understanding and all subsequent approved revisions
thereto, are incorporated herein by reference as if the same were repeated in full
herein.

3. If the Municipality is unable to perform any of the services outlined in the Letter of
Understanding on a twenty-four (24) hour, seven (7) day-a-week basis, the
Municipality will immediately notify MDOT. MDOT will work with the
Municipality to ensure that the services defined in the Letter of Understanding are
performed.

4. The Municipality and MDOT may agree to include additional maintenance items
to be covered under this Contract. Such items may include, but are not limited to,
maintenance of traffic control devices (signals), freeway lighting and intelligent
traffic systems (ITS). All such work will be listed in the Letter of Understanding,
as set forth in Appendix F, included in the line item budget and defined in a
supplemental scope.

5. The Municipality shall be responsible for providing all traffic control necessary to
complete the work as outlined in this Contract unless otherwise agreed to by
MDOT.

6. The Municipality and MDOT may enter into separate agreements for the shared
payment of installation, maintenance, and energy costs for traffic control devices.

B. Specifications and Performance: The Municipality will provide personnel, equipment,
materials, and facilities to perform the maintenance work under the terms of this Contract
in a manner consistent with MDOT’s established guidelines for winter and non-winter
maintenance activities.

The Municipality shall perform all maintenance work under this Contract in accordance
with accepted maintenance practices and/or specifications provided by MDOT and in
accordance with the approved Budget and annual Work Plan.

When MDOT recognizes that a certain maintenance activity, is not in compliance with
accepted maintenance practices and/or specifications, it will, within sixty (60) days of the
billing of work, issue a written notice to the Municipality. Upon issuance of the first written
notice, MDOT will work with the Municipality to develop a corrective action plan. Once
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both MDOT and the Municipality are satisfied with the corrective action plan, MDOT and
the Municipality will approve the plan for implementation. MDOT will reimburse the
Municipality for the cost of the non-compliant work. Once the corrective work is
completed in accordance with the corrective action plan, the Municipality will submit the
cost for the corrective work for full reimbursement by MDOT. The Municipality agrees
that if corrective work is not in accordance with the corrective action plan, the Municipality
will not invoice MDOT for the non-compliant corrective work.
If MDOT determines that the corrective work is not in compliance with the corrective
action plan, within thirty (30) days it will issue a second written notice to the Municipality
describing the unacceptable corrective work, the reason for rejection, and include a written
copy of MDOT’s maintenance practices and/or specifications, if applicable. Work not
meeting the corrective action plan will be corrected by the Municipality in accordance with
the second written notice and the previously approved corrective action plan, without
additional charge to MDOT. If MDOT, upon completion of the Municipality’s second
attempt to correct the non-compliant work, determines that the work is still not in
compliance, MDOT will have the non-compliant work corrected by other means at
MDOT’s expense and the Municipality will reimburse MDOT for such expense through
Maintenance Local Agency Payment System (MLAP). If there is a disagreement between
MDOT and the Municipality regarding whether or not the corrective work meets MDOT’s
maintenance practices and/or specifications, the Municipality may request the Dispute
Resolution Process as outlined in Section 26.

C. Permits: At the request of the Region Engineer, the Municipality may agree to inspect
work performed by permit or otherwise assist MDOT with permits. In such event:

1. MDOT will require all Permit Applicants to “save harmless” the State of Michigan,
Transportation Commission, MDOT, and all officers, agents, and employees
thereof, and the Municipality, their officials, agents, and employees, against any
and all claims for damages arising from operations covered by the permit as a
condition of all permits issued by MDOT.

2. MDOT will further require Permit Applicants to provide Commercial general
liability insurance, including coverage for contractual liability, completed
operations, and/or product liability, X (Explosion), C (Collapse), & U
(Underground), and a contractor’s protective liability policy with a blasting
endorsement when blasting is involved, or Commercial general liability insurance
which includes all the above, naming as additional parties insured on all such
policies, the State of Michigan, Transportation Commission, MDOT, and all
officers, agents, and employees thereof, the Municipality their officials, agents, and
employees. The Permit Applicant will provide written proof of the insurance to
MDOT. MDOT may waive this requirement for permits issued to governmental
entities or public utilities.

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3. The amounts of such insurance will be no less than:

Commercial General Liability Insurance:

The minimum limits shall be $1,000,000 each occurrence and $2,000,000
aggregate.

Combined single limit for bodily injury and property damage liability shall be
$1,000,000 each occurrence.

The insurance limits above may be attained through an umbrella policy.

D. Transportation Work Authorizations: TWA’s may be issued by the Region Engineer for
both Maintenance work and non-maintenance work. This work may be performed by the
Municipality, or a subcontractor as set forth in Section 9 of this Contract. TWA’s will be
performed in accordance with MDOT’s accepted maintenance practices and specifications
and as required in the TWA. The Municipality will provide the necessary supervision or
inspection to ensure that the work is performed in accordance with the TWA. In the event
the Region Engineer finds the work performed not in compliance with MDOT’s accepted
maintenance practices or the specifications on the TWA, then the corrective action
specified in Subsection 1 (B) will be followed.

E. The Region Engineer is authorized to issue written orders, as necessary, for the
performance of maintenance work under the provisions of this Contract.

SECTION 2. RESERVED FOR FUTURE USE

SECTION 3. INTEGRATION OF STATE AND MUNICIPAL WORK

The Municipality will furnish qualified personnel and adequate equipment and may furnish
materials, as set forth in this Contract, as needed to perform maintenance on state trunkline
highways, consistent with MDOT’s established core level of service for winter and non-
winter maintenance activities, an approved annual budget, work plan, and work schedule.
Personnel and equipment may be used on the local road system and state trunkline
highways as conditions warrant.

SECTION 4. HIGHWAY MAINTENANCE CONTRACT ADMINISTRATOR

The Municipality hereby designates Dan VanderHeide. as Contract Administrator on state
trunkline highways, who will be responsible for budget and the administration of the
Contract. The Municipalities’ title for this position is Director of Public Works. In the
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event the Municipality desires to replace the Contract Administrator, the Municipality will
notify MDOT within (30) days of the change in writing.

SECTION 5. SUPERVISION

The Municipality hereby designates Vern Berndt or others functioning in the same capacity
as Highway Maintenance Foremen, hereinafter referred to as the “Foremen”, who will
oversee all work covered by this Contract and be responsible to the Contract Administrator.
The Municipality will notify MDOT in writing within (30) days of any change in the above
personnel. The Municipality will be reimbursed for actual time worked by the Foremen
on state trunkline Highway maintenance when supported by daily timecards signed by their
immediate supervisor or electronic timekeeping approved by their assigned supervisor
subject to the provisions of Subsection 16(B).

SECTION 6. WAGE SCHEDULE

Wages paid by the Municipality for work on state trunkline highways will be the same as
on street work for the Municipality. A copy of the union agreement or HR Wage Schedule
will be provided to MDOT upon request.

No “stand by at home” pay will be included in charges for work on state trunkline
highways.

MDOT will reimburse the Municipality for Direct Labor Overhead costs on all labor costs
properly chargeable to MDOT, including but not limited to, vacation, sick leave, holiday
pay, workers’ compensation, retirement, social security, group life insurance,
hospitalization, longevity, unemployment insurance, and military leave, hereinafter
referred to as “EMPLOYEE BENEFITS,” in accordance with Section 16.

SECTION 7. MATERIALS TO BE ACQUIRED AND SPECIFICATIONS

Material necessary for the performance of this Contract, may be purchased by the
Municipality unless otherwise directed by the Region Engineer. The Municipality will
advertise and receive competitive bids when such purchases exceed Ten Thousand Dollars
($10,000.00), or if required by federal or state law. The Municipality shall select the lowest
qualified bid.

The Municipality will retain documentation that such bids were taken. Failure to retain
documentation that such bids were taken may result in denial of reimbursement of the costs
of such materials.

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The following materials: bituminous pre-mixed materials, bituminous materials,
aggregates (except ice control sand), bulk salt and traffic control devices used on state
trunkline highways by the Municipality, will conform to current or supplemental
specifications of MDOT, unless otherwise approved in advance by the Region Engineer.
The Region Engineer may require approval by MDOT’s Construction Field Services
Division, or by a laboratory approved by the Construction Field Services Division. Copies
of approvals will be placed on file in the offices of the Municipality and the Region
Engineer. If MDOT-owned materials are stored jointly with Municipality-owned materials,
proper and adequate inventory records must be maintained by the Municipality clearly
indicating the portion that is MDOT-owned.

SECTION 8. PRICE SCHEDULE OF MATERIALS AND SERVICES

Materials produced and/or supplied by the Municipality may be furnished at a firm unit
price subject to approval of source and price by the Region Engineer. Firm unit prices are
not subject to unit price adjustment by review/audit. The term “review/audit” hereafter
will be referred to as “review”.

The Municipality may change, add, or delete firm unit prices when requested in writing
and approved by the Region Engineer at least sixty (60) days prior to the effective date of
the change, addition, or deletion. All changes will be submitted with the Firm Unit Prices
form, Appendix G.

_ X No, Firm Unit Price items will not be used.

_ Yes, Firm Unit Price items will be used.

MDOT may review all records necessary to assess the accuracy of the material quantities
for all materials on the Firm Unit Price List for which the Municipality requests
reimbursement.

Items purchased from a vendor source or vendor stockpile for direct use on the state
trunkline highways are not eligible for firm unit price consideration and should be billed at
vendor pricing.

Reimbursement for all materials supplied by the Municipality which are not included in
the firm unit price schedule will be reimbursed in accordance with Section 16(E). MDOT
may review all records for materials purchased from a vendor source or vendor stockpile
for direct use on state trunkline highways.

SECTION 9. SUBCONTRACTS

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The Municipality may subcontract any portion of the work to be performed under this
Contract. Bidding/price solicitation and subcontracts will comply with applicable law and
conform to the Municipality’s contracting process except as modified herein. All
subcontracted work will require the Municipality to submit a Quotation Request for
Services or Equipment (Form 426) along with relevant bid and contract documents and bid
or quote tabulation.

All subcontracted work will be performed in accordance with the established Scope of
Work outlined on Form 426 and any specifications developed by the Municipality and/or
MDOT for the subcontracted work. The scope of work and any specifications must be
approved by the Region Engineer. The Municipality will provide the necessary supervision
or inspection to assure the subcontracted work is performed in accordance with the scope
of work and specifications. At no time will the Municipality pay for subcontracted work
until the work has been inspected and approved by the Municipality for compliance with
the scope of work and specifications.

Emergency work will be subcontracted based on a verbal approval given by the Region
Engineer. The work must be supported by the submission of a Form 426 and summary of
emergency work within 15 days of completion.

The parties agree to extend the terms of the Contract if subcontracted work is incomplete
at the conclusion of the Contract term. This provision shall not apply if this Contract is
terminated by the Municipality or MDOT. In situations where this Contract is terminated
by the Municipality or MDOT, all subcontracts shall be deemed terminated as of the date
the Contract is terminated. The Municipality must incorporate this provision into all
subcontracts.

County and/or Municipality-based advantage programs, hereinafter the “CBA Process”, or
any type of preference program which awards contracts based on criteria other than low
bid through the competitive bidding process, may not be used for any work under this
Contract.

Failure to obtain the necessary approvals or to retain the documentation that the bids,
prices, or rate quotations were solicited as required in this section may result in a denial of
the reimbursement of the costs.

The term of any subcontract will not exceed five (5) years including any extensions.

For subcontracts involving the items of Drainage Structure Cleanout, Curb Sweeping, and
Area Mowing, the Municipality will include a cancellation clause that will allow the
Municipality to cancel the subcontract if funds are not made available by MDOT.

All Subcontracts shall be awarded to the lowest qualified bid. Subcontract solicitation and
approval process will be as follows:

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A. Subcontracts less than $25,000: The Municipality will solicit either a bid price, or rate
quotation from three or more qualified sources. Documentation of solicitation from all
qualified sources must be retained. Region Engineer approval of Form 426 is required.

B. Subcontracts $25,000 or greater: The Municipality will advertise and award by
competitive bid. Advertisements must clearly define the scope of work, performance
specifications, MDOT contract terms, and the location of work to be performed.
Documentation of the solicitation from all qualified sources must be retained. Region
Engineer approval of Form 426 is required.

State Administrative Board requirements for Contracts and Amendments (previously
referred to as overruns, extra work and adjustments), are outlined and set forth in Appendix
E, attached hereto and made a part hereof.

SECTION 10. NON-DISCRIMINATION

In connection with the performance of maintenance work under this Contract, the
Municipality (hereinafter in Appendix C referred to as the “Contractor”) agrees to comply
with the State of Michigan provisions for “Prohibition of Discrimination in State
Contracts,” as set forth in Appendix C, attached hereto and made a part hereof. The
Municipality further covenants that it will comply with the Civil Rights Act of 1964, being
P.L. 88-352, 78 Stat. 241, as amended, being Title 42 U.S.C. Sections 1971, 1975a-1975d,
and 2000a-2000h-6 and will require similar covenants on the part of any contractor or
subcontractor employed in the performance of this Contract.

SECTION 11. ANTI-KICKBACK

No official or employee of the Municipality or of the State of Michigan will receive
remuneration (directly or indirectly) for the purchase of materials, supplies, equipment, or
subcontracts in connection with the performance of this Contract.

SECTION 12. SCOPE OF CONTRACT

It is declared that the work performed under this Contract is a governmental function which
the Municipality performs for MDOT. This Contract does not confer jurisdiction upon the
Municipality over the state trunkline highways encompassed by this Contract or over any
other state trunkline highways. This Contract may not be construed to confer temporary
or concurrent jurisdiction upon the Municipality over a state trunkline highway. Nothing
inconsistent with the underlying statutory jurisdiction, duties, prerogatives, and obligations
of MDOT is herein intended. The parties hereto further declare that this Contract is not
made for the benefit of any third party.
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SECTION 13. INSURANCE

A. The Municipality will furnish MDOT with a certificate of automobile liability insurance,
which complies with the No-Fault Automobile Insurance laws of the State of Michigan,
MCL 500.3101, et seq. The Insurance coverage will include vehicles owned, leased or
rented by the Municipality. Such insurance will not be less than Two Hundred and Fifty
Thousand Dollars ($250,000.00) for bodily injury or death of any one person. Coverage
for public liability, property damage, and combined single limit will also comply with the
No-Fault Automobile Insurance laws of the State of Michigan. The Municipality will
provide thirty (30) days’ notice to MDOT prior to cancellation, termination, or material
change of the policy. The certificate of said insurance, on MDOT Form 428 (Certificate
of Insurance for State Highway Maintenance Contract) covering public liability and
property damage, indicating thereon the policy number, and the aforesaid thirty (30) days’
notice provisions and the limits of liability, will be submitted to MDOT. The Municipality
agrees to review its insurance programs with its statewide association in an effort to obtain
cost savings and efficiency for MDOT.

If the Municipality is self-insured, a copy of the Secretary of State’s Certificate of Self-
insurance will be submitted.

B. In the event the Municipality receives a Notice of Intent to File Claim and/or any complaint
filed by a person seeking to recover damages from the Municipality for its alleged acts or
omissions on a state trunkline highway, the Municipality will provide a copy of such notice
to the Assistant Attorney General, within fifteen (15) days of receipt of said notice or
complaint. The Notice of Intent to File Claim and/or any complaint filed by a person
seeking to recover damages from the Municipality will be sent to:

Assistant Attorney General
Division Chief
Transportation Division
Van Wagoner Building - 4th Floor
425 West Ottawa Street
P.O. BOX 30050
Lansing, Michigan 48909

Thereafter, the Municipality will provide copies of pleadings and other information
regarding the claim or lawsuit when requested by an Assistant Attorney General

SECTION 14. WORKERS’ DISABILITY COMPENSATION

The Municipality will comply with the Michigan Workers’ Disability Compensation Act,
MCL 500.3400, et seq. for all employees performing work under this Contract.
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SECTION 15. BUDGET

Each MDOT fiscal year, the Region Engineer will prepare separate budgets for winter and
non-winter maintenance in accordance with MDOT guidelines. The Region Engineer, in
consultation with the Municipality, shall develop an annual Work Plan which shall include
non-winter maintenance activities, a proposed schedule, and the estimated cost for such
activities. The sum of those estimated costs will constitute the non-winter Budget and will
be distributed monthly in accordance with the proposed schedule.

MDOT agrees that, once established, the fiscal year non-winter maintenance will not be
reduced, except as otherwise provided in this Contract. The Budget for winter
maintenance activities will be based on a five-year (5) average of winter expenditures
which includes the costs for labor, fringe benefits, equipment, MDOT Salt Stores,
Municipality-supplied road salt, winter sand, other de-icing chemicals and overhead.
Notwithstanding the foregoing, MDOT will establish a statewide holdback fund amount
not to exceed thirty percent (30%) of the five (5) year winter average. The statewide
holdback funds will be used to cover Winter Overruns of the Municipality, other contract
road agencies, and MDOT direct forces. The statewide holdback funds will also be used
to pay any budget review adjustments owed to contract agencies. MDOT will distribute
any remaining funds in the statewide holdback to contract agencies and MDOT direct
forces based on a prioritization of statewide non-winter maintenance needs.

The Region Engineer and the Municipality will review the non-winter maintenance Budget
together at least every other month. Any adjustments to the proposed work plan to curtail
or expand operations will be addressed in this Budget review. During winter operations,
the winter Budget will be reviewed by the Region Engineer and the Municipality every
month to conduct the same review.

MDOT and Municipality will meet between March 1 and May 15 of each fiscal year to
develop a supplemental summer program. The supplemental summer program will be
funded by the remainder of the winter Budget, if any. The work activities proposed in the
supplemental summer program will be prioritized to support MDOT’s preservation
strategy. The remainder of the winter Budget will be released to the Municipality two
weeks after the final bill is received by MDOT covering the winter season as defined in the
Winter Letter of Understanding.

If the Municipality’s winter overruns (including benefits and overhead) exceed MDOT’s
winter budget and holdback funds statewide, MDOT will seek additional funding to
address the overruns including a supplemental appropriation from the State Budget Office.
MDOT reserves the right to reduce the non-winter maintenance Budget if efforts to secure
additional funding are unsuccessful.

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SECTION 16: REIMBURSEMENT SCHEDULE

MDOT will reimburse the Municipality for costs incurred in the performance of the work
covered by this Contract, except as set forth in Sections 18, 19, 20, and 21. To be eligible
for reimbursement under this Section, costs must be submitted to MDOT’s Maintenance
Local Agency Payment (MLAP) system prior to the start of the review for each respective
year of the Contract period.

A. Requests for reimbursement shall be made through MLAP at least bi-monthly (every other
month) on the basis of certified statement of charges prepared and submitted by the
Municipality within fifteen (15) days from the end of each bi-monthly period. Costs
submitted beyond sixty (60) days from the end of each bi-monthly period will include
written justification for the delay and will be paid only upon approval of the Region
Engineer. Municipalities with a line-item budget contract of $100,000 or greater shall
submit request for reimbursement on a monthly basis.

B. MDOT will reimburse the Municipality for the cost of all labor employed in the
performance of this Contract. The reimbursement will include the expense of permit
inspections, field and office engineering, and reviewing expenses in connection with force
account work by subcontractors.

C. MDOT will reimburse the Municipality for the cost of MDOT’s share of the cost of
EMPLOYEE BENEFITS as referred to in Section 6 as a percentage of payroll. The
percentage shall be developed using MDOT Form 455M (Report of Employee Benefit
Costs for the Municipality) and shall conform with the general accounts of the Municipality
on the Municipality’s previous fiscal years’ experience. These charges are subject to
review in accordance with Section 25.

D. MDOT will reimburse the Municipality for the cost of MDOT’s share of the actual cost of
Municipality owned or purchased energy.

E. MDOT will reimburse the Municipality for the cost of purchased bulk (measured by
volume or weight) materials and Non-Bulk (measured by area or count) material used in
the performance of this Contract. The Municipality shall deduct all discounts or rebates in
excess of two percent (2%), to establish the reimbursed cost.

F. MDOT will reimburse the Municipality for the cost of handling materials furnished by the
Municipality and materials furnished by MDOT as follows:

1. Bulk Items (measured by volume or weight):
The direct expenses of handling, such as unloading, processing, stockpiling,
heating, or loading for materials in bulk, bags or drums such as aggregates,
bituminous materials and chemicals, on condition that reimbursement of such
expenses is not provided elsewhere herein, and these costs can be identified within
the records of the Municipality. When bulk items intended for use on the state
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trunkline are co-mingled with the Municipality’s materials for their local roads,
MDOT will only reimburse the Municipality for the cost of handling the portion
expected to be used on the state trunkline highways. The Municipality will
establish a rate of use annually, based on the previous year’s use to identify
MDOT’s share of handling cost. The Municipality’s established rate is subject to
adjustment by review.

2. Non-Bulk Items (measured by area or count):
A five percent (5%) handling and storage charge may be added to the purchase
price of all materials measured by area or count provided such materials are stocked
in and distributed from approved storage facilities. When reported by the
Municipality, charges for handling and storage in excess of five percent (5%) will
be reimbursed to the Municipality upon review, provided that these charges can be
identified and supported within the records of the Municipality.

G. Equipment owned by the Municipality will be reimbursed at the established rental rates
found in Schedule C, Report 375 Equipment Rental Rates, issued annually by MDOT.
Rented equipment will be reimbursed at actual cost for the equipment rental.

H. MDOT will reimburse the Municipality for the amounts paid by the Municipality to a
subcontractor as set forth in Section 9.

I. MDOT will reimburse the Municipality for the cost of labor, materials, and equipment
rental incurred in connection with engineering, supervision, and inspection of subcontract
work.

J. Overhead in Accordance with Attached Overhead Schedule.

MDOT will reimburse the Municipality for overhead costs at the appropriate percentage
rate as indicated in Appendix B. The overhead rate shall be based upon the original annual
budget established for the Municipality and shall not change.

The overhead amount payable under Section 16(I) is reimbursement to the Municipality
for all costs and expenses arising out of the performance of this Contract not specifically
described in other sections of this Contract. This reimbursement includes salary and
expenses (including transportation) of the Foreman (except as noted in Section 16(K)),
salaries of clerical assistants, including radio communication staff, office expense, storage
rentals on Municipality owned property, and the cost of small road tools. Work tools
without a power assist and used in a road or a bridge maintenance activity, are considered
small road tools. Small road tools do not have an equipment rental rate listed in Schedule
C, Report 375, Equipment Rental Rates. Small road tools are reimbursed as an overhead
cost.

K. MDOT will reimburse the Municipality for MDOT’S pro-rata share of the cost to maintain
chemical storage facilities as provided for in the chemical storage facility contracts
between the Municipality and MDOT.

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L. The Municipality will be reimbursed as a direct cost for work performed by the Foreman
making regular inspections of state trunkline highways in accordance with written
instructions from the Region Engineer. This time shall be specifically recorded on daily
time sheets and reported as a direct labor charge.

It is further agreed that in smaller municipalities, the Foreman designated above may at
times be engaged in tasks other than those of a strictly supervisory nature, such as operator
of a truck or other highway equipment. The Municipality may be reimbursed for this time
worked on state trunklines, provided that all such time for non-supervisory work is
specifically recorded on the daily time sheet and reported on the Maintenance Payroll
Report Form 410A. The exact dates on which the Maintenance Superintendent so worked,
the number of hours worked, and the number of hours worked under each classification
shall be indicated on the Maintenance Payroll Report Form 410A. The completed Form
410A shall be uploaded to MDOT’s MLAP system.

SECTION 17: ELECTRONIC FUNDS TRANSFER

Public Act 533 of 2004 requires that payments under this Contract be processed by
electronic funds transfer (EFT). The Municipality is required to register to receive
payments by EFT at the SIGMA Vendor Self Service (VSS) website
(www.michigan.gov/SIGMAVSS).

SECTION 18: SNOW HAULING

MDOT will share in the cost of snow hauling if each snow hauling effort is approved by
the Region Engineer. The frequency (annually, each storm, etc.) will be at the discretion
of the Region Engineer and will be detailed in the Letter of Understanding. The
Municipality should denote snow hauling charges as Activity 149, Other Winter
Maintenance, on Trunk Line Maintenance Reports. Prior written authorization from the
Region Engineer shall be required for each snow haul event outside the parameters in the
Letter of Understanding and shall be kept on file for review purposes.

MDOT’S share of snow hauling will be calculated on the Municipality Snow Hauling
Calculation Form, Appendix H. The completed form will be submitted to the Region
Engineer. The snow hauling percentage will be based on the ratio of the width of area
designated for traffic movement to the width of the total area agreed upon for snow hauling.
MDOT is not responsible for snow removal in parking lanes or sidewalks and will subtract
the area of parking lanes and sidewalks from the total area of the state trunkline highway
right-of-way to determine the area designated for traffic movement.

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MDOT’S reimbursement for snow hauling from state trunkline highways will be paid at
the below percent of actual charges supported by proper documentation.

_67_ percent (%)

The Municipality agrees that it will prohibit additional snow from being deposited on the
highway right-of-way from side streets.

SECTION 19: PAVEMENT MARKING

Compensation for the item of Special Markings Paint & Tape will be made on the basis of
actual expenditure only, except in no case will the Municipality be compensated for a total
expenditure in excess of the amount designated for Special Markings Paint & Tape in the
Line Item Budget for the appropriate MDOT fiscal year. Compensation for Special
Markings Paint & Tape is limited to only painting authorized by the Region Engineer. The
Municipality shall not include charges for curb painting in the routine maintenance cost for
state trunkline maintenance.

SECTION 20: COMPENSATION FOR AESTHETIC WORK ITEMS

Compensation for the items of Curb Sweeping, Area Mowing and Litter Pickup will be
made on the basis of actual expenditures only, except that in no case will the Municipality
be compensated for a total expenditure in excess of the budget amount designated each of
these three work activities on the Summary of the Field Activity Budget for the appropriate
MDOT fiscal year.

The number of work operations for each of these three activities will be agreed upon
between the Municipality and Region Engineer; and reflected in each line activity budget
amount.

SECTION 21: TREES AND SHRUBS

Except for emergency work, the Municipality must request MDOT’S written approval to
remove dead trees and/or trim trees prior to the start of work. MDOT will pay all costs to
remove dead trees. MDOT and Municipality shall equally share costs when state and local
forces combine efforts to trim trees within the trunkline right-of-way as approved by the
Region Engineer.

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SECTION 22: EQUIPMENT LIST

The Municipality will furnish MDOT a list of the equipment it uses during performance
under this Contract, on MDOT form 471 (Equipment Specifications and Rentals.) This
form shall be uploaded to the Files page in MDOT’s MLAP system.

SECTION 23: RECORDS TO BE KEPT

A. The Municipality will establish and maintain accurate records, in accordance with
generally accepted accounting principles of all expenses incurred for which payment is
sought or made under this Contract, said records to be hereinafter referred to as the
“RECORDS.” Separate accounts will be established and maintained for all costs incurred
under this Contract. The Municipality will retain the following RECORDS, and others, in
accordance with generally accepted accounting principles:

1. Retain daily timecards or electronic timekeeping files for employees and equipment
indicating the distribution of time to route sections and work items. Daily timecards
must be signed by the employee, the immediate supervisor and by the timekeeper
when the timekeeper is employed. If the Municipality uses crew-day cards, it will
retain crew-day cards backed by a time record for the pay period signed as above,
in lieu of daily individual timecards detailing the time distribution. If the
Municipality uses electronic timekeeping, it will retain data files detailing time
distribution and assigned supervisor approval.

2. Retain properly signed material requisitions (daily distribution slips) which indicate
type of material, quantity, units of measure, the date of distribution and the
distribution to route sections and work items.

3. Retain additional cost records to support and develop unit cost charges and
percentages as applied to invoice costs. Cost records are not necessary in support
of the overhead percentage or the five percent (5%) handling charge.

B. The Municipality will maintain the RECORDS for at least three (3) years from the date of
MDOT’S receipt of the statement of charges for the quarter ending September 30 of each
year of this Contract period. In the event of a dispute regarding allowable expenses or any
other issue under this Contract, the Municipality will thereafter continue to maintain the
RECORDS at least until that dispute has been finally decided and the time for all available
challenges or appeals for that decision has expired.

The Municipality will maintain all RECORDS supporting equipment usage from the time
of equipment purchase to disposal to support any gain or loss from equipment disposed.
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Representatives of MDOT may inspect, copy or review the RECORDS at any mutually
acceptable time. However, the Municipality cannot unreasonably delay the timely
performance of the review.

SECTION 24: COST CERTIFICATION, REIMBURSEMENT AND ADJUSTMENT

The Municipality hereby certifies that, to the best of the Municipality’s knowledge, the
costs reported to MDOT for this Contract will represent only those items which are
properly chargeable in accordance with the Contract. The Municipality also hereby
certifies that it has read the Contract terms and is aware of the applicable laws, regulations,
and terms of the Contract that apply to the reporting of costs incurred under the terms of
this Contract.

SECTION 25: CONTRACT REVIEW AND RESPONSE

A. The Municipality’s records will be subject to review within the statute of limitations, and
the review period will coincide with the Municipality’s fiscal year, unless the Contract is
terminated or not renewed.

Charges by the Municipality for maintenance of state trunkline highways and authorized
non-maintenance work performed under this Contract will not be adjusted (increased or
decreased) by review after twenty-four (24) months subsequent to the date of MDOT’S
receipt of certified statement of charges for the quarter ending September 30 of each year
of this Contract period. This limitation will not apply in case of fraud or misrepresentation
of material fact or if mutually agreed to in writing.

The firm unit prices for aggregates and bituminous materials that are processed and
furnished by the Municipality will not be subject to adjustment.

If any adjustments are to be made, the Municipality will be notified of the tentative
exceptions and adjustments within the above twenty-four (24) month period. The twenty-
four (24) month period is intended only as a limitation of time for making adjustments and
does not limit the time for payment of such amounts. In the event that a review performed
by or on behalf of MDOT indicates an adjustment to the costs reported under this Contract
or questions the allowability of an item of expense, MDOT will promptly submit to the
Municipality a Notice of Review Results and a copy of the Review Report, which may
supplement or modify any tentative findings communicated to the Municipality at the
completion of a review.

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B. Within sixty (60) days after the date of the Notice of Review Results, the Municipality will
submit to MDOT a written response, hereinafter referred to as the “Response”, to the
Notice of Review Results indicating one of the following options:

1. The Municipality concurs with the Notice of Review Results and will either repay
the amount of any overpayment to MDOT and/or or be reimbursed the amount of
any underpayment by MDOT.

2. The Municipality does not concur with Notice of Review Results. The “Response”
will explain the nature and basis for any disagreement as to a disallowed item of
expense, and/or,

3. The “Response” will include a written explanation as to any questioned item of
expense. The “RESPONSE” will be clearly stated and provide any supporting
documentation necessary to resolve any disagreement or questioned item of
expense. Where the documentation is voluminous, the Municipality may supply
appropriate excerpts and make alternate arrangements to conveniently and
reasonably make that documentation available for review by MDOT. The
RESPONSE will refer to and apply the language of the Contract.

4. The Municipality agrees that failure to submit a RESPONSE within the sixty (60)
day period constitutes agreement with any disallowance of an item of expense and
authorizes MDOT to make a final decision to either allow or disallow any items of
questioned cost.

MDOT will review submitted RESPONSE and attached documentation from the
Municipality. MDOT will reply in writing acknowledging receipt of the
Municipality RESPONSE. The submitted RESPONSE and attached documentation
from the Municipality will be referred to the MDOT Appeal Panel. See Section 26,
“Dispute Resolution Process”.

SECTION 26: DISPUTE RESOLUTION PROCESS

A. Contract Disputes

For review disputes refer to Section 26 (B) below, all other disputes between the parties
shall be resolved under the terms of this section. It is the intent that each party may
communicate concerns relative to the contract and resolve any issues as they arise. After
a contract issue has been resolved, a summary of the agreed upon resolution shall be jointly
drafted and distributed. Some issues may require ongoing communication to resolve and
may become an item for negotiation during the next review and renegotiation of the
Contract.

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If the parties are unable to resolve any dispute, the parties must meet with the Engineer of
TSMO or designee. The following are steps to resolve the dispute without the need for
formal legal proceedings:

1) The representative of the Municipality and MDOT must meet as often as the parties
reasonably deem necessary to gather and furnish to each other all information with
respect to the matter at issue which the parties believe to be appropriate and
germane in connection with the dispute. The representatives shall discuss the
problem and negotiate in good faith in an effort to resolve the dispute without the
necessity of any legal proceeding.

2) During negotiations, all reasonable requests made by one party to another for non-
privileged information reasonably related to the Contract shall be honored in order
that each of the parties may be fully advised of the other’s position.

3) The specific format for the discussions shall be left to the discretion of the
designated Municipality and MDOT representatives but may include the
preparation of agreed upon statement of fact or written statements of position.

4) Statements made by the Municipality or MDOT during Dispute Resolution may not
be introduced as evidence by either party in any judicial action related to or under
this Contract.

5) In cases where disputes have not been resolved, any remaining issues will be
referred to the MDOT Appeal Panel which consists of four Bureau Directors, three
of which will constitute a quorum.

6) Every effort will be made to complete this process within 90 calendar days by both
parties.

B. Review Disputes

For review disputes the submitted “Response” and attached documentation from the
Municipality will be referred to the MDOT Appeal Panel. The Appeal Panel consists of
four Bureau Directors, three of which will constitute a quorum.

1) MDOT will provide the Municipality with an opportunity to appear before the
Appeal Panel to explain and support their Response.

2) After an Appeal Panel written decision, the Municipality will either accept the
decision or file a lawsuit in a court of proper jurisdiction to contest MDOT’s
decision. The filing of a lawsuit must be initiated by the Municipality within thirty
(30) days of the receipt of the Appeal Panel’s written decision. MDOT will not
withhold or offset the funds in dispute if the Municipality files a lawsuit in a court
of proper jurisdiction.

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3) If the Municipality fails to repay an overpayment or reach an agreement with
MDOT on a repayment schedule within the thirty (30) day period, the Municipality
agrees that MDOT will deduct all or a portion of an overpayment from any funds
due the Municipality by MDOT under the terms of this Contract.

4) Every effort will be made to complete this process within 60 calendar days by both
parties.

This section shall not be construed to prevent either party from initiating, and a
party is authorized to initiate, an action for breach of this Contract or for any other
relief allowed by law earlier to avoid the expiration of any applicable limitations
period, to preserve a superior position with respect to the other party, or under
Injunctive Relief below. If a dispute is not resolved through the Dispute Resolution
Process, either party may initiate an action for breach of this Contract, or any other
relief allowed by law in a court of proper jurisdiction. Time periods may be
extended if agreed upon by both parties.

Injunctive Relief

The only circumstance in which disputes between MDOT and the Municipality shall not
be subject to the provisions of this Dispute Resolution Process is when a party makes a
good faith determination that it will suffer irreparable harm due to a breach of the terms of
the Contract by the other party and that a temporary restraining order or other immediate
injunctive relief is the only adequate remedy.

Each party agrees to continue performing its obligations under the Contract while a dispute
is being resolved except to the extent the issue in dispute precludes performance (dispute
over payment must not be deemed to preclude performance) and without limiting either
party’s right to terminate the Contract as provided in Section 28.

SECTION 27: TERM OF CONTRACT

This Contract will be in effect from October 1, 2024 through September 30, 2029.

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SECTION 28: CONTRACT TERMINATION OR EXPIRATION

A. For convenience, MDOT may terminate this Contract by providing written notice to the
Municipality at least two (2) years prior to the beginning of the Contract year to which the
termination, applies.

The Municipality may terminate this Contract by providing written notice to MDOT at
least two (2) years prior to the beginning of the Contract year to which the termination
applies.

In the event either party provides notice of an intent to terminate the Contract as provided
in this subsection, the Contract shall terminate at the beginning of the Contract year
(October 1), two years following the date of the notice. For greater clarity, the parties do
not intend for the Contract to terminate as of the date of the notice. Notwithstanding any
other provision to the contrary, if a party provides notice of its intent to terminate the
Contract as provided in this subsection and the Contract will expire before the two-year
notice period has lapsed, the parties agree that the Contract shall be automatically renewed
and continue in full force and effect until October 1, two years following the date of the
notice.

B. If a new Contract has not been executed by the parties within 120 days following the
expiration of this Contract, this Contract shall be deemed automatically renewed as of the
date of expiration and continue in full force and effect for two years following such date.
After those two years have lapsed, the Contract shall be deemed terminated.

C. Notwithstanding any provision of this Contract to the contrary, upon termination of this
Contract “for cause”, the Municipality must, for a period of time specified by MDOT (not
to exceed 90 calendar days), provide all reasonable transition assistance requested by
MDOT, to allow for the terminated portion of the Contract Activities to continue without
interruption or adverse effect, and to facilitate the orderly transfer of such Contract
Activities to MDOT or its designees. This Contract will automatically be extended through
the end of the transition period.

SECTION 29: STATE OF MICHIGAN ADMINISTRATIVE BOARD RESOLUTION

The provisions of the State Administrative Board Resolution 2017-2, April 25, 2017, are
set forth in Appendix D, attached hereto and made a part hereof.

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SECTION 30: CONTRACTUAL INTERPRETATION

All capitalized words and phrases used in this Contract have the meaning set forth in
Appendix A.

All words and phrases not specifically defined in Appendix A shall be construed and
understood according to the ordinary meaning of the words used, but technical words and
phrases shall have the meanings set forth in MDOT’s publications, manuals, advisories, or
guides, as applicable. If no MDOT publication, manual, advisory or guide is applicable,
such technical words shall be construed and understood according to the usual and accepted
meaning used in the industry or field to which they relate and any words or phrases that
have a specialized meaning in the law, shall be construed and understood according to such
specialized meaning.

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SECTION 31: AUTHORIZED SIGNATURE

This Contract will become binding on the parties and of full force and effect upon signing
by the duly authorized official of the Municipality and of MDOT and upon adoption of a
resolution approving said Contract and authorizing the signature thereto of the respective
official of the Municipality, a certified copy of which resolution will be sent to MDOT
with this Contract, as applicable.

CITY OF MUSKEGON

BY: _______________________________________
TITLE:

MICHIGAN DEPARTMENT OF TRANSPORTATION

BY: _______________________________________
TITLE: MDOT Director

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APPENDIX A

DEFINITIONS

Annual Work Plan: A schedule developed by the Municipality and Region Engineer’s designee
of the routine maintenance work to be performed annually on state trunklines by the Municipality.

Budget: The funds allocated to the Municipality for the fiscal year beginning October 1. Budget
may also be referred to as Annual Budget or Field Activity Budget or Maintenance Budget.

Chemical Storage Facilities: Bulk salt storage buildings.

Competitive Bidding: A procurement process that involves advertising work so that qualified
vendors can submit bids to perform the work. The contract is then awarded to the lowest qualified
bidder.

Contract Administrator: An individual designated by the Municipality responsible for
supervising all work covered under this Contract.

Department: The Michigan Department of Transportation.

Engineer of Transportation System Management and Operations (TSMO): The
Department's designated engineer of TSMO.

Equipment Questionnaire: A report prepared by the Municipality and forwarded to the
Department to substantiate the previous year’s actual equipment costs.

Foremen: A person(s) designated by the Municipality responsible for overseeing all work covered
u n der this Contract and is responsible to the Contract Administrator.

Maintenance Work: Routine activities performed on a regular basis or in response to uncontrollable
events upon the state trunklines. Also includes planned activities to state trunklines to preserve
functional condition and any work authorized by a TWA.

Maintenance of State Trunkline highways/lane miles maintained: The Municipality is to provide
the winter and non-winter maintenance activities on its miles as identified within the work plan.

Michigan State Transportation Commission: The policy-making body for all state
transportation programs. The Commission establishes policy for the Michigan Department of
Transportation in relation to transportation programs and facilities and other such works as related
to transportation development as provided by law. Responsibilities of the Commission include the
development and implementation of comprehensive transportation plans for the entire state,
including aeronautics, bus and rail transit, providing professional and technical assistance, and
overseeing the administration of state and federal funds allocated for these programs.

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Non-Winter Maintenance Budget: The portion of the Budget allocated to non-winter maintenance
activities.

Office of Commission Audit (OCA): The office that reports directly to the Michigan State
Transportation Commission. The Office of Commission Audits is charged with the overall
responsibility to supervise and conduct review activities for the Department of Transportation.
The auditor submits to the Commission reports of financial and operational audits and
investigations performed by staff for acceptance.

Region Engineer: The Department’s designated chief engineer responsible for the oversight of
each region of the Department or that region’s designee.

Review: A financial statement review is a service under which the accountant obtains limited
assurance that there are no material modifications that need to be made to an entity’s financial
statement for them to be in conformity with the applicable financial reporting framework. OCA’s
review will be conducted in accordance with attestation standards established by the American
Institute of Certified Public Accountants and the standards applicable to attestation engagements
contained in Governmental Auditing Standards issued by the Comptroller General of the United
States. A review consists primarily of inquires of personnel and the application of analytical
procedures to data.

Schedule C Equipment Rental Rates: The department’s annual list of statewide hourly
equipment rental rates that shall be charged for the use of road equipment calculated from the
average costs submitted by each agency in the “Equipment Questionnaire”.

Small Road Tools: Hand tools which do not have power assist (non-powered) used for general
road and bridge maintenance such as rakes, shovels, brooms, etc.

Small Power Tools: Work tools powered by electricity or battery power and have a rental rate
assigned.

State Administrative Board: A Board that consists of the Governor, Lieutenant Governor,
Secretary of State, Attorney General, State Treasurer, and the Superintendent of Public
Instruction. The DTMB designates a Secretary to the State Administrative Board and provides
for staff support. The State Administrative Board has general supervisory control over the
administrative activities of all state departments and agencies, including but not limited to, the
approval of contracts and leases, oversight of the state capital outlay process and the settlement
of small claims against the state. The State Administrative Board functions through three standing
committees (Finance and Claims, Building, Transportation and Natural Resources) which make
recommendations to the Board. The State Administrative Board meets the first and third
Tuesday of each month.

State Trunkline Highway: A road, highway, or freeway under the jurisdiction of the Department,
and usually numbered as an M, US, or Interstate Route.

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Termination for Cause: The exercise of MDOT’s right to terminate this Contract “for cause”,
in whole or in part, if the Municipality, as determined by MDOT: (a) endangers the value,
integrity, or security of any location, data, or personnel; (b) becomes insolvent, petitions for
bankruptcy court proceedings, or has an involuntary bankruptcy proceeding filed against it by any
creditor; (c) engages in any conduct that may expose MDOT to liability; (d) breaches any of its
material duties or obligations; or (e) fails to cure a breach within the time stated in a notice of
breach. Any reference to specific breaches being material breaches within this Contract will not
be construed to mean that other breaches are not material.

Termination Date: The date the contract is no longer effective.

Transportation Work Authorization (TWA): A written order for work not covered by the
Budget. Funding for the TWA is reimbursed to the Municipality in addition to the annual Budget.

Transportation a n d Natural Resources Committee: A committee that approves the award
of Michigan Department of Transportation (MDOT) contracts and agreements; Department of
Natural Resources (DNR) oil, gas, and mineral leases; conveyance of submerged lands. The
committee meets the Wednesday before the State Administrative Board meeting. The agenda
is prepared by MDOT and DNR.

Winter Maintenance: Maintenance Work centered on the process to remove snow and ice from
the trunkline to provide a reasonably clear and bare driving surface under prevailing winter
conditions. The activity numbers that define the Budget line items for winter maintenance are:

1410: Winter maintenance
1440: Winter road patrol (See winter maintenance patrol below)
1490: Other winter maintenance (Shall include maintenance items resulting from winter
maintenance, but not actual winter maintenance, i.e. sweeping and flushing immediately after
winter ends)

This work includes all material costs required to conduct work under the above activity numbers.

Winter Maintenance Patrol: An employee assigned to monitor state trunkline road
conditions during the winter at times outside the normal workday, i.e. 2nd or 3rd shift.

Work Plan: A n annual outline of maintenance activities to be performed under this Contract.
The components of the plan include the amount of Budget allocated to each routine maintenance
activity group, a list of prioritized maintenance activities, and may include a proposed timeframe
for completion.

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APPENDIX B

MICHIGAN DEPARTMENT OF TRANSPORTATION

MUNICIPALITY CONTRACT

OVERHEAD SCHEDULE

Effective October 1, 2024, through September 30, 2029

Original Annual Percent Percent Total
Budget Amount Allowed Allowed Percent
for for Small Allowed
Overhead Tools

Up to $25,000_________ 11.00_________ .50________ 11.50
$25,001 to $50,000 ____ 10.25_________ .50________ 10.75
$50,001 to $75,000 ____ 9.50_________ .50________ 10.00
$75,001 to $100,000 ___ 8.75_________ .50________ 9.25
$100,001 and over _____ 8.00_________ .50________ 8.50

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APPENDIX C
PROHIBITION OF DISCRIMINATION IN STATE CONTRACTS

In connection with the performance of work under this contract; the contractor agrees as follows:

1. In accordance with Public Act 453 of 1976 (Elliott-Larsen Civil Rights Act), the contractor
shall not discriminate against an employee or applicant for employment with respect to
hire, tenure, treatment, terms, conditions, or privileges of employment or a matter directly
or indirectly related to employment because of race, color, religion, national origin, age,
sex, height, weight, or marital status. A breach of this covenant will be regarded as a
material breach of this contract. Further, in accordance with Public Act 220 of 1976
(Persons with Disabilities Civil Rights Act), as amended by Public Act 478 of 1980, the
contractor shall not discriminate against any employee or applicant for employment with
respect to hire, tenure, terms, conditions, or privileges of employment or a matter directly
or indirectly related to employment because of a disability that is unrelated to the
individual’s ability to perform the duties of a particular job or position. A breach of the
above covenants will be regarded as a material breach of this contract.

2. The contractor hereby agrees that any and all subcontracts to this contract, whereby a
portion of the work set forth in this contract is to be performed, shall contain a covenant
the same as hereinabove set forth in Section 1 of this Appendix.

3. The contractor will take affirmative action to ensure that applicants for employment and
employees are treated without regard to their race, color, religion, national origin, age, sex,
height, weight, marital status, or any disability that is unrelated to the individual’s ability
to perform the duties of a particular job or position. Such action shall include, but not be
limited to, the following: employment; treatment; upgrading; demotion or transfer;
recruitment; advertising; layoff or termination; rates of pay or other forms of
compensation; and selection for training, including apprenticeship.

4. The contractor shall, in all solicitations or advertisements for employees placed by or on
behalf of the contractor, state that all qualified applicants will receive consideration for
employment without regard to race, color, religion, national origin, age, sex, height,
weight, marital status, or disability that is unrelated to the individual’s ability to perform
the duties of a particular job or position.

5. The contractor or its collective bargaining representative shall send to each labor union or
representative of workers with which the contractor has a collective bargaining agreement
or other contract or understanding a notice advising such labor union or workers’
representative of the contractor’s commitments under this Appendix.

6. The contractor shall comply with all relevant published rules, regulations, directives, and
orders of the Michigan Civil Rights Commission that may be in effect prior to the taking
of bids for any individual state project.

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7. The contractor shall furnish and file compliance reports within such time and upon such
forms as provided by the Michigan Civil Rights Commission; said forms may also elicit
information as to the practices, policies, program, and employment statistics of each
subcontractor, as well as the contractor itself, and said contractor shall permit access to the
contractor’s books, records, and accounts by the Michigan Civil Rights Commission and/or
its agent for the purposes of investigation to ascertain compliance under this contract and
relevant rules, regulations, and orders of the Michigan Civil Rights Commission.

8. In the event that the Michigan Civil Rights Commission finds, after a hearing held pursuant
to its rules, that a contractor has not complied with the contractual obligations under this
contract, the Michigan Civil Rights Commission may, as a part of its order based upon
such findings, certify said findings to the State Administrative Board of the State of
Michigan, which State Administrative Board may order the cancellation of the contract
found to have been violated and/or declare the contractor ineligible for future contracts
with the state and its political and civil subdivisions, departments, and officers, including
the governing boards of institutions of higher education, until the contractor complies with
said order of the Michigan Civil Rights Commission. Notice of said declaration of future
ineligibility may be given to any or all of the persons with whom the contractor is declared
ineligible to contract as a contracting party in future contracts. In any case before the
Michigan Civil Rights Commission in which cancellation of an existing contract is a
possibility, the contracting agency shall be notified of such possible remedy and shall be
given the option by the Michigan Civil Rights Commission to participate in such
proceedings.

9. The contractor shall include or incorporate by reference, the provisions of the foregoing
paragraphs (1) through (8) in every subcontract or purchase order unless exempted by rules,
regulations, or orders of the Michigan Civil Rights Commission; all subcontracts and
purchase orders will also state that said provisions will be binding upon each subcontractor
or supplier.

Revised June 2011

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APPENDIX D

STATE ADMINISTRATIVE BOARD
RESOLUTION 2017-2
PROCEDURES APPLICABLE TO MDOT CONTRACTS AND GRANTS
AND
RECISSION OF RESOLUTION 2011-2

WHEREAS, the State Administrative Board (“Board”) exercises general
supervisory control over the functions and activities of all administrative
departments, boards, commissioners, and officers of this State, and of all State
institutions pursuant to Section 3 of 1921 PA 2, MCL 17.3;

WHEREAS, the Board may adopt rules governing its procedures and providing
for the general conduct of its business and affairs pursuant to Section 2, of 1921 PA
2, MCL 17.2;

WHEREAS, exercising its power to adopt rules, the Board adopted Resolution
2011-2 on August 30, 2011, establishing a $500,000 or more threshold for Board
approval of the Michigan Department of Transportation (“MDOT”) Professional
Engineering Consultant Contracts and Construction Contracts and increasing the
threshold for Board approval for Service Contracts to $250,000 or more for initial
contracts and $125,000 or more for an amendment to a Service Contract;

WHEREAS, the Board has adopted Resolution 2017-1, raising the threshold
for Board approval of contracts for materials and services to $500,000 or more for the
initial contract and $500,000 or more for contract amendments, and rescinding
Resolution 2011-1;

WHEREAS, MDOT is a party to a considerable number of contracts, the
majority of which are funded via grants administered by federal agencies including
the U.S. Department of Transportation’s Federal Highway Administration, Federal
Transit Administration, Federal Railroad Administration, and Federal Aviation
Administration, which oversee MDOT’s administration of such contracts and
amendments thereto;

WHEREAS, MDOT has implemented internal procedures to assure the proper
expenditure of state and federal funds and is subject to financial and performance
audits by the Office of Commission Audits pursuant to 1982 PA 438, MCL 247.667a;

WHEREAS, MDOT is a party to a significant number of contracts which by
their nature involve substantial consideration and often require amendments arising
out of changes in scope, differing field conditions and design errors and omissions;

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WHEREAS, delays in the approval of amendments to contracts can result in
postponement of payments to subcontractors and suppliers; work slowdowns and
stoppages; delays in the completion of projects; exposure to additional costs; and
exposure to litigation arising out of contractor claims; and

WHEREAS, recognizing the Board’s duty to promote the efficiency of State
Government, the Board resolves as follows:

1. Resolution 2011-2 is rescinded.

2. A contract for professional design, engineering or consulting services
requiring MDOT prequalification in connection with the construction or physical
improvement of a street, road, highway, bridge, transit or rail system, airport or other
structure congruous with transportation (“Professional Engineering Consultant
Contract”) or a contract for the construction or physical improvement of a street, road,
highway, bridge, transit or rail system, airport or other structure congruous with
transportation (“Construction Contract”) must be approved by the Board prior to
execution by MDOT if the amount of the contract is $500,000 or more. MDOT may
obtain approval of the solicitation of a Professional Engineering Consultant Contract
or a Construction Contract which, based on the estimate prepared by an engineer
employed by the State of Michigan, is estimated to be $500,000 or more. A contract
arising out of such solicitation must be approved by the Board prior to execution by
MDOT if the amount of the contract exceeds 110% of the State engineer’s estimate.

3. An amendment to a Professional Engineering Consultant Contract or a
Construction Contract must be approved by the Board prior to execution by MDOT if
the amount of the amendment and the sum of all previous amendments exceed 10%
of the original contract, except that an amendment to a Professional Engineering
Consultant Contract or a Construction Contract need not be approved by the Board
if: a) approved in accordance with applicable federal law or procedure by a
representative of a federal agency contributing funds to the project that is the subject
of the contract; or b) approved in accordance with MDOT’s internal procedures
provided the procedures include approval by at least one MDOT employee who has
managerial responsibility and is neither the project manager nor directly involved in
the administration of the project.

4. A contract for services not requiring MDOT prequalification (“Service
Contract”) in the amount of $500,000 or more must be approved by the Board prior
to execution by MDOT. A Service Contract does not include a Professional
Engineering Consultant Contract or a Construction Contract.
5. An amendment to a Service Contract must be approved by the Board
prior to execution by MDOT if the amount of the amendment and the sum of all
previous amendments total $500,000 or more. Thereafter, an amendment to a
Service Contract must be approved by the Board if the amount of the amendment and

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the sum of all amendments executed after the most recent Board approval total
$500,000 or more.

6. A contract involving the conveyance of any real property interest under
the jurisdiction of MDOT must be approved by the Board prior to execution by MDOT
if the fair market value of the interest is $500,000 or more. Fair market value must
be determined in accordance with procedures approved by the State Transportation
Commission.

7. MDOT may enter into a contract with a sub-recipient without approval
of the Board if: a) the purpose of the contract is to provide federal or state matching
funds for a project; b) MDOT has been authorized by an agency administering any
federal funds to award them to the sub-recipient; and c) the sub-recipient has agreed
to fully reimburse the State in the event the sub-recipient does not use the funds in
accordance with the purpose of the funding. A sub-recipient includes, but is not
limited to, a local unit of government, a governmental authority, a private non-profit
entity, and a railroad or rail service provider.

8. MDOT may enter into a cost participation contract with a local unit of
government without approval of the Board if: a) the contract involves the construction
or physical improvement of a street, road, highway, bridge or other structure
congruous with transportation; b) the construction or improvement is funded by
federal, state or local funds; and c) the contract is approved by each entity providing
funds or in accordance with applicable law.

9. MDOT may enter into a contract in connection with the award of a grant
including state matching funds, to a local unit of government, a governmental
authority, a private non-profit entity, a railroad or a rail service provider, without
approval of the Board if the contract provides that the recipient will fully reimburse
the State in the event grant funds are not used in accordance with the terms of the
grant.

10. MDOT may enter into a contract with an airport sponsor without
approval of the Board if the contract has been approved by the Michigan Aeronautics
Commission.

11. MDOT may enter into a contract or award a grant without approval of
the Board in situations where emergency action is required. For all emergency
contracts or grants of $250,000 or more, MDOT must transmit to the Board a written
report setting forth the nature of the emergency and the key terms of the contract or
grant within 30 days of executing the contract or awarding the grant.

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12. Notwithstanding any provisions of this resolution, the Board may
require MDOT to report the status of any project and may require MDOT to obtain
Board approval of any contract, grant or any amendment to a contract.

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APPENDIX E

SUBCONTRACT REQUIREMENTS

SUMMARY OF STATE ADMINISTRATIVE BOARD
REQUIREMENTS FOR AMENDMENTS
(PREVIOUSLY REFERRED TO AS OVERRUNS,
EXTRA’S AND ADJUSTMENTS)

Administrative Board Resolution (2017-2, April 25, 2017)

State Administrative Board approval is required on all contracts (including subcontracts)
when the sum of the contract including any optional year(s) is $500,000 or greater.

Amendments

Amendment State Administrative
Subcontract Requirements:
Amount Board (SAB) Approval
Requirements:

• Region Engineer approval required $499,999 or less Not required
prior to start of work.

• Form 426 must be signed by the Note: Emergency contracts
$250,000 or greater require
Region Engineer.
SAB approval.
• Documentation of amendment is
required by the Municipality.
$500,000 or Required prior to the start
greater of work.
• Send revised Form 426 to the
Transportation Systems Management
Operations (TSMO), Contract
Note: When the sum of the
Specialist for review and approval
contract and all amendments
prior to the start of work.
total $500,000 or greater,
SAB approval is required.

Definition of Term: Amendment includes situations where the original contract quantity or
contract cost is exceeded. It also includes situations where quantities or work are added to the
original contract as extra’s or adjustments.

January 30, 2024

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STATE OF MICHIGAN
GRETCHEN WHITMER DEPARTMENT OF TRANSPORTATION BRADLEY C. WIEFERICH, P.E.
GOVERNOR DIRECTOR
LANSING

APPENDIX F

SAMPLE: Letter of Understanding

Date

Contract Agency Name
Address
Contact Person, Title

RE: Letter of Understanding for State Trunkline Maintenance Contract between Michigan
Department of Transportation (MDOT) and the (insert name of contract agency)

Dear _________:

This Letter of Understanding is in follow up to our recent meeting held on ______ and will serve as a
reference to clarify the Scope of Work set forth in Section 1, of the State Trunkline Maintenance
Contract.

The Scope of Work will be limited to (insert type of work activities and frequency of work to be
performed) on the state trunkline (indicate routes) in the City (or Village) of __________. The work
activities are to be conducted by the City (Village) as a part of the Contract with MDOT.

The Scope of Work shall include traffic control to perform the work.

Reimbursement for Snow Hauling will be limited to (insert agreed upon snow hauling parameters) and
will be reimbursed at (insert snow hauling rate)% of the total costs of snow hauling. For any
additional snow hauling outside of these parameters, MDOT will not participate in the cost unless
written approval is received prior to the snow hauling. The Municipality Snow Hauling Calculation
form (Appendix H) is attached.

Request for reimbursement of the Scope of Work activities identified herein shall be in accordance
with Section 16 of the Contract. Payment for items with Firm Unit Prices will be in accordance with
the attached Municipality Firm Unit Prices form (Appendix G) attached.

Subcontracting of any work activities shall be in accordance with Section 9 of the Contract.

MURRAY D. VAN WAGONER BUILDING • P.O. BOX 30050 • LANSING, MICHIGAN 48909
www.Michigan.gov/MDOT • 517-241-2400
LH-LAN-0 (05/2023)

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Name
Page 2
Date

Please sign each of the two original letters enclosed. Please keep one copy for your records and return
the other copy to my attention.

Sincerely,

Name
Maintenance Coordinator (or Engineer)
MDOT ____TSC

APPROVED BY:

City (Village) of _______ agrees to the terms and conditions stated in this agreement.

Dated this _____ day of _______, 2024

_________________________________
Name, Title

APPROVED BY:

_________________________________ Date ________________
Region Engineer
Michigan Department of Transportation

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Appendix G

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Appendix H

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Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: September 24, 2024 Title: Concur with CRC Recommendation to
Accept Resignation and Make Appointments

Submitted by: Ann Meisch, City Clerk Department: City Clerk

Brief Summary:
To concur with CRC recommendation to accept the resignation of Doug Pollock from the DDA/BRA
and to appoint JoAnn Dornbos with a term ending 1-31-27. To appoint Yancy Weaver to the Parks
and Recreation Advisory Committee, resident of Ward 2; and appoint Cami Horn to the Citizen's
District Council-CDBG, citizen of Ward 1.

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 concur with CRC recommendation to accept the resignation of Doug Pollock from the DDA/BRA
and appoint JoAnn Dornbos, appoint Yancy Weaver to the Parks and Recreation Advisory
Committee, and appoint Cami Horn to the Citizen's District Council-CDBG.

Approvals: Guest(s) Invited / Presenting:
Immediate Division
Head No

Information
Technology
Other Division Heads
Communication
Legal Review

Page 79 of 222
Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: September 24, 2024 Title: Sale of 1431 Hoyt

Submitted by: Samantha Pulos, Code Department: Planning
Coordinator

Brief Summary:
Staff is requesting approval of a purchase agreement for 1431 Hoyt for $149,900.

Detailed Summary & Background:
1431 Hoyt was constructed through the agreement with Dave Dusendang to construct infill
housing with ARPA funding. The offer is full listing price with no seller concessions.

Goal/Focus Area/Action Item Addressed:

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 1431 Hoyt for $149,900 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

Page 80 of 222
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9/16/24, 8:04 AM 1431 Hoyt St, Muskegon, MI 49442 | Zillow

1431 Hoyt
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Price cut: $3,900 (Sep 03)

$175,900
3 bds | 1 ba | 1,021 sqft - House for sale
1707 Madison St, Muskegon, MI 49442
FIVE STAR REAL ESTATE-W NORTON

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Price cut: $10,000 (Aug 19)

$149,900 2 2 816
1431 Hoyt St, Muskegon, MI 49442 beds baths sqft

Est.: $901/mo Get pre-qualified
$159,900
Single Family Residence Built in 2024 5,662
4 bds | 2 ba | 2,423 sqft - House sqft lot
for sale
1311 Spring St, Muskegon, MI 49442
COLDWELL BANKER WOODLAND SCHMIDT GRAND HAVEN
$148,100 Zestimate® $184/sqft $-- HOA
Quiet street

What's special
This new home in the city of Muskegon is ready for you to move in. It is close to highways and all the activities that Muskegon has to offer. This
home must be owner occupied

38 days on Zillow | 80 views | 2 saves $169,000
3 bds | 1 ba | 960 sqft - House for sale
Zillow last checked: 3 hours ago 1567 6th St, Muskegon, MI 49441
Listing updated: August 15, 2024 at 12:19pm RE/MAX WEST

Listed by: Brent T Cox 616-717-1220, West Urban Realty LLC 616-717-1220
Lovely fenced backyard
Source: MichRIC, MLS#: 24041305

Street View

$194,900
3 bds | 1 ba | 1,256 sqft - House for sale
1082 McLaughlin Ave, Muskegon, MI 49442
TRENSYD REALTY LLC

16 days on Zillow

https://www.zillow.com/homes/1431-Hoyt-St-Muskegon,-MI-49442_rb/24298878_zpid/
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WEST MICHIGAN REGIONAL PURCHASE AGREEMENT
#
DATE: 08/08/2024 , (time) MLS # 24041305

SELLING OFFICE: Five Star Real Estate BROKER LIC.#: REALTOR® PHONE: 2312153242

LISTING OFFICE: West Urban Realty LLC REALTOR® PHONE:

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: Timothy Updyke Email: timupdykerealty@gmail.com Lic.#: 6501410013

PP# 6124205273001600 .
The following paragraph applies only if the Premises include unplatted land:
Seller agrees to grant Buyer at closing the right to make (insert number) division(s) under Section 108(2), (3), and
(4) of the Michigan Land Division Act. (If no number is inserted, the right to make divisions under the sections referenced above stays
with any remainder of the parent parcel retained by Seller. If a number is inserted, Seller retains all available divisions in excess of the
number stated; however, Seller and/or REALTOR® do not warrant that the number of divisions stated is actually available.) If this sale
will create a new division, Seller’s obligations under this Agreement are contingent on Seller’s receipt of municipal approval on or
before , of the proposed division to create the Premises.
6. Purchase Price: Buyer offers to buy the Property for the sum of $ 149,900
one hundred forty-nine thousand nine hundred U.S. Dollars
7. Seller Concessions, if any: None

8. Terms: The Terms of Purchase will be as indicated by “X” below: (Other unmarked terms of purchase do not apply.)
SOURCE OF FUNDS TO CLOSE: Buyer represents that the funds necessary to close this transaction on the terms specified below
are currently available to Buyer in cash or an equally liquid equivalent.
If the Property’s value stated in an appraisal obtained by Buyer or Buyer’s lender is less than the Purchase Price, Buyer shall within
three (3) days after receipt of the appraisal: 1) renegotiate with the Seller, 2) terminate the transaction, in which case Buyer shall
receive a refund of Buyer’s Earnest Money Deposit, or 3) proceed to close the transaction at the agreed Purchase Price.
CASH. The full Purchase Price upon execution and delivery of Warranty Deed. Buyer Agrees to provide Buyer Agent/Dual Agent
verification of funds within five (5) days after the Effective Date, and consents to the disclosure of such information to Seller and/or
Seller’s Agent. If verification of funds is not received within 5 days after the Effective Date, Seller may terminate this Agreement
at any time before verification of funds is received by giving written notice to Buyer. Any appraisal required by Buyer shall be
arranged and paid for by Buyer within ten (10) days after the Effective Date of this Agreement.
NEW MORTGAGE. The full Purchase Price upon execution and delivery of Warranty Deed, contingent upon Buyer’s ability to
obtain a Conventional type 30 (year) mortgage in the amount of 95 % of the Purchase Price
bearing interest at a rate not to exceed 6.5 % 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 2 days after the Effective Date, not to impair Buyers’ credit after the date such loan if
offered. Seller Buyer will agree to pay an amount not to exceed $ representing repairs required as a
condition of financing. Buyer agrees does not agree to authorize Buyer’s Agent/Dual Agent to obtain information from

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Buyer’s lender regarding Buyer’s financing, and consents to the disclosure of this information to Seller and/or Seller’s Agent.
Exceptions:

SELLER FINANCING (choose one of the following): CONTRACT or PURCHASE MONEY MORTGAGE
In the case of Seller financing, Buyer agrees to provide Seller with a credit report within 72 hours after the Effective Date. If the
credit report is unacceptable to Seller, Seller shall have the right to terminate this offer within 48 hours of Seller’s receipt, or if
Buyer fails to provide said credit report to Seller within the time frame allotted, Seller shall have the right to terminate this offer
within 48 hours. Seller is advised to seek professional advice regarding the credit report.
$ upon execution and delivery of a
form (name or type of form and revision date), a copy of which is attached, wherein the balance of $
will be payable in monthly installments of $ or more including interest at % per annum,
interest to start on date of closing, and first payment to become due thirty (30) days after date of closing. The entire unpaid balance
will become due and payable months after closing. Any appraisal required by Buyer shall be arranged and
paid for by Buyer within ten (10) days after the Effective Date of this Agreement. Exceptions:

EQUITY (choose one of the following): Formal Assumption or Informal Assumption
Upon execution and delivery of: Warranty Deed subject to existing mortgage OR Assignment of Vendee Interest
in Land Contract, Buyer to pay the difference (approximately $ ) between the Purchase Price above
provided and the unpaid balance (approximately $ ) upon said mortgage or land contract, which Buyer
agrees to assume and pay. Buyer agrees to reimburse Seller for accumulated funds held in escrow, if any, for payment of future
taxes and insurance premiums, etc. Any appraisal required by Buyer shall be arranged and paid for by Buyer within ten
(10) days after the Effective Date of this Agreement. Exceptions:

OTHER:

but does not include:

1431 Hoyt St, Muskegon, MI 49442 08/08/2024
Subject Property Address/Description Date Time
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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: NA city water & Sewer
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 ____ 10 days after the Effective Date. If the results of Buyer’s inspections
and investigations are not acceptable to Buyer, Buyer may, within the above referenced period, 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

1431 Hoyt St, Muskegon, MI 49442 08/08/2024
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19. Home Protection Plan: Buyer and Seller have been informed that home protection plans may be available. Such plans may provide
additional protection and benefit to the parties. Exceptions:

20. Prorations: Rent; association dues/fees, if any; insurance, if assigned; interest on any existing land contract, mortgage or lien
assumed by Buyer; will all be adjusted to the date of closing. For the purposes of calculating prorations, it is presumed that Seller
owns the Property through the day before closing.
21. Closing: If agreeable to Buyer and Seller, the sale will be closed as soon as closing documents are ready, but not later than
09/06/2024 . 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:

1431 Hoyt St, Muskegon, MI 49442 08/08/2024
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24. Earnest Money Deposit: For valuable consideration, Buyer gives Seller until 5pm (time) on
08/12/2024 (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 $ 1000
shall be submitted to Five Star Real Estate (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:

1431 Hoyt St, Muskegon, MI 49442 08/08/2024
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©Copyright, West Michigan REALTOR® Associations
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Buyer 1 Address X 08/08/24 7:19 PM EDT
QJOC-TYID-I7B2-VK5Q Buyer
Buyer 1 Phone: (Res.) (Bus.) Isak Davis
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:
The seller will provide a quit claim deed VS a warranty deed. The buyer acknowledges they have signed and will abide by the city of
Muskegon's addendum for the builder's warranty and landscaping requirements. The home must be owner occupied.

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: Listing Broker License #

Listing Agent Name: Brent Cox Listing Agent License #

Is Seller a U.S. Citizen or Resident Alien? Yes No*
Print name as you want it to appear on documents.

X (Buyer’s Signature, Date, Time):

38. Seller’s Receipt: Seller acknowledges receipt of Buyer’s acceptance of counteroffer.
dotloop verified

X (Seller’s Signature, Date, Time): Sam Pulos 08/09/24 7:34 AM
EDT
F4KO-TKR7-E4T9-IKII

X (Seller’s Signature, Date, Time):
1431 Hoyt St, Muskegon, MI 49442 08/08/2024
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Please read and have buyer/s sign. Attach with offer
Paragraph 8- Seller will provide a quit claim deed vs a warranty deed.

The builder's one-year warranty starts from the day of Certificate of Occupancy.

Buyer shall bring dwelling unit into compliance with the following per the city’s Zoning Ordinance: Each
dwelling unit shall have an approved established vegetative ground cover, native to the immediate area
within 600 feet, no less than 12 months after occupancy. Approval shall be given by the zoning staff of
the Planning Department as part of the initial residential site plan review. A minimum of one shade tree,
two and one-half inches (2.5") in diameter, four feet (4') from the ground or one six-foot (6') evergreen
tree shall be provided. Existing landscaping may be accepted in lieu of this requirement. The buyer shall
be responsible for watering and maintaining vegetation.

Isak Davis
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08/08/24 7:34 PM EDT
Q078-SCEV-YIH9-USYH
__________________________________________
Buyer

__________________________________________
Buyer

Timothy Alan Updyke
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08/08/24 7:25 PM EDT
WBET-7ZTC-CIWZ-8GDK
__________________________________________
Buyer’s Agent

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Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: September 24, 2024 Title: Sale of 1441 Hoyt

Submitted by: Samantha Pulos, Code Department: Planning
Coordinator

Brief Summary:
Staff is requesting approval of a purchase agreement for 1441 Hoyt for $150,000.

Detailed Summary & Background:
1441 Hoyt was constructed through the agreement with Dave Dusendang to construct infill
housing with ARPA funding. The offer is over full listing price with no seller concessions.

Goal/Focus Area/Action Item Addressed:

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 1441 Hoyt for $150,000 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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Docusign Envelope ID: 9FB35140-B1D1-4B93-B07B-F138E9FC57A7
WEST MICHIGAN REGIONAL PURCHASE AGREEMENT
#
DATE: 08/21/24 , 5:00 pm (time) MLS #

SELLING OFFICE: Redfin - Alantha Owen BROKER LIC.#: 6502414624 REALTOR® PHONE: 616-401-5995

LISTING OFFICE: West Urban Realty LLC 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: Alantha Owen Email: alantha.owen@redfin Lic.#: 6505384746

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)
1441 Hoyt St,Muskegon, MI 49442
with the following legal description and tax parcel ID numbers:
DIST:24 SUBD:CITY OF MUSKEGON REVISED PLAT (OF 1903) SEC/TWN/RNG/MER:SEC 05 TWN 9N
RNG 17W CITY OF MUSKEGONREVISED PLAT OF 1903BLK 273S 42.83 FT LOT 15
PP# 61-24-205-273-0015-00 .
The following paragraph applies only if the Premises include unplatted land:
Seller agrees to grant Buyer at closing the right to make (insert number) division(s) under Section 108(2), (3), and
(4) of the Michigan Land Division Act. (If no number is inserted, the right to make divisions under the sections referenced above stays
with any remainder of the parent parcel retained by Seller. If a number is inserted, Seller retains all available divisions in excess of the
number stated; however, Seller and/or REALTOR® do not warrant that the number of divisions stated is actually available.) If this sale
will create a new division, Seller’s obligations under this Agreement are contingent on Seller’s receipt of municipal approval on or
before , of the proposed division to create the Premises.
6. Purchase Price: Buyer offers to buy the Property for the sum of $ 150,000.00
One hundred fifty thousand dollars ***SEE ESCALATION CLAUSE, LINE 27 U.S. Dollars
7. Seller Concessions, if any: None

8. Terms: The Terms of Purchase will be as indicated by “X” below: (Other unmarked terms of purchase do not apply.)
SOURCE OF FUNDS TO CLOSE: Buyer represents that the funds necessary to close this transaction on the terms specified below
are currently available to Buyer in cash or an equally liquid equivalent.
If the Property’s value stated in an appraisal obtained by Buyer or Buyer’s lender is less than the Purchase Price, Buyer shall within
three (3) days after receipt of the appraisal: 1) renegotiate with the Seller, 2) terminate the transaction, in which case Buyer shall
receive a refund of Buyer’s Earnest Money Deposit, or 3) proceed to close the transaction at the agreed Purchase Price.
CASH. The full Purchase Price upon execution and delivery of Warranty Deed. Buyer Agrees to provide Buyer Agent/Dual Agent
verification of funds within five (5) days after the Effective Date, and consents to the disclosure of such information to Seller and/or
Seller’s Agent. If verification of funds is not received within 5 days after the Effective Date, Seller may terminate this Agreement
at any time before verification of funds is received by giving written notice to Buyer. Any appraisal required by Buyer shall be
arranged and paid for by Buyer within ten (10) days after the Effective Date of this Agreement.
NEW MORTGAGE. The full Purchase Price upon execution and delivery of Warranty Deed, contingent upon Buyer’s ability to
obtain a CONV type 30 (year) mortgage in the amount of 97 % of the Purchase Price
bearing interest at a rate not to exceed MR % 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 5 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 $ 0.00 representing repairs required as a
condition of financing. Buyer agrees does not agree to authorize Buyer’s Agent/Dual Agent to obtain information from
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Buyer’s lender regarding Buyer’s financing, and consents to the disclosure of this information to Seller and/or Seller’s Agent.
Exceptions:

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:

but does not include:
None
1441 Hoyt St,Muskegon, MI 49442 08/21/24 5:00 pm
Subject Property Address/Description Date Time
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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.
Seller confirms that the home is connected to municipal water & sewer
Other:
15. Inspections & Investigations:
Inspections: Buyer, or someone selected by Buyer, has the right to inspect the buildings, premises, components and systems, at
Buyer’s expense. Any damage, misuse, abuse, or neglect of any portion of the Property or premises as a result of inspections will be
Buyer’s responsibility and expense.
Investigations: It is Buyer’s responsibility to investigate (i) whether the Property complies with applicable codes and local ordinances
and whether the Property is zoned for Buyer’s intended use; (ii) whether Buyer can obtain a homeowner’s insurance policy for the
Property at price and terms acceptable to Buyer; (iii) and whether or not the Property is in a flood zone.
5 days after the Effective Date. If the results of Buyer’s inspections and
All inspections and investigations will be completed within ____
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
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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: None
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:
None
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:
Seller to provide survey, if one is available
19. Home Protection Plan: Buyer and Seller have been informed that home protection plans may be available. Such plans may provide
additional protection and benefit to the parties. Exceptions:
Seller to provide details of builder's warranty within 10 days of offer acceptance
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
09/13/24 . 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:
None
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.
1441 Hoyt St,Muskegon, MI 49442 08/21/24 5:00 pm
Subject Property Address/Description Date Time
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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 $ 350 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 8:00 pm (time) on
8/23/24 (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 $ 2000
shall be submitted to Nations 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:
1.Buyer(s) will increase offer to a net of $2,000 more than any bona fide or good faith competing offer made for
aforementioned property, in an amount not to exceed $166,000. Buyer(s) must be provided with a copy of the
competing offer together with a bank prequalification or pre-approval letter demonstrating, to Buyer(s) sole satisfaction,
that the second buyer is qualified to purchase 1441 Hoyt St,Muskegon, MI 49442 at the price set forth in the competing
offer.
2.Seller to pay buyer's agency commission equal to 2.8% of total purchase price, see addendum
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.
1441 Subject
Hoyt Property
St,Muskegon, MI 49442
Address/Description
08/21/24
Date
5:00
Time
pm
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Buyer 1 Address X Buyer
Marcus Blanks
Buyer 1 Phone: (Res.) (Bus.)
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. x As written except:

The seller will provide a quit claim deed VS a warranty deed. The buyer acknowledges they have signed
and will abide by the city of Muskegon's addendum for the builder's warranty and landscaping
requirements. The home must be owner occupied.

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.
Sam Pulos
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X (Seller’s Signature, Date, Time): 3TKO-CZWN-MFGJ-U9FK

Is Seller a U.S. Citizen or Resident Alien? Yes No*
Print name as you want it to appear on documents.

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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X (Seller’s Signature, Date, Time): FWNV-EJLY-AXG6-LF1L

X (Seller’s Signature, Date, Time):

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Subject Property Address/Description Date Time
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Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: September 24, 2024 Title: Sale of 1441 Leahy

Submitted by: Samantha Pulos, Code Department: Planning
Coordinator

Brief Summary:
Staff is requesting approval of a purchase agreement for 1441 Leahy for $159,440.

Detailed Summary & Background:
1441 Leahy was constructed through the agreement with Dave Dusendang to construct infill
housing with ARPA funding. The offer is over full listing price with no seller concessions.

Goal/Focus Area/Action Item Addressed:

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 1441 Leahy for $159,440 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: 08/25/2024 , (time) MLS #

SELLING OFFICE: Five Star Real Estate BROKER LIC.#: REALTOR® PHONE: 2312153242

LISTING OFFICE: West Urban Realty LLC(g143200) 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: Timothy Updyke Email: timupdykerealty@gmail.com Lic.#: 6501410013

PP# 61-24-205-274-0014-01 .
The following paragraph applies only if the Premises include unplatted land:
Seller agrees to grant Buyer at closing the right to make (insert number) division(s) under Section 108(2), (3), and
(4) of the Michigan Land Division Act. (If no number is inserted, the right to make divisions under the sections referenced above stays
with any remainder of the parent parcel retained by Seller. If a number is inserted, Seller retains all available divisions in excess of the
number stated; however, Seller and/or REALTOR® do not warrant that the number of divisions stated is actually available.) If this sale
will create a new division, Seller’s obligations under this Agreement are contingent on Seller’s receipt of municipal approval on or
before , of the proposed division to create the Premises.
6. Purchase Price: Buyer offers to buy the Property for the sum of $ 158,900
one hundred fifty-eight thousand nine hundred U.S. Dollars
7. Seller Concessions, if any:

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 FHA/MSHDA type 30 (year) mortgage in the amount of 96.5 % of the Purchase Price
bearing interest at a rate not to exceed 7 % per annum (rate at time of loan application), on or before the date the sale is
to be closed. Buyer agrees to apply for a mortgage loan, and pay all fees and costs customarily charged by Buyer’s lender to
process the application, within 2 days after the Effective Date, not to impair Buyers’ credit after the date such loan if
offered. Seller Buyer will agree to pay an amount not to exceed $ representing repairs required as a
condition of financing. Buyer agrees does not agree to authorize Buyer’s Agent/Dual Agent to obtain information from

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Buyer’s lender regarding Buyer’s financing, and consents to the disclosure of this information to Seller and/or Seller’s Agent.
Exceptions:

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:

Sellers to add central air and stainless kitchen appliance package (refrigerator, range, dishwasher & Microwave) as well as washer & Dryer

but does not include:

1441 Leahy Street, Muskegon, MI 49442 08/25/2024
Subject Property Address/Description Date Time
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1441 Leahy Street, Muskegon, MI 49442 08/25/2024
Subject Property Address/Description Date Time

©Copyright, West Michigan REALTOR® Associations
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19. Home Protection Plan: Buyer and Seller have been informed that home protection plans may be available. Such plans may provide
additional protection and benefit to the parties. Exceptions:

20. Prorations: Rent; association dues/fees, if any; insurance, if assigned; interest on any existing land contract, mortgage or lien
assumed by Buyer; will all be adjusted to the date of closing. For the purposes of calculating prorations, it is presumed that Seller
owns the Property through the day before closing.
21. Closing: If agreeable to Buyer and Seller, the sale will be closed as soon as closing documents are ready, but not later than
09/23/2024 . 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:

1441 Leahy Street, Muskegon, MI 49442 08/25/2024
Subject Property Address/Description Date Time

©Copyright, West Michigan REALTOR® Associations
Revision Date 1/2024 MB KB Buyer’s Initials
SP Seller’s Initials
08/25/24 08/25/24 08/27/24 Page 105 of 222
9:16 PM EDT 9:19 PM EDT 4:01 PM EDT
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West Michigan Regional Purchase Agreement Page 5 of 6
For purposes of determining possession, the transaction will be considered closed once all necessary documents have been signed
and received by escrow agent and funds have been received by the escrow agent.
If Seller fails to deliver possession to Buyer on the agreed date, Seller shall become a tenant at sufferance and shall pay to Buyer as
liquidated damages $ 200 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 5pm (time) on
08/27/2024 (date), to deliver the written acceptance of this offer and agrees that this offer, when accepted by
Seller, will constitute a binding Agreement between Buyer and Seller. An Earnest Money Deposit in the amount of $ 1000 upon offer acceptance
shall be submitted to Five Star Real Estate (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:
**The seller will provide a quit claim deed VS a warranty deed. The buyer acknowledges they have signed and will abide by the city of
Muskegon's addendum for the builder's warranty and landscaping requirements. The home must be owner occupied.
Seller to pay buyers agent 3% commission

Buyers to pay $345 buyer broker admin fee upon closing

1441 Leahy Street, Muskegon, MI 49442 08/25/2024
Subject Property Address/Description Date Time

©Copyright, West Michigan REALTOR® Associations
Revision Date 1/2024 MB KB Buyer’s Initials
SP Seller’s Initials
08/25/24
9:16 PM EDT
08/25/24
9:19 PM EDT
08/27/24
4:01 PM EDT
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Buyer 1 Address X 08/25/24 9:16 PM EDT
I7XB-BD1S-XRMJ-Q9GY Buyer
Buyer 1 Phone: (Res.) (Bus.) McKenna Bowman
Print name as you want it to appear on documents.
Kevin Bowman
dotloop verified
08/25/24 9:19 PM EDT
Buyer 2 Address X 1LYK-K76H-7AOW-CWZD 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:
the sale price will be 159,440.00 one hundred and fifty-nine thousand four hundred and forty

35. Listing Office Address: Listing Broker License #

Listing Agent Name: Listing Agent License #

Is Seller a U.S. Citizen or Resident Alien? Yes No*
Print name as you want it to appear on documents.

X (Buyer’s Signature, Date, Time):

38. Seller’s Receipt: Seller acknowledges receipt of Buyer’s acceptance of counteroffer.

Sam Pulos
dotloop verified

X (Seller’s Signature, Date, Time): 08/27/24 4:01 PM EDT
XQZJ-7EUL-MIYC-SFCE

X (Seller’s Signature, Date, Time):
1441 Leahy Street, Muskegon, MI 49442 08/25/2024
Subject Property Address/Description Date Time

©Copyright, West Michigan REALTOR® Associations
Revision Date 1/2024 MB KB Buyer’s Initials
SP Seller’s Initials
08/25/24
9:16 PM EDT
08/25/24
9:19 PM EDT
08/27/24
4:01 PM EDT
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Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: September 24, 2024 Title: Amendment to the zoning ordinance - Cat
Cafés in commercial zones

Submitted by: Mike Franzak, Planning Director Department: Planning

Brief Summary:
Staff-initiated request to amend the zoning ordinance to allow cat cafés as a special use permitted
in all commercial districts excluding B-1. This would include the following zoning districts: B-2; B-4; FBC,
DT; FBC, MS; FBC, NC; LFBC, LC; and LFBC, MR.

Detailed Summary & Background:
Staff has been receiving many calls regarding the desire to open a cat café in Muskegon. These
types of businesses are becoming more popular throughout the state. A specific ordinance allowing
these uses is necessary because any property housing more than four cats is considered a
commercial kennel.

The Planning Commission unanimously recommended approval of the ordinance amendment.

Goal/Focus Area/Action Item Addressed:

Key Focus Areas:

Goal/Action Item:
2027 Goal 2: Economic Development Housing and Business

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 amend the zoning ordinance to allow cat cafés as a special use permitted in the following
zoning districts: B-2; B-4; FBC, DT; FBC, MS; FBC, NC; LFBC, LC; and LFBC, MR.

Approvals: Guest(s) Invited / Presenting:
Immediate Division X
Head No

Information
Technology

Page 108 of 222
Other Division Heads
Communication
Legal Review

Page 109 of 222
Planning Commission Packet Excerpt

Hearing, Case 2024-25: Staff-initiated request to amend Article XX and Sections 1100 and 1300 to allow cat
cafes as a special use permitted in Form-Based Code, Downtown; Form-Based Code, Mainstreet; Form Based
Code, Neighborhood Core, Lakeside Form-Based Code, Lakeside Commercial, Lakeside Form-Based Code,
Mixed Residential; B-2, Convenience & Comparison Business; and B-4, General Business districts.

SUMMARY

1. This amendment would allow cat cafes as a special use permitted in the following zoning districts: B-
2; B-4; FBC, DT; FBC, MS; FBC, NC; LFBC, LC; and LFBC, MR.
2. Please follow this link to see cat cafes that are currently in operation throughout Michigan.
3. To operate a cat café, an applicant would have to apply for a special use permit and attend a public
hearing. The proposed regulations for a cat café are listed below.

Proposed Special Use Permit Regulations:

Cat Cafes, under the following conditions:

1. Keeping of domestic animals shall be consistent with the provisions of Article XX, noise, and Article
XX nuisances/littering of the City’s Code of Ordinances.
2. Limited to cats (felines) only.
3. Capacity: The establishment must provide 62 square feet per one (1) cat and no more than 15 on-site
at any one time.
4. The cats shall always be kept separate from food preparation areas.
5. The boarding of cats shall take place entirely indoors.
6. Any cats leaving the establishment must be in a carrier.
7. A sign indicating a 24-hour emergency phone number shall be kept current and posted on the site in a
place clearly visible from the exterior.

Page 110 of 222
CITY OF MUSKEGON

MUSKEGON COUNTY, MICHIGAN

ORDINANCE NO._____

An ordinance to amend Article XX and Sections 1100 and 1300 to allow cat cafes as a special use permitted
in Form-Based Code, Downtown; Form-Based Code, Mainstreet; Form Based Code, Neighborhood Core,
Lakeside Form-Based Code, Lakeside Commercial, Lakeside Form-Based Code, Mixed Residential; B-2,
Convenience & Comparison Business; and B-4, General Business districts.

THE CITY COMMISSION OF THE CITY OF MUSKEGON HEREBY ORDAINS:

Article XX and Sections 1100 and 1300 is amended to permit cat cafes as a special use permitted in Form-
Based Code, Downtown; Form-Based Code, Mainstreet; Form Based Code, Neighborhood Core, Lakeside
Form-Based Code, Lakeside Commercial, Lakeside Form-Based Code, Mixed Residential; B-2,
Convenience & Comparison Business; and B-4, General Business districts.

This ordinance adopted:

Ayes:______________________________________________________________

Nayes:_____________________________________________________________

Adoption Date:

Effective Date:

First Reading:

Second Reading:

CITY OF MUSKEGON

By: _________________________________
Ann Meisch, MMC, City Clerk

Page 111 of 222
CERTIFICATE

The undersigned, being the duly qualified clerk of the City of Muskegon, Muskegon County,
Michigan, does hereby certify that the foregoing is a true and complete copy of an ordinance
adopted by the City Commission of the City of Muskegon, at a regular meeting of the City
Commission on the 24th day of September 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 112 of 222
CITY OF MUSKEGON
NOTICE OF ADOPTION

Please take notice that on September 24, 2024, the City Commission of the City of Muskegon adopted an
ordinance to allow cat cafes in certain commercial districts.
Copies of the ordinance may be viewed and purchased at reasonable cost at the Office of the City Clerk
in the City Hall, 933 Terrace Street, Muskegon, Michigan, during regular business hours.

This ordinance amendment is effective ten days from the date of this publication.

Published ____________________, 2024. CITY OF MUSKEGON

By _________________________________
Ann Meisch, MMC
City Clerk

---------------------------------------------------------------------------------------------------------------------

PUBLISH ONCE WITHIN TEN (10) DAYS OF FINAL PASSAGE.

Account No. 101-80400-5354

Page 113 of 222
Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: September 24, 2024 Title: Amendment to the zoning ordinance - Cat
Cafe definition

Submitted by: Mike Franzak, Planning Director Department: Planning

Brief Summary:
To add a definition for cat cafés to Article II (Definitions) of the zoning ordinance.

Detailed Summary & Background:
Definition - Cat café: a restaurant or café, which also houses adoptable or therapeutic cats for
clientele to interact with, and which may incorporate cat adoption services in addition to the
restaurant services.

The Planning Commission unanimously recommended approval of the ordinance amendment at
their September 12 meeting.

Goal/Focus Area/Action Item Addressed:

Key Focus Areas:

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 approve the request to amend the zoning ordinance to add a definition for cat cafés.

Approvals: Guest(s) Invited / Presenting:
Immediate Division X
Head No

Information
Technology
Other Division Heads
Communication

Page 114 of 222
Legal Review

Page 115 of 222
Planning Commission Packet Excerpt

Hearing, Case 2024-24: Staff-initiated request to amend Article II (Definitions) of the zoning ordinance to
create a definition for “cat café.”

SUMMARY

1. Staff has been receiving requests from potential business owners that would like to operate a “cat café”
in Muskegon. A cat café is a theme café whose attraction is cats who can be watched and played with
and are often up for adoption.
2. This use has recently become more popular over the past few years and several cat cafes have opened
around the state.
3. The zoning ordinance defines “commercial kennel” as “any premises on which more than three dogs
or more than four cats, older than four months old, are kept on any premises which offers cats or dogs
for sale on a reoccurring basis.”
4. This new “cat café” definition would allow these types of businesses to operate, under certain
regulations, without violating the commercial kennel zoning regulations.

Proposed Definition:

Cat café: a restaurant or cafe, which also houses adoptable or therapeutic cats for clientele to interact with,
and which may incorporate cat adoption services in addition to the restaurant services.

Page 116 of 222
CITY OF MUSKEGON

MUSKEGON COUNTY, MICHIGAN

ORDINANCE NO._____

An ordinance to amend Article II (Definitions) of the zoning ordinance to create a definition for “cat café.”

THE CITY COMMISSION OF THE CITY OF MUSKEGON HEREBY ORDAINS:

Article II (Definitions) of the zoning ordinance is hereby amended to create a definition for “cat café

This ordinance adopted:

Ayes:______________________________________________________________

Nayes:_____________________________________________________________

Adoption Date:

Effective Date:

First Reading:

Second Reading:

CITY OF MUSKEGON

By: _________________________________
Ann Meisch, MMC, City Clerk

Page 117 of 222
CERTIFICATE

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 118 of 222
CITY OF MUSKEGON
NOTICE OF ADOPTION

Please take notice that on September 24, 2024, the City Commission of the City of Muskegon adopted an
ordinance to create a zoning ordinance definition for cat café.
Copies of the ordinance may be viewed and purchased at reasonable cost at the Office of the City Clerk
in the City Hall, 933 Terrace Street, Muskegon, Michigan, during regular business hours.

This ordinance amendment is effective ten days from the date of this publication.

Published ____________________, 2024. CITY OF MUSKEGON

By _________________________________
Ann Meisch, MMC
City Clerk

---------------------------------------------------------------------------------------------------------------------

PUBLISH ONCE WITHIN TEN (10) DAYS OF FINAL PASSAGE.

Account No. 101-80400-5354

Page 119 of 222
Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: September 24, 2024 Title: Contract for Tree Removal Services

Submitted by: Mike Franzak, Planning Director Department: Planning

Brief Summary:
To award the tree removal services contract to Stright Up Tree Service, who was the lowest qualified
bidder at $35,365.78.

Detailed Summary & Background:
Staff is working with two developers to construct homes on 18 City-owned residential lots. The lots
have several trees located within the potential building footprints, making it unfeasible for the
developers to construct homes due to the costs associated with tree removal. A request for proposal
for tree services was listed on the City's website. Staff recommends awarding the contract to Straight
Up Tree Service, who was the lowest qualified bidder. Trees and stumps must be removed from the
lots by October 20. The lots include 1284/1365/1375 James Ave, 209 Merrill Ave, 502/561 Mary St,
845/982 Ducey Ave, 1003/1341 Ducey Ave, 1007 Albert Ave, 1542 Adams Ave, 320/346 Wood St, 425
Octavious St, 436 Charles St, 877 Amity Ave, and 907 Orchard Ave.

Goal/Focus Area/Action Item Addressed:

Key Focus Areas:

Goal/Action Item:
2027 Goal 2: Economic Development Housing and Business

Amount Requested: Budgeted Item:
To be filled in Tuesday Yes X No N/A

Fund(s) or Account(s): Budget Amendment Needed:
Public Improvement 445-901-5300 Yes No N/A X

Recommended Motion:
I move to award the tree removal contract to Straight Up Tree Service.

Approvals: Guest(s) Invited / Presenting:

Immediate Division X No
Head
Information
Technology

Page 120 of 222
Other Division Heads
Communication
Legal Review

Page 121 of 222
Company City Cost
Straight Up Tree Services Maple City, MI $35,365.78
Wise Owl Marne, MI $137,570
Atkin Tree Services Fruitport, MI $99,000
Monarch Tree Services Nunica, MI $74,100
Professional Stump Grinding, LLC Weidman, MI $184,377.60
Chop Grand Rapids, MI $54,564.62
Alpine Tree Services Freemont, MI $82,950

Page 122 of 222
Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: September 24, 2024 Title: Nelson School LIHTC Redevelopment
Municipal Services Agreement

Submitted by: Jake Eckholm, Development Department: Economic Development
Services Director

Brief Summary:
General Capital is resubmitting their application for Low Income Housing Tax Credits in order to
redevelop the Nelson School site into affordable family apartments. They require a Municipal Services
Agreement to be approved by the City before the October 1, 2024 application date.

Detailed Summary & Background:
Pursuant to our 5 Year Housing Needs Assessments call for over 1,000 rental units priced under $1,430
a month, staff has made overtures and established relationships with several new and existing LIHTC
developers. General Capital has already successfully completed two new construction facilities in
our community, and is seeking to complete a third with the Nelson School Apartments. This site will
support 52 affordable family apartments.

Goal/Focus Area/Action Item Addressed:

Key Focus Areas:

Blight cleanup
Diverse housing types
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

Fund(s) or Account(s): Budget Amendment Needed:
N/A Yes No N/A

Recommended Motion:
Motion to accept the Municipal Services Agreement between the City of Muskegon and GenCap
Nelson Limited Dividend Housing Association, LLC as presented and to authorize the mayor and clerk
to sign.

Page 123 of 222
Approvals: Guest(s) Invited / Presenting:
Immediate Division
Head Yes

Information
Technology
Other Division Heads
Communication
Legal Review

Page 124 of 222
MUNICIPAL SERVICES AGREEMENT

THIS MUNICIPAL SERVICES AGREEMENT (“Agreement”) is entered into on this___
day of S e p t e m b e r 2 0 2 4 between GenCap Nelson Limited Dividend Housing
Association, LLC, a Michigan limited liability company its successors and/or assigns (the
“Sponsor”) and the CITY OF MUSKEGON, 933 Terrace Street, Muskegon, MI 49440
(the “City”) is made pursuant to the following terms:

RECITALS

A. Developer has assumed an agreement to purchase a site in the City of Muskegon
known as Nelson School Apartments for the construction of a proposed low-income housing
project (the “Project”).

B. The parties recognize that due to the high concentration of persons residing at
the Project that the City will be providing a higher level and greater amount of Municipal Services
(as defined in this Agreement) to the Project.

C. The City, through its Police and Fire Departments and otherwise, provides
Municipal Services within the City. The Project will have special needs for these types of
Municipal Services and Developer acknowledges that such needs may be greater than typically
situated residential developments.

D. The Developer desires to guarantee that certain Municipal Services will be provided
to the Project during the term that the Payment in Lieu of Tax (hereinafter referred to as the
“Contract for Housing Exemption”) Ordinance for this Project is in place, such Municipal Services
to include, but not be limited to:

1. Emergency services, including police and fire services specifically administered
through the City, and, on public streets and sidewalks, maintenance, repair, snow removal,
and street lighting; also to include other matters as the City deems necessary;

2. Other miscellaneous services as may, from time to time, be mutually agreed to for
the benefit of the Project;

3. Said municipal services shall be provided in the customary way and in accordance
with all laws, rules and regulations of the United States of America, State of Michigan,
County of Muskegon and City of Muskegon or other applicable jurisdictions or bodies.

(All of the above collectively referred to as “Municipal Services”)

4. Nothing in this Agreement shall be deemed to waive any defense to claims based
on sovereign or governmental immunity.

Page 125 of 222
AGREEMENT

The parties agree as follows:

1. Provision of Services. The City will provide the Municipal Services.

2. Payment. The Developer shall pay a service charge on or before July 1, of each
year during the time the CONTRACT FOR HOUSING EXEMPTION is in effect (the “Municipal
Service Fee”). The Municipal Service Fee shall be three (3%) percent of the net rent adjusted for
vacancies received annually, excluding project paid utilities, starting during the calendar year that
a unit in the Project is placed in service. The first year shall be pro-rated based on that portion of
the City’s fiscal year (July 1 – June 30) that any unit is ready to be placed in service.

3. Term. Payment for Municipal Services shall commence during the calendar year
the CONTRACT FOR HOUSING EXEMPTION Ordinance becomes effective and continue for
as long as the CONTRACT FOR HOUSING EXEMPTION is in effect.

4. Audit. Developer shall submit, upon request, a copy of the annual audit of the
Project prepared by an independent CPA’s along with the payment of the Municipal Service Fee.

5. Exclusive Benefit. The obligations of the Developer hereunder are imposed solely
and exclusively for the benefit of the City and no other person or entity shall have the standing to
enforce such obligations or be deemed to be beneficiaries of such obligations.

6. Remedies. The Developer agrees that if it does not perform its obligations under
this Agreement the City is entitled to pursue any and all remedies legal or equitable that it is entitled
to under Michigan law. The Developer agrees to be liable for all costs of collection including
reasonable attorney's fees and costs incurred by the City in the enforcement of the terms of this
Agreement, if Developer is found to be in default of this Agreement by a court of competent
jurisdiction.

7. Assignment. Upon the written consent of the City, the Developer may transfer or
assign its rights and obligations under this Agreement to a buyer (“Transferee”) of the Project. The
Transferee must agree to assume the Developer’s obligations under this Agreement and the
Development Agreement which has been executed by the Developer with the City. Upon
assignment and assumption of this Agreement by the Transferee (or an affiliate, as provided
below), the Developer shall be relieved of any further liabilities or obligations accruing under this
Agreement or the Development Agreement. Notwithstanding the foregoing, the Developer may
assign this Agreement, without the written consent of the City, to an affiliate of Developer
(provided that such affiliate agrees to assume the Developer's obligations hereunder and provided
that the Developer and assignee give prior notice of the assignment to the City with evidence that
the assignee has agreed to assume the obligations of the Developer).

Page 126 of 222
8. Severability. If any term or condition of this Agreement is found to be void,
invalid, or unenforceable, the validity or enforceability of the remaining terms and conditions shall
not be affected or impaired and will continue in full force and effect.

9. Notices. All notices under this Agreement must be in writing and sent to the
respective parties as follows:

If to Developer:

GenCap Nelson Limited Dividend Housing Association, LLC
David Weiss
6938 North Santa Monica Boulevard
Fox Point WI. 53217

If to the City:

City of Muskegon
Attn: City Manager
933 Terrace Street
Muskegon, MI 49440

Every notice must be in writing and sent by one of the following methods:

a. Personal delivery, in which case delivery shall be deemed to occur the day of the
delivery;

b. Certified or registered mail, postage prepaid, return receipt requested, in which case
delivery shall be deemed to occur the day it is officially recorded by the U.S. Postal Service
that is has delivered it to the intended recipient; or

c. Next day delivery by a recognized private delivery service such as Federal Express,
providing proof of mailing and delivery comparable to certified or registered mail, return
receipt requested, in which case delivery shall be deemed to occur upon delivery as
recorded by the delivery service.

Page 127 of 222
Either party may change the address provided in this paragraph for itself or its attorney by
providing notice of such change to the other party as required in this paragraph.

10. No Waiver. No delay, omission, or failure of the City to act under this Agreement
or to insist upon strict compliance with any term and condition of this Agreement, and no custom
or practice of the parties at variance with the terms and conditions of this Agreement shall
constitute a waiver of City’s right to demand exact compliance with this Agreement. No waiver
of any right or remedy of City shall be construed as a bar to or a waiver of any such right or
remedy on any future occasion.

11. Headings. The headings in this Agreement have only been inserted for
convenience and shall not affect the meaning or interpretation of this Agreement. No heading
shall have any legal significance of any nature whatsoever.

12. Binding Effect. This Agreement shall be binding on the parties, their heirs,
successors, and assigns.

13. Amendments. There shall be no modification or amendments to this Agreement,
including this section, unless they are in writing and signed by all the parties to this Agreement.

14. Governing Law. This Agreement has been executed in the State of Michigan, and
shall be governed by Michigan law.

15. Complete Agreement. This Agreement contains the entire agreement between
the parties and supersedes all prior oral or written representations, negotiations and agreement on
the subject matter stated herein.

{Signatures on next page}

Page 128 of 222
Municipal Services
Agreement Signature Page

IN WITNESS WHEREOF, this Municipal Services Agreement is executed as of the day and year
first written above.

CITY:

CITY OF MUSKEGON

Dated: _____________, 2023 By:
Ken Johnson, Mayor

Dated: _ ___________, 2023 By:
Ann Meisch, City Clerk

DEVELOPER:

GenCap Nelson Limited Dividend Housing
Association, LLC

By:
Name:
Its: Authorized Signer

Page 129 of 222
Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: September 24, 2024 Title: Nelson School LIHTC Redevelopment
Contract for Housing Exemption

Submitted by: Jake Eckholm, Development Department: Economic Development
Services Director

Brief Summary:
General Capital is resubmitting their application to MSHDA for federal Low Income Housing Tax
Credits to assist in the redevelopment of Nelson School into affordable family apartments. They are
required to have an approved contract for housing exemption by the 10/1/2024 application date.

General Capital is seeking a Payment in lieu of Taxes (PILOT) of 4% of net shelter rents. This should
equal roughly $19,000 per year for the city to divide between taxing jurisdictions. General Capital is
also requesting a 3% Municipal Services Charge, which is detailed in another agenda item in the
packet.

Goal/Focus Area/Action Item Addressed:

Key Focus Areas:
Diverse housing types
Progress toward completion of ongoing economic development projects
Blight cleanup

Goal/Action Item:
2027 Goal 2: Economic Development Housing and Business

Amount Requested: Budgeted Item:
NA Yes No N/A

Fund(s) or Account(s): Budget Amendment Needed:
NA Yes No N/A

Recommended Motion:
Motion to accept the Contract for Housing Exemption between the City of Muskegon and GenCap

Page 130 of 222
Nelson Limited Dividend Housing Association, LLC a Michigan LLC as presented and authorize the
mayor and clerk to sign.

Approvals: Guest(s) Invited / Presenting:
Immediate Division
Head Yes

Information
Technology
Other Division Heads
Communication
Legal Review

Page 131 of 222
CITY OF MUSKEGON

CONTRACT FOR HOUSING EXEMPTION

This Agreement between GenCap Nelson Limited Dividend Housing Association, LLC, a Michigan
LLC whose address is 6938 North Santa Monica Boulevard, Fox Point, WI 53217 (the "Sponsor") and
CITY OF MUSKEGON, whose address is 933 Terrace Street, Muskegon, Michigan (the "City") is made
pursuant to the following terms:

RECITALS

A. The City has adopted Chapter 82, Article II "Taxation" of the City Code of Ordinances,
providing for tax exemption (the "Ordinance") and providing for a service charge in lieu of taxes for a
housing project for low income persons and families to be financed with a Federally-aided Mortgage Loan
or an advance or grant from the Authority pursuant to the provisions of the State Housing Development
Authority Act of 1966 (1966 PA 346, as amended; MCL 125.1401, et seq.) (the "Act");

B. It is acknowledged that it is a proper public purpose of the State of Michigan and its
political subdivisions to provide housing for its low-income persons and families and to encourage the
development of such housing by providing for a service charge in lieu of property taxes in accordance with
the Act. The City is authorized by this Act to establish or charge the service charge to be paid in lieu of taxes
by any or all classes of housing exempt from taxation under this Act at any amount it chooses, not to exceed
the taxes that would be paid but for this Act. It is further acknowledged that such housing for low-income
persons and families is a public necessity, and as the City will be benefited and improved by such housing,
the encouragement of the same by providing real estate tax exemption for such housing is a valid public
purpose. It is further acknowledged that the continuance of the provisions of the Ordinance for tax
exemption and the service charge in lieu of all ad valorem taxes during the period contemplated in this
Agreement are essential to the determination of economic feasibility of the housing projects that is
constructed with financing extended in reliance on such tax exemption.

C. The City acknowledges that the Sponsor identified above has offered, subject to receipt
of an allocation of Low Income Housing Tax Credits and/or receipt of a Mortgage Loan, to
construct/acquire and rehabilitate, own and operate a proposed low-income housing project identified as
Nelson School Apartments on certain property located in the City at 550 West Grand (the "Project") to
serve low income persons and families, and that the Sponsor has offered to pay the City on account of this
housing project an annual service charge for public services in lieu of all ad valorem property taxes.

D. The Sponsor has entered into an agreement to form a limited dividend housing
association LLC to function as owner of the proposed low-income housing Project. The owning entity
is GenCap Nelson Limited Dividend Housing Association, LLC.

E. The City desires to encourage construction and financing of the low-income housing
Project which is identified by the working name of Nelson School Apartments.

F. To further enable and encourage the construction of the housing Project, the Sponsor and
the City enter into this Agreement.

G. The legal description of the Project is set forth in Exhibit A attached to this Agreement.

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NOW, THEREFORE, THE PARTIES AGREE AS FOLLOWS:

1. Definitions.

1.1. "Authority" means the Michigan State Housing Development Authority.

1.2. "Annual Shelter Rent" means the total collections during an agreed annual period
from or paid on behalf of all occupants of a housing project representing rent or occupancy charges,
exclusive of Utilities.

1.3. "Contract Rents" means the total Contract Rents (as defined by the U.S.
Department of Housing and Urban Development in regulations promulgated pursuant to Section 8
of the U.S. Housing Act of 1937, as amended) received in connection with the operation of a
housing project during an agreed annual period, exclusive of Utilities.

1.4. "Low Income Persons and Families" means persons and families eligible to move
into a housing project.

1.5 “ LIHTC" means the low-income housing tax credit administered by the Authority
under Section 42 of the Internal Revenue Code, as amended.

1.6. "Mortgage Loan" means a loan that is Federally-Aided Mortgage (as defined in
Section 11 of the Act) or a loan or grant made or to be made by the Authority to the Sponsor for the
construction and/or permanent financing of the housing project, and secured by a mortgage on the
housing project.

1.7. “Net Shelter Rent” means all collected rents on the subject project property
accounting for point-in-time vacancies.

1.8. "Sponsor" means GenCap Nelson Limited Dividend Housing Association, LLC
and any entity that receives or assumes a Mortgage Loan.

1.9. "Utilities" means charges for gas, electric, water, sanitary sewer and other utilities
furnished to the occupants that are paid by the housing project.

1.10. "Low Income Persons and Families" means persons and families eligible to move
into a housing project utilizing the area median income limits published by the U.S. Department of
Housing and Urban Development for the City of Muskegon MSA or Muskegon County, whichever
is applicable.

2. Grant of Exemption. As contemplated and pursuant to Act 346 of the Public Acts of 1966,
as amended, the State Housing Development Authority (the "Act"), the City hereby grants an exemption
from all ad valorem property taxes attributable to the buildings which consist of rental units offered to eligible
Low-Income Persons and Families as defined above.

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remains subject to income and rent restrictions pursuant to Section 42 of Internal Revenue Service Code of
1986, as amended (the "IRS Code"), or a Mortgage Loan remains outstanding, not to exceed 25 years. The
City agrees to be contractually bound by this Agreement to honor the exemption status of the proposed
project as provided herein and in this Agreement for the entire period during which the Project is subject to
the income and rent restrictions under Section 42 of the IRS Code or is subject to a Mortgage Loan, provided
that the said Mortgage Loan continues outstanding as more particularly set forth in Section 82-50 of the
Ordinance, not to exceed 25 years.

4. Responsibilities of the Sponsor. The Sponsor agrees to perform the following:

4.1 The Sponsor shall pay the service charge and payment in lieu of all ad valorem
taxes on or before July 1 of each year, beginning in the first year following the year in which the
exemption is first effective, and continuing throughout the time the exemption is in effect. The
service charge shall equal four percent (4%) of the Nnet Sshelter Rrents charged for all the LIHTC
certified units in the exempt housing project for the preceding calendar year, exclusive of the utility
charges paid by the project.

4.2 The Sponsor agrees to file all information required by the Ordinance and further
to meet its obligations to the Authority in connection with the Authority's administration of the
low-income housing tax credit program.

4.3 In lieu of the requirement to submit a statement of annual shelter rents and/or
contract rents within 30 days after December 31 of each year, as required by Section 82-55 of the
Ordinance, Developer shall submit an annual audit by April 1st. If not timely filed, or within 30
days after notice to Developer of said delinquency, a penalty of 1.25% of the service charge shall
be imposed. This penalty shall be collectible in the same manner provided in Section 82-54 of the
Ordinance.

5. Interpretation of Financing. The City agrees that it has reviewed the Sponsor's proposal for
the construction or rehabilitation of the Project, and that receipt of a Mortgage Loan from the Authority or
an allocation of low-income housing tax credits by the Authority will satisfy the eligibility requirements of
Section 82-50 of the Ordinance.

6. Contractual Effect of Ordinance. Notwithstanding the provisions of section 15(a)(5) of the
Act to the contrary, a contract between the City and the Sponsor with the Authority as third party beneficiary
under the contract, to provide tax exemption and accept payments in lieu of taxes, as previously described,
is effectuated by enactment of this Ordinance.

7. Payment of Service Charge. The annual service charge in lieu of taxes as established by
this Agreement shall be payable in the same manner as general property taxes are payable to the City and
distributed to the several units levying the general property tax in the same proportion as prevailed with the
general property tax in the previous calendar year. The annual payment for each operating year shall be paid
on or before July lst of the following year. Collection procedures shall be in accordance with the provisions
of the General Property Tax Act (1893 PA 206, as amended; MCL 211.1, et seq.).

8. Limitation on the Payment of Annual Service Charge. Notwithstanding Section 4.1, the
service charge to be paid each year in lieu of taxes for the part of the housing project that is tax exempt but
which is occupied by other than Low Income Persons or Families as defined in Section 1.10 shall be equal
to the full amount of the taxes which would be paid on that portion of the housing project if the housing

Page 134 of 222
project were not tax exempt.

9. Counterparts. This Agreement may be executed in several counterparts and an executed copy
hereof may be relied upon as an original.

10. Binding and Benefit. This Agreement shall be binding upon and inure to the benefit of the
parties hereto and their respective heirs, administrators, personal representatives, successors and assigns.

11. Severability. The various sections and provisions of this Agreement shall be deemed to be
severable, and should any section or provision of this Agreement be declared by any court of competent
jurisdiction to be unconstitutional or invalid the same shall not affect the validity of this Agreement as a
whole or any section or provision of this Agreement, other than the section or provision so declared to be
unconstitutional or invalid.

12. Inconsistent Ordinances. All ordinances or parts of ordinances inconsistent or in conflict
with the provisions of this Agreement are of no effect to the extent of such inconsistency or conflict.

13. Choice of Law; Venue. This Agreement is executed in accordance with, shall be governed
by, and construed and interpreted in accordance with the laws of the State of Michigan. The parties agree
that for purposes of any dispute in connection with this Agreement, the Muskegon County Circuit Court
shall have exclusive personal and subject matter jurisdiction and venue.

IN WITNESS WHEREOF, the parties have signed this Agreement on the following page, on the
dates indicated.

Page 135 of 222
CITY OF MUSKEGON

By: Ken Johnson
Its: Mayor
Dated:

By: Ann Meisch
Its: City Clerk
Dated:

GenCap Nelson Limited Dividend Housing
Association, LLC a Michigan LLC

By:
Print:
Its:
Dated:

Page 136 of 222
EXHIBIT A

LEGAL DESCRIPTION

Parcel 1
That part of Block 373,409 and 410, portions of vacated Monroe Avenue, Washington Avenue,
Johnson Street and an alley in Block 409, all in Revised Plat of 1903, City of Muskegon, Muskegon
County, Michigan, described as: Beginning at a point on the East line of said Block 409 being 110.00
feet North of the Southeast corner of said Block 409; thence North 02 degrees 10 minutes 29 seconds
East, 367.06 feet along said East line; thence South 76 degrees 22 minutes 19 seconds West, 768.54
feet; thence Southeasterly, 346.83 feet along the arc of a 1719.97 foot radius curve to the right, the
long chord of which bears South 36 degrees 46 minutes 53 seconds East, 346.24 feet to the North
right of way line of Grand Street, a 66 foot wide public roadway; thence South 87 degrees 59 minutes
19 seconds East, 371.27 feet along said North right of way line; thence North 01 degrees 06 minutes
34 seconds East, 109.67 feet (platted as 110.00 feet); thence South 87 degrees 59 minutes 19 seconds
East, 152.26 feet (platted as 150.00 feet) to the East line of 8th Avenue and the Point of Beginning.
Containing 5.23 acres of land, Subject to restrictions, easements and rights of way of record.

Page 137 of 222
MJ DMS 31007846v10

Page 138 of 222
Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: September 24, 2024 Title: Clay Commons Municipal Services
Agreement

Submitted by: Jake Eckholm, Development Department: Economic Development
Services Director

Brief Summary:
Spire Development is proposing a new construction affordable family apartment development
called Clay Commons at 30 East Clay. In order to submit their Low Income Housing Tax Credit
application to MSHDA they will require a Municipal Services Agreement approved by the city prior to
the October 1, 2024 application date.

Detailed Summary & Background:
Spire Development was successfully awarded two LIHTC projects by MSHDA in our community in the
2023 round, and are now proposing two more projects. Staff is recommending a 3% Municipal
Services Charge in the attached agreement in order to defray the costs of public service delivery to
the site. This payment should provide roughly $9,000-11,000 annually.

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:
NA Yes No N/A

Fund(s) or Account(s): Budget Amendment Needed:
NA Yes No N/A

Recommended Motion:
Motion to accept the Municipal Services Agreement between the City of Muskegon and Clay
Commons Limited Dividend Housing Association Limited Partnership as presented and to authorize
the mayor and clerk to sign.

Approvals: Guest(s) Invited / Presenting:
Immediate Division
Head Yes

Page 139 of 222
Information
Technology
Other Division Heads
Communication
Legal Review

Page 140 of 222
MUNICIPAL SERVICES AGREEMENT

THIS MUNICIPAL SERVICES AGREEMENT (“Agreement”) is entered into on
this___ day of S e p t e m b e r , 2 0 2 4 between CLAY COMMONS LIMITED
DIVIDENT HOUSING ASSOCIATION LIMITED PARTNERSHIP, a Michigan
limited partnership its successors and/or assigns (the “Sponsor”) and the CITY OF
MUSKEGON, 933 Terrace Street, Muskegon, MI 49440 (the “City”) is made pursuant
to the following terms:

RECITALS

A. Sponsor has assumed an agreement to purchase a site in the City of Muskegon
known as 30 E Clay Avenue for the construction of a proposed low-income housing project (the
“Project”).

C. The City, through its Police and Fire Departments and otherwise, provides
Municipal Services within the City. The Project will have special needs for these types of
Municipal Services and Sponsor acknowledges that such needs may be greater than typically
situated residential developments.

D. The Sponsor desires to guarantee that certain Municipal Services will be provided to
the Project during the term that the Payment in Lieu of Tax (hereinafter referred to as the “Contract
for Housing Exemption”) Ordinance for this Project is in place, such Municipal Services to include,
but not be limited to:

2. Other miscellaneous services as may, from time to time, be mutually agreed to for
the benefit of the Project;

(All of the above collectively referred to as “Municipal Services”)

4. Nothing in this Agreement shall be deemed to waive any defense to claims based
on sovereign or governmental immunity.

Page 141 of 222
AGREEMENT

The parties agree as follows:

1. Provision of Services. The City will provide the Municipal Services.

2. Payment. The Sponsor shall pay a service charge on or before July 1, of each year
during the time the CONTRACT FOR HOUSING EXEMPTION is in effect (the “Municipal
Service Fee”). The Municipal Service Fee shall be three (3%) percent of the net rent, which
includes reductions for vacancies and collection losses, received annually, reduced by project paid
utilities, starting during the calendar year that a unit in the Project is placed in service. The first year
shall be pro-rated based on that portion of the City’s fiscal year (July 1 – June 30) that any unit is
ready to be placed in service.

4. Audit. Sponsor shall submit, upon request, a copy of the annual audit of the Project
prepared by an independent CPA’s along with the payment of the Municipal Service Fee.

5. Exclusive Benefit. The obligations of the Sponsor hereunder are imposed solely
and exclusively for the benefit of the City and no other person or entity shall have the standing to
enforce such obligations or be deemed to be beneficiaries of such obligations.

6. Remedies. The Sponsor agrees that if it does not perform its obligations under this
Agreement the City is entitled to pursue any and all remedies legal or equitable that it is entitled to
under Michigan law. The Sponsor agrees to be liable for all costs of collection including
reasonable attorney's fees and costs incurred by the City in the enforcement of the terms of this
Agreement, if Sponsor is found to be in default of this Agreement by a court of competent
jurisdiction.

7. Assignment. Upon the written consent of the City, the Sponsor may transfer or
assign its rights and obligations under this Agreement to a buyer (“Transferee”) of the Project. The
Transferee must agree to assume the Sponsor’s obligations under this Agreement and the
Development Agreement which has been executed by the Sponsor with the City. Upon assignment
and assumption of this Agreement by the Transferee (or an affiliate, as provided below), the
Sponsor shall be relieved of any further liabilities or obligations accruing under this Agreement or
the Development Agreement. Notwithstanding the foregoing, the Sponsor may assign this
Agreement, without the written consent of the City, to an affiliate of Sponsor (provided that such
affiliate agrees to assume the Sponsor’s obligations hereunder and provided that the Sponsor and
assignee give prior notice of the assignment to the City with evidence that the assignee has agreed
to assume the obligations of the Sponsor).

Page 142 of 222
8. Severability. If any term or condition of this Agreement is found to be void,
invalid, or unenforceable, the validity or enforceability of the remaining terms and conditions shall
not be affected or impaired and will continue in full force and effect.

9. Notices. All notices under this Agreement must be in writing and sent to the
respective parties as follows:

If to Sponsor:

Attn: Thomas A. Grywalski
Clay Commons Limited Dividend Housing Association Limited Partnership
330 West Spring Street, Suite 430
Columbus, Ohio 43215

If to the City:

City of Muskegon
Attn: City Manager
933 Terrace Street
Muskegon, MI 49440

Every notice must be in writing and sent by one of the following methods:

a. Personal delivery, in which case delivery shall be deemed to occur the day of the
delivery;

Page 143 of 222
Either party may change the address provided in this paragraph for itself or its attorney by
providing notice of such change to the other party as required in this paragraph.

12. Binding Effect. This Agreement shall be binding on the parties, their heirs,
successors, and assigns.

13. Amendments. There shall be no modification or amendments to this Agreement,
including this section, unless they are in writing and signed by all the parties to this Agreement.

14. Governing Law. This Agreement has been executed in the State of Michigan, and
shall be governed by Michigan law.

{Signatures on next page}

Page 144 of 222
Municipal Services Agreement
Signature Page

IN WITNESS WHEREOF, this Municipal Services Agreement is executed as of the day and year
first written above.

CITY:

CITY OF MUSKEGON

Dated: _____________, 2023 By:
Ken Johnson, Mayor

Dated: _ ___________, 2023 By:
Ann Meisch, City Clerk

SPONSOR:

CLAY COMMONS LIMITED DIVIDEND HOUSING
ASSOCIATION LIMITED PARTNERSHIP,
a Michigan limited partnership

By: Clay Commons GP, LLC
Its: Managing Member

By: Spire Real Estate Holdings, LLC,
Its: Managing Member

By:
Name:
Its: Authorized Signer

Page 145 of 222
Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: September 24, 2024 Title: Clay Commons Contract for Housing
Exemption

Submitted by: Jake Eckholm, Development Department: Economic Development
Services Director

Brief Summary:
Spire Development is seeking approval from MSHDA to receive Low Income Housing Tax Credits to
facilitate the construction of a new family apartment complex at 30 E. Clay. They require an
approved Contract for Housing Exemption by the City before the 10/1/2024 application date.

Detailed Summary & Background:
Spire has successfully been awarded two LIHTC allocations on their 2023 project submissions in our
community, and are now submitting two more to MSHDA in 2024. Notably, they are proposing new
construction of affordable family housing in the downtown area, directly across the street from United
Way at 30 E. Clay Street. They are requesting a 4% annual PILOT payment, which is one point lower
than the PILOT policy recommends. Their reasoning for this request is the significant contamination
they have found on the site during due diligence and the additional costs it will place on the project.
Staff recommends approval, as tools like Brownfield TIF that a market rate developer may utilize for
this issue are not available to LIHTC development due to the lack of ad valorem property tax
payments.

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:
NA Yes No N/A

Fund(s) or Account(s): Budget Amendment Needed:
NA Yes No N/A

Recommended Motion:
Motion to accept the Contract for Housing Exemption between the City of Muskegon and CLAY
COMMONS LIMITED DIVIDEND HOUSING ASSOCIATION LIMITED PARTNERSHIP as presented and
authorize the mayor and clerk to sign.

Page 146 of 222
Approvals: Guest(s) Invited / Presenting:
Immediate Division
Head Yes

Information
Technology
Other Division Heads
Communication
Legal Review

Page 147 of 222
CITY OF MUSKEGON

CONTRACT FOR HOUSING TAX EXEMPTION

This Agreement between CLAY COMMONS LIMITED DIVIDEND HOUSING ASSOCIATION
LIMITED PARTNERSHIP, a Michigan limited partnership, whose address is 330 West Spring Street,
Suite 430, Columbus, Ohio 43215 (the "Sponsor") and CITY OF MUSKEGON, whose address is 933
Terrace Street, Muskegon, Michigan (the "City") is made pursuant to the following terms:

RECITALS

C. The City acknowledges that the Sponsor (as identified above) has offered, subject to
receipt of an allocation of Low Income Housing Tax Credits by the Michigan State Housing Development
Authority, to construct/acquire, own and operate a proposed low-income housing project identified as Clay
Commons on certain property located in the City at 30 E Clay Avenue (the "Project") to serve low income
persons and families, and that the Sponsor has offered to pay the City on account of this housing project an
annual service charge for public services in lieu of all ad valorem property taxes.

D. The Sponsor, or an affiliate of the Sponsor to be formed, has entered or will enter into an
agreement to form a limited dividend housing association limited partnership or limited liability company
to function as owner of the proposed low-income housing Project. The owning entity to be formed will be
identified as CLAY COMMONS LIMITED DIVIDEND HOUSING ASSOCIATION LIMITED
PARTNERSHIP.

E. The City desires to encourage construction and financing of the low-income housing
Project which is identified by the working name of Clay Commons

F. To further enable and encourage the construction of the housing Project, the Sponsor and
the City enter into this Agreement.

Page 148 of 222
G. The legal description of the Project is set forth in Exhibit A attached to this Agreement.

NOW, THEREFORE, THE PARTIES AGREE AS FOLLOWS:

1. Definitions.

1.1. "Authority" means the Michigan State Housing Development Authority.

1.4. "Low Income Persons and Families" means persons and families eligible to move
into a housing project governed by Section 42 of the Internal Revenue Code, as amended, utilizing
the area median income limits published by the U.S. Department of Housing and Urban
Development for the City of Muskegon MSA or Muskegon County, whichever is applicable..

1.5 "LIHTC Program" means the low Low income Income housing Housing tax Tax
credit Credit program administered by the Authority under Section 42 of the Internal Revenue
Code, as amended.

1.6. "Mortgage Loan" means a loan that is Federally-Aided Mortgage (as defined in
Section 11 of the Act) or a loan or grant made or to be made by the Authority to the Sponsor for the
construction, acquisition and/or permanent financing of the housing project, and secured by a
mortgage on the housing project.

1.7. “Net Shelter Rents” means all collected rents on the subject project property
accounting for point-in-time vacanciesAnnual Shelter Rent.

1.8. "Sponsor" means CLAY COMMONS LIMITED DIVIDEND HOUSING
ASSOCIATION LIMITED PARTNERSHIP, and any entity that receives or assumes a Mortgage
Loan.

1.9. "Utilities" means charges for gas, electric, water, sanitary sewer and other utilities
furnished to the occupants that are paid by the housing project.

2. Class of Housing Projects. It is determined that the class of housing projects to which the

Page 149 of 222
tax exemption shall apply and for which a service charge shall be paid in lieu of such taxes shall be housing
projects for Low Income Persons and Families that are financed with a Mortgage Loan or the LIHTC
Program. It is further determined that Clay Commons is of this class.

2.3. Establishment of Annual Service ChargeGrant of Exemption. As contemplated and
pursuant to the Act 346 of the Public Acts of 1966, as amended, the State Housing Development Authority
(the "Act"), the City hereby grants an exemption from all ad valorem property taxes attributable to the
buildings which consist of rental units offered to eligible Low-Income Persons and Families as defined
above. Housing projects within the eligible class set forth in Section 2 above and the property on which
they are or will be located shall be exempt from all ad valorem property taxes from and after the
commencement of construction or rehabilitation. The City acknowledges that the Sponsor and the
Authority, in the case of a Sponsor receiving an Authority-financed Mortgage Loan, or the Sponsor and the
mortgage lender, in the case of a Sponsor receiving a Federally aided Mortgage Loan, have established the
economic feasibility of the housing projects for exemption from all ad valorem property taxes and a
payment in lieu of taxes as established in this Ordinance. Therefore, the City will accept payment of an
annual service charge for the public services in lieu of all ad valorem property taxes. The annual service
charge shall be equal to 4% of the Net Shelter Rents actually collected by the housing project during each
operating year.

3.4. Term of Exemption. This exemption shall begin from and after the commencement of
construction or rehabilitationon the tax day of the year in which a final certificate of compliance or occupancy is issued
by the City, and shall continue for the period the housing project remains subject to income and rent restrictions
pursuant to Section 42 of Internal Revenue Service Code of 1986, as amended (the "IRS Code"), or a
Mortgage Loan remains outstanding, not to exceed 25 years. The City agrees to be contractually bound by
this Agreement to honor the exemption status of the proposed project as provided herein and in this
Agreement for the entire period during which the Project is subject to the income and rent restrictions under
Section 42 of the IRS Code or is subject to a Mortgage Loan, provided that the said Mortgage Loan continues
outstanding as more particularly set forth in Section 82-50 of the Ordinance, not to exceed 25 years.

4.5. Responsibilities of the Sponsor. The Sponsor agrees to perform the following:

4.15.1 The Sponsor shall pay the service charge and payment in lieu of all ad valorem
taxes on or before July 1 of each year, beginning in the first year following the year in which the
exemption is first effective, and continuing throughout the time the exemption is in effect. The
service charge shall equal four percent (4%) of the net Net shelter Shelter rents Rents charged for
all the LIHTC certified units in the exempt housing project for the preceding calendar year,
exclusive of the utility charges paid by the project.

4.25.2 The Sponsor agrees to file all information required by the Ordinance and further
to meet its obligations to the Authority in connection with the Authority's administration of the
low-income housing tax credit program.

4.35.3 In lieu of the requirement to submit a statement of annual shelter rents and/or
contract rents within 30 days after December 31 of each year, as required by Section 82-55 of the
Ordinance, Developer Sponsor shall submit an annual audit by April 1st. If not timely filed, or
within 30 days after notice to Developer Sponsor of said delinquency, a penalty of 1.25% of the
service charge shall be imposed. This penalty shall be collectible in the same manner provided in
Section 82-54 of the Ordinance.

Page 150 of 222
5.6. Interpretation of Financing. The City agrees that it has reviewed the Sponsor's proposal for
the construction or rehabilitation of the Project, and that receipt of a Mortgage Loan from the Authority or
an allocation of low-income housing tax credits by the Authority will satisfy the eligibility requirements of
Section 82-50 of the Ordinance.

6.7. Contractual Effect of Ordinance. Notwithstanding the provisions of section 15(a)(5) of the
Act to the contrary, a contract between the City and the Sponsor with the Authority as third party beneficiary
under the contract, to provide tax exemption and accept payments in lieu of taxes, as previously described,
is effectuated by enactment of this Ordinance.

7.8. Payment of Service Charge. The annual service charge in lieu of taxes as established by
this Agreement shall be payable in the same manner as general property taxes are payable to the City and
distributed to the several units levying the general property tax in the same proportion as prevailed with the
general property tax in the previous calendar year. The annual payment for each operating year shall be paid
on or before July lst of the following year. Collection procedures shall be in accordance with the provisions
of the General Property Tax Act (1893 PA 206, as amended; MCL 211.1, et seq.).

8.9. Limitation on the Payment of Annual Service Charge. Notwithstanding Section 4.1, the
service charge to be paid each year in lieu of taxes for the part of the housing project that is tax exempt but
which is occupied by other than Low Income Persons or Families as defined in Section 1.10 4 shall be equal
to the full amount of the taxes which would be paid on that portion of the housing project if the housing
project were not tax exempt.

9.10. Counterparts. This Agreement may be executed in several counterparts and an executed copy
hereof may be relied upon as an original.

10.11. Binding and Benefit. This Agreement shall be binding upon and inure to the benefit of the
parties hereto and their respective heirs, administrators, personal representatives, successors and assigns.

11.12. Severability. The various sections and provisions of this Agreement shall be deemed to be
severable, and should any section or provision of this Agreement be declared by any court of competent
jurisdiction to be unconstitutional or invalid the same shall not affect the validity of this Agreement as a
whole or any section or provision of this Agreement, other than the section or provision so declared to be
unconstitutional or invalid.

12.13. Inconsistent Ordinances. All ordinances or parts of ordinances inconsistent or in conflict
with the provisions of this Agreement are of no effect to the extent of such inconsistency or conflict.

13.14. Choice of Law; Venue. This Agreement is executed in accordance with, shall be governed
by, and construed and interpreted in accordance with the laws of the State of Michigan. The parties agree
that for purposes of any dispute in connection with this Agreement, the Muskegon County Circuit Court
shall have exclusive personal and subject matter jurisdiction and venue.

IN WITNESS WHEREOF, the parties have signed this Agreement on the following page, on the
dates indicated.

Page 151 of 222
CITY OF MUSKEGON

By: Ken Johnson
Its: Mayor
Dated:

By: Ann Meisch
Its: City Clerk
Dated:

CLAY COMMONS LIMITED DIVIDEND
HOUSING ASSOCIATION LIMITED
PARTNERSHIP.
a Michigan limited partnership

By: Clay Commons GP, LLC,
Its: General Partner

By: Spire Real Estate Holdings, LLC,
Its: Managing Member

By:
Print Name:
Its: Authorized Member

Dated:

Page 152 of 222
EXHIBIT A

LEGAL DESCRIPTION

MJ DMS 31007846v10

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Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: September 24, 2024 Title: Spring Street Crossing Municipal Services
Agreement

Submitted by: Jake Eckholm, Development Department: Economic Development
Services Director

Brief Summary:
Spire Development is proposing a new construction affordable family apartment complex at 48 East
Western Avenue and is applying to MSHDA for Low Income Housing Tax Credits. They require a
Municipal Services Agreement approved by the City prior to the 10/1/2024 application date.

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:
NA Yes No N/A

Fund(s) or Account(s): Budget Amendment Needed:
NA Yes No N/A

Recommended Motion:
Motion to accept the Municipal Services Agreement between the City of Muskegona and SPRING
STREET CROSSING LIMITED DIVIDEND HOUSING ASSOCIATION LIMITED PARTNERSHIP as presented and
authorize the mayor and clerk to sign.

Approvals: Guest(s) Invited / Presenting:
Immediate Division
Head Yes

Information

Page 154 of 222
Technology
Other Division Heads
Communication
Legal Review

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MUNICIPAL SERVICES AGREEMENT

THIS MUNICIPAL SERVICES AGREEMENT (“Agreement”) is entered into on
this___ day of S e p t e m b e r , 2 0 2 4 between SPRING STREET CROSSING
LIMITED DIVIDEND HOUSING ASSOCIATION LIMITED PARTNERSHIP, a Michigan
limited partnership its successors and/or assigns (the “Sponsor”) and the CITY OF
MUSKEGON, 933 Terrace Street, Muskegon, MI 49440 (the “City”) is made pursuant
to the following terms:

RECITALS

A. Sponsor has assumed an agreement to purchase a site in the City of Muskegon
known as 48 E. Western Avenue for the construction of a proposed low-income housing project
(the “Project”).

C. The City, through its Police and Fire Departments and otherwise, provides
Municipal Services within the City. The Project will have special needs for these types of
Municipal Services and Sponsor acknowledges that such needs may be greater than typically
situated residential developments.

2. Other miscellaneous services as may, from time to time, be mutually agreed to for
the benefit of the Project;

(All of the above collectively referred to as “Municipal Services”)

4. Nothing in this Agreement shall be deemed to waive any defense to claims based
on sovereign or governmental immunity.

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AGREEMENT

The parties agree as follows:

1. Provision of Services. The City will provide the Municipal Services.

4. Audit. Sponsor shall submit, upon request, a copy of the annual audit of the Project
prepared by an independent CPA’s along with the payment of the Municipal Service Fee.

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8. Severability. If any term or condition of this Agreement is found to be void,
invalid, or unenforceable, the validity or enforceability of the remaining terms and conditions shall
not be affected or impaired and will continue in full force and effect.

9. Notices. All notices under this Agreement must be in writing and sent to the
respective parties as follows:

If to Sponsor:

Attn: Thomas A. Grywalski
Clay Commons Limited Dividend Housing Association Limited Partnership
330 West Spring Street, Suite 430
Columbus, Ohio 43215

If to the City:

City of Muskegon
Attn: City Manager
933 Terrace Street
Muskegon, MI 49440

Every notice must be in writing and sent by one of the following methods:

a. Personal delivery, in which case delivery shall be deemed to occur the day of the
delivery;

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Either party may change the address provided in this paragraph for itself or its attorney by
providing notice of such change to the other party as required in this paragraph.

12. Binding Effect. This Agreement shall be binding on the parties, their heirs,
successors, and assigns.

13. Amendments. There shall be no modification or amendments to this Agreement,
including this section, unless they are in writing and signed by all the parties to this Agreement.

14. Governing Law. This Agreement has been executed in the State of Michigan, and
shall be governed by Michigan law.

{Signatures on next page}

Page 159 of 222
Municipal Services Agreement
Signature Page

IN WITNESS WHEREOF, this Municipal Services Agreement is executed as of the day and year
first written above.

CITY:

CITY OF MUSKEGON

Dated: _____________, 2023 By:
Ken Johnson, Mayor

Dated: _ ___________, 2023 By:
Ann Meisch, City Clerk

SPONSOR:

SPRING STREET CROSSING LIMITED DIVIDEND
HOUSING ASSOCIATION LIMITED PARTNERSHIP a
Michigan limited partnership

By: Spring Street Crossing GP, LLC
Its: Managing Member

By: Spire Real Estate Holdings, LLC,
Its: Managing Member

By:
Name:
Its: Authorized Signer

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Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: September 24, 2024 Title: Spring Street Crossing Contract for Housing
Exemption

Submitted by: Jake Eckholm, Development Department: Economic Development
Services Director

Brief Summary:
Spire Development is seeking Low Income Housing Tax Credits from MSHDA to facilitate the new
construction of an affordable family apartment complex at 48 E. Western Avenue. They require a
contract for housing exemption approved by the city before the 10/1/2024 application date.

Detailed Summary & Background:
Spire has successfully been awarded two LIHTC allocations on their 2023 project submissions in our
community, and are now submitting two more to MSHDA in 2024. Notably, they are proposing new
construction of affordable family housing in the downtown area, directly across the street from Witt
Buick at 48 E. Western Avenue. They are requesting a 4% annual PILOT payment, which is one point
lower than the PILOT policy recommends. Their reasoning for this request is the significant
contamination they have found on the site during due diligence and the additional costs it will place
on the project. Staff recommends approval, as tools like Brownfield TIF that a market rate developer
may utilize for this issue are not available to LIHTC development due to the lack of ad valorem
property tax payments.

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:
NA Yes No N/A

Fund(s) or Account(s): Budget Amendment Needed:
NA Yes No N/A

Recommended Motion:
Motion to approve the Contract for Housing Exemption between the City of Muskegon and SPRING
STREET CROSSING LIMITED DIVIDEND HOUSING ASSOCIATION LIMITED PARTNERSHIP as presented and
authorize the mayor and clerk to sign.

Page 161 of 222
Approvals: Guest(s) Invited / Presenting:
Immediate Division
Head Yes

Information
Technology
Other Division Heads
Communication
Legal Review

Page 162 of 222
CITY OF MUSKEGON

CONTRACT FOR HOUSING TAX EXEMPTION

This Agreement between SPRING STREET CROSSING LIMITED DIVIDEND HOUSING
ASSOCIATION LIMITED PARTNERSHIP, a Michigan limited partnership, whose address is 330
West Spring Street, Suite 430, Columbus, Ohio 43215 (the "Sponsor") and CITY OF MUSKEGON,
whose address is 933 Terrace Street, Muskegon, Michigan (the "City") is made pursuant to the following
terms:

RECITALS

B. It is acknowledged that it is a proper public purpose of the State of Michigan and its
political subdivisions to provide housing for its low-income persons and families and to encourage the
development of such housing by providing for a service charge in lieu of property taxes in accordance with
the Act. The City is authorized by this Act to establish or charge the service charge to be paid in lieu of taxes
by any or all classes of housing exempt from taxation under this Act at any amount it chooses, not to exceed
the taxes that would be paid but for this Act. It is further acknowledged that such housing for persons and
families is a public necessity, and as the City will be benefited and improved by such housing, the
encouragement of the same by providing real estate tax exemption for such housing is a valid public
purpose. It is further acknowledged that the continuance of the provisions of the Ordinance for tax
exemption and the service charge in lieu of all ad valorem taxes during the period contemplated in this
Agreement are essential to the determination of economic feasibility of the housing projects that is
constructed with financing extended in reliance on such tax exemption.

C. The City acknowledges that the Sponsor (as identified above) has offered, subject to
receipt of an allocation of Low Income Housing Tax Credits by the Michigan State Housing Development
Authority, to construct/acquire, own and operate a proposed low-income housing project identified as
Spring Street Crossing on certain property located in the City at 48 E. Western Avenue (the "Project") to
serve low income persons and families, and that the Sponsor has offered to pay the City on account of this
housing project an annual service charge for public services in lieu of all ad valorem property taxes.

D. The Sponsor, or an affiliate of the Sponsor to be formed, has entered or will enter into an
agreement to form a limited dividend housing association limited partnership or limited liability company
to function as owner of the proposed low-income housing Project. The owning entity to be formed will be
identified as SPRING STREET CROSSING LIMITED DIVIDEND HOUSING ASSOCIATION
LIMITED PARTNERSHIP.

E. The City desires to encourage construction and financing of the low-income housing
Project which is identified by the working name of Spring Street Crossing.

F. To further enable and encourage the construction of the housing Project, the Sponsor and

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the City enter into this Agreement.

G. The legal description of the Project is set forth in Exhibit A attached to this Agreement.

NOW, THEREFORE, THE PARTIES AGREE AS FOLLOWS:

1. Definitions.

1.1. "Authority" means the Michigan State Housing Development Authority.

1.5 "LIHTC Program" means the Low Income Housing Tax Credit program administered
by the Authority under Section 42 of the Internal Revenue Code, as amended.

1.6. "Mortgage Loan" means a loan that is Federally-Aided (as defined in Section 11 of
the Act) or a loan or grant made or to be made by the Authority to the Sponsor for the construction,
acquisition and/or permanent financing of the housing project, and secured by a mortgage on the
housing project.

1.7. “Net Shelter Rents” means Annual Shelter Rent.

1.8. "Sponsor" means SPRING STREET CROSSING LIMITED DIVIDEND
HOUSING ASSOCIATION LIMITED PARTNERSHIP, and any entity that receives or assumes
a Mortgage Loan.

1.9. "Utilities" means charges for gas, electric, water, sanitary sewer and other utilities
furnished to the occupants that are paid by the housing project.

2. Class of Housing Projects. It is determined that the class of housing projects to which the
tax exemption shall apply and for which a service charge shall be paid in lieu of such taxes shall be housing
projects for Low Income Persons and Families that are financed with a Mortgage Loan or the LIHTC
Program. It is further determined that Spring Street Crossing is of this class.

3. Establishment of Annual Service Charge. As contemplated and pursuant to the Act, the
City hereby grants an exemption from all ad valorem property taxes attributable to the buildings which

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consist of rental units offered to eligible Low-Income Persons and Families as defined above. Housing
projects within the eligible class set forth in Section 2 above and the property on which they are or will be
located shall be exempt from all ad valorem property taxes from and after the commencement of
construction or rehabilitation. The City acknowledges that the Sponsor and the Authority, in the case of a
Sponsor receiving an Authority-financed Mortgage Loan, or the Sponsor and the mortgage lender, in the
case of a Sponsor receiving a Federally aided Mortgage Loan, have established the economic feasibility of
the housing projects for exemption from all ad valorem property taxes and a payment in lieu of taxes as
established in this Ordinance. Therefore, the City will accept payment of an annual service charge for the
public services in lieu of all ad valorem property taxes. The annual service charge shall be equal to 4% of
the Net Shelter Rents actually collected by the housing project during each operating year.

4. Term of Exemption. This exemption shall begin from and after the commencement of
construction or rehabilitation, and shall continue for the period the housing project remains subject to income
and rent restrictions pursuant to Section 42 of Internal Revenue Service Code of 1986, as amended (the "IRS
Code"), or a Mortgage Loan remains outstanding, not to exceed 25 years. The City agrees to be contractually
bound by this Agreement to honor the exemption status of the proposed project as provided herein and in
this Agreement for the entire period during which the Project is subject to the income and rent restrictions
under Section 42 of the IRS Code or is subject to a Mortgage Loan, provided that the said Mortgage Loan
continues outstanding as more particularly set forth in Section 82-50 of the Ordinance, not to exceed 25
years.

5. Responsibilities of the Sponsor. The Sponsor agrees to perform the following:

5.1 The Sponsor shall pay the service charge and payment in lieu of all ad valorem
taxes on or before July 1 of each year, beginning in the first year following the year in which the
exemption is first effective, and continuing throughout the time the exemption is in effect. The
service charge shall equal four percent (4%) of the Net Shelter Rents charged for all the LIHTC
certified units in the exempt housing project for the preceding calendar year.

5.2 The Sponsor agrees to file all information required by the Ordinance and further
to meet its obligations to the Authority in connection with the Authority's administration of the
low-income housing tax credit program.

5.3 In lieu of the requirement to submit a statement of annual shelter rents or contract
rents within 30 days after December 31 of each year, as required by Section 82-55 of the Ordinance,
Sponsor shall submit an annual audit by April 1st. If not timely filed, or within 30 days after notice
to Sponsor of said delinquency, a penalty of 1.25% of the service charge shall be imposed. This
penalty shall be collectible in the same manner provided in Section 82-54 of the Ordinance.

6. Interpretation of Financing. The City agrees that it has reviewed the Sponsor's proposal for
the construction or rehabilitation of the Project, and that receipt of a Mortgage Loan from the Authority or
an allocation of low-income housing tax credits by the Authority will satisfy the eligibility requirements of
Section 82-50 of the Ordinance.

7. Contractual Effect of Ordinance. Notwithstanding the provisions of section 15(a)(5) of the
Act to the contrary, a contract between the City and the Sponsor with the Authority as third party beneficiary
under the contract, to provide tax exemption and accept payments in lieu of taxes, as previously described,
is effectuated by enactment of this Ordinance.

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8. Payment of Service Charge. The annual service charge in lieu of taxes as established by
this Agreement shall be payable in the same manner as general property taxes are payable to the City and
distributed to the several units levying the general property tax in the same proportion as prevailed with the
general property tax in the previous calendar year. The annual payment for each operating year shall be paid
on or before July lst of the following year. Collection procedures shall be in accordance with the provisions
of the General Property Tax Act (1893 PA 206, as amended; MCL 211.1, et seq.).

9. Limitation on the Payment of Annual Service Charge. Notwithstanding Section 4.1, the
service charge to be paid each year in lieu of taxes for the part of the housing project that is tax exempt but
which is occupied by other than Low Income Persons or Families as defined in Section 1.4 shall be equal
to the full amount of the taxes which would be paid on that portion of the housing project if the housing
project were not tax exempt.

10. Counterparts. This Agreement may be executed in several counterparts and an executed copy
hereof may be relied upon as an original.

11. Binding and Benefit. This Agreement shall be binding upon and inure to the benefit of the
parties hereto and their respective heirs, administrators, personal representatives, successors and assigns.

12. Severability. The various sections and provisions of this Agreement shall be deemed to be
severable, and should any section or provision of this Agreement be declared by any court of competent
jurisdiction to be unconstitutional or invalid the same shall not affect the validity of this Agreement as a
whole or any section or provision of this Agreement, other than the section or provision so declared to be
unconstitutional or invalid.

13. Inconsistent Ordinances. All ordinances or parts of ordinances inconsistent or in conflict
with the provisions of this Agreement are of no effect to the extent of such inconsistency or conflict.

14. Choice of Law; Venue. This Agreement is executed in accordance with, shall be governed
by, and construed and interpreted in accordance with the laws of the State of Michigan. The parties agree
that for purposes of any dispute in connection with this Agreement, the Muskegon County Circuit Court
shall have exclusive personal and subject matter jurisdiction and venue.

IN WITNESS WHEREOF, the parties have signed this Agreement on the following page, on the
dates indicated.

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CITY OF MUSKEGON

By: Ken Johnson
Its: Mayor
Dated:

By: Ann Meisch
Its: City Clerk
Dated:

SPRING STREET CROSSING LIMITED
DIVIDEND HOUSING ASSOCIATION LIMITED
PARTNERSHIP.
a Michigan limited partnership

By: Spring Street Crossing GP, LLC,
Its: General Partner

By: Spire Real Estate Holdings, LLC,
Its: Managing Member

By:
Print Name:
Its: Authorized Member

Dated:

Page 167 of 222
EXHIBIT A

LEGAL DESCRIPTION

MJ DMS 31007846v10

Page 168 of 222
Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: September 24, 2024 Title: Sale of 32 W. Western Avenue to Spire
Development

Submitted by: Jake Eckholm, Development Department: Economic Development
Services Director

Brief Summary:
Spire Development has requested to purchase vacant city-owned property immediately adjacent to
the property is has under contract for Spring Street Crossing for a price of $190,800.

Detailed Summary & Background:
Spire is proposing a new construction affordable family apartment complex at 48 E. Western Avenue
called Spring Street Crossing. They have requested to add this .53 acre parcel to the project in order
to ensure they have sufficient space for adequate parking, landscaping, and zoning compliance.
The price per acre is the same as their purchase rate for the adjacent private sector properties. The
revenues generated are proposed to be attributed to our upcoming Housing Fund in this year's
budget, in order to be leveraged for further housing investments in the community.

Goal/Focus Area/Action Item Addressed:

Key Focus Areas:
Diverse housing types
Increase revenue

Goal/Action Item:
2027 Goal 2: Economic Development Housing and Business

Amount Requested: Budgeted Item:
$190,800 in revenue Yes No N/A

Fund(s) or Account(s): Budget Amendment Needed:
Housing Fund (No Fund Number Yet) Yes No N/A

Recommended Motion:
Motion to accept the purchase agreement for 32 E. Western Avenue as presented and authorize the
mayor and clerk to sign.

Approvals: Guest(s) Invited / Presenting:
Immediate Division
Head Yes

Information
Technology

Page 169 of 222
Other Division Heads
Communication
Legal Review

Page 170 of 222
CONTRACT FOR PURCHASE OF REAL ESTATE

Spire Development, Inc. (the “Purchaser”), with an address of 330 West Spring Street, Suite 430,
Columbus, Ohio 43215, hereby agrees to purchase from City of Muskegon (the “Seller”), with a mailing
address of 933 Terrace St, Muskegon, Michigan 49443, that certain real estate owned by Seller, located
generally near 32 W Western Avenue, Muskegon, MI 49440 and identified as a portion of Parcel/Tax ID
number(s) 61-24-205-554-0001-20 consisting of 0.53 +/- acres and generally described and/or depicted on
EXHIBIT A attached hereto and incorporated herein, together with all buildings, improvements, and
tangible personal property located thereon, all rights, privileges and appurtenances thereto, and Seller’s
interest in and to any and all leases and rents (collectively referred to as the “Real Estate”) subject to and
upon the following terms and conditions (the “Contract”):

1. Purchase Price. The purchase price (the “Purchase Price”) for the Real Estate, subject to
all adjustments and credits hereinafter provided, shall be $190,800. The Purchase Price, less all Earnest
Money (as hereinafter defined), shall be paid by wire transfer of readily available funds at Closing.

2. Earnest Money Deposit. Within ten (10) business days after date that this Contract is
executed by both Purchaser and Seller (the “Acceptance Date”), Purchaser shall deposit with Star Title
Agency LLC (the “Title Company”), $2,000 as an earnest money deposit (the “Earnest Money”). All
Earnest Money shall at all times be applicable to the purchase price for the duration of this Contract. The
Earnest Money shall be refundable to the Purchaser throughout the Inspection Period, at any time if Seller
breaches or defaults hereunder or as otherwise set forth in this Contract.

3. Closing Date. Subject to all other terms and conditions set forth in this Contract, the
transaction shall schedule to close in the office of the Title Company or such other place as the parties may
mutually agree upon in writing, on or before the forty fifth (45th) day after the expiration of the Inspection
Period. The exact date of closing (the “Closing Date”) shall be determined by a written notice from
Purchaser to Seller at least seven (7) days prior to the closing.

4. Closing Documents. At Closing, Seller shall deliver: (a) a fully executed Quitclaim Deed
conveying to Purchaser marketable fee simple title to the Real Estate free of any and all liens,
encumbrances, easements, restrictions, covenants or other title defects that unreasonably interfere with the
Intended Use (as defined below), except the lien of non-delinquent Real Estate taxes, and other matters, if
any, disclosed in the Title Commitment (as hereinafter defined) and approved by Purchaser as provided in
Section 8.2; (b) a Seller’s Affidavit in form and substance satisfactory to Purchaser and the Title Company;
(c) a non-foreign person affidavit in form and substance satisfactory to Purchaser and the Title Company;
and (d) all other documents and/or funds, if any, required by Purchaser.

5. Date of Possession. Possession of the Real Estate shall be delivered to Purchaser on the
Closing Date, free and clear of all rights and claims of any other party to the ownership of the Real Estate.

6. Taxes and Assessment; Closing Costs. Purchaser assumes and agrees to pay all
assessments for governmental and private improvements becoming a lien after the Closing Date and its pro
rata portion of the real estate taxes assessed for the calendar year in which closing occurs (based upon the
number of days remaining in such calendar year after the Closing Date). Seller shall pay all assessments
for governmental and private improvements not assumed by Purchaser and both installments of real estate
taxes payable during the prior calendar year which remain unpaid and its pro rata portion of the real estate
taxes assessed for the calendar year in which closing occurs (based upon the number of days in such
calendar year prior to and including the Closing Date). . Purchaser will pay the premium for the Title Policy
in the amount of the Purchase Price and any fees in connection with preparation of the sale documents.
Seller to pay for the Deed preparation. Purchaser will pay all costs associated with recording the Deed and

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financing documents (if any). The Earnest Money shall be credited against the Purchase Price at closing.
Purchaser and Seller shall each pay their own attorney fees related to the closing of the transaction.

7. Intended Use. Purchaser’s intended use of the Real Estate shall be a multi-family rental
housing development, or as determined by Purchaser in its sole and reasonable discretion (the “Intended
Use”).

8. Conditions of Performance. Purchaser’s obligations under this Contract are subject to the
timely and complete satisfaction, in Purchaser’s sole discretion, of the following conditions, unless waived
in writing by Purchaser:

8.1 Survey. Purchaser, at its cost and expense, shall order a current survey of the Real Estate
(the “Survey”), by a registered land surveyor designated by Purchaser. Seller shall provide to Purchaser, to
the extent that they are in Seller’s possession, any surveys and reports on the physical and environmental
aspects of the Real Estate. The Survey shall be in form and substance acceptable to Purchaser in its sole
discretion.

8.2 Title Insurance. Purchaser, at its cost and expense shall procure (a) a title insurance
commitment for the Real Estate issued by the Title Company, in which commitment the Title Company
shall agree to (i) insure for the full amount of the Purchase Price marketable fee simple title to the Real
Estate in the name of Purchaser, free of all exceptions unless (including, without limitation, the standard
exceptions), except only the lien of non-delinquent real estate taxes and assessments and such other matters
that Purchaser may approve as hereinafter provided, and (ii) issue such endorsements as Purchaser may
reasonably request (the “Title Commitment”); and (b) copies of all documents and matters disclosed or
referred to in the Title Commitment (the “Title Documents”). If any exception in the Title Commitment
is unacceptable to Purchaser, Purchaser shall notify Seller in writing and Seller shall then have 30 days to
cure such unacceptable exception. If Seller fails to cure such exception with such 30-day period and provide
evidence to Purchaser of such cure, then Purchaser shall have the right but not the obligation to terminate
this Contract by written notice to the Seller and the Earnest Deposits shall be returned to Purchaser.
Purchaser, at its cost and expense, shall obtain an owner’s policy of title insurance issued by the Title
Company, in the full amount of the Purchase Price and in conformity with the marked Title Commitment.
Purchaser shall pay the cost of any mortgage title insurance.

8.3 Condition of Real Estate/Inspection Period. Purchaser, at its sole cost and expense shall
have an inspection period, which shall commence upon the Acceptance Date of this Agreement. The
Inspection Period shall expire on December 31, 2027 (the “Inspection Period”). Purchaser shall have
determined, in its sole discretion, during the Inspection Period that: (a) the Real Estate (i) does not contain
any subterranean, karst, or other defects or conditions which impair or adversely affect Purchaser’s Intended
Use or development of the Real Estate or require extraordinary or unusually costly development techniques
or measures, and (ii) is in all other respects suitable and feasible for and will support and permit Purchaser’s
Intended Use and development; (b) the obtaining of all financing, tax credits, subdivision, platting, zoning,
variances, vacations, releases, authorizations, engineering approvals, permits and approvals and incentives,
public and private, necessary for Purchaser’s Intended Use and development (“Governmental Approvals”),
are satisfactory to Purchaser; (c) the Real Estate is free and clear of any and all asbestos, toxic or hazardous
material or contaminant and/or the threat of contamination thereby; (d) all utilities necessary or appropriate
for Purchaser’s Intended Use and development of the Real Estate are available at the property lines in
sufficient quantities, pressures and/or capacities for Purchaser’s Intended Use and development, without
hookup, tap in or other charges excepting only charges normally incurred and charged by the applicable
public utilities; and (e) it is satisfied in all respects, and in Purchaser’s sole discretion, with the Real Estate
and the feasibility of its development. In the event Purchaser fails to give Seller written notice of its
disapproval of the condition of the Real Estate prior to the expiration of the Inspection Period, Purchaser

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shall be deemed to have approved the condition of the Real Estate. Seller authorizes Purchaser to file for
and obtain such Governmental Approvals and agrees to execute such applications, petitions, easements,
covenants, agreements and instruments as in Purchaser’s judgment may be necessary or appropriate to file
for and obtain such Governmental Approvals and the parties agree that the closing of the transaction
contemplated in this Contract is expressly contingent upon Purchaser’s ability to receive the Governmental
Approvals in final non-appealable form.

8.4 Litigation and Representation. As of the Closing Date, no action or proceeding before a
court or other governmental agency or officer shall be pending (and to the best of either Seller’s or
Purchaser’s knowledge, no such action or proceeding shall be threatened) that might impair the value of
the Real Estate or prevent Purchaser from undertaking and completing Purchaser’s Intended Use and
development of the Real Estate. As of the Closing Date, the representation and warranties set forth in
Section 10 shall be true and accurate.

8.5 Contingency. This Agreement is contingent upon the purchaser receiving a reservation of
IRS Section 42 tax credits from the Michigan State Housing Development Authority (the “Contingency”).

9. Nonperformance. In the event that one or more of the conditions set forth in Section 8 are
not timely and completely satisfied, Purchaser, at its sole discretion, may grant additional time to Seller to
remedy any defect or may cancel this Contract and all of its obligations hereunder by written notice to
Seller, in which event (without limiting Purchaser’s other rights or remedies for any breach of this Contract
by Seller) all Earnest Money deposited to date, shall be immediately refunded to Purchaser. If pursuant to
any provision of this Contract the Purchaser elects to grant Seller additional time to remedy a defect or meet
a condition of the Contract, all time limits affecting the Purchaser shall be extended by the amount of time
given the Seller.

10. Representations and Warranties. Seller hereby represents and warrants to and covenants
and agrees with Purchaser (and shall be deemed to represent and warrant and covenant and agree on the
Closing Date) that (a) there is no condemnation or similar proceeding which is pending or threatened against
the Real Estate or any part thereof; (b) Seller has not received any notification from any governmental
agency, authority or instrumentality of any pending or threatened assessments on or against the Real Estate
for the cost of public improvements to be made with respect to the Real Estate or any part thereof; (c) after
the Acceptance Date, Seller will not enter into any lease or other agreement affecting the Real Estate or the
possession, use or control thereof or terminate, modify or amend any existing lease or other agreement
without first obtaining the written consent of Purchaser; (d) after the Acceptance Date, Seller will not create,
permit or suffer any lien or other encumbrance to attach to or affect the Real Estate and improvements
thereon, if any, except for the lien of non-delinquent real estate taxes; (e) there are no underground fuel,
chemical or other storage tanks or associated equipment located in the Real Estate, or the Real Estate has
not been used for the treatment, storage or disposal of or otherwise contaminated by any hazardous or
special wastes, substances, materials, constituents, pollutants or contaminates (as defined by federal, state
or local laws, statutes, ordinances, rules or regulations); (f) Seller has fee simple, marketable, indefeasible
and insurable right and title to the Real Estate; (g) Seller has no knowledge of the existence of karst terrain
on the Real Estate; (h) to the best of Seller’s knowledge, there has been no release nor is there currently any
threatened release of any hazardous, special or other wastes, substances, materials, constituents, pollutants
or contaminants (as defined by federal, state or local laws, statutes, ordinances, rules or regulations) on the
Real Estate; (i) to the extent there are contracts or agreements affecting the Real Estate (including, for
example, management or service agreements), Seller will: (i) cancel before closing all such contracts and
agreements; (ii) pay all amounts due under, and settle all accounts with respect to, any such contracts and
agreements; and (iii) deliver to Purchaser at closing evidence that any such contracts and agreements have
been canceled and all such amounts and accounts have been paid and settled; (i) to the extent Seller is an
entity, it is duly organized, validly existing and in good standing in its jurisdiction or organization; and (j)

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that this Contract has been duly authorized, executed and delivered and constitutes a legal, valid and binding
obligation of Seller, enforceable in accordance with its terms.

11. Damage and Condemnation. If at any time after the Acceptance Date (a) the Real Estate
shall be condemned, damaged or destroyed, in whole or in part; or (b) any notice of condemnation shall be
given, then Purchaser, at its sole option, may cancel the Contract or proceed with closing. If Purchaser
elects to proceed with closing, then Purchaser may (a) apply the proceeds of any condemnation award or
insurance policy to reduce the Purchase Price; or (b) accept an assignment of such proceeds. If Purchaser
elects to cancel this Contract, as provided in this paragraph, all Earnest Money deposited shall be
immediately refunded to Purchaser. Seller shall bear all risk of loss of any nature whatsoever to the Real
Estate until closing.

12. Inspection. Purchaser, its employees, agents and independent contractors shall have the
right to enter upon the Real Estate and conduct all tests and examinations which Purchaser deems necessary
at its sole cost and expense. Purchaser indemnifies Seller from any damages occasioned thereby. Purchaser
shall restore Real Estate to the existing condition before said tests or examinations were conducted.

13. Notices. All notices, demands, instructions or requests to be given to either party hereunder
shall be in writing and sent by: (a) electronic mail with read receipt; (b) facsimile transmission; (c) overnight
delivery service; (d) personal delivery; or (e) registered or certified U.S. Mail, return receipt requested; and
addressed to the first address above written. Any notice that is actually received shall be effective regardless
of the manner in which it was sent or delivered.

14.1 Default by Seller. Seller agrees that money damages are not an adequate remedy for breach
of this Contract by Seller, and, in addition to any other remedies available to Purchaser in the event of a
breach by Seller, Purchaser shall be entitled to: (a) the remedy of specific performance to enforce the terms
hereof; and/or (b) cancel this Contract and all of its obligations hereunder by written notice to Seller, in
either of which events the Earnest Money shall be refunded immediately to Purchaser. In the event of any
such breach, Purchaser shall be entitled to recover, in addition to all other remedies and damages, reasonable
attorneys’ fees and court costs incurred.

14.2 Default by Purchaser. In the event of a breach of this Contract by Purchaser, Seller may,
as its sole remedy hereunder, rescind this Contract and retain the Earnest Money as liquidated damages.

15. Assignment/ Successors and Assigns. This Contract shall inure to the benefit of and be
binding upon the heirs, executors, administrators, successors and assigns of both Purchaser and Seller. This
Contract may not be assigned by Seller. Purchaser may assign this agreement without Seller consent.

16. Survival and Indemnity. All representations and warranties set forth in this Contract, shall
survive the closing, and for a period of one (1) year after the Closing Date, Seller and Purchaser shall each
hold the other harmless from and against all costs and damages (including attorneys’ fees and court costs)
incurred as a result of any breach of any representation or warranty by Seller or Purchaser, respectively.

17. General. The terms and provisions of this Contract shall be governed and construed in
accordance with the laws of the State of Michigan. The captions and section numbers shall not be considered
in any way to affect the interpretation of this Contract. This Contract shall be binding upon and inure to the
benefit of the parties hereto and their respective successors, assigns, heirs, and personal representatives.
This Contract is the final expression of the complete and exclusive agreement between Seller and Purchaser
and supersedes all prior offers, negotiations and discussions. The term Contract, as used herein means the
contract arising between the parties on the terms of this Offer after acceptance by Seller. This Contract may

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be executed in 2 or more counterparts, each of which shall be deemed an original and all of which together
shall constitute one and the same contract.

18. Authority. Except as expressly provided otherwise herein, each undersigned person
signing on behalf of any party that is a corporation, partnership or other entity certifies that (a) he is fully
empowered and duly authorized by any and all necessary action or consent required under any applicable
articles of incorporation, by-laws, partnership agreement or other agreement to execute and deliver this
Contract for and on behalf of said party; (b) that said party has full capacity, power and authority to enter
into and carry out its obligations under this Contract; and (c) that this Contract has been duly authorized,
executed and delivered and constitutes a legal, valid and binding obligation of such party, enforceable in
accordance with its terms.

19. Attorneys’ Fees. Either party to this Contract who is the prevailing party in any legal or
equitable proceeding against any other party to this Contract brought under or with relation to the Contract
or the transaction contemplated hereby shall, in addition to any other remedy at law or provided for herein,
be entitled to recover court costs and reasonable attorneys’ fees from the non-prevailing party.

20. Duration of Offer. This Offer shall expire if written acceptance endorsed herein is not
delivered to Purchaser on or before 5:00 PM, September 27, 2024.

21. Real Estate Brokerage Representation. Purchaser and Seller both represent and warrant to
one another that no real estate brokers or agents have been used or consulted in connection with the purchase
and sale of the Real Estate. Any fees, real estate commissions, costs and/or expenses due to Seller’s real
estate brokers or agents will be paid exclusively by Seller. Each party covenants and agrees to defend,
indemnify and save the other harmless from any actions, damages, fees, real estate commissions, costs
and/or expenses (including reasonable attorneys’ fees) relating to a breach or alleged breach of the
foregoing representation and warranty.

[REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

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This Offer to Purchase Real Estate is hereby executed this ___ day of ______ 2024 as to Purchaser.

PURCHASER:

Spire Development, Inc.

By: _______________________________

Printed Name: Thomas Grywalski

Title: President

ACCEPTANCE OF OFFER

Seller hereby accepts the foregoing Offer to Purchase Real Estate on this ___ day of ______ 2024.

SELLER: City of Muskegon

__________________________________
By:

__________________________________
Its:

Page 176 of 222
EXHIBIT A

Parcel/Tax ID number(s):

61-24-205-554-0001-20

+/- 0.53 acres

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Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: September 24, 2024 Title: Berkshire Spring Street LIHTC Municipal
Services Agreement

Submitted by: Jake Eckholm, Development Department: Economic Development
Services Director

Brief Summary:
General Capital is taking another shot at their new construction Low Income Housing Tax Credit
application that was not approved last December by the Michigan Statewide Housing Development
Authority. The application requires approved Contracts for Housing Exemption and Municipal
Services Agreements.

Detailed Summary & Background:
Pursuant to our 5 Year Housing Needs Assessment's call for over 1,000 rental units priced under $1,430 a
month, staff has made overtures and established relationships with several new and existing LIHTC
developers. General Capital has already successfully completed two new construction facilities in our
community, and is seeking to complete a third with the Spring Street Berkshire Apartments. This site will
support 53 affordable senior apartments.

General Capital is seeking a Municipal Services Charge of 3% of net shelter rents. This should equal
roughly $15,000 per year for the city to keep to defray costs of public service delivery to the site. General
Capital is also requesting a 5% Payment in lieu of Taxes agreement, which is detailed in another agenda
item in the packet.

Goal/Focus Area/Action Item Addressed:

Key Focus Areas:
Diverse housing types
Retain youth within the city
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

Fund(s) or Account(s): Budget Amendment Needed:
N/A Yes No N/A

Recommended Motion:
Motion to approve the Municipal Services Agreement between GenCap Spring Street Limited Dividend
Housing Association, LLC and the City of Muskegon, and authorize the mayor and clerk to sign.

Page 178 of 222
Approvals: Guest(s) Invited / Presenting:
Immediate Division
Head Yes

Information
Technology
Other Division Heads
Communication
Legal Review

Page 179 of 222
MUNICIPAL SERVICES AGREEMENT

THIS MUNICIPAL SERVICES AGREEMENT (“Agreement”) is entered into on
this___ day of S e p t e m b e r , 2 0 2 4 between GenCap Spring Street Limited
Dividend Housing Association, LLC, a Michigan limited liability company its
successors and/or assigns (the “Sponsor”) and the CITY OF MUSKEGON, 933
Terrace Street, Muskegon, MI 49440 (the “City”) is made pursuant to the following
terms:

RECITALS

A. Developer has assumed an agreement to purchase a site in the City of Muskegon
known as Berkshire Spring Street for the construction of a proposed low-income housing project
(the “Project”).

2. Other miscellaneous services as may, from time to time, be mutually agreed to for
the benefit of the Project;

(All of the above collectively referred to as “Municipal Services”)

4. Nothing in this Agreement shall be deemed to waive any defense to claims based
on sovereign or governmental immunity.

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AGREEMENT

The parties agree as follows:

1. Provision of Services. The City will provide the Municipal Services.

4. Audit. Developer shall submit, upon request, a copy of the annual audit of the
Project prepared by an independent CPA’s along with the payment of the Municipal Service Fee.

Page 181 of 222
8. Severability. If any term or condition of this Agreement is found to be void,
invalid, or unenforceable, the validity or enforceability of the remaining terms and conditions shall
not be affected or impaired and will continue in full force and effect.

9. Notices. All notices under this Agreement must be in writing and sent to the
respective parties as follows:

If to Developer:

GenCap Spring Street Limited Dividend Housing Association, LLC
David Weiss
6938 North Santa Monica Blvd
Fox Point, WI 53217

If to the City:

City of Muskegon
Attn: City Manager
933 Terrace Street
Muskegon, MI 49440

Every notice must be in writing and sent by one of the following methods:

a. Personal delivery, in which case delivery shall be deemed to occur the day of the
delivery;

Page 182 of 222
Either party may change the address provided in this paragraph for itself or its attorney by
providing notice of such change to the other party as required in this paragraph.

12. Binding Effect. This Agreement shall be binding on the parties, their heirs,
successors, and assigns.

13. Amendments. There shall be no modification or amendments to this Agreement,
including this section, unless they are in writing and signed by all the parties to this Agreement.

14. Governing Law. This Agreement has been executed in the State of Michigan, and
shall be governed by Michigan law.

{Signatures on next page}

Page 183 of 222
Municipal Services
Agreement Signature Page

IN WITNESS WHEREOF, this Municipal Services Agreement is executed as of the day and year
first written above.

CITY:

CITY OF MUSKEGON

Dated: _____________, 2023 By:
Ken Johnson, Mayor

Dated: _ ___________, 2023 By:
Ann Meisch, City Clerk

DEVELOPER:

GenCap Spring Street Limited Dividend Housing
Association, LLC a Michigan LLC

By:
Name:
Its: Authorized Signer

Page 184 of 222
Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: September 24, 2024 Title: Berkshire Spring Street Contract for Housing
Exemption (PILOT Agreement)

Submitted by: Jake Eckholm, Development Department: Economic Development
Services Director

Brief Summary:
General Capital is resubmitting their proposed new construction affordable senior living development
at 162 East Apple to MSHDA, and requires an updated Payment In Lieu of Taxes agreement.

Detailed Summary & Background:
Pursuant to our 5 Year Housing Needs Assessments call for over 1,000 rental units priced under $1,430 a
month, staff has made overtures and established relationships with several new and existing LIHTC
developers. General Capital has already successfully completed two new construction facilities in our
community, and is seeking to complete a third with the Berkshire Spring Street Project. This site will
support 53 affordable senior apartments.

General Capital is seeking a Payment in lieu of Taxes (PILOT) of 5% of net shelter rents. This should equal
roughly $21,500 per year for the city to divide between taxing jurisdictions. General Capital is also
requesting a 3% Municipal Services Charge, which is detailed in another agenda item in the packet.

Goal/Focus Area/Action Item Addressed:

Key Focus Areas:
Diverse housing types
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

Fund(s) or Account(s): Budget Amendment Needed:
N/A Yes No N/A

Recommended Motion:
Motion to accept the Contract for Housing Exemption between GenCap Spring Street Limited
Dividend Housing Association, LLC as presented, and authorize the mayor and clerk to sign.

Approvals: Guest(s) Invited / Presenting:

Page 185 of 222
Immediate Division Yes
Head
Information
Technology
Other Division Heads
Communication
Legal Review

Page 186 of 222
CITY OF MUSKEGON

CONTRACT FOR HOUSING EXEMPTION

This Agreement between GenCap Spring Street Limited Dividend Housing Association, LLC, a
Michigan limited partnership/liability company/corporation, whose address is 6938 North Santa Monica
Blvd, Fox Point WI 53217 (the "Sponsor") and CITY OF MUSKEGON, whose address is 933 Terrace
Street, Muskegon, Michigan (the "City") is made pursuant to the following terms:

RECITALS

C. The City acknowledges that the Sponsor identified above has offered, subject to receipt
of an allocation of Low Income Housing Tax Credits and/or receipt of a Mortgage Loan, to
construct/acquire and rehabilitate, own and operate a proposed low-income housing project identified as
Berkshire Spring Street on certain property located in the City at 162 East Apple Avenue (the "Project")
to serve low income persons and families, and that the Sponsor has offered to pay the City on account of
this housing project an annual service charge for public services in lieu of all ad valorem property taxes.

D. The Sponsor, or an affiliate of the Sponsor has entered an agreement to form a limited
dividend housing association limited liability company to function as owner of the proposed low-income
housing Project. The owning entity is GenCap Spring Street Limited Dividend Housing Association,
LLC.

E. The City desires to encourage construction and financing of the low-income housing
Project which is identified by the working name of Berkshire Spring Street.

F. To further enable and encourage the construction of the housing Project, the Sponsor and
the City enter into this Agreement.

Page 187 of 222
G. The legal description of the Project is set forth in Exhibit A attached to this Agreement.

NOW, THEREFORE, THE PARTIES AGREE AS FOLLOWS:

1. Definitions.

1.1. "Authority" means the Michigan State Housing Development Authority.

1.4. "Low Income Persons and Families" means persons and families eligible to move
into a housing project.

1.5 "LIHTC" means the low income housing tax credit administered by the Authority
under Section 42 of the Internal Revenue Code, as amended.

1.7. “Net Shelter Rent” means all collected rents on the subject project property
accounting for point-in-time vacancies.

1.8. "Sponsor" means GenCap Spring Street Limited Dividend Housing
Association, LLC and any entity that receives or assumes a Mortgage Loan.

1.9. "Utilities" means charges for gas, electric, water, sanitary sewer and other utilities
furnished to the occupants that are paid by the housing project.

3. Term of Exemption. This exemption shall begin on the tax day of the year in which a final

Page 188 of 222
certificate of compliance or occupancy is issued by the City, and shall continue for the period the housing project
remains subject to income and rent restrictions pursuant to Section 42 of Internal Revenue Service Code of
1986, as amended (the "IRS Code"), or a Mortgage Loan remains outstanding, not to exceed 25 years. The
City agrees to be contractually bound by this Agreement to honor the exemption status of the proposed
project as provided herein and in this Agreement for the entire period during which the Project is subject to
the income and rent restrictions under Section 42 of the IRS Code or is subject to a Mortgage Loan, provided
that the said Mortgage Loan continues outstanding as more particularly set forth in Section 82-50 of the
Ordinance, not to exceed 25 years.

4. Responsibilities of the Sponsor. The Sponsor agrees to perform the following:

4.1 The Sponsor shall pay the service charge and payment in lieu of all ad valorem
taxes on or before July 1 of each year, beginning in the first year following the year in which the
exemption is first effective, and continuing throughout the time the exemption is in effect. The
service charge shall equal five percent (5%) of the Net Shelter Rents charged for all the LIHTC
certified units in the exempt housing project for the preceding calendar year, exclusive of the utility
charges paid by the project.

Page 189 of 222
to the full amount of the taxes which would be paid on that portion of the housing project if the housing
project were not tax exempt.

9. Counterparts. This Agreement may be executed in several counterparts and an executed copy
hereof may be relied upon as an original.

12. Inconsistent Ordinances. All ordinances or parts of ordinances inconsistent or in conflict
with the provisions of this Agreement are of no effect to the extent of such inconsistency or conflict.

IN WITNESS WHEREOF, the parties have signed this Agreement on the following page, on the
dates indicated.

Page 190 of 222
CITY OF MUSKEGON

By: Ken Johnson
Its: Mayor
Dated:

By: Ann Meisch
Its: City Clerk
Dated:

GenCap Spring Street Limited Dividend Housing
Association, LLC a Michigan LLC

By:
Print:
Its:
Dated:

Page 191 of 222
EXHIBIT A

LEGAL DESCRIPTION

That part of Block 215, Revised Plat of 1903, City of Muskegon, Muskegon County, Michigan,
described as: Beginning at a point on the East line of said Block 215, being 75.00 feet from the
Northeast corner of Lot 1, said Block 215; thence N88°00'03"W, 155.07 feet parallel with the North
line of said Block 215; thence N01°59'57"E, 25.00 feet; thence N88°00'03"W, 80.00 feet parallel
with the North line of said Block 215; thence S58°35'03"W, 95.19 feet to the Easterly right of way
line of Spring Street; thence S31°24'57"E, 196.80 feet along said Easterly right of way line to the
North right of way line of Apple Avenue; thence S88°11'51"E, 206.57 feet along said North right of
way line to the East line of said Block 215; thence N01°52'25"E, 190.98 feet along said East line to
the Point of Beginning, containing 1.22 acres of land. Subject to easements, restrictions and rights of
way of record.

MJ DMS 31007846v10

Page 192 of 222
Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: September 24, 2024 Title: Froebel School Project Updated Municipal
Services Agreement

Submitted by: Jake Eckholm, Development Department: Economic Development
Services Director

Brief Summary:
Samaritas plans to submit Froebel School to MSHDA on October 1 for consideration for Low Income
Housing Tax Credits. They must have an approved Municipal Services Agreement with the City in
order to be eligible.

Detailed Summary & Background:
For several years staff have been attempting to find a partner that had interest and capacity in the
adaptive reuse of the long-vacant Froebel School building. Since 2019, we have toured more than 10
entities through the school, and held a community meeting offering several touring opportunities for
the public. Through these efforts we have developed interest from Samaritas for the potential
installation of affordable housing units by application to the Michigan Statewide Housing
Development Authority (MSHDA) Low Income Housing Tax Credit (LIHTC) Program. If awarded, then
Samaritas proposes historical preservation and adaptive remodel of the school building into
apartments for low to moderate income residents. The attached agreement establishes their
Municipal Services Agreement at 3% of shelter rents, which should result in roughly $11,000 annually
for the city.

If approved by commission, Samaritas is also proposing a PILOT payment of 2% of net shelter rents, for
a total annual payment of 5% of rents. The Municipal Services Agreement (MSA) stays completely
with the city to defray costs of public service delivery to the site, while the PILOT payment is divided
proportionally to the other taxing jurisdictions, similar to a traditional property tax payment.

Goal/Focus Area/Action Item Addressed:

Key Focus Areas:

Blight cleanup
Diverse housing types
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

Fund(s) or Account(s): Budget Amendment Needed:

Page 193 of 222
N/A Yes No N/A

Recommended Motion:
Motion to approve the Municipal Services Agreement between the City of Muskegon and Samaritas
Affordable Living Froebel Limited Dividend Housing Association Limited Partnership as presented, and
to authorize the mayor and clerk to sign.

Approvals: Guest(s) Invited / Presenting:
Immediate Division
Head Yes

Information
Technology
Other Division Heads
Communication
Legal Review

Page 194 of 222
MUNICIPAL SERVICES AGREEMENT

THIS MUNICIPAL SERVICES AGREEMENT (“Agreement”) is entered into on
this_12th day of S e p t e m b e r , 2 0 2 4 between Samaritas Affordable Living
Froebel Limited Dividend Housing Association Limited Partnership, a Michigan limited
liability company its successors and/or assigns (the “Sponsor”) and the CITY OF
MUSKEGON, 933 Terrace Street, Muskegon, MI 49440 (the “City”) is made pursuant
to the following terms:

RECITALS

A. Developer has assumed an agreement to purchase a site in the City of Muskegon
known as Froebel Place for the construction of a proposed low-income housing project (the
“Project”).

2. Other miscellaneous services as may, from time to time, be mutually agreed to for
the benefit of the Project;

(All of the above collectively referred to as “Municipal Services”)

4. Nothing in this Agreement shall be deemed to waive any defense to claims based
on sovereign or governmental immunity.

Page 195 of 222
AGREEMENT

The parties agree as follows:

1. Provision of Services. The City will provide the Municipal Services.

4. Audit. Developer shall submit, upon request, a copy of the annual audit of the
Project prepared by an independent CPA’s along with the payment of the Municipal Service Fee.

Page 196 of 222
8. Severability. If any term or condition of this Agreement is found to be void,
invalid, or unenforceable, the validity or enforceability of the remaining terms and conditions shall
not be affected or impaired and will continue in full force and effect.

9. Notices. All notices under this Agreement must be in writing and sent to the
respective parties as follows:

If to Developer: Samaritas Affordable Living Froebel Limited Dividend Housing
Association Limited Partnership

Attn: CEO
8131 East Jefferson Avenue
Detroit, MI 48214

If to the City:

City of Muskegon
Attn: City Manager
933 Terrace Street
Muskegon, MI 49440

Every notice must be in writing and sent by one of the following methods:

a. Personal delivery, in which case delivery shall be deemed to occur the day of the
delivery;

Page 197 of 222
Either party may change the address provided in this paragraph for itself or its attorney by
providing notice of such change to the other party as required in this paragraph.

12. Binding Effect. This Agreement shall be binding on the parties, their heirs,
successors, and assigns.

13. Amendments. There shall be no modification or amendments to this Agreement,
including this section, unless they are in writing and signed by all the parties to this Agreement.

14. Governing Law. This Agreement has been executed in the State of Michigan, and
shall be governed by Michigan law.

{Signatures on next page}

Page 198 of 222
Page 199 of 222
Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: September 24, 2024 Title: Froebel School Updated Contract for
Housing Exemption

Submitted by: Jake Eckholm, Development Department: Economic Development
Services Director

Brief Summary:
Staff and Samaritas have worked on various initiatives over the last 10 months to make Froebel School
a more competitive LIHTC project in the statewide scoring system, and are now requesting
Commission approval to submit to MSHDA for the October 2024 round.

Detailed Summary & Background:
For several years staff have been attempting to find a partner that had interest and capacity in the
adaptive reuse of the long-vacant Froebel School building. Since 2019, we have toured more than 10
entities through the school, and held a community meeting offering several touring opportunities for
the public. Through these efforts we have developed interest from Samaritas for the potential
installation of affordable housing units by application to the Michigan Statewide Housing
Development Authority (MSHDA) Low Income Housing Tax Credit (LIHTC) Program. If awarded, then
Samaritas proposes historical preservation and adaptive remodel of the school building into
apartments for low to moderate income residents. The attached agreement establishes their
payment in lieu of taxes as 2% of net shelter rents. This should result in roughly $7,500 annually to be
divided between taxing jurisdictions.

In the last 10 months since the previous LIHTC submission round staff has worked with Samaritas and
the Muskegon County Land Bank to achieve a 1.4 million dollar grant to assist with hard costs on the
project, and Samaritas has been approved for Historic Tax Credits which will also help the bottom
line. The total project investment is projected at $16.5 million. Note that this is the lowest proposed
PILOT of our proposed MSHDA submissions. This is due to the facts that we are the owners of this
facility and will incur significant costs to demolish or otherwise redevelop the site, and that Samaritas
is a non-profit housing developer with limited capacity to finance and construct facilities compared
with for-profit housing development firms.

If approved by commission, Samaritas is also proposing a Municipal Services Agreement of 3% of net
shelter rents, for a total annual payment of 5% of rents. The Municipal Services Agreement (MSA) stays
completely with the city to defray costs of public service delivery to the site, while the PILOT payment
is divided proportionally to the other taxing jurisdictions, similar to a traditional property tax payment.

Goal/Focus Area/Action Item Addressed:

Key Focus Areas:

Blight cleanup
Diverse housing types
Retain youth within the city

Page 200 of 222
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

Fund(s) or Account(s): Budget Amendment Needed:
N/A Yes No N/A

Recommended Motion:
Motion to accept the Contract for Housing Exemption between the City of Muskegon and Samaritas
Affordable Living Froebel Limited Dividend Housing Association Limited Partnership as presented, and
to authorize the mayor and clerk to sign.

Approvals: Guest(s) Invited / Presenting:
Immediate Division
Head Yes

Information
Technology
Other Division Heads
Communication
Legal Review

Page 201 of 222
CITY OF MUSKEGON

CONTRACT FOR HOUSING EXEMPTION

This Agreement between Samaritas Affordable Living Froebel Limited Dividend Housing Association
Limited Partnership, a Michigan limited partnership/liability company/corporation, whose address is
8131 East Jefferson Ave Detroit, MI 48214 (the "Sponsor") and CITY OF MUSKEGON, whose address
is 933 Terrace Street, Muskegon, Michigan (the "City") is made pursuant to the following terms:

RECITALS

C. The City acknowledges that the Sponsor identified above has offered, subject to receipt
of an allocation of Low Income Housing Tax Credits and/or receipt of a Mortgage Loan, to
construct/acquire and rehabilitate, own and operate a proposed low-income housing project identified as
Froebel Place on certain property located in the City at 417 Jackson Avenue (the "Project") to serve low
income persons and families, and that the Sponsor has offered to pay the City on account of this housing
project an annual service charge for public services in lieu of all ad valorem property taxes.

D. The Sponsor, or an affiliate of the Sponsor to be formed, has entered or will enter into an
agreement to form a limited dividend housing association limited partnership or limited liability company
to function as owner of the proposed low-income housing Project. The owning entity to be formed will be
identified as Samaritas Affordable Living Froebel Limited Dividend Housing Association Limited
Partnership.

E. The City desires to encourage construction and financing of the low-income housing
Project which is identified by the working name of Froebel Place.

F. To further enable and encourage the construction of the housing Project, the Sponsor and
the City enter into this Agreement.

Page 202 of 222
G. The legal description of the Project is set forth in Exhibit A attached to this Agreement.

NOW, THEREFORE, THE PARTIES AGREE AS FOLLOWS:

1. Definitions.

1.1. "Authority" means the Michigan State Housing Development Authority.

1.4. "Low Income Persons and Families" means persons and families eligible to move
into a housing project.

1.5 "LIHTC" means the low income housing tax credit administered by the Authority
under Section 42 of the Internal Revenue Code, as amended.

1.7. “Net Shelter Rent” means all collected rents on the subject project property
accounting for point-in-time vacancies.

1.8. "Sponsor" means Samaritas Affordable Living Froebel Limited Dividend
Housing Association Limited Partnership, and any entity that receives or assumes a Mortgage
Loan.

1.9. "Utilities" means charges for gas, electric, water, sanitary sewer and other utilities
furnished to the occupants that are paid by the housing project.

Page 203 of 222
3. Term of Exemption. This exemption shall begin on the tax day of the year in which a final
certificate of compliance or occupancy is issued by the City, and shall continue for the period the housing project
remains subject to income and rent restrictions pursuant to Section 42 of Internal Revenue Service Code of
1986, as amended (the "IRS Code"), or a Mortgage Loan remains outstanding, not to exceed 25 years. The
City agrees to be contractually bound by this Agreement to honor the exemption status of the proposed
project as provided herein and in this Agreement for the entire period during which the Project is subject to
the income and rent restrictions under Section 42 of the IRS Code or is subject to a Mortgage Loan, provided
that the said Mortgage Loan continues outstanding as more particularly set forth in Section 82-50 of the
Ordinance, not to exceed 25 years.

4. Responsibilities of the Sponsor. The Sponsor agrees to perform the following:

4.1 The Sponsor shall pay the service charge and payment in lieu of all ad valorem
taxes on or before July 1 of each year, beginning in the first year following the year in which the
exemption is first effective, and continuing throughout the time the exemption is in effect. The
service charge shall equal two percent (2%) of the net shelter rents charged for all the LIHTC
certified units in the exempt housing project for the preceding calendar year, exclusive of the utility
charges paid by the project.

8. Limitation on the Payment of Annual Service Charge. Notwithstanding Section 4.1, the

Page 204 of 222
service charge to be paid each year in lieu of taxes for the part of the housing project that is tax exempt but
which is occupied by other than Low Income Persons or Families as defined in Section 1.10 shall be equal
to the full amount of the taxes which would be paid on that portion of the housing project if the housing
project were not tax exempt.

9. Counterparts. This Agreement may be executed in several counterparts and an executed copy
hereof may be relied upon as an original.

12. Inconsistent Ordinances. All ordinances or parts of ordinances inconsistent or in conflict
with the provisions of this Agreement are of no effect to the extent of such inconsistency or conflict.

IN WITNESS WHEREOF, the parties have signed this Agreement on the following page, on the
dates indicated.

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Page 206 of 222
EXHIBIT A

LEGAL DESCRIPTION

A PORTION OF THE FOLLOWING DESCRIBED PARCEL TO BE DETERMINED BY A
SURVEY:

CITY OF MUSKEGON REVISED PLAT OF 1903 BLKS 25 & 26 ALSO BLK 27 EXCEPT
LOTS 6 & 7 ALSO BLK 24 EXCEPT S 12 FT OF W 1/2 LOT 2 BLK 24

61-24-205-024-0001-00

MJ DMS 31007846v10

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Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: September 24, 2024 Title: Lighthouse Lofts Municipal Service
Agreement

Submitted by: Jake Eckholm, Development Department: Economic Development
Services Director

Brief Summary:
Pivotal Development is seeking an award of Low Income Housing Tax Credits from MSHDA to
facilitate an affordable family apartment complex at 90 Hartford Street. They require a municipal
services agreement approved by the City of Muskegon prior to the application date on 10/1/2024.

Detailed Summary & Background:
Pivotal Development was successfully awarded one LIHTC project by MSHDA in our community in the
2023 round, and are now proposing another project. Staff is recommending a 3% Municipal Services
Charge in the attached agreement in order to defray the costs of public service delivery to the site.
This payment should provide roughly $9,000-11,000 annually.

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:
NA Yes No N/A

Fund(s) or Account(s): Budget Amendment Needed:
NA Yes No N/A

Recommended Motion:
Motion to accept the Municipal Services Agreement between the City of Muskegon and Lighthouse
Lofts Limited Dividend Housing Association LLC as presented and authorize the mayor and clerk to
sign.

Approvals: Guest(s) Invited / Presenting:
Immediate Division
Head Yes

Information

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Technology
Other Division Heads
Communication
Legal Review

Page 209 of 222
MUNICIPAL SERVICES AGREEMENT

THIS MUNICIPAL SERVICES AGREEMENT (“Agreement”) is entered into on this
10th day of S e p t e m b e r 2 0 2 4 between Lighthouse Lofts Limited Dividend
Housing Association LLC, a Michigan limited liability company its successors and/or
assigns (the “Sponsor”) and the CITY OF MUSKEGON, 933 Terrace Street,
Muskegon, MI 49440 (the “City”) is made pursuant to the following terms:

RECITALS

A. Developer has assumed an agreement to purchase a site in the City of Muskegon
known as Lighthouse Lofts for the construction of a proposed low-income housing project (the
“Project”).

2. Other miscellaneous services as may, from time to time, be mutually agreed to for
the benefit of the Project;

(All of the above collectively referred to as “Municipal Services”)

4. Nothing in this Agreement shall be deemed to waive any defense to claims based
on sovereign or governmental immunity.

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AGREEMENT

The parties agree as follows:

1. Provision of Services. The City will provide the Municipal Services.

4. Audit. Developer shall submit, upon request, a copy of the annual audit of the
Project prepared by an independent CPA’s along with the payment of the Municipal Service Fee.

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8. Severability. If any term or condition of this Agreement is found to be void,
invalid, or unenforceable, the validity or enforceability of the remaining terms and conditions shall
not be affected or impaired and will continue in full force and effect.

9. Notices. All notices under this Agreement must be in writing and sent to the
respective parties as follows:

If to Developer:

Attn:
Pivotal Development LLC
ATTN: Brian McGeady
9100 Centre Pointe Drive, Suite 210
West Chester, OH 45069

If to the City:

City of Muskegon
Attn: City Manager
933 Terrace Street
Muskegon, MI 49440

Every notice must be in writing and sent by one of the following methods:

a. Personal delivery, in which case delivery shall be deemed to occur the day of the
delivery;

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Either party may change the address provided in this paragraph for itself or its attorney by
providing notice of such change to the other party as required in this paragraph.

12. Binding Effect. This Agreement shall be binding on the parties, their heirs,
successors, and assigns.

13. Amendments. There shall be no modification or amendments to this Agreement,
including this section, unless they are in writing and signed by all the parties to this Agreement.

14. Governing Law. This Agreement has been executed in the State of Michigan, and
shall be governed by Michigan law.

{Signatures on next page}

Page 213 of 222
Municipal Services Agreement
Signature Page

IN WITNESS WHEREOF, this Municipal Services Agreement is executed as of the day and year
first written above.

CITY:

CITY OF MUSKEGON

Dated: _____________, 2023 By:
Ken Johnson, Mayor

Dated: _ ___________, 2023 By:
Ann Meisch, City Clerk

Project:

Lighthouse Lofts Limited Dividend Housing Association
LLC,
a Michigan limited liability company

By: PHP Lighthouse Lofts LLC
Its: Managing Member

By: Pivotal GP Holding LLC
Its: Sole Member

By:
Name: Brian McGeady
Its: President

Page 214 of 222
Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: September 24, 2024 Title: Lighthouse Lofts Contract for Housing
Exemption

Submitted by: Jake Eckholm, Development Department: Economic Development
Services Director

Brief Summary:
Pivotal Development is seeking an award of Low Income Housing Tax Credits from MSHDA to
facilitate a new construction affordable family apartment complex. They require an approved
contract for housing exemption prior to the 10/1/2024 application date.

Detailed Summary & Background:
Pivotal has successfully been awarded one LIHTC allocation on their 2023 project submission in our
community, and are now submitting one more in 2024. Notably, they are proposing new construction
of affordable family outside of the downtown area, directly next door to Hartford Terrace at 90
Hartford Street. They are requesting a 4% annual PILOT payment, which is what the policy
recommends given their location outside the DDA boundaries and service to families in the project.
This should provide roughly $15,000 annually to the City to be split between taxing jurisdictions. Staff
recommends approval of this request due to the need for additional housing units at price points
under $1,430 according to our 2023 Housing Needs Assessment. All of the proposed units in this
complex, along with all proposed LIHTC developments this round, would be under this threshold.

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:
NA Yes No N/A

Fund(s) or Account(s): Budget Amendment Needed:
NA Yes No N/A

Recommended Motion:
Motion to accept the Contract for Housing Exemption between the City of Muskegon and
Lighthouse Lofts Limited Dividend Housing Association LLC as presented and authorize the mayor and
clerk to sign.

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Approvals: Guest(s) Invited / Presenting:
Immediate Division
Head No

Information
Technology
Other Division Heads
Communication
Legal Review

Page 216 of 222
City of Muskegon

CONTRACT FOR HOUSING EXEMPTION

This Agreement between Lighthouse Lofts Limited Dividend Housing Association LLC, a Michigan
limited partnership/liability company/corporation, whose address is 9100 Centre Pointe Drive, Suite 210
West Chester, OH 45069 (the "Sponsor") and City of Muskegon, whose address is 933 Terrace Street,
Muskegon, Michigan (the "City") is made pursuant to the following terms:

RECITALS

D. (the "Project") to serve low income persons and families, and that the Sponsor has offered
to pay the City on account of this housing project an annual service charge for public services in lieu of all
ad valorem property taxes.

E. The Sponsor, or an affiliate of the Sponsor to be formed, has entered or will enter into an
agreement to form a limited dividend housing association limited partnership or limited liability company
to function as owner of the proposed low-income housing Project. The owning entity to be formed will be
identified as Lighthouse Lofts Limited Dividend Housing Association LLC.

F. The City desires to encourage construction and financing of the low-income housing
Project which is identified by the working name of Lighthouse Lofts.

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G. To further enable and encourage the construction of the housing Project, the Sponsor and
the City enter into this Agreement.

H. The legal description of the Project is set forth in Exhibit A attached to this Agreement.

NOW, THEREFORE, THE PARTIES AGREE AS FOLLOWS:

1. Definitions.

1.1. "Authority" means the Michigan State Housing Development Authority.

1.4. "Low Income Persons and Families" means persons and families eligible to move
into a housing project.

1.5 "LIHTC" means the low income housing tax credit administered by the Authority
under Section 42 of the Internal Revenue Code, as amended.

1.7. “Net Shelter Rent” means all collected rents on the subject project property
accounting for point-in-time vacancies.

1.8. "Sponsor" means Lighthouse Lofts Limited Dividend Housing Association LLC
and any entity that receives or assumes a Mortgage Loan.

1.9. "Utilities" means charges for gas, electric, water, sanitary sewer and other utilities
furnished to the occupants that are paid by the housing project.

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Low-Income Persons and Families as defined above.

3. Term of Exemption. This exemption shall begin on the tax day of the year in which a final
certificate of compliance or occupancy is issued by the City, and shall continue for the period the housing project
remains subject to income and rent restrictions pursuant to Section 42 of Internal Revenue Service Code of
1986, as amended (the "IRS Code"), or a Mortgage Loan remains outstanding, not to exceed 25 years. The
City agrees to be contractually bound by this Agreement to honor the exemption status of the proposed
project as provided herein and in this Agreement for the entire period during which the Project is subject to
the income and rent restrictions under Section 42 of the IRS Code or is subject to a Mortgage Loan, provided
that the said Mortgage Loan continues outstanding as more particularly set forth in Section 82-50 of the
Ordinance, not to exceed 25 years.

4. Responsibilities of the Sponsor. The Sponsor agrees to perform the following:

4.1 The Sponsor shall pay the service charge and payment in lieu of all ad valorem
taxes on or before July 1 of each year, beginning in the first year following the year in which the
exemption is first effective, and continuing throughout the time the exemption is in effect. The
service charge shall equal four percent (4%) of the net shelter rents charged for all the LIHTC
certified units in the exempt housing project for the preceding calendar year, exclusive of the utility
charges paid by the project.

Page 219 of 222
8. Limitation on the Payment of Annual Service Charge. Notwithstanding Section 4.1, the
service charge to be paid each year in lieu of taxes for the part of the housing project that is tax exempt but
which is occupied by other than Low Income Persons or Families as defined in Section 1.10 shall be equal
to the full amount of the taxes which would be paid on that portion of the housing project if the housing
project were not tax exempt.

9. Counterparts. This Agreement may be executed in several counterparts and an executed copy
hereof may be relied upon as an original.

12. Inconsistent Ordinances. All ordinances or parts of ordinances inconsistent or in conflict
with the provisions of this Agreement are of no effect to the extent of such inconsistency or conflict.

IN WITNESS WHEREOF, the parties have signed this Agreement on the following page, on the
dates indicated.

Page 220 of 222
City of Muskegon

By: Ken Johnson
Its: Mayor
Dated:

By: Ann Meisch
Its: City Clerk
Dated:

Project:

Lighthouse Lofts Limited Dividend Housing Association
LLC,
a Michigan limited liability company

By: PHP Lighthouse Lofts LLC
Its: Managing Member

By: Pivotal GP Holding LLC
Its: Sole Member

By:
Name: Brian McGeady
Its: President

Page 221 of 222
EXHIBIT A

LEGAL DESCRIPTION

MJ DMS 31007846v10

Page 222 of 222

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