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CITY OF MUSKEGON CITY COMMISSION MEETING February 25, 2025 @ 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 HEARINGS: A. Public Hearing-Brownfield Plan Amendment, Muskegon-Central Park, LLC (Krimson Exploratory Fund, LLC) 1700 Oak Ave. Economic Development ☐ FEDERAL/STATE/COUNTY OFFICIALS UPDATE: ☐ PUBLIC COMMENT ON AGENDA ITEMS: ☐ CONSENT AGENDA: A. Approval of Minutes City Clerk B. City of Muskegon 4th of July Fireworks Agreement DPW- Parks C. City of Muskegon Park Rules DPW- Parks D. Use Agreement - Muskegon YMCA DPW- Parks E. Sale of 1325 Terrace Planning F. Amendment to the zoning ordinance - Cottage Court Developments Planning G. Amendment to the zoning ordinance - Accessory Commercial Units Planning H. Muskegon Police Department Renovations Public Safety-Police Page 1 of 2 Page 1 of 139 I. 880 First St. Demolition- Asbestos Abatement Proposal Economic Development ☐ UNFINISHED BUSINESS: ☐ NEW BUSINESS: ☐ ANY OTHER BUSINESS: ☐ GENERAL PUBLIC COMMENT: ► Reminder: Individuals who would like to address the City Commission shall do the following: ►Fill out a request to speak form attached to the agenda or located in the back of the room. ► Submit the form to the City Clerk. ► Be recognized by the Chair. ► Step forward to the microphone. ► State name. ►Limit of 3 minutes to address the Commission. ☐ CLOSED SESSION: A. Discuss two different attorney client confidential communications Manager's Office ☐ ADJOURNMENT: AMERICAN DISABILITY ACT POLICY FOR ACCESS TO OPEN MEETINGS OF THE CITY OF MUSKEGON AND ANY OF ITS COMMITTEES OR SUBCOMMITTEES To give comment on a live-streamed meeting the city will provide a call-in telephone number to the public to be able to call and give comment. For a public meeting that is not live-streamed, and which a citizen would like to watch and give comment, they 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 Page 2 of 2 Page 2 of 139 Agenda Item Review Form Muskegon City Commission Commission Meeting Date: February 25, 2025 Title: Public Hearing-Brownfield Plan Amendment, Muskegon-Central Park, LLC (Krimson Exploratory Fund, LLC) 1700 Oak Ave. Submitted by: Contessa Alexander, Development Department: Economic Development Analyst Brief Summary: Muskegon-Central Park, LLC (Krimson Exploratory Fund, LLC) is requesting the approval of their brownfield plan amendment for the site located at 1700 Oak Ave. Detailed Summary & Background: The Brownfield Plan Amendment will help facilitate the redevelopment of the former Muskegon General Hospital site, located at 1700 Oak Avenue. This amendment will enable the use of Tax Increment Financing (TIF) to reimburse Muskegon-Central Park, LLC (Krimson Exploratory Fund, LLC) for eligible environmental and site redevelopment activities, supporting the creation of new affordable housing units. The former Muskegon General Hospital has remained vacant and blighted, posing environmental and safety concerns for the surrounding neighborhood. The proposed redevelopment project by Muskegon-Central Park, LLC (Krimson Exploratory Fund, LLC) aims to demolish the obsolete hospital structure and construct six new, three-story multifamily residential buildings. These buildings will provide 144 new rental housing units, designed as affordable workforce housing for individuals and families earning between 69-77% of Muskegon County’s Area Median Income (AMI). The total project investment is estimated at $21,532,385. Eligible Activities: The plan covers a wide range of eligible activities necessary for site redevelopment, including: • Demolition of the former hospital building- $1,417,375 • Asbestos abatement and removal of other hazardous materials- $621,000 • Site preparation activities, such as grading, clearing, and utility work- $934,835 • Public infrastructure improvements, including road, sidewalk, and utility upgrades to support the new development- $2,273,090 • Gap financing assistance to close the housing affordability gap, ensuring the project’s financial viability- $3,500,000 • Brownfield Plan/Work Preparation- $25,000 • Brownfield Plan/Work Plan Implementation- $30,000 Tax Increment Financing (TIF): The plan allows for the capture of new local and state tax increment revenues generated by the redevelopment to reimburse the developer for eligible costs. The total Page 3 of 139 cost of eligible activities is estimated at $8,801,300. Authority administrative costs are anticipated to be $674,440. The capture of TIR for the Local Brownfield Revolving Fund (LBRF) is estimated to be $1,924,857. • Local Tax Capture: $4,373,700 • State Tax Capture: $4,427,600 The reimbursement period is anticipated to last until 2048, with collection of TIF revenues beginning in 2026. Project Timeline: • Demolition and Site Preparation: Early 2025 • Construction Start: Mid-2025 • Completion of Construction: Late 2026 • TIF Revenue Collection: Beginning in 2026 • Developer Reimbursement Period: 2026-2048 Affordable Housing Impact: The project will provide 144 rental units, addressing approximately 25% of the city’s projected rental housing needs for individuals and families earning 51%-80% AMI by 2027. Community and Economic Benefits: • Elimination of a longstanding blighted and hazardous structure, improving neighborhood safety. • Creation of new jobs during both the construction and operational phases. • Increase in property tax revenues to support public services. • Revitalization of the Oak Avenue corridor, encouraging further private investment in the area. The developer intends to apply for a PA 210 (Commercial Rehabilitation Exemption Certificate. If the developer is approved, the taxable value of the property will be frozen during the duration of the certificate (1-10 years). The Brownfield Redevelopment Authority approved this Brownfield Plan Amendment on February 10th during their scheduled monthly meeting and recommended moving it forward for final approval by the City Commission. 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 X Page 4 of 139 Fund(s) or Account(s): Budget Amendment Needed: N/A Yes No N/A X Recommended Motion: I move to close the Public Hearing and approve the Brownfield Plan Amendment for the redevelopment project located at 1700 Oak Ave. and authorize the Mayor and City Clerk to sign the attached resolution. Approvals: Guest(s) Invited / Presenting: Immediate Division X Head No Information Technology Other Division Heads Communication Legal Review Page 5 of 139 Act 381 Brownfield Plan Amendment Muskegon – Central Park, LLC 1700 Oak Avenue Muskegon, Michigan 49442 City of Muskegon Brownfield Redevelopment Authority Project No. 240603 January 16, 2025 Page 6 of 139 Act 381 Brownfield Plan Amendment Muskegon – Central Park, LLC 1700 Oak Avenue Muskegon, Michigan 49442 Prepared For: City of Muskegon Brownfield Redevelopment Authority Muskegon, Michigan January 16, 2025 Project No. 240603 Recommended for Approval by the Brownfield Redevelopment Authority on: ________________ Adopted by the City Council on: ________________ Page 7 of 139 Table of Contents Fishbeck | Page i 1.0 Introduction ........................................................................................................................................................... 1 1.1 PROPOSED REDEVELOPMENT AND FUTURE USE FOR EACH ELIGIBLE PROPERTY ................................................................ 1 1.2 ELIGIBLE PROPERTY INFORMATION .......................................................................................................................... 1 2.0 Information Required by Section 13(2) of the Statute ............................................................................................ 2 2.1 DESCRIPTION OF COSTS TO BE PAID FOR WITH TAX INCREMENT REVENUES ....................................................................... 2 2.1.1 MSHDA HOUSING DEVELOPMENT ACTIVITIES ............................................................................................ 2 2.1.2 AUTHORITY ADMINISTRATIVE FEE .............................................................................................................. 3 2.1.3 LOCAL BROWNFIELD REVOLVING FUND ...................................................................................................... 3 2.2 SUMMARY OF ELIGIBLE ACTIVITIES........................................................................................................................... 3 2.3 ESTIMATE OF CAPTURED TAXABLE VALUE AND TAX INCREMENT REVENUES ..................................................................... 4 2.4 METHOD OF FINANCING AND DESCRIPTION OF ADVANCES MADE BY THE MUNICIPALITY .................................................... 4 2.5 MAXIMUM AMOUNT OF NOTE OR BONDED INDEBTEDNESS.......................................................................................... 4 2.6 DURATION OF BROWNFIELD PLAN ........................................................................................................................... 4 2.7 ESTIMATED IMPACT OF TAX INCREMENT FINANCING ON REVENUES OF TAXING JURISDICTIONS ............................................ 5 2.8 LEGAL DESCRIPTION, PROPERTY MAP, STATEMENT OF QUALIFYING CHARACTERISTICS, AND PERSONAL PROPERTY.................. 5 2.9 ESTIMATES OF RESIDENTS AND DISPLACEMENT OF INDIVIDUALS/FAMILIES ...................................................................... 5 2.10 PLAN FOR RELOCATION OF DISPLACED PERSONS......................................................................................................... 5 2.11 PROVISIONS FOR RELOCATION COSTS ....................................................................................................................... 5 2.12 STRATEGY FOR COMPLIANCE WITH MICHIGAN’S RELOCATION ASSISTANCE LAW ............................................................... 5 2.13 OTHER MATERIAL THAT THE AUTHORITY OR GOVERNING BODY CONSIDERS PERTINENT ..................................................... 5 List of Figures Figure 1 – Eligible Property Location Map Figure 2 – Eligible Property Site Map Figure 3 – Site Plan List of Tables Table 1 – Summary of Eligible Costs Table 2 – Total Captured Incremental Taxes Estimates Table 3 – Estimated Reimbursement Schedule List of Appendices Appendix 1: Brownfield Plan Resolution(s) Appendix 2: Housing Support Documents Appendix 3: MSHDA Total Housing Subsidy (THS) Calculation Appendix 4: Development/Reimbursement Agreement Z:\2024\240603\WORK\REPT\BROWNFIELD PLAN\1_DRAFT_KRIMSON BROWNFIELD PLAN_2025.DOCX Page 8 of 139 Fishbeck | Page 1 1.0 Introduction The City of Muskegon Brownfield Redevelopment Authority (Authority or MBRA) was established pursuant to the Brownfield Redevelopment Financing Act, Michigan Public Act 381 of 1996, as amended (Act 381). Act 381 enables the MBRA to help facilitate the redevelopment of brownfields by providing economic development incentives through tax increment financing (TIF). This Brownfield Plan Amendment (Plan Amendment) permits the use of TIF to reimburse Krimson Exploratory Fund, LLC (Developer) for the cost of eligible activities required to redevelop a portion of the former Muskegon General Hospital site located at 1700 Oak Avenue, Muskegon, Michigan (Eligible Property, Site, or Property) – see Eligible Property Maps (Figures 1 & 2). Copies of Plan Amendment resolutions are provided in Appendix 1. 1.1 Proposed Redevelopment and Future Use for Each Eligible Property The Developer intends to acquire and redevelop the Eligible Property for multi-family residential purposes, consistent with existing zoning for the Site. The Site includes the western 13.89 acres of the former Muskegon General Hospital campus, which was developed in the 1960s and remained operational until 2020. Due to the functional obsolete condition of the hospital, the proposed redevelopment will require demolition of the former hospital to facilitate construction of six new, three story, multifamily buildings consisting of 144 total dwelling units for rent (the Project). Each building will include 24 units comprised of one to bedroom ranging from 663 to 1,307 square feet of finished living space and one to three bathrooms based on the unit square footage. The total capital investment for the Project is expected to be $21,532,385. The proposed site plan is included as Figure 3. The Project focuses on providing affordable workforce housing for individuals and families earning approximately 69-77% of Muskegon County’s Area Median Income (AMI). Upon Project completion, 144 new housing units will be available to offset more than 25% of the community housing need (prior to 2027) for renters within 51%-80% of the AMI, as defined in the 2023 Muskegon Housing Needs Assessment (MHNA) as the greatest housing demand for the City of Muskegon. With a unit mix of 40% one-bedroom, 40% two-bedroom, and 20% three- bedroom, the Project successfully aligns with the MHNA goal for rental housing projects. In addition to providing sorely needed workforce housing in the City of Muskegon, the Project will remove a functionally obsolete structure and safety concern for the community. Project benefits also include significant local and state tax base growth and new full-time equivalent jobs. 1.2 Eligible Property Information Parcel ID No: The western 13.89 acres of 61-24-122-300-0003-00 Address: 1700 Oak Avenue, Muskegon, Muskegon County, Michigan Size: Approximately 13.89 acres The legal description is found under Section 2.8. Basis of Eligibility The Property qualifies as "Eligible Property" under Act 381, on the basis of meeting the definition of a “Housing Property.” Act 381 defines Housing Property, in part, as property on which one or more units of residential housing are proposed to be constructed. The Project will have six residential buildings with a total of 144 dwelling units for rent. Z:\2024\240603\WORK\REPT\BROWNFIELD PLAN\1_DRAFT_KRIMSON BROWNFIELD PLAN_2025.DOCX Page 9 of 139 Fishbeck | Page 2 The Project is also located in the City of Muskegon, a community that has identified a specific housing need and has absorption data or job growth data included in the brownfield plan.” Additionally, pursuant to Section 2(o)(ii) of Act 381, The Project meets these criteria based on the following: • The MHNA (2023) identified low-income rental housing ($895-$1,430/month rent) as the greatest housing need for the City of Muskegon at 403 units by 2027. A significant factor contributing to this need, as identified in the MHNA (2023), is high poverty (greater than 22% in the Project area). People are spending more money on rent and cannot afford critical needs like food. Affordable housing options will improve poverty rates. The Project provides 144 new housing rental units within 69%-77% of AMI, most falling within the low-income rental category. • According to the MHNA (2023), existing housing stock vacancy rates are low (7.6%) in the Project area - well below the statewide vacancy rate, 11.6%. In conjunction with the low vacancy rate, the MHNA (2023) noted that households are projected to increase more than double that of the state in the next five years, adding to the housing demand. New housing stock created by the Project will increase availability to support this growth. Relevant housing data from the sources above is provided in Appendix 2. Michigan State Housing Development Authority’s (MSHDA) Total Housing Subsidy Site-Specific Calculation demonstrating Project congruence with meeting specific housing need is provided in Appendix 3. 2.0 Information Required by Section 13(2) of the Statute 2.1 Description of Costs to be Paid for with Tax Increment Revenues This Plan Amendment has been developed to reimburse eligible brownfield costs incurred by the Developer to support the transition from a former hospital to new affordable workforce housing that meets community needs. New local and state tax increment revenues (TIR) will be captured for reimbursement of eligible expenses based on actual available new TIR generated from the Project and subject to local Authority and Michigan State Housing Development Authority (MSHDA) approval, as appropriate. Base local and state taxes associated with the Property will continue to be levied and distributed to local and state taxing jurisdictions. No local debt or special assessment taxes will be captured to reimburse eligible activity costs. Eligible activities in this Plan support “for rent” housing units with households earning a projected 69-77% of AMI. The total cost of eligible activities, including contingency is anticipated to be $8,801,300, described below and summarized in Table 1 (attached). Authority administrative costs are anticipated to be $674,440. The capture of TIR for the Local Brownfield Revolving Fund (LBRF) is estimated to be $1,924,857. 2.1.1 MSHDA Housing Development Activities Building Demolition Building Demolition costs are anticipated on the property. This includes building demolition/deconstruction ($820,000), backfill ($412,000), and a 15% contingency cost of $184,875. The total cost of these eligible activities is anticipated to be $1,417,375. Lead and Asbestos Abatement Lead and asbestos abatement activities are anticipated on the property. This includes abatement including disposal and air monitoring ($540,000) and a 15% contingency cost of $81,000. The total cost of these eligible activities is anticipated to be $621,000. Z:\2024\240603\WORK\REPT\BROWNFIELD PLAN\1_DRAFT_KRIMSON BROWNFIELD PLAN_2025.DOCX Page 10 of 139 Fishbeck | Page 3 Site Preparation Site preparation activities is anticipated on the Property. This includes cut and fill operations ($80,000), geotechnical engineering ($30,000), grading ($14,000), land balancing ($35,000), relocation of active utilities ($72,000), solid waste disposal ($82,500), staking ($28,000), temporary construction access and/or roads ($5,000), temporary erosion control ($15,000), temporary facility ($50,000), temporary sheeting/shoring ($125,000), temporary site control ($29,000), temporary traffic control ($6,000), soft costs related to site preparation ($241,400) and a 15% contingency cost of $121,935. The total cost of these activities is anticipated to be $934,835. Infrastructure Improvements Infrastructure improvements activities are anticipated on the Property This includes streets & roads ($543,000), sidewalks ($77,000), lighting ($85,000), sanitary sewer mains ($150,000), water mains ($340,000), curb and gutter ($6,600), sanitary sewer mains ($150,000), landscaping ($110,000), urban storm water management systems ($200,000), soft costs ($315,000), and a 15% contingency cost ($296,490). The total cost of these activities is anticipated to be $2,273,090. Development of a Housing Financing Gap A development of a housing financing gap cost is anticipated on the property. The total cost if this activity is anticipated to be $3,500,000. Brownfield Plan/Work Plan Preparation Preparation of the Brownfield Plan and Work Plan is estimated to cost $25,000. Brownfield Plan/Work Plan Implementation Implementation of the Brownfield Plan is estimated to cost $30,000. 2.1.2 Authority Administration Fee This Plan Amendment includes a 10% administration fee for the MBRA, which will be captured from new local TIR generated as a result of the Project. The estimated administration fee capture amount during the duration of the Plan is $674,440. 2.1.3 Local Brownfield Revolving Fund The Authority can capture new tax revenue from the Project for deposit in the LBRF, up to five years after Developer reimbursement occurs or not more than the eligible activities, whichever occurs first and as allowed by the statute. It is estimated that $1,924,857 will be captured for deposit in the LBRF. 2.2 Summary of Eligible Activities Eligible Activities to Support Housing Property • Lead and asbestos abatement activities include abatement, disposal, and air monitoring. • Demolition of functionally obsolete hospital to support new housing. • Site preparation activities include cut and fill operations, geotechnical engineering, grading, land balancing, relocation of active utilities, solid waste disposal, staking, temporary construction access and/or roads, temporary erosion control, temporary facility, temporary sheeting/shoring, temporary site control, temporary traffic control, soft costs, and a 15% contingency. Z:\2024\240603\WORK\REPT\BROWNFIELD PLAN\1_DRAFT_KRIMSON BROWNFIELD PLAN_2025.DOCX Page 11 of 139 Fishbeck | Page 4 • Infrastructure Improvements include streets/roads, sidewalks, lighting, sanitary sewer mains, water mains, curb and gutter, sanitary sewer mains, landscaping, urban storm water management systems, soft costs, and a 15% contingency. • Development of Housing Financing Gap. • Brownfield Plan/Work Plan preparation and implementation. Authority Expenses A 10% administration fee to cover eligible administrative costs incurred by the MBRA that are related to the Project are included in this Plan Amendment. These expenses will be reimbursed with local TIR only. Contingency A 15% contingency is included to cover unexpected cost overruns related to future eligible activities completed. The contingency is limited to infrastructure and site preparation activities. 2.3 Estimate of Captured Taxable Value and Tax Increment Revenues The initial taxable value will be the 2025 anticipated taxable value of $945,146. An estimate of the captured taxable value for this redevelopment by year is depicted in Table 2. This Plan Amendment captures real property tax increment revenues and assumes a 2% annual increase in taxable value of the Eligible Property. Project activities will commence in 2025. Completion of construction is anticipated in 2026. Tax increment revenue collection is anticipated to begin in 2026. After the completion of the Project, the projected taxable is estimated to be $9,633,629. Reimbursements will be made based on actual tax increment revenues. The estimated captured taxable value for this redevelopment by year and in aggregate for each taxing jurisdiction is depicted in tabular form (Table 2). Once eligible expenses are reimbursed, the Authority may capture up to five full years of the tax increment and deposit the revenues into an LBRF provided the amount does not exceed the total cost of eligible activities. A summary of the estimated reimbursement schedule and the amount of capture into the LBRF by year and in aggregate is presented in Table 3. 2.4 Method of Financing and Description of Advances Made by the Municipality The eligible activities contemplated under this Plan Amendment will be financed by the Developer. Reimbursement of approved Developer eligible costs will conform to a Development and Reimbursement Agreement between the Developer and MBRA, included in Appendix 4. TIF utilizing new local and state tax increment revenue from the Project will be the source of the reimbursement, as outlined in this Plan Amendment. No interest expenses will be reimbursed. 2.5 Maximum Amount of Note or Bonded Indebtedness At this time, there are no plans by the Authority to incur indebtedness to support the development of this Site, but such plans could be made in the future to assist in the development if the Authority so chooses. 2.6 Duration of Brownfield Plan The Authority intends to begin the capture of tax increment revenue in 2026. It is anticipated that Developer reimbursement will be completed in 2048. Following Developer reimbursement, the MBRA may capture tax increment revenue for five years, or an amount equivalent to reimbursed Developer costs (whichever occurs sooner), for deposit into the LBRF. An analysis showing the reimbursement schedule is attached in Table 3. Z:\2024\240603\WORK\REPT\BROWNFIELD PLAN\1_DRAFT_KRIMSON BROWNFIELD PLAN_2025.DOCX Page 12 of 139 Fishbeck | Page 5 2.7 Estimated Impact of Tax Increment Financing on Revenues of Taxing Jurisdictions An estimate of the impact of tax increment financing on the revenues of all taxing jurisdictions is illustrated in detail in Table 2. 2.8 Legal Description, Property Map, Statement of Qualifying Characteristics, and Personal Property The Eligible Property is in the City of Muskegon, Muskegon County, Michigan, and consists of 13.89 acres of a 25- acre parent parcel. The parent parcel ID number is 61-24-122-300-0003-00. A Site layout map is attached as Figure 2. The legal description of the Eligible Property is as follows: Eligible Property - The Western 13.89 acres of PARCEL ID 61-24-122-300-0003-00 Part of the North 1/2 of the Southwest 1/4 of Section 22, Town 10 North, Range 16 West, City of Muskegon, Muskegon County, Michigan, described as: Beginning at a point on the West line of said Section 22 that is 750.77 feet South 00 degrees 10 minutes 00 seconds East of the West 1/4 corner of Section 22; thence North 88 degrees 59 minutes 00 seconds East 476.68 feet; thence North 02 degrees 06 minutes 10 seconds West 295.47 feet; thence North 89 degrees 50 minutes 00 seconds East 1.35 feet; thence South 65 degrees 27 minutes 17 seconds East 121.09 feet; thence North 88 degrees 44 minutes 43 seconds East 98.19 feet; thence South 01 degrees 44 minutes 05 seconds East 97.05 feet; thence North 89 degrees 08 minutes 54 seconds East 226.07 feet; thence South 01 degrees 01 minutes 00 seconds East 715.27 feet along a line which is 66.0 feet West of the west boundary of Osteopathic Medical Plats No.1 & No.2; thence South 89 degrees 01 minutes 03 seconds West 915.58 feet along the south line of the North 1/2 of said SW 1/4 to the West line of said Section 22; thence North 00 degrees 10 minutes 00 seconds West 568.92 feet along said west line to the Point of Beginning. Parcel contains 604,850 square feet. The Property qualifies as Eligible Property under Act 381 on the basis of meeting the definition of a “Housing Property.” 2.9 Estimates of Residents and Displacement of Individuals/Families There are no residents or families residing at this Property, thus no residents, families, or individuals will be displaced by the Project. 2.10 Plan for Relocation of Displaced Persons No persons reside on the Eligible Property. Therefore, this section is not applicable. 2.11 Provisions for Relocation Costs No persons reside on the Eligible Property. Therefore, this section is not applicable. 2.12 Strategy for Compliance with Michigan’s Relocation Assistance Law No persons reside on the Eligible Property. Therefore, this section is not applicable. 2.13 Other Material that the Authority or Governing Body Considers Pertinent In addition to providing much needed workforce housing to the community, redevelopment of the Site will eliminate vandalism and attractive nuisance concerns related to the vacant hospital, lessening public safety burdens. Site redevelopment will also serve as a potential catalyst for future development of the remaining former hospital campus to the east, providing new tax base to the community. Z:\2024\240603\WORK\REPT\BROWNFIELD PLAN\1_DRAFT_KRIMSON BROWNFIELD PLAN_2025.DOCX Page 13 of 139 Figures Page 14 of 139 US 31 VICINITY MAP MICHIGAN 116 CITY OF MUSKEGON MUSKEGON COUNTY _ ^ US 31 Business US 31 Business MacArthur Road Hard copy is 116 intended to be Access Hig Orchard View 8.5"x11" when hway plotted. Scale(s) High School indicated and graphic quality may not be accurate for any other size. Hall Road South Sheridan Road Marquette Avenue Marquette Avenue US 31 1700 Oak Avenue, Muskegon, Michigan Krimson Development Marquette Avenue US 31 South Quarterline Road Harvey Street SITE Brownfield Plan South Getty Street 114 PLOT INFO: Z:\2024\240603\CAD\GIS\ProProj\Brownfield Plan.aprx Layout: FIG01_Site Location Map Date: 5/23/2024 8:48 AM User: ahavens M 46 M 46 114 rterline Road Oakwood Cemetery US 31 S outh Qua South Sheridan Drive Laketon Avenue East Laketon Avenue 113 PROJECT NO. 240603 South Getty Street SITE LOCATION MAP FIGURE NO. NORTH 0 1,000 FEET 2,000 DATA SOURCES: ESRI STREET MAP. 1 ©Copyright 2024 All Rights Reserved Page 15 of 139 LEGEND Approximate Property Boundary Hard copy is intended to be 8.5"x11" when plotted. Scale(s) indicated and V i llage Dr graphic quality may not be accurate for any other size. 1700 Oak Avenue, Muskegon, Michigan Krimson Development U S H i gh w ay 31 US H i ghw ay 31 Har vey St W agn er Av e Brownfield Plan E We lls Av e PLOT INFO: Z:\2024\240603\CAD\GIS\ProProj\Brownfield Plan.aprx Layout: FIG02_Eligible Property Map Date: 5/23/2024 8:48 AM User: ahavens We ll s Ave Mercy Health General Oa k A ve 114 Ryer s on C e k r e ek Cre n so PROJECT NO. er Ry 240603 ELIGIBLE PROPERTY MAP FIGURE NO. 2 Ha rvFEET ey St NORTH 0 100 200 DATA SOURCES: ESRI HYRBID REFERENCE LAYER & MiSAIL IMAGERY. ©Copyright 2024 All Rights Reserved Page 16 of 139 7 6 5 4 3 2 1 CALL 811 NOTE: CONTRACTOR TO CONTACT 811 SERVICE AT LEAST 3 WORKING DAYS PRIOR TO CONSTRUCTION, TO CONFIRM LOCATION OF EXISTING UTILITIES. DIAL 811. 330 South Tyron St. Suite 500 | Charlotte, NC 28202 | 704.731.8080 www.progressiveae.com www.CALL811.com LANDSCAPE LEGEND SEEDING LIMITS PLANTING BED EDGE 1811 4 Mile Rd NE | Grand Rapids, MI 49525 | 616.361.2664 (ALUM.-SEE SPECS.) A X PERENNIALS/ THIN BRANCHES AND FOLIAGE (NOT ALL END GROUND COVERS X X X X X TIPS) BY 1/3. RETAIN X X X NORMAL PLANT SHAPE EVERGREEN SHRUB X DECIDUOUS SHRUB PROGRESSIVE AE, INC. 3" HARDWOOD MULCH, X TAPER TO 1 1/2" DEPTH FORM SAUCER AROUND WITHIN 12" OF TRUNK PLANT PIT ORNAMENTAL GRASS X SCORE ROOTBALL IF REUSE EXISTING CONTAINER GROWN EVERGREEN TREE PLANTING PIT SOIL OR REMOVE BURLAP FOR BACKFILL AND LASHING FROM X 12" 12" UPPER 1/3 OF ROOT BALL UNDISTURBED EXISTING WOODLOT SUBGRADE CANOPY/ORNAMENTAL TREE TO REMAIN X X X SHRUB PLANTING DETAIL X ..\C3 DISCIPLINE\Civ\Krimson Logo OFFICIAL.jpeg NO SCALE X X TYPE A SEED MIX PA DOG PARK X 1 X AR TYPE B SEED MIX 1 X X SEED MIXTURE (TYPE A) X 2 X 2 HARDWOOD STAKES OR EGS GREEN GROUNDS SEED MIX X B X CEDAR POSTS, 2 PER TREE FOR FLEXIBLE 3/4" WIDE LESS THAN 3" CAL.; 3 PER TREE POLYPROPYLENE 19.96% KELLY KENTUCKY BLUEGRASS X FOR 3" CAL. OR GREATER STAKING STRAPS 19.94% BARON KENTUCKY BLUEGRASS X X 19.91% SOX FAN PERENNIAL RYEGRASS X 19.82% EXACTA II GLSR PERENNIAL RYEGRASS 30" EXPOSE TREE ROOT 19.73% JUMPSTART KENTUCKY BLUEGRASS Oak CROWN, PLANT TREE 30" Oak SO ROOT CROWN IS BY ECO GREEN SUPPLY, SEED AT RATE OF EVEN WITH FINAL GRADE 5-7 LBS, PER 1,000 SQ. FT. 3" HARDWOOD MULCH, FORM SAUCER TAPER TO 1 1/2" DEPTH AROUND PLANT PIT AR CM2 WITHIN 12" OF TRUNK 1 1 SEED MIXTURE (TYPE B) AC ENLARGED PLANTING CM2 REUSE EXISTING HOSPITAL 1 PLANS - SEE SHT. L2021 PLANTING PIT SOIL EGS SHADY SEED MIX FOR BACKFILL UNDISTURBED 47.79% ORACLE CREEPING RED FESCUE 16" Linden STAKES TO EXTEND SUBGRADE 19.78% SHANNON KENTUCKY BLUEGRASS 12" BELOW PLANT PIT REMOVE WIRE BASKET 10.96% SWORD HARD FESCUE AC IN UNDISTURBED SOIL TO BOTTOM OF ROOT 9.79% GALLOP PERENNIAL RYEGRASS 1 2X ROOT BALL BALL; REMOVE BURLAP 9.76% FAIRMONT CHEWINGS FESCUE 24" MAPLE DIAMETER AND LASHING FROM 18" UPPER 1/3 OF ROOT BY ECO GREEN SUPPLY, SEED AT RATE OF PINE BALL 5-6 LBS, PER 1,000 SQ. FT. ZS ON DEVELOPMENT 4 EVERGREEN TREE PLANTING DETAIL 18" PINE NO SCALE LAYOUT A 24" MAPLE PLANTING PLAN LAYOUT A GENERAL LANDSCAPE NOTES MUSKEGON SEE ENLARGED PLANTING PLAN PLANTING PLAN AC TYPE B SEED SHT. L202 AR 1 1. CONTRACTOR RESPONSIBLE FOR UNDERSTANDING PROJECT CONDITIONS MIX (TYP) 1 AM AND VERIFYING PLANT QUANTITIES. NOTIFY LANDSCAPE ARCHITECT OF 2 ANY PLAN DISCREPANCIES. 2. PLANT LOCATIONS TO BE STAKED IN THE FIELD FOR REVIEW AND LAYOUT B 2 X 2 HARDWOOD STAKES APPROVAL BY LANDSCAPE ARCHITECT AND OWNER.CONTRACTOR WILL BE C 24" RESPONSIBLE FOR VERIFYING ALL EXISTING UNDERGROUND UTILITIES. KRIMSON MAPLE 18" PINE PLANTING PLAN OR CEDAR POSTS, 2 PER FLEXIBLE 3/4" WIDE TREE FOR LESS THAN 3" POLYPROPYLENE CONTACT THE APPROPRIATE UTILITY COMPANY FOR FIELD STAKING ALL AM AR CAL.; 3 PER TREE FOR 3" STAKING STRAPS LINES. CF2 AM CAL. OR GREATER AR 2 3 1 4 TREE WRAP 2 EXPOSE TREE ROOT CROWN, 3. ALL AREAS DISTURBED BY CONSTRUCTION TO BE TOPSOILED AND SEEDED PLANT TREE SO ROOT CROWN IS 9" Callery EVEN WITH FINAL GRADE REMOVE WIRE BASKET UNLESS SHOWN OTHERWISE ON PLANS Pear 24" TO BOTTOM OF ROOT MAPLE 3" HARDWOOD MULCH, BALL; REMOVE BURLAP TAPER TO 1 1/2" DEPTH AND LASHING FROM 4. CONTRACTOR TO CONTACT MISS DIG AT PHONE NUMBER 811 AT LEAST 3 PS2 WITHIN 12" OF TRUNK UPPER 1/3 OF ROOT WORKING DAYS PRIOR TO CONSTRUCTION, TO CONFIRM LOCATION OF COA ARCHITECT COA ENGINEER 1 REUSE EXISTING BALL EXISTING UTILITIES. PLANTING PIT SOIL FORM SAUCER FOR BACKFILL AROUND PLANT PIT 5. CONTRACTOR TO COORDINATE PLANTING SCHEDULE WITH IRRIGATION CONTRACTOR. 24" CM2 CR OR 1 RUCTI MAPLE 6. NOTIFY LANDSCAPE ARCHITECT IF AREAS OF POOR DRAINAGE OR OTHER 1 PLAYGROUND UNUSUAL SUB-GRADE CONDITIONS ARE ENCOUNTERED DURING MANICURED STAKES TO EXTEND OPEN SPACE EXCAVATION FOR PLANTING PITS. MANICURED TYPE TYPE B SEED 9" Callery 12" BELOW PLANT PIT UNDISTURBED LEASING OFFICE Pear IN UNDISTURBED SOIL SUBGRADE PS A SEED MIX (TYP) MIX (TYP) 2X ROOT BALL 7. SHRUB PLANTING BEDS AND TREE SAUCERS TO RECEIVE 3" SHREDDED PLANTING PLAN NOT F 1 CF2 DIAMETER HARDWOOD MULCH, PERENNIAL BEDS TO RECEIVE 2" DEPTH MULCH AND 1 GROUND COVER AREAS TO RECEIVE 1'' DEPTH MULCH. CF2 2 MAIN ENTRANCE 8. PLANTING MIXTURE FOR PERENNIALS SHALL BE SIX INCH DEPTH OF FOUR DECIDUOUS TREE PLANTING DETAIL PARTS BY VOLUME OF TOPSOIL TO ONE PART OF SPHAGNUM PEAT MOSS. PLANTING PLAN CONST NO SCALE PS2 1 9. CONTRACTOR SHALL PROVIDE SPECIFIED SHRUBS, GROUND COVERS AND OTHER PLANT MATERIALS THAT COMPLY WITH ALL RECOMMENDATIONS 20" AND REQUIREMENTS OF ANSI Z60.1 "AMERICAN STANDARD FOR NURSERY BEECH AC 9" Callery STOCK". PLANT MATERIAL SHALL BE HEALTHY, VIGOROUS STOCK, GROWN Pear 1 WITH GOOD HORTICULTURAL PRACTICE AND INSTALLED IN ACCORDANCE WITH METHODS ESTABLISHED BY THE AMERICAN ASSOCIATION OF AM AR NURSERYMEN. CF2 AM 2 2 AR LAYOUT A 20" MAPLE 1 4 10. NOTIFY LANDSCAPE ARCHITECT AND OWNER (3 DAYS MIN. NOTICE) TO 2 PLANTING PLAN INSPECT AND TAG PLANT MATERIAL IN THE NURSERY PRIOR TO JOBSITE AM DELIVERY AND INSTALLATION. If this document is sealed and signed in a digital D 24" BEECH 2 or electronic format and is received from someone other than the sealing professional identified in the document, you must contact the sealing AC professional in writing to validate authenticity of 9" 1 the document. The sealing professional disclaims Maple the seal and signature and shall not be liable for any liability associated with it where the authenticity of any digital or electronic seal or 18" LAYOUT B signature has not been validated in this manner. Oak LAYOUT B CM2 PLANTING PLAN PLANTING PLAN 1 ISSUANCE 12" 24" Oak Oak 24" MAPLE ZS 2 MANICURED PS2 20" Oak TYPE B SEED 1 12" Oak MIX (TYP) 25" 20" 24" 30" 17" 17" 20" Oak Oak 14" Oak Oak Oak Oak Oak 24" Oak 24" 20" 18" 16" 20" Oak 12" 18" Oak Oak Oak Oak Oak Oak SHALL RETAIN ALL COMMON LAW, STATUTORY AND OTHER RESERVED RIGHTS, INCLUDING THE COPYRIGHT THERETO. Oak THIS DOCUMENT HAS BEEN PREPARED BY PROGRESSIVE AE AS AN INSTRUMENT OF SERVICE, AND PROGRESSIVE AE PROJECT NUMBER 89550010 P:\89550010\03 WIP\C2 BIM\11 - L201 - OVERALL LANDSCAPE PLAN.dwg jcatchot OVERALL LANDSCAPE PLAN PLANT SCHEDULE PLANT LIST PROJECT MANAGER P.LAZDINS 1"= 40' 0 40' PROFESSIONAL NORTH CODE BOTANICAL / COMMON NAME CONT CAL SIZE P.LAZDINS E DRAWN BY TREES A.CARTEN-CRANDELL AC Abies concolor / White Fir B&B 2 1/2" CAL. 6` HT. CHECKED BY AR Acer rubrum / Red Maple B&B 2 1/2" CAL. AM Acer saccharum 'PNI 0285' / Green Mountain® Sugar Maple B&B 2 1/2" CAL. CF2 Carpinus betulus 'Fastigiata' / Upright European Hornbeam B&B 2 1/2" CAL. 12` HT. FIGURE 3 10/16/2024 11:00:28 AM Jackson Catchot CM2 Cornus kousa 'Milky Way' / Milky Way Kousa Dogwood B&B 2 1/2" CAL. CR Cornus kousa 'Ruby Slippers' / Ruby Slippers Kousa Dogwood B&B 2 1/2" CAL. PA Picea abies / Norway Spruce B&B 2 1/2" CAL. 6` HT. PS2 PS Pinus strobus / White Pine Prunus serrulata `Kwanzan` / Flowering Cherry B&B B&B 2 1/2" CAL. 2 1/2" CAL. 6` HT. 8-10` HT. SITE PLAN OVERALL ZS Zelkova serrata / Japanese Zelkova B&B 2 1/2" CAL. LANDSCAPE PLAN L201 Page 17 of 139 Tables Page 18 of 139 Table 1 – Summary of Eligible Costs Act 381 Brownfield Plan Muskegon - Central Park, LLC 1700 Oak Dr Muskegon, Michigan January 2025 MSHDA Eligible Activities Cost Building Demolition $ 1,417,375 Building Demolition/Deconstruction $ 820,000 Backfill $ 412,500 Contingency (15%) $ 184,875 Lead and Asbestos Abatement $ 621,000 Abatement Including Disposal and Air Monitoring $ 540,000 Contingency (15%) $ 81,000 Site Preparation $ 934,835 Cut and Fill Operations $ 80,000 Geotechnical Engineering $ 30,000 Grading $ 14,000 Land Balancing $ 35,000 Relocation of Active Utilities $ 72,000 Solid Waste Disposal $ 82,500 Staking $ 28,000 Temporary Construction Access and/or Roads $ 5,000 Temporary Erosion Control $ 15,000 Temporary Facility $ 50,000 Temporary Sheeting/Shoring $ 125,000 Temporary Site Control $ 29,000 Temporary Traffic Control $ 6,000 Soft Costs Related to Site Preparation $ 241,400 Contingency (15%) $ 121,935 Infrastructure Improvements $ 2,273,090 Streets, roads $ 543,000 Sidewalks $ 77,000 Lighting $ 85,000 Sanitary Sewer Mains $ 150,000 Water mains $ 340,000 Curb and Gutter $ 6,600 Sanitary sewer mains $ 150,000 Landscaping $ 110,000 Urban Storm Water Management Systems (Traditional) $ 200,000 Soft Costs Related to Infrastructure $ 315,000 Contingency (15%) $ 296,490 Development of Housing Financing Gap $ 3,500,000 Development of Housing Financing Gap $ 3,500,000 MSHDA Eligible Activities Subtotal $ 8,746,300 Brownfield Plan/Work Plan Preparation $ 25,000 Brownfield Plan/Work Plan Implementation $ 30,000 MSHDA Eligible Activities Total Costs $ 8,801,300 1/12/2025 Page 19 of 139 Table 2: Tax Increment Revenue Capture Estimates Muskegon - Central Park, LLC 1700 Oak Dr Muskegon, Michigan January 2025 Estimated Taxable Value (TV) Increase Rate: 2% Plan Year 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 TOTAL Calendar Year 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047 2048 2049 2050 2051 2052 2053 *Base Taxable Value $ 945,146 $ 945,146 $ 945,146 $ 945,146 $ 945,146 $ 945,146 $ 945,146 $ 945,146 $ 945,146 $ 945,146 $ 945,146 $ 945,146 $ 945,146 $ 945,146 $ 945,146 $ 945,146 $ 945,146 $ 945,146 $ 945,146 $ 945,146 $ 945,146 $ 945,146 $ 945,146 $ 945,146 $ 945,146 $ 945,146 $ 945,146 $ 945,146 $ 945,146 Estimated New TV $ 945,146 $ 5,333,629 $ 9,633,629 $ 9,826,302 $ 10,022,828 $ 10,223,284 $ 10,427,750 $ 10,636,305 $ 10,849,031 $ 11,066,012 $ 11,287,332 $ 11,513,078 $ 11,743,340 $ 11,978,207 $ 12,217,771 $ 12,462,126 $ 12,711,369 $ 12,965,596 $ 13,224,908 $ 13,489,406 $ 13,759,194 $ 14,034,378 $ 14,315,066 $ 14,601,367 $ 14,893,395 $ 15,191,262 $ 15,495,088 $ 15,804,989 $ 16,121,089 Incremental Difference (New TV - Base TV) $ - $ 4,388,483 $ 8,688,483 $ 8,881,156 $ 9,077,682 $ 9,278,138 $ 9,482,604 $ 9,691,159 $ 9,903,885 $ 10,120,866 $ 10,342,186 $ 10,567,932 $ 10,798,194 $ 11,033,061 $ 11,272,625 $ 11,516,980 $ 11,766,223 $ 12,020,450 $ 12,279,762 $ 12,544,260 $ 12,814,048 $ 13,089,232 $ 13,369,920 $ 13,656,221 $ 13,948,249 $ 14,246,116 $ 14,549,942 $ 14,859,843 $ 15,175,943 School Capture Millage Rate State Education Tax (SET) 6.0000 $ - $ 26,331 $ 52,131 $ 53,287 $ 54,466 $ 55,669 $ 56,896 $ 58,147 $ 59,423 $ 60,725 $ 62,053 $ 63,408 $ 64,789 $ 66,198 $ 67,636 $ 69,102 $ 70,597 $ 72,123 $ 73,679 $ 75,266 $ 76,884 $ 78,535 $ 80,220 $ 81,937 $ 83,689 $ 85,477 $ 87,300 $ 89,159 $ 91,056 $ 1,916,182 School Operating Tax 18.0000 $ - $ 78,993 $ 156,393 $ 159,861 $ 163,398 $ 167,006 $ 170,687 $ 174,441 $ 178,270 $ 182,176 $ 186,159 $ 190,223 $ 194,367 $ 198,595 $ 202,907 $ 207,306 $ 211,792 $ 216,368 $ 221,036 $ 225,797 $ 230,653 $ 235,606 $ 240,659 $ 245,812 $ 251,068 $ 256,430 $ 261,899 $ 267,477 $ 273,167 $ 5,748,546 School Total 24.0000 $ - $ 105,324 $ 208,524 $ 213,148 $ 217,864 $ 222,675 $ 227,582 $ 232,588 $ 237,693 $ 242,901 $ 248,212 $ 253,630 $ 259,157 $ 264,793 $ 270,543 $ 276,408 $ 282,389 $ 288,491 $ 294,714 $ 301,062 $ 307,537 $ 314,142 $ 320,878 $ 327,749 $ 334,758 $ 341,907 $ 349,199 $ 356,636 $ 364,223 $ 7,664,727 Local Capture Millage Rate County Museum 0.3143 $ - $ 1,379 $ 2,731 $ 2,791 $ 2,853 $ 2,916 $ 2,980 $ 3,046 $ 3,113 $ 3,181 $ 3,251 $ 3,322 $ 3,394 $ 3,468 $ 3,543 $ 3,620 $ 3,698 $ 3,778 $ 3,860 $ 3,943 $ 4,027 $ 4,114 $ 4,202 $ 4,292 $ 4,384 $ 4,478 $ 4,573 $ 4,670 $ 4,770 $ 100,376 County Veterans 0.0732 $ - $ 321 $ 636 $ 650 $ 664 $ 679 $ 694 $ 709 $ 725 $ 741 $ 757 $ 774 $ 790 $ 808 $ 825 $ 843 $ 861 $ 880 $ 899 $ 918 $ 938 $ 958 $ 979 $ 1,000 $ 1,021 $ 1,043 $ 1,065 $ 1,088 $ 1,111 $ 23,377 Senior CIT SVC 0.4880 $ - $ 2,142 $ 4,240 $ 4,334 $ 4,430 $ 4,528 $ 4,628 $ 4,729 $ 4,833 $ 4,939 $ 5,047 $ 5,157 $ 5,270 $ 5,384 $ 5,501 $ 5,620 $ 5,742 $ 5,866 $ 5,993 $ 6,122 $ 6,253 $ 6,388 $ 6,525 $ 6,664 $ 6,807 $ 6,952 $ 7,100 $ 7,252 $ 7,406 $ 155,849 Central Dispatch 0.2927 $ - $ 1,285 $ 2,543 $ 2,600 $ 2,657 $ 2,716 $ 2,776 $ 2,837 $ 2,899 $ 2,962 $ 3,027 $ 3,093 $ 3,161 $ 3,229 $ 3,299 $ 3,371 $ 3,444 $ 3,518 $ 3,594 $ 3,672 $ 3,751 $ 3,831 $ 3,913 $ 3,997 $ 4,083 $ 4,170 $ 4,259 $ 4,349 $ 4,442 $ 93,478 Comm College 2.1515 $ - $ 9,442 $ 18,693 $ 19,108 $ 19,531 $ 19,962 $ 20,402 $ 20,851 $ 21,308 $ 21,775 $ 22,251 $ 22,737 $ 23,232 $ 23,738 $ 24,253 $ 24,779 $ 25,315 $ 25,862 $ 26,420 $ 26,989 $ 27,569 $ 28,161 $ 28,765 $ 29,381 $ 30,010 $ 30,651 $ 31,304 $ 31,971 $ 32,651 $ 687,111 M.A.I.S.D. 4.6382 $ - $ 20,355 $ 40,299 $ 41,193 $ 42,104 $ 43,034 $ 43,982 $ 44,950 $ 45,936 $ 46,943 $ 47,969 $ 49,016 $ 50,084 $ 51,174 $ 52,285 $ 53,418 $ 54,574 $ 55,753 $ 56,956 $ 58,183 $ 59,434 $ 60,710 $ 62,012 $ 63,340 $ 64,695 $ 66,076 $ 67,486 $ 68,923 $ 70,389 $ 1,481,272 City Operating 9.6732 $ - $ 42,451 $ 84,045 $ 85,909 $ 87,810 $ 89,749 $ 91,727 $ 93,745 $ 95,802 $ 97,901 $ 100,042 $ 102,226 $ 104,453 $ 106,725 $ 109,042 $ 111,406 $ 113,817 $ 116,276 $ 118,785 $ 121,343 $ 123,953 $ 126,615 $ 129,330 $ 132,099 $ 134,924 $ 137,806 $ 140,744 $ 143,742 $ 146,800 $ 3,089,268 City Sanitation 2.8838 $ - $ 12,656 $ 25,056 $ 25,611 $ 26,178 $ 26,756 $ 27,346 $ 27,947 $ 28,561 $ 29,187 $ 29,825 $ 30,476 $ 31,140 $ 31,817 $ 32,508 $ 33,213 $ 33,931 $ 34,665 $ 35,412 $ 36,175 $ 36,953 $ 37,747 $ 38,556 $ 39,382 $ 40,224 $ 41,083 $ 41,959 $ 42,853 $ 43,764 $ 920,981 Hackley Library 2.3097 $ - $ 10,136 $ 20,068 $ 20,513 $ 20,967 $ 21,430 $ 21,902 $ 22,384 $ 22,875 $ 23,376 $ 23,887 $ 24,409 $ 24,941 $ 25,483 $ 26,036 $ 26,601 $ 27,176 $ 27,764 $ 28,363 $ 28,973 $ 29,597 $ 30,232 $ 30,881 $ 31,542 $ 32,216 $ 32,904 $ 33,606 $ 34,322 $ 35,052 $ 737,634 MPS Sinking 0.9519 $ - $ 4,177 $ 8,271 $ 8,454 $ 8,641 $ 8,832 $ 9,026 $ 9,225 $ 9,428 $ 9,634 $ 9,845 $ 10,060 $ 10,279 $ 10,502 $ 10,730 $ 10,963 $ 11,200 $ 11,442 $ 11,689 $ 11,941 $ 12,198 $ 12,460 $ 12,727 $ 12,999 $ 13,277 $ 13,561 $ 13,850 $ 14,145 $ 14,446 $ 304,002 County Operating 5.6097 $ - $ 24,618 $ 48,740 $ 49,821 $ 50,923 $ 52,048 $ 53,195 $ 54,364 $ 55,558 $ 56,775 $ 58,017 $ 59,283 $ 60,575 $ 61,892 $ 63,236 $ 64,607 $ 66,005 $ 67,431 $ 68,886 $ 70,370 $ 71,883 $ 73,427 $ 75,001 $ 76,607 $ 78,245 $ 79,916 $ 81,621 $ 83,359 $ 85,132 $ 1,791,534 Local Total 29.3862 $ - $ 128,961 $ 255,321 $ 260,983 $ 266,759 $ 272,649 $ 278,658 $ 284,786 $ 291,038 $ 297,414 $ 303,918 $ 310,551 $ 317,318 $ 324,220 $ 331,260 $ 338,440 $ 345,765 $ 353,235 $ 360,856 $ 368,628 $ 376,556 $ 384,643 $ 392,891 $ 401,304 $ 409,886 $ 418,639 $ 427,567 $ 436,674 $ 445,963 $ 9,384,884 Non-Capturable Millages Millage Rate Comm College Debt 0.2250 $ - $ 987 $ 1,955 $ 1,998 $ 2,042 $ 2,088 $ 2,134 $ 2,181 $ 2,228 $ 2,277 $ 2,327 $ 2,378 $ 2,430 $ 2,482 $ 2,536 $ 2,591 $ 2,647 $ 2,705 $ 2,763 $ 2,822 $ 2,883 $ 2,945 $ 3,008 $ 3,073 $ 3,138 $ 3,205 $ 3,274 $ 3,343 $ 3,415 $ 71,857 MPS Debt 2020 0.8800 $ - $ 3,862 $ 7,646 $ 7,815 $ 7,988 $ 8,165 $ 8,345 $ 8,528 $ 8,715 $ 8,906 $ 9,101 $ 9,300 $ 9,502 $ 9,709 $ 9,920 $ 10,135 $ 10,354 $ 10,578 $ 10,806 $ 11,039 $ 11,276 $ 11,519 $ 11,766 $ 12,017 $ 12,274 $ 12,537 $ 12,804 $ 13,077 $ 13,355 $ 281,040 MPS Debt 2021 6.6200 $ - $ 29,052 $ 57,518 $ 58,793 $ 60,094 $ 61,421 $ 62,775 $ 64,155 $ 65,564 $ 67,000 $ 68,465 $ 69,960 $ 71,484 $ 73,039 $ 74,625 $ 76,242 $ 77,892 $ 79,575 $ 81,292 $ 83,043 $ 84,829 $ 86,651 $ 88,509 $ 90,404 $ 92,337 $ 94,309 $ 96,321 $ 98,372 $ 100,465 $ 2,114,187 Hackley Debt 0.2500 $ - $ 1,097 $ 2,172 $ 2,220 $ 2,269 $ 2,320 $ 2,371 $ 2,423 $ 2,476 $ 2,530 $ 2,586 $ 2,642 $ 2,700 $ 2,758 $ 2,818 $ 2,879 $ 2,942 $ 3,005 $ 3,070 $ 3,136 $ 3,204 $ 3,272 $ 3,342 $ 3,414 $ 3,487 $ 3,562 $ 3,637 $ 3,715 $ 3,794 $ 79,841 Total Non-Capturable Taxes 7.9750 $ - $ 34,998 $ 69,291 $ 70,827 $ 72,395 $ 73,993 $ 75,624 $ 77,287 $ 78,983 $ 80,714 $ 82,479 $ 84,279 $ 86,116 $ 87,989 $ 89,899 $ 91,848 $ 93,836 $ 95,863 $ 97,931 $ 100,040 $ 102,192 $ 104,387 $ 106,625 $ 108,908 $ 111,237 $ 113,613 $ 116,036 $ 118,507 $ 121,028 $ 2,546,925 Total Tax Increment Revenue (TIR) Available for Capture $ - $ 105,324 $ 208,524 $ 213,148 $ 217,864 $ 222,675 $ 227,582 $ 232,588 $ 237,693 $ 242,901 $ 248,212 $ 564,182 $ 576,475 $ 589,013 $ 601,803 $ 614,848 $ 628,154 $ 641,726 $ 655,570 $ 669,690 $ 684,093 $ 698,784 $ 713,769 $ 729,054 $ 744,644 $ 760,546 $ 776,766 $ 793,311 $ 810,186 $ 14,409,125 Footnotes: Local Tax Abatement (10 years): 2026-2035 Page 20 of 139 Table 3: Tax Increment Revenue Reimbursement Allocation Muskegon - Central Park, LLC 1700 Oak Avenue Muskegon, Michigan January 2025 Abatement / Developer Maximum School & Local Proportionality Admin Fees & Total Reimbursement Taxes BRF** Estimated Capture $ 8,801,300 State 45.0% $ 4,948,129 $ 739,751 Estimated Total Administrative Fees $ 674,440 $ 4,948,129 Years of Plan: 28 (Developer capture 23 Local 55.0% $ 3,853,171 $ 3,314,926 $ 3,853,171 years) State Brownfield Redevelopment Fund $ 739,751 Local Brownfield Revolving Fund $ 1,924,857 MSHDA 100.00% $ 8,801,300 $ - $ 8,801,300 $ - Year of Plan 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047 2048 2049 2050 2051 2052 2053 TOTAL Total State Incremental Revenue $ - $ 105,324 $ 208,524 $ 213,148 $ 217,864 $ 222,675 $ 227,582 $ 232,588 $ 237,693 $ 242,901 $ 248,212 $ 253,630 $ 259,157 $ 264,793 $ 270,543 $ 276,408 $ 282,389 $ 288,491 $ 294,714 $ 301,062 $ 307,537 $ 314,142 $ 320,878 $ 327,749 $ 334,758 $ 341,907 $ 349,199 $ 356,636 $ 364,223 $ 7,664,727 State Brownfield Redevelopment Fund (50% of SET) $ - $ (13,165) $ (26,065) $ (26,643) $ (27,233) $ (27,834) $ (28,448) $ (29,073) $ (29,712) $ (30,363) $ (31,027) $ (31,704) $ (32,395) $ (33,099) $ (33,818) $ (34,551) $ (35,299) $ (36,061) $ (36,839) $ (37,633) $ (38,442) $ (39,268) $ (40,110) $ (40,969) $ - $ - $ - $ - $ - $ (739,751) State TIR Available for Reimbursement $ - $ 92,158 $ 182,458 $ 186,504 $ 190,631 $ 194,841 $ 199,135 $ 203,514 $ 207,982 $ 212,538 $ 217,186 $ 221,927 $ 226,762 $ 231,694 $ 236,725 $ 241,857 $ 247,091 $ 252,429 $ 257,875 $ 263,429 $ 269,095 $ 274,874 $ 280,768 $ 286,781 $ 334,758 $ 341,907 $ 349,199 $ 356,636 $ 364,223 $ 6,924,977 Total Local Incremental Revenue $ - $ 128,961 $ 255,321 $ 260,983 $ 266,759 $ 272,649 $ 278,658 $ 284,786 $ 291,038 $ 297,414 $ 303,918 $ 310,551 $ 317,318 $ 324,220 $ 331,260 $ 338,440 $ 345,765 $ 353,235 $ 360,856 $ 368,628 $ 376,556 $ 384,643 $ 392,891 $ 401,304 $ 409,886 $ 418,639 $ 427,567 $ 436,674 $ 445,963 $ 9,384,884 PA 210 Abatement $ - $ (128,961) $ (255,321) $ (260,983) $ (266,759) $ (272,649) $ (278,658) $ (284,786) $ (291,038) $ (297,414) $ (303,918) $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ (2,640,486) Administrative Fees (10%) $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ (31,055) $ (31,732) $ (32,422) $ (33,126) $ (33,844) $ (34,576) $ (35,324) $ (36,086) $ (36,863) $ (37,656) $ (38,464) $ (39,289) $ (40,130) $ (40,989) $ (41,864) $ (42,757) $ (43,667) $ (44,596) $ (674,440) Local TIR Available for Reimbursement $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 279,496 $ 285,586 $ 291,798 $ 298,134 $ 304,596 $ 311,188 $ 317,912 $ 324,770 $ 331,765 $ 338,901 $ 346,179 $ 353,602 $ 361,174 $ 368,897 $ 376,775 $ 384,811 $ 393,007 $ 401,367 $ 6,069,958 Total State & Local TIR Available $ - $ 92,158 $ 182,458 $ 186,504 $ 190,631 $ 194,841 $ 199,135 $ 203,514 $ 207,982 $ 212,538 $ 217,186 $ 501,423 $ 512,348 $ 523,492 $ 534,859 $ 546,453 $ 558,279 $ 570,341 $ 582,645 $ 595,195 $ 607,996 $ 621,052 $ 634,370 $ 647,955 $ 703,655 $ 718,682 $ 734,009 $ 749,643 $ 765,590 $12,229,345 Beginning DEVELOPER Balance DEVELOPER Reimbursement Balance $ 8,801,300 $ 8,801,300 $ 8,801,300 $ 8,709,142 $ 8,526,684 $ 8,340,179 $ 8,149,548 $ 7,954,707 $ 7,755,573 $ 7,552,058 $ 7,344,077 $ 7,131,538 $ 6,914,353 $ 6,412,930 $ 5,900,582 $ 5,377,090 $ 4,842,231 $ 4,295,778 $ 3,737,499 $ 3,167,158 $ 2,584,513 $ 1,989,318 $ 1,381,322 $ 760,270 $ 125,900 $ - $ - $ - $ - $ - MSHDA Eligible Costs $ 8,801,300 $ 8,801,300 $ 8,801,300 $ 8,709,142 $ 8,526,684 $ 8,340,179 $ 8,149,548 $ 7,954,707 $ 7,755,573 $ 7,552,058 $ 7,344,077 $ 7,131,538 $ 6,914,353 $ 6,412,930 $ 5,900,582 $ 5,377,090 $ 4,842,231 $ 4,295,778 $ 3,737,499 $ 3,167,158 $ 2,584,513 $ 1,989,318 $ 1,381,322 $ 760,270 $ 125,900 $ - $ - $ - $ - $ - State Tax Reimbursement $ 4,948,129 $ - $ 92,158 $ 182,458 $ 186,504 $ 190,631 $ 194,841 $ 199,135 $ 203,514 $ 207,982 $ 212,538 $ 217,186 $ 221,927 $ 226,762 $ 231,694 $ 236,725 $ 241,857 $ 247,091 $ 252,429 $ 257,875 $ 263,429 $ 269,095 $ 274,874 $ 280,768 $ 56,655 $ - $ - $ - $ - $ 4,948,129 Local Tax Reimbursement $ 3,853,171 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 279,496 $ 285,586 $ 291,798 $ 298,134 $ 304,596 $ 311,188 $ 317,912 $ 324,770 $ 331,765 $ 338,901 $ 346,179 $ 353,602 $ 69,245 $ - $ - $ - $ - $ - $ 3,853,171 Total MSHDA Reimbursement Balance $ 8,801,300 $ 8,709,142 $ 8,526,684 $ 8,340,179 $ 8,149,548 $ 7,954,707 $ 7,755,573 $ 7,552,058 $ 7,344,077 $ 7,131,538 $ 6,914,353 $ 6,412,930 $ 5,900,582 $ 5,377,090 $ 4,842,231 $ 4,295,778 $ 3,737,499 $ 3,167,158 $ 2,584,513 $ 1,989,318 $ 1,381,322 $ 760,270 $ 125,900 $ - $ - $ - $ - $ - $ - $ 8,801,300 Total Annual Developer Reimbursement $ - $ 92,158 $ 182,458 $ 186,504 $ 190,631 $ 194,841 $ 199,135 $ 203,514 $ 207,982 $ 212,538 $ 217,186 $ 501,423 $ 512,348 $ 523,492 $ 534,859 $ 546,453 $ 558,279 $ 570,341 $ 582,645 $ 595,195 $ 607,996 $ 621,052 $ 634,370 $ 125,900 $ - $ - $ - $ - $ - $ 8,801,300 LOCAL BROWNFIELD REVOLVING FUND LBRF Deposits * $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - State Tax Capture $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Local Tax Capture $ 1,924,857 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 291,929 $ 368,897 $ 376,775 $ 384,811 $ 393,007 $ 109,438 $ 1,924,857 Total LBRF Capture $ 1,924,857 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 291,929 $ 368,897 $ 376,775 $ 384,811 $ 393,007 $ 109,438 $ 1,924,857 * Up to five years of capture for LBRF Deposits after eligible activities are reimbursed. May be taken from EGLE & Local TIR only. Footnotes: PA 210 Tax Abatment (10 years): 2026-2035 ** Not captured by developer but used in porportionality ratio Page 21 of 139 Appendix 1 Page 22 of 139 Page Intentionally Left Blank Brownfield Plan Resolutions Pending Page 23 of 139 Appendix 2 Page 24 of 139 A. OVERALL HOUSING SUPPLY (SECONDARY DATA) This section of area housing supply is based on secondary data sources such as the U.S. Census, American Community Survey and ESRI, and is provided for the Primary Study Area (Muskegon), the Secondary Study Area (Balance of County), the selected submarkets, and the state of Michigan, when applicable. When possible, data from the 2020 Census is used in conjunction with ESRI estimates to provide the most up-to-date data. Note that some small variation of total numbers and percentages within tables may exist due to rounding. Housing Characteristics The estimated distribution of the area housing stock by tenure for each study area for 2022 is summarized in the following table: Occupied and Vacant Housing Units by Tenure 2022 Estimates Total Owner Renter Occupied Occupied Occupied Vacant Total Number 655 596 59 187 842 Beachwood-Bluffton Percent 77.8% 91.0% 9.0% 22.2% 100.0% Campbell Field/ Number 2,615 1,096 1,519 202 2,817 Nims Percent 92.8% 41.9% 58.1% 7.2% 100.0% Number 1,998 1,473 525 133 2,131 Glenside/Lakeside Percent 93.8% 73.7% 26.3% 6.2% 100.0% Number 2,464 738 1,726 204 2,668 Jackson Hill/Marquette Percent 92.4% 30.0% 70.0% 7.6% 100.0% McLaughlin/Angell/ Number 3,017 1,315 1,702 413 3,430 Marsh Field Percent 88.0% 43.6% 56.4% 12.0% 100.0% Number 1,820 590 1,230 244 2,064 Nelson Percent 88.2% 32.4% 67.6% 11.8% 100.0% Steele/Sheldon Park/ Number 2,059 1,317 742 181 2,240 Oakview/East Muskegon Percent 91.9% 64.0% 36.0% 8.1% 100.0% Number 14,628 7,125 7,503 1,564 16,192 Muskegon (PSA) Percent 90.3% 48.7% 51.3% 9.7% 100.0% Number 54,194 44,021 10,173 4,402 58,596 Balance of County (SSA) Percent 92.5% 81.2% 18.8% 7.5% 100.0% Number 68,822 51,146 17,676 5,966 74,788 Muskegon County Percent 92.0% 74.3% 25.7% 8.0% 100.0% Number 4,055,460 2,895,751 1,159,709 533,313 4,588,773 Michigan Percent 88.4% 71.4% 28.6% 11.6% 100.0% Source: 2020 Census; ESRI; Urban Decision Group; Bowen National Research In total, there are an estimated 16,192 housing units within the PSA (Muskegon) in 2022. Based on ESRI estimates and 2020 Census data, of the 14,628 total occupied housing units in the PSA, 48.7% are owner occupied, while the remaining 51.3% are renter occupied. As such, the PSA has a considerably higher share of renter-occupied housing units when compared to the surrounding SSA (18.8%) and state (28.6%). Approximately 9.7% of the housing units within the PSA are classified as vacant, which is comparable to BOWEN NATIONAL RESEARCH VI-2 Page 25 of 139 the SSA (7.5%) and state (11.6%). Vacant units are comprised of a variety of units including abandoned properties, rentals, for-sale, and seasonal housing units. Within the individual submarkets, the submarket with the highest share of owner-occupied units is the Beachwood-Bluffton Submarket, in which 91.0% of units are occupied by homeowners. The Jackson Hill/Marquette Submarket has the highest share of renter-occupied units, with 70.0% of units occupied by renters. The Beachwood-Bluffton Submarket has the highest share (22.2%) of vacant units, which is greatly influenced by the short-term housing market, as evidenced by the fact that over 80% of all vacant units in this submarket are classified as “Seasonal or Recreational” housing. Other submarkets with double-digit vacancy rates are the McLaughlin/Angell/Marsh Field Submarket (12.0%) and the Nelson Submarket (11.8%). These submarkets are also influenced by “Seasonal or Recreational” housing, as 83.9% of the units in the McLaughlin/Angell/Marsh Field Submarket and 50.5% of the vacant units in the Nelson Submarket are “Seasonal or Recreational” housing. These short- term housing alternatives limit the inventory available to more permanent residents. This topic is addressed further later in this section. The following graph compares occupied units by tenure for the various study areas. Households by Tenure (2022) Owner-Occupied Renter-Occupied 100.0% 18.8% 28.6% 80.0% 51.3% 60.0% 40.0% 81.2% 71.4% 20.0% 48.7% 0.0% PSA SSA Michigan The following table compares key housing age and conditions of each study area and the state based on 2016-2020 American Community Survey (ACS) data. Housing units built over 50 years ago (pre-1970), overcrowded housing (1.01+ persons per room), or housing that lacks complete indoor kitchens or bathroom plumbing are illustrated for each study area by tenure. It is important to note that some occupied housing units may have more than one housing issue. BOWEN NATIONAL RESEARCH VI-3 Page 26 of 139 Housing Age and Conditions Pre-1970 Product Overcrowded Incomplete Plumbing or Kitchen Renter Owner Renter Owner Renter Owner Number Percent Number Percent Number Percent Number Percent Number Percent Number Percent Beachwood- Bluffton 16 57.1% 348 67.1% 0 0.0% 0 0.0% 0 0.0% 8 1.6% Campbell Field/Nims 684 58.1% 970 85.3% 37 3.1% 26 2.3% 66 5.6% 16 1.4% Glenside/ Lakeside 460 73.3% 1,091 89.4% 11 1.8% 0 0.0% 0 0.0% 6 0.5% Jackson Hill/ Marquette 529 34.6% 387 50.0% 8 0.5% 0 0.0% 0 0.0% 0 0.0% McLaughlin/ Angell/ Marsh Field 1,134 74.4% 1,236 93.0% 15 1.0% 37 2.8% 32 2.1% 0 0.0% Nelson 711 67.7% 525 86.5% 45 4.3% 10 1.6% 21 2.0% 0 0.0% Steele/Sheldon Park/Oakview/ East Muskegon 702 88.3% 1,108 92.1% 35 4.4% 0 0.0% 44 5.6% 7 0.6% Muskegon (PSA) 4,235 62.9% 5,665 83.4% 151 2.2% 73 1.1% 163 2.4% 37 0.6% Balance of County (SSA) 4,251 47.4% 19,377 44.4% 419 4.7% 565 1.3% 322 3.6% 195 0.4% Muskegon County 8,486 54.0% 25,042 49.7% 570 3.6% 638 1.3% 485 3.1% 232 0.4% Michigan 526,133 46.8% 1,373,485 48.1% 32,741 2.9% 31,181 1.1% 24,3376 2.1% 16,771 0.6% Source: American Community Survey (2016-2020); ESRI; Urban Decision Group; Bowen National Research In the PSA (Muskegon), nearly two-thirds (62.9%) of the renter-occupied housing units and over four-fifths (83.4%) of owner-occupied housing units were built prior to 1970. As such, the housing stock in the PSA appears to be considerably older than the SSA (Balance of County), where only 47.4% of the renter-occupied housing units and 44.4% of the owner-occupied units were built prior to 1970. While the shares of renter households (2.2%) and owner households (1.1%) in the PSA that experience overcrowding are similar to the corresponding shares in the state (2.9% and 1.1%, respectively), the share of overcrowded renter households in the surrounding SSA (4.7%) is much higher than the share in the state (2.9%). While the shares of renter-occupied units (2.4%) and owner-occupied units (0.6%) in the PSA with incomplete plumbing or kitchens are similar to the state’s shares, the share of renter-occupied units (3.6%) in the surrounding SSA with this housing condition is higher than that in the PSA (2.4%) and state (2.1%). The largest number of substandard housing units are within the Campbell Field/Nims submarket, representing over one- third of all substandard housing in the PSA. Overall, the housing inventory in the PSA, regardless of tenure, is comparably older than the surrounding SSA and state. In addition, it appears that renter households in the PSA are more likely to be affected by housing deficiencies compared to homeowners. Regardless, the PSA (Muskegon) has more than 400 households living in overcrowded units and/or units that lack complete plumbing or kitchen facilities. BOWEN NATIONAL RESEARCH VI-4 Page 27 of 139 The following table compares key household income, housing cost, and housing affordability metrics of each study area and the state. It should be noted that cost burdened households pay over 30% of income toward housing costs, while severe cost burdened households pay over 50% of income toward housing. Household Income, Housing Costs and Affordability Estimated Share of Cost Share of Severe Cost Median Median Average Burdened Burdened Household Home Gross Households* Households** Income Value Rent Renter Owner Renter Owner Beachwood-Bluffton $75,000 $245, 192 $509 7.1% 25.2% 7.1% 6.7% Campbell Field/ Nims $39,802 $91,623 $870 54.3% 18.8% 29.0% 7.3% Glenside/Lakeside $51,935 $111,318 $888 32.8% 26.2% 18.0% 8.4% Jackson Hill/ Marquette $31,077 $95,161 $667 40.5% 19.9% 15.7% 5.2% McLaughlin/Angell/ Marsh Field $26,669 $40,288 $690 51.0% 24.2% 31.9% 5.0% Nelson $25,858 $138,318 $687 67.0% 26.8% 28.6% 16.2% Steele/Sheldon Park/ Oakview/ East Muskegon $39,448 $72,638 $890 36.1% 6.2% 23.2% 2.7% Muskegon (PSA) $35,671 $91,085 $756 48.1% 20.2% 24.8% 6.7% Balance of County (SSA) $60,667 $170,568 $841 40.2% 17.4% 16.1% 6.2% Muskegon County $55,010 $160,847 $804 43.6% 17.8% 19.8% 6.3% Michigan $65,507 $204,371 $968 44.9% 18.8% 23.1% 7.4% Source: American Community Survey (2016-2020); ESRI *Paying more than 30% of income toward housing costs **Paying more than 50% of income toward housing costs The median household income of $35,671 within the PSA (Muskegon) is less than the median household incomes for both the SSA ($60,667) and state ($65,507). The estimated median home value in the PSA of $91,085 is substantially lower than the SSA’s ($170,568) and state’s ($204,371) estimated median home values. The average gross rent in the PSA ($756) is lower than both the SSA ($841) and state ($968) average gross rents. Despite the lower gross rents and housing values in the PSA, the PSA has higher shares of housing cost burdened households among its renter households (48.1%) and owner households (20.2%) than the surrounding SSA and state. Overall, the PSA has an estimated 3,233 renter households and 1,374 owner households that are housing cost burdened. With an estimated total of 4,607 cost burdened households in the city of Muskegon, of which 2,124 are severe cost burdened, affordable housing alternatives should be part of future housing solutions. BOWEN NATIONAL RESEARCH VI-5 Page 28 of 139 B. HOUSING SUPPLY ANALYSIS (BOWEN NATIONAL SURVEY) 1. Multifamily Rental Housing Between October of 2022 and January of 2023, Bowen National Research surveyed (both by telephone and in-person) numerous multifamily rental housing projects within the city of Muskegon and all of Muskegon County. While these rentals do not represent all multifamily rental housing projects in the market, they provide significant insight as to the market conditions of commonly offered multifamily rental product. We believe this survey represents a good base from which characteristics and trends of multifamily rental housing can be evaluated and from which conclusions can be drawn. Projects identified, inventoried, and surveyed operate under a number of affordable housing programs including the Low-Income Housing Tax Credit (LIHTC), HUD Sections 8 and 202 and Public Housing programs, as well as market-rate. Definitions of each housing program are included in Addendum G: Glossary. Managers and leasing agents at each project were surveyed to collect a variety of property information including vacancies, rental rates, design characteristics, amenities, utility responsibility, and other features. Each project was also rated based on quality and upkeep. Each surveyed property was photographed and mapped as part of this survey. Data collected during our survey is presented in aggregate format for the various study areas. We identified and personally surveyed 51 multifamily apartment properties containing a total of 5,813 units within Muskegon County. Of these projects, 22 were in the PSA (Muskegon) with an overall total of 2,710 units. The remaining 29 surveyed projects in the surrounding SSA (Balance of Muskegon County) were used to provide a base of comparison. The survey was conducted to establish the overall strength of the local rental market and to identify potential housing needs in the subject market. The surveyed rentals within the PSA have a combined occupancy rate of 98.9%, an extremely high rate for multifamily rental housing. Typically, healthy, well-balanced markets have rental housing occupancy rates generally between 94% and 96%. As such, the PSA’s multifamily rental market is operating at an exceedingly high occupancy level with very limited availability. Compounding the market’s rental challenges is the fact that the surrounding SSA (Balance of Muskegon County) is operating at an even higher occupancy rate of 99.2%. As such, vacancies in the overall county are very limited. It should be noted that this survey only includes physical vacancies (vacant units ready for immediate occupancy) as opposed to economic vacancies (vacant units not immediately available for rent). BOWEN NATIONAL RESEARCH VI-6 Page 29 of 139 The following table summarizes the surveyed multifamily rental supply. Multifamily Supply by Product Type Projects Occupancy Project Type Surveyed Total Units Vacant Units Rate PSA (Muskegon) Market-Rate 9 1,453 25 98.3% Market-Rate/Tax Credit 4 356 5 98.6% Market-Rate/Government-Subsidized 1 124 0 100.0% Tax Credit 3 151 0 100.0% Government-Subsidized 5 626 0 100.0% Total 22 2,710 30 98.9% SSA (Balance of County) Market-Rate 15 2,081 25 98.8% Market-Rate/Government-Subsidized 1 172 0 100.0% Tax Credit 2 184 0 100.0% Tax Credit/Government-Subsidized 3 129 0 100.0% Market-Rate/Tax Credit/Government-Subsidized 1 84 0 100.0% Government-Subsidized 7 453 0 100.0% Total 29 3,103 25 99.2% Overall, demand for multifamily rental housing in the PSA is very strong, as there does not appear to be many vacancies, regardless of the program type (e.g., market-rate, Tax Credit, government subsidized or some combination of these program types). All 30 vacancies in the PSA are among unrestricted market-rate units. All Tax Credit and government- subsidized units are occupied. As illustrated in the preceding table, the distribution of vacancies in the surrounding SSA mirror the PSA, as all 25 vacancies are among market-rate units. Despite these vacancies, the market- rate inventory in both the PSA and SSA are operating at very high occupancy levels. Therefore, demand for rental housing is strong even among non-assisted housing. Based on this survey of rental housing, there does not appear to be any weakness or softness among multifamily rentals in the county. As such, there appears to be a development opportunity for a variety of rental products, particularly for affordable rentals. BOWEN NATIONAL RESEARCH VI-7 Page 30 of 139 The following table summarizes the surveyed multifamily rental housing for each of the study areas, including the seven submarkets in the PSA (Muskegon). Overall Market Performance by Area East Muskegon Park/Oakview/ Steele/Sheldon Jackson Hill/ McLaughlin/ Marsh Field Beachwood- Field/Nims Marquette Campbell Glenside/ Lakeside Bluffton Angell/ Nelson Balance of Muskegon County Data Set (PSA ) (SSA) Projects - 6 - 8 2 5 1 22 29 Total Units - 598 - 1,537 360 155 60 2,710 3,103 Vacant Units - 5 - 19 0 6 0 30 25 Occupancy Rate - 99.2% - 98.8% 100.0% 96.1% 100.0% 98.9% 99.2% As previously stated, healthy, well-balanced rental housing markets have occupancy levels generally between 94% and 96%. Typically, a market occupancy level over 97% is an indication of a possible housing shortage, which can lead to housing problems such as unusually rapid rent increases, people forced to live in substandard housing, households living in rent overburdened situations, and residents leaving the area to seek housing elsewhere. Conversely, occupancy rates below 94% may indicate some softness or weakness in a market, which may be the result of a saturated or overbuilt market, or one that is going through a decline due to economic downturns and corresponding demographic declines. With an overall occupancy rate of 98.9%, the PSA (Muskegon) multifamily rental housing market appears to have an insufficient number of vacancies. This overall occupancy rate is slightly lower than the 99.2% occupancy rate in the SSA (Balance of County). Two of the seven submarkets are operating at 100% occupancy levels and a third submarket (Campbell Field/Nims) is operating at a 99.2% occupancy level. The lowest occupancy rate of 96.1% in the Nelson Submarket is still considered high and reflective of a market lacking sufficient rental housing. With only 30 vacant units identified among the 2,710 apartment units included in the survey, the PSA has a very small base of potential rental alternatives from which prospective renters can choose. BOWEN NATIONAL RESEARCH VI-8 Page 31 of 139 The following table illustrates the distribution of units and occupancy levels by the different housing programs in each study area. It should be noted that the total number of projects shown in this table does not match the totals from other portions of this section, as some projects operate under multiple program types and were counted multiple times in the table below. Overall Market Performance by Program Type by Area East Muskegon Park/Oakview/ Steele/Sheldon Jackson Hill/ McLaughlin/ Marsh Field Beachwood Field/Nims Marquette Campbell Glenside/ Lakeside Bluffton Angell/ Nelson Balance of Muskegon County Data Set (PSA ) (SSA) Market-Rate Projects - 3 - 6 - 4 1 14 17 Total Units - 304 - 1,298 - 59 30 1,691 2,113 Vacant Units - 5 - 19 - 6 0 30 25 Occupancy Rate - 98.4% - 98.5% - 89.8% 100.0% 98.2% 98.8% Tax Credit (Non-Subsidized) Projects - 3 - 1 - 2 1 7 6 Total Units - 208 - 53* - 96 30 334 272 Vacant Units - 0 - - - 0 0 0 0 Occupancy Rate - 100.0% - - - 100.0% 100.0% 100.0% 100.0% Government Subsidized Projects - 2 - 2 2 - - 6 12 Total Units - 86 - 239 360 - - 685 718 Vacant Units - 0 - 0 0 - - 0 0 Occupancy Rate - 100.0% - 100.0% 100.0% - - 100.0% 100.0% *Units under construction (not included in total) With only one exception, the occupancy levels by program type by submarket are extremely high, operating at occupancy rates of 98.4% or higher. The lone exception is within the Nelson Submarket, among its market-rate supply which is operating at an 89.8% occupancy rate. This is the result of just six vacant units among the 59 market-rate units in this submarket. Regardless of submarket, all affordable rental options operating under Tax Credit or government-subsidized programs are occupied. This is also true for the surrounding SSA (Balance of Muskegon County). BOWEN NATIONAL RESEARCH VI-9 Page 32 of 139 The following table summarizes the number of properties that maintain wait lists, and the length of their wait lists, within each of the PSA’s established submarkets. Note that some wait lists may be representative of people on multiple wait lists. Property Wait List Information by Property Type MRR GSS TAX MRT MRG Beachwood-Bluffton No Properties Surveyed Campbell Field/Nims Properties w/ Wait List 1 1 1 2 - Total Properties 1 2 1 2 - Share of Properties 100.0% 50.0% 100.0% 100.0% - # Households - 23 - 30 - # Months 2-3 - 6 6-12 - Glenside/Lakeside No Properties Surveyed Jackson Hill/Marquette Properties w/ Wait List 2 1 U/C - 1 Total Properties 5 1 1 - 1 Share of Properties 40.0% 100.0% - - 100.0% # Households 3 - - - - # Months 2-6 6 - - 6 McLaughlin/Angell/Marsh Field Properties w/ Wait List - 2 - - - Total Properties - 2 - - - Share of Properties - 100.0% - - - # Households - 55 - - - # Months - 1 - - - Nelson Properties w/ Wait List 1 - 1 0 - Total Properties 3 - 1 1 - Share of Properties 33.3% - 100.0% - - # Households 12 - - - - # Months - - 6 - - Steele/Sheldon Park/Oakview/East Muskegon Properties w/ Wait List - - - 1 - Total Properties - - - 1 - Share of Properties - - - 100.0% - # Households - - - 75 - # Months - - - - - MRR (market-rate), GSS (subsidized), TAX (Tax Credit), MRT=MRR+TAX, MRG=MRR+GSS U/C – Property is Under Construction and not yet leasing. Of the 22 properties surveyed within the PSA, 14 (63.6%) maintain wait lists. The wait lists exist among all housing program types, with wait lists maintained at four of the nine projects operating exclusively as market-rate product, four of five projects operating exclusively under a government- subsidized program, and two of three operating exclusively under the Tax Credit program. The greatest number of households on wait lists appear to be among the mixed-income market-rate and Tax Credit supply (denoted as MRT) with 105 households waiting for a unit and among the government- BOWEN NATIONAL RESEARCH VI-10 Page 33 of 139 subsidized supply (denoted as GSS) with a total of 78 households on a wait list. Many other product types reported their wait lists in terms of the number of months people have to wait for a unit, most of which ranges from six to twelve months in duration. Regardless, the relatively large shares of properties with wait lists and the length or duration of such lists indicate a very strong level of pent-up demand for rental housing in in the PSA. The following graph illustrates the occupancy rates and total vacancies by the seven submarkets, the PSA, and the SSA. Multifamily Rental Occupancy Rates/Vacancies by Market 100.0% 35 99.2% 98.8% 100.0% 100.0% 98.9% 99.2% 96.1% 30 80.0% 25 60.0% 20 40.0% 30 15 25 19 10 20.0% 5 0.0% N/A 5 0.0% N/A 0 6 0 0.0% 0 BW/BL C/F/M GL/LK JH/MQ MCL/A/ NEL ST/SP/ PSA SSA MF OVE/EM The remainder of the multifamily apartment analysis is broken out by product type (e.g., market-rate, Tax Credit, and government subsidized) for the PSA (Muskegon) versus the SSA (Balance of County) on the following pages. BOWEN NATIONAL RESEARCH VI-11 Page 34 of 139 Market-Rate Housing A total of 14 multifamily projects with at least some market-rate units were surveyed in the PSA. Overall, these properties contain 1,691 market-rate units. The following table summarizes the units by bedroom/bathroom type. Market-Rate Multifamily Rentals by Bedroom/Bathroom Median Collected Bedroom Baths Units Distribution Vacancy % Vacant Rent PSA (Muskegon) Studio 1.0 16 0.9% 1 6.3% $828 One-Bedroom 1.0 785 46.4% 9 1.1% $695 One-Bedroom 1.5 3 0.2% 2 66.7% $1,625 Two-Bedroom 1.0 566 33.5% 10 1.8% $878 Two-Bedroom 1.5 42 2.5% 0 0.0% $975 Two-Bedroom 2.0 129 7.6% 4 3.1% $1,435 Three-Bedroom 1.0 24 1.4% 2 8.3% $1,175 Three-Bedroom 1.5 53 3.1% 0 0.0% $1,066 Three-Bedroom 2.0 55 3.3% 0 0.0% $1,320 Four-Bedroom 1.5 18 1.1% 2 11.1% $1,300 Total Market-Rate 1,691 100.0% 30 1.8% - SSA (Balance of County) Studio 1.0 118 5.6% 3 2.5% $800 One-Bedroom 1.0 660 31.2% 6 0.9% $1,050 Two-Bedroom 1.0 452 21.4% 2 0.4% $1,040 Two-Bedroom 1.5 126 6.0% 1 0.8% $1,281 Two-Bedroom 2.0 570 27.0% 7 1.2% $1,495 Three-Bedroom 1.0 3 0.1% 0 0.0% $1,295 Three-Bedroom 1.5 58 2.7% 1 1.7% $1,300 Three-Bedroom 2.0 126 6.0% 5 4.0% $1,510 Total Market-Rate 2,113 100.0% 25 1.2% - The market-rate units in the PSA (Muskegon) are 98.2% occupied and such units in the surrounding SSA (Balance of County) are 98.8% occupied, which are very high occupancy rates for market-rate rentals. PSA vacancy rates by bedroom and bathroom type are low among most unit types, particularly among the most common bedroom types including one- bedroom/one-bathroom units (1.1% vacant), two-bedroom/one-bathroom units (1.8% vacant) and two-bedroom/two-bathroom units (3.1% vacant). Median collected rents for these same common unit types are $695 for a one-bedroom/one-bathroom unit, $878 for a two-bedroom/one-bathroom unit, and $1,435 for a two-bedroom/two-bathroom unit. It is worth pointing out that the rent premium for the two-bedroom/two-bathroom units appears to be attributed to the fact that many of these particular units are more modern or recently remodeled and often offer heavily amenitized product. While a majority of market-rate rentals in the PSA have rents of $878 and higher and would require a minimum annual household income of $35,000, approximately 4,700 renter households representing nearly 70% of the renters in the market would not be able to afford the typical rent in this market. BOWEN NATIONAL RESEARCH VI-12 Page 35 of 139 The following graph illustrates median market-rate rents among common bedroom types offered in the PSA and SSA. Market-Rate Median Collected Rents PSA SSA $1,600 $1,400 $1,495 $1,510 $1,435 $1,200 $1,320 $1,000 $1,050 $1,040 $800 $878 $600 $695 $400 $200 $0 1-Br/1.0-Ba 2-Br/1.0-Ba 2-Br/2.0-Ba 3-Br/2.0-Ba The following is a distribution of market-rate product surveyed by year built for the PSA and SSA: Market-Rate Apartments by Year Built PSA (Muskegon) SSA (Balance of County) Vacancy Vacancy Year Built Projects Units Rate Projects Units Rate Before 1970 2 152 2.6% 3 246 1.2% 1970 to 1979 5 1,282 1.2% 5 935 0.7% 1980 to 1989 0 0 0.0% 0 0 0.0% 1990 to 1999 1 30 0.0% 1 112 0.0% 2000 to 2005 2 142 3.5% 4 490 2.9% 2006 to 2010 2 47 0.0% 1 51 0.0% 2011 to 2022* 2 38 13.2% 3 279 0.4% *As of December Most of the surveyed market-rate product in the PSA was built between 1970 and 1979, with the 1,282 units developed during this time representing 75.8% of the surveyed market-rate product. The vacancy rate of market- rate product by development period in the PSA is low among all periods except for the product built since 2011. Within the product built since 2011, there are only five vacant units resulting in the higher than typical vacancy rate. As a result, vacancies are low regardless of the age of product in the PSA. BOWEN NATIONAL RESEARCH VI-13 Page 36 of 139 The distribution of surveyed market-rate units in the PSA and SSA by development period is shown in the following graph. Market-Rate Units by Year Built PSA SSA 1,400 1,200 1,282 1,000 800 935 600 400 246 279 152 112 142 490 200 0 0 30 47 51 38 0 Before 1970 1970-79 1980-89 1990-99 2000-05 2006-10 2011 to present *As of December Representatives of Bowen National Research personally visited the surveyed rental projects within the overall county and rated the exterior quality of each property on a scale of "A" (highest) through "F" (lowest). All properties were rated based on quality and overall appearance (i.e., aesthetic appeal, building appearance, landscaping and grounds appearance). The following is a distribution of the surveyed market-rate supply by quality rating. Market-Rate Multifamily Rental Housing by Quality Level Quality Total Vacancy One- Two- Three- Four+- Rating Projects Units Rate Studio Br. Br. Br. Br. Market-Rate Properties Median Collected Rent PSA (Muskegon) A 3 170 4.7% $1,020 $1,530 $1,605 $1,750 - B+ 1 20 5.0% $750 $900 $1,000 - - B 6 921 0.5% - $695 $878 $1,300 - B- 4 580 2.8% - $750 $915 $1,040 $1,300 SSA (Balance of County) A 1 217 0.0% - $1,495 $1,675 - - B+ 3 150 4.0% - $1,350 $1,262 $1,387 - B 7 1,119 1.3% - $1,120 $1,281 $1,510 - B- 4 519 0.4% $650 $835 $950 $1,400 - C+ 2 108 2.8% $800 $750 $1,050 $1,295 - The vast majority (90.0%) of the surveyed market-rate supply in the PSA consists of product in the “B” range of quality levels, with the remaining product consisting of “A” quality product. Vacancies are generally low among all quality levels. Interestingly, the lowest quality projects with “B” or “B-” ratings have the lowest vacancy rates of 0.5% and 2.8%, respectively. As a result, it is clear that lower quality product is still in high BOWEN NATIONAL RESEARCH VI-14 Page 37 of 139 demand. It is worth pointing out that there is a clear rent premium being achieved among higher-end quality product. This demonstrates that better quality product can achieve a rent premium and still operate at a high level of demand. Tax Credit Housing Tax Credit housing is developed under the Low-Income Housing Tax Credit (LIHTC) program. Typically, these projects serve households with incomes of up to 60% of Area Median Household Income (AMHI), though legislation in 2017 now allows for some units to target households with incomes of up to 80% of AMHI. A total of seven surveyed multifamily projects in the PSA (Muskegon) offer a total of 334 Low-Income Housing Tax Credit (LIHTC or Tax Credit) units. Some of the supply operates as mixed-income properties with market-rate units. It is worth noting that approximately one-third of the surveyed LIHTC units are age-restricted to households ages 55 and older. This share is generally in line with the local household base by age cohort. This section focuses only on the non- subsidized Tax Credit units, while the Tax Credit units operating with concurrent subsidies are discussed in the government-subsidized section of this report (starting on page VI-18). The following table summarizes the non-subsidized Tax Credit units surveyed by bedroom/bathroom type within the PSA and SSA. Tax Credit (Non-Subsidized) Multifamily Rentals by Bedroom/Bathroom Median Collected Bedroom Baths Units Distribution Vacancy % Vacant Rent PSA (Muskegon) One-Bedroom 1.0 142 42.5% 0 0.0% $787 Two-Bedroom 1.0 20 6.0% 0 0.0% $770 Two-Bedroom 1.5 42 12.6% 0 0.0% $708 Two-Bedroom 2.0 74 22.2% 0 0.0% $953 Three-Bedroom 2.0 56 16.8% 0 0.0% $791 Total Tax Credit 334 100.0% 0 0.0% - SSA (Balance of County) One-Bedroom 1.0 118 43.4% 0 0.0% $690 Two-Bedroom 1.0 49 18.0% 0 0.0% $790 Two-Bedroom 2.0 40 14.7% 0 0.0% $875 Two-Bedroom 2.5 40 14.7% 0 0.0% $875 Three-Bedroom 2.0 10 3.7% 0 0.0% $925 Three-Bedroom 2.5 15 5.5% 0 0.0% $925 Total Tax Credit 272 100.0% 0 0.0% - The non-subsidized Tax Credit units are 100.0% occupied within the PSA, as are the Tax Credit units in the SSA, which is evidence of the local market’s strong demand for affordable rental housing. Five of the seven Tax Credit projects maintain a wait list, with over 100 combined households on wait lists. BOWEN NATIONAL RESEARCH VI-15 Page 38 of 139 The 334 Tax Credit units in the PSA consist of a broad mix of unit types. While the largest share (42.5%) of units consists of one-bedroom units, a notable share (40.8%) consists of two-bedroom units and 16.8% consists of three-bedroom units. The distribution of Tax Credit units by bedroom type in the PSA is similar to other well-balanced markets. Within the PSA, the LIHTC units have median rents ranging from $708 to no more than $953, which are generally higher than most of the median rents of corresponding bedroom/bathroom units in the SSA. Regardless, the median rents of the Tax Credit supply in both the PSA and SSA are well below the median rents of the market-rate multifamily supply. As such, Tax Credit housing is a value in the market, which is likely contributing to its strong level of demand. The following graph illustrates median Tax Credit rents among common bedroom types offered in the PSA and SSA. Tax Credit Median Collected Rents PSA SSA $1,000 $953 $925 $800 $875 $787 $770 $790 $791 $600 $690 $400 $200 $0 1-Br/1.0-Ba 2-Br/1.0-Ba 2-Br/2.0-Ba 3-Br/2.0-Ba BOWEN NATIONAL RESEARCH VI-16 Page 39 of 139 The following is a distribution of Tax Credit product surveyed by year built for the PSA and SSA (Note: The Tax Credit program started in 1986): Tax Credit (Non-Subsidized) Apartments by Year Built PSA (Muskegon) SSA (Balance of County) Vacancy Vacancy Year Built Projects Units Rate Projects Units Rate Before 1990 0 0 0.0% 0 0 0.0% 1990 to 1999 2 108 0.0% 0 0 0.0% 2000 to 2005 2 130 0.0% 2 184 0.0% 2006 to 2010 1 23 0.0% 0 0 0.0% 2011 to 2022* 2 73 0.0% 2 88 0.0% *As of December Most of the surveyed Tax Credit product in the PSA was built between 1990 and 2005, with nearly three-quarters (71.3%) of all product developed during this time. Only 73 Tax Credit units were built in the PSA since 2011, though an additional 53 units are under construction and are expected to open in 2023. The distribution of Tax Credit units in the PSA and SSA by year built is shown in the following graph: Tax Credit Units by Year Built PSA SSA 200 184 150 130 100 108 88 50 73 23 0 0 0 0 0 Before 1990 1990-99 2000-05 2006-10 2011 to present *Through December BOWEN NATIONAL RESEARCH VI-17 Page 40 of 139 Representatives of Bowen National Research personally visited the surveyed rental projects within the market and rated the exterior quality of each property on a scale of "A" (highest) through "F" (lowest). All properties were rated based on quality and overall appearance (i.e., aesthetic appeal, building appearance, landscaping and grounds appearance). The following is a distribution of the Tax Credit properties by quality rating. Tax Credit (Non-Subsidized) by Quality Rating Quality Rating Projects Total Units Vacancy Rate PSA (Muskegon) B+ 2 73 0.0% B 4 231 0.0% B- 1 30 0.0% SSA (Balance of County) B+ 1 62 0.0% B 3 210 0.0% All of the surveyed Tax Credit projects have a quality rating of B- or better, with most product rated a “B.” Regardless of the quality of housing, all Tax Credit product is operating at full occupancy. This demonstrates the level of need for affordable housing alternatives in the market. Government-Subsidized Housing There was a total of six projects surveyed within PSA that offer at least some units that operate with a government subsidy. Government- subsidized housing typically requires residents to pay 30% of their adjusted gross income toward rent and generally qualifies households with incomes of up to 50% of Area Median Household Income (AMHI). The six projects with a subsidy include 685 units. BOWEN NATIONAL RESEARCH VI-18 Page 41 of 139 The government-subsidized units surveyed within the PSA and SSA are summarized as follows. Subsidized by Bedroom/Bathroom Bedroom Baths Units Distribution Vacancy % Vacant PSA (Muskegon) Government-Subsidized One-Bedroom 1.0 625 91.2% 0 0.0% Two-Bedroom 1.0 53 7.7% 0 0.0% Two-Bedroom 1.5 7 1.0% 0 0.0% Total Subsidized 685 100.0% 0 0.0% SSA (Balance of County) Subsidized Tax Credit One-Bedroom 1.0 58 61.7% 0 0.0% Two-Bedroom 1.0 32 34.0% 0 0.0% Three-Bedroom 1.0 4 4.3% 0 0.0% Total Subsidized Tax Credit 94 100.0% 0 0.0% Government-Subsidized Studio 1.0 42 6.7% 0 0.0% One-Bedroom 1.0 311 49.8% 0 0.0% Two-Bedroom 1.0 205 32.9% 0 0.0% Three-Bedroom 1.0 25 4.0% 0 0.0% Three-Bedroom 1.5 34 5.4% 0 0.0% Four-Bedroom 1.0 7 1.1% 0 0.0% Total Subsidized 624 100.0% 0 0.0% In the PSA, the subsidized Tax Credit units are 100.0% occupied. Given that most subsidized projects have long wait lists, very low-income renter households (making 50% or less of Area Median Household Income) have limited options available and likely must choose from either the non- subsidized multifamily housing options or non-conventional housing options, such as single-family homes and duplexes, or even mobile homes. Based on this analysis, it is clear that there is pent-up demand for subsidized housing in the county. BOWEN NATIONAL RESEARCH VI-19 Page 42 of 139 The following is a distribution of government-subsidized product surveyed by year built for the PSA and SSA: Government-Subsidized by Year Built PSA (Muskegon) SSA (Balance of County) Vacancy Vacancy Year Built Projects Units Rate Projects Units Rate Before 1970 0 0 0.0% 0 0 0.0% 1970 to 1979 3 399 0.0% 3 317 0.0% 1980 to 1989 2 270 0.0% 5 289 0.0% 1990 to 1999 1 16 0.0% 1 25 0.0% 2000 to 2005 0 0 0.0% 0 0 0.0% 2006 to 2010 0 0 0.0% 0 0 0.0% 2011 to 2022* 0 0 0.0% 3 87 0.0% *As of December The development of government-subsidized product in the PSA primarily occurred prior to 1990, with virtually all (over 97%) of the units built during this time. Of the surveyed properties, no subsidized units have been added to the market over the past twenty years. Government Subsidized Units by Year Built PSA SSA 400 399 350 300 317 250 289 270 200 150 100 50 25 87 16 0 0 0 0 0 0 0 0 Before 1970 1970-79 1980-89 1990-99 2000-05 2006-10 2011 to present *As of December Representatives of Bowen National Research personally visited the surveyed rental projects within the county and rated the exterior quality of each property on a scale of "A" (highest) through "F" (lowest). All properties were rated based on quality and overall appearance (i.e., aesthetic appeal, building appearance, landscaping and grounds appearance). The following is a distribution of the subsidized housing supply by quality rating. BOWEN NATIONAL RESEARCH VI-20 Page 43 of 139 Government-Subsidized by Quality Ratings PSA (Muskegon) SSA (Balance of County) Quality Vacancy Vacancy Rating Projects Units Rate Projects Units Rate B+ - - - 1 15 0.0% B 1 59 0.0% 5 223 0.0% B- 2 250 0.0% 2 189 0.0% C+ 2 176 0.0% 4 291 0.0% C 1 200 0.0% - - - Most of the subsidized product in the PSA is considered to have a quality rating of “B-.” However, there are a few hundred units rated “C+” or lower, indicating that lower quality product exists in the market. We also evaluated the potential number of existing subsidized affordable housing units that are at risk of losing their affordable status. A total of 12 properties in the PSA (Muskegon) operate as subsidized projects under a current HUD contract. Because these contracts have a designated renewal date, it is important to understand if these projects are at risk of an expiring contract in the near future that could result in the reduction of affordable rental housing stock (Note: Properties with HUD contract renewal or expiration dates within five years are shown in red). Expiring HUD Contracts - Muskegon, Michigan Total Assisted Expiration Program Target Property Name Units Units Date Type Population Barclay Senior Village 70 70 1/13/2035 Sec 8 NC Senior Bayview Tower 200 200 6/30/2033 HFDA/8 NC Senior Carriage House 124 59 11/30/2035 LMSA Family Hickory Village Apartments 180 180 2/29/2032 LMSA Senior Park Woods Apartments 100 100 10/31/2024 Sec 8 NC Family & Senior Pioneer Arbour 16 16 5/6/2031 202/8 NC Disabled Pioneer House-Ucpa 13 12 9/30/2022 202/8 NC Disabled Woodside Haven 46 45 9/30/2023 PRAC/202 Senior Christian Manor 42 42 7/24/2033 202/8 NC Family Whispering Timbers 18 18 6/30/2023 PRAC/811 Disabled Quail Meadows Apartments 120 120 9/29/2041 HFDA/8 NC Family Ten21 Apartments 62 11 7/31/2041 811 PRA DEMO Family Source: HUDUser.gov Assistance & Section 8 Contracts Database (Updated 12.30.22); Bowen National Research While all HUD supported projects are subject to annual appropriations by the federal government, it appears that there are four projects in the city that have overall renewal dates within the past year or within the next two years and are at potential risk of losing their government assistance in the near future. Given the high occupancy rates and wait lists among the market’s surveyed subsidized properties, it will be important for the area’s low- income residents that the projects with pending expiring HUD contracts be preserved in order to continue to house some of the market’s most economically vulnerable residents. BOWEN NATIONAL RESEARCH VI-21 Page 44 of 139 According to a representative with the Muskegon Housing Commission, there are approximately 180 Housing Choice Vouchers issued within the housing authority’s jurisdiction. Housing authority representatives indicated that over the past four years, between 37% and 60% of issued vouchers are returned annually due to the inability of voucher holders to find available housing or properties that would accept vouchers. The waiting list is closed, and it is unknown when the waiting list will reopen. This reflects the continuing need for affordable housing alternatives and/or Housing Choice Voucher assistance. Maps illustrating the location of all multifamily apartments surveyed within the market are included on the following pages. BOWEN NATIONAL RESEARCH VI-22 Page 45 of 139 Housing Gap Estimates The PSA has an overall housing gap of 2,924 units for rental and for-sale product at a variety of affordability levels - It is projected that the city has a five- year rental housing gap of 1,611 units and a for-sale housing gap of 1,313 units. While there are housing gaps among all affordability levels of both rental and for- sale product, the rental housing gap is distributed most heavily among the lower priced product (rents of $1,430 or less) and the for-sale housing gap is primarily for product priced at $190,668 or higher. Details of this analysis, including our methodology and assumptions, are included in Section VIII. The following table summarizes the approximate potential number of new residential units that could be supported in the PSA (Muskegon) over the next five years. PSA (Muskegon) Housing Gap Estimates (2022 to 2027) – Number of Units Needed Housing Segment Number of Units Extremely Low-Income Rental Housing (<$536/Month Rent) 385 Very Low-Income Rental Housing ($537-$894/Month Rent) 321 Rentals Low-Income Rental Housing ($895-$1,430/Month Rent) 403 Moderate-Income Rental Housing ($1,431-$2,145/Month Rent) 295 High-Income Market-Rate Rental Housing ($2,146+/Month Rent) 207 TOTAL UNITS 1,611 Entry-Level For-Sale Homes (<$71,500 Price Point) 238 Very Low-Income For-Sale Homes ($71,501-$119,167) 176 For-Sale Low-Income For-Sale Homes ($119,168-$190,667 Price Point) 164 Moderate-Income For-Sale Homes ($190,668-$286,000 Price Point) 413 High-Income Upscale For-Sale Housing ($286,001+ Price Point) 322 TOTAL UNITS 1,313 The preceding estimates are based on current government policies and incentives, recent and projected demographic trends, current and anticipated economic trends, and available and planned residential units. Numerous factors impact a market’s ability to support new housing product. This is particularly true of individual housing projects or units. Certain design elements, pricing structures, target market segments (e.g., seniors, workforce, families, etc.), product quality and location all influence the actual number of units that can be supported. Demand estimates could exceed those shown in the preceding table if the community changes policies or offers incentives to encourage people to move into the market or for developers to develop new housing product. BOWEN NATIONAL RESEARCH II-16 Page 46 of 139 Appendix 3 Page 47 of 139 Housing TIF Financing Gap Calculation - Multifamily Rental (1700 Oak Drive, Muskegon, Michigan) BF Plan # of Years: 23 FORMULA Location Type AMI (Based on Project Rents) Control Rent - Project Rent = PRL x No. of Units x No. of Months x No. of Years = PRL GAP CAP Per Unit FMR Muskegon Co. 1 Bedroom 75% $ 2,198.00 - $ 1,125.00 = $ 1,073.00 x 3 x 12 x 23 = $ 888,444.00 $ 296,148.00 FMR Muskegon Co. 1 Bedroom 76% $ 2,198.00 - $ 1,135.00 = $ 1,063.00 x 1 x 12 x 23 = $ 293,388.00 $ 293,388.00 FMR Muskegon Co. 1 Bedroom 77% $ 2,198.00 - $ 1,145.00 = $ 1,053.00 x 3 x 12 x 23 = $ 871,884.00 $ 290,628.00 FMR Muskegon Co. 1 Bedroom 77% $ 2,198.00 - $ 1,155.00 = $ 1,043.00 x 3 x 12 x 23 = $ 863,604.00 $ 287,868.00 FMR Muskegon Co. 1 Bedroom 78% $ 2,198.00 - $ 1,165.00 = $ 1,033.00 x 3 x 12 x 23 = $ 855,324.00 $ 285,108.00 FMR Muskegon Co. 2 Bedroom 69% $ 2,883.00 - $ 1,240.00 = $ 1,643.00 x 3 x 12 x 23 = $ 1,360,404.00 $ 453,468.00 FMR Muskegon Co. 2 Bedroom 70% $ 2,883.00 - $ 1,250.00 = $ 1,633.00 x 3 x 12 x 23 = $ 1,352,124.00 $ 450,708.00 FMR Muskegon Co. 2 Bedroom 73% $ 2,883.00 - $ 1,300.00 = $ 1,583.00 x 1 x 12 x 23 = $ 436,908.00 $ 436,908.00 FMR Muskegon Co. 2 Bedroom 74% $ 2,883.00 - $ 1,320.00 = $ 1,563.00 x 2 x 12 x 23 = $ 862,776.00 $ 431,388.00 FMR Muskegon Co. 2 Bedroom 74% $ 2,883.00 - $ 1,330.00 = $ 1,553.00 x 1 x 12 x 23 = $ 428,628.00 $ 428,628.00 FMR Muskegon Co. 2 Bedroom 75% $ 2,883.00 - $ 1,350.00 = $ 1,533.00 x 3 x 12 x 23 = $ 1,269,324.00 $ 423,108.00 FMR Muskegon Co. 3 Bedroom 72% $ 3,520.00 - $ 1,500.00 = $ 2,020.00 x 1 x 12 x 23 = $ 557,520.00 $ 557,520.00 FMR Muskegon Co. 3 Bedroom 73% $ 3,520.00 - $ 1,515.00 = $ 2,005.00 x 2 x 12 x 23 = $ 1,106,760.00 $ 553,380.00 FMR Muskegon Co. 3 Bedroom 74% $ 3,520.00 - $ 1,530.00 = $ 1,990.00 x 1 x 12 x 23 = $ 549,240.00 $ 549,240.00 TOTAL Housing Subsidy 30 $ 11,696,328.00 $ 5,441,340.00 Approved BRA TIF Request $ 3,500,000.00 $ 129,629.63 $ (8,196,328.00) $ (5,311,710.37) Page 48 of 139 Appendix 4 Page 49 of 139 Page Intentionally Left Blank Development and Reimbursement Agreement Pending Page 50 of 139 March ‘17 City of Muskegon Brownfield Redevelopment Authority Application for Inclusion in the Muskegon Brownfield Plan This application requests information that may be utilized to amend the “City of Muskegon Brownfield Redevelopment Authority Brownfield Plan”, as originally approved by the City Commission of the City of Muskegon on April 14, 1998. Please complete the information requested below and return to the Planning Department, City of Muskegon. In order to process the application, a fee of $5,000 is required. Applicant Information Krimson Exploratory Fund, LLC Company Name (Developer/Business): Contact Person and Title: Steve Calverley Contact Person Mailing Address: 1575 Watertower Place, East Lansing, 48823 517-333-9622 517-333-9622 Contact Person’s Phone Number: Fax No. Steve@krimson.com Contact Person’s E-Mail Address: Project Information 1700 Oak Avenue, Muskegon, MI 49442 Location of Eligible Property: Legal Description/Parcel Number: A portion of 61-24-122-300-0003-00 - legal description attached. Property Ownership: Phoenix Reclamation LLC is the current owner. Krimson intends to purchase the property from Phoenix Reclamation LLC. A purchase agreement is in place. Current Use of Property: Vacant former hospital Type of Brownfield Amendment Requesting: (Please check all that apply:) Tax Increment Financing for Eligible Activities X __________ Is the proposed site a “facility” (as defined by Part 201)? (Please provide a copy of the executive summary of any environmental reports available, such as a Phase I or II Environmental Site Assessment, or Baseline Environmental Assessment.) Is the applicant’s property “blighted” (as defined by P.A. 381 of 1996)? (Please provide supporting information.) Is the applicant’s property “functionally obsolete” (as defined by P.A. 381 of 1996)? (Please provide supporting information.) X Is the applicant's property "housing property" (as defined by P.A. 381 of 1996)? _______ 4 Page 51 of 139 5252 Clyde Park, S.W. Grand Rapids, MI 49509 Phone: (616) 531-3660www.exxelengineering.com Page 52 of 139 Table 1 – Summary of Eligible Costs Act 381 Brownfield Plan Muskegon - Central Park, LLC 1700 Oak Dr Muskegon, Michigan January 2025 MSHDA Eligible Activities Cost Building Demolition $ 1,417,375 Building Demolition/Deconstruction $ 820,000 Backfill $ 412,500 Contingency (15%) $ 184,875 Lead and Asbestos Abatement $ 621,000 Abatement Including Disposal and Air Monitoring $ 540,000 Contingency (15%) $ 81,000 Site Preparation $ 701,385 Cut and Fill Operations $ 80,000 Geotechnical Engineering $ 30,000 Grading $ 14,000 Land Balancing $ 35,000 Relocation of Active Utilities $ 72,000 Solid Waste Disposal $ 82,500 Staking $ 28,000 Temporary Construction Access and/or Roads $ 5,000 Temporary Erosion Control $ 15,000 Temporary Facility $ 50,000 Temporary Sheeting/Shoring $ 125,000 Temporary Site Control $ 29,000 Temporary Traffic Control $ 6,000 Soft Costs Related to Site Preparation $ 38,400 Contingency (15%) $ 91,485 Infrastructure Improvements $ 2,100,590 Streets, roads $ 543,000 Sidewalks $ 77,000 Lighting $ 85,000 Sanitary Sewer Mains $ 150,000 Water mains $ 340,000 Curb and Gutter $ 6,600 Sanitary sewer mains $ 150,000 Landscaping $ 110,000 Urban Storm Water Management Systems (Traditional) $ 200,000 Soft Costs Related to Infrastructure $ 165,000 Contingency (15%) $ 273,990 Development of Housing Financing Gap $ 3,905,950 Development of Housing Financing Gap $ 3,905,950 MSHDA Eligible Activities Subtotal $ 8,746,300 Brownfield Plan/Work Plan Preparation $ 25,000 Brownfield Plan/Work Plan Implementation $ 30,000 MSHDA Eligible Activities Total Costs $ 8,801,300 2/10/2025 Page 53 of 139 Agenda Item Review Form Muskegon City Commission Commission Meeting Date: February 25, 2025 Title: Approval of Minutes Submitted by: Ann Meisch, City Clerk Department: City Clerk Brief Summary: Approve minutes of the February 10, 2025, Commission Worksession Meeting and the February 11, 2025, 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 Page 54 of 139 CITY OF MUSKEGON CITY COMMISSION WORKSESSION February 10, 2025 @ 5:30 PM MUSKEGON CITY COMMISSION CHAMBERS 933 TERRACE STREET, MUSKEGON, MI 49440 MINUTES Present: Mayor Ken Johnson, Vice Mayor Rebecca St. Clair, Commissioners Jay Kilgo, Willie German, Jr., Rachel Gorman, and Katrina Kochin, City Manager Jonathan Seyferth, and City Clerk Ann Marie Meisch Absent: Commissioner Destinee Keener 2025-09 NEW BUSINESS A. Lead Service Line Neighborhood Communication Public Works Dan VanderHeide, Director of Public Works, presented information on lead service line replacements happening in 2025 and beyond. Staff have been working with the City's neighborhood associations to present a series of topics at their individual meetings. In the first quarter of 2025, staff focused on lead service line replacements. To inform the Commission and members of the public who may not attend a neighborhood association meeting, Dan VanderHeide presented the information at the Worksession. B. City of Muskegon Park Rules DPW- Parks Kyle Karczewski, Parks and Recreation Director, presented park rules, recommended by the Parks & Recreation Advisory Committee, for consideration and discussion. The Parks & Recreation Advisory Committee (PRAC) workshopped rules and have recommended the document be presented as City of Muskegon Park rules. The rules listed were unanimously agreed upon via vote by the PRAC. While certain parks may have special rules for their unique park usage (such as Pere Marquette & Hackley Park), these rules will be across the board for all parks both community and neighborhood. Seasonal park rangers will assist enforcement of rules alongside Muskegon Public Safety. This will be discussed further at the February 25th City Commission Meeting. Page 1 of 2 Page 55 of 139 C. Shaw Walker Affordable Housing Agreement Economic Development An overview of the proposed Affordable Housing Agreement between the Brownfield Authority, City of Muskegon, and Parkland Properties associated with the Shaw Walker Project was presented by Jake Eckholm, Director of Development Service. This will be discussed further at the February 11th City Commission Meeting. D. Shaw Walker Community Benefits Agreement Economic Development An overview of the proposed Community Benefits Agreement between the City of Muskegon and Parkland Properties related to the Shaw Walker Project was explained by Jake Eckholm, Director of Development Service. This will be discussed further at the February 11th City Commission Meeting. PUBLIC COMMENT ON AGENDA ITEMS No public comments were made ADJOURNMENT The Commission Worksession Meeting adjourned at 8:43 p.m. Respectfully Submitted, Ann Marie Meisch, MMC City Clerk Page 2 of 2 Page 56 of 139 CITY OF MUSKEGON CITY COMMISSION MEETING February 11, 2025 @ 5:30 PM MUSKEGON CITY COMMISSION CHAMBERS 933 TERRACE STREET, MUSKEGON, MI 49440 MINUTES The Regular Commission Meeting of the City of Muskegon was held at City Hall, 933 Terrace Street, Muskegon, Michigan at 5:30 p.m., Tuesday, February 11, 2025. Pastor Dwayne Riley from Crestwood United Methodist Church opened the meeting with prayer, after which the Commission and public recited the Pledge of Allegiance to the Flag. ROLL CALL Present: Mayor Ken Johnson, Vice Mayor Rebecca St. Clair, Commissioners Jay Kilgo, Destinee Keener, Rachel Gorman, and Katrina Kochin, City Manager Jonathan Seyferth, City Attorney John Schrier, and City Clerk Ann Marie Meisch Absent: Commissioner Willie German, Jr. 2025-10 HONORS, AWARDS, AND PRESENTATIONS A. Muskegon Lumberjacks Charitable Foundation - Reading Caravan Arena Jay VandeVoorde spoke on behalf of the Muskegon Lumberjacks Charitable Foundation and Reading Caravan to update the Commission about his involvement and the Lumberjacks' involvement in the local schools and community. 2025-11 PUBLIC HEARINGS A. Public Hearing- Transformational Brownfield Plan, Shaw Walker Mixed Use Redevelopment Project, Parkland Properties of Michigan, LLC, 965 W. Western Ave., 920 Washington Ave., 930 Washington Ave., and 1330 Division Ave. Economic Development Page 1 of 12 Page 57 of 139 Parkland Properties of Michigan, LLC has submitted a Transformational Brownfield Plan for the Shaw Walker Mixed Use Redevelopment Project located at 965 W. Western Ave., 920 Washington Ave., 930 Washington Ave., and 1330 Division Ave. History of the Site: The Shaw Walker site, historically home to the Shaw Walker Furniture Company, was constructed between 1911 and 1913. This manufacturing facility was a significant contributor to Muskegon's industrial landscape until it ceased operations in 1989. Following its closure, the site experienced multiple ownership changes, including Knoll North America, Lakeview Industrial Center Inc., Mellowood Development Co., P&G Holdings LLC, IGCFCO III, LLC, and most recently, Parkland Properties of Michigan acquired it in December 2022. The site has since remained largely vacant and deteriorated, representing a substantial blight in the community. Developer's Plans: Parkland Properties of Michigan, through its affiliated entities, plans a comprehensive mixed-use redevelopment of the Shaw Walker site. The project will involve: • Residential Development: Rehabilitation of four existing buildings into 538 new housing units and 53 existing units, totaling 591 units. These include apartments and condominiums with amenities such as rooftop pools, jacuzzis, clubhouses, and sports courts. • Commercial Space: Conversion of portions of three buildings into 8 commercial retail spaces, including professional services (daycare, pet care), health and wellness facilities (salon, fitness studio), and various retail outlets (market, coffee shop, bookstore). • Parking and Infrastructure: Rehabilitation of one building into an indoor parking facility and the construction of new parking lots. Infrastructure improvements include connections to city water, sewer, and storm systems, and replacing damaged sidewalks. • The total capital investment is expected to exceed $212.9 million. • 200 new full-time jobs, 600 temporary construction jobs Duration of the Brownfield Plan: The Brownfield Plan will be in effect for up to 35 years from the date of approval by the governing body. The duration for property tax capture will not exceed 30 years, while the capture of withholding tax and income tax revenues is limited to 20 years from the start date. The initiation of tax increment revenue capture must occur within five years post- approval, subject to Michigan Strategic Fund (MSF) approval. Eligible Activities and Costs: Eligible activities under the Brownfield Plan include both environmental and non-environmental tasks: • EGLE (Environmental) Eligible Activities: o Department-specific environmental site assessments and mitigation measures ($225,000). Page 2 of 12 Page 58 of 139 • MSF (Michigan Strategic Fund) Eligible Activities: o Demolition and Abatement: $4,758,100 o Rehabilitation of Existing Structures: $143,595,767 o New Townhouse Construction: $11,100,000 o Site and Amenities Construction: $8,823,413 Total Eligible Activities Cost: $168,502,280 Total Reimbursable Eligible Costs: $159,598,389, reflecting limitations on Tax Increment Revenue (TIR) capture Approved Tax Incentives: The project has been awarded two approved tax incentives: NEZ (15 years), and an OPRA (12 years). Once approved locally, the project will go before the Michigan Strategic Fund Board in April for final approval. STAFF RECOMMENDATION: I motion to close the public hearing and approve the Shaw Walker Mixed-Use Redevelopment Project Transformational Brownfield Plan and authorize the City Mayor and City Clerk to sign the resolution. The Public Hearing opened to hear and consider any comments from the public. Comments were heard in support of the project from Greg King, Sarah Sass, Jeanette Moore, Steve Olson, and John Allen, Jr. Motion by Commissioner Keener, second by Commissioner Gorman, to close the public hearing and approve the Shaw Walker Mixed-Use Redevelopment Project Transformational Brownfield Plan and authorize the City Mayor and City Clerk to sign the resolution. ROLL VOTE: Ayes: Kilgo, Keener, Gorman, Kochin, St.Clair, and Johnson Nays: None MOTION PASSES FEDERAL/STATE/COUNTY OFFICIALS UPDATE District Representative Christina Achterhoff from Senator Bumstead office mentioned the main issues they are getting calls on is sick paid leave and tipping. PUBLIC COMMENT ON AGENDA ITEMS Public comments received. 2025-12 CONSENT AGENDA Page 3 of 12 Page 59 of 139 A. Approval of Minutes City Clerk To approve minutes of the January 28th City Commission Meeting. STAFF RECOMMENDATION: Approval of the minutes. B. Sale of 1693 Elwood Planning Staff is seeking authorization to sell the City-owned vacant lot at 1693 Elwood to Jeffrey Vos, Infrastructure C & E. Jeffrey Vos, Infrastructure C & E, would like to purchase the City-owned buildable lot at 1693 Elwood for $4,275 (75% of the True Cash Value of $5,700) plus half of the closing costs and the fee to register the deed. There will be a single-family home, as well as an ADU constructed on the property. This is part of a larger project involving 1693 Elwood and the adjacent lot, 1687 Elwood. STAFF RECOMMENDATION: Authorize the Code Coordinator to complete the sale of 1693 Elwood, as described in the purchase agreement, and to have the Mayor and Clerk sign both the purchase agreement and the deed. C. Amendment to the zoning ordinance, replacing mentions of "single- family residential districts" with "neighborhood residential districts." (SECOND READING) Planning Staff initiated request to amend the zoning ordinance to replace all instances of “single-family residential districts” with “neighborhood residential districts.” With the recent zoning reform amendments now in place, the ordinance must be updated to remove references to single-family residential districts. These references can be replaced with neighborhood residential districts. The Planning Commission unanimously recommended for approval of the proposed amendments. STAFF RECOMMENDATION: I move to approve the request to amend the zoning ordinance by replacing all instances of “single-family residential districts” with “neighborhood residential districts" as proposed. D. Amendment to Article II of the zoning ordinance to create definitions for duplexes and triplexes. (SECOND READING) Planning Staff initiated request to amend Article II of the zoning ordinance to create definitions for duplexes and triplexes. • Now that duplexes and triplexes are allowed in R districts, we must create definitions for them. • After discussion, the Planning Commission recommended changes to the definitions. Page 4 of 12 Page 60 of 139 • The Planning Commission unanimously recommended for approval of the zoning ordinance amendment, which include their updated definitions. • The proposed definitions are as follows: Duplex: A building designed for occupancy by two families living independently of each other. Triplex: A medium-sized structure that’s designed for occupancy by three families living independently of each other. STAFF RECOMMENDATION: I move to approve the request to amend Article II of the zoning ordinance to create definitions for duplexes and triplexes as proposed. F. Filtration Control System Upgrades Public Works Staff is requesting to enter into a professional services agreement with Tetra Tech Inc., purchase new hardware, and enter into a 3-year software licensing agreement with Q-Mation for control system upgrades at the Water Filtration Plant. The Water Filtration Plant uses a computer-based system known as SCADA to monitor and control the drinking water treatment process. The hardware and software that makes up the water plant’s SCADA system were last updated in 2018, and updates are now required to replace its aging hardware and out-of-date software, both of which will soon no longer be supported by their manufacturers. This project will replace all the computing hardware (servers, network switches, terminals) and software (AVEVA and Microsoft Windows) with the most recent versions available, ensuring the reliability and security of the water system by utilizing hardware and software that their respective manufacturers fully support. Our last control system upgrade in 2018 was completed with the help of Tetra Tech’s services. Tetra Tech designed the original plant control system in the early 90s, and we are grateful to able to continue working with the engineers involved with the original design and all subsequent upgrades. Currently, we have a contract with Tetra Tech for as needed services to make minor changes and improvements to our plant control system as well as for troubleshooting and repair. Given the criticality of these systems and the integral nature of how the upgrades and existing system work together, staff solicited a proposal from Tetra Tech for this work and recommends them via an exception to the purchasing policy. Q-Mation is the licensed distributor of AVEVA (formerly known as Wonderware), which is our current control system. AVEVA has been our control system from the first integration of a SCADA system for the Filtration Plant and continues to be a reliable system. It is also much cheaper to maintain the current control Page 5 of 12 Page 61 of 139 system than to bring in a new system and have to rebuild the entire system. Q- Mation provided a quote for a 3-year licensing agreement with initial year 1 costing $20,002 and a year-over-year increase of 5% for a total of $63,086 for the 3-years. Q-Mation 3-Year Costs Year 1 $20,002 Year 2 $21,012 Year 3 $22,072 Total project cost Tetra Tech Inc. $79,000 Q-Mation (AVEVA) $20,002 Year 1 Hardware/Microsoft $68,000 Window Total $167,002 This project is included as part of the water plant capital budget. STAFF RECOMMENDATION: Authorize staff to enter into a professional services agreement with Tetra Tech Inc, to purchase new necessary computer hardware from various suppliers, and to purchase software licensing from Q- Mation for control system upgrades at the Water Filtration Plant for $167,002. Motion by Commissioner Kochin, second by Vice Mayor St.Clair, to approve the consent agenda as presented minus item E. ROLL VOTE: Ayes: Keener, Gorman, Kochin, St.Clair, Johnson, and Kilgo Nays: None MOTION PASSES 2025-13 ITEMS REMOVED FROM THE CONSENT AGENDA E. Sale of 254 Meeking. Planning Staff is seeking authorization to sell the City-owned vacant lot at 254 Meeking to Green Rabbit Home Builders. Green Rabbit Home Builders would like to purchase the City-owned buildable lots at 254 Meeking for $5,250 (75% of the True Cash Value of $7,000) plus half of the closing costs and the fee to register the deed. They will be constructing a single-family home on the property. STAFF RECOMMENDATION: To authorize the Code Coordinator to complete the sale of 254 Meeking, as described in the purchase agreement, and to have the Page 6 of 12 Page 62 of 139 Mayor and Clerk sign both the purchase agreement and the deed. Motion by Commissioner Kilgo, second by Commissioner Kochin, to authorize the Code Coordinator to complete the sale of 254 Meeking, as described in the purchase agreement, and to have the Mayor and Clerk sign both the purchase agreement and the deed. ROLL VOTE: Ayes: Gorman, Kochin, St.Clair, Johnson, Kilgo, and Keener Nays: None MOTION PASSES 2025-14 NEW BUSINESS A. Muskegon Regatta DPW- Parks and Recreation The Catamaran Racing Association of Michigan has applied to host the Muskegon Regatta at Pere Marquette on July 18-20, 2025. The Catamaran Racing Association of Michigan (CRAM) wants to bring the Muskegon Regatta back to Pere Marquette, where it used to be held annually before moving to Fisherman's Landing due to high water levels. CRAM enjoyed the location and hopes to return. They plan to use the parking lot at Margaret Drake Elliott Park, near the Coast Guard Station, for setup, parking, and camping. Approximately 20-25 catamarans with one or two racers each are expected to sign up. Participants will arrive on Friday, July 18, between noon and 8 PM to set up. The race will start on Saturday, July 19, at 11 AM and end by 4 PM, with boats parked overnight on the beach. Racing on Sunday, July 20, will start at 10:30 AM, with awards at 3 PM. The boats are launched from the beach inside the arms and the racing occurs approximately a mile from shore. This event coincides with Rebel Road and Bike Time downtown, a time when staff usually focuses on those events, making it difficult to support another event simultaneously. The regatta itself would not require many additional city services. The camping portion of the event could require DPW or Police services which staff is unlikely to be able to provide. Event participants and attendees can utilize local places to stay during the event. The Catamaran Racing Association of Michigan (CRAM) wants to bring the Muskegon Regatta back to Pere Marquette, where it used to be held annually before moving to Fisherman's Landing due to high water levels. CRAM enjoyed the location and hopes to return. They plan to use the parking lot at Margaret Drake Elliott Park, near the Coast Guard Station, for setup, parking, and camping. Approximately 20-25 catamarans with one or two racers each are expected to sign up. Participants will arrive on Friday, July 18, between noon and 8 PM to set up. The race will Page 7 of 12 Page 63 of 139 start on Saturday, July 19, at 11 AM and end by 4 PM, with boats parked overnight on the beach. Racing on Sunday, July 20, will start at 10:30 AM, with awards at 3 PM. The boats are launched from the beach inside the arms and the racing occurs approximately a mile from shore. This event coincides with Rebel Road and Bike Time downtown, a time when staff usually focuses on those events, making it difficult to support another event simultaneously. The regatta itself would not require many additional city services. The camping portion of the event could require DPW or Police services which staff is unlikely to be able to provide. Event participants and attendees can utilize local places to stay during the event. STAFF RECOMMENDATION: To approve the Catamaran Racing Association of Michigan's application for a Muskegon Regatta event on July 18 through July 20, 2025, without camping. Motion by Commissioner Kochin, second by Commissioner Keener, to approve the Catamaran Racing Association of Michigan's application for a Muskegon Regatta event on July 18 through July 20, 2025, without camping. ROLL VOTE: Ayes: Gorman, Kochin, St.Clair, Johnson, Kilgo, and Keener Nays: None, MOTION PASSES B. Soccer in the Sand DPW- Parks and Recreation Soccer in the Sand and Inside Out's Volleyball Tournament have both applied to hold their events at Pere Marquette on July 26-27, 2025. Per the event policy, two events cannot occur on the same date at Pere Marquette. Soccer in the Sand is seeking an exception to be made. Soccer in the Sand is a sand soccer tournament held annually at Pere Marquette since 2018. They have been on the same weekend as Inside Out's Volleyball Tournament since its inception. The natural beach traffic and these events make navigating and parking at Pere Marquette difficult the weekend of these events. One possible solution was to have one of the tournaments move dates. Unfortunately, neither event was able to do so. Soccer in the Sand has a national tour of events with tournaments on the surrounding weekends. Inside Out works with other volleyball tournaments in the area to create the season's schedule so they cannot move their date. Inside Out has been hosting a tournament on this date longer than Soccer in the Sand, and under the Special Event Policy, the event with the longer tenure on the requested date is given preference. Soccer in the Sand is working with local vendors to create a bus route for the weekend to help address some of the traffic issues that initiated the policy Page 8 of 12 Page 64 of 139 change. They have been appreciative of the opportunity and are requesting that the commission consider those efforts in hopes of keeping their event date as an exception to the policy. STAFF RECOMMENDATION: I move to approve the request from Soccer in the Sand to allow two events to be at Pere Marquette on July 26-27, 2025, if transportation from alternative parking areas is provided during the event. Motion by Commissioner Kilgo, second by Vice Mayor St.Clair, to approve the request from Soccer in the Sand to allow two events to be at Pere Marquette on July 26-27, 2025, if transportation from alternative parking areas is provided during the event. ROLL VOTE: Ayes: Kochin, St.Clair, Johnson, Kilgo, Keener, and Gorman Nays: None MOTION PASSES C. Shaw Walker Project Affordable Housing Agreement Economic Development As required by the Transformational Brownfield Amendment to Public Act 381, Parkland Properties, The City of Muskegon Brownfield Redevelopment Authority, and the City of Muskegon must agree on an Affordable Housing Agreement passed by all three parties in order for the project to move forward. In order for developments to qualify for Transformational Brownfield approval by the Michigan Strategic Fund, they must also enter into an Affordable Housing Agreement to reflect that they will meet the statutory requirement for units at or below 100% of the area's median income. The attached agreement reflects that an average of 20 units of the total rental housing onsite must be set aside for neighbors under 100%. Realistically, the number will likely be far higher due to the unit makeup of the facility, with many studios and one bedrooms available at or below $1,000 monthly, but the agreement reflects the statutory required ratio. The agreement sets standards for reporting incomes of tenants to the City and BRA, and establishes recourse for all entities in the event of a breach. For instance, if it is found that Parkland is in violation of the affordability requirements on designated affordable units, they must remit to the City twice the amount of the overage. The City has authority in the agreement to deposit the funds in the housing fund, and/or remit the overage amount to the impacted tenant. STAFF RECOMMENDATION: Motion to approve the Affordable Housing Agreement between the City of Muskegon, the Muskegon Brownfield Redevelopment Authority, Parkland Properties of Michigan - Shaw Walker, LLC, Shaw Walker Opportunity Zone Business 1, LLC, Shaw Walker Opportunity Zone Page 9 of 12 Page 65 of 139 Business 2, LLC, Shaw Walker Opportunity Zone Business 3, LLC, and Shaw Walker Opportunity Zone Business 4, LLC, as presented and authorize the Mayor and Clerk to sign. Motion by Commissioner Kochin, second by Commissioner Keener, to approve the Affordable Housing Agreement between the City of Muskegon, the Muskegon Brownfield Redevelopment Authority, Parkland Properties of Michigan - Shaw Walker, LLC, Shaw Walker Opportunity Zone Business 1, LLC, Shaw Walker Opportunity Zone Business 2, LLC, Shaw Walker Opportunity Zone Business 3, LLC, and Shaw Walker Opportunity Zone Business 4, LLC, as presented and authorize the Mayor and Clerk to sign. ROLL VOTE: Ayes: St.Clair, Johnson, Kilgo, Keener, Gorman, and Kochin Nays: None MOTION PASSES D. Shaw Walker Community Benefit Agreement Economic Development This is Development Service's first negotiated Community Benefit Agreement, which is a newer strategy in contemporary economic development to negotiate more direct benefit to non-developer stakeholders in exchange for incentives/infrastructure improvements related to projects. In the negotiated agreement, the City has asked for consideration from Parkland for other community stakeholders in exchange for consideration on needed infrastructure alterations in the public Right of Way that serve the Shaw Walker Development Project. Specifically, the developer has asked for the City to relocate a water main that currently runs under the project site (including under two buildings), that the City agree to repair damage done to private property in the event an existing sanitary and storm main under the property fail, that the City realign the curbing and pedestrian paths on Western Avenue pursuant to the approved Planned Unit Development, that the City facilitate connection points to public water and sewer infrastructure for the project, and share any potential costs related to relocating Consumers Energy powerlines and poles that are directly adjacent to the Shaw Walker buildings on Western Avenue at a 75% to 25% split with Parkland up to $200,000 by the City, at which point Parkland will cover any excess cost. Staff views these improvements as essential to the redevelopment of the property for the proposed use and in the public interest for life safety, future revenues to public utilities for public service delivery, and improved pedestrian access and safety. However, this participation represents a significant potential investment of capital into our existing public infrastructure to facilitate the project, and so we have determined and Parkland agreed that there should be commensurate Page 10 of 12 Page 66 of 139 investments in the Muskegon community to exemplify partnership and good corporate citizenship. Specifically, the agreement calls for the developer to formalize a workforce training agreement with Muskegon Public Schools, MCEC, or another affiliate program of MPS to provide workforce development opportunities to MPS students. This is to be executed for a term of not less than 5 years, and must be done prior to the City beginning any of the infrastructure alterations in the CBA, and provided to the City upon request. Further, per the agreement the developer shall pay for one mutually agreed upon public asset improvement in the Nims Neighborhood where the project is located. They must work with the Nims Neighborhood Association board to determine this project and it must be done within 2 years of the effective date of the CBA. The developer must also pay for one public asset at Hartshorn Marina Park as represented on the Park Master Site Plan. This must be mutually agreed upon by the developer and the City and installed within 2 years of the effective date of the agreement. STAFF RECOMMENDATION: Motion to accept the Community Benefits Agreement between the City of Muskegon and Parkland Properties of Michigan - Shaw Walker Opportunity Zone Business 1, LLC, Shaw Walker Opportunity Zone Business 2, LLC, Shaw Walker Opportunity Zone Business 3, LLC, and Shaw Walker Opportunity Zone Business 4, LLC, and to authorize the Mayor and Clerk to sign. Motion by Commissioner Keener, second by Commissioner Kochin, to accept the Community Benefits Agreement between the City of Muskegon and Parkland Properties of Michigan - Shaw Walker Opportunity Zone Business 1, LLC, Shaw Walker Opportunity Zone Business 2, LLC, Shaw Walker Opportunity Zone Business 3, LLC, and Shaw Walker Opportunity Zone Business 4, LLC, and to authorize the Mayor and Clerk to sign. ROLL VOTE: Ayes: Johnson, Kilgo, Keener, Gorman, Kochin, and St.Clair Nays: None MOTION PASSES ANY OTHER BUSINESS City Manager Jonathan Seyferth stated the last General Public Engagement for the Fisherman's Landing Lakeshore Development Project will be Monday, February 17, 2025, at 4:00 p.m., at Muskegon Innovation Hub at Grand Valley State University, 200 Viridian Drive. Commissioner Kilgo announced MDOT is hosting a public meeting for the M-46 (Apple Avenue) project on February 24, 2025, at 4:00 p.m., at City Hall in the Commission Chambers. All are invited to come. Commissioner Kochin reminded everyone that Friday is Valentine’s Day and that we have a lot of great local businesses to shop at. Page 11 of 12 Page 67 of 139 GENERAL PUBLIC COMMENT Public comments received. ADJOURNMENT The City Commission meeting adjourned at 7:33 p.m. Respectfully Submitted, Ann Marie Meisch, MMC City Clerk Page 12 of 12 Page 68 of 139 Agenda Item Review Form Muskegon City Commission Commission Meeting Date: February 25, 2025 Title: City of Muskegon 4th of July Fireworks Agreement Submitted by: Kyle Karczewski, Parks and Department: DPW- Parks Recreation Director Brief Summary: City of Muskegon 4th of July Fireworks Agreement with Pyrotechnico for a $40,000 fireworks show at Heritage Landing. Detailed Summary & Background: Staff is requesting authorization to enter into an agreement with Pyrotecnico Fireworks for $40,000 for the annual fireworks show in Muskegon, and approval of the fireworks display permit for Pyrotecnico contingent upon inspection of the fireworks and approval of the insurance. The annual Fireworks contract of $40,000 will be scheduled for July 4th, 2025. The agreement is of the standard form with Pyrotecnico that the City has entered into for the past several years. The show this year is being planned at Heritage Landing out of concern for public safety. We plan to have a DJ start at 8:30pm and the fireworks to set off at 10:30pm. Goal/Focus Area/Action Item Addressed: Key Focus Areas: Events and activities Goal/Action Item: 2027 Goal 1: Destination Community & Quality of Life - Parks and Recreation Department and Services Amount Requested: Budgeted Item: $40,000 Yes x No N/A Fund(s) or Account(s): Budget Amendment Needed: 101-770-801 Yes No x N/A Recommended Motion: I move to authorize staff to enter into an agreement with Pyrotecnico Fireworks for $40,000 for the annual fireworks show in Muskegon, and approval of the fireworks display permit for Pyrotecnico. Approvals: Guest(s) Invited / Presenting: Page 69 of 139 Immediate Division x Head No Information Technology Other Division Heads x Communication x Legal Review Page 70 of 139 PYROTECNICO FIREWORKS, INC. This Fireworks Display Agreement (“Agreement”) entered into this on November 11, 2024 by and between PYROTECNICO FIREWORKS, INC. (“Pyrotecnico”) and City of Muskegon, MI (CUSTOMER). Pyrotecnico, for and in consideration of the terms hereinafter mentioned, agrees to furnish to the CUSTOMER Fireworks Display(s) and related services (“Fireworks Display”), including the services of Pyrotecnico’s on-site representative to take charge of and perform the Fireworks Display under the supervision and direction of the CUSTOMER. The Firework Display to be given on July 4, 2025. (the “Display Date”), weather permitting. The offer contained in this Agreement is only valid if it is signed and returned to Pyrotecnico by February 1, 2025 (“Expiration Date”). Pricing and availability are only guaranteed as long as Pyrotecnico receives the signed Agreement by the Expiration Date. Customer agrees to pay Pyrotecnico the sum of $40,000.00 (the “Contract Price”). Pyrotecnico will invoice CUSTOMER a deposit of $20.000.00 is due April 4, 2025 and the final balance shall be due Net 10 from the Display Date. A service fee of 1 ½% per month shall be added if the account is not paid in full within 30 days of the Display Date. CUSTOMER agrees to pay any and all collection costs, including reasonable attorney’s fees and court costs incurred by Pyrotecnico for any amount due under this Agreement. Pyrotecnico and CUSTOMER agree that should inclement weather prevent the performance of the Fireworks Display on the Display Date, the parties shall agree to a mutually convenient alternate date, within three (3) months of the Display Date. If the show is rescheduled prior to Pyrotecnico’s truck leaving the facility, CUSTOMER shall remit to Pyrotecnico an additional $6,000.00 for additional expenses in presenting the Fireworks Display on an alternate date. If the show is rescheduled after Pyrotecnico’s truck leaves the facility, CUSTOMER shall remit to Pyrotecnico an additional $16,000.00 for additional expenses incurred. The determination to cancel the show because of inclement or unsafe weather conditions shall rest within the sole discretion of Pyrotecnico. In the event the CUSTOMER does not choose to reschedule another date or cannot agree to a mutually convenient date, Pyrotecnico shall be entitled to $20,000.00 . Pyrotecnico agrees to furnish all necessary fireworks display materials and personnel for fireworks display in accordance with the program approved by the parties. Quantities and varieties of products in the program are approximate. After final design, exact specifications will be supplied upon request. Should this display require any Union, permit, or fire department related costs; their fees are not included in the Contract Price. CUSTOMER will timely secure and provide the following: (a) Sufficient area for the display, including a minimum spectator set back distance of 425 FEET at all points from the discharge area, as reflected in the attached site plan, and that this discharge area shall not have any unauthorized personnel or vehicles; (b) Funds for all permits, licenses, and approvals as required by local, state and federal laws for the Fireworks Display; (c) Protection of the display area by roping-off or similar facility; (d) Adequate police protection to prevent spectators from entering display area; (e) Search of the fallout area at first light following a nighttime display; and (f) Provide credit as “Fireworks by Pyrotecnico” in all advertising and marketing materials. Pyrotecnico will maintain general liability, property damage, transportation and workers compensation insurance. All those entities/individuals who are listed on the certificate of insurance, provided by Pyrotecnico, will be deemed to be an additional insured on such policy. This insurance coverage specifically does not include coverage for any independent acts of negligence of any additional insured. PYROTECNICO : CUSTOMER: By (sign):________________________________________ By (sign) :______________________________________ Name:______Lynn Ann Hamed_______________________ Name:_________________________________________ Title: _______Corporate Secretary_____________________ Title:_____________________________________________ Date:___________________________________________ Date: __________________________________________ Address: 299 WIlson Road Address: _______________________________________ New Castle PA 16101 _________________________________________ Phone: (724) 652-9555 Phone:___________________________________________ Email: contracts@pyrotecnico.com Email: :___________________________________________ Pyrotecnico Fireworks Display Agreement 2024 Page 1 of 2 Customer Initials: ____________________ Page 71 of 139 CONTACT/INSURANCE INFORMATION FORM You must return this form with your signed Agreement for the Certificate of Insurance to be issued, and for the permit application to be completed and submitted. If information isn’t applicable, please state such by indicating “N/A”. Customer Name (Entity Contracting Pyrotecnico): __________________________________________________________________ Primary Point of Contact Name: _______________________________________________________________________________ Phone: ________________________________________ Email: ____________________________________________ Billing Address:____________________________________________________________________________________________ City, State & Zip: ___________________________________________________________________________________________ Accounts Payable Contact: ___________________________________________________________________________________ Accounts Payable Email: ____________________________________________________________________________________ Display Date(s): _____________________________________ Display Start Time(s): ______________________________ Rain Date(s): ________________________________________ Day-of-Display Contact Name:__________________________________________________________________________________ Day-of-Display Mobile Phone Number:___________________________________________________________________________ Day-of-Display Email:_________________________________________________________________________________________ Display Site Location(s) and Address(es):_______________________________________________________________________________________________ _________________________________________________________________________________________________________ If Pyrotecnico has produced a show at this site, has the geography changed (i.e, new structures, new terrain, etc.)? If yes, please describe: _________________________________________________________________________________________________________ _________________________________________________________________________________________________________ Additionally Insured Entities (The “Customer Name” shall automatically be listed as an Additional Insured), if applicable: _________________________________________________________________________________________________________ _________________________________________________________________________________________________________ Page 72 of 139 Agenda Item Review Form Muskegon City Commission Commission Meeting Date: February 25, 2025 Title: City of Muskegon Park Rules Submitted by: Kyle Karczewski, Parks and Department: DPW- Parks Recreation Director Brief Summary: Staff seeks approval of the 2025 City of Muskegon Park Rules. Detailed Summary & Background: The Parks & Recreation Advisory workshopped rules and are recommending the attached document to be adopted as City of Muskegon Park rules. The rules listed here were unanimously agreed upon via vote. While certain parks may have special rules for their unique park usage (such as Pere Marquette & Hackley Park), these rules will be across the board for all parks both community and neighborhood. Seasonal park rangers will assist enforcement of rules alongside Muskegon Public Safety. Goal/Focus Area/Action Item Addressed: Key Focus Areas: Blight cleanup Enhanced Parks and Recreation Department and Services Goal/Action Item: 2027 Goal 1: Destination Community & Quality of Life Amount Requested: Budgeted Item: n/a Yes No N/A Fund(s) or Account(s): Budget Amendment Needed: n/a Yes No N/A Recommended Motion: To adopt the 2025 City of Muskegon Park Rules as presented. Approvals: Guest(s) Invited / Presenting: Immediate Division x Head No Information Technology Page 73 of 139 Other Division Heads x Communication Legal Review x Page 74 of 139 City of Muskegon Park Rules 1. Hours of Operation: 5am – 11pm 2. No Littering: Dispose of trash properly and use designated recycling bins if available. 3. Leash Laws: Where allowed, Ppets should must be kept on a leash. Some parks may have off-leash areas, but always check the rules of the park you are at. Clean up after your pet. 4. No Smoking or Vaping: Parks are smoke-free to maintain a clean environment and ensure everyone's health. 5. No Alcohol: Consumption of alcohol is prohibited in City of Muskegon Parks outside of the social district.. 6. No Fires or Grills: Open flames are often notonly allowed unless in there are designated areas for barbecuing or bon fires. 7. Respect Wildlife: Do notn’t feed or disturb wildlife. Keep a safe distance and observe birds and animals from afar. 8. Stay ion Designated PathsAreas: Stick to marked trails and paths to protect natural habitats and prevent erosion. Only park in designated areas. 9. No Vandalism: Respect park property, including benches, signs, and playground equipment. 10. Noise Levels: Keep noise to a reasonable level to avoid disturbing other park-goers and nearby neighbors & residents. 11. No Unauthorized Motor Vehicles: This includes ATVs, dirt bikes, or any motorized vehicles not designated for park use. 12. Follow Event Rules: If you’re attending a special event, adhere to any additional specific rules or guidelines provided. Page 75 of 139 Agenda Item Review Form Muskegon City Commission Commission Meeting Date: February 25, 2025 Title: Use Agreement - Muskegon YMCA Submitted by: Kyle Karczewski, Parks and Department: DPW- Parks Recreation Director Brief Summary: Staff is requesting approval of an agreement with the Muskegon YMCA for use of city facilities. Detailed Summary & Background: The Muskegon YMCA has requested to run various community programs at Smith-Ryerson and McGraft Parks. This agreement will cover all programs through August 2025. Specific summer 2025 programs have yet to be finalized but will be similar to programs run in 2024. For context, last year, the YMCA hosted a full-day summer camp at McGraft Park, with a weekly average of 50 kids. The goal for summer 2025 would be to replicate that success in other parts of the city, Smith-Ryerson, for example, and to bring new types of programs. Costs are primarily covered by the YMCA, with any City contributions being a part of the approved Recreation Department budget and following the purchasing policy. Goal/Focus Area/Action Item Addressed: Key Focus Areas: Enhanced Parks and Recreation Department and Services, Events and activities Goal/Action Item: 2027 Goal 1: Destination Community & Quality of Life - Parks and Recreation Department and Services Amount Requested: Budgeted Item: n/a Yes No N/A x Fund(s) or Account(s): Budget Amendment Needed: n/a Yes No N/A x Recommended Motion: Authorize staff to enter into an agreement with Muskegon YMCA for use of City facilities. Approvals: Guest(s) Invited / Presenting: Page 76 of 139 Immediate Division x Head No Information Technology Other Division Heads Communication Legal Review x Page 77 of 139 City of Muskegon 2025 YMCA Park Usage Agreement This Usage Agreement (the “Agreement”) made and entered into the ____ day of February, 2025 by and between the City of Muskegon, a Michigan municipal corporation, of 933 Terrace Street, Muskegon, MI 49440 (the “City”), and Muskegon Young Men’s Christian Association, a Michigan non-profit corporation, of 1115 3rd Street, Muskegon, MI 49440 (the “User”) (the City and User are collectively referred as the “Parties”). Background A. The City of Muskegon owns Smith-Ryerson Park located at 650 Wood St., Muskegon, MI 49442 and McGraft Park located at 2204 Wickham Drive, Muskegon, MI 49441 (together the “Premises”). B. This Agreement outlines the terms and conditions under which the User is permitted to utilize the Premises for the specified purposes agreed upon between the Parties. The permission granted by the City of Muskegon is contingent upon the User's compliance with all applicable laws, regulations, and the terms stipulated in this Agreement. The City retains the right to revoke this permission at any time in accordance with the terms outlined herein. C. The City of Muskegon has agreed to grant a non-exclusive, non-transferable use of the Premises, identified below. User has agreed to accept the same. Therefore, the parties agree as follows: Agreement 1. Description of Premise. User has inspected the Premises and agrees to accept the Premises in its present “as is” condition. User acknowledges its use is non-exclusive and City may use the Premises in its sole discretion. No representation, statement, or warranty, express or implied, has been made by or on behalf of City as to such condition, or as to the use that may be made of such property. In no event will City be liable to User for any defect in such property or for limitations on its use. No representation or warranty of habitability, express or implied, has been made by or on behalf of City to User. 2. Term. The term of this Agreement (the “Term”) shall commence on May 1, 2025, and shall terminate on August 31, 2025, unless sooner terminated under the other terms of this Agreement. During the Term, User may operate its Events on the Premises only between the hours of 8:00 AM through 5:00 PM, Monday through Friday. 3. Use of Premises. It is understood and agreed between the parties that during the Term of this Agreement, the Premises shall be used and occupied only to organize and host health, wellness, community events, and other similar activities that promote community engagement and well-being, including, but not limited to a children’s day camp, and for no other purpose or purposes (the “Event(s)”) without the prior written consent of City, which Page 78 of 139 consent may be withheld for any reason. User agrees and understands that the City does not provide exclusive use to publicly accessible parks. User agrees to return each location to the condition it was in prior to each Event. User is responsible for providing all necessary and appropriate safety instruction to all participants and attendees at User’s activity. User will not use or permit upon the Premises anything that will materially increase the rate of insurance; nor will User in any manner deface or injure the structure, overload the floor, outside the ordinary course of its operations. User shall comply with and observe all applicable laws, ordinances, statutes, rules, and regulations relating to the Premises and the use of the Premises. This Agreement confers a limited right to use the specified property and explicitly does not grant any ownership interest, title, or leasehold estate to User. City retains full ownership and control over the property, and this Agreement does not create, transfer, or imply any property rights beyond the expressly stated usage rights. 4. Insurance and Indemnity. a. User shall, at its sole cost and expense, procure and maintain in full force and effect during the Term, comprehensive public liability, and property damage insurance for claims of personal injury, death or property damage occurring in, about or as a result of the use of the Premises, with single limit liability coverage of not less than $1,000,000. User shall provide a Commercial General Liability Insurance of not less than $1,000,000 naming the City of Muskegon as the certificate holder. The following language must be listed on the insurance “Additional Insured: The City of Muskegon, all elected and appointed officials, all employees and volunteers, all boards, commissions and/or authorities and board members, including employees and volunteers thereof: it is understood and agreed that by naming the City of Muskegon as additional insured, coverage afforded is considered to be primary and any other insurance the City of Muskegon may have in effect shall be considered secondary and/or excess.” The certificate shall provide that no cancellation shall be effective without a 30-day notice to the City. The insurance policy must be in place and on file in the City Clerk’s Office before User may commence operation on the Premises. b. User shall indemnify and hold City, and its officers, employees, managers, agents, volunteers, successors, and assigns harmless from all claims, demands, actions, losses, damages and liabilities and all fees, costs, and expenses (including reasonable attorneys’ fees) relating to or in any way arising with regard to the Premises or from the use of the Premises, from any cause whatsoever. c. User, for itself and its respective successors and assigns (including any person, firm or corporation which may become subrogated to any of its rights), waives any and all rights and claims for recovery against City, and its officers, employees, managers, agents, volunteers, successors, and assigns, or any of them, on account of any loss or damage to any of its property insured under any valid and collectible insurance policy or policies, to the extent of any recovery collectible under such insurance policies. 2 Page 79 of 139 d. The furnishing of any insurance coverage by User or City shall not limit User’s obligations. City shall not be liable for any damage or injury occurring on or about the Premises. In no event shall City be liable for any injury or interruption to User’s operation or any loss of income therefrom under any circumstances and neither City nor any of the other indemnified parties shall be liable for any indirect or consequential losses or damages suffered by User. The terms and obligations of this Paragraph 4 shall survive termination or expiration of this Agreement. 5. Alterations or Improvements. User shall not make any alterations, additions, or improvements to the Premises. All alterations, improvements or additions to the Premises shall be upon a written request by User and completed by the City in its sole discretion. All alterations, improvements, or additions to the Premises become the property of City and be surrendered with the Premises at the termination of this Agreement. 6. Repairs and Maintenance. City shall keep and maintain the Premises, and every part thereof, including, but not limited to, all structural, nonstructural, roof, light bulbs, interior and exterior portions of the buildings and improvements located upon the Premises, in good and sanitary order, condition and repair. User will deliver the same to City at the expiration of the Term in as good a condition as when received, except for reasonable use and wear thereof. User shall be responsible for any and all losses and damages caused by or arising from the acts, omissions, or negligence of User or User’s employees, agents, volunteers, guests, or invitees. Any damage or permanent changes to the Premises that require City to repair will be reimbursed by User upon a written invoice by City. 7. Default; Termination. If the User or its agents, employees, or assigns shall default or breach any provision of this Agreement and shall not cure such default within 10 days after written notice from City; or if User abandons the Premises; or in the case of the insolvency or bankruptcy of User; then in any such event City may terminate this Agreement without notice to User. Upon termination of this Agreement, City may, if it elects to do so, forthwith and without further notice enter the Premises and dispossess User or any other occupant of the Premises and remove their effects. Either Party may terminate this Agreement by giving to the other thirty (30) days’ written notice prior to any scheduled Event. 8. Relinquish Premises. User will relinquish and vacate the Premises at the expiration of the Term of this Agreement, in as good of a state and condition as the Premises were in at the commencement of the Term, reasonable use and wear thereof excepted. 9. Damages. In the event of the termination of this Agreement under the provisions of Paragraph 7 or under any provisions of law by reason of User’s breach or default under this Agreement, City shall be entitled to recover from User all reasonable costs, expenses, and actual attorney fees incurred in the enforcement of City’s obligations under this Agreement and the collection or attempted collection of any sums owed by User to City. 10. Fire or destruction. If the Premises, or any substantial part of the Premises, shall be destroyed by fire or other casualty so as to render all or a substantial part of the Premises 3 Page 80 of 139 unusable, either Party shall have the right to terminate this Agreement on written notice. All insurance proceeds received by either party as a result of damage to or destruction of the Premises shall be promptly delivered to City, except to the extent of proceeds received exclusively for damage or destruction of User’s personal property. 11. Non-Discrimination. During the Term, User shall refrain from refusing, restricting, withholding, or denying any accommodations, services, privileges, advantages or facilities or otherwise discriminating, whether directly or indirectly, on the basis of race, color, ethnicity, national origin, religious beliefs or practices, age, disability, pregnancy, marital status, parental status, military status, employment or educational status, gender, sex, sexual orientation, gender identity or expression, or any other protected or designated classification by as established by applicable State law. 12. Assignment. User may not assign this Agreement or all or any part of the Premises at any time during the Term of this Agreement without the prior written consent of City, which may be withheld for any reason. 13. Compliance with Laws. User, under penalty of forfeiture and damages, agrees to promptly comply with all requirements of law and all ordinances, regulations or orders of any state, municipal, or other public authority affecting all or any part of the Premises and with all requirements of the Board of Fire Underwriters or similar body and of any liability insurance company insuring City against liability for accidents in or connected with all or any part of the Premises, and User further agrees to save City harmless from any and all penalties, fines, or liabilities that may result from User’s failure to so comply. 14. Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their personal representatives, heirs, successors and assigns. 15. Headings. The headings contained herein are for the convenience of the parties and are not to be used in construing this Agreement. 16. Remedies Cumulative; Waiver. All rights and remedies of City are cumulative, and not exclusive, and shall be in addition to all other rights and remedies provided by applicable law. Failure to exercise or delay in exercising any right or remedy shall not operate as a waiver thereof, nor excuse future performance. No waiver, discharge or renunciation of any claim or right arising out of a breach of these terms and conditions shall be effective unless in a writing signed by the party so waiving and supported by consideration. Any waiver of any breach shall be a waiver of that breach only and not of any other breach, whether prior or subsequent thereto. 17. Choice of Law; Invalidation of Terms. This Agreement shall be governed by and construed in accordance with the laws of the State of Michigan. The invalidation of one or more term in this Agreement shall not affect the validity of the remaining terms. 4 Page 81 of 139 18. Notices. All notices shall be given in writing upon the parties. Any notice shall be deemed to have been given when personally delivered, sent by certified mail, return receipt requested and postage prepaid, or sent by email. Notices shall be sent as follows: City: Parks and Recreation Director Muskegon Department of Public Works 1350 E Keating Ave Muskegon, MI 49442 w/copy to: Parmenter Law PO Box 786 Muskegon, MI 49443-0786 Attn: City Attorney Email: john@parmenterlaw.com User: Muskegon YMCA _________________________ _________________________ Attn: _____________________ Email: ____________________ 19. Entire Agreement; Amendment. This Agreement represents the entire agreement between the Parties. It may not be amended, altered or modified except by a writing signed by both Parties. 20. Counterparts. This Agreement may be executed in counterparts, and each set of duly delivered identical counterparts which includes all signatories, shall be deemed to be one original document. Electronic or fax copies of the signed Agreement shall constitute a valid, enforceable agreement. City – City of Muskegon, a Michigan municipal corporation By: ___________________________________ Name: Ken Johnson Title: Mayor Date: ______________________________ By: ___________________________________ Name: Ann Meisch Title: City Clerk Date: ______________________________ User – 5 Page 82 of 139 By: ________________________________ Name: ______________________________ Title: ______________________________ Date: ______________________________ 6 Page 83 of 139 Agenda Item Review Form Muskegon City Commission Commission Meeting Date: February 25, 2025 Title: Sale of 1325 Terrace Submitted by: Samantha Pulos, Code Department: Planning Coordinator Brief Summary: Staff is requesting approval of a Purchase Agreement for 1325 Terrace. Detailed Summary & Background: 1325 Terrace was constructed through an agreement with Dave Dusendang to construct infill housing with ARPA funding. The offer is for $155,200, which is above the listing price of $149,900; with no seller concessions. The offer includes a $5,000 appliance package and a $300 commission, totaling $155,200. Goal/Focus Area/Action Item Addressed: Key Focus Areas: Create an environment that effectively attracts new residents and retains existing residents by filling existing employment gaps, attracting new and diverse businesses to the city, and expanding access to a variety of high-quality housing options in Muskegon. Diverse housing types. Goal/Action Item: 2027 Goal 2: Economic Development Housing and Business Amount Requested: Budgeted Item: n/a Yes No N/A x Fund(s) or Account(s): Budget Amendment Needed: n/a Yes No N/A x Recommended Motion: To approve the Purchase Agreement for 1325 Terrace. 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ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ öù÷ÿâÝÚÚèëÝÿíÙøÿôêßñÝòàáøÿôÿù úùú÷ùúù÷ úúÿô 31ÿ 61ÿ ÿ 6983!ÿ0123ÿ567869 ÿ"#$ %ÿ227631673ÿ2ÿ 13ÿ122127636 ÿ ÿ ÿ 1&626 ÿ 31ÿÿÿ'()(*ÿ Page 92 of 139 Agenda Item Review Form Muskegon City Commission Commission Meeting Date: February 25, 2025 Title: Amendment to the zoning ordinance - Cottage Court Developments Submitted by: Mike Franzak, Planning Director Department: Planning Brief Summary: Staff-initiated request to amend Section 400 and Articles II and XX of the zoning ordinance to create regulations that allow for cottage court developments. Detailed Summary & Background: • A cottage court development is a type of housing design that typically consists of a cluster of small, single-story homes or cottages arranged around a shared central courtyard or green space. This design is often used to create a community-oriented environment, where the homes are in close proximity to each other, and the shared space fosters social interaction and a sense of belonging. • Some key features of a cottage court development include: o Central Courtyard: The homes are typically arranged around a shared outdoor space, such as a garden, lawn, or courtyard, creating a more communal feel. o Small-Scale Homes: The individual units, often referred to as cottages, are generally smaller in size and designed to be more affordable or efficient. o Pedestrian-Friendly: These developments are often designed with pedestrians in mind, with pathways connecting the homes and the central shared space. o Sense of Community: Because of the proximity and shared spaces, cottage courts are intended to encourage neighborly interaction, fostering a tight-knit community. • The type of density proposed in these types of developments is similar to the density allowed in the recent zoning reform amendments. • The zoning amendments proposed would do the following: o Create a definition for Cottage Court Developments. o Create a section in the zoning ordinance under General Provisions that regulates Cottage Court Developments. o Allows Cottage Court Developments as a use by right (under certain conditions) in the following zoning districts: R, FBC-NE, FBC-UR, LFBC-LMR, and LFBC-LR. The Planning Commission unanimously (7-0, 2 members absent) recommended approval of the ordinance amendments. Goal/Focus Area/Action Item Addressed: Key Focus Areas: Diverse housing types Page 93 of 139 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 Section 400 and Articles II and XX of the zoning ordinance to create regulations that allow for cottage court developments as proposed. Approvals: Guest(s) Invited / Presenting: Immediate Division X Head No Information Technology Other Division Heads Communication Legal Review Page 94 of 139 ALLEY OR REAR ACCESS 11 8 BUILDING FOOTPRINT BUILDING 10 BUILDING 5 FOOTPRINT 10 FOOTPRINT 5 PROPERTY LINE 3 6 6 7 SIDE STREET BUILDING BUILDING 5 FOOTPRINT 10 FOOTPRINT 5 6 6 FOOTPRINT BUILDING BUILDING 5 FOOTPRINT FOOTPRINT 5 4 5 5 FRONT STREET 9 2 Page 95 of 139 PLANNING COMMISSION EXCERPTS Examples of Cottage Court Developments Proposed definition in Article II (definitions): Cottage Court Development: A group (3-10 units) of small, detached housing units arranged around and accessed from entrances facing a shared open space visible from the street. Proposed amendment to Section 2318: Cottage Court Developments (Currently a blank section in General Provisions): Cottage court developments are permitted in the R zoning district and the Form Based Code zoning district’s FBC-NE, FBC-UR, LFBC-LMR, and LFBC-LR context areas with the following conditions: 1. The lot shall not contain fewer than three (3) nor more than ten (10) detached housing units. 2. Lot width: Minimum lot width: 110 feet Maximum lot width: 150 feet 3. Lot depth: Minimum lot depth: 100 feet Maximum lot depth: 220 feet Page 96 of 139 4. Height limit: 1.5 stories or 24 feet 5. Setbacks: front, side, and rear setbacks shall meet those of the underlying zoning district. 6. Setbacks between units: 10 feet 7. Parking Setback: 40 feet from the front property line. 8. The provided off-street parking cannot be directly adjacent to the required shared open space. 9. The cottage court development must contain a common, shared open space that is at least twenty (20) feet but no more than sixty (60) feet in width and landscaped in grass, ground cover, perennials, and/or other natural, living, landscape material. 10. All housing units that do not front on a street must front and have their main entrance face the shared open space. 11. The lot must be serviced by an alley at the side or rear of the lot or, if an alley is not available, from a single drive approach on a side street. If both an alley and side street is not available, parking may be accessed from a single drive approach on a front street. 12. All units must meet the living area standards listed in Section 2319, and each unit shall not exceed a maximum building footprint of 30’x30’. 13. Building facades facing streets or the shared open space shall have 10% to 50% of the facade be windows between the adjacent grade and the cornice expression line or eave. 14. Accessory dwelling units are not permitted in cottage court developments. Proposed amendments to R, FBC-NE, FBC-UR, LFBC-LMR, and LFBC-LR zoning districts: Cottage court developments would be listed as a principal use permitted, as allowed in Section 2318 (Cottage Court Developments), in these zoning districts. Page 97 of 139 CITY OF MUSKEGON MUSKEGON COUNTY, MICHIGAN ORDINANCE NO._____ An ordinance to amend Section 400 and Articles II and XX of the zoning ordinance to create regulations that allow for cottage court developments. THE CITY COMMISSION OF THE CITY OF MUSKEGON HEREBY ORDAINS: Amendment to Section 2318: Cottage Court Developments (Currently a blank section in General Provisions): Cottage court developments are permitted in the R zoning district and the Form Based Code zoning district’s FBC-NE, FBC-UR, LFBC-LMR, and LFBC-LR context areas with the following conditions: 1. The lot shall not contain fewer than three (3) nor more than ten (10) detached housing units. 2. Lot width: Minimum lot width: 110 feet Maximum lot width: 150 feet 3. Lot depth: Minimum lot depth: 100 feet Maximum lot depth: 220 feet 4. Height limit: 1.5 stories or 24 feet 5. Setbacks: front, side, and rear setbacks shall meet those of the underlying zoning district. 6. Setbacks between units: 10 feet 7. Parking Setback: 40 feet from the front property line. 8. The provided off-street parking cannot be directly adjacent to the required shared open space. 9. The cottage court development must contain a common, shared open space that is at least twenty (20) feet but no more than sixty (60) feet in width and landscaped in grass, ground cover, perennials, and/or other natural, living, landscape material. 10. All housing units that do not front on a street must front and have their main entrance face the shared open space. 11. The lot must be serviced by an alley at the side or rear of the lot or, if an alley is not available, from a single drive approach on a side street. If both an alley and side street is not available, parking may be accessed from a single drive approach on a front street. 12. All units must meet the living area standards listed in Section 2319, and each unit shall not exceed a maximum building footprint of 30’x30’. Page 98 of 139 13. Building facades facing streets or the shared open space shall have 10% to 50% of the facade be windows between the adjacent grade and the cornice expression line or eave. 14. Accessory dwelling units are not permitted in cottage court developments. Amendments to R, FBC-NE, FBC-UR, LFBC-LMR, and LFBC-LR zoning districts: Cottage court developments would be listed as a principal use permitted, as allowed in Section 2318 (Cottage Court Developments), in these zoning districts. This ordinance adopted: Ayes:______________________________________________________________ Nayes:_____________________________________________________________ Adoption Date: Effective Date: First Reading: Second Reading: CITY OF MUSKEGON By: _________________________________ Ann Meisch, MMC, City Clerk Page 99 of 139 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 25th day of February 2025, 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: ___________________, 2025. __________________________________________ Ann Meisch, MMC Clerk, City of Muskegon Publish: Notice of Adoption to be published once within ten (10) days of final adoption. Page 100 of 139 CITY OF MUSKEGON NOTICE OF ADOPTION Please take notice that on February 25, 2025, the City Commission of the City of Muskegon adopted an ordinance to amend Section 400 and Articles II and XX of the zoning ordinance to create regulations that allow for cottage court developments. 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 ____________________, 2025. CITY OF MUSKEGON By _________________________________ Ann Meisch, MMC City Clerk --------------------------------------------------------------------------------------------------------------------- PUBLISH ONCE WITHIN TEN (10) DAYS OF FINAL PASSAGE. Account No. 101-80400-5354 Page 101 of 139 Agenda Item Review Form Muskegon City Commission Commission Meeting Date: February 25, 2025 Title: Amendment to the zoning ordinance - Accessory Commercial Units Submitted by: Mike Franzak, Planning Director Department: Planning Brief Summary: Staff-initiated request to amend Section 400 and Articles II and XX of the zoning ordinance to create regulations that allow for accessory commercial units. Detailed Summary & Background: • An "accessory commercial unit" (ACU) is a small commercial space, like a retail store or office, that is attached to or built on the same property as a residential dwelling, essentially acting as a secondary business space within a residential neighborhood, similar to how an accessory dwelling unit (ADU) is a secondary living space on a residential lot. • ACUs are often seen as a way to bring local businesses closer to residents and increase neighborhood vibrancy without significantly altering the character of the area. • The Future Land Use Map created during the Master Plan process, includes “community node” areas where higher densities and uses should be considered. • The Master Plan recommends uses such as these in the following sections of the document: o Housing & Neighborhoods: Goal 3: Create walkable community nodes within a short distance of all residents. Identify existing or potential community nodes in each city neighborhood to serve as a strong center(s) from which the neighborhood can orient itself and build upon. Update land use regulations to permit better integration of different land uses at identified community nodes. • Economic Development: Goal 2: Create viable commercial corridors and community nodes. Simplify zoning regulations to permit flexibility in business typesThe zoning amendments proposed would do the following: o Create a definition for Accessory Commercial Unit. o Create an Accessory Commercial Unit Overlay District. ACUs would only be allowed within these boundaries and under these guidelines. The Planning Commission unanimously (7-0, 2 members absent) recommended approval of the ordinance amendment. Goal/Focus Area/Action Item Addressed: Key Focus Areas: Micro-commercial areas in neighborhoods Neighborhood commercial center development Page 102 of 139 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 Section 400 and Articles II and XX of the zoning ordinance to create regulations that allow for accessory commercial units as presented. Approvals: Guest(s) Invited / Presenting: Immediate Division X Head No Information Technology Other Division Heads Communication Legal Review Page 103 of 139 City of Muskegon Accessory Commercial Unit Overlay District Map Qualifying Property Community Node Overlay Neighborhood Node Walk Radius Regional Node Walk Radius Page 104 of 139 PLANNING COMMISSION EXCERPT Examples of Accessory Commercial Units Amendments to Article II (Definitions): Accessory Commercial Unit (ACU): A smaller, secondary attached building intended for commercial use on a property that, but is accessory to the primary residential use of the property. Proposed amendment to Section 2328: Accessory Commercial Unit Overlay District (Currently a blank section in General Provisions): Accessory Commercial Units are allowed as a special land use permitted within the Accessory Commercial Unit Overlay District with the following conditions: 1. The property is located within the boundaries identified in Figure 23-4. 2. The underlying zoning of the property is R, Neighborhood Residential. 3. The principal use of the property is residential. Page 105 of 139 4. A special land use permit is issued, following the guidelines of Section 2332. 5. Permitted Uses: a. Retail (excluding alcohol sales) b. Office c. Personal service d. Gallery/museum 6. Building Requirements: a. Minimum building size of 200 square feet and receive a certificate of occupancy from the Building Inspections Department. b. The footprint of the ACU must be smaller than the footprint of the principal structure on the property. c. The ACU must meet the required front build-to-zone of 5 to 30 feet. d. The ACU must be attached to the principal structure on the property. e. Design requirements for the ACU must meet the Storefront Building Type Frontage Option of the Retail Building Type Facade Composition Requirements in 2006.09 of the Form Based Code. Figure 23-4: Accessory Commercial Unit Overlay District Map (based on the Community Node Overlay in the Master Plan’s Future Land Use Map). Page 106 of 139 CITY OF MUSKEGON MUSKEGON COUNTY, MICHIGAN ORDINANCE NO._____ An ordinance to amend Section 400 and Articles II and XX of the zoning ordinance to create regulations that allow for accessory commercial units. THE CITY COMMISSION OF THE CITY OF MUSKEGON HEREBY ORDAINS: Amendments to Article II (Definitions): Accessory Commercial Unit (ACU): A smaller, secondary attached building intended for commercial use on a property that, but is accessory to the primary residential use of the property. Proposed amendment to Section 2328: Accessory Commercial Unit Overlay District (Currently a blank section in General Provisions): Accessory Commercial Units are allowed as a special land use permitted within the Accessory Commercial Unit Overlay District with the following conditions: 1. The property is located within the boundaries identified in Figure 23-4. 2. The underlying zoning of the property is R, Neighborhood Residential. 3. The principal use of the property is residential. 4. A special land use permit is issued, following the guidelines of Section 2332. 5. Permitted Uses: a. Retail (excluding alcohol sales) b. Office c. Personal service d. Gallery/museum 6. Building Requirements: a. Minimum building size of 200 square feet and receive a certificate of occupancy from the Building Inspections Department. b. The footprint of the ACU must be smaller than the footprint of the principal structure on the property. c. The ACU must meet the required front build-to-zone of 5 to 30 feet. d. The ACU must be attached to the principal structure on the property. e. Design requirements for the ACU must meet the Storefront Building Type Frontage Option of the Retail Building Type Facade Composition Requirements in 2006.09 of the Form Based Code. Page 107 of 139 Figure 23-4: Accessory Commercial Unit Overlay District Map. This ordinance adopted: Ayes:______________________________________________________________ Nayes:_____________________________________________________________ Adoption Date: Effective Date: First Reading: Second Reading: CITY OF MUSKEGON By: _________________________________ Ann Meisch, MMC, City Clerk Page 108 of 139 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 25th day of February 2025, 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: ___________________, 2025. __________________________________________ Ann Meisch, MMC Clerk, City of Muskegon Publish: Notice of Adoption to be published once within ten (10) days of final adoption. Page 109 of 139 CITY OF MUSKEGON NOTICE OF ADOPTION Please take notice that on February 25, 2025, the City Commission of the City of Muskegon adopted an ordinance to amend Section 400 and Articles II and XX of the zoning ordinance to create regulations that allow for accessory commercial units. 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 ____________________, 2025. CITY OF MUSKEGON By _________________________________ Ann Meisch, MMC City Clerk --------------------------------------------------------------------------------------------------------------------- PUBLISH ONCE WITHIN TEN (10) DAYS OF FINAL PASSAGE. Account No. 101-80400-5354 Page 110 of 139 Agenda Item Review Form Muskegon City Commission Commission Meeting Date: February 25, 2025 Title: Muskegon Police Department Renovations Submitted by: Timothy Kozal, Public Safety Department: Public Safety-Police Director Brief Summary: Staff is seeking to authorize the award of a construction contract for the renovation of the first floor of the police department. Detailed Summary & Background: The police department is seeking to remodel the entire department as a multi-year capital improvement project. FY 24-25 has a budgeted cost of $286,653.74 to renovate the first floor of the police department. The police department is in need of a remodel due to outdated infrastructure, separated work areas, lack of storage and inadequate work space. This project received 5 bids for the construction of the renovations with Muskegon Quality Builders coming in at the lowest bid and the only bid within budget. The police department recommends awarding the contract to Muskegon Quality Builders due to their cost and history of professionalism and quality projects. Goal/Focus Area/Action Item Addressed: Key Focus Areas: Goal/Action Item: 2027 Goal 2: Economic Development Housing and Business Amount Requested: Budgeted Item: $284,500 Yes x No N/A Fund(s) or Account(s): Budget Amendment Needed: 445-901-801-092424 Yes No x N/A Recommended Motion: I move to award the Police Department - First Floor Renovations construction contract to Muskegon Quality Builders at the cost of $284,500. Approvals: Guest(s) Invited / Presenting: Immediate Division x No Page 111 of 139 Head Information Technology Other Division Heads Communication Legal Review Page 112 of 139 Page 113 of 139 Page 114 of 139 Page 115 of 139 Page 116 of 139 Page 117 of 139 Page 118 of 139 Page 119 of 139 Agenda Item Review Form Muskegon City Commission Commission Meeting Date: February 25, 2025 Title: 880 First St. Demolition- Asbestos Abatement Proposal Submitted by: Contessa Alexander, Development Department: Economic Development Analyst Brief Summary: City staff requests approval of Asbestos Abatement Inc.'s proposal for additional abatement work that is required for the demolition of the 880 First St. structure. Detailed Summary & Background: The City of Muskegon solicited bids from qualified contractors for the demolition of the building located at 880 First St., Muskegon, MI 49440 in July 2024. The scope of work includes complete demolition and removal of the structure, including all foundations and footings, backfilling the site, hydroseeding, and asbestos abatement. The primary objective is to eliminate blight, improve the area's aesthetic appeal, and encourage economic development by preparing the site for future opportunities. Asbestos Abatement Inc. was awarded the bid by the City Commission on October 8, 2024. They completed the majority of the asbestos abatement but found additional unknown materials located on the roof. Due to the new finding, additional abatement is required before the company can proceed with demolition. Asbestos Abatement Inc. has submitted their abatement proposal for the new materials, which are also attached for your review. Scope of Work • Removal and disposal of asbestos-containing materials in Supplemental Material Testing Report dated 2/19/25 • Required personal air monitoring and clearances included. Continuous third-party air monitoring is not included. • State notifications and permits included. Price: $27,400 Goal/Focus Area/Action Item Addressed: Key Focus Areas: Progress toward completion of ongoing economic development projects Goal/Action Item: 2027 Goal 2: Economic Development Housing and Business Page 120 of 139 Amount Requested: Budgeted Item: $27,400 Yes No N/A Fund(s) or Account(s): Budget Amendment Needed: Public Improvement Fund (445) Yes No N/A Recommended Motion: I move to approve the proposal from Asbestos Abatement Incorporated for the additional asbestos abatement work required at 880 First St. in the amount of $27,400 and authorize the City Manager to sign the attached proposal. Approvals: Guest(s) Invited / Presenting: Immediate Division Head No Information Technology Other Division Heads Communication Legal Review Page 121 of 139 February 19, 2025 City of Muskegon Attn: Contessa Alexander 933 Terrace Street Muskegon, MI 49440 RE: Supplemental Asbestos Sampling at 880 First Street, Muskegon, MI. Dear Ms. Alexander, Asbestos Abatement Incorporated (AAI), is pleased to submit this Supplemental Material Testing Report for the above-referenced address. Additional material testing was required as additional suspect materials were discovered during the initial abatement activities. Enclosed is the inspection report, which summarizes and documents our inspection findings, and conclusions. Please contact us if you have any questions about this report. Sincerely, Mike Busterna Project Manager Asbestos Abatement Incorporated Page 122 of 139 INSPECTION REPORT Supplemental Material Testing AAI Project No. 2260 Conducted at: 880 First St Muskegon, MI 48854 On: 1/28/25 – 2/18/25 By: Mike Busterna Accreditation No. A58118 Asbestos Abatement Inc. 2420 N. Grand River Ave. Lansing, MI 48906 For: City of Muskegon Ms. Contessa Alexander 933 Terrace Street Muskegon, MI 49440 Page 123 of 139 1.0 INTRODUCTION The intent of the inspection was to identify asbestos-containing building materials that may be disturbed during upcoming renovation/demolition activities. Additional sampling was required due to hidden materials that were discovered as part of this renovation. The inspection was conducted by Mike Busterna (A58118), who is a State of Michigan Accredited Asbestos Inspector 2.0 ASBESTOS A list of asbestos-containing materials is presented in the following table: Asbestos-Containing Materials HA # Materials Description Asbestos Results Qty Black adhesive behind drywall in 9 5% Chrysotile 50 SF. stairwell 1 Lower roof joint seam caulk 5% Chrysotile 200 LF. Upper roof penthouse black/silver 1A 3% Chrysotile 760 SF. flashing & roofing tar Page 124 of 139 APPENDIX A Analytical Report – Asbestos Page 125 of 139 TRIANGLE ENVIRONMENTAL SERVICE CENTER, INC. 13509 East Boundary Road, Suite B, Midlothian, VA 23112 804-739-1751 • fax: 804-739-1753 BULK ASBESTOS SAMPLE ANALYSIS SUMMARY CLIENT: Asbestos Abatement Inc. TESC LOGIN #: 250128E 2420 N. Grand River Ave. Lansing, MI 48906 DATE OF RECEIPT: 1/28/2025 DATE OF ANALYSIS: 1/28/2025 DATE OF REPORT: 1/28/2025 CLIENT JOB/ #: 2260 JOB SITE: 800 First St. Muskegon, MI 49440 ANALYST: B. Trimmer TESC CLIENT SAMPLE ID ESTIMATED NON ASBESTOS NON FIBROUS SAMPLE # & GROSS DESCRIPTION % ASBESTOS % FIBERS % MATERIALS 1 1A / Black granular NAD 2% Cellulose 98% 2 1B / Black adhesive NAD 100% 3 2A / Black adhesive NAD 100% 4 2B / Black adhesive NAD 100% 5 3A / Black adhesive 3% Chrysotile 97% 6 3B / Black adhesive 3% Chrysotile 97% 7 4A / Gray and black adhesive 2% Chrysotile 98% 8 4B / Gray and black adhesive 2% Chrysotile 98% 9 5A / Black adhesive 5% Chrysotile 95% 10 5B / Black adhesive 5% Chrysotile 95% Samples are analyzed in accordance with “EPA -- 40 CFR Appendix E to Subpart E of Part 763, Interim Method for the Determination of Asbestos in Bulk Insulation Samples”, EPA 600/R-93/116: Method for the Determination of Asbestos in Bulk Building Materials. None Detected: not detected at/or below the detected limit of method (Reporting limit: 1% Asbestos). Sodium Chloride is analyzed for quality control blank. TESC recommends by point count or Transmission Electron Microscopy (TEM), for materials regulated by the EPA NESHAP (National Emission Standards for Hazardous Air Pollutants) and found to contain less than ten percent (<10%) asbestos by Polarized Light Microscopy (PLM). Both services are available for an additional fee. This report must not be reproduced except in full with approval of Triangle Environmental Service Center, Inc. This test report relates only to the item(s) tested. This report may not be used by the client to claim product endorsement by NVLAP or any other agency of the U.S. Government. Client Samples condition acceptable for testing. Analysis of Dust Wipe, Soil, and Tape samples do not fall under NVLAP Accredition. NVLAP Lab Code: 200794-0 [LEGEND NAD=No Asbestos Detected, Lino.=Linoleum, JC=Joint Compound] Reviewed By Authorized Signatory: Feng Jiang, MS Senior Geologist, Laboratory Director Yuedong Fang, Senior Geologist Tuesday, January 28, 2025 Page 1 of 2 Page 126 of 139 TRIANGLE ENVIRONMENTAL SERVICE CENTER, INC. 13509 East Boundary Road, Suite B, Midlothian, VA 23112 804-739-1751 • fax: 804-739-1753 BULK ASBESTOS SAMPLE ANALYSIS SUMMARY CLIENT: Asbestos Abatement Inc. TESC LOGIN #: 250128E 2420 N. Grand River Ave. Lansing, MI 48906 DATE OF RECEIPT: 1/28/2025 DATE OF ANALYSIS: 1/28/2025 DATE OF REPORT: 1/28/2025 CLIENT JOB/ #: 2260 JOB SITE: 800 First St. Muskegon, MI 49440 ANALYST: B. Trimmer TESC CLIENT SAMPLE ID ESTIMATED NON ASBESTOS NON FIBROUS SAMPLE # & GROSS DESCRIPTION % ASBESTOS % FIBERS % MATERIALS 11 6A / Black adhesive 7% Chrysotile 93% 12 6B / Black adhesive NAD 5% Cellulose 95% 13 7A / Black adhesive 7% Chrysotile 93% 14 7B / Black adhesive 7% Chrysotile 93% 15 8A / Black adhesive 5% Chrysotile 95% 16 8B / Black adhesive 5% Chrysotile 95% 17 9A / Black adhesive 5% Chrysotile 95% 18 9B / Black adhesive 5% Chrysotile 3% Cellulose 92% Total Samples/Layers Analyzed: 18 Samples are analyzed in accordance with “EPA -- 40 CFR Appendix E to Subpart E of Part 763, Interim Method for the Determination of Asbestos in Bulk Insulation Samples”, EPA 600/R-93/116: Method for the Determination of Asbestos in Bulk Building Materials. None Detected: not detected at/or below the detected limit of method (Reporting limit: 1% Asbestos). Sodium Chloride is analyzed for quality control blank. TESC recommends by point count or Transmission Electron Microscopy (TEM), for materials regulated by the EPA NESHAP (National Emission Standards for Hazardous Air Pollutants) and found to contain less than ten percent (<10%) asbestos by Polarized Light Microscopy (PLM). Both services are available for an additional fee. This report must not be reproduced except in full with approval of Triangle Environmental Service Center, Inc. This test report relates only to the item(s) tested. This report may not be used by the client to claim product endorsement by NVLAP or any other agency of the U.S. Government. Client Samples condition acceptable for testing. Analysis of Dust Wipe, Soil, and Tape samples do not fall under NVLAP Accredition. 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Soil(PPM) r $ rVipe o q) o- *t*ll c.ll rcLP (Pb) 9sl I + s -s 5" Waster Water i*l I I t Drinking Water (Pb) TCLP RCRA 8 o ,Fll s CAM 17 :, o /Velding Fume s l-oxic Metal Profile = o 0) i t 3iocassette o f {7 vo vo o o Slide o m ! ! c a = o z -{ Surface Tape * Lm qm -{ tfl z o Surface Swab o { o o{ l\)! o r m Bulk o n) s z (,l CN N) !, { m g q)g Air Volume (L) o_ z 0) o o 3 ]T o = s ) ] Wipe Area (ft2) o !T 7 o o J o z I @ f..: Scrape Area 1cm'r) (D @l I tul 6 =' =' !q A' ol cDl o = m g. :rl al 'T'! z ts tu h, al o at ! s:r otl\) \t -{ D-{ or ro @ @ N l\) lv N lu f :, f f 5 lu l 3 @ 0) (o D) t c c o €o o- o 0) g) o- o o- o- o o- @ @ at V) a o u x .Tt TI 11 '1'l 'n lu N o <l oo oo o=) 9=) A)-l !)t (ot- 3ft- rq o r oo (D a \.rl If,3 J 'T1 5 o o=- o- o o cl anl m 7 @ @ :0 fl !) !) o D !) o o q = = o o 3 FI ot o o f f o o o ot 6 l'o o o ct = (o= o oo oq) op o- c)iF F E t] q g m m g c D 9) o x D x q!) o g q, 3 o 9l -Jl m o ila o o 0) 0) 3 =. =, o o o 6- 3 x x A) A' o x - x ox o c c = o= o:, 9) 0) o o 3 x o x 3 f, cn <l sl @l m z-{ F o o q) o o A) o! x x g) o E ..o J q) A) sl 5t m v t- A) fi * a iit fl *tf *N dS IT id r* \N .ra sld s a sri. ria L* o ! =. 5 .TT o 3 Page 128 of 139 ! d E 8i9B z:1 Jo F@ T o m @ o o d (o @ (o o o Sample number e': gfi a,co oz o o cr @ 1*>o { 1l Q fiiI'- o o z -{ C = o z ff -'l" m m (t) v o c o -N o l\) N = tr { \l 1\) \,1 t\) Sample Date .tI m N t\) (,l (,l N) (,r +-J N) Or o 7 H' x x x x 3ulk lD by pLM ibEl*r F = PCM Fiber Count PLM Point Count 400 o PLM Point Count 1000 Eo qt PLM Gravimetric CARB 435 (Soitonly) th o gt d gt o (o IEM AHEMAiT m !, , tu) I I(O tlf IEM Butk Chatftetd {ir /*Hlil o ; o I lo) E IE:lc rli ' llq Paint(% & PPM) Soil(PPM) r- l-,*lll 3 o. 0l e o q) F /Vipe o- o !, iN rcLP (Pb) F o Waster Water s. .D )rinkino Water (pb) E TCLP RCRA 8 ol o =l cLl CAM 17 o a ol uVelding Fume u c" Ioxic Metal Profile o =l ntl o =l rl F 3iocassette d I: /*fl// sl .l i xr m! { ll Slide Surface Tape o c 0) it"m ov ?5! L m 3ll v til E z o tr to Surface Swab 3ulk o o_ .{ o o{ l8o * zlN ilt ;ll m m ;-ll oll z 0) Io) o l(D lf Air Volume (L) l$r IU, >lcn =I ml Wipe Area (ft2) lo sll v 3 = !c =' !q Scrape Area (cmz) l3 tst rul;lol tul ol ctI @ll o z N ol -ll z=FI ! ln" ! ]U l\) tu la U) +l (ht ill -{ 0) (o o (S (,l =- CL t' o f -n .Tl @ U) lcldl rll 9. rJ o 3 !) P. o o ll"=l xll o m T z z ='= = ell v U) a !) !U') 3 l-q It V g. P. ) = @ (o :f 3 o I t6l iil om =' (o etl b (o e o (cI c g)o c)q) f ll"ll Hll lll o m z E oo c tr U, l- 3r o o x x o o- llEl l { dil m v I ! -n o 3 Page 129 of 139 TRIANGLE ENVIRONMENTAL SERVICE CENTER, INC. 13509 East Boundary Road, Suite B, Midlothian, VA 23112 804-739-1751 • fax: 804-739-1753 BULK ASBESTOS SAMPLE ANALYSIS SUMMARY CLIENT: Asbestos Abatement Inc. TESC LOGIN #: 250218AL 2420 N. Grand River Ave. Lansing, MI 48906 DATE OF RECEIPT: 2/18/2025 DATE OF ANALYSIS: 2/18/2025 DATE OF REPORT: 2/18/2025 CLIENT JOB/ #: 2260 JOB SITE: 880 First Street. ANALYST: C. Eisenman TESC CLIENT SAMPLE ID ESTIMATED NON ASBESTOS NON FIBROUS SAMPLE # & GROSS DESCRIPTION % ASBESTOS % FIBERS % MATERIALS 1A 1A-Top Flashing / Black adhesive and silver paint 3% Chrysotile 97% 1B 1A-Bottom Flashing / Black tar-like 3% Chrysotile 10% Cellulose 85% 2% Fiberglass 1C 1A-Plaster / Tan granular NAD 100% 2A 1B-Top Flashing / Black adhesive and silver paint NAD 5% Cellulose 93% 2% Fiberglass 2B 1B-Middle Flashing / Black tar-like 4% Chrysotile 10% Cellulose 84% 2% Fiberglass 2C 1B-Bottom Flashing / Black tar-like NAD 20% Synthetic 80% Total Samples/Layers Analyzed: 6 Samples are analyzed in accordance with “EPA -- 40 CFR Appendix E to Subpart E of Part 763, Interim Method for the Determination of Asbestos in Bulk Insulation Samples”, EPA 600/R-93/116: Method for the Determination of Asbestos in Bulk Building Materials. None Detected: not detected at/or below the detected limit of method (Reporting limit: 1% Asbestos). Sodium Chloride is analyzed for quality control blank. TESC recommends by point count or Transmission Electron Microscopy (TEM), for materials regulated by the EPA NESHAP (National Emission Standards for Hazardous Air Pollutants) and found to contain less than ten percent (<10%) asbestos by Polarized Light Microscopy (PLM). Both services are available for an additional fee. This report must not be reproduced except in full with approval of Triangle Environmental Service Center, Inc. This test report relates only to the item(s) tested. This report may not be used by the client to claim product endorsement by NVLAP or any other agency of the U.S. Government. Client Samples condition acceptable for testing. Analysis of Dust Wipe, Soil, and Tape samples do not fall under NVLAP Accredition. NVLAP Lab Code: 200794-0 [LEGEND NAD=No Asbestos Detected, Lino.=Linoleum, JC=Joint Compound] Reviewed By Authorized Signatory: Feng Jiang, MS Senior Geologist, Laboratory Director Yuedong Fang, Senior Geologist Tuesday, February 18, 2025 Page 1 of 1 Page 130 of 139 ! o- o, o o { I o E z::l 'o= tr o P m (t, o 0) c z 1 o o_ BI-N { o o o u JE o o C o 1T o tr m :! :''l Fr z -t m U) il, ol x N ! = o m { ? o z c o ol l> tr, = ID ltn io Ier lo 1I m 79 vo lan lo 5E lt/) l> ,-;t tcr = !.) E q liil$x o J= o I IP lo)- lo t\) 5 5 i, p ?e lcn ui (, (rt c) (o m I 0l 5 o @ E o o tr : cL o, ,l 11 vo x:l qt (, 0, lg!o .o lr.J !l lo) U, = o liill IA) E ol l6 I l\) irotl I ol ol =l cLl ol r<l ,l otl 3l ol l,l <l >t a N m ! !o o (, 3 v + EPE,"i N z qqiH a o lo AJ o- o -{ *zlN >l(,' I m m Volume (L) o) !'n 3l @ C' z 3 U' II s o !TI (, a (o o pe Area (cm:r) 9r ol a z DI (rt = m P.l ol a z 3t o tf,l'El -11 q, x o o ;o m n 3 5l t- 3 rl {t o ar,t m o o 5 !l -tl o m z (rl {m U) crr I lll l l- v :.l, =, f .t1 ,o J Page 131 of 139 TRIANGLE ENVIRONMENTAL SERVICE CENTER, INC. 13509 East Boundary Road, Suite B, Midlothian, VA 23112 804-739-1751 • fax: 804-739-1753 BULK ASBESTOS SAMPLE ANALYSIS SUMMARY CLIENT: Asbestos Abatement Inc. TESC LOGIN #: 250203B 2420 N. Grand River Ave. Lansing, MI 48906 DATE OF RECEIPT: 2/3/2025 DATE OF ANALYSIS: 2/3/2025 DATE OF REPORT: 2/3/2025 CLIENT JOB/ #: 2260 JOB SITE: 880 First Street. ANALYST: B. Trimmer TESC CLIENT SAMPLE ID ESTIMATED NON ASBESTOS NON FIBROUS SAMPLE # & GROSS DESCRIPTION % ASBESTOS % FIBERS % MATERIALS 1 1A / Black adhesive 5% Chrysotile 95% 2 1B / Black adhesive 3% Chrysotile 97% 3 2A / Black adhesive NAD 3% Cellulose 97% 4 2B / Black adhesive NAD 3% Cellulose 97% 5 3A / Black adhesive NAD 2% Cellulose 98% 6 3B / Black adhesive NAD 2% Cellulose 98% 7 4A / Black adhesive NAD 2% Cellulose 98% 8 4B / Black adhesive NAD 2% Cellulose 98% Total Samples/Layers Analyzed: 8 Samples are analyzed in accordance with “EPA -- 40 CFR Appendix E to Subpart E of Part 763, Interim Method for the Determination of Asbestos in Bulk Insulation Samples”, EPA 600/R-93/116: Method for the Determination of Asbestos in Bulk Building Materials. None Detected: not detected at/or below the detected limit of method (Reporting limit: 1% Asbestos). Sodium Chloride is analyzed for quality control blank. TESC recommends by point count or Transmission Electron Microscopy (TEM), for materials regulated by the EPA NESHAP (National Emission Standards for Hazardous Air Pollutants) and found to contain less than ten percent (<10%) asbestos by Polarized Light Microscopy (PLM). Both services are available for an additional fee. This report must not be reproduced except in full with approval of Triangle Environmental Service Center, Inc. This test report relates only to the item(s) tested. This report may not be used by the client to claim product endorsement by NVLAP or any other agency of the U.S. Government. Client Samples condition acceptable for testing. Analysis of Dust Wipe, Soil, and Tape samples do not fall under NVLAP Accredition. NVLAP Lab Code: 200794-0 [LEGEND NAD=No Asbestos Detected, Lino.=Linoleum, JC=Joint Compound] Reviewed By Authorized Signatory: Feng Jiang, MS Senior Geologist, Laboratory Director Yuedong Fang, Senior Geologist Monday, February 3, 2025 Page 1 of 1 Page 132 of 139 a 7 o o o{o> o>=iJ 59 ! - o o o- zrl{s -.1 .'r tr> o E o, o o o oz, o o s o d a- o g A ul o) @ OJ N @ J @ J Sample number 4ifB Ee oo q x5 x fi5I,N =c llx m(A o -{ m * Pd c t rr-rp @ a t\ Co o 5, o f C.) q) (/) (^) o) D G) C'J o o a o o o o o lu N 1\) lU l\) l\) lU N Sample Date r olil lB H; 90 !, (,l (rl (rl (,| ol ot Ol b x x x x x x x x Ol Bulk lD by PLM 5 iti l6 32 r q) PCM Fiber Count N PLM Point Count 400 H f ]\ PLM Point Count 100C @ (t o (r, o t PLM Gravimetric U' (, gt CARB 435 (Soil only) o to m TEM AHEMA 0, o IEM Bulk Chatfield lHl:l,li @ o L (o U) Air tr 'E' = Itr = E tr Paint(% & PPM) l*r*ll CL q, e is o d Soil(PPM) Wipe rcLP (Pb) t- o 0, o. epl v o o .P U' s /Vaster Water I = o s )rinking Water (Pb) E a \\ rCLP RCRA 8 N o = o ]AM 17 )o d ! Welding Fume o 5 o \ Ioxic Metal Profile 0) : a N 6 (\ s.\ l-Fll F 3iocassette > t N o vo !vo c)oz oo, l. o m -g -l 3lide E 0) v Surface Tape + L L tu =N z m m o o Surface Swab o o { { D{ o = o o m { # z (,o lulk o. !) CN o. tu m I0) I \ir Volume (L) !) o z 0) 3 !T a = 5! o o 1T v f3 : 3 rVipe Area (ft2) oo 5 co rul o (., (o ! o z Scrape Area (cm2) o o o tul o, o !q Fn !q 0) P f'! o o. ('l = m z (, c) o o o 1' (,l o o o o oz oz oz oz 3 at 0) .T o l\) (rl d d d d { € { { U) 3 o (o \ o o o o o o o @ x o m ft G\i t) 5 l\) o o o o a o o o o o v q q o o o o c$ (,t E E 3 o o o o 0) 0) o o 6 p 3 :, :f 0) 0) 3 {u, l-o o o 3 o o 3 !) 9) !=, != o ) x o x o (o m o $ F F =. o )5' = o =. U' U' o D o !) f I m z{ -t' o o f 5 (o l tr_ c_ U) (,l CS (o x x (., llt l- $.< v .E ::, :, 'n () :3 Page 133 of 139 APPENDIX B Digital Photograph Log Page 134 of 139 Site Photograph Log Client Name: City of Muskegon Project Name: 880 First St Demolition Project Address: 880 First St, Muskegon, MI 49440 AAI Project No. 2260 PHOTOGRAPH #1 HA #: 9 MATERIAL CLASSIFICATION Asbestos-Containing Building Material MATERIAL DESCRIPTION Black adhesive behind drywall in stairwell ADDITIONAL NOTES 5th Floor North Stairwell PHOTOGRAPH #2 HA #: 9 MATERIAL CLASSIFICATION Asbestos-Containing Building Material MATERIAL DESCRIPTION Black adhesive behind drywall in stairwell ADDITIONAL NOTES 3rd Floor North Stairwell PHOTOGRAPH #3 HA #: 9 MATERIAL CLASSIFICATION Asbestos-Containing Building Material MATERIAL DESCRIPTION Black adhesive behind drywall in stairwell ADDITIONAL NOTES 4th Floor North Stairwell Page 135 of 139 Site Photograph Log Client Name: City of Muskegon Project Name: 880 First St Demolition Project Address: 880 First St, Muskegon, MI 49440 AAI Project No. 2260 PHOTOGRAPH #4 HA #: 9 MATERIAL CLASSIFICATION Asbestos-Containing Building Material MATERIAL DESCRIPTION Black adhesive behind drywall in stairwell ADDITIONAL NOTES 2nd Floor North Stairwell PHOTOGRAPH #5 HA #: 9 MATERIAL CLASSIFICATION Asbestos-Containing Building Material MATERIAL DESCRIPTION Black adhesive behind drywall in stairwell ADDITIONAL NOTES Basement North Stairwell PHOTOGRAPH #6 HA #: 9 MATERIAL CLASSIFICATION Asbestos-Containing Building Material MATERIAL DESCRIPTION Black adhesive behind drywall in stairwell ADDITIONAL NOTES 1st Floor North Stairwell Page 136 of 139 Site Photograph Log Client Name: City of Muskegon Project Name: 880 First St Demolition Project Address: 880 First St, Muskegon, MI 49440 AAI Project No. 2260 PHOTOGRAPH #7 HA #: 1 MATERIAL CLASSIFICATION Asbestos-Containing Building Material MATERIAL DESCRIPTION Lower roof joint seam caulk ADDITIONAL NOTES Under multiple layers of roofing PHOTOGRAPH #8 HA #: 1 MATERIAL CLASSIFICATION Asbestos-Containing Building Material MATERIAL DESCRIPTION Lower roof joint seam caulk ADDITIONAL NOTES Under multiple layers of roofing PHOTOGRAPH #9 HA #: 1A MATERIAL CLASSIFICATION Asbestos-Containing Building Material MATERIAL DESCRIPTION Upper penthouse black/silver flashing & roofing tar ADDITIONAL NOTES Page 137 of 139 Site Photograph Log Client Name: City of Muskegon Project Name: 880 First St Demolition Project Address: 880 First St, Muskegon, MI 49440 AAI Project No. 2260 PHOTOGRAPH #10 HA #: 1A MATERIAL CLASSIFICATION Asbestos-Containing Building Material MATERIAL DESCRIPTION Upper penthouse black/silver flashing & roofing tar ADDITIONAL NOTES Page 138 of 139 February 19, 2025 Contessa Alexander Development Analyst City of Muskegon 933 Terrace St. Muskegon, MI 49440 RE: 880 First Street Additional Abatement Proposal Asbestos Abatement Inc. (AAI) is pleased to provide you with the following proposal for your consideration. The scope of work is limited to the work described below only and not for any other substance or condition. The price included applicable taxes. Scope by AAI: Removal and disposal of asbestos containing materials in Supplemental Material Testing Report dated 2/19/25. Required personal air monitoring and clearances included. Continuous third-party air monitoring not included. State notification and permits included. Price = $27,400 Notes/Disclaimers: work hours are M-F during normal business hours. The quoted rates are valid for 30 days from the date listed at the top of this agreement. If you have any questions, feel free to call me. Thank you. Respectfully, Mike Busterna Project Manager/Estimator Page 139 of 139
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